SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — Q1 2012 Earnings Presentation
26 slides from SES SA FDR (Class A)'s earnings presentation, May 11, 2012
Slide 1: Financial Results
Financial Results For the year to 31 March 2012 11 May 2012
Slide 2: Business Review and Q1 2012 Highlights
Business Review and Q1 2012 Highlights c Revenue rose 5.1% to EUR 450.2 million (3.5% at constant FX) c EBITDA grew 4.9% to EUR 337.3 million (3.4% at constant FX) c Profit of the Group of EUR 151.2 million c During the quarter, SES successfully launched the SES-4 satellite • 50th satellite in the S
Slide 3: Europe
Europe c Satellite has now become the leading TV infrastructure in Europe, ahead of terrestrial and cable reception, with SES reaching over 142 million homes at year end 2011 • HDTV is a strong driver of this positive development c In Germany, the HD+ platform served over 2.6 million households at t
Slide 4: German Analogue Switch-Off
German Analogue Switch-Off c In Germany, satellite analogue transmissions ended on 30 April c 32 transponders were delivering analogue broadcasts at year end 2011 • Nine of which had been contracted as of mid-February, 7 with start dates in 2012 c A total 13 transponders have now been contracted for
Slide 5: German Analogue Impact in 2012
German Analogue Impact in 2012 c 2012 results will include the exceptional impact of the SES Group Revenue in EUR millions at constant FX @ USD 1.40 analogue TV switch-off in Germany 1,800 42 150 • Target date is 30 April Analogue Revenues c Noticeably affecting reported revenue growth in 2012 1,300
Slide 6: Outlook to 2014
Outlook to 2014 SES Group Revenue in EUR millions at constant FX c Underlying growth is strong @ 1.40 USD • From emerging markets and European 150 operations c Ex- the analogue impact, revenue CAGR 2012-2014 of approximately 7.5% 1,735 1,585 c As reported, revenue CAGR 2012-14 is 1,585 expected to b
Slide 7: North America
North America c Work continued to optimise the disposition of North American fleet capacity and enhance efficiency • AMC-3 was relocated to serve Latin American customers at 67°W • AMC-6 switched a further 3 transponders to serve Latin American markets c ITC Global secured coverage of its oil & gas
Slide 8: International
International c A major capacity deal was signed with ICCES for coverage of Africa and the Middle East • Extending VSAT services to new markets across the region c In Latin America, the 67°W orbital position was reinforced as the AMC-3 satellite was relocated from 87°W to join AMC-4 c Media Networks
Slide 9: Capacity to Increase by 19%
Capacity to Increase by 19% SES GROUP 2012 2013 2014 (36 MHz Equiv. Total Transponders) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 New Capacity ASTRA 2F ASTRA 2E ASTRA 5B ASTRA 2G Europe Fleet (+12) (+12) (+21) (+10) 55 Replacement & New Capacity North America Fleet * Entry into commercial service SES-4 SES-5 SES-6
Slide 10: CapEx spending set to reduce
CapEx spending set to reduce Estimated, uncommitted Replacement Satellite Capex EUR million 835 54 Committed, non-Satellite Capex 730 - Infrastructure & Services 50 Committed Satellite Capex providing replacement and 480 incremental capacity 781 30 652 250 250 250 250 370 10 80 Total 2011-2017: 3.0
Slide 11: Financial Review and Analysis
Financial Review and Analysis 11
Slide 12: Financial Highlights – Q1 2012
Financial Highlights – Q1 2012 c Revenue of EUR 450.2 million (+5.1%) • Revenue at constant FX grew by 3.5% c EBITDA of EUR 337.3 million (+4.9%) • EBITDA at constant FX grew by 3.4% • EBITDA margin of 74.9% c Profit of the Group of EUR 151.2 million (+1.2%) c Net debt / EBITDA ratio of 3.01 times c
Slide 13: Revenue walk from Q1 2011 to Q1 2012
Revenue walk from Q1 2011 to Q1 2012 FX rate EUR/USD: SES Group Revenue Actual Q1 2011 1.36 in EUR millions +5.1% as Actual Q1 2012 1.32 +3% reported 15.3 450.2 6.5 434.9 428.4 Actual Q1 2011 Constant FX Actual Q1 2011 Growth Actual Q1 2012 (Constant FX) c Reported Q1 2012 revenue increases by 5.1%,
Slide 14: EBITDA walk from Q1 2011 to Q1 2012
EBITDA walk from Q1 2011 to Q1 2012 FX rate EUR/USD: SES Group EBITDA Actual Q1 2011 1.36 in EUR millions +4.9% as Actual Q1 2012 1.32 +3% reported 11.0 337.3 4.8 326.3 321.5 75.0% EBITDA margin 75.0% 74.9% Actual Q1 2011 Constant FX Actual Q1 2011 Growth Actual Q1 2012 (Constant FX) c Reported Q1 2
Slide 15: Infrastructure and Services segmentation
Infrastructure and Services segmentation Business Segmentation Q1 2012 *) in EUR million Infrastructure Services Other / Elim. SES GROUP Revenues 395.8 91.6 (37.2) 450.2 EBITDA 331.2 13.7 (7.6) 337.3 Margin % 83.7% 15.0% 74.9% c The infrastructure margin of 83.7% is well above guidance (> 82%) c 15.
Slide 16: Additional Financial Information
Additional Financial Information c Depreciation of EUR 118.1 million was EUR 11.6 million higher than Q1 2011 due to: • changes in the depreciable fleet including the start of operations on ASTRA 1N, QuetzSat-1, SES-3, SES-2 and the YahLive payload on YahSat-1A • a value adjustment of EUR 3 million
Slide 17: Guidance
Guidance Proforma Outlook Reporting Outlook Excluding Analogue Period Revenue EBITDA Revenue EBITDA 2012 Annual Growth ~ 2.0% ~ 1.0% ~ 9.0% ~ 9.0% 2012 Proforma: ~ 3.0% ~ 2.0% Excluding launch delays and solar array circuit failures 2012-2014 CAGR ~ 4.5% ~ 4.0% ~ 7.5% ~ 7.5% c Strong underlying reve
Slide 18: Guidance (continued)
Guidance (continued) c Other key financial guidance (for 2012): • Infrastructure EBITDA margin above 82% • Services activities EBITDA margin to be in a range of 14% to 18% • Reported tax rate in a range of 10% to 15% • Net Debt / EBITDA ratio will be managed below 3.3 times • Depreciation is expecte
Slide 19: Appendix: New Reporting Outline
Appendix New Reporting Outline Reconciliation to Legacy Structure Guidance at Constant FX 19
Slide 20: Capacity Described by Regional Coverage
Reconciliation to Legacy Structure Capacity Described by Regional Coverage c In 2011, SES executed a reorganisation, streamlining several functions and reinforcing the commercial teams. c A consequence of the reorganisation is that capacity is now described according to regional satellite coverage a
Slide 21: The Main Differences
Reconciliation to Legacy Structure The Main Differences c EUROPE coverage region largely comprises the legacy ASTRA segment • Transponder (txp) capacity now moved to International: - YahLive payload on YahSat-1A (23 txp) - 23.5E Middle East beam (10 txp) - 5.0E African beam (6 txp) c NORTH AMERICA c
Slide 22: Reconciliation of Transponder Count
Reconciliation to Legacy Structure Reconciliation of Transponder Count Transponder count at quarter end (36 MHz-equivalent) Q1 '11 Q2 '11 Q3 '11 Q4 '11 Comments Europe: I. Utilised Capacity Legacy ASTRA Reported 291 295 297 319 Transfers to International (15) (15) (16) (20) 23.5°E Middle East Beam,
Slide 23: Restated Transponder Utilisation
Reconciliation to Legacy Structure Restated Transponder Utilisation Transponder Utilisation by Regional Satellite Coverage Transponder count at quarter end (36 MHz-equivalent) Q1 '11 Q2 '11 Q3 '11 Q4 '11 Europe: Utilised 276 280 282 300 Available 301 301 301 333 Europe % 91.7% 93.0% 93.7% 90.1% N. A
Slide 24: Reconciliation of Regional Revenues
Reconciliation to Legacy Structure Reconciliation of Regional Revenues Quarterly Revenues by Regional Satellite Coverage EUR million Q1 '11 Q2 '11 Q3 '11 Q4 '11 I. Third Party Revenues as Reported: Average U.S. dollar exchange rate 1.3629 1.4484 1.4388 1.3641 Europe 231.8 235.6 242.7 245.0 North Ame
Slide 25: Guidance at Constant FX
Guidance at Constant FX c The growth definition basis has been changed from “recurring” to “constant FX” to provide a clearer basis of comparison c The growth computation no longer takes into account “non-recurring” items c This has an arithmetical impact on the EBITDA growth rates as guided on 17 F
Slide 26: Disclaimer / “Safe Harbor” Statement
Disclaimer / “Safe Harbor” Statement c 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 s