Eutelsat Communications Sa · EURONEXT:ETL
Eutelsat Communications Sa — H1 2015-16 Earnings Presentation
30 slides from Eutelsat Communications Sa's earnings presentation, Feb 17, 2016
Slide 1: First Half 2015-16 Results
FIRST HALF 2015-16 RESULTS February 17, 2016
Slide 2: Agenda
Agenda 1 H1 2015-16 highlights 2 Operational performance 3 Financial performance 4 Outlook 2
Slide 3: Key data
Key data ► Revenues of €774m, up 7.1% REVENUES ► + 1.5% at constant currency ► High profitability: EBITDA of €600m EBITDA ► H1 EBITDA margin stable at 77.5% ► Group share of net income at €188m NET INCOME ► Net margin of 24% FINANCIAL ► Robust free-cash-flow generation: 36% of revenues POSITION ► Ne
Slide 4: Recent highlights
Recent highlights Entry into service of EUTELSAT 8 West B (MENA) and EUTELSAT 115 West B (Americas) in October 2015 and EUTELSAT 36C in February 2016 Successful launch of EUTELSAT 9B (Europe) in January 2016 Expansion of the African broadband initiative with the procurement of a standalone HTS Satel
Slide 5: Agenda
Agenda 1 H1 2015-16 highlights 2 Operational performance 3 Financial performance 4 Outlook 5
Slide 6: First Half Revenues: €774m, +1.5% like-for-like
First Half Revenues: €774m, +1.5% like-for-like1 REVENUE REVENUES3 CHANGE (%) CONTRIBUTION2 (€m) AT CONSTANT REPORTED CURRENCY Video 63% 469 +1.5 +3.7 Data 16% 118 -3.1 +9.9 Services Value-Added 7% 55 +6.7 +7.3 Services Government Services 14% 106 -1.5 +15.2 1 At constant and excluding non-recurring
Slide 7: Video: entry into service of EUTELSAT 8 West B
Video: entry into service of EUTELSAT 8 West B REVENUES (€M) ► Revenues of €469m, up 1.5% at constant currency1 ► Entry into service of EUTELSAT 452 461 469 8 West B in October ► Positive trend at 7° East, 16° East and Fransat Q2 225 Q4 235 Q2 240 ► Lower revenues at HOT BIRD • non-renewal with some
Slide 8: Video: over 6,000 channels in 2016
Video: over 6,000 channels in 2016 CHANNEL COUNT ► Threshold of 6,000 channels surpassed at end-December ► Channel count up 263 yoy 1 5,741 6,004 ► HD penetration continues to rise 657 757 • HD penetration at 12.6% 4,807 508 ► UHD gaining traction • Three channels on the fleet 5,084 5,245 • Other tr
Slide 9: Data: entry into service of EUTELSAT 115 West B
Data: entry into service of EUTELSAT 115 West B REVENUES (€M) ► Revenues of €118m, down 3.1% at constant currency1 • Broadly stable excluding reclassification of revenues to Government Services ► Entry into service of EUTELSAT 119 118 107 115 West B mid-October ► Lower revenues at 53° East 61 59 Q2
Slide 10: Value-Added Services: revenues up 6.7%
Value-Added Services: revenues up 6.7%1 REVENUES (€M) ► Revenues of €55m, up 6.7% at constant currency1 ► Q2 reflecting negative seasonality of maritime and lower sales of terminals 55 51 51 ► 190,000 terminals activated on KA-SAT at 31 December 2015 25 Q2 25 Q4 28 Q2 • 15,000 terminals activated in
Slide 11: Government Services: stabilization of revenues in Q2
Government Services: stabilization of revenues in Q2 REVENUES (€M) ► Revenues of €106m, down 1.5% at constant currency1 • Impact of reclassifications from Data Services ► New contracts at 3° East, 21° East, 106 104 36° East and 172° East 92 ► Early termination of a contract with a Q2 Q4 55 Q2 53 dis
Slide 12: Backlog representing 3.9 years of revenues
Backlog representing 3.9 years of revenues BACKLOG (€BN) ► Backlog of €5.8bn, slightly down on end-September • Backlog consumption • Termination of contract for the 6.1 6.0 5.8 Ka-band capacity on EUTELSAT 3B • Partially offset by new contracts signed notably at 7/8° West and by Eutelsat Americas Vi
Slide 13: Fill rate: increase in leased transponders
Fill rate: increase in leased transponders OPERATIONAL AND LEASED TRANSPONDERS ► Entry into service of EUTELSAT 8 West B and EUTELSAT 115 1,268 1,177 1,175 West B 910 912 938 ► Operational transponders up by 93 Q-o-Q ► Leased transponders up by 26 Q-o-Q, reflecting new contracts ► Fill rate diluted
Slide 14: Agenda
Agenda 1 H1 2015-16 highlights 2 Operational performance 3 2 Financial performance 4 Outlook 14
Slide 15: Stable EBITDA margin
Stable EBITDA margin EBITDA (€M) ► EBITDA up 7.3% 600 560 572 532 ► Broadly stable EBITDA margin of 501 77.5% ► Phasing of operating costs Margin 77.4 75.9 77.4 75.9 77.5 marginally favourable to the First (%) Half. FY 2013-14 FY 2014-15 FY 2015-16 H1 H2 15
Slide 16: Net income of €188m, net margin of 24%
Net income of €188m, net margin of 24% Extracts from the consolidated income H1 H1 statement in €m1 2014-15 2015-16 Var. Revenues 723 774 + 7.1% ► Positive currency impact of 5.6 points ► Stable margin EBITDA2 560 600 + 7.3% ► Phasing of opex marginally favourable to H1 Operating 325 361 +11.0% ► In
Slide 17: Strong cash flow generation
Strong cash flow generation In €m 217 171 504 1 447 287 276 H1 2014-15 H1 2015-16 % of 70% 30% 40% 58% 22% 36% revenues Free Cash-flow Cash Capex Net cash Flow from operations Free Cash flow: Net Cash Flow from operations –Cash Capex Cash Capex includes capital expenditures and payments under existi
Slide 18: Slight decrease in net debt
Slight decrease in net debt In €m 19 10 447 20 109 171 Interest Dividend Change in paid, net Others Payment currency Net Cash component operating Capex of cross- Cash Flow currency 3,841 swap 3,723 Net Debt at Net Debt at June 30, 2015 Dec 31, 2015 18
Slide 19: Sound financial structure
Sound financial structure NET DEBT / EBITDA RATIO1 ► Improving Net Debt /EBITDA ratio 3.5 3.4 ► Average weighted maturity of 3.6 3.2 years ► Average cost of debt after hedging: 3.6% ► Strong liquidity • Cash of €563m • €650m revolving lines of credit available 31 Dec. 2014 30 June 2015 31 Dec. 2015
Slide 20: Agenda
Agenda 1 H1 2015-16 highlights 2 Operational performance 3 Financial performance 4 3 2 Outlook 20
Slide 21: Update on our growth drivers
Update on our growth drivers priority growth 3 opportunities FAST-GROWING VIDEO BROADBAND GEOGRAPHIES ► Entry into service of ► Launch of African ► Entry in service of EUTELSAT 8 West B Broadband initiative EUTELSAT 115 West B adding capacity in ► Threshold of 6,000 ► Partnership with LATAM channels
Slide 22: Significant developments in key emerging geographies
Significant developments in key emerging VIDEO geographies SUB-SAHARAN AFRICA LATIN AMERICA MIDDLE-EAST AND NORTH AFRICA ► 6 new or expanded DTH ► Star TV, new DTH Pay-TV ► Entry into Service of platforms in recent service in Mexico EUTELSAT 8 West B months • Multi-transponder, multi- • Significant
Slide 23: Joint-Venture with ViaSat…
Joint-Venture with ViaSat… BROADBAND ► Partnership to jointly develop Broadband in Europe ► Combining Eutelsat’s existing European broadband activity around Ka-Sat with ViaSat’s satellite broadband technology and retail expertise ► Two entities • Infrastructure (51% Eutelsat): owning and operating s
Slide 24: … to give new impetus to European Broadband
… to give new impetus to European BROADBAND Broadband + Mixed distribution model, combining direct and indirect distribution Faster ramp-up ► JV to jointly develop European broadband business Improved retention • History of co-operation • Unique European broadband activity Cost sharing with 190k cus
Slide 25: Expansion capacity focused on emerging markets
Expansion capacity focused on FAST-GROWING emerging markets GEOGRAPHIES EXPANSION OF REGULAR CAPACITY (36 MHZ- EXPANSION OF HTS (GBPS) CAPACITY BY EQUIVALENT TRANSPONDERS) BY GEOGRAPHY1 GEOGRAPHY 7% 7% 3 75 10% 38 51% 2 10% 18 12 2 9% EUTELSAT EUTELSAT AMOS-6 EUTELSAT AFRICAN 36C 65WA PAYLOAD 172B B
Slide 26: Fleet deployment
Fleet deployment EUTELSAT EUTELSAT EUTELSAT EUTELSAT EUTELSAT AFRICAN 36 C 9B 65 WEST A 117 WEST B 172 B BROADBAND Name SATELLITE Position 36° East 9° East 65° West 116.8° West 172° East TBD TBD Launched Launched Launch Dec. 24 Jan. 29 Q1 2016 Q2 2016 H1 2017 2019 2019 Manufacturer Federal TBD TBD L
Slide 27: Progressive ramp-up of new capacity
Progressive ramp-up of new capacity 31/12/2015 31/12/2016 31/12/2017 October EUTELSAT 115 WB October EUTELSAT 8 WB February EUTELSAT 36C March EUTELSAT 9 B EUTELSAT 65 WA +1-2m Q1 EUTELSAT 117 WB +7-9m Q2 +c. 4m EUTELSAT 172B H1 Eutelsat Financal 2015-16 2016-17 2017-18 Year In service Upcoming laun
Slide 28: Financial outlook
Financial outlook REVENUES ► Growth of 2-3% in 2015-16 (At constant currency, excl. non recurring revenues) ► Growth of 4-6% in 2016-17 EBITDA ► EBITDA margin above 76.5% to June 2017 ► Average of €500m per year to June 2018 CAPEX • Inc. cash outflows related to ECA loan repayments and capital lease
Slide 29: Questions & Answers
QUESTIONS & ANSWERS
Slide 30: Disclaimer
Disclaimer This presentation does not constitute or form part of and should not be construed as any offer for sale of or solicitation of any offer to buy any securities of Eutelsat Communications, nor should it, or any part of it, form the basis of or be relied on in connection with any contract or
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