Eutelsat Communications Sa · EURONEXT:ETL

Eutelsat Communications Sa — Debt Investor Presentation (June 2025)

33 slides from Eutelsat Communications Sa's debt investor presentation, June 2025

  1. Slide 1: Eutelsat S.A. Bondholder presentation

    EUTELSAT S.A. Bondholder presentation June 2025 ©2023 Eutelsat Group. All rights reserved.

  2. Slide 2: Contents

    Contents Eutelsat Group in a snapshot Eutelsat SA financials GEO vs LEO market trends Appendix H1 FY2024-25 financials ©2023 Eutelsat Group. All rights reserved.

  3. Slide 3: Eutelsat Group in a snapshot

    Eutelsat Group in a snapshot ©2023 Eutelsat Group. All rights reserved.

  4. Slide 4: Eutelsat Group structure

    Eutelsat Group structure Government shareholders Strategic shareholders French Gov. UK Govt Bharti Softbank CMA CGM Free float linked1 Space Ltd As of June 2025 17.7% 10.9% 24.1% 10.4% 5.5% 31.4% Eutelsat Communications SA Listed on the London Stock Exchange and Euronext Paris Other minority 3.6% 96

  5. Slide 5: Eutelsat within the satellite value chain

    Eutelsat within the satellite value chain Consumers Broadcasters, businesses, Satellite Satellite Satellite Telecoms, administrations manufacturers launchers operators Governments ©2023 Eutelsat Group. All rights reserved. 5

  6. Slide 6: Business characteristics

    Business characteristics  High barriers to entry • Finite resource of orbital positions and frequencies, regulated at ITU level and with key commercial orbital positions and spectrum already into use • High upfront CAPEX before operations • High technology and technical expertise through satellite

  7. Slide 7: Eutelsat Group Key data

    Eutelsat Group Key data REVENUE BREAKDOWN ➢ FY 24 revenues €1.2bn BY MARKET ➢ Global coverage with a fleet of 351 2% 9% Europe Geostationary satellites BY GEOGRAPHY ▪ C. 1,200 transponders 15% Americas ▪ Broadcasting c. 6,500 television channels 51% Middle East ▪ More than 690 Gbps high throughput c

  8. Slide 8: Eutelsat Group operates fleets of GEO and LEO satellites

    Eutelsat Group operates fleets of 35 GEO and 650 LEO satellites GEO fleet Coverage ubiquity c.36,000 km Regional OneWeb LEO fleet 160 to 2,000 km Capacity densification Coverage ubiquity Resilience / Global availability Capacity densification Latency Resilience / availability Ease of installation /

  9. Slide 9: Revenues by application (FY 2023-24)

    Revenues by application (FY 2023-24) → Direct-to-Home (DTH) GEO VIDEO → Cable headends 54% capacity → Professional Video only → Internet access FIXED 19% CONNECTIVITY → Mobile backhaul → Corporate networks GEO and GOVERNMENT → Military 14% LEO capacity SERVICES → Security → Civil applications → In-f

  10. Slide 10: Backlog

    Backlog OPERATIONAL & UTILIZED TRANSPONDERS  Backlog at €3.7 billion on 31 December 2024 BACKLOG (€BN) vs. €3.9bn a year earlier Excluding Managed services  Representing 3.1 years of revenues  Video representing 44% of the backlog 4.3.90 3.9 3.7  Connectivity representing 56% of the total • GEO

  11. Slide 11: A three-pillar strategy

    A THREE-PILLAR STRATEGY RELYING ON A STRONG FOUNDATION Eutelsat Telecom pivot Maximize cash generation Building Preparing LEO NEXT GEN of legacy business Connectivity business and Hybrid GEO-LEO ➢ To fund our transition towards ➢ In Broadband via KONNECT and ➢ To capture LEO-enabled growth high grow

  12. Slide 12: Eutelsat SA financials

    Eutelsat SA financials ©2023 Eutelsat Group. All rights reserved.

  13. Slide 13: Key data – FY 2023-24

    Key data – FY 2023-24 • 1,146 M€, +1.0% YoY REVENUES • Operating verticals revenues: 1,140 M€ • 323 M€, +6.1% YoY OPEX • 304 M€ at end-June 2023 • EBITDA : 823 M€, -0.8% YoY EBITDA • EBITDA margin: 71.8% (73.2% at end-June 2023) NET INCOME ATTRIBUTABLE • Net Income attributable to the Group : 74 M€

  14. Slide 14: Eutelsat SA has strong credit attributes

    Eutelsat SA has strong credit attributes Robust ring-fencing structure allowing for measurable value being earmarked to OneWeb Eutelsat SA enjoys credit supportive characteristics: New distribution strategy does not impact Eutelsat credit story Resilient and high Adj. EBITDA margin ✓ Controlled inve

  15. Slide 15: Bond & Bank Debt maturity schedule

    Bond & Bank Debt maturity schedule 2.000% ➢ Average cost of debt €600m HY bond 3y+1+1 2.250% 9.750% €450m RCF 1.500% €53 Partial redemption of m after hedging of 4.84%1 the €800m bond €53m €623m €100m €600m €600m €600m ➢ Average weighted €400m maturity of 3.0 years1 €450m €177m €50m €53m €200m €53m

  16. Slide 16: Eutelsat SA covenants

    Eutelsat SA covenants New distribution strategy does not impact Eutelsat credit story ✓ Controlled investments into OneWeb strategic development ✓ Eutelsat Communications maintains a medium-term leverage target of 3.0x Covenants designed to maintain value within Eutelsat SA ✓ Distribution capacity a

  17. Slide 17: LEO investment timeline

    LEO investment timeline 2025 2026 2027 2028 2029 2030 2031 2032 c. €2-2.2bn CAPEX to assure Gen-1 continuity Current Gen-1 100 committed satellites procured Gen-1 Follow-on c.340 additional satellites required for extension to availability of IRIS2 IRIS2 R&D and development funded by EU and ESA Eute

  18. Slide 18: Group credit rating profile

    Group credit rating profile B-Stable Eutelsat SA B2 Stable BB Negative Corporate Rating Standalone BB- Eutelsat B- Stable B2 Stable B Negative Communications Group Credit B- N.A. B+ Profile Investment Eutelsat SA Senior Unsecrured: B, RR2 Senior Unsecrured: B1, LGD3 Senior Unsecured: BB, RR4 Rating

  19. Slide 19: GEO vs LEO market trends

    GEO vs LEO market trends ©2023 Eutelsat Group. All rights reserved.

  20. Slide 20: State-of-the-art GEO Connectivity assets

    State-of-the-art GEO Connectivity assets KONNECT VHTS EUTELSAT 10B  Entered service in October 2023  Entered service in July 2023  Ka-band capacity of 500 Gbps, offering capacity  Unique visibility spanning from the Americas to Asia allocation flexibility & optimal spectrum use,  Two new multi-

  21. Slide 21: Resilient long-term features of Video

    Resilient long-term features of Video Decline in channel count partly offset by rise in more bandwidth- hungry definition quality HD to grow in emerging video markets # channels per 36 Mhz transponder 41,049 96% 15 to 26 83% 30,885 70% 26,947 3 49% 56% 48% 9,014 35% 42% 405 9 to 15 108 17% 19% 21,46

  22. Slide 22: GEO revenues expected to remain broadly stable while LEO absorbs demand growth

    While growth in demand expected to be absorbed by LEO, GEO revenues are expected to remain broadly stable $22.6bn Satellite connectivity market expected to more than triple by $18.0bn 2033 … NGSO: +27% CAGR $6.5bn $1.7bn … mainly driven by NGSO growth GEO: -0.6% CAGR $4.8bn $4.6bn 2023 2033e GEO NGS

  23. Slide 23: Demand for GEO Connectivity Remains Sustained

    Demand for GEO Connectivity Remains Sustained Highlights of our new or renewed GEO capacity contracts in FY 2025

  24. Slide 24: Appendices

    Appendices ©2023 Eutelsat Group. All rights reserved.

  25. Slide 25: Financial objectives

    Financial objectives1 REVENUES2 ► FY 2024-25 revenues of the four operating verticals around the same level as FY 2023-24 ADJUSTED EBITDA3 ► FY 2024-25 Adjusted EBITA margin slightly below the level of FY 2023-24 GROSS CAPEX ► Between €500 and €600m in FY 2024-25 LEVERAGE ► Targeting medium-term net

  26. Slide 26: Partial disposal of passive ground segment

    Partial disposal of passive ground segment  Carve-out of the passive assets (land, buildings, support infrastructure, antennas and connectivity circuits for the combined portfolio of teleports and SNPs) to form new, standalone company  80% sold to EQT Private Equity Group with; Eutelsat to remain

  27. Slide 27: Appendix: H1 2024-25 Financials

    Appendix: H1 2024-25 Financials ©2023 Eutelsat Group. All rights reserved.

  28. Slide 28: Net Income

    Net Income Extracts from the H1 H1 consolidated income CHANGE statement in €m 2023-24 2024-25 (109) Revenues 564.7 561.8 -0.5% Adjusted 410.8 391.6 -4.7% EBITDA1 Operating 108.7 14.7 n.a. Income Financial result (38.5) (56.4) 46.5% Income tax 17.1 (7.6) n.a. 1 Adjusted EBITDA defined as operating Gr

  29. Slide 29: Gross CAPEX

    Gross CAPEX GROSS CAPEX (€m) (109) 93 78  Gross Capex of €78 millions • Versus €93 millions at end- December 2023 77.4 77.4 77.5 31 December 2023 31 December 2024 ©2023 Eutelsat Group. All rights reserved. 29

  30. Slide 30: Net Debt

    Net Debt Net Debt (€m) (109) 2,368 2,057  Net Debt of €2,057 millions • Versus €2,368 millions at end- December 2023 77.4 77.4 77.5 31 December 2023 31 December 2024 ©2023 Eutelsat Group. All rights reserved. 30

  31. Slide 31: Financial structure

    Financial structure NET DEBT / Adjusted EBITDA RATIO (109) 2.52x  Net Debt/Adjusted EBITDA ratio of 2.59x • Versus 2.52x at end-December 77.4 77.4 2.59x77.5 2023 and 2.34x at end-June 2024 77.4 77.4 77.5 31 December 2023 31 December 2024 ©2023 Eutelsat Group. All rights reserved. 31

  32. Slide 32: IR contacts

    IR contacts Joanna Darlington Chief Communications and Investor Relations Officer T: +33 6 74 52 15 31 E: jdarlington@eutelsat.com Hugo Laurens-Berge Investor Relations Officer T: +33 6 70 80 95 58 E: hlaurensberge@eutelsat.com Christine Lopez IR Coordinator T: +33 1 53 98 47 02 E: clopez@eutelsat.c

  33. Slide 33: Disclaimer

    Disclaimer • NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO, OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION. • This presentation (including any oral briefing and any question-and-answer in connection with it

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