SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — Q3 2014 Earnings Presentation
20 slides from SES SA FDR (Class A)'s earnings presentation, Oct 31, 2014
Slide 1: Financial Results
Financial Results For the nine months to 30 September 2014 31 October 2014
Slide 2: Key developments – YTD Q3 2014
Key developments – YTD Q3 2014 Revenue growth and enhanced EBITDA margin delivering 6.0% growth in EBITDA Strong Europe and International performance North America revenue continued to be affected by the USG budget sequester Contract backlog of EUR 7.3 billion Three satellites brought into
Slide 3: Continued top line growth – YTD Q3 2014
Continued top line growth – YTD Q3 2014 REVENUE EBITDA As reported As reported +2.1% +4.0% At constant FX* At constant FX* +4.7% +6.0% EUR 1,406.6 million EUR 1,049.7 million Revenue growth and cost management drive profitability with EBITDA margin at 74.6% * “Constant FX” refers to the restatement
Slide 4: Major developments by region – YTD Q3 2014
Major developments by region – YTD Q3 2014 Region Revenue at constant FX Major business developments Compared to prior Capacity agreements in 2013 driving growth Europe EUR 757.8 million in 2014 (e.g. Sky D); sale of transponders to ETL; new contracts signed in the first nine +11.2% months in 2014;
Slide 5: HD and SD channel growth drives demand
HD and SD channel growth drives demand Proportion of satellite TV channels globally broadcast over SES satellites: • 17% of the total 37,608 satellite TV channels • 25% of the 7,313 satellite HDTV transmissions HD channels on SES are consistently growing: • 7% increase in HD channels since Septe
Slide 6: Fleet utilisation
Fleet utilisation 4.4% increase in commercially available transponders (+65) 2.0% increase in utilised transponders (+22) Decrease in North America (non-renewals) and European / international regions (incremental capacity on fleet) In 36 MHz-equivalent transponders September 2013 September 201
Slide 7: Fleet capacity development
Fleet capacity development Incremental capacity: 103 Incremental capacity: 98 Europe +21 +8 Incremental capacity (vs 31.12.2012) Successfully Launched! +27 0 +53 North America - +10 International +180 +21 +21 193 193 201 +12 166 Total +201 +49 103 113 82 49 61 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q4 2014
Slide 8: SES-11 extends EchoStar relationship
SES-11 extends EchoStar relationship SES-11 has been procured to replace capacity on AMC-15 and AMC-16 • To be launched in H2 2016 AMC-15 and AMC-16 contracts renewed up to OSD of SES-11 Hybrid spacecraft serving EchoStar and SES replacement needs at 105W • 24 Ku-band transponders (EchoStar) r
Slide 9: O3b Networks in full commercial service
O3b Networks in full commercial service Commercial service started on 1 September 2014 Several customers already up on the system: • Royal Caribbean Cruises • Telecom Cook Islands • Norfolk Telecom • Timor Telecom • E-Networks On track to activate the majority of the 30 or so committed clients
Slide 10: SES Platform Services
SES Platform Services Supporting our customers’ business: • World’s largest TV and radio broadcasters • License retailers • Media companies and advertisers • Publishing houses • Corporate network services providers Offering clients a comprehensive range of media management, broadcast and interne
Slide 11: HD+: First years
HD+: First 5 years Firmly established commercial FTA platform for HD broadcasting with 1.6 million paying households and strong momentum HD+ Advantages: 6 months for free no subscription, no contract exclusive on satellite Users of an HD+ Receiver get: ► HD+ channels: 19 of the leading private bro
Slide 12: Financial highlights – YTD Q3 2014
Financial highlights – YTD Q3 2014 EUR million YTD Q3 2014 Other key metrics (as reported) As At constant compared to prior reported FX YTD Q3 2014 YTD Q3 2013 year period Profit of 1,406.6 437.9 Revenue the Group 413.4 (+2.1%) +4.7% (+5.9%) 1,049.7 EPS EBITDA (EUR) 1.08 1.03 (+4.0%) +6.0% Net debt
Slide 13: Revenue Walk from YTD Q3 2013 to YTD Q3 2014
Revenue Walk from YTD Q3 2013 to YTD Q3 2014 SES Group Revenue FX rate EUR/USD: in EUR millions +2.1% as Actual YTD Q3 2013 1.3150 reported Actual YTD Q3 2014 1.3621 -3.7% 76.4 26.9 1,406.6 1,378.2 1,343.4 (40.1) (34.8) Actual YTD Q3 Constant FX Actual YTD Q3 Europe North America International Actua
Slide 14: EBITDA Walk from YTD Q3 2013 to YTD Q3 2014
EBITDA Walk from YTD Q3 2013 to YTD Q3 2014 SES Group EBITDA FX rate EUR/USD: in EUR millions +4.0% as Actual YTD Q3 2013 1.3150 reported Actual YTD Q3 2014 1.3621 -3.7% 63.2 1,049.7 1,009.3 990.6 (4.1) (18.7) 73.2% EBITDA margin 73.7% 72.7% 74.6% Actual YTD Q3 2013 Constant FX Actual YTD Q3 2013 Re
Slide 15: Infrastructure and services segmentation
Infrastructure and services segmentation Business Segmentation YTD 2014 (as reported) FX rate EUR/USD: in EUR million Infrastructure Services Other / Elim.* SES GROUP Actual YTD Q3 2013 1.3150 Actual YTD Q3 2014 1.3621 -3.7% Revenues 1,211.0 327.5 (131.9) 1,406.6 EBITDA 1,020.2 53.2 (23.7) 1,049.7 M
Slide 16: Additional financial information
Additional financial information 1) Depreciation remains flat versus the prior year period mainly due to the weaker U.S. Dollar. At constant FX, depreciation increases by EUR 8.6 million reflecting the entry into service of SES-6, SES-8, ASTRA 2E and ASTRA 5B, while ASTRA 2A and 2C are now fully d
Slide 17: Replacement capital expenditure reducing
Replacement capital expenditure reducing As published on 25 July 2014: 480 470 450 450 450 EUR million Estimated, uncommitted Replacement & 835 Total 2014-2018: EUR 2.3 billion Growth Satellite CapEx 54 691 Committed and uncommitted, Non- 60 Satellite CapEx - Infrastructure and 510 480 Services 419
Slide 18: Guidance
Guidance Reporting Revenue EBITDA Period* * 2014 growth 4% 5% 2014-2016 CAGR around 4% around 4% As progress is sustained, particularly in the European and International regions, certain external factors delay the full realisation of growth avenues in 2014: • Continued U.S. government budget restr
Slide 19: Summary
Summary Strong growth in Western Europe and International markets Complemented by developments in key target markets and verticals 2014 Revenue impacted by short-term, external factors Revenue impact largely mitigated at EBITDA and more than offset at Net Income line New satellite programm
Slide 20: 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