SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — H1 2019 Earnings Presentation
29 slides from SES SA FDR (Class A)'s earnings presentation, Jul 26, 2019
Slide 1: H1 2019 Results
H1 2019 RESULTS SIX MONTHS ENDED 30 JUNE 2019 26 JULY 2019 (BETZDORF, LUXEMBOURG) Q1 2019 Results |
Slide 2: Agenda
Agenda Steve Collar Business Highlights CEO Ferdinand Kayser Video CEO of SES Video John-Paul Hemingway Networks CEO of SES Networks Andrew Browne Financial Review CFO H1 2019 Results | 2
Slide 3: Business Highlights
BUSINESS HIGHLIGHTS Steve Collar, CEO
Slide 4: Highlights
Highlights H1 financial results in line with our expectations Networks continues to grow while Video is delivering value in a changing market EBITDA performance reflects strong control over costs and discretionary spending Financial outlook unchanged with focus for H2 on delivering revenue expansion
Slide 5: 2019 On Track with Financial Outlook
2019 On Track with Financial Outlook H1 2019 EUR 604.6 million Video (underlying -8.8% YOY) On Track for FY 2019 of EUR 1,225 - 1,255 million(1) EUR 356.2 million Networks (underlying +5.0% YOY) On Track for FY 2019 of EUR 740 - 775 million(1) EUR 961.4 million Group Revenue (underlying -4.2% YO
Slide 6: Supporting Rapid Deployment of U.S. 5G
Supporting Rapid Deployment of U.S. 5G Clears spectrum Accelerates GDP Protects current TV and Addresses rural U.S. needs quickly to enable U.S. growth and 5G radio broadcasts to almost for quality television and 5G leadership innovation 120 million households broadband Progress made with respect
Slide 7: SES Video
SES VIDEO Ferdinand Kayser, CEO of SES Video
Slide 8: H1 2019 In Line With Expectations, Refocusing Business to Drive Value
H1 2019 In Line With Expectations, Refocusing Business to Drive Value SES Video revenue EUR million ▲ Driving value across our core video neighbourhoods 670.9 662.4 604.6 • +3% (YOY) growth in HD and commercial UHD TV channels 603.8 • Implemented combination of distribution and services • Enhancing
Slide 9: Delivered Important Success for Our Customers in H1 2019
Delivered Important Success for Our Customers in H1 2019 FURTHER U.S. CABLE RENEWALS ENABLE GROWTH OF LOCAL MEDIA secured with multiple customers who have extended their Ethiopian Broadcasters to Migrate to SES Satellite Creating usage of 15 transponders on a multi-year basis Dedicated Ethiopian TV
Slide 10: Markets Changing - Delivering Value in Core Neighbourhoods
Markets Changing - Delivering Value in Core Neighbourhoods Video Distribution revenue walk EUR million ▲ Underlying revenue -8.7% (YOY) 505.3 • Reduction in North American wholesale and (43.0) 454.5 ongoing SD switch-off in the cable business (7.8) Underlying -8.7% • Effect of certain long-term rene
Slide 11: Refocusing Our Video Services to Deliver Enhanced Value Proposition
Refocusing Our Video Services to Deliver Enhanced Value Proposition Video Services revenue walk EUR million ▲ Underlying revenue -9.4% (YOY) n/a 165.6 • HD+ stable (15.5) 150.1 • Non-renewal of ‘legacy’ services in MX1 led to lower revenue YOY, not yet offset by Underlying -9.4% increased adoption o
Slide 12: SES Networks
SES NETWORKS John-Paul Hemingway, CEO of SES Networks
Slide 13: Sustained Growth With Focus on Continued Execution in H2 2019
Sustained Growth With Focus on Continued Execution in H2 2019 SES Networks revenue EUR million ▲ Addressing growing demand across multiple segments 356.2 • Government, Aero, Cruise, MNO, Energy 341.2 346.8 330.3 ▲ Executing well on recently launched GEO HTS • Strong sales development on SES-12 and S
Slide 14: Delivered Important Success for Our Customers in H1 2019
Delivered Important Success for Our Customers in H1 2019 CONNECT THE UNCONNECTED EXPAND EXISTING SEA AND Leveraging SES-12’s HTS performance to connect Indonesia POLLUTION MONITORING Delivering additional end-to-end services for Remotely Piloted in partnership with Teleglobal and BAKTI Aircraft Syst
Slide 15: Driving Growth Across Government With Unique Solutions
Driving Growth Across Government With Unique Solutions Government revenue walk EUR million ▲ Underlying revenue +7.9% (YOY) +10.2 (5.7) 141.9 • U.S. Government growth supported by 137.4 GEO-enabled network solutions Underlying +7.9% • Opportunities to further expand MEO missions in second half of 20
Slide 16: Fixed Data Performing Robustly With Pipeline Building
Fixed Data Performing Robustly With Pipeline Building Fixed Data revenue walk EUR million ▲ Underlying revenue -2.2% (YOY) 121.1 (2.6) • Growth in Latin America, supported by new (1.6) 116.9 projects and expansion with MNO/Telco on SES-14, MEO and new Managed Platforms Underlying -2.2% • Energy serv
Slide 17: Continued Market Leadership in Aero and Cruise
Continued Market Leadership in Aero and Cruise Mobility revenue walk EUR million ▲ Underlying revenue +10.9% (YOY) +5.8 +9.0 97.4 • Strong growth in Aero with SES-15 and SES-14 enabling Aero Service Providers to 82.6 support North and Latin American airlines, Underlying +10.9% as well as the expansi
Slide 18: Financial Review
FINANCIAL REVIEW Andrew Browne, CFO
Slide 19: Financial Highlights
Financial Highlights Revenue of EUR 961.4 million with underlying revenue(1) down 4.2% (YOY) • Group revenue -2.0% as reported and -5.1% at constant FX including periodic and other revenue EBITDA of EUR 584.5 million (-5.9% as reported and -8.4% at constant FX compared with H1 2018) • EBITDA mar
Slide 20: Revenue in Line with Expectations
Revenue in Line with Expectations Revenue walk EUR million Underlying revenue down EUR 42.0 million (or 4.2%) at constant FX compared with the prior year Sustained growth in Networks, with Video performing in line with expectations H1 2019 Results | 20
Slide 21: EBITDA Development Reflects Business Transformation
EBITDA Development Reflects Business Transformation EBITDA walk EUR million EBITDA EBITDA EBITDA margin margin margin 63.3% 63.0% 60.8% Operating Expenses flat YOY reflecting strong control over cost and discretionary spending Restructuring charge of EUR 11.4 million booked in H1 2019 related to
Slide 22: Net Profit of EUR 169.2 million
Net Profit of EUR 169.2 million EUR million H1 2019 H1 2018 EBITDA 584.5 621.1 Mainly reflecting new capacity brought into commercial Depreciation, impairment and amortisation expense (368.3) (343.4) service Operating profit 216.2 277.7 H1 2019 operating profit margin of 23.7% excluding - Operating
Slide 23: CapEx Profile Unchanged
CapEx Profile Unchanged GEO-MEO Capital Expenditure (growth and replacement)(1) EUR million 1,200 50 100 1,050 450 390 450 450 321 30 30 140 210 120 350 100 280 240 140 100 2018 2019 2020 2021 2022 2023 Actual CapEx Committed satellite Ground/non-satellite Estimated uncommitted satellite Average C
Slide 24: Leverage Development in Line with Expectations
Leverage Development in Line with Expectations Net debt to EBITDA Times(1) 3.53 3.50 3.41 3.43 3.40 3.29 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Free cash flow before financing was EUR 379.8 million with cash outflows expected to moderate in H2 2019, compared with H1 2019 Net debt to EBI
Slide 25: Financial Outlook Unchanged
Financial Outlook Unchanged FY 2019 FY 2020 Financial outlook assumes EUR/USD FX rate of EUR 1 = USD 1.15, nominal launch schedule and satellite health status Video revenue EUR 1,225 – 1,255 million EUR 1,200 – 1,250 million Networks revenue EUR 740 – 775 million EUR 850 – 900 million Group revenue(
Slide 26: Conclusion
CONCLUSION Steve Collar, CEO
Slide 27: Summary
Summary Half year results in line with our expectations and financial outlook unchanged Strong focus on execution for the second half of 2019: - Delivering step up in revenue in H2 2019, as achieved in 2018 - Maintaining strong focus on costs and discretionary spending - Crystalising C-Band repurpos
Slide 28: 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 29: Richard Whiteing, Investor Relations
Richard Whiteing Investor Relations richard.whiteing@ses.com T +352 710 725 261 M +352 691 898 956 Connect with us 29