Eutelsat Communications Sa · EURONEXT:ETL
Eutelsat Communications Sa — Investor Presentation (June 2007)
32 slides from Eutelsat Communications Sa's investor presentation, June 2007
Slide 1: Eutelsat Communications Investors Presentation June 2007
Eutelsat Communications INVESTORS PRESENTATION JUNE 2007 FÉVRIER 2007 PRÉSENTATION EUTELSAT
Slide 2: Disclaimer
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 or
Slide 3: Agenda
AGENDA 1 STRATEGY AND OPERATIONS 2 BUSINESS HIGHLIGHTS 3 FINANCIAL ANALYSIS 4 APPENDICES JUNE 2007 Page 3
Slide 4: Scope of Fixed Satellite Services (FSS) industry
Scope of Fixed Satellite Services (FSS) industry GEO SATELLITES MAIN APPLICATIONS ► VIDEO ► 36,000km ► Direct-to-Home broadcasting ► Fixed positions ► Each covering (theoretically) 1/3 of the Earth ► Distribution to cable headends and terrestrial transmitters (DTT) ► Professional video networks ► DA
Slide 5: Eutelsat: an infrastructure combining growth and visibility
EUTELSAT : AN INFRASTRUCTURE COMBINING GROWTH AND VISIBILITY ► Finite number of orbital slots over Extended Europe STRONG BARRIERS ► High level of CAPEX and technical requirements TO ENTRY ► Satellite is the most efficient and cost-effective means to broadcast signals ► On-board satellite redundancy
Slide 6: Eutelsat Communications at a glance
EUTELSAT COMMUNICATIONS AT A GLANCE KEY FACTS AND FIGURES REVENUE PROFILE ► World’s n°3 in Fixed Satellite Services sector (As of March 31, 2007) ► 23 satellites at 19 orbital positions concentrated over Extended Europe ► Focus on Video Services : Multi Usage Others 7% 2% ¾ Over 2,500 channels broad
Slide 7: Our strategy: growth on the most profitable segment of FSS
OUR STRATEGY: GROWTH ON THE MOST PROFITABLE SEGMENT OF FSS(1) 1 Increase revenues per transponder Consolidate video neighbourhoods serving EU countries and the Second Continent Develop Value-Added Services for corporate and institutional users and in emerging markets Opportunistic approach towards m
Slide 8: More than 2,500 channels broadcast from Eutelsat's video neighbourhoods
MORE THAN 2,500 CHANNELS BROADCAST FROM EUTELSAT’S VIDEO NEIGHBOURHOODS (March 31, 2007) ► N°1 in Europe on Video Channels Broadcasting HOT BIRD™, No. 1 in EUROPE 1,000 ► N°2 in Worldwide Video 1,099 Broadcasting 750 W2 Central Europe ATLANTIC BIRDTM 3 France EUROBIRDTM 9 EUROBIRDTM 2 EUROBIRDTM 1 5
Slide 9: Channel growth at all Eutelsat video neighbourhoods
CHANNEL GROWTH AT ALL EUTELSAT VIDEO NEIGHBOURHOODS Number of channels At March 31, At June 30, At March 31, Growth at orbital positions 2006 2006 2007 over 1 year Premium video positions 1,100 1,227 1,366 + 266 Other major video 662 723 981 +319 positions Other positions 111 171 188 + 77 TOTAL 1,87
Slide 10: Sustained activity in our two continents
SUSTAINED ACTIVITY IN OUR “TWO CONTINENTS” ► Video leadership consolidated Western Europe(*) ► Data & Value-Added Services focused on enterprises, local communities and new services Emerging ► New channels and TV platforms markets ► Development of Data & Value-Added Services NTV+ Tricolor (Russia) N
Slide 11: Achievements in line with strategy
ACHIEVEMENTS IN LINE WITH STRATEGY Strategic directions Year-to-Date 2006-2007 achievements Strengthening of premium orbital positions in ► Successful launch of HOT BIRDTM 8 Western Europe (*) countries (HOT BIRD™ at 13°E ► “n” new platform in Poland, including HDTV channels and EUROBIRDTM 1 at 28.5
Slide 12: Implementation of a cascade strategy
IMPLEMENTATION OF A CASCADE STRATEGY 19 orbital positions in operation Premium video positions HB 10 Major video positions Other orbital positions HB 9 Ordered satellites HB 8 TC2D HB 7A (inclined EB 4 EB9 orbit) W4 HB 6 TELSTAR Exp 12 AB 1 A3 AB 2 AB 4 AB 3 W 3A W2 W6 EB 2 EB 1 EB 3 SESAT 1 SESAT 2
Slide 13: EUROBIRD 9, the HOT BIRD twin satellite
EUROBIRDTM 9, THE HOT BIRDTM TWIN SATELLITE TM TM - 20 high-power Tpx to increase to 38 with EUROBIRD 9 @ 9° E HOT BIRD @ 13° E relocation of HOT BIRDTM 7A following successful launch of HOT BIRDTM 9 - Proximity of the HOT BIRDTM neighourhood enabling twin reception from 9°E and 13°E - Targeted mark
Slide 14: Nine months 2006-2007 highlights
NINE MONTHS 2006-2007 HIGHLIGHTS ► Consolidation of leading position in Europe notably for video +5.2% ► Ongoing take-up of Value-Added GROWTH 621 M€ Services ► Sustained activity in our “Second Continent”(1) ► Development of S-band payload INVESTMENTS & Active policy INNOVATION pursued ► Procuremen
Slide 15: Launch of new video services and applications
LAUNCH OF NEW VIDEO SERVICES AND APPLICATIONS S-Band Mobile Value-Added Services ► Satellite solutions for business jets flying over ► Creation of a joint venture with SES to Europe in partnership with Viasat operate Europe’s first satellite-based infrastructure (in S-Band) for video and ► Experimen
Slide 16: Full year objectives raised
FULL YEAR OBJECTIVES RAISED ► Above 815 M€ in FY 2006-2007 REVENUES ► Mid-term objectives update on July 26, 2007 ► Objective of 78% for FY 2006-2007 taking into account 11.4 M€ one-off revenues in H1 EBITDA MARGIN ► 325 M€ per annum on average FY 2006-2007 to FY 2008-2009, i.e. 980 M€ over 3 years
Slide 17: Additional information
AGENDA ADDITIONAL INFORMATION JUNE 2007 Page 17
Slide 18: Business highlights
AGENDA 1 STRATEGY AND OPERATIONS 2 BUSINESS HIGHLIGHTS 3 FINANCIAL ANALYSIS 4 APPENDICES JUNE 2007 Page 18
Slide 19: Continuous improvement of key performance metrics
CONTINUOUS IMPROVEMENT OF KEY PERFORMANCE METRICS Revenues(1) in Million € EBITDA(2) in Million € +5.2% EBITDA Margin: 79.4 % EBITDA Margin: 78.7% 621 621 590 415.3 329.6 +6.0% 590 311.0 December 31, 2005 December 31, 2006 YTD March 2006 YTD March 2007 (2) EBITDA is defined as operating income befor
Slide 20: YTD performance: driven by video applications
YTD PERFORMANCE: DRIVEN BY VIDEO APPLICATIONS in M€ March 2006 March 2007 Variation Highlights Video 387.6 438.6 + 51M€ ► Deployment of ATLANTIC BIRD™ 4 Applications ► Growth in “Second Continent” ► Capacity reallocated to Video Data & VAS 129.0 120.8 - 8.2 M€ ► Growth of VAS (+7.8%) ► Capacity real
Slide 21: Continued growth of value-added services
CONTINUED GROWTH OF VALUE-ADDED SERVICES Year-to-date D-STAR deployment: driven by Africa and Europe (March 2007) Europe Europe and and Russia: Russia: 2,818 2,818 (+174) (+174) Middle Middle East, East, Far Far East: East: 1,101 (+69) 1,101 (+69) South South America: America: 65 65 (+15) (+15) Afri
Slide 22: Financial analysis
AGENDA 1 STRATEGY AND OPERATIONS 2 BUSINESS HIGHLIGHTS 3 FINANCIAL ANALYSIS 4 APPENDICES JUNE 2007 Page 22
Slide 23: Key indicators above objectives
KEY INDICATORS ABOVE OBJECTIVES IFRS – In M€ H1 2005-2006 H1 2006-2007 Change % Key highlights ► Includes 11.4M€ one-off Revenue 394.9 415.3 + 5.2 % revenues Operating expenses (83.9) (85.7) + 2.1 % ► Strict cost control EBITDA(1) 311.0 329.6 + 6.0 % EBITDA margin 78.7 % 79.4% +0.7 pt ► 78.8% exclud
Slide 24: Strong improvement of net result
STRONG IMPROVEMENT OF NET RESULT Condensed income H1 2005-2006 H1 2006-2007 Variation % Key highlights statement IFRS – in M€ Revenue 394.9 415.3 + 5.2 % Operating expenses (83.9) (85.7) + 2.1 % ► Strict cost control EBITDA 311.0 329.6 + 6.0 % Depreciation and (146.6) (150.2) ► Includes 22.2 M€ of a
Slide 25: Structurally high operating free cash flow
STRUCTURALLY HIGH OPERATING FREE CASH FLOW Condensed cash flow statement IFRS – in M€ H1 05-06 H1 06-07 Net cash flow from operating activities 228 240 58% of revenue Capital expenditure (73) (138) Operating free cash flow 155 102 25% of revenue Minority buy-outs (61) (8) Net IPO proceeds 839 1 Divi
Slide 26: Debt evolution: cost savings achieved, simplified and hedged
DEBT EVOLUTION: COST SAVINGS ACHIEVED, SIMPLIFIED AND HEDGED 2,242M€ 2,302 M€ Blended margin: Blended margin: Eutelsat Communications: senior debt Euribor +156 bp Euribor +89 bp and revolver for total amount of 1,915 M€ (283) ► 7-year in fine until June 2013 (217) (245) ► Hedged up to 3.85% +2.7% ►
Slide 27: Appendices
AGENDA 1 STRATEGY and OPERATIONS 2 BUSINESS HIGHLIGHTS 3 FINANCIAL ANALYSIS 4 APPENDICES JUNE 2007 Page 27
Slide 28: Eutelsat: continuous organic growth
EUTELSAT: CONTINUOUS ORGANIC GROWTH ► Since 1990, Eutelsat’s revenue has grown by c.700%, only through organic growth ► 2005-2006 revenues: +5.4% at EUR 791.1M (+4.6%, excl. non recurring items) In €M ► Year-to-Date March 2007 (9 months) : +5.2% at EUR 621M 10 satellites 10 newlaunched satellitessin
Slide 29: A growing cable and satellite audience
A GROWING CABLE AND SATELLITE AUDIENCE ► Satellite and cable penetration in extended Europe increased by 13% over 24 months to 170 million homes > more than 50% of TV homes equipped for satellite and cable reception ► Leadership of HOT BIRD™ neighbourhood confirmed: > 47.6 Mio Direct-To-Home antenna
Slide 30: Improved financial result reflects debt restructuring
IMPROVED FINANCIAL RESULT REFLECTS DEBT RESTRUCTURING H1 H2 H1 IFRS – In M€ 2005-2006 2005-2006 2006-2007 Interest expenses and others (84.4) (53.7) (54.8) Hedging instruments 10.0 0.7 (0.2) Foreign exchange gains / losses 0.2 0.3 (0.1) Amortisation of loan set-up fees (4.6) (3.6) (1.5) Sub-Total (7
Slide 31: Evolution of Eutelsat Communications share structure
EVOLUTION OF EUTELSAT COMMUNICATIONS SHARE STRUCTURE As of December 1, 2006 As March 31, 2007 Free float (4) 40.4% Eurazeo 25.5% Free float (4) Abertis 41.89% 31.96% GSCP Nebozzo Eurovision Sarl (1) 2000 (2) 15.4% Holding Sarl 7.1% CB 3 Luxembourg (3) CDC Infrastructure 26.15% (5) 11.6% (1) Nebozzo
Slide 32: Eutelsat Communications Investors Presentation June 2007
Eutelsat Communications INVESTORS PRESENTATION JUNE 2007 FÉVRIER 2007 PRÉSENTATION EUTELSAT
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