Slide 1: H1 2024 Results
H1 2024 RESULTS Six months ended 30 June 2024 | 1 August 2024
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: Agenda
Agenda BUSINESS HIGHLIGHTS FINANCIAL HIGHLIGHTS Adel Al-Saleh, CEO Sandeep Jalan, CFO | 1 August 2024 H1 2024 FINANCIAL RESULTS 3
Slide 4: Business Highlights
BUSINESS HIGHLIGHTS Adel Al-Saleh, CEO | 1 August 2024 H1 2024 FINANCIAL RESULTS 4
Slide 5: Highlights
Highlights Solid H1 financial performance Competitive vertical solutions driving underpins FY 2024 outlook execution continued growth in Networks O3b mPOWER & ASTRA 1P to Accretive Intelsat acquisition drive future growth & cash generation creates a stronger multi-orbit operator | 1 August 2024 H1 2
Slide 6: Solid H1 2024 Financial Performance
Solid H1 2024 Financial Performance H1 2024 €978M GROUP REVENUE Stable YOY with growth in Networks €525M ADJUSTED EBITDA Tracking to upper half of Full Year outlook €146M ADJUSTED FREE CASH FLOW +70% YOY including lower CapEx €3.8B CONTRACT BACKLOG ~€430M of renewals & new business signed | 1 August
Slide 7: Executing New Important Customer Wins
Executing New Important Customer Wins Providing end-to-end managed service to support the Extending long-term partnership to deliver a high- Air Combat Command remotely piloted aircraft quality TV channels to audiences across Germany training and testing program. and Austria until the end of the dec
Slide 8: Networks: Vertical Solutions Continuing to Deliver Growth
Networks (54% of Revenue): Vertical Solutions Continuing to Deliver Growth 1H Revenue of €523M up 5.0% YOY Growing government business (+8.4% YOY) Mobility (+11.1% YOY) including periodic in Q1 2024 Fixed Data (-8.1% YOY) impacted by periodic in Q1 2023 €1.9B fully protected contract backlog O3b mPO
Slide 9: Video: Solid Long-term Fundamentals Despite Lower Topline
Video (46% of Revenue): Solid Long-term Fundamentals Despite Lower Topline Serving 363M TV homes & >1 billion people Revenue of €453M (-6.7% YOY) DACH & Europe markets performed well Other markets lower than expectations Double-digit growth in Sports & Events business €1.9B fully protected contract
Slide 10: Accretive Intelsat Acquisition Creates a Stronger Competitor
Accretive Intelsat Acquisition Creates a Stronger Competitor Regulatory process is underway & on track for completion during the second half of next year; integration planning progressing Acquisition is fully funded & SES’s investment grade status was re-iterated by Moody’s & Fitch after announcemen
Slide 11: Financial Highlights
FINANCIAL HIGHLIGHTS Sandeep Jalan, CFO | 1 August 2024 H1 2024 FINANCIAL RESULTS 11
Slide 12: Solid Adjusted EBITDA Performance Supporting Adjusted Net Profit
Solid Adjusted EBITDA Performance Supporting Adjusted Net Profit Adjusted Net Profit and Reported Net Profit Walk (€M) Revenue of €978M (-0.9% YOY as reported; -0.6% YOY at constant FX) 116 Adjusted EBITDA(1) of €525M (-1.1% YOY as 111 reported; -0.9% YOY at constant FX) (2) Adjusted EBITDA margin o
Slide 13: Growth in Adjusted FCF Underpins Strong Balance Sheet
Growth in Adjusted FCF Underpins Strong Balance Sheet Combined Financial Outlook (€B)(2) Adjusted FCF(1) of €146M (+70% YOY) €216M dividend paid to shareholders in April 2024 & interim Mid-single digit CAGR including dividend of ~€110M to be paid in October 2024 synergies execution ~€1.8B €150M shar
Slide 14: 2024 Financial Outlook On Track
2024 Financial Outlook On Track OUTLOOK REVENUE €1,940-2,000M Continued growth in Networks mostly offsetting lower Video ADJUSTED EBITDA €950-1,000M Now expected to be within the upper half of the range CAPEX €500-550M ~€200M in H1, with higher level expected in H2 Financial outlook assumes €/$ FX r
Slide 15: Conclusion
CONCLUSION Adel Al-Saleh, CEO | 1 August 2024 H1 2024 FINANCIAL RESULTS 15
Slide 16: Solid H1 2024 Execution Driving Value Creation
Solid H1 2024 Execution Driving Value Creation Expansion of Government & Valuable DACH & Europe FY 2024 Adjusted EBITDA Mobility supporting continued Media business performing tracking to upper half of Networks growth well; Sports & Events growing outlook range Growing Adjusted FCF Delivering shareh
Slide 17: Ensuring SES is a Top Tier Competitor & Solutions Provider
Ensuring SES is a Top Tier Competitor & Solutions Provider VERTICAL FOCUS Customers & segments where our ability to deliver sophisticated multi-orbit, end-to-end solutions gives SES a right to win Government Cruise Aviation Telco & Mobile Media INVEST IN INNOVATION Across our multi-orbit space-based
Slide 18: Additional Information
ADDITIONAL INFORMATION | 1 August 2024 H1 2024 FINANCIAL RESULTS 18
Slide 19: Committed to Disciplined Financial Policy
Committed to Disciplined Financial Policy OUR FINANCIAL POLICY OUTLOOK Disciplined Sustain existing profitable business & value-accretive growth investment 2024 CapEx of €500-550M(2) INVESTMENT IRR hurdle rate of 10%+ (unlevered, post-tax) over investment horizon Reducing to average CapEx of ~€350M(
Slide 20: Future Satellite Launch Schedule
Future Satellite Launch Schedule Region Application Launch O3b mPOWER (7-8) Global Networks Late 2024 O3b mPOWER (9-11) Global Networks 2025 ASTRA 1Q Europe Video, Networks 2026 SES-26 Asia, EMEA Networks, Video 2026 EAGLE-1 Europe Networks 2026 O3b mPOWER (12-13) Global Networks 2026 Final launch d
Slide 21: Alternative Performance Measures (1/2)
Alternative Performance Measures (1/2) 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 sim
Slide 22: Alternative Performance Measures (2/2)
Alternative Performance Measures (2/2) 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 sim
Slide 23: Financial Information Used in This Presentation
Financial Information Used in This Presentation Accounting recognition and measurement principles: SES financial information presented using the recognition and measurement principles of IFRS. Intelsat financial information uses those of U.S. GAAP Accounting policies applied: the financial infor
Slide 24: Transaction Overview
Transaction Overview SES to pay $3.1B (€2.8B) to acquire 100% of Intelsat equity in all-cash transaction and certain contingent value rights Values Intelsat Enterprise Value (EV) at $5.0B (€4.6B) before synergies of €2.4B (NPV(1)) Acquisition funded using existing cash resources & new debt (includin
Slide 25: Growth & Strong Combined Cash Generation Profile
Growth & Strong Combined Cash Generation Profile MEDIUM-TERM (2024E-2028E) OUTOOK REVENUE (2024E) ~€3.8B Low- to mid-single digit CAGR (Networks ~60% of revenue) ADJUSTED EBITDA (2024E) ~€1.8B Mid-single digit CAGR including synergies - OF WHICH NON-CASH (2024E) ~€(175)M Reducing gradually to €20-30
Slide 26: Investor Relations Contact
Richard Whiteing, Joana Gomes, Michelle Suc Investor Relations IR@ses.com +352 710 725 261 | 1 August 2024