SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — Q1 2021 Earnings Presentation
22 slides from SES SA FDR (Class A)'s earnings presentation, May 6, 2021
Slide 1: Q1 2021 Results
Q1 2021 RESULTS THREE MONTHS ENDED 31 MARCH 2021 May 6, 2021 Q1 2021 Results | SES Proprietary and Confidential
Slide 2: Business Highlights
BUSINESS HIGHLIGHTS Steve Collar, CEO
Slide 3: Strong start to 2021
STRONG START TO 2021 Strong start to the year with solid Revenue and EBITDA performance - 2021 financial outlook on track Strong execution Improving trajectory in Video - leveraging value of strong neighbourhoods and pricing power and market success Solid Networks performance in COVID environment -
Slide 4: Strong financial performance in COVID environment
STRONG FINANCIAL PERFORMANCE IN COVID ENVIRONMENT Q1 2021 Video Revenue €263M -4.6% YOY underlying(1) Networks Revenue €173M +0.1% YOY underlying(1) Group Revenue €436M -2.8% YOY underlying(1) Adjusted EBITDA(2) €268M -2.6% YOY at constant FX Adj. Net Debt to Adj. EBITDA(2,3) 3.1 times Adjusted EB
Slide 5: Important renewals secured - improving trend in Video
IMPORTANT RENEWALS SECURED - IMPROVING TREND IN VIDEO Strong start to the year (-4.6% YOY versus -8.0% in FY 2020)(1) EXTENDED LONG-TERM PARTNERSHIP Over €150M of renewals and new business signed in Q1 2021 “We’re pleased to continue working with including important extensions with Sky, bmt, WDR
Slide 6: Solid Networks outturn in COVID environment - well placed to grow
SOLID NETWORKS OUTTURN IN COVID ENVIRONMENT - WELL PLACED TO GROW Government (+8.5%(1)) fueled by new MEO- and GEO- US Government business in both mobility and land deployments, plus new wins with 3 European governments EXPANDING SERVICES FOR US GOVERNMENT “We are proud to provide satellite Fixe
Slide 7: Clear visibility of substantial value-creation from US C-band
CLEAR VISIBILITY OF SUBSTANTIAL VALUE-CREATION FROM US C-BAND Expected C-band clearing net cash inflows / (outflows) ~60% of all Phase 1 satellite transitions now completed $M (pre-tax), including accelerated relocation payments +2,991 On track to meet end-2021 and end-2023 clearing deadlines an
Slide 8: Financial Highlights
FINANCIAL HIGHLIGHTS Sandeep Jalan, CFO
Slide 9: Solid adjusted EBITDA and improved margin
SOLID ADJUSTED EBITDA AND IMPROVED MARGIN EBITDA margin reflects strong focus on the bottom line Adjusted EBITDA margin improved to 61.4% Adjusted EBITDA Walk (in €M) • Recurring OpEx reduced 7% YOY including the gains from Simplify & Amplify 288 +13 (13) 275 (13) Flat 268 Improving trajectory i
Slide 10: Strong growth in net profit
STRONG GROWTH IN NET PROFIT Adjusted Net Profit up 41.5% YOY (+15.1% excluding FX gains/losses) Adjusted Net Profit (Q1 2020 to Q1 2021): Adjusted Net Profit and Net Profit Attributable to SES Shareholders Walk as reported (€M) 42% Growth YOY +14 Unch. 75 +2 Lower Adjusted EBITDA more than offse
Slide 11: Strong cash flow generation driving €534M YOY net debt reduction
STRONG CASH FLOW GENERATION DRIVING €534M YOY NET DEBT REDUCTION Leverage and Net Debt reduced YOY No significant senior maturities before Q2 2023 Adjusted Net Debt (€M)(1) and Adjusted Net Debt to Adjusted EBITDA ratio (Times) Debt maturity profile (€M) €M Q1 2020 Q1 2021 Weighted average debt matu
Slide 12: Capex forecast unchanged with low normalised capex from 2023
CAPEX FORECAST UNCHANGED WITH LOW NORMALISED CAPEX FROM 2023 Growth investment peaks in 2022 followed by meaningfully lower CapEx profile, combined with expanding revenue and EBITDA driven by SES-17 & O3b mPOWER Important growth investment (SES-17 and O3b Expected Capital Expenditure (€M, excludin
Slide 13: On track to deliver on 2021 financial outlook
ON TRACK TO DELIVER ON 2021 FINANCIAL OUTLOOK Financial outlook assumes EUR/USD FX rate of €1 = $1.20, nominal launch schedule and satellite health status Between €1,760M and €1,820M, including: Revenue(1) ▲ Video between €1,000M and €1,030M ▲ Networks between €750M and €780M Between €1,060M and €1,
Slide 14: Conclusion
CONCLUSION Steve Collar, CEO
Slide 15: Clear path to sustained profitable growth
CLEAR PATH TO SUSTAINED PROFITABLE GROWTH 2020(1) 2021(1) 2022 2023 2024 2025 Video €1,093M €1,000-1,030M Flattening the curve Networks €732M €750-780M Acceleration of growth from 2022, propelled by SES-17 and O3b mPOWER Group revenue €1,827M €1,760-1,820M Growth from 2023 Adjusted EBITDA €1,127M €1
Slide 16: Additional Information
SES‘ ADDITIONAL INFORMATION
Slide 17: Leader in global content connectivity solutions
LEADER IN GLOBAL CONTENT CONNECTIVITY SOLUTIONS WELL POSITIONED TO CAPTURE Unique Networks infrastructure driving profitable growth (+20% since Q1 2017) SIGNIFICANT OPPORTUNITY FROM GLOBAL DEMAND FOR CONTENT CONNECTIVITY Profitable Video neighbourhoods with long-term revenue (€3.4B backlog) and prof
Slide 18: Commitment to the disciplined financial policy
COMMITMENT TO THE DISCIPLINED FINANCIAL POLICY OUR POLICY OUTLOOK Replacement CapEx to sustain profitable portfolio of business Limited annual replacement CapEx €165M (2021-2025) DISCIPLINED Disciplined value-accretive growth investment €1.9B total growth CapEx (2021-2025), including €1.3B o
Slide 19: ESG – We are here to make a difference
ESG – WE ARE HERE TO MAKE A DIFFERENCE ▲ Our business activities have low impact on the environment Satellites create no carbon emissions during their operating life ▲ We apply a responsible fleet management approach with manufacturers to ENVIRONMENTAL Across our Earth operations, CO2 emissions
Slide 20: 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 21: Disclaimer
Disclaimer This presentation does not, in any jurisdiction, including without limitation in the US, 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 i
Slide 22: Investor Relations contacts
Richard Whiteing Michelle Suc Investor Relations Investor Relations Richard.Whiteing@ses.com Michelle.Suc@ses.com T +352 710 725 261 T +352 710 725 403 M +352 691 898 956 M +352 621 228 182 Connect with us 22