Investor Presentaiton
Business Transformation and Value of Differentiation
SES'
SES is undergoing a significant business transformation, leveraging its leadership position in Video to accelerate the development of
Networks businesses to benefit from growing connectivity needs and by investing in new capabilities to improve Video resilience
Ongoing transformation articulated around three main pillars:
▲ Value chain expansion: providing more than
satellite capacity
▲ Improved capital efficiency due to technology ▲ Expand addressable markets also with
and innovation
distribution partners
Enabled by targeted investments with EUR 3 billion spent on new internal (CapEx) / external (acquisitions) investments between 2014 and 2017
O3b MEO full acquisition in 2016 for EUR 639 million plus EUR 1,220 million of additional debt
▲ Priority frequency rights for MEO orbit, fastest growing satellite operator relying on unique "fibre in the sky" network and already building the next
generation of MEO constellation with: 03b mPOWER the First global unique multi-terabit network
MX1 creation following the acquisition of RR Media in 2016 for EUR 216 million and its integration with SES Platform Solutions business
▲ Combining traditional satellite with latest video consumption trends to offer complete solutions to broadcasters
Organic Investments SES-9 and SES-10 for Video and for Networks: SES-16/SES-15/SES-12/SES-14/SES-17 all co-designed with customers
▲ Integration of latest technologies to reduce costs: re-usable rockets / modular manufacturing and business case validated
Leading to Differentiation
across the two business units
in April 2017:
SES Video and SES Networks
Customer
engagement
Industry business model
SES Video and MX1
Industry business model
the
▲ Partially rely on reseller
▲ Direct to customer
▲ 3-6 month lead time
Customer insight
▲ Limited
▲ New customer facing structure
▲ New products/solutions range
▲ New internal organisation and
recruitment of segment experts
→ To develop new business models:
Service level
▲ Bandwidth-only
▲ High, mutual incentive to
grow reach and experience
▲ Complete range of video
operations
▲ Limited
▲ Bandwidth-only
Service longevity
▲ 3 to 10 years
▲ ~10 years with strong
partnerships
▲ ~1-3 years
▲ Commoditised pricing
Economics
▲ Partial sharing of profit
with reseller
▲ Pricing based on strong
Neighbourhood / Reach
▲ Limited up-front OpEx
SES Networks
▲ 6+ months lead time
▲ High, with close
partnerships
▲ Fully managed/end-to-end
network solutions
▲ >5 years with higher
renewal potential
▲ Value-based pricing
▲ Higher up-front OpEx to
deploy network
Business Transformation enables growth with future-proof differentiation, stickier customer relationships and requires dedicated competencies to build
SES investor presentation I September 2018
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