Inmarsat — FY2009 Earnings Presentation
29 slides from Inmarsat's earnings presentation, Mar 9, 2010
Slide 1: Q4 & preliminary full year results 2009
Inmarsat plc Q4 & preliminary full year results 2009 9 March 2010 The mobile satellite company TM
Slide 2: Forward-looking statements
Forward-looking statements Certain statements in this presentation constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks, uncertainties and other factors that may cause our actual result
Slide 3: Full year results 2009
Full year results 2009 Andrew Sukawaty Chairman & Chief Executive Officer The mobile satellite company TM
Slide 4: 2009 financial highlights
2009 financial highlights Total revenue $1,038.1m (2008: $996.7m) • Inmarsat Global revenue up 9.5% to $694.8m (2008: $634.7m) EBITDA up 11.9% to $594.2m (2008: $531.2m) • Inmarsat Global EBITDA up 14.8% to $495.5m (2008:$431.6m) Operating profit up 12.5% to $356.8m (2008: $317.2m) Adjusted EPS up 2
Slide 5: Inmarsat Global – MSS revenue
Inmarsat Global – MSS revenue US$m +10.4% 800 $682.8 700 $618.4 Leasing +30% 103.5 600 79.7 Aero +18% 75.8 500 64.4 Land +3% 146.5 400 141.8 300 200 Maritime +7% 357.0 332.5 100 0 FY 2008 FY 2009 5
Slide 6: Stratos – revenue
Stratos – revenue US$m +1.0% 700 $638.0 $644.1 600 105.2 Broadband -13% 91.1 500 Other MSS +12% 125.9 112.2 400 300 Inmarsat +2% 200 420.6 427.1 100 0 FY 2008 FY 2009 6
Slide 7: Inmarsat plc – 5-year EBITDA record
Inmarsat plc – 5-year EBITDA record +11.9% US$m 600 594.2 531.2 500 388.1 400 316.0 331.7 300 200 100 0 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 7
Slide 8: Total dividends
Total dividends 33.36 cents US$ cents 30.33 cents +10.0% 25 20.63 20 18.20 15 12.13 12.73 10 2nd 5 Interim Final Interim Interim 0 FY 2008 FY 2009 8
Slide 9: Dividends – 5-year record
Dividends – 5-year record US$ cents 40 35 33.36 30.33 30 (1) 28.88 25.62 26.66 25 20 15 10 5 0 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 (1) Effective full year dividend as only public for part of 2005 year 9
Slide 10: 2009 operational achievements
2009 operational achievements Global broadband service introduced in all markets Stratos acquisition completed New distribution agreements signed with all partners SkyWave investment and collaboration New service launches, BGAN X-Stream, FleetBroadband 150 S-band spectrum licence awarded Debt refina
Slide 11: Q4 & Full year results 2009
Q4 & Full year results 2009 Rick Medlock Chief Financial Officer The mobile satellite company TM
Slide 12: Inmarsat plc - 2009 full year results
Inmarsat plc - 2009 full year results Financial year US$m 2009 2008 Revenue 1,038.1 996.7 4.2% Operating costs (443.9) (465.5) (4.6%) EBITDA 594.2 531.2 11.9% Depreciation & amortisation (231.6) (214.7) Other (5.8) 0.7 Operating profit 356.8 317.2 12.5% Net interest payable (159.9) (123.4) Profit be
Slide 13: Inmarsat plc - 2009 cash flow
Inmarsat plc - 2009 cash flow Financial year US$m 2009 2008 EBITDA 594.2 531.2 Working capital/non-cash items 51.6 (3.2) Operating cash flow 645.8 528.0 Capital expenditure (145.3) (211.6) Capitalised operating costs (17.3) (23.4) Cash interest (109.6) (62.5) Cash tax (24.6) (3.6) Free cash flow 349
Slide 14: Inmarsat plc – 5-year FCF record
Inmarsat plc – 5-year FCF record US$m +54% 400 349.0 350 300 250 226.9 200 165.2 150 119.8 100 50 36.0 0 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 14
Slide 15: Inmarsat plc – net debt
Inmarsat plc – net debt 1,600 $1,276 $437m of available liquidity Convertible 1,400 Bond 2017 $267 through cash and bank facilities 1,200 New $500m Senior Facility 1,000 signed July 2009 US$m Bonds $737 2013 / 800 2017 New $650m 8-year bond issued November 2009 600 400 $499 Group leverage: Senior De
Slide 16: Inmarsat Group Ltd - Q4 MSS revenue
Inmarsat Group Ltd - Q4 MSS revenue US$m +13% 200 $176.9 180 $157.2 27.4 160 Leasing +29% 21.2 140 Aero +13% 20.6 18.2 120 37.7 100 34.9 Land +8% 80 60 Maritime +10% 40 82.9 91.2 20 0 Q4 2008 Q4 2009 16
Slide 17: Maritime sector
Maritime sector US$m 70 65.5 16% growth in data revenue driven by FleetBroadband 60 56.6 Active terminals up 10% 50 Over 1,400 FleetBroadband 40 terminals added in Q4, over 5,000 26.3 25.7 30 terminals at end of year 20 Encouraging progress and contribution from FB 150 service 10 Total terminal addi
Slide 18: Land mobile sector
Land mobile sector 40 US$m BGAN key to land sector growth 35.7 • Revenue up 41% 35 32.3 • Subscribers up 21% 30 • 1,707 terminals added 25 • ARPU $288 / month 20 BGAN voice revenue growth 15 accelerating, now 50% of all land voice 10 GSPS service launch on track for June 5 2.6 2.0 2010 0 Q4 2008 Q4
Slide 19: Aeronautical & Leasing
Aeronautical & Leasing Aero revenue up 13% US$m 30 27.4 Aero active terminals up 10% 25 21.2 20.6 SwiftBroadband • Activations ahead of Swift 64 20 18.2 • Adding over 100 terminals per quarter 15 • Fast ARPU growth • In-flight passenger services 10 Leasing up 29% 5 New lease business in Q4 from 0 Ae
Slide 20: Stratos – Q4 results
Stratos – Q4 results 180 US$m +3.9% Inmarsat revenue driven by 160 22.2 leasing, Fleetbroadband and Broadband 25.0 -11% BGAN growth 140 Other MSS 34.6 Other MSS revenue mainly due 120 28.8 +20% to equipment sales 100 Broadband business improved 80 gross margin and margin on Inmarsat Segment Earnings
Slide 21: Inmarsat plc – financial summary
Inmarsat plc – financial summary Revenue and EBITDA growth ahead of plan in 2009 Growth in cash from operations up 22% Adjusted EPS up 27% Free cash flow $349m, up 54% 2009 refinancing reduces cost of debt Significant liquidity and operating headroom 21
Slide 22: Strategy update and outlook
Strategy update and outlook Andrew Sukawaty Chairman & Chief Executive Officer The mobile satellite company TM
Slide 23: 2010 priorities
2010 priorities Further broadband service penetration and service migration to capture higher usage Successful launch of handheld GSPS service in June, begin to recapture voice market Build direct sales effectiveness through Stratos and Segovia Explore new opportunities for future growth Develop S-b
Slide 24: Trading update
Trading update Maritime terminal activations and revenue trends continue to indicate limited impact of economic slowdown FleetBroadband now established as a main driver of maritime sector growth – both revenue and terminals Encouraging early data from FleetBroadband 150 VSAT remains key competitive
Slide 25: Impact of global events
Impact of global events Usage in Afghanistan and Haiti has been a factor in early 2010 BGAN usage increases over sustained period Inmarsat committed to charitable support for Télécoms Sans Frontièrs in Haiti and Chile Events accelerate penetration and adoption of Inmarsat services, long-term benefit
Slide 26: IsatPhone Pro
IsatPhone Pro Global service launch on track for June – IsatPhone Pro 11 distributors recruited and sales training underway Strong margin incentive for distributors compared to competitor products Expect handset to retail at $500 to $600 End user market worth at least $350m wholesale revenue Reitera
Slide 27: Aero passenger connectivity
Aero passenger connectivity Commercial deployments continue Afriqiyah Malaysia Emirates 68 aircraft equipped AirAsia Oman Air Ryanair 50 aircraft equipped Ryanair Airblue British Airways 2 aircraft equipped Royal Jordanian Air France Saudi Arabian Other: 14 aircraft equipped BMI
Slide 28: Inmarsat plc – 2010 outlook
Inmarsat plc – 2010 outlook Growth in demand from commercial and government customers is continuing in all markets Key broadband services now firmly established and accepted in all customer markets, drives future growth Global handheld satellite phone on track for June launch, attractive additional
Slide 29: Questions & Answers
Questions & Answers Inmarsat plc Q4 & preliminary full year results 2009 9 March 2010 www.inmarsat.com The mobile satellite company TM