EUTELSAT COMMUNICATIONS FIRST HALF RESULTS

Transcription

1 EUTELSAT COMMUNICATIONS FIRST HALF RESULTS 1

2 Agenda 1. Further improvement of Group performance 2. Strong revenue growth across all business applications 3. Confirmation of financial strength 4. New in-orbit resources to serve the most dynamic markets objectives raised 2

3 Excellent performance in terms of sales and profitability M + 7.9% + 9.6% 463,5 508 Sharp increase in revenues: +9.6% > Growth across all business applications H H H M + 7.4% % 411,6 Increase in EBITDA*: +9.7% > EBITDA margin of 81%, continuously the highest profitability among leading satellite operators H H H In units +14.5% % 532 Number of leased transponders: +8.8% December 31, 2007 December 31, 2008 December 31, *EBITDA is defined as operating income before depreciation. amortization and other operating income/charges (impairment charges. dilution profits (losses). insurance compensations. etc.). ** Including 46.6 M of non-recurring elements

4 Strengthened visibility with record increase in backlog More than 4.2 years of annual revenues Weighted average residual life of contracts: 8.2 years M 4.2 bn 3.6 bn 3.5 bn % video 92% 92% 93% December 31, 2007 December 31, 2008 December 31, 2009 Expansion of resources on orbital positions covering rapidly growing markets ATLANTIC BIRD 4A (North Africa and the Middle-East) W7 (Africa and Russia) 4

5 Agenda 1. Further improvement of Group performance 2. Strong revenue growth across all business applications 3. Confirmation of financial strength 4. New in-orbit resources to serve the most dynamic markets objectives raised 5

6 Continued sequential growth over the last 2 years M +18.3% H H H H H A balanced portfolio focused on video Strong exposure to fast growing emerging markets Strong exposure to fast growing applications 6

7 Video: strong growth momentum maintained Full effects of contracts activated with the entry into service of additional in-orbit resources in H Robust demand M +7.4% > Sustained by digital TV in Russia, the Middle East, Africa, central and Eastern Europe > 3,448 TV channels and interactive services (+7.1%) H H H

8 Leading positioning for video with 3,348 TV channels HOT BIRD leading position with 1,079 TV channels (including 38 HD TV ) Strong development of key video orbital positions with 1,593 TV (including 58 HD TV) Number of TV channels broadcast at Dec , % -4% +77% +6% +7% +3% 7 West (North Africa & Middle-East) 7 East (Turkey) 9 East ( Western, Central & Eastern Europe) 13 East (Europe) 16 East (Balkans & Indian Ocean islands) 36 East (Russia & Africa ) 8

9 100 HDTV channels (+37%) broadcast Channels with International reach 15 pay-tv platform with HD High Definition TV ramp-up across extended Europe 9 Source: Eutelsat analysis

10 Data and Value-added services: strong growth Data services > Continuing strong demand from Africa, Central Asia and Middle East > Interconnection of corporate and GSM networks > W2A satellite launched in April 2009 Value-added services > 10,020 D-STAR terminals deployed > Further expansion of Tooway > Roll-out of ground infrastructure > 58 distributors in 26 countries, including: M % % +15.2% H H H Value-added services Data services 10

11 Multiusage: solid demand from government agencies Renewal of all contracts during the period New contract wins on EUROBIRD TM 4A satellite M % 1 > June 2009: redeployment of W1 satellite at 4 East following successful launch of W2A H H H At constant exchange rate, growth would have been 33.5% 11

12 Increase in leased transponders: +8.8% (+43 tpx) Fill rate 97.6% 87.4% % 532 # leased transponders December 31, 2008 December 31, 2009 Improvement of operational flexibility Optimization of some satellites 87,4% 12

13 Agenda 1. Further improvement of Group performance 2. Strong revenue growth across all business applications 3. Confirmation of financial strength 4. New in-orbit resources to serve the most dynamic markets objectives raised 13

14 Further improvement of profits in H Extracts from the Income statement in M H H Change (%) Revenues % % at constant euro-dollar exchange rate +10.3% excl. non-recurring revenues and at constant euro-dollar exchange rate EBITDA* % Increase of resources to develop new activities EBITDA margin 80.9% 81.0% Operating income % Seasonality of operating expenses 3.2 M of social taxes reimbursement 13.9 M increase in depreciation due to new satellites Non-recurring profit of 25 M in H Financial income (49.8) (40.6) -18.5% Effect of lower interest rates Income from equity investments % Excellent performance of Hispasat Income tax (71.2) (74.5) +4.6% Increase related to the H1 performance Minority interests (6.9) (6.8) -0.7% Net income Group share % *EBITDA is defined as operating income before depreciation. amortisation and other operating income/charges (impairment charges. 14 dilution profits (losses). insurance compensations. etc.).

15 Continued strong cash flow generation M High level of net cash flow from operating activities: 62.3% of revenues * > Cash tax effect > 25M of one-off items in H H H H * Includes 25 M related to a non-recurring profit December 31, 2007 December 31, 2008 December 31, 2009 Net debt / EBITDA: 3.13x > Stable compared to June 30, 2009 > In spite of higher CAPEX and distribution 15

16 Capital expenditure always entirely self-financed Capital expenditure in line with objective of 450 M / year on average M FY FY H Net cash flow from operating activities Capital expenditure 16

17 An efficient banking debt structure 2,408 M 2,440 M (1) Average cost of debt 2 : 3.47% Interest rate hedging: > Eutelsat SA debt largely hedged until maturity in 75 bp 1,607 1, bp November 2011 > Eutelsat Communications drawn debt fully hedged until maturity in June 2013 Undrawn credit facility: 700 M 70 bp bp Average maturity: 2.7 years Ratings upgraded to Investment Grade : December 31, 2008 December 31, 2009 > at Group level (by S&P) Eutelsat Communications > at Eutelsat SA level (by Moody s) Eutelsat SA 1 Bank debt including liabilities from long-term lease agreements, net of cash 2 Net average cost of debt after hedging 17

18 Agenda 1. Further improvement of Group performance 2. Strong revenue growth across all business applications 3. Confirmation of financial strength 4. New in-orbit resources to serve the most dynamic markets objectives raised 18

19 Significant new capacity deployed over 4 orbital positions 7 W 9 E 10 E 36 E 39 Tpx 38 Tpx 52 Tpx 70 Tpx ATLANTIC BIRD 4A EUROBIRD 9A W2A W7 Increase of resources exceeding 30% over the last 12 months More than 650 operational transponders (at February 18, 2009) To serve rapidly growing markets of Video and Data Services in EMEA and Russia 19

20 Continuing satellite deployment programme (at February 18, 2010) AB7 W3C KASAT W3B Satellites to be launched Satellites in opérations 15 o W 70.5 o E TELSTAR 12 AB14 AB1 AB2 AB4A AB3 EB4A W3A W2A EB9A HB 6 HB 8 HB 9 EB16 SESAT 1 W2M W6 EB2 EB1 EB3 W4 & W7 SESAT 2 W5 4 satellites to be launched by December 2011 To increase resources for growing markets of Middle East, North Africa, Central and Eastern Europe To provide high speed Internet access for everybody everywhere (KA-SAT) 20

21 Agenda 1. Further improvement of Group performance 2. Strong revenue growth across all business applications 3. Confirmation of financial strength 4. New in-orbit resources to serve the most dynamic markets objectives raised 21

22 objectives raised Revenue : above M (vs. above 1 bn previously) : CAGR* > 7% (vs. 7% previously) EBITDA : > 795 M (vs. > 780 M previously) : ~ 77% each year CAPEX : 450 M per year on average 50% to 75% of Group share of net income * Compound annual growth rate 22 Assemblée Générale 9 novembre 2007

23 At Eutelsat, we deliver A unique infrastructure business model, centered on digital video and data markets Benefiting from high barriers to entry Combining growth and profitability And enjoying high visibility over future revenue streams 23

24 24 Appendix

25 Share ownership structure Public 42.89% Abertis Telecom 31.43% FSI* 25.68% * Controlled by the Caisse des Dépôts & Consignations 25