SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — Investor Day (2010)
27 slides from SES SA FDR (Class A)'s investor day presentation, 2010
Slide 1: Investor Day 2010
Investor Day 2010 Romain BAUSCH President and CEO, SES
Slide 2: Agenda
Agenda SES Overview Growth Strategy Building for Growth Services Activities Recent Developments Summary SES proprietary information 2
Slide 3: SES – Key Features
SES – Key Features Global satellite network Premium orbital locations Serving Media, Enterprise and Government Substantial customer base and contract backlog Solid core business Tapping new, growing markets Satellite investment programme meets new demand SES proprietary information 3
Slide 4: SES – Key Financial Attributes
SES – Key Financial Attributes Growing revenue and profitability Strong, predictable cash generation Solid, efficient balance sheet Secured financing and liquidity Investment grade credit issuer Attractive, progressive dividend policy Commitment to delivering value to shareholders SES proprietary in
Slide 5: Growth Strategy
Growth Strategy SES proprietary information 5
Slide 6: SES' Corporate Strategy
SES’ Corporate Strategy Growth through fleet expansion • Organic growth programmes • Selected acquisition opportunities • Innovative infrastructure initiatives - O3b Networks Additional demand for SES satellite capacity generated through selective, complementary services activities • “Pull-through”
Slide 7: Demand: Growth mainly from Emerging Markets
Growth mainly from Emerging Markets C- and Ku-band demand evolution CAGR 2009-2017 (36 MHz transponder equivalents) 6,389 6,517 TOTAL 3.1% 6,055 6,216 5,792 5,885 5,414 5,584 Asia Pacific 4.0% 1,810 1,858 5,094 1,678 1,738 1,573 1,610 1,438 1,509 MENA 4.2% 1,358 621 639 587 591 Sub Saharan 578 575 5
Slide 8: Video DTH and Government main demand drivers
Video DTH and Government main demand drivers C- and Ku-band demand evolution (36 MHz transponder equivalents) CAGR 2009-2017 6,055 6,216 6,389 6,517 5,885 TOTAL 3.1% 5,792 5,414 5,584 475 552 612 5,094 418 463 300 411 294 297 296 Government 9.8% 345 379 291 289 643 622 290 285 287 667 739 711 677 Wi
Slide 9: Global Demand Drivers
Global Demand Drivers Video • HD channel growth • New DTH platforms Enterprise • Consistent growth in VSAT communications networks Government • Mobile and Broadband applications • Increasing use of commercial satellite capacity Residential Broadband • Niche opportunity as terrestrial high-speed netw
Slide 10: Building for Growth
Building for Growth SES proprietary information 10
Slide 11: Building for Growth
Building for Growth SES’ investment programme is focused on growth markets 16 satellite programmes (including YahLive participation) between 2010 and end 2014 will provide replacement and growth capacity • Over 30% more capacity in the SES fleet compared to 2009 • More than 85% of which will serve e
Slide 12: Capacity in 36 MHz-equivalents
Capacity in 36 MHz-equivalents SES fleet capacity data has to date been detailed in terms of physical units (transponders) We propose from now on to reference 36 MHz-equivalent transponders, a commonly used industry standard Rationale: • The international fleet has transponders of varying bandwidths
Slide 13: Group Fleet – at end 2009
Group Fleet – at end 2009 NSS-9 183ºE 39 satellites AMC-8 AMC-7 26 orbital positions 13 7ºW 9º AMC-10 1 1,173 transponders 13 W 35 AMC-11 13 º 1º W Ciel-2* 12 W 9º AMC-21 12 W 5º W AMC-15, AMC-18 105ºW 108.2ºE NSS-11 AMC-1 103ºW AMC-2, AMC-4 101ºW 95ºE NSS-6 AMC-3 87ºW AMC-16 85ºW AMC-9 83ºW 39 SATE
Slide 14: Group Fleet in 2015
Group Fleet in 2015 NSS-9 183ºE 38 satellites AMC-8R AMC-7 30 orbital positions 13 7ºW 9º AMC-10 1 1,533 transponders 13 W 35 AMC-11 13 º 1º W Ciel-2* 12 W 9º AMC-21 12 W 5º W AMC-15, AMC-18 105ºW 108.2ºE NSS-11, SES-7 SES-3 103ºW SES-1 101ºW 95ºE NSS-6 SES-287ºW AMC-16 85ºW AMC-9 83ºW 38 SATELLITES
Slide 15: Enhanced fleet delivers over 30% more capacity
Enhanced fleet delivers over 30% more capacity 360 additional transponders over 1,173 at end 2009 SES Group 2010 2011 2012 2013 2013 2014 Q1 Q2 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q1 Total ASTRA ASTRA 4B ASTRA SES ASTRA ASTRA 3B YahLive 1N (Sirius 5) ASTRA 2F ASTRA 2E ASTRA 5B 2G Europe: 9, Europe: 12, 3) Incremen
Slide 16: Capital Investment Reducing
Capital Investment Reducing EUR million 900 Estimated, Uncommitted Replacement Satellite 820 790 Protostar-2 800 53 725 30 50 700 13 Committed non-Satellite CapEx 65 600 Committed Satellite CapEx providing replacement 20 and incremental capacity 500 400 718 760 300 646 10 559 200 320 100 5 80 0 A 20
Slide 17: Services Activities
Services Activities SES proprietary information 17
Slide 18: Services Revenue by Activity
Services Revenue by Activity One third of services revenue is “pull-through” using SES capacity FY 2009 Services revenue 363 MEUR Technical 12% Enterprise 16% Government 52% IPsys® Resources Video-related (Represents c. 25% 20% of services revenue ) SES proprietary information 18
Slide 19: Services Update - ND SatCom
Services Update - ND SatCom SES has successfully refocused ND SatCom, which is on track to deliver a positive contribution in 2010 Following detailed review, SES considers that ownership of ND SatCom is no longer a prerequisite for development of the European Government market • Furthermore, ND SatC
Slide 20: Services - Summary
Services - Summary SES has refocused its services activities to concentrate on those which can deliver SES satellite “pull-through” • Refocusing of AGS on infrastructure bandwidth and solutions • ND SatCom deconsolidation Geographical extension of successful services • APS to support ODM and YahLive
Slide 21: Recent Developments
Recent Developments SES proprietary information 21
Slide 22: Operational and Business Highlights
Operational and Business Highlights Strong DTH contract flow in emerging markets: • Mediascape (Philippines) 3 transponders • Wananchi (Kenya) 4.5 transponders • Claro (Puerto Rico) 5 transponders • ODM (South Africa) 3 transponders • AVG (Vietnam) 2.5 transponders German analogue switch off future
Slide 23: SES-1: Launched on 24th April
SES-1 : Launched on 24th April SES-1 replacement spacecraft in the North American fleet • 24 Ku-band and 24 C-band transponders; 50-State coverage • Prime centre-of-arc location Media & Enterprise neighbourhood • Replacement for the co-located AMC-2 and AMC-4 at 101°W • Temporary assignment at 131°W
Slide 24: Astra 3B – Launched on 21st May
Astra 3B – Launched on 21st May Replaces ASTRA 3A and other spacecraft at 23.5E Additional capacity • Delivering total of 60 Ku-band transponders at Beginning Of Life • 48 pan-European transponders • 8 of the 12 additional transponders in the dedicated Middle East beam are now contracted, while the
Slide 25: SES-7 (ProtoStar 2): Acquired on 5th May
SES-7 (ProtoStar 2): Acquired on 5th May Overview of Transaction Ku 1 • SES winning bidder during December 2009 U.S. bankruptcy 2 x 24 MHz auction Add. 6x24 MHz option • All-in cash acquisition price of 185 MUSD • Closing took place on 5th May 2010 after government approvals • Satellite has 22 physi
Slide 26: NSS-806 and SES-6
NSS-806 and SES-6 NSS-806 will be replaced by SES-6 in early 2013 SES-6 (NSS-806R) Satellite Facts • NSS-806 expected to be redeployed at an Atlantic Orbital Position: 40.5° West Launch Date: Expected Early 2013 Ocean orbital position EOL: 15+ yrs Payload (36 MHz equiv): SES-6 adds significant C & K
Slide 27: Summary
Summary Strong demand in emerging markets transformed into additional contracts SES investment programme has a clear focus on these markets Major capacity increase of over 30%, delivered on unchanged number of satellites Video (in particular DTH) and government remain the principal growth drivers SE