SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — Q1 2019 Earnings Presentation
27 slides from SES SA FDR (Class A)'s earnings presentation, Apr 26, 2019
Slide 1: Q1 2019 Results
Q1 2019 RESULTS THREE MONTHS ENDED 31 MARCH 2019 26 APRIL 2019 (BETZDORF, LUXEMBOURG) Q1 2019 Results |
Slide 2: Agenda
Agenda Steve Collar Business Highlights President & CEO Ferdinand Kayser Video CEO of SES Video John-Paul Hemingway Networks CEO of SES Networks Andrew Browne Financial Review CFO Q1 2019 Results | 2
Slide 3: Business Highlights
BUSINESS HIGHLIGHTS Steve Collar, President & CEO
Slide 4: Highlights
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 satellites in se
Slide 5: 2019 On Track with Financial Outlook
2019 On Track with Financial Outlook Q1 2019 EUR 304.1 million Video On Track for FY 2019 of EUR 1,225 - 1,255 million(1) (-7.3% underlying) EUR 176.4 million Networks On Track for FY 2019 of EUR 740 - 775 million(1) (+5.4% underlying) Group Revenue EUR 480.5 million (-3.1% underlying) On Trac
Slide 6: 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 7: SES Video
SES VIDEO Ferdinand Kayser, CEO of SES Video
Slide 8: Video Delivering in Line with Expectations
Video Delivering in Line with Expectations SES Video revenue EUR million ▲ Delivering improved experience with higher quality 330.0 304.1 • +6% (YOY) growth in HD and commercial UHD TV channels 327.1 303.3 ▲ Reach growing to 355 million households (+4 million YOY) • Over one billion people relying o
Slide 9: Delivered Important Success for Our Customers in Q1 2019
Delivered Important Success for Our Customers in Q1 2019 MULTI-YEAR COMMITMENT ACCELERATING DIGITAL Partner of choice for Crown Media to broadcast Hallmark Using spot beam across Benin to feed DTT and provide DTH to Channel line up to tens of millions of households in the U.S. receive 15 new FTA cha
Slide 10: Markets Remain Challenging but Substantial Reach Underpins Core Neighbourhoods
Markets Remain Challenging but Substantial Reach Underpins the Value of Our Core Neighbourhoods Video Distribution revenue walk EUR million ▲ Underlying revenue -8.1% (YOY) (20.2) • Reduction in North American wholesale and 251.6 ongoing SD switch-off in the cable business (2.2) 229.2 Underlying -8.
Slide 11: Refocusing Our Video Services to Deliver Integrated Solutions
Refocusing Our Video Services to Deliver Integrated Solutions for Our Customers Video Services revenue walk EUR million ▲ Underlying revenue -4.5% (YOY) (3.5) n/a • HD+ stable 78.4 74.9 • Non-renewal of ‘legacy’ services in MX1 led Underlying -4.5% to lower revenue and offset further customer adopti
Slide 12: SES Networks
SES NETWORKS John-Paul Hemingway, CEO of SES Networks
Slide 13: Sustained Growth in Q1 2019, Building on Breakout Year in 2018
Sustained Growth in Q1 2019, Building on Breakout Year in 2018 SES Networks revenue EUR million ▲ Expanding across multiple growth segments 176.4 161.9 170.6 • Government, Aero, Cruise, MNO, Energy 161.9 ▲ New GEO assets to contribute this year • With SES-12 and ramp-up of SES-14 ▲ Finalisation of t
Slide 14: Delivered Important Success for Our Customers in Q1 2019
Delivered Important Success for Our Customers in Q1 2019 ENHANCE SAFETY AT SEA AND LUXURY CONNECTIVITY MONITOR POLLUTION GEO-MEO Maritime solution to offer unmatched connectivity at Remotely Piloted Aircraft Systems supported by end-to-end sea aboard custom-built luxury yachts solutions opening up n
Slide 15: Unique Government Solutions Driving Growth
Unique Government Solutions Driving Growth Government revenue walk EUR million n/a ▲ Underlying revenue +9.6% (YOY) +6.0 68.5 • U.S. Government growth supported by both 62.5 new MEO missions and GEO-enabled Underlying +9.6% network solutions • Strong growth in Global Government across the portfolio
Slide 16: Fixed Data Performing Robustly in a Challenging Market
Fixed Data Performing Robustly in a Challenging Market Fixed Data revenue walk EUR million ▲ Underlying revenue -1.3% (YOY) (0.8) n/a • Growing in the Americas supported by new 59.5 58.7 Telcos, MNO and Energy services Underlying -1.3% • Lower wholesale capacity and equipment revenue in EMEA and Asi
Slide 17: Further Significant Expansion in Aero and Cruise
Further Significant Expansion in Aero and Cruise Mobility revenue walk EUR million +5.8 ▲ Underlying revenue +8.7% (YOY) 49.2 • Strong growth in Aero with SES-15 enabling +3.5 Aero Service Providers to support North and Latin American airlines, as well as the 39.9 Underlying +8.7% expansion of SES’
Slide 18: Financial Review
FINANCIAL REVIEW Andrew Browne, CFO
Slide 19: Financial Highlights
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) • EBITDA mar
Slide 20: 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 Q1 2019 Results | 20
Slide 21: 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 22: 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 23: CapEx Profile Unchanged
CapEx Profile Unchanged GEO-MEO Capital Expenditure (growth and replacement)(1) EUR million 1,200 50 100 1050 450 390 450 450 321 30 30 140 210 120 350 100 280 240 140 100 2018 2019 2020 2021 2022 2023 Actual CapEx Committed satellite Ground/non-satellite Estimated uncommitted satellite Average Ca
Slide 24: 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 25: 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 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
Slide 27: Investor Relations
Richard Whiteing Investor Relations richard.whiteing@ses.com T +352 710 725 261 M +352 691 898 956 Connect with us 27