SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — Q1 2018 Earnings Presentation
23 slides from SES SA FDR (Class A)'s earnings presentation, Apr 27, 2018
Slide 1: Q1 2018 Results
Q1 2018 Results Three months ended 31 March 2018 27 April 2018 Betzdorf, Luxembourg Q1 2018 Results |
Slide 2: Highlights
Highlights Solid Q1 2018 results, in line with expectations SES Video delivering content to 351 million TV households globally Strong underlying growth in SES Networks SES Video resilient and highly profitable Strong quarter of execution with three successful launches and SES-15 now in servi
Slide 3: Solid Financial Results; In Line With Company's Expectations
Solid Financial Results; In Line With Company’s Expectations Revenue EUR 477.6 million with underlying revenue stable(1) compared with Q1 2017 • SES Video resilient with underlying revenue -0.9%(1) excluding IFRS 15 (EUR 8.2 million) and satellite health (EUR 1.0 million) • Anticipated growth in S
Slide 4: SES Video: Strong Fundamentals Underpin Resilient, Profitable Neighbourhoods
SES | Video Strong Fundamentals Underpin Resilient, Profitable Neighbourhoods SES Video revenue EUR million 337.2 324.4 351 million TV households now served by SES (2016: 325 million) 324.4 321.5 Underlying -3.6% 7,773 total TV channels; +2% (YOY) (-0.9% excluding impact of IFRS 15 accounting change
Slide 5: SES Video: Prime Neighbourhoods and Differentiated Services Supporting Clients
SES | Video Prime Neighbourhoods and Differentiated Services Supporting Clients Important capacity extension UHD and multi-screen for best at 19.2°E and 28.2°E to serve viewer experience to 100% of viewers in Germany, Austria Canal+ TV households in and the U.K. France Supporting launch of new MX1 t
Slide 6: Video Distribution - Core Neighbourhoods Remain Resilient
SES | Video Video Distribution - Core Neighbourhoods Remain Resilient Video Distribution revenue walk EUR million ▲ Underlying revenue -4.2% (YOY), 258.4 including impact of satellite health (9.6) (1.0) (0.6) 247.2 247.2 • Europe stable with long-term renewals signed at like-for-like pricing Underly
Slide 7: Video Services - MX1 Stability Complementing HD+ Growth
SES | Video Video Services - MX1 Stability Complementing HD+ Growth Video Services revenue walk EUR million ▲ Underlying revenue +8.4% (YOY), +6.6 excluding impact of IFRS 15 0.0 • Increase in HD+ annual fee (start of 78.8 (8.2) 76.7 77.2 Q2 2017) driving growth and supporting Underlying -2.0% expan
Slide 8: SES Networks: Differentiated Services Generating Demand and Underlying Growth
SES | Networks Differentiated Services Generating Demand and Underlying Growth SES Networks revenue EUR million 160.2 153.0 3 launches successfully executed during Q1 2018 153.0 141.0 Underlying +8.5% Establishing SES-15 as a prime satellite for aero in North America Growing government revenue from
Slide 9: Networks: Executing on Strategy, Building Commercial Momentum
SES | Networks Executing on Strategy, Building Commercial Momentum SES-15 enhancing customer Increasing broadband access broadband experience on to businesses and thousands board over 200 aircraft within of locations across Thailand the first operational month Providing essential ‘fibre-like’ Medall
Slide 10: Fixed Data - Expanding Managed Services For Telcos and MNOs
SES | Networks Fixed Data - Expanding Managed Services For Telcos and MNOs Fixed Data revenue walk ▲ Underlying revenue -3.2% (YOY) EUR million excluding impact of satellite health 63.2 (1.8) (1.7) • Lower wholesale capacity revenue, (3.5) 56.2 notably in EMEA Underlying -6.0% ▲ Growing managed serv
Slide 11: Mobility - New Aero Services Driving Strong Underlying Growth
SES | Networks Mobility - New Aero Services Driving Strong Underlying Growth Mobility revenue walk ▲ Comparison with Q1 2017 affected EUR million by transponder sale in periodic +8.7 • Second (of two) up-front contributions from Global Eagle Entertainment 44.0 Underlying +30.4% ▲ Underlying revenue
Slide 12: Government - Growing U.S. and Global Government Revenue Base
SES | Networks Government - Growing U.S. and Global Government Revenue Base Government revenue walk ▲ Underlying revenue +13.0% (YOY) EUR million +6.9 • Significant incremental adoption of MEO by U.S. DoD driving growth (0.5) 59.4 53.0 • Strong growth in Global Government, notably in Europe and Afri
Slide 13: Financial Review
FINANCIAL REVIEW Andrew Browne, CFO 12
Slide 14: Financial Overview (1/2)
Financial Overview (1/2) Revenue of EUR 477.6 million reflecting stable underlying development compared with Q1 2017 • Total revenue down 11.7% as reported and down 4.9% at constant FX including periodic and other revenue • Impact of adopting new IFRS 15 standard in Q1 2018 resulted in a non-cash
Slide 15: Financial Overview (2/2)
Financial Overview (2/2) Net debt to EBITDA of 3.41x (3.27x in Q1 2017) is expected to be below 3.3x at end-2018 • Q1 2018 ratio reflects lower 12-month rolling EBITDA and impact of higher proportion of CapEx and interest payments in Q1 2018 EUR 500 million Eurobond maturing in 2026 successfully
Slide 16: Stable Underlying Revenue Development Compared With Q1 2017
Stable Underlying Revenue Development Compared With Q1 2017 Revenue walk EUR million +10.9 540.6 (38.4) 502.2 (10.9) (24.6) 477.6 Q1 2017 Constant FX Q1 2017 at Growth IFRS 15 and Periodic and Q1 2018 as reported constant FX satellite health other Underlying revenue in line with Q1 2017, including
Slide 17: EBITDA Following Revenue Development
EBITDA Following Revenue Development EBITDA walk EUR million 357.6 (24.3) 333.3 (24.6) +0.7 (5.0) 304.4 EBITDA EBITDA EBITDA margin margin Margin 66.2% 66.4% 63.7% Q1 2017 Constant FX Q1 2017 at Periodic and Operating Restructuring Q1 2018 as reported constant FX other revenue expenses provision O
Slide 18: Net Profit of EUR 98.2 million (2016: EUR 128.4 million)
Net Profit of EUR 98.2 million (2016: EUR 128.4 million) EUR million Q1 2018 Q1 2017 EBITDA 304.4 357.6 EUR 8.9 million higher at constant FX, reflecting new Depreciation and amortisation expense (165.6) (170.9) capacity brought into commercial service Operating profit 138.8 186.7 - Operating profit
Slide 19: Investing in Future Growth; CapEx Remains Unchanged
Investing in Future Growth; CapEx Remains Unchanged GEO-MEO Capital Expenditure (growth and replacement)(1) EUR million (2) 1,130 Estimated uncommitted satellite 180 Ground/non-satellite 100 Committed satellite 550 492 460 430 83 380 80 850 310 90 90 110 100 409 100 100 290 240 170 140 FY '17 FY '18
Slide 20: First Quarter 2018 Leverage Development
First Quarter 2018 Leverage Development Net debt to EBITDA Times(1) 3.27 3.41 3.09 2.77 2.54 2014 2015 2016 2017 Q1 2018 Net debt to EBITDA increase reflects lower 12-month rolling EBITDA and higher proportion of CapEx and Interest payments in Q1 2018; net debt to EBITDA expected to be below 3.3 t
Slide 21: Financial Outlook
Financial Outlook 2017 as reported 2017 2018 2020 Average EUR/USD FX rate 1.1249 1.15 1.15 1.15 SES Video EUR 1,383 million EUR 1,373.7 million EUR 1,300 - 1,320 million Over EUR 1,350 million SES Networks EUR 646 million EUR 632.0 million EUR 660 - 690 million Over EUR 875 million Group EBITDA marg
Slide 22: 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 23: Richard Whiteing, Investor Relations
Richard Whiteing Investor Relations richard.whiteing@ses.com T +352 710 725 261 M +352 691 898 956 Connect with us 22