SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — Investor Presentation (March 2025)
32 slides from SES SA FDR (Class A)'s investor presentation, March 2025
Slide 1: Investor Presentation March 2025
March 2025 INVESTOR PRESENTATION
Slide 2: Disclaimer
Disclaimer Forward looking statements This communication contains forward-looking statements. Generally, the words “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “contemplate,” “predict,” “forecast,” “likely,” “believe,” “target,” “will,” “could,” “would,” “should,” “potential,” “m
Slide 3: SES at a Glance
PO so SES” | March 2005 ° tall A =
Slide 4: We Deliver High Performance Satellite-Based Communications Solutions Anywhere on Earth
We Deliver High Performance Satellite-Based Communications Solutions Anywhere on Earth 43 GEO wide-beam & € 5B gross customer + 44 Net Promoter Score high throughput satellites contract backlog (measured from -100 to +100) 28 MEO HTS satellites, 54% revenue from valuable, >2k employees with a growin
Slide 5: Well Placed to Deliver Sustained Shareholder Value
Well Placed to Deliver Sustained Shareholder Value We are operating in a Revenue growth outlook Commitment to a stable to growth market with powered by Networks, progressive dividend, expanding customer demand complemented by solid long-term Investment Grade credit metrics for satellite-based offeri
Slide 6: Diversified Business With Strong Financial Fundamentals
Diversified Business With Strong Financial Fundamentals NETWORKS MEDIA 54% of 2024 revenue (up from 41% in 2021) 46% of 2024 revenue (2021: 59%) €2.6B gross contract backlog €2.2B gross contract backlog Strong growth outlook with rapidly expanding global Solid cash generation & reducing CapEx needs
Slide 7: Trusted Partner Delivering Critical Infrastructure
Trusted Partner Delivering Critical Infrastructure GOVERNMENT (27% OF REVENUE) MOBILITY (15% OF REVENUE) FIXED DATA (12% OF REVENUE) MEDIA (46% OF REVENUE) http://t3.gstatic.com/images?q=tbn:ANd9GcSFoz3A-QdYQjpMDyZ6tzYI_xvhOVpzCmNaQD8LwTDK4FZsLwpUWg REVENUE OUTLOOK: REVENUE OUTLOOK: REVENUE OUTLOOK:
Slide 8: Our Evolved Strategy is Showing Results
Our Evolved Strategy is Showing Results TRANSFORMATION & EXECUTION FOCUS ON GREEN ZONES INVEST IN INNOVATION Most efficient & agile operating model Managed multi-orbit solutions in our Across our network & operations to to accelerate execution, maximising selected segments where we have a digi
Slide 9: Track Record of Cash Generation & Shareholder Returns
Track Record of Cash Generation & Shareholder Returns Since 2021 Since 2021 1.1B 1.2B GENERATED RETURNED STRONG € CASH TO OUR SHAREHOLDERS € ADJUSTED FCF Cumulative Cumulative Past 2022 CapEx peak with in service In dividends & share buyback programmes 2021-2023 Since 2021 3B -1.8x DELIVERED ON LOWE
Slide 10: Strong 2024 Financial Performance
Strong 2024 Financial Performance REVENUE €2.00B -1% YOY with 3rd consecutive year of Networks growth (+3% YOY) (OUTLOOK) (€1.94-2.0B) ADJUSTED EBITDA(1) €1.03B +1% YOY including 9% YOY reduction in controllable OpEx(2) (OUTLOOK) (€0.95-1.0B) €253M ADJUSTED FREE €684M (cumulative) generated in the l
Slide 11: Strong Capital Returns for Shareholders with Over 100% of Recurring Cashflows Returned
Strong Capital Returns for Shareholders with Over 100% of Recurring Cashflows Returned to Investors Capital Allocation by Category 2021 – 2024 (€ billion) 4.0 €1.1bn Recurring cashflows generated 2.0 Extraordinary €1.2bn 2.9 Cashflows(4) Cash returned to shareholders 0.4 >100% 0.4 Recurring cashflow
Slide 12: Superior Shareholder Payout Compared to Relevant Benchmarks
Superior Shareholder Payout Compared to Relevant Benchmarks Average Dividend Average Dividend Yield (2021 – 2024) Yield (2010 – 2020) 10.3% In addition, Increased 11.4% shareholder remuneration of average market cap returned via share buy-backs in the period 5.6% 4.0% Other major satellite 3.7% oper
Slide 13: Stable Financial Outlook for 2025
Stable Financial Outlook for 2025 2024A €2,001M GROUP 2025E REVENUE Stable YOY 2024A €1,028M ADJUSTED 2025E EBITDA(1) Broadly Stable YOY 2025E €425 - 475M CAPITAL 2024A EXPENDITURE €560M Average of ~€325M(2) for 2026-2029 exc. IRIS2 Financial outlook assumes constant FX, nominal satellite health, an
Slide 14: Market Opportunity & Our Positioning
MARKET OPPORTUNITY & OUR POSITIONING | March 2025
Slide 15: Strong Growth Drivers Across Valuable Networks Segments
Strong Growth Drivers Across Valuable Networks Segments GOVERNMENT (Fixed & Mobile) MOBILITY (Maritime & Aviation) FIXED DATA (Enterprise & Cloud) €12B (2030E TAM) €10B (2030E TAM) €7B (2030E TAM) +10% CAGR (2023-30E) +11% CAGR (2023-30E) +8% CAGR (2023-30E) Governments investment in secure space Pa
Slide 16: Today's SATCOM Market Has Bifurcated
Today's SATCOM Market Has Bifurcated GREEN ZONE = Simple & standard solutions “Generic Satcom Offerings” Sophisticated Solutions for End-Users Simpler connectivity requirements Solutions that are best addressed by MEO or GEO Easy install & easy integration Solutions where managed Multi-Orbit integra
Slide 17: Multi-Orbit is Required to Fulfil Certain Use-Cases
Multi-Orbit is Required to Fulfil Certain Use-Cases GEO remains cost-competitive for non-synchronous apps (e.g., broadcast, social media, email, web-searching) & non-interactive apps Point-to-multi-point GEO (e.g., civilian & defence surveillance & information gathering) broadcast & basic broadband
Slide 18: Customer Requirements Vary From Basic to Sophisticated
Customer Requirements Vary From Basic to Sophisticated Simple & standard solutions GREEN ZONE Network features Value added features Network coverage Operations & (vertical specific) Bandwidth availability Firewall fulfillment Passenger portal Cybersecurity Network Network analytics STCs reliability
Slide 19: Our Green Zones
Our Green Zones Dynamic Global IFC Dynamic Global Cruise Complex multi-orbit FTA/FTV ecosystem Secure, Sovereign Network & Passenger Network & Passenger MBH, Trunking and in select markets + Multi-application Experience Experience COTP deployments Sports/Events challenges Customer Removal of complex
Slide 20: Customer Value Drives our Innovation & Investment Priorities
Customer Value Drives our Innovation & Investment Priorities Creating Compelling Vertical Value Propositions Global Cruise Complex multi-orbit Secure multi- Global IFC Network & FTA & FTV ecosystem Network & Passenger MBH, Trunking and application Passenger Experience in selected markets Experience
Slide 21: Acquisition of Intelsat: A Compelling Combination
ACQUISITION OF INTELSAT: A COMPELLING COMBINATION | March 2025
Slide 22: Compelling Acquisition Focused on the Future
Compelling Acquisition Focused on the Future HIGHLY ACCRETIVE CREATING A STRONGER DELIVERING ENHANCED BUILDING TOTAL ACQUISITION MULTI-ORBIT OPERATOR CUSTOMER SOLUTIONS SHAREHOLDER RETURN €2.4B >€8B ~60% >€1B NPV of highly visible synergies with gross contract backlog underpins of revenue in Network
Slide 23: €2.4B (NPV) of Readily Executable Synergies
€2.4B (NPV) of Readily Executable Synergies YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 General operating expenses ~€210M RUN RATE Third-party capacity OPEX SYNERGIES Procurement efficiencies Non-satellite & ground infrastructure ~€160M RUN RATE CAPEX SYNERGIES Future fleet optimisation ~70% (~€260M) OF RUN
Slide 24: Stronger Multi-Orbit Operator
Stronger Multi-Orbit Operator EXPANDED Satellites (GEO + MEO) Satellites (GEO) Satellites (GEO + MEO) 43 + 28 57 100 + 28 GLOBAL GREATER REACH INFRASTRUCTURE & RESILIENCE 2 future GEO SDS 4 future GEO SDS 6 future GEO SDS ENHANCED CONNECTIVITY 5 future 5 future INVESTING IN INNOVATION ASSURED CAPACI
Slide 25: Stronger Suite of Customer Solutions
Stronger Suite of Customer Solutions >60 Serving demanding missions for key European, U.S., U.K., NATO, & U.N. requirements GOVERNMENT agencies & institutions Protected, multi-frequency & multi-orbit solutions for interoperability & resilience MARITIME >100 Connecting major cruise lines with fibre-l
Slide 26: Combined Company to Have a Stronger Financial Profile
Combined Company to Have a Stronger Financial Profile Total Revenue Adjusted EBITDA Adjusted EBITDA less CapEx €3.7B €1.8B €0.9B (2024) +1.7x (2024) +1.8x (2024) +1.8x €2.0B €1.03B €0.5B (2024) (2024) (2024) All numbers stated assuming FX rate of €1:$1.09 and adjusted for Intercompany eliminations.
Slide 27: Strong Combined Growth & Cash Generation Outlook
Strong Combined Growth & Cash Generation Outlook REVENUE ADJUSTED EBITDA ADJUSTED FCF (pre-IRIS2) ADJUSTED NET LEVERAGE Low to mid Mid single Over Below single digit digit €1B 3 times CAGR (2024E-2028E) CAGR (2024E-2028E) By 2027E/2028E 12-18 months after closing Networks ~60% of total Fast executio
Slide 28: Strong Financial Position with Sufficient Liquidity to Cover Upcoming Maturities
Strong Financial Position with Sufficient Liquidity to Cover Upcoming Maturities Financing for Intelsat Acquisition Fully Secured (€bn)(4) 3.4% Sufficient Liquidity to Cover Upcoming Maturities Post 6.9 Transaction Closing(5) (€bn) ~ Weighted average cost of SES Bridge Facility(1) 1.1 current debt f
Slide 29: Disciplined Financial Policy to Drive Stakeholder Value
Disciplined Financial Policy to Drive Stakeholder Value MAINTAINING A STRONG DELIVERING RETURNS PROFITABLY INVESTING BALANCE SHEET TO SHAREHOLDERS FOR THE FUTURE Committed to investment grade metrics Stable to progressive dividend policy Sustain & profitably grow the business Target net leverage of
Slide 30: 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 31: Future Satellite Launch Schedule
Future Satellite Launch Schedule Region Application Launch O3b mPOWER (9, 10, & 11) Global Networks 2025 EAGLE-1 Europe Networks 2026 O3b mPOWER (12 & 13) Global Networks 2026 ASTRA 1Q Europe Video, Networks 2027 SES-26 Asia, EMEA Networks, Video 2027 Orbital Position Application Launch IS-41 (SDS)
Slide 32: SES Investor Relations
SES Investor Relations Email: IR@ses.com | March 2025