SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — H1 2021 Earnings Presentation
23 slides from SES SA FDR (Class A)'s earnings presentation, Aug 4, 2021
Slide 1: H1 2021 Results
H1 2021 RESULTS SIX MONTHS ENDED 30 JUNE 2021 4 August 2021 H1 2021 Results | SES Proprietary and Confidential
Slide 2: Business Highlights
BUSINESS HIGHLIGHTS Steve Collar, CEO
Slide 3: Solid H1 performance driving improved EBITDA outlook for 2021
SOLID H1 PERFORMANCE DRIVING IMPROVED EBITDA OUTLOOK FOR 2021 Improving trajectory in Video - leveraging value of strong neighbourhoods and expanding B2C business (HD+) Resilient Networks performance in COVID environment - strong prospects for the future with launches in Q4 2021 Execution and market
Slide 4: Solid financial performance in COVID environment
SOLID FINANCIAL PERFORMANCE IN COVID ENVIRONMENT H1 2021 Video Revenue €526M -3.9% YOY underlying(1) Networks Revenue €349M Flat YOY underlying(1) Group Revenue €875M -2.5% YOY underlying(1) Adjusted EBITDA(2) €544M -2.5% YOY at constant FX Adjusted Net Profit(2) €152M +34.5% YOY Adjusted EBITDA m
Slide 5: Leveraging our premium video neighbourhoods and pricing power
LEVERAGING OUR PREMIUM VIDEO NEIGHBOURHOODS AND PRICING POWER Solid H1 2021 execution (-3.9% YOY versus -8.0% in FY 2020)(1) EXTENDED LONG-TERM Over €250M of renewals and new business signed in H1 2021 at our PARTNERSHIP most popular and valuable neighbourhoods “We’re pleased to continue working
Slide 6: Expanding our B2C platform offering in Germany
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 mobile and tablets • Additional cost of €5/month with low overall
Slide 7: Resilient Networks outturn in COVID environment and well placed to grow
RESILIENT NETWORKS OUTTURN IN COVID ENVIRONMENT AND WELL PLACED TO GROW Government (+11.3%(1)): acceleration fueled by new MEO- and GEO- US mobility and land deployments, plus new wins with European governments EXPANDING SERVICES FOR US GOVERNMENT Fixed Data (-3.9%(1)): ongoing growth of ‘tier 1
Slide 8: SES is well positioned for high throughput / high flexibility needs
SES IS WELL POSITIONED FOR HIGH THROUGHPUT / 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 2029
Slide 9: Delivering substantial value-creation from US C-band
DELIVERING SUBSTANTIAL VALUE-CREATION FROM US C-BAND Expected C-band clearing net cash inflows / (outflows) Nearly all Phase 1 satellite transitions now completed, all antennas $M (pre-tax), including accelerated relocation payments installed by end-August, and ~80% of Phase 1 filters installed +2
Slide 10: Financial Highlights
FINANCIAL HIGHLIGHTS Sandeep Jalan, CFO
Slide 11: 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 62.2% Adjusted EBITDA Walk (in €M) • Recurring OpEx reduced 4.6% YOY including the gains from Simplify & Amplify Flat +16 582 (24) 558 (22) Improving trajectory in
Slide 12: 35% growth in adjusted net profit
35% GROWTH IN ADJUSTED NET PROFIT Adjusted Net Profit of €152M Adjusted Net Profit (H1 2020 to H1 2021): Adjusted Net Profit and Net Profit Attributable to SES Shareholders Walk as reported (€M) 35% Growth YOY - lower Adjusted EBITDA offset by reduction in D&A (-9% to €331M) and net interest expen
Slide 13: Reduced adjusted net debt by €391M YOY and lowering interest costs
REDUCED ADJUSTED NET DEBT BY €391M YOY AND LOWERING INTEREST COSTS Reduced Net Debt and Interest Costs No significant senior Bond maturities before Q2 2023 Adjusted Net Debt (€M)(1) and Adjusted Net Debt to Adjusted EBITDA ratio (Times) Debt maturity profile (€M) €M H1 2020 H1 2021 Total borrowings
Slide 14: Expanding FCF beyond 2022 driven by increasing EBITDA and lower CapEx
EXPANDING FCF BEYOND 2022 DRIVEN BY INCREASING EBITDA AND LOWER CAPEX Growth investment peak in 2022 followed by meaningfully lower CapEx profile, combined with expanding revenue and EBITDA driven by SES-17 & O3b mPOWER Growth investment (SES-17 and O3b mPOWER) on track Expected Capital Expenditur
Slide 15: Increasing low end of 2021 adjusted EBITDA outlook
INCREASING LOW END OF 2021 ADJUSTED EBITDA 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 €1,080M an
Slide 16: Conclusion
CONCLUSION Steve Collar, CEO
Slide 17: 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 €1,080-1,100M Adjusted EBI
Slide 18: Additional Information
SES‘ ADDITIONAL INFORMATION
Slide 19: 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 20: 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 21: 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 22: 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 23: 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 23