SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — Investor Presentation (September 2024)
36 slides from SES SA FDR (Class A)'s investor presentation, September 2024
Slide 1: Investor Presentation September 2024
September 2024 INVESTOR PRESENTATION
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: SES at a Glance
SES AT A GLANCE | September 2024
Slide 4: High Performance Satellite-Based Communications Solutions Anywhere on Earth
We Deliver High Performance Satellite-Based Communications Solutions Anywhere on Earth 43 GEO wide-beam & € 4B fully protected contract + 54 Net Promoter Score high throughput satellites backlog (€5B gross backlog) (measured from -100 to +100) 26 MEO HTS satellites, 52% revenue from valuable, >2k em
Slide 5: Well Placed to Deliver Sustained Shareholder Value
Well Placed to Deliver Sustained Shareholder Value We are operating in a Revenue growth outlook Commitment to a stable to growth market with powered by Networks, progressive dividend, expanding customer demand complemented by solid long-term Investment Grade credit metrics for satellite-based offeri
Slide 6: Diversified Business With Strong Financial Fundamentals
Diversified Business With Strong Financial Fundamentals NETWORKS MEDIA 52% of 2023 revenue (up from 41% in 2021) 48% of 2023 revenue (2021: 59%) €2B fully protected contract backlog €2B fully protected contract backlog Strong growth outlook with rapidly expanding global Solid cash generation & reduc
Slide 7: Trusted Partner Delivering Critical Infrastructure
Trusted Partner Delivering Critical Infrastructure GOVERNMENT (25% OF REVENUE) MOBILITY (14% OF REVENUE) FIXED DATA (13% OF REVENUE) MEDIA (48% OF REVENUE) REVENUE OUTLOOK: REVENUE OUTLOOK: REVENUE OUTLOOK: REVENUE OUTLOOK: GROWTH GROWTH GROWTH DECLINE Diversified customer base with track record of
Slide 8: Track Record of Cash Generation & Shareholder Returns
Track Record of Cash Generation & Shareholder Returns SOLID H1 2024 2021-H1 2024 2021-H1 2024 PERFORMANCE 1B 1B GENERATED RETURNED STRONG ~€ CASH TO OUR SHAREHOLDERS >€ ADJUSTED FCF Cumulative Cumulative Group revenue stable YOY Past 2022 CapEx peak with in service In dividends & share buyback progr
Slide 9: Ensuring SES is a Top Tier Operator & Solutions Provider
Ensuring SES is a Top Tier Operator & Solutions Provider VERTICAL FOCUS Customers & segments where our ability to deliver sophisticated & high-performance multi-orbit solutions gives SES a right to win Government Cruise Aviation Telco & Mobile Media INVEST & INNOVATE Across our multi-orbit space-bas
Slide 10: Market Opportunity & Our Positioning
MARKET OPPORTUNITY & OUR POSITIONING | September 2024
Slide 11: Strong Growth Drivers Across Valuable Networks Segments
Strong Growth Drivers Across Valuable Networks Segments GOVERNMENT (Fixed & Mobile) MOBILITY (Maritime & Aviation) FIXED DATA (Enterprise & Cloud) €13B (2030E TAM) €10B (2030E TAM) €7B (2030E TAM) +7% CAGR (2023-30E) +11% CAGR (2023-30E) +8% CAGR (2023-30E) Governments investment in sovereign space
Slide 12: Today's SATCOM Market Has Bifurcated
Today's SATCOM Market Has Bifurcated GREEN ZONE = Simple & standard solutions “Generic Satcom Offerings” Sophisticated Solutions for End-Users Simpler connectivity requirements Solutions that are best addressed by MEO or GEO Easy install & easy integration Solutions where managed Multi-Orbit integra
Slide 13: Multi-Orbit is Required to Fulfil Certain Use-Cases
Multi-Orbit is Required to Fulfil Certain Use-Cases GEO remains cost-competitive for non-synchronous apps (e.g., broadcast, social media, email, web-searching) & non-interactive apps Point-to-multi-point GEO (e.g., civilian & defence surveillance & information gathering) broadcast & basic broadband
Slide 14: Customer Requirements Vary From Basic to Sophisticated
Customer Requirements Vary From Basic to Sophisticated Simple & standard solutions GREEN ZONE Network features Value added features Network coverage Operations & (vertical specific) Bandwidth availability Firewall fulfillment Passenger portal Cybersecurity Network Network analytics STCs reliability
Slide 15: Our Green Zones
Our Green Zones Dynamic Global IFC Dynamic Global Cruise Complex multi-orbit FTA/FTV ecosystem Secure, Sovereign Network & Passenger Network & Passenger MBH, Trunking and in select markets + Multi-application Experience Experience COTP deployments Sports/Events challenges Removal of complexity, Futu
Slide 16: Customer Value Drives our Innovation & Investment Priorities
Customer Value Drives our Innovation & Investment Priorities Creating Compelling Vertical Value Propositions Global Cruise Complex multi-orbit Secure multi- Global IFC Network & FTA & FTV ecosystem Network & Passenger MBH, Trunking and application Passenger Experience in selected markets Experience
Slide 17: Acquisition of Intelsat: A Compelling Combination
ACQUISITION OF INTELSAT: A COMPELLING COMBINATION | September 2024
Slide 18: Compelling Acquisition Focused on the Future
Compelling Acquisition Focused on the Future HIGHLY ACCRETIVE CREATING A STRONGER DELIVERING ENHANCED BUILDING TOTAL ACQUISITION MULTI-ORBIT OPERATOR CUSTOMER SOLUTIONS SHAREHOLDER RETURN Combines two trusted operators with Complementary spectrum, satellite End-to-end solutions in high value Acceler
Slide 19: €2.4B (NPV) of Readily Executable Synergies
€2.4B (NPV) of Readily Executable Synergies YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 General operating expenses ~€210M RUN RATE Third-party capacity OPEX SYNERGIES Procurement efficiencies Non-satellite & ground infrastructure ~€160M RUN RATE CAPEX SYNERGIES Future fleet optimisation ~70% (~€260M) OF RUN
Slide 20: Stronger Multi-Orbit Operator
Stronger Multi-Orbit Operator EXPANDED Satellites (GEO + MEO) Satellites (GEO) Satellites (GEO + MEO) GLOBAL INFRASTRUCTURE 43 + 26 57 100 + 26 GREATER REACH & RESILIENCE INVESTING IN 2 future GEO SDS 4 future GEO SDS 6 future GEO SDS ENHANCED CONNECTIVITY INNOVATION 7 future 7 future ASSURED CAPACI
Slide 21: Stronger Combined Portfolio, Focused on Growth
Stronger Combined Portfolio, Focused on Growth REVENUE (2023) TAM (2030E) GOVERNMENT €0.8B €0.5B (+1.6x) €13B MOBILITY €0.8B ~60% OF REVENUE IN €0.3B (+2.7x) €10B GROWTH SEGMENTS FIXED DATA €0.6B €0.3B (+2.0x) €7B SOLID CASH FLOW MEDIA €1.6B €3B FUNDAMENTALS €1.0B Increased focused on valuable & gro
Slide 22: Stronger Suite of Customer Solutions
Stronger Suite of Customer Solutions >60 Serving demanding missions for key European, U.S., U.K., NATO, & U.N. requirements GOVERNMENT agencies & institutions Protected, multi-frequency & multi-orbit solutions for interoperability & resilience ~100 Connecting major cruise lines with fibre-like conne
Slide 23: Stronger Combined Financial Profile
Stronger Combined Financial Profile Total Revenue Adjusted EBITDA Adjusted EBITDA less ‘target’ CapEx(1) €3.8B €1.8B €1.2B (2023) (2023) (2023) +1.9x +1.8x +1.7x €0.7B €1.0B (2023) €2.0B (2023) (2023) Key financial metrics almost doubling, improving financial flexibility to be competitive and delive
Slide 24: Both Companies Have Strong Balance Sheet Metrics
Both Companies Have Strong Balance Sheet Metrics (H1 2024) (H1 2024) SES’s Baa3/BBB with stable outlook rating was reaffirmed following acquisition announcement 1.7x NET LEVERAGE(1) 2.0x NET LEVERAGE(1,2) ~€3.4B combined cash & equivalents plus SES’s undrawn facility (€1.2B) & EIB loan (€0.3B) €2.1B
Slide 25: Strong Combined Growth & Cash Generation Outlook
Strong Combined Growth & Cash Generation Outlook REVENUE ADJUSTED EBITDA ADJUSTED FCF ADJUSTED NET LEVERAGE Low to mid Mid single Over Below single digit digit €1B 3 times CAGR (2024E-2028E) CAGR (2024E-2028E) By 2027E/2028E 12-18 months after closing Networks ~60% of total Fast execution of €210M o
Slide 26: Disciplined Financial Policy to Drive Shareholder Value
Disciplined Financial Policy to Drive Shareholder Value MAINTAINING A STRONG DELIVERING RETURNS PROFITABLY INVESTING BALANCE SHEET TO SHAREHOLDERS FOR THE FUTURE Committed to investment grade metrics Stable to progressive dividend policy Sustain & profitably grow the business Target net leverage of
Slide 27: Additional Information
ADDITIONAL INFORMATION | September 2024
Slide 28: ESG Agenda Aligned With Sustainable Development Goals
ESG Agenda Aligned With Sustainable Development Goals SUSTAINABLE SPACE CLIMATE ACTION DIVERSITY & INCLUSION CRITICAL HUMAN NEED Reduce our space footprint From carbon reduction to helping Make the space industry more Our products & services are across the lifecycle of our customers solve their clim
Slide 29: Broadcast TV is a Core Component of the Media Ecosystem
Broadcast TV is a Core Component of the Media Ecosystem Global Ad Spending & Share of Total Ad Spending(2) $150B 100% Average viewtime $125B share of Ad spend on traditional TV expected to remain robust, 75% $100B despite growth in spend allocated to digital video traditional TV in the U.S. of 49% f
Slide 30: Delivering High Performance Connectivity Solutions
Delivering High Performance Connectivity Solutions Multi-orbit, multi- GOVERNMENT MOBILITY FIXED DATA band satellite network with global coverage OUR OFFER Secure connectivity solutions to support Reliable ‘fibre-equivalent’ broadband for Managed, carrier-grade connectivity Global ground multiple de
Slide 31: Creating Value For Our Media Customers
Creating Value For Our Media Customers EUROPE INTERNATIONAL SPORTS & EVENTS Global reach covering 99% of the OUR OFFER Earth’s population Premium Direct to Home positions for Reliable TV channel/content distribution Distributing major sports events like NFL, Robust video Pay-TV & FTA content distrib
Slide 32: Video Neighbourhoods With Audience of Over 1B People
Video Neighbourhoods With Audience of Over 1B People We serve 362M TV homes: Europe North America 172M 42M (2017: 166M) Middle East 13M (2017: 75M) Asia-Pacific >1B people get access to content, Africa 32M 59M information, & entertainment from SES (2017: 13M) (2017: 33M) ~6,400 TV channels delivered
Slide 33: Combined Company Maturity Profile & Liquidity
Combined Company Maturity Profile & Liquidity Liquidity & Combined Senior Debt Maturity Profile at June 2024 (€M) SES also has a €625M (2.875% coupon) hybrid bond(1) with first reset date in August 2026 Intelsat cash & cash 1,262 equivalents €1B dual tranche hybrid bond(1) offering was completed in
Slide 34: 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 Orbital Positi
Slide 35: 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 36: SES Investor Relations
SES Investor Relations Email: IR@ses.com Telephone: +352 710 725 261 | September 2024