SES SA FDR (Class A) · EURONEXT:SESG

SES SA FDR (Class A) — SES — H1 2017 Earnings Presentation

27 slides from SES SA FDR (Class A)'s earnings presentation, Jul 28, 2017

  1. Slide 1: Half Year 2017 Results

    Half Year 2017 Results Six months ended 30 June 2017 Betzdorf, Luxembourg 28 July 2017 H1 2017 Results |

  2. Slide 2: H1 2017 Highlights

    H1 2017 Highlights SES-15: FIRST HYBRID SATELLITE Credit: SpaceX Credit: ESA - CNES - ARIANESPACE  Reported revenue +9.6% (-1.5% like-for-like) and +21.2% growth in net profit  Improving trend in SES Video and strong growth in SES Networks delivers stable verticals development  Building future ma

  3. Slide 3: Growing Reported Revenue

    Growing Reported Revenue H1 2017 Change EUR million Reported Like-for-like(1) ▲ Improving trend with Q2 ‘17 at -1.9% SES Video 699.7 +5.4% -3.1% ▲ Enhancing viewing experience with HD/UHD (67%) ▲ Nearly doubling integrated solutions revenues ▲ Expanding global GEO-MEO solutions SES Networks 343.4 +2

  4. Slide 4: Improving Trend in Video

    Improving Trend in Video Revenue +5.4% as reported  Improving trend: Q2 ‘17 at -1.9% (Q1 ‘17: -4.2%) EUR million • Impact of Q1 ‘16 periodic revenue progressively normalising • Q2 ‘17 benefit from new agreements across existing 722.1 699.7 fleet and recently launched capacity 663.7  Enhancing view

  5. Slide 5: Increasing Revenues from Integrated Media Services

    Increasing Revenues from Integrated Media Services Integrated services revenue evolution Backend Infrastructure Experience Indexed with H1 ‘16 = 100 (as reported at constant FX) Provider Provider Provider  Integrated media services (DTH and OTT) 182 Encoding/ Encryption Uplink Direct- Transcoding t

  6. Slide 6: Improved Positioning for Return to Growth in Fixed Data

    Improved Positioning for Return to Growth in Fixed Data Revenue +18.9% as reported  Expanding global GEO-MEO services EUR million • End-to-end solution in Burkina Faso LFL -0.4%(1) • Multi-year, multi-frequency agreement with Intersat 140.2 139.6 • Palau Telecom and Timor Telecom further increasing

  7. Slide 7: Expanding Services and Managed Solutions in Fixed Data

    Expanding Services and Managed Solutions in Fixed Data Managed solutions revenue evolution Infrastructure Network Experience Indexed with H1 ‘16 = 100 (as reported at constant FX) Provider Platform Provider  Global services and managed solutions 122 GEO-MEO Satellite Architecture 100 ( ) Telco/MNO

  8. Slide 8: Generating Strong Growth in Aero and Maritime Mobility

    Generating Strong Growth in Aero and Maritime Mobility Revenue +88.1% as reported  Double-digit growth in Aero EUR million • Global Eagle Entertainment acquired payload on AMC-3 to boost capacity for customers • Two important additional contracts with Gogo LFL 83.8 covering existing fleet capacity

  9. Slide 9: Double-Digit Growth in Mobility

    Double-Digit Growth in Mobility Aero and Maritime revenue evolution Infrastructure Network Experience Indexed with H1 ‘16 = 100 (as reported at constant FX) Provider Platform Provider 183  Tailored solutions for mobility providers GEO-MEO Satellite Architecture ( ) 85 Energy 100 (1) (1) Internet Po

  10. Slide 10: Returning to Growth in Government

    Returning to Growth in Government Revenue +6.3% as reported  Growing global government EUR million • Contribution from NATO AGS contract LFL • MEO Government business continues to build +1.6%(1) traction 118.1 120.0 112.9 • Extending SATMED until 2020 • Launching Rapid Response Vehicle new “Governm

  11. Slide 11: Growing Global Government; U.S. Government Stabilising

    Growing Global Government; U.S. Government Stabilising Government revenue evolution Infrastructure Network Experience Indexed with H1 ‘16 = 100 (as reported at constant FX) Provider Platform Provider  Secured solutions for military and civilian clients 104 100 GEO-MEO Satellite Architecture 8 13 (

  12. Slide 12: Delivering Profitable Growth and Returns

    Delivering Profitable Growth and Returns  9.6% growth in reported revenue (down 1.5% like-for-like)(1) Returning to sustained and profitable growth in  Improving trend in Video; strong growth in Networks medium term  Net profit increase of 21.2%  Nearly doubling reported revenue from integrated

  13. Slide 13: Financial Review

    FINANCIAL REVIEW Padraig McCarthy, CFO

  14. Slide 14: Financial Highlights

    Financial Highlights H1 2017 H1 2016 Change EUR million EUR million Reported Like-for-like(1) Revenue 1,048.7 956.8 +9.6% -1.5% EBITDA 687.1 699.8 -1.8% -2.8% EBITDA margin (like-for-like)(1) 65.5% 66.4% Operating profit 306.0 417.6 -26.7% -8.1% “Normalised” operating profit margin(1) 32.8%(2) 31.3%

  15. Slide 15: Like-for-Like Revenue Down 1.5% (+9.6% as Reported)

    Like-for-Like Revenue Down 1.5% (+9.6% as Reported) Revenue walk EUR million -1.5% like-for-like(1) +95.6(1) +22.7(2) +1.9 1,064.2 (22.4) (17.1) 1,048.7 +11.8 (0.6) SES Networks: +7.5% 956.8 Video Q1 ‘17 Q2 ‘17 H1 ’17 Lower periodic -2.7% -0.8% -1.8% Recurring -1.5% -1.1% -1.3% Total -4.2% -1.9% -3.

  16. Slide 16: Like-for-Like EBITDA 2.8% Lower (-1.8% as Reported)

    Like-for-Like EBITDA 2.8% Lower (-1.8% as Reported) EBITDA walk EUR million +8.1 699.8 (1.0)(1) 706.9 (15.5) (4.3) 687.1 EBITDA EBITDA EBITDA margin margin margin 73.1% 66.4% 65.5% H1 '16 FX adjustment Like-for-like H1 '16 Change in Change in H1 '17 (1) (reported) adjustment (like-for-like) revenue

  17. Slide 17: Like-for-like Depreciation 0.2% Lower (+36.2% as Reported)

    Like-for-like Depreciation 0.2% Lower (+36.2% as Reported) Depreciation walk EUR million -0.2% like-for-like(1) +87.6(1) +38.4 342.8 (5.2) 342.0 (34.0) 303.6 +4.2 251.0 -11.4% recurring depreciation H1 '16 FX adjustment Like-for-like H1 '16 GEO depreciable MEO depreciable Recurring AMC-9 Impairment

  18. Slide 18: Net Profit up 21.2% to EUR 275.5 million

    Net Profit up 21.2% to EUR 275.5 million Net profit attributable to SES’s shareholders walk EUR million +54.1 (1.0) 275.5 275.5 +99.7 227.3 +7.0 (111.6) H1 '16 Operating profit Net financing costs Income tax Share of associates Non-controlling H1 '17 (reported) (net of tax) interests  Finance costs

  19. Slide 19: 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 536 375 364 375 375 354 54% 280 40% 37% 36% 35% 34%(1) 29% H1 '14 H2 '14 H1 '15 H2 '15 H1 '16 H2 '16 H1 '17 Free Cash Flow (FCF) before financing activities FCF as a

  20. Slide 20: Balance Sheet and Contract Backlog Remain Strong

    Balance Sheet and Contract Backlog Remain Strong Net debt to EBITDA ratio Fully protected contract backlog Times(1) EUR billion (as reported) 7.8 7.3 7.5 3.24 8.1 3.05 7.4 3.09 2.54 2.03 FY '15 H1 '16 FY '16 Q1 '17 H1 '17 FY '15 H1 '16 FY '16 Q1 '17 H1 '17  Net debt to EBITDA in line with financial

  21. Slide 21: Financial Outlook

    Financial Outlook FY 2017 Before impact of satellite health and After impact of satellite health and Like-for-like(1) launch changes launch changes Video Stable Slight decline Fixed Data Returning to growth Returning to growth Mobility Strong growth Strong growth Government Stable to slight growth S

  22. Slide 22: Important Near-term Reduction in CapEx Expected

    Important Near-term Reduction in CapEx Expected GEO-MEO Capital Expenditure (growth and replacement capacity)(1) EUR million Previous 810 560 550 550 610 (Reduction)/increase (120) (30) (20) (20) 170 780 690 60 60 64 530 530 530 150 620 280 320 60 524 570 60 320 60 60 190 150 100 FY '16 FY '17 FY '1

  23. Slide 23: Appendix

    APPENDIX

  24. Slide 24: Future Satellite Capacity

    Future Satellite Capacity Incremental HTS capacity Launch date Payload type txps(3) (GHz) Launch provider Launched March 2017 SES-10 Shaped 27 - SpaceX (OSD by end May 2017) Launched May 2017 SES-15(1) Shaped/HTS 16 10 Soyuz (OSD by end 2017) Q4 2017 SES-11 Shaped - - SpaceX (from Q2 2017) Q1 2018 S

  25. Slide 25: Operating Profit

    Operating Profit H1 2016 EUR million H1 2017 Reported Like-for-like(1) Revenue 1,048.7 956.8 1,064.2 Operating expenses (361.6) (257.0) (357.3) EBITDA 687.1 699.8 706.9 Depreciation (342.0) (251.0) (342.8) - Impairment charge against AMC-9 (38.4) -- -- - “Normalised” Depreciation (303.6) (251.0) (34

  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 should

  27. Slide 27: Richard Whiteing Investor Relations

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

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