SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — Q1 2016 Earnings Presentation
24 slides from SES SA FDR (Class A)'s earnings presentation, Apr 29, 2016
Slide 1: First Quarter 2016 Results
First Quarter 2016 Results Three months ended 31 March 2016 29 April 2016 First Quarter 2016 Results
Slide 2: Q1 2016 Highlights
Q1 2016 Highlights Q1 2016 Q1 2015 Growth as Growth at EUR million EUR million reported constant FX(1) Revenue 481.6 477.8 +0.8% -1.9% EBITDA 356.2 356.1 In line -2.9% EBITDA margin 74.0% 74.5% -50 bps -80 bps Productive start to 2016, continuing to set the foundations for sustainable growth Conti
Slide 3: Growing global revenue by 0.8% to EUR 481.6 million
Growing global revenue by 0.8% to EUR 481.6 million Reported revenue (EUR million) Growth (YOY) Q1 2016 Q1 2015 Reported At constant FX Video (71%) 339.7 323.5 +5.0% +3.2% Enterprise (12%) 59.9 73.1 -18.1% -22.2%(2) Mobility (5%) 22.3 13.9 +60.6% +50.8% Government (12%) 56.8 60.4 -5.9% -9.9%(3) Othe
Slide 4: Video: Continuing to build scale in global video
Video: Continuing to build scale in global video SES’s total TV channel count grew by 8.6% (YOY), HDTV channels up 17.6%(1) TV channels broadcast over SES satellites 7,309 9.2% CAGR 5,141 17.2% CAGR 2,375 1,260 (32.5% (24.5% of total) of total) Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016 High Definition
Slide 5: Video: Expanding SES's global media capabilities
Video: Expanding SES’s global media capabilities Creating a world-leading media services company Backend • Acquiring RR Media, and merging its operations with SES Platform Services Provider • New company will support over 1,500 customers, 1,000 TV channels and 120 VoD platforms Expanding capacit
Slide 6: Enterprise: Matching the optimal technology across Enterprise markets
Enterprise: Matching the optimal technology across Enterprise markets Serving point-to-multi-point Extending terrestrial Connecting the ‘sub-urban applications networks unconnected’ Corporate networks Enterprise broadband Trunking Enterprise broadband Mobility broadband - Private Applicati
Slide 7: Enterprise: Providing a dynamic offering and optimal suite of solutions
Enterprise: Providing a dynamic offering and optimal suite of solutions Repositioning SES’s Enterprise business to best serve future requirements Infrastructure • Developing new products and solutions in the context of changing market dynamics Provider • May be impacted by some further headwinds i
Slide 8: Mobility: Supporting the delivery of superior passenger experiences
Mobility: Supporting the delivery of superior passenger experiences Commercial airline routes SES-12 HTS coverage SES-14 HTS coverage SES-15 HTS coverage Complementing SES’s global wide beam GEO network, along with O3b’s unique MEO HTS First Quarter 2016 Results 7
Slide 9: Mobility: Securing major, long-term commitments for global mobility
Mobility: Securing major, long-term commitments for global mobility (SES-14/SES-15) signed one of the market’s largest capacity agreements Infrastructure (SES-14/SES-15) made their highest bandwidth commitment to date Provider Further significant agreements with on SES’s existing global fleet
Slide 10: Government: Providing end-to-end solutions across a range of programmes
Government: Providing end-to-end solutions across a range of programmes Military communications Government communications Disaster relief E-inclusion Optimally serving the most demanding civilian, defence and security programmes First Quarter 2016 Results 9
Slide 11: Government: Expanding SES's global government business
Government: Expanding SES’s global government business Enhancing critical communications capabilities for Kativik regional government Infrastructure • Contracted 12 transponders, tripling Northern Quebec region’s currently available bandwidth Provider SES Government Solutions sole winner of U.S.
Slide 12: Q1 2016 Financial Results
Q1 2016 FINANCIAL RESULTS Padraig McCarthy, CFO First Quarter 2016 Results 11
Slide 13: Financial Highlights
Financial Highlights Q1 2016 Q1 2015 Growth as Growth at EUR million EUR million reported constant FX Revenue 481.6 477.8 +0.8% -1.9% EBITDA 356.2 356.1 In line -2.9% EBITDA margin 74.0% 74.5% -50 bps -80 bps Operating profit 214.2 215.1 -0.4% -2.9% Profit after tax 144.0 163.2 -11.7% n/a Profit aft
Slide 14: Growing global revenue by 0.8% to EUR 481.6 million
Growing global revenue by 0.8% to EUR 481.6 million Reported revenue (EUR million) Growth (YOY) Q1 2016 Q1 2015 Reported At constant FX Video (71%) 339.7 323.5 +5.0% +3.2% Enterprise (12%) 59.9 73.1 -18.1% -22.2%(2) Mobility (5%) 22.3 13.9 +60.6% +50.8% Government (12%) 56.8 60.4 -5.9% -9.9%(3) Othe
Slide 15: EBITDA in line with prior period (-2.9% at constant FX)
EBITDA in line with prior period (-2.9% at constant FX) EBITDA walk EUR million +10.8(1) 366.9 356.1 356.2 (9.2) (1.5) EBITDA EBITDA Margin EBITDA Margin 74.8% Margin 74.5% 74.0% Q1 2015 FX Q1 2015 at Change in Change in Q1 2016 actual adjustment constant FX revenue operating actual expenses 1) 3.0%
Slide 16: Continuing to deliver strong margins and differentiated services
Continuing to deliver strong margins and differentiated services Revenue EBITDA margin Q1 2016 Growth as Growth at Q1 2015 at EUR million reported constant FX Q1 2016 constant FX Infrastructure 412.2 +1.1% -1.7% 84.2% 84.9% Services 122.9 +1.7% -0.6% 15.0% 16.1% Elimination/Unallocated(1) (53.5) +5.
Slide 17: Other items contributing to net profit of EUR 115.5 million
Other items contributing to net profit of EUR 115.5 million Depreciation and amortisation walk Net financing costs walk EUR million EUR million 141.1 +5.2 +1.1 142.0 +35.8 48.0 14.5 15.6 42.6 (5.4) (0.9) (4.5) 126.6 126.4 12.2 Q1 2015 FX Changes to Changes to Q1 2016 Q1 2015 Net foreign Q1 2015 Net
Slide 18: Growing SES's substantial pipeline of long-term income
Growing SES’s substantial pipeline of long-term income SES’s fully protected contract backlog EUR billion 7.6 7.5 7.4 Achieving a record level of contract backlog 7.0 Good level of renewals secured Strong new contract wins Building the business with upcoming programmes 2011 2013 2015 Q1 2016
Slide 19: Outlook for 2016
Outlook for 2016 FY 2016 revenue expected to be EUR 2,010 - 2,050 million(1) (based on USD rate of 1.10) Q1 2016 EBITDA margin (74.0%) in line with management’s expectations Final contribution from RR Media and O3b Networks depends on timing of completion of acquisition • RR Media FY 2016 reve
Slide 20: Appendix
Appendix First Quarter 2016 Results 19
Slide 21: Quarterly revenue by market vertical
Quarterly revenue by market vertical Reported revenue (EUR million) Q1 2016 Q4 2015 Q3 2015 Q2 2015 Q1 2015 Video 339.7 360.1 328.6 342.5 323.5 Enterprise 59.9 75.1 73.8 72.0 73.1 Mobility 22.3 16.6 20.7 15.3 13.9 Government 56.8 60.7 62.7 71.8 60.4 Other(1) 2.9 9.4 7.7 19.7 6.9 Group total 481.6 52
Slide 22: Growing Emerging Market capacity by 21%, total capacity by 12%
Growing Emerging Market capacity by 21%, total capacity by 12% Adding significant new capacity to serve anchor customers in fast-growing opportunities and markets Incremental transponders (36 MHz equivalent) +8 +180 +8 +16 +68 Plus 36 GHz total HTS capacity (Broadly equivalent to ~250 TPEs, assuming
Slide 23: Re-investing cash flow into important growth capacity
Re-investing cash flow into important growth capacity SES’s future capital expenditure profile EUR million Total 2016-2020: EUR 2.8 billion(1) 54 740 60 120 60 570 512 500 130 475 475 58 781 57 60 631 59 560 365 440 415 454 362 380 288 60 50 60 60 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 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