SES SA FDR (Class A) · EURONEXT:SESG

SES SA FDR (Class A) — SES — H1 2016 Earnings Presentation

26 slides from SES SA FDR (Class A)'s earnings presentation, Jul 29, 2016

  1. Slide 1: Half Year 2016 Results

    Half Year 2016 Results Six months ended 30 June 2016 29 July 2016 Half Year 2016 Results

  2. Slide 2: H1 2016 Highlights

    H1 2016 Highlights Expanding through Augmenting through Globalisation Verticalisation Enhancing through Synergising through Shaping the future Acquisition  Strong business foundations excluding non-comparables in H1 2015  Executing on SES’s differentiated strategy to deliver return to top line gro

  3. Slide 3: Robust revenue performance excluding non-comparables in H1 2015

    Robust revenue performance excluding non-comparables in H1 2015 H1 2016 Revenue Growth (YOY) EUR million As reported At constant FX Key dynamics ▲ Accelerating SD to HD transition Video (70%) 665.7 +0.8% +0.3%(2) ▲ Growing commercial Ultra HD ▲ Globalising SES’s Video business ▲ Focusing on ‘Tier On

  4. Slide 4: Video (70% of revenue): EUR 665.7 million

    Video (70% of revenue): EUR 665.7 million Growing in video and scaling up capabilities globally Backend Infrastructure Experience  Accelerating SD to HD transition provider provider provider • Growing HDTV channels to 2,442 (+12.1% YOY)    • HD penetration from 30.4% to 32.7% (YOY) Video revenue

  5. Slide 5: Enterprise (12% of revenue): EUR 117.5 million

    Enterprise (12% of revenue): EUR 117.5 million Reshaping SES’s global offering and solutions Infrastructure Network Service  Focusing on ‘Tier One’ clients with provider platform provider differentiated end-to-end solutions    • Turnkey solution for in Africa Enterprise revenue (pro forma) • Ent

  6. Slide 6: Mobility (5% of revenue): EUR 44.5 million

    Mobility (5% of revenue): EUR 44.5 million Developing market-leading positioning Infrastructure Network Service  Establishing a market-leading position in aero provider platform provider    • One of market’s largest capacity agreements Mobility revenue (pro forma) • highest bandwidth commitment

  7. Slide 7: Government (12% of revenue): EUR 112.9 million

    Government (12% of revenue): EUR 112.9 million Expanding SES’s global government business Infrastructure Network Service  Gaining share in U.S. government provider platform provider • Two U.S. TROJAN follow-on contracts    • Providing critical communications services for U.S. Government revenue

  8. Slide 8: Building the strongest capabilities in the most accretive data verticals

    Building the strongest capabilities in the most accretive data verticals Normalised wholesale capacity revenues per Gbps(1)  Next gen space and ground enabling data-centric Index (Broadband = 1) applications with higher bandwidth, lower latency and flexible service offering Broadband = 1 33  SES b

  9. Slide 9: Enabling clients by providing differentiated data-centric capabilities

    Enabling clients by providing differentiated data-centric capabilities  Optimising Digicel’s network 7x growth in  O3b now providing nearly four Gbps of connectivity capacity since  Complemented with SES capacity on NSS-9 start of 2015  Creating home-equivalent passenger experience 5x growth in

  10. Slide 10: Expanding SES's global capabilities with key growth accelerators

    Expanding SES’s global capabilities with key growth accelerators Fastest growing satellite network  Growing with 43 customers contracted globally  RR Media a leading digital services provider  Over 50% of customers upgraded capacity  Merged RR Media with SES Platform Services  EBITDA positive i

  11. Slide 11: Significantly improving SES's long-term growth profile

    Significantly improving SES’s long-term growth profile 2016 2017 2018 2019 2020 Video SES-9, SES-10, SES-12, SES-14, SES-15 EUR 250 - 300 (wide beam) million of potential annualised revenue by 2021(1) Enterprise (Up to 15% of SES SES HTS (SES-12, SES-14, SES-15 ) FY 2015 revenue) O3b Networks Mobili

  12. Slide 12: Financial Results

    FINANCIAL RESULTS Padraig McCarthy, CFO Half Year 2016 Results 11

  13. Slide 13: Financial Highlights

    Financial Highlights H1 2016 H1 2015 Growth as Growth at EUR million Actual As reported reported constant FX Revenue 956.8 999.1 -4.2% -4.8% Operating expense 257.0 259.0 +0.8% +0.8% EBITDA 699.8 740.0 -5.4% -5.8%(1) EBITDA margin 73.1% 74.1% -100 bps -70 bps(1) Operating profit 417.6 449.9 -7.2% -7

  14. Slide 14: Revenue impacted by non-comparables in H1 2015

    Revenue impacted by non-comparables in H1 2015 Revenue walk EUR million 999.1 +6.1(1) 1,005.2 969.9 +2.3 +14.8 +3.0 956.8 (35.3) (22.8) (10.4) H1 2015 FX H1 2015 at 'Legacy' H1 2015 Video Enterprise Mobility Government Other H1 2016 (actual) adjustment constant FX items and adjusted (+0.3%) (-16.3%)

  15. Slide 15: EBITDA EUR 699.8 million, margin remains robust

    EBITDA EUR 699.8 million, margin (at same scope) remains robust EBITDA walk EUR million 740.0 +6.2(1) 746.2 +4.9 702.7 699.8 (48.4) (2.9) EBITDA EBITDA Margin EBITDA EBITDA Margin 74.2% Margin Margin 74.1% 73.5% 73.1% H1 2015 FX H1 2015 at Change in Change in H1 2016 at Transaction- H1 2016 actual a

  16. Slide 16: Continuing to deliver robust margins and differentiated services

    Continuing to deliver robust margins and differentiated services Revenue (EUR million) EBITDA margin H1 2016 Growth as Growth at H1 2016 H1 2015 at (actual) reported constant FX actual(2) constant FX Infrastructure 809.9 -5.1% -5.4% 83.7% 84.6% Services 262.3 +1.2% +0.9% 16.2% 15.2% Elimination/Unal

  17. Slide 17: Other items contributing to net profit of EUR 227.3 million

    Other items contributing to net profit of EUR 227.3 million Depreciation and amortisation walk Net financing costs walk EUR million EUR million 290.1 +2.6 +0.7 282.2 +36.7 87.5 30.5 (11.2) 31.2 75.6 (4.6) (7.3) 50.8 0.3 0.3 0.3 259.6 251.0 H1 2015 Net foreign H1 2015 Net Capitalised H1 2016 H1 2015

  18. Slide 18: Strong cash generation, supporting strong and flexible balance sheet

    Strong cash generation, supporting strong and flexible balance sheet SES’s Net Debt to EBITDA profile  Net operating cash flow of EUR 566.8 million Times (H1 2015: EUR 784.4 million) • Impacted by timing in working capital and H1 2015 2.76 up-front payments related to hosted payloads 2.69 2.62 2.54

  19. Slide 19: Pro forma Net Debt to EBITDA

    Pro forma Net Debt to EBITDA Reported as at Pro forma Reported as at EUR million 30 June 2016(1) consolidated(2) 30 June 2015 Gross Debt 4,726 5,832 4,582 Net Debt 2,948 4,857 3,972 EBITDA 1,454 1,460 1.476 Net Debt / EBITDA 2.0x 3.3x 2.7x  Execution of RR Media and O3b transactions fully compliant

  20. Slide 20: Re-investing in important growth opportunities while reducing CapEx

    Re-investing in important growth opportunities while reducing CapEx SES’s future capital expenditure profile(1)  Expanding SES’s global network and capabilities EUR million with long-term anchor customer agreements 820 80 • +127 incremental wide beam transponders 680 120 110 • +36 GHz HTS capacity,

  21. Slide 21: Maintaining a substantial pipeline of long-term income

    Maintaining a substantial pipeline of long-term income SES’s fully protected contract backlog  Delivering income visibility with the benefit of EUR billion SES’s capability-driven strategy 7.8(1) 0.5 • Right capability system and approach to market 7.5 7.4 7.3 • Deploying the right capabilities to

  22. Slide 22: Re-iterating SES's outlook for 2016

    Re-iterating SES’s outlook for 2016 Revenue EBITDA margin EUR 2,010 - 2,050 million(1) 73.5% - 74.0%(3) (from 6 July 2016) Around EUR 70 million(2) 14% - 18% (from 1 August 2016) Around EUR 45 million(2) Positive for FY 2016  H1 2016 results in line with management’s expectations  Up to EUR 750 mi

  23. Slide 23: Appendix

    Appendix Half Year 2016 Results 22

  24. Slide 24: Future satellite capacity

    Future satellite capacity Incremental HTS capacity Launch Launch date Payload type txps(3) (GHz) provider SES-10 Q4 2016 Shaped 27 - SpaceX SES-11 Q4 2016 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

  25. Slide 25: RR Media and O3b Networks quarterly revenue

    RR Media and O3b Networks quarterly revenue EUR million (reported) Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 RR Media 26.4 30.1 33.9 35.7 32.7 30.5 O3b 6.8 10.7 15.2 18.2 18.0 22.1 Total 33.2 40.8 49.1 53.9 50.7 52.6 EUR million (constant FX) Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 RR

  26. Slide 26: 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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