Eutelsat Communications Sa · EURONEXT:ETL

Eutelsat Communications Sa — H1 2024-25 Earnings Presentation

27 slides from Eutelsat Communications Sa's earnings presentation, Feb 14, 2025

  1. Slide 1: Second Quarter and First Half 2024-25 Results

    Second Quarter and First Half 2024-25 RESULTS 14 February 2025 ©2023 Eutelsat Group. All rights reserved.

  2. 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

  3. Slide 3: Agenda

    Agenda  Key Events  Operational Performance  Financial Performance  Next steps  Financial objectives  Sum up ©2023 Eutelsat Group. All rights reserved.

  4. Slide 4: Key Events

    ➢ Confirmation of European Union’s IRIS2 multi-orbit constellation representing a key step in Eutelsat’s LEO build-out strategy Key ➢ Procurement of first batch of LEO constellation extension to be Events technologically compatible with future IRIS2 assets ➢ Put option exercised for the partial disp

  5. Slide 5: Key financial data

    Key financial data YoY Change First Half 2024-25 Reported Like-for-like1 P&L Total Revenues €606m +5.9% +4.4% Operating Verticals Revenues €600m +5.0% +3.9% Adjusted EBITDA €335m -8.4% +4.9% Adjusted EBITDA margin 55.2% -8.6 pts +0.3 pt CAPEX Gross Capex2 €175m - Financial structure Net Debt / Adjus

  6. Slide 6: Operational performance

    Operational performance ©2023 Eutelsat Group. All rights reserved.

  7. Slide 7: H1 2024-25 revenue bridge

    H1 2024-25 revenue bridge H1 YoY revenue bridge (€m) +3.9%  Total revenues of €606m, up +4.4% like-for-like1 +23 +8 +5  Slight negative currency effect • €/$ rate of 1.09 vs 1.08 last year (2)  Positive swing of €4.8m in ‘Other Revenues’ • Of which €2.2m related to hedging 606 573  Revenues of t

  8. Slide 8: Revenues by verticals

    Revenues by verticals REVENUE REVENUES LIKE-FOR-LIKE2 CONTRIBUTION1 YOY CHANGE (€m) VIDEO 52% 309.2 -6.4% FIXED 20% 118.9 +22.2% CONNECTIVITY GOVERNMENT 16% 96.4 +21.9% SERVICES MOBILE 13% 75.3 +7.1% CONNECTIVITY TOTAL OPERATING VERTICALS 599.9 +3.9% OTHER REVENUES 6.3 +€4.8m3 1 Share of each applic

  9. Slide 9: Video

    Video 52%  H1 revenues of €309.2m, down 6.4% YoY like-for-like1 • In line with broader secular market trend 331 785 309  Q2 Revenues of €157.4m down 5.6%1 • QoQ increase reflecting linearisation of revenue recognition on certain contracts Q2 168 157 Q2  Professional video decline reflecting ongoi

  10. Slide 10: Fixed connectivity

    Fixed connectivity 20%  H1 revenues of €118.9m, up 22.2% YoY like-for-like1 • Driven by growth of LEO-enabled connectivity solutions 119  Q2 revenues €62.3m, up 15.9% year-on-year and by 9.9% Q-o-Q 95 • QoQ performance reflecting one-off impact from catch-up revenues from a LEO customer in Q1 62 Q

  11. Slide 11: Government Services

    Government Services 16%  H1 revenues of €96.4m, up 21.9% YoY like-for-like1 96  Q2 revenues of €50.1m, up 23.3% YoY like-for-like1 74  Reflecting 50 Q2 • Improved trend from latest US DoD renewals • Growing demand from non-US Governments Q2 41 Q1 46 Q1 34 H1 2023-24 H1 2024-25 1 At constant curre

  12. Slide 12: Mobile connectivity

    Mobile connectivity 13%  First Half Mobile Connectivity revenues or €75.3 million, up 7.1%1 year-on-year 75  Reflecting demand for LEO-based solutions notably for 71 maritime applications 33 Q2 Q2 36  Second Quarter revenues at €33.3 million, down 4.5% year-on-year and by 20.4% quarter-on- quarte

  13. Slide 13: 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  Natural erosion of the backlog, mainly in the Video segment, partly offset by growing LEO 4.3.90 3.9 3.7

  14. Slide 14: Financial performance

    Financial performance ©2023 Eutelsat Group. All rights reserved.

  15. Slide 15: Profitability

    Profitability Adjusted EBITDA (€m)  Reported Adjusted EBITDA of €334.9 million down by 8.4% Reported Like-for-like1  On a like for like basis1, Adjusted EBITDA was 366 up 4.9%. 335 319 335  Adjusted EBITDA margin at 55.1% at constant currency (55.2% reported) versus 63.8% Margin 63.8% reported an

  16. Slide 16: Net income

    Net income Extracts from the H1 H1 • Higher Other operating expenses of €690.8 million, consolidated income CHANGE compared to €183.9 million last year. They include: statement in €m 2023-24 2024-25 • A goodwill impairment €535 million in respect of GEO assets based on the test performed Revenues 57

  17. Slide 17: Gross Capex

    Gross Capex GROSS CAPEX (€m)  Gross Capex of €175 million  GEO satellite program delivery and launch last year 314  Lower LEO on-ground Capex versus last year  H1 Capex not representative of expected FY 2024-25 outturn, which will embark the 100 175 LEO satellite batch order 77.4 77.4 77.5  FY

  18. Slide 18: Change in net debt

    Change in net debt In €m (109) 100 10 175 (133) 2,696 2,544 Net Debt as of Operating Cash-flow Gross Capex Financial cost Other Net Debt as of 30/06/2024 31/12/2024 ©2023 Eutelsat Group. All rights reserved. 18

  19. Slide 19: Financial Structure

    Financial Structure NET DEBT / Adjusted EBITDA RATIO  Net Debt/Adjusted EBITDA ratio of 3.92x • Versus 4.13x at end-December 2023 and 3.79x at end-June 2024 4.13x 3.92x  Average cost of debt after hedging of 4.84% • Versus 3.16% in H1 2023-24  Average weighted maturity of 3.0 years • Versus 3.0 y

  20. Slide 20: Next Steps and Outlook

    Next Steps and Outlook ©2023 Eutelsat Group. All rights reserved.

  21. Slide 21: Exercise of put option confirming partial disposal of passive ground segment

    Exercise of put option confirming 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 Equi

  22. Slide 22: EU presses green button on IRIS2

    EU presses green button on IRIS2  Eutelsat a core member of SpaceRISE consortium to procure, OPERATIONAL & UTILIZED TRANSPONDERS build, and operate Iris2 European multi-orbit satellite constellation • €10.6bn project, 60% funded by EU and 40% by consortium members • Aiming for entry into service in

  23. Slide 23: Clearing route-map for OneWeb extension

    Clearing route-map for OneWeb extension  IRIS2 a key step in strategy to develop and expand Eutelsat’s Low Earth orbit capacities; extension of existing OneWeb constellation will be technologically compatible with future IRIS2 assets.  Procuring the first batch of 100 satellites for delivery by en

  24. Slide 24: 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

  25. Slide 25: Financial objectives confirmed

    Financial objectives1 confirmed 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 mediu

  26. Slide 26: To sum up

    To sum up: ✓ H1 2024-25 revenues and EBITDA margin in line with expectations; Objectives for FY confirmed ✓ FY 2024-25 Capex now expected in €500-600 million range (vs €700-800 million previously) ✓ Put option signed for partial disposal of passive ground activity, to generate net c.€500 million in

  27. Slide 27: Q&A

    Q&A ©2023 Eutelsat Group. All rights reserved.

Eutelsat Communications — H1 2024-25 Earnings Presentation on 6ix