SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — Non-Deal Roadshow (November 2021)
37 slides from SES SA FDR (Class A)'s roadshow presentation, November 2021
Slide 1: Investor Presentation November 2021
INVESTOR PRESENTATION November 2021 Investor Presentation | November 2021 SES Proprietary and Confidential
Slide 2: SES at a Glance
SES AT A GLANCE
Slide 3: Leader in Global Content Connectivity Solutions
LEADER IN GLOBAL CONTENT CONNECTIVITY SOLUTIONS WE DO THE EXTRAORDINARY IN SPACE 99% €1.88B TO DELIVER AMAZING EXPERIENCES of the Earth is covered by the SES network 2020 group Revenue EVERYWHERE ON EARTH +27% growth €1.15B in SES Networks underlying 2020 group revenue (2017-2020) Adjusted EBITDA OU
Slide 4: Our Equity Story
OUR EQUITY STORY 1. 2. 3. 4. 5. Industry Strong growth Profitable Making a Attractive Total leader outlook execution difference Shareholder Return • 35 years of success serving the • Rapidly growing demand for content • High EBITDA margins and focus on • We enable people to access media • Discipline
Slide 5: SES Is Uniquely Placed Within an Industry Set for Rapid Expansion
SES IS UNIQUELY PLACED WITHIN AN INDUSTRY SET FOR RAPID EXPANSION Networks propelling substantial industry revenue expansion … SES well placed with our unique value propositions Global satellite industry capacity revenue 2020-2029 ($B)(1) SES | Networks (41% of 2020 revenue) $26B ▲ Unique, proven, a
Slide 6: Solid YTD 2021 Performance Driving Revenue and EBITDA Execution
SOLID YTD 2021 PERFORMANCE DRIVING REVENUE AND EBITDA EXECUTION Strong performance supporting improved 2021 Video revenue outlook STRONG BUSINESS Resilient Networks performance during extended COVID environment EXECUTION AND MARKET SUCCESS Cost and financial discipline driving lower YOY recurring Op
Slide 7: Executing on Our Key Strategic Value Creation Drivers
EXECUTING ON OUR KEY STRATEGIC VALUE CREATION DRIVERS Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Accelerating Revenue and EBITDA growth O3b mPOWER (1-6) in service SES-17 O3b mPOWER in service O3b mPOWER O3b mPOWER 4-6 launch SES-17 7-9 launch launched 1-3 launch 2nd launch for 1st launch for US C-band
Slide 8: Global Multi-Orbit Network a Key Differentiator for SES
GLOBAL MULTI-ORBIT NETWORK A KEY DIFFERENTIATOR FOR SES only multi-orbit (GEO-MEO) global network GEO (~36,000 km) MEO (~8,000 km) LEO (~1,000 km) Latency Medium (~700 m/s) Low (~150 m/s) Very low (~50 m/s) Network size for global services 3 satellites (99% coverage) 6 satellites (96% coverage) Thou
Slide 9: Uniquely Positioned for High Throughput and/or High Flexibility Needs
UNIQUELY POSITIONED FOR HIGH THROUGHPUT AND/OR HIGH FLEXIBILITY NEEDS & GEO-HTS = High Flexibility & GEO HTS = High Throughput + High Flexibility HIGH ~10,000 ~110,000 ~3,000 ~400 ~11,000 Passenger Vessels Merchant Vessels Oil & Gas Support Vessels Ocean Cruise Vessels Naval Vessels ~$3B ~$7B in 202
Slide 10: Clear Path to Sustained Profitable Growth
CLEAR PATH TO SUSTAINED PROFITABLE GROWTH 2020(1) 2021(1) 2022 2023 2024 2025 Video €1,093M €1,030 - 1,040M Flattening the curve Networks €732M €720 - 750M Acceleration of growth from 2022, propelled by SES-17 and O3b mPOWER Group revenue €1,827M €1,760 - 1,800M Growth from 2023 Adjusted EBITDA €1,1
Slide 11: Business Overview
BUSINESS OVERVIEW
Slide 12: Focus on Execution and Operational Excellence to Drive Growth
Clear path to growth | delivering sustained revenue, EBITDA, and FCF growth from 2023 FOCUS ON EXECUTION AND OPERATIONAL EXCELLENCE TO DRIVE GROWTH Flattening the curve in Video Accelerating our growth in Networks, Maximising profitability and cash flow leveraging neighborhoods and cloud propelled b
Slide 13: Resilient Long-Term Fundamentals in Video
Video | strong long-term cash flow generation and profitability RESILIENT LONG-TERM FUNDAMENTALS IN VIDEO HD expansion and UHD adoption driving future TV channel development HD is now the standard for TV viewing experiences, with Global TV channels over satellite(1) UHD for premium content (e.g.,
Slide 14: Leading in Household Reach, Quality and Reliability
Video | strong long-term cash flow generation and profitability LEADING IN HOUSEHOLD REACH, QUALITY AND RELIABILITY Unparalleled audience reach across our neighbourhoods Market-leader in premium content Millions of TV households served by SES Number of TV channels carried over the SES network SES TV
Slide 15: Profitable Direct-to-Home (DTH) Neighbourhoods
Video | strong long-term cash flow generation and profitability PROFITABLE DIRECT-TO-HOME (DTH) NEIGHBOURHOODS >8,250 TV channels 361M TV homes ~40 €3.4B 5-10 YEARS (#1 in our industry) (#1 in our industry) DTH platforms 2020 contract backlog typical contract length World’s strongest video neighbour
Slide 16: Prime Neighbourhoods and Growing Consumer Platform in Europe
Video | strong long-term cash flow generation and profitability PRIME NEIGHBOURHOODS AND GROWING CONSUMER PLATFORM IN EUROPE LEADING B2C PLATFORM IN GERMANY Enabling viewers to access 24 private HD and 2 private UHD TV channels for €75 per year, as well as 40 free TV channels Business to benefit
Slide 17: Expanding Our B2C Platform Offering in Germany
Video | strong long-term cash flow generation and profitability EXPANDING OUR B2C PLATFORM OFFERING IN GERMANY >2M paying subscribers HD+ (+1% YOY) and growing Successfully implemented 7% price increase (Q1 2021) With HD+ ToGo (from early Q4 2021), HD+ experience available to subscribers on mo
Slide 18: Strong Neighbourhoods in All Major Global Regions
Video | strong long-term cash flow generation and profitability STRONG NEIGHBOURHOODS IN ALL MAJOR GLOBAL REGIONS EXPANDING REACH IN EMERGING MARKETS Since 2017, SES’ reach in International markets has grown by 17M (or 15%) to 126M total TV households in key markets Strong neighbourhoods in all
Slide 19: Deepening Relationships with Hybrid & Cloud-Based Solutions
Video | strong long-term cash flow generation and profitability DEEPENING RELATIONSHIPS WITH HYBRID & CLOUD-BASED SOLUTIONS HYBRID & CLOUD-BASED SOLUTIONS We help broadcasters to offer multi-screen services and monetise content, combining broadcast and OTT into a seamless workflow Our SES 360 pl
Slide 20: Exponentially Growing Demand for Network Connectivity Solutions
Networks | profitable long-term growth through unique value proposition in key segments EXPONENTIALLY GROWING DEMAND FOR NETWORK CONNECTIVITY SOLUTIONS Substantial and growing demand to drive 2-3x growth in Networks Substantial opportunity from fulfilling global ambition for universal Global Netwo
Slide 21: Cloud Adoption to Drive Substantial Data Growth
Networks | profitable long-term growth through unique value proposition in key segments CLOUD ADOPTION TO DRIVE SUBSTANTIAL DATA GROWTH Cloud is a key enabler to customer success and networks expansion Cloud applications allow businesses to improve operational efficiently; Cloud data traffic over
Slide 22: Delivering Unparalleled Customer Experience
Networks | profitable long-term growth through unique value proposition in key segments DELIVERING UNPARALLELED CUSTOMER EXPERIENCE +27% Growth Unique GEO-MEO €1.9B €2.2B 3-5 YEARS in revenue (2017-2020) and terrestrial network growth investment 2020 contract backlog typical contract length Unique a
Slide 23: Serving High Throughput, High Flexibility Government Requirements
Networks | profitable long-term growth through unique value proposition in key segments SERVING HIGH THROUGHPUT, HIGH FLEXIBILITY GOVERNMENT REQUIREMENTS CONNECTING GOVERNMENT ON THE MOVE Leveraging market-leading Cruise solution to deliver reliable connectivity for mission-critical applications,
Slide 24: Delivering Home Equivalent Connectivity at Sea or in the Air
Networks | profitable long-term growth through unique value proposition in key segments DELIVERING HOME EQUIVALENT CONNECTIVITY AT SEA OR IN THE AIR HIGH-SPEED IN-FLIGHT CONNECTIVITY SES is working with the leading aero service providers to meet passenger and airline expectations for high-speed co
Slide 25: Helping to Connect the Unconnected
Networks | profitable long-term growth through unique value proposition in key segments HELPING TO CONNECT THE UNCONNECTED SUPPORTING RURAL INCLUSION We partner with local providers to bring reliable broadband connectivity to remote, rural, and developing areas enabling local businesses, schools,
Slide 26: O3b mPOWER Delivers Differentiated and Valuable Capabilities
Networks | profitable long-term growth through unique value proposition in key segments O3b mPOWER DELIVERS DIFFERENTIATED AND VALUABLE CAPABILITIES Highest From 10s of MB/s up to 10s of GB/s anywhere, anytime throughput Low latency ‘fibre-like’ performance enabling seamless network per terminal
Slide 27: We Are Here to Make a Difference
Environmental, Social, and Governance | contributing to making the world a better place 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
Slide 28: Financials & Additional Information
FINANCIALS & ADDITIONAL INFORMATION
Slide 29: Commitment to the Disciplined Financial Policy
Disciplined financial policy | profitable investment, strong balance sheet, and sustained shareholder returns COMMITMENT TO THE DISCIPLINED FINANCIAL POLICY OUR POLICY OUTLOOK Replacement CapEx to sustain profitable portfolio of business Limited annual replacement CapEx €165M (2021-2025) DISCIPL
Slide 30: Strong Balance Sheet with Leverage at Lowest Level for 5 Years
Disciplined financial policy | strong balance sheet and liquidity profile STRONG BALANCE SHEET WITH LEVERAGE AT LOWEST LEVEL FOR 5 YEARS Leverage and Net Debt at lowest level since 2016 No significant senior Bond maturities before Q2 2023 Adjusted Net Debt (€M)(1) and Adjusted Net Debt to Adjusted E
Slide 31: Expanding FCF Beyond 2022 Driven by Lower CapEx and EBITDA Growth
Disciplined financial policy | value-accretive investment EXPANDING FCF BEYOND 2022 DRIVEN BY LOWER CAPEX AND EBITDA GROWTH Growth investment peak in 2022 followed by meaningfully lower CapEx profile, combined with expanding revenue and EBITDA driven by SES-17 & O3b mPOWER Total CapEx outlook (202
Slide 32: Delivering Substantial Value-Creation from US C-Band
C-band | realising substantial incremental value DELIVERING SUBSTANTIAL VALUE-CREATION FROM US C-BAND Expected C-band clearing net cash inflows / (outflows) Phase 1 clearing already completed $M (pre-tax), including accelerated relocation payments +2,991 • $1B (pre-tax) accelerated relocation paym
Slide 33: Solid Adjusted EBITDA and Margin Performance
YTD 2021 Results | solid YTD performance SOLID ADJUSTED EBITDA AND MARGIN PERFORMANCE EBITDA margin reflects strong focus on the bottom line Adjusted EBITDA margin of 62.4% Adjusted EBITDA Walk (in €M) Recurring OpEx reduced 2.1% YOY, including the gains from Simplify & Amplify 883 Flat +11 (26) 8
Slide 34: 17% Year-on-Year Growth in Adjusted Net Profit
YTD 2021 Results | solid YTD performance 17% YEAR-ON-YEAR GROWTH IN ADJUSTED NET PROFIT Adjusted Net Profit of €225M Adjusted Net Profit (YTD 2020 to YTD 2021): Adjusted Net Profit and Net Profit Attributable to SES Shareholders Walk as reported (€M) 17% Growth YOY - lower Adjusted EBITDA offset b
Slide 35: Alternative Performance Measures
YTD 2021 Results | solid YTD performance 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 me
Slide 36: 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 37: 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 37