Eutelsat Communications SA · EURONEXT:ETL

Eutelsat Communications SA — Investor Presentation (June 2025)

46 slides from Eutelsat Communications SA's investor presentation, June 2025

  1. Slide 1: Investor Presentation

    Investor Presentation June 2025 ©2023 Eutelsat Group. All rights reserved.

  2. Slide 2: Agenda

    Agenda Eutelsat in a snapshot Key market trends Combination with OneWeb Q3 2024-25 performance Strategy and Outlook Appendix H1 2024-25 financials ©2023 Eutelsat Group. All rights reserved.

  3. Slide 3: Eutelsat in a snapshot

    Eutelsat in a snapshot ©2023 Eutelsat Group. All rights reserved.

  4. Slide 4: Eutelsat within the satellite value chain

    Eutelsat within the satellite value chain TV broadcasters, Satellite Satellite Satellite Telecoms, Consumers manufacturers launchers operators Governments & businesses ©2023 Eutelsat Group. All rights reserved. 4

  5. Slide 5: Business characteristics

    Business characteristics  High barriers to entry • Finite resource of orbital positions and frequencies, regulated at ITU level and with key commercial orbital positions and spectrum already into use • High upfront CAPEX before operations • High technology and technical expertise through satellite

  6. Slide 6: Eutelsat Group Key data

    Eutelsat Group Key data REVENUE BREAKDOWN BY MARKET ➢ FY 24 revenues €1.2bn 2% 9% ➢ Global coverage with a fleet of 341 BY GEOGRAPHY Europe Geostationary satellites Americas 15% ▪ C. 1,200 transponders Middle East 51% ▪ Broadcasting c. 6,500 television channels Africa ▪ More than 690 Gbps high throu

  7. Slide 7: Group Backlog

    Group Backlog OPERATIONAL & UTILIZED TRANSPONDERS BACKLOG (€BN) Excluding Managed services  Backlog at €3.6 billion on 31 March 2025 vs. €3.9bn on 31 March 2024  Reflecting its natural erosion, especially in the 4.3.90 3.7 3.6 Video segment, in the absence of major renewals  Representing 3.0 year

  8. Slide 8: Revenues by application (FY 2023-24)

    Revenues by application (FY 2023-24) → Direct-to-Home (DTH) VIDEO 54% → Cable headends → Professional Video → Internet access for households FIXED & corporates 19% CONNECTIVITY → Mobile backhaul → Corporate networks GOVERNMENT → Military SERVICES 14% → Security → In-flight Connectivity MOBILE CONNEC

  9. Slide 9: Eutelsat Group operates global fleets of GEO and +650 LEO satellites

    Eutelsat Group operates global fleets of 34 GEO and +650 LEO satellites GEO fleet Coverage ubiquity c.36,000 km Regional OneWeb LEO fleet 160 to 2,000 km Capacity densification Coverage ubiquity Resilience / Global availability Capacity densification Latency Resilience / availability Ease of install

  10. Slide 10: Eutelsat's global GEO network

    Eutelsat’s global GEO network ©2023 Eutelsat Group. All rights reserved. 10

  11. Slide 11: Bond & Bank Debt maturity schedule

    Bond & Bank Debt maturity schedule 2.000% €600m HY bond 3y+1+1 2.250% 9.750% €450m RCF 1.500% Partial €53 m ➢ Average cost of debt after hedging of redemption of the €800m bond €53m 4.84%1 €623m €100m €600m €600m ➢ Average weighted maturity of 3.0 €400m €600m years1 €450m €177m €50m €53m €200m €53m

  12. Slide 12: Shareholder base

    Shareholder base June 2025 Free float, 26.5% Bharti Space, LTD, 24.1% FSP1, 4.1% Bpifrance, 13.6% Spacetime Transformations LLC, 4.9% CMA-CGM UK Government, Participations, 10.9% 1 Fonds Stratégique de Participations 5.5% Softbank, 10.4% ©2023 Eutelsat Group. All rights reserved. 12

  13. Slide 13: Eutelsat CSR Mission

    EUTELSAT CSR MISSION Our CSR mission revolves around four primary pillars all of which are in alignment with our sustainable business model As a member of the United Nations Global Compact since 2019, Eutelsat contributes to the achievement of 9 of the 17 SDGs ©2023 Eutelsat Group. All rights reserv

  14. Slide 14: ESG ratings

    ESG ratings CSR POLICY RECOGNISED BY ESG RATING AGENCIES Given the nature of its activities, the Group has a limited impact on greenhouse gases emissions ©2023 Eutelsat Group. All rights reserved. 14

  15. Slide 15: Market trends in our key verticals

    Market trends in our key verticals ©2023 Eutelsat Group. All rights reserved.

  16. Slide 16: Resilient long-term features of Video

    Resilient long-term features of Video Decline in channel count partly offset by rise in more bandwidth- hungry definition quality HD to grow in emerging video markets # channels per 36 Mhz transponder 41,049 96% 15 to 26 83% 30,885 70% 26,947 3 49% 56% 48% X3.8 9,014 35% 42% 405 9 to 15 108 x1.5 17%

  17. Slide 17: Strong growth prospects for satellite Connectivity market

    Strong growth prospects for satellite Connectivity market Connectivity: a $23bn opportunity 2023 2033 10 y Vertical Drivers Market Market CAGR Consumer broadband ● Internet access a fundamental need ● Universal service obligation pressure $1.3bn $4.6bn +13% ● High cost of terrestrial rollout ● Long-

  18. Slide 18: A $23bn NGSO-driven connectivity market opportunity for satellites

    A $23bn NGSO-driven connectivity market opportunity for satellites $22.6bn Satellite connectivity market expected to more than triple by 2033 … $18.0bn … mainly driven by NGSO growth NGSO: +27% CAGR $6.5bn  NGSO expected to grow c. 3x faster than overall market $1.7bn  NGSO to represent c. 80% of

  19. Slide 19: Mobility usages set to increase more than tenfold

    Mobility usages set to increase more than tenfold MARITIME CONNECTIVITY DEMAND IN-FLIGHT CONNECTIVITY DEMAND Projected number of connected ships by 2033 Projected number of connected planes by 2033 North 6,122 America 14,033 2023 2033 Western 2,074 2023 2033 Europe 5,076 1,185 MENA 2,976 88,964 794

  20. Slide 20: Combination with OneWeb

    Combination with OneWeb ©2023 Eutelsat Group. All rights reserved.

  21. Slide 21: Eutelsat OneWeb combination

    Eutelsat OneWeb combination ACCESS MASSIVE GROWTH POTENTIAL IN SATELLITE CONNECTIVITY Satellite Connectivity market estimated at c. $23bn in 20331 COMBINING HIGH-GROWTH POTENTIAL WITH CASH ONEWEB IS A UNIQUE ASSET GENERATIVE LEGACY BUSINESSES One-of-only two operational global LEO broadband constell

  22. Slide 22: Two highly complementary businesses

    Two highly complementary businesses GEO + LEO Geographical Capacity density: ability to focus capacity over high- Global coverage on track with expectations advantage demand regions Key value Low-cost sellable capacity: higher fill-rates than Low latency: critical for some applications and propositi

  23. Slide 23: OneWeb at a glance

    ONEWEB AT A GLANCE Overview Assets Velocity ► One-of-only two global broadband ► Global stakeholders ► Revenue generating LEO ► c. $5bn deployed on Capex ► 5x usage growth on Network ► +650 satellites at 1,200 kms ► Highly skilled organization ► Strong distribution network ► 1.1 Tbps sellable capaci

  24. Slide 24: Constellation operational and delivering proven performance

    Constellation operational and delivering proven performance Network performance User experience HTS technology delivering up to 7Gbps Average global latency of 70ms per satellite Download speeds up to 195Mbps Robust 4G core network developed with telecom industry leaders Upload speeds up to 32Mbps S

  25. Slide 25: Strong commercial momentum

    Strong commercial momentum Major contracts boosting backlog Reinforcing network of distributors ©2023 Eutelsat Group. All rights reserved. 25

  26. Slide 26: Q3 2024-25 Performance

    Q3 2024-25 Performance ©2023 Eutelsat Group. All rights reserved.

  27. Slide 27: Q3 2024-25 revenues

    Q3 2024-25 revenues YoY revenue bridge (€m)  Total revenues of €300m, down 1.9% like-for-like1 -2.2%  Positive currency effect +7 0 • €/$ rate of 1.04 vs 1.09 last year -1 -6  Negative swing of €1m in ‘Other Revenues’ • Of which -€2m related to hedging 301 300  Revenues of the Operating Vertical

  28. Slide 28: Q3 Revenues by vertical

    Q3 Revenues by vertical REVENUE REVENUES LIKE-FOR-LIKE2 CONTRIBUTION1 YOY CHANGE (€m) VIDEO 50% 151.7 -6.4% FIXED 20% 59.7 +0.8% CONNECTIVITY GOVERNMENT 17% 49.5 +10.2% SERVICES MOBILE 13% 39.7 -2.7% CONNECTIVITY TOTAL OPERATING VERTICALS 300.0 -2.2% OTHER REVENUES -0.7 -€1.2m3 1 Share of each appli

  29. Slide 29: Video

    Video 50%  Q3 revenues of €151.7m, down 6.4% YoY like-for-like1 • In line with broader market decline  Q3 revenues down 4.8% QoQ1 785  Capacity renewed with long-standing partner ATSS in 491 461 the MENA region  New resources for Professional Video at HOTBIRD Q3 160 152 Q3  Extension of capacit

  30. Slide 30: Fixed connectivity

    20% Fixed connectivity  Q3 revenues of €59.7m, up 0.8% YoY like-for-like1 • Continued growth of LEO-enabled connectivity solutions 179 • More challenging conditions for GEO-enabled consumer broadband in Europe 152  Q3 revenues down by 7.3% QoQ1 60 Q3 Q3 57  Recent commercial wins: • Transfer of E

  31. Slide 31: Government Services

    Government Services 17%  Q3 revenues of €49.5m, up 10.2% YoY like-for-like1 146 • Growth of LEO-enabled solutions revenues 118 • increased demand from non-US governments 50 Q3  Q3 revenues -4.2% QoQ1 Q3 44 50 Q2  Spring 2025 US DoD renewal rate of less than 50% Q2 41 • Change in the new president

  32. Slide 32: Mobile connectivity

    Mobile connectivity 13%  Q3 revenues of €39.7m, down 2.7% YoY like-for-like1 • Lower GEO revenues • partly offset by growing demand for LEO-based solutions 110 115  Q3 revenues up 14.3% QoQ1 • Ramp-up on LEO Q3 39 40 Q3  LEO services now live and operational for commercial and business aviation c

  33. Slide 33: Strategy and Outlook

    Strategy and Outlook ©2023 Eutelsat Group. All rights reserved.

  34. Slide 34: A three-pillar strategy

    A THREE-PILLAR STRATEGY RELYING ON A STRONG FOUNDATION Eutelsat Telecom pivot 1 2 3 Maximize cash generation of Building Connectivity business Preparing LEO NEXT GEN and legacy business Hybrid GEO-LEO ➢ In Broadband via KONNECT and ➢ To fund our transition towards KVHTS, in particular ➢ To capture L

  35. Slide 35: Partial disposal of passive ground segment

    Partial disposal of passive ground segment  Carve-out of the passive assets (land, buildings, support infrastructure, antennas and connectivity circuits for the combined portfolio of teleports and SNPs) to form new, standalone company  80% sold to EQT Private Equity Group with; Eutelsat to remain

  36. Slide 36: A key member of IRIS2 constellation

    A key member of IRIS2 constellation  Eutelsat a core member of SpaceRISE consortium to procure, OPERATIONAL & UTILIZED TRANSPONDERS build, and operate Iris2 European multi-orbit satellite constellation • €10.6bn project, 60% funded by EU and 40% by consortium members • Aiming for entry into service

  37. Slide 37: Investing in OneWeb continuity ahead of IRIS2 availability

    Investing in OneWeb continuity ahead of IRIS2 availability  IRIS2 a key step in strategy to develop and expand Eutelsat’s Low Earth orbit capacities; extension of existing OneWeb constellation will be technologically compatible with future IRIS2 assets.  Procuring the first batch of 100 satellites

  38. Slide 38: LEO investment timeline

    LEO investment timeline 2025 2026 2027 2028 2029 2030 2031 2032 c. €2-2.2bn CAPEX to assure Gen-1 continuity Current Gen-1 100 committed satellites procured Gen-1 Follow-on c.340 additional satellites required for extension to availability of IRIS2 IRIS2 R&D and development funded by EU and ESA Eute

  39. Slide 39: Financial objectives

    Financial objectives1 REVENUES2 ► FY 2024-25 revenues of the four operating verticals around the same level as FY 2023-24 ADJUSTED ► FY 2024-25 Adjusted EBITA margin slightly below the EBITDA3 level of FY 2023-24 GROSS ► Between €500 and €600m in FY 2024-25 CAPEX LEVERAGE ► Targeting medium-term net

  40. Slide 40: Appendix: H1 2024-25 Financials

    Appendix: H1 2024-25 Financials ©2023 Eutelsat Group. All rights reserved.

  41. Slide 41: Net income

    Net income Extracts from the H1 H1 • Higher Other operating expenses of €690.8 million, consolidated income CHANGE compared to €183.9 million last year. They include: statement in €m 2023-24 2024-25 • A goodwill impairment €535 million in respect of GEO assets based on the test performed Revenues 57

  42. Slide 42: Gross Capex

    Gross Capex GROSS CAPEX (€m)  Gross Capex of €175 million  GEO satellite program delivery and launch last year 314  Lower LEO on-ground Capex versus last year  H1 Capex not representative of expected FY 2024-25 outturn, which will embark the 100 175 LEO satellite batch order 77.4 77.4 77.5  FY

  43. Slide 43: Change in net debt

    Change in net debt In €m (109) 100 10 175 (133) 2,696 2,544 Net Debt as of Operating Cash-flow Gross Capex Financial cost Other Net Debt as of 30/06/2024 31/12/2024 ©2023 Eutelsat Group. All rights reserved. 43

  44. Slide 44: Financial Structure

    Financial Structure NET DEBT / Adjusted EBITDA RATIO  Net Debt/Adjusted EBITDA ratio of 3.92x • Versus 4.13x at end-December 2023 and 3.79x at end-June 2024 4.13x 3.92x  Average cost of debt after hedging of 4.84% • Versus 3.16% in H1 2023-24  Average weighted maturity of 3.0 years • Versus 3.0 y

  45. Slide 45: IR contacts

    IR contacts Joanna Darlington Chief Communications and Investor Relations Officer T: +33 6 74 52 15 31 E: [email protected] Hugo Laurens-Berge Investor Relations Officer T: +33 6 70 80 95 58 E: [email protected] Christine Lopez IR Coordinator T: +33 1 53 98 47 02 E: [email protected]

  46. Slide 46: Disclaimer

    Disclaimer • NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO, OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION. • This presentation (including any oral briefing and any question-and-answer in connection with it

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