Eutelsat Communications Sa · EURONEXT:ETL

Eutelsat Communications Sa — FY2023-24 Earnings Presentation

28 slides from Eutelsat Communications Sa's earnings presentation, Aug 9, 2024

  1. Slide 1: Full Year 2023-24 Results

    Full Year 2023-24 RESULTS 9 August 2024 ©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  Outlook and Financial Objectives  Summing Up ©2023 Eutelsat Group. All rights reserved.

  4. Slide 4: Highlights FY 2023-24

    Highlights  FY 2023-24 results in line with objectives with Operating Vertical revenues of €1,268 million and adjusted EBITDA of €698m 1  Eutelsat / OneWeb combination closed end-September 2023 creatin the first GEO-LEO operator  Growth in Connectivity thanks to acceleration of LEO revenues as we

  5. Slide 5: FY 2023-24 objectives attained

    FY 2023-24 objectives attained YoY Change Reminder of FY FY 2023-24 2023-24 Reported Like-for-like Objectives P&L Total Revenues €1,213m +7.2% +5.6%1 - Operating Verticals Revenues €1,209m +6.5% +5.9%1 - Operating Verticals Revenues as per financial €1.25bn to €1,268m - - objectives2 €1.3bn Adjusted

  6. Slide 6: Strong commercial momentum

    Strong commercial momentum on Major contracts boosting backlog Reinforcing network of distributors ©2023 Eutelsat Group. All rights reserved. 6

  7. Slide 7: Growing Backlog

    Growing Backlog OPERATIONAL & UTILIZED TRANSPONDERS  Backlog at €3.9 billion on 30 June 2024 vs. BACKLOG (€BN) €3.4bn in June 2023 Excluding Managed services  Representing 3.5 years of revenues  Contribution of OneWeb offsetting the natural erosion of the backlog, especially in the Video 3.9 segm

  8. Slide 8: Network coverage on target

    Network coverage on target On track to 90% Global coverage by end of summer 2024 End-June 2024 End of Summer 2024 (E) ©2023 Eutelsat Group. All rights reserved. 8

  9. Slide 9: Operational performance

    Operational performance ©2023 Eutelsat Group. All rights reserved.

  10. Slide 10: Note on FY 2023-24 presentation

    Note on FY 2023-24 presentation Reported indicators include OneWeb since October 1st 2023 (Operating revenues, Total revenues, Adjusted EBITDA, Financial result, Income Tax, Group Share of Net Income, Cash Capex, Net Debt, Net Debt/ Adjusted EBITDA, Backlog) and are compared to Eutelsat’s reported F

  11. Slide 11: FY revenues

    FY revenues FY YoY revenue bridge (€m) +5.9% +69  Total revenues of €1,213m, up +5.6% like-for-like +24 +8  Revenues of €1,268m as per per financial objectives1 (20)  Negative currency effect • €/$ rate of 1.08 vs 1.04 last year 1,213 1,131  Positive swing of €8.4m in ‘Other Revenues’ • Of which

  12. Slide 12: Revenues by verticals

    Revenues by verticals REVENUE REVENUES LIKE-FOR-LIKE2 CONTRIBUTION1 YOY CHANGE (€m) VIDEO 54% 650.6 -6.8% FIXED 19% 234.1 +29.1% CONNECTIVITY GOVERNMENT 14% 165.3 +5.0% SERVICES MOBILE 13% 159.3 +49.3% CONNECTIVITY TOTAL OPERATING VERTICALS 1,209.4 +5.9% OTHER REVENUES 3.7 +€8.4m3 1 Share of each ap

  13. Slide 13: Video

    Video 54%  FY revenues of €650.6m, down 6.8% YoY like-for- like1 • 785 Secular market decline 705 • Effect of sanctions against certain Russian and Iranian channels 651 impacting H1 • Full year impact of early non-renewal of Digitürk contract with Q4 170 (from mid-November 2022) 159 Q4 • Headwinds

  14. Slide 14: Fixed connectivity

    19% Fixed connectivity  FY revenues of €234.1m, up 29.1% YoY like-for- 234 like1 • Entry into service of KONNECT VHTS • Progressive transfer of EUTELSAT KONNECT capacity to 178 buoyant African market 82 Q4 • Uplift in OneWeb LEO contribution with the activation and progressive ramp up of commercial

  15. Slide 15: Government Services

    Government Services 14%  FY revenues of €165.3m, up 5.0% YoY like-for- like1 165 • Contribution of EGNOS GEO-4 contract on HOTBIRD 13G2 143 • Contribution from OneWeb’s LEO- connectivity solutions • More favourable outcomes of the past two United States 47 Q4 Department of Defense renewal campaigns

  16. Slide 16: Mobile connectivity

    Mobile connectivity 13% 159  FY revenues of €159m, up 49.3% YoY like-for- like1 110 49 Q4 • Entry into service of the high-throughput satellite, EUTELSAT 10B • Contribution from OneWeb. Q4 27 39 Q3  Q4 revenues stood at €49.4 million, up 80.4% Q3 27 year-on-year and up by 25.6% QoQ1 36 Q2 Q2 30 Q1

  17. Slide 17: Financial performance

    Financial performance ©2023 Eutelsat Group. All rights reserved.

  18. Slide 18: Profitability

    Profitability  FY 2023-24 Adjusted EBITDA at €718.9m down 12.9% YoY reported Adjusted EBITDA (€m)  Reflecting: • higher operating costs due to the impact of the consolidation 825 of OneWeb 719 • Cost rise nevertheless contained at +8.9%1, reflecting cost control measures  Adjusted EBITDA margin a

  19. Slide 19: Net income

    Net income Extracts from the FY FY • Other operating costs of €208m, versus income of consolidated income CHANGE €204m last year, mainly due to last year’s €352m statement in €m 2022-23 2023-24 payment related to Phase II of C-Band proceeds, as well as the fair value adjustment of shares owned by Re

  20. Slide 20: Cash Capex

    Cash Capex GROSS CASH CAPEX (€m) CAPEX (€m)  Cash Capex of €463 million • Reflecting the consolidation of OneWeb 517  Below initial estimates due to LEO 463 constellation phasing and capex delays  Gross Capex1 of €517 million 271  From FY2024-25 onwards Gross Capex to 77.4 77.4 77.5 be adopted a

  21. Slide 21: Change in net debt

    Change in net debt In €m (109) 113 517 48 75 (343) 2,766 (632) 2,544 Net Debt as of Operating Cash- Gross Capex Financial cost Assets disposal OW perimeter Other Net Debt as of 30/06/2023 flow 30/06/2024 ©2023 Eutelsat Group. All rights reserved. 21

  22. Slide 22: Financial Structure

    Financial Structure NET DEBT / Adjusted EBITDA RATIO  Net Debt/Adjusted EBITDA ratio of 3.79x • Versus 3.35x as of 30 June 2023 and 4.13x at end December 2023 3.79x 3.35x  Average cost of debt after hedging of 4.87% • Versus 2.96% in FY 23  Average weighted maturity of 3.5 years • Versus 3.6 y at

  23. Slide 23: Outlook

    Outlook ©2023 Eutelsat Group. All rights reserved.

  24. Slide 24: Key assumptions for FY 2024-25

    Key assumptions ✓ Progress on LEO ramp-up; full deployment of ground for FY 2024-25 network expected by H1 2025 ✓ Robust Connectivity growth, driven by acceleration of OW service revenues ✓ Offsetting Video revenues expected down by mid-single digits in line with the broader market ✓ Adjusted EBITDA

  25. Slide 25: Progressive approach to OneWeb Next Generation constellation

    Progressive approach to OneWeb Next Generation constellation ✓Future investments prioritising business continuity for customers ✓Adapted to existing LEO network utilization ✓Technology maturity ✓Opportunities for partnerships ✓Financing options linked to partnerships ✓Within strict financial framewo

  26. Slide 26: Eutelsat Group Financial objectives

    Eutelsat Group REVENUES ► FY 2024-25 revenues of the four operating verticals around the same level as FY 2023-24 Financial objectives1 ADJUSTED ► FY 2024-25 Adjusted EBITA margin slightly below the EBITDA level of FY 2023-24 GROSS ► Between €700 and €800m in FY 2024-25 CAPEX2 LEVERAGE ► Targeting m

  27. Slide 27: To sum up: Key takeaways

    To sum up: Key takeaways ✓ FY 2023-24 results in line or exceeding objectives ✓ Debt refinancing secured with successful 2029 Bond Issuance ✓ Commercial traction in Connectivity driven by LEO offering, underpinning Backlog of almost €4bn ✓ FY 2024-25 to be a year of transition as we complete merger

  28. Slide 28: Q&A

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

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