SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — Investor Day (2010)
25 slides from SES SA FDR (Class A)'s investor day presentation, 2010
Slide 1: Investor Day 2010
Investor Day 2010 Andrew BROWNE Chief Financial Officer, SES SES proprietary information - Not to be copied without permission
Slide 2: Agenda
Agenda Financial Overview – FY 2009 • Strong Financial Performance • Balance sheet review and analysis Q1 2010 – Financial overview Profitability and Financial Returns Financial drivers to Growth • Backlog roll-out • Transponder availability and utilisation • Financing and Liquidity • Leverage • Cap
Slide 3: Financial Overview – FY 2009
Financial Overview – FY 2009 SES proprietary information 3
Slide 4: Financial Highlights – FY 2009
Financial Highlights – FY 2009 Reported revenue of EUR 1,702 million (+4.4%) • Recurring revenue of EUR 1,683 million (+1.7%) • Recurring Infrastructure revenue grew 3.7% Reported EBITDA of EUR 1,190 million (+8.1%) • Recurring EBITDA of EUR 1,220 million (+5.2%) • Recurring EBITDA margin improved t
Slide 5: Strong Financial Performance
Strong Financial Performance EUR million Reported Revenue *) Reported EBITDA / -margin *) CAGR 2005-2009: 8.9% CAGR 2005-2009: 8.7% 1,702 €1,400m 70% 1,599 1,670 1,541 1,189 1,200 1,082 1,126 60% 21% 20% 1,036 1,208 17% 19% 4% 3% 1,000 851 2% 3% 50% 14% 800 1% 81% 83% Infrastructure 79% 82% 40% 600
Slide 6: Strong Revenue and EBITDA Performance
Strong Revenue and EBITDA Performance EUR million 1,670 1,702 Revenue 1,599 EBITDA 1,541 REVENUE % Margin CAGR: 10% 1,208 1,189 1,084 1,082 1,126 1,052 1,034 1,036 893 851 EBITDA 842 817 728 759 679 CAGR: 8% 604 83% 81% 82% 78% 73% 70% 67% 68% 67% 70% 2000 2001 2002 2003 2004 2005 2006 2007 2008 200
Slide 7: Balance Sheet Review and Ratios
Balance Sheet Review and Ratios EUR billion Dec-05 Dec-09 Dec-05 Dec-09 SES BS Summary Return On Tangible Property, Plant & Equipment 3.5 3.8 Assets Intangible Assets 3.0 2.8 (excl. Assets Under Other Assets 0.6 0.8 Construction) 13% 21% Total assets 7.2 7.4 Return On Equity NOPAT / Equity 11% 37% T
Slide 8: Q1 2010 – Financial Overview
Q1 2010 – Financial Overview SES proprietary information 8
Slide 9: Q1 2010 - Financial Overview (1)
Q1 2010 - Financial Overview (1) Recurring revenue was up 2.4% to EUR 422 million, in line with expectations Recurring EBITDA increase of 2.2% to EUR 311 million • EBITDA margin of 72.7% (recurring: 73.8%) • Infrastructure EBITDA margin of 83.3% Operating profit of EUR 188 million Profit of the grou
Slide 10: Q1 2010 - Financial Overview (2): Guidance and Growth drivers
Q1 2010 - Financial Overview (2) Communication / Guidance • Importance of providing guidance – meet or exceed it • Recurring revenue growth to be between 4% - 5% in 2010 • Change of guidance related to AMC-16 revenue reduction and ASTRA 3B launch delay Growth drivers in 2010 • Utilisation ramp-up on
Slide 11: Profitability by Business Segment
Profitability by Business Segment SES proprietary information 11
Slide 12: SES Delivers Solid Profitability
SES Delivers Solid Profitability SES Group profitability development Return on avg. Equity* 37% ROTA** 32% 22% 21% 20% 19% 15% 16% 13% 11% 2005 2006 2007 2008 2009 Steady profitability improvements, with Returns on Equity up from 11% to 37% and on Tangible Assets from 13% to 21% The successful acqui
Slide 13: Strong Core Infrastructure and Blended Margin
Strong Core Infrastructure and Blended Margin SES Group EBITDA margin 80% 82% 81% 83% 79% 70% 70% 67% 68% 67% 11% 12% 12% 12% 6% 2005 2006 2007 2008 2009 Actual Group Margin Infrastructure Margin Services Margin Normalised Profitability of core infrastructure business growing from 80% to 83%, with b
Slide 14: Financial Drivers to Growth
Financial Drivers to Growth SES proprietary information 14
Slide 15: Strong Backlog Supporting Growth
Strong Backlog Supporting Growth EUR billion 1.5 1.4 Quick Facts: 0.4 SES group backlog at end 2009 = 0.5 1.1 EUR 6.75 billion = 4x 2009 recurring WORLD revenue SKIES 0.4 0.9 Over 80% of 2010 budgeted revenue already under contract at beginning of the year 0.3 0.7 Two-thirds relates to the SES 0.2 0
Slide 16: Transponder Utilisation Rate Increases
Transponder Utilisation Rate Increases Physical Transponder Count 1,082 1,102 1,048 +48% Available Transponders 1,019 1,004 905 855 745 802 82.1% +65% Utilised Transponders 753 760 79.0% 76.5% 74.5% 75.0% 549 73.7% 2005 2006 2007 2008 2009 Available transponders Utilised transponders SES increased i
Slide 17: Secured and Well Balanced Financing and Liquidity
Secured and Well Balanced Financing and Liquidity SES Group maturity profile 31 Dec 2008 SES Group maturity profile 31 Mar 2010 1,800 1,800 Total outstanding debt: 3,918 Total outstanding debt: 4,337 1,566 1,600 1,600 1,400 1,400 1,200 1,200 1,000 1,000 773 867 769 706 759 800 800 656 619 600 600 43
Slide 18: Indebtedness and Leverage
Indebtedness and Leverage SES Group - Indebtedness Net Debt / EBITDA 3.5 3.16x 3.11x 2.95x 2.99x 3 2.66x 2.39x 2.5 2 1.5 1 0.5 0 2005 2006 2007 2008 2009 Q1 2010 Indebtedness development reflects the net debt / EBITDA levels of 2.39 to 3.11 Indebtedness target of 3.3x to be maintained with ongoing i
Slide 19: ForEx and Hedging
ForEx and Hedging Some 40% of group revenues are USD-denominated Guidance is based on constant FX A move of 1 U.S. cent against the euro will result in: • ±EUR 5.0 million at revenue line • ±EUR 3.6 million at EBITDA • ±EUR 1.0 million at Net Profit level Hedging approach: • Profit & Loss account is
Slide 20: Capital Investment Reducing
Capital Investment Reducing SES Group EUR million Guidance at 23 April 2010 for the period 2010: EUR 875 Million 900 Estimated, Uncommitted Replacement Satellite 820 790 Protostar-2 800 53 725 30 50 700 13 Committed non-Satellite CapEx 65 600 Committed Satellite CapEx providing replacement 20 and in
Slide 21: Shareholder Dividend Returns
Shareholder Dividend Returns SES proprietary information 21
Slide 22: Substantial Dividend Increase
Substantial Dividend Increase 110.0% 0.73 0.80 0.66 0.70 100.0% 0.60 Dividend per A-share (EUR) 0.60 90.0% Payout ratio in % 0.44 0.50 80.0% 0.40 0.40 70.0% 68.1% 0.30 60.0% 61.2% 57.6% 59.1% 0.20 53.5% 50.0% 0.10 40.0% 0.00 2005 2006 2007 2008 2009 Dividend per A share (EUR) Payout ratio in % of Ne
Slide 23: Conclusion and Summary
Conclusion and Summary SES ongoing focus upon Revenue and EBITDA growth • Revenue CAGR of 8.9% and EBITDA CAGR of 8.7% 2005-2009 Continued emphasis on financial execution and communication Returns on equity and on invested capital were 37% and 10% in 2009 Maintain BBB/Baa2 investment grade credit ra
Slide 24: Appendix
Appendix SES proprietary information 24
Slide 25: Guidance: 2010 adjusted, mid-term reiterated
Guidance: 2010 adjusted, mid-term reiterated 2010: Top line growth at attractive profitability levels ¾ Recurring revenue growth targets a range of 4% to 5% ¾ Recurring EBITDA growth will be in line with the revenue growth ¾ Recurring infrastructure EBITDA margin above 82% ¾ Services business profit