Eutelsat Communications SA · EURONEXT:ETL
Eutelsat Communications SA — H1 2014-2015 Earnings Presentation
28 slides from Eutelsat Communications SA's earnings presentation, Feb 12, 2015
Slide 1: First Half 2014-2015 Results
FIRST HALF 2014-2015 RESULTS Thursday 12th February 2015
Slide 2: Agenda
Agenda H1 2014-2015 highlights H1 2014-2015 operational performance H1 2014-2015 financial performance Outlook 2
Slide 3: Key Figures
Key Figures Revenues Revenues of €723m, up 11.6% + 4.31% at constant currency on a proforma basis Strong profitability: EBITDA at €560m EBITDA Stable 77.4% margin Group share of net income at €161m Net result Net margin of 22.2% Financial Robust cash-flow generation representing 70% of revenues Posi
Slide 4: Highlights of Q2 2014-2015
Highlights of Q2 2014-2015 Renewal of seven transponders at HOT BIRD with nc+ Backlog at €6.1bn, representing 4.4 years of revenues Strong performance of Satmex Announcement of software-defined ‘Eutelsat Quantum’ class of satellites providing unprecedented flexibility Full-year and three-year financ
Slide 5: Agenda
Agenda H1 2014-2015 highlights H1 2014-2015 operational performance H1 2014-2015 financial performance Outlook 5
Slide 6: First Half Revenues: €723m, +4.3% like-for-like
First Half Revenues: €723m, +4.3% like-for-like1 REVENUE REVENUES Y-O-Y CHANGE (%) CONTRIBUTION2 (€m) LIKE-FOR-LIKE1 ACTUAL 65% 452 +3.5 +3.8 Video 15% 107 -0.7 +1.2 Data 7% 51 +18.8 +19.0 VAS VAS Government 13% 92 +2.7 +5.5 Services 1 At constant perimeter and currency and excluding non-recurring r
Slide 7: Video: benefiting from additional capacity
Video: benefiting from additional capacity Revenues up 3.5% like-for-like1 reflecting REVENUES Entry into service of Express-AT1 in May (€m) 2014 452 Additional resources at 7°/8° West since 4362 4362 September 2013 Good performance of Satmex Q2 215 Q4 222 Q2 225 5,741 channels broadcast at end- Dec
Slide 8: Data: improving underlying trend
Data: improving underlying trend REVENUES (€m) Revenues of €107m, down 0.7% like- 107 for-like1 1062 1032 underlying trend improving in Q2 Q2 52 Q4 53 Q2 56 Take-up of capacity on EUTELSAT 3B Good performance of Satmex Q1 54 Q3 51 Q1 51 Ongoing competition in EMEA H1 H2 H1 2013-14 2013-14 2014-15 1
Slide 9: VAS: uptake on KA-SAT
VAS: uptake on KA-SAT Revenues of €51m up 19%1 REVENUES (€m) Q2 seasonality of Maritime business 51 175,000 terminals activated on KA- 46 43 SAT at 31 December 2014 Main contributors: France, Italy and Spain Q2 20 Q4 25 Q2 25 Distribution network further expanded Q1 23 Q3 21 Q1 26 OTE (Greece) Telek
Slide 10: Government Services: improved performance
Government Services: improved performance Revenues to €92m up 2.7% like-for- REVENUES (€m) like1 92 New contracts at 872 872 EUTELSAT 33B Q2 44 Q4 43 Q2 48 EUTELSAT 36B EUTELSAT 48D Good performance of Satmex Q1 44 Q3 44 Q1 44 Impact of contract renewals last year H1 H2 H1 2013-14 2013-14 2014-15 Po
Slide 11: Backlog providing strong visibility
Backlog providing strong visibility Backlog of €6.1bn, up 14 % y-o-y +8% excl. Satmex BACKLOG (€bn) 4.4 years of revenues1 6.3 6.1 Video the largest component: 84% 5.3 Video 94% 84% 84% New contracts at 3°East, 7°East and 16° East 31 Dec 30 Sep 31 Dec 2013 2014 2014 nc+ contract renewal at HOT BIRD
Slide 12: Slight rise in fill rate
Slight rise in fill rate Operational tranponders up 178 y-o-y OPERATIONAL Entry into Service of Express-AT1 and TRANSPONDERS EUTELSAT 3B Integration of Satmex 1,033 1,033 855 Fill Rate of 76.3% slightly up on end- Sept Fill 74.8% 76.0% 76.3% Ramp-up of new capacity at 3° East and Rate 7° East Take-u
Slide 13: Agenda
Agenda H1 2014-2015 highlights H1 2014-2015 operational performance H1 2014-2015 financial performance Outlook 13
Slide 14: Stable EBITDA margin
Stable EBITDA margin EBITDA EBITDA up 12% reflecting (€m) Integration of Satmex +12% 560 Beneficial effect of USD exchange rate 532 EBITDA margin stable at 77.4% 501 Phasing of operating costs EBITDA 77.4% 75.9% 77.4% margin marginally beneficial to the first half H1 H2 H1 2013-14 2013-14 2014-15 14
Slide 15: Net income of €161m, net margin at 22%
Net income of €161m, net margin at 22% Extracts from the consolidated income statement in €m1 H1 2013-14 H1 2014-15 Change Revenues 647 723 + 12% EBITDA2 501 560 + 12% Increase in D&A reflecting Satmex consolidation and investment in fleet Operating income 320 325 +2% Other operating income and expe
Slide 16: Strong cash flow generation
Strong cash flow generation €M +€179m 504 407 389 325 1771 175 % of revenues 64% 50% 70% 205 212 272 148 -23 H1 2012-13 H1 2013-14 H1 2014-15 Cash flow from operations Organic investments External growth 1 Acquisition of EUTELSAT 172A for US$228 M (€177m) 2 Including - €16m of disposals in equity in
Slide 17: Stable net debt
Stable net debt €m Free Cash-flow : €299m Net operating Cash Flow (99) 3,779 (111) Others3 (87) Change in 3,807 504 (30) Dividend long-life Interest Payment1 leases2 (205) paid, net Capex Net Debt as Net Debt as of 30/06/14 of 31/12/14 1 Including non-controlling interests; €78 m to shareholders of
Slide 18: Sound financial structure
Sound financial structure NET DEBT / EBITDA RATIO1 Average weighted maturity of 3.9 years 3.5x2 3.5x Average cost of debt after 3.3x2 hedging: 3.8% Strong liquidity: Cash of €469m €650m revolving lines of credit available 31 Dec 2013 30 Jun 2014 31 Dec 2014 1 Based on net debt at the end of the peri
Slide 19: Agenda
Agenda H1 2014-2015 highlights H1 2014-2015 operational performance H1 2014-2015 financial performance Outlook 19
Slide 20: Update on our growth drivers
Update on our growth drivers H1 HIGHLIGHTS • Higher definition Increased HD penetration • Increased interactivity Audience growth at our key VIDEO and hybrid solutions neighbourhoods • New platforms in New contracts with TV platforms in developing markets Africa • Selective investments in DATA, HTS
Slide 21: Continued audience growth at Eutelsat Video neighbourhoods
Continued audience growth at Eutelsat Video neighbourhoods Audience growth at Growth in DTH DTH is leading TV Eutelsat’s top 8 video households reception mode in neighbourhoods Western Europe Audience DTH households Reception modes in 2014 (M homes) (M homes) 274 160 + 32% + 44% 207 27% 111 32% 16%
Slide 22: Eutelsat Quantum: cutting-edge technology
Eutelsat Quantum: cutting-edge technology Software-defined class of satellites First satellite to be launched in 2018 Manufactured by Airbus Defense and Space Incomparable flexibility in terms of: Coverage Bandwidth Power and frequency configurability Premium capacity through footprint shaping and s
Slide 23: Satmex a year on
Satmex a year on Dynamics of Latin American region REVENUES confirmed (USDm) 78 Integration well under way 72 69 Performance in line with expectations 40 Robust double-digit revenue growth at end- December 2014 Q2 35 Q4 37 Q2 Improved EBITDA margin Solid commercial performance Q1 34 Q3 35 Q1 38 Stro
Slide 24: Deployment programme supporting topline growth
Deployment programme supporting topline growth EUTELSAT EUTELSAT EUTELSAT EUTELSAT EUTELSAT EUTELSAT EUTELSAT 115 117 65 9B 8 WEST B 36 C 172 B WEST B WEST B WEST A Position 114.9° 9° 7/8° 36° 116.8° 65° 172° West East West East West West East Launch Q1 2015 Q2/Q3 2015 Q3 2015 Q4 2015 Q4 2015 Q2 201
Slide 25: Outlook Confirmed
Outlook Confirmed Revenues Around 4.0% growth for 2014-2015, like-for-like1 (At constant currency, excl. non recurring revenues) Above 5% average growth in 2015-2016 and 2016-2017 EBITDA EBITDA margin above 76.5% to June 2017 Average of €500m per annum to June 2017 Capex Including cash outflows rela
Slide 26: Questions & Answers
Questions & Answers 27
Slide 27: Appendix: Restated revenues for FY 2013-2014
Appendix: Restated revenues for FY 2013-2014 3 months ended Full-year In millions of euros 30/09/2013 31/12/2013 31/03/2014 30/06/2014 ended 30 June 2014 Video Applications 220.7 215.2 214.7 221.7 872.3 Data Services 54.2 52.0 50.6 52.5 209.2 Value-Added Services 23.0 20.1 20.5 25.0 88.7 Government
Slide 28: 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 Eutelsat Communications, nor should it, or any part of it, form the basis of or be relied on in connection with any contract or
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