SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — H1 2020 Earnings Presentation
25 slides from SES SA FDR (Class A)'s earnings presentation, Aug 7, 2020
Slide 1: H1 2020 Results
H1 2020 RESULTS SIX MONTHS ENDED 30 JUNE 2020 August 7, 2020 H1 2020 Results | SES Proprietary and Confidential
Slide 2: Business Highlights
BUSINESS HIGHLIGHTS Steve Collar, CEO 2
Slide 3: Business Highlights – H1 2020
Business Highlights – H1 2020 Solid H1 financial performance despite challenging environment. Underlying growth in Networks of +7% YOY and +25% over the last 3 years EUR 40-60 million exceptional cost reduction measures in place to protect 2020 bottom line given expected COVID-19 related revenue dev
Slide 4: Solid Financial Performance In Line With Expectations
Solid Financial Performance In Line With Expectations H1 2020 Video Revenue EUR 559 million -7.5% YOY as reported -8.0% YOY underlying(1) Networks Revenue EUR 387 million +8.7% YOY as reported +7.1% YOY underlying(1) Group Revenue EUR 948 million -1.5% YOY as reported -2.4% YOY underlying(1) Adjuste
Slide 5: Video - Premium Market-Leading DTH Neighbourhoods
Video - Premium Market-Leading DTH Neighbourhoods Solid fundamentals in premier DTH neighborhoods • Subscribers numbers holding up well at core neighborhoods • 2% growth in channel count – 3,000 HD/UHD channels – industry leading DELIVERING A COMPLETE SUIT OF VIDEO SERVICES Extending global reac
Slide 6: Networks – Profitable Growth Through Unique Value Proposition
Networks – Profitable Growth Through Unique Value Proposition 25% growth in underlying revenue over the last 3 years. EUR 2.4 billion contract backlog and now represents over 40% of SES revenue Trusted partner of U.S. Government, new application for MEO constellation EXPANDING SERVICES rolling o
Slide 7: Regulatory Timeline: Path to Value Creation From C-Band Proceeds
Cleared Path to Substantial Value Creation From USD 4 Billion(1) C-Band Proceeds REGULATORY TIMELINE CLEARING IMPLEMENTATION SES is ahead of its clearing implementation plan, Clear path to 8 December 2020 C-Band auction guaranteeing continuity and quality of existing services Final Report & Order
Slide 8: Industry Revenues Forecast to Double With SES Well Positioned
Industry Revenues Forecast to Double Over Next 10 Years With SES Well Positioned NSR Forecast for Global Satellite Industry Capacity Revenue (1) USD billion SES | Networks: differentiated investments Cumulative 41% of revenue ▲ The only proven high throughput, low latency constellation (O3b) 26 reve
Slide 9: Unique, Cloud Enabled Global Infrastructure Will Drive Networks Growth
Unique, Cloud Enabled Global Infrastructure Will Drive Networks Growth Procurement of 4 additional O3b mPOWER satellites • Scaling only proven NGSO constellation – adding 90% increased network Unique infrastructure throughput while providing launch and deployment resilience, capex efficiency, defe
Slide 10: Simplify & Amplify: Transforming SES
SIMPLIFY AMPLIFY Transforming SES - Strengthening Competitiveness CREATE PURE- Increase visibility, operational focus and strategic flexibility Investigation of potential separation of Video and Networks within SES underway PLAY VERTICALS Realise substantial shareholder value from U.S. C-Band Es
Slide 11: Financial Highlights
FINANCIAL HIGHLIGHTS Sandeep Jalan, CFO
Slide 12: H1 2020 Financial Performance In Line With Expectations
H1 2020 Financial Performance In Line With Expectations H1 2019 H1 2020 EUR million reported reported H1 2020 underlying operating expenses included a Revenue 961 948 one-off charge related to Luxembourg net wealth tax (EUR 8 million) offsetting 2% (YOY) reduction in Operating expenses(1) (365) (3
Slide 13: Acceleration in Networks Being Offset By Near-term Impacts on Video
Acceleration in Networks Being Offset By Near-term Impacts on Video Revenue Walk Overall group revenue of EUR 948m for H1 (-1.5% EUR million YOY as reported and -2.4% YOY underlying) +12 +25 961 973 Video (-8.0% YOY) reflected combination of lower (48) (2) 948 distribution from customers ‘right-
Slide 14: Maintaining Strong Balance Sheet, Liquidity and Debt Maturity Profile
Maintaining SES’ Strong Balance Sheet, Liquidity and Debt Maturity Profile Reported net debt and Adjusted Net Debt to Adjusted EBITDA ratio Reported net debt reduced by 6% YOY EUR million and Times 3,616 3,580 3,398 Strong Liquidity of over EUR 1.6 billion including: 3,273 3,318 3.5x 3.5x 3.3x 3
Slide 15: Re-profiled CapEx Outlook With EUR 550 Million Deferred
Re-profiled CapEx Outlook With EUR 550 Million Deferred From 2020 and 2021 Capital Expenditure (growth and replacement)(1) CapEx forecast 2020-24 reprofiled with net increase EUR million (excluding U.S. C-band) since March’20 of EUR 70 million 970 • Substantially deferred CapEx (EUR 550 million) f
Slide 16: Strong Visibility to Capture Value From U.S. C-Band
Strong Visibility and Conviction to Capture Value From U.S. C-Band Expected C-Band clearing net cash inflows/(outflows) Cumulative Total clearing cost of USD 1.6 billion of which over USD million (2020-2024) USD 1.5 billion expected to be reimbursed USD 977 million(1) USD 2,991 million(1) 1st acce
Slide 17: Updated Financial Outlook reflecting COVID-19 Headwinds in H2 2020
Updated Financial Outlook reflecting COVID-19 Headwinds in H2 2020 H1 business performance resilient in the face of global pandemic. H2 expected to be more challenging given business impact to Mobility and Sports & Events in COVID-19 environment. Outlook for the year adjusted accordingly with strong
Slide 18: SES' Commitment to the Disciplined Financial Policy
SES’ Commitment to the Disciplined Financial Policy OUR POLICY OUTLOOK Replacement CapEx to sustain profitable portfolio of business Limited annual replacement CapEx of EUR 220 million (2020-2024) DISCIPLINED Disciplined value-accretive growth investment opportunities INVESTMENT EUR 1.8 bill
Slide 19: Conclusion
CONCLUSION Steve Collar, CEO
Slide 20: Leader in Global Content Connectivity Solutions
LEADER IN GLOBAL CONTENT CONNECTIVITY SOLUTIONS Unique global infrastructure with WELL POSITIONED TO proven scalability, flexibility and Networks underlying CAGR +25% (last 3 years) and EUR 2.4 billion contract backlog CAPTURE SIGNIFICANT performance OPPORTUNITY FROM GLOBAL DEMAND FOR CONTENT CONNEC
Slide 21: Additional Information
SES‘ ADDITIONAL INFORMATION 21
Slide 22: We Do the Extraordinary in Space to Deliver Amazing Experiences Everywhere on Earth
WE DO THE EXTRAORDINARY IN SPACE TO DELIVER AMAZING EXPERIENCES EVERYWHERE ON EARTH We believe in content and connectivity everywhere We provide cloud-enabled, satellite-based intelligent connectivity We are future-proof, powered by sustained growth and innovation We are passionate about customer ex
Slide 23: Alternative Performance Measures
Alternative Performance Measures SES regularly uses Alternative Performance Measures (APM) to present the performance of the Group and believes that these APMs are relevant to enhance understanding of the financial performance and financial position. These measures may not be comparable to similarly
Slide 24: Disclaimer
Disclaimer This presentation does not, in any jurisdiction, including without limitation 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
Slide 25: Investor Relations Contacts
Richard Whiteing Anja Siehler Michelle Suc Investor Relations Investor Relations Investor Relations Richard.Whiteing@ses.com Anja.Siehler@ses.com Michelle.Suc@ses.com T +352 710 725 261 T +352 710 725 8279 T +352 710 725 403 M +352 691 898 956 M +352 691 798 069 M +352 621 228 182 Connect with us 25