SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES Global — Investor Day (2006)
22 slides from SES SA FDR (Class A)'s investor day presentation, 2006
Slide 1: Investor Day 2006
Investor Day 2006 Romain BAUSCH President & CEO
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 SES GLOBAL S.A. (“SES GLOBAL”) nor should it or any part of it form the basis of, or be relied on in connection with, any
Slide 3: Contents
Contents Section One FSS Industry Overview FSS Overview 4 Relative market share 5 Revenues – Geographical Mix 6 Revenues – Product Mix 7 Section Two FSS Industry Comparatives 2005 Revenue development 9 Cost development 10 EBITDA margins 11 Cash conversion rates 12 Per transponder comparatives 13 Net
Slide 4: Section One: FSS Overview
— SESAGLOBAL Section One FSS Overview
Slide 5: FSS Overview – Relative Market Share
FSS Overview – Relative Market Share In MEUR Others 20.2% 22.3% 3.4% 5.3% 16.7% 5.8% 12.3% 14.0% SES Intelsat Eutelsat PanAmSat New Skies Revenues* 1,258.0 936.7 789.9 688.5 192.3 EBITDA 881.0 586.2 622.0 508.6 123.0 Net Income 381.8 (217.7) (31.2) 76.5 (1.1) *Based on a total FSS consolidated marke
Slide 6: FSS Overview – Revenues – Geographical Mix
FSS Overview – Revenues – Geographical Mix* New Intelsat New SES 10.0% 56.6% 11.5% 15.8% North Am erica & Caribbean Europe Asia Pacific 4.8% 12.4% Africa and Middle East 2.4% 44.0% 1.5% Latin Am erica 34.8% 6.4% Undefined / Other 17.0% 9.0% 15.0% 20.0% 18.0% 11.0% 62.0% 4.0% 10.0% 10.0% 10.0% 10.0%
Slide 7: FSS Overview – Revenues – Product Mix
FSS Overview – Revenues – Product Mix New Intelsat New SES 5.0% 5.3% 1.5% 8.4% 16.3% 10.1% 36.5% 11.0% 21.0% 65.6% 45.7% 73.5% 24.0% 21.0% 14.0% Video 31.0% 80.0% 4.0% 63.0% 10.0% 0.4% Netw ork / data 6.5% 3.0% 17.0% Governm ent Services 61.6% 34.0% 9.5% 21.0% Other 7
Slide 8: Section Two: FSS Industry Comparatives 2005
Section Two FSS Industry Comparatives 2005 Source: SES calculation based on publicly available information 8
Slide 9: FSS Industry Analysis – Revenue Development
In MEUR FSS Industry Analysis – Revenue Development 1,500 16.7% 1,258.0 1,200 1,077.8 11.0% 934.8 5.3% 9.7% 900 842.5 789.9 750.4 2.9% 764.7 687.1 667.5 697.2 37.0% 600 1.0% 458.3 391.9 387.9 12.9% 334.4 (13.2%) 300 191.9 170.0 90.3 104.0 SES Global Intelsat Eutelsat PanAm Sat Inm arsat New Skies EM
Slide 10: FSS Industry Analysis – Cost Development
FSS Industry Analysis – Cost Development In MEUR 420.0 377.0 360.0 308.3 291.0 300.0 269.6 240.0 192.7 180.2 175.1 178.6 180.0 155.8 160.4 142.8 140.4 134.8 117.0 120.0 78.0 66.8 60.0 21.2 24.3 0.0 SES Global Intelsat Eutelsat PanAm Sat Inm arsat New Skies Am ericom EMEA AsiaSat • SES Global increas
Slide 11: FSS Industry Analysis – Normalised EBITDA Margins
FSS Industry Analysis – Normalised EBITDA Margins* 100% 77.8% 79.9% 78.9% 80.7% 76.5% 80% 74.2% 73.9% 70.3% 69.5% 71.4% 67.1% 67.7% 64.7% 64.6% 64.3% 65.0% 59.6% 60% 53.6% 40% 20% 0% Eutelsat PanAm Sat SES Global Intelsat Inm arsat New Skies EMEA AsiaSat Am ericom • SES Global decline due to change
Slide 12: FSS Industry Analysis – Cash Conversion Rates
FSS Industry Analysis – Cash Conversion Rates* 150% 132.9% 120% 104.9% 90.4% 93.2% 90% 81.7% 80.7% 75.8% 73.4% 70.2% 70.7% 68.9% 65.1% 60% 30% 0% SES Global New Skies Inm arsat Eutelsat Intelsat PanAm Sat • SES Global efficiently converts EBITDA into cash. • The SES Global decrease in 2005 is princi
Slide 13: FSS Industry Analysis – Per-transponder comparatives
FSS Industry Analysis – Per-transponder comparatives In MEUR 3.50 3.26 Infrastructure revenues per utilised transponder 3.00 Infrastructure operating costs per utilised transponder 2.50 2.05 2.10 2.00 1.50 1.23 1.06 1.08 1.00 0.93 1.00 0.62 0.55 0.39 0.50 0.33 0.27 0.32 0.29 0.29 0.00 SES Global Int
Slide 14: FSS Industry Analysis – Utilisation rates
FSS Industry Analysis – Utilisation rates 100% 80% 76.5% 78.5% 73.7% 73.0% 70.8% 64.0% 62.0% 60% 54.0% 40% 20% 0% Eutelsat SES Global PanAm Sat New Skies Intelsat EMEA Am ericom AsiaSat • Key satellites in Europe (SES EMEA, Eutelsat) have very high fill rates • Excluding Astra 4A, SES Astra / SES Si
Slide 15: FSS Industry Analysis – Net Debt/EBITDA
FSS Industry Analysis – Net Debt/EBITDA* 8.0 6.7 6.3 5.9 6.0 5.5 5.1 4.9 3.7 4.0 2.8 2.7 2.3 2.3 2.3 2.0 0.0 Intelsat PanAm Sat Eutelsat Inm arsat New Skies SES Global Estimated after-merger 2006 Net debt / EBITDA ratios: SES Global / New Skies 2.8 Intelsat / PanAmSat 7.5 • The new Intelsat / PanAmS
Slide 16: FSS Industry Analysis – EBITDA valuation multiples
FSS Industry Analysis – EBITDA valuation multiples* 15 11.6x 12 10.2x 9.8x 8.2x 9 7.7x 6 3 0 Inm arsat SES Global PanAm Sat Eutelsat AsiaSat • SES Global shares trade at highest multiple in the FSS industry • Inmarsat (MSS industry) shares currently trade at 11.6x EBITDA * Enterprise Value / 2005 EB
Slide 17: FSS Industry Analysis – Backlog
In BnEUR FSS Industry Analysis – Backlog 8.0 7.1 * 6.5 * 6.0 6.5 6.0 4.0 3.9 4.0 3.6 3.8 4.0 3.4 3.2 3.1 2.3 2.1 2.0 0.4 0.4 0.3 0.3 0.0 SES Global Eutelsat PanAm Sat Intelsat New Skies EMEA Am ericom AsiaSat • Video-centric FSS companies tend to have the highest backlog • SES Global’s backlog will
Slide 18: FSS Industry Analysis – Return on Invested Capital
FSS Industry Analysis – Return on Invested Capital* 15% 12.2% 11.5% 12% 9.6% 8.5% 8.8% 9% 7.9% 7.0% 6.9% 6.0% 5.7% 6% 4.0% 3% 1.9% 0.6% 0.4% 0% PanAm Sat SES Global AsiaSat Inm arsat Eutelsat New Skies Intelsat • SES Global favourable to most of peer group • Intelsat is weak in comparison, even befo
Slide 19: FSS Industry Analysis – Interest Cover
FSS Industry Analysis – Interest Cover* 6.0 5.00 5.0 4.0 3.0 1.85 2.0 1.33 1.28 1.26 1.0 0.54 0.0 SES Global Eutelsat New Skies Inm arsat PanAm Sat Intelsat • High gearing levels introduced by the Private Equity companies have led to increased interest payments • Intelsat has not generated enough op
Slide 20: FSS Industry Analysis – Dividend Cover
FSS Industry Analysis – Dividend Cover* 1.89 2.00 1.60 1.32 1.20 0.74 0.69 0.80 0.55 0.40 0.00 SES Global New Skies Intelsat PanAm Sat Eutelsat • High dividend payments introduced by the Private Equity companies • For Intelsat, PanAmSat and Eutelsat, dividends paid have exceeded residual cash flow •
Slide 21: Summary – FSS industry comparatives 2005
Summary – FSS industry comparatives 2005 Revenue Increase in revenues across FSS industry; SES Global showing highest rate of growth Many FSS companies have been affected by one-time restructuring costs, but the general industry Costs trend is towards reduction of recurring costs. Whilst SES is show
Slide 22: Conclusion and outlook
Conclusion and outlook ¾SES Global is financially well-positioned to continue as the leader in the FSS industry ¾Post-merger with PanAmSat, “New” Intelsat will be forced to focus on debt reduction and exit of shareholders ¾It will be interesting to see how Eutelsat will develop from their current po