SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — Investor Presentation (March 2023)
27 slides from SES SA FDR (Class A)'s investor presentation, March 2023
Slide 1: Investor Presentation March 2023
INVESTOR PRESENTATION | March 2023 INVESTOR PRESENTATION
Slide 2: One of the Leaders in Global Content Connectivity Solutions
One of the Leaders in Global Content Connectivity Solutions WE DO THE EXTRAORDINARY IN SPACE TO DELIVER AMAZING EXPERIENCES EVERYWHERE ON EARTH Empowering billions Doing the extraordinary Creating change Innovation for of stories in space with you real progress SES is more than a ‘satellite operator
Slide 3: Our Equity Story
Our Equity Story Trusted industry player with Differentiated products and Attractive cash flows and profitable growth outlook solutions to make a difference total return fundamentals ~€2B annual revenue with expanding demand Satellite offers communication without limits and Disciplined financial pol
Slide 4: Executing on Our Strategy
Executing on Our Strategy Leverage and scale our unique Products and solutions that Profitable and sustainable satellite-based infrastructure drive customers’ success execution to maximise value Expand in key, fast-growing Networks segments Leader in high performance connectivity Disciplined financi
Slide 5: Significant Year of Execution Delivering on Value Creation Strategy
Significant Year of Execution Delivering on Value Creation Strategy Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 ACCELERATING FUTURE REVENUE AND EBITDA Acquisition of DRS O3b mPOWER SES-17 launched Acquisition of DRS SES-17 enters into GES complete first launch GES agreed ($443M) commercial service SES-1
Slide 6: Diversified Business With Strong Value Proposition and Growth Outlook
Diversified Business With Strong Value Proposition and Growth Outlook NETWORKS (~50% OF REVENUE(1)) VIDEO (~50% OF REVENUE(1)) Rapidly expanding commercial demand for Linear TV a key driver for our customers’ reliable and high-performance connectivity global revenue and long-term success Unique netw
Slide 7: Well Positioned to Serve High Throughput and High Flexibility Demand
Well Positioned to Serve High Throughput and High Flexibility Demand HIGH FLEXIBILITY HIGH THROUGHPUT + HIGH FLEXIBILITY HIGH ~35k ~48k ~2k ~11k ~8k ~2k ~$4B ~$8B Commercial Business Oil & Gas Naval Unmanned Manned Government Aircraft Jets Vessels Vessels ISR Platforms Aero Platforms revenue revenue
Slide 8: Delivering Value From US C-band Accelerated Spectrum Clearing
Delivering Value From US C-band Accelerated Spectrum Clearing 280MHz ~95% C-band spectrum(1) cleared in 2 of estimated clearing costs phases by 2023, supporting 5G ($1.6B) are expected to be deployment in the US reimbursed to SES 5 ~120M new satellites to facilitate US homes can continue to rely cle
Slide 9: Our ESG Agenda – Where Sustainable Space Meets Sustainable Earth
Our ESG Agenda – Where Sustainable Space Meets Sustainable Earth Take bold CLIMATE ACTION Make the space industry more Empower communities to thrive with Lead, collaborate, and innovate for by setting targets and innovating for DIVERSE & INCLUSIVE, services to support CRITICAL SUSTAINABLE SPACE the
Slide 10: On Track to Drive Profitable Growth and Sustained Value Creation
On Track to Drive Profitable Growth and Sustained Value Creation Solid execution delivering on 2022 financial outlook “We are excited about this new journey combining our massive reach and customer base with SES’s innovative leadership and expertise in the satellite industry.” Completed DRS GES
Slide 11: Business & Financial Overview
BUSINESS & FINANCIAL OVERVIEW | March 2023 INVESTOR PRESENTATION 11
Slide 12: Leader in High Performance Connectivity
NETWORKS (~50% of revenue) | Profitable long-term growth with unique value proposition in key segments Leader in High Performance Connectivity Government (~50% of Networks) Fixed Data (~25% of Networks) Mobility (~25% of Networks) Strategic importance of satellite to Governments is Extending mob
Slide 13: Rapidly Growing Demand for Satellite-based Network Connectivity Solutions
NETWORKS (~50% of revenue) | Profitable long-term growth with unique value proposition in key segments Rapidly Growing Demand for Satellite-based Network Connectivity Solutions Global Industry Satellite Capacity Revenue ($B)(1) Expanding mobile coverage (3G/4G/5G) and Wi-Fi hotspots via integratio
Slide 14: Deploying Our Seamless, Integrated Network of the Future
NETWORKS (~50% of revenue) | Profitable long-term growth with unique value proposition in key segments Deploying Our Seamless, Integrated Network of the Future SES-17 (in service since end-Q2 2022) (expected in service from late Q3 2023) Delivering high-speed broadband connectivity over Compelli
Slide 15: Providing a Critical and Strategic Layer in Sovereign Space Networks
NETWORKS (~50% of revenue) | Profitable long-term growth with unique value proposition in key segments Providing a Critical and Strategic Layer in Sovereign Space Networks Strategic importance of satellite-based services to future sovereign communications networks now well established MEO Global
Slide 16: Acquisition of DRS GES Expands Our High-value US Government Business
NETWORKS (~50% of revenue) | Profitable long-term growth with unique value proposition in key segments Acquisition of DRS GES Expands Our High-value US Government Business $450M >20years acquisition completed, having record as best-in-class US obtained regulatory approvals Government solutions provi
Slide 17: Unparalleled Audience Reach and Reliability
VIDEO (~50% of revenue) | Strong customer value creation underpinning long-term cash flow generation Unparalleled Audience Reach and Reliability Europe (~55% of Video) HD+ (~15% of Video) International (~30% of Video) >35 years broadcasting experience and delivering Consumer platform in Germany,
Slide 18: Resilient Long-term Fundamentals for Video Distribution Over Satellite
VIDEO (~50% of revenue) | Strong customer value creation underpinning long-term cash flow generation Resilient Long-term Fundamentals for Video Distribution Over Satellite Global TV channels over satellite (‘000s)(1) SD channels reducing, impacted by ‘right-sizing’ of TV content carried over satel
Slide 19: Video Neighbourhoods With Unparalleled Audience Reach
VIDEO (~50% of revenue) | Strong customer value creation underpinning long-term cash flow generation Video Neighbourhoods With Unparalleled Audience Reach We serve 366M TV homes: Europe North America 176M 53M (2017: 166M) Middle East 13M (2017: 75M) Asia-Pacific >1B people rely on SES for access Afr
Slide 20: Leadership in Linear TV Distribution, Complemented by Value-add Solutions
VIDEO (~50% of revenue) | Strong customer value creation underpinning long-term cash flow generation Leadership in Linear TV Distribution, Complemented by Value-add Solutions Our cloud-based channel playout offers much greater flexibility and scalability a compared with site-based facilities SES 360
Slide 21: Committed to Disciplined Financial Policy
DISCIPLINED FINANCIAL POLICY | focus on profitable and sustainable execution to drive long-term value Committed to Disciplined Financial Policy OUR POLICY OUTLOOK DISCIPLINED Replacement CapEx to sustain profitable portfolio of business €550M(1) of investment in 2023 (primarily growth) VALUE-ACC
Slide 22: 2023 Financial Outlook
DISCIPLINED FINANCIAL POLICY | focus on profitable and sustainable execution to drive long-term value 2023 Financial Outlook Networks (~50%): mid-single digit YOY growth (at constant FX) REVENUE €1,950M - €2,000M Video (~50%): mid-single digit YOY decline (at constant FX) ADJUSTED €1,010M - €1,050M
Slide 23: Solid Balance Sheet Metrics and Significant Financial Flexibility
DISCIPLINED FINANCIAL POLICY | focus on profitable and sustainable execution to drive long-term value Solid Balance Sheet Metrics and Significant Financial Flexibility Pro forma senior debt Maturity Profile (€M) as at 2022(2) 2022 leverage(1) of 3.5x reflects $443M DRS GES acquisition and a year o
Slide 24: Future Satellite Launch Schedule
DISCIPLINED FINANCIAL POLICY | focus on profitable and sustainable execution to drive long-term value Future Satellite Launch Schedule Region Application Launch Manufacturer Launch provider SES-18 & SES-19 North America Video (C-band clearing) Q1 2023 Northrop Grumman SpaceX O3b mPOWER (3-4) Global
Slide 25: 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 26: 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 27: Investor Relations Contact
Richard Whiteing, Joana Gomes, Michelle Suc Investor Relations [email protected] +352 710 725 261 | March 2023