SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — Q3 2018 Earnings Presentation
27 slides from SES SA FDR (Class A)'s earnings presentation, Oct 26, 2018
Slide 1: YTD 2018 Results
YTD 2018 RESULTS ENDED 30 SEPTEMBER 2018 26 OCTOBER 2018 (BETZDORF, LUXEMBOURG) YTD and Q3 2018 Results |
Slide 2: Agenda
Agenda Steve Collar Business Highlights President & CEO Ferdinand Kayser SES Video CEO of SES Video John-Paul Hemingway SES Networks CEO of SES Networks Andrew Browne Financial Review CFO YTD 2018 Results | 1
Slide 3: Business Highlights
BUSINESS HIGHLIGHTS Steve Collar, President & CEO
Slide 4: Solid YTD 2018 Results Reflect Continued Focus on Execution
Highlights Solid YTD 2018 Results Reflect Continued Focus on Execution Revenue EUR 1,469.4 million, with underlying revenue up 2.1%(1) 13.6% growth in networks underlying revenue, and +19.5% in Q3 Video lower by 2.8% with improved performance from video services Delivering group EBITDA EUR 9
Slide 5: Outlook Unchanged
Outlook Unchanged Growing Revenue and EBITDA Through Expansion of SES Networks Revenue and EBITDA(1) EUR million 2,110 – 2,210 2,011 >40% of 32% of revenue | Networks revenue ▲ Strong growth engine for the SES business ▲ Satellite becoming more mainstream in data networks 68% of <60% of revenue reve
Slide 6: 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 ef
Slide 7: SES Video
SES VIDEO Ferdinand Kayser, CEO of SES Video
Slide 8: SES Video: Solid Fundamentals Underpinning Resilient and Profitable Business
SES | Video Solid Fundamentals Underpinning Resilient and Profitable Business SES Video revenue EUR million ▲ Large, profitable and resilient video neighbourhoods, 1,002.3 977.4 complemented by value-added video services Underlying -2.8% ▲ 96% of 2018 expected revenue now contracted ▲ 8,020 total TV
Slide 9: SES Video: Supporting Clients With Quality Experience and Differentiated Services
SES | Video Supporting Clients With Quality Experience and Differentiated Services Extends satellite Renewed long-term and partner capacity agreement for commitment to satellite offering enhanced DTH services in the and rely on end- event solutions and UK and Ireland to-end solutions viewing experie
Slide 10: Video Distribution – Core Neighbourhoods Remain Resilient
SES | Video Video Distribution – Core Neighbourhoods Remain Resilient Video Distribution revenue walk EUR million +3.0 ▲ Underlying revenue -4.7% (YOY) 767.8 (36.1) 734.7 • Europe slightly lower in Q3 2018 due to expiration of certain capacity contracts Underlying -4.7% signed on a short-term basis
Slide 11: Video Services – MX1 Stability Complementing HD+ Growth
SES | Video Video Services – MX1 Stability Complementing HD+ Growth Video Services revenue walk EUR million ▲ Underlying revenue +3.5% (YOY) +8.2 n/a • HD+ price increase of Q2 2017 242.7 234.5 contributing to YOY growth Underlying +3.5% • MX1 stable as new linear and OTT services offsetting non-ren
Slide 12: SES Networks
SES NETWORKS John-Paul Hemingway, CEO of SES Networks
Slide 13: SES Networks: Differentiated Services Driving Double-digit Underlying Growth
SES | Networks Differentiated Services Driving Double-digit Underlying Growth SES Networks revenue EUR million 491.0 ▲ Growth engine for SES – integrating satellite into the 456.0 mainstream ecosystem of data networks 478.1 421.1 ▲ 97% of 2018 expected revenue now contracted ▲ >30 government sites n
Slide 14: SES Networks: Continuing to Build Commercial Momentum
SES | Networks Continuing to Build Commercial Momentum Full managed GEO- 6 Gbps of reliable low Partnering to expand MEO solutions for latency connectivity in the cloud market with networks expansion support upcoming fibre-like connectivity solutions in Chad APEC summit in PNG Expanding distribution
Slide 15: Government – U.S. and Global Government Gaining Momentum
SES | Networks Government – U.S. and Global Government Gaining Momentum Government revenue walk EUR million ▲ Underlying revenue +21.0% (YOY) +33.5 (3.6) • Significant incremental adoption of 200.6 MEO driving growth in U.S. government, complemented by strong Underlying +21.0% execution in GEO renew
Slide 16: Fixed Data – Positive Contribution in Q3 2018
SES | Networks Fixed Data – Positive Contribution in Q3 2018 Fixed Data revenue walk EUR million ▲ Underlying revenue -3.3% (YOY) 180.4 • Growing managed services in the (5.7) (3.1) 171.6 Americas and Asia, integrating SES’ capabilities into the global Underlying -3.3% communications ecosystem • EME
Slide 17: Mobility – Strong Underlying Growth in Aero with Progress in Maritime
SES | Networks Mobility – Strong Underlying Growth in Aero with Progress in Maritime Mobility revenue walk EUR million ▲ Underlying revenue +32.6% (YOY) +29.2 • Significant aeronautical growth in North America (SES-15) with incremental (15.3) 118.8 agreements secured in Q3 2018 104.9 Underlying +32.
Slide 18: Financial Review
FINANCIAL REVIEW Andrew Browne, CFO
Slide 19: Financial Review Highlights
Financial Review Highlights Revenue EUR 1,469.4 million including 2.1% growth in underlying revenue compared with YTD 2017 • Group revenue -3.8% (YOY) as reported, including impact of FX; and +0.4% (YOY) at constant FX including periodic and other revenue EBITDA EUR 927.7 million (-6.7% as repor
Slide 20: Positive Momentum in Underlying Revenue
Financial Review Positive Momentum in Underlying Revenue Revenue walk EUR million Underlying revenue up EUR 29.2 million (or 2.1%) at constant FX compared with prior year Total revenue stabilised at constant FX (+0.4%), with Q3 2018 +2.4% compared with Q3 2017 at constant FX YTD 2018 Results | 1
Slide 21: EBITDA Development Reflects Investment in Fast-growing SES Networks
Financial Review EBITDA Development Reflects Investment in Fast-growing SES Networks EBITDA walk EUR million EBITDA EBITDA EBITDA margin margin margin 65.1% 65.3% 63.1% Change in recurring OpEx (EUR 24.3 million) principally reflects investment in expanding capabilities of SES Networks EBITDA ma
Slide 22: Net Profit of EUR 303.7 million
Financial Review Net Profit of EUR 303.7 million (YTD 2017: EUR 394.5 million) EUR million YTD 2018 YTD 2017 EBITDA 927.7 994.6 In line (YOY) at constant FX with new satellites depreciation in 2018 offsetting impairment charge in Depreciation, impairment and amortisation expense (523.4) (546.2) Q2 2
Slide 23: YTD 2018 Leverage Development
Financial Review YTD 2018 Leverage Development Net debt to EBITDA Times(1) 3.41 3.53 3.43 3.27 3.09 2016 2017 Q1 2018 Q2 2018 Q3 2018 Increase on FY 2017 reflects lower 12-month rolling EBITDA and higher proportion of CapEx, interest and dividend payment in H1 2018 YTD 2018 Free Cash Flow before
Slide 24: 2018 Expected CapEx Reduced by EUR 80 million
Financial Outlook 2018 Expected CapEx Reduced by EUR 80 million GEO-MEO Capital Expenditure (growth and replacement)(1) EUR million H1 2018 (July 2018) 460 430 380 1,130 550 Change (80) +10 +70 Unchanged Unchanged (2) 1,130 180 100 492 550 440 450 380 83 850 310 90 100 180 100 409 100 100 290 240 17
Slide 25: Business On Track to Execute on Financial Outlook
Financial Outlook Business On Track to Execute on Financial Outlook FY 2018 FY 2020 SES Video revenue EUR 1,320 - 1,335 million EUR 1,250 - 1,300 million SES Networks revenue EUR 660 - 690 million EUR 850 - 900 million Other revenue Approximately EUR 10 million Approximately EUR 10 million Group rev
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 Contact
Richard Whiteing Investor Relations richard.whiteing@ses.com T +352 710 725 261 M +352 691 898 956 Connect with us 26