INVESTOR PRESENTATION SEPTEMBER 2019 2019 Investor presentation | May 2019
Contents Page 3-4 1) SES at a Glance 5-6 2) Business Highlights 7-10 3) Strategic Priorities 11-12 4) Video 13-16 5) Networks 17 6) U.S. C-band Initiative 19-26 7) H1 2019 Results 27 8) Key Takeaways Investor presentation | September 2019 2
Executive Summary Uniquely positioned with a balanced portfolio of high-growing Networks and sustained, highly profitable Video business though 2020 and ahead of the launch of our next generation network - O3b mPOWER Organisational transformation towards delivering exceptional customer experience well under way Strong business execution, delivering on all aspects of the 2018 financial outlook; focus on execution paramount in 2019 Strong focus on cash flow, costs and leverage Strongly positioned to repurpose C-band, protect customers and neighbourhoods and deliver win-win market-based solution for 5G in the U.S. Investor presentation | September 2019 Investor presentation | September 2019 3 3
World’s Leading Satellite -enabled Solutions Provider 99% 99% coverage of the world EUR R 2BN 2BN annual revenue >E >EUR R 6BN 6BN contract backlog EUR EU R 7BN 7BN market cap. 99.999% 99.999% service reliability EUR R 1.26BN 1.26BN annual EBITDA <3.3x <3.3x net debt / EBITDA EU EUR R 12B 12BN N enterprise value Revenue of Revenue of EUR 1.3BN EUR 0.7BN Large, profitable, long-term and resilient business – enabling Growth engine for the SES business – integrating satellite-based broadcasters and content owners to deliver the best viewer networks into the mainstream global communications ecosystem experience to any device, anywhere 355 million TV homes 525 TV channels 15 U.S. government ~60 government Networks Video served by the SES network fully managed playout agencies and 50 customers clients served globally ~1 billion people >120 VoD MEF CE 2.0 >300 customers receiving video content platforms supported telco-grade certification telco, MNO and cloud >8,200 total 8,400 hours >35 airlines 4 of the top 5 TV channels of streaming video served with partners Global cruise lines ~3,000 HD/UHD 620 hours Up to 1 GB/s 120 milliseconds TV channels sports & live events anywhere, anytime low latency connectivity Market-leader in Video and Networks | History of driving innovation | Focus on ROIC and FCF Investor presentation | September 2019 4
Business Highlights Credit: Arianespace Delivered on 2018 financial outlook ▪ H1 2019 financial results in line with our expectations ▪ Financials Financial outlook unchanged with focus for H2 on ▪ delivering revenue expansion Networks continues to grow while Video is delivering value ▪ in a changing market Operations EBITDA performance reflects strong control over costs and ▪ discretionary spending Progress made on C-Band with FCC stepping up ▪ C-Band engagement towards deployment of 5G in the U.S Investor presentation | September 2019 5
Delivered on 2018 Financial Outlook … EUR million 2018 Financial Outlook 2018 Actual Group revenue 1,958 - 2,002 2,010.3 Video (as reported) 1,303 - 1,318 1,306.3 Networks 645 - 674 695.7 Group EBITDA Over 1,252 1,255.5 Net debt / EBITDA Below 3.3x 3.29x Guidance delivered or exceeded across Video, Networks and Total Revenue, EBITDA, Leverage and Cash Flow Investor presentation | September 2019 6
… O n Track to Deliver on 2019 Financial Outlook EUR million Financial Outlook 2019 (1) H1 2019 90% of the 2019 expected ▲ 961.4 961.4 group revenue now contracted Group revenue 1,975 - 2,040 (underlying -4.2% YOY) Focus on execution in H2 2019 ▲ 604.6 Pipeline of opportunities, ▲ 1,225 – 1,255 Video notably in Mobility, (underlying -8.8% YOY) Government, International Video and Sports & Events 356.2 Networks 740 - 775 (underlying +5.0% YOY) 584.5 584.5 Group EBITDA 1,220 - 1,265 (2) (62% margin exc. restructuring charge) 1) Financial outlook assumes EUR/USD FX rate of EUR 1 = USD 1.15, nominal launch schedule and satellite health status. Group revenue includes approximately EUR 10 million of Other revenue 2) Group EBITDA excluding a restructuring charge of EUR 25 - 30 million Investor presentation | September 2019 7
Business is Evolving Towards Balanced Portfolio of Stability and Growth Revenue and EBITDA (1) EUR million 2,060 – 2,160 Up to 6% growth (2) 2,045 Networks 35% of >40% of Strong growth engine for the SES business ▲ revenue revenue Satellite becoming more mainstream in data networks ▲ Video 65% of <60% of revenue ▲ Large, profitable and resilient neighbourhoods revenue Complementing large audience reach with value-added services ▲ FY 2018 FY 2020 Up to 5% growth (2) EUR 1,260 – 1,340 Group EBITDA EUR 1,276 ▲ Retooling organisation in support strong growth in end-to-end services ▲ Trimming resources to maximise operational efficiency 1) Financial outlook assumes EUR/USD FX rate of EUR 1 = USD 1.15, nominal launch schedule and satellite health status. Group revenue includes ‘other’ revenue of EUR 8 million in 2018 and approximately EUR 10 million in 2020 2) Absolute growth at constant FX Investor presentation | September 2019 8
Our Strategic Priorities Video Reinforce and drive value through our core video neighbourhoods Develop OTT and orchestration capabilities to support our content provider customers reach new markets and audiences MOVING IMAGES THAT MOVE THE WORLD Take advantage of opportunities to maximise efficiency and create value Networks Leverage our market leading position in delivering unique high throughput, low latency GEO-MEO solutions, driving business growth Enable cloud adoption on a global scale, through partners and customers CHANGING LIVES BY Harness emerging trends and technologies such as 5G, Industrial IoT, Analytics and Cloud CONNECTING PEOPLE to integrate fully within broader Network ecosystem. Making satellite mainstream Investor presentation | September 2019 9
Leading the Transformation in a Rapidly Evolving Market Video ideo | Industry Trends SE SES S | V | Vide ideo Strongest DTH neighbourhoods in mature markets ▲ Broadcasters/platform operators facing accelerated disruption ▲ Expanding platforms in Asia, Latin America and Eastern Europe ▲ Number of linear TV channels reducing in mature markets ▲ Trusted partner to world’s leading broadcasters/content owners ▲ Increased competition for new platforms in international markets ▲ Increasing customers’ reach with OTT distribution capabilities ▲ Satellite remains essential for mass market/premium content ▲ … Delivering customer success in core markets Netw etwor orks ks | Industry Trends SES SE S | N | Networks s Unique high-throughput, low-latency solutions on a global scale ▲ Demand for connectivity growing exponentially around the globe ▲ Long-term partnerships with major government/commercial clients ▲ ▲ Cloud and mobile applications expanding across all verticals Seamless integration of satellite into Telco/Cloud ecosystem ▲ ▲ Economics of traditional satellite assets challenged ▲ Segment specific solutions optimising end customer experience Scale and Performance of traditional satellite assets limits relevance ▲ … Transforming delivery of data networks over satellite Investor presentation | September 2019 10
Large, Highly Profitable and Resilient Video Business 8,290 8,290 355 million 355 milli on 40 40 EUR R 5 billion 5 billion 10 YE 10 YEARS ARS TV channels TV homes DTH platforms contract backlog typical contract length VIDEO DISTRIBUTION VIDEO SERVICES (75% of Video 2018 revenue) (25% of Video 2018 revenue) ~15% Europe (~50%) : leading video neighbourhoods in MX1 (~15%) : supporting the world’s leading Germany, U.K., France and the Nordics; delivering ~10% media businesses with a full range of content customers’ content to 167 million households EUR 1.3BN ~50% aggregation, management, playout, online video and (2018 revenue) North America (~10%) : mix between long-term content distribution services lease agreement and direct-to-cable; serving as a key ~15% distribution network for 75 million households HD+ (~10%) : platform for broadcasters in Germany to deliver HD and UHD content to over 2 million International (~15%) : delivering content across ~10% paying subscribers Asia-Pacific, Latin America, Africa and the Middle East to 108 million households Trusted partner to the world’s leading Increasing engagement with customers by World’s strongest video neighbourhoods, broadcasters, platform operators and offering unified linear and OTT distribution with access to over 1 billion people content owners capabilities Investor presentation | September 2019 11
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