SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — Q3 2017 Earnings Presentation
24 slides from SES SA FDR (Class A)'s earnings presentation, Oct 27, 2017
Slide 1: YTD and Q3 2017 Results
YTD and Q3 2017 Results Ended 30 September 2017 Betzdorf, Luxembourg 27 October 2017 YTD and Q3 2017 Results |
Slide 2: Highlights
Highlights Reported revenue up 2.5% (-4.0% like-for-like); net profit up 20.0% (excluding one-off gain related to O3b consolidation in Q3 2016) SES Video underlying revenue broadly stable (down 0.9%) underpinned by long-term contracts with major pay-TV broadcasters Successfully launched SES-11
Slide 3: Reported Revenue Growing 2.5% with Verticals up 4.6%
Reported Revenue Growing 2.5% with Verticals up 4.6% YTD 2017 Change (YOY) EUR million Reported Like-for-like(1) ▲ Impact of lower periodic revenue and satellite health SES Video (68%) 1,031.5 +1.1% -3.8% ▲ MX1 refocusing services portfolio for growth ▲ Underlying revenue -0.9% with improving trend
Slide 4: Underlying Revenue Remains Stable in SES Video
Underlying Revenue Remains Stable in SES Video Revenue up 1.1% as reported Extending partnership with Sky Deutschland EUR million • Multi-year renewal of seven transponders 1,072.8 • Third long-term renewal signed with major pay-TV customers 1,020.0 1,031.5 within the last 18 months in Europe • Gl
Slide 5: Enhancing Viewing Experiences on a Global Scale
Enhancing Viewing Experiences on a Global Scale 325 million +3% ▲ Developed markets stable; growing developing market reach households (Q4 ‘16 vs. Q4 ‘15) ▲ Unrivalled quality and reliability at monthly cost of EUR 0.5 per household 7,743 total TV +6% ▲ Europe +4%; North America +3%; and Internation
Slide 6: Refocusing MX1 Portfolio of Services to Drive Future Growth
Refocusing MX1 Portfolio of Services to Drive Future Growth MX1 revenue lower (YOY) due to the impact of non-renewals of certain legacy services Refocusing portfolio of services on long-term growth opportunities with major broadcasters/content owners • Secured contract, during Q3 2017, with eoTV
Slide 7: Expanding HD+ Content and Subscribers; Driving Further Growth
Expanding HD+ Content and Subscribers; Driving Further Growth HD+ Paying Subscribers Million Private HDTV channels 8 23 2.2 New from 2017 … exclusive access to premium live sports: 45 Bundesliga games Grand Slam tennis International cycling, 2010 2011 2012 2013 2014 2015 2016 Q3 2017 motorspor
Slide 8: Growing SES Networks Revenue
Growing SES Networks Revenue Revenue up 12.7% as reported Fixed data down 5.2% YTD to EUR 194.5 million EUR million • Stablising from -20.0% reduction in FY 2016 (vs. FY 2015) 490.0 • Negatively impacted by AMC-9 failure and transitioning from 479.3 legacy wholesale fixed data networks 435.1 • Sig
Slide 9: Scaling Up Capabilities to Capture Growing Networks Demand
Scaling Up Capabilities to Capture Growing Networks Demand Reorienting SES Networks business towards end-to-end managed solutions, creating intimacy and long term value Industry business model business model Customer engagement ▲ ~3 - 6 month lead time ▲ ~1 - 2 years lead time Customer insight ▲
Slide 10: Achieving New Strategic Wins, Demonstrating Strategy Execution
Achieving New Strategic Wins, Demonstrating Strategy Execution Securing important SES Networks deals which will contribute to future revenue development Requiring commensurate resourcing and time to deploy, but offering greater scope and long-term growth potential Cruise Burkina Faso U.S. Govern
Slide 11: Empowering Clients With a New Era of Cloud-scale Connectivity
Empowering Clients With a New Era of Cloud-scale Connectivity Delivering the most powerful, flexible and scalable satellite-based system with ▲ More than 30,000 formed beams fully-shapeable and steerable in real-time Flexibility ▲ Unrivalled coverage of nearly 400 million square kilometres ▲ Mul
Slide 12: Financial Review
FINANCIAL REVIEW Padraig McCarthy, CFO
Slide 13: Financial Highlights
Financial Highlights YTD 2017 YTD 2016 Change (YOY) EUR million EUR million Reported Like-for-like(1) Revenue 1,527.2 1,490.1 +2.5% -4.0% EBITDA 994.6 1,060.9 -6.3% -5.9% - EBITDA margin (like-for-like)(1) 65.1% 66.4% Operating profit 448.4 610.4 -26.5% -12.1% - Operating profit margin (like-for-lik
Slide 14: SES Group revenue +2.5% as reported (-4.0% like-for-like)
SES Group revenue +2.5% as reported (-4.0% like-for-like) YTD 2017 Revenue walk -4.0% like-for-like (-2.0% Verticals) EUR million +102.1 +20.8 +0.5 1,591.6 (41.3) (10.7) (33.7) 1,527.2 1,490.1 (0.6) SES Networks: +2.2% YTD 2016 FX adjustment Like-for-like YTD 2016 (1) Video Fixed Data Mobility Gover
Slide 15: SES Video Revenue +1.1% as reported (-3.8% like-for-like)
SES Video Revenue +1.1% as reported (-3.8% like-for-like) YTD 2017 SES Video revenue YTD walk EUR million (19.8) (3.8) (7.5) 1,072.8 LFL(1) (10.2) 1,031.5 1,020.0 H1 Q3 YTD (as reported) Underlying -1.3% -0.2% -0.9% Periodic -1.8% -2.0% -1.8% MX1 -- -2.1% -0.7% Health -- -1.1% -0.4% Like-for-like ch
Slide 16: SES Networks Revenue +12.7% as reported (+2.2% like-for-like)
SES Networks Revenue +12.7% as reported (+2.2% like-for-like) YTD 2017 SES Networks revenue YTD walk EUR million +20.9(2,3) +0.5(2) 490.0 479.3 (6.0) (4.7)(2) LFL(1) 435.1 (as reported) -5.2% YTD 2016 Fixed Data Fixed Data Mobility Government YTD 2017 (Satellite health) (Underlying) (+22.3%) (+0.3%)
Slide 17: EBITDA of EUR 994.6 million
EBITDA of EUR 994.6 million (YTD 2016: EUR 1,060.9 million) EBITDA walk EUR million EBITDA -5.9% like-for-like(1) 1,060.9 (3.7) 1,057.2 +3.3 (30.7) (33.7) (1.5) 994.6 EBITDA EBITDA EBITDA margin margin margin 71.2% 66.4% 65.1% YTD 2016 Like-for-like YTD 2016 Revenue Revenue Cost of sales Fixed costs
Slide 18: Like-for-like Depreciation down 2.0%
Like-for-like Depreciation down 2.0% (+21.6% as reported) Depreciation walk -2.0% like-for-like EUR million 96.7 Underlying depreciation down 9.7% 38.4 497.9 (11.5) 488.0 (36.8) 449.6 401.2 YTD 2016 Like-for-like YTD 2016 GEO MEO Underlying AMC-9 impairment YTD 2017 (reported) adjustment (1) (like-f
Slide 19: Net Profit of EUR 394.5 million
Net Profit of EUR 394.5 million Net Profit Attributable to SES Shareholders EUR million 824.0 Net profit +20.0%, or EUR 65.7 million, exc. one-off gain related to O3b +62.5 +133.4 (1.4) 394.5 (495.2) 328.8 +33.2 (162.0) YTD 2016 Gain on deemed YTD 2016 exc. Operating profit Net financing Taxation Sh
Slide 20: Balance Sheet and Contract Backlog Remain Strong
Balance Sheet and Contract Backlog Remain Strong Net Debt to EBITDA Fully protected contract backlog Times(1) EUR billion 8.0 8.1 3.30 3.29 7.4 7.5 3.09 2.54 FY '15 Q3 '16 FY '16 Q3 '17 FY '15 Q3 '16 FY '16 Q3 '17 In line with SES’s financial framework Broadly stable at constant FX with recent c
Slide 21: Financial Outlook
Financial Outlook Video(1) ▲ Slight decline, including changes in launch schedule and satellite health Fixed Data(1) ▲ Moderate decline, with marked improvement from a decline of 20% in FY 2016 Mobility(1) ▲ Strong growth Government(1) ▲ Stable to slight growth Other ▲ EUR 5 - 10 million EBITDA marg
Slide 22: Improving CapEx Efficiency by Unlocking GEO-MEO Synergies
Improving CapEx Efficiency by Unlocking GEO-MEO Synergies GEO-MEO Capital Expenditure (growth and replacement) (1) EUR million Total (’17-’21) FY ’16 (24 Feb ‘17) 810 560 550 550 610 3,080 EUR/USD 1.10 to 1.15 (30) (20) (10) (10) (30) (100) (Reduction)/increase (150) (110) (110) (110) 400 (80) 980 1
Slide 23: 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 should
Slide 24: Richard Whiteing, Investor Relations
Richard Whiteing Investor Relations richard.whiteing@ses.com T +352 710 725 261 Connect with us 24