SKY Perfect JSAT : Presentation Material for the 2Q of FY2023

Securities Code: 9412

SKY Perfect JSAT Holdings Inc.

2Q 2023 Presentation Material

For the 6-month period ended September 30, 2023

November 1, 2023

Forward-looking Statements

Statements about the SKY Perfect JSAT Group's forecasts, strategies, management policies, and targets contained in

this presentation that are not based on historical facts constitute forward-looking statements. These statements are

based on management's assumptions, plans, expectations and judgments from information available at the time. These forward-looking statements are subject to a variety of risks and uncertainties. Therefore, actual results may differ materially from forecasts. The primary risks and uncertainties currently assumed by the SKY Perfect JSAT Group include, but are not limited to, the following:

General Management		Space Business

Media Business

• Risks concerning business investment
• Risks concerning legal regulations on business
• Risks concerning leaks and handling of personal information and important information, and cyber security
• Risks concerning business continuity due to large-scale disaster and new infectious diseases, etc.

• Risks concerning lower competitiveness in the satellite communications Market
• Risks concerning procurement of communications satellites
• Risks concerning operations of communications satellites

• Risks concerning lower business competitiveness of Multi channel pay TV business
• Risks concerning illegal viewing
• Risks concerning customer management system

2

Summary

Financial

Results

Space Business

Media Business

• Consolidated results continued to increase both revenue and net income YoY
• Secured its first pre-launch commitment with Panasonic Avionics to provide capacity for In-Flight-Connectivity
• Decided to procure in-orbit satellite life-extension service

Flexibility of fleet planning greatly improved

• Increasing Affiliated Cable Television Stations. Total 16 stations

ESG

Shareholder

Return

• Declared achievement of carbon neutral goal by the end of FY2025
• Acquisition of treasury stock of ¥5 billion is underway

3

Consolidated Financial Results

Second Quarter of FY2023

Consolidated Earning Results for 2Q of FY2023

• Consolidated results continue to show an increase in both revenue and net income YoY
• Space Business: Sales in both the Global & Mobile Field and Domestic Satellite Business Field remained strong
• Media Business: Loss on valuation of investment securities pushed down segment profit

(in Millions of ¥)

	FY2022-2Q	FY2023-2Q		Change	FY2023	Progress
	Cumulative Total	Cumulative Total		(%)	Forecast	(%)
Revenue	57,996	60,498		+ 4.3%	121,000	50.0%
Operating Income	11,147	13,401		+ 20.2%	22,500	59.6%
Ordinary Income	11,635	13,839		+ 18.9%	22,000	62.9%
Net Income	7,703	8,555		+ 11.1%		57.0%
(Profit attributable of owners of the		15,000
parent
EBITDA *	22,613	23,681		+ 4.7%	43,600	54.3%
* EBITDA = Net Income + Tax Expense + Depreciation Expense + Amortization of Goodwill + Interest Expense
		5

Trends of Consolidated Financial Results by Quarter （FY2022-1Q - FY2023-2Q）

Revenue

(in Millions of ¥)

35,000
					30,488
30,000
25,000
20,000
15,000
10,000
5,000
0
22-1Q	2Q	3Q	4Q	23-1Q	2Q

Operating Income

(in Millions of ¥)

8,000
7,000					6,482
6,000
5,000
4,000
3,000
2,000
1,000
0
22-1Q	2Q	3Q	4Q	23-1Q	2Q
			6

Net Income

(in Millions of ¥)

8,000
7,000
6,000
5,000
4,000					3,573
3,000
2,000
1,000
0
22-1Q	2Q	3Q	4Q	23-1Q	2Q

Earnings Overview: Space Business

• Continuous revenue growth driven by the expanded use of JCSAT-1C and Horizons 3e in Global & Mobile Field and increased equipment sales and capacity usage in Domestic Satellite Business Field.
• Income increased due to an increase in revenue and a decrease in depreciation expenses.

Revenue		Operating Income
(in Millions of ¥)	(in Millions of ¥)

Segment Profit*

(in Millions of ¥)

Major factors of change (YoY)

	31,038
28,161
FY2022-2Q	FY2023-2Q
Cumulative Total	Cumulative Total

	11,103
8,336
FY2022-2Q	FY2023-2Q
Cumulative Total	Cumulative Total

	7,689
5,576
FY2022-2Q	FY2023-2Q
Cumulative Total	Cumulative Total
	7

• Revenue ¥31.0 billion [+2.9B]**
• • Increase in sales in Global & Mobile field: ＋1.5B
  • Increase in sales in Domestic satellite field: +1.4B
  • Decrease in Broadcasting transponder-related revenue: (0.3B)
• Operating Expense ¥19.9 billion [+0.1B]**
• • Decrease in depreciation expenses: (0.6B)
  • Increase in satellite business related cost: +0.7B
• Operating Income ¥11.1 billion [+2.8B]
• Segment Profit ¥7.7 billion[+2.1B]

• Segment Profit is calculated based on net income after tax
• Including inter-segment transactions

Earnings Overview: Media Business

• Range of income decline was reduced due to improved profitability in existing businesses and increased FTTH Business sales, despite a decrease in broadcasting-related revenue..
• Loss on valuation of investment securities pushed down segment profit.

Revenue	Operating Income
(in Millions of ¥)		(in Millions of ¥)

Segment Profit*	Major factors of change (YoY)

(in Millions of ¥)

34,804	34,230
FY2022-2Q	FY2023-2Q
Cumulative Total	Cumulative Total

3,145	2,684
FY2022-2Q	FY2023-2Q
Cumulative Total	Cumulative Total

• Revenue ¥34.2 billion [(0.6B)] **
• • Decrease in viewing fees and basic fees: (1.3B)
  • Increase in sales of FTTH business: +0.1B
  • Real Event Related : +0.6B
• Operating Expense ¥31.5 billion [(0.1B)] **
• • Decrease in contents expenses: (0.1B)
  • Decrease in depreciation expenses: (0.1B)
  • Decrease in satellite line usages, etc: (0.5B)
  • Real Event Related : +0.6B

	1,079	◼ Operating Income ¥2.7 billion [(0.5B)]
2,272	◼ Segment Profit ¥1.1 billion [(1.2B)]
FY2022-2Q	FY2023-2Q	• Loss on valuation of investment securities: (0.8B)
Cumulative Total	Cumulative Total

* Segment Profit is calculated based on net income after tax

8	** Including inter-segment transactions

Toward 2030

Toward 2030

Repost

Investment will be over ¥200 billion for new domains

S P A C E

Using new technology

Over

and ¥150B

Expanding business field

M E D I A
Driving new business	Over
beyond viewing
¥50B
experience
Connected TV

Satellite

Universal NTN

Satellite

Communi Optical Data Relay

cations

Business Intelligence

2030 Segment Net Income Target ¥21 Billion

broad	MediaSolutions
casting	ContentDatabase

/FTTH

RealService

2030 Segment Net Income Target ¥5 Billion

Sustainable Growth

Target Net income is over ¥25 Billion in 2030

10