SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — Shareholder Meeting (April 2024)
18 slides from SES SA FDR (Class A)'s shareholder meeting presentation, Apr 4, 2024
Slide 1: Annual General Meeting 2024
ANNUAL GENERAL MEETING 2024 ASSEMBLEE GENERALE DES ACTIONNAIRES 2024 SES Proprietary and Confidential | 04 April 2024 SES ANNUAL GENERAL MEETING 2024 1
Slide 2: Annual General Meeting – 4 April 2024
Annual General Meeting – 4 April 2024 Frank ESSER Adel AL-SALEH (Chairman) (CEO) Sandeep JALAN Thai RUBIN (CFO) (CLO) SES Proprietary and Confidential || 04 04 April April 2024 2024 SES ANNUAL GENERAL MEETING 2024 2
Slide 3: Presentation of the main developments during 2023 and Vision
4. Presentation of the main developments during 2023 and Vision Présentation des principaux développements pendant l’année 2023 et perspectives SES Proprietary and Confidential | 04 April 2024 SES ANNUAL GENERAL MEETING 2024 3
Slide 4: SES brings the value of multiple orbits
SES brings the value of multiple orbits Global Coverage Redundancy and Reliability Fit for diverse applications Optimized Performance Technological Innovation SES Proprietary and Confidential | 04 April 2024 SES ANNUAL GENERAL MEETING 2024 84
Slide 5: Bringing Customers Easy Access to All Orbits
Bringing Customers Easy Access to All Orbits SES Cruise mPOWERED + Starlink SES | Planet Labs | NASA GEO Unbroken connectivity 10-year record serving major cruise lines Proof of near-Earth comms concept Reliable, managed, end-to-end service Satellite-to-satellite data relay service MEO High performa
Slide 6: Strengthening & Building New Partnerships With Major Clients
Strengthening & Building New Partnerships With Major Clients NETWORKS VIDEO SES Proprietary and Confidential | 04 April 2024 SES ANNUAL GENERAL MEETING 2024 6
Slide 7: 2024 Technology Advancements On Track
2024 Technology Advancements On Track O3b mPOWER (satellites 3&4) ASTRA 1P O3b mPOWER April 2023 O3b mPOWER (19.2°E) (satellites 7&8) start of service Summer 2024 Late 2024 O3b mPOWER April 2024 (satellites 5&6) November 2023 O3b mPOWER (satellites 1&2) Delivering high-performance MEO connectivity s
Slide 8: Highlights 2023
Highlights 2023 DELIVERED AGAINST 2023 FINANCIAL OBJECTIVES GROWING NETWORKS BUSINESS NOW OVER 50% OF TOTAL REVENUE O3b mPOWER & ASTRA 1P ON TRACK, ENHANCING MULTI-ORBIT OFFERING STRONG FREE CASH FLOW PERFORMANCE, SOLIDIFYING INVESTMENT GRADE BALANCE SHEET FINANCIAL FLEXIBILITY TO CREATE VALUE & DEL
Slide 9: New Era of Satellite Innovation, Growth, and Competition
New Era of Satellite Innovation, Growth, and Competition GROWING DEMAND FOR HIGH QUALITY CONNECTIVITY CONSUMER Satellite-based networks are VIEWING HABITS important in supporting ARE CHANGING expanding customer demand SATELLITE IS for reliable, secure, and high- performance connectivity STRATEGICALL
Slide 10: SES is Well Positioned to Create Value Through Profitable Growth
SES is Well Positioned to Create Value Through Profitable Growth MULTI- Unique MEO-GEO network, complemented by LEO partnership ORBIT €4.3B Partner of choice for delivering value to major customers around the world BACKLOG €2B Networks >50% of revenue & growing; Video profitably serves >1B TV viewer
Slide 11: SES's Vision For the Future
SES’s Vision For the Future VISION Strengthen our leadership position in a valuable, fast-growing SATCOM industry Delivering value for our customers, our employees, and our shareholders CUSTOMER CENTRICITY to deliver value for our clients in our chosen markets INNOVATION to improve efficiency, produ
Slide 12: Presentation of the 2023 financial results and 2024 Outlook
5. Presentation of the 2023 financial results and 2024 Outlook Présentation des résultats financiers pour l’exercice 2023 et perspectives SES Proprietary and Confidential | 04 April 2024 SES ANNUAL GENERAL MEETING 2024 12
Slide 13: Strong 2023 Performance
Strong 2023 Performance €2,030M Networks & Video at top end of outlook REVENUE (+1% YOY) Networks now at 52% of total revenue €1,025M In line with the 2023 outlook ADJUSTED EBITDA(1) (50% margin) >€1,040M before unplanned Q4 expense Cash outflow deferred to 2024 CAPEX(2) €493M Continued investment i
Slide 14: 2024 Financial Outlook
2024 Financial Outlook OUTLOOK Continued growth in Networks (>50% of revenue) mostly offsetting lower REVENUE €1,940-2,000M Video (<50% of revenue) Includes costs to start O3b mPOWER services with initial 6 satellites from ADJUSTED EBITDA €950-1,000M early Q2 2024 ahead of revenue ramping up during
Slide 15: Commitment to Disciplined Financial Policy
Commitment to Disciplined Financial Policy STRONG BALANCE SHEET RETURNS TO SHAREHOLDERS INVEST FOR THE FUTURE Committed to investment grade metrics Annual dividend of €0.50 per A-share Sustain and/or profitably grow the business Target net leverage(1) of below 3x Stable to progressive dividend polic
Slide 16: Strengthening Balance Sheet
Strengthening Balance Sheet Gross Debt incl 50% of Hybrid (€B) Commitment to investment grade €4,6B €4,5B €1B of planned debt repayments (€550M already €3,5B completed) Reducing leverage following CapEx peak and U.S. C-band clearing Reducing cash interest cost (average interest rate about 3%
Slide 17: €1.2B of Shareholder Returns Since 2021
€1.2B of Shareholder Returns Since 2021 Cash returns to shareholders (€M) Stable to progressive annual dividend, DPS step €455m up from €0.40 in 2021 to €0.50 starting 2022 €125M Additional dividend of €0.25 per A-share in Oct €300m 2024 resulting from semi-annual distribution €245m €110M Incr
Slide 18: Investing For The Future
Investing For The Future SATCOM(1) 2023 (YOY) KEY STRATEGIC DRIVERS CAGR (2022-32) NETWORKS SES-17 & O3b mPOWER with $1B combined backlog HIGH 52% OF +6% DRS GES (expanded capabilities, FCF accretive day-1) single- to low double- digit growth REVENUE (2032e TAM: $17B) VIDEO ASTRA 1P (2024) replaces