Eutelsat Communications Sa · EURONEXT:ETL
Eutelsat Communications Sa — FY2011-12 Earnings Presentation
33 slides from Eutelsat Communications Sa's earnings presentation, Jul 31, 2012
Slide 1: Full Year 2011-2012 Results
Full Year 2011-2012 Results July 31, 2012 1
Slide 2: Agenda
Agenda Key 2011-2012 achievements Sustained operational performance Update on KA-SAT Financial overview Positive outlook: growth & profitability 2
Slide 3: Full Year 2011-2012: Key Figures
Full Year 2011-2012: Key Figures €1,222.2 M, up 4.6% Revenue +5.4% at constant currency Strong profitability: EBITDA at €957 M EBITDA Industry leading 78.3% margin Group share of net income at €326 M Net result 27% net margin Financial Robust financial position, with Net Debt / EBITDA at 2.48x posit
Slide 4: Key Achievements in FY 2011-2012
Key Achievements in FY 2011-2012 Successful launches of EUTELSAT 7 West A and EUTELSAT 16A EUTELSAT 7 West A and EUTELSAT 16A came into operation in Q2 2011-2012 at 7°West and 16°East respectively Acquisition of GE-23 for USD228 M in cash A high quality asset Expanding Eutelsat’s reach and commercia
Slide 5: Increased Free-Float Following Abertis Telecom Stake Disposals
Increased Free-Float Following Abertis Telecom Stake Disposals Fonds Stratégique d’Investissement 25.6% Others & Public 59.0% 8.4% Abertis 7.1% Telecom China Investment Corporation (CIC) 5
Slide 6: Agenda
Agenda Key 2011-2012 achievements Sustained operational performance KA-SAT update Financial overview Positive outlook: growth & profitability 6
Slide 7: Record Backlog Providing Strong Visibility
Record Backlog Providing Strong Visibility Backlog (€bn) + €285m since June 30, 2011 with EUTELSAT 7 West A and EUTELSAT 16A entry into service 5.2 5.0 Weighted average residual 4.9 life of contracts: 6.9 years Video 92 % 91 % 92 % FY 2009-10 FY 2010-11 FY 2011-12 4.3 years of FY 2011-12 revenues Th
Slide 8: New Capacity Gives Room For Expansion
New Capacity Gives Room For Expansion Operational transponders Fill rate reduced to 75.6% (in txp) Most additional Ku capacity +8% +8% allocated to the recently +14% +14% opened orbital position at 3° 7421 8011 East 652 New capacity focused on the most dynamic markets Fill rate 87.5 % 79.2 %2 75.6 %
Slide 9: Revenue Growth of 4.6% at €1,222 Million
Revenue Growth of 4.6% at €1,222 Million VIDEO €M +5.8% +5.8% 68.6% 787 832 €M FY 2010-11 FY 2011-12 +4.6% +4.6% DATA AND VAS €M 1,222 ++0.4% 0.4% 1,168 19.4% 235 234 FY 2010-11 FY 2011-12 FY 2010-11 FY 2011-12 MULTI-USAGE €M +16.7% +16.7% 147 12.1% 126 FY 2010-11 FY 2011-12 Expressed as percentage
Slide 10: Video: Strong Exposure to Growing Markets
Video: Strong Exposure to Growing Markets Consolidation of key DTH slots with EUTELSAT 7 West A and EUTELSAT 16A 10% increase in channels (+381) vs. FY 2010-11 4,261 TV channels (of which 346 HD, 8.1% penetration) TV channel expansion (including HD) is mainly driven by high growth markets which now
Slide 11: Data and Value Added Services: A Transitional Year
Data and Value Added Services: A Transitional Year Data services Revenues for Data & VAS (€M) Tough comparables with strong previous year performance More competitive environment in sub- 234 +0.4% 235 +0.4% Saharan Africa Limited available capacity on existing 204 +14.9% +14.9% fleet to meet custome
Slide 12: Multi-usage: Slower Growth Off a High Base
Multi-usage: Slower Growth Off a High Base Revenues from Multi-usage Multi-usage annual (€M) performance still driven by previous year commercial dynamics and renewals +16.7%11 +16.7% +28.0% 147 Weaker February/March 2012 +28.0% renewal campaign 126 98 Future new capacity closely aligned to customer
Slide 13: Agenda
Agenda Key 2011-2012 achievements Sustained operational performance KA-SAT update Financial overview Positive outlook: growth & profitability 13
Slide 14: First Year of Activity for KA-SAT…
First Year of Activity for KA-SAT… Proven technological credentials KA-SAT is an “ecosystem” with one satellite and a network of 10 gateways Total throughput increased to 90 Gbit/s Strong market potential 30 million unserved and under-served households in KA-SAT’s coverage High level of customer sat
Slide 15: … Mainly Driven by Tooway Consumer Broadband Internet
… Mainly Driven by Tooway™ Consumer Broadband Internet B2B solutions 52,450(1) activated ToowayTM terminals, with acceleration in Emergence of B2B enterprise the second half broadband access services, mainly for SMEs Primarily in Western Europe: France, UK, Germany, Italy, Market for broadcasting an
Slide 16: Boosting KA-SAT's Commercial Development
Boosting KA-SAT’s Commercial Development Three key initiatives to drive sales Enhancing product offering ToowayTM: higher speed, increased volume, lower equipment entry cost B2B services: better address new markets and customer needs Reinforcing distribution channel management and expanding across K
Slide 17: Agenda
Agenda Key 2011-2012 achievements Sustained operational performance KA-SAT update Financial overview Positive outlook: growth & profitability 17
Slide 18: Strong Net Margin Despite Non-Recurring Financial Charges
Strong Net Margin Despite Non-Recurring Financial Charges Extracts from the consolidated income statement in €M1 FY 2010-11 FY 2011-12 Change Revenues 1,168 1,222 +4.6% +5.4% a constant exchange rate EBITDA2 926 957 +3.3% EBITDA margin 79.3% 78.3% Strong EBITDA margin despite higher Opex Operating i
Slide 19: Industry Leading EBITDA Margin Maintained
Industry Leading EBITDA Margin Maintained EBITDA (€M) Industry-leading EBITDA margin of 78.3% +3.3% +3.3% Continued policy of strict +11.9% operating costs control +11.9% 957 926 Operating expenses rose 828 9.6% as resources were added to reinforce the EBITDA Group’s overall margin » 79.0 % 79.3 % 7
Slide 20: Strong Net Cash Flows From Operating Activities
Strong Net Cash Flows From Operating Activities €M 817 698 697 494 4861 488 % of revenues 67 % 47 % 70 % 42 % 57 % 40 % FY 2009-10 FY 2010-11 FY 2011-12 Net Cash flows from operating activities Capital expenditure 1 Amount net of the €60M received from the capital reduction of the Solaris joint-vent
Slide 21: Strengthened Group Financial Structure
Strengthened Group Financial Structure Net debt1 (€M) Net debt / EBITDA at 2.48x €2,198 M €2,374 M (up from 2.37x at June 30, 2011) Term loan2 800 Term Loan2 Average maturity increased to 1,475 5.2 years following the refinancing Average cost of debt after hedging: 4.87% (3.70% before) 132 Bonds + B
Slide 22: 11% Dividend Increase Proposal
11% Dividend Increase Proposal Net Income (€M) Dividend per share (€) +11.1% +11.1% -3.7% -3.7% +25.6% +25.6% +18.4% +18.4% 1.00 339 326 0.90 270 0.76 FY 2009-10 FY 2010-11 FY 2011-12 FY 2009-10 FY 2010-11 FY 2011-12 Shareholders Annual General Meeting 8 November 2012 22
Slide 23: Agenda
Agenda Key 2011-2012 achievements Sustained operational performance KA-SAT update Financial overview Positive outlook: growth & profitability 23
Slide 24: Continuing to Target Fastest Growing Markets & Applications
Continuing to Target Fastest Growing Markets & Applications Transponder demand in EMEA Transponder demand CAGR 12-15 CAGR 12-17 3,000 2,563 2,610 TOTAL 2.8% 3.0% 2,483 2,272 2,339 2,425 Sub Saharan Africa 5.1% 5.6% 2,000 Middle East and North Africa 3.0% 3.4% 1,000 Central Europe1 2.9% 3.2% Western
Slide 25: Video: Strong Underlying Growth Drivers…
Video: Strong Underlying Growth Drivers… Increase in total number of channels and HD penetration 17,500 CAGR 11-21 HD penetration by subregion in 2021 High Definition 4.7% Standard Definition 15,000 HD: 19.1% 2,360 12,500 27% 17% 635 SD: 2.2% 45% 18% 754 381 10,000 7% 447 25% 14% 18% 2,939 2,978 7,5
Slide 26: … Addressed by Eutelsat
… Addressed by Eutelsat Prime video neighbourhoods underpinning solid growth Channel count at Eutelsat neighbourhoods1 serving fast growing markets HD channel count at all Eutelsat neighbourhoods c.x2 1,819 346 c.x4 1,062 86 2009 2012 Source: Eutelsat 1 7°/8°W, 16°E, 36°E 2009 2012 Addressing growin
Slide 27: Data & VAS: Strong Demand Growth for Interconnection
Data & VAS: Strong Demand Growth for Interconnection Robust growth in connectivity needs worldwide for enterprises and consumers Ku-band transponder demand for Corporate Networks Internet traffic growth (in Exabytes) & Broadband Access – Fast Growing Markets CAGR 11-16 CAGR 12-15 Fast growing market
Slide 28: Eutelsat Addresses the Data & VAS Challenge
Eutelsat Addresses the Data & VAS Challenge Upcoming satellites optimised for Data Services EUTELSAT 21B EUTELSAT 70B EUTELSAT 3B KA-SAT is key to answer consumer broadband needs in Europe and Mediterranean Basin Key initiatives underway to boost the commercial success Expansion on new fast-growing
Slide 29: Multi-usage: Growth, but at a Slower Pace
Multi-usage: Growth, but at a Slower Pace Multiusage Multi-usage services will continue to be in demand More volatile market, but will continue to grow on the long-term Demand Trend towards Network-Centric Communications requiring reliable and secure data transmission Growth of bandwidth hungry appl
Slide 30: Eutelsat's Supply to Address Fast Growing Markets
Eutelsat’s Supply to Address Fast Growing Markets The 7 new satellites during outlook period, with redeployments, will add 28% additional capacity to support our growth prospects in high growth markets 3 year outlook period June 2012 – June 2015 2012 2013 2014 2015 EUTELSAT EUTELSAT EUTELSAT EUTELSA
Slide 31: 3-Year Objectives: Growth & Profitability
3-Year Objectives: Growth & Profitability Revenue FY12–13: 3 to 4% growth 2012–2015: 5 to 6% CAGR EBITDA 2012–2015: EBITDA margin around 77% each year CAPEX 2012–2015: €500 M average per annum Distribution 65% to 75% of Group share of net income Net Debt ÷ Below 3.3x EBITDA Solid Investment Grade ra
Slide 32: Questions & Answers
> eutelsat COMMUNICATIONS
Slide 33: Disclaimer
Disclaimer This presentation does not constitute or form part of and should not be construed as any offer for sale of or solicitation of any offer to buy any securities of Eutelsat Communications, nor should it, or any part of it, form the basis of or be relied on in connection with any contract or
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