SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES Global — H1 2006 Earnings Presentation
27 slides from SES SA FDR (Class A)'s earnings presentation, Aug 7, 2006
Slide 1: Financial Results for the six months to 30 June 2006
Financial Results for the six months to 30 June 2006 7 August 2006
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 SES GLOBAL S.A. (“SES GLOBAL”) nor should it or any part of it form the basis of, or be relied on in connection with, any
Slide 3: H1 2006 in brief (1)
H1 2006 in brief (1) • Strong first half result validates growth expectations • Revenues rose 16.6% to EUR 710.5 million − 85% of which from core infrastructure business • EBITDA rose 14.1% to EUR 499.5 million • Net Income rose 28.6% to EUR 215.6 million • Earnings per share rose 34.5% to EUR 0.39
Slide 4: H1 2006 in brief (2)
H1 2006 in brief (2) • Utilisation rate maintained at 74% − Number of utilised transponders (excluding New Skies) increased by 33 to 582 (+6%) • New Skies acquisition significantly strengthens our position • Greater government services capabilities with ND Satcom • Further organic growth secured wit
Slide 5: Satellite procurement programme
Satellite procurement programme • Focus on growing market segments supports continued investment programme • Over 240 incremental transponders will augment future growth • All projects exceed IRR hurdle rate ASTRA Satellites Launch Date Incremental txp's ASTRA 1KR April '06 ASTRA 1L Q1 2007 UK / IRL
Slide 6: Delivering Value to Shareholders
Delivering Value to Shareholders • In the first half of 2006 SES continued to deliver on its long term shareholder value creation objective • Continued investment in the business to deliver growth, both organically and via carefully selected acquisitions • Dividend payment of 40 cent (+33%) in April
Slide 7: Strategy
Strategy • SES’s primary strategic focus is on the development of its core infrastructure business − growing market segments (video, government services) − major markets of Europe and North America as well as new geographies • Investment in selected services businesses complements the infrastructure
Slide 8: Infrastructure Developments in North America
Infrastructure Developments in North America • Transponder utilisation grew to 69% − 343 of 500 commercially available transponders • New capacity was taken by − US government agencies, Connexion by Boeing and others • AMC-18 scheduled for launch in Q4 2006 − adding 24 C-band transponders at 105W •
Slide 9: Infrastructure Developments in EMEA
Infrastructure Developments in EMEA • ASTRA reach grew to 107 million households in Europe and North Africa − 45 million via satellite DTH − 62 million via cable • Transponder utilisation of 84% − 239 of 286 commercially available transponders • Additional capacity signed for both Standard- and High
Slide 10: HDTV in Europe
HDTV in Europe • Substantial growth of “HD-ready” households * 6,000,000 More than 5.2 million HD ready TV 5,000,000 sets sold since Feb. 2005 4,000,000 Units flat screens Europe 3,000,000 2,000,000 1,000,000 0 Jan 05- Mar 05- May 05- Jul 05- Sep 05- Nov 05- Jan 06- Mar 06- Feb 05 Apr 05 Jun 05 Aug
Slide 11: SES New Skies
SES New Skies • USD 1.1 billion cash offer announced 14 December 2005 • Acquisition completed 30 March 2006, sooner than projected • New Skies now the “third pillar” infrastructure company of the Group − Market-facing functions retained − Technical functions to be integrated with other Group compani
Slide 12: Renewal and Expansion of the SES New Skies Fleet
Renewal and Expansion of the SES New Skies Fleet 4 5 AM 06 12 S- 8 NS C- 23 S- 3 5 C- NS 70 S- 6 AM S- NS S- NS NS 3 70 S- 7 S- NS 2 NS NSS-9 NSS-8 5 1 3 1. NSS-8 launched to 57°E, replacing NSS-703 in Q1 2007 Current deployment 2. NSS-703 moved to 340°E in Q2 2007 3. NSS-9 launched to 183°E, replac
Slide 13: Services initiatives in H1 2006
Services initiatives in H1 2006 • ND Satcom stake raised to 100% − important entry into government services market − substantial German military contract won • Project Dolphin announced − neutral, open platform for digital broadcasting − addressing the German market − enhancing competitiveness of sa
Slide 14: Revenues – YTD 2006
Revenues – YTD 2006 16.6% vs ytd June 2005 8.1% EUR million 710 657 661 609 608 4 49 (17) 16 49 Ytd June Non-recurring Constant FX / Ytd June Organic Ytd June Non-recurring Ytd June New Skies Ytd June 2005 (as 2005 Scope 2005 growth 2006 2006 2006 (same (Q2 only) 2006 (as reported) change (recurring
Slide 15: EBITDA – YTD 2006
EBITDA – YTD 2006 14.1% vs ytd 7.4% June 2005 EUR million 499 460 464 438 428 4 35 (17) 32 7 Ytd June Non- Constant FX Ytd June Organic Ytd June Non- Ytd June New Skies Ytd June 2005 (as recurring / Scope 2005 growth 2006 recurring 2006 (same (Q2 only) 2006 (as reported) 2005 change (recurring, (rec
Slide 16: Quarterly development – H1 2006
Quarterly development – H1 2006 EUR million H1 - same New Skies H1 - full Q1 Q2 scope (after elim.) scope Revenue - as reported 329.3 331.9 661.2 49.3 710.5 EBITDA - as reported 227.2 237.0 464.2 35.3 499.5 EBITDA margin 69.0% 71.4% 70.2% 71.7% 70.3% Non recurring revenue 2.4 1.8 4.2 0.0 4.2 Recurri
Slide 17: Business segmentation – YTD June 2006
Business segmentation – YTD June 2006 Infrastructure EMEA Americas New Skies Asia & Other Total Revenues 379.8 193.1 46.9 16.4 636.2 EUR million EBITDA 315.2 141.0 34.1 11.3 501.7 Margin % 83.0% 73.0% 72.9% 69.1% 78.9% Services Project start- EMEA Americas New Skies Asia & Other Sub-Total up costs T
Slide 18: Other financial lines
Other financial lines • Rise in depreciation of EUR 30.6 million − first-time consolidation of SES New Skies (EUR 18.9 million) − additions to satellite fleet (AMC-16, AMC-12, AMC-23 and ASTRA 1KR) • Net finance charges increase by EUR 1.7 million − Higher net interest expense (EUR 19.3 million) − I
Slide 19: Cash Flow
Cash Flow EUR million 67 (109) 364 314 93 (1) (606) (242) Actual H1 2005 Higher net Lower outflow Less realised Other Actual H1 2006 New Skies + ND Actual H1 2006 operating CF from satellite proceeds on the (before acq. Satcom net (Result + fav CapEx settlement of cash outflow) acquisition cash WOC
Slide 20: Capital Expenditure schedule
Capital Expenditure schedule EUR million 386 ~ 440 ~ 480 ~ 430 ~ 120 Guidance in May 2006: ~410 ~360 ~180 ~100 251 263 233 204 159 169 135 125 95 107 55 15 24 10 10 - 1 - - A 2005 FC 2006 T 2007 T 2008 T 2009 Astra Americom New Skies AsiaSat ¾ Procurement of ASTRA 3B and NSS-9 added ¾ SES New Skies‘
Slide 21: Financial Outlook
Financial Outlook • Strong performance expected to continue • Improved expectations for revenues and EBITDA are detailed in the modelling guidance • 2006 total revenues to be more than 20% ahead of 2005 − New Skies (before restructuring costs) and ND SatCom both accretive to earnings in 2006 − “same
Slide 22: Appendices
SESAGLOBAL ——_—;zOL Appendices
Slide 23: Modelling guidance (1)
Modelling guidance (1) Full scope (including New Skies and ND Satcom) • Revenues − 2006 total revenue growth versus previous year of more than 20% • EBITDA margin − Infrastructure margin will be around 78% in 2006 − The combined impact of New Skies and ND Satcom will be slightly favourable to the se
Slide 24: Modelling guidance (2)
Modelling guidance (2) • Operating Profit to continue to grow at same and full scope • Depreciation will increase with new satellites coming into service from existing and new scope • A conservative approach for modelling satellite replacement CapEx is to look at the normalised CapEx which can be de
Slide 25: Revenue and EBITDA ranges - 2006
Revenue and EBITDA ranges - 2006 May 8, 2006 August 7, 2006 EUR million As reported Revised USD Full scope New Skies ND Satcom Same scope Same scope before one-off One-off costs *) Full scope (9 months) (6 months) cost Total - Revenues 1340 - 1360 1330 - 1350 1340 - 1360 145 - 150 40 - 45 1525 - 155
Slide 26: Depreciation schedules (1)
Depreciation schedules (1) SES ASTRA Satellite Depreciation End of Depreciation NBV NBV Period (years) 30.06.2006 31.12.2005 Life EUR million Astra 1C Astra 1D 12 10 Jun-05 Dec-04 0.0 0.0 0.0 0.0 Astra 1E 12 Dec-07 20.2 27.0 Astra 1F 13 May-09 29.3 34.3 Astra 1G 13 Dec-10 42.9 47.7 Astra 1H 13 Sep-1
Slide 27: Depreciation schedules (2)
Depreciation schedules (2) SES AMERICOM End of NBV at NBV at NBV at Depreciation Depreciation 30.06.2006 1) 30.06.2006 31.12.2005 Satellite Period (years) Life in MEUR in MUSD in MUSD AAP-1 15 Nov-15 54.2 64.0 71.3 AMC-1 15 Sep-11 61.4 72.5 79.4 AMC-2 15 Feb-12 70.6 83.3 90.7 AMC-3 15 Sep-12 73.7 87