SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — Non-Deal Roadshow (September 2020)
31 slides from SES SA FDR (Class A)'s roadshow presentation, September 2020
Slide 1: Investor Presentation September 2020
WE DO THE EXTRAORDINARY IN SPACE TO DELIVER AMAZING EXPERIENCES EVERYWHERE ON EARTH Investor Presentation September 2020 Investor Presentation | September 2020 SES Proprietary and Confidential
Slide 2: Agenda
Agenda 1. SES at a Glance 3 2. Business Overview 10 2.1 Video | strong cash flow Generation and Profitability 11 2..2 Networks | Profitable long-term Growth through Unique Value Proposition 14 2.3 Disciplined Financial Policy | Value creation 17 3. Latest Financial & Additional Information 23 Invest
Slide 3: SES at a Glance
SES AT A GLANCE
Slide 4: Leader in Global Content Connectivity Solutions
LEADER IN GLOBAL CONTENT CONNECTIVITY SOLUTIONS 99% €1.98BN TAKE YOUR of the world’s population 2019 group STORY ANYWHERE covered by SES’ network Revenue +25% growth €1.24BN in SES Networks underlying 2019 group revenue (last 3 years) Adjusted EBITDA At SES, we believe everyone should have the freed
Slide 5: We Do the Extraordinary in Space
WE DO THE EXTRAORDINARY IN SPACE TO DELIVER AMAZING EXPERIENCES EVERYWHERE ON EARTH We believe in content and connectivity everywhere We provide cloud-enabled, satellite-based intelligent connectivity We are future-proof, powered by sustained growth and innovation We are passionate about customer ex
Slide 6: Business Highlights
Business Highlights Solid H1 2020 financial performance despite challenging environment. Underlying growth in Networks of +7% YOY and +25% over the last 3 years €40-60mn exceptional cost reduction measures in place to protect 2020 bottom line given expected COVID-19 related revenue developments in H
Slide 7: Well Positioned to Deliver Long-Term Value Creation for Shareholders
WELL POSITIONED TO DELIVER LONG-TERM VALUE CREATION FOR SHAREHOLDERS Unique global infrastructure with proven WELL POSITIONED TO Networks underlying CAGR +25% (last 3 years) and €2.4bn contract backlog scalability, flexibility and performance CAPTURE SIGNIFICANT OPPORTUNITIES FROM GLOBAL DEMAND FOR
Slide 8: Industry Revenues Forecast to Double Over Next Years With SES Well Positioned
Industry Revenues Forecast to Double Over Next 10 Years With SES Well Positioned NSR Forecast for Global Satellite Industry Capacity Revenue (1) $bn SES | Networks: differentiated investments Cumulative 41% of revenue ▲ The only proven high throughput, low latency constellation (O3b) 26 revenue (202
Slide 9: Our Key Priorities
Our Key Priorities Video moving images Networks changing lives by Financial discipline and that move the world connecting people value creation Reinforcing premier neighbourhoods Leveraging unique infrastructure, Disciplined investment (IRR >10% post-tax) (focus on reach, content and value) en
Slide 10: Business Overview
BUSINESS OVERVIEW
Slide 11: Increasing Penetration of UHD TV Sets Fueling Expansion of HD and UHD Experiences
Video | strong cash flow generation and profitability Increasing Penetration of UHD TV Sets Fueling Expansion of HD and UHD Experiences Total TV channels distributed by the satellite industry(1) TV home by resolution in Europe and North America(2) Number % 44,271 44,564 44,566 44,351 44,019 43,667 2
Slide 12: Unparalleled Reach, Quality and Reliability Underpinning Long-term Value
Video | strong cash flow generation and profitability Unparalleled Reach, Quality and Reliability Underpinning Long-term Value TV households served by SES TV channels delivered by SES Mns of TV households Number Capacity per TV channel 367 8,302 7,741 325 Strong DTH neighbourhoods ~12 MHz in Asia, L
Slide 13: Premium Direct-To-Home Neighbourhoods
Video | strong cash flow generation and profitability Premium Direct-To-Home Neighbourhoods 8,300+ 367MN 40 €3.5BN 10 YEARS TV channels TV homes DTH platforms contract backlog typical contract length World’s strongest video neighbourhoods Trusted partner to the world’s leading Offering unified linea
Slide 14: Delivering Unparalleled Customer Experience
Networks | profitable long-term growth through unique value proposition Delivering Unparalleled Customer Experience +25% Growth Unique GEO-MEO MEF CE 2.0 €2.4bn 3-5 YEARS in revenue (last 3 years) and terrestrial network telco-grade certification contract backlog typical contract length Unique abili
Slide 15: Investment in Unique, Cloud-enabled Global Infrastructure Will Drive Networks Growth
Networks | profitable long-term growth through unique value proposition Investment in Unique, Cloud-enabled Global Infrastructure Will Drive Networks Growth Procurement of 4 additional O3b mPOWER satellites • Scaling only proven NGSO constellation – adding 90% increased network Unique infrastructu
Slide 16: Global Multi-orbit Network a Key Differentiator For SES
Networks | profitable long-term growth through unique value proposition 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 glob
Slide 17: SES' Commitment to the Disciplined Financial Policy
Delivering value | generating sustained shareholder returns SES’ Commitment to the Disciplined Financial Policy OUR POLICY OUTLOOK Replacement CapEx to sustain profitable portfolio of business Limited annual replacement CapEx of €220mn (2020-2024) DISCIPLINED Disciplined value-accretive growth
Slide 18: Re-profiled CapEx Outlook With €550mn Deferred From 2020 and 2021
Disciplined financial policy | value-accretive investment Re-profiled CapEx Outlook With €550mn Deferred From 2020 and 2021 Capital Expenditure (growth and replacement)(1) CapEx forecast 2020-24 reprofiled with net increase €mn (excluding U.S. C-band) since March’20 of €70mn 970 • Substantially de
Slide 19: Simplify & Amplify: Transforming SES
S&A | optimising EBITDA, increasing efficiency and driving innovation SIMPLIFY AMPLIFY Transforming SES - Strengthening Competitiveness CREATE PURE- Increase visibility, operational focus and strategic flexibility Investigation of potential separation of Video and Networks within SES underway PLAY
Slide 20: Cleared Path to Substantial Value Creation From USD 4 Billion C-Band Proceeds
C-Band | realising substantial incremental value Cleared Path to Substantial Value Creation From USD 4 Billion(1) C-Band Proceeds REGULATORY TIMELINE CLEARING IMPLEMENTATION SES is ahead of its clearing implementation plan, Clear path to 8th December 2020 C-Band auction guaranteeing continuity and q
Slide 21: Strong Visibility and Conviction to Capture Value From U.S. C-Band
C-Band | realising substantial incremental value Strong Visibility and Conviction to Capture Value From U.S. C-Band Expected C-Band clearing net cash inflows/(outflows) Cumulative Total clearing cost of $1.6bn of which over $1.5bn $mn (2020-2024) expected to be reimbursed $977mn(1) $2,991mn(1) 1st
Slide 22: Making a Difference
Delivering value | making a difference for all stakeholders Making a Difference ▲ The aim of our corporate activities is to add value in the short, medium and long-term for stakeholders reflecting the resources we have ▲ We aspire to conduct our business activities in a sustainable, responsible way
Slide 23: Latest Financials & Additional Information
LATEST FINANCIALS & ADDITIONAL INFORMATION
Slide 24: Key Financial Highlights
Key Financial Highlights H1 2020 Video Revenue €559mn -7.5% YOY as reported -8.0% YOY underlying(1) Networks Revenue €387mn +8.7% YOY as reported +7.1% YOY underlying(1) Group Revenue €948mn -1.5% YOY as reported -2.4% YOY underlying(1) Adjusted EBITDA(2) €582mn -2.3% YOY as reported -3.5% YOY at co
Slide 25: Solid H1 2020 Financial Performance In Line With Expectations
Solid H1 2020 Financial Performance In Line With Expectations H1 2019 H1 2020 €mn reported reported H1 2020 underlying operating expenses included a Revenue 961 948 one-off charge related to Luxembourg net wealth tax (€8mn) offsetting 2% (YOY) reduction in ‘recurring’ Operating expenses(1) (365) (
Slide 26: Acceleration in Networks Being Offset By Near-term Impacts on Video
Acceleration in Networks Being Offset By Near-term Impacts on Video Revenue Walk Overall group revenue of €948mn for H1 (-1.5% €mn YOY as reported and -2.4% YOY underlying) +12 +25 961 973 Video (-8.0% YOY) reflected combination of lower (48) (2) 948 distribution from customers ‘right-sizing’ ca
Slide 27: Maintaining SES' Strong Balance Sheet, Liquidity and Debt Maturity Profile
Maintaining SES’ Strong Balance Sheet, Liquidity and Debt Maturity Profile Reported net debt and Adjusted Net Debt to Adjusted EBITDA ratio Reported net debt reduced by 6% YOY €mn and Times 3,616 3,580 3,398 Strong Liquidity of over €1.6bn including: 3,273 3,318 3.5x 3.5x 3.3x 3.3x • €1.2bn full
Slide 28: Updated Financial Outlook reflecting COVID-19 Headwinds in H2 2020
Updated Financial Outlook reflecting COVID-19 Headwinds in H2 2020 H1 business performance resilient in the face of global pandemic. H2 expected to be more challenging given business impact to Mobility and Sports & Events in COVID-19 environment. Outlook for the year adjusted accordingly with strong
Slide 29: 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 30: 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 31: Investor Relations Contacts
Richard Whiteing Anja Siehler Michelle Suc Investor Relations Investor Relations Investor Relations Richard.Whiteing@ses.com Anja.Siehler@ses.com Michelle.Suc@ses.com T +352 710 725 261 T +352 710 725 8279 T +352 710 725 403 M +352 691 898 956 M +352 691 798 069 M +352 621 228 182 Connect with us 31