Slide 1: First Half and Second Quarter 2023-24 Results
First Half and Second Quarter 2023-24 RESULTS 16 February 2023 ©2023 Eutelsat Group. All rights reserved.
Slide 2: Disclaimer
Disclaimer This presentation does not constitute or form part of and should not be construed as any offer for sale of or solicitation of any offer to buy any securities of Eutelsat Communications, nor should it, or any part of it, form the basis of or be relied on in connection with any contract or
Slide 3: Agenda
Agenda Highlights of the First Half Operational Performance Financial Performance Outlook and Financial Objectives ©2023 Eutelsat Group. All rights reserved.
Slide 4: Highlights
Highlights First Half Operating verticals revenues of €571m, confirming the return topline return to growth, underpinned by Eutelsat legacy businesses, thanks notably to EUTELSAT 10B and KONNECT VHTS incremental capacity, and inclusion of OneWeb business since the Second Quarter Second Quarter O
Slide 5: Geo businesses delivering on target
Geo businesses delivering on target Return to growth underpinned by incremental in-orbit connectivity resources EUTELSAT 10B KONNECT VHTS Entered service in July 2023 Entered service in October 2023 Located at 10° East offering a unique Ka-band capacity of 500 Gbps, embarking visibility span
Slide 6: Reminder: rationale of the Eutelsat OneWeb combination
Reminder: rationale of the Eutelsat OneWeb combination ACCESS MASSIVE GROWTH POTENTIAL IN SATELLITE CONNECTIVITY Satellite Connectivity market at c. $16bn in 20301 COMBINING HIGH-GROWTH POTENTIAL WITH CASH ONEWEB IS A UNIQUE ASSET GENERATIVE LEGACY BUSINESSES Targeting double-digit CAGR in One-of-on
Slide 7: Eutelsat / OneWeb combination is live
Eutelsat / OneWeb combination is live Approval of the combination in Sept 2023 Constellation operational and delivering proven performance Backlog up 23% in past quarter, now standing at €700m1 Strong commercial traction with deals activated with major customers Progress on ground roll-out
Slide 8: Strong momentum in deals with major partners
Strong momentum in deals with major partners Major commercial LEO wins across all applications Fixed Data Government Mobile connectivity ©2023 Eutelsat Group. All rights reserved. 8
Slide 9: Progress in network coverage
Progress in network coverage On track to 90% Global coverage by mid-2024 MARCH 2024 JULY 2024 (E) ©2023 Eutelsat Group. All rights reserved. 9
Slide 10: Constellation operational and delivering proven performance
Constellation operational and delivering proven performance Network performance User experience HTS technology delivering up to 7Gbps Average global latency of 70ms per satellite Download speeds up to 195Mbps Robust 4G core network developed with telecom industry leaders Upload speeds up to 32Mbps S
Slide 11: In-market experience informing design of Next Generation
In-market experience informing design of Next Generation Progressing as planned with evaluation of the requirements for the Next Generation ✓ Lower cost than previous estimates OneWeb constellation for the build-out of the OneWeb Informed by operational and commercial in- Next Generation market
Slide 12: Operational performance
Operational performance ©2023 Eutelsat Group. All rights reserved.
Slide 13: First Half 2023-24 revenues
First Half 2023-24 revenues H1 YoY revenue bridge (€m) Total revenues of €572.9m, up +1.0% like-for-like +1.2% Negative currency effect +5 • €/$ rate of 1.08 vs 1.00 last year +3 +10 Positive swing of €9.7m in ‘Other Revenues’ (18) • Of which €10.9m related to hedging Revenues of the Operati
Slide 14: H1 revenues by verticals
H1 revenues by verticals REVENUE REVENUES LIKE-FOR-LIKE2 CONTRIBUTION1 YOY CHANGE (€m) VIDEO 58% 331.1 -8.0% GOVERNMENT 13% 74.2 +10.5% SERVICES MOBILE 12% 71.2 +35.6% CONNECTIVITY FIXED 17% 94.6 +9.2% CONNECTIVITY TOTAL OPERATING VERTICALS 571.1 +1.2% OTHER REVENUES 1.6 +€9.7m3 1 Share of each appl
Slide 15: Video
Video 58% H1 revenues of €331.1m, down 8.0% YoY like-for-like1 • Impact of the early non-renewal of a capacity contract with Digitürk from mid-November 2022 366 785 331 • Lower revenues in Europe • Effect of sanctions against certain Russian and Iranian channels Q2 Revenues of €167.6m up 1.9% Qo
Slide 16: Government Services
Government Services 13% H1 revenues of €74.2m, up 10.5% YoY like-for- like1 • Slightly better renewal rate of the Fall US DoD campaign (above 80%) • Contribution of the EGNOS GEO-4 contract on HOTBIRD 67 74 13G2 • Contribution from OneWeb Second Quarter revenues of €40.7 million 41 Q2 Q2 32 • up
Slide 17: Mobile connectivity
Mobile connectivity 12% H1 revenues of €71.2m, up 35.6% YoY like-for- like1 • Entry into service of the high-throughput satellite, 71 EUTELSAT 10B, with significant pre-commitments and recent deals, especially in Aero and Maritime 56 • Commercialization of the final beam on EUTELSAT QUANTUM for a
Slide 18: Fixed connectivity
17% Fixed connectivity 93 95 H1 revenues of €94.6m, up 9.2% YoY like-for-like1 • Entry into service of KONNECT VHTS • Contribution from LEO connectivity Q2 Q2 47 54 Second Quarter at €54.3m, up 17.6% year-on-year and by 23.7% on a sequential basis C • Contracts activate from mid-October followin
Slide 19: Backlog
Backlog OPERATIONAL & UTILIZED TRANSPONDERS Backlog at €3.9 billion on 31 December 2023 vs. €3.4bn in June 2023 BACKLOG (€BN) Excluding Managed services Representing 3.5 years of revenues Contribution of OneWeb’s growing backlog, amounting to €700m1 at end-December 2023, up 23% over the Quarte
Slide 20: Financial performance
Financial performance ©2023 Eutelsat Group. All rights reserved.
Slide 21: Profitability
Profitability Adjusted H1 Adjusted EBITDA margin of 64.1% at EBITDA (€m) constant currency1 down 5.9 points YoY Higher operating costs 419 • Impact of the consolidation of OneWeb 366 • Partially offset by a positive perimeter effect from the disposal of the BigBlu retail broadband operations Mar
Slide 22: Net income
Net income Extracts from the H1 H1 • Other operating expenses of -€183.9 million, compared consolidated income CHANGE to -€34.0 million last year, mainly due to fair value statement in €m 2022-23 2023-24 adjustment of shares owned by Eutelsat before the combination. Revenues 573.8 572.6 -0.2% • High
Slide 23: Cash Capex
Cash Capex CASH CAPEX (€m) Cash Capex of €224 million, versus €194 last year 224 Reflecting perimeter effect from the 194 consolidation of OneWeb Not representative of the decrease in Capex, reflecting phasing of satellite program delivery last year for both 77.4 77.4 77.5 Eutelsat and OneWeb
Slide 24: Change in net debt
Change in net debt In €m (109) (40) 175 (3) 2,766 (330) 2,619 2,619 Net Debt as of OneWeb entry in C- Band Proceeds Structured debt Other Net Debt as of 30/06/2023 perimeter 31/12/2023 ©2023 Eutelsat Group. All rights reserved. 24
Slide 25: Financial Structure
Financial Structure NET DEBT / Adjusted EBITDA RATIO Net Debt/Adjusted EBITDA ratio of 4.13x • Versus 3.55x at end December 2022 and 3.35x as of 30 June 2023 4.13x 3.27x Average cost of debt after hedging of 3.16% • Versus 2.67% in H1 23 Average weighted maturity of 3.0 years • Versus 4.1 y at
Slide 26: Outlook
Outlook ©2023 Eutelsat Group. All rights reserved.
Slide 27: Eutelsat and OneWeb integration progressing as planned
Eutelsat and OneWeb integration progressing as planned Commercial momentum and synergies confirmed Technical Commercial Synergies • LEO Constellation operational • Resilient GEO activities • Integration between Eutelsat and delivering proven, robust continuing to deliver on track and OneWeb progress
Slide 28: Eutelsat Group Financial objectives
Eutelsat Group Financial objectives GROUP ► Between €1.25bn and € .3bn in FY 2024, REVENUES ► Double digit CAGR between 2024 and 2028 ADJUSTED ► Between €650m and €680m in FY 2024, EBITDA ► Double digit CAGR between 2024 and 2028 CASH ► Between €600m and €650m in FY 2024 CAPEX ► €600 to €700m per an
Slide 29: Q&A
Q&A ©2023 Eutelsat Group. All rights reserved.
Slide 30: Appendix: Upcoming GEO launches
Appendix: Upcoming GEO launches NAME EUTELSAT 36D FLEXSAT AMERICAS Orbital 36° East - Position Approx. Entry into service date1 H2 2024 2026 (delivery) Manufacturer Coverage Africa, Russia, Europe, Middle East Americas Video Connectivity Applications Government Total capacity 70 transponders in Ku-b