Secure Waste Infrastructure Corp.

Ladies and gentlemen, welcome to the SES Half Year 2026 conference call. For the first part of the conference call, the participants will be in listen-only mode. During the question and answer session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. I will now hand over the conference to Christian Kern, Head of Investor Relations. Please go ahead, sir.

Thank you, Guy Young. Good morning, everyone, and thank you for joining us today. It is my pleasure to welcome you to SES first half 2026 results call on behalf of our management team. Before proceeding with the management presentation, we would like to inform you that the financial information contained in this document have been prepared under international financial reporting standards. As usual, this presentation may contain announcements that constitute forward-looking statements which are not guarantees for future business performance and involve risk as well as uncertainties. Also, certain results may materially differ from those in these forward-looking statements due to several factors. We invite you to read the detailed disclaimer on slide two of this presentation. The presentation is also available on our company webpage. Today, I'm joined by our CEO, Adel Alsaleh, and our CFO, Lisa Pataki, who will take you through the presentation followed by a Q&A session. Adel, without further ado, over to you now.

Very good. Thank you, Christian. Good morning, everyone. First half of the year performance is in line with our expectations. Although Q2 performance was softer than expected, mainly due to the timing of a couple of contract awards, the fundamentals of the business remain strong. supporting our confidence in the year ahead and our reiterated 2026 financial outlook. We also showed continued progress on integration and synergy capture while maintaining disciplined execution against our long-term priorities. Let's start with slide number three. Our vision remains clear and we continue to deliver it. We're building a leading space solutions company evolving beyond traditional satellite connectivity into an integrated provider of mission-critical solutions. We're delivering on our strategy and creating long-term value for our customers and shareholders by combining our multi-orbit network, extensive ground infrastructure, our software services, and a broad ecosystem of partners. At the same time, we continue to invest in innovation and smart diversification. A clear example of this strategic execution is our role in the IRIS Square program. IRIS Square is Europe's secure sovereign constellation, which reflects both our commitment to innovation and smart diversification into high-value sovereign connectivity solutions. IRIS Square one-to-one negotiations are in final stages. As part of our sustained financial strength and vision, is our focus on synergy delivery, where we're making excellent progress, and our disciplined financial management and execution. Our C-band clearance incentives give us a clear path to deliver, strengthening our balance sheet. Now let me share with you further, I will share with you more details of Iowa Square and C-band clearance in the following slides. Moving to slide number four. I'm giving you an update on IRIS Square Program, Europe's Secure Sovereign Constellation. IRIS Square is a strategically important program for SES and a cornerstone of Europe's future secure and sovereign space infrastructure. As the largest European government space and defense initiative to date, the program aligns strongly with our long-term strategy and through its balanced public-private partnership structure, Rendezvous One negotiations are now in their final stages. SES is working very closely with the members of the SpaceRise Consortium and the European Commission to validate key terms and conditions, including project costs, supply chain arrangements, and technical requirements for the design, delivery, and operation of the highly secure, resilient multi-orbit network. SES, along with its consortium partners, will build and operate Europe Secure Space Network through a constellation of LEO satellites and 18 MEO satellites delivering secure pole-to-pole coverage. The program is well underway and targeted operations will start in 2030. The IOSquare program is complementary to our next generation MEO steel roadmap, strengthening our position at the center of Europe's secure connectivity ecosystem for decades to come. Now let's move to slide number five to discuss the upper C-band clearance in more detail. The FCC published its report and order for the upper C-band clearance on July 24th. It establishes transition deadlines of December 2030 and June 2031 for repurposing 160 megahertz of the upper C-band spectrum for wireless services in the contiguous United States. The reported order adopts a framework for the upper C-band clearing that is similar to the one we adopted for the lower C-band transition. Specifically, satellite operators will receive reimbursement for all reasonable costs to clear the 160 megahertz and to maintain sustainably the same service for its C-band customers. And total incentive payments of 6.3 billion U.S. dollars of which approximately 5.6 billion U.S. dollars are allocated to SES contingent on successful on-time spectrum clearing. Specifically, we'd have to clear the top 75 partial economic areas in con U.S. by December 30th, 2030 and the remainder by June 30th, 2031. We have developed a compelling solution that enables us to protect our C-band customers by transitioning them to a new hybrid KU and C-band solution augmented by terrestrial recovery network that will provide them with sustainably the same service as they enjoy today. Similar to the lower C-band clearing program, reasonable and necessary upper C-band transition costs will be reimbursable through the clearinghouse. meaning these costs are not expected to impact our long-term capital allocation and leaving the full amount of incentive payment as the potential economic benefit upon successful execution. In 2026, CBAN-related capex are expected to be between 100 to 150 million euros fully reimbursable over time. We remain fully committed to working cooperatively with the FCC and all stakeholders as the process progresses to clear the spectrum and transition our customers to equivalent services in the KU band with a timeline set by the FCC. The proposed framework significantly de-risks the upper C-band program and provides SES with a clear de-leveraging path by providing greater clarity on the implementation timeline of 2030-2031. The reimbursement mechanisms, the technical approaches that may be considered reasonable, and the incentive payments for time to clearing. We have already began taking steps to meet the FCC's deadlines by engaging with the satellite manufacturers to order long-term lead items. Consistent with our financial policy, CBAN proceeds would first be prioritized towards deleveraging to our net leverage of target of 3.0 ex-hibita or below, further strengthening our balance sheet. Beyond that, at least the majority of future exceptional cash flows will be prioritized for the shareholder returns. In line with the capital allocation framework, we have consistently communicated. Moving to slide number six, which gives us a brief update on the execution of the Neosphere program. MIRSA is another pillar of our long-term strategy with softly defined payloads at the heart of its differentiated architecture. Today I'd like to give you a glimpse of into our new Luxembourg Space Campus facility where we will develop and manufacture the payloads and to the assembly integration and test of the spacecrafts. Operations are progressing very well. with the first production hall dedicated to electronics assembly on track to be fully equipped and operational by mid-August. That's in a couple of weeks. On July 13, we successfully began production of the first printed circuit boards and box assemblies for our onboard processor unit, making an important milestone in the industrialization of these advanced technologies. We expect to begin installing critical test equipment and chambers in the second hall during August as well. This hall will house our testing and qualification capabilities, enabling us to validate and certify payloads, antennas, and bus performance to the highest standards. These halls are part of our pilot line, which will be foundational to the development of the mother fab, i.e. the brand new manufacturing facility which is 15,000 square meters that we're building in Cookeshire in the south of Luxembourg. With the development progressing smoothly, production and testing of all Pathfinder 2 payload is expected to commence in mid-September. A reminder to everybody that Pathfinder 1 is already flying in space undergoing planned in-space testing. This pilot line facility will play a central role in the development and manufacture of our innovative high-capacity payloads from Neosphere and Iris Square, while also supporting the assembly, integration, and test of our next-generation satellites. By bringing these critical capabilities in-house, we are strengthening our technological leadership, building on our vertical integration strategy, accelerating innovation cycles, reducing costs, and building the foundations for future growth in secure and high performance connectivity solutions. MioSphere is targeted for operation by 2030 and designed to significantly boost our Mio network capacity. MioSphere is complementary to the Iris Square constellation. Now let's move to slide number eight and our first half 2026 business highlights. These results are shown on a reported basis with H1 2026 being fully consolidated with Intelsat. The figures are compared year-on-year to H1 2025 SES standalone reported numbers on a constant FX basis. In a few minutes, Lisa will also share like-for-like comparisons. H1 2026 performance is in line with our expectations. despite a softer than anticipated Q2 following a strong start in Q1. H1 2026 revenue was 1.602 billion euros up 72% year-on-year driven by networks growth of 89% year-on-year. Again, on a reported basis. H1 2026 adjusted EBITDA of 725 million euros was up 47% year-on-year with a margin of 45.2% on a reported basis. Capital expenditures for first half 2026 were 444 million euros with full year 2026 still expected to be front-loaded while we continue executing on planned capex synergies. H1 2026 adjusted free cash flow of negative 130 million euros reflecting the timing of the investments and supporting future growth. In H1 2026, we secured 1.2 billion euros of renewals and new customer contracts with a majority coming from our growth segments. This has supported our gross backlog of 6.4 billion euros. Q2 software then expected performance was driven by timing of a couple of awards. One of these awards were received very late in the quarter from our government and defense customers, and others in government and defense and aviations we're working to secure in second half of the year. Aviation continues to see some timing differences between the onboarding and decommissioning of airline customers, as well as lower ESAC kit shipments in Q2. These were mainly driven by seasonality and are expected to wrap up in subsequent quarters. In addition, continued pressures and fixed data and ongoing structural declines in media also contributed to softness in Q2. With solid performance in Q1 and softer Q2, our overall H1 performance remained in line with our expectations. During the first half, we focused on securing commercial wins and strategic contracts that are expected to contribute to growth in the second half of the year. providing greater visibility for our performance for the remainder of 2026. Let me walk you through our second half drivers on slide number nine. We will enable our second half priorities to focus and discipline execution across all functions. Let me start with governance and defense. As a reminder, The U.S. government DOGE cuts have impacted our year-on-year business, first-half performance, and are now largely behind us. We have secured the U.S. Space Force Protected Tactical SATCOM Global Contract Award, called PTSG, as a prime, which will provide incremental revenue in H2 versus H1. The award of the U.S. Space Force Blanket Purchase Agreement further enhances the revenue opportunity pipeline. In addition to these two large contracts, we secured several additional contracts in Europe and the U.S. that will contribute in second half of the year. And finally, Irish Square Rendezvous One is in its final stages. Overall, we expect solid revenue in second half of the year for our government and defense business. In mobility, in aviation, the solid commercial momentum continues, having secured around 200 new tails in first half of the year, which will support second half ramp. There's also one particular larger contract delayed from Q2 that we now expect to materialize in second half of the year. We will also continue installing our growing ESAP backlog. In media, prior year Brazilian customer bankruptcy related headwinds are now largely behind us. Several multi-year contract wins and renewals secured during H1 will support H2 performance, including contract renewals well beyond the next decade. Business remains on track for the previously expected mid single digit annual decline for the full year, implying a stronger second half performance. In fixed data, market conditions remain challenging, despite restructuring actions we have taken. We are successfully retaining key customers maintaining a disciplined focus on customers and segments was building a bridge towards future capabilities. In the near term, we do not currently anticipate a significant change in the trends. I'm pleased to confirm that we continue delivering hour-on-hour synergies plans in the first half of the year, achieving a reduction of 16% year-on-year in staff costs, and overall OPEX was down 9% year-on-year, with synergy delivery expected to produce further results to second half of the year. With this backdrop, we reiterate our full year 2026 outlook supported by stronger second half revenue profile and continued cost discipline. Let us now turn to slide number 10 and our key customer renewals and strategic wins throughout the first half of the year. I mentioned a few of them already, but let's start with media. Satellite remains the most efficient and reliable platform for large scale content distribution During the first half of 2026, we secured several important contract renewals, including the extension of our long-standing relationship with ARD beyond the next decade and a new multi-year agreement with ABP Network covering India and South Asia. We also renewed an important direct-to-home agreement in India with DISH TV, extending direct-to-home contracts with Sky Mexico, and concluded important extensions in the U.S. for domestic and global distribution with some of the largest U.S. broadcasters. Overall, these key contract renewals are not only supporting second half performance and long-term visibility of our immediate business, but also reinforcing the continued value of satellite for premium content distribution. I'm also proud to announce that SES enabled live coverage of the Open Championship and Roald Bergdahl, distributing IMG's Gulf World feed to more than 50 broadcasters across Europe, Americas and Asia. In government and defense, demand for secure, resilient and mission critical communications continue to underpin performance. This was demonstrated by the selection of SES Space and Defense, the prime mission execution for the U.S. Space Force PTSG program as I described earlier. and secured an award under the US Space SST five-year BPA for managed KU-band satellites, which encompassing FlexMove, FlexGovernment Secure and FlexAir solutions. So this is overall encompassing with all of our capabilities. These wins demonstrate the increasing relevance of our solution and our trusted position with sovereign governments and defense customers. In aviation, commercial momentum remains strong as we expanded our footprint with both existing and new airline customer, having added around 200 new aircrafts to our pipeline. During the first year, we added Viva, Avianca, and Lifetime Airlines to our surf aircraft portfolio, further validating the attractiveness of our multi-orbit, electronically steered antenna solution and I are reinforcing our position as a leading in-flight connectivity provider serving millions of passengers around the world. In maritime, performance was in line with expectation as we continue to execute the restructuring of our wholesale business while navigating the anticipated competitive headwinds. We remain a leading provider of maritime connectivity and during the first half of the year secured important renewals including to Tethio Global, demonstrating the continued value of our services and the strength of our longstanding customer relationships. In fixed data, we continue to execute our transformation program we described in the beginning of the year while navigating the anticipated market headwinds. We remain focused on serving high-value enterprise, network, and global energy customers by leveraging our global infrastructure and differentiating multi-orbit capability bridging towards future network capabilities. Throughout H1, we signed important strategic partnership that will drive future revenue streams, for example, with Sharp in Japan and Tim in Brazil. With this, I'm going to hand over to Lisa to discuss further details of our H1 2026 financial performance.