SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — Investor Day (May 2009)
21 slides from SES SA FDR (Class A)'s investor day presentation, May 19, 2009
Slide 1: Investor Day 2009 - SES Finance
Investor Day 2009 19th May, London SES - Finance Mark Rigolle SES proprietary information - Not to be copied without permission
Slide 2: Disclaimer / “Safe Harbor” Statement
Disclaimer / “Safe Harbor” Statement S This presentation does not, in any jurisdiction, and in particular not in the U.S., constitute or form part of, and should not be construed as, any offer for sale of, or solicitation of any offer to buy, or any investment advice in connection with, any securiti
Slide 3: Agenda
Agenda Part 1: Financial Strategy Part 2: Investment Approach Part 3: Satellite Sector in 2009 Part 4: Share Price Development Part 5: CapEx Part 6: Financing Part 7: Conclusion 3 SES proprietary information
Slide 4: SES’ Financial Strategy
SES’ Financial Strategy S Growing our business through profitable investment opportunities • organic development of new capacity • acquisitions are also considered S Increasing the dividend by a minimum 10% per annum • EUR 0.66 per A share paid in April 2009 • prospective base yield of 5.2%* S Addin
Slide 5: SES Obtains Outstanding and Solid Profitability
Investor days 2009 SES Obtains Outstanding and Solid Profitability SES Group profitability development 35.0% Return on avg. Equity Return on tang. Assets 30.0% 32.2% Drivers of expansion: 25.0% S Organic growth 20.0% 22.2% S NEW SKIES acquisition 20.0% 18.9% S GE split-off transaction 15.0% 16.1% 15
Slide 6: Prudent Investment Approach
Prudent Investment Approach S Demanding investment criteria • All satellite projects must exceed IRR hurdle rates of 10-15% – minimum reflects degree of perceived risk • Satellite capacity pre-fill at launch is typically 25%-plus – ramping up to full utilisation over first three years of operations
Slide 7: Strong Cash Generation
Strong Cash Generation EUR million Reported Infrastructure Revenue and EBITDA 2004 – 20081 Infrastructure Revenue Infrastructure EBITDA Constant EUR/USD Constant EUR/USD CAGR: 9.1% CAGR: 9.4% 1,324 1,335 1,372 1,077 1,090 1,120 1,068 967 860 781 EBITDA margin ► 80.9% 80.4% 81.2% 81.5% 81.6% 2004 200
Slide 8: Satellite Sector in 2008 (1 of 6)
Satellite Sector in 2008 (1 of 6) Recurring Recurring Revenue Revenue Development Development –– Constant Constant FX FX Recurring Recurring EBITDA EBITDA Margins Margins 100% 1,800 In MEUR 6.0% 8.3% 1,600 81.5% 81.6% 1,620 1,599 80% 1,400 1,528 80% 79.1% 1,476 76.1% 74% 71% 70.1% 1,200 69% 67.9% 60
Slide 9: Satellite Sector in 2008 (2 of 6)
Satellite Sector in 2008 (2 of 6) CapEx CapEx as as aa % % of of recurring recurring revenues revenues Cash Cash conversion conversion rate rate (1) (1) 50% 140% 45.5% 120% 129% 40% 42% 43% 38.3% 100% 109% 37.1% 37% 99% 98.8% 30% 94.3% 80% 88.0% 28% 29.6% 84% 25% 20% 60% 67.9% 63.5% 17.9% 40% 10% 35
Slide 10: Satellite Sector in 2008 (3 of 6)
Satellite Sector in 2008 (3 of 6) Backlog Backlog Backlog Backlog in in Years Years 4.5 7 BnEUR 4.0 4.3 years 6 3.8 years 3.8 years 6.0 3.5 3.7 years 3.6 years 5.8 5.9 5.9 3.6 years 5 3.0 4 2.5 3.6 3.5 2.0 3 1.5 2 1.0 1 0.5 0.0 SES Intelsat Eutelsat Eutelsat Intelsat SES S SES: stable backlog provid
Slide 11: Satellite Sector in 2008 (4 of 6)
Satellite Sector in 2008 (4 of 6) Utilisation Utilisation rate rate Return Return On On Tangible Tangible Assets Assets (1) (1) 100% 25% 97.4% 85% 20% 82.7% 20.0% 20.7% 75% 79.0% 76% 77% 19% 15% 16% 16.7% 16% 50% 10% 11% 11.9% 25% 5% 0% 0% Eutelsat Intelsat SES SES Eutelsat Intelsat Inm arsat S SES:
Slide 12: Satellite Sector in 2008 (5 of 6)
Satellite Sector in 2008 (5 of 6) Net Net Debt Debt // EBITDA EBITDA Net Net Interest Interest Cover Cover (1) (1) 8x 4.5x 8.0x 7.8x 4.4x 7x 7.4x 4.0x 4.2x 4.2x 6.7x 6x 3.5x 3.4x 3.4x 3.0x 5x 2.5x 2.8x 2.6x 4x 2.0x 3x 3.5x 3.3x 3.2x 3.1x 1.5x 3.0x 2.9x 2x 1.0x 1x 0.8x 0.8x 0.5x 0.7x 0x 0.0x Intelsat
Slide 13: Satellite Sector in 2008 (6 of 6)
Satellite Sector in 2008 (6 of 6) Payout Payout Ratio Ratio and and Dividend Dividend Growth Growth EV EV // EBITDA EBITDA 14x 80% Dividend per share growth yoy 12x 11.8x 70% 68.1% 10x 60% 9.7x 9.6x 9.3x 60.2% 50% 8x 8.2x 7.9x 40% 6x 39.0% -18.1% -14.2% -15.1% 30% 4x 20% 10.0% 5.0% 2x 10% 3.4% 0% 0x
Slide 14: SES’ Share Price Development
SES’ Share Price Development 110% SES CAC 40 CAC IT 100% 90% 80% 76% 70% 62% 60% 56% 50% Similar Trends Resilient 40% Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 S FSS stocks are seen as defensive positions in the current economic e
Slide 15: Capital Expenditure
Capital Expenditure S Enhancing the economic return of a satellite project • co-located satellites replaced by a smaller number of spacecraft, reducing overall capital requirements • new satellites designed with greater operational flexibility, permitting multiple missions • hosted payloads improve
Slide 16: Satellite investments – Normalisation
Satellite investments – Normalisation CapEx schedule 24 April 2009 *: 681 ~763 ~456 ~298 Æ Unchanged! 774 681 EUR million 250 Range for normalised 578 534 replacement CapEx: 297 11 118 206 405 122 323 2 360 513 384 236 171 338 318 92 80 171 92 92 80 A 2008 FC 2009 T 2010 T 2011 T 2012 T 2013 T 2014
Slide 17: Secured Financing
Secured Financing S Recent transactions have secured SES’ financing needs and have thus significantly enhanced the debt maturity profile S EUR 2 billion Syndicated Facility concluded in April 2009 • EURIBOR + 235-275 bps, amortising to EUR 1bn in Year 3 S EUR 200 million EIB loan also concluded in A
Slide 18: Maturity Profile – Before and After April
Maturity Profile – Before and After April 1,600 1,360 1,400 47 1,200 375 1,000 M 774 Before April E 800 U R 600 124 624 124 437 938 400 47 324 650 300 124 500 143 200 77 200 143 90 77 0 2009 2010 2011 2012 2013 2014 2015 Uncommitted EUR Bonds Bilaterals Syndicated Loan Schuldschein USPP 1,568 1,600
Slide 19: Credit Rating
Credit Rating S SES policy is to remain investment grade at BBB / Baa2 or better S Credit rating has been BBB / Baa2 or better since initiation in 2001 A/A2 A-/A3 BBB+/Baa1 SES BBB/Baa2 S&P SES BBB-/Baa3 Moody's BB+/Ba1 Eutelsat S&P BB/Ba2 Eutelsat BB-/Ba3 Moody's B+/B1 Intelsat S&P B/B2 Intelsat B-
Slide 20: Executive Remuneration
Executive Remuneration S Compensation Philosophy is to foster performance and support long-term value creation • Benchmarked to Information Technology and Communication sector • Remuneration balanced between base salary, bonus and long term equity S Bonus Plan • Measured against: financial performan
Slide 21: Conclusion
Conclusion S SES has a favourable revenue growth outlook S Maintained focus on cost control and EBITDA enhancement S Substantial contract backlog of EUR 5.9 billion S Soundly financed, with improving debt maturity profile S Progressive dividend policy S Well positioned to support the group’s busines