Eutelsat Communications Sa · EURONEXT:ETL

Eutelsat Communications Sa — Q3 2015-16 Earnings Presentation

18 slides from Eutelsat Communications Sa's earnings presentation, May 12, 2016

  1. Slide 1: Third Quarter 2015-16 Revenues

    THIRD QUARTER 2015-16 REVENUES May 12, 2016

  2. Slide 2: Agenda

    Agenda 1 Recent highlights 2 Q3 2015-16 3 Outlook 2

  3. Slide 3: Recent highlights

    Recent highlights ► Q3 revenues up 4.2% reported and 1.1% at constant currency ► Launch of EUTELSAT 9B (Europe) in January and EUTELSAT 65 West A (LATAM) in March ► Entry into service of EUTELSAT 36C (Russia and SSA) in February, EUTELSAT 9B in March and EUTELSAT 65 West A in May ► Procurement of al

  4. Slide 4: Agenda: Q3 2015-16

    Agenda 1 Recent highlights 2 Q3 2015-16 3 Outlook 4

  5. Slide 5: Q3 Revenues: €383m, +4.2% reported, +1.1% like-for-like

    Q3 Revenues: €383m, +4.2% reported, +1.1% like-for-like1 REVENUE REVENUES3 CHANGE (%) CONTRIBUTION2 (€m) AT CONSTANT REPORTED CURRENCY Video 65% 239 +4.9% +6.1% Data 15% 54 -12.6% -6.3% Services Value-Added 7% 25 +7.7% +8.0% Services Government Services 13% 50 -7.4% +0.5% 1 At constant currency and

  6. Slide 6: Video

    Video REVENUES (€M) ► Q3 Revenues of €239m, up 4.9% at constant currency1 ► Entry into service of: • EUTELSAT 8 West B in October Q4 • EUTELSAT 36C mid-February 235 ► Higher revenues at Fransat Q3 Q3 239 225 ► Lower revenues at HOT BIRD and for Professional Video Q2 225 Q2 240 ► 6,156 channels at en

  7. Slide 7: Data Services

    Data Services REVENUES (€M) ► Q3 Revenues of €54m, down 12.6% y-o-y at constant currency1 • -8% excluding reclassification of revenues to Government Services Q4 ► End of contract for Ka-band on 61 EUTELSAT 3B in December Q3 Q3 54 ► Lower revenues at 53° East post 58 rationalisation of capacity in Ma

  8. Slide 8: Value-Added Services

    Value-Added Services REVENUES (€M) ► Q3 Revenues of €25m, up 7.7% y-o-y at constant currency1 ► Positive contribution from KA-SAT ► 185,000 terminals activated on Q4 28 KA-SAT at 31 March 2016 • Continued high loading of some beams. 25 Q3 23 Q3 • Proactive yield management • Rationalization of custo

  9. Slide 9: Government Services

    Government Services REVENUES (€M) ► Q3 Revenues of €50m, down 7.4% y-o-y at constant currency1 • Down 13% excluding impact of reclassifications from Data Services ► Early termination of a contract with a distributor in Q1 Q4 55 ► Ongoing impact of lower renewals Q3 50 with US DoD Q3 49 ► Re-compete

  10. Slide 10: Backlog

    Backlog BACKLOG (€BN) ► Backlog of €5.9bn, slightly up on end-December ► New contracts more than 6.4 offsetting backlog consumption 5.8 5.9 • Multi-year renewal of capacity at 36° East with Russian customers ► 4.0 years of revenues Video 84% 83% 83% ► Video stable, accounting for 83% 31 March 2015 3

  11. Slide 11: Fill rate

    Fill rate OPERATIONAL AND LEASED TRANSPONDERS ► Operational transponders up by 17 Q-o-Q • Entry into service of EUTELSAT 9B 1,268 1,285 and EUTELSAT 36C 1,181 916 938 929 ► Leased transponders down by 9 Q-o-Q • Contract with Multichoice in SSA • Reduction of capacity on Telstar 12 • Non-renewal of a

  12. Slide 12: Agenda: Outlook

    Agenda 1 Recent highlights 2 Q3 2015-16 3 Outlook 12

  13. Slide 13: Fleet plan

    Fleet plan EUTELSAT EUTELSAT EUTELSAT EUTELSAT EUTELSAT EUTELSAT AFRICAN Name 36 C 9B 65 WA 117 WB 172 B BBAND. 7C SATELLITE 36° East 9° East 65° West 116.8° 172° East 7°East TBD TBD Position West Launch Launched Launched Launched Q2 2016 H1 2017 Q3 2018 2019 2019 Manufacturer Federal TBD TBD TBD La

  14. Slide 14: Progressive deployment of capacity

    Progressive deployment of capacity 31/12/2015 31/12/2016 31/12/2017 October EUTELSAT 115 WB October EUTELSAT 8 WB February EUTELSAT 36C March EUTELSAT 9 B May EUTELSAT 65 WA EUTELSAT 117 WB +c.7m Q2 +c.4m EUTELSAT 172B H1 Eutelsat FY 2015-16 2016-17 2017-18 In service Upcoming launch X Approx launch

  15. Slide 15: Deteriorating market conditions

    Deteriorating market conditions ► H1 2015-16 affected by • Loss of HTS contract on EUTELSAT 3B • Slowdown of growth on KA-SAT ► H2 impacted by recent development of several headwinds • Slower ramp-up of new capacity as a result of worse than expected environment in LATAM where much of recent capacit

  16. Slide 16: Financial outlook adjusted in consequence

    Financial outlook adjusted in consequence REVENUES ► 2015-16: Broadly flat (versus +2%) (At constant currency and perimeter ► 2016-17: between -3% and -1% (versus +4-6%) excl. non recurring revenues) EBITDA ► 2015-16: around 76% ► 2016-17: around 75% MARGIN (versus ‘above 76.5%’ for both years) ► Un

  17. Slide 17: Questions & Answers

    QUESTIONS & ANSWERS

  18. Slide 18: 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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