SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES Global — H1 2005 Earnings Presentation
17 slides from SES SA FDR (Class A)'s earnings presentation, Aug 8, 2005
Slide 1: Financial Results for the Six months to 30 June 2005
Financial Results for the Six months to 30 June 2005 8 August 2005
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: Overview
Overview • A successful first half • Revenues rose 9.7% to EUR 609.2 million − recurring revenues rose 11% • EBITDA rose 7.4% to EUR 437.6 million • Profit of the Group was EUR 168.5 million − excluding 2004’s one-time tax credit, Net Profit was 6% ahead • Successful launch of AMC-12 and start of se
Slide 4: Delivering Value to Shareholders
Delivering Value to Shareholders • Double digit recurring revenue growth • Contract additional existing satellite capacity (BSkyB, BBC, Premiere, Globecast, UPC, DCS, Crown Castle Mobile Media,Comcast, iNDemand…) − 9 transponders in the European market − 27.5 transponders in the US market • Invest i
Slide 5: Business Outlook 2005, 2006 and 2007
Business Outlook 2005, 2006 and 2007 • Satellite launch programme: − ASTRA 1KR and AMC-23 in 2005 − ASTRA 1L, AMC-14 and AMC-18 in 2006 − ASTRA 1M and SIRIUS 4 in 2007 • Launch of HDTV in Europe − 2005 – Premiere − 2006 onwards - BSkyB, others • Interactive TV (Blucom) • Geographic expansion of DTH
Slide 6: Business and Financial Outlook beyond 2007
Business and Financial Outlook beyond 2007 • Expand 50-state US Ku-band capacity coverage • Implementation of strategy to serve new geographies − Canada − Mexico − Launch of AsiaSat 5 − DTH growth in China and India − Potential consolidations in Asia • Participate in all mobile market segments 6
Slide 7: Financial Results
Financial Results • Figures for the first half of 2004 have been restated under IFRS to aid comparison • Full reconciliation is in the financial tables provided 7
Slide 8: Revenues
Revenues MEUR 18.8% 9.7% 11.0% vs H1 2004 609 592 17 555 554 39 (50) 499 55 (6) Actual H1 Non- Constant FX Actual H1 Core Actual H1 Service Actual H1 Non- Actual H1 2004 (IFRS) recurring / Scope 2004 business 2005 business 2005 recurring 2005 (as 2004 change (recurring, (recurring, growth (recurring
Slide 9: EBITDA
EBITDA 13.1% 7.4% MEUR 11.6% vs H1 2004 438 415 421 407 17 (25) 372 43 6 (11) Actual H1 Non- Constant FX Actual H1 Core Actual H1 Service Actual H1 Non- Actual H1 2004 (IFRS) recurring / Scope 2004 business 2005 business 2005 recurring 2005 (as 2004 change (recurring, (recurring, growth (recurring)
Slide 10: EBITDA Margin split
EBITDA Margin split • Infrastructure EBITDA margin was 81% − set to remain around 80% • Services EBITDA was accretive − margin will improve from this level EUR million Infrastructure Services Other/Elimination Total Revenues 546.3 85.5 (22.6) 609.2 EBITDA 442.7 3.0 (8.1) 437.6 EBITDA margin 81.0% 3.
Slide 11: Depreciation & Amortisation
Depreciation & Amortisation • Depreciation charges rose to EUR 174.7 million − new satellites (AMC-12, AMC-16) entering service − full period charge for AMC-10, AMC-11, AMC-15 • Amortisation charges were similar to prior, at EUR 21.6 million − Amortisation of franchise fee (EUR 13.1 m) 11
Slide 12: Taxation
Taxation • Tax charge rose to EUR 66.4 million − reflecting higher profitability − 2004 period benefited from EUR 60 million tax credit • Reported tax rate of 28.9% − Includes exceptional tax charges on gains on derivatives − Excluding these one-time items the underlying effective tax rate for the p
Slide 13: Capital Expenditure - Approved investments
Capital Expenditure - Approved investments Approved SES ASTRA / SES Americom Satellite CapEx 1,2,3) Programmes, 2002 to 2006 MEUR 276 506 ~ 490 ~ 220 ~ 170 ~ 60 Guidance in May 2005: ~ 495 ~ 277 ~ 206 ~ 69 439 345 235 144 166 132 67 91 41 57 - - 2003 2004 2005 2006 2007 2008 SES Astra SES Americom A
Slide 14: Cash Flow
Cash Flow • Net Operating Cash Flow grew 3% to EUR 451 million − increased cash inflows largely offset by higher tax payments • Free Cash Flow rose to EUR 314 million from EUR 170 million − mainly due to gains on derivative instruments 14
Slide 15: Modelling Guidance
Modelling Guidance • Revenues − double-digit recurring revenue growth in 2005 & 2006 − high single-digit percentage revenue growth in 2007 − this will result in a double digit CAGR for the period 2005-2007 − additional revenue will be generated in 2005 and thereafter from acquired service businesses
Slide 16: NBVs – satellite assets – SES Astra
NBVs – satellite assets – SES Astra MEUR End of Depreciation End of Design End of Fuel NBV NBV Satellite Depreciation Period Life Life 30.06.2005 31.12.2004 Life Astra 1B 10 Apr-01 May-01 Oct-05 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
Slide 17: NBVs – satellite assets – SES Americom
NBVs – satellite assets – SES Americom MUSD End of NBV at NBV at NBV at Depreciation Depreciation End of Design End of Fuel 30.06.2005 1) 30.06.2005 31.12.2004 Satellite Period Life Life Life in MEUR in MUSD in MUSD AMC-1 15 Sep-11 Sep-11 Jan-13 71.3 86.3 93.2 AMC-2 15 Feb-12 Feb-12 Feb-12 81.0 98.0