SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — 9M 2019 Earnings Presentation
31 slides from SES SA FDR (Class A)'s earnings presentation, Oct 25, 2019
Slide 1: YTD 2019 Results
YTD 2019 RESULTS Nine Months ended 30 September 2019 25 October 2019 (BETZDORF, LUXEMBOURG) 9M 2019 Results |
Slide 2: Agenda
Agenda Steve Collar Business Highlights CEO Ferdinand Kayser Video CEO of SES Video John-Paul Hemingway Networks CEO of SES Networks Andrew Browne Financial Review CFO YTD 2019 Results 2
Slide 3: Business Highlights
BUSINESS HIGHLIGHTS Steve Collar, CEO
Slide 4: Highlights
Highlights ▪ Results in line with our expectations reflecting ongoing focus on execution in our core business ▪ Sequential growth in quarterly revenue and EBITDA Financials ▪ Control of discretionary spending reflected in EBITDA margin of 62.3%(1) ▪ Focus on closing out 2019 with strong Q4 outturn,
Slide 5: On Track to Deliver on 2019 Financial Outlook
On Track to Deliver on 2019 Financial Outlook EUR million Financial Outlook 2019(1) YTD 2019 Group revenue 1,975 - 2,040 1,452 907 Video 1,225 – 1,255 (underlying -8.1% YOY) 544 Networks 740 – 775 (underlying +5.1% YOY) 904 Group EBITDA(2) 1,220 - 1,265 (62.3% margin) ▲ Focus on execution and closin
Slide 6: Unlocking Our Vision of a Connected, Seamless, Cloud-Scale Network
Unlocking Our Vision of a Connected, Seamless, Cloud-Scale Network Critical design phase completed and secured launch of first O3b mPOWER satellites in 2021 Partnering with Microsoft to extend Azure ExpressRoute services globally First satellite operator to implement cloud-based Open Network A
Slide 7: Seamless Multi-Orbit Integration for In-Flight Connectivity and Passenger Experience
Seamless Multi-Orbit Integration Offers a Completely New Dimension for In-Flight Connectivity and Passenger Experience World’s first: Uninterrupted in-flight access to high- throughput broadband applications over O3b MEO GEO an integrated GEO/MEO network Customer benefits: Unprecedented redundan
Slide 8: Entering Important Phase in Support of Rapid Deployment of 5G in the U.S.
Entering Important Phase in Support of Rapid Deployment of 5G in the U.S. Clears spectrum quickly Accelerates GDP growth Protects current TV and Addresses rural U.S. needs to enable U.S. 5G and 5G innovation radio broadcasts to almost for quality television and leadership 120 million households broa
Slide 9: SES Video
SES VIDEO Ferdinand Kayser, CEO of SES Video
Slide 10: Revenue In Line With Expectations, Refocused Business to Drive Value
Revenue In Line With Expectations, Refocused Business to Drive Value SES Video revenue EUR million 993.7 ▲ Delivering value and premium viewer experiences across our 906.8 core video neighbourhoods • HD TV channels growing 3% (YOY) and UHD growing 13% (YOY) ▲ Video business continues to be impacted
Slide 11: Enabling Customers to Achieve Success
Enabling Customers to Achieve Success Connecting People across Borders Premium Sports Content Globally Redefining viewing experience and reaching more than four Bringing live UEFA Champions League and Europe League million subscribers in West Africa matches in HD to viewers across Indonesia Transfor
Slide 12: Focus on Value Creation in Core Neighbourhoods
Focus on Value Creation in Core Neighbourhoods Video Distribution revenue walk EUR million ▲ Underlying revenue 8.2% lower (YOY) 747.5 • Reduction in North American wholesale (60.3) (7.6) 679.6 business and ongoing SD switch-off in the cable business • In Europe, impact of certain long-term Underlyi
Slide 13: Refocusing Our Video Services to Deliver Enhanced Value Proposition
Refocusing Our Video Services to Deliver Enhanced Value Proposition Video Services revenue walk EUR million ▲ Underlying revenue down 7.7% (YOY) 246.2 n/a • HD+ lower (YOY) due to impact of lower (19.0) 227.2 hardware sales with shift towards software- driven approach Underlying -7.7% • Reducing exp
Slide 14: SES Networks
SES NETWORKS John-Paul Hemingway, CEO of SES Networks
Slide 15: Focus on Continued Execution and Driving Sustained Revenue Growth
Focus on Continued Execution and Driving Sustained Revenue Growth SES Networks revenue EUR million ▲ Capturing growing demand across multiple segments 544.2 516.7 • Government, Mobility (Aero, Cruise), Fixed Data (4G, Rural 529.0 Connectivity and Energy) 503.5 ▲ Executing well on recently launched G
Slide 16: Enabling Customers to Achieve Success
Enabling Customers to Achieve Success Connectivity in Air Anytime Empowering the cloud-scale era Delivering fastest broadband speeds available globally to Collaboration with Microsoft Azure to seamlessly connect business aviation customers customers to cloud applications across the globe Extending L
Slide 17: Driving Growth Across Government With Trusted Solutions
Driving Growth Across Government With Trusted Solutions Government revenue walk EUR million +9.7 (5.7) ▲ Underlying revenue grew by 4.8% (YOY) 209.4 213.4 Underlying +4.8% • U.S. Government growth supported by MEO and GEO-enabled network solutions • Additional U.S. Government MEO mission secured in
Slide 18: Fixed Data Performing Robustly With Pipeline Building
Fixed Data Performing Robustly With Pipeline Building Fixed Data revenue walk EUR million 180.7 ▲ Underlying revenue declined 1.4% 181.3 (2.6) +2.0 (YOY) Underlying -1.4% • Growth in Latin America with SES-14 and Managed Platforms, 4G customer expansion and rural inclusion WiFi projects • Continued
Slide 19: Continued Market Leadership in Aero and Cruise
Continued Market Leadership in Aero and Cruise Mobility revenue walk EUR million +5.8 +18.4 150.1 ▲ Underlying revenue up 14.6% (YOY) • Strong growth in Aero with SES-15 and 125.9 SES-14 enabling Aero Service Providers to Underlying +14.6% support North and Latin American airlines, as well as the ex
Slide 20: Financial Review
FINANCIAL REVIEW Andrew Browne, CFO
Slide 21: Financial Highlights
Financial Highlights YTD reported revenue of EUR 1,451.9 million, with underlying revenue(1) down 3.6% (YOY) • Group revenue -1.2% as reported and -3.9% at constant FX including periodic and other revenue EBITDA of EUR 889.6 million (-4.1% as reported and -6.6% at constant FX compared with prior
Slide 22: Revenue in Line with Expectations
Revenue in Line with Expectations Revenue walk EUR million 42.0 Underlying revenue down EUR 53.7 million (or 3.6%) at constant FX compared with the prior year Sustained growth in Networks, with Video performing in line with expectations YTD 2019 Results 22
Slide 23: EBITDA Development Reflects Business Transformation
EBITDA Development Reflects Business Transformation EBITDA walk EUR million 24.5 EBITDA EBITDA EBITDA EBITDA EBITDA margin margin margin margin margin 63.1% 63.1% 63.0% 61.3% 63.0% Lower YOY operating costs reflects strong control over cost and discretionary spending Restructuring charge of EUR
Slide 24: Net Profit of EUR 249.9 million
Net Profit of EUR 249.9 million EUR million (as reported) YTD 2019 YTD 2018 EBITDA 889.6 927.7 Depreciation, impairment and amortisation expense (557.0) (523.4) Slight increase in D&A (at constant FX) reflecting the addition of new assets Operating profit 332.6 404.3 YTD 2019 operating profit margin
Slide 25: CapEx Profile Unchanged
CapEx Profile Unchanged GEO-MEO Capital Expenditure (growth and replacement)(1) EUR million 1,200 50 100 1,050 450 390 450 450 321 30 30 140 210 120 350 100 280 240 140 100 2018 2019 2020 2021 2022 2023 Actual CapEx Committed satellite Ground/non-satellite Estimated uncommitted satellite Average C
Slide 26: Leverage Development in Line with Expectations
Leverage Development in Line with Expectations Net debt to EBITDA Times(1) 3.53 3.50 3.47 3.41 3.43 3.40 3.29 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Net debt to EBITDA ratio of 3.47x at Q3 2019, lower than H1 2019 Leverage Ratio expected to be at or below 3.3x at the end of 2019
Slide 27: Financial Outlook Unchanged
Financial Outlook Unchanged EUR million FY 2019 FY 2020 Financial outlook assumes EUR/USD FX rate of EUR 1 = USD 1.15, nominal launch schedule and satellite health status Video revenue 1,225 – 1,255 1,200 – 1,250 Networks revenue 740 – 775 850 – 900 Group revenue(1) 1,975 – 2,040 2,060 – 2,160 Group
Slide 28: Conclusion
CONCLUSION Steve Collar, CEO
Slide 29: Key Takeaways
Key Takeaways Results in line with our expectations underlined by continued focus on execution Focus on delivering strong Q4 outturn in support of unchanged outlook Important progress made to develop our future cloud-scale network and intelligent connectivity offerings Execution on C-band gaining mo
Slide 30: 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 31: Investor Relations Contacts
Richard Whiteing Anja Siehler Michelle Suc Investor Relations Investor Relations Investor Relations Richard.Whiteing@ses.com Anja.Siehler@ses.com Michelle.Suc@ses.com T +352 710 725 261 T +352 710 725 8279 T +352 710 725 403 M +352 691 898 956 M +352 691 798 069 Connect with us 31