Eutelsat Communications Sa · EURONEXT:ETL
Eutelsat Communications Sa — FY2022-23 Earnings Presentation
28 slides from Eutelsat Communications Sa's earnings presentation, Jul 28, 2023
Slide 1: Full Year 2022-23 Results
FULL YEAR 2022-23 RESULTS 28 July 2023
Slide 2: Agenda
AGENDA 1. Key Events 2. Operational performance 3. Financial performance 4. Outlook 5. Q&A 2
Slide 3: Highlights
HIGHLIGHTS • FY 2022-23 Operating Vertical revenues of €1,136 million, or €1,157m (€/$ rate of 1.00), at the upper end of expected range, with sustained positive momentum in Mobile Connectivity • • Robust financial performance including industry-leading profitability with an Adjusted EBITDA margin o
Slide 4: Key Financial Data
KEY FINANCIAL DATA YoY Change FY 2022-23 Reported Like-for-like Total Revenues €1,131m -1.8% -5.5%1 Operating Verticals Revenues2 €1,136m -1.1% -4.8%1 Adjusted EBITDA margin at constant 73.0% -1.8 pt currency3 Cash Capex3 -€271m +€9m Reported Discretionary Free Cash-Flow3 €462m +€19m Adjusted Discre
Slide 5: FY Revenues
FY REVENUES FY YoY revenue bridge (€m) Total revenues of €1,131m, down 5.5% like-for-like -4.8% Positive currency effect • €/$ rate of 1.04 vs 1.14 last year +43 0 (8) (55) Negative swing of €5m in ‘Other Revenues’ • Of which -€15m related to hedging 1,152 1,131 Revenues of the Operating Ver
Slide 6: New Vertical Breakdown
NEW VERTICAL BREAKDOWN Effective from June 2023 Broadcast Video (incl. Broadcast and Professional video) Data & Professional Video Government Services Government Services Fixed Connectivity (incl. Fixed Broadband and Data) Fixed Broadband Mobile Connectivity Mobile Connectivity Total Operating Verti
Slide 7: FY 2022-23 Revenues by Application
FY 2022-23 REVENUES BY APPLICATION REVENUE REVENUES LIKE-FOR-LIKE2 CONTRIBUTION1 (€m) YOY CHANGE VIDEO 62% 705 -8.3% GOVERNMENT 12% 143 -7.2% SERVICES 110 +26.8% MOBILE 10% CONNECTIVITY FIXED 16% 178 -2.3% CONNECTIVITY 1 Share of each application as a percentage of total revenues TOTAL OPERATING VER
Slide 8: Agenda
AGENDA 1. Key Events 2. Operational performance 3. Financial performance 4. Outlook 5. Q&A 8
Slide 9: Video
VIDEO 62% FY revenues of €705m, down 8.3% YoY like-for- 785 like1 705 752 • Full effect of the non-renewal of the Digitürk contract • Lower revenues in Europe • Effect of sanctions mainly impacting the Second Half of FY Q4 188 170 Q4 2022-23 • Seasonality in Professional video 187 Q3 169 Q3 Eute
Slide 10: Government Services
GOVERNMENT SERVICES 12% FY revenues of €143m, down 7.2% YoY like- 144 143 for-like1 Q4 revenues of €45m up 25.8% YoY like-for- 36 Q4 45 Q4 like and up 45.0% QoQ 1 • One-off contract of €14m with the German space agency, Q3 35 Q3 31 DLR Q2 37 32 Q2 Excluding this impact, -14.2% YoY like-for-lik
Slide 11: Mobile Connectivity
MOBILE CONNECTIVITY 10% 110 FY revenues of €110m, up 26.8% YoY like-for- like1 80 • Ongoing positive momentum 27 Q4 • Strong growth in Maritime Q4 23 27 Q3 Q4 revenues of €27.3m up 20.7% YoY like-for- like and 2.9% QoQ 1 Q3 21 • Reflecting positive impact of the commercialization in the 30 Q2 Fi
Slide 12: Fixed Connectivity
FIXED CONNECTIVITY 16% 172 178 FY revenues of €178m, down 2.3% YoY like- for-like1 41 Q4 • Wholesale agreements with Orange, TIM, Hispasat and Q4 49 Swisscom • Ramp-up of the African operations 44 Q3 • In Fixed Data, improved volume trends partly offset Q3 43 negative impact of ongoing competitive
Slide 13: Backlog & Fill Rate
BACKLOG & FILL RATE BACKLOG (€BN) OPERATIONAL & UTILIZED TRANSPONDERS Excluding Managed services Fill rate 73.2% 67.8% 70.8% 4.0 3.4 1,361 1,352 1,351 996 916 953 Operational Transponders Utilized Of which Transponders Video 64% 59% 30 June 2022 30 June 2023 30 June 2022 31 March 2023 30 June 2023 •
Slide 14: Agenda
AGENDA 1. Key Events 2. Operational performance 3. Financial performance 4. Outlook 5. Q&A 14
Slide 15: Profitability
PROFITABILITY Adjusted FY 2022-23 Adjusted EBITDA margin of 72.9% at EBITDA (€m) constant currency1 down 1.9 point YoY • Lower revenues, especially in the Video vertical 862 825 Higher operating costs Margin at • Increased staff and technical costs due changing revenue mix constant 74.8% 72.9% c
Slide 16: Net Income
NET INCOME Extracts from the FY FY consolidated income CHANGE statement in €m 2021-22 2022-23 Revenues 1,152 1,131 -1.8% Adjusted EBITDA1 862 825 -4.2% ► Lower D&A due to lower in-orbit and on-ground Operating depreciation. H13F and H13G in service end of period income 425 573 +35.0% ► Other operati
Slide 17: Adjusted Discretionary Free Cash-Flow
ADJUSTED DISCRETIONARY FREE CASH-FLOW 94 In €m One-off costs 518 related to specific projects, notably 56 COMETE and (271) Eutelsat-OneWeb 735 (95) combination 1 (1) 462 (1) (2) Net Cash-Flow from OW take-or-pay Cash Capex Interest and Other fees Discretionary Free operations paid net of interests C
Slide 18: Net Debt Evolution
NET DEBT EVOLUTION In €m (109) 190 (462) 143 2,814 81 2,766 Net Debt as of Reported Dividend Equity investments Other Net Debt as of 30/06/22 DFCF (mainly OneWeb) 30/06/2023 18
Slide 19: Financial Structure
FINANCIAL STRUCTURE NET DEBT / Net Debt/Adjusted EBITDA ratio of 3.35x Adjusted EBITDA RATIO • Versus 3.27x as of 30 June 2022 and 3.55x at end December 2022 3.27x 3.35x Average cost of debt after hedging of 2.96% • Versus 2.55% in FY 22 Average weighted maturity of 3.6 years • Versus 4.3 y at
Slide 20: Agenda
AGENDA 1. Key Events 2. Operational performance 3. Financial performance 4. Outlook 5. Q&A 20
Slide 21: FY 2023-24: Revenue Trends by Application
FY 2023-24: REVENUE TRENDS BY APPLICATION ➢ Expected broadly in line with market trends, a mid-single digit decline VIDEO ➢ Excluding the effect of sanctions which will be embarked for a full 12 months versus six months in FY 2022-23 ➢ Continuing to reflect the outcome of past and upcoming US DoD re
Slide 22: Financial Outlook Confirmed (Standalone)
FINANCIAL OUTLOOK CONFIRMED (STANDALONE) OPERATING VERTICALS REVENUES ► Growth from FY 2023-24 onwards ► Not exceeding €400m1 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 DISCRETIONARY two fiscal years FY 2022-23
Slide 23: 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 24: Sustained Positive Commercial Ramp-Up
SUSTAINED POSITIVE COMMERCIAL RAMP-UP Sustained commercial dynamic Telstra Deal announced in June 2023 (1) +$300m since October 2022 Secured backlog ($m) 900 One of the world’s largest rollouts of Low Earth Orbit (LEO) 800 backhaul for a commercial mobile network in Australia. 600 Telstra and On
Slide 25: 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 Late September 2023 → Extraordinary General Meeting of Eutelsat called to approve the transaction → Closing Closing of the transaction expected in late S
Slide 26: Looking Ahead: All in Place for a Successful Combination
LOOKING AHEAD: ALL IN PLACE FOR A SUCCESSFUL COMBINATION Rebalancing of our business towards Connectivity, • where demand is booming Reorganization along two business units to enhance • customer-centricity, is now live Substantial growth capacity with E10B already in service, • with incremental 35 G
Slide 27: @ eutersat
@ eutersat
Slide 28: 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
Eutelsat Communications — FY2022-23 Earnings Presentation on 6ix