Press release

SES: First Quarter 2019 Results

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SES S.A. announced its financial results for the three months ended 31
March 2019 with revenue and EBITDA in line with company expectations and
SES on track to deliver on its 2019 financial outlook. Continued focus
on execution has delivered major wins in the Networks business which is
soon to be enhanced with the addition of four new O3b satellites,
successfully launched at the beginning of April 2019.

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First Quarter 2019 Results

First Quarter 2019 Results

Key financial highlights

  • Reported revenue of EUR 480.6 million, (down 2.3% at constant FX(1))
    in line with SES’ expectations
  • Underlying revenue(2) of EUR 473.9 million; down 3.1%(1)
    (Video: -7.3%(1,2) and Networks +5.4%(1,2))
  • EBITDA of EUR 290.1 million representing a margin of 60.4% (Q1 2018:
    63.7%); 62.1% excluding restructuring charge
  • Net profit attributable to SES shareholders of EUR 72.2 million
  • Free Cash Flow before financing activities of EUR 84.3 million with
    investing activities lower by 31.7% (YOY)
  • Financial outlook unchanged
    Change (%)
EUR million Q1 2019   Q1 2018 Reported   Constant FX(1)
Revenue 480.6 477.6 +0.6% -2.3%
EBITDA 290.1 304.4 -4.7% -7.0%
Operating profit 113.2 138.8 -18.4% -19.2%
Net profit attributable to SES shareholders 72.2 98.2 -26.5% n/a
Basic earnings per A share   EUR 0.13   EUR 0.19   -31.6%   n/a

1) Comparative figures are restated at constant FX to
neutralise currency variations

2) Excluding periodic and other revenue (disclosed separately)
that are not directly related to or would distort the underlying
business trends

 

Steve Collar, President and CEO, commented: “We have made a solid
start to 2019 with our Q1 results fully in line with our expectations.
We have delivered another good quarter in our Networks business,
building on an outstanding year of double-digit growth in 2018. Strong
focus on cost control, along with the ongoing flattening and reshaping
of our organisation around our customers, is yielding positive results.

Our recent customer success with Ritz-Carlton, our managed services
expertise for unmanned civilian aviation with EMSA and our
cloud-enabling capabilities with Resolute Mining create unique value to
our customers and sustain growth. In addition, the recent entry into
service of SES-12 over Asia-Pacific and the announcement of a
significant anchor customer in Indonesia with Teleglobal will help us to
continue to outperform the market and to deliver on our 2019 outlook. We
look forward to the entry into service in early Q3 of the four
additional O3b satellites recently launched, completing the original
constellation and paving the way for O3b mPOWER in 2021.

Notwithstanding challenging market conditions in Video, SES’ reach
continued to grow and we now deliver prime video content to over 355
million households or one billion people across our video neighbourhoods
around the world. The recent deals we signed with Discovery, Nordic
Entertainment Group and Crown Media highlight our approach to partner
with the biggest broadcasters to deliver the best services and viewing
experiences anywhere to any device. In addition, we continued to expand
our international footprint with new partnerships such as Benin and our
growing technical reach in Africa, Asia Pacific and Latin America.

In parallel, SES and its CBA partners continued to work closely with the
FCC, content owners, cable operators and other engaged stakeholders to
deliver a transparent, fair and agile adoption of 5G in the United
States.”

Key business highlights

  • Group revenue was EUR 480.6 million for Q1 2019 (-2.3% at constant FX
    compared with the prior period). Underlying revenue (excluding
    periodic and other) reduced by 3.1% (year-on-year) at constant FX to
    EUR 473.9 million. There was EUR 6.7 million of periodic and other
    revenue in Q1 2019 (Q1 2018: EUR 3.1 million).
  • Video underlying revenue of EUR 303.3 million was 7.3% lower
    (year-on-year) at constant FX due to lower video distribution revenue
    (-8.1%), including in the North American wholesale business, while
    video services was down (-4.5%) compared with the same period last
    year due to the non-renewals of low margin, ‘legacy’ services in MX1.
  • Networks’ underlying revenue grew by 5.4% (year-on-year) at constant
    FX to EUR 170.6 million driven by growth in Government (+9.6%) and
    Mobility (+8.7%) while Fixed Data (-1.3%) was slightly lower than Q1
    2018.
  • EBITDA of EUR 290.1 million (down 7.0% at constant FX) represented an
    EBITDA margin of 60.4%, or 62.1% excluding a restructuring charge of
    EUR 8.3 million associated with the group’s ongoing optimisation
    initiatives.
  • Net profit attributable to SES shareholders was EUR 72.2 million
    compared with EUR 98.2 million in Q1 2018 with the variance mainly
    driven by the combination of a lower EBTIDA and higher depreciation
    and amortisation.
  • Free Cash Flow before financing was EUR 84.3 million, including a
    31.7% (year-on-year) reduction in investing activities.
  • Net debt to EBITDA ratio (per the rating agency methodology) was 3.40
    times at Q1 2019 (Q1 2018: 3.41 times) and is expected to be at or
    below 3.3 times at the end of 2019, in line with SES’ commitment to
    investment grade status.
  • SES’s fully protected contract backlog at 31 March 2019 was EUR 6.7
    billion (gross backlog of EUR 7.3 billion when including backlog
    subject to contractual break clauses).
  • SES’ transformation continued in the first quarter of 2019 with
    certain organisational changes, flattening layers within the
    organisation, bringing together all Technology and IT functions under
    common leadership and forming a Global Services team to drive customer
    service and success across SES. Finance and other support functions
    were also realigned to optimally support the business. In Q1 2019, SES
    began bringing together the SES video infrastructure business with
    MX1, which will enhance the value of SES’ service capabilities to our
    core video customers. This will be completed by Q3 2019.
  • The financial outlook, as presented in February 2019, is unchanged
    with 2019 group revenue of EUR 1,975 – 2,040 million and 2019 group
    EBITDA of EUR 1,220 – 1,265 million (excluding a restructuring charge
    of EUR 25 – 30 million expected to be recognised in 2019 as noted
    above). Expected capital expenditure (representing the net cash
    absorbed by the group’s investing activities excluding acquisitions
    and financial investments) also remains unchanged for the period 2019
    to 2023 with EUR 450 million planned in 2019.

OPERATIONAL REVIEW

REVENUE BY BUSINESS UNIT

    Change (%)
EUR million Q1 2019   Q1 2018 Reported   Constant FX
Video 304.1 324.4 -6.2% -7.8%

– Underlying

303.3 321.5 -5.6% -7.3%

– Periodic

0.8 2.9 n/m n/m
Networks 176.4 153.0 +15.3% +8.9%

– Underlying

170.6 153.0 +11.5% +5.4%

– Periodic

5.8

n/m n/m
Sub-total 480.5 477.4 +0.6% -2.3%

– Underlying

473.9 474.5 -0.1% -3.1%

– Periodic

6.6 2.9 n/m n/m
Other(1) 0.1 0.2 n/m n/m
Group Total   480.6   477.6   +0.6%   -2.3%

“Underlying” revenue represents the core business of capacity
sales, as well as associated services and equipment. This revenue
may be

impacted by changes in launch schedule and
satellite health status. “Periodic” revenue separates revenues
that are not directly related to or

would distort the
underlying business trends on a quarterly basis. Periodic revenue
includes: the outright sale of transponders or transponder

equivalents;
accelerated revenue from hosted payloads during the course of
construction; termination fees; insurance proceeds; certain interim

satellite
missions and other such items when material.

1) Other includes revenue not directly applicable to Video or
Networks

 

Q1 2019 underlying revenue of EUR 473.9 million was EUR 15.1 million (or
-3.1%) lower at constant FX, compared with the prior year. Total group
revenue included periodic and other revenue of EUR 6.7 million (Q1 2018:
EUR 3.1 million).

Video: 63% of group revenue (Q1 2018: 68%)

VIDEO REVENUE BY VERTICAL

    Change (%)
EUR million Q1 2019   Q1 2018 Reported   Constant FX
Video Distribution 229.2 247.2 -7.3% -8.9%

– Underlying

228.4 244.3 -6.5% -8.1%

– Periodic

0.8 2.9 n/m n/m
Video Services 74.9 77.2 -2.9% -4.5%

– Underlying

74.9 77.2 -2.9% -4.5%

– Periodic

n/m n/m
Video (total) 304.1 324.4 -6.2% -7.8%
– Underlying 303.3 321.5 -5.6% -7.3%
– Periodic   0.8   2.9   n/m   n/m
 

Video underlying revenue of EUR 303.3 million was EUR 23.8 million (or
7.3%) lower at constant FX than the prior year. Total Video revenue
included EUR 0.8 million of periodic revenue which was lower than the
EUR 2.9 million recognised in Q1 2018.

At 31 March 2019, SES is now delivering 8,289 total TV channels to
viewers around the world, representing an increase of 7% (year-on-year).
This was driven by the expansion of new channels in International and
Eastern Europe, as well as further HD adoption in Western Europe; which
more than compensated for a reduction in North America. Overall, SES is
now distributing 2,828 channels in high definition (up 6% year-on-year)
and 43 commercial Ultra High Definition channels (up 34% year-on-year).
67% of total TV channels are now broadcast in MPEG-4, or 70% also
including HEVC.

In 2018, SES served a total of 355 million TV households (compared with
351 million households in 2017) across its video neighbourhoods.
European reach remained solid with 167 million or over 60% of all TV
households in Europe relying on SES for their video content (in line
with 2017). North American reach slightly reduced to 72 million (from 75
million) but remains key for over 60% of TV households in the U.S. In
International markets SES reach expanded to 116 million TV households
mainly driven by growth in Asia-Pacific, Africa and Latin America.

Video Distribution

Q1 2019 underlying revenue was 8.1% lower (constant FX) than the prior
year.

As expected, North American revenue decreased, primarily driven by the
reduction in wholesale business related to a specific satellite used by
a single customer. The ongoing switch-off of Standard Definition TV
channels, which had already been replaced with HD TV channels, also
contributed to the lower (year-on-year) revenue development in this
region.

In Europe, the effect of certain long-term renewals secured in late 2018
and the reversal of some short-term capacity contracts that ended in Q3
2018 led to lower (year-on-year) revenue.

While trading conditions remain challenging, SES is making progress in
its International business with new customers signed during 2018, albeit
not yet fully offsetting the impact of challenges in specific markets
that was experienced in 2018.

Video Services

Underlying revenue was down (-4.5%) with the prior year.

HD+ was stable (year-on-year) and the business recently secured
important wins as Panasonic and Samsung both announced that their new TV
sets sold in Germany will include the HD+ software, enabling consumers
to access the HD+ platform without requiring a set-top box.

In MX1, the discontinuation of certain low-margin, ‘legacy’ services led
to lower revenue (year-on-year). This has continued to hold back the
contribution from customer adoption of the MX1 360 platform and the
sports and events business which is gaining traction.

As announced in February 2019, the implementation of SES initiative to
integrate the MX1 video services business with the core video
infrastructure operations, was started in Q1 2019 and is progressing
well and will be completed by Q3 2019.

Networks: 37% of group revenue (Q1 2018: 32%)

NETWORKS REVENUE BY VERTICAL

    Change (%)
EUR million Q1 2019   Q1 2018 Reported   Constant FX
Government 68.5 59.4 +15.3% +9.6%

– Underlying

68.5 59.4 +15.3% +9.6%

– Periodic

n/m n/m
Fixed Data 58.7 56.2 +4.6% -1.3%

– Underlying

58.7 56.2 +4.6% -1.3%

– Periodic

n/m n/m
Mobility 49.2 37.4 +31.3% +23.2%

– Underlying

43.4 37.4 +15.9% +8.7%

– Periodic

5.8 n/m n/m
Networks (total) 176.4 153.0 +15.3% +8.9%

– Underlying

170.6 153.0 +11.5% +5.4%

– Periodic

  5.8     n/m   n/m
 

Underlying revenue of EUR 170.6 million was EUR 8.7 million (or 5.4%)
higher at constant FX, compared with Q1 2018, reflecting strong growth
in Mobility and Government and robust performance in Fixed Data. There
was EUR 5.8 million of periodic revenue Q1 2019 (none in Q1 2018).

Government

Underlying revenue grew by 9.6% (year-on-year) in Q1 2019, reflecting
further growth in both U.S. and Global Government businesses.

U.S. Government continued to grow supported by both new MEO missions
enabled by the blanket purchase agreement and GEO-enabled network
solutions.

Strong growth in Global Government was delivered across the portfolio by
the momentum on humanitarian and peacekeeping operations, institutional
projects and the full quarter contribution of GovSat-1 in Q1 2019 which
was not yet in service in Q1 2018.

Fixed Data

Q1 2019 underlying revenue was down 1.3% (year-on-year) at constant FX.

Growth was reported in the Americas, supported by new and incremental
services to Telcos and MNOs to deploy their mobile and enterprise
networks and in the Energy segment especially due to new MEO services
provided to leading service providers in the industry.

However, lower revenue from wholesale capacity and equipment sales in
EMEA and Asia-Pacific led to overall Fixed Data revenue being slightly
lower than Q1 2018 as this is yet to be offset by customer upgrades and
new business that is expected to drive future growth.

Mobility

Underlying revenue grew by 8.7% (year-on-year) at constant FX.

Aeronautical once again delivered strong growth driven by the steady
increase in the fill rate of SES-15 over the last 12 months which
enabled the provision of much demanded bandwidth and services to Aero
Service Providers supporting North and Latin American airlines. This
growth was furthered by the expansion of SES’ Ka-based aero network.

In Maritime, the cruise segment continued to lead growth with the
expansion of agreements with existing cruise customers and contributions
from new cruise operators signed. As a result, SES is now supporting
four of the top five global cruise operators, representing significant
vessel expansion potential.

Future satellite capacity and fleet update

COMMITTED LAUNCH SCHEDULE

Satellite   Region   Application   Launch Date
O3b (satellites 17-20) Global Fixed Data, Mobility, Government Launched (4 April 2019)
SES-17 Americas Fixed Data, Mobility, Government H1 2021
O3b mPOWER (satellites 1-7)   Global   Fixed Data, Mobility, Government   H1 2021
 

At the end of February 2019 SES-12 started to operate at 95° East,
co-located with SES-8, and is relying on its combination of wide-beam
and HTS capacities to deliver new services over the Asia-Pacific region.

In April 2019, the final four O3b satellites (satellites 17-20) were
launched, completing the first generation of SES’ successful and unique
MEO constellation. These additional satellites will enhance coverage
across the globe and enable SES Networks to provide greater service
availability and reliability.

FINANCIAL REVIEW

Income Statement

REVENUE, OPERATING EXPENSES AND EBITDA

EUR million

 

Q1 2019   Q1 2018   Change   Change (%)
Revenue 480.6 477.6 +3.0 +0.6%
Revenue (constant FX) 480.6 492.1 -11.5 -2.3%
         
Operating expenses (190.5) (173.2) -17.3 -10.0%
Operating expenses (constant FX) (190.5) (180.1) -10.4 -5.8%
         
EBITDA 290.1 304.4 -14.3 -4.7%
EBITDA (constant FX)   290.1   312.0   -21.9   -7.0%
 

Reported revenue was in line with the prior period and included
the benefit of the stronger U.S. Dollar in Q1 2019 compared with the
same period in 2018. However, at constant FX, revenue decreased by EUR
11.5 million (or 2.3%) with lower Video revenue partially offset by
strong growth in Networks.

Operating expenses were EUR 17.3 million higher as reported (or
EUR 10.4 million at constant FX) and included a restructuring charge of
EUR 8.3 million as part of the company’s ongoing optimisation
initiatives (Q1 2018: EUR 5.0 million). Excluding the restructuring
charge, operating expenses increased by EUR 7.1 million at constant FX
driven by the investment in Networks while cost of sales was slightly
lower year-on-year.

Group EBITDA of EUR 290.1 million represented an EBITDA margin of
60.4% (Q1 2018: 63.7%), or 62.1% excluding the restructuring charge
noted above.

DEPRECIATION, AMORTISATION AND OPERATING PROFIT

EUR million   Q1 2019   Q1 2018   Change   Change (%)
Depreciation expense (156.4) (147.0) -9.4 -6.4%
Amortisation expense (20.5) (18.6) -1.9 -10.1%
Depreciation and amortisation expense (176.9) (165.6) -11.3 -6.8%
Depreciation and amortisation expense (constant FX) (176.9) (171.9) -5.0 -2.9%
         
Operating profit 113.2 138.8 -25.6 -18.4%
Operating profit (constant FX)   113.2   140.1   -26.9   -19.2%
 

Reported depreciation and amortisation expense increased by EUR
5.0 million compared with the prior year (at constant FX) reflecting the
entry into service of new satellites since 31 March 2018.

Operating profit represented an operating profit margin of 23.6%
(Q1 2018: 29.1%), or 25.3% excluding the restructuring charge as noted
above.

PROFIT ATTRIBUTABLE TO SES SHAREHOLDERS

EUR million   Q1 2019   Q1 2018   Change   Change (%)
Net interest expense and other (44.3) (45.8) +1.5 +3.3%
Capitalised interest 3.9 9.5 -5.6 -58.8%
Net foreign exchange gains 2.6 0.4 +2.2 n/m
Net financing costs (37.8) (35.9) -1.9 -5.6%
Profit before tax 75.4 102.9 -27.5 -26.7%
         
Income tax (expense) / benefit (7.2) 10.1 -17.3 n/m
Profit after tax 68.2 113.0 -44.8 -39.7%
         
Non-controlling interests 4.0 (14.8) +18.8 n/m
Profit attributable to SES shareholders 72.2 98.2 -26.0 -26.5%
         
Coupon on hybrid (perpetual) bond, net of tax (11.8) (11.8)
Adjusted profit attributable to SES shareholders 60.4 86.4 -26.0 n/m
Basic earnings per Class A share (in EUR)   0.13   0.19   -0.06   -31.6%
 

Net financing costs were EUR 1.9 million higher than the prior
period with lower interest expenses and FX gains being offset by lower
capitalised interest, as some recent space and ground investments are
now in service and ramping up.

The year-on-year comparison of income tax expense and non-controlling
interests
is affected by the one-off impact associated with
the recognition of a deferred tax asset in Q1 2018 and its corresponding
impact on non-controlling interests.

Net profit attributable to SES shareholders of EUR 72.2 million
(Q1 2018: EUR 98.2 million) represented basic earnings per share
of EUR 0.13 (Q1 2018: EUR 0.19) after deducting the assumed coupon (net
of tax) for the group’s hybrid (perpetual) bonds.

Financing

SES’ net debt to EBITDA ratio (per the rating agency methodology
and representing the ratio of net debt plus 50% of the group’s EUR 1.3
billion of hybrid bonds, divided by the last 12 months’ EBITDA) was 3.40
times at Q1 2019 (Q1 2018: 3.41 times). This increased from 3.29 times
at Q4 2018 due to the strengthening of the U.S. Dollar, the small
decrease in the last 12 months rolling EBITDA and the higher proportion
of interest payments in Q1 2019. Net debt to EBITDA is expected to be at
or below 3.3 times at the end of 2019.

In March 2019, SES repaid a USD 500 million bond, partially using the
proceeds from the Schuldschein completed in Q4 2018. No further senior
debt instrument is maturing in the year, with the next maturity relating
to a Eurobond of EUR 650 million in March 2020.

CONSOLIDATED INCOME STATEMENT

FOR THE QUARTER ENDED 31 MARCH

EUR million   Q1 2019   Q1 2018
Revenue 480.6 477.6
     
Operating expenses(1) (190.5) (173.2)
EBITDA(2) 290.1 304.4
     
Depreciation expense (156.4) (147.0)
Amortisation expense (20.5) (18.6)
Operating profit 113.2 138.8
     
Net financing costs (37.8) (35.9)
Profit before tax 75.4 102.9
     
Income tax benefit/(expense) (7.2) 10.1
Profit after tax 68.2 113.0
     
Non-controlling interests 4.0 (14.8)
Profit attributable to owners of the parent 72.2 98.2
     
Basic earnings per share (in EUR)(3)    
Class A shares 0.13 0.19
Class B shares   0.05   0.08

1) Includes EUR 8.3 million of restructuring charges in Q1 2019
and EUR 5.0 million in Q1 2018

2) Earnings before interest, tax, depreciation, amortisation
and share of associates’ result (net of tax)

3) Earnings per share is calculated as profit attributable to
owners of the parent divided by the weighted average number of
shares outstanding

during the year, as adjusted to
reflect the economic rights of each class of share. For the
purposes of the EPS calculation only, the net profit

for
the year attributable to ordinary shareholders has been adjusted
to include the assumed coupon, net of tax, on the perpetual bonds.
Fully

diluted earnings per share are not significantly
different from basic earnings per share

 

Supplementary information:

QUARTERLY INCOME STATEMENT (AS REPORTED)

EUR million   Q1 2018   Q2 2018   Q3 2018   Q4 2018   Q1 2019
Average EUR/USD exchange rate 1.2221 1.2033 1.1682 1.1418 1.1451
           
Revenue 477.6 503.8 488.0 540.9 480.6
Operating expenses (173.2) (187.1) (181.4) (213.1) (190.5)
EBITDA 304.4 316.7 306.6 327.8 290.1
EBITDA margin 63.7% 62.9% 62.8% 60.6% 60.4%
           
Depreciation and impairment expense (147.0) (156.5) (160.2) (255.3) (156.4)
Amortisation and impairment expense (18.6) (21.3) (19.8) (85.7) (20.5)
Operating profit 138.8 138.9 126.6 (13.2) 113.2
Operating profit margin 29.1% 27.6% 26.0% -2.5% 23.6%
           
Net financing costs (35.9) (39.3) (36.3) (34.8) (37.8)
Profit before tax 102.9 99.6 90.3 (48.0) 75.4
           
Income tax benefit/(expense) 10.1 30.8 (13.6) 14.6 (7.2)
           
Non-controlling interests (14.8) (0.9) (0.7) 22.1 4.0
Profit attributable to owners of the parent 98.2 129.5 76.0 (11.3) 72.2
           
Basic earnings per share (in EUR)(1)          
Class A shares 0.19 0.26 0.14 (0.05) 0.13
Class B shares   0.08   0.10   0.06   (0.02)   0.05

1) Earnings per share is calculated as profit attributable to
owners of the parent divided by the weighted average number of
shares outstanding

during the year, as adjusted to
reflect the economic rights of each class of share. For the
purposes of the EPS calculation only, the net profit

for
the year attributable to ordinary shareholders has been adjusted
to include the coupon, net of tax, on the perpetual bonds. Fully
diluted

earnings per share are not significantly
different from basic earnings per share

 

QUARTERLY OPERATING PROFIT (AT CONSTANT FX)

EUR million   Q1 2018   Q2 2018   Q3 2018   Q4 2018   Q1 2019
Average U.S. dollar exchange rate 1.1451 1.1451 1.1451 1.1451 1.1451
Revenue 492.1 515.7 492.9 540.2 480.6
Operating expenses (180.1) (193.1) (183.6) (212.5) (190.5)
EBITDA 312.0 322.6 309.3 327.7 290.1
EBITDA margin 63.4% 62.6% 62.8% 60.7% 60.4%
           
Depreciation and impairment expense (153.0) (161.4) (162.4) (255.1) (156.4)
Amortisation and impairment expense (18.9) (21.5) (19.9) (85.4) (20.5)
Operating profit 140.1 139.7 127.0 (12.8) 113.2
Operating profit margin   28.5%   27.1%   25.8%   -2.4%   23.6%
 

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Presentation of Results:

A presentation of the results for investors and analysts will be hosted
at 9.30 CEST on 26 April 2019, and will be broadcast via webcast
and conference call. The details for the conference call and webcast are
as follows:

Belgium       +32 (0) 2 400 9874/ 0800 48740
France +33 (0) 1 76 70 07 94/ 0805 103 028
Germany +49 (0) 6924437351/ 0800 723 4866
Luxembourg +352 2786 0515/ 800 24782
U.K. +44 (0) 2071 928000/ 0800 376 7922
U.S.A. +1 631 510 7495/ 1866 966 1396
Conference code:

8464256

Webcast registration:

https://edge.media-server.com/m6/go/SES_19Q1

 

The presentation will be available for download from the Investors
section of the SES website (www.ses.com),
and a replay will be available for two weeks from the Investors section
of the SES website.

About SES

SES is the world’s leading satellite operator with over 70 satellites in
two different orbits, Geostationary Orbit (GEO) and Medium Earth Orbit
(MEO). It provides a diverse range of customers with global video
distribution and data connectivity services through two business units:
SES Video and SES Networks. SES Video reaches over 351 million TV homes,
through Direct-to-Home (DTH) platforms and cable, terrestrial, and IPTV
networks globally. The SES Video portfolio includes MX1, a leading media
service provider offering a full suite of innovative services for both
linear and digital distribution, and the ASTRA satellite system, which
has the largest DTH television reach in Europe. SES Networks provides
global managed data services, connecting people in a variety of sectors
including telecommunications, maritime, aeronautical, and energy, as
well as governments and institutions across the world. The SES Networks
portfolio includes GovSat, a 50/50 public-private partnership between
SES and the Luxembourg government, and O3b, the only non-geostationary
system delivering fibre-like broadband services today. Further
information is available at: www.ses.com

Disclaimer

This presentation does not, in any jurisdiction, and in particular not
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.

No representation or warranty, express or implied, is or will be made by
SES, its directors, officers or advisors or any other person as to the
accuracy, completeness or fairness of the information or opinions
contained in this presentation, and any reliance you place on them will
be at your sole risk. Without prejudice to the foregoing, none of SES or
its directors, officers or advisors accept any liability whatsoever for
any loss however arising, directly or indirectly, from use of this
presentation or its contents or otherwise arising in connection
therewith.

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.