SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — Non-Deal Roadshow (May 2020)
28 slides from SES SA FDR (Class A)'s roadshow presentation, May 2020
Slide 1: Investor Presentation May 2020
INVESTOR PRESENTATION May 2020 Investor Presentation | May 2020 SES Proprietary and Confidential
Slide 2: Agenda
Agenda Page Our Purpose & Ambitions 3 SES at a Glance 4 Business & Financial Highlights 5 Strategic Priorities 8 SES Video 9 SES Networks 11 Simplify & Amplify 16 U.S. C-Band 17 Key Takeaways 18 Q1 2020 Results 19 Investor Presentation | May 2020 2
Slide 3: We do the extraordinary in space to deliver amazing experiences everywhere on Earth
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 4: Leader in global content connectivity solutions
LEADER IN GLOBAL CONTENT CONNECTIVITY SOLUTIONS TAKE YOUR 99% EUR 1.98BN STORY ANYWHERE of the world’s population covered by SES’ network 2019 group revenue 367MILLION EUR 1.22BN TV homes served 2019 group At SES, we believe everyone should have the freedom to take their story wherever by SES Video
Slide 5: Financial Performance Driven by Strong Focus on Execution
Financial Performance Driven by Strong Focus on Execution EUR million Financial Outlook 2018 Actual (restated) 2018 Actual (reported) Over 20% underlying growth in Networks business (last 2 years) Video Revenue 1,320 - 1,355 1,324 1,306 Strong focus on cost and Networks Revenue 660 - 690 713 696
Slide 6: Q1 2020 Highlights
Q1 2020 Highlights SOLID FIRST QUARTER PERFORMANCE IN LINE WITH EXPECTATIONS Revenue, EBITDA and Net Debt to EBITDA all consistent with or a little ahead of plan Networks now 41% of total revenue with step up in underlying revenue growth to 7.7% (YOY) Video in line with customers ‘right-sizing
Slide 7: Responding to the COVID-19 Global Pandemic
Responding to the COVID-19 Global Pandemic EMPLOYEE SAFETY ▲ Worldwide work from home policy in place since early March 2020, before any government regulation AND BUSINESS ▲ Established and tested contingency plans in place across all technical facilities around the world CONTINUITY ▲ No impact on s
Slide 8: Our Strategic Priorities
Our Strategic Priorities SES Video | Moving images that move the world Reinforcing and driving value through our core video neighbourhoods, unparalleled technical reach and delivery of premium/high-quality content Develop OTT and orchestration capabilities to support our content provider custome
Slide 9: Large, Highly Profitable and Resilient Video Business
Large, Highly Profitable and Resilient Video Business 8,300+ 367 million 40 EUR 3.7 billion 10 YEARS TV channels TV homes DTH platforms contract backlog typical contract length VIDEO DISTRIBUTION (75% of Video 2019 revenue) VIDEO SERVICES ~15% (25% of Video 2019 revenue) Europe (~50%): leading video
Slide 10: Enhancing Customer Experience and Driving Customer Success Everywhere
Enhancing Customer Experience and Driving Customer Success Everywhere DARING TO BRINGING CONTENT DREAM TO LIFE “EBU entrusted MX1 to take “Not only will customers enjoy a care of the global distribution of crystal-clear picture for sports, the three Eurovision 2019 live shows and movies, but also wi
Slide 11: Expanding Networks Business Is The Growth Engine For SES
Expanding Networks Business Is The Growth Engine For SES +21% Growth Unique GEO-MEO MEF CE 2.0 EUR 2.5 billion 3-5 YEARS in revenue (last 2 years) and terrestrial network telco-grade certification contract backlog typical contract length MOBILITY (>25% of Networks 2019 revenue) >25% GOVERNMENT Home
Slide 12: Enhancing Customer Experience and Driving Customer Success Everywhere
Enhancing Customer Experience and Driving Customer Success Everywhere AT HOME AND THE OFFICE EMPOWERING NEXT-GEN CONNECTIVITY IN THE AIR PASSENGER EXPERIENCES “Our agreements with SES secure “MedallionNet has significantly scalable bandwidth necessary for elevated the cruise experience Gogo 2Ku to c
Slide 13: Reducing CapEx Intensity While Differentiated Investments Drive Future Growth
Reducing CapEx Intensity While Differentiated Investments Drive Future Growth Capital Expenditure (growth and replacement)(1) EUR million (excluding any impact from C-Band) 854(2) O3b mPOWER and SES-17 536(2) Average of EUR 470 million (2018-2024) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20
Slide 14: Building the Future with O3b mPOWER
Building the Future with Dramatically scales the industry’s only commercially and operationally proven NGSO Unprecedented flexibility to create differentiated user experiences and commercial models Seamless, intelligent integration with existing terrestrial, MEO and GEO satellite networks Reach and
Slide 15: O3b mPOWER Offering New Opportunities
O3b mPOWER Offering New Opportunities Multi-terabit 5,000+ 400M 100% productive beams go only to customers scalable to 10s of Tbps globally beams per satellite square kilometres covered not empty territory CURRENT MEO NEW OPPORTUNITIES FROM 2021 20 satellites in operation (including spares): Seven s
Slide 16: Simplify & Amplify Now Well Underway
SIMPLIFY AMPLIFY Now Well Underway CREATE PURE- ▲ Investigating potential separation of Video and Networks within SES Increase visibility, operational focus and strategic flexibility PLAY VERTICALS ▲ Dedicated team to execute on U.S. C-band repurposing and realise substantial shareholder value fro
Slide 17: FCC's Landmark C-Band Decision Delivers Opportunity to Create Substantial Value
FCC’s Landmark C-Band Decision Delivers Opportunity to Create Substantial Value Clears spectrum quickly Accelerates GDP Protects current TV and Addresses rural U.S. to enable U.S. 5G growth and 5G radio broadcasts to 120 needs for quality TV and leadership innovation million homes broadband U.S. F
Slide 18: Key Takeaways: Leader in Global Content Connectivity Solutions
LEADER IN GLOBAL CONTENT CONNECTIVITY SOLUTIONS Solid financial performance with EBITDA and leverage in line with expectations for the second consecutive year Networks delivering on the growth potential and focusing on seamless, cloud-scale intelligent connectivity Sharpening focus on cash gen
Slide 19: Q1 2020 Results
SES‘ Q1 2020 Results
Slide 20: Financial Performance in Line with Expectations
Financial Performance in Line with Expectations Q1 2020 Video Revenue EUR 281.9 million -7.8% YOY underlying(1) Networks Revenue EUR 196.6 million +7.7% YOY underlying(1) Group Revenue EUR 478.9 million -1.9% YOY at constant FX EBITDA EUR 284.7 million EBITDA margin of 60.1%(2) Net debt to EBITDA 3.
Slide 21: Expanding Reach While Managing Impact of Changing Consumer Patterns
Expanding Reach While Managing Impact of Changing Consumer Patterns SES Video revenue Q1 2020 revenue in line with expectations EUR million -8.1% (-7.8% underlying) • Lower revenue reflects combination of DTH/cable customers ‘right-sizing’ 306.7 0.8 capacity and SES’ decision to reduce exposure to
Slide 22: Underlying Growth Accelerated With Limited Impact To Date From COVID-19
Underlying Growth Accelerated With Limited Impact To Date From COVID-19 SES Networks revenue Acceleration in underlying revenue growth to 7.7% EUR million +8.4% (+7.7% underlying) • Double-digit growth in Mobility with Aero growth including YOY impacts of 2019 196.6 7.7 market gains while bandwidt
Slide 23: Revenue Benefiting From Additional Growth in Networks With Reduction in Video
Revenue Benefiting From Additional Growth in Networks With Reduction in Video Revenue walk EUR million 7.7 Group revenue of EUR 478.9 million in line with prior period on a reported basis (-1.9% YOY at constant FX) Networks underlying(1) revenue grew by 7.7% at constant FX, offset by lower under
Slide 24: Strong Focus on Discretionary Spending Benefitting EBITDA Development
Strong Focus on Discretionary Spending Benefitting EBITDA Development EBITDA walk EUR million 4.3 EBITDA EBITDA EBITDA EBITDA EBITDA margin margin Margin margin margin 63.1% 60.4% 63.0% 59.5% 60.3% Q1 2020 EBITDA margin of 60.1% excluding a restructuring charge of EUR 3.1 million in Q1 2020 (Q1 20
Slide 25: Net Profit of EUR 50.8 million
Net Profit of EUR 50.8 million Q1 2019 Q1 2019 at Depreciation and Amortisation expenses stable EUR million Q1 2020 reported constant FX (YOY at constant FX) EBITDA 290.1 294.4 284.7 • Impact of entry into service of new assets offset benefit of certain assets reaching the end of their depreciable
Slide 26: Net Debt to EBITDA Lower Than Q1 2019
Net Debt to EBITDA Lower Than Q1 2019 Net debt to EBITDA ratio Having repaid EUR 650 million Euro Bond during Times(1) Q1, group has no financing needs until 2021 3.40 3.50 3.47 EUR 437 million of cash & cash equivalents at end 3.32 3.22 Q1 2020, prior to dividend payment (23 April 2020) totalin
Slide 27: 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 28: Investor Relations Contacts
Richard Whiteing Anja Siehler Jalal Dahmane Michelle Suc Investor Relations Investor Relations Investor Relations Investor Relations [email protected] [email protected] [email protected] [email protected] T +352 710 725 261 T +352 710 725 8279 T +352 710 725 325 T +352 710 725 403 M