SES SA FDR (Class A) · EURONEXT:SESG

SES SA FDR (Class A) — SES — Q3 2013 Earnings Presentation

20 slides from SES SA FDR (Class A)'s earnings presentation, Nov 8, 2013

  1. Slide 1: Financial Results

    Financial Results For the nine months to 30 September 2013 8 November 2013

  2. Slide 2: YTD Q3 2013 - Summary

    YTD Q3 2013 - Summary  A robust performance in the period, resulting from the strategic approach to sustain SES’ position in mature markets, with targeted expansion in emerging markets  Strong video/DTH revenue growth in International segment was complemented by continued growth in Europe video/DT

  3. Slide 3: YTD Q3 2013 - Financial Highlights

    YTD Q3 2013 - Financial Highlights  The first nine months of 2012 included EUR 42.6 million of revenue and EBITDA from German analogue DTH transmissions, affecting the comparisons with the current period  Reported revenue of EUR 1,378.2 million increased by 1.4% over the prior year, despite the an

  4. Slide 4: Fleet Development

    Fleet Development  Utilisation rate of 74.1% (Q3 2012: 72.6%; Q2 2013: 75.5%)  Available transponder capacity increased by 2% since end September 2012  Utilised transponder capacity increased by 4% over the same period In 36 MHz-equivalent transponders Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Euro

  5. Slide 5: Europe Business Review – YTD Q3 2013

    Europe Business Review – YTD Q3 2013  Revenue was EUR 682.5 million, down 0.9% at constant FX • But a strong performance, as revenue increased by 5.6%, driven by EUR 36.1 million of new DTH business, excluding analogue  Available capacity reduced by 16 to 329 transponders as ASTRA 1F concluded its

  6. Slide 6: North America Business Review – YTD Q3 2013

    North America Business Review – YTD Q3 2013  Revenue essentially flat at EUR 303.7 million. The 1.6% decrease at constant FX results from a one-time revenue recorded in Q3 2012  New contracts signed for aeronautical and maritime broadband connectivity (Hughes/Row44, GoGo, Panasonic, KVH)  SES Gov

  7. Slide 7: International Business Review (1/2) – YTD Q3 2013

    International Business Review (1/2) – YTD Q3 2013  Revenue of EUR 392.0 million, an increase of 12.5% at constant FX • Accelerating growth in emerging markets • Building and enhancing high-value DTH neighbourhoods  Available capacity increased by 49 to 756 transponders compared to Q3 2012 • New ca

  8. Slide 8: International Business Review (2/2) – YTD Q3 2013

    International Business Review (2/2) – YTD Q3 2013  Key market developments in the period demonstrate execution of SES growth strategy Latin America: Oi Brazil signed a major multi-year transponder capacity agreement for the majority of the Ku-band capacity on SES-6. The DTH package includes a subst

  9. Slide 9: New Satellites to Increase Capacity by 12%

    New Satellites to Increase Capacity by 12% (compared to year-end 2012) SES GROUP by region 2013 2014 2015 2016- 2013 launch date movements (36 MHz Equiv. Total Q1 Q2 Q3 Q4 Q1 H1 2018 Transponders) 26 July 8 November Satellite ASTRA 2E ASTRA 5B (H1 2013) (Q3 2013) Europe 30 September (+21) ASTRA 2G 2

  10. Slide 10: Capital Expenditure is Reducing

    Capital Expenditure is Reducing As published on 26 July 2013: EUR million 835 691 590 530 450 450 450 Estimated, uncommitted potential Growth Investments (maximum) Estimated, uncommitted potential Growth Investments (minimum) Estimated, uncommitted Replacement Satellite CapEx Committed, Non Satellit

  11. Slide 11: Financial Review and Analysis

    Financial Review and Analysis 11

  12. Slide 12: Financial Highlights – YTD Q3 2013

    Financial Highlights – YTD Q3 2013 YTD Q3 2013 Excluding analogue and at compared to prior As reported At constant FX constant FX year period Revenue +1.4% +2.4% +5.7% EBITDA -0.3% +0.8% +5.3%  Revenue of EUR 1,378.2 million (+1.4%) • Growth of 2.4% at constant FX and of 5.7%, excluding EUR 42.6 mi

  13. Slide 13: Revenue Walk from YTD Q3 2012 to YTD Q3 2013

    Revenue Walk from YTD Q3 2012 to YTD Q3 2013 FX rate EUR/USD: SES Group Revenue Actual YTD Q3 2012 1.289 in EUR millions +1.4% as Actual YTD Q3 2013 1.315 -2.0% reported 74.7 1,378.2 1,359.6 1,346.1 (13.5) 1,303.5 (42.6) Actual YTD Constant FX Actual YTD Analogue Actual YTD Growth Actual YTD Q3 2012

  14. Slide 14: EBITDA Walk from YTD Q3 2012 to YTD Q3 2013

    EBITDA Walk from YTD Q3 2012 to YTD Q3 2013 FX rate EUR/USD: SES Group EBITDA Actual YTD Q3 2012 1.289 in EUR millions -0.3% as Actual YTD Q3 2013 1.315 -2.0% reported 1,012.0 1,001.4 50.5 1,009.3 958.8 (10.6) (42.6) 74.9 74.9 73.0 72.9 % EBITDA margin 74.4% % 74.4% % 73.6% % 73.2% Actual YTD Consta

  15. Slide 15: Infrastructure and Services Segmentation

    Infrastructure and Services Segmentation Business Segmentation YTD Q3 2013 (as reported) *) in EUR million Infrastructure Services Other / Elim. SES GROUP Revenues 1,180.7 315.0 (117.5) 1,378.2 EBITDA 986.5 50.0 (27.2) 1,009.3 Margin % 83.6% 15.9% 73.2% Business Segmentation YTD Q3 2012 (at constant

  16. Slide 16: Additional Financial Information

    Additional Financial Information  The depreciation charge of EUR 356.4 million for the period was EUR 4.2 million lower than the prior year period, the EUR 3 million value adjustment on the AMC-16 satellite in Q1 2012 being offset in YTD Q3 2013 by a minor net increase in the depreciable satellite

  17. Slide 17: Guidance (1/2) – Updated 2013 Launch Schedule

    Guidance (1/2) – Updated 2013 Launch Schedule 22 February 17 May 26 July 8 Nov Satellite (FY 2012) (Q1 2013) (H1 2013) (Q3 2013) SES-6 June 3 June 3 June 3 June ASTRA 2E June July September 30 September SES-8 June Mid August October 22 November September / ASTRA 5B September December 6 December Octo

  18. Slide 18: Guidance (2/2)

    Guidance (2/2) Reporting As reported Excluding Analogue Period Revenue EBITDA Revenue EBITDA 2013 growth ~ 3% - 4% ~ 2.5% - 3.5% ~ 5.5% - 6.5% ~ 5.5% - 6.5% 2012-2014 CAGR ~ 4.5% ~ 4.5% ~ 7.5% ~ 8.0%  Guidance for revenue and EBITDA as given on 26 July 2013 is reiterated  Guidance on other key fin

  19. Slide 19: Summary and Conclusion

    Summary and Conclusion  Strong long-term fundamentals, with high cash flows, solid returns and strong margins  Successful execution of SES’ DTH growth strategy in emerging markets  Recently-announced contracts on launched satellites (e.g.SES-4, SES-5, SES-6) and satellites to be launched (e.g. SE

  20. Slide 20: Disclaimer / “Safe Harbor” Statement

    Disclaimer / “Safe Harbor” Statement  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 s

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