Yahsat Reports Strong FY2021 Results Supported by Exceptional 4Q21 Performance

FY2021 revenue of AED 1.49 billion [USD 407.6 million], increased year-on-year driven by exceptional 4Q21 performance in which revenues grew 7.9% vs. prior year

Adjusted EBITDA1 of AED 883.2 million [USD 240.5 million] generating a healthy EBITDA margin of 59.0%; Normalised Adjusted EBITDA of AED 898.5 million [USD 244.6 million], up 5.0% vs. prior year, delivering a margin of 60%

Highest ever reported Net Income (profit attributable to the shareholders) of AED 256.2 million [USD 69.8 million]; Normalised Net Income of AED 297.3 million [USD 80.9 million], grew 47.4% vs. prior year, delivering a margin of 19.9% versus 13.5% in prior year

Contracted revenues of over AED 7.3 billion [over USD 2 billion], up more than 35% year-on year

Cash conversion of 97%1 and strong Discretionary Free Cash Flow1 of AED 659.2 million (USD 179.5 million), covering FY 2021 dividend by more than 1.7x

Proposal to distribute a final dividend for the second half of 2021 of AED 192.8 million, bringing total dividend for FY2021 to AED 385.6 million

Initiating 2022 revenue guidance range of AED 1.52 billion to AED 1.62 billion [USD 415 million to USD 440 million], with approximately 70% of 2022 projected revenues contracted and implying revenue growth of up to 8% in 2022

Contracted revenues further boosted since year-end by a 5-year AED 909.5 million [USD 247.5 million] managed services mandate awarded to Yahsat by the UAE Government in February 2022

Abu Dhabi, United Arab Emirates, 01 March 2022: Al Yah Satellite Communications Company PJSC ( Yahsat or the Group ) listed on the Abu Dhabi Securities Exchange ( ADX ) under (SYMBOL: YAHSAT) (ISIN: AEA007501017), the UAE's flagship satellite solutions provider, today announced its financial results for the 12-month period ended 31 December 2021 ( FY 2021 ).

Musabbeh Al Kaabi, Chairman of Yahsat, stated:

In 2021, Yahsat demonstrated sustained strength and resilience amidst continued economic disruption, laying strong foundations for growth in 2022 and beyond, as it continues to provide critical connectivity to government and commercial customers in the UAE and beyond.

Ali Al Hashemi, Group Chief Executive Officer of Yahsat, commented:

2021 has been a landmark year for the Group. After a successful listing on ADX in July 2021, Yahsat continued to deliver on its promises, driven by a remarkable performance in 4Q21. Throughout the year, we maintained significant momentum across the business, growing our contracted future revenues by more than 35%. We were able to leverage the resurgence in government projects supported by the economic recovery and establish a raft of new partnerships with key national stakeholders. Importantly, we also continued to diversify our customer base, in both government and commercial segments, including penetration into key industrial verticals. This momentum positions us well for success in 2022, with approximately 70% of our projected revenues for the year already secured.

Going forward, we will maintain our strong culture of partnership that has proven so successful over the years, reinforcing our position as the UAE's flagship satellite operator and the UAE Government's preferred partner for satellite solutions, while further expanding our commercial business lines. The satellite industry is set for growth both nationally and internationally and we are well positioned to capture an increasing share of this growing market. We are on track to grow in 2022, to achieve our strategic objectives and to increase value for our customers, our shareholders and the global space industry. Al Hashemi continued.

Financial Overview

AED millions

4Q21

4Q20

Change%

2021

2020

Change%

Revenue

452.7

419.6

7.9%

1,496.8

1,496.6

0.0%

Cost of revenue

(84.1)

(71.9)

-16.9%

(167.0)

(147.0)

-13.6%

Staff costs

(72.0)

(64.5)

-11.6%

(314.0)

(309.3)

-1.5%

Other operating expenses

(43.9)

(57.3)

23.5%

(141.1)

(191.0)

26.1%

Other Income

2.0

1.5

31.3%

8.5

57.5

-85.2%

Adjusted EBITDA

254.9

227.4

12.1%

883.2

906.9

-2.6%

Normalised Adjusted EBITDA

254.9

227.4

12.1%

898.5

855.4

5.0%

Net Income (Profit attributable to the shareholders)

97.2

63.0

54.3%

256.2

253.0

1.2%

Normalised Net Income

97.2

63.0

54.3%

297.3

201.6

47.4%

Discretionary Free Cash Flow

659.2

684.3

-3.7%

Adjusted EBITDA Margin %

56.3%

54.2%

59.0%

60.6%

Normalised Adjusted EBITDA Margin %

56.3%

54.2%

60.0%

57.2%

Normalised Net Income Margin %

21.5%

15.0%

19.9%

13.5%

Cash and short-term deposits

1,470.1*

825.9**

78.0%

*(as of 31 Dec 2021) **(as of 31 Dec 2020)

Top line momentum continued in 4Q21 with revenue of AED 452.7 million [USD 123.3 million] exceeding the prior year by 7.9%, leading to full year revenue of just under AED 1.50 billion [USD 408 million], marginally up year-on-year. The performance demonstrates the strength and resilience of the underlying business amidst challenging conditions and global economic headwinds. During the year, contracted future revenues rose more than 35% to close at over AED 7.3 billion [USD 2.0 billion], underpinned by the 15-year T4-NGS Managed Capacity Services Agreement signed in June 2021, which added more than AED 2.57 billion [USD 700 million], equivalent to additional annualised revenues of AED 172.6 million [USD 47 million] from mid-2024 onwards. A significant number of contracts were also signed in the Data Solutions and Mobility Solutions businesses, with particularly strong momentum in Q4. Over this period, the aggregate value of contracted future revenues in respect of these two segments more than doubled. Together with an extensive pipeline of new business opportunities, Yahsat is well positioned to grow in 2022, with approximately 70% of the Group's 2022 projected revenues contracted as at 31 December 2021.

In 2021, Yahsat achieved an

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