SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — Q1 2014 Earnings Presentation
21 slides from SES SA FDR (Class A)'s earnings presentation, May 9, 2014
Slide 1: Q1 2014 results
Q1 2014 results 9 May 2014 ASTRA 5B lofted into orbit from Kourou, French Guyana, 22 March 2014
Slide 2: Q1 2014 Highlights
Q1 2014 Highlights Strong revenue and EBITDA growth, and sustained margins Strong International performance; strong European services and infrastructure contribution; first sale of satellite capacity to Eutelsat; North America down due to US Government-related non-renewals Sustained and on-pla
Slide 3: Robust Top Line Growth Continues
Robust Top Line Growth Continues REVENUE EBITDA As reported As reported +5.6% +7.4% At constant FX* At constant FX* +8.0% +9.3% EUR 465.6 million EUR 345.0 million Strong Revenue Growth Drives Profitability with EBITDA Margin at 74.1% * “Constant FX” refers to the restatement of comparative figures
Slide 4: Recent Launches Underpin Future Growth
Recent Launches Underpin Future Growth SES-6 ASTRA 2E SES-8 ASTRA 5B March 2014 June 2013 September 2013 December 2013 31.5E 40.5W 28.2E / 28.5E 95E Repl. and growth capacity LatAm growth Europe replacement, Asia-Pacific growth CEE, Russia and CIS Anchor DTH customer MENA growth capacity Anchor DTH
Slide 5: Building The Future
Building The Future 1. Strengthening Video Core Acquiring new video customers in established and emerging markets Working with industry partners on shaping the future ecosystem Reinforcing differentiation of our capacity by integrating role of Platform Services Continuing development/acceler
Slide 6: Major Contracts by Region
Major Contracts by Region Region Revenue at constant FX Major business developments Capacity agreements in 2013 driving growth Europe EUR 254.4 million in 2014 (e.g. Sky D); sale of transponders to ETL; new contracts signed in Q1 2014; +12.8% positive development of HD+ Sequestration-related discont
Slide 7: Future Launches Sustaining Growth
Future Launches Sustaining Growth ASTRA 2G SES-9 SES-10 Q3 2014 H1 2015 H2 2016 28.2E / 28.5E 108.2E 67W Repl. and growth capacity Repl. and growth capacity Repl. and growth capacity Europe, Africa Asia-Pacific LatAm DTH services DTH and mobility DTH connectivity + 10 txps + 53 txps + 27 txps Buildi
Slide 8: Fleet Utilisation
Fleet Utilisation 5.5% increase in commercially available transponders (+79) * 1.6% increase in utilised transponders (+17) * Utilisation rate decreased to 72.5% Decrease in North America (non-renewals) and international regions (incremental capacity) In 36 MHz-equivalent transponders Q1 201
Slide 9: Channel Growth Driving Bandwidth Demand
Channel Growth Driving Bandwidth Demand SES carries a significant proportion of satellite TV channels globally: • 17% of the over 35,000 TV satellite channels • 26% of the over 6,700 satellite HDTV transmissions HD channels on SES are growing fast 7000 +9% 6214 6000 5694 5000 4000 3000 +12% 2000
Slide 10: Growth in SES's Global reach
Growth in SES’s Global reach 143m ➔ +5% 151m 73m ➔ +3% 75m Europe North America 26m ➔ +18% 31m Africa, India, ME 21m ➔ 23m +5% Latin America 12m ➔ 12m* Asia-Pacific SES Reaches 291 million TV Homes Source: SES, European Satellite Monitor YE13, B2B surveys among cable head-ends in * Indovision no lon
Slide 11: New Satellites to Increase Capacity
New Satellites to Increase Capacity Europe +21 International +172 Total +193 * ASTRA 2G launch is planned for Q3 2014 Sustained fleet investment Capacity increase of programme: - Total - International 7 (4 launched) new satellites between year-end 13% 24% 2012 and 2016 over year-end 2012 SES’s Inves
Slide 12: Replacement Capital Expenditure Reducing
Replacement Capital Expenditure Reducing EUR million Estimated, uncommitted potential Growth Investments (maximum) Estimated, uncommitted potential Growth Investments (minimum) Estimated, uncommitted Replacement Satellite CapEx Committed, Non Satellite CapEx – Infrastructure and Services Committed S
Slide 13: Financial Review and Analysis
Financial Review and Analysis 13
Slide 14: Financial Highlights – Q1 2014
Financial Highlights – Q1 2014 EUR million Other key metrics (as reported) Q1 2014 compared As reported At constant FX to prior year period Q1 2014 Q1 2013 Operating 219.4 197.2 Revenue 465.6 (+5.6%) +8.0% Profit (+11.3%) Profit of the 150.2 141.5 Group (+6.1%) EBITDA 345.0 (+7.4%) +9.3% EPS (EUR) 0
Slide 15: Revenue Walk from Q1 2013 to Q1 2014
Revenue Walk from Q1 2013 to Q1 2014 SES Group Revenue FX rate EUR/USD: in EUR millions +5.6% as Actual Q1 2013 1.33 reported Actual Q1 2014 1.37 -3.1% 13.4 465.6 28.8 440.8 431.2 (7.8) (9.6) Actual Q1 2013 Constant FX Actual Q1 2013 Europe North America International Actual Q1 2014 (Constant FX)
Slide 16: EBITDA Walk from Q1 2013 to Q1 2014
EBITDA Walk from Q1 2013 to Q1 2014 SES Group EBITDA FX rate EUR/USD: in EUR millions +7.4% as Actual Q1 2013 1.33 reported Actual Q1 2014 1.37 -3.1% 34.4 345.0 321.2 (5.2) 315.8 (5.4) 72.9% EBITDA margin 73.2% 72.7% 74.1% Actual Q1 2013 Constant FX Actual Q1 2013 Revenue OpEx Actual Q1 2014 (Consta
Slide 17: Infrastructure and Services Segmentation
Infrastructure and Services Segmentation Business Segmentation Q1 2014 (as reported) * in EUR million Infrastructure Services Other / Elim. SES GROUP FX rate EUR/USD: Actual Q1 2013 1.33 Revenues 405.4 106.1 (45.9) 465.6 Actual Q1 2014 1.37 -3.1% EBITDA 337.1 14.6 (6.7) 345.0 Margin % 83.2% 13.8% 74
Slide 18: Additional Financial Information
Additional Financial Information* Depreciation decreased by EUR 1.4 million versus the prior year period mainly due to the weaker US Dollar Amortisation increased by EUR 3.0 million versus Q1 2013 due to higher definite life intangibles Net financing charges increase of EUR 7.2 million relates
Slide 19: Guidance
Guidance Reporting As reported Period * Revenue EBITDA 2014 6% - 7% 6% - 7% 2014-2016 (CAGR) 4.0% - 4.5% 4.0% - 4.5% Guidance on other key financial elements in 2014: • Infrastructure EBITDA margin above 82% • Services activities EBITDA margin of 14% to 18% • Total depreciation (excluding amortisa
Slide 20: Summary
Summary Strong growth in International and European segments, with North America impacted by lower SES GS business Successful differentiated programmes of expansion in new geographic and vertical markets with high growth potential Strengthening video core in terms of shaping future ecosystem a
Slide 21: Disclaimer / “Safe Harbor” Statement
Disclaimer / “Safe Harbor” Statement 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