SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — FY2011 Earnings Presentation
24 slides from SES SA FDR (Class A)'s earnings presentation, Feb 17, 2012
Slide 1: Financial Results
Financial Results For the year to 31 December 2011 17 February 2012
Slide 2: 2011 Highlights
2011 Highlights c 2011 performance on target, demonstrating resilience of the business c Launch delays and circuit failures held revenue and EBITDA back c Strong growth in Group Profit • Increased by 26.8%, to EUR 617.7 million c Successful launch of four satellites c The bulk of new capacity to ser
Slide 3: 2012 Outlook
2012 c Strong underlying revenue growth of ~9%, excluding SES Group Revenue analogue in EUR millions recurring at constant FX assuming USD at 1.40 c 2012 reported revenue growth expected to be 1,800 42 150 approximately 2% Analogue Revenues • EBITDA growth expected to be approximately 1%, reflecting
Slide 4: Outlook to 2014
Outlook to 2014 SES Group Revenue in EUR millions recurring at constant FX assuming USD at 1.40 c Underlying growth is strong • From emerging markets and European 150 operations c Ex- the analogue impact, revenue CAGR 2012-2014 of approximately 7.5% 1,735 1,585 c As reported, revenue CAGR 2012-14 is
Slide 5: Operational Highlights 2011
Operational Highlights 2011 c Fleet Utilisation remained high through the year • 81.2% utilisation at year end c Four new satellites launched successfully • QuetzSat-1 delivering all new capacity, fully contracted • SES-2 and SES-3 replacement satellites in North American fleet • ASTRA 1N adds 16 tr
Slide 6: Commercial Europe
Commercial Europe c European Direct-To-Home market reach further increased from 135 million homes at end 2010 c Analogue transmissions in Germany continued to reduce • From 35 to 32 transponders during 2011; 29 as from 1 January 2012 c HD+ has kick-started encrypted Free-To-Air HD broadcasting in Ge
Slide 7: 17.5m Satellite Households in Germany
17.5m Satellite Households in Germany c 17.5 million households receive TV via satellite, more than any other distribution platform • Satellite households exceed cable households for the first time • Satellite reach in Germany increased by 900,000 in 2011 c 15.7 million of the total are digital sate
Slide 8: North American Fleet Activities
North American Fleet Activities S Fleet Replacement and Consolidations • SES-1: Replacement satellite at 101°W • SES-2: Replacement satellite at 87°W; CHIRP hosted payload improves economics • Elimination of AMC-5 replacement at 79°W; N. American Fleet Activities movement of N. American Eastern Arc
Slide 9: Other Commercial Highlights
Other Commercial Highlights c New DTH platforms introduced • Georgia, Serbia, East Africa c All available Ku-band capacity for India is contracted • SES-8 is being built to deliver additional capacity c Strategic partnership with Gazprom Space Systems • ASTRA 1F capacity serving Russia at 55E, prior
Slide 10: Investment in O3b Networks
Investment in O3b Networks c Critical Design Review successfully completed c First 8 satellites on schedule for launch in H1 2013 c Accelerated procurement of satellites 9-12 reflects strength of demand • SES participated in the associated incremental funding round c O3b Networks’ development is pro
Slide 11: Capacity to Increase by 19%
Capacity to Increase by 19% SES GROUP 2012 2013 2014 (36 MHz Equiv. Total Transponders) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 ASTRA 2F ASTRA 2E ASTRA 5B ASTRA 2G Europe Fleet (+12) (+12) (+21) (+10) 55 North America Fleet SES-4 SES-5 SES-6 SES-8 (+27) (+64) (+49) (+21) 161 International Fleet 27 64 12 49 33 21
Slide 12: CapEx spending set to reduce
CapEx spending set to reduce 11 Nov 2011 publ.: 880 700 440 250 250 250 Estimated, uncommitted Replacement Satellite Capex EUR million 835 54 Committed, non-Satellite Capex 730 - Infrastructure & Services 50 Committed Satellite Capex providing replacement and 480 incremental capacity 781 30 652 250
Slide 13: Summary
Summary c Technical reach in major European markets continues to grow c Improving capital efficiency in the satellite fleet c Enhanced positioning in emerging markets • Focused investment programme for additional capacity • Streamlined organisation to drive market penetration c Solid underlying grow
Slide 14: Financial Review and Analysis
Financial Review and Analysis 14
Slide 15: Financial Highlights – FY 2011
Financial Highlights – FY 2011 c Revenue of EUR 1,733.1 million (-0.1%) • Recurring revenue grew 2.8% to EUR 1,735.0 million c EBITDA of EUR 1,274.6 million (-1.7%) - Recurring EBITDA grew 3.1% to EUR 1,294.5 - Recurring EBITDA margin of 74.6% - Infrastructure margin of 82.3% (excluding OneSES restr
Slide 16: Revenue walk from Actual 2010 to Actual 2011
Revenue walk from Actual 2010 to Actual 2011 In line with full year guidance of 3% SES Group Revenue FX rate EUR/USD: -0.2% as Actual 2010 1.33 in EUR millions reported Actual 2011 1.40 -5% 1,735.7 46.4 1,735.0 1,733.1 (5.9) 1,688.5 (1.9) 2.8% as reported (41.3) +0.5 pp 10 MEUR adj.*) 3.3% adjusted
Slide 17: EBITDA walk from Actual 2010 to Actual 2011
EBITDA walk from Actual 2010 to Actual 2011 Outperforming revenue growth SES Group EBITDA FX rate EUR/USD: Actual 2010 1.33 in EUR millions Actual 2011 1.40 -5% -1.7% as reported 1,296.5 38.6 1,294.5 1,274.6 (9.8) 3.1% as reported 1,255.9 (19.9) +0.8 pp 10 MEUR adj.*) (30.8) 3.9% adjusted *) adjuste
Slide 18: Strong Infrastructure and Services Margins
Strong Infrastructure and Services Margins Infrastructure WORLD OTHER & in EUR million ASTRA SKIES ELIM*) SES GROUP Revenues 876.8 663.7 (13.4) 1,527.1 c Infrastructure EBITDA margin of EBITDA 730.2 525.9 0.0 1,256.1 Margin % 83.3% 79.2% 82.3% 82.3% (excluding reorganisation cost: 83.0%, mainly impa
Slide 19: Additional Financial Information
Additional Financial Information c Depreciation of EUR 431.7 million was EUR 32.7 million lower than prior year mainly due to • the impact of the relatively weaker U.S. dollar in 2011 • the reduction in depreciable fleet with several satellites (AMC-1, AMC-2, ASTRA 1F, NSS-806) reaching the end of t
Slide 20: Backlog – Revenue & Cash flow visibility
Backlog – Revenue & Cash flow visibility EUR billion 1.4 1.1 1.0 0.9 0.7 0.6 0.5 0.4 0.4 2012 2013 2014 2015 2016 2017 2018 2019 EOL c SES group backlog at 31 December 2011 = EUR 7.0 billion = 4.0 x 2011 recurring revenue c EUR 2.0 billion of renewals and new business signed since end 2010 c Some 80
Slide 21: Shareholder Return - Competitive & Reliable Policy
Shareholder Return - Competitive & Reliable Policy ▲ Dividend per share twice as high as in 2006 (CAGR: 15%) ▲ 2011 Dividend yield of 4.7% ▲ Shareholder return of approximately EUR 3.5 billion over 2006-2011 • Cumulative dividends of circa EUR 1.5 billion • Cumulative share buy-backs and cancellatio
Slide 22: Guidance
Guidance Proforma Outlook Reporting Outlook Excluding Analogue Period Revenue EBITDA Revenue EBITDA 2012 Annual Growth ~ 2.0% ~ 1.0% ~ 9.0% ~ 9.0% 2012 Proforma: ~ 3.0% ~ 2.0% Excluding launch delays and solar array circuit failures 2012-2014 CAGR ~ 4.5% ~ 4.0% ~ 7.5% ~ 7.5% c Strong underlying reve
Slide 23: Other Guidance (general)
Other Guidance (general) c Other key financial guidance (for 2012): • Infrastructure EBITDA margin above 82% • Services activities EBITDA margin to be in a range of 14% to 18% • Reported tax rate in a range of 10% to 15% • Net Debt / EBITDA ratio will be managed below 3.3 times • Depreciation is exp
Slide 24: Disclaimer / Safe Harbor Statement
Disclaimer / “Safe Harbor” Statement c 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 s