Eutelsat Communications Sa · EURONEXT:ETL

Eutelsat Communications Sa — Q3 2023-24 Earnings Presentation

20 slides from Eutelsat Communications Sa's earnings presentation, May 14, 2024

  1. Slide 1: Third Quarter 2023-24 Revenues

    Third Quarter 2023-24 REVENUES 14 May 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  Highlights  Q3 2023-24 Performance  Outlook ©2023 Eutelsat Group. All rights reserved.

  4. Slide 4: Highlights

    Highlights ➢ Third Quarter and Nine-month revenues in line with expectations ➢ Video follows overall market trend of mid-single digit decline; base effect of non - renewal of Digitürk contract and Russian sanctions washed through from Q3 ➢ Double-digit growth in Connectivity (Government Services +22

  5. Slide 5: Successful launch of EUTELSAT 36D satellite

    Succesful launch Succesfull lauch of EUTELSAT of E36D 36D satellite  Launched on March 30  Entry into service in calendar H2 2024  Embarking 70 physical Ku-band transponders • Assuring service continuity with optimized performance for customers in Video • Embarking additional flexibility and cove

  6. Slide 6: OneWeb ground network roll-out on track

    OneWeb ground network roll-out on track Coverage April 2024 Coverage Summer 2024 (E) Based on 34 SNPs Based on 38 SNPs NB/ Excluding Afghanistan, Belarus, China Hong Kong Special Administrative Region, Cuba, Ecuador, Iran (Islamic Republic of Iran), Republic of Korea, Russian Federation, Syrian Arab

  7. Slide 7: Landmark commercial deal with Intelsat for LEO capacity

    Landmark commercial deal with Intelsat for LEO capacity  Strategic multi-year partnership valued at up to $500 million over duration • Seven-year agreement commencing in mid-2024 • Firm commitment of $250m, including the $45m deal signed in March 2023 • Options for a further $250m  Significantly d

  8. Slide 8: Refinancing of 2025 Eutelsat S.A. bond and RCF completed

    Refinancing of 2025 Eutelsat S.A. bond and RCF completed 2.000% New 3y+1+1 New €600m HY bond 1.125% €450m RCF  Successful offering of €600 million in 2.250% 1.500% 9.750% €53 Partial m redemption of the €800m bond aggregate principal amount of senior €623m €75m €53m €100m notes due 2029 €600m €450m

  9. Slide 9: Q3 2023-24 Performance

    Q3 2023-24 Performance ©2023 Eutelsat Group. All rights reserved.

  10. Slide 10: Q3 2023-24 revenues

    Q3 2023-24 revenues Q3 YoY revenue bridge (€m)  Total revenues of €300.8m, up +8.3% like-for-like +8.5%  Negative currency effect +24 • €/$ rate of 1.09 vs 1.07 last year  Positive swing of €0.2m in ‘Other Revenues’ +7 0 • Of which €0.7m related to hedging -3  Revenues of the Operating Verticals

  11. Slide 11: Q3 revenues by verticals

    Q3 revenues by verticals REVENUE REVENUES LIKE-FOR-LIKE2 CONTRIBUTION1 CHANGE (€m) VIDEO 53% 160.2 -4.9% GOVERNMENT 15% 43.6 +22.1% SERVICES MOBILE 13% 39.2 +48.0% CONNECTIVITY FIXED 19% 57.4 +24.2% CONNECTIVITY TOTAL OPERATING VERTICALS 300.3 +8.5% OTHER REVENUES 0.5 +€0.2m3 1 Share of each applica

  12. Slide 12: Video

    Video 53%  Q3 revenues of €160.2m, down 4.9% YoY like-for-like1 • In line with broader market trend • Wash-through of the base effect of last year’s non-renewal of 785 Digitürk contract and Russian sanctions 535 491  Q3 revenues down 3.9% QoQ1 • Non-recurrence of a one-off c.€3 million contract in

  13. Slide 13: Government Services

    Government Services 15%  Q3 revenues of €43.6m, up 22.1% YoY like-for-like1 • Reflecting the contribution of the EGNOS GEO-4 contract on HOTBIRD 13G2 118 • Integrating the carry-forward effect of recent US Department of Defence renewals, with a renewal rate of >80% in Fall 2023 98 44 Q3  Q3 revenu

  14. Slide 14: Mobile connectivity

    Mobile connectivity 13%  Q3 revenues of €39.2m, up 48.0% YoY like-for-like1 • Entry into service of EUTELSAT 10B • OneWeb growth 110  Q3 revenues up by 11.9% QoQ1 83  Extended partnership with 39 Q3 Universal Satcom for Eutelsat’s Geostationary ADVANCE maritime Q3 27 packaged solutions 36 Q2 Q2 3

  15. Slide 15: Fixed connectivity

    19% Fixed connectivity  Q3 revenues of €57.4m, up 24.2% YoY like-for-like1 • Entry into service of KONNECT VHTS 152 137 • Contribution from OneWeb  Q3 revenues by 6.7% Q-o-Q1 57 Q3 Q3 44  OneWeb gaining traction with the activation of contracts where the service is now fully operational: • South

  16. Slide 16: Backlog

    Backlog OPERATIONAL & UTILIZED TRANSPONDERS BACKLOG (€BN) Excluding Managed services  Backlog at €3.9 billion on 31 March 2024 vs. €3.5bn on 31 March 2023  Representing 3.4 years of revenues 4.3.50 3.9 3.9  Natural erosion in the Video segment, in the absence of major renewals this quarter, offse

  17. Slide 17: Outlook

    Outlook ©2023 Eutelsat Group. All rights reserved.

  18. Slide 18: Financial objectives confirmed

    GROUP ► Between €1.25bn and €1.30bn in FY 2024, REVENUES ► Double digit CAGR between FY 2024 and FY 2028 ADJUSTED ► Between €650m and €680m in FY 2024, EBITDA ► Double digit CAGR between FY 2024 and FY Financial objectives 2028 confirmed CASH ► Between €600m and €650m in FY 2024, CAPEX ► €600 to €70

  19. Slide 19: Q&A

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

  20. Slide 20: Appendix: GEO launch schedule

    Appendix: GEO launch schedule NAME FLEXSAT AMERICAS Orbital N/A Position Delivery date1 2026 Manufacturer Coverage Americas Applications Connectivity Total capacity Over 100 Gbps (TPX2/Spotbeams) o/w expansion 2 Over 100 Gbps 1 Calendar year 2 Excludes unannounced redeployments ©2023 Eutelsat Group.

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