Eutelsat Communications Sa · EURONEXT:ETL

Eutelsat Communications Sa — Q1 2016-17 Earnings Presentation

19 slides from Eutelsat Communications Sa's earnings presentation, Oct 27, 2016

  1. Slide 1: First Quarter 2016-17 Revenues

    FIRST QUARTER 2016-17 REVENUES 27 October 2016

  2. Slide 2: Agenda

    Agenda 1 Business highlights 2 Q1 2016-17 performance 3 Outlook 2

  3. Slide 3: Highlights

    Highlights Procurement of EUTELSAT 5 West B satellite with significant capex savings in the context of a design-to cost approach Solid renewals with USG confirming a stabilisation of trends in Government Services New contracts signed for airline mobility demonstrating strong positioning of KA-SAT La

  4. Slide 4: Agenda

    Agenda 1 Business highlights 2 Q1 2016-17 performance 3 Outlook 4

  5. Slide 5: Q1 Revenues: €385m, +0.7% like-for-like

    Q1 Revenues: €385m, +0.7% like-for-like1 REVENUE REVENUES CHANGE (%) CONTRIBUTION2 (€m) LIKE-FOR-LIKE REPORTED Video 63% 224 -1.3% -2.2% Data 16% 57 -2.8% -3.3% Services Value-Added 8% 29 +8.3% -1.0% Services Government Services 13% 47 -10.7% -11.2% Other revenues 27 +62.9% +61,8% Total revenues 385

  6. Slide 6: Video

    Video REVENUES (€M) ► Revenues of €224m, down 1.3% y-o-y like-for-like1 ► Positive impact of incremental capacity 944 launched last year • EUTELSAT 8 West B in MENA Q4 236 • EUTELSAT 36C in SSA ► Lower revenues at HOTBIRD following Q3 239 rationalisation of distribution ► Lower revenues for Professi

  7. Slide 7: Data Services

    Data Services REVENUES (€M) ► Revenues of €57m, down 2.8% y-o-y like-for-like1 230 ► Full-quarter contribution of the Ka- band payload on EUTELSAT 65 West A Q4 58 • HTS Payload fully sold since entry into service in May 2016 Q3 54 ► End of contract for Ka-band on EUTELSAT 3B in December 2015 Q2 59 ►

  8. Slide 8: Value-Added Services

    Value-Added Services REVENUES (€M) ► Revenues of €29m, up 8.3% y-o-y like- for-like1 • Sale of Wins/DHI. Impact of c.€2.5m ► KA-SAT: 179,000 terminals activated at 108 30 Sept. 2016 27 • ARPU and revenue trends well oriented Q4 ► Russian broadband service launched 25 on EUTELSAT 36C Q3 • Distributio

  9. Slide 9: Government Services

    Government Services REVENUES (€M) ► Revenues of €47m, down 10.7% y-o-y like-for-like1 200 ► Revenue trend reflecting mainly the effect of lower renewals of last 44 fiscal year Q4 ► Renewal rate above 90% in Fall 50 round Q3 • Considerable improvement vs. Spring round (65%) 53 Q2 • Broadly stable vol

  10. Slide 10: Backlog and Fill Rate

    Backlog and Fill Rate BACKLOG (€BN) OPERATIONAL AND LEASED TRANSPONDERS 1,328 1,327 1,175 6.0 912 942 948 5.6 5.4 Video 83% 85% 85% 30 Sept. 2015 30 June 2016 30 Sept. 2016 30 September 30 June 2016 30 September Fill 77.6% 70.9% 71.5% 2015 2016 rate Operational transponders leased transponders ► Bac

  11. Slide 11: Agenda

    Agenda 1 Business highlights 2 Q1 2016-17 performance 3 Outlook 11

  12. Slide 12: Strategic roadmap adapted to new market conditions

    Strategic roadmap adapted to new market conditions STEP 1 STEP 2 GROW CASH FLOW GROW TOPLINE 2017-19 2019-2025+ Maximise free-cash-flow generation Build on our core Capture longer of existing businesses video business term potential to accelerate growth in Connectivity Financial and Optimizing opera

  13. Slide 13: Strategic roadmap: Main achievements in Q1

    Strategic roadmap: Main achievements in Q1 Capex optimisation: EUTELSAT 5 WB Financial and procured with significant savings operational measures Asset disposals: Wins /DHI , Hispasat put Maximise STEP 1 option exercised free-cash-flow generation Optimizing Video: HOTBIRD “rationalisation” completed

  14. Slide 14: Design-to-cost benefits: EUTELSAT 5 West B case study

    Design-to-cost benefits: EUTELSAT 5 West B case study DESIGN-TO-COST LAUNCH Improved match of Shared launch in a coverage with stacked customer configuration on a requirements Proton rocket Lower cost of payload Lower launch cost Smaller platform Lower insurance cost >30%1 in capex savings Improved

  15. Slide 15: KA-SAT ramping-up on aero Mobility

    KA-SAT ramping-up on aero Mobility ► Two new contracts signed using capacity on KA-SAT ► Finnair to connect entire Airbus A320 series short-haul fleet • ~40 aircrafts ► SAS to connect its short and medium-haul fleet • ~80 aircrafts ► Eutelsat provides satellite capacity, ViaSat is the prime contract

  16. Slide 16: Financial outlook confirmed

    Financial outlook confirmed REVENUES ► FY 2016-17: Between -3% and -1% (At constant currency, and perimeter ► FY 2017-18: Broadly stable excl. non recurring revenues) ► FY 2018-19: Slight growth EBITDA MARGIN ► FY 2016-17 to FY 2018-19: above 75% ► FY 2016-17 to FY 2018-19: CAPEX Average of €420m1 p

  17. Slide 17: Appendices

    APPENDICES a eutelsat

  18. Slide 18: Fleet plan

    Fleet plan EUTELSAT EUTELSAT EUTELSAT AFRICAN Name 117 WB 172 B EUTELSAT 7C 5 WEST B BBAND. SATELLITE Position 116.8° West 172° East 7°East 5°West TBD TBD Launched H1 2017 H2 2018 2018 2019 2019 Launch 15 June 2016 Manufacturer Launcher TBD TBD TBD LATAM Asia-Pacific MENA Europe Flexible SSA Coverag

  19. Slide 19: 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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