Telesat Investment Highlights slide image

Telesat Investment Highlights

Recent Performance - Q3 YTD 2023 Update ▲ Generated total revenues of C$538.3 million YTD decrease in revenues of C$14 million (or 3%) compared to the same period last year. When adjusting for changes in foreign exchange rates, revenues declined 5% or C$29 million compared to 2022 The decrease was mainly due to a reduction of revenue from one of Telesat's North American DTH customers and lower revenue from certain South American customers, partially offset by an increase in revenue from certain mobility customers Operating expenses of C$154.7 million - YTD decrease in operating expenses of C$24 million from 2022. When adjusting for changes in foreign exchange rates, operating expenses declined by C$27 million compared to 2022 The decrease was primarily due to lower non-cash share based compensation and lower insurance costs. This was partially offset by higher costs associated with the procurement of third party satellite capacity required when Anik F2 commenced inclined operations and higher equipment costs related to sales to Canadian government customers Financial Summary 9 month ending September 30 (C$ M) 2022 2023 552.5 538.3 Revenue Adjusted EBITDA % Margin 428.9 410.4 77.6% 76.2% Cash 1,677.8 1,775.0 ▲ Adjusted EBITDA of C$410.4 million with an 76.2% EBITDA margin ▲ As of September 30, 2023 contracted backlog for future services of approximately C$1.5 billion ▲ Fleet utilization at 86% TELESAT. 1 Adjusted EBITDA and Adjusted EBITDA margin are non-IFRS measures. Please refer to the Appendix for a reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin to net income. 17
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