Eutelsat Communications Sa · EURONEXT:ETL
Eutelsat Communications Sa — FY2006-2007 Earnings Presentation
27 slides from Eutelsat Communications Sa's earnings presentation, Jul 26, 2007
Slide 1: 2006-2007 Results
2006-2007 Results July 26, 2007 Giuliano BERRETTA, Chairman & Chief Executive Officer Jean-Paul BRILLAUD, Deputy Chief Executive Officer Claude EHLINGER, Chief Financial Officer
Slide 2: 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
Slide 3: Plan: Continuous Growth
Plan 1 CONTINOUS GROWTH 2 REVIEW OF OPERATIONS 3 FINANCIAL ANALYSIS 4 OUTLOOK
Slide 4: 2006-2007: continuing growth
2006-2007: continuing growth En M€ + 4.8 % Further increase in revenues(1) 791.1 829.1 ► + 4.8% in 2006-2007 ► + 6.8% excluding non-recurring revenues and at constant exchange rate 05/06 06/07 05/06 06/07 5.9% Progress in profitability ► EBITDA growth of 5.9% 616.5 652.6 ► Increase of EBITDA margin
Slide 5: Achievements in line with strategy
Achievements in line with strategy Strategic goal: maximise revenue per transponder > TV channels: + 23% > HOT BIRD™ orbital position further secured Video orbital positions > HOT BIRD™ dual-feed with EUROBIRD™ 9 strengthened > Opening of orbital position 7°° West with ATLANTIC BIRD™ 4 > Emergence o
Slide 6: 2006-2007: 24 satellites at 20 orbital positions
2006-2007: 24 satellites at 20 orbital positions ATLANTIC BIRDTM4 7°°W EUROBIRDTM4 EUROBIRDTM 9 4°°E 9°°E > Entry into service HOT BIRD™ 8: average age of HOT BIRD™ Expansion and renewal of satellites is less than 2 years our in-orbit resources > 3 new orbital positions: 7°°W, 4°°E, 9°°E > Procureme
Slide 7: Dual-feed reception EUROBIRD 9 and HOT BIRD
Dual-feed reception EUROBIRDTM 9 and HOT BIRDTM Entry into service of EUROBIRD™ 9 EUROBIRD™ 9: broadcast satellite technically (9° East) in adjacent position to HOT similar to HOT BIRD™ satellites BIRDTM 13° East), enabling reception of 20 high-power transponders; 38 with channels from both position
Slide 8: Video Applications: engine for growth
Video Applications: engine for growth Priority to Video Applications: +61.8 M€ (up 11.7%) In M€ 12 months ended 2005-20061 2006-20071 June 30 Video Applications 528.6 590.4 67% 72.2% Data and Value 169.1 159.0 Added Services 21% 19.4% Multi-usage 69.7 59.1 9% 7.3% June 30, 20062 June 30, 20072 (1) E
Slide 9: Plan: Review of Operations
Plan 1 CONTINOUS GROWTH 2 REVIEW OF OPERATIONS 3 FINANCIAL ANALYSIS 4 OUTLOOK
Slide 10: Strong channel growth across our video neighbourhoods to 2,608 channels
Strong channel growth across our video neighbourhoods to 2,608 channels Channel growth ► HOT BIRDTM, EUROBIRDTM 1 at premium video > 1,381 channels* neighbourhoods ► Continuing expansion in pay-TV and in launches of + 13 % new channels > ‘n’, France 24, RBC-TV, HD Kino, HD Sport, HD Life, Al Jazeera
Slide 11: Value Added Services: continued growth
Value Added Services: continued growth Data Services Value Added Services: > Reallocation of certain capacities to 5% growth Video Applications in M€ > Transformation of certain short-term contracts into long-term contracts 169.1 159.0 offering greater visibility Ongoing development of D-STAR broadb
Slide 12: Multi-usage
2006-2007 Multi-usage In M€ Reallocation of capacities to Video Applications 69.7 59.1 Growth in government services +8.3% > Renewal of all contracts which expired during the period under review > New contracts activated following entry into service of EUROBIRD™ 4 05/06 05/06 06/07 06/07 Capacities
Slide 13: Quality of operational performance indicators
2006-2007 Quality of operational performance indicators Continuing excellent visibility Backlog secured by backlog 4.0 Bn € 3.7 Bn € > 4.5 times annual revenues > Weighted average residual life of contracts: 7.3 years at June 30, 2007 > Video Applications: 92% of backlog 92% 92% Other Video June 30,
Slide 14: Plan: Financial Analysis
PLAN 1 CONTINOUS GROWTH 2 REVIEW OF OPERATIONS 3 FINANCIAL ANALYSIS 4 OUTLOOK
Slide 15: Another year of substantial earnings improvement
2006-2007 Another year of substantial earnings improvement Summary income statement 2005-2006 2006-2007 Change Highlights IFRS – in M€ % ► Excluding one-off revenues Revenues* 791.1 829.1 + 4.8% and at constant exchange rate: + 6.8 % ► Strict cost control Operating expenses (174.6) (176.5) +1.1% EBI
Slide 16: Financial result improved by 40%
2006-2007 Financial result improved by 40% IFRS – in M€ 2005-2006 2006-2007 Interest expenses and others (138.1) (107.5) Hedging instruments 10.7 2.0 Foreign exchange gains/losses 0.5 0.3 Amortisation of loan set-up fees (8.2) (3.0) Sub-Total (135.1) (108.2) Post IPO debt restructuring costs and sen
Slide 17: Strong financial structure
2006-2007 Strong financial structure Summary cash flow statement 2005-2006 2006-2007 IFRS – in M€ Net cash flows from operating activities 501.1 527.7 64% of revenues Capital expenditure (230.9) (350.1) +119 M€ Operating free cash flow 270.2 177.6 21% of revenues Net debt at the beginning of the per
Slide 18: Agenda: Outlook
Agenda 1 CONTINOUS GROWTH 2 REVIEW OF OPERATIONS 3 FINANCIAL ANALYSIS 4 OUTLOOK
Slide 19: 2007-2008 Outlook
2007-2008 Outlook Consolidate our leadership in Fixed Satellite Services REVENUES 840 - 850 M€ EBITDA MARGIN > 77.5% Fiscal 2007: 0.58 € / per share DISTRIBUTION Distribution policy in future years: 50% to 75% of net income Group share Page 19 Paris, July 26,2007
Slide 20: Agenda: Appendices
Agenda APPENDICES Page 20 Paris, July 26,2007
Slide 21: Group market dynamics
Group market dynamics > Digital TV: growth perspective from 5,500 channels in 2006 to more than 9,000 channels by 2015 in Extended Europe (Source: Euroconsult) Video > HDTV: from 56 HDTV channels at June 30, 2007 to more than 400 Applications channels by 2015 in Extended Europe* > TV to mobiles: fee
Slide 22: 2,608 channels broadcasting from our video neighbourhoods
2,608 channels broadcasting from our video neighbourhoods ► No. 1 for video broadcasting in Europe HOT BIRDTM, N°°1 in EUROPE TV channels 1 000 1097 750 W2 ATLANTIC BIRDTM 3 Central France Europe EUROBIRDTM 9 Europe EUROBIRDTM 2 EUROBIRD™1 500 ATLANTIC BIRDTM 2/4 Middle East UK/Ireland Middle East N
Slide 23: Another year of substantial earnings improvement
2006-2007 Another year of substantial earnings improvement Condensed income statement 2005-2006 2006-2007 Variation Key highlights IFRS – in M€ % Revenue* 791.1 829.1 + 4.8% ► Growth rate excluding one-off revenues at constant exchange rate : + 6.8 % Operating expenses (174.6) (176.5) +1.1 % ► Stric
Slide 24: Strong financial structure
2006-2007 Strong financial structure Condensed cash flow statement 2005-2006 2006-2007 IFRS – in M€ Net cash flow from operating activities 501 528 64% of revenues Capital expenditure (231) (350) +119 M€ Operating free cash flow 270 178 21% of revenues Minority buy-outs (67) (20) Net IPO proceeds 83
Slide 25: Net debt evolution: lower cost, simplified and hedged
Net debt evolution: lower cost, simplified and hedged Eutelsat Communications: senior debt and 2,228M€ 2,295 M€ Revolver for total amount of 1,915 M€ Blended margin: Blended margin: Euribor +91 pb Euribor +73 pb ► 7-year in fine until June 2013 ► Hedged with Euribor capped at 3.85% ► Undrawn amount
Slide 26: Evolution of Eutelsat Communications share structure
2006-2007 EVOLUTION OF EUTELSAT COMMUNICATIONS SHARE STRUCTURE As of December 1, 2006 As of June 30, 2007 Free float(4) Eurazeo 40.4% 25.5% Free float (4) Abertis 42.32% Telecom 31.74% GSCP Nebozzo Eurovision Sarl (1) 2000 (2) 15.4% Holding Sarl 7.1% CB 3 Luxembourg (3) CDC Infrastructure 11.6% 25.9
Slide 27: Definitions
Definitions EBITDA: operating income before depreciation, amortisation and other operating income/charges (impairment charges, dilution profits (losses), insurance compensation, etc.) Net debt: all bank debt and all liabilities from long term agreements, less cash and cash equivalents and marketable
Eutelsat Communications — FY2006-2007 Earnings Presentation on 6ix