Eutelsat Communications Sa · EURONEXT:ETL
Eutelsat Communications Sa — FY2010-11 Earnings Presentation
32 slides from Eutelsat Communications Sa's earnings presentation, Jul 28, 2011
Slide 1: Eutelsat Communications Full Year 2010-11 Results
EUTELSAT COMMUNICATIONS Expanding space to communicate Full Year 2010-11 Results July 28, 2011 Section >>> Slide >>>
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 Eutelsat Communications, nor should it, or any part of it, form the basis of or be relied on in connection with any contract or
Slide 3: Agenda
Agenda 2010-2011: another excellent year Geographies and applications drive growth Strong financial performance Positive outlook: growth & profitability Section >>> Page Slide >>>3
Slide 4: Strong Operational Performance…
Strong Operational Performance… Quality of Eutelsat business model confirmed » Top-line growth outpaces market estimates » Industry-leading profitability » Resilience to adverse market conditions Rapid uptake newest in-orbit resources » Utilisation rate above 90% for most of the year » W7 satellite
Slide 5: … Leading to Excellent Results
… Leading to Excellent Results Revenue Up 11.5% to €1,168 million EBITDA Up 11.9% to €926 million EBITDA margin 79.3%, up from 79.0% (industry leading) Group share of net Up 25.6% to €338 million income (29.0% net margin) Net cash flow from €817 million at 70% of revenues operating activities1 Distr
Slide 6: Agenda
Agenda 2010-2011: another excellent year Geographies and applications drive growth Strong financial performance Positive outlook: growth & profitability Section >>> Page Slide >>>6
Slide 7: Recent Growth Fuelled by Previous Years Investments
Recent Growth Fuelled by Previous Years Investments Revenue (€M) 941 1,047 1,168 FY 2008-09 FY 2009-10 FY 2010-11 Section >>> Page Slide >>>7
Slide 8: Strong Operational Performance Despite High Fill Rate Over The Period
Strong Operational Performance Despite High Fill Rate Over The Period Operational Transponders Operational transponders and fill rate positively impacted by KA-SAT entry into service at year-end A fill rate above 90% during most 7421 of the year due to the absence of additional capacity in Ku band 6
Slide 9: High Backlog Delivers Exceptional Visibility
High Backlog Delivers Exceptional Visibility Backlog (€Bn) Weighted average residual life of contracts: 7.5 years 5.0 Approximately 4.2 years of 4.9 FY 2010-11 revenues 3.9 Video » 92 % 92 % 91 % FY 2008-09 FY 2009-10 FY 2010-11 Section >>> Page Slide >>>9
Slide 10: Strong Revenue Growth: +11.5% to €1,168 M
Strong Revenue Growth: +11.5% to €1,168 M €M +6.0% Video 195,5 787 180,8 742 69% FY 2009-10 FY 2010-11 €M +14.9% Data & VAS 234 204 58,9 20% FY 2009-10 FY 2010-11 €M +28.0% Multiusage 126 98 11% FY 2009-10 FY 2010-11 Expressed as percentage of turnover as of June 30, 2011 excluding "other and non re
Slide 11: Video: Strong Exposure to Growing Markets
Video: Strong Exposure to Growing Markets 6% increase in channels (+218) Revenue (€M) +6.0% 3,880 TV channels (of which 220 HD) +9.2% TV channel expansion is mainly driven by high growth markets1 787 with 1,970 channels 742 680 New contracts and renewals, including full-year effect of W7 at 36°East
Slide 12: Video: Strong Commercial Successes
Video: Strong Commercial Successes Extensions, renewals & new contracts examples Hot Bird™ Three Fastest Growing Neighbourhoods 13°East 7°West 16°East 36°East Europe & North Africa & Central Europe & Russia & Mediterranean Basin Middle East Indian Ocean Islands Africa 1,153 Channels 368 Channels 462
Slide 13: Data and Value-Added Services Dynamism
Data and Value-Added Services Dynamism Data services Revenue (€M) » Continuing strong demand from Africa, Central Asia and Middle- East +14.9% 234 • Interconnection of corporate +17.8% networks, extension of GSM 204 backhaul and Internet trunking 173 46 46 +19.5% » Full year effect of W7 satellite 3
Slide 14: Data: Strong Commercial Successes
Data: Strong Commercial Successes Clients having contributed to the growth of Data Services Examples of extensions, renewals & new contracts Section >>> Page>>> Slide 14
Slide 15: KA-SAT, an Additional Growth Engine
KA-SAT, an Additional Growth Engine Launched December 26, 2010 Entry into service May 31, 2011 82 spotbeams to reach Extended Europe1 and the Mediterranean Basin Addressable market of 30M households 13 contracts signed with distributors 1 Extended Europe: Western Europe, Central Europe, Russia and C
Slide 16: Multiusage: Robust Demand
Multiusage: Robust Demand Solid demand from government Revenue (€M) agencies +28.0%1 Renewal of all contracts coming to an +30.1% end during the period and new contracts 126 Eutelsat fleet ideally positioned to 98 75 capture new contracts FY 2008-09 FY 2009-10 FY 2010-11 1 At constant exchange rate,
Slide 17: Agenda
Agenda 2010-2011: another excellent year Geographies and applications drive growth Strong financial performance Positive outlook: growth & profitability Section >>> Page>>> Slide 17
Slide 18: 11.9% Increase in EBITDA
11.9% Increase in EBITDA1 EBITDA (€M) Industry-leading, EBITDA margin of 79.3% Continued policy of strict operating 926 costs control 828 Operating expenses rose as resources 742 were added to reinforce the Group’s overall commercial activity EBITDA margin » 78.9 % 79.0 % 79.3 % FY 2008-09 FY 2009-1
Slide 19: Net Cash Flows From Operating Activities Strong at €817 M
Net Cash Flows From Operating Activities Strong at €817 M €M 817 698 655 494 4861 417 % of revenues 69.6 % 44.3 % 66.7 % 47.2 % 70.0 % 41.6 % FY 2008-09 FY 2009-10 FY 2010-11 Net Cash flows from operating activities Capital expenditure 1 Amount net of the €60M received from the capital reduction of
Slide 20: Continuous Strengthening of Group Financial Structure
Continuous Strengthening of Group Financial Structure Net debt1 (€M) €2,424 M €2,198 M Net debt / EBITDA at 2.37x (down from 2.93x at June 30, 2010) Net debt / EBITDA impacted by the non recurring €235m W3B insurance payment 1,615 1,465 Term loan2 Term Loan2 Average maturity: 3.8 years at June 30, 2
Slide 21: Strong Overall Performance
Strong Overall Performance Extracts from the consolidated income FY 2009-10 FY 2010-11 Change statement in €M1 Revenues 1,047 1,168 +11.5% +10.0 % at constant euro-dollar exchange rate EBITDA2 828 926 +11.9 % EBITDA margin 79.0% 79.3% Industry-leading EBITDA margin Operating income 509 645 +26.9
Slide 22: A 18.4% Dividend Increase Proposal
A 18.4% Dividend Increase Proposal Net income (€M) Dividend per share (€) 339 0.90 270 0.76 247 0.66 Payout 59 % 62 % 58 % FY 2008-09 FY 2009-10 FY 2010-11 FY 2008-09 FY 2009-10 FY 2010-11 Shareholders Annual General Meeting 8 November 2011 Section >>> Page>>> Slide 22
Slide 23: Agenda
Agenda 2010-2011: another excellent year Geographies and applications drive growth Strong financial performance Positive outlook: growth & profitability Section >>> Page>>> Slide 23
Slide 24: Strong Growth Drivers in Our Three Applications
Strong Growth Drivers in Our Three Applications STRONG FUTURE GROWTH DRIVERS Video Ever-growing need for more and better quality image > Growing number of TV channels > HD penetration Data & VAS Ever-growing need for interconnection > Broadband internet everywhere and anytime > For both entreprises
Slide 25: Channel and HD growth Drives Video
Channel and HD growth Drives Video Video STRONG FUTURE GROWTH DRIVERS Ever-growing need for more and better quality image Satellite TV channels in Extended Europe1 2010 – 2020 HD penetration by subregion in 2020 15 000 5 046 HD channels CAGR 10-20 36% 10 000 20.2% 2 920 3 152 16% 21% 2 135 SD channe
Slide 26: Broadband Internet Everywhere to Fuel Data & VAS
Broadband Internet Everywhere to Fuel Data & VAS STRONG FUTURE GROWTH DRIVERS Data & VAS Ever-growing need for interconnection > Broadband internet everywhere and anytime > For both entreprises and consumers Transponder demand for corporate networks and Ka demand for corporate networks and broadband
Slide 27: Fast Growing Markets will Continue to Drive Eutelsat Growth
Fast Growing Markets will Continue to Drive Eutelsat Growth Estimated Ku-band Transponder demand by region CAGR 2011-2016 Western Europe Demand +7.3% Demand +2.0% Russia & Central Asia Central Europe Demand +6.0% Middle East & North Africa Demand +4.1% Sub-Saharan Africa Demand +7.4% Source: Eurocon
Slide 28: Eutelsat's supply to address fast growing markets
Eutelsat’s supply to address fast growing markets The 7 satellites to be launched by H1 2014 will add 20% additional capacity to support our growth prospects in high growth markets ATLANTIC 7°W Eutelsat 3°E W3D 7°E W3C 16°E W6A 21.5°E EB2A 25.5°E W5A 70.5°E (Q1 2013) (Q3 2011) (Q4 2012) (HI 2013) (Q
Slide 29: Positive Outlook: Growth, Profitability & Reliability
Positive Outlook: Growth, Profitability & Reliability FY11–12: above €1,235 million Revenue 2011–2014: CAGR above 7% FY11–12: above €955 million EBITDA 2011–2014: EBITDA margin above 77% each year CAPEX 2011–2014: €550 million average per annum Distribution 50% to 75% of Group share of net income Ne
Slide 30: Eutelsat Executive Committee
Eutelsat Executive Committee Michel de Rosen Jean Paul Brillaud Catherine Guillouard David Bair Jacques Dutronc Andrew Wallace photo photo photo photo photo photo Chief Executive Officer Deputy CEO Chief Financial Officer Chief Technical Officer Dir. Satellite Missions & Chief Commercial Executive C
Slide 31: At Eutelsat, we Deliver…
At Eutelsat, we Deliver… Growth Growth driven by digital video and broadband services in markets with highest potential Profitability Consistently high profitability, highest among peers Reliability A company that has delivered on financial expectations year after year Section >>> Page>>> Slide 31
Slide 32: Questions & Answers
QUESTIONS & ANSWERS Section >>> Page>>> Slide 32
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