Investor Presentation
November 2017
Investor Presentation | STRATEGY & MARKET OUTLOOK World’s Leading Satellite-enabled Solutions Provider
Covering 99.99% Serving customers in more than of the globe and world’s population 130 countries
>50 GEO satellites Delivering value-added end- offering multiple frequency bands to-end solutions
12 MEO satellites >EUR 2 billion annual (growing to 20 satellites by 2019) revenue (FY 2016)
>60 Teleports EUR 7.5 billion supporting global ground network contract backlog (as at Q3 2017)
Investor Presentation | Strategy and outlook SES Video SES Networks SES financials 3 Executing Differentiated Strategy to Deliver Profitable Growth
Enabling customers’ success with differentiated end-to-end solutions
Delivering the most flexible and scalable satellite-enabled networks globally
Innovating at all levels of the business to extend future-proof differentiation
Building revenues in fast growing markets where SES has a competitive advantage
Applying a consistent financial framework to maximise profitability and returns
SES Video SES Networks
Investor Presentation | Strategy and outlook SES Video SES Networks SES financials 4 Enabling Customers With Differentiated End-to-End Solutions
SES Video
Backend Infrastructure Experience provider provider (GEO) provider 325 million >7,700 TV households TV channels on served by SES SES’s global fleet
>2,750 >120 TV channels VoD platforms distributed by MX1 supported by MX1
Infrastructure Network platform Service provider (GEO-MEO) provider >30 Gbps ~90% Managed worldwide of global connected planes served by our IFC/IFE partners >One million 62 Cruise passengers Global government served each year clients in 28 countries
Investor Presentation | Strategy and outlook SES Video SES Networks SES financials 5 Delivering Flexible and Scalable Satellite-enable Solutions
Differentiated value proposition in Video and Networks Empowering clients
SES Video >50 Prime video neighbourhoods in all global markets GEO satellites with 99.99% reliability Most efficient, reliable and cost-effective video distribution platform Fully integrated digital media model FOUR World-leading media services provider GEO HTS payloads Unique combination of end-to-end linear and non-linear capabilities tailored to Mobility
12 MEO satellites, plus Only multi-orbit, multi-frequency end-to-end networks provider further eight in 2018/19 Most powerful, flexible and scalable satellite-based system Unrivalled performance and coverage, empowering network clients GLOBAL Service network of 66 Tailored network solutions across a range of growth applications teleports and 28 PoPs Ecosystem of technology and value-add service partners
Investor Presentation | Strategy and outlook SES Video SES Networks SES financials 6 Focusing on Market Segments With Sustained Growth Outlook
% of revenue Growth drivers Market opportunity
▲ Growing HD/UHD and expanding video platforms 68% +2% CAGR Video ▲ Delivering hybrid (DTH/OTT) solutions to USD 20 billion (YTD 2017) (by 2022)(1)
Enabling clients to extend connectivity 13% +3% CAGR Fixed Data Delivering end-to-end network solutions to USD 8 billion (YTD 2017) (by 2022)(1)
Providing ‘home-equivalent’ experience 7% +14% CAGR Mobility Delivering end-to-end network solutions to USD 5 billion (YTD 2017) (by 2022)(1)
Expanding government applications 12% +7% CAGR Government Delivering end-to-end network solutions to USD 4 billion (YTD 2017) (by 2022)(1)
1) Source: NSR forecast (2016-2022) Investor Presentation | Strategy and outlook SES Video SES Networks SES financials 7 SES VIDEO SES Video: End-to-end Solutions in Prime Neighbourhoods
325 million global households 24 UHD channels including served by SES satellites (+3% YOY) Fashion One, Sky and QVC (+41% YOY)
7,743 TV channels 44 million IPTV homes; broadcast globally (+6% YOY) enabling hybrid solutions
2,601 HDTV channels >120 Video on Demand (+7% YOY); HD penetration of 34% platforms supported by MX1 globally
Focusing on delivering the best viewer experience to any device, anywhere
Investor Presentation | Strategy and outlook SES Video SES Networks SES financials 9 Providing End-to-End Hybrid (DTH/OTT) Media Solutions
Backend Infrastructure Experience Provider Provider Provider
Enabling clients to reach audiences on any device, anytime and anywhere
Investor Presentation | Strategy and outlook SES Video SES Networks SES financials 10 Robust Demand Outlook Across Video
Global TV channels growing(1) Bandwidth requirement by channel definition Number MHz by channel (one transponder = 36 MHz)
45,252 47,293 41,533 12.0
6.0 +10% 22,485 15,054 CAGR 3.3 9,817
2016 2020 2025 SD HD UHD (MPEG-2) (MPEG-4) (HEVC) HDTV SD UHD
Complementary linear and non-linear video Daily TV viewing time in Europe(2) 0h49
3h53 3h36 OTT services and devices
Linear
2006 Linear TV OTT 2016
1) Source: Euroconsult. 2025 forecast includes 1,116 UHD TV channels (2016: 71) 2) Source: Mediametrie 2017 – OTT from Ampere Q1 2017 : average of UK - France – Germany
Investor Presentation | Strategy and outlook SES Video SES Networks SES financials 11 Enhancing the Viewing Experience to Drive Demand in Europe
Robust Performance and transition to HD Revenue evolution: 2013 = 100 (at constant FX) 156 million European households +2% CAGR since 2012, including 30 million IPTV
100 100 102 101 >15% CAGR HD penetration increase since 2013, to 784 HD channels in Q2 ’17
>10 years typical contract length
~15-40 TPEs of incremental bandwidth consumed when: 40-45% of total channels in HD; and
(1) 60-70% of channels in MPEG-4 2013 2014 2015 2016 Represents up to 10% of SES’s current satellite HDTV channels capacity in Europe 21% 29% Future upside from UHD acceleration offsets risk from MPEG-2 switch-off: simulcast and/or OTT
MPEG-4 channels 30 UHD channels bandwidth requirement equivalent 36% 52% to 220 SD MPEG-4 channels
1) 2016: Same scope excludes RR Media contribution – MPEG-4 and HD TV are based on Q4 ‘16 channel count
Investor Presentation | Strategy and outlook SES Video SES Networks SES financials 12 Expanding Digital Video Platforms in Developing Markets
90 million households across Asia-Pacific, Latin America and Africa
~3,000 TV channels broadcast over the SES fleet
+35%(1) total channels expected in developing markets (2016-2025), with HD channels x3
+13%(2) expansion of SES capacity for developing markets (2016-2017)
SES technical reach in International markets SES total TV channels Millions of households Number
90 2,963
1,722 46
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Q3 2017 1) Source: Euroconsult 2) Represents incremental wide beam transponders (36 MHz equivalent) recently and expected to be launched on SES-9, SES-10, SES-12 and SES-14
Investor Presentation | Strategy and outlook SES Video SES Networks SES financials 13 Expanding Linear/Non-linear End-to-end solutions
: World-leading media solutions and experience provider
• Distributing >2,750 TV channels; serving >120 VoD platforms; delivering >500 hours of sports per day
Transform Accelerate Globalise
Content and metadata Playout, VoD and Platform access and management Catch-up TV Global CDN services
Enabling major broadcast clients:
• : providing content distribution services for global broadcasting of premier league matches in HD
• : agreement to bring first free-to-air channel (Sky Sports News HD) to Germany and Austria
• : Combining fully managed services for 1,400 linear TV feeds and 50 channels via OTT
• : multi-year deal for the global distribution of live games and content in HD
Investor Presentation | Strategy and outlook SES Video SES Networks SES financials 14 SES NETWORKS SES Networks: Global Managed Connectivity Networks
Unique global GEO-MEO 99.99% measured service distributed network availability (benchmark: 99.97%)
>300 enterprise customers, Up to 1.6 Gbps per MEO including major tier one global clients beam with low latency (<150 ms)
Our IFC/IFC partners serve ~90% >One million cruise passengers served each year of total connected aircraft market
13 U.S. Government agencies global government clients served 62 served by SES Government Solutions in 28 countries
Focusing on delivering scalable and high-performing connectivity solutions
Investor Presentation | Strategy and outlook SES Video SES Networks SES financials 16 Enabling Clients with Customised, end-to-end Solutions
Delivering tailored solutions across a wide range of growth applications ▲ 130 Countries Served Providing reliable and secure connectivity across the value chain ▲ >60 satellites
▲ 1 million enterprise- GEO-MEO Satellite Architecture grade connections
Infrastructure ▲ Global Service Provider ( ) ▲ 30 Gbps Managed
Network ( ) Platform
Internet PoP/ Gateway Remote terminal Customer Data centre and Hub and modem site
Customer analytics Hosted Functions Service platform Provider “Up-to-stack” applications Internet portal Wi-Fi access
Investor Presentation | Strategy and outlook SES Video SES Networks SES financials 17 Unlocking Exponentially Accelerating Demand for Connectivity
Telco/MNO +47% CAGR in mobile data traffic by 2021(1)
Fixed Data Cloud services +70% managed IP traffic growth by 2020(1)
Enterprise +160% fixed internet traffic growth by 2020(1)
Energy +55,000 in-service terminals by 2021(2)
Mobility Aero +12,000 connected aircraft by 2021(2)
Maritime +7,000 connected vessels by 2021(2)
U.S. Government +12% U.S. Defense budget growth by 2021(3) Government Global Government >50% increase in UAV-ISR in-service units(2)
USD 17 billion total market opportunity (by 2022) for satellite-based applications(2)
1) Source: Cisco 2) Source: NSR 3) Source: U.S. Department of Defense. Base budget, excluding overseas contingency operations (funded annually) Investor Presentation | Strategy and outlook SES Video SES Networks SES financials 18 Scaling Up Capabilities to Capture Growing Networks Demand
Reorienting SES Networks business towards end-to-end managed solutions, creating intimacy and long term value
Industry business model business model
Customer engagement ▲ ~3 - 6 month lead time ▲ ~1 - 2 years lead time
Customer insight ▲ Limited ▲ High, with close partnerships
▲ Fully managed/end-to-end network Service level ▲ Bandwidth-only solutions
Service longevity ▲ ~1 - 3 years ▲ >5 years with higher renewal potential
▲ Highly commoditised pricing ▲ Value-based pricing Economics ▲ Limited up-front OpEx ▲ Higher up-front OpEx to deploy network
Investor Presentation | Strategy and outlook SES Video SES Networks SES financials 19 Achieving New Strategic Wins, Demonstrating Strategy Execution
Securing important SES Networks deals which will contribute to future revenue development Requiring commensurate resourcing and time to deploy, but offering greater scope and long-term growth potential
Cruise Burkina Faso U.S. Government
Customer Over two years Over two years Over two years engagement
Service level Fully managed service Fully managed service Fully managed service Integrated GEO and MEO MEO / Terrestrial network MEO capacity solution Critical resilience Trusted partner through early Managed services service that is now scaling Network evolution ability Antenna and shipboard Configurable and technology transportable terminal equipment
Service Strategic partnership Five-year contract Five-year task order longevity
Investor Presentation | Strategy and outlook SES Video SES Networks SES financials 20 Enabling 4G With Major Telcos – Explosion of Data Demand
Largest Telco / MNO in Pacific demanding network solutions, instead of just satellite capacity Delivering high performance, cost-effective solutions in 4 major population centres in PNG Enabling >2x increase in 3G subscribers nationwide and new business in mining sector Supporting >40,000 LTE subscribers
Digicel MEO bandwidth Gbps Papua New Guinea Population: >7 million
Kuinga 30 Mbps Lae Mt. Hagan 700 Mbps 360 Mbps >10x
Pt. Moresby 2,065 Mbps
2014 2017
Investor Presentation | Strategy and outlook SES Video SES Networks SES financials 21 Superior ‘Home-equivalent’ Passenger Experiences in the Air
SES-15
SES-14 SES-17 SES-12
Complementing SES’s global wide beam GEO network, along with unique MEO constellation
Securing long-term agreements with major global service providers:
Developing tailored IFC/IFE solution with for SES-17
Investor Presentation | Strategy and outlook SES Video SES Networks SES financials 22 Delivering Seamless Maritime Connectivity
Delivering the next generation data network for the maritime industry (Maritime+)
• Unique global GEO-MEO capabilities
• Access to multiple spectrum
• Volume-based offering driving adoption
• Innovative, customised products/solutions
• 24/7 network operations and services O3b changing the cruise industry
• RCCL from serving two ships to 11 ships • From follow the ship to dynamic shared capacity • From bandwidth to fully managed solution O3b branded Service for RCCL • Recent Carnival partnership
Investor Presentation | Strategy and outlook SES Video SES Networks SES financials 23 End-to-end Solutions for Global Government Clients
TROJAN : SES GS’s largest ever contract award (potential value of up to USD 285 million) Network
• From bandwidth-only to customised managed service for U.S. Army Intelligence and Security Command
• SES GS providing access to a global and multi-band end-to-end network via the SES fleet
• SES GS delivering centralised network management and bandwidth management solutions
Global multi-band network Global ground network Centralised network management Access to SES’s global fleet Access to SES’s global teleports provided by SES GS
secured long-term contract for end-to-end service ISR program
Commercial satellite capacity Capacity management support Range of civilian/defence missions Secured for government needs for UAVs command & control supported by 15 countries (incl. Luxembourg)
Investor Presentation | Strategy and outlook SES Video SES Networks SES financials 24 Delivering Unrivalled Connectivity and Managed Data Services
: the most powerful, flexible and scalable satellite-based system
▲ More than 30,000 formed beams fully-shapeable and steerable in real-time Flexibility ▲ Unrivalled coverage of nearly 400 million square kilometres
▲ Multiple terabits of throughput across a global ‘virtual fibre’ network Scalability ▲ Small, fast and easy-to-install terminals, reducing deployment time from days to hours
▲ Incorporating across the ecosystem Technology cutting-edge space and ground technologies evolution ▲ Seamless integration with existing GEO-MEO and terrestrial network
▲ and ground equipment costs Improved Lower cost/bit economics ▲ Improving SES’s CapEx efficiency, notably in context of upcoming GEO replacements
Investor Presentation | Strategy and outlook SES Video SES Networks SES financials 25 Redefining Satellite Connectivity to Expand Addressable Market
CURRENT MEO NEW OPPORTUNITIES 12 satellites in service(1) plus WITH FROM 2021 eight launched in 2018/2019 Seven super-power satellites
Small cities and towns Large multi-national organisations Fixed rigs/larger production vessels Large cruise ships Larger fixed/mobile installations
Smaller cruise ships Smaller mobile production vessels Multiple units in theatre Cloud access VIP aircraft Data centres Commercial aircraft Remote offices Inter-regional Small towns and commercial ships remote locations Large yachts
1) Comprising nine operational satellites and three held as in-orbit back-up
Investor Presentation | Strategy and outlook SES Video SES Networks SES financials 26 SES FINANCIALS Expanding Future Satellite Network and Capabilities
Incremental HTS capacity Launch Target Verticals Launch date Payload type txps(3) (GHz) provider
Launched Mar 2017 SES-10 Shaped 27 - SpaceX (OSD May 2017)
Launched May 2017 SES-15(1) Shaped/HTS 16 10 Soyuz (OSD by Q1 2018)
Launched Oct 2017 SES-11 Shaped - - SpaceX (OSD by end Q1 2018)
SES-12(1) Q1 2018 Shaped/HTS 8 14 SpaceX
SES-16/GovSat-1(2) Q1 2018 Fully steerable 68 - SpaceX
SES-14(1) Q1 2018 Shaped/HTS 8 12 Ariane
O3b (satellites 13-16) Q1 2018 HTS
O3b (satellites 17-20) H1 2019 HTS
SES-17 H1 2021 HTS
O3b mPOWER 2021 HTS (satellites 1-7) Expanding global network, with long term anchor customers secured before procurement
1) SES-12, SES-14 and SES-15 will be positioned using electric orbit raising, with entry into service some four to six months after launch date 2) Procured by LuxGovSat 3) 36 MHz equivalent “OSD” refers to Operational Service Date
Investor Presentation | Strategy and outlook SES Video SES Networks SES financials 28 Made Steady Progress on Launch Schedule
2016 2017 2018 2019 2020 2021 Video SES-9, SES-10, SES-12, SES-14, SES-15 (wide beam) Asia LATAM ME/Asia LATAM North America
SES HTS (SES-12, SES-14, SES-15) Enterprise ME/Asia LATAM North America EUR 650-750
million of annual O3b Global +/-45° revenue from GEO-
Mobility SES HTS (SES-12, SES-14, SES-15) MEO ME/Asia LATAM North America (1,2) investments O3b Global +/-45° (Over 30% already contracted) Government SES-16/GovSat-1 Europe/ME/Africa
O3b Global +/-45°
50% of the GEO launches successfully brought into service and O3b growing New assets fulfilling specific region demands Significant, long-term pre-commitments secured for all future growth investments 1) Annualised incremental revenue for GEO incremental capacity at average ‘steady-state’ utilisation of around 75% (based on FX rate of EUR 1: U.S. Dollar 1.10) 2) Based on O3b constellation of 17 satellites in operation and at ‘steady-state’ utilisation (based on FX rate of EUR 1: U.S. Dollar 1.10)
Investor Presentation | Strategy Execution SES Video SES Networks SES Financials 29 Underpinning Growth Profile With Substantial Contract Backlog
Fully protected contract backlog EUR billion
8.1 7.5 7.6 at constant 7.5 7.3 7.4 FX Of which:
▲ Video: 72%
▲ Fixed Data: 7%
▲ Mobility: 14%
▲ Government: 7%
2013 2014 2015 2016 Q3 2017
High visibility from weighted average contract length ~8 years ~8 years(1)
Years of revenue sustained ~4 years ~4 years
Backlog close to historic high at constant FX reflecting robust and stable contracts Average capacity contract length ≥10 years, with current remaining contract duration ~ 8 years(1)
1) At same scope; at around seven years when including RR Media and O3b on an annualised base Investor Presentation | Strategy Execution SES Video SES Networks SES Financials 30 CapEx Cycle and Efficiencies a Key Driver of Free Cash Flow
Free cash flow and CapEx development Future GEO-MEO Capital Expenditure As a % of group revenue (at same scope) EUR million (replacement and growth) 48% 980
130
40% 100 36% 630 10 570 70 25% 300 550 430 430 430 20% 120 110 110 750
90 100 100 13% 100 220 220 220 170
0% 2011 2012 2013 2014 2015 2016 H1'17 2017 2018 2019 2020 2021 2022
FCF before financing and acquisitions CapEx Committed satellite Ground/non-satellite Estimated Uncommitted
FCF supported by strong cash conversion rate(1) of 85-90% and improves as CapEx cycle reduces Flexible and back-loaded future CapEx profile
1) Net operating cash flow divided by EBITDA Investor Presentation | Strategy and outlook SES Video SES Networks SES financials 31 Reducing Normalised CapEx; Improving Capital Efficiency
SES’s Normalised CapEx development Economies of scale and design reduce EUR million Normalised CapEx by 20% from 2014
• Primary satellites reduced from 37 to 32
• Cost per satellite EUR 204 million (-7%) 120(1) (100) (105) • Delivered on target one year ahead of plan 40 Scope change (SES-16 and HTS capacity) and existing MEO will add 595 540 495 EUR 160 million 435 Targeting 15%-20% reduction in consolidated Normalised CapEx
• Efficiencies in fleet scale, design and scope 60 60 60 60 synergies (e.g. GEO/MEO) 2014 Target 2018 Scope 2018 Target 2022 savings (target) change savings O3b mPOWER will unlock important GEO-MEO synergies from 2021
Non-satellite Satellite MEO • Up to two replacement GEO satellites
1) Based on current MEO constellation (excluding O3b mPOWER, starting in 2021)
Investor Presentation | Strategy and outlook SES Video SES Networks SES financials 32 Maintaining SES’s Strong Balance Sheet Metrics
SES’s net debt to EBITDA ratio(1) Executed growth accelerators Times within financial framework Net Debt to EBITDA ratio increased 3.29 3.09 following RR Media and O3b consolidation 2.79 2.77 2.54 Average interest cost of 3.9%
Long-term average debt maturity of around eight years
FY 2013 FY 2014 FY 2015 FY 2016 Q3 2017
1) Based on rating agency methodology (hybrid bonds as 50% debt/50% equity) and includes last 12 months EBITDA from O3b and RR Media
Investor Presentation | Strategy and outlook SES Video SES Networks SES financials 33 Well Placed to Deliver Sustained Growth and Improving Returns
Return on Invested Capital % 3 2 >10% 1 ▲ Net debt/EBITDA ratio below 3.3x
▲ Executing future ▲ Operating margin improving from 33% opportunities to to >40% reduce financing costs 6.5% ▲ Low effective tax rate of 17-22% ▲ New revenue from investments a key growth driver
2016 Revenue growth Operating margin and costs Capital Medium-term Like for like(1) (medium-term) (OpEx, D&A and tax) structure
Improving returns to support future growth investments and progressive dividend per share
1) Assuming RR Media and O3b had been consolidated from 1 January 2016 Investor Presentation | Strategy and outlook SES Video SES Networks SES financials 34 Applying a Consistent Financial Framework
▲ Target IRRs in excess of 10%
Separate investing ▲ Securing anchor customers in advance of procurement decision from financing decision ▲ Seeding new market opportunities with existing global network/assets ▲ Disciplined investment across value chain to deliver customer solutions
▲ Optimising SES’s long-term cost of capital and liquidity Financing decision to ▲ Retaining flexibility with access to wide range of attractive sources maximise future ROIC ▲ Maintaining net debt to EBITDA ratio below 3.3 times
▲ Current replacement requirements and committed growth pipeline Applying consistent ▲ Maintaining a progressive dividend per share use of cash approach ▲ Executing additional growth accelerators within financial framework
Driving sustained, profitable growth and long-term returns
Investor Presentation | Strategy and outlook SES Video SES Networks SES financials 35 Q3 & YTD 2017 RESULTS YTD 2017 Financial Highlights
Change (YOY) YTD 2017 YTD 2016 EUR million EUR million Reported Like-for-like(1)
Revenue 1,527.2 1,490.1 +2.5% -4.0%
EBITDA 994.6 1,060.9 -6.3% -5.9% - EBITDA margin (like-for-like)(1) 65.1% 66.4%
Operating profit 448.4 610.4 -26.5% -12.1% - Operating profit margin (like-for-like)(1) 31.9%(2) 32.1%
Net profit attributable to SES shareholders 394.5 824.0 -52.1% n/a - Net profit exc. deemed gain on disposal of 394.5 328.8 +20.0% n/a equity interest (EUR 495.2 million)
Net debt/EBITDA(3) 3.29 times 3.30 times
Contract backlog EUR 7.5 billion EUR 8.0 billion
1) At constant FX and assuming RR Media and O3b had been consolidated on 1 January 2016 2) Excluding one-off impairment charge of EUR 38.4 million against AMC-9 in Q2 2017. YTD 2017 reported operating profit margin was 29.4% 3) Based on rating agency methodology (hybrid bonds treated as 50% debt and 50% equity)
Investor Presentation | Q3 and YTD 2017 results 37 SES Group revenue +2.5% as reported (-4.0% like-for-like) YTD 2017
Revenue walk
EUR million -4.0% like-for-like (-2.0% Verticals)
+102.1 +20.8 +0.5 1,591.6 (41.3) (10.7) 1,527.2 1,490.1 (33.7) (0.6) SES Networks: +2.2%
YTD 2016 FX adjustment Like-for-like YTD 2016 Video Fixed Data Mobility Government Other(2) YTD 2017 (reported) adjustment (like-for-like)(1) (-3.8%) (-5.2%) (+22.3%) (+0.3%)
‘Other’ revenue of EUR 5.7 million YTD 2017 , in line with expected normalised run-rate
1) At constant FX and assuming RR Media and O3b had been consolidated on 1 January 2016 2) “Other” includes revenue not directly applicable to a particular vertical
Investor Presentation | Q3 and YTD 2017 results 38 SES Video Revenue +1.1% as reported (-3.8% like-for-like) YTD 2017
SES Video revenue YTD walk EUR million
(19.8) (3.8) (7.5) (10.2) 1,072.8 LFL(1)
1,031.5 1,020.0 (as reported) Change (YOY)(1) H1 Q3 YTD
Underlying -1.3% -0.2% -0.9%
Periodic -1.8% -2.0% -1.8%
MX1 -- -2.1% -0.7%
Health -- -1.1% -0.4%
Total Video -3.1% -5.4% -3.8%
YTD 2016 Periodic Satellite health MX1 Underlying YTD 2017
Underlying representing -0.9% of the variance to date with improved profile in Q3
1) At constant FX and assuming RR Media had been consolidated on 1 January 2016
Investor Presentation | Q3 and YTD 2017 results 39 SES Networks +12.7% as reported (+2.2% like-for-like) YTD 2017
SES Networks revenue YTD walk EUR million +20.9(2,3) +0.5(2) 490.0 479.3 (6.0) (2) LFL(1) (4.7)
435.1 (as reported) -5.2%
YTD 2016 Fixed Data Fixed Data Mobility Government YTD 2017 (Satellite health) (Underlying) (+22.3%) (+0.3%)
Growth in new managed service contracts in Fixed Data offset by short-term impact of AMC-9 and lowering of wholesale revenue Aero and Maritime driving growth in Mobility Stabilising Government business with growth momentum building, particular for U.S. Government
1) At constant FX and assuming O3b had been consolidated on 1 January 2016 2) Periodic YTD 2017: EUR 9 million in Fixed Data, EUR 11 million in Government (of which around EUR 2 million of U.S. hosted payloads). Periodic YTD 2016: EUR 3 million in Fixed Data, EUR 2 million in Mobility, EUR 8 million in Government (of which around EUR 8 million of U.S. hosted payloads) 3) Includes around EUR 17 million upfront revenue recognition in Q1 2017 from agreement with Global Eagle Entertainment
Investor Presentation | Q3 and YTD 2017 results 40 EBITDA of EUR 994.6 million (YTD 2016: EUR 1,060.9 million)
EBITDA walk EUR million EBITDA -5.9% like-for-like(1)
1,060.9 (3.7) 1,057.2 +3.3 (30.7) (33.7) (1.5) 994.6
EBITDA EBITDA EBITDA margin margin margin 71.2% 66.4% 65.1%
YTD 2016 Like-for-like YTD 2016 Revenue Revenue Cost of sales Fixed costs YTD 2017 (reported) adjustment (like-for-like)(1) change change (Verticals) (Other)
Operating expenses reduced (like-for-like) as lower fixed costs more than offset increase in variable cost of sales
1) At constant FX and assuming RR Media and O3b had been consolidated on 1 January 2016
Investor Presentation | Q3 and YTD 2017 results 41 Like-for-like Depreciation down 2.0% (+21.6% as reported)
Depreciation walk
EUR million -2.0% like-for-like
Underlying depreciation down 9.7% 96.7 38.4 497.9 (11.5) 488.0 (36.8) 449.6 401.2
YTD 2016 Like-for-like YTD 2016 GEO MEO Underlying AMC-9 impairment YTD 2017 (reported) adjustment(1) (like-for-like)(1) depreciable depreciable depreciation charge fleet fleet
Amortisation expense of EUR 58.2 million (YTD 2016: EUR 49.3 million) Reported operating profit of EUR 448.4 million (YTD 2016 like-for-like(1): EUR 510.1 million, EUR 610.4 million as reported) Operating profit margin at 31.9%, excluding AMC-9 impairment charge in Q2 2017 (YTD 2016 like-for-like(1): 32.1%)
1) At constant FX and assuming RR Media and O3b had been consolidated on 1 January 2016
Investor Presentation | Q3 and YTD 2017 results 42 Net Profit of EUR 394.5 million
Net Profit Attributable to SES Shareholders EUR million
824.0 Net profit +20.0%, or EUR 65.7 million, exc. O3b one-off gain
+62.5 +133.4 (1.4) 394.5 (495.2) 328.8 +33.2
(162.0)
YTD 2016 Gain on deemed YTD 2016 exc. Operating profit Net financing Taxation Share of Non-controlling YTD 2017 disposal of equity gain on deemed change costs associates' result interest interest equity disposal (net of tax)
Finance costs 24.5% lower as additional costs from RR Media and O3b offset by lower same scope net interest and higher capitalised interest Positive contribution from release of certain tax provisions and recognition of tax assets and credits; ETR at 17.2% excluding one-offs Share of associates’ result nil for YTD 2017 following O3b consolidation which resulted in EUR 495.2 million gain in Q3 2016
Investor Presentation | Q3 and YTD 2017 results 43 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 it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever.
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This presentation includes “forward-looking statements”. All statements other than statements of historical fact included in this presentation, including without limitation those regarding SES’s financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to SES products and services), are forward-looking statements. Such forward- looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of SES to be materially different from future results, performance or achievements expressed or implied by such forward- looking statements. Such forward-looking statements are based on numerous assumptions regarding SES and its subsidiaries and affiliates, present and future business strategies, and the environment in which SES will operate in the future, and such assumptions may or may not prove to be correct. These forward-looking statements speak only as at the date of this presentation. Forward-looking statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. SES, and its directors, officers and advisors do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Investor Presentation | 44 For more information, please contact:
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