SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — FY2013 Earnings Presentation
25 slides from SES SA FDR (Class A)'s earnings presentation, Feb 21, 2014
Slide 1: SES financial results for the year to 31 December 2013
21 February 2014 SES financial results For the year to 31 December 2013 SES-8 lifts off from Cape Canaveral on a Falcon 9 rocket, 3 December 2013
Slide 2: Prime Developments In 2013
Prime Developments In 2013 Solid revenue and EBITDA growth Contract backlog at an historic high Strong video focus a core growth driver Reinforced position in established and targeted developing markets Extended frequency spectrum at 28.5E for EMEA Three successful satellite launches und
Slide 3: Robust Top Line Growth
Robust Top Line Growth REVENUE EBITDA Excluding analogue, at constant FX Excluding analogue, at constant FX +5.9% +6.2% At constant FX At constant FX +3.4% +2.8% EUR 1,862.5 million* EUR 1,364.7 million* * As reported 3
Slide 4: Improving EBITDA Margins
Improving EBITDA Margins Group Infrastructure Services 73.3% 83.3% 17.1% 2012: 73.1%* 2012: 83.0%* 2012: 14.9% * At constant FX and ex-analogue 4
Slide 5: Contract Backlog Increase – Ex-analogue
Contract Backlog Increase – Ex-analogue *) 7.5 EUR billion 7.4 6.8 6.5 6.4 5.3 2008-2013 CAGR of 7% 2008 2009 2010 2011 2012 2013 *) at constant FX Fully-protected contract backlog has grown to a historic high of EUR 7.5 billion SES group backlog at 31 December 2013 equals 4.0 x 2013 revenue W
Slide 6: Dividend
Dividend 1.07 * proposed 0.97 0.88 0.80 0.73 Total of EUR 1.8 billion paid in dividends 2010-2014 Euro 2010 2011 2012 2013 2014 Dividend per A-Share paid Progressive dividend policy continues to enhance shareholder returns Progressive Dividend Policy 6
Slide 7: Recent Launches Underpin Future Growth
Recent Launches Underpin Future Growth SES-6 ASTRA 2E SES-8 June 2013 September 2013 December 2013 40.5W 28.2 E/28.5 E 95E LatAm growth Europe replacement, Asia-Pacific growth Anchor DTH customer MENA growth capacity Anchor DTH customer + 49 txps + 12 txps + 21 txps New capacity at prime orbital pos
Slide 8: Building The Future
Building The Future Strong video core Acquiring new video customers in established and emerging markets (CEE, Latin America, Asia, Africa) Developing video solutions for the new IP environment (IP-LNB, SAT>IP) Mobility solutions Footprints designed to support aero/maritime mobile connectivity
Slide 9: Major Contracts In The Period
Major Contracts In The Period Region Revenue at constant FX Major new and renewal contracts and (Europe only) ex- analogue Orange Romania, MagtiSat Europe EUR 936.4 million Telekom Srbija, Arqiva Sky Deutschland, RTL +6.3% RAI, M7, Towercom Gogo, Panasonic, Hughes/Row44 North America EUR 398.0 milli
Slide 10: Future Launches Sustaining Growth
Future Launches Sustaining Growth ASTRA 5B ASTRA 2G SES-9 SES-10 Q1 2014 Q2 2014 H1 2015 H2 2016 31.5 E 28.2 E / 28.5 E 108.2 E 67 W Repl. and growth capacity Repl. and growth capacity Repl. and growth capacity Repl. and growth capacity CEE, Russia and CIS Europe, Africa Asia-Pacific LatAm EGNOS -2
Slide 11: Fleet Utilisation
Fleet Utilisation 3.6% increase in commercially available transponders (+51) 3.0% increase in utilised transponders (+32)* Utilisation rate remained stable at 74.0% Increase mainly in International region In 36 MHz-equivalent transponders YE 2012 YE 2013 Europe Utilised 279 278 Europe Availa
Slide 12: Channel Growth Driving Bandwidth Demand
Channel Growth Driving Bandwidth Demand SES carries a significant, growing proportion of satellite TV channels globally: • 18% of the total 35,000 satellite TV channels • 27% of the 6,500 satellite HDTV transmissions HD channels on SES are growing fast: • 21% increase of HD channels in 2013 7000
Slide 13: New Satellites to Increase Capacity
New Satellites to Increase Capacity Sustained fleet investment programme: Successfully launched 7 (3 launched) SES-9 SES-10 new satellites between year-end 2012 and 2016 +27 ASTRA 2G ASTRA 5B +53 SES-8 +10 Capacity increase: ASTRA 2E +21 Europe +21 +21 SES-6 +12 International +172 13% Total +193 +49
Slide 14: Capital Expenditure is Reducing
Capital Expenditure is Reducing As published on 8 November 2013: EUR million 835 691 510 530 450 450 450 450 Estimated, uncommitted potential Growth Investments (maximum) Estimated, uncommitted potential Growth Investments (minimum) Estimated, uncommitted Replacement Satellite CapEx Committed, Non S
Slide 15: Financial Review and Analysis
Financial Review and Analysis 15
Slide 16: Financial Highlights – FY 2013 (1/2)
Financial Highlights – FY 2013 (1/2) EUR million FY 2013 compared to Excluding analogue and As reported At constant FX prior year period at constant FX Revenue 1,862.5 (+1.9%) +3.4% +5.9% EBITDA 1,364.7 (+1.3%) +2.8% +6.2% EBITDA margin 73.3% - prior year 73.7% 73.7% 73.1% Infrastructure margin 83.3
Slide 17: Financial Highlights – FY 2013 (2/2)
Financial Highlights – FY 2013 (2/2) EUR million Operating Profit Profit of the Group Free Cash Flow 851.2 (+7.7%) 566.5 (-12.7%) 726.2 (+36%) +8.9% at constant FX +4.7%, if excluding Strong increase versus prior (2012 included AMC-16 tax provision release in 2012 driven by lower investing impairmen
Slide 18: Revenue Walk from FY 2012 to FY 2013
Revenue Walk from FY 2012 to FY 2013 FX rate EUR/USD: Actual FY 2012 1.2910 SES Group Revenue in EUR million Actual FY 2013 1.3259 -2.7% +1.9% as reported 103.5 1,862.5 1,828.0 1,801.6 (26.4) 1,759.0 (42.6) Actual FY 2012 Constant FX Actual FY 2012 Analogue Impact Actual FY 2012 Growth Actual FY 201
Slide 19: EBITDA Walk from FY 2012 to FY 2013
EBITDA Walk from FY 2012 to FY 2013 FX rate EUR/USD: SES Group EBITDA Actual FY 2012 1.2910 in EUR million Actual FY 2013 1.3259 -2.7% +1.3% as reported 79.4 1,364.7 1,346.6 1,327.9 (18.7) 1,285.3 (42.6) 73.7% EBITDA margin 73.7% 73.1% 73.3% Actual FY 2012 Constant FX Actual FY 2012 Analogue Impact
Slide 20: Infrastructure and Services Segmentation
Infrastructure and Services Segmentation Business Segmentation FY 2013 (as reported) *) in EUR million Infrastructure Services Other / Elim. SES GROUP Revenues 1,591.0 432.5 (161.0) 1,862.5 EBITDA 1,325.2 73.8 (34.3) 1,364.7 Margin % 83.3% 17.1% 73.3% Business Segmentation FY 2012 (at constant FX) *
Slide 21: Additional Financial Information
Additional Financial Information Depreciation Finance charges EUR million 516 170 16 174 (10) 7 467 (37) (9) (12) 2012 FX impact AMC-16 write- Reclassification Changes of the 2013 off to amortisation depreciable 2012 Net Interest Capitalised 2013 fleet Expense Interest Net financing charges increa
Slide 22: Strong Free Cash Flow Generation
Strong Free Cash Flow Generation EUR million Free cash flow before financing activities significantly increased since 2011 delivering a CAGR of approximately 78% Free cash flow as a per cent of sales increases from 13% in 2011 to 39% in 2013 22
Slide 23: 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 24: Summary
Summary Solid position in established core markets Successful programmes of expansion in new markets, with high growth potential Consistently demonstrating leading innovations delivering CapEx efficiencies Tight cost management enhancing margins Substantial contract backlog EBITDA growth
Slide 25: 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