SES SA FDR (Class A) · EURONEXT:SESG

SES SA FDR (Class A) — SES — FY2015 Earnings Presentation

38 slides from SES SA FDR (Class A)'s earnings presentation, Feb 26, 2016

  1. Slide 1: Full Year 2015 Results

    Full Year 2015 Results Year ended 31 December 2015 26 February 2016 Full Year 2015 Results

  2. Slide 2: Robust performance, setting foundations for sustainable growth

    Robust performance, setting foundations for sustainable growth 2015 Growth as Growth at EUR million reported constant FX(1) Revenue 2,014.5 +5.0% -3.2% EBITDA 1,494.2 +4.6% -3.6% Profit after tax(2) 674.0 +5.0% n/a Dividend proposed per A-share EUR 1.30 +10% n/a Execution of differentiated strategy

  3. Slide 3: Executing on SES's differentiated strategy

    Executing on SES’s differentiated strategy Globalisation – building scale to deliver global solutions Video  Expanding in International  Adding to growth in core markets Verticalisation – focused, Enterprise vision: capability driven strategy To become the  Focused development of foremost satelli

  4. Slide 4: Expanding in fast-growing emerging markets

    Expanding in fast-growing emerging markets Available capacity (International) Technical reach (International) TV Channels (International) 36 MHz equivalent TV households Broadcast of SES satellites 823(1) 76 million 52% of 24% of ~2,900 707 total total(1) 40% of 49% of total total 46 million 18% of

  5. Slide 5: Generating growth in three of SES's market verticals

    Generating growth in three of SES’s market verticals Revenue (EUR million) Growth vs. FY 2014 2015 2014 Reported Constant FX Video (67%) 1,354.9 1,260.8 +7.5% +2.2% Enterprise (15%) 307.6 324.3 -5.1% -19.2%(2) Mobility (3%) 52.9 35.9 +47.4% +24.5% Government (13%) 255.6 215.1 +18.8% +3.3% Other(1) 4

  6. Slide 6: Video (67% of group revenue): Building scale and focus

    Video (67% of group revenue) Building scale and focused development of Global Video Scale Focus  11.3% growth (YOY) in TV channels (industry: +2.3%) • Market share increased (YOY) from 17.2% to 18.4% 7,268 CAGR: SES’s TV channel count +9.4% 40% 5,546 CAGR: 31% +19.1% 24% CAGR: 32% +0.4% 36% 37% CAG

  7. Slide 7: Video: Shaping the future user experience

    Video (67% of group revenue) Shaping the future user experience in Video Shaping the future Key wins in 2015/2016 to date  Capacity agreements in Africa (StarTimes, Canal  Driving the commercial introduction of Ultra HD Holdings and Deutsche Welle) • First to secure commercial UHD channels  Impor

  8. Slide 8: Enterprise: Building scale with major global partnerships

    Enterprise (15% of group revenue) Building scale in Enterprise with major global partnerships Scale Focus  Global coverage and range of spectrum  Global ‘Tier One’ telcos and service providers now represent over 40% of Enterprise revenue • 52 GEO satellites covering the globe • Launching global HT

  9. Slide 9: Enterprise: Shaping the future and key wins

    Enterprise (15% of group revenue) Building scale in Enterprise with major global partnerships Shaping the future Key wins in 2015/2016 to date  Introducing Plus – SES’s new satellite data  Expanded partnership with Airbus Space network and Defence for new Terralink offerings • Delivering higher th

  10. Slide 10: Mobility: Expanding relationships with global providers

    Mobility (3% of group revenue) Expanding relationships with major global Mobility providers Scale Focus  Significant commercial relationships with the  Global HTS platform (36 GHz total capacity) major global providers of inflight connectivity: • Equivalent to ~250 TPEs from a revenue generation p

  11. Slide 11: Mobility: Shaping the future and key wins

    Mobility (3% of group revenue) Expanding relationships with major global Mobility providers Shaping the future Key wins in 2015/2016 to date  Introducing Plus – SES’s new satellite data  Expanded partnership Global Eagle network to support global mobility platforms Entertainment on current fleet a

  12. Slide 12: Developing SES's global Government business

    Government (13% of group revenue) Developing SES’s global Government business Scale Focus  Non-U.S. Government now 23% of  Global HTS platform Government revenue EUR million  GEO/MEO complementarity 250 23%  SES-16/GovSat-1 providing dedicated 200 10% 90% 77% government capacity (X- and military

  13. Slide 13: Government: Shaping the future and key wins

    Government (13% of group revenue) Developing SES’s global Government business Shaping the future Key wins in 2015/2016 to date  Established LuxGovSat partnership with  Introducing Plus – SES’s new satellite data significant pre-commitment to SES-16/ network GovSat-1 • Delivering higher throughput

  14. Slide 14: Unique, complementary and 'game-changing' solution

    Unique, complementary and ‘game-changing’ solution Scale Focus Limited service(s) 62 Latitude  Efficient, scalable constellation  Vertical focus: Standard service(s) 45 Latitude Limited service(s) 62 Latitude Countries with more than 10 million not using the Internet(1)  Up to 190 Gbps of total t

  15. Slide 15: Fastest growing satellite network in history

    Fastest growing satellite network in history Shaping the future Key wins in 2015/2016 to date  Growing need for Enterprise services and  Fastest growing satellite network in terms mobile backhaul across large, unconnected of capacity contracted areas  Largest provider of connectivity in the  Cry

  16. Slide 16: Setting the foundations for sustainable growth

    Setting the foundations for sustainable growth 2016 2017 2018 Global Video SES-9 and SES-10 Next Generation EUR 250 - 300 million SES-12, SES-14, SES-15 potential annualised Enterprise & Mobility revenue(2) Next Generation SES-16/GovSat-1 Government ‘Fibre in the sky’ USD 32 - 36 million O3b Network

  17. Slide 17: SES well placed to capture increasing global demand

    SES well placed to capture increasing global demand Growth in HD TV across TV channels added in Global Video +53%(1) Europe and North ~6,500(1) emerging markets America (2015-2019) (2015-2019) Next Generation Growth in global data Aircraft equipped with Over Enterprise & +32%(2) traffic (2015-2019)

  18. Slide 18: Acquisition of RR Media

    ACQUISITION OF RR MEDIA Christophe De Hauwer, Chief Development Officer Full Year 2015 Results 17

  19. Slide 19: Acquiring RR Media for USD 242 million

    Acquiring RR Media for USD 242 million Combining the complementary strengths of satellite and terrestrial networks  RR Media is a leading provider of global digital media services  On completion, RR Media will merge with SES Platform Services Content Producers/owners Platform operators End users O

  20. Slide 20: Complementing SES's differentiated strategy

    Complementing SES’s differentiated strategy  Creating a world-leading media solutions provider Globalisation Building scale toserve []  Growing SES’s annualised group revenue by ~7% rapidly increasing demand for global solutions  Expanding mix of global and local media customers  Excellence in

  21. Slide 21: Acquisition delivering attractive return on investment

    Acquisition delivering attractive return on investment  SES will pay a consideration of USD 13.291 per share to acquire 100% interest in RR Media • Represents an enterprise value of USD 242 million • Corresponds to multiple of less than 9.5 times 2016 expected EBITDA • Generates an IRR in excess of

  22. Slide 22: Financial Review

    FINANCIAL REVIEW Padraig McCarthy, Chief Financial Officer Full Year 2015 Results 21

  23. Slide 23: Financial highlights

    Financial highlights 2015 2014 Growth as Growth at EUR million EUR million reported constant FX Revenue 2,014.5 1,919.1 +5.0% -3.2% EBITDA 1,494.2 1,428.0 +4.6% -3.6% EBITDA margin 74.2% 74.4% -20 bps -30 bps Profit after tax 674.0 642.4 +5.0% n/a Profit after tax margin 33.5% 33.5% - n/a Profit of

  24. Slide 24: Generating growth in three of SES's market verticals

    Generating growth in three of SES’s market verticals Revenue (EUR million) Growth vs. FY 2014 2015 2014 Reported Constant FX Video (67%) 1,354.9 1,260.8 +7.5% +2.2% Enterprise (15%) 307.6 324.3 -5.1% -19.2%(2) Mobility (3%) 52.9 35.9 +47.4% +24.5% Government (13%) 255.6 215.1 +18.8% +3.3% Other(1) 4

  25. Slide 25: Fleet utilisation increased

    Fleet utilisation increased Available Utilised 36 MHz equivalent(1) transponders transponders % Utilised At 31 December 2014 1,534 1,115 72.7% NSS-7 transfer to inclined orbit (74) (28) ARSAT migration (16) (16) Fleet additions and new business (net) 58 22 At 31 December 2015 1,502 1,093 72.8%  Net

  26. Slide 26: EBITDA up 4.6% (-3.6% at constant FX)

    EBITDA up 4.6% (-3.6% at constant FX) EBITDA walk EUR million +122.8(1) 1,550.8 +10.2 1,494.2 1,428.0 EBITDA (66.8) Margin EBITDA 74.5% Margin EBITDA Margin 74.2% 74.4% 2014 FX 2014 at Change in Change in 2015 actual adjustment constant FX revenue operating actual expenses 1) 8.6% translation uplift

  27. Slide 27: Continuing to deliver strong margins and differentiated services

    Continuing to deliver strong margins and differentiated services Revenue EBITDA margin 2015 Growth as Growth at 2014 at EUR million reported constant FX 2015 constant FX Infrastructure 1,727.3 +5.1% -3.4% 84.0% 84.2% Services 526.3 +15.5% +6.3% 16.6% 16.3% Elimination/Unallocated(1) (239.1) +32.9% +

  28. Slide 28: Other items contributing to net profit of EUR 544.9 million

    Other items contributing to net profit of EUR 544.9 million Depreciation and amortisation walk Net financing costs walk EUR million EUR million 155.0 +61.5 +7.4 599.6 62.8 (14.7) 545.4 +1.6 135.7 53.8 536.8 (18.1) (2.8) 491.6 2014 FX Changes to Changes to 2015 2014 Net foreign Net interest Capitalis

  29. Slide 29: Generating strong cash flows

    Generating strong cash flows Free cash flow before financing activities EUR million 890.0 726.2 738.4 535.7 44% 39% 39% 29% 229.6 13% 2011 2012 2013 2014 2015 Free Cash Flow (FCF) before financing activities FCF as a % of group revenue Full Year 2015 Results 28

  30. Slide 30: Financial framework supporting strong value creation

    Financial framework supporting strong value creation 2015 2014 NOCF/EBITDA ratio 97% 87% +10 pps Net operating cash flow (NOCF) 1,450.6 1,239.5 +17.0% Net Debt/EBITDA ratio 2.54 times 2.77 times -0.2 times Weighted average interest rate(1) 3.78% 3.84% -6 bps Profit after tax margin 33.5% 33.5% Unch.

  31. Slide 31: Maintaining a substantial pipeline of long-term income

    Maintaining a substantial pipeline of long-term income SES’s fully protected contract backlog EUR billion 7.5 7.5 7.3 7.4 7.0 2011 2012 2013 2014 2015  Weighted average remaining contract length unchanged at over eight years Full Year 2015 Results 30

  32. Slide 32: Growing Emerging Market capacity by 21%, total capacity by 12%

    Growing Emerging Market capacity by 21%, total capacity by 12% Adding significant new capacity to serve anchor customers in fast-growing opportunities and markets Incremental transponders (36 MHz equivalent) +8 +180 +8 +16 +68 Plus 36 GHz total HTS capacity (Broadly equivalent to ~250 TPEs, assuming

  33. Slide 33: Re-investing cash flow into important growth capacity

    Re-investing cash flow into important growth capacity SES’s future capital expenditure profile EUR million At 30 Oct 2015 (restated)(1) 570 720 530 475 475 n/a Total 2016-2020: EUR 2.8 billion(1) 54 740 60 120 60 570 512 500 130 475 475 58 781 57 60 631 59 560 365 440 415 454 362 380 288 60 50 60 60

  34. Slide 34: Financial guidance

    Financial guidance FY 2016(1) Revenue EUR 2,010 million to EUR 2,050 million (exc. RR Media) EBITDA margin (group) Between 73.5% and 74.0% (exc. RR Media) Depreciation Between EUR 510 million to EUR 540 million Effective tax rate Between 13% and 18% Share of associates’ result Loss of between EUR 95

  35. Slide 35: Appendix

    Appendix Full Year 2015 Results 34

  36. Slide 36: Revenue by geography

    Revenue by geography FY 2015 Growth as Growth at EUR million reported constant FX ▲ European video growth, partly offset by lower Europe 1,034.5 +1.6% +1.7% outright sales of European transponders ▲ Impact of AMC-15/AMC-16 capacity renewals with North America 389.5 +14.0% -4.3% EchoStar at the end o

  37. Slide 37: Future satellite growth capacity

    Future satellite growth capacity 2016 2017 2018 2019 2020 2021 ~75% SES-9(1) ~30% +53 incremental txps ~75% SES-10 ~30% +27 incremental txps ~75% SES-16/ ~30% GovSat-1(2) +68 incremental txps ~75% SES-15(1) ~30% +16 incremental txps and +10 GHz HTS ~75% SES-12(1) ~30% +8 incremental txps and +14 GHz

  38. Slide 38: 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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