Investor Presentaiton
Video Distribution - 52% of group revenue
Robust high margin business delivering strong cash flows for reinvestment in future growth and return to shareholder
▲ Stable delivery, with robust underlying and high visibility
▲ Market forecast (NSR 2017)
Video satellite capacity (USD Million)
-0.8% CAGR
8,313
7,993
Revenue development (EUR Million)
1,120
24
1,100
22
A
1,054
1,096
1,077
1,044
Periodic: Revenue that is
not directly related to the
underlying business trends,
such as outright sale of
capacity, insurance
proceeds, interim satellite
missions
2017
2022
2015 LfL*
2016 LfL*
2017
Decline driven by Occasional use and C-band
distribution partially offset by Ku-band DTH
* At constant FX and assuming RR Media
had been consolidated on 1 January 2015
Recent performance
•
SES
Major renewals signed and secured
▲ Benefitting from cost reduction
.
CapEx savings: More efficient / less
satellites
Extend life of existing assets with first
space refueling
Underlying: Reflects
business trends, can be
impacted by health, portfolio
adjustment like in 2017
SES to support Broadcaster / Pay-TV business model: Monetise content to deliver best Video experience to end-viewer
(B) Maximise content costs with enhanced definition for a marginal cost
▲ 80% Content costs
A
-15% SG&A
▲ ~5% Distribution
A Europe (>30% of group revenue)
leading in most valuable markets
SES
A
(BBB optimise backend activities with MX1 economies of scale
Deliver anywhere video content at a flat cost with high reliability enabling a full control of end
viewer experience to our customer
North America (<10% of group revenue)
Complete satellite lease with EchoStar for 2/3 and
over 4,500 cable headends reach for
Tailwinds: Development of UHD platform
2017 Total TV
Direct to
Cable / IPTV
SES reach
households (million)
Home
feeds
Germany - 39M
94%
45%
49%
UK - 26M
68%
45%
25%
#C4K360
France - 28M
58%
18%
40%
FASHION ONE 4K
nature
relaxation
travelxp
FUN 4K
BOX TRAD
BEYOND TV
A
International (>10% of group revenue)
LATAM, MEA, Asia Pacific
Tailwind: "Virtuous DTH circle":
B
Platform gaining audience
Attract more broadcasters
Leading to improved offering
Leading to more households
And growing in Eastern Europe
Tailwind: Growth from HD transition
A Headwinds: Potential reduction in channel
distribution: "Long tail channels"
4KUNIVERSE
SES
UHD1
INSIGHT
beyond fronters
NASA UHD
harmonic
Headwinds: Reduction in channel distribution:
"skinny bundling"
A
Headwind: Lower pricing than developed markets
and potential regulatory issues
Resilient cash flow streams as satellite remains core to customer business model, with some growth opportunities with UHD and in emerging markets
SES investor presentation I September 2018
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