Satellite Industry Globalizes SES/ASTRA - the Company

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Satellite Industry Globalizes SES/ASTRA - the Company Satellite Industry Globalizes SES/ASTRA - The Company l Operator of ASTRA, the leading DTH satellite system in Europe l Satellite fleet: n 12 satellites in operation (9 at 19.2° East, 3 at 28.2° East) n 2 additional satellites (ASTRA 1K and 3A) under manufacture l ASTRA carries more than 415 digital and analogue TV services and 320 radio services of leading European and international broadcasters for Europe's main language 7markets l ASTRA audience exceeds 89 million households in 22 European countries Global Forum Newcastle 18--19 Octobre 2001 Christine Leurquin The SES Group in Space SES Strategy: To Create A Global Broadband Communications System Global Broadband Communications System GE Americom Next Generation Systems Product and Geographic SES Service Expansion Strategy Diversification AsiaSat ASTRA -NET NSAB Core Business targeted StarOne DTH Europe (1H, 2B, 1K, …) achieved SES Multimedia S. A. 3 SES Multimedia S. A. 4 Shaping the future of broadband satellite Shaping the future of broadband satellite communications communications l SES Global, a newly -formed company headquartered in Luxembourg, to become the world’s premier broadband l GE Capital to hold a strategic stake of 25.1% economic and satellite services provider, via the combination of SES and GE 20.1% voting in SES Global Americom, respectively third and fifth-largest satellite l SES Global financially strong: proforma 2000 revenues of operators in terms of commercial revenues worldwide EUR 1.410bn (US$ 1.283bn), EBITDA of EUR 1.179bn (US$ 1.073bn) and EBITDA margins in excess of 80% l SES Global to acquire 100% of GE Americom stock and other l SES Global to finance transaction through a combination of assets for a consideration of US$ 5 bn debt and new equity, combined with listing on a US stock exchange l Transaction subject to regulatory approvals SES Multimedia S. A. 5 SES Multimedia S. A. 6 1 SES Strategy: Broadband Infrastructure Transaction Rationale for a Global Communications Network l Satellite industry in transition n Consolidation n Globalization n Key growth potential in global broadband satellite services l Transaction enables SES Global to achieve global scale Next generation systems n First truly global network of leading regional satellite systems n Enhance leadership position in value added data services ASTRA Broadband Interactive System n Benefit from synergy potential in fleet deployment and operations management multicast l SES Global poised to capitalize on growth markets in DTH, digital TV/Radio cable feed and broadband services analogue TV/Radio SES Multimedia S. A. 7 SES Multimedia S. A. 8 Global Transponder Use Satellite DTH Reception in Europe 8000 40 37.93* 7000 1065 35 33.91 31.12 6000 28.74 30 30.94 1515 25.96 1469 24.29 28.25 5000 25 26.51 988 24.78 684 22.97 4000 1717 193 20 21.73 211 3000 15 23 2000 3686 3942 10 36 MHz transponder equivalent 2688 1000 In Mill. DTH/SMATV Households 5 0 0 1999A 2004E 2009E YE95 YE96 YE97 YE98 YE99 YE00 Video Last-mile IP/Internet Voice ASTRA Total Satellite Source: Euroconsult * 29 countries (incl. 7 additional CEE countries: Belarus, Bulgaria, Estonia, Latvia, Lithuania, Romania and Ukraine SES Multimedia S. A. 9 and foreign households projection for Germany) SES Multimedia S. A. 10 Source: SES/ASTRA, Satellite Monitors Cable and Satellite Reception in Europe SES Strategy: To Create A Global Broadband Communications System 120 Global 100 Broadband 37.93 Communications System 80 33.91 +23.7% 31.12 GE Americom Next Generation 28.74 Systems 25.96 60 63.64 +5.6% +3.6% +2.6% Product and 49.66 51.45 Geographic SES 47.02 40 45.81 +8.9% +11.9% Service +8.3% Expansion +10.7% Strategy In Mill. TV Households Diversification 20 0 AsiaSat ASTRA -NET Core Business YE96 YE97 YE98 YE99 YE00 NSAB targeted StarOne DTH Europe Cable Satellite (1H, 2B, 1K, …) achieved * 29 countries (incl. 7 additional CEE countries: Belarus, Bulgaria, Estonia, Latvia, Lithuania, Romania and Ukraine and foreign households projection for Germany) SES Multimedia S. A. 11 SES Multimedia S. A. 12 Source: SES/ASTRA, Satellite Monitors 2 ASTRA-NET : a B2B or B2C Solution Value Chain Positioning 3 different delivery methods: IP-Multicast File Delivery TV Content ASTRA- NET Band- SES Multimedia Business Providers IP-Multicast Streaming Services IP/DVB TCP/IP High Speed Internet width Receiver SES Multimedia Transponder Leasing Software Provision - Providing capacity - Ku-Band and Ka-Band Television & Television & Radio Radio IP/DVB - Overall system management IP Content Television Streaming Providers - Equal treatment of customers IP Content DVB IP Content DVB IP/DVB Streaming Multiplexer Streaming Multiplexer Radio Network SES Shared Network External Full Provision High Speed - Providing Mbytes to S.P.s Service Providers High Speed Multimedia-PC Web Internet Internet Casting - Ku-Band and/or Ka-Band Internet Service - Wholesale S.P. billing - Provide service on own Providers ASTRA -NET platform Micro networks Set Top Box Channels Service - Early S.P.s Terrestrial Return Fast Provision - Small S.P.s Internet - migrating to A.S.P. ASTRA-NET = Platform Operations + Transmission + Receive Site Software End Users SES Multimedia S. A. 13 SES Multimedia S. A. 14 Across Europe, competitive terrestrial offering will be Strengths and weaknesses accessible to SOHOs and SMEs by 2005 0-25% Shared / Speed Symmetry Coverage Bundling Scalability Dedicated Return / FW Bandwith SMEs 25-50% ISDN – 2Mbits / 38 TV 50-75% Satellite Asym . Continental – Global Yes Shared 50-75% Mbits Data 50-75% TV 0-25% 500 Kbits / Local / potential Asym – Sym . Data Yes Dedicated DSL 8 Mbits regional 50-75% Voice TV Terrestrial coverage of 75-100 500 Kbits / Local / 0-25% Cable Asym . Data Yes Shared 40 Mbits regional Voice 0-25% TV 1-10 Mbits / Fibre / LAN 100 Mbits Sym. Local Data Yes Dedicated 0-25% 0-25% Voice 25-50% TV LMDS 1 Mbit / Asym. Local Data Yes Shared 0-25% 40 Mbits Voice 0-25% 400 Kbits / Data 0-25% 3G 2 Mbits Sym. Continental? Voice No Shared Videostream 0-25% 0-25% 0-25% SES Multimedia S. A. 15 SES Multimedia S. A. 16 0-25% GLOBAL APPLICATIONS AND SERVICES SES Group multimedia growth The broadcast/multicast model u4 ASTRA-NET platforms deployed worldwide Point-to-multipoint uSet to create a de facto multimedia network standard PSTN return DTH payload u50 customers using ASTRA-NET technology worldwide uBroadband Stockholm Amsterdam multimedia Luxembourg revenues increased Milano to 350% of 1999 Hong Kong Gateway level Kuala Lumpur uPre-commercial Rio de testing of ASTRA Janeiro Fibre backbone ISP Public Switched Telephone Network BBI initiated Existing Planned SES Multimedia S. A. 17 SES Multimedia S. A. 18 3 The access model The connectivity model Star network Full mesh Access to Internet Full by-pass Bent-pipe payload On-Board Processing Gateway Fibre backbone SES Multimedia S. A. 19 SES Multimedia S. A. 20 Models and markets SES services portfolio 8Mbps B2B Residential B2C High Corporate Mesh Big Corp. SME SOHO Urban Rural 2Mbps Cable/ SIT III MDU BBI Contribution Broadcast / SME Multicast X X X X X 384kbps SIT II Access X X X X 144kbps Large Peak Data Rates SIT I Enterprise Connectivity X X X X Residential 10kbps Low Market Potential EUR SES Multimedia S. A. 21 SES Multimedia S. A. 22 Key challenges for Satellite Interactive services The need for partnerships l Two-way terminal price n residential market volumes will drive down costs l Content: n open standards will avoid fragmentation of market n partners for video-streamed and bundled content • DVB-RCS, Multimedia Home Platform l Ka band spacecraft technology l Ground segment: n Production of low-cost and user-friendly terminals n OBP provides more challenges n Support open standards approach n bent-pipe is less challenging l Distribution: l Regulatory provisions n Retail distribution n exemption from individual licensing of terminals n Installation and maintenance • like GSM • ensure universal access to broadband network SES Multimedia S. A. 23 SES Multimedia S. A. 24 4 NEED FOR A REINFORCEMENT OF THE SATELLITE ROLE IN EUROPE ESOA Key Objectives l Ensure that satellites benefit from the appropriate political, industrial and regulatory environment to fulfil their vital role in the delivery of communications Founding Members SES-ASTRA, Europe*Star,Eutelsat SA., Hispasat, New Skies Satellites NV, Nordic Satellite AB, Telenor Broadband Services AS and Telespazio S.p.A , l Develop the potential of satellite-delivered services Inmarsat are planning the formation of a l Leverage the major role of satellite in the up-coming European Satellite Operators Association knowledge and e-society, based on ubiquitous connectivity. (ESOA) l Focus on the issues facing the development of satellite services such as space and telecommunications policy. to promote the role of satellites in the e-europe of the 21st century. SES Multimedia S. A. 25 SES Multimedia S. A. 26 SES Global: worldwide coverage *GE Americom transaction subjectSES Multimedia to regulatory S. A. approvals 27 5.
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