SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES Global — FY2005 Earnings Presentation
23 slides from SES SA FDR (Class A)'s earnings presentation, Feb 20, 2006
Slide 1: Financial Results for the year to 31 December 2005
Financial Results for the year to 31 December 2005 20 February 2006
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: 2005 in brief
2005 in brief • An excellent year in which we delivered strong growth and outstanding returns to shareholders • Revenues rose 16.7% to EUR 1,258 million − recurring revenues grew by 13.4% • EBITDA rose 11.9% to EUR 881 million • Net Income rose 12.1% to EUR 382 million • Dividend of EUR 0.40 per sha
Slide 4: Delivering Value to Shareholders
Delivering Value to Shareholders • In 2005 SES delivered outstanding shareholder value • Our strategy in this regard remains unchanged: − Continued investment in the business to deliver growth, both organically and via carefully selected acquisitions − Increasing per share dividends − Share buyback
Slide 5: New Skies acquisition
New Skies acquisition • USD 1.1 billion cash offer announced 14 December 2005 − Excellent strategic fit with SES − Significant operational and financial synergy potential • New Skies’ shareholders approved the transaction 10 February 2006 • Clearance received from: − US Department of Justice − Germa
Slide 6: Market Developments in North America
Market Developments in North America • Strong demand for broadcast capacity supports AMERICOM initiatives • SES AMERICOM contracted 42.5 additional transponders during 2005 • AMERICOM Government Services maintains growth path with 20% increase in revenues • Ciel venture makes progress − Ciel-2 space
Slide 7: Market Developments in EMEA
Market Developments in EMEA • 34 additional transponders contracted by EMEA in 2005 • Germany: − Development of ASTRA’s technical reach in Germany in 2005 is positive, on basis of preliminary market research data − Digital TV in Germany continues to grow – both Pay-TV and Free-To-Air − HDTV offering
Slide 8: HDTV in Europe
HDTV in Europe • HDTV is building substantial momentum in all main markets − HDTV equipment sales are growing fast • over 2 million HD Ready TV sets sold in Europe in 2005 • 50 million HD-enabled European households projected by 2014 − HDTV content is growing fast as well • ASTRA now carries 8 HDTV
Slide 9: Sales of HD Ready screens in Europe
Sales of HD Ready screens in Europe 2.0 million HD Ready TV sets sold in Europe less than 1 year ! HD Ready TV sets sold in units (cum.) 2,500,000 2,000,000 1,500,000 in Europe 1,000,000 500,000 - Feb05- Apr05- Jun05-Jul05 Aug05- Oct05-Nov05 Dec05 Mar05 May05 Sep05 Source: GfK Retail and Technology
Slide 10: Euroconsult Forecast on HDTV
Euroconsult Forecast on HDTV Forecasts of Households equipped with HD Receivers in Europe Breakdown by Delivery Network (2005-2015) Households in million 70 60 DTT 50 DSL 40 Cable 30 20 10 Satellite 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 http://www.euroconsult-ec.com © 2005 Eurocon
Slide 11: Business Outlook 2006
Business Outlook 2006 • New Skies business acquisition and integration • Launch of 4 satellites − ASTRA 1KR; AMC-14; AMC-18; ASTRA 1L • Continued growth in core business of DTH transmission • Development of media distribution via terrestrial broadband networks offers new opportunities for satellites
Slide 12: Business and Financial Outlook 2007 and beyond
Business and Financial Outlook 2007 and beyond • Infrastructure − Build and launch additional satellite capacity to serve: • North America (AMC-21 for the US market; Ciel-2 for Canada and the US; QuetzSat for Mexico and the US) • Africa (Sirius-4) − Replace and enhance existing satellite capacity (S
Slide 13: Financial Results
Financial Results • Figures are reported for the first time under IFRS, with comparative figures restated throughout, applying consistent accounting policies 13
Slide 14: Revenues
Revenues 16.7% 22.0% vs MEUR A 2004 13.4% 1,237 1,258 1,150 87 21 1,078 136 (60) 1,014 (4) Actual 2004 Non- Constant FX / Actual 2004 Core Actual 2005 Service Actual 2005 Non- Actual 2005 (IFRS) recurring Scope (recurring, business (recurring, business (recurring) recurring 2004 change same scope, s
Slide 15: EBITDA
EBITDA 15.4% 11.9% MEUR vs 13.2% A 2004 881 859 843 22 16 787 98 744 (25) (18) Actual 2004 Non- Constant FX / Actual 2004 Core Actual 2005 Service Actual 2005 Non- Actual 2005 (IFRS) recurring Scope (recurring, business (recurring, business (recurring) recurring 2004 change same scope, same scope) g
Slide 16: EBITDA Margin split
EBITDA Margin split • Infrastructure EBITDA margin was 80% (EMEA: 83 %, Americas: 75%) − set to remain around 80% • Services EBITDA was accretive (driven by EMEA) and provides 15% of total revenues − margin will improve from this level MEUR Infrastructure EMEA Americas Asia & Other Total Revenues 72
Slide 17: Depreciation & Amortisation
Depreciation & Amortisation • Depreciation charges rose 7.5% to EUR 363.0 million − reflecting entry into service of AMC-12 and AMC-16 during the period − full year charge associated with AMC-10, AMC-11 and AMC-15 • Amortisation charges were EUR 42.3 million − Amortisation of franchise fee of EUR 26
Slide 18: Taxation
Taxation • Taxation expense increased over the prior period to EUR 99.3 million − Higher taxable profit of EUR 471.1 million − 2004 benefited from the release of a EUR 60 million deferred tax provision • Reported tax rate of 21.1% − significant investment tax credits taken in the year • EUR 29 milli
Slide 19: Capital Expenditure - Approved investments
Capital Expenditure - Approved investments MEUR 386 ~340 ~150 ~50 ~100 Guidance in Nov. 2005: ~420 ~340 ~150 ~50 N.A. 251 233 135 138 106 92 53 9 8 6 A 2005 B 2006 T 2007 T 2008 T 2009 Astra Americom CapEx forecast is in line with the previous forecast until 2008. AMERICOM Satellites Launch Date G
Slide 20: Cash Flow
Cash Flow • Net Operating Cash Flow declined 13% to EUR 719.4 million − mainly due to higher cash tax payments in the period • Free Cash Flow was substantially higher at EUR 433 million 433 113 2 58 60 169 142 (107) Actual 2004 Lower net Inflow from Proceeds from Lower outflow Less Other Actual 2005
Slide 21: Modelling Guidance
Modelling Guidance • Revenues (recurring) − double digit CAGR for the period 2005-2007 − high single-digit percentage revenue growth in 2006 • Gross EBITDA margin − below 70% in 2006 as a result of a further increase of the services business as well as a slippage of revenues generated in the infrast
Slide 22: NBVs – satellite assets – EMEA
NBVs – satellite assets – EMEA MEUR End of Depreciation End of Design End of Fuel NBV NBV Satellite Depreciation Period Life Life 31.12.2005 31.12.2004 Life Astra 1B 10 Apr-01 May-01 Q2-06 * 0.0 0.0 Astra 1C 12 Jun-05 Jun-08 Dec-06 0.0 4.8 Astra 1D 10 Dec-04 Aug-09 Jan-08 0.0 0.0 Astra 1E 12 Dec-07
Slide 23: NBVs – satellite assets – Americas
NBVs – satellite assets – Americas MUSD End of NBV at NBV at NBV at Depreciation Depreciation End of Design End of Fuel 31.12.2005 1) 31.12.2005 31.12.2004 Satellite Period Life Life Life in MEUR in MUSD in MUSD AAP-1 15 Nov-15 Nov-15 Jul-24 60.4 71.3 78.6 AMC-1 15 Sep-11 Sep-11 Jan-13 67.3 79.4 93.