SES SA FDR (Class A) · EURONEXT:SESG

SES SA FDR (Class A) — SES — H1 2015 Earnings Presentation

23 slides from SES SA FDR (Class A)'s earnings presentation, Jul 24, 2015

  1. Slide 1: H1 2015 Results

    H1 2015 RESULTS Half Year ended 30 June 2015 24 July 2015

  2. Slide 2: H1 2015 highlights

    H1 2015 highlights Focusing on four market verticals Video Fixed Data Mobility Government  Delivering on a clear strategy of Globalisation, Verticalisation and Dematuring  Global business generating strong reported revenue and net profit growth  Growing in three of four market verticals, and addr

  3. Slide 3: Delivering future-proof differentiation

    Delivering future-proof differentiation 1 Globalisation  Growing International revenue to ~30% of total  Expanding global reach by 7% to 312 million TV households  Increasing capacity in emerging markets by 21% (end-2017) 2 Verticalisation  HD TV channels up 13.9%; expanded Tier One partnerships

  4. Slide 4: Financial highlights

    Financial highlights H1 2015 Growth vs. H1 2014 Growth vs. H1 2014 EUR million as reported at constant FX(1) Revenue 999.1 +6.4% -2.6% EBITDA 740.0 +6.7% -2.5% Profit after tax(2) 340.0 +13.9% n/a  Diversified, global revenue profile with 45% in USD driving reported growth from translation benefit

  5. Slide 5: Regional revenue developments

    Regional revenue developments 1 GLOBALISATION Europe EUR 512.4 million  Further growth in Services and Infrastructure revenue -0.5% as reported(1)  Final four txps sold to ETL (H1 2014: eight txps sold)  Revenue growth positive adjusting for txps sales -0.3% at constant FX(1) North America EUR 19

  6. Slide 6: Growing in three of our four verticals

    Growing in three of our four verticals 2 VERTICALISATION Video  HD TV channels up 13.9% to 2,069; all TV channels up 7.4% to 6,963  Additional capacity contracts for higher quality DTH (e.g. StarTimes and BBC World News HD)  Commercial UHD agreements secured (pearl.tv, Sky Deutschland and three o

  7. Slide 7: Expanding SES's services offering

    Expanding SES’s services offering 1 GLOBALISATION 2 VERTICALISATION is part of SES Platform Services’ existing suite of services  Supporting customers in emerging markets with cost-efficient solutions  Over 50 decentralised playout centres  100% in-house developed software platform providing flex

  8. Slide 8: Delivering the right solutions for customers

    Delivering the right solutions for customers 1 GLOBALISATION 2 VERTICALISATION Net Promoter Score (NPS)(1) “I think SES is the best operator I currently deal with. Arrows represent performance vs. 2012 This goes across the customer service teams into your technical and operations teams. SES understa

  9. Slide 9: Increasing total capacity by 12%; Int'l +21%

    Increasing total capacity by 12%; Int’l +21% 1 GLOBALISATION 2 VERTICALISATION Seven satellites scheduled to be launched by end-2017 Incremental capacity (36 MHz equivalent) +8 +180 +8 +16 +68 Plus 36 GHz total HTS capacity (Broadly equivalent to ~250 TPEs, assuming 4 MHz of SES-12/-14/-15 HTS capac

  10. Slide 10: Building a global GEO HTS platform

    Building a global GEO HTS platform 1 GLOBALISATION 2 VERTICALISATION SES-12, SES-14 and SES-15 HTS spot beam footprints SES-15 (129° West) SES-14 (47.5/48° West) SES-12 (95° East) Up to 10 GHz HTS Up to 12 GHz HTS Up to 14 GHz HTS Procured in Q1 2015 Procured in Q1 2015 Procured in Q3 2014 9

  11. Slide 11: Accelerating O3b market traction

    Accelerating O3b market traction 2 VERTICALISATION 3 DEMATURING O3b Networks’ unique coverage from Medium Earth Orbit (MEO)(1)  Around 40 committed clients, of which around 25 are now live on the system  Seven of O3b’s first eight customers have already upgraded their bandwidth requirements  O3b’

  12. Slide 12: Engaging with customers upstream

    Engaging with customers upstream 2 VERTICALISATION 3 DEMATURING GEO wide beam GEO wide beam / GEO HTS / O3b(1) MEO HTS Video Fixed Data Mobility Government SES’s Satellite Monitor and Annual European customer SES held its First Technical O3b recently completed a UHD events in both London conference

  13. Slide 13: Financial Review

    FINANCIAL REVIEW Padraig McCarthy, Chief Financial Officer

  14. Slide 14: EBITDA benefiting from USD and improved margin

    EBITDA benefiting from USD and improved margin H1 2015 H1 2014 Growth as Growth at EUR million EUR million reported constant FX Revenue 999.1 938.9 +6.4% -2.6% EBITDA 740.0 693.8 +6.7% -2.5% EBITDA margin 74.1% 73.9% +20 bps +10 bps Profit after tax 340.0 298.6 +13.9% n/a Profit of the group 275.4 2

  15. Slide 15: Revenue up 6.4% (-2.6% at constant FX)

    Revenue up 6.4% (-2.6% at constant FX) Revenue walk EUR million +87.3(1) 1,026.2 (1.4) 999.1 (8.3) -0.3% (constant FX) -4.1% (constant FX) (17.4) 938.9 -0.5% (reported) +16.0% (reported) -5.6% (constant FX) +13.9% (reported) Growth in European Impact of AMC-15/ Growth offset by infrastructure and AM

  16. Slide 16: Fleet utilisation rate 72.5%

    Fleet utilisation rate 72.5% Fleet utilisation (1) 30 June 2015 30 June 2014 Europe utilised 305 289 Europe available 374 362 Europe utilisation % 81.6% 79.8% North America utilised 263 267 North America available 379 379 North America utilised % 69.4% 70.4% International utilised 533 554 Internatio

  17. Slide 17: EBITDA up 6.7% (-2.5% at constant FX)

    EBITDA up 6.7% (-2.5% at constant FX) EBITDA walk EUR million +65.3(1) 759.1 +8.0 740.0 693.8 (27.1) EBITDA EBITDA EBITDA Margin Margin Margin 74.1% 74.0% 73.9% H1 2014 FX H1 2014 at Change in Change in H1 2015 Actual adjustment constant FX revenue operating costs Actual  Lower revenue partly offse

  18. Slide 18: Infrastructure and Services revenue & EBITDA margin

    Infrastructure and Services revenue & EBITDA margin Business segmentation Revenue (EUR million) EBITDA margin (%) H1 2015 Growth vs. Growth at H1 2015 H1 2014 at Actual reported constant FX Actual constant FX Infrastructure 850.3 +4.9% -4.3% 84.4% 83.2% Services 259.1 +20.6% +9.5% 15.3% 14.9% Elimin

  19. Slide 19: Other items contributing to Net Profit

    Other items contributing to Net Profit Depreciation & Amortisation expense walk Net financing costs walk EUR million EUR million 33.8 5.7 290.1 (5.7) 85.2 256.3 4.3 50.8 (35.0) (3.7) H1 2014 FX Changes to Change to H1 2015 H1 2014 Net foreign Net interest Capitalised H1 2015 Actual adjustment deprec

  20. Slide 20: Lower replacement CapEx, accelerating growth

    Lower replacement CapEx, accelerating growth Capital expenditure profile EUR million 900 835 Total 2015-2019: EUR 2.6 billion(1) 54 691 60 650 600 580 65 55 50 495 419 80 450 450 781 57 347 50 300 631 59 525 535 375 400 362 365 288 50 25 50 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 Committed an

  21. Slide 21: Revenue and EBITDA expectations revised

    Revenue and EBITDA expectations revised Revenue EBITDA 2015 (YOY) at constant FX(1) Around minus 3% Around minus 3.5%  Growth from new infrastructure contracts, European services and hosted payloads  Offset by SES-9 launch delay and satellite health degradation reducing available transponders  Wh

  22. Slide 22: Summary

    Summary Focusing on four market verticals Video Fixed Data Mobility Government  Delivering on a clear strategy of Globalisation, Verticalisation and Dematuring  Global business generating strong reported revenue and net profit growth  Growing in three of four market verticals, and addressing mark

  23. 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 shou

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