SES Delivers Growth, Creating Shareholder Value; Consolidated Financial Results for the Year to 31 December 2005.BETZDORF, Luxembourg Betzdorf (Luxembourgish: Betzder) is a commune and village in eastern Luxembourg. It is part of the canton of Grevenmacher, which is part of the district of Grevenmacher. The commune's administrative centre is Berg. -- SES GLOBAL: E[acute accent acute accent n. A mark (´) indicating: a. that a vowel is close or tense, as é in French été. b. that a vowel or syllable has a high or rising pitch, as in Chinese or Ancient Greek. c. ]HIGHLIGHTS E[acute accent]--Revenues grew 16.7% to EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 1,258m (EUR 1,078m), with recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenues increasing by 13.4% E[acute accent]--EBITDA rose 11.9% to EUR 881m (EUR 787m), while Operating Profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. (EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). ) rose 21.1% to EUR 476m (EUR 393m) E[acute accent]--Net Profit rose by 12.1% to EUR 382m (EUR 341m) while EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. rose 15.5% to 67 cents (58 cents) E[acute accent]--Free Cash Flow was substantial at EUR 433m (EUR 169m) E[acute accent]--Dividend of EUR 0.40 per share proposed, a 33% increase E[acute accent]--2 spacecraft spacecraft Vehicle designed to operate, with or without a crew, in a controlled flight pattern above Earth's lower atmosphere. Since streamlining is not needed in the high vacuum of this environment, a spacecraft's shape is designed according to its mission (see launched and 3 new spacecraft construction programmes initiated E[acute accent]--11% increase in contracted capacity, to 549 transponders E[acute accent]--Satellite fleet utilisation remained stable at 74%, reflecting new capacity in orbit E[acute accent]--EUR 517 million share buyback Buyback The buying back of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buyback shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may and cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. programme executed E[acute accent]--USD 1.1 billion acquisition of New Skies Satellites announced E[acute accent]Romain Romain may refer to:
tr.v. val·i·dat·ed, val·i·dat·ing, val·i·dates 1. To declare or make legally valid. 2. To mark with an indication of official sanction. 3. by these strong results. Our market positioning has improved and we have achieved excellent returns for our investors during 2005. Strong cash flow generation has substantially exceeded the needs of our investment programme. This has allowed us to deliver outstanding total returns to shareholders, comprised of growing EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become , significantly increased dividends, and our share buyback and cancellation programme. E[acute accent]We have continued to invest in developing satellite-centric service offerings within SES and these have contributed to the financial growth recorded in the period. Their contribution will grow over the coming years. E[acute accent]Prior to the year end we announced the acquisition of New Skies Satellites, a transaction which strengthens our strategic positioning and delivers additional financial and operational growth opportunities. This has now been approved by New Skies' shareholders, while the US Department of Justice and the German authorities have completed their reviews. The transaction could be closed during the second quarter. E[acute accent]Our objective remains to further develop our position as a leading worldwide satellite infrastructure and services provider and, in doing so, to continue to deliver excellent returns to our shareholders." E[acute accent]OPERATIONS REVIEW E[acute accent]2005 has been another successful year for SES, in which the group has built on its operational and financial strengths. In addition to growing the business through an active investment programme, we identified the opportunity to further enhance returns to shareholders through a share buyback and cancellation programme, returning EUR 517m to shareholders in this way during the year. E[acute accent]Video remains the primary engine of growth in our business, fed by the organic growth of digital television, with added momentum from the continued development and penetration of High Definition TV programming. In terrestrial Dealing with the earth. See terrestrial link. distribution, IP-encapsulated television programming (IPTV (Internet Protocol TV) Also called "TV over IP," IPTV delivers scheduled TV programs and video-on-demand (VOD) via the IP protocol and digital streaming techniques used to watch video on the Internet. ) is also growing and developing its customer reach in a number of markets, opening another opportunity for satellite distribution to the edge of telecom networks. E[acute accent]Infrastructure business E[acute accent]Demand continues to grow E[acute accent]During the year we have expanded our satellite capacity in orbit, reflecting the continued increase in demand for prime transponder A receiver/transmitter on a communications satellite. It receives a microwave signal from earth (uplink), amplifies it and retransmits it back to earth at a different frequency (downlink). A satellite has several transponders. capacity in our principal markets. Demand continues to be driven mainly by organic growth of television services, including High Definition programming, which continues to grow in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and has now also started to become a demand driver in the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. region. While we have been able to satisfy the demand to date, it is clear that continued growth requires the Group to initiate a number of projects to procure To cause something to happen; to find and obtain something or someone. Procure refers to commencing a proceeding; bringing about a result; persuading, inducing, or causing a person to do a particular act; obtaining possession or control over an item; or making a person new capacity. E[acute accent]Expanding satellite capacity E[acute accent]All regions are benefiting from the momentum that has built up. We launched the AMC-12 and AMC-23 spacecraft, serving the Atlantic Ocean Atlantic Ocean [Lat.,=of Atlas], second largest ocean (c.31,800,000 sq mi/82,362,000 sq km; c.36,000,000 sq mi/93,240,000 sq km with marginal seas). Physical Geography Extent and Seas Region and Pacific Ocean Region, respectively. New satellite procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. programmes were announced during the year for AMC-18 (new capacity for HD delivery to cable neighbourhoods in the US), for SIRIUS Sirius (sĭr`ēəs), or Dog Star, brightest star in the sky. It is located in the constellation Canis Major (1992 position R.A. 6h44.8m, Dec. 4 (replacement capacity for Nordic/Eastern European markets, plus additional capacity for the African market at 5.0(degree) East) and for ASTRA ASTRA Ancient Instruments Sound/Timbre Reconstruction Application ASTRA Australian Strategic Air Traffic Management Group ASTRA Arab Supply and Trading Corporation ASTRA Automatic System for Transport Analysis ASTRA Automatic Satellite Tracking Research Antenna 1M (replacement capacity at 19.2(degree) East). We also acquired additional prime orbital orbital Mathematical expression, called a wave function, that describes properties characteristic of no more than two electrons near an atomic nucleus or molecule. An orbital can be considered a three-dimensional region in which there is a 95% probability of finding an positions and frequencies to serve both North and Central America Central America, narrow, southernmost region (c.202,200 sq mi/523,698 sq km) of North America, linked to South America at Colombia. It separates the Caribbean from the Pacific. , on our own account as well as in partnerships with Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. and Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum partners. E[acute accent]More transponders under contract E[acute accent]Fleet utilisation was stable at 74%, with 549 transponders of the total 745 commercially available in use. E[acute accent]During the year, SES AMERICOM SES Americom is a major commercial satellite operator based in the United States. Formerly RCA Americom and GE Americom the company is now (with SES Astra and SES New Skies) one of the principal parts of SES S.A.. signed new contracts for a total of 42.5 transponders. Capacity utilisation in the SES AMERICOM unit was 70.8% at the end of the year, or 328 of 463 commercially available transponders, a net increase of 40 transponders under contract. Pricing for new capacity improved in the period. E[acute accent]In Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , DTH (Direct-To-Home) Typically refers to satellite TV broadcasting directly to a dish antenna on the roof of a house. See DBS. television maintained its organic growth path, with SES ASTRA SES Astra SA, is a corporate subsidiary of SES, based in Betzdorf, in eastern Luxembourg, that owns and operates the Astra series of geostationary satellites, which transmit approximately 1100 analogue and digital television and radio channels via 176 transponders to 91 transmitting transmitting,v to send and receive information, signals, and so on; allows a therapist to perceive a client's physical, emotional, and spiritual states. 1,064 television channels to its footprint The amount of geographic space covered by an object. A computer footprint is the desk or floor surface it occupies. A satellite's footprint is the earth area covered by its downlink. See form factor. 1. . The first HDTV (High Definition TV) A set of digital television (DTV) standards that offer the highest resolution and sharpest picture. Although some HDTV sets are available in standard (rather square) screen sizes, the overwhelming majority of sets are wide screen, which eliminates contracts were signed, notably with BSkyB BSkyB British Sky Broadcasting , ProSiebenSat.1, Premiere, and the BBC BBC in full British Broadcasting Corp. Publicly financed broadcasting system in Britain. A private company at its founding in 1922, it was replaced by a public corporation under royal charter in 1927. heralding the start of a broad introduction of HD programming via satellite into the European markets. Central & Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. also demonstrated increased demand with contracts signed with UPC (Universal Product Code) The standard bar code printed on retail merchandise, which is administered by GS1 US, Brussels, Belgium and Lawrenceville, NJ (www.gs1.org). , TVP TVP abbr. textured vegetable protein (Poland Poland, Pol. Polska, officially Republic of Poland, republic (2005 est. pop. 38,635,000), 120,725 sq mi (312,677 sq km), central Europe. It borders on Germany in the west, on the Baltic Sea and the Kaliningrad region of Russia in the north, on Lithuania, ), and DCS (1) See also DSC. (2) Digital Cross-connect System) A network switching and grooming device used by telecom carriers. See digital cross-connect. (Romania Romania (rōmān`ēə, –yə) or Rumania (r  –), republic (v), 91,699 sq mi (237,500 sq km), SE Europe. ). A total of 34 additional transponders were
contracted in the EMEA (Europe, Middle East, Africa) Refers to that region of the world. For example, one might see products packaged differently for the UK, EMEA and Asia Pacific markets. segment during the year serving all major
markets. E[acute accent]At SES ASTRA utilisation rose to 90.0% (183 of
204 commercially available transponders were activated activateda state of being more than usually active. In biological systems this is usually brought about by chemical or electrical means. Commonly said of pharmaceutical and chemical products. ) and the combined SES ASTRA/SES SIRIUS (formerly NSAB NSAB National Security Advisory Board (India) NSAB Nationalsozialistischer Deutscher Arztebund (German: National Socialist German Doctors' Association) NSAB Nova Scotia Animal Breeders ) utilisation increased to 88.5% (213 of 241 commercially available transponders). E[acute accent]Services into Africa were extended during the year. ASTRA 2B's steerable steer 1 v. steered, steer·ing, steers v.tr. 1. To guide by means of a device such as a rudder, paddle, or wheel. 2. a. To direct the course of. beam, whose current 8-transponder footprint serves West Africa West Africa A region of western Africa between the Sahara Desert and the Gulf of Guinea. It was largely controlled by colonial powers until the 20th century. West African adj. & n. , was complemented by the 33 transponders of ASTRA 4A. The African market utilisation increased to 19.8% (8 of 41 commercially available transponders) by year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2005. E[acute accent]EMEA overall utilisation (which comprises all ASTRA, SIRIUS and African capacity) was 78.5% (221 of 282 commercially available transponders), reflecting the new capacity added in the period. Of the 34 additional transponders contracted in the EMEA segment during the year, 28 were already commercially activated by year-end 2005, with the remaining 6 transponders scheduled for commercial start primarily in Q1 2006. E[acute accent]SES well positioned in flat Asian market E[acute accent]SES Asia, based in Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. , was incepted in 2005 in order to better coordinate Belonging to a system of indexing by two or more terms. For example, points on a plane, cells in a spreadsheet and bits in dynamic RAM chips are identified by a pair of coordinates. Points in space are identified by sets of three coordinates. our development initiatives throughout the region. AsiaSat Asia Satellite Telecommunications Co. Ltd. (commonly AsiaSat) is a commercial operator of communication spacecraft. AsiaSat is based in Hong Kong with two major shareholders, CITIC Group and GE. has continued to operate in a challenging market environment. Services delivered ranged from DTH and video distribution, to data and telecommunications services In telecommunication, the term telecommunications service has the following meanings: 1. Any service provided by a telecommunication provider. 2. across the Asia-Pacific The term Asia-Pacific generally applies to littoral East Asia, Southeast Asia and Australasia near the Pacific Ocean, plus the states in the ocean itself (Oceania). region. AsiaSat continues to focus on the development of high-value video distribution in China and other Asian markets. The AAP-1 satellite delivered VSAT (Very Small Aperture satellite Terminal) A small earth station for satellite transmission that handles up to 56 Kbits/sec of digital transmission. VSATs that handle the T1 data rate (up to 1.544 Mbits/sec) are called "TSATs. services into India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. . E[acute accent]Services business E[acute accent]Americom Government Services (AGS AGS American Geriatrics Society. ) continued to grow, signing new business with the Centers for Disease Control, Federal Aviation Administration Federal Aviation Administration (FAA), component of the U.S. Department of Transportation that sets standards for the air-worthiness of all civilian aircraft, inspects and licenses them, and regulates civilian and military air traffic through its air traffic control , FEMA FEMA, n.pr See Federal Emergency Management Agency. , Department of Housing and Urban Development, and various DOD-related programs, and notably expanded its long-standing long-stand·ing adj. Of long duration or existence: a long-standing friendship. long-standing Adjective existing for a long time relationship with NOAA NOAA abbr. National Oceanic and Atmospheric Administration Noun 1. NOAA - an agency in the Department of Commerce that maps the oceans and conserves their living resources; predicts changes to the earth's environment; , (National Oceanographic and Atmospheric atmospheric /at·mos·pher·ic/ (at?mos-fer´ik) of or pertaining to the atmosphere. atmospheric of or pertaining to the atmosphere. Administration), with a new mobile broadband Description Mobile Broadband is a type of wireless internet access that differs from Wi-Fi. Mobile Broadband is the name used to describe the 3G services which are made possible by HSDPA and HSUPA, the latest technologies on the W-CDMA evolutionary path. shipboard ship·board n. 1. The condition of being aboard a ship: on shipboard. 2. Archaic The side of a ship. adj. communications program Software that manages the transmission of data between computers, typically via modem and the serial port. Such programs were very popular for connecting to BBSs before the Internet took off. in Ku-band See satellite bands. . E[acute accent]A new initiative, IP-PRIME, was launched, providing a full service platform for delivery of IP-encapsulated programming. It is developed for rural telecoms services in particular, where the competition to deliver "triple play" bundled bun·dle n. 1. A group of objects held together, as by tying or wrapping. 2. Something wrapped or tied up for carrying; a package. 3. Biology A cluster or strand of closely bound muscle or nerve fibers. services is developing. The first customer for the service was NRTC NRTC National Rural Telecommunications Cooperative NRTC National Road Transport Commission (Australia) NRTC National Respiratory Training Centre (UK) NRTC National Research and Training Center (National Rural Telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. Cooperative), and early in 2006 Bell South commenced trials of IP-PRIME on its network. E[acute accent]Participation in European satellite services businesses was developed in the period, with APS (ASTRA Platform Services) being taken into 100% ownership in January January: see month. 2005. APS is a cornerstone cornerstone Ceremonial building block, dated or otherwise inscribed, usually placed in an outer wall of a building to commemorate its dedication. Often the stone is hollowed out to contain newspapers, photographs, or other documents reflecting current customs, with a view to of SES ASTRA's initiatives to support the development of digital broadcasting Digital broadcasting is the practice of using digital data rather than analogue waveforms to carry broadcasts over television channels or assigned radio frequency bands. It is becoming increasingly popular for television usage (especially satellite television) but is having a in the German language markets, providing an open and neutral service platform for broadcasters as analogue (electronics) analogue - (US: "analog") A description of a continuously variable signal or a circuit or device designed to handle such signals. The opposite is "discrete" or "digital". broadcasting is phased out. APS is also supporting the development of the emerging markets in Central and Eastern Europe The term "Central and Eastern Europe" came into wide spread use, replacing "Eastern bloc", to describe former Communist countries in Europe, after the collapse of the Iron Curtain in 1989/90. , where new broadcasters in particular can benefit from the platform services offered by APS. E[acute accent]The Verestar operations were quickly integrated into our AGS and Americom Enterprise Solutions activities. In addition to significantly extending the scope of AGS, the Verestar acquisition gives Americom new products and services to offer to the growing managed solutions market. E[acute accent]Overview of Financial Result E[acute accent]Group revenues grew by 16.7% to EUR 1,258 million, reflecting the continued organic growth of the business as well as the contribution from the acquired businesses APS and Verestar, and the impact of wholly consolidating SATLYNX as from April 2005. E[acute accent]As projected, our strategy of developing satellite-centric services has enabled us to substantially grow our revenues and EBITDA. Services revenues tripled over the prior year, to represent 14.8% of total Group revenues in 2005. Our focus on growing the absolute level of EBITDA is proving successful, with EBITDA growing 11.9% to EUR 881 million. Our infrastructure activities continue to deliver a margin of around 80%. The services businesses are delivering margins of a lower level, commensurate com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. with the type of activities represented. Cost control measures have been implemented in those areas where the performance is not yet acceptable and this has contributed to the margin turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. from -34% in 2004 to +4% in 2005. E[acute accent]Cost control is very much at the forefront of our considerations, while we continue to invest in the new developments and new initiatives we deem critical to our future success. E[acute accent]Major factors impacting EBITDA during 2005 were costs associated with the initial development of new services, notably the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and integration of Verestar, the restructuring of SATLYNX and its incorporation into the Managed Solutions offering being developed, and the service business APS, as well as the impact of the costs of third party leased capacity for government services solutions. E[acute accent]OUTLOOK E[acute accent]Financial guidance on revenues and EBITDA E[acute accent]For the three-year period 2005-2007 we expect group recurring revenues to deliver a double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" CAGR CAGR See: Compound Annual Growth Rate , deriving de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from organic growth in our core business driven by new capacity launched in the period and increases in utilisation rate as well as by growth in services activities. The strong growth of 13.4% in 2005 implies that 2006 will show a high single-digit increase. E[acute accent]The service business contribution to the Group result will continue to increase, contributing to EBITDA growth. Minor delays in the launch schedules of AMC-23 and AMC-14 will result in a later onset on·set n. A beginning; a start, as of a cold. of revenues from these satellites. This reduces the growth of infrastructure revenues in the period and accordingly impacts the Group EBITDA margin. While EBITDA will further increase in line with the recurring revenue growth based on the infrastructure business and the increasing contribution from the services business, the EBITDA margin will be further diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. in 2006 and fall below 70%. Thereafter EBITDA margin will recover as growth in the infrastructure business increases its relative contribution, but remain at the low 70%'s based on the assumption of a business mix of infrastructure and services segments. However, it should be noted that both business segments follow our internal profitability measures in order to maximise shareholder value creation. Therefore the lower capital investment required in services businesses (as compared to satellite projects), supports their positive contribution to operating profit and net profit, thus also delivering additional value to shareholders. E[acute accent]New Skies acquisition E[acute accent]On February February: see month. 10, New Skies shareholders approved the terms of the transaction which was announced on 14 December December: see month. 2005. The transaction will close following receipt of the required regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approvals, which are expected to be granted during the second quarter. The transaction, once closed, will be accretive to earnings in 2006. E[acute accent]Share buyback and cancellation programme E[acute accent]The share buyback and cancellation programme approved by shareholders on December 8th, 2005 can be implemented at any time up to July July: see month. 2007, to buy back up to 10% of SES GLOBAL's issued shares within the price range of EUR 9.75 - EUR 16.75. The programme will be implemented in the context of our management of the group's capital structure and target leverage of 3.0x Net Debt:EBITDA. E[acute accent]The parallel development of these initiatives will enable us to achieve our objective to continue to deliver outstanding total returns to investors. Romain Bausch, President & CEO, SES GLOBAL E[acute accent]Additional information is available on our website www.ses-global.com PRESS / ANALYST TELECONFERENCES A press call will be hosted at 11.00 Betzdorf time today, 20 February 2006. Journalists are invited to call: +44 208 515 2743 five minutes prior to this time. A call for investors and analysts will be hosted at 14.00 Betzdorf time today, 20 February 2006. Participants are invited to call: +44 208 515 2305 five minutes prior to this time. A presentation, which will be referred to in each call, will be available for download from the Investor Relations section of our website www.ses-global.com E[acute accent]--This announcement does not constitute or form part of, and should not be construed as, any offer for sale of, or solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual 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 contract or commitment whatsoever. E[acute accent]--No representation or warranty, express or implied, is or will be made by SES GLOBAL, or its advisors or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this announcement, and any reliance you place on them will be at your sole risk. Without prejudice Without any loss or waiver of rights or privileges. When a lawsuit is dismissed, the court may enter a judgment against the plaintiff with or without prejudice. When a lawsuit is dismissed without prejudice to the foregoing, none of SES GLOBAL or its advisors accepts any liability whatsoever for any loss howsoever how·so·ev·er adv. 1. To whatever degree or extent. 2. By whatever means. arising, directly or indirectly, from use of this announcement or its contents or otherwise arising in connection therewith there·with adv. 1. With that, this, or it. 2. In addition to that. 3. Archaic Immediately thereafter. Adv. 1. . E[acute accent]--This announcement includes "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. ". All statements other than statements of historical fact included in this announcement, including, without limitation, those regarding SES GLOBAL's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc SES GLOBAL's 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 GLOBAL or those markets and economies 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 GLOBAL's present and future business strategies and the environment in which SES GLOBAL 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 announcement. Forward-looking statements contained in this announcement regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. SES GLOBAL does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
FINANCIAL REVIEW BY MANAGEMENT
Summary Financial Information (EUR million)
2005 2004 Variance Variance %
------------------------- --------- --------- ------------- ----------
------------------------- --------- --------- ------------- ----------
Revenues 1,258.0 1,077.8 +180.2 +16.7%
------------------------- --------- --------- ------------- ----------
Operating expenses (376.9) (291.0) +85.9 +29.5%
------------------------- --------- --------- ------------- ----------
EBITDA 881.1 786.8 +94.3 +11.9%
------------------------- --------- --------- ------------- ----------
Depreciation (363.0) (337.6) +25.4 +7.5%
------------------------- --------- --------- ------------- ----------
Amortisation (42.3) (56.2) -13.9 -24.7%
------------------------- --------- --------- ------------- ----------
Operating profit 475.8 393.0 +82.8 +21.1%
------------------------- --------- --------- ------------- ----------
Net financing charges (4.7) 0.8 +5.5 --
------------------------- --------- --------- ------------- ----------
Profit before tax 471.1 393.8 +77.3 +19.6%
------------------------- --------- --------- ------------- ----------
Income tax expense (99.3) (58.6) +40.7 +69.5%
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Share of associates'
result 9.0 3.5 +5.5 +157.1%
------------------------- --------- --------- ------------- ----------
Minority interests 1.1 1.9 -0.8 -42.1%
------------------------- --------- --------- ------------- ----------
Net profit for the period 381.9 340.6 +41.3 +12.1%
------------------------- --------- --------- ------------- ----------
------------------------- --------- --------- ------------- ----------
Earnings per A-share
(euro) 0.67 0.58 +0.09 +15.5%
------------------------- --------- --------- ------------- ----------
------------------------- --------- --------- ------------- ----------
EBITDA margin 70.0% 73.0% (3.0)% points --
------------------------- --------- --------- ------------- ----------
Net income margin 30.4% 31.6% (1.2)% points --
------------------------- --------- --------- ------------- ----------
------------------------- --------- --------- ------------- ----------
Net operating cash flow 719.4 825.4 -106.0 -12.8%
------------------------- --------- --------- ------------- ----------
Free cash flow 433.1 168.9 +264.2 +156.4%
------------------------- --------- --------- ------------- ----------
------------------------- --------- --------- ------------- ----------
Net debt 2,107.1 1,697.0 +410.1 +24.2%
------------------------- --------- --------- ------------- ----------
Net debt / EBITDA 2.39 2.16 +0.23 +10.6%
------------------------- --------- --------- ------------- ----------
Net debt / Total equity 60.5% 50.3% 10.2 % points --
------------------------- --------- --------- ------------- ----------
Operating result development (1)
------------------ ------- -------- ------- --------
2005 Q1 % Q2 %
------------------ ------- -------- ------- --------
Revenue 289.6 + 10.1% 319.6 + 10.4%
------------------ ------- -------- ------- --------
Operating expenses (83.1) + 4.5% (88.5) +6.5%
------------------ ------- -------- ------- --------
EBITDA 206.5 + 12.5% 231.1 + 11.9%
------------------ ------- -------- ------- --------
Depreciation (81.4) - 14.2% (93.3) + 14.6%
------------------ ------- -------- ------- --------
Amortisation (8.1) - 72.8% (13.5) +66.7%
------------------ ------- -------- ------- --------
Operating profit 117.0 + 99.0% 124.3 +6.2%
------------------ ------- -------- ------- --------
------------------------- -------- ------- --------- --------
2005 Q3 % Q4 % 2005
------------------------- -------- ------- --------- --------
Revenue 313.0 -2.1% 335.8 +7.3% 1,258.0
------------------------- -------- ------- --------- --------
Operating expenses (96.0) +7.9% (109.3) +13.8% (376.9)
------------------------- -------- ------- --------- --------
EBITDA 217.0 -6.5% 226.5 +5.3% 881.1
------------------------- -------- ------- --------- --------
Depreciation (90.0) -4.3% (98.3) +11.6% (363.0)
------------------------- -------- ------- --------- --------
Amortisation (8.0) -42.9% (12.7) +58.8 (42.3)
------------------------- -------- ------- --------- --------
Operating profit 119.0 -4.0% 115.5 -3.0% 475.8
------------------------- -------- ------- --------- --------
------------------ ------- -------- ------- --------
2004 Q1 % Q2 %
------------------ ------- -------- ------- --------
Revenue 288.0 -- 267.3 - 7.2%
------------------ ------- -------- ------- --------
Operating expenses (85.0) -- (62.9) - 26.0%
------------------ ------- -------- ------- --------
EBITDA 203.0 -- 204.4 + 0.7%
------------------ ------- -------- ------- --------
Depreciation (79.6) -- (84.2) + 5.7%
------------------ ------- -------- ------- --------
Amortisation (8.0) -- (10.4) + 31.3%
------------------ ------- -------- ------- --------
Operating profit 115.4 -- 109.8 - 4.9%
------------------ ------- -------- ------- --------
------------------------- -------- ------- --------- --------
2004 Q3 % Q4 % 2004
------------------------- -------- ------- --------- --------
Revenue 259.5 - 2.9% 263.0 + 1.3% 1,077.8
------------------------- -------- ------- --------- --------
Operating expenses (63.6) + 1.1% (79.5) + 25% (291.0)
------------------------- -------- ------- --------- --------
EBITDA 195.9 - 4.2% 183.5 - 6.3% 786.8
------------------------- -------- ------- --------- --------
Depreciation (79.0) - 6.1% (94.8) +20.1% (337.6)
------------------------- -------- ------- --------- --------
Amortisation (7.9) -24.8% (29.9) +277 % (56.2)
------------------------- -------- ------- --------- --------
Operating profit 109.0 - 0.7% 58.8 - 46.1% 393.0
------------------------- -------- ------- --------- --------
(1) Percentage changes are to previous quarter
E[acute accent]The full-year financial results of the Group are presented for the first time in compliance with International Financial Reporting Standards International Financial Reporting Standards (IFRS) are standards and interpretations adopted by the International Accounting Standards Board (IASB). Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS). . Comparative figures have been restated throughout applying consistent accounting policies. E[acute accent]Revenue 2005 2004 Variance % ------------------------------------ -------- -------- -------- ------ Revenue 1,258.0 1,077.8 +180.2 +16.7% ------------------------------------ -------- -------- -------- ------ E[acute accent]The favourable revenue development reflects both organic growth in the Group's primary operating companies operating company A business that engages in transactions with outsiders. , ASTRA and AMERICOM, and also the expanding component of revenue being generated by acquired service businesses. E[acute accent]The organic growth is mainly driven by additional contracts relating to the satellites AMC-15 and AMC-16 which were taken into service in December 2004 and February 2005 respectively, and which are wholly contracted by EchoStar. Organic growth in Europe was driven by the German, UK and Central & Eastern European markets, with HDTV being a key factor. The launch of ASTRA 4A for the African market also contributed to revenue growth. Taking the EMEA and AMERICAS A·mer·i·cas , the See America. segments together, transponder fill rates remained stable at 74%. E[acute accent]The services segment has been significantly expanded in the period under review through the acquisition of Verestar in December 2004, ASTRA Platform Services in January 2005, and a controlling interest controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail in Satlynx in April 2005. With these incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. acquisitions, the proportion of revenue generated from services-based businesses rose from 6% in 2004 to 15% in 2005. E[acute accent]The lower level of non-recurring revenues reflects primarily the SIRIUS 2 transaction revenues recognised in February 2004. Recurring revenues, a measure designed to clarify underlying performance by removing currency exchange effects, eliminating one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. items and disregarding dis·re·gard tr.v. dis·re·gard·ed, dis·re·gard·ing, dis·re·gards 1. To pay no attention or heed to; ignore. 2. To treat without proper respect or attentiveness. n. any changes in consolidation scope, rose 13.4% in 2005 compared with the prior year. E[acute accent]Earnings before interest, tax, depreciation and amortisation Noun 1. amortisation - the reduction of the value of an asset by prorating its cost over a period of years amortization reduction, step-down, diminution, decrease - the act of decreasing or reducing something 2. ("EBITDA") 2005 2004 Variance % ---------------------------------------- ------ ------ -------- ------ EBITDA 881.1 786.8 +94.3 +11.9% ---------------------------------------- ------ ------ -------- ------ E[acute accent]Both the infrastructure and services business contributed positively to the EBITDA growth in 2005, although the margins of the segments remain, as expected, different. E[acute accent]The capital intensive infrastructure business delivered an EBITDA margin in 2005 of 80% (2004: 81%). The services segment margins rose from -34% in 2004 to +4% in 2005, reflecting the strong margins of the APS business and measures taken in the year to restructure certain of the other service businesses. E[acute accent]The expansion of the services businesses is primarily impacting the cost base of the Group in the areas of staff costs and charges for the rental of third-party satellite capacity. Excluding the one-off (1) One at a time. CD-ROM recorders (CD-R drives) are commonly called one-off machines because they write one CD-ROM at a time. (2) Only once. Software that is written to solve a specific problem only one time is sometimes called a one-off. impact of cost of sales of EUR 21.2 million taken in 2004 for the sale of Sirius 2 satellite, around three quarters of the increased operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. in 2005 are attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to these line items. E[acute accent]Operating profit 2005 2004 Variance % --------------------------------------- ------ ------ --------- ------ Operating profit 475.8 393.0 +82.8 +21.1% --------------------------------------- ------ ------ --------- ------ E[acute accent]The reduction from the favourable variance The discrepancy between what a party to a lawsuit alleges will be proved in pleadings and what the party actually proves at trial. In Zoning law, an official permit to use property in a manner that departs from the way in which other property in the same locality to prior at the EBITDA level reflects mainly the additional depreciation charges on SES AMERICOM satellites taken into service during, or subsequent to the close of the prior-year, the satellites concerned being: AMC-15 (entered service in December 2004), AMC-16 (February 2005), AMC-12 (April 2005), AMC-11 (November November: see month. 2004) and AMC-10 (May 2004). Reflecting these significant additions to the fleet, depreciation charges, at EUR 363.0 million, were 7.5% ahead of the prior year level. E[acute accent]Amortisation charges on intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. of EUR 42.3 million were EUR 13.9 million lower than in 2004, mainly reflecting a lower level of impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges on goodwill. Amortisation of definite-life intangible assets remained, at EUR 33.7 million, similar to prior year level. E[acute accent]Net financing charges E[acute accent]The charges can be analysed as follows: 2005 2004 Variance % ---------------------------------------- ------ ------ -------- ------ Net interest expense (74.3) (39.2) +35.1 +89.5% ---------------------------------------- ------ ------ -------- ------ Capitalised interest 17.2 20.2 -3.0 -14.9% ---------------------------------------- ------ ------ -------- ------ Net foreign exchange gains 48.4 25.9 +22.5 +86.9% ---------------------------------------- ------ ------ -------- ------ Value adjustments 4.0 (6.1) +10.1 -- ---------------------------------------- ------ ------ -------- ------ Net finance (charges) / income (4.7) 0.8 -5.5 -- ---------------------------------------- ------ ------ -------- ------ E[acute accent]The higher net interest expense for the period reflects a number of factors. Firstly market interest rates rose strongly over the year, with LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). moving upwards by around 200 basis points. As a response to this trend, positions taken on financial derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. , which had in 2004 offset some of the interest charges, were closed out in 2005. Additionally new debt was taken on to fund the share buy-back and cancellation programme increasing the base for the calculation of interest charges. E[acute accent]Foreign exchange gains were realised in the period mainly through the unwinding of financial derivative derivative: see calculus. derivative In mathematics, a fundamental concept of differential calculus representing the instantaneous rate of change of a function. positions. E[acute accent]The favourable value adjustments in the year were generated in the course of a shareholder restructuring at the Group's Satlynx business unit, compared to valuation write-downs in 2004. E[acute accent]Income tax expense 2005 2004 Variance % ------------------------------------------ ----- ----- -------- ------ Income tax expense 99.3 58.6 +40.7 +69.5% ------------------------------------------ ----- ----- -------- ------ E[acute accent]The increased tax charge for the period is driven by two main factors: E[acute accent]1. the release of a deferred tax provision of EUR 59.9 million in 2004 arising in the framework of a realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. of the intra-Group shareholding structure; and E[acute accent]2. an increase in pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta profit of 19.6% from EUR 393.8 million to EUR 471.1 million. E[acute accent]The reported tax rate in 2005 of 21% reflects, among others, the favourable impact of significant investment tax credits taken in the year. E[acute accent]Net profit 2005 2004 Variance % ---------------------------------------- ------ ------ -------- ------ Net profit of the Group 381.9 340.6 +41.3 +12.1% ---------------------------------------- ------ ------ -------- ------ E[acute accent]The increased net profit of the Group, at EUR 381.9 million reflects the favourable operating profit development, offset by the increased tax charge for the year. E[acute accent]Cash flow 2005 2004 Variance % --------------------------------------- ------ ------ -------- ------- Net operating cash flow 719.4 825.4 -106.0 -12.8% --------------------------------------- ------ ------ -------- ------- Free cash flow 433.1 168.9 +264.2 +156.4% --------------------------------------- ------ ------ -------- ------- E[acute accent]The reduction in the operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. compared to 2004 is mainly attributable to higher payments of tax. These were, at EUR 169.0 million, some EUR 137.4 million higher than in the previous year. E[acute accent]Free cash flow however showed very significant growth. The increase of EUR 264.2 million is analysed as follows: -0- *T Free cash flow 2004168.9 i. Lower net operating cash flow(106.0) ii. Higher inflow in·flow n. 1. The act or process of flowing in or into: an inflow of water; an inflow of information. 2. through realized proceeds of swap transaction142.2 iii. Higher proceeds from the disposal of financial assets Financial assets Claims on real assets. 60.0 iv. Lower outflow through cash payments for capital expenditure57.8 v. Lower outflow through the acquisition of financial assets113.0 vi. Other items(2.8) Free cash flow 2005433.1 *T E[acute accent]Net debt 2005 2004 Variance % --------------------- --------- --------- ----------------- ---------- Cash and cash equivalents (196.8) (381.9) -185.1 -48.5% --------------------- --------- --------- ----------------- ---------- Loans and borrowings 2,303.9 2,078.9 +225.0 +10.8% --------------------- --------- --------- ----------------- ---------- Net debt 2,107.1 1,697.0 +410.1 +24.1% --------------------- --------- --------- ----------------- ---------- --------------------- --------- --------- ----------------- ---------- Net debt / Total equity 60.5% 50.3% +10.2% pts points --------------------- --------- --------- ----------------- ---------- Net debt / EBITDA 2.39 2.16 +0.23 +10.6% --------------------- --------- --------- ----------------- ---------- E[acute accent]Net debt rose in the period primarily due to the share-buy back and cancellation programme. E[acute accent]Contract backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. 2005 2004 Variance % ------------------------------------- -------- -------- -------- ----- Contract backlog - fully protected * 6,489.9 6,032.2 +457.7 +7.6% ------------------------------------- -------- -------- -------- ----- Contract backlog - gross 7,073.7 6,675.7 +398.0 +6.0% ------------------------------------- -------- -------- -------- ----- * "fully protected" backlog is the backlog amount calculated from the minimum amounts due on contracts, taking into account any 'step-out' or early termination clauses. E[acute accent]The increase in contract backlog in the period reflects the favourable impact of new backlog contributed by ASTRA Platform Services (acquired on January 1st, 2005), the impact of new contracts and renewals, and the impact of the strengthening USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. on the AMERICOM backlog.
SES GLOBAL S.A.
CONSOLIDATED INCOME STATEMENT
For the year ended December 31
(in EURO millions)
2005 2004
-------- --------
---------------------------------------------------- -------- --------
Revenue 1,258.0 1,077.8
---------------------------------------------------- -------- --------
---------------------------------------------------- -------- --------
Cost of sales (110.0) (81.0)
---------------------------------------------------- -------- --------
Staff costs (119.8) (84.2)
---------------------------------------------------- -------- --------
Other operating expenses (147.1) (125.8)
---------------------------------------------------- -------- --------
---------------------------------------------------- -------- --------
Depreciation (363.0) (337.6)
---------------------------------------------------- -------- --------
Amortisation (42.3) (56.2)
---------------------------------------------------- -------- --------
Operating profit 475.8 393.0
---------------------------------------------------- -------- --------
---------------------------------------------------- -------- --------
Finance revenue 73.2 41.7
---------------------------------------------------- -------- --------
Finance costs (77.9) (40.9)
---------------------------------------------------- -------- --------
Profit for the period before tax 471.1 393.8
---------------------------------------------------- -------- --------
---------------------------------------------------- -------- --------
Income tax expense (99.3) (58.6)
---------------------------------------------------- -------- --------
Profit for the period after tax 371.8 335.2
---------------------------------------------------- -------- --------
---------------------------------------------------- -------- --------
Share of associates' result 9.0 3.5
---------------------------------------------------- -------- --------
Profit for the year 380.8 338.7
---------------------------------------------------- -------- --------
---------------------------------------------------- -------- --------
Attributable to
---------------------------------------------------- -------- --------
Equity holders of parent 381.9 340.6
---------------------------------------------------- -------- --------
Minority interest (1.1) (1.9)
---------------------------------------------------- -------- --------
Net profit of the Group 380.8 338.7
---------------------------------------------------- -------- --------
SES GLOBAL S.A.
CONSOLIDATED BALANCE SHEET
As at December 31
(in EURO millions)
2005 2004
---------------------------------------------------- -------- --------
NON-CURRENT ASSETS
---------------------------------------------------- -------- --------
Property, plant and equipment 2,820.4 2,525.0
---------------------------------------------------- -------- --------
Assets in the course of construction 694.3 648.0
---------------------------------------------------- -------- --------
Total property, plant and equipment 3,514.7 3,173.0
---------------------------------------------------- -------- --------
---------------------------------------------------- -------- --------
Intangible assets 3,019.1 2,682.5
---------------------------------------------------- -------- --------
Investments in associates 100.7 76.8
---------------------------------------------------- -------- --------
Other financial assets 21.7 124.3
---------------------------------------------------- -------- --------
Deferred income tax assets 5.1 7.6
---------------------------------------------------- -------- --------
Total non-current assets 6,661.3 6,064.2
---------------------------------------------------- -------- --------
---------------------------------------------------- -------- --------
CURRENT ASSETS
---------------------------------------------------- -------- --------
Inventories 4.6 2.5
---------------------------------------------------- -------- --------
Trade and other receivables 191.8 145.8
---------------------------------------------------- -------- --------
Prepayments 54.5 48.9
---------------------------------------------------- -------- --------
Valuation of financial instruments 54.0 271.2
---------------------------------------------------- -------- --------
Cash and cash equivalents 196.8 381.9
---------------------------------------------------- -------- --------
Total current assets 501.7 850.3
---------------------------------------------------- -------- --------
---------------------------------------------------- -------- --------
TOTAL ASSETS 7,163.0 6,914.5
---------------------------------------------------- -------- --------
---------------------------------------------------- -------- --------
EQUITY
---------------------------------------------------- -------- --------
Attributable to equity holders of the parent 3,449.0 3,338.6
---------------------------------------------------- -------- --------
Minority interest 34.5 35.9
---------------------------------------------------- -------- --------
Total equity 3,483.5 3,374.5
---------------------------------------------------- -------- --------
---------------------------------------------------- -------- --------
NON-CURRENT LIABILITIES
---------------------------------------------------- -------- --------
Interest-bearing loans and borrowings 2,145.1 2,078.9
---------------------------------------------------- -------- --------
Provisions and deferred income 140.2 133.3
---------------------------------------------------- -------- --------
Deferred tax liabilities 737.2 741.4
---------------------------------------------------- -------- --------
Total non-current liabilities 3,022.5 2,953.6
---------------------------------------------------- -------- --------
---------------------------------------------------- -------- --------
CURRENT LIABILITIES
---------------------------------------------------- -------- --------
Interest-bearing loans and borrowings 158.8 --
---------------------------------------------------- -------- --------
Trade and other payables 207.9 222.8
---------------------------------------------------- -------- --------
Valuation of financial instruments 9.5 20.0
---------------------------------------------------- -------- --------
Income tax payable 117.2 203.6
---------------------------------------------------- -------- --------
Deferred income 163.6 140.0
---------------------------------------------------- -------- --------
Total current liabilities 657.0 586.4
---------------------------------------------------- -------- --------
---------------------------------------------------- -------- --------
TOTAL LIABILITIES 3,679.5 3,540.0
---------------------------------------------------- -------- --------
---------------------------------------------------- -------- --------
TOTAL LIABILITIES AND EQUITY 7,163.0 6,914.5
---------------------------------------------------- -------- --------
SES GLOBAL S.A.
CONSOLIDATED STATEMENT OF CASH FLOW
For the year ended December 31
(in EURO millions)
2005 2004
------------------------------------------------------ ------- -------
------------------------------------------------------ ------- -------
Consolidated net income before taxes 471.1 393.8
------------------------------------------------------ ------- -------
Taxes paid during the year (169.0) (31.6)
------------------------------------------------------ ------- -------
Net financing charges paid on non-operating activities 22.7 29.9
------------------------------------------------------ ------- -------
Depreciation and amortisation 405.2 393.8
------------------------------------------------------ ------- -------
Amortisation of client upfront payments (33.3) (30.9)
------------------------------------------------------ ------- -------
Other non-cash items in Profit and Loss Account 22.5 14.5
------------------------------------------------------ ------- -------
Provision for pension and other provisions 5.0 (1.5)
------------------------------------------------------ ------- -------
Result on disposal of fixed assets 0.3 0.1
------------------------------------------------------ ------- -------
Consolidated operating profit before working capital
changes 724.5 768.1
------------------------------------------------------ ------- -------
------------------------------------------------------ ------- -------
Changes in operating assets and liabilities
------------------------------------------------------ ------- -------
(Increase) / Decrease in inventories (1.4) 0.8
------------------------------------------------------ ------- -------
(Increase) / Decrease in trade debtors (21.3) (1.4)
------------------------------------------------------ ------- -------
(Increase) / Decrease in other debtors (7.2) (9.6)
------------------------------------------------------ ------- -------
(Increase) / Decrease in prepayments and deferred
charges 8.4 (6.8)
------------------------------------------------------ ------- -------
Increase / (Decrease) in trade creditors (16.1) (8.2)
------------------------------------------------------ ------- -------
Increase / (Decrease) in other creditors (7.7) 9.3
------------------------------------------------------ ------- -------
Increase / (Decrease) in payments received on account 13.6 5.9
------------------------------------------------------ ------- -------
Increase / (Decrease) in upfront payments 10.6 50.5
------------------------------------------------------ ------- -------
Increase / (Decrease) in other deferred income 16.0 16.8
------------------------------------------------------ ------- -------
Net cash (absorbed) / generated by operations (5.1) 57.3
------------------------------------------------------ ------- -------
------------------------------------------------------ ------- -------
Net operating cash flow 719.4 825.4
------------------------------------------------------ ------- -------
------------------------------------------------------ ------- -------
Cash flow from investing activities
------------------------------------------------------ ------- -------
Purchase of intangible assets (18.2) (17.2)
------------------------------------------------------ ------- -------
Purchase of tangible assets (474.8) (512.5)
------------------------------------------------------ ------- -------
Disposal of tangible assets -- 0.7
------------------------------------------------------ ------- -------
Acquisition of further shareholding (net of cash
acquired) -- (30.0)
------------------------------------------------------ ------- -------
Acquisition of business assets from Verestar (net of
cash acquired) -- (20.1)
------------------------------------------------------ ------- -------
Acquisition of ASTRA Platform Services (net of cash
acquired) (0.1) --
------------------------------------------------------ ------- -------
Acquisition of further shareholding in SATLYNX (net of
cash acquired) (1.0) --
------------------------------------------------------ ------- -------
Realised proceeds on settlement of swap transactions 142.2 --
------------------------------------------------------ ------- -------
Investment in non-consolidated financial assets -- (83.0)
------------------------------------------------------ ------- -------
Proceeds on disposal of non-consolidated financial
assets 65.6 5.6
------------------------------------------------------ ------- -------
Net cash (absorbed) / generated by investing
activities (286.3) (656.5)
------------------------------------------------------ ------- -------
------------------------------------------------------ ------- -------
Cash flow from financing activities
------------------------------------------------------ ------- -------
New borrowings 93.2 152.9
------------------------------------------------------ ------- -------
Repayment of borrowings (0.7) 0.3
------------------------------------------------------ ------- -------
Dividends paid on ordinary shares (176.3) (130.8)
------------------------------------------------------ ------- -------
Dividends paid to minority shareholders (4.9) --
------------------------------------------------------ ------- -------
Net financing paid on non-operating activities (21.9) (29.9)
------------------------------------------------------ ------- -------
Acquisition of own FDR's (517.4) (12.8)
------------------------------------------------------ ------- -------
Exercise of share options by employees (0.3) --
------------------------------------------------------ ------- -------
Dividends from equity investments 11.7 15.3
------------------------------------------------------ ------- -------
Loans granted to associate (4.7) --
------------------------------------------------------ ------- -------
Net cash absorbed by financing activities (621.3) (5.0)
------------------------------------------------------ ------- -------
------------------------------------------------------ ------- -------
Movements in exchange 3.1 (47.2)
------------------------------------------------------ ------- -------
Increase in cash (185.1) 116.7
------------------------------------------------------ ------- -------
Net cash at beginning of the year 381.9 265.2
------------------------------------------------------ ------- -------
Net cash at end of the year 196.8 381.9
------------------------------------------------------ ------- -------
SES GLOBAL S.A.
SEGMENTAL INFORMATION
For the year ended December 31, 2005
(in EURO millions)
PRIMARY GEOGRAPHICAL SEGMENTS
For the year ended December 31, 2005
OTHER
SEGMENTS/
EMEA AMERICAS ELIMINATION Total
------------------------------- ------- -------- ------------ --------
Segmental result
------------------------------- ------- -------- ------------ --------
External sales 761.5 458.8 37.7 1,258.0
------------------------------- ------- -------- ------------ --------
Inter-segment sales 3.2 0.4 (3.6) --
------------------------------- ------- -------- ------------ --------
Total revenue 764.7 459.2 34.1 1,258.0
------------------------------- ------- -------- ------------ --------
------------------------------- ------- -------- ------------ --------
Operating expenses (160.5) (179.0) (37.4) (376.9)
------------------------------- ------- -------- ------------ --------
EBITDA 604.2 280.2 (3.3) 881.1
------------------------------- ------- -------- ------------ --------
------------------------------- ------- -------- ------------ --------
Depreciation (181.5) (155.0) (26.5) (363.0)
------------------------------- ------- -------- ------------ --------
Amortisation (30.3) (5.6) (6.4) (42.3)
------------------------------- ------- -------- ------------ --------
Operating profit 392.4 119.6 (36.2) 475.8
------------------------------- ------- -------- ------------ --------
For the year ended December 31, 2004
OTHER
SEGMENTS/
EMEA AMERICAS ELIMINATION Total
------------------------------- ------- -------- ------------ --------
------------------------------- ------- -------- ------------ --------
Segmental result
------------------------------- ------- -------- ------------ --------
External sales 691.0 367.6 19.2 1,077.8
------------------------------- ------- -------- ------------ --------
Inter-segment sales 6.4 0.8 (7.2) --
------------------------------- ------- -------- ------------ --------
Total revenue 697.4 368.4 12.0 1,077.8
------------------------------- ------- -------- ------------ --------
------------------------------- ------- -------- ------------ --------
Operating expenses (135.1) (137.0) (18.9) (291.0)
------------------------------- ------- -------- ------------ --------
EBITDA 562.3 231.4 (6.9) 786.8
------------------------------- ------- -------- ------------ --------
------------------------------- ------- -------- ------------ --------
Depreciation (180.1) (128.3) (29.2) (337.6)
------------------------------- ------- -------- ------------ --------
Amortisation (36.0) (2.9) (17.3) (56.2)
------------------------------- ------- -------- ------------ --------
Operating profit 346.2 100.2 (53.4) 393.0
------------------------------- ------- -------- ------------ --------
SECONDARY BUSINESS SEGMENTS
Infrastructure Services Elimination Total
------------------------- -------------- -------- ----------- --------
Revenue 2005 1,124.8 186.8 (53.6) 1,258.0
------------------------- -------------- -------- ----------- --------
Percentage of total 89.4% 14.8% (4.2)% 100.0%
------------------------- -------------- -------- ----------- --------
------------------------- -------------- -------- ----------- --------
Revenue 2004 1,036.4 62.8 (21.4) 1,077.8
------------------------- -------------- -------- ----------- --------
Percentage of total 96.2% 5.8% (2.0)% 100.0%
------------------------- -------------- -------- ----------- --------
------------------------- -------------- -------- ----------- --------
Revenue growth compared
to prior year +8.5% +197.4% -- +16.7%
------------------------- -------------- -------- ----------- --------
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