SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — Q3 2016 Earnings Presentation
26 slides from SES SA FDR (Class A)'s earnings presentation, Oct 28, 2016
Slide 1: YTD and Q3 2016 Results
YTD and Q3 2016 Results Ended 30 September 2016 28 October 2016 YTD and Q3 2016 Results
Slide 2: Highlights
Highlights World leading satellite-enabled solutions provider – well positioned to grow in all verticals Expanding Augmenting Future- through through proof Globalisation Verticalisation Innovation EUR 750 million Over 700 customers EUR 8.0 billion total revenue from new across 130 countries contract
Slide 3: Accelerators complementing return to growth
Accelerators complementing return to growth Revenue Growth (YOY) YTD 2016 EUR million Constant FX Reported Constant FX(1) and same Key dynamics scope(2) ▲ Accelerating transition to HD/UHD Video (69%) 1,026.8 +3.8% +3.5% +0.9% ▲ Globalising SES’s Video business -20.0% ▲ O3b as growth accelerator Ent
Slide 4: Video: growing in video and scaling up capabilities globally
Video (69% of revenue): EUR 1,026.8 million Growing in video and scaling up capabilities globally Backend Infrastructure Experience provider provider provider Accelerating transition to HD and UHD • Growing HDTV channels to 2,434 (+6.1% YOY) Video revenue • HD penetration grown from 31.3% to
Slide 5: Enterprise: reshaping SES's global offering and solutions
Enterprise (12% of revenue): EUR 181.7 million Reshaping SES’s global offering and solutions Infrastructure Network Service provider platform provider Focusing on global ‘Tier One’ clients with differentiated end-to-end solutions • Reducing Tier Two (wholesale/point-to-point) to Enterprise r
Slide 6: Mobility: developing market-leading positioning
Mobility (5% of revenue): EUR 76.8 million Developing market-leading positioning Infrastructure Network Service provider platform provider Establishing a market-leading position in aero • Major long-term agreement with Thales Avionics Mobility revenue • Now secured significant, multi-year co
Slide 7: Government: expanding SES's global government business
Government (12% of revenue): EUR 176.6 million Expanding SES’s global government business Infrastructure Network Service provider platform provider Growing backlog from U.S. government • SES GS backlog up 10% since start of 2016 Government revenue • Providing important end-to-end GEO/MEO EUR
Slide 8: Growth accelerators: O3b delivering global connectivity solutions
Growth accelerators already making important contributions: O3b delivering differentiated, ultra-high throughput and low latency global connectivity solutions O3bTrunk O3bCell O3bEnergy O3bMaritime O3bGovernment YTD 2016 revenue doubled and O3b on track to deliver over USD 100 million of revenue i
Slide 9: Growth accelerators: MX1 global media services platform
Growth accelerators already making important contributions: MX1 recently unveiled a new global, end-to-end media services platform Transform Accelerate Globalise World-leading media solutions and experience provider • Distributing 2,500 TV channels, supporting 120 VoD platforms and delivering 500
Slide 10: Securing further major, long-term IFC/IFE commitments in aero
Securing further major, long-term IFC/IFE commitments in aero SES-12 SES-14 SES-15 SES-17 Delivering fully managed aero solution, initially for 400 aircraft and growing Customised for maritime and other data applications Thales will launch new FlytLIVE service from mid- 2017, using existing SE
Slide 11: Delivering sustainable long-term growth
Delivering sustainable long-term growth 2016 2017 2018 2019 2020 Video SES-9, SES-10, SES-12, SES-14, SES-15 (wide beam) Up to Enterprise SES HTS (SES-12, SES-14, SES-15) EUR 750 million O3b of annualised revenue by 2021(1,2) Mobility SES HTS (SES-12, SES-14, SES-15) from GEO/MEO investments O3b (Ov
Slide 12: Financial Results
FINANCIAL RESULTS Padraig McCarthy, CFO YTD and Q3 2016 Results 11
Slide 13: Financial Highlights
Financial Highlights Growth at YTD 2016 YTD 2015 Growth as Growth at constant FX and EUR million Actual As reported reported constant FX same scope(1) Revenue 1,490.1 1,492.6 -0.2% -0.6% -3.6% EBITDA 1,060.9 1,106.5 -4.1% -4.7% -4.7% EBITDA margin 71.2% 74.1% -290 bps -310 bps -80 bps Operating prof
Slide 14: Reported revenue in line with prior period
Reported revenue in line with prior period (-0.6% at constant FX) Revenue walk EUR million -3.6% at same scope 1,492.6 +6.1(1) 1,498.7 +46.0(3) 1,490.1 1,459.2 +8.5 +16.8 +7.1 1,444.1 (39.5)(2) (35.4) (12.1) -1.0% at same scope exc. ‘legacy’ items YTD 2015 FX YTD 2015 'Legacy' YTD 2015 Video Enterpr
Slide 15: EBITDA margin (at same scope) remains robust
EBITDA margin (at same scope) remains robust EBITDA walk EUR million 1,106.5 +6.5(1) 1,113.0 +2.3 1,060.7 +4.1 1,060.9 (54.6) (3.9) EBITDA EBITDA Margin EBITDA EBITDA Margin 74.3% Margin Margin 74.1% 73.5% 71.2% YTD 2015 FX YTD 2015 Change in Change in YTD 2016 Transaction- O3b and YTD 2016 (actual)
Slide 16: Reducing depreciation (at same scope)
Reducing depreciation (at same scope) Depreciation and amortisation walk EUR million +2.5 +17.7 450.5 440.1 +4.4 +0.9 428.4 46.3 49.3 (15.1) 47.0 401.2 393.8 381.4 YTD 2015 FX Changes to Changes to YTD 2016 RR Media O3b YTD 2016 (actual) adjustment depreciable intangibles (same scope) (actual) fleet
Slide 17: Other items contributing to net profit of EUR 824.0 million
Other items contributing to net profit of EUR 824.0 million Net financing costs walk EUR million +31.6 135.3 +18.8 135.4 116.5 +0.1 (8.4) 103.7 (9.3) (1.1) YTD 2015 Net foreign YTD 2015 Net Capitalised Other finance YTD 2016 RR Media O3b YTD 2016 (actual) exchange adjusted interest interest charges
Slide 18: Net Debt to EBITDA ratio in line with Financial Framework
Net Debt to EBITDA ratio in line with Financial Framework SES’s Net Debt to EBITDA profile Net Debt to EBITDA ratio increased reflecting Times consolidation of RR Media and O3b 3.30(1) Net debt to EBITDA ratio includes EUR 1.1 billion of net debt from O3b 3.05(2) 2.62 2.54 • One-third of O3b deb
Slide 19: Re-investing in important growth opportunities
Re-investing in important growth opportunities SES’s future GEO/MEO capital expenditure profile(1) Expanding SES’s global network and capabilities EUR million with long-term anchor customer agreements As at H1 2016 results (29 July 2016): 820 680 565 535 510 • +127 incremental wide beam transponde
Slide 20: Maintaining a substantial pipeline of long-term income
Maintaining a substantial pipeline of long-term income SES’s fully protected contract backlog Delivering income visibility with the benefit of EUR billion SES’s capability-driven strategy 8.0 • Right capability system and approach to market 0.1 0.3 • Deploying the right capabilities to each vertic
Slide 21: FY 2016 financial guidance
FY 2016 financial guidance SES focusing on significant growth opportunities across all four verticals and is supported by the unsurpassed contract backlog to date • Timing of some of these opportunities may extend beyond Q4 2016, and this, along with development of wholesale capacity sales in Ente
Slide 22: Appendix
Appendix YTD and Q3 2016 Results 21
Slide 23: Future satellite capacity
Future satellite capacity HTS capacity Launch date Payload type Incremental txps(3) (GHz) Launch provider SES-10 Q1 2017(4) Shaped 27 - SpaceX SES-11 H1 2017(4) Shaped - - SpaceX SES-12(1) H2 2017 Shaped/HTS 8 14 Ariane SES-14(1) H2 2017 Shaped/HTS 8 12 SpaceX SES-15(1) H1 2017 Shaped/HTS 16 10 Aria
Slide 24: Continuing to deliver robust margins and differentiated services
Continuing to deliver robust margins and differentiated services Revenue (EUR million) EBITDA margin Growth Growth Growth (constant FX and YTD 2016 YTD 2015 YTD 2016 (reported) (constant FX) same scope) YTD 2016 (same scope)(2) (constant FX) Infrastructure 1,238.8 -2.8% -3.2% -4.6% 82.5% 83.7% 84.1%
Slide 25: Q3 2016 revenue development by vertical
Q3 2016 revenue development by vertical Revenue Growth (YOY) vs Q3 2015 Q3 2016 EUR million Constant FX and same Reported Constant FX(1) scope(2) Video 361.1 +9.9% +9.9% +1.9% Enterprise 64.2 -11.6% -11.6% -22.1% Mobility 32.3 +51.6% +50.9% +12.1% -5.1% Government 63.7 +0.8% +0.6% -1.2%(3) Other 12.
Slide 26: Disclaimer
Disclaimer This presentation does not, in any jurisdiction, including without limitation in the U.S., constitute or form part of, and should not be construed as, any offer for sale of, or solicitation of any offer to buy, or any investment advice in connection with, any securities of SES, nor shou