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Investor Presentaiton

Net Financial Debt (1) Over Time Prepared According to Government Companies Regulations IFRS NIS, bn $13.9 51.8 $14.4 50.0 $12.0 48 46.9 $11.6 44.6 $11.3 43.2 43 $12.1 42.1 $10.2 38.3 38 $10.4 36.1 33 חברת החשמל Israel Electric $9.3 30.0 28 (2) 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: IEC's Financial Statements for 2012FY-2020FY 1. 2. IEC defines "net financial debt" as credit from banks and other credit providers, total long-term debt (including debentures, long-term liabilities to banks, including hedge transactions, lease liabilities, debentures to the State of Israel and liabilities to the State of Israel), less cash and cash equivalents, short-term investments and other receivables (including receivables for forward contracts and swap transactions, MTM and long-term deposits and regulatory deferral account assets with respect to linkage differentials). As from 01/01/2019, "net financial debt" also includes lease liabilities. Denotes USD figures at USD/NIS exchange rate of 3.85, 3.47, 3.75, 3.46 & 3.22 for the end of period of 2016FY, 2017FY, 2018FY, 2019FY & 2020FY, respectively Investor Relations 27
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