Eutelsat Communications SA · EURONEXT:ETL
Eutelsat Communications SA — FY2008-09 Earnings Presentation
32 slides from Eutelsat Communications SA's earnings presentation, Jul 30, 2009
Slide 1: Eutelsat Communications Full Year 2008-2009 Presentation
Eutelsat Communications Full Year 2008-2009 Presentation Jean-Paul Brillaud Giuliano Berretta Catherine Guillouard Deputy CEO Chairman and CEO CFO 1
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 Eutelsat Communications nor should it or any part of it form the basis of. or be relied on in connection with any contract or
Slide 3: Agenda
Agenda 1. FY 08-09 overview 2. Long-term strategy leveraging key assets of the Group 3. Growth across all activities 4. Another year of strong financial performance 5. Fully equipped to ensure long-term profitable growth 3
Slide 4: FY 08-09: Excellent Key Numbers
FY 08-09: Excellent Key Numbers m€ + 7.2% + 5.9% Strong commercial performance 940.5 877.8 > All activities showing growth > 3 191 TV channels and interactive 2006-2007 2007-2008 2008-2009 services, of which 86 HDTV channels m€ + 6.7% + 6.6% EBITDA*: +46.4m€ increase 742.1 > EBITDA margin of 78.9% 6
Slide 5: Agenda
Agenda 1. FY 08-09 overview 2. Long-term strategy leveraging key assets of the Group 3. Growth across all activities 4. Another year of strong financial performance 5. Fully equipped to ensure long-term profitable growth 5
Slide 6: A long-term vision combining growth and profitability
A long-term vision combining growth and profitability Maximising Revenue by Transponder Ensuring Long-term Growth Video Applications Innovation New frequency Value Added Through (consumer broadband, resources, Hot Neighbourhoods Services info mobility, 3D) (Ka & S band) 6
Slide 7: Access to unique portfolio of orbital slots
Access to unique portfolio of orbital slots 20 slots in operation to sustain solid growth opportunities Successful development of 9°East and 7°West 15°W 45°E 70°E W W W W W W W W E E E E E E E E E E E E E E E E E E E E E E E E E 15oc 14oc 12.5o 11o 8o 7o 5o 1o 3o 4o 5o 7o 9o 10° 13° 16° 19o2 21.5o 2
Slide 8: Accessing additional resources to capture new growth opportunities
Accessing additional resources to capture new growth opportunities Mobile Television S BAND Interactive services associated with Galileo Broadband access Broadband access HDTV // 3D HDTV 3D contribution contribution Optimised for Optimised for Local/regional TV Local/regional TV Point-to-point Point
Slide 9: Video strategy addressing growth drivers
Video strategy addressing growth drivers Digital TV & Managed Video Services HDTV 3D Cascading satellites and Transforming video HOT BIRDTM migrating TV channels to positions develop new video Into “Hot Spots” neighbourhoods over target regions 9
Slide 10: Consolidating our leading video neighbourhoods over EMEA
Consolidating our leading video neighbourhoods over EMEA Cascading satellites and Developing regional channels to strenghten hot spots video neighbourhoods 9° E 245 TV 96% 13°E EUROBIRDTM 9A (ex HB7A) Europe N°1 for TV in @ 9°E: + 18 Tpx Europe with over 16° E 376 TV 7.4% 1,000 channels EUROBIRDTM 1
Slide 11: Value Added Services to enter into new applications
Value Added Services to enter into new applications 2003 2008 Beyond 2009 D-STAR TOOWAY TM Triple Play Services Professional Consumer Broadband Broadband Info Mobility (S-Band) KA-SAT Multibeam satellites Ground network & Using existing in Ku (EUROBIRDTM 3) multibeam coverage & Ka (HOT BIRDTM 6) Ku
Slide 12: Expanding from professional to consumer value added services
Expanding from professional to consumer value added services D-STAR ToowayTM Professional broadband Consumer broadband New frequency band Partnerships with 46 KA- BAND For professionals in distributors in 22 countries Consumer broadband regions with low Selected by Swisscom, Local and regional TV te
Slide 13: Agenda
Agenda 1. FY 08-09 overview 2. Long-term strategy leveraging key assets of the Group 3. Growth across all activities 4. Another year of strong financial performance 5. Fully equipped to ensure long-term profitable growth 13
Slide 14: Steady growth of Video Applications +4.7%
Steady growth of Video Applications +4.7% New capacities in service during H2 FY08-09 m€ Solid demand from Second Continent +4.7% Price increase effect at the HOT BIRDTM position Sharp increase of HDTV to 86 channels (+75%) 649.4 679.7 Strengthening the attractiveness of video neighbourhoods with a
Slide 15: N°1 in EMEA with 9 video neighbourhoods
N°1 in EMEA with 9 video neighbourhoods Ongoing take-up of DTH over Second Continent Significant take-up of HDTV across all regions : + 75% with 86 HDTV Success of HOT BIRDTM Twin position @9°East Middle East, Middle East, 9°E 9°E Balkans, Balkans, Russia, Russia, North Africa North Africa Europe Eu
Slide 16: Robust expansion of Data and Value-Added Services
Robust expansion of Data and Value-Added Services Data Services m€ > Strong demand to interconnect Europe, Africa, Middle East, Central Asia +13.4% > Corporate networks, IP backbone, GSM backhaul +11.9% Value-Added Services +13.9% > Driven by entreprises in emerging markets > Progressive roll out of
Slide 17: Multiusage: significant growth
Multiusage: significant growth m€ +29.8 %* Conclusion of new contracts and renewal at higher prices Appreciation of the US dollar 75.4 58.1 against the euro June 08 June 09 17 * At a constant exchange rate, the growth rate would have been 18%
Slide 18: Backlog up by 15.5% to more than 3.9 Bn€
Backlog up by 15.5% to more than 3.9 Bn€ Increased visibility provided by backlog: Weighted average residual life of contracts: 7.8 years +15.5 % 3.9 bn€ 3.4 bn€ Other Video 93% 92% June 08 June 09 New and renewed contracts Exceptional long-term visibility on revenues and cash flows 18
Slide 19: +55 transponders leased
Improved operational flexibility Fill rate down to 88.8% Operating transponders Fill rate +55 transponders leased Leased transponders 589 88.8% 505 501 93.4% 80% 468 523 404 June 2007 June 2008 June 2009 In-orbit resources substantially increased in H2 19
Slide 20: Agenda
Agenda 1. FY 08-09 overview 2. Long-term strategy leveraging key assets of the Group 3. Growth across all activities 4. Another year of strong financial performance 5. Fully equipped to ensure long-term profitable growth 20
Slide 21: All financial metrics up
All financial metrics up Condensed income statement, in m€ FY 2007-2008 FY 2008-2009 Change% Revenues 877.8 940.5 +7.2% Cost evolution: EBITDA* 695.7 742.1 +6.7% Increase of commercial activity Increase of professional tax Include 25m€ income for the sale of some Operating income 378.8 471.6 +24.5%
Slide 22: Financial structure strengthened
Financial structure strengthened m€ + 15.6% 69.6% + 7.4% 64.5% 63.6% Continued strong net operating cash flow generation 654.7 566.6 Includes 25m€ income for the 527.7 sale of some rights in Hispasat Includes 21.6m€ of tax reimbursement Net debt to EBITDA down to 3.13x. 3.52 3.48 3.13 June 07 June 0
Slide 23: Substantial generation of net cash flow exceeding capex requirements
Substantial generation of net cash flow from operating activities exceeding capex requirements m€ 654.7 527.7 566.6 422.5 416.6 350.1 FY 2006-2007 FY 2007-2008 FY 2008-2009 Net cash flow from operating activities Capital expenditure Net cash flow from operating activities consistently above 60% of r
Slide 24: Solid financial structure
Solid financial structure m€ Net operating Shareholders’ Capital Insurance Financial Acquisition of Others cash flow distribution expenditure proceeds expenses, net minority for W2M interests 2 422 (11.1) 654.7 (141.7) (7.5) (102.8) 2 326 (416.6) 120.5 June 2008 June 2009 3.48x Net debt / EBITDA 3.1
Slide 25: Efficient debt structure
Efficient debt structure 2,422 m€ 2,326 m€(1) ►Average cost of debt(2): 4.15 % ►Interest rate hedging: 75 bp – Eutelsat SA debt largely hedged 75 bp 1,607 1,611 until maturity in November 2011 – Eutelsat Communications’ drawn debt fully hedged until maturity in 815 June 2013 70 bp 715 701 bp ►Undraw
Slide 26: Attractive distribution policy
Attractive distribution policy 0.66€ 0.58€ 0.60€ FY 2006-2007 FY 2007-2008 FY 2008-2009 Regular dividend growth Pay out ratio of 58,6% Proposed dividend of 0.66€ per share 26
Slide 27: Agenda
Agenda 1. FY 08-09 overview 2. Long-term strategy leveraging key assets of the Group 3. Growth across all activities 4. Another year of strong financial performance 5. Fully equipped to ensure long-term profitable growth 27
Slide 28: Significant achievements of the deployment plan
Significant achievements of the deployment plan Satellites to launch 9°E 13°E Satellites launched 7°W 4°E 10°E 16°E Satellites relocated AB4A W1 EB9A W2A HB9 EB16 15°W 70.5°E TELSTAR AB14 AB1 AB2 AB3 W3A W2 W6 EB2 EB1 EB3 W4 & SESAT 2 W5 12 HB 6 SESAT 1 HB 8 AB7 W3C KaSAT W3B W7 Eurobird 4 and Eurob
Slide 29: Upward revision of objectives
Upward revision of objectives 2009 - 2010: above 1Bn€ Revenue 2009 - 2012: CAGR of 7% 2009 - 2010: >780m€ EBITDA margin 2009 - 2012: constantly in the range of 77% CAPEX 2009 - 2012: 450 m€/year on average Between 50% and 75% of Group share of net result Assemblée Générale – 9 novembre 2007 29
Slide 30: In summary, Eutelsat is …
In summary, Eutelsat is … A key infrastructure in the digital economy (telecommunications, broadcasting and broadband) Visibility 30 years of uninterrupted growth The 3rd largest operator of Fixed Satellite Services worldwide Profitability Growth The world No1 in terms of profitability Structurally
Slide 31: Annexes
Eutelsat Communications Annexes 31
Slide 32: Shareholder base
Shareholder base Public Abertis 42.89% Telecom 31.43% FSI* 25.68% 32 * Affiliate to Caisse des Dépôts & Consignations
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