SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — Investor Day (May 2009)
38 slides from SES SA FDR (Class A)'s investor day presentation, May 19, 2009
Slide 1: Investor Day 2009 - SES Americom-New Skies
Investor Day 2009 19th May, London SES AMERICOM-NEW SKIES Rob Bednarek SES proprietary information - Not to be copied without permission
Slide 2: Disclaimer / Safe Harbor Statement
Disclaimer / “Safe Harbor” Statement S This presentation does not, in any jurisdiction, and in particular not 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 securiti
Slide 3: Agenda
Agenda Part 1: SES Americom-New Skies Today Part 2: Key Demand and Growth Drivers Part 3: Regional Market Outlook Part 4: Future Investment and Fleet Plan 3 SES proprietary information
Slide 4: Stronger Together: Combined Organization
Stronger Together • Leading U.S. Cable Neighborhood • Global Connectivity • DTH Outsourcing Expertise • Regional Distribution • Strong Enterprise Community • Emerging Markets Presence Combined Organization Strengthened Capability • Leverage SES’ global reach to support our customers’ growing and div
Slide 5: Facts and Figures
SES Americom-New Skies Today Facts and Figures AMC NSS Combined Orbital Positions 14 8 22 Satellites1 16 8 24 Avail. Transponders2 447 318 765 2008 Revenues (MUSD) 540 390 911 Backlog3,5 (bnUSD) 2.2 0.8 3.0 2008 EBITDA Margin Infrastructure: 74.3% 80.4% Services4: 7.3% 16.3% Utilization Rate5 77.8%
Slide 6: Today's Fleet
SES Americom-New Skies Today Today’s Fleet C-Band 24 SATELLITES 382 C-Band and 383 Ku/Ka-Band Ku-Band 765 Total Marketable Transponders Hybrid Ku/C Hybrid Ku/Ka North American North Atlantic North American Center American Ocean Indian Ocean Pacific Ocean Western Arc Arc Eastern Arc Region NSS-806 Re
Slide 7: 2008 Revenue Segmentation
SES Americom-New Skies Today 2008 Revenue Segmentation Geographic Geographic Distribution Distribution By Customer Billing Address: Estimate by Downlink Region: Asia Latin Asia Pacific America Pacific Latin 9% IMEA 4% 3% America 8% North 15% America North 56% America Europe 71% 7% IMEA 22% Europe Ma
Slide 8: By Market Segment and Application
SES Americom-New Skies Today By Market Segment and Application Backhaul C-Band Location Media Enterprise Government Cable DTH Maritime GSM-IP AMC-8 139°W X X Ku-Band AMC-7 137°W X X AMC-10 135°W X X Hybrid Ku/C AMC-11 131°W X X CIEL-2 129°W X Hybrid Ku/Ka AMC-21 125°W X X X X AMC-18 105°W X X AMC-15
Slide 9: Lockheed Martin A2100 Health Status
SES Americom-New Skies Today Lockheed Martin A2100 Health Status S AMC-NSS fleet has ten Lockheed Martin A2100 satellites which have experienced varying degrees of power loss in solar array circuits S Reduction in available commercial capacity in three of these ten satellites • Some AMC-4 customers
Slide 10: Demand Drivers - SES AMC-NSS Segment
Key Demand And Growth Drivers Demand Drivers - SES AMC-NSS Segment • HDTV channel growth and future • MPEG-4 supporting HD growth Broadcast and advanced HD format growth • Growth across DTH, cable, DTT • Increased Pay TV operator and IPTV platforms Media competition; Fueling platform and • Emerging
Slide 11: Pay TV Operators - Continued Robust Growth
Pay TV Operators – Continued Robust Growth Satellite Continues to be the Most Efficient Distribution Method CABLE DTH IPTV and Mobility S Well established North and South S U.S. capacity expansion driven by S Driven by Triple Play Telco America cable neighborhoods local and national HD S Turning to
Slide 12: High Definition Channels
Key Demand And Growth Drivers U.S. HDTV Market Trends Projected Projected U.S. U.S. National National Number Number of of HDTV HDTV National National HDTV HDTV Channels Channels Channels Channels by by Operator Operator 1,500 120 Ku-Band DTH - 17% CAGR Announced Channels 100 High Definition Channels
Slide 13: U.S. DTH Evolutionary Path
Key Demand And Growth Drivers U.S. DTH Evolutionary Path Legacy Legacy Current Current Expansion Expansion Ku Ku FSS FSS Ku Ku FSS/BSS, FSS/BSS, Ka Ka FSS FSS + Ku/Ka Ku/Ka BSS BSS Single Band, Satellite and Multi- Band, Satellite and Single Band and Antenna; Multi- Antenna Antenna Satellite MPEG 2
Slide 14: Emerging Markets Drive DTH Subscriber Growth
Key Demand And Growth Drivers Emerging Markets Drive DTH Subscriber Growth 140 China (Incl. Hong Kong & Taiwan) Middle East & Africa 120 Oceania & Pacific Russia & Central Asia Pay DTH Subscribers (Millions) Latin America CAGR's 100 Asia (Excl China) 2003-2008 2008-2017 North America China (Incl. HK
Slide 15: Robust Growth in Emerging Market DTH Platforms
Key Demand And Growth Drivers Robust Growth in Emerging Market DTH Platforms DTH DTH is is an an Important Important Driver Driver of of Transponder Transponder Demand Demand Growth Growth Asia-Pacific* 2008-16 Net Transponder Growth 121 CAGR (%) 6% Number of Platforms in 2014 37 Reliance, Astro, Fo
Slide 16: SES is Growing its DTH Customer Base in Asia
Key Demand And Growth Drivers SES is Growing its DTH Customer Base in Asia NSS-6 @ 95°E NSS-11 @ 108°E Hong Kong, TVB India, Dish 42 Channels 200 Channels Philippines, GSAT Thailand, various and Cignal 35 Channels 54 Channels Korea Korea 15 Channels 9 Channels A-SkyNet 20 Channels 16 Estimated subsc
Slide 17: Demand Drivers - SES AMC-NSS Segment
Key Demand And Growth Drivers Demand Drivers - SES AMC-NSS Segment • Increased Pay TV operator • MPEG-4 supporting HD growth Broadcast and competition; Fueling platform and • Growth across DTH, cable, DTT Media channel growth and IPTV platforms • Improving regulatory environment • Emerging Mobile TV
Slide 18: Enterprise Sector Overview
Key Demand And Growth Drivers Enterprise Sector Overview Corporate Technology Broadband Networking Advancements Mobility S Continued development of S Consumer and SME VSAT volumes S Aeronautical segment recovering resource-rich regions in North America and Europe: after Connections-by-Boeing exit; S
Slide 19: Enterprise: VSAT Growth is Sustained
Key Demand And Growth Drivers Enterprise: VSAT Growth is Sustained Global Market Trends Number Number of of VSAT VSAT terminals terminals sold, sold, annually annually per per segment segment (‘000s) (‘000s) S ~1.2 Million VSAT terminals deployed globally S WildBlue and HNS driving North American co
Slide 20: Growth in Broadband Access Bandwidth
Key Demand And Growth Drivers Growth in Broadband Access Bandwidth Total Total Broadband Broadband Satellite Satellite Key Drivers of Capacity Capacity Capacity Required Required (Gbps) (Gbps) S North American broadband driven by consumer and SME Middle East and Africa 200.0 • Ka-Band capturing grow
Slide 21: Maritime Broadband Mobility Growing Strongly
Key Demand And Growth Drivers Maritime Broadband Mobility Growing Strongly Maritime Mobility: Global Trends S Inmarsat is being challenged in maritime and offshore segments due to increased customer bandwidth requirements S Inmarsat BGAN upper limit is 432 kbps S FSS operators filling gap by providi
Slide 22: Satellite Backhaul Applications
Key Demand And Growth Drivers Satellite Backhaul Applications % of Mobile Cellular Subscriptions 70% Mobile Cellular Subscriptions 64% 120 111 60% 56% 100 2002 50% 2007 44% 79 Per 100 Inhabitants 80 72 40% 36% 2002 2007 60 51 50 49 30% 38 40 20% 28 30 19 20 12 10% 4 0% 0 Developed Countries Developi
Slide 23: Digital Opportunity Index
Key Demand And Growth Drivers Digital Opportunity Index The ITU’s DOI measures: (1) physical ICT infrastructure, (2) the general population’s access to it and (3) its usage – it is the most comprehensive telecom development indicator yet Source: World Information Society Report. 2007 Lighter shades
Slide 24: Demand Drivers - SES AMC-NSS Segment
Key Demand And Growth Drivers Demand Drivers - SES AMC-NSS Segment • Increased Pay TV operator • MPEG-4 supporting HD growth Broadcast and competition; Fueling platform and • Growth across DTH, cable, DTT Media channel growth and IPTV platforms • Improving regulatory environment • Emerging Mobile TV
Slide 25: Government Sector Overview
Key Demand And Growth Drivers Government Sector Overview Overall Application Commercial Satellite Demand Developments Partnership S U.S. Government is the largest S UAVs and increased mobility (COTM S Continued heavy reliance on customer (>85% of demand) and Network Centric Operations) commercial sa
Slide 26: U.S. Government Overview
Key Demand And Growth Drivers U.S. Government Overview U.S. Government Trends USG USG Demand Demand Expected Expected Outpace Outpace Supply Supply S USG generated demand has been a critical FSS demand driver since 2001 S Post-9/11 demand has surged driven by: DISA DISA Chart Chart (2008) (2008) • C
Slide 27: U.S. Government Application Examples
Key Demand And Growth Drivers U.S. Government Application Examples U.S. Navy Commercial Broadband Satellite Program (CBSP) S CBSP is a U.S. Navy fleet-wide overhaul of the commercial satellite infrastructure Custom Network Solution S Conversion of entire fleet to support broadband operations in C, K
Slide 28: Business Overview
Business Overview Three Lines of Business Custom Network Strategic Satellite Transponder Solutions Solutions Solutions • Design, build and operate • SES commercial satellites • Capacity from across the satellite networks for the to “Host” government SES fleet U.S. Government payloads Why “Solutions”
Slide 29: Mobility is Key Element of Many Applications
Mobility is Key Element of Many Applications SES Mobility Support S Mobility application support part of core Government satellite technical design “COTM” • High bandwidth military S Facilitation of regulatory environment communications link to UAV, (landing rights, equipment certification, ship and
Slide 30: Regional Market Outlook: North America
Regional Market Outlook North America S Projected Market Growth * Key Applications and Market Drivers • 1.7% (2009-2017 CAGR) S Increased Pay TV platform operator competition S Satellite Coverage and available HD content fueling growth • 16 satellites providing C, Ku- and Ka-Band • HD local-into-loc
Slide 31: Regional Market Outlook: The Middle East
Regional Market Outlook The Middle East S Projected Market Growth* Key Applications and Market Drivers • 3.2% (2009-2017 CAGR) S FTA DTH penetration strong and growing S Channel growth strong but some risk of platform Media S Satellite Coverage consolidation likely • NSS-6, NSS-7, NSS-703, NSS-10, N
Slide 32: Regional Market Outlook: Africa
Regional Market Outlook Africa S Projected Market Growth * Key Applications and Market Drivers • 6.1% (2009-2017 CAGR) S Free –To-Air channel growth is moderate; switch to digital Media S Satellite Coverage S Increase demand for local content • NSS-6, NSS-7, NSS-703, NSS-10, Astra-2B Beam S Improved
Slide 33: Regional Market Outlook: Indian Subcontinent
Regional Market Outlook Indian Subcontinent S Projected Market Growth * Applications / Drivers • 3.1% (2009-2017 CAGR) S India DTH boom: Projections of 20+M subscribers S Satellite Coverage by 2013 Media S Nascent but high potential for DTH services in • NSS-6 and NSS-11 Pakistan S Key Successes • S
Slide 34: Regional Market Outlook: Asia-Pacific
Regional Market Outlook Asia-Pacific Applications / Drivers S Projected Market Growth * S New regional DTH initiatives in Indonesia, Thailand, • 3.3% (2009-2017 CAGR) Philippines, Indo-China Media S China DTH delayed due to technical/launch delays S Channel growth is strong; HD in Australia, New S S
Slide 35: Regional Market Outlook: Latin America
Regional Market Outlook Latin America S Projected Market Growth * Applications / Drivers • 3.9% (2009-2017 CAGR) S Pay TV market showing strong growth (both cable and DTH) S Key Satellites S Deregulation of DTH and authorization of voice Media • NSS-7, NSS-10, NSS-806 and AMC-21 carriers to enter th
Slide 36: Investing In Growth and Replacements
Investing In Growth and Replacements 2009 Ciel-2 NSS-9 NSS-12 NSS-5 Jan’09 In-Service Launched 2009 Late 2009 Late 2009 Repositioned 129ºW BSS 183ºE 57ºE 340ºE 2010 and 2011 Astra 3B AMC-4R NSS-14 AMC-1R QuetzSat-1 Sirius-5 Middle East Beam Early 2010 Late 2010 Late 2011 African Beam Late 2011 Early
Slide 37: Tomorrow's Fleet - End of 2011
Tomorrow’s Fleet – End of 2011 25 SATELLITES 465 C-Band and 530 Ku/Ka-Band Available for ~1,000 Total Marketable Transponders AMC-1 AMC-4 NSS-5 AMC-2 redeployment Existing New Redeployed QuetzSat-1 NSS-806 Astra-2B AMC-1R AMC-4R AMC-16 AMC-10 AMC-11 AMC-21 AMC-18 AMC-15 NSS-10 NSS-14 NSS-12 NSS-11 A
Slide 38: Conclusion
Conclusion S Solid fundamentals driving increased utilization of existing fleet: • Worldwide growth in HDTV and DTH • Enterprise applications for broadband and backhaul connectivity, particularly in Emerging Markets • Strong U.S. Government demand commercial satellite capacity S Strong pipeline of n