SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — FY2014 Earnings Presentation
24 slides from SES SA FDR (Class A)'s earnings presentation, Feb 20, 2015
Slide 1: FY 2014 Results
FY 2014 RESULTS Year ended 31 December 2014 20 February 2015
Slide 2: Highlights
Highlights Combining revenue growth and operational optimisation delivers 5.0% EBITDA growth Continuing to grow our core video business Expanding data and mobility applications with major in-flight connectivity agreements Building new growth drivers in Government-related connectivity and ser
Slide 3: Delivering a strong performance
Delivering a strong performance 2014 Growth vs. Growth vs. 2013 EUR million 2013 reported at constant FX(1) Revenue 1,919.1 +3.0% +4.0% EBITDA 1,428.0 +4.6% +5.0% Net Profit 600.8 +6.0% n/a European and International infrastructure growth combined with strong European services performance Revenu
Slide 4: Major developments across the regions
Major developments across the regions 2014 Revenue EUR million Major business developments 1,017.7 ▲ Sale of transponders to ETL Europe ▲ ORF, M7 Group and Setanta growing HD TV offer +9.1%(1) ▲ Continued services growth; HD+, SES PS and TechCom 341.7 ▲ End of CHIRP and lower renewals impacting SES
Slide 5: Executing on SES's strategic principles
Executing on SES’s strategic principles Strategy execution based on three principles: Infrastructure focused business Infrastructure +3.8%(1); incl. “pull through” from Services +12.2%(1) 1 • Core business of space segment 5.1% growth in satellite HD TV channels (25% market share) infrastructu
Slide 6: Growing video neighbourhoods
Growing video neighbourhoods Number of total TV channels(1) 7,000 6,529 6,237 6,000 5,546 5,210 5,000 4,000 3,000 1,793 1,885 2,000 1,486 1,202 1,000 0 Q4 2011 Q4 2012 Q4 2013 Q4 2014 Total TV channels HD TV channels Increasing HD TV in Europe with new contracts including ORF, M7 Group and Setanta
Slide 7: Developing SES's hybrid Wide beam and HTS offer
Developing SES’s hybrid Wide beam and HTS offer SES-14 C-band wide beam coverage SES-15 Ku-band wide beam coverage SES-14 will operate at 47.5°/48° West SES-15 to operate at 129° West Replacing existing NSS-806 over Latin America 10 GHz of HTS capacity to develop North Wide beam coverage p
Slide 8: Serving growing demand for in-flight connectivity
Serving growing demand for in-flight connectivity SES-14 Ku-band HTS coverage SES-15 Ku-band HTS coverage Gogo’s first transatlantic connectivity service using SES-1, SES-4 and SES-6 Major long-term agreement with Global Eagle Entertainment (GEE) • GEE also taking HTS capacity on SES-14 (Q4 2017
Slide 9: Diversifying SES's Government business
Diversifying SES’s Government business SES-16/GovSat global beam coverage and connectivity LuxGovSat established with Luxembourg Government • Dedicated government satellite delivering 68 transponder equivalents for Europe/MENA region High powered, global and fully steerable beams using military
Slide 10: Enhancing services value
Enhancing services value Infrastructure is complemented by enhanced services, further differentiating SES’s capabilities Infrastructure Platform & Solution Experience Provider (GEO/MEO) Provider (B2B) Provider (B2C) Video Enterprise Mobility Government “Pull through” from services increased 12.2%(
Slide 11: Complementing SES's GEO assets with O3b
Complementing SES’s GEO assets with O3b SES has a 45% interest in O3b 12 Medium Earth Orbit (MEO), super HTS satellites Covering between 45 degrees North and 45 degrees South Target markets include over 3 billion people High throughput of over 1 Gbps per beam(1) Ultra low latency (less t
Slide 12: Optimising future satellites through innovation
Optimising future satellites through innovation Six new satellites committed since end-2013 HTS Digital Electric Region Application payload processor propulsion SES-10 Latin America Video, Enterprise Ku-band specifically for EchoStar; SES C-band SES-11 North America Video replacement SES-12 Asia-Pac
Slide 13: Developing for future growth in attractive markets
Developing for future growth in attractive markets Two satellites successfully launched in 2014 with a further seven satellites scheduled by end-2017 Incremental capacity: 211 txps (of which 174 txps International) Incremental capacity (36 MHz equivalent) Chart Title +68 +8 +8 Successfully launched
Slide 14: Financial Review
Financial Review Padraig McCarthy, CFO
Slide 15: Financial highlights
Financial highlights 2014 2013 Growth vs. Growth at EUR million EUR million reported constant FX Revenue 1,919.1 1,862.5 +3.0% +4.0% EBITDA 1,428.0 1,364.7 +4.6% +5.0% EBITDA margin 74.4% 73.3% +110 bps +70 bps Operating profit 882.6 851.2 +3.7% +4.1% Profit of the group 600.8 566.5 +6.0% EPS EUR 1.
Slide 16: Revenue up 4.0% at constant FX
Revenue up 4.0% at constant FX Revenue walk from FY 2013 to FY 2014 EUR million 1,919.1 84.6 42.9 (+3.0% vs. +9.1% +8.3% 2013 actual) 1,862.5 1,844.9 (53.3) (17.6)(1) -13.5% FY 2013 FX adjustment/ FY 2013 Europe North International FY 2014 Actual Scope change (at constant FX) growth America growth A
Slide 17: Increase in utilised transponders
Increase in utilised transponders Fleet utilisation (36 MHz equivalent) 31 December 31 December 2014 2013 Europe utilised 297 278 Europe available 366 347 Europe utilisation rate 81.1% 80.1% North America utilised 265 279 North America available 379 384 North America utilisation rate 69.9% 72.7% Int
Slide 18: EBITDA increased 5.0% at constant FX
EBITDA increased 5.0% at constant FX EBITDA walk from FY 2013 to FY 2014 EUR million 1,428.0 (+4.6% vs. 74.2 2013 actual) (6.1) 1,364.7 1,359.9 (4.8)(1) EBITDA EBITDA EBITDA margin: margin: margin: 73.3% 73.7% 74.4% FY 2013 FX adjustment/ FY 2013 Revenue Change in FY 2014 Actual Scope change (at con
Slide 19: Growing Infrastructure and Services revenue
Growing Infrastructure and Services revenue Revenue and EBITDA margins by segment (at constant FX) Revenue (EUR million) EBITDA margin (%) 2014 2013 at Growth at Actual constant FX constant FX 2014 2013 Infrastructure 1,643.3 1,583.8 +3.8% 84.4% 83.4% Services 455.7 421.4 +8.1% 16.6% 17.5% Eliminati
Slide 20: Other items contributing to 6.0% Net Profit growth
Other items contributing to 6.0% Net Profit growth Depreciation walk from FY 2013 to FY 2014 Net financing costs walk from FY 2013 to FY 2014 EUR million EUR million 17.4 20.9 491.6 173.5 466.5 6.7 155.0 (10.0) (16.3) (2.5) (9.6) FY 2013 FX AMC-15 Changes to FY 2014 FY 2013 Net interest Capitalised
Slide 21: Lowering replacement CapEx; accelerating growth
Lowering replacement CapEx; accelerating growth Capital expenditure profile EUR million At 31 Oct 2014 (reported)(1): 400 510 480 450 450 n/a At 31 Oct 2014 (restated)(2): 420 560 530 495 495 n/a 835 54 Total 2015-2019: EUR 2.6 billion(2) 691 60 650 580 65 55 50 495 419 80 450 450 781 57 347 50 631
Slide 22: Strong Free Cash Flow generation
Strong Free Cash Flow generation Free Cash Flow before financing activities EUR million 726.2 738.4 535.7 39% 39% 29% 229.6 13% 2011 2012 2013 2014 Free Cash Flow Free Cash Flow as a % of Revenue Free Cash Flow before financing activities continues to increase and maintained at 39% of revenue De
Slide 23: Positive medium-term growth outlook
Positive medium-term growth outlook Revenue EBITDA 2015 growth(1) Up to 1% Up to 1% 2014-2016 CAGR(1) 3.5% - 4% 3.5% - 4% 2015 a year of continued building for future growth: • Revenue and EBITDA growth driven by commercialisation of existing capacity • Lower level of outright transponder sales co
Slide 24: 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