Eutelsat Communications Sa · EURONEXT:ETL
Eutelsat Communications Sa — FY2013-14 Earnings Presentation
31 slides from Eutelsat Communications Sa's earnings presentation, Jul 31, 2014
Slide 1: Eutelsat Communications Full Year 2013-2014 Results
Eutelsat Communications Full Year 2013-2014 Results July 31, 2014 1
Slide 2: Agenda
Agenda FY 2013-2014 highlights Operational performance Financial overview Outlook -2-
Slide 3: FY 2013-2014: Key Figures
FY 2013-2014: Key Figures Revenue Revenues of €1,348 M, up 5.0% + 2.6% at constant currency, excluding non-recurring revenues and Satmex – in line with objectives Strong profitability: EBITDA at €1,033 M EBITDA 76.7% margin including Satmex, in line with objectives Net result Group share of net inco
Slide 4: FY 2013-2014: Operational Highlights
FY 2013-2014: Operational Highlights Significant contract wins, record backlog: €6.4 Bn, up 14% and 20% including Satmex Acquisition and successful integration of Satmex Successful launches of EUTELSAT 25B, Express-AT1, Express-AT2 and EUTELSAT 3B Procurement of EUTELSAT 172B to support growth in As
Slide 5: Agenda
Agenda FY 2013-2014 highlights Operational performance Financial overview Outlook -5-
Slide 6: Record Order Backlog Lends Strong Visibility
Record Order Backlog Lends Strong Visibility Backlog up 20% from June 2013 Backlog (€bn) +20% Integration of Satmex EUTELSAT 9A for Video in Europe EUTELSAT 36C for Video in Africa 6.4 HTS payloads of EUTELSAT 3B and EUTELSAT 65 West A for Latam 5.4 5.2 HTS payload of EUTELSAT 172B for Asia Pacific
Slide 7: FY 2013-2014 Revenues at €1,348 M, in Line With Objectives
FY 2013-2014 Revenues at €1,348 M, in Line With Objectives At constant Reported currency and Revenues (year-on-year) excl. Satmex (year-on-year) VIDEO 66.8% €877 M +1.3% = DATA & VALUE- ADDED SERVICES 21.2% €279 M +10.2% +0.8% MULTI-USAGE 12.0% €158 M +8.5% +6.7% Expressed as percentage of turnover
Slide 8: Video: Capacity Constraints For Most of The Year
Video: Capacity Constraints For Most of The Year Lack of available capacity at several key video neighbourhoods during most of the Revenues from Video (€M) year 877 Satmex 15 Specific dynamic in several regions • Higher revenue at key Video neighbourhoods serving fast-growing markets (36° East and 7
Slide 9: Data Services: Continuing Competitive Environment, Positive Momentum for Satmex
Data Services: Continuing Competitive Environment, Positive Momentum for Satmex Continuing competitive Revenues for Data (€M) environment for point-to-point services 190 Satmex 28 Reclassification of certain contracts to other applications to reflect the final usage of the capacity 188 185 162 Termi
Slide 10: Value-Added Services: +36% Driven By Broadband & Mobility
Value-Added Services: +36% Driven By Broadband & Mobility Revenues for Value-Added Services (€M) 154,000 KA-SAT terminals activated at end-June 2014 (91,000 at end-June 2013) Both consumer and professional services performing well 89 Mobile connectivity services for 65 maritime markets contributed t
Slide 11: Multi-usage: Reflecting Outcome of Contract Renewals and New Contracts
Multi-usage: Reflecting Outcome of Contract Renewals, Perimeter Impacts, New Contracts and Reclassifications Positive effects of …. Revenues from Multi-usage (€M) • New contracts 158 • Reclassification from Data Services Satmex 9 revenues in Multi-usage line • Integration of EUTELSAT 172A (acquired
Slide 12: Fill Rate
Fill Rate Operational transponders1 (in txp) Improvement of fill-rate reflecting mainly the integration of Satmex satellites and of Express AT1 in the fleet 996 Fill rate above 80% excluding KA-SAT 858 801 High fill rate at key video Neighbourhoods Fill rate2 75.6% 74.0% 78.7% 30 June 2012 30 June 2
Slide 13: Agenda
Agenda FY 2013-2014 highlights Operational performance Financial overview Outlook -13-
Slide 14: EBITDA Margin in Line With Objective
EBITDA Margin in Line With Objective EBITDA (€M) Increase in operating expenses • Continued tight cost management +3.8% • Increased resources allocated to +4.0% the development of commercial activity • Perimeter effect 1,033 995 957 High level of operating profitability with a 76.7% EBITDA margin EB
Slide 15: Net Income of €303 Million, Net Margin at 23%
Net Income of €303 Million, Net Margin at 23% Extracts from the consolidated income FY 2012-13 FY 2013-14 Change statement in €M1 Revenues 1,284 1,348 +5.0% FY13-14 includes Satmex from 1st January 2014 EBITDA2 995 1,033 +3.8% Increase in D&A reflecting fleet rejuvenation Operating income 682 623 -8
Slide 16: Cash Flow From Operations
Cash Flow From Operations €M 816 778 697 6501 488 4242 % of revenues 57% 40% 64% 51% 58% 31% FY 2011-12 FY 2012-13 FY 2013-14 Cash flow from operations Investments 1 Including acquisition of EUTELSAT 172A for US$228 M (€177 M) and 6% share in Hispasat for €56 M 2 Including €16 M of disposals in equi
Slide 17: Diversified Debt Structure And Strong Liquidity
Diversified Debt Structure And Strong Liquidity Net debt1 (€M) Issuance of a 6-year €930 M bond in December 2013, with a 3,779 2.625% coupon 2,647 800 Term Loan Early repayment of Satmex bonds ($360M) in May 2014 800 Term Loan2 Average weighted maturity of 4.4 years 2,880 Bonds 1,950 Bonds 132 Impro
Slide 18: Net Debt / EBITDA Ratio
Net Debt / EBITDA Ratio As of 30 June 2014 Proforma Reminder: including reported as of (€M) Reported 30 June 2013 Satmex Acquisition1 Net Debt 3,779 3,779 2,647 12-month rolling 1,033 1,071 995 EBITDA Net Debt / 12-m 3.7 3.5 2.7 rolling EBITDA 1 Calculation based on Proforma EBITDA including Satmex
Slide 19: Dividend Payout at The High End of The Range
Dividend Payout at The High End of The Range Net Income, Group share (€M) Dividend per share (€) 355 1.08 1.03 326 1.00 303 Payout Ratio 67% 67% 75% FY 2011-12 FY 2012-13 FY 2013-14 FY 2011-12 FY 2012-13 FY 2013-14 Shareholders Annual General Meeting 7 November 2014 -19-
Slide 20: Agenda
Agenda FY 2013-2014 highlights Operational performance Financial overview Outlook -20-
Slide 21: Our Framework For Profitable Growth
Our Framework For Profitable Growth Three priority growth opportunities Video: our core activity Data and mobility Geographic expansion Expansion driven by Selected Investments geared fast-growing investments in towards highest markets High Throughput growth markets Satellites and Higher definition
Slide 22: A Key Player in the Video Distribution Chain
A Key Player in the Video Distribution Chain Video: 67% of revenues and 84% of backlog Strong long-term market trends Geographic: gearing investments towards high growth markets E115WB E8WB E36C E65W Latam MENA Russia Latam Africa Applications: innovation to secure satellites in future broadcast env
Slide 23: Data and Mobility: First Mover Advantage With HTS
Data and Mobility: First Mover Advantage With HTS High Throughput Satellites and Payloads unlocking data and mobility markets by driving down cost per bit KA-SAT: a landmark broadband programme > 150k In-flight Technology & subscribers connectivity Service partner HTS payloads attracting anchor clie
Slide 24: Latin America, Asia Pacific: Strong Potential Across All Applications
Latin America, Asia Pacific: Strong Potential Across All Applications Latin America Asia Pacific 3 future satellites to EUTELSAT 172B: increase and diversify unmatched Asia Pacific resources footprint 5 satellites with Latin Anchor tenant for in- America footprint in 2016 flight broadband and live T
Slide 25: Driving Value Creation Through Specific Initiatives
Driving Value Creation Through Specific Initiatives Opex Containment Initiative Capex Optimisation Purchase performance plan Increased project selectivity Strong focus on technical, Electric propulsion G&A and IT New launchers Savings to reinforce commercial effort Hosted payloads Profitability main
Slide 26: Outlook: Revenue Growth Acceleration
Outlook: Revenue Growth Acceleration Revenues Around 4.0% growth for 2014-2015, on a proforma basis1 (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 €500 M per annum to June 2017 Capex Note: this in
Slide 27: Questions & Answers
Questions & Answers i> eutelsat COMMUNICATIONS -27-
Slide 28: Fleet Plan: Capacity Focused on Areas of Highest Growth
Fleet Plan: Capacity Focused on Areas of Highest Growth 2015 2016 2017 EUTELSAT EUTELSAT EUTELSAT EUTELSAT EUTELSAT EUTELSAT EUTELSAT 115 West B 9B 8 West B 36C 117 West B 65 West A 172B (Q1 2015) (Q2 2015) (Q3 2015) (Q4 2015) (Q4 2015) (Q2 2016) (H1 2017) 36° East 65° West 14 C, 36 Ku 114.9° West 9
Slide 29: Appendix
Appendix Change (%) 12 months closed 30 june 2013 2014 reported excluding Satmex and at constant currency Video Applications 865.6 877.2 +1.3% = Data & Value-Added Services 252.8 278.5 +10.2% +0.8% Data Services 187.5 189.8 +1.2% - 11.5% Value-Added Services 65.3 88.7 +36.0% +36.3% Multi-usage 145.4
Slide 30: Capex as Defined in The Outlook
Capex as Defined in The Outlook Extracts from the consolidated statement of cash-flows in €M1 FY 2013-2014 Acquisitions of satellites, other property and equipment 440 and intangible assets Repayments of ECA loans and payments under long-term 11 capital leases Capex as defined in the Outlook 451 Not
Slide 31: 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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