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Telesat — Business Plan Update Deck FINAL (company IR deck)
Telesat (TSAT) · 19 slides · Filed Oct 29, 2026
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Slide 1 — Telesat Lightspeed
Telesat Lightspeed ESCP-P Contract Announcement Business Plan Update Dan Goldberg President & Chief Executive Officer Donald Tremblay Chief Financial Officer August 4, 2026
Slide 2 — Disclosures
Disclosures Note: unless otherwise stated, all values included are in United States 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 Corporation (together, with its direct and indirect subsidiaries, “Telesat” or the “Company”). To the maximum extent permitted by law, none of Telesat, its affiliates, directors, officers, employees, agents, advisors or representatives, nor any other person, accepts any liability, including, without limitation, any liability arising out of fault or negligence for any loss arising from the use of the information contained in this Presentation. This Presentation has been prepared solely for informational purposes, and this Presentation is not, and should not be assumed to be, complete. This presentation is a summary only of certain information in respect of the Company and any recipient hereof should conduct its own independent investigation and analysis of the Company, including legal, accounting and other relevant professional advice. Acceptance of this presentation further constitutes your acknowledgment and agreement that none of Telesat or its affiliates, directors, officers, employees, agents, advisors or representatives (i) makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein or any other information (whether communicated in written or oral form) transmitted or made available to recipients of this Presentation or (ii) shall have any liability to the recipient or its representatives relating to or arising from the information contained herein or any omissions from such information, or any other written or oral communication transmitted to any interested party in the course of its evaluation of Telesat. This Presentation does not constitute an offer to sell, or a solicitation of an offer to purchase, any securities from any of the entities discussed herein. Third Party Information Although all information and opinions expressed in this Presentation, including market data and other statistical information (including estimates and projections relating to the addressable market), were obtained from sources believed to be reliable and are included in good faith, Telesat has not independently verified the information and makes no representation or warranty, express or implied, as to its accuracy or completeness. Some data is also based on the good faith estimates of Telesat, which are derived from its review of internal sources as well as the independent sources described above. This Presentation contains preliminary information only, is subject to change at any time and, is not, and should not be assumed to be, complete. While Telesat is not aware of any misstatements regarding the industry and market data presented in this Presentation, such data involves risks and uncertainties and are subject to change based on various factors, including those factors discussed under “Forward-Looking Information”. Non-GAAP Financial Measures Unless otherwise indicated, financial information in this presentation has been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. IFRS differs in some respects from United States generally accepted accounting principles (“U.S. GAAP”), and thus our financial statements may not be comparable to the financial statements of United States companies prepared in accordance with U.S. GAAP. This Presentation includes certain financial measures not presented in accordance with IFRS or U.S. GAAP, including but not limited to, Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow. Adjusted EBITDA and Adjusted EBITDA are non-GAAP financial measures as defined in National Instrument 52-112 Non- GAAP and Other Financial Measures Disclosure (“NI 52-112”). Adjusted EBITDA margin is a non-GAAP ratio as defined in NI 52-112 and is the ratio of Adjusted EBITDA to revenue. These measures are not recognized measures under IFRS, do not have standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management’s perspective. These measures may exclude items that are significant in understanding and assessing Telesat’s financial results, and therefore should not be considered as alternatives to net income or any other measures derived in accordance with IFRS or U.S. GAAP. Additionally, these measures should not be considered in insolation or as a substitute for analysis of our financial information reported under IFRS. Reconciliations of these non-GAAP financial measures to IFRS are included in the Appendix hereto. Additional information and further reconciliations with respect to the non-IFRS measures included in this Presentation, including among other things, disclosure of their composition, how each non-IFRS measure provides useful information to investors and the additional purposes, if any, for which management uses each non-IFRS measure and reconciliations of non-IFRS measures to the closest IFRS measure can be found in the section entitled “Non-IFRS Measures” in our Management’s Discussion and Analysis (the “MD&A”) dated March 18, 2026 as at and for the year ended December 31, 2025, which information is incorporated by reference in this Presentation. The MD&A is available under our corporate profile on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov. 2
Slide 3 — Disclosures
Disclosures 3 Forward-looking Statements This presentation contains statements that are not based on historical fact, including financial outlook for 2026 and future years, estimated timing of the commencement of global commercial service on Telesat Lightspeed, the growth opportunities of Telesat Lightspeed and the increasing demand from defence and other vertical segments, and are “forward-looking statements’’ and “future-orientated financial performance” within the meaning of the Private Securities Litigation Reform Act of 1995 and Canadian securities laws. When used herein, statements which are not historical in nature, or which contain the words “will,” “expect,” “continue,” or similar expressions, are forward-looking statements. Actual results may differ materially from the expectations expressed or implied in the forward- looking statements and future-orientated financial information as a result of known and unknown risks and uncertainties. Future-orientated financial information contained in this news release about prospective financial performance, financial position, or cash flows are expected to give the reader a better understanding of the potential future performance of Telesat. Readers are cautioned that any such future-orientated financial information and financial outlook contained herein should not be used for purposes other than those disclosed herein. All statements made in this news release are made only as of the date set forth at the beginning of this release. Telesat undertakes no obligation to update the information made in this news release in the event facts or circumstances subsequently change after the date of this release. These forward-looking statements and future-orientated financial information are not guarantees of future performance, are based on Telesat’s current expectations, and are subject to a number of risks, uncertainties, assumptions, and other factors, some of which are beyond Telesat control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Known risks and uncertainties include but are not limited to: risks associated with financial factors, including swings in the global financial markets, access to capital to construct our LEO satellite constellation, the ability to refinance Telesat GEO Inc.’s debt, the outcome of litigation related to Telesat GEO Inc.’s debt and the 62% equity distribution, volatility of securities values in an industry sector where values may be influenced by economic and other factors beyond Telesat’s control, inflation, rising or prolonged elevated interest rates, fluctuations in foreign exchange rates, and tariffs; risks associated with operating satellites and providing satellite services, including satellite construction or launch delays, launch failures, in-orbit failures, impaired satellite performance or dependence on large customers; the ability to deploy successfully an advanced global LEO satellite constellation and the timing of any such deployment; Telesat’s ability to meet the conditions for advance of the loans under the funding agreements for the constellation; technological hurdles, including Telesat’s and Telesat’s contractors’ development and deployment of the new technologies required to complete the constellation in time to meet Telesat’s schedule, or at all, the availability of services and components from Telesat’s and Telesat’s contractors’ supply chains; competition, including with other LEO systems, deployed and yet to be deployed; risks associated with domestic and foreign government regulation, including government restrictions and regulations, access to sufficient orbital spectrum to be able to deliver services effectively and access to sufficient geographic markets in which to sell those services; Telesat’s ability to develop significant commercial and operational capabilities; and the ability to expand Telesat’s existing satellite utilization. The foregoing list of important factors is not exhaustive. Investors should review the other risk factors discussed in Telesat’s annual report on Form 20-F for the year ended December 31, 2025, that was filed on March 17, 2026, and the Form 6-K that was filed on May 5, 2026, with the United States Securities and Exchange Commission (SEC) and the Canadian securities regulatory authorities at the System for Electronic Document Analysis and Retrieval + (SEDAR+), and may be accessed on the SEC’s website at www.sec.gov and SEDAR’s website at www.sedarplus.ca. The forward-looking statements also contain future-oriented financial information and information which could be considered to be in the nature of a financial outlook (together with the future-oriented financial information, “FOFI”), which involves statements about Telesat’s prospective financial performance, financial position or cash flows, including, but not limited to, market growth, revenue projections, and capital expenditures. All FOFI contained in this Presentation is subject to the same assumptions, risks, limitations and qualifications as set forth above. All FOFI included in this Presentation is provided for the purpose of helping readers understand Telesat’s current expectations and plans for the future. Readers are cautioned that reliance on FOFI may not be appropriate for other purposes or in other circumstances. The actual results of Telesat’s operations will likely vary from the amounts set forth in any financial outlook and such variances may be material. Historical statements contained in this Presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. No statement in this document is intended to be nor may be construed as a profit forecast. Trademarks The use or display of third parties’ trademarks, service marks, trade names or products in this presentation is not intended to, and does not imply, a relationship with Telesat, or an endorsement or sponsorship by or of Telesat. 3
Slide 4 — Expand initial
Telesat secures largest contract in company history to deliver Mil-Ka portion of Enhanced Satellite Communications Project–Polar (ESCP-P) program Expand initial constellation to 225 satellites funded by milestone- based payments Mil-Ka capacity in the Arctic north of the 65th parallel for 15 years US$1.9B contract with the Government of Canada; US$1.5B paid by 2028 Further announcements expected in Mil- Ka and for X and UHF capabilities 4 Note: All figures in US$ unless otherwise noted
Slide 5 — 225
ESCP-P substantially increases Telesat Lightspeed’s capacity with no impact to timing of global commercial availability 5 Fully funded Launch vehicles secured 1 Enhanced capacity, resiliency and performance No change to global service start date (1Q28) 156 Satellites 225 Satellites 1Includes one additional Falcon 9 rocket that remains subject to the completion of a launch services agreement.
Slide 6 — Sources of Funds (US$)
Expanded Telesat Lightspeed constellation is fully-funded 6 Sources of Funds (US$) Uses of Funds (US$) Telesat Equity (fully funded) $1.6B Launch and Development of 225 Satellites $4.0B Government Financing $1.8B Operational Expenditures $0.7B Vendor Financing $0.3B Total Constellation Costs $4.7B ESCP-P Milestone-Based Payments $1.5B Contingency $0.5B Total Sources of Funding for 225 Satellite Constellation ~$5.2B Total 225 Satellite Constellation Investment ~$5.2B $2.0B spent as of 1Q26; $3.2B available, consisting of: LEO cash ($0.2B), undrawn GoC/GoQ financing ($1.2B), undrawn vendor financing ($0.3B), ESCP-P milestone-based payments ($1.5B).
Slide 7 — $1.9B
Cash impact of this initial ESCP-P contract 7 ESCP-P Initial Contract Expected Cash Inflow (US$) 2026 – 2043 for Initial Operating Capability 15-Year Service Contract Agreement to provide Mil-Ka connectivity services in the high Arctic for 15 years, including option years, starting in 2028. Total cash expected: US$1.9B Milestone-based payments (26-28): US$1.5B Projected annual cash inflow: US$30M per year for 15 years (initial 5-year contract and two 5-year options) 77% 8% 8% 8% Milestone-based payments (2026-2028) Initial Five-Year Term (2027-33) $1.9B Substantial additional revenues are expected for Mil-Ka implementation as well as X and UHF band development and deployment First Option (2033-38) Second Option (2038-43) Note: Figures may not add due to rounding.
Slide 8 — This initial ESCP-P contract adds US$3.3B to the Telesat Lightspeed backlog,
8 This initial ESCP-P contract adds US$3.3B to the Telesat Lightspeed backlog, reflecting expected recognized revenue through 2043 Total Milestone Based Cash Payments (2026-2028) US$1.5B Total Annual Cash Payments (2028-2043) US$0.4B Total Cash Inflows US$1.9B Total Non-Cash Revenue US$1.4B Total Addition to Backlog US$3.3B ESCP-P Initial Contract Expected Cash Inflows and Recognized Revenue, 2026-2043 (US$M) • Milestone-based payments at the beginning of the contract represent over ¾ of the total cash proceeds • Accounting standards require us to incorporate a financing component when determining the revenue to be recognized under this agreement. In total, we expect to recognize approximately $1.4B in non- cash revenue over the life of the contract. $0 $100 $200 $300 $400 $500 $600 $700 $800 Cash Inflows Recognized Revenue
Slide 9 — ESCP-P strongly positions Telesat to capture other key future
ESCP-P strongly positions Telesat to capture other key future defence opportunities 9 CAF Global SATCOM Opportunity to provide CAF with global Mil-Ka connectivity CAF Arctic SATCOM Execute on ESCP-P requirements for Arctic Mil- Ka, X, and UHF Other Global Space Meet requirements for other space-based capabilities (e.g., space relay) Allies’ Global SATCOM Support SATCOM requirements of key allies and partners
Slide 10 — Global defence spending at record highs, driving opportunities in Canada and
Global defence spending at record highs, driving opportunities in Canada and internationally $32B $484B $935B 2024 $44B $564B $980B 2025 $77B $828B $1,019B 3.5% of GDP $110B $1,179B $1,456B 5% of GDP $1,451B $1,924B $2,745B +22% +73% Calculated based on 2024 GDP numbers for NATO nations NATO Defence Spending Scenarios US$, Current GDP Canada European NATO USA • NATO members committed to significantly increase defence spending to 5% of GDP by 2035 - 3.5% dedicated to core military requirements - 1.5% allocated towards security-related infrastructure • Achieving 3.5% and 5% of GDP will require NATO spending uplift of approximately US$350B and US$1.15T, respectively, at 2025 GDP figures, a 22% and 73% increase from 2025 levels, respectively • Spending increases towards meeting 5% will be disproportionately driven by Canada (US$66B) and Europe (US$616B) 10
Slide 11 — Demand for Military SATCOM is growing at an unprecedented pace, with
US$43B Defence Broadband Connectivity TAM Demand for Military SATCOM is growing at an unprecedented pace, with strong demand for high-bandwidth LEO Mil-Ka capacity Users are increasingly seeking LEO Military-Ka (Mil-Ka) capacity due to several advantages: Higher data rates to meet growing bandwidth requirements (e.g., Command & Control, multi- sensors, real-time video, etc.) Multi-platform support for a wide range of military assets across domains (air, land, sea) Sovereign infrastructure to underpin military adoption of AI and digital tools 11 Exclusive for government use in key jurisdictions Commercial MILSATCOM Connectivity 68% Government-owned satellites 22% Terminals and Services 10%
Slide 12 — Telesat Lightspeed:
Telesat Lightspeed: Plan Update 12
Slide 13 — 225
Telesat Lightspeed on track for Q1 2028 commercial launch 13 225 $4B $2B Fully funded satellites; launches secured 1 Backlog secured Invested to date Satellites ordered Launch dates secured Manufacturing facility opened Ground segment rollout ongoing Pathfinder satellites under construction Global service 1Q28 1Includes one additional Falcon 9 rocket that remains subject to the completion of a launch services agreement.
Slide 14 — $4B / ~39%
Business Plan Update Summary Expanded Telesat Lightspeed constellation grows revenue and EBITDA 2028 2029 2030 2031 2032 Forecasted Revenue, 2028-2032 (US$M) Inclusive of all connectivity revenues (Mil-Ka, ESCP-P, and Space Relay) $4B / ~39% Cumulative increase over prior plan (2028-2032) $4.9B 2032 Forecast Revenue Previous Updated $3,200 $4,900 +53% Forecasted EBITDA, 2028-2032 (US$M) Inclusive of all connectivity revenues (Mil-Ka, ESCP-P, and Space Relay) $2,700 $4,100 +52% 2028 2029 2030 2031 2032 14 $4.1B 2032 Forecast EBITDA EBITDA margin profile comparable to prior forecasts
Slide 15 — Increased Demand for
Updated Telesat Lightspeed revenue mix (2032) reflects changed geopolitical context and addition of Mil-Ka 15 Growing Government Momentum & Investment 26% 24% 17% 13% 14% 46% 43% 16% $3,200 $4,900 Aviation Maritime Defence Enterprise Space Relay 2032 Forecasted Share of Revenue By Segment Previous Updated Mil-Ka as Differentiator Increased Demand for Space Relay Larger Constellation & More Capacity
Slide 16 — $4.9B
16 Telesat Lightspeed’s 2032 TAM exceeds US$359B, up from prior $320B estimate Maritime Defence Aviation Enterprise Telesat’s 2032 % share of TAM US$294B TAM | US$0.8B Telesat Lightspeed (0.25%) US$5B TAM | US$0.7B Telesat Lightspeed (13%) US$17B TAM | US$1.2B Telesat Lightspeed (7%) US$43B TAM | US$2.2B Telesat Lightspeed (5%) $4.9B In Forecast 2032 Revenue 1.3% Total Addressable Market Share
Slide 17 — Accelerating plans for Telesat Lightspeed constellation expansion
Accelerating plans for Telesat Lightspeed constellation expansion 17 156 225 156 225 42 70 295 44% 49% • Telesat Lightspeed is now planned to have 225 highly advanced satellites in 2028 (fully funded) • Prior plan was for 156 satellites, with an additional 42 satellites funded with future cash flows from the initial constellation • Telesat had planned on adding further satellites beyond the 198 planned; current demand forecasts have pulled those planned additions forward into 2032, but no capex has been committed at this time Telesat Lightspeed Constellation Size 2032 (Planned) 2028 (Funded) Prior (funded) Current (funded) Demand dependent
Slide 18 — Telesat is strongly positioned to execute its growth plan and create
18 Telesat is strongly positioned to execute its growth plan and create significant shareholder value Telesat has the strong support of Canada’s Federal and Provincial governments Telesat Lightspeed is fully funded with US$4B contractual backlog Current geopolitical environment and increased global defence spending create strong demand for advanced LEO networks Telesat Lightspeed is optimized to meet fast-growing requirements of enterprise and government users 57 years of innovation, industry firsts, engineering excellence and world class customer service have made us a trusted provider of mission- critical, enterprise-grade communications services
Slide 19 — James Ratcliffe
James Ratcliffe +1 613 748 8424 Investor contact: [email protected]