[February 24, 2017] |
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SES: Full Year 2016 Results: A Year of Acceleration and Building Differentiated Capabilities
SES S.A. (Euronext Paris:SESG) (LuxX:SESG) announced financial results
for the year ended 31 December 2016.
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SES: Full Year 2016 Results: A Year of Acceleration and Building Differentiated Capabilities (Photo: Business Wire)
Strong business fundamentals delivering solid financial performance
-
Reported revenue of EUR 2,068.8 million, up 2.7% over prior year
(+2.4% at constant FX1)
-
Revenue 2.7% lower at same scope2 and constant FX
-
Group EBITDA margin of 70.2% (2015: 74.2%); same scope2 EBITDA
margin of 73.7%
-
EUR 495.2 million gain related to O3b consolidation recognised in Q3
2016
-
Net profit attributable to SES shareholders of EUR 962.7 million
(2015: EUR 544.9 million)
-
Net debt to EBITDA ratio3 3.09x (2015: 2.54x); O3b
refinanced with EUR 60 million annual synergies
-
Commitment to progressive dividend re-affirmed with a proposed
dividend per A-share of EUR 1.34
Building differentiated, future-proof capabilities to deliver
sustained profitable growth and returns
-
Substantial contract backlog increased to EUR 8.1 billion (2015: EUR
7.4 billion)
-
HDTV grew 7.2% (YOY) to 2,495 channels; now signed 21 commercial UHD
channels
-
O3b annual revenue up by over 90% (YOY), improving business mix and
growth profile in Enterprise
-
Expanding leading aero position with Global Eagle Entertainment, Gogo,
Panasonic Avionics and Thales
-
9% growth (YOY) in number of global government customers, including
new SES GS contracts
____________________
1 "Constant FX" restates comparative figures to
neutralise currency variations and thus facilitate comparison 2 "Same
scope" excludes the impact of the consolidation of RR Media and O3b
during 2016 (including transaction-related costs) 3 Based
on rating agency methodology (treats hybrid bonds as 50% debt and 50%
equity). Under IFRS (treats hybrid bonds as 100% equity), Net Debt to
EBITDA ratio was 2.65 times at 31 December 2016 (31 December 2015: 2.54
times)
Karim Michel Sabbagh, President and CEO, commented: "2016 was a
year of acceleration for SES. We continued to execute our strategy of
building differentiated capabilities in the four market verticals. This
contributed to delivering 2.7% growth in reported revenue and SES's
highest ever contract backlog.
In Video, SES continued to enhance the viewing experience, adding nearly
170 HDTV channels and grew in UHD to 21 commercial channels. SES
accelerated the scale-up of capabilities across the value chain through
the creation of MX1, which now provides value-added ancillary
capabilities to over 2,750 global TV channels and more than 120 Video on
Demand platforms.
Acquiring the remaining shares in O3b allowed SES to bring it fully into
the group, which is now uniquely placed to deliver ubiquitous managed
network solutions for our data customers. The efficient integration of
GEO-MEO capabilities enabled SES to increase the number of prime global
and regional enterprise customers and provides a strong growth engine
for 2017 and beyond.
Mobility revenue grew 67% at same scope and constant FX and almost
doubled in 2016 as reported. SES is now the partner of choice for the
four major global providers of inflight connectivity and entertainment.
The agreement with Thales for SES-17, and further agreements with Global
Eagle Entertainment, Gogo and Panasonic Avionics, increased SES's
significant Mobility backlog and validates our differentiated approach
of building customised and scalable satellite-enabled solutions.
SES's Government business continued to recover in the U.S. as we are
increasingly able to deliver services across the value chain. This
includes customised end-to-end solutions, such as TROJAN. 2016 also
marked the first joint award for SES and O3b by the U.S. Department of
Defense. Equally important is SES's growth in international Government
clients in 2016, including an important end-to-end service agreement for
NATO's AGS.
In RR Media and O3b, SES acquired two important growth accelerators and
realised EUR 60 million of annual financing synergies from fully
refinancing the O3b debt, commencing in 2017. These were supported by
EUR 2.2 billion of new financing completed within SES's financial
framework.
SES is committed to building the business with strategic clarity, value
accretive investments and strong execution. These fundamentals support
our objective of delivering sustained and profitable growth in all four
market verticals, and will enable SES to continue to generate attractive
long-term returns for shareholders."
About SES
SES is the world-leading satellite operator and the first to deliver a
differentiated and scalable GEO-MEO offering worldwide, with more than
50 satellites in Geostationary Earth Orbit (GEO) and 12 in Medium Earth
Orbit (MEO). SES focuses on value-added, end-to-end solutions in four
key market verticals (Video, Enterprise, Mobility and Government). It
provides satellite communications services to broadcasters, content and
internet service providers, mobile and fixed network operators,
governments and institutions, and businesses worldwide. SES's portfolio
includes the ASTRA satellite system, which has the largest
Direct-to-Home (DTH) television reach in Europe, and O3b Networks, a
global managed data communications service provider. Another SES
subsidiary, MX1, is a leading media service provider and offers a full
suite of innovative digital video and media services. Further
information available at: www.ses.com
OPERATIONAL REVIEW
SES is focused on delivering flexible and scalable global capabilities,
and is uniquely positioned to provide comprehensive end-to-end solutions
across each of the four market verticals - Video, Enterprise, Mobility
and Government.
As a result of SES's commercial activity in 2016, the group's fully
protected contract backlog increased from EUR 7.4 billion to EUR 8.1
billion for the year ended 31 December 2016. This included EUR 0.3
billion from O3b and EUR 0.1 billion from RR Media, which were
consolidated by SES during 2016.
Video: 68% of group revenue (2015: 66%)
-
Reported revenue grew 4.7% to EUR 1,398.8 million (+4.6% at constant
FX)
-
First contribution from RR Media complemented 0.4% growth at same
scope and constant FX
-
HDTV up 7.2% (YOY) to 2,495 channels; growing UHD to 21 global
commercial channels
-
Expanded international capabilities with SES-9 and acquisition of RR
Media
SES's global Video business benefits from the unique combination of
prime neighbourhoods, substantial technical reach of over 317 million
households, hybrid platforms and ancillary services. These create
significant value for over 600 broadcast clients served by SES and MX1
through long-term commitments.
Reported revenue benefited from the contribution of RR Media, which was
consolidated on 6 July 2016 and merged with SES Platform Services to
create MX1. As the world's leading media services provider, MX1 is
entrusted with the distribution of over 2,750 global TV channels
(including over 500 channels for which MX1 delivers fully managed
playout services) and more than 120 Video on Demand (VoD) platforms.
The transition of Standard Definition (SD) to High Definition (HD)
viewing formats is an important growth driver for SES. Since 31 December
2015, the number of HDTV channels broadcast over SES's global fleet
increased by 7.2% to 2,495 HDTV channels. HDTV channels now represent
33.1% of SES's total TV channel count (31 December 2015: 31.2%), which
also grew from 7,457 channels to 7,538 channels in 2016.
In Europe, SES's HDTV channel count grew by nearly 100 channels (or 14%)
with the benefit of important new contracts and capacity renewals with a
range of Pay-TV operators and Free-to-Air broadcasters. As a result,
Europe HDTV penetration grew from 26% in December 2015 to 29% in
December 2016. Many of these contracts also included ancillary services,
which complemented the capacity agreements. For example, in December
2016, MX1 secured an additional contract to support the introduction of
Sky's first free-to-air channel, Sky Sports News, in Germany and Austria
via satellite.
Other notable long-term European video contracts in 2016 included a
capacity renewal and extension with M7 Group to carry additional HDTV
channels in Central and Eastern Europe; an agreement to broadcast NHK
WORLD TV in HD; and an agreement for MX1 to provide content distribution
services for the broadcast of English Premier League matches in HD to TV
service platforms, channels and networks across the Americas, Asia,
Europe and the Middle East.
In December 2016, CANAL+ and SES signed a multi-year and
multi-transponder agreement, re-affirming CANAL+ Group's long-term
commitment to satellite and resulting in a significant increase in
contract backlog from the customer.
Additionally in December 2016, MX1 signed a multi-year agreement to
manage the technical services and satellite transmission of Eurosport
1HD on SES's HD+ platform in Germany. The new channel increased HD+'s
encrypted HDTV offering to 23 channels, in addition to 35 free-to-air HD
channels, which are now broadcast to 2.1 million paying subscribers (31
December 2015: 1.8 million).
SES has continued to maintain strong momentum in the introduction of
commercial Ultra HD (UHD). SES has now secured agreements for 21
commercial UHD channels (31 December 2015: eight). These channels
include the first two UHD channels launched by Sky Deutschland - Sky
Sport Bundesliga UHD and Sky Sport UHD.
SES's UHD distribution platform serving cable operators and
multi-channel television platforms throughout North America is now home
to nine linear UHD channels. During 2016, Travelxp 4K, 4KUNIVERSE,
Nature Relaxation 4K, INsight TV and C4K360 joined SES's UHD
neighbourhood in North America (hosted on SES-1, SES-3 and AMC-18),
which reaches over 100 million households.
In August 2016, bobbles.tv contracted SES capacity and MX1 services to
launch a new global TV platform for expatriates living in Europe. This
contract highlights the complementarity of satellite and terrestrial, as
subscribers can select the Direct to Home (DTH) and/or the Over the Top
(OTT) package. Under the agreement, SES and MX1 provide DTH and OTT
back-end solutions, as well as distribution services via satellite and
content delivery networks.
On 1 June 2016, SES-9 was brought into commercial service increasing
capacity over important markets in the Asia-Pacific region and
contributing to the further globalisation of SES's video business. The
satellite, co-located with SES-7, enables SES to expand a major video
neighbourhood, which already serves over 22 million households. Prior to
SES-9's entry into service, SES announced a multi-year,
multi-transponder agreement with Sky Cable, the Philippines' largest
cable TV operator, to deploy a nationwide DTH service. During the course
of 2016, SES also continued the expansion of video platforms in South
Asia, including agreements with key existing customers for capacity on
SES-9.
Enterprise: 12% of group revenue (2015: 14%)
-
Reported revenue of EUR 252.0 million; down 13.1% (-13.7% at constant
FX)
-
Revenue down 20.4% at same scope and constant FX
-
Business mix and growth profile significantly improved by O3b
consolidation (1 August 2016)
-
O3b total revenue grew over 90% (YOY) to USD 109 million in 2016, of
which Enterprise represented 50% and grew by 66% (YOY)
Enterprise revenue was 20.4% lower than the prior year at same scope and
constant FX, or 17.8% lower excluding the contribution to 2015 revenue
from capacity contracted to ARSAT, in advance of the planned migration
to its own satellite, and the impact of capacity renewal with EchoStar
on AMC-16.
Lower revenue derived from wholesale capacity contracted to small and
medium-sized resellers for point-to-point applications was the main
contributor to the lower 2016 results at same scope. SES has continued
to reposition the Enterprise business and, as a result, these customers
now represent around 2% of group revenue (2015: around 4%).
In August 2016, SES acquired the remaining shares of O3b, which operates
a unique, global high throughput satellite (HTS) constellation at Medium
Earth Orbit (MEO). In its second full year of commercial operations, O3b
has generated USD 109 million of revenue, which represents an increase
over the prior year of over 90%. O3b now serves 52 different customers
around the world, of which around 65% have increased their initial
bandwidth and services commitments since O3b began commercial operations
in September 2014.
Year-on-year growth in O3b's enterprise revenue of 66% was a significant
contributor to overall development in 2016, driven by increased demand
from existing customers and new business contracts. During 2016,
customers such as Digicel Pacific, Palau National Communications
Corporation, SpeedCast International and Our Telekom contracted
incremental O3b capacity.
In October 2016, RCS-Communication increased its capacity requirement to
support increasing demand for cloud-based applications and enterprise
resource planning systems in South Sudan. In addition to incremental
capacity, RCS also became the first customer to implement O3b Performance
Services Diversity solution, which uses a software defined
networking platform to improve overall network reliability and
resilience.
In January 2017, Palau Telecoms, Timor Telecom and Presta Bist were the
most recent O3b customers to renew and expand their current service
requirements. Having upgraded a number of times since 2014, Timor
Telecom now receives more than one Gigabit per second (Gbps) of
fibre-equivalent connectivity with network availability exceeding 99.9%.
Palau Telecoms has increased network capacity five times in the last 24
months, nearly doubling its service capacity since going live over the
O3b network to keep pace with growing subscriber demand.
In addition to O3b, SES has continued to expand commercial relationships
with major global and regional enterprise customers.
In February 2016, SES launched the Enterprise+ Broadband service across
five markets in Africa, providing a simple, affordable and flexible
connectivity platform for service providers, and delivering up to one
Gbps with 99.5% service availability.
Enterprise+ Broadband was the first product to be launched as part of
Plus, SES's next generation data network that will provide customised
solutions for Enterprise, Mobility and Government clients. SES is the
only operator able to combine multiple satellite technologies (GEO wide
beam, GEO HTS and MEO HTS) across a range of spectrum (C-, X-, Ku-,
Ka-band), with a robust global management network and innovative
IP-based solutions to optimally serve any customer requirement around
the world.
In April 2016, SES secured a managed service agreement with Facebook to
provide high-speed connectivity solutions to Sub-Saharan Africa, using
SES's customised Enterprise+ Broadband services. The contract supports
Facebook's Express Wi-Fi programme and involved designing a highly
tailored solution, which uses SES satellite capacity and supporting data
centre and implementation services.
In May 2016, SES and Gilat Satellite Networks Ltd. launched SES
Enterprise+ Hybrid Broadband in Asia, an innovative solution using
capacity on SES-9 and Gilat's hybrid terminal to provide cost-effective
Internet connectivity to underserved areas at improved download speeds.
In addition, SES established a new partnership with Indonesia's largest
telecommunications services provider, PT Telekomunikasi Indonesia, to
deliver connectivity also using SES-9 capacity.
Mobility: 6% of group revenue (2015: 3%)
-
Reported revenue grew by 95.4% to EUR 133.7 million (up 95.3% at
constant FX)
-
Revenue grew by 67.3% at same scope and constant FX
-
Enhanced SES's position as partner of choice to the four major global
IFC/IFE providers
-
Growing maritime business by scaling up capabilities and solutions,
including addition of O3b
Reported revenue grew 67.3%, at same scope and constant FX, driven by
significant commercial agreements secured for aeronautical and maritime
services.
SES has secured major, long-term commitments for existing and future
capacity, as well as services, with Global Eagle Entertainment (GEE),
Gogo, Panasonic Avionics and Thales. Through these relationships, SES is
now the partner of choice to all four of the world's leading providers
of inflight connectivity (IFC) and inflight entertainment (IFE), which
collectively serve nearly 90% of the total aircraft currently connected
worldwide.
In February 2016, SES and Panasonic Avionics signed major, multi-year
agreements for HTS and wide beam capacity aboard SES-14 and SES-15 to
serve airline passengers throughout the Americas. Panasonic Avionics
will also utilise the capacity to serve growing maritime markets, as
well as oil and gas operations.
Also in February 2016, SES secured a major, long-term agreement with
Gogo for HTS and wide beam capacity on SES-14 and SES-15.
SES-14 and SES-15 will deliver optimised coverage and solutions to meet
the growing demand for high-speed connectivity and inflight
entertainment on travel routes over the Americas, Caribbean and North
Atlantic. These satellites, along with SES-12, are scheduled for launch
in 2017 and will significantly enhance SES's global network of
multi-layered (HTS and wide beam capacity) and multi-band capacity to
meet the specific requirements of the evolving aeronautical market.
In September 2016, SES entered into a long-term commercial agreement
with Thales to offer FlytLIVE, using SES-17, across the Americas and
over the Atlantic Ocean. FlytLIVE is a new connectivity solution with
full Internet services, including video streaming, games, social media
and live television for passengers. Thales will launch FlytLIVE during
2017 on an SES-enabled network in advance of the launch of SES-17, an
optimised Ka-band high throughput satellite, in 2020. The total value of
the commitment made by Thales represents a significant share of the
expected investment in the project.
In December 2016, GEE acquired a Ku-band payload on-board AMC-3 to
expand their network capacity in North America, as well as the Gulf of
Mexico and the Caribbean, for their airline customers. SES will operate
the non-station-kept satellite, which is well positioned to play a vital
role in GEE's delivery of connectivity solutions. This was then
followed, in January 2017, by a further important multi-transponder
agreement with a leading global IFC/IFE provider for capacity across
SES's existing network, as well as supporting ground infrastructure.
SES's expanded maritime solutions, including O3b, also contributed to
growth in 2016. Since entering commercial service in September 2014, O3b
has expanded its commercial relationship with Royal Caribbean Cruises
from providing capacity-only services to two cruise ships to delivering
a fully managed end-to-end solution across 11 cruise ships. This
contributed to year-on-year growth of 66% in O3b's mobility revenue for
2016.
In May 2016, SeaVsat selected SES's Enterprise+ Broadband solution and
contracted additional satellite capacity to deliver connectivity and
Voice over Internet P (VoIP) services to their maritime customers.
In September 2016, SES launched the global Maritime+ service, a managed
connectivity service that combines SES's global network infrastructure
and hybrid satellite capacity with the latest technology from VT iDirect.
In October 2016, O3b and RigNet announced an agreement to provide O3b
services for MODEC's floating production storage and offloading vessels,
situated off the coast of Brazil. The O3b solution will enable MODEC to
deliver operational decisions in real time, thus improving overall
production and operating efficiency.
In January 2017, SES announced an important partnership with Satcom
Global to deliver a worldwide managed mobility service. The solution
will form a crucial part of Aura, Satcom Global's new Ku-band Very Small
Aperture Terminal (VSAT) service, which will provide seamless and
reliable high-speed connectivity to hundreds of maritime, offshore and
land customers.
Government: 12% of group revenue (2015: 13%)
-
Reported revenue of EUR 241.8 million, down 6.2% (-6.6% at constant FX)
-
Revenue 9.5% lower at same scope and constant FX, with growth in H2
2016 compared with H1 2016
-
U.S. Army TROJAN and joint SES GS/O3b contracts delivering important
U.S. government backlog
-
Expanded global business with number of total government customers
grown to 62 (up 9% YOY)
At same scope and constant FX, revenue was 9.5% lower than 2015, which
had benefitted from the accelerated revenue contribution associated with
the construction phase of the Wide Area Augmentation System (WAAS) and
Global-Scale Observations of the Limb and Disc (GOLD) hosted payloads.
Excluding these two U.S. government-funded payloads, revenue was 5.1%
lower.
For over 40 years, SES Government Solutions (SES GS) has been providing
satellite communications solutions to a range of U.S. government,
intelligence and civilian agencies. In 2016, SES GS continued to recover
from the impact of the U.S. budget sequestration and benefit from its
ability to deliver differentiated services across the value chain.
In April 2016, SES GS was the sole winner of two important U.S.
government TROJAN follow-on contracts, supporting the U.S. Army
Intelligence and Security Command (INSCOM). Both contracts were secured
as Blanket Purchase Agreements with five-year performance periods, and
involved upgrading the original contracts from bandwidth-only to
delivering a customised and managed global end-to-end solution. This
program represents the largest government contract ever awarded to SES
GS, with a total potential value of up to USD 285 million.
In August 2016, SES GS secured a contract to provide O3b's high
throughput and low latency managed solution for a U.S. Department of
Defense (DoD) end-user. The solution provides the capability to transfer
large files from remote locations, allowing end-users to view
simultaneous HD-quality videos and enhancing real time situational
awareness. The contract also enables the U.S. government to order
additional O3b services to meet surge requirements.
This contract followed the completion of SES GS and O3b's first managed
services installation for the U.S. National Oceanic and Atmospheric
Administration (NOAA), which provides an uninterrupted high-speed data
connection between NOAA's National Weather Service Office (NWSO) in the
Pacific and the primary NWSO in Hawaii. These contracts contributed to
year-on-year growth in O3b's Government revenue of over 500% for the
year ended 31 December 2016.
In 2016, SES has continued to globalise its Government business by
adding new customers, capabilities, products and solutions. In January
2016, SES secured a new contract with the Kativik Regional Government,
in Canada, to provide connectivity services across the northern Quebec
region. The contract, which began in June 2016, uses 12 transponders to
deliver critical communications capabilities to more than 14 remote
communities by delivering up to three times the amount of bandwidth that
was previously available.
In September 2016, SES introduced a first Government+ product offering
designed to provide enhanced situational awareness for border security,
special event monitoring and disaster response missions around the
world. Tactical Persistent Surveillance (TPS) is a highly portable and
cost effective solution, which hosts a variety of advanced sensor and
communications payload options at altitudes of up to 1,000 feet. The
advanced sensor payload can transmit or backhaul Intelligence,
Surveillance and Reconnaissance (ISR) video and data via satellite to a
centralised monitoring and control centre.
In October 2016, SES, as a partner in emergency.lu, provided vital
connectivity services in Haiti to support disaster recovery efforts
following Hurricane Matthew. Using the emergency.lu terminals and
dedicated SES capacity, responders were able to re-establish vital
communications links and improve the effectiveness of the humanitarian
relief efforts.
In November 2016, LuxGovSat, a public-private partnership between the
Luxembourg government and SES, secured a long-term agreement to support
NATO's Alliance Ground Surveillance (AGS). Under the contract, LuxGovSat
will deliver an end-to-end service, including commercial satellite
capacity and associated managed services.
Fleet Utilisation
As of 31 December 2016, SES's GEO fleet comprised 1,530 available (36
MHz equivalent) transponders (31 December 2015: 1,502 available
transponders). This included the new capacity from SES-9's entry into
commercial service on 1 June 2016, offset by the acquisition of a
Ku-band payload on AMC-3 by GEE in December 2016.
The recent GEE agreement demonstrates SES's overall strategy to build a
robust, global and multi-layered network of traditional and high
throughput capacity to meet the specific needs and requirements of high
growth sectors.
In Q1 2016, power degradation on NSS-6 resulted in a reduction of five
commercially available transponders, while no existing commercial
traffic was impacted. The satellite will be replaced by SES-12, which is
expected to be launched end-2017. There were no other events affecting
commercially available capacity on the SES fleet in the year.
Of the group's total available capacity, 1,102 transponders were
utilised (31 December 2015: 1,093 utilised transponders). Consequently,
the utilisation rate was 72.0% as at 31 December 2016 (31 December 2015:
72.8%) for SES's GEO fleet.
Future satellite capacity
COMMITTED LAUNCH SCHEDULE
Satellite
|
|
Region
|
|
Application
|
|
Launch Date
|
SES-10
|
|
Latin America
|
|
Video, Enterprise
|
|
Q1 2017
|
SES-11
|
|
North America
|
|
Video, Enterprise
|
|
H1 2017
|
SES-12(1)
|
|
Asia-Pacific
|
|
Video, Enterprise, Mobility
|
|
H2 2017
|
SES-14(1)
|
|
Latin America
|
|
Video, Enterprise, Mobility
|
|
H2 2017
|
SES-15(1)
|
|
North America
|
|
Enterprise, Mobility, Government
|
|
H1 2017
|
SES-16/GovSat-1(2)
|
|
Europe/MENA
|
|
Government
|
|
H2 2017
|
O3b (satellites 13-16)
|
|
Global
|
|
Enterprise, Mobility, Government
|
|
H1 2018
|
O3b (satellites 17-20)
|
|
Global
|
|
Enterprise, Mobility, Government
|
|
H2 2019
|
SES-17
|
|
Americas
|
|
Enterprise, Mobility, Government
|
|
2020
|
1) To be positioned using electric orbit raising (entry into service
typically four to six months after launch) 2) Procured by
LuxGovSat
SES plans to launch six satellites by the end of 2017, adding important
expansion capacity in fast-growing markets. These programmes are
complemented by the addition of eight new satellites to O3b's unique
high throughput and low latency MEO constellation, starting in 2018.
These launches through 2019, plus SES-9 (which entered into service on 1
June 2016), are expected to contribute up to EUR 750 million of
incremental annualised revenue at 'steady-state' utilisation (equivalent
to over 35% of SES's 2016 group revenue), where important anchor
customers have already been secured.
In September 2016, SES announced the procurement of SES-17, a Ka-band
high throughput satellite that will provide optimal coverage for the
busiest data corridors in the Americas and over the Atlantic Ocean. The
satellite is expected to be launched in 2020 and is expected to add a
further EUR 100 million of annualised revenue at 'steady-state'
utilisation.
SES-10 is expected to be launched by the end of March 2017 and will be
the first satellite to use a flight-proven SpaceX Falcon 9 orbital
rocket booster. The satellite will provide enhanced coverage and
important capacity expansion over Latin America.
Management Update
In February 2017, the Board of SES extended the SES Executive Committee
with the appointments of Steve Collar, CEO of O3b; John Purvis, Chief
Legal Officer; and Evie Roos, Chief Human Resources Officer. The
Executive Committee is in charge of the daily management of the group.
John has been with SES since 2001, while Evie joined the company in
2013. The appointment of Steve will further align SES's differentiated
GEO-MEO capabilities and approach, following the consolidation of O3b in
August 2016.
FINANCIAL REVIEW
Income Statement
REVENUE BY MARKET VERTICAL
EUR million
|
|
2016
|
|
2015
|
|
Change
(reported)
|
|
Change
(constant FX)
|
|
Change (same scope
and constant FX)(1)
|
Video
|
|
1,398.8
|
|
1,335.6
|
|
+4.7%
|
|
+4.6%
|
|
+0.4%
|
Enterprise
|
|
252.0
|
|
289.9
|
|
-13.1%
|
|
-13.7%
|
|
-20.4%
|
Mobility
|
|
133.7
|
|
68.4
|
|
+95.4%
|
|
+95.3%
|
|
+67.3%
|
Government
|
|
241.8
|
|
257.7
|
|
-6.2%
|
|
-6.6%
|
|
-9.5%
|
Other(2)
|
|
42.5
|
|
62.9
|
|
n/m
|
|
n/m
|
|
n/m
|
Group Total
|
|
2,068.8
|
|
2,014.5
|
|
+2.7%
|
|
+2.4%
|
|
-2.7%
|
1) Excluding contribution from RR Media and O3b from date of
consolidation to 31 December 2016 2) Other includes revenue
not directly applicable to a particular vertical and revenue
contributions from interim missions
Reported revenue was 2.7% higher than the prior year (up 2.4% at
constant FX) and included a contribution of EUR 62.9 million (2015: nil)
from the consolidation of RR Media (from 6 July 2016) and EUR 49.7
million from O3b (from 1 August 2016), before EUR 8.8 million of
inter-company eliminations.
Excluding RR Media and O3b, revenue of EUR 1,965.0 million was EUR 54.8
million (or 2.7%) lower at same scope and constant FX. Of this, EUR 40.4
million was due to the impact of the revenue contribution from 'legacy
items', mainly in 2015. These items comprised the sale of European
transponders, the planned migration of capacity contracted by ARSAT to
its own satellite, the AMC-16 capacity renewal and the accelerated
revenue associated with the construction phase of the WAAS and GOLD
hosted payloads. Other revenue of EUR 42.5 million included important
periodic revenue contributions.
OPERATING EXPENSES AND EBITDA
EUR million
|
|
2016
|
|
2015
|
|
Change
|
|
Change (%)
|
Operating expenses
|
|
(617.3)
|
|
(520.3)
|
|
(97.0)
|
|
-18.7%
|
Operating expenses (constant FX)
|
|
(617.3)
|
|
(519.7)
|
|
(97.6)
|
|
-18.8%
|
Operating expenses (same scope and constant FX)(1)
|
|
(517.2)
|
|
(519.7)
|
|
+2.5
|
|
+0.5%
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
1,451.5
|
|
1,494.2
|
|
(42.7)
|
|
-2.9%
|
EBITDA (constant FX)
|
|
1,451.5
|
|
1,500.1
|
|
(48.6)
|
|
-3.2%
|
EBITDA (same scope and constant FX)(1)
|
|
1,447.8
|
|
1,500.1
|
|
(52.3)
|
|
-3.5%
|
1) Excluding impact of RR Media and O3b from date of consolidation to
31 December 2016 (including transaction-related costs)
Operating expenses, at same scope and constant FX, improved by
EUR 2.5 million (or 0.5%) due to on-going efficiencies. As reported,
operating expenses were 18.7% higher due to the increase in costs
following the consolidation of RR Media and O3b.
EBITDA was 2.9% lower than the prior year and 3.2% lower at
constant FX. The reported EBITDA margin was 70.2% (2015: 74.2%) and
73.7% at same scope. During the year, the positive EBITDA contribution
from RR Media and O3b was mostly offset by the non-recurring
transaction-related costs associated with the acquisition of the two
businesses.
DEPRECIATION, AMORTISATION AND OPERATING PROFIT BEFORE GAIN ON DEEMED
DISPOSAL OF EQUITY INTEREST
EUR million
|
|
2016
|
|
2015
|
|
Change
|
|
Change (%)
|
Depreciation
|
|
(560.5)
|
|
(536.8)
|
|
(23.7)
|
|
-4.4%
|
Amortisation
|
|
(70.7)
|
|
(62.8)
|
|
(7.9)
|
|
-12.5%
|
Depreciation and amortisation
|
|
(631.2)
|
|
(599.6)
|
|
(31.6)
|
|
-5.3%
|
Depreciation and amortisation (constant FX)
|
|
(631.2)
|
|
(602.1)
|
|
(29.1)
|
|
-4.8%
|
|
|
|
|
|
|
|
|
|
Operating profit before gain on deemed disposal of equity interest
|
|
820.3
|
|
894.6
|
|
(74.3)
|
|
-8.3%
|
Operating profit before gain on deemed disposal of equity
interest (constant FX)
|
|
820.3
|
|
898.0
|
|
(77.7)
|
|
-8.6%
|
Depreciation and amortisation, at same scope and constant FX,
reduced by EUR 21.8 million (or 3.6%) compared with the prior year and
increased by 5.3% as reported due to the consolidation of RR Media and
O3b.
As a result, Operating profit before gain on deemed disposal of
equity interest of EUR 820.3 million was 8.3% lower than the prior
year (-8.6% at constant FX).
PROFIT ATTRIBUTABLE TO SES SHAREHOLDERS
EUR million
|
|
2016
|
|
2015
|
|
Change
|
|
Change (%)
|
Gain on deemed disposal of equity interest
|
|
495.2
|
|
--
|
|
n/m
|
|
n/m
|
|
|
|
|
|
|
|
|
|
Net interest expense and other
|
|
(228.3)
|
|
(196.5)
|
|
(31.8)
|
|
-16.2%
|
Capitalised interest
|
|
39.7
|
|
22.1
|
|
+17.6
|
|
+79.4%
|
Net foreign exchange gains
|
|
14.3
|
|
38.7
|
|
(24.4)
|
|
-63.0%
|
Net financing costs
|
|
(174.3)
|
|
(135.7)
|
|
(38.6)
|
|
-28.4%
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
|
1,141.2
|
|
758.9
|
|
+382.3
|
|
+50.4%
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
(114.1)
|
|
(84.9)
|
|
(29.2)
|
|
-34.5%
|
Profit after tax
|
|
1,027.1
|
|
674.0
|
|
+353.1
|
|
+52.4%
|
|
|
|
|
|
|
|
|
|
Share of associates' result
|
|
(62.4)
|
|
(126.7)
|
|
+64.3
|
|
+50.7%
|
Non-controlling interests
|
|
(2.0)
|
|
(2.4)
|
|
+0.4
|
|
+17.7%
|
Profit attributable to SES shareholders
|
|
962.7
|
|
544.9
|
|
+417.8
|
|
+76.7%
|
|
|
|
|
|
|
|
|
|
Coupon on hybrid bonds, net of tax
|
|
(15.0)
|
|
--
|
|
n/m
|
|
n/m
|
Adjusted profit attributable to SES shareholders
|
|
947.7
|
|
544.9
|
|
+402.8
|
|
+73.9%
|
The 2016 results include a reported gain on deemed disposal of
equity interest of EUR 495.2 million, which was recognised directly
before the full consolidation of O3b.
Net financing costs at same scope were EUR 6.9 million (or 5.0%)
lower than prior year. Excluding the change in net foreign exchange
gains, net financing costs reduced by EUR 31.4 million (or 19.6%)
reflecting lower interest costs and higher capitalised interest.
Reported net financing costs were up EUR 38.6 million (or 28.4%) due to
the consolidation of RR Media and O3b. This includes non-recurring costs
of EUR 21.6 million, associated with the early refinancing of the O3b
debt, which secured EUR 60 million in financial synergies from 2017
onwards.
As presented using IFRS recognition principles, net financing costs
exclude the annual interest payments for the EUR 1.3 billion of hybrid
bonds issued during 2016 at an average coupon of 5.05%.
The group's income tax expense of EUR 114.1 million
represented an effective tax rate of 10.0% (2015: 11.2%), or
17.7% excluding the gain on deemed disposal of equity interest of EUR
495.2 million.
The effect of non-cash movements associated with SES's minority
shareholding in O3b (prior to consolidation on 1 August 2016) was the
principal contributor to the share of associates' result being
a loss of EUR 62.4 million (2015: loss of EUR 126.7 million).
The net profit attributable to SES shareholders was EUR
962.7 million (2015: EUR 544.9 million), including the EUR 495.2 million
gain on deemed disposal of equity interest. Including the full costs
associated with the hybrid bonds (treated as equity using IFRS
recognition principles) issued in 2016, adjusted profit attributable to
shareholders was EUR 947.7 million (2015: EUR 544.9 million).
Earnings per share of EUR 2.18 (2015: EUR 1.34) included the
impact of the increase in the number of shares following the group's
equity raising, completed in May 2016 and is after deducting the net of
tax coupon for the hybrid bonds.
Cash Flow and Financing
FREE CASH FLOW BEFORE FINANCING ACTIVITIES
EUR million
|
|
2016
|
|
2015
|
|
Change
|
|
Change (%)
|
Net operating cash flow
|
|
1,274.1
|
|
1,450.6
|
|
(176.5)
|
|
-12.2%
|
Investing activities
|
|
(619.5)
|
|
(560.6)
|
|
(58.9)
|
|
-10.5%
|
Free cash flow before financing and acquisitions
|
|
654.6
|
|
890.0
|
|
(235.4)
|
|
-26.4%
|
Acquisitions of RR Media and remaining O3b shares
|
|
(762.2)
|
|
--
|
|
(762.2)
|
|
n/m
|
Free cash flow before financing activities
|
|
(107.6)
|
|
890.0
|
|
(997.6)
|
|
n/m
|
Net operating cash flow was lower than the prior year due to the
impact of timing in working capital and up-front payments related to
hosted payloads in 2015. The group's cash conversion rate (measured as
the ratio of net operating cash flow to EBITDA) was 87.8% (2015: 97.1%).
Investment in new satellite programmes contributed to an increase in investing
activities. Excluding the cash outflow associated with the
consolidation of RR Media and O3b, free cash flow before
financing activities was EUR 654.6 million (2015: EUR 890.0 million)
and represented 33.3% of same scope group revenue (2015: 44.2%).
NET DEBT TO EBITDA RATIO
EUR million
|
|
2016
|
|
2015
|
|
Change
|
|
Change (%)
|
Loans and borrowings(1)
|
|
4,427.4
|
|
4,431.7
|
|
(4.3)
|
|
-0.1%
|
Cash and equivalents
|
|
(587.5)
|
|
(639.7)
|
|
+52.2
|
|
+8.2%
|
Net Debt
|
|
3,839.9
|
|
3,792.0
|
|
+47.9
|
|
+1.3%
|
|
|
|
|
|
|
|
|
|
Net Debt / EBITDA (IFRS)
|
|
2.65 times
|
|
2.54 times
|
|
|
|
|
Net Debt / EBITDA (rating agency)(2)
|
|
3.09 times
|
|
2.54 times
|
|
|
|
|
Weighted average interest cost(3)
|
|
3.87%
|
|
3.86%
|
|
|
|
|
Weighted average debt maturity
|
|
7.8 years
|
|
8.4 years
|
|
|
|
|
1) As presented using IFRS recognition principles, where hybrid bonds
are treated as 100% equity 2) Rating agency methodology
treats the hybrid bonds as 50% debt and 50% equity 3)
Excluding loan origination costs, commitment fees and hybrid bonds
The group's Net Debt to EBITDA ratio was 3.09 times as at 31
December 2016 (31 December 2015: 2.54 times). This treats the hybrid
bonds as 50% debt and 50% equity. As presented using IFRS recognition
principles, where the hybrid bonds are treated as 100% equity, the Net
Debt to EBITDA ratio was 2.65 times.
During 2016, SES raised EUR 2.2 billion (gross) from the issuance of new
shares and the company's inaugural hybrid bond offerings.
In May 2016, SES raised total gross proceeds of EUR 909 million from the
issuance of 39.86 million new Fiduciary Depositary Receipts (FDRs) and
19.93 million new Class B shares.
This was followed by the issuance of two hybrid bonds (one in June 2016
and one in November 2016) totalling EUR 1.3 billion at an average coupon
of 5.05%. The hybrid bonds are non-dilutive instruments and receive 50%
equity treatment from each of Moody's and S&P, while classified as
equity under IFRS.
The proceeds from the equity raising and the hybrid bonds were used to
acquire the remaining shares in O3b (for EUR 638.6 million), as well as
repaying and refinancing O3b's most expensive debt facilities.
In December 2016, SES completed the refinancing of the entire USD 1.4
billion of O3b debt, generating EUR 60 million of annual financial cost
savings from 2017. The refinancing was funded using available cash,
which included the proceeds of the hybrid bond issued in November 2016.
Dividend
The Board of SES is proposing a dividend of EUR 1.34 for each Class A
share and EUR 0.536 for each Class B share, in line with SES's
commitment to a progressive dividend per share policy. This dividend,
which is subject to approval at the company's Annual General Meeting on
6 April 2017, will be paid to shareholders on 26 April 2017.
Financial Outlook
The financial outlook aims to provide shareholders with an
understanding of SES's growth trajectory, drivers and strategy execution
in each of the market verticals, as well as the group's long-term value
creation potential.
In 2016, SES achieved important milestones, extended its capabilities
across the four verticals and significantly improved the business mix
and growth profile.
SES's objective is to generate sustained growth in all market verticals,
and is supported by an improved business mix and substantial contract
backlog, which increased from EUR 7.4 billion to EUR 8.1 billion in 2016.
For 20171, SES is targeting stable to slight revenue growth
across Video and Government, complemented by a return to growth in
Enterprise and strong growth for Mobility.
SES's future revenue trajectory will benefit from the significant
contribution of recently added and forthcoming GEO and MEO investments,
which are expected to generate incremental annualised revenue of up to
EUR 750 million (equivalent to around 35% of 2016 group revenue) at
'steady-state'.
SES's EBITDA margin1 is expected to be broadly stable for
2017 and 2018 and rising slightly thereafter, while operating profit
margin1 is expected to significantly improve to more than 40%
in the medium-term.
These foundations will allow SES's to significantly grow Return on
Invested Capital (ROIC)2 to over 10% in the medium-term.
___________________________
1 On a like for like basis, assuming RR Media and O3b
had been consolidated on 1 January 2016. On this basis, 2016 EBITDA
margin of 66.7% and 2016 Operating profit margin (before gain on deemed
disposal of equity interest) of 33.3% 2 Net
Operating Profit After Tax (NOPAT) divided by average of opening and
closing shareholders' equity plus Net Debt
SUPPLEMENTARY INFORMATION
U.S. DOLLAR EXCHANGE RATE
|
|
|
|
|
2016 average
|
|
2016 closing
|
|
2015 average
|
|
2015 closing
|
EUR 1 = U.S. dollars
|
|
|
|
|
1.1060
|
|
1.0541
|
|
1.1150
|
|
1.0887
|
BUSINESS SEGMENTATION
|
|
Infrastructure
|
|
Services
|
|
Elimination/
Unallocated(1)
|
|
Group total
|
Revenue
|
|
1,698.4
|
|
610.8
|
|
(240.4)
|
|
2,068.8
|
EBITDA
|
|
1,391.2
|
|
94.5
|
|
(34.2)
|
|
1,451.5
|
|
|
|
|
|
|
|
|
|
2016 EBITDA margin
|
|
81.9%
|
|
15.5%
|
|
--
|
|
70.2%
|
2016 EBITDA margin (same scope)(2)
|
|
83.9%
|
|
17.5%
|
|
--
|
|
73.7%
|
2015 EBITDA margin (constant FX)
|
|
84.1%
|
|
16.0%
|
|
--
|
|
74.3%
|
1) Revenue elimination refers mainly to "pull through" capacity
provided by Infrastructure to Services. EBITDA impact represents
unallocated corporate expenses 2) Excluding contribution
from RR Media and O3b from date of consolidation to 31 December 2016
QUARTERLY DEVELOPMENT OF OPERATING RESULTS (REPORTED)
|
|
Q4 2015
|
|
Q1 2016
|
|
Q2 2016
|
|
Q3 2016
|
|
Q4 2016
|
Average U.S. dollar exchange rate
|
|
1.0933
|
|
1.0898
|
|
1.1314
|
|
1.1116
|
|
1.0914
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
521.9
|
|
481.6
|
|
475.2
|
|
533.3
|
|
578.7
|
Operating expenses
|
|
(134.2)
|
|
(125.4)
|
|
(131.6)
|
|
(172.2)
|
|
(188.1)
|
EBITDA
|
|
387.7
|
|
356.2
|
|
343.6
|
|
361.1
|
|
390.6
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
(143.0)
|
|
(126.4)
|
|
(124.6)
|
|
(150.2)
|
|
(159.3)
|
Amortisation
|
|
(16.5)
|
|
(15.6)
|
|
(15.6)
|
|
(18.1)
|
|
(21.4)
|
Operating profit before gain on deemed disposal of equity interest
|
|
228.2
|
|
214.2
|
|
203.4
|
|
192.8
|
|
209.9
|
QUARTERLY DEVELOPMENT OF OPERATING RESULTS (SAME SCOPE AND CONSTANT
FX)
|
|
Q4 2015
|
|
Q1 2016
|
|
Q2 2016
|
|
Q3 2016
|
|
Q4 2016
|
Revenue
|
|
521.1
|
|
480.6
|
|
482.0
|
|
490.9
|
|
520.9
|
Operating expenses
|
|
(134.0)
|
|
(125.2)
|
|
(133.4)
|
|
(127.2)
|
|
(133.8)
|
EBITDA
|
|
387.1
|
|
355.4
|
|
348.6
|
|
363.7
|
|
387.1
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
(142.8)
|
|
(126.2)
|
|
(127.0)
|
|
(131.7)
|
|
(133.5)
|
Amortisation
|
|
(16.6)
|
|
(15.6)
|
|
(15.6)
|
|
(16.0)
|
|
(18.2)
|
Operating profit before gain on deemed disposal of equity interest
|
|
227.7
|
|
213.6
|
|
206.0
|
|
216.0
|
|
235.4
|
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER
EUR million
|
|
2016
|
|
2015
|
Revenue
|
|
2,068.8
|
|
2,014.5
|
|
|
|
|
|
Cost of sales
|
|
(231.0)
|
|
(183.6)
|
Staff costs
|
|
(233.1)
|
|
(200.5)
|
Other operating expenses
|
|
(153.2)
|
|
(136.2)
|
Operating expenses
|
|
(617.3)
|
|
(520.3)
|
EBITDA(1)
|
|
1,451.5
|
|
1,494.2
|
|
|
|
|
|
Depreciation expense
|
|
(560.5)
|
|
(536.8)
|
Amortisation expense
|
|
(70.7)
|
|
(62.8)
|
Operating profit before gain on deemed disposal of equity interest
|
|
820.3
|
|
894.6
|
|
|
|
|
|
Gain on deemed disposal of equity interest
|
|
495.2
|
|
--
|
Operating profit
|
|
1,315.5
|
|
894.6
|
|
|
|
|
|
Finance income
|
|
22.8
|
|
53.1
|
Finance costs
|
|
(197.1)
|
|
(188.8)
|
Net financing costs
|
|
(174.3)
|
|
(135.7)
|
Profit before tax
|
|
1,141.2
|
|
758.9
|
|
|
|
|
|
Income tax expense
|
|
(114.1)
|
|
(84.9)
|
Profit after tax
|
|
1,027.1
|
|
674.0
|
|
|
|
|
|
Share of associates' results (net of tax)
|
|
(62.4)
|
|
(126.7)
|
Profit for the year
|
|
964.7
|
|
547.3
|
|
|
|
|
|
Non-controlling interests
|
|
(2.0)
|
|
(2.4)
|
Profit attributable to owners of the parent
|
|
962.7
|
|
544.9
|
|
|
|
|
|
Earnings per share (in EUR)(2)
|
|
|
|
|
Class A shares
|
|
2.18
|
|
1.34
|
Class B shares
|
|
0.87
|
|
0.54
|
1) Earnings before interest, tax, depreciation, amortisation and
share of associates' result (net of tax) 2) Earnings per
share is calculated as profit attributable to owners of the parent
divided by the weighted average number of shares outstanding during the
year, as adjusted to reflect the economic rights of each class of share.
For the purposes of the EPS calculation only, the net profit for the
year attributable to ordinary shareholders has been adjusted to include
the coupon, net of tax, on the perpetual bonds. Fully diluted earnings
per share are not significantly different from basic earnings per share
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER
EUR million
|
|
2016
|
|
2015
|
Property, plant and equipment
|
|
5,156.3
|
|
4,464.8
|
Assets in the course of construction
|
|
1,389.6
|
|
894.3
|
Intangible assets
|
|
5,247.7
|
|
3,587.4
|
Investment in associates
|
|
--
|
|
73.5
|
Other financial assets
|
|
6.5
|
|
60.3
|
Trade and other receivables
|
|
78.5
|
|
54.8
|
Deferred customer contract costs
|
|
29.3
|
|
--
|
Deferred tax assets
|
|
70.5
|
|
59.2
|
Total non-current assets
|
|
11,978.4
|
|
9,194.3
|
|
|
|
|
|
Inventories
|
|
30.2
|
|
8.5
|
Trade and other receivables
|
|
971.7
|
|
782.7
|
Prepayments
|
|
49.8
|
|
39.0
|
Derivatives
|
|
--
|
|
1.6
|
Income tax receivable
|
|
28.3
|
|
--
|
Cash and equivalents
|
|
587.5
|
|
639.7
|
Total current assets
|
|
1,667.5
|
|
1,471.5
|
Total assets
|
|
13,645.9
|
|
10,665.8
|
|
|
|
|
|
Equity attributable to the owners of the parent
|
|
6,806.5
|
|
3,932.5
|
Non-controlling interests
|
|
138.6
|
|
128.3
|
Total equity
|
|
6,945.1
|
|
4,060.8
|
|
|
|
|
|
Borrowings
|
|
4,223.1
|
|
4,177.9
|
Provisions
|
|
44.7
|
|
62.7
|
Deferred income
|
|
411.8
|
|
383.3
|
Deferred tax liabilities
|
|
664.2
|
|
655.9
|
Other long-term liabilities
|
|
69.1
|
|
75.9
|
Total non-current liabilities
|
|
5,412.9
|
|
5,355.7
|
|
|
|
|
|
Borrowings
|
|
204.3
|
|
253.8
|
Provisions
|
|
86.7
|
|
10.8
|
Deferred income
|
|
510.5
|
|
450.7
|
Trade and other payables
|
|
459.1
|
|
524.0
|
Derivatives
|
|
1.0
|
|
--
|
Income tax liabilities
|
|
26.3
|
|
10.0
|
Total current liabilities
|
|
1,287.9
|
|
1,249.3
|
Total liabilities
|
|
6,700.8
|
|
6,605.0
|
|
|
|
|
|
Total equity and liabilities
|
|
13,645.9
|
|
10,665.8
|
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER
EUR million
|
|
2016
|
|
2015
|
Profit before tax
|
|
1,141.2
|
|
758.9
|
|
|
|
|
|
Taxes paid during the year
|
|
(90.2)
|
|
(67.4)
|
Interest expense
|
|
142.3
|
|
155.6
|
Loan repayment fees
|
|
21.6
|
|
--
|
Depreciation and amortisation
|
|
631.2
|
|
599.6
|
Amortisation of client upfront payments
|
|
(71.4)
|
|
(66.4)
|
Gain on deemed disposal of equity interest
|
|
(495.2)
|
|
--
|
Other non-cash items in consolidated income statement
|
|
18.6
|
|
6.8
|
Consolidated operating profit before working capital changes
|
|
1,298.1
|
|
1,387.1
|
Changes in working capital
|
|
(24.0)
|
|
63.5
|
Net operating cash flow
|
|
1,274.1
|
|
1,450.6
|
|
|
|
|
|
Payments for purchases of intangible assets
|
|
(42.6)
|
|
(36.5)
|
Payments for purchases of tangible assets, net of proceeds from
disposals
|
|
(577.4)
|
|
(524.0)
|
Payments for acquisition of subsidiary, net of cash acquired
|
|
(725.5)
|
|
--
|
Net investment in equity-accounted investments
|
|
(36.7)
|
|
--
|
Other investing activities
|
|
0.5
|
|
(0.1)
|
Cash flow from investing activities
|
|
(1,381.7)
|
|
(560.6)
|
Free cash flow before financing activities
|
|
(107.6)
|
|
890.0
|
|
|
|
|
|
Proceeds from borrowings
|
|
375.5
|
|
--
|
Repayment of borrowings
|
|
(1,682.4)
|
|
(274.8)
|
Proceeds from issuance of perpetual bonds(1)
|
|
1,274.7
|
|
--
|
Interest paid
|
|
(188.5)
|
|
(180.7)
|
Dividends paid on ordinary shares, net of dividends received on
treasury shares
|
|
(527.5)
|
|
(477.2)
|
Dividends paid to non-controlling interests
|
|
(7.2)
|
|
(6.0)
|
Equity contribution by non-controlling interests
|
|
12.5
|
|
39.3
|
Issue of shares, net of the contribution in kind
|
|
882.2
|
|
218.8
|
Payments for acquisition of treasury shares
|
|
(197.6)
|
|
(192.8)
|
Proceeds from treasury shares sold and exercise of stock options
|
|
100.8
|
|
116.7
|
Other financing activities
|
|
2.6
|
|
(1.6)
|
Cash flow from financing activities
|
|
45.1
|
|
(758.3)
|
Free cash flow after financing activities
|
|
(62.5)
|
|
131.7
|
|
|
|
|
|
Net foreign exchange movements
|
|
10.3
|
|
(16.5)
|
|
|
|
|
|
Cash and equivalents at beginning of the year
|
|
639.7
|
|
524.5
|
Net increase/(decrease) in cash and equivalents
|
|
(52.2)
|
|
115.2
|
Cash and equivalents at end of the year
|
|
587.5
|
|
639.7
|
1) Net of transaction costs
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SES White papers are available under: https://www.ses.com/news/whitepapers
Presentation of Results:
A presentation of the results for investors and analysts will be hosted
at 10.30 CET on 24 February 2017, and will be broadcast via webcast and
conference call. The details for the conference call are as follows:
Belgium
|
|
|
|
+32 (0)2 620 0138
|
France
|
|
|
|
+33 (0)1 76 77 22 28
|
Germany
|
|
|
|
+49 (0)69 2222 10623
|
Luxembourg
|
|
|
|
800 27093
|
U.K.
|
|
|
|
+44 (0)20 3427 1906
|
U.S.A.
|
|
|
|
+1 212 444 0481
|
|
Confirmation code:
|
|
|
|
6442835
|
The presentation will be available for download from the Investors
section of the SES website (www.ses.com),
and a replay will be available for two weeks from the Investors section
of the SES website.
Disclaimer
This presentation does not, in any jurisdiction, and in particular not
in the U.S., constitute or form part of, and should not be construed as,
any offer for sale of, or solicitation of any offer to buy, or any
investment advice in connection with, any securities of SES nor should
it or any part of it form the basis of, or be relied on in connection
with, any contract or commitment whatsoever.
No representation or warranty, express or implied, is or will be made by
SES, its directors, officers or advisors or any other person as to the
accuracy, completeness or fairness of the information or opinions
contained in this presentation, and any reliance you place on them will
be at your sole risk. Without prejudice to the foregoing, none of SES or
its directors, officers or advisors accept any liability whatsoever for
any loss however arising, directly or indirectly, from use of this
presentation or its contents or otherwise arising in connection
therewith.
This presentation includes "forward-looking statements". All statements
other than statements of historical fact included in this presentation,
including, without limitation, those regarding SES's financial position,
business strategy, plans and objectives of management for future
operations (including development plans and objectives relating to SES
products and services) are forward-looking statements. Such
forward-looking statements involve known and unknown risks,
uncertainties and other important factors that could cause the actual
results, performance or achievements of SES to be materially different
from future results, performance or achievements expressed or implied by
such forward-looking statements. Such forward-looking statements are
based on numerous assumptions regarding SES and its subsidiaries and
affiliates, present and future business strategies and the environment
in which SES will operate in the future and such assumptions may or may
not prove to be correct. These forward-looking statements speak only as
at the date of this presentation. Forward-looking statements contained
in this presentation regarding past trends or activities should not be
taken as a representation that such trends or activities will continue
in the future. SES and its directors, officers and advisors do not
undertake any obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170223006895/en/
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