SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — Investor Day (May 2007)
15 slides from SES SA FDR (Class A)'s investor day presentation, May 8, 2007
Slide 1: Investor Day 2007 - Finance
Investor Day 2007 Mark Rigolle FINANCE 1 1
Slide 2: Introduction
Introduction S SES is a substantial cash generator S Our development has largely been funded out of cash flow S Creating flexibility for delivering shareholder value ¾ Further investment in the business ¾ Growing our dividend payments ¾ Share buybacks and cancellation S Opportunities remain for exte
Slide 3: Overview: FSS industry in 2006 (1)
Overview: FSS industry in 2006 (1) Recurring Revenue Development ¾ Profitability and growth more important than size 2,000 0.9% 10.1% ¾ SES leads the peer group with a 10.1% recurring 1,646.0 1,630.6 1,564.3 revenue growth YoY. At same scope and constant 1,600 exchange rate this growth remains domin
Slide 4: Overview: FSS industry in 2006 (2)
Overview: FSS industry in 2006 (2) Operating cash flow & cash conversion (2) ¾ SES cash conversion rates expected to remain 1,060 high 1,000 919 ¾ SES increased its cash conversion by 16% to 98% 719 699 in 2006. This large increase reflects the strong underlying performance aided by one-offs in ’06
Slide 5: Overview: FSS industry in 2006 (3)
Overview: FSS industry in 2006 (3) Return on Tangible Capital ¾ SES continues to grow returns 10% 7.9% 7.5% ¾ SES stands best in class. With an RoTC of 7.9%, 8% increased from 7.5% in 2005, SES maintains its 6.2% 6.0% leading position in the peer group. 5.0% 5% 4.0% ¾ Strength of returns validates i
Slide 6: Improving capital efficiency
Improving capital efficiency S Several factors, not just increased debt... S Satellite manufacturing improvements ¾ Longer life ¾ Larger payloads leading to lower cost per transponder year and improved profitability S Larger satellite fleet offers more optimisation opportunities ¾ Optimised replac
Slide 7: Satellite procurement improvements
Satellite procurement improvements S Larger payloads and longer design lives ¾ ASTRA 1A had 16 transponders and a 10-year design life ¾ ASTRA 1KR has 32 transponders and a 15-year design life S Today’s satellites carry more fuel for orbital manoeuvres ¾ Allowing satellite operations potentially to b
Slide 8: Optimisation of a larger fleet
Optimisation of a larger fleet S Co-located satellites can enhance financial returns through optimisation of satellite payload configuration ¾ Potential for reduction of number of satellite replacements S Greater flexibility with a larger fleet ¾ Older, fully depreciated satellites can seed new mark
Slide 9: Bulk satellite / launcher agreements
Bulk satellite / launcher agreements S In the best interests of both operator and supplier S Multi-satellite agreements will support a viable, high-quality manufacturing industry S Improved procurement process ¾ Reducing manufacturing time ¾ Diminishing risk of manufacturing delays ¾ Achieving econo
Slide 10: Space Insurance
Space Insurance S While we insure 100% of launch risk... S We have implemented a policy of retaining a proportion of in-orbit risk ¾ Based on our excellent in-orbit performance ¾ Up to 35% of insured value is self-insured ¾ Exposure up to a maximum of EUR 50 million per satellite ¾ Self-insurance is
Slide 11: Capital Expenditure - normalisation
Capital Expenditure - normalisation S Satellite programmes comprise three main elements: ¾ Satellite ¾ Launcher ¾ Insurance S The average aggregate cost of these elements is about USD 225 m S With a fleet of 36 satellites having an average design life of 15 years ¾ Normalised replacement requirement
Slide 12: Replacement capex reduces
Replacement capex reduces Capex schedule 365 ~580 ~540 ~280 ~30 6 May 2007: 629 577 574 255 137 280 401 405 365 7 353 306 316 - 94 - 360 - 292 - 187 374 281 - 277 288 298 279 144 177 MEUR 28 28 72 20 A 2006 T 2007 T 2008 T 2009 T 2010 T 2011 T 2012 T 2013 Repl - Committed Repl - Uncommitted Incremen
Slide 13: Financial Strategy
Financial Strategy S An absolute focus on value delivery S Investment ¾ Organic opportunities and acquisition opportunities S Dividends ¾ Consistently growing the dividend per share (2007: 44 cent.) S Share buybacks ¾ Will continue to be an application for free cash flow ¾ Supporting our target leve
Slide 14: Conclusion
Conclusion S SES is a cash generating “machine” S Further improvements to come ¾ organic and acquisition-led growth ¾ enhanced operating and capital efficiencies S Building on today’s strong base 14
Slide 15: Your Satellite Connection to the World
Your Satellite Connection to the World