SES SA FDR (Class A) · EURONEXT:SESG

SES SA FDR (Class A) — SES — FY2016 Earnings Presentation

33 slides from SES SA FDR (Class A)'s earnings presentation, Feb 24, 2017

  1. Slide 1: Full Year 2016 Results

    Full Year 2016 Results Year ended 31 December 2016 London 24 February 2017 Full Year 2016 Results |

  2. Slide 2: Year of Acceleration and Building Differentiated Capabilities

    Year of Acceleration and Building Differentiated Capabilities ENRICHING ENTERTAINMENT LIVES EVERYHERE DIGITAL CONNECTING ANYWHERE CONTINENTS  2.7% growth in reported revenue and 10% growth in contract backlog, reaching EUR 8.1 billion  Strong global business fundamentals delivering solid financial

  3. Slide 3: Acceleration of Strategy Driving 2.7% Reported Revenue Growth

    Acceleration of Strategy Driving 2.7% Reported Revenue Growth Growth (YOY) EUR Constant 2016 million Reported FX(1) Key dynamics ▲ Accelerating transition to HD and UHD Video (68%) 1,398.8 +4.7% +4.6% ▲ Globalising SES’s Video business ▲ O3b as growth accelerator Enterprise (12%) 252.0 -13.1% -13.7%

  4. Slide 4: Video: Growing Across Global Video

    Video (68% of revenue) Growing Across Global Video Revenue up 4.6% at constant FX(1)  Accelerating transition to HD and UHD EUR million • Growing HDTV channels to 2,495 (+7.2% YOY) • HD penetration increased to 33.1% (2015: 31.2%) 63.2 • 2.1 million HD+ paying subscribers (+16% YOY) 56.0 • 21 comme

  5. Slide 5: Video: Expanding SES's Capabilities Across the Value Chain

    Video (68% of revenue) Expanding SES’s Capabilities Across the Value Chain Infrastructure provider Backend Experience provider provider  : World-leading media solutions and experience provider • Distributing >2,750 TV channels; serving >120 VoD platforms; delivering >500 hours of premium sports per

  6. Slide 6: SES's Growth Outlook In Europe Remains Robust

    Video (68% of revenue) SES’s Growth Outlook In Europe Remains Robust  >150 million households in  >750 HDTV channels (+14% YOY); Europe receive video content European HD penetration grew from because of SES satellites 26% to 29%  >2,650 total TV channels  First in commercial UHD, including broad

  7. Slide 7: Enterprise: Improving Business Mix, Capabilities and Growth Outlook

    Enterprise (12% of revenue) Improving Business Mix, Capabilities and Growth Outlook Revenue -13.7% at constant FX(1)  Focusing on global ‘Tier One’ clients with EUR million differentiated end-to-end solutions • Managed service for Facebook in Africa • Enterprise+ Broadband in Asia (using SES-9) • R

  8. Slide 8: Enterprise: Delivering Differentiated Global Network Solutions

    Enterprise (12% of revenue) Delivering Differentiated Global Network Solutions Infrastructure Network platform Service provider provider  : providing a complete solution that brings mobile internet services to Sub-Saharan Africa 99.5% service availability Optimised network platform Tailored data ce

  9. Slide 9: Mobility: Significant Growth in Aero and Maritime

    Mobility (6% of revenue) Significant Growth in Aero and Maritime Revenue +95.3% at constant FX(1)  Establishing a leading position in Aero EUR million • Significant long-term agreements with Panasonic 12.6 Avionics and Gogo for HTS and wide beam (SES-14 and SES-15) 19.2 • Major long-term agreement

  10. Slide 10: Establishing SES as the 'Partner of Choice' in Aero

    Mobility (6% of revenue) Establishing SES as the ‘Partner of Choice’ in Aero Infrastructure Network platform Service provider provider SES-12 SES-14 SES-15 SES’s (wide beam (wide beam (wide beam SES-17 existing and HTS) and HTS) and HTS) (HTS) network     Major, Long-term    commitments with

  11. Slide 11: Government: Expanding Customer Base and Service Offering

    Government (12% of revenue) Expanding Customer Base and Service Offering to Drive Return to Growth Revenue -6.6% at constant FX(1)  Delivering differentiated managed services EUR million for the U.S. government 12.0 • Supporting 7% growth in H2 2016 (vs. H1 2016) 7.9 249.0 247.1 7.5 at same scope 2

  12. Slide 12: Delivering 'Turnkey' Solutions for the U.S. Government

    Government (12% of revenue) Delivering ‘Turnkey’ Solutions for the U.S. Government Infrastructure Network platform Service provider provider TROJAN  Network : SES GS’s largest ever contract award (potential value of up to USD 285 million) • From bandwidth-only to customised managed service for U.S.

  13. Slide 13: Delivering Accelerated Growth Across the Data Verticals

    Delivering Accelerated Growth Across the Data Verticals  Flexible and scalable distributed network DIGITAL • Providing “fibre in the sky” connectivity with low latency ANYWHERE • Complementing SES’s existing data-centric capabilities  2016 revenue grew by over 90% to USD 109 million • Substantial

  14. Slide 14: Delivering Sustainable Long-term Growth

    Delivering Sustainable Long-term Growth 2016 2017 2018 2019 2020 2021 Video SES-9, SES-10, SES-12, SES-14, SES-15 (wide beam) Enterprise SES HTS (SES-12, SES-14, SES-15) Up to EUR 750 million O3b of annual revenue Mobility SES HTS (SES-12, SES-14, SES-15) from GEO-MEO investments(1,2) O3b (Over 35%

  15. Slide 15: Financial Review

    FINANCIAL REVIEW Padraig McCarthy, CFO 15

  16. Slide 16: Financial Highlights

    Financial Highlights Change Same scope and EUR million 2016 2015 Reported Constant FX constant FX(1) Revenue 2,068.8 2,014.5 +2.7% +2.4% -2.7% EBITDA 1,451.5 1,494.2 -2.9% -3.2% -3.5% EBITDA margin 70.2% 74.2% -400 bps -410 bps -60 bps Operating profit(2) 1,315.5 894.6 +47.1% +46.5% -3.4% Profit of

  17. Slide 17: Reported Revenue Up 2.7% (+2.4% at Constant FX)

    Reported Revenue Up 2.7% (+2.4% at Constant FX) Revenue walk EUR million +112.6(3) -2.7% at same scope +5.3(1) (8.8) 2,068.8 +4.9 +46.0 2,014.5 2,019.8 (40.4)(2) 1,979.4 (12.7) (2.5) 1,965.0 (50.1) -0.7% at same scope Exc. ‘Legacy items’ 2015 FX 2015 'Legacy' 2015 Video Enterprise Mobility Governmen

  18. Slide 18: EBITDA Margin 73.7% at Same Scope and 70.2% as Reported

    EBITDA Margin 73.7% at Same Scope and 70.2% as Reported EBITDA walk EUR million +5.9(1) 1,494.2 1,500.1 +6.6 +8.6 (54.8) (4.1) 1,447.8 (4.9) 1,451.5 EBITDA EBITDA EBITDA EBITDA margin margin margin margin 74.2% 74.3% 73.7% 70.2% 2015 FX adjustment 2015 Change Change in Change in 2016 Transaction O3b

  19. Slide 19: Depreciation Reduced 4.5% at Constant FX and Same Scope

    Depreciation Reduced 4.5% at Constant FX and Same Scope Depreciation expense walk EUR million +41.0 +2.5 +4.5 560.5 536.8 (24.3) 515.0 2015 FX adjustment Changes to 2016 RR Media O3b 2016 (reported) depreciable fleet (same scope) (reported)  Benefits of reducing Normalised CapEx through economies o

  20. Slide 20: Same Scope Financing Costs Reduced

    Same Scope Financing Costs Reduced Net financing costs walk EUR million +23.9 +24.5 174.3 +21.6 160.2 (20.4) 135.7 (11.0) 128.8 2015 Net FX gains 2015 (adjusted) Net interest Capitalised 2016 Costs for O3b O3b Interest 2016 (reported) Interest (same scope) debt refinancing (reported)  Financing cos

  21. Slide 21: Other Items Contributing to Net Profit to SES Shareholders

    Other Items Contributing to Net Profit to SES Shareholders EUR million 2016 2015 Operating profit before deemed gain 820.3 894.6 on disposal of equity interest Deemed gain on disposal of equity 495.2 -  Relating to O3b consolidation (1 August 2016) interest Net financing costs (174.3) (135.7) Incom

  22. Slide 22: Growing SES's Substantial Contract Backlog by 10% (YOY)

    Growing SES’s Substantial Contract Backlog by 10% (YOY) SES’s fully protected contract backlog  5% growth (YOY) at same scope EUR billion • Significant contribution from long- term mobility contracts 8.1 0.1  Complemented with strong 0.3 backlog from O3b and RR Media 7.7  Weighted average contrac

  23. Slide 23: Maintaining SES's Strong Balance Sheet Metrics

    Maintaining SES’s Strong Balance Sheet Metrics SES’s Net Debt to EBITDA profile  Executed growth accelerators Times within financial framework  Net Debt to EBITDA ratio 3.30 increased following RR Media 3.05 3.09 and O3b consolidation 2.65  EUR 2.2 billion of equity or 2.54 2.43 equity-like finan

  24. Slide 24: Strong Free Cash Flow Before Financing and Acquisitions

    Strong Free Cash Flow Before Financing and Acquisitions Free cash flow (FCF) before financing activities and acquisitions EUR million 890 738 726 655 536 44% 39% 39% 230 33%(1) 195 29% 11% 13% 2010 2011 2012 2013 2014 2015 2016 Free Cash Flow (FCF) before financing activities FCF as a % of group rev

  25. Slide 25: Re-investing in Important Growth Opportunities and Capabilities

    Re-investing in Important Growth Opportunities and Capabilities SES’s future GEO-MEO capital expenditure profile(1) EUR million  Expanding SES’s global GEO- MEO network and capabilities As at Q3 2016 Results (27 October 2016)  Long-term anchor customers 700 770 550 530 550 NA secured before procur

  26. Slide 26: Financial Outlook

    Financial Outlook ▲ Video/Government: stable to slight growth in 2017, low growth in medium-term ▲ Returning to growth in Enterprise and strong growth in Mobility, from 2017 Well Positioned to Deliver Sustained Revenue Growth(1) ▲ Up to EUR 750 million from GEO-MEO growth investments at ‘steady-stat

  27. Slide 27: Summary

    SUMMARY Karim Michel Sabbagh, President & CEO 27

  28. Slide 28: Delivering Sustained Profitable Growth and Returns

    Delivering Sustained Profitable Growth and Returns  Delivering growth across the business Returning to sustained and  Demonstrating sustainable foundations profitable growth  Enhancing profitability through differentiation  Sustained organic investments across the value chain Building differenti

  29. Slide 29: Appendix

    SES“ APPENDIX

  30. Slide 30: Quarterly Revenue: Same Scope, RR Media and O3b

    Quarterly Revenue: Same Scope, RR Media and O3b EUR million (reported) Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 SES (same scope) 481.6 475.1 487.3 520.9 1,965.0 O3b 18.0 22.1 28.1 30.4 98.6 RR Media 32.7 30.5 29.4 33.5 126.1 Inter-company eliminations (3.6) (6.7) (4.8) (6.2) (21.4) Group total (like

  31. Slide 31: Future satellite capacity

    Future satellite capacity Incremental HTS capacity Launch date Payload type txps(3) (GHz) Launch provider SES-10 Q1 2017 Shaped 27 - SpaceX SES-11 H1 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) H1 2017 Shaped/HTS 16 10 Ariane SES

  32. Slide 32: 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

  33. Slide 33: Richard Whiteing, General Manager, Investor Relations

    Richard Whiteing General Manager, Investor Relations Richard.Whiteing@ses.com Tel +352 710 725 261 Connect with us

SES — FY2016 Earnings Presentation on 6ix