Eutelsat Communications Sa · EURONEXT:ETL
Eutelsat Communications Sa — FY2009-10 Earnings Presentation
34 slides from Eutelsat Communications Sa's earnings presentation, Jul 30, 2010
Slide 1: Eutelsat Communications Full Year 2009-2010 Results
EUTELSAT COMMUNICATIONS FULL YEAR 2009-2010 RESULTS Section >>> 1 Slide >>>
Slide 2: Disclaimer
2 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
Slide 3: Agenda
3 Agenda 2009-2010: A record year Strong operating momentum Excellent financial performance Our commitment: growth, profitability and reliability Section >>> Slide >>>
Slide 4: A Record Year
4 A Record Year Revenue Increase of more than €100 M to €1,047.2 M (+11.3%) EBITDA Strong performance: + 11.5% to €827.8 M In-orbit resources perfectly aligned with demand Fleet from highest-potential markets Group share of net income: €269.5 M (+9%) Distribution + 15.2% per share dividend increase
Slide 5: At Eutelsat, we Deliver…
5 At Eutelsat, we Deliver… Growth Growth driven by digital video and broadband services in markets with highest potential Profitability Consistently high profitability, highest among peers Reliability A company that has delivered on financial expectations year over year Section >>> Slide >>>
Slide 6: Executive Management Team Strengthened
6 Executive Management Team Strengthened David Bair Jean-Paul Brillaud Catherine Guillouard Michel de Rosen Andrew Wallace photo photo photo photo photo Chief Technical Officer Deputy CEO Chief Financial Officer Chief Executive Officer Chief Commercial Officer Section >>> Slide >>>
Slide 7: Agenda
7 Agenda 2009-2010: A record year Strong operating momentum Excellent financial performance Our commitment: growth, profitability and reliability Section >>> Slide >>>
Slide 8: 7% Revenue CAGR over Past 5 Years
8 7% Revenue CAGR over Past 5 Years Revenue / €M 1000 1,047.2 950 940.5 900 877.8 850 829.1 791.1 800 750.4 750 700 650 600 550 500 FY04-05 FY05-06 FY06-07 FY07-08 FY08-09 FY09-10 Section >>> Slide >>>
Slide 9: Fleet Capacity Increased by 11%
9 Fleet Capacity Increased by 11 % Operational Transponders 652 Increased leased transponder 505 589 capacity of 9% 501 Improvement of operational flexibility Fill rate 80.0% 93.4% 88.8% 87.5% New capacity to support dynamic markets FY 06-07 FY 07-08 FY 08-09 FY 09-10 Section >>> Slide >>>
Slide 10: Exceptional Growth Driven by Substantial Capacity Increase in Just 18 Months
Exceptional Growth Driven by Substantial Capacity 10 Increase in Just 18 Months ATLANTIC BIRD™ 4A EUROBIRD™ 4A EUROBIRD™ 9A W2A W7 39 16 38 52 70 7°W 4°E 9°E 10°E 36°E Full-year effect of capacity added in FY08-09 Rapid take-up of W7 X Transponders Section >>> Slide >>>
Slide 11: Focused on Most Promising Segments
11 Focused on Most Promising Segments Video Data & VAS 71% 20% Multiusage 9% Expressed as percentage of turnover as of June 30, 2010 excluding "other and non recurring revenues" Section >>> Slide >>>
Slide 12: Video: Strong Exposure to Growing Markets
12 Video: Strong Exposure to Growing Markets 14.8% of increase in channels (+471) Revenue (€M) +9.2% 3,662 TV channels +4.7% Second Continent represents 63% of TV channel growth driven by digital TV 742.0 679.7 649.4 FY 07-08 FY 08-09 FY 09-10 Eutelsat defines its First Continent as Western Europe a
Slide 13: 471 New TV Channels: +14.8%
13 471 New TV Channels: +14.8% HOT BIRD™ leading position with 1,122 TV channels Four neighborhoods breaking double-digit growth HOT BIRD™ FOUR OF THE FASTEST GROWING NEIGHBOURHOODS +16.4% +10.4% 1,122 525 415 +11% +77.3% Replicate Successful 272 321 HOT BIRDTM Strategy 9°East 7°West 16°East 36°East
Slide 14: HDTV Ramping Up in All Markets
14 HDTV Ramping Up in All Markets Russia Poland France Luxembourg Italy Turkey 155 HDTV Channels for Eutelsat: +80% Albania Switzerland Hungary France/Germany United Kingdom Sub-Saharan Africa Source: Eutelsat analysis Section >>> Slide >>>
Slide 15: Growth Continues for Broadband and Data
15 Growth Continues for Broadband and Data Data services Revenue (€M) » Continuing strong demand from Africa, Central Asia and Middle East +17.8% 203.7 • Interconnection of corporate +19.3% +13.4% and GSM networks (Internet 173.0 46.3 backbone) 152.5 » W2A satellite launched in 38.8 April 2009 34.7
Slide 16: Robust Demand for Multiusage
16 Robust Demand for Multiusage Solid demand from government Revenue (€M) agencies +30.1 %1 Renewal of all contracts coming to an end during the period +29.8 % Eutelsat fleet well positioned to capture new contracts 98.1 75.4 58.1 FY 07-08 FY 08-09 FY 09-10 1At constant exchange rate, growth would h
Slide 17: Record Backlog: €4.9 billion
17 Record Backlog: € 4.9 billion Strengthened visibility of nearly 4.7 years of annual revenues Weighted average residual life of contracts: 8 years 4.88 Bn€ 3.94 Bn€ 3.41 Bn€ 92% video 92% video 93% video FY 07-08 FY 08-09 FY 09-10 Major growth contributors Section >>> Slide >>>
Slide 18: Agenda
18 Agenda 2009-2010: A record year Strong operating momentum Excellent financial performance Our commitment: growth, profitability and reliability Section >>> Slide >>>
Slide 19: Record Revenue Growth of More than €100 M
19 Record Revenue Growth of More than €100 M Revenue / €M Full effect of 4 new satellites entered into service in calendar 2008 – 2009 (W2A, ATLANTIC BIRD™ 4A, EUROBIRD™ 9A, EUROBIRD™ 4A) 1,047.2 940.5 877.8 Doubled capacity at 36°East with the arrival of W7 and its rapid take-up FY 07-08 FY 08-09 F
Slide 20: 11.5% Increase in EBITDA
20 11.5% Increase in EBITDA* EBITDA / €M Strong top line growth along with tight cost controls Operating expenses stable at 21% of 827.8 revenues 742.1 EBITDA margin of 79%, the highest 695.7 profitability among leading satellite operators FY 07-08 FY 08-09 FY 09-10 *EBITDA is defined as operating i
Slide 21: Deleveraging Ongoing
21 Deleveraging Ongoing €M High level of cash flow from operating activities: 66.7% of revenues 654.7* 698.3 » Growth of EBITDA (+ €86 M) 566.6 » No “one off” in FY 09-10 FY 07-08 FY 08-09 FY 09-10 *Includes €46.6 M one-offs Net debt / EBITDA: 2.93x » Lower compared to June 30, 2009 » In spite of in
Slide 22: Operating Free Cash Flow Exceeds €200 M
22 Operating Free Cash Flow Exceeds €200 M 698.3 €M 654.7 566.6 494.4 422.5 416.6 CAPEX within target of € 450 M / year on average FY 07-08 FY 08-09 FY 09-10 Net Cash flow from operating activities Capital expenditure Section >>> Slide >>>
Slide 23: Successful Refinancing Eutelsat S.A. at Efficient Costs
23 Successful Refinancing Eutelsat S.A. at Efficient Costs BEFORE Refinancing AFTER Refinancing March 2010 Term Loan: € 650 M Margin over Euribor: 50 bp* Bond: € 850 M Hedged cost: 3.9150% Final coupon: 4.125% Maturity: November 2011 Maturity: March 2017 Revolving Credit Facility: € 650 M Margin ove
Slide 24: Balanced Financing Sources and Maturity
24 Balanced Financing Sources and Maturity BEFORE March 2010 Refinancing Debt by Source AFTER March 2010 Refinancing of Funding Eutelsat Group Eutelsat SA Eutelsat Group Bond 26% Bond Bank Facility 65% 100% Bank Facility Bank Facility 74% 35% Improved Debt Maturity BEFORE Refinancing AFTER Refinanci
Slide 25: Cost Effective Debt Structure
25 Cost Effective Debt Structure €2,424 M1 Eutelsat Group level €2,326 M 1 » Average maturity: 4.8 years at June 30, 2010 » Average rate of debt after hedging: 3.61% in 2009-2010 versus 4.15% in 2008-2009 1,614 Debt issued by Eutelsat Communications 1,611 Term loan Term Loan » Term loan €1.6 Bn due
Slide 26: Excellent Overall Performance
26 Excellent Overall Performance Extracts from the Income FY 2008- FY 2009- Change (%) statement in M€ 2009 2010 Revenues 940.5 1,047.2 +11.3% +12.6 % at constant euro-dollar exchange rate EBITDA* 742.1 827.8 +11.5% Operating expenses stable at 21% of revenue EBITDA margin 78.9% 79.0% Highest
Slide 27: Proposed Distribution Increase: +15.2% vs. Last Year
27 Proposed Distribution Increase: +15.2% vs. Last Year Distribution Proposed Payout Ratio 0.76 € per share 62% 0.76€ 0.54€ 0.58€ 0.60€ 0.66€ FY 05-06 FY 06-07 FY 07-08 FY 08-09 FY 09-10 Shareholder Approval Annual General Meeting: November 9th, 2010 Section >>> Slide >>>
Slide 28: Agenda
28 Agenda 2009-2010: A record year Strong operating momentum Excellent financial performance Our commitment: growth, profitability and reliability Section >>> Slide >>>
Slide 29: Growth: Meeting Ever-Expanding Digital Economy Needs
29 Growth: Meeting Ever-Expanding Digital Economy Needs Eutelsat Well Positioned Key orbital assets well positioned Increasing Consumer Demand More TV Channels Higher quality (HD/3D) Key frequency usage (Ku band) Internet everywhere More mobile bandwidth Use of new frequency bands Ka and S Investmen
Slide 30: Growth + Reliability: Capacity Increase of 25% through June 2013
30 Growth + Reliability: Capacity Increase of 25% through June 2013 7 new satellites through H1 2013 Satellites in operation Unmatched capacity for high speed Internet access Satellites to be launched ATLANTIC 7°W W5A 70.5°E W3C 7°E KA-SAT 9°E W6A 21.5°E (Q4 2012) BIRD™ 7 (Q4 2011) (Q4 2011) (Q4 201
Slide 31: KA-SAT to Respond to Broadband Needs
31 KA-SAT to Respond to Broadband Needs A flexible technology Traditional satellite with broad coverage » Consumer broadband to areas in Digital Divide » Professional Networks (VSAT services) » Professional Video (News gathering) » Regional Broadcasting Partnerships with telecom operators (mainly),
Slide 32: Outlook: Growth, Profitability & Reliability
32 Outlook: Growth, Profitability & Reliability FY10–11: above €1,120 M Revenue 2010–2013: CAGR above 7% FY10–11: above €875 M EBITDA 2010–2013: maintain EBITDA margin above 77% CAPEX 2010–2013: €450 M average per annum Distribution 50% to 75% of Group share of net income Net Debt ÷ Lower than 3.5x
Slide 33: At Eutelsat, we Deliver…
33 At Eutelsat, we Deliver… Section >>> Slide >>>
Slide 34: Questions & Answers
34 QUESTIONS & ANSWERS Section >>> Slide >>>
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