Ses Sa Glbl Fid Dep Shs

Thanks, Laura. Good morning, everyone. Thanks for joining this analyst investor call for the Q1 2023 results. This morning's presentation was uploaded along with the press release to the investor section at ses.com if you don't already have it. As always, please note the disclaimer at the back of the document. In a moment, Steve Collar, our CEO, will present the main business highlights, followed by Sandeep Jalan, our CFO, to cover the financials in a bit more detail. After some closing remarks from Steve, we will take your questions. So with that, I hand over to Steve.

Thanks, Richard. Good morning, everyone. Thanks for joining us. And we've started the year well with a solid set of results for Q1, strong traction in the market with good sales momentum and excellent progress on both O3PM Power and our Seabound project. Revenue and adjusted EBITDA were fully in line with our expectations and consistent with the full year outlook, which is unchanged and on track. Close to double-digit revenue growth, as reported, reflects the contribution from our acquisition of DRS GES, while solid EBITDA performance underscores our continued focus on execution across the business. We're performing strongly in mobility, up almost 15% year-on-year, and driving growth overall in networks, while in video we continue to flatten the revenue trajectory with more than €110 million of renewal business signed in the quarter on good commercial terms for SES. Some of you may have caught the OTBM power launch last week, bringing us to four satellites in orbit. And with the last two of the initial constellation launching in early June, we remain on track to start commercial service at the end of Q3, with customers ramping onto the system during Q4. In more good news, the first two satellites have completed orbit raising and have begun in-orbit checkout. We formed our first beams over the satellites, and the performance looks great. Commercially, we continue to gain traction, and significantly this quarter, Luxembourg's Ministry of Defence announced the MEO Global Services Programme, through which the Ministry intends to acquire services on O3B Empower to support Luxembourg and its NATO partners, establishing O3B Empower at the heart of defence and security across Europe. And we've added another strategic programme to our list, with the Iris Squared project, and the recent announcement that we've partnered with Europe's leading space and telecom operators and manufacturers to develop what we believe will be a compelling, secure, multi-orbit architecture to serve Europe and its citizens for decades to come. We're bringing our multi-orbit credentials to the consortium, and given the ambitious timelines for the Commission, the solution will likely leverage the best of existing and new infrastructure. And finally, on CBAM, with the successful launch of the two remaining satellites, our project to clear 5G spectrum across the U.S. is entering its final phase. We're very much on track to complete clearing and earn an additional $3 billion in accelerated clearing payments before year end while we continue to make progress with the clearinghouse for the pending $600 million in cost reimbursements. So I'll now move to page four and more detail on our network segments that together drove 3% increase year on year. The cruise market continued its robust trajectory and drove a significant pickup for SES as we equipped a number of new cruise vessels ahead of delivering connectivity services. All of our cruise customers assigned to O3BN Power and we expect to have a number of vessels already transitioned to O3BN Power this year. Government and fixed data were largely flat year on year with government showing a positive trend and fixed data benefiting from periodic revenue relating to a transponder cell. We have significant traction in the market across all our network's verticals, with €340 million of business signed since the start of the year. Notable successes include incremental capacity and services signed on GovSat, and some good pickup more generally in our global government business. Several renewals with US Space Force and DISA, including the renewal of the Army WNT network, the renewal and extension of services for CNT in Galapagos, including transition to O3VM power, new mobile backhaul and rural connectivity project wins with CFE in Mexico ultimately growing to more than 1,000 sites, a substantial commitment on SES-17 for aviation services that will expand the number of aircraft supported on the satellite, and recent wins in both business aviation and cruise, the latter representing a number of new cruise vessels signed to O3VM power. And looking ahead to O2B Empower, I continue to be excited by the potential that we have to offer secure sovereign services from MEO, underscored by Luxembourg's intention to establish the MGS program, as I described. The program will authorize the acquisition of O2B Empower services valued at close to 200 million euros over 10 years in the areas of defense, security, and disaster recovery. Importantly, MGS is also the anchor for the framework agreement signed between Luxembourg and the US late last year. the so-called Global Commercially Contracted Satellite Communications Support Partnership established under the NATO Support and Procurement Agency. This establishes O3D Empower as not only the workhorse for NATO in the protection of Europe and its borders, but also as the strategic medium Earth orbit layer in the U.S. DOD space infrastructure. So with that, I'll turn to page five and our video business, where again, we have a good quarter securing renewals on good commercial terms. Business performance is fully in line with our expectations, with revenues lower by 5% year-on-year, excluding the one-off termination payment from Nordic Entertainment last year. We have the best neighborhoods in the industry, as demonstrated by our network reach, serving 369 million TV homes. And since the start of 2022, we've secured well over half a billion in new backlog, including 110 million euros of incremental business signed in Q1. Most notable deals include 75 million euros worth of contracts with key public and private broadcasters, including QVC, ZDF, 7.1, NBS, and Highview in Germany, where we serve more than 17 million satellite homes. Pricing on renewal continues to reflect the pricing power gained by virtue of the large neighborhoods that we operate and the value creation generated from the audiences across our platforms. Also of note, more than 20% of our video contracts and revenues benefit from indexation clauses, adding to the solid long-term cash generation fundamentals of the business, evidenced by our video backlog, which stands at 2.5 billion euros. And finally, from me on page six, in addition to business execution, our main focus for 2023 is to deliver C-band clearing and to commercially launch OVB Empower. As I mentioned, we now have four of the six satellites needed for the initial O2B Empower constellation successfully launched and in orbit. The final two have completed their major testing, will ship from Boeing this month, and will launch in early June. We're on track to declare O2B Empower operational and in service at the end of Q3, with customers ramping onto the system through Q4. Satellites 7 and 8 are following along pretty closely behind. While on the ground, everything is ready with gateways deployed and a large suite of customer terminals available, tested, and being shipped to customers. Yesterday, we announced our latest regional partner, Profan, who are investing in a local gateway to deliver services in Turkey and the region. It's an excellent model for O3VM power and mirrors what we're doing already with Marlink in French Guiana and, of course, Reliance Geo in India. And moving across to C-band in March also saw the launch of our last C-band satellites, allowing us to complete the small number of remaining customer transitions on the satellites. With only a few incumbent air stations left to have filters installed, we really are well advanced and fully on track to earn the remaining accelerated relocation payments in 2023. And so with that, I will hand over to Sandeep.

Thanks, Steve. Good morning, everybody. Turning now to the financial highlights on page eight. We are very pleased with an overall solid first quarter financial performance, which is fully in line with our expectations. Reported revenue was 10% up year over year to Euro 490 million. These included the positive effects of stronger US dollar, which was about 3%, and the contribution from the DRSGS acquisition, which was about 10%. Adjusted EBITDA. was at 265 million euros. This was 3% lower on a reported basis, representing a solid margin of 54%. This included the positive effects of US strong dollar, which was about 2%, and also the contribution from DRSGS acquisition, which was also about 2%. The financial outlook for 2023 is all fully pre-affirmed. Revenue, adjusted EBITDA, and CAPEX each being on track versus the guidance we gave with the February results announcement. Leverage of 3.6X was essentially unchanged compared with the year end 2022. With the latest successful launch of C-band satellites in March, as Steve reported, and with more than 90% of transition plan having been completed, we have fully de-risked the C-band clearing and have a clear line of sight to $3 billion or $2.45 billion after tax toward the end of this year. Further, we expect reimbursement of remaining CBAN-related costs, which are approximately $600 million as of 31st March, 2023. And once reimbursed, these will add to the cash balance and reduce net leverage. In fact, after we receive the substantial cash inflows of over $3 billion net, from the C1 net proceeds plus the reimbursement, our leverage on a pro forma basis at the year end comes down significantly to about 1x compared to our leverage threshold of 3x. Meanwhile, we have also paid out the dividends of €220 million for 2022 just two weeks back. Moving now to slide 9 on the net income bridge, adjusted EBITDA for quarter one was lower by 9 million euros compared to quarter one of last year, and it was driven by the following component. The first was the positive effect, which came from the stronger US dollar versus euro, and this contributed about 13 million euros to revenues and about 6 million euros to EBITDA. Second positive effect was the contribution from DRSGS, which was acquired at the end of August 2022. This contributed a revenue of 45 million euros in quarter one and EBITDA of 6 million euro in quarter one last year. After adjusting effect of both GES, like for like, and constant currency, adjusted EBITDA was 7% lower compared to quarter one of last year. Third component was the growth in network, which included double digit percentage growth in mobility and 7 million of periodic revenue in enterprise and cloud during the quarter. These positives were offset by a decline in video of about €22 million or €12 million when excluding the periodic revenue in Q1 2022 from net, as Steve said earlier. And another impact came from higher recurring OPEX as expected. Video adjusted EBITDA, the main effects leading to an adjusted net profit of €64 million were almost entirely non-cash, particularly high depreciation and amortization linked to CS17 being in service and non-cash forex loss of 6 million euros booked this quarter. Meanwhile, lower interest expense and taxes contributed about 8 million euros in the quarter. The difference of 9 million euros between adjusted net profit and reported net profit is explained by net CBAN expense of 4 million euros and other significant special items of 9 million euros in the quarter. Tax gains on these special items amounted to 4 million euros. So in summary, a very good start to the year. Excitement is building with the M power on service date getting nearer. And in the backlog, nicely building, including some recent important commercial events. We are firmly on track with the full year revenue and adjusted a bit outlook and our growth trajectory. With that, I will hand over back to Steve.