Eutelsat Communications Sa · EURONEXT:ETL
Eutelsat Communications Sa — Q3 2022-23 Earnings Presentation
24 slides from Eutelsat Communications Sa's earnings presentation, May 11, 2023
Slide 1: Third Quarter 2022-23 Revenues & OneWeb Update
THIRD QUARTER 2022-23 REVENUES . ONEWEB UPDATE 11 May 2023
Slide 2: Agenda
AGENDA 1. Key Events 2. Q3 2022-23 Performance 3. Outlook 4. OneWeb Update 5. Q&A 2
Slide 3: Highlights
HIGHLIGHTS • Q3 operating vertical revenues of €272m, down slightly QoQ. Nine- month operating revenues down -5.1%, at the mid-point of our Full Year 2022-23 revenue objective • • Improved trend in Government on the back of Airbus deal and ahead of entry into service of incremental capacity in FY 20
Slide 4: Q3 Revenues
Q3 REVENUES Q3 YoY revenue bridge (€m) Total revenues of €272m, down 7.5% like-for-like Positive currency effect -7.0% • €/$ rate of 1.07 vs 1.13 last year +7 0 (2) Negative swing of €2m in ‘Other Revenues’ (20) • Of which +€1m related to hedging 287 Revenues of the Operating Verticals down
Slide 5: Q3 FY 2022-23 Revenues by Application
Q3 FY 2022-23 REVENUES BY APPLICATION REVENUE REVENUES LIKE-FOR-LIKE2 CONTRIBUTION1 (€m) YOY CHANGE BROADCAST 157 -10.6% 58% DATA & 14% PROFESSIONAL 38 -7.3% VIDEO GOVERNMENT 11% SERVICES 31 -13.4% FIXED BROADBAND 7% 19 +7.3% MOBILE CONNECTIVITY 10% 27 +23.0% 1 Share of each application as a percent
Slide 6: Agenda
AGENDA 1. Key Events 2. Q3 2022-23 Performance 3. Outlook 4. OneWeb Update 5. Q&A 6
Slide 7: Broadcast
BROADCAST 58% Q3 revenues of €157m, down 10.6% YoY 785 like-for-like1 • Full effect of the non-renewal of the Digitürk contract 523 495 • Lower revenues in Europe • Effect of sanctions against certain Russian and Iranian channels mainly impacting the Second Half of FY 2022-23 Q3 173 157 Q3 Eutel
Slide 8: Data & Professional Video
DATA & PROFESSIONAL VIDEO 14% Q3 revenues of €38m, down 7.3% YoY like-for- like1 • Q3 revenues down 4.7% QoQ 1 118 122 Improved volumes in Fixed Data • Partly offsetting impact of ongoing pricing pressure Slight deterioration in Professional Video Q3 40 38 Q3 • Phasing of a specific contract •
Slide 9: Government Services
GOVERNMENT SERVICES 11% Q3 revenues of €31m, down 13.4% YoY like- 108 98 for-like1 • Full negative carry-forward effect of recent US Department of Defence renewals, with in particular, a renewal rate of 65% in Fall 2022 • Partially offset by take-or-pay contract with Airbus Q3 35 31 Q3 Q3 revenu
Slide 10: Fixed Broadband
FIXED BROADBAND 7% Q3 revenues of €19m, up 7.3% like-for-like1 • Wholesale agreements with Orange, TIM, Hispasat 47 56 and Swisscom • Ramp-up of the African operations Q3 revenues up 3.5% QoQ1 19 Q3 Q3 17 Revenues expected broadly stable over 19 Q2 Full Year Q2 16 • Growth to re-accelerate in
Slide 11: Mobile Connectivity
MOBILE CONNECTIVITY 10% 57 83 Q3 revenues of €27m, up 23.0% YoY like-for- like1 • Ongoing positive momentum • Strong growth in Maritime 27 Q3 Q3 revenues down 4.1% QoQ 1 • Reflecting timing of commercialization of the third beam on Q3 21 30 Q2 EUTELSAT QUANTUM booked in Q2 with retroactive effec
Slide 12: Backlog & Fill Rate
BACKLOG & FILL RATE BACKLOG (€BN) OPERATIONAL & UTILIZED TRANSPONDERS Fill rate 70.7% 70.2% 67.8% 4.0 3.7 3.5 1,358 1,359 1,352 961 955 Operational 916 Transponders Utilized Of which Transponders Broadcast 63% 59% 58% 31 March 2022 31 Dec. 2022 31 March 2023 31 March 2022 31 Dec. 2022 31 March 2023
Slide 13: Agenda
AGENDA 1. Key Events 2. Q3 2022-23 Performance 3. Outlook 4. OneWeb Update 5. Q&A 13
Slide 14: Financial Outlook Confirmed
FINANCIAL OUTLOOK CONFIRMED OPERATING VERTICALS ► Between €1,135 to €1,165m in FY 2022-231 REVENUES1 ► Growth from FY 2023-24 onwards ► Not exceeding €400m2 per annum for each CASH CAPEX of the two fiscal years FY 2022-23 and FY 2023-24 ► Average of €420m per annum over the next ADJUSTED DISCRETIONA
Slide 15: Upcoming Launches
UPCOMING 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 Applications Video Connectivity Government Total capacity 70 transponders in Ku-band Over 100 Gbp
Slide 16: Agenda
AGENDA 1. Key Events 2. Q3 2022-23 Performance 3. Outlook 4. OneWeb Update 5. Q&A 16
Slide 17: Gen-1 on Track for Global Coverage by Year End
GEN-1 ON TRACK FOR GLOBAL COVERAGE BY YEAR END November March Q4 2020 2023 2023e Cumulative • 100% of launches completed for operations Number of Launches 3 18 19 • Additional launch is planned for resiliency and redundancy Cumulative • 100% of satellites launched for global coverage and Number of 7
Slide 18: Robust Commercial Ramp-Up
ROBUST COMMERCIAL RAMP-UP Key enablers… …supporting positive commercial dynamic +$300m since Sellable Capacity (1) Order book ($m) October 2022 450 Gbps currently 1.3 tbps expected by Q4 2023 900 Fill rate of 5%, and 21% in Alaska in March ‘23 vs. 6% May ‘22 800 Terminal Avaibility (flat panel
Slide 19: Strong Distribution Network Across Key Verticals
STRONG DISTRIBUTION NETWORK ACROSS KEY VERTICALS Fixed Connectivity . Mobile Connectivity . Government Services Cellular Backhaul in Africa with Maritime: enabling coverage with $200m joint venture to bring high- Airtel densification in key areas speed satellite connectivity to Saudi Arabia an
Slide 20: Looking Ahead: Update on the Combination
LOOKING AHEAD: UPDATE ON THE COMBINATION 14 November 2022 → Signing of the final combination agreement Q4 2022 / mid-2023 → Regulatory approvals By Q3 2023 → Extraordinary General Meeting of Eutelsat to approve the transaction → Closing Regulatory approval workstream progressing according to plan
Slide 21: Underpinning Our Synergy Expectations
UNDERPINNING OUR SYNERGY EXPECTATIONS Confirming high value-creative synergies, with low execution risk Revenues Leverage Eutelsat sales forces, geographic reach and customer base to NPV OF Synergies accelerate commercial ramp-up of OneWeb SYNERGIES Over Costs Opex optimization driven by cost avoida
Slide 22: Gen-2 to Unlock Significant Value at Optimized Cost
GEN-2 TO UNLOCK SIGNIFICANT VALUE AT OPTIMIZED COST Development to begin as soon as 2024 - Market-informed design process Bottom-up market analysis for right-sizing Ancillary payload to enable fleet expansion at minimum marginal cost - From 3 to 5 times the capacity of Gen-1 Bulkier and fewer satell
Slide 23: @ eutersat
@ eutersat
Slide 24: 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
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