Investor Presentaiton
SES Networks - Market Dynamics
SES
Connectivity needs are booming and satellite has a role to play
Global IP traffic(1)
Exabytes (2) per month
96
2016 2017
278
■Fixed Internet
2018 2019 2020 2021
Managed IP ■ Mobile data
SES addresses high growth markets
Global active VSAT sites (3)
million
▲ People and organisations expect to be connected everywhere, all the
time, creating exponential rates of growth in demand for data
▲ By 2021, total satellite capacity is forecast to be 12 Tbps (3). For reference
Global average internet traffic is forecast to be 717 Tbps in 2021(1)
▲ For satellite to be relevant, it needs to be fully integrated in telco
ecosystem: implying capabilities in network management, resilience and
in some cases low latency
Connected planes and ships(3)
Satellite-connected drones(3)
39,645
3.54
34,645
2.48
2.82
31,645
1,483
23,376
818
1,018
14,934
8,390
2017
2020
2025
2017
2020
2025
■Planes
Ships
With unique capabilities - competitive advantages
2017
2020
2025
Unique combination of GEO-MEO and terrestrial Network solutions providing unrivalled performance, coverage,
scalability and flexibility with improved economics
A Seamless integration into terrestrial networks with SES being the only satellite operator granted with Telco
industry certification (MEF CE 2.0) enabling SES to play beyond traditional markets
New products range dedicated to specialised markets, with best-in-class customer service delivery (CSD)
(including fulfilment, maintenance and network analytics) complemented, when necessary, by a robust global
network of highly specialized distribution partners
SES Opportunities
▲ 'Big Data' and 'Internet of things':
More devices / people to connect
having all bigger data needs
▲ Connectivity becomes a right:
'Universal Service Obligation'
subsidies from governments
▲ High growth potential in maritime
and aero market
▲ Government increasing focus on
surveillance and intelligence
capabilities implies more satellite
▲ Further technologies leading to a
further use of satellite (connected
car, machine to machine, 5G)
SES Challenges
▲ Obsolescence of existing fleet if
no update-ability in place
▲ Commoditised supply exposing
part of business to price pressure
▲ Value chain expansion leading to
cannibalisation if no defined go-
to-market strategy in place
▲ Roll out of LEO constellations
driving pricing further down
To benefit from exponential growth of data demand satellite needs to develop capabilities to be fully part of telecommunications ecosystem
2) 1 Exabyte = 1 million terabytes
1) Cisco
SES investor presentation I September 2018
3) NSR
10
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