Eutelsat Communications SA · EURONEXT:ETL
Eutelsat Communications SA — Q3 2019-20 Earnings Presentation
24 slides from Eutelsat Communications SA's earnings presentation, May 14, 2020
Slide 1: Third Quarter 2019-20 Revenues
THIRD QUARTER 2019-20 REVENUES 14 May 2020
Slide 2: Agenda
Agenda 1 Highlights 2 Q3 2019-20 Performance 3 Outlook 2
Slide 3: Highlights
Highlights Continued improvement in Operating Verticals trends Resilient Broadcast; return to slight growth QoQ Solid outcome of Spring renewal campaign with USG New commercial win in Maritime Mobility MoU to connect schools in DRC, highlighting the opportunity represented by government programs Upd
Slide 4: Continued improvement in Operating Verticals trends
Continued improvement in Operating Verticals trends PROGESSIVE UPTURN OF YOY QUARTERLY RETURN TO SLIGHT SEQUENTIAL GROWTH TRENDS FOR OPERATING VERTICALS Like-for-like YoY change for Like-for-like QoQ change for Operating Verticals revenues Operating Verticals revenues Q1 Q2 Q3 Q1 vs Q4 Q2 vs Q1 Q3 v
Slide 5: Long term resilience of Core Broadcast revenue
Long term resilience of Core Broadcast revenue Broadcast: quarterly revenues (€m) 197 197 198 197 196 195 197 197 193 196 192 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY 18 FY 19 FY 20 At constant currency and accounting standards Excluding Fransat Converted at FY19 €/$ rate of 1.14 Excluding ETL 25B and Q1
Slide 6: Konnect Africa to connect thousands of schools in DRC
Konnect Africa to connect thousands of schools in DRC ► MoU to provide high speed connectivity to 3,600 schools in DRC as part of Schoolap project ► Access to a digital platform of high quality teaching materials provided by local partners ► Scope to expand in the future • > 20,000 rural schools in
Slide 7: Agenda: Q3 2019-20 performance
Agenda 1 Highlights 2 Q3 2019-20 performance 3 Outlook 7
Slide 8: Q3 2019-20 revenues
Q3 2019-20 revenues Q3 2019-20 Y-O-Y REVENUE BRIDGE (€M) ► Total revenues of €322m, down 4.4% +4 ► Lower Other revenues -1.6% • Positive one-off last fiscal year (13) (5) ► Positive currency effect • €/$ rate of 1.10 vs 1.14 last year 337 322 ► No perimeter impact ► Revenues from the Operating Repor
Slide 9: Q3 2019-20 revenues by application
Q3 2019-20 revenues by application REVENUE REVENUES LIKE-FOR-LIKE2 CHANGE CONTRIBUTION1 (€m) YoY QoQ Broadcast 62% 199 -0.2% +2.1% Data & Professional 14% 10% 45 -7.6% +0.2% Video Government 12% 40 -2.4% +2.3% Services Fixed Broadband 6% 19 -2.6% -2.3% Mobile Connectivity 6% 21 +2.0% -3.5% Total Ope
Slide 10: Broadcast
Broadcast REVENUES (€M) ► Revenues of €199m, stable like-for- like1 on a y-o-y basis • Return of a couple of transponders in Russia • Higher revenues in MENA and at 28.5°East ► Revenues up 2.1% Q-o-Q Q4 198 • Positive one-off for circa €1m ► Robust commercial activity Q3 198 Q3 199 • New DTH platfor
Slide 11: Channel count stable QoQ
Channel count stable QoQ CHANNEL COUNT HD PENETRATION MPEG-4 -2% stable +10% 7,021 -2% 4,731 1,667 4,818 6,879 6,867 1,509 22% Penetration 24% 69% Penetration 69% March Dec. March 2019 2019 2020 March 2019 March 2020 March 2019 March 2020 ► Half of YoY channel ► HD continuing to ► MPEG-4 considerabl
Slide 12: Data & Professional Video
Data & Professional Video REVENUES (€M) ► Revenues of €45m, down 7.6% y-o-y like-for-like1 ► Revenues stable Q-o-Q ► Environment remains highly competitive Q4 49 ► Ongoing pricing pressure Q3 48 Q3 45 ► Improving trends vs H1 51 Q2 Q2 • Better volumes 45 • Easing comparison basis Q1 52 Q1 43 ► Profe
Slide 13: Government Services
Government Services REVENUES (€M) ► Revenues of €40m, down 2.4% y-o-y like-for-like1 • Carry-forward effect of 2019 renewals rates (85% in Spring and 90% in Fall) • Contribution of EGNOS since mid- Q4 40 February Q3 40 Q3 40 ► Revenues up 2.3% Q-o-Q ► USG renewal rate above 85% in Q2 39 Q2 39 Spring
Slide 14: Fixed Broadband
Fixed Broadband REVENUES (€M) ► Revenues of €19m, down 2.6% y-o-y like-for-like1 ► Broadband Europe • Lack of capacity • Lower contribution from traditional Q4 21 distributors • Growth of PPP Q3 19 Q3 19 ► Broadband Africa • Modest revenues Q2 20 Q2 19 • Focus to remain on trialling distribution mod
Slide 15: Mobile Connectivity
Mobile Connectivity REVENUES (€M) ► Revenues of €21m, up 2.0% y-o-y like-for-like1 • Continued ramp-up of Maritime ► Revenues down 3.5% Q-o-Q • Reflecting a positive one-off in Q2 21 Q4 ► Effect of Covid-19 21 Q3 20 Q3 • Limited to a slowdown of capacity contracts on KA-SAT in March so far • Impact
Slide 16: Backlog and Fill Rate
Backlog and Fill Rate BACKLOG (€BN) OPERATIONAL AND UTILIZED TRANSPONDERS 1,418 1,387 1,377 4.4 4.3 4.2 960 966 959 Broadcast 73% 68% 67% 31 March 2019 31 Dec. 2019 31 March 2020 31 March 2018 31 Dec. 2019 31 March 2020 Fill 67.7% 69.7% 69.7% rate ► 3.2 years of revenues Operational transponders Uti
Slide 17: Agenda: Outlook
Agenda 1 Key Highlights 2 Q3 2019-20 performance 3 Outlook 17
Slide 18: Eutelsat is well positioned to weather Covid-19 crisis
Eutelsat is well positioned to weather Covid-19 crisis ► Nominal operations allowing full business continuity ► Highly resilient activity • Long-term contracts • Substantial backlog representing 3.2 years of revenues • Criticality of our capacity for customers ► Business to remain highly cash genera
Slide 19: Impact of Covid-19 on revenues: highly resilient activity
Impact of Covid-19 on revenues: highly resilient activity LIMITED IMPACT ON FY 20 FY 21 IMPACT UNDER ASSESSMENT ► Resilience of core ► FY 20 effects likely to be broadcast (>60% of revenues) reflected at least into early FY 21 ► Professional Video, in particular ► Likely delays in deployment plan Oc
Slide 20: Financial outlook adjusted on April 9 is confirmed
Financial outlook adjusted on April 9 is confirmed OPERATING VERTICALS REVENUES1 ► FY 2019-20: around €1,250m ► FY 2019-20 to FY 2021-22: not exceeding average CASH CAPEX of €400m2 per year ► Temporary suspension of objective pending DISCRETIONARY FREE CASH FLOW3 assessment of Covid-19 crisis impact
Slide 21: To Sum Up
To Sum Up Continued underlying improvement in revenue trends as expected Resilient Broadcast, with return to slight growth QoQ Solid financial position with strong cash generation capacity, even in an environment of lower growth High level of shareholder remuneration even after 30% dividend cut Well
Slide 22: Appendix
APPENDIX
Slide 23: Nominal deployment plan under review as Covid-19 assessment underway
Nominal deployment plan under review as assessment of COVID-19 impact is underway KONNECT EUTELSAT EUTELSAT EUTELSAT 10B Name VHTS HOTBIRD 13F HOTBIRD 13G Orbital TBD TBD 13° East 13° East 10° East Position Launch date1 Q3 20203 H2 2021 H2 2021 H2 2021 2022 Manufacturer Launcher TBD TBD TBD TBD Flex
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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