SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — Non-Deal Roadshow (May 2022)
46 slides from SES SA FDR (Class A)'s roadshow presentation, May 2022
Slide 1: Investor Presentation May 2022
INVESTOR PRESENTATION May 2022 Investor Presentation | May 2022 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 EMPOWERING BILLIONS OF STORIES DOING THE EXTRAORDINARY IN SPACE SES is more than a ‘satellite operator’. We are a leader in global content connectivity solutions Our unique and seamlessly integrated multi-orbit network covers 99% of the world’s populat
Slide 4: We Are Well Placed to Create Value and Make a Difference
WE ARE WELL PLACED TO CREATE VALUE AND MAKE A DIFFERENCE 1. 2. 3. 4. BOLD COMPELLING CLEAR STRONG VALUE PURPOSE CAPABILITIES PRIORITIES CREATION We do the EXTRAORDINARY in space to We benefit from two market-leading We aim to deliver a profitable and growing We aim to deliver compelling value for al
Slide 5: Our Equity Story
OUR EQUITY STORY 1. 2. 3. 4. 5. INDUSTRY STRONG GROWTH PROFITABLE MAKING A ATTRACTIVE TOTAL LEADER OUTLOOK EXECUTION DIFFERENCE SHAREHOLDER RETURN • Over 35 years of success serving • Rapidly growing demand for content • High EBITDA margins and focus • We enable people to access media • Disciplined
Slide 6: 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 2021-2030 ($B)(1) $30B SES | Networks (41% of 2021 revenue) ▲ Unique, proven, a
Slide 7: Strong Execution Underpins Solid Start to 2022
STRONG EXECUTION UNDERPINS SOLID START TO 2022 SOLID OPERATIONAL AND FINANCIAL PERFORMANCE Q1 2022 REVENUE ADJUSTED €0.50 DIVIDEND PER (€448M) & EBITDA(1) NET PROFIT A-SHARE (+25% YOY) (€274M) UNDERPIN +17% YOY PAID IN APRIL 2022 FY 2022 OUTLOOK DELIVERING ON KEY STRATEGIC VALUE CREATION DRIVERS SES
Slide 8: Global Multi-Orbit Network a Key Differentiator for SES
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 global services 3 satellites (99% coverage) 6 satellites (96% coverage) Thou
Slide 9: SES Is Uniquely Positioned to Serve High Throughput and High Flexibility Needs
SES IS UNIQUELY POSITIONED TO SERVE HIGH THROUGHPUT AND HIGH FLEXIBILITY NEEDS & GEO-HTS = High Flexibility & GEO HTS = High Throughput + High Flexibility HIGH ~10,000 ~110,000 ~2,400 ~320 ~11,000 ~3,000 ~$4B Passenger Vessels Merchant Vessels Oil & Gas Support Vessels Ocean Cruise Vessels Naval Ves
Slide 10: Growing Commercial Momentum for Our Network of the Future
GROWING COMMERCIAL MOMENTUM FOR OUR NETWORK OF THE FUTURE SES-17 & O3b mPOWER Gross Contract Backlog 5 of the world’s top 6 cruise lines, including: Major MNO, Cloud, and Service Partners, including: $910M (Q1 2022)(1) $560M Landmark Joint Venture partnership in India: (Q4 2020) / 1) Gross backlog:
Slide 11: Delivering Value-Creation from US C-Band Clearing
DELIVERING VALUE-CREATION FROM US C-BAND CLEARING 280MHz ~95% C-band spectrum(1) cleared in Of estimated clearing costs two phases by 2023, supporting ($1.6B) are expected to be 5G deployment in the US reimbursed to SES 5 ~120M US homes can continue to rely New satellites to be launched on C-band fo
Slide 12: Executing on Key Strategic Value Creation Drivers
EXECUTING ON KEY STRATEGIC VALUE CREATION DRIVERS Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Accelerating Revenue and EBITDA growth DRS GES acquisition (1-6) in service SES-17 expected completion(1) beginning 2023 on station SES-17 (1-6) launches (7-9) launch launched Agreement to acquire SES-17 DRS GE
Slide 13: Driving Sustained Profitable Growth and Value Creation
DRIVING SUSTAINED PROFITABLE GROWTH AND VALUE CREATION 2022(1) FROM 2023(2) Mid-single Flattening the curve to low-single digit average decline Video digit decrease Low- to mid-single Networks Accelerating to high-single/low-double digit average growth digit growth Group revenue €1,750-1,810M Low- t
Slide 14: ESG - Our Horizon Strategy
ESG - OUR HORIZON STRATEGY SUSTAINABLE SPACE MEETS SUSTAINABLE EARTH SUSTAINABLE SPACE CLIMATE ACTION DIVERSITY & INCLUSION CRITICAL HUMAN NEEDS Lead, collaborate, and innovate Take bold climate action by setting Make the space industry more diverse Empower communities to thrive with for sustainable
Slide 15: Business Overview
BUSINESS OVERVIEW
Slide 16: Delivering Unparalleled Connectivity Experiences
Networks | profitable long-term growth through unique value proposition in key segments DELIVERING UNPARALLELED CONNECTIVITY EXPERIENCES +27% Growth Unique GEO-MEO €1.6B of growth €2.1B 3-5 YEARS in revenue (2017-2021) and terrestrial network investment (2022-2024) 2021 contract backlog typical cont
Slide 17: Exponentially Growing Demand for Network Connectivity Solutions
Networks | profitable long-term growth through unique value proposition in key segments EXPONENTIALLY GROWING DEMAND FOR NETWORK CONNECTIVITY SOLUTIONS Substantial and expanding demand to drive double digit Networks growth Substantial opportunity from fulfilling global ambition for universal Globa
Slide 18: Serving High Throughput and High Flexibility Government Requirements
Networks | profitable long-term growth through unique value proposition in key segments SERVING HIGH THROUGHPUT AND HIGH FLEXIBILITY GOVERNMENT REQUIREMENTS CONNECTING GOVERNMENT ON THE MOVE Leveraging market-leading Cruise solution to deliver reliable connectivity for mission-critical application
Slide 19: Delivering Home Equivalent Connectivity at Sea or in the Air
Networks | profitable long-term growth through unique value proposition in key segments DELIVERING HOME EQUIVALENT CONNECTIVITY AT SEA OR IN THE AIR HIGH-SPEED IN-FLIGHT CONNECTIVITY SES is working with the leading aero service providers to meet passenger and airline expectations for high-speed co
Slide 20: Helping to Connect the Unconnected
Networks | profitable long-term growth through unique value proposition in key segments HELPING TO CONNECT THE UNCONNECTED SUPPORTING RURAL INCLUSION We partner with local providers to bring reliable broadband connectivity to remote, rural, and developing areas enabling local businesses, schools,
Slide 21: Landmark Joint Venture Partnership in India
Networks | profitable long-term growth through unique value proposition in key segments LANDMARK JOINT VENTURE PARTNERSHIP EXTENDING THE / NETWORK REACH OF INDIA’S LARGEST TELECOM OPERATOR GEO+MEO ~$100M JV will use SES’ unique Contract(1) using O3b mPOWER multi-orbit space network and SES-12, with
Slide 22: DRS GES Acquisition: Best-in-Class Asset in Strategic Growth Segment
Networks | profitable long-term growth through unique value proposition in key segments VALUE-ACCRETIVE INVESTMENT FOR BEST-IN-CLASS / ASSET IN STRATEGIC GROWTH SEGMENT $450M EXPANDS agreement to acquire US Government solutions DRS Global Enterprise offering via combination Solutions (GES)(1) with S
Slide 23: Leading Provider of Integrated SATCOM Solutions Across US Government
Networks | profitable long-term growth through unique value proposition in key segments | LEADING PROVIDER OF INTEGRATED / SATCOM SOLUTIONS ACROSS US GOVERNMENT >20 years >$250M of supporting end-to-end expected annual solutions for US Government GES revenue land, sea, and air operations ~$40M GLOBA
Slide 24: Creating a Compelling Value Proposition for Our US Government Customers
Networks | profitable long-term growth through unique value proposition in key segments CREATING A COMPELLING VALUE PROPOSITION / FOR OUR US GOVERNMENT CUSTOMERS Proven experience in SATCOM integration State-of-the-art multi-orbit networking capabilities COMPLEMENTARY BUSINESSES WITH >20 years suppo
Slide 25: Doubles Revenue in High-Value US Government Market Segment
Networks | profitable long-term growth through unique value proposition in key segments DOUBLES REVENUE IN HIGH-VALUE / US GOVERNMENT MARKET SEGMENT SES Government Revenue (US & Global Government) Strategic importance of satellite to governments ~€500M driving growing need for secure, reliable conne
Slide 26: Value Accretive Investment in Line with Disciplined Financial Policy
Networks | profitable long-term growth through unique value proposition in key segments VALUE ACCRETIVE INVESTMENT IN LINE / WITH DISCIPLINED FINANCIAL POLICY Growing high-value Networks segments where SES has a right to win Proven record of partnership and success having grown SES GS revenue by ~30
Slide 27: Profitable Video Neighbourhoods
Video | strong long-term cash flow generation and profitability PROFITABLE VIDEO NEIGHBOURHOODS ~8,400 TV channels 366M TV homes ~40 €3.1B 5-10 YEARS (#1 in our industry) (#1 in our industry) DTH platforms 2021 contract backlog typical contract length World’s strongest video neighbourhoods Trusted p
Slide 28: Resilient Long-Term Fundamentals for Video Distribution over Satellite
Video | strong long-term cash flow generation and profitability RESILIENT LONG-TERM FUNDAMENTALS FOR VIDEO DISTRIBUTION OVER SATELLITE HD expansion and UHD adoption driving future TV channel development SD channels reducing, impacted by ‘right-sizing’ of TV Global TV channels over satellite(1) con
Slide 29: Leading in Household Reach, Quality, and Reliability
Video | strong long-term 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 SES T
Slide 30: Prime Neighbourhoods and a Growing Consumer Platform in Europe
Video | strong long-term cash flow generation and profitability PRIME NEIGHBOURHOODS AND A GROWING CONSUMER PLATFORM IN EUROPE LEADING B2C PLATFORM IN GERMANY Enabling viewers to access 26 private HD and 3 private UHD TV channels for €6/month, as well as >50 free TV channels Hybrid linear and OT
Slide 31: Expanding Our HD+ Business in Germany
Video | strong long-term cash flow generation and profitability EXPANDING OUR HD+ BUSINESS IN GERMANY LEADING PLATFORM TAKING THE HD+ EXTENDING HD+ ADDING VALUE TO EXPERIENCE WITH REACH TO NON- OUR KEY MARKET YOU EVERYWHERE SATELLITE HOMES Now serving >2M paying subscribers Commercially launched
Slide 32: Strong Neighbourhoods in All Major Global Regions
Video | strong long-term cash flow generation and profitability STRONG NEIGHBOURHOODS IN ALL MAJOR GLOBAL REGIONS EXPANDING REACH IN EMERGING MARKETS Since 2017, SES’ reach in International markets has grown by 29M (or 26%) to 138M total TV households in key markets Strong neighbourhoods in all
Slide 33: Deepening Relationships with Hybrid & Cloud-Based Solutions
Video | strong long-term cash flow generation and profitability DEEPENING RELATIONSHIPS WITH HYBRID & CLOUD-BASED SOLUTIONS HYBRID & CLOUD-BASED SOLUTIONS We help broadcasters to offer multi-screen services and monetise content, combining broadcast and OTT into a seamless workflow Our SES 360 pl
Slide 34: 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 35: Financials & Additional Information
FINANCIALS & ADDITIONAL INFORMATION
Slide 36: Commitment to Disciplined Financial Policy and Shareholder Value Creation
Disciplined financial policy | profitable investment, strong balance sheet, and sustained shareholder returns COMMITMENT TO DISCIPLINED FINANCIAL POLICY AND SHAREHOLDER VALUE CREATION OUR POLICY OUTLOOK Replacement CapEx to sustain profitable portfolio of business DISCIPLINED €950M investment in
Slide 37: Lower CapEx Profile After 2022 Supportive of Long-Term EBITDA Growth
Disciplined financial policy | value-accretive investment LOWER CAPEX PROFILE AFTER 2022 SUPPORTIVE OF LONG-TERM EBITDA GROWTH AND CASH GENERATION Meaningfully lower CapEx profile post 2022 growth investment peak Growth CapEx (SES-17 & O3b mPOWER) Expected Capital Expenditure (€M, excluding US C-b
Slide 38: Future Launches
Disciplined financial policy | value-accretive investment FUTURE LAUNCHES Region Application Launch date Manufacturer Launch provider SES-22 North America Video (US C-band accelerated clearing) Q2 2022 Thales Alenia Space SpaceX O3b mPOWER (satellites 1-2) Global Fixed Data, Mobility, Government Q3
Slide 39: 19.2E: Realising CapEx Efficiencies and Creating New Opportunities
Disciplined financial policy | value-accretive investment 19.2⁰E: REALISING CAPEX EFFICIENCIES AND CREATING NEW OPPORTUNITIES 117M >€375M TV homes enjoying Revenue from DACH >875 TV channels region (inc. HD+) 2 satellites >50% Replacing 4 satellites Reduction in launched in 2006-2011 CapEx requireme
Slide 40: Net Debt and Leverage at 6-Year Low with Reduced Future Interest Cost
Disciplined financial policy | strong balance sheet and liquidity profile NET DEBT AND LEVERAGE AT 6-YEAR LOW WITH REDUCED FUTURE INTEREST COST Adjusted Net Debt down 9% YOY to 6-year low Investment Grade Rating (Moodys: Baa2; and Adjusted Net Debt (€M)(1) and Adjusted Net Debt to Adjusted EBITDA
Slide 41: Debt Maturity Profile
Disciplined financial policy | strong balance sheet and liquidity profile DEBT MATURITY PROFILE No significant senior bond maturities before Q2 2023 Debt maturity profile (€M) Weighted average senior debt maturity of 7.5 years 1,200 16 16 16 50 1,049 662 16 650 640 662 16 400 57 250 150 2022 2023 20
Slide 42: Solid Q1 2022 Performance
SOLID Q1 2022 PERFORMANCE GROUP ADJUSTED ADJUSTED EITDA REVENUE EBITDA(1) MARGIN(1) €448M €274M 61.3% +2.6% YOY +2.4% YOY (Q1 2021: 61.4%) (-1.6% YOY constant FX) (-1.5% YOY constant FX) ADJUSTED NET ADJUSTED NET DEBT FY 2022 REVENUE & PROFIT(1) TO ADJUSTED EBITDA ADJUSTED EBITDA(2) €88M 3.1x ON TRA
Slide 43: Year-on-Year Growth in Adjusted Net Profit
YEAR-ON-YEAR GROWTH IN ADJUSTED NET PROFIT Adjusted Net Profit increased to €88M Adjusted Net Profit and Net Profit Attributable to SES Shareholders Walk as reported (€M) +8 +2 +6 Flat (3) 88 +2 (7)(1) (1) 82 (+17.3% YOY) 75 €(17)M Video underlying revenue (-6.4% YOY) Flat Networks underlying revenu
Slide 44: Alternative Performance Measures (APMs)
ALTERNATIVE PERFORMANCE MEASURES (APMs) 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 si
Slide 45: 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 46: Investor Relations Contacts
Richard Whiteing Joana Gomes Michelle Suc Investor Relations Investor Relations Investor Relations [email protected] [email protected] [email protected] T +352 710 725 261 T +352 710 725 6467 T +352 710 725 403 Connect with us 46