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This Is a Title That Goes Over Two Lines Investor Day 2017 London 28 June 2017 Investor Day 2017 | Agenda Karim Michel Sabbagh Overview President and CEO Christophe De Hauwer Development Chief Strategy and Development Officer Ferdinand Kayser SES Video CEO of SES Video Steve Collar SES Networks CEO of SES Networks Q&A Martin Halliwell Technology Chief Technology Officer Padraig McCarthy Finance Chief Financial Officer Q&A Lunch Investor Day 2017 | 2 DELIVERING SUSTAINED AND PROFITABLE GROWTH Karim Michel Sabbagh, President and CEO 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 7.8 billion supporting global ground network contract backlog (as at Q1 2017) Investor Day 2017 | 4 Focusing on Globalisation and Verticalisation Key to Growth Adapted from SES’s 2014 Investor Day Economies of scale within Economies of scale across selected segment(s) segments and geographies Global Focused innovation drive Wide innovation spectrum SCOPE Coherent capabilities system Versatile cross-segmental capabilities system Exposure to selected segments Ability to adapt and evolve may be limits risk mitigation and synergies constrained due to scale SCALE SCALE Successful model for niche Regional focus with strong “home GEOGRAPHIC SPAN GEOGRAPHIC and/or non-for-profit players market” Explicit government-level support Positive economics at maturity phase Generally lacking economies of Saturated growth opportunities and scale, facing high learning curve exposure to select geography limits risk and fixed cost barriers mitigation Regional Generalist APPLICATION Multiple vertical focus Investor Day 2017 | 5 Executing Differentiated Strategy Delivering a flexible and scalable, global satellite-enabled network Focusing on value-added, end-to-end solutions in four key verticals Innovating at all levels of the business to create future-proof differentiation Executing profitable growth strategy within SES’s financial framework Investor Day 2017 | 6 Improving Business Mix Through Strategy Execution 2014 2015 2016 2017 (so far) SES-8 (Asia-Pacific) First in commercial UHD SES-9 (Asia-Pacific) SES-10 (Latin America) ASTRA 2G (MENA) Major IFC/IFC deal with IFC/IFC deals with Gogo, Global Eagle Ent. Panasonic Avionics, Thales EGNOS payloads LuxGovSat (SES-16) NATO AGS (LuxGovSat) Introduced Market Created MX1 Evolved operating model Solution Centres Consolidated O3b SES Video Reporting by vertical First SES GS/O3b win SES Networks SLAs with Facebook and TROJAN Network WAAS/GOLD hosted First electric propulsion First on flight-proven First on SpaceX (SES-8) payload agreements satellite (SES-9) rocket (SES-10) First hybrid and all- First O3b MEO satellites First SES+ products electric satellite (SES-15) HD+ Extra Screen First fully digital payload (SES-17) ▲ EUR 1.7 billion re-invested into new and profitable investments (2014-2016) ▲ Maintained commitment to progressive dividend per share ▲ Executed growth accelerators, while net debt to EBITDA kept below 3.3 times (2014-2016) Investor Day 2017 | 7 Delivering Sustained and Profitable Growth % of 2016 Market Revenue(1) Growth drivers opportunity Growing HD and UHD +2% CAGR Video 67% Expanding video platforms globally To USD 20 billion (2) Delivering hybrid solutions (by 2022) Enabling clients to extend connectivity +3% CAGR Fixed Data 13% To USD 8 billion Delivering end-to-end network solutions (by 2022)(3) Providing ‘home-equivalent’ experience +14% CAGR Mobility 7% To USD 5 billion Delivering end-to-end network solutions (by 2022)(3) Expanding government applications +7% CAGR Government 11% To USD 4 billion Delivering end-to-end network solutions (by 2022)(3) 1) Like for like (assuming that RR Media and O3b had been consolidated from 1 January 2016) 2) Source: NSR forecast revenue from satellite video capacity; playout, media asset management and teleport; online video platforms and ancillary services (2016-2022) 3) Source: NSR forecast revenue from satellite capacity (wide beam and HTS), network platform and service provision (2016-2022) Investor Day 2017 | 8 Aligning Go-to-market Organisation to Customer-centric Focus Creating two natural business units – SES Video and SES Networks Coalescing differentiated capabilities to bring the best of SES to each and every client SES’s differentiated value proposition ▲ Prime neighbourhoods in all global markets ▲ Highly efficient and cost effective distribution platform SES Video ▲ Fully integrated digital model ▲ World-leading media services provider ▲ End-to-end DTH and OTT platform capabilities ▲ Multi-layered, distributed (GEO-MEO) network SES Networks ▲ Flexible global coverage across multiple frequencies ▲ Scaling up integrated, end-to-end capabilities ( ) ▲ Reliable and scalable global ground network ▲ Long-standing relationships with global governments Investor Day 2017 | 9 Expanding, Enhancing and Innovating in Technology Increasing flexibility and ▲ Adding hosted payloads to replacement missions scalability ▲ Fully flexible digital processing in GEO and MEO Collaborating with customers ▲ EUR 1.1 billion contract backlog in Mobility during design phase SES-10 Credit: SpaceX Reducing time to market and increasing access to space ▲ First to launch on flight-proven Falcon-9 rocket Pursuing an open innovation ▲ enhancing multi-screen experience model and network architecture ▲ Enabling customer’s full choice of solutions Maximising capital efficiency ▲ Delivering 20% reduction in normalised CapEx vs. and profitability 2014 (one year ahead of schedule) Investor Day 2017 | 10 Supporting Growth With 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 Well positioned to deliver sustained and profitable growth and returns Investor Day 2017 | 11 BOLD STRATEGY ROADMAP Christophe De Hauwer, Chief Strategy and Development Officer Employing an Adaptive Strategy Roadmap Placing Customer-centricity at the core Developing an optimised and flexible technology model to best serve clients in each of the market verticals Optimised SES’s business models and capability system across the value chain to build long term partnerships with customers Shaping the ecosystem in the industry to continue to enhance, expand and innovate Investor Day 2017 | 13 Placing Customer-centricity at the Core Customers seeking for Deep customer insight flexible and scalable solutions 1 Enable customer Increasingly technology success agnostic and capabilities 5 focused 2 Consistency and alignment Building SES’s expertise and differentiated offering Customer centricity 4 Operational 3 Agility and efficiency responsiveness Investor Day 2017 | 14 Optimising SES’s Technology Model Providing flexible and scalable products and solutions Integrating technology evolution seamlessly Improving economics do drive increased usage H1 2017 H2 2017 2018/‘19 2020/+ SES-15 SES-12 SES- 16/ SES-14 O3b GEO/MEO- SES-17 (hybrid) (hybrid) GovSat (hybrid) Block-3 Next Shaped Shaped Shaped Steerable HTS Full hybrid Payload +HTS +HTS HTS +HTS spot beams + Full DTP + Full DTP + DTP + DTP Segments Aero IFC/IFE Aero IFC/IFE Backhaul LuxGovSat Anchor WAAS Aero IFC/IFE GOLD Maritime Aero IFC/IFE for NATO payload payload Government Investor Day 2017 | 15 Optimising SES’s Business Model and Commercial Approach SES Backend Infrastructure Experience Video provider provider provider Enhancing viewer experiences Expanding video globally Innovating with hybrid solutions Any device, anytime, anywhere SES Infrastructure Network Service Networks provider platform provider Enhancing differentiation Expanding network capabilities Innovating with services with new products and engagement Increasing addressable market Investor Day 2017 | 16 Shaping the Ecosystem in the Industry Shaping SES’s strategy and business model in tandem with market / industry foresights Expanded capabilities embrace hybrid SAT/IP environment “SES+” end-to-end products Enhanced monetisation, time-to-market Improved monetisation potential from 5 Hosted payloads: leverage fleet, to offer low 12 inclined orbit satellites cost to space and short time-to-market Bold Innovation Venture Capital Start-up incubator to maximise intelligence to test new ideas / business models Investor Day 2017 | 17 Bold Strategy Roadmap Build a strong capability system to execute on our strategy presently and in the future Lead the top four verticals with differentiated solutions that add value to our customers and enable their businesses Establish SES as the foremost provider of satellite enabled communications and media solutions Investor Day 2017 | 18 SHAPING FUTURE VIDEO EXPERIENCES Ferdinand
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