Eutelsat Communications Sa · EURONEXT:ETL
Eutelsat Communications Sa — H1 2013-2014 Earnings Presentation
25 slides from Eutelsat Communications Sa's earnings presentation, Feb 14, 2014
Slide 1: First Half 2013-2014 Results
First Half 2013-2014 Results February 14, 2014 1
Slide 2: Agenda
Agenda H1 2013-2014 highlights Operational performance Financial overview Outlook Appendix -2-
Slide 3: First Half 2013-2014: Key Figures
First Half 2013-2014: Key Figures Revenue Revenues of €647 M, up 2.2% + 3.1% at constant currency (excluding non-recurring revenues) Strong profitability: EBITDA at €501 M EBITDA 77.4% margin in line with objectives Net result Group share of net income at €147 M Net margin at a high level (22.8%) Fi
Slide 4: H1 2013-2014 Highlights
H1 2013-2014 Highlights Procurement of EUTELSAT 65 West A Successful launch and entry into service of EUTELSAT 25B at 25.5°East EUTELSAT 25C was redeployed to 33°East (now EUTELSAT 33B) EUTELSAT 33A to be redeployed to 31°East where it will be operated by Türksat Closing of the acquisition of Satmex
Slide 5: Agenda
Agenda H1 2013-2014 highlights Operational performance Financial overview Outlook Appendix -5-
Slide 6: Strong Backlog Providing Long-Term Visibility on Revenues and Cash Flows
Strong Backlog Providing Long-Term Visibility on Revenues and Cash Flows Backlog (€Bn) Backlog represents 4.1 years of (excluding Satmex) revenues Video remains the largest component of the backlog Average remaining life of 5.4 5.4 contracts at 7.1 years 5.3 Satmex will bring an additional USD 0.42
Slide 7: Stable Fill Rate Despite Partial Switch-off at 28.5° East
Stable Fill Rate Despite Partial Switch-off at 28.5° East Operational transponders1 In H1 2013-2014, entry into service (in txp – excluding Satmex) of EUTELSAT 25B and relocation of EUTELSAT 8 WEST C were offset by the suspension of operations on certain transponders at 28.5° East High fill rate at
Slide 8: Revenue Growth in Line with Targets at Constant Exchange Rate (+3.1%)
Revenue Growth in Line with Targets at Constant Exchange Rate (+3.1%)1 = €M VIDEO 431 431 Revenues (€M)2 68.2% H1 2012-13 H1 2013-14 +2.2% +1.7% DATA & VALUE- €M ADDED SERVICES 647 634 127 20.1% 125 H1 2012-13 H1 2013-14 H1 2012-13 H1 2013-14 MULTI-USAGE +1.2% €M 11.7% 73 74 H1 2012-13 H1 2013-14 Ex
Slide 9: Video: Stable Revenues Mainly Reflect Absence of Available Capacity
Video: Stable Revenues Mainly Reflect Absence of Available Capacity End of operations on disputed frequencies at 28.5° East since 4 October 2013 Good dynamic at key Video neighbourhoods serving fast-growing markets (16° East, 36° East, and 7°/8° West) 4,807 channels, up 7% HD penetration for the ent
Slide 10: Data and Value Added Services: Strong Growth in VAS
Data and Value Added Services: Strong Growth in VAS Data Services • Positive impact of the integration of EUTELSAT 172A Revenues for Data & VAS (€M) • H1 revenues negatively impacted by Continuing tough competitive environment for point-to-point +6.0% 125 +1.7% 127 services 118 +38.4% 43 The rec
Slide 11: Continued Good Dynamic for Broadband Customers on KA-SAT
Continued Good Dynamic for Broadband Customers on KA-SAT KA-SAT terminals activated (in thousands of units) X2 124 108 91 621 73 31 Dec. 31 March 30 June 30 Sept. 31 Dec. 2012 2013 2013 2013 2013 Consumer broadband • France, Spain, Italy, Turkey, Germany and the UK are the largest contributors • Two
Slide 12: Multi-usage Reflecting Integration of EUTELSAT 172A
Multi-usage Reflecting Integration of EUTELSAT 172A The effect of… Revenues from Multi-usage (€M) • The February/March 2013 contract renewal campaign • The September/October 2013 contract -2.4% +1.2% renewal campaign 74 74 73 …are positively offset by • Integration of EUTELSAT 172A • New contracts H
Slide 13: Agenda
Agenda H1 2013-2014 highlights Operational performance Financial overview Outlook Appendix -13-
Slide 14: EBITDA Margin in Line With Full-Year Objective
EBITDA Margin in Line With Full-Year Objective EBITDA (€M) Increase in operating expenses • Resources allocated to the development of commercial activity increased +4.9% • Costs are more evenly spread -0.1% across the year than in FY 2012- 2013 502 501 479 High level of operating profitability with
Slide 15: Net Income of €147 Million, Net Margin at 23%
Net Income of €147 Million, Net Margin at 23% Extracts from the consolidated income H1 2012-13 H1 2013-14 Change statement in €M1 Revenues 634 647 +2.2% EBITDA2 502 501 -0.1% Increase in D&A Operating income 339 320 -5.6% Includes capital gain on the disposal of Solaris Lower average cost of d
Slide 16: Cash Flow From Operations
Cash Flow From Operations €M 407 3891 333 325 242 1762 % of revenues 55 % 40 % 64 % 61 % 50 % 27 % H1 2011-12 H1 2012-13 H1 2013-14 Cash flow from operations Investments 1 Including acquisition of EUTELSAT 172A for US$228 M (€177 M) 2 Including • -€16 M of disposals in equity investments and subsidi
Slide 17: Financing of the Acquisition of Satmex Concluded at Attractive Terms
Financing of the Acquisition of Satmex Concluded at Attractive Terms Issuance of a €930 M 6-year bond at attractive terms in December 2013 • 2.625 percent coupon • Maturity: January 2020 • Covers financing requirements in connection with the acquisition • The bridge facility signed in September 2013
Slide 18: Diversified debt structure and strong liquidity
Diversified debt structure and strong liquidity Net debt1 (€M) 2,794 Net Debt includes €537 M of 2,647 cash that was put in an escrow 2,613 account for the payment of the Term Loan2 800 Term Loan2 remaining 90% share capital of 800 800 Satmex (released on 2nd Term Loan2 January 2014). Average weight
Slide 19: Net Debt / EBITDA Ratio
Net Debt / EBITDA Ratio As of 31 December 2013 Reminder: Proforma reported as of including 31 December (€M) Reported1 Satmex 2012 Acquisition2 Net Debt 2,794 3,571 2,613 12-month rolling 995 1,067 981 EBITDA Net Debt / 12-m 2.8 3.3 2.7 rolling EBITDA 1 Calculation based on - Net debt including €537
Slide 20: Agenda
Agenda H1 2013-2014 highlights Operational performance Financial overview Outlook Appendix -20-
Slide 21: Additional Capacity Focused on Areas of Highest Growth
Additional Capacity Focused on Areas of Highest Growth 2014 2015 2016 AT1 AT2 EUTELSAT SATMEX 7 EUTELSAT EUTELSAT EUTELSAT SATMEX 9 EUTELSAT 3B 9B 8 West B 36C 65 West A (March 2014) (March 2014) (April 2014) (Q1 2015) (Q1 2015) (Q3 2015) (Q4 2015) (Q4 2015) (Q2 2016) 3° East 36° East 65° West 56° E
Slide 22: Outlook Confirmed on a Standalone Basis
Outlook Confirmed on a Standalone Basis Eutelsat Standalone With Satmex Revenue • Above 2.5% revenue growth for FY • Satmex will add around US$70 M for (at constant currency, 2013-2014 FY 2013-2014 excluding non recurring revenues) • Above 5% average revenue growth in • In the medium term, Satmex wi
Slide 23: Questions & Answers
Questions & Answers Michel de Rosen Michel Azibert Antoine Castarède Léonard Wapler CEO Deputy CEO CFO Head of Investor Relations -23-
Slide 24: Agenda
Agenda H1 2013-2014 highlights Operational performance Financial overview Outlook Appendix -24-
Slide 25: Capex as defined in the Outlook
Capex as defined in the Outlook Extracts from the consolidated statement of cash-flows in €M1 H1 2013-2014 Acquisitions of satellites, other property and equipment 148.2 and intangible assets Repayments of ECA loans and long-term capital leases 4.6 Capex as defined in the Outlook 152.8 Note: Capex a
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