SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — Investor Presentation (May 2019)
30 slides from SES SA FDR (Class A)'s investor presentation, May 2019
Slide 1: Investor Presentation May 2019
INVESTOR PRESENTATION MAY 2019 Investor presentation | May 2019
Slide 2: Contents
Contents 1) Executive Summary and Business Overview Page 3-4 2) 2018 Results and Q1 2019 Highlights Page 5-6 3) Outlook and Strategic Priorities Page 7-9 4) Video Page 10-12 5) Networks Page 13-17 6) U.S. C-band Initiative Page 18 7) Conclusion Page 19 8) Q1 2019 Results Page 20-28 9
Slide 3: Executive Summary
Executive Summary Strong business execution, delivering on all aspects of the 2018 financial outlook; focus on execution paramount in 2019 Balanced portfolio of high-growing Networks and sustained, highly profitable Video business through 2020 and ahead of the launch of our next generation network -
Slide 4: World's Leading Satellite-enabled Solutions Provider
World’s Leading Satellite-enabled Solutions Provider 99% coverage of the world EUR 2BN annual revenue EUR 7BN contract backlog EUR 7BN market cap. 99.999% service reliability EUR 1.26BN annual EBITDA <3.3x net debt / EBITDA EUR 12BN enterprise value Video Networks EUR 1.3BN revenue EUR 0.7BN revenue
Slide 5: Delivered on 2018 Financial Outlook
Delivered on 2018 Financial Outlook EUR million 2018 Actual 2018 Outlook Group revenue (as reported) 2,010.3 1,958 - 2,002 - At EUR/USD FX rate of EUR 1 = USD 1.15 2,045 1,990 - 2,035 Video (as reported) 1,306.3 1,303 - 1,318 - At EUR/USD FX rate of EUR 1 = USD 1.15 1,324 1,320 - 1,335 Network
Slide 6: Q1 2019 Highlights
Q1 2019 Highlights Credit: Arianespace Q1 2019 results in line with expectations and on track to deliver FY 2019 Revenue EUR 480.6 million (underlying -3.1%(1) with Video tracking expectations) Sustained growth in Networks (+5.4% YOY) building on double-digit growth in 2018 Latest O3b satellit
Slide 7: Our Evolving Business - Balanced Portfolio of Stability and Growth
Our Evolving Business - Balanced Portfolio of Stability and Growth Revenue and EBITDA(1) EUR million 2,060 – 2,160 2,045 >40% of 35% of revenue revenue Networks ▲ Strong growth engine for the SES business ▲ Satellite becoming more mainstream in data networks 65% of <60% of revenue revenue Video ▲ La
Slide 8: Our Strategic Priorities
Our Strategic Priorities Video Reinforce and drive value through our core video neighbourhoods Develop OTT and orchestration capabilities to support our content provider customers reach new markets and audiences MOVING IMAGES THAT MOVE THE WORLD Take advantage of opportunities to maximise effi
Slide 9: Leading the Transformation in a Rapidly Evolving Market
Leading the Transformation in a Rapidly Evolving Market Video | Industry Trends SES | Video ▲ Strongest DTH neighbourhoods in mature markets ▲ Broadcasters/platform operators facing accelerated disruption ▲ Expanding platforms in Asia, Latin America and Eastern Europe ▲ Number of linear TV channels
Slide 10: Large, Highly Profitable and Resilient Video Business
Large, Highly Profitable and Resilient Video Business 8,290 355 million 40 EUR 5 billion 10 YEARS TV channels TV homes DTH platforms contract backlog typical contract length VIDEO DISTRIBUTION (75% of Video 2018 revenue) VIDEO SERVICES ~15% (25% of Video 2018 revenue) Europe (~50%): leading video ne
Slide 11: Delivered Important Successes for Our Customers in 2018 - Video
Delivered Important Successes for Our Customers in 2018 - Video Investor presentation | May 2019 11
Slide 12: Video Market Dynamics
Video Market Dynamics Number of TV channels(1) Transponder demand(2) Key drivers 9,000 600 ▲ Adding premium/live content in higher quality Europe 6,000 400 (HD/UHD) offsetting SD switch-off ~50% 3,000 ▲ Reach in Western Europe expected to remain of total Video 200 2017 2018 2019 2020 2022 2017 2018
Slide 13: Expanding Networks Business Is The Growth Engine For SES
Expanding Networks Business Is The Growth Engine For SES >10% CAGR Unique GEO-MEO MEF CE 2.0 EUR 2 billion 3-5 YEARS revenue (2017-2020) and terrestrial network telco-grade certification contract backlog typical contract length MOBILITY (~25% of Networks 2018 revenue) ~25% GOVERNMENT Home equivalent
Slide 14: Delivered Important Successes for Our Customers in 2018 - Networks
Delivered Important Successes for Our Customers in 2018 - Networks Investor presentation | May 2019 14
Slide 15: Networks Market Dynamics
Networks Market Dynamics Vertical Demand drivers Global ComSatCom services spending USD billion(1) ▲ Growing need for Intelligence, Surveillance, Recognition 7.4 Government 8.0 and resilience and other data hungry applications ~40% 6.0 4.0 ▲ Demand for reliable and secure fibre-like connectivity 4.0
Slide 16: Building the Future with O3b mPOWER
Building the Future with Dramatically scales the industry’s only commercially and operationally proven NGSO Unprecedented flexibility to create differentiated user experiences and commercial models Seamless, intelligent integration with existing terrestrial, MEO and GEO satellite networks Reach and
Slide 17: O3b mPOWER
O3b mPOWER Multi-terabit 5,000+ 400M 100% productive beams go only to customers scalable to 10s of Tbps globally beams per satellite square kilometres covered not empty territory CURRENT MEO NEW OPPORTUNITIES FROM 2021 16 satellites in service(1) plus four launching in 2019 serving: Seven super-powe
Slide 18: Continued Progress in C-Band Framework for U.S. 5G
Continued Progress in C-Band Framework for U.S. 5G Clears spectrum Accelerates GDP Protects current TV and Addresses rural U.S. needs quickly to enable U.S. growth and 5G radio broadcasts to 100 for quality television and 5G leadership innovation million homes broadband CBA working with all relate
Slide 19: Strong Focus on Execution to Drive Growth and Shareholder Value
Strong Focus on Execution to Drive Growth and Shareholder Value Up to 6% growth(1) ▲ Fuelled by double-digit growth in Networks Growing revenue (2018-2020) ▲ Underpinned by large and resilient Video neighbourhoods Up to 5% growth(1) ▲ Investing in managed service capabilities, supporting networks ex
Slide 20: Q1 2019 Results
SES‘ Q1 2019 RESULTS
Slide 21: Q1 2019 Financial Highlights
Q1 2019 Financial Highlights Revenue of EUR 480.6 million with underlying revenue(1) down 3.1% (YOY) • Group revenue +0.6% as reported and -2.3% at constant FX including periodic and other revenue EBITDA of EUR 290.1 million (-4.7% as reported and -7.0% at constant FX compared with Q1 2018) • EB
Slide 22: Revenue in Line with Expectations
Revenue in Line with Expectations Revenue walk EUR million Underlying revenue down EUR 15.1 million (or 3.1%) at constant FX compared with the prior year Strong growth in Networks, building on double-digit growth in 2018, with Video performing in line with expectations Investor presentation | Ma
Slide 23: EBITDA Development Reflects Business Transformation
EBITDA Development Reflects Business Transformation EBITDA walk EUR million EBITDA EBITDA EBITDA margin margin margin 63.7% 63.4% 60.4% Change in recurring OpEx (EUR 7.1 million) principally reflects investment in expanding capabilities across the Networks’ business Restructuring charge of EUR 8
Slide 24: Net Profit of EUR 72.2 million
Net Profit of EUR 72.2 million EUR million Q1 2019 Q1 2018 EBITDA 290.1 304.4 EUR 5.0 million higher at constant FX, reflecting new Depreciation and amortisation expense (176.9) (165.6) capacity brought into commercial service Operating profit 113.2 138.8 Q1 2019 operating profit margin of 25.3% exc
Slide 25: Reducing CapEx through Innovation and Fleet Optimisation
Reducing CapEx through Innovation and Fleet Optimisation 2018 CapEx was 30% lower than original forecast reflecting strong focus on cash flow and leverage, underpinned by disciplined spending CapEx reduction of ~30% during the period 2010 to projected 2023 (5-year rolling average) CapEx to sal
Slide 26: Leverage Development in Line with Expectations
Leverage Development in Line with Expectations Net debt to EBITDA Times(1) 3.53 3.41 3.43 3.40 3.27 3.29 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Repayment of USD 500 million bond successfully refinanced with no senior debt maturities now before March 2020 Free cash flow before financing
Slide 27: Financial Outlook Unchanged
Financial Outlook Unchanged FY 2019 FY 2020 Financial outlook assumes EUR/USD FX rate of EUR 1 = USD 1.15, nominal launch schedule and satellite health status Video revenue EUR 1,225 – 1,255 million EUR 1,200 – 1,250 million Networks revenue EUR 740 – 775 million EUR 850 – 900 million Group revenue(
Slide 28: Conclusion
Conclusion Strong business execution, delivering on all aspects of the 2018 financial outlook; focus on execution paramount in 2019 Balanced portfolio of high-growing Networks and sustained, highly profitable Video business through 2020 and ahead of the launch of our next generation network - O3b mP
Slide 29: 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
Slide 30: Richard Whiteing Investor Relations
Richard Whiteing Investor Relations richard.whiteing@ses.com T +352 710 725 261 M +352 691 898 956 Connect with us 30