SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — Q1 2017 Earnings Presentation
24 slides from SES SA FDR (Class A)'s earnings presentation, Apr 28, 2017
Slide 1: First Quarter 2017 Results
First Quarter 2017 Results Three months ended 31 March 2017 Betzdorf, Luxembourg 28 April 2017 Q1 2017 Results |
Slide 2: Q1 2017 Highlights
Q1 2017 Highlights FIRST TO LAUNCH ON SPACEX’S FLIGHT- PROVEN ROCKET Credit: SpaceX Reported revenue +12.2% (+1.0% like for like) and 11.5% growth in net profit Results in line with expectations; well placed to deliver sustained growth in all verticals Accelerating SES’s market-centric strateg
Slide 3: Accelerators Driving Return to Revenue Growth
Accelerators Driving Return to Revenue Growth Q1 2017 Change EUR million Reported Like for like(1) ▲ YOY comparison largely impacted by lower periodic/services revenue Video (65%) 353.4 +4.5% -4.2% ▲ Growing in HD and UHD ▲ Expanding globally ▲ Accelerating return to growth Enterprise (13%) 71.7 +19
Slide 4: Video Outlook Remains Robust
Video Outlook Remains Robust Revenue +4.5% as reported YOY comparison largely impacted by lower EUR million periodic and services revenue in Q1 2017 • Remaining balance linked to MPEG-4 expansion to 63% of channels in Q1 2017 (Q1 2016: 57%), in 368.9 line with upgrading viewing experience strategy
Slide 5: Continuing to Build Market Traction and Differentiation
Continuing to Build Market Traction and Differentiation Long term contract renewal and expansion with Beta Film Ltd. Delivering end-to-end services for live sports editing to Israel Premier Football League Multi-year contract extension with Sky Deutschland of business continuity services Mul
Slide 6: Accelerating Return to Growth in Enterprise
Accelerating Return to Growth in Enterprise Revenue +19.7% as reported SES Networks’ client expansion accelerating EUR million return to growth • Palau Telecoms increasing capacity for fifth time in two years (nearly doubling requirement) 71.2 71.7 • Delivering more than one gigabit/second of conn
Slide 7: Sustaining Strong Growth in Mobility
Sustaining Strong Growth in Mobility Revenue +126.4% as reported Growing significantly in aero EUR million • Global Eagle Entertainment acquired payload on AMC-3 to boost capacity for customers • Gogo contracted capacity on 12 transponders plus 50.5 supporting ground infrastructure for U.S./Canada
Slide 8: Returning to Growth in Government
Returning to Growth in Government Revenue +4.5% as reported Growing revenue globally EUR million • Commencing NATO AGS contract 59.4 • Extending SATMED until 2020 58.0 56.8 • Launching additional Government+ products (Rapid Response Vehicle) U.S. Government stabilising • SES Government Solutions
Slide 9: SES Networks on Growth Path
SES Networks on Growth Path SES Networks (Enterprise, Mobility and Government) like for like revenue(1) EUR million 181.6 173.6 160.1 Q1 '16 Q3 '16 Q1 '17 Combining strong Mobility growth with return to growth in Enterprise and Government Increasing flexibility and scalability via globally distr
Slide 10: Delivering Profitable Growth and Returns
Delivering Profitable Growth and Returns 12.2% growth in reported revenue (up 1.0% like for like)(1) Returning to sustained and profitable growth Delivering growth in all three data-centric verticals in medium term Net profit increase of 11.5% 6% growth in HDTV channels and 47% growth in com
Slide 11: Financial Review
FINANCIAL REVIEW Padraig McCarthy, CFO 11
Slide 12: Financial Highlights
Financial Highlights Q1 2017 Q1 2016 Change EUR million EUR million Reported Like for like(1) Revenue 540.6 481.6 +12.2% +1.0% EBITDA 357.6 356.2 +0.4% -1.2% EBITDA margin (as reported) 66.2% 74.0% EBITDA margin (like for like)(1) 66.2% 67.6% Operating profit 186.7 214.2 -12.9% +8.2% Operating profi
Slide 13: Like for Like Revenue Growth of 1.0% (+12.2% as Reported)
Like for Like Revenue Growth of 1.0% (+12.2% as Reported) Revenue walk EUR million +1.0% like for like(1) +5.3 +19.6(2) +1.4 +48.2(1) (0.5) 540.6 535.1 +0.5 (15.5) 481.6 ▲ Lower periodic and services largely accounted for the (like for like) reduction ▲ Balance due to volume movement to expand MPEG-
Slide 14: Like for Like EBITDA 1.2% Lower (+0.4% as Reported)
Like for Like EBITDA 1.2% Lower (+0.4% as Reported) EBITDA walk EUR million +2.3(1) +3.3 +5.5 361.8 (8.3) 356.2 (1.4) 357.6 EBITDA EBITDA EBITDA margin margin margin 74.0% 67.6% 66.2% Q1 '16 Like for like FX adjustment Q1 '16 Change in Change in Change in Q1 '17 (reported) adjustment (like for like)
Slide 15: Like for Like Depreciation 12.7% Lower (+19.9% as Reported)
Like for Like Depreciation 12.7% Lower (+19.9% as Reported) Depreciation walk EUR million -12.7% like for like(1) +45.3(1) +1.9 173.6 (3.5) (18.6) 151.5 126.4 Q1 '16 Like for like FX adjustment Q1 '16 Change (net) to O3b depreciable Q1 '17 (reported) adjustment (like for like) depreciable fleet flee
Slide 16: Net Profit up 11.5% to EUR 128.4 million
Net Profit up 11.5% to EUR 128.4 million Net Financing Costs walk EUR million 42.6 +0.7 (10.6) (3.0) 29.7 29.7 Q1 '16 Change in net foreign Change in net Change in capitalised Q1 '17 (reported) exchange gains interest expense interest (reported) Effective tax rate of 17.7% (Q1 2016: 16.1%) Share
Slide 17: Balance Sheet and Contract Backlog Remain Strong
Balance Sheet and Contract Backlog Remain Strong Net debt to EBITDA ratio Fully protected contract backlog Times(1) EUR billion (as reported) 8.1 7.8 7.5 7.3 7.4 3.09 3.05 2.79 2.77 2.54 FY '13 FY '14 FY '15 FY '16 Q1 '17 FY '13 FY '14 FY '15 FY '16 Q1 '17 Net debt to EBITDA in line with financial
Slide 18: Financial Outlook Re-affirmed
Financial Outlook Re-affirmed Video/Government stable to slight growth in 2017, low growth medium term Well positioned to Returning to growth in Enterprise and strong growth in Mobility from 2017 deliver sustained revenue growth(1) ▲ Up to EUR 750 million from GEO-MEO growth investments at ‘stea
Slide 19: Appendix
APPENDIX 19
Slide 20: Future Satellite Capacity
Future Satellite Capacity Incremental HTS capacity Launch date Payload type txps(3) (GHz) Launch provider Launched March 2017 SES-10 Shaped 27 - SpaceX (OSD by end-May 2017) SES-11 H2 2017 Shaped - - SpaceX SES-12(1) H2 2017 Shaped/HTS 8 14 Ariane SES-14(1) H2 2017 Shaped/HTS 8 12 SpaceX SES-15(1) Q
Slide 21: Future Capital Expenditure Profile
Future Capital Expenditure Profile GEO-MEO Capital Expenditure (growth and replacement capacity)(1) EUR million 810 110 60 610 640 560 550 550 510 64 180 300 340 524 60 320 60 60 190 150 60 40 FY '16 FY '17 FY '18 FY '19 FY '20 FY '21 Committed Non-satellite Estimated uncommitted Expanding global
Slide 22: Operating Profit
Operating Profit Q1 2016 EUR million Q1 2017 Reported Like for like(1) Revenue 540.6 481.6 535.1 Operating expenses (183.0) (125.4) (173.3) EBITDA 357.6 356.2 361.8 Depreciation (151.5) (126.4) (173.6) Amortisation (19.4) (15.6) (15.7) Operating profit 186.7 214.2 172.5 EBITDA margin 66.2% 74.0% 67.
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 should
Slide 24: Richard Whiteing, Investor Relations
Richard Whiteing Investor Relations Richard.Whiteing@ses.com Tel +352 710 725 261 Connect with us