Telesat Corporation · NASDAQ:TSAT
Telesat — Investor Presentation (November 2024)
31 slides from Telesat's investor presentation, November 2024
Slide 1: Investor Presentation November 2024
Investor Presentation November 2024
Slide 2: Disclosures
Disclosures Note: unless otherwise stated, all values included are in Canadian dollars. This Presentation is provided to you on the condition that you agree that you will not reproduce, forward or distribute it in whole or in part to any third party without the prior written consent of Telesat Corpo
Slide 3: Disclosures: Forward-looking Statements
Disclosures Forward-looking Statements This Presentation includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, and “fo
Slide 4: Investment highlights
Investment highlights Leading global satellite operator with Developing highly advanced low earth orbit diversified revenue and long-term visibility (LEO) satellite network to capture fast across blue chip customer base growing enterprise broadband market C$609M 1 LTM Revenue ~US$320B Addressable En
Slide 5: Telesat Lightspeed
Telesat Lightspeed 5
Slide 6: Demand for broadband continues to increase dramatically with users requiring low latency connectivity
Demand for broadband continues to increase dramatically with users requiring low latency connectivity Global data consumption over telecom networks is Internet, 5G and Cloud expected to nearly triple between 2022-2027 applications need low latency 9,693 Exabytes (1 EB=1B GB) Cloud and 5G application
Slide 7: Lightspeed is optimized for enterprise and government users and highly capital efficient
Telesat Lightspeed is optimized for enterprise and government users and highly capital efficient Guiding design principles Compelling enterprise value proposition Low Latency 30 to 50 msec High Speed & High Capacity Customer-driven design to meet the Gbps links requirements of global enterprise cust
Slide 8: Lightspeed enterprise-class service is empowered by highly advanced, state-of-the-art digital technologies
Telesat Lightspeed enterprise-class service is empowered by highly advanced, state-of-the-art digital technologies Highly flexible Digital Beamforming Antenna each satellite generates +1,500 beams (~300,000 in total) to dynamically and efficiently deliver service to users Digital Processor on-board
Slide 9: Lightspeed will bring differentiated features and capabilities to its customers
Telesat Lightspeed will bring differentiated features and capabilities to its customers Capabilities Global LEO Coverage1 Without dead zones and including Polar Regions Ground Connect Options Technical Option of private/public network connect User-Terminal Flexibility Ability to leverage third-party
Slide 10: Lightspeed Timeline
Telesat Lightspeed Timeline First Demo Technology 198 Launch Demo on Launches Global 156 satellites in LEO 3 begin service satellites in orbit Telesat Network Field Trials begins orbit LEO 1 Emulator Q4 2030 Q2 2026 Q4 2027 4Q 2027 (potentially 2018 2022 sooner) 10
Slide 11: Total Addressable Market for LEO services in 2032 of ~US$650B
Telesat estimates Total Addressable Market (TAM) for LEO services in 2032 to be ~US$650B ~US$650B Total LEO TAM ~US$320B Enterprise Telesat Lightspeed focus ~US$292B Terrestrial/Enterprise ~US$320B ~US$17B Aviation ~US$650B ~US$5B Maritime ~US$6B ~US$330B Government Direct to Consumer ~US$320B Enter
Slide 12: Lightspeed delivers enterprise-class service to key market verticals that lack high-performing broadband
Telesat Lightspeed delivers enterprise-class service to key market verticals that lack high-performing broadband Enterprise/ Maritime Aviation Government Terrestrial ▲ Providing high throughput ▲ Cruise & Yacht: High quality ▲ Commercial aircraft and ▲ Ships, aircraft (manned backhaul for fixed and
Slide 13: Governments of Canada, Ontario and Quebec strongly support Telesat Lightspeed
Governments of Canada, Ontario and Quebec strongly support Telesat Lightspeed: ~US$2.4 Billion in aggregate funding Government financing commitments for Telesat Lightspeed ~US$1.9B • Government of Canada: C$2.14B • Government of Quebec: C$400M Funding commitments from Governments of Canada and ~US$0
Slide 14: Strong LEO revenue growth expected
Telesat expects strong LEO revenue growth driven by fast-growing demand and compelling enterprise-grade service value proposition US$M $3,200 Enterprise/Terrestrial Maritime Telesat expects to capture ~1% of Aviation 2032 US$320 billion Enterprise TAM Government with EBITDA margin in line with its h
Slide 15: Lightspeed outlook
Telesat Lightspeed outlook Revenue and EBITDA Telesat Lightspeed EBITDA Telesat Lightspeed Margin expected to be approximately in line with Revenue historical levels by 2029 US$M US$M $3,200 $2,700 $600 $400 2028 2029 2030 2031 2032 2028 2029 2030 2031 2032 | Proprietary & Confidential 15
Slide 16: Sources and Uses Telesat Lightspeed Program
Sources and Uses Telesat Lightspeed Program | 198 Satellites Sources of Funding (US$) Uses Constellation Investment (US$) Telesat Equity $1.6B Launch and Development of Initial 156 Satellites $2.8B Government Funding $1.9B Operational expenditures $0.7B Vendor Financing $0.3B Contingency $0.3B Fundi
Slide 17: Lightspeed CAPEX
Telesat Lightspeed CAPEX1 US$M Total Capex for 198 satellites US$3.6B $1,000 Total Capex Program (2023-2030) (US$M) $800 156 Satellites Add'l 42 Sats 198 Satellites $600 Satellite Costs $1,608 $458 $2,066 Launch Costs (inc. Insurance) $713 $221 $934 Ground Network and Other $434 $190 $624 $400 Total
Slide 18: Telesat – A History of Strong Operational and Financial Performance
Telesat – A History of Strong Operational and Financial Performance 18
Slide 19: Revenue supported by blue chip customers and diversified by application and region
Revenue supported by blue chip customers and diversified by application and region 15 inExisting orbit GEO satellites Geostationary Business today Enterprise 51% ▲ Satellite-delivered broadband and By Service Type communications services for telcos, MNOs, ISPs, aviation, maritime, oil & gas, and gov
Slide 20: Financial Highlights
Financial Highlights C$1.0B Significant contractual backlog provides high revenue visibility Revenue Backlog1 73% GEO fleet Capital efficient business model with high asset utilization utilization1 ~83% GEO Margin Demonstrated disciplined execution enables High Adjusted EBITDA margin (2023) Telesat
Slide 21: Consistent and stable historical financial performance
Consistent and stable historical financial performance – high operating margins and strong cash flow Revenue (C$M) Adj. EBITDA1 (C$M) 277% 256% 231% $758 $759 $704 $603 $568 $534 2021 2022 2023 2021 2022 2023 Beginning of Year Backlog as % of Forward Year Revenue Adj. EBITDA Margins 3 80% 75% 76% 20
Slide 22: Recent Performance – First Nine Months 2024 Update
Recent Performance – First Nine Months 2024 Update Generated total revenues of C$443 million in the first nine months of 2024. - YTD decrease in revenues of C$95 million (or 17.7%) compared to the same period last year. Adjusting for changes in foreign exchange rates, revenues declined 18.3% or C$
Slide 23: Strong financial performance and value creation
Strong financial performance and value creation Adjusted EBITDA (C$M) 1 1 Adjusted EBITDA Adjusted EBITDA Margin $434 $331 71% 58% 2007 2024 Q3 LTM Cash Generation and Uses Net Debt/Adjusted EBITDA1 Ratio Between 2007 and Q3 2024, Telesat: • C$3.5B invested in new satellites and other assets 8.3 • C
Slide 24: Conclusion
Conclusion 24
Slide 25: Telesat is strongly positioned to execute its growth plan and create significant shareholder value
Telesat is strongly positioned to execute its growth plan and create significant shareholder value 55+ years of innovation, industry firsts, engineering excellence and world class customer service Longstanding and trusted provider of mission-critical, enterprise-grade communications services to ente
Slide 26: Appendix
Appendix 26
Slide 27: Revenue and Adjusted EBITDA Reconciliation: LTM September 2024
Revenue and Adjusted EBITDA Reconciliation: LTM September 2024 C$000 4Q23 9 Mos 24 3Q24 TTM Net Income (loss) $39,340 $144,764 $184,104 Tax Expense (recovery) (10,224) 40,192 29,968 (Gain) loss on foreign exchange (77,577) 67,215 (10,362) Interest and other income (17,768) (57,033) (74,801) Interest
Slide 28: Adjusted EBITDA Reconciliation: 2021-2023
Adjusted EBITDA Reconciliation: 2021-2023 FY2021 FY2022 FY 2023 Revenue $758,212 $759,169 $704,161 Net Income (loss) $155,025 $(80,117) $583,270 Tax Expense (recovery) 78,377 49,929 89,596 (Gain) loss on changes in fair value of financial instruments 18,684 (4,314) --- (Gain) loss on foreign exchang
Slide 29: Adjusted EBITDA Reconciliation: 2007
Adjusted EBITDA Reconciliation: 2007 Combined year ended December 31, 2007 Operating revenues $ 569,203 Net (loss) earnings $ 77,691 Income tax (recovery) expense (5,093) Other expense 1,412 Loss on foreign exchange 118,969 (Gain) loss on foreign exchange (68,445) Interest expense 52,409 Impairment
Slide 30: Telesat's commitment to ESG
Telesat’s commitment to ESG Environmental Social Governance 1. Responsible use of space 1. Committed to STEM community 1. Equal votes across shareholders • 55+ years of experience • Major employer of co-op students • Advanced features to mitigate space traffic and • Women in STEM Annual Scholarship
Slide 31: Investor contact
Investor contact: James Ratcliffe +1 613 748 8424 [email protected] www.Telesat.com vimeo.com/telesat