SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — Non-Deal Roadshow (March 2021)
30 slides from SES SA FDR (Class A)'s roadshow presentation, March 2021
Slide 1: Investor Presentation March 2021
INVESTOR PRESENTATION March 2021 Investor Presentation | March 2021 SES Proprietary and Confidential
Slide 2: SES at a Glance
SES AT A GLANCE
Slide 3: Leader in Global Content Connectivity Solutions
LEADER IN GLOBAL CONTENT CONNECTIVITY SOLUTIONS WE DO THE EXTRAORDINARY IN SPACE 99% €1.88B TO DELIVER AMAZING EXPERIENCES of the Earth is covered by the SES network 2020 group Revenue EVERYWHERE ON EARTH +27% growth €1.15B in SES Networks underlying 2020 group revenue (since 2017) Adjusted EBITDA O
Slide 4: SES Is Uniquely Placed Within an Industry Set for Rapid Expansion
SES IS UNIQUELY PLACED WITHIN AN INDUSTRY SET FOR RAPID EXPANSION Networks propelling substantial industry revenue expansion … SES well placed with our unique value propositions Global satellite industry capacity revenue 2020-2029 ($B)(1) SES | Networks (41% of 2020 revenue) $26B ▲ Unique, proven, a
Slide 5: Long-Term Value Proposition Evidenced by Strong Year of Execution
LONG-TERM VALUE PROPOSITION EVIDENCED BY STRONG YEAR OF EXECUTION 2020 FULL YEAR HIGHLIGHTS Achieved pre-COVID Adjusted EBITDA outlook and upper end of mid-year outlook STRONG EXECUTION Recurring OpEx lower YOY. Ongoing focus on operational excellence with S&A savings of €50M from 2022 Leverage at a
Slide 6: Clear Path to Sustained Growth
CLEAR PATH TO SUSTAINED GROWTH 2020(1) 2021(1) 2022 2023 2024 2025 Video €1,093M €1,000-1,030M Flattening the curve Networks €732M €750-780M Acceleration of growth from 2022, propelled by SES-17 and O3b mPOWER Group revenue €1,827M €1,760-1820M Growth from 2023 Adjusted EBITDA €1,127M €1,060-1,100M
Slide 7: Well Positioned to Deliver Long-Term Value-Creation
WELL POSITIONED TO DELIVER LONG-TERM VALUE-CREATION FOR OUR SHAREHOLDERS WELL POSITIONED TO CAPTURE Unique Networks infrastructure driving profitable future growth (with +27% in the last 3 years) SIGNIFICANT OPPORTUNITY FROM GLOBAL DEMAND FOR CONTENT CONNECTIVITY Prime Video neighbourhoods with long
Slide 8: Business & Financial Overview
BUSINESS & FINANCIAL OVERVIEW
Slide 9: Driving Profitable Long-Term Growth and Supporting Sustained Shareholder Returns
Clear path to growth | delivering sustained revenue, EBITDA, and FCF growth from 2023 FOCUS ON EXECUTION AND OPERATIONAL EXCELLENCE TO DRIVE GROWTH Flattening the curve in Video Accelerating our growth in Networks, Maximising profitability and cash flow leveraging neighborhoods and cloud propelled b
Slide 10: Recent Wins Demonstrate Strength of Our Unique Value Proposition
Clear path to growth | demonstrating commercial momentum across Video and Networks markets RECENT WINS DEMONSTRATE STRENGTH OF OUR UNIQUE VALUE PROPOSITION VIDEO NETWORKS Oct ‘20 Feb ‘21 Strengthened partnership with Canal+ High throughput loopback services Substantial long-term, multi-capacity ag
Slide 11: Prime Direct-to-Home Neighbourhoods
Video | strong cash flow generation and profitability PRIME DIRECT-TO-HOME NEIGHBOURHOODS >8,250 >360M ~40 €3.4B 5-10 YEARS Total 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
Slide 12: Resilient Long-Term Fundamentals in Video
Video | strong cash flow generation and profitability RESILIENT LONG-TERM FUNDAMENTALS IN VIDEO HD expansion and UHD adoption driving future TV channel development HD and UHD is now the standard for TV viewing experiences Global TV channels over satellite(1) 45,000 • Global TV homes with a HD and/
Slide 13: Leading in Household Reach, Quality and Reliability
Video | strong cash flow generation and profitability LEADING IN HOUSEHOLD REACH, QUALITY AND RELIABILITY Unparalleled audience reach across our neighbourhoods Market-leader in premium content Millions of TV households served by SES Number of TV channels carried over the SES network Capacity per TV
Slide 14: Exponentially Growing Demand for Network Connectivity Solutions
Networks | profitable long-term growth through unique value proposition EXPONENTIALLY GROWING DEMAND FOR NETWORK CONNECTIVITY SOLUTIONS Substantial and growing demand to drive 3-4x growth in Networks Substantial opportunity from fulfilling global ambition for universal Global Networks industry sat
Slide 15: Cloud Adoption to Drive Substantial Data Growth
Networks | profitable long-term growth through unique value proposition CLOUD ADOPTION TO DRIVE SUBSTANTIAL DATA GROWTH Cloud is a key enabler to customer success and networks expansion Cloud applications allow businesses to improve operational efficiently; Cloud data traffic over satellite (Thous
Slide 16: Delivering Unparalleled Customer Experience
Networks | profitable long-term growth through unique value proposition DELIVERING UNPARALLELED CUSTOMER EXPERIENCE +27% Growth Unique GEO-MEO €1.9B €2.2B 3-5 YEARS in revenue (last 3 years) and terrestrial network growth investment contract backlog typical contract length Unique ability to deliver
Slide 17: Creating a Seamless and Intelligent Multi-Orbit Network of the Future
Networks | profitable long-term growth through unique value proposition CREATING A SEAMLESS AND INTELLIGENT MULTI-ORBIT NETWORK OF THE FUTURE SES-17 and O3b mPOWER (launching in Q3 2021) to anchor our seamless and intelligent multi-orbit Network of the Future (based on proven capability) $740M gross
Slide 18: 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 19: Commitment to the Disciplined Financial Policy
Disciplined financial policy | profitable investment, strong balance sheet, and sustained shareholder returns COMMITMENT TO THE DISCIPLINED FINANCIAL POLICY OUR POLICY OUTLOOK Replacement CapEx to sustain profitable portfolio of business Limited annual replacement CapEx €165M (2021-2025) DISCIPL
Slide 20: Strong Balance Sheet with Leverage at Lowest Level for 5 Years
Disciplined financial policy | strong balance sheet and liquidity profile STRONG BALANCE SHEET WITH LEVERAGE AT LOWEST LEVEL FOR 5 YEARS Leverage and Net Debt at lowest level since 2016 No significant senior maturities before Q2 2023 Adjusted Net Debt (€M)(1) and Adjusted Net Debt to Adjusted EBITDA
Slide 21: CapEx Reduced by €390M from Previous Guidance, Strong FCF Beyond 2022
Disciplined financial policy | value-accretive investment CAPEX REDUCED BY €390M FROM PREVIOUS GUIDANCE, STRONG FCF BEYOND 2022 DRIVEN BY EXPANDING EBITDA AND LOWER NORMALISED CAPEX OF €375M Growth investment peaks in 2022 followed by meaningfully lower CapEx profile, combined with expanding revenue
Slide 22: Clear Visibility of Substantial Value-Creation from US C-Band
C-band | realising substantial incremental value CLEAR VISIBILITY OF SUBSTANTIAL VALUE-CREATION FROM US C-BAND Expected C-band clearing net cash inflows / (outflows) On track to meet end-2021 and end-2023 clearing deadlines and realise $M (pre-tax), including accelerated relocation payments $4B (p
Slide 23: We Are Here to Make a Difference
Environmental, Social, and Governance | contributing to making the world a better place WE ARE HERE TO MAKE A DIFFERENCE ▲ Our business activities have low impact on the environment Satellites create no carbon emissions during their operating life ▲ We apply a responsible fleet management approach
Slide 24: Latest Financials & Additional Information
LATEST FINANCIALS & ADDITIONAL INFORMATION
Slide 25: Resilient Financial Performance in COVID Environment
RESILIENT FINANCIAL PERFORMANCE IN COVID ENVIRONMENT 2020 Video Revenue €1,108M -8.0% YOY underlying(1) Networks Revenue €767M +5.3% YOY underlying(1) Group Revenue €1,876M -3.0% YOY underlying(1) Adjusted EBITDA(2) €1,152M -5.9% YOY at constant FX Free Cash Flow(3) €665M +0.9% YOY Adj. Net Debt to
Slide 26: Resilient Adjusted EBITDA Performance in COVID Environment
RESILIENT ADJUSTED EBITDA PERFORMANCE IN COVID ENVIRONMENT EBITDA margin reflects strong COVID cost mitigation to protect bottom line Solid EBITDA above low end of pre-COVID outlook, Adjusted EBITDA Walk (in €M) and at upper end of mid-year outlook EBITDA margin reflects strong COVID mitigations
Slide 27: 2021 Financial Outlook
2021 FINANCIAL OUTLOOK Financial outlook assumes €/$ FX rate of €1 = $1.20, nominal launch schedule and satellite health status Between €1,760M and €1,820M, including: Revenue(1) ▲ Video between €1,000M and €1,030M ▲ Networks between €750M and €780M Between €1,060M and €1,100M Adjusted EBITDA(1) Exc
Slide 28: 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 29: 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 30: Investor Relations Contacts
Richard Whiteing Michelle Suc Investor Relations Investor Relations [email protected] [email protected] T +352 710 725 261 T +352 710 725 403 M +352 691 898 956 M +352 621 228 182 Connect with us 30