Steve Collar, CEO of SES, commented: “2020 was a strong year for SES. The combination of considerable commercial execution and laser focus on controlling discretionary spending ensured that, despite the COVID-19 environment, we protected the bottom line with Adjusted EBITDA in line with our pre-COVID-19 outlook and at the top end of our mid-year outlook. We successfully executed our Simplify & Amplify programme delivering OpEx savings of €50 million from 2022 onwards, while Net Debt and leverage is at a 5-year low on the back of strong cash generation.
2020 was a landmark year for our US C-band initiative, starting with the FCC’s final Report and Order and ending with the record-breaking spectrum auction, crystallising SES’ opportunity to earn $4 billion in accelerated relocation payments. The clearing is on track and we expect to meet the December 2021 and December 2023 deadlines.
We secured more than €1.3 billion in customer agreements in the year including an important long-term commitment with Canal+ covering multiple orbital positions; contract extensions with public and commercial broadcasters across our prime video neighbourhoods; new MEO-GEO-based solutions for the US Government; new Telco and MNO connectivity solutions in Latin America and Asia; and, in return for supporting customers whose businesses are especially affected by COVID-19, secured additional backlog in Cruise and Aero. Our recently announced renewal and extension with Sky means that, to date, we have added more than €440 million in contract backlog at our core video neighbourhoods since the end of Q3 2020. 2020 was a year like no other for our employees and customers alike. We moved swiftly and successfully into a remote office environment, protecting customer and satellite operations in the process. I could not be more grateful to SES employees for their resilience and commitment to supporting our customers.
2021 represents a year of unique and significant opportunities for SES. It will see us realise the first $1 billion from C-band repurposing and execute on a strong pipeline of commercial opportunities to further grow, driven by the increasing backlog of now $740 million for SES-17 and O3b mPOWER ahead of launch in the second half of 2021. These assets form the bedrock of our unique, multi-orbit value proposition to serve the strong and expanding demand for data across all our segments and will drive sustained, profitable growth for SES in the years ahead.”
Key business and financial highlights
SES regularly uses Alternative Performance Measures (APM) to present the performance of the Group and believes that these APMs are relevant to enhance understanding of the financial performance and financial position.
€million |
2020 |
2019 |
∆ as Reported |
∆ at constant FX |
||||
Average €/$ FX rate |
1.14 |
1.12 |
|
|
||||
Revenue |
1,876 |
1,984 |
-5.4% |
-4.5% |
||||
Adjusted EBITDA |
1,152 |
1,238 |
-6.9% |
-5.9% |
||||
Adjusted Net Profit |
208 |
395 |
-47.3% |
n/a |
Operational performance and commentary
REVENUE BY BUSINESS UNIT
|
Revenue (€ million) |
Change (YOY) at constant FX |
||||||||||||||||||
|
Q1 2020 |
|
Q2 2020 |
|
Q3 2020 |
|
Q4 2020 |
|
2020 |
|
Q1 2020 |
|
Q2 2020 |
|
Q3 2020 |
|
Q4 2020 |
|
2020 |
|
Average €/$ FX rate |
1.11 |
|
1.10 |
|
1.17 |
|
1.18 |
|
1.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Video Distribution (underlying) |
212 |
|
211 |
|
205 |
|
204 |
|
832 |
|
-8.5% |
|
-6.6% |
|
-7.7% |
|
-9.2% |
|
-7.8% |
|
Video Services (underlying) |
70 |
|
66 |
|
68 |
|
72 |
|
276 |
|
-6.6% |
|
-12.5% |
|
-11.7% |
|
-3.8% |
|
-8.7% |
|
Video (total) |
282 |
|
277 |
|
273 |
|
276 |
|
1,108 |
|
-8.1% |
|
-8.1% |
|
-8.7% |
|
-8.2% |
|
-8.3% |
|
- Underlying |
282 |
|
277 |
|
273 |
|
276 |
|
1,108 |
|
-7.8% |
|
-8.1% |
|
-8.3% |
|
-7.9% |
|
-8.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government (underlying) |
70 |
|
72 |
|
74 |
|
78 |
|
294 |
|
-0.5% |
|
-3.8% |
|
+6.2% |
|
+2.7% |
|
+1.7% |
|
Fixed Data |
69 |
|
62 |
|
60 |
|
66 |
|
257 |
|
+14.3% |
|
+4.9% |
|
+0.5% |
|
-9.3% (1) |
|
+2.0% |
|
- Underlying |
61 |
|
62 |
|
60 |
|
66 |
|
249 |
|
+1.6% |
|
+7.9% |
|
+10.3% |
|
+7.5% |
|
+6.7% |
|
- Periodic |
8 |
|
- |
|
- |
|
- |
|
8 |
|
n/m |
|
n/m |
|
n/m |
|
n/m |
|
n/m |
|
Mobility (underlying) |
|
58 |
|
57 |
|
55 |
|
46 (2) |
|
216 |
|
+13.6% |
|
+16.9% |
|
+9.3% |
|
-15.1% (2) |
|
+9.0% |
Networks (total) |
197 |
|
191 |
|
189 |
|
190 |
|
767 |
|
+8.4% |
|
+4.6% |
|
+5.2% |
|
-6.5% |
|
+2.6% |
|
- Underlying |
189 |
|
191 |
|
189 |
|
190 |
|
759 |
|
+7.7% |
|
+6.5% |
|
+8.4% |
|
-0.8% |
|
+5.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total |
479 |
|
468 |
|
462 |
|
466 |
|
1,875 |
|
-2.0% |
|
-3.3% |
|
-3.5% |
|
-7.5% |
|
-4.1% |
|
- Underlying |
471 |
|
468 |
|
462 |
|
466 |
|
1,867 |
|
-2.2% |
|
-2.6% |
|
-2.1% |
|
-5.1% |
|
-3.0% |
|
- Periodic |
8 |
|
- |
|
- |
|
- |
|
8 |
|
n/m |
|
n/m |
|
n/m |
|
n/m |
|
n/m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
- |
|
1 |
|
- |
|
- |
|
1 |
|
n/m |
|
n/m |
|
n/m |
|
n/m |
|
n/m |
|
Group Total |
479 |
|
469 |
|
462 |
|
466 |
|
1,876 |
|
-1.9% |
|
-3.3% |
|
-3.5% |
|
-8.8% |
|
-4.5% |
“Underlying” revenue represents the core business of capacity sales, as well as associated services and equipment. This revenue may be impacted by changes in launch schedule and satellite health status. “Periodic” revenue separates revenues that are not directly related to or would distort the underlying business trends on a quarterly basis. Periodic revenue includes: the outright sale of transponders or transponder equivalents; accelerated revenue from hosted payloads during construction; termination fees; insurance proceeds; certain interim satellite missions and other such items when material. “Other” includes revenue not directly applicable to Video or Networks |
1) Year-on-year comparison impacted by periodic revenue of €12 million recognised in Q4 2019 which did not repeat in Q4 2020 |
2) Q4 2020 revenue included an exceptional adjustment related to contract restructuring which is not expected to repeat in future quarters |
Video: 59% of group revenue (2019: 62%)
At 31 December 2020, SES carried a total of 8,265 TV channels to over 365 million TV homes around the world including 2,981 channels in High Definition and Ultra High Definition. 69% of total TV channels are broadcast in MPEG-4 with an additional 4% in HEVC.
Video Distribution
In Europe, volume
reductions on some long-term
renewals secured in late 2019 led to
lower year-on-year revenue, albeit
utilisation rates across SES’
industry-leading European Video
neighbourhoods remained strong.
North American revenue was impacted
by ‘right-sizing’ of volume across
U.S. cable neighbourhoods and
accommodation of customers ahead of
C-band clearing, as well as the
expected reduction in wholesale
business. In the International
markets, the contribution of new
revenue secured is yet to fully
offset the impact of challenging
trading environments, leading to a
modest revenue reduction
(year-on-year).
Video Services
The decision to reduce
exposure to low margin services
activities associated with the
former MX1 business, and
postponement or cancellation of
sports and events in 2020 due to
COVID-19, led to lower year-on-year
revenue. HD+ revenue was flat
(year-on-year) with a shift towards
TV-installed software solutions
rather than hardware sales,
reflecting the strong partnerships
with TV set manufacturers. Continued
growth in the number of paying
subscribers, which improved during
2020, and the positive contribution
from the planned increase in the
cost to renew a 12-month
subscription from March 2021 is
expected to support the future
development of the platform.
From Q1 2021, revenue from “Video Distribution” and “Video Services” will be reported as a single revenue line (“Video”).
Networks: 41% of group revenue (2019: 38%)
Government
Strong contributions from
new business in both the US
Government and Global Government
businesses during the second half of
2020 led to overall growth
(year-on-year) in underlying
revenue. US Government revenue was
ahead (year-on-year) benefiting from
the contribution of new MEO- and
GEO-enabled network solutions.
Global Government revenue was lower
with improved revenue run-rate
offsetting less revenue from
completion of certain
milestone-driven institutional
projects which benefited 2019.
Fixed Data
Positive outturns across
the Americas, Africa and Asia, as
well as from new business in energy
and cloud, more than offset lower
revenue in Europe and the Pacific
and contributed to overall growth
(year-on-year) in Fixed Data. Growth
in the Americas was supported by new
and incremental managed services to
tier one telecommunications
companies, mobile networks operators
to deploy 4G networks, and
government funded rural WiFi
projects on behalf of SES’
customers, notably using SES-12 and
MEO-enabled high throughput
capabilities.
Mobility
High single-digit growth
(year-on-year) in Aeronautical
reflected the full year contribution
of new business signed with several
service providers during 2019.
Similarly, in Maritime, the full
revenue contribution of expanded
services with key cruise customers
signed in 2019 and a good trajectory
in commercial shipping over the last
12 months led to double-digit growth
(year-on-year) in revenue. In Q4
2020, Mobility revenue included an
exceptional adjustment related to
contract restructuring which is not
expected to repeat in future
quarters.
As the vast majority of SES’ commercial contracts, including in Mobility, are fixed, the performance was resilient to the impact of COVID-19 on customers and end markets served by SES in the Cruise and Commercial Aviation segments. Nevertheless, it is expected that the development of both existing revenue and pace of new business will continue to be impacted by COVID-19 in the near term.
Future satellite launches
Satellite |
Region |
Application |
Launch Date |
|||
SES-17 |
Americas |
Fixed Data, Mobility, Government |
Q3 2021 |
|||
O3b mPOWER (satellites 1-3) |
Global |
Fixed Data, Mobility, Government |
Q3 2021 |
|||
O3b mPOWER (satellites 4-6) |
Global |
Fixed Data, Mobility, Government |
Q1 2022 |
|||
O3b mPOWER (satellites 7-9) |
Global |
Fixed Data, Mobility, Government |
H2 2022 |
|||
SES-18 & SES-19 |
North America |
Video (US C-band accelerated clearing) |
H2 2022 |
|||
SES-20 & SES-21 |
North America |
Video (US C-band accelerated clearing) |
H2 2022 |
|||
O3b mPOWER (satellites 10-11) |
Global |
Fixed Data, Mobility, Government |
H2 2024 |
|||
CONSOLIDATED INCOME STATEMENT
Year ended 31 December
€ million |
2020 |
|
2019 |
|
Average €/$ FX rate |
1.14 |
|
1.12 |
|
Revenue |
1,876 |
|
1,984 |
|
US C-band repurposing income |
10 |
|
-- |
|
Cost of sales |
(291) |
|
(269) |
|
Staff costs |
(330) |
|
(312) |
|
Other operating expenses |
(186) |
|
(186) |
|
Operating expenses |
(807) |
|
(767) |
|
EBITDA |
1,079 |
|
1,217 |
|
|
|
|
|
|
Depreciation expense |
(625) |
|
(664) |
|
Amortisation expense |
(95) |
|
(90) |
|
Impairment expense |
(277) |
|
(97) |
|
Operating profit |
82 |
|
366 |
|
Net financing costs |
(184) |
|
(166) |
|
Profit/(loss) before tax |
(102) |
|
200 |
|
Income tax income / (expense) |
7 |
|
76 |
|
Profit/(loss) after tax |
(95) |
|
276 |
|
Non-controlling interests |
9 |
|
20 |
|
Net profit/(loss) attributable to owners of the parent |
(86) |
|
296 |
|
|
|
|
|
|
Basic and diluted earnings/(loss) per share (in €) (1) |
|
|
|
|
Class A shares |
(0.30) |
|
0.54 |
|
Class B shares |
(0.12) |
|
0.22 |
1) Earnings per share is calculated as profit attributable to owners of the parent divided by the weighted average number of shares outstanding during the year, as adjusted to reflect the economic rights of each class of share. For the purposes of the EPS calculation only, the net profit for the year attributable to ordinary shareholders has been adjusted to include the assumed coupon, net of tax, on the perpetual bonds of €49 million (2019: €49 million). Fully diluted earnings per share are not significantly different from basic earnings per share |
€ million |
2020 |
2019 |
||
Adjusted EBITDA |
1,152 |
1,238 |
||
US C-band repurposing income |
10 |
-- |
||
US C-band operating expenses |
(43) |
-- |
||
Restructuring expenses |
(40) |
(21) |
||
EBITDA |
1,079 |
1,217 |
€ million |
2020 |
2019 |
||
Adjusted Net Profit |
208 |
395 |
||
US C-band repurposing income |
10 |
-- |
||
US C-band operating expenses |
(43) |
-- |
||
Restructuring expenses |
(40) |
(21) |
||
Impairment expenses |
(277) |
(97) |
||
Tax on material exceptional items |
56 |
19 |
||
Net profit/(loss) attributable to owners of the parent |
(86) |
296 |
||
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 31 December
€ million |
2020 |
|
2019 |
|
Property, plant and equipment |
4,170 |
|
5,186 |
|
Assets in the course of construction |
1,651 |
|
924 |
|
Intangible assets |
4,192 |
|
4,685 |
|
Other financial assets |
14 |
|
12 |
|
Trade and other receivables |
268 |
|
285 |
|
Deferred customer contract costs |
9 |
|
18 |
|
Deferred tax assets |
313 |
|
260 |
|
Total non-current assets |
10,617 |
|
11,370 |
|
Inventories |
27 |
|
31 |
|
Trade and other receivables |
488 |
|
590 |
|
Deferred customer contract costs |
10 |
|
18 |
|
Prepayments |
72 |
|
62 |
|
Income tax receivable |
11 |
|
7 |
|
Cash and cash equivalents (A) |
1,162 |
|
1,155 |
|
Total current assets |
1,770 |
|
1,863 |
|
Total assets |
12,387 |
|
13,233 |
|
|
|
|
|
|
Equity attributable to the owners of the parent |
5,366 |
|
6,173 |
|
Non-controlling interests |
72 |
|
83 |
|
Total equity |
5,438 |
|
6,256 |
|
|
|
|
|
|
Borrowings (B) |
3,317 |
|
3,737 |
|
Provisions |
12 |
|
14 |
|
Deferred income |
296 |
|
317 |
|
Deferred tax liabilities |
333 |
|
359 |
|
Other long-term liabilities |
127 |
|
168 |
|
Lease liabilities |
25 |
|
30 |
|
Fixed assets suppliers |
1,310 |
|
623 |
|
Total non-current liabilities |
5,420 |
|
5,248 |
|
Borrowings (C) |
613 |
|
691 |
|
Provisions |
60 |
|
49 |
|
Deferred income |
454 |
|
467 |
|
Trade and other payables |
300 |
|
351 |
|
Lease liabilities |
12 |
|
11 |
|
Fixed assets suppliers |
67 |
|
135 |
|
Income tax liabilities |
23 |
|
25 |
|
Total current liabilities |
1,529 |
|
1,729 |
|
Total liabilities |
6,949 |
|
6,977 |
|
|
|
|
|
|
Total equity and liabilities |
12,387 |
|
13,233 |
|
Reported Net Debt (B + C – A) |
|
2,768 |
|
3,273 |
CONSOLIDATED STATEMENT OF CASH FLOWS
Year ended 31 December
€ million |
2020 |
|
2019 |
|
Profit/(loss) before tax |
(102) |
|
200 |
|
Taxes paid during the year |
(31) |
|
(54) |
|
Interest expense |
|
123 |
|
144 |
Depreciation, amortisation and impairment |
|
997 |
|
851 |
Amortisation of client upfront payments |
|
(72) |
|
(88) |
Other non-cash items in the consolidated income statement |
|
76 |
|
43 |
Consolidated operating profit adjusted for non-cash items and tax payments and before working capital changes |
991 |
|
1,096 |
|
(Increase)/decrease in inventories |
|
(6) |
|
5 |
(Increase)/decrease in trade and other receivables |
|
17 |
|
(64) |
(Increase)/decrease in prepayments and deferred charges |
|
17 |
|
(22) |
Increase/(decrease) in trade and other payables |
|
(73) |
|
63 |
Increase in upfront payments and deferred income |
|
103 |
|
56 |
Changes in working capital |
|
58 |
|
38 |
Net cash generated by operating activities |
1,049 |
|
1,134 |
|
|
|
|
|
|
Payments for purchases of intangible assets |
(39) |
|
(26) |
|
Payments for purchases of tangible assets (1) |
(171) |
|
(279) |
|
Other investing activities |
(7) |
|
(3) |
|
Net cash absorbed by investing activities |
(217) |
|
(308) |
|
|
|
|
|
|
Proceeds from borrowings |
395 |
|
497 |
|
Repayment of borrowings |
|
(785) |
|
(484) |
Coupon paid on perpetual bond |
(66) |
|
(66) |
|
Dividends paid on ordinary shares (2) |
(182) |
|
(364) |
|
Interest paid on borrowings |
(152) |
|
(154) |
|
Payments for acquisition of treasury shares |
(10) |
|
(50) |
|
Proceeds from treasury shares sold and exercise of stock options |
9 |
|
57 |
|
Lease payments |
(15) |
|
(13) |
|
Payments related to changes in ownership interest in subsidiaries |
(7) |
|
- |
|
Net cash absorbed by financing activities |
(813) |
|
(577) |
|
|
|
|
|
|
Net foreign exchange movements |
(12) |
|
(3) |
|
Net increase in cash and cash equivalents |
7 |
|
246 |
|
Cash and cash equivalents at beginning of the year |
1,155 |
|
909 |
|
Cash and cash equivalents at end of the year |
1,162 |
|
1,155 |
1) Including €10 million related to US C-band repurposing (2019: nil). 2) Net of dividends received on treasury shares of €2 million (2019: €4 million) |
€ million |
2020 |
|
2019 |
|
Net cash generated by operating activities |
1,049 |
|
1,134 |
|
Net cash absorbed by investing activities |
(217) |
|
(308) |
|
Free cash flow before financing activities |
832 |
|
826 |
|
Interest paid on borrowings |
(152) |
|
(154) |
|
Lease payments |
(15) |
|
(13) |
|
Free cash flow before equity distributions and treasury activities |
|
665 |
|
659 |
SUPPLEMENTARY INFORMATION
QUARTERLY INCOME STATEMENT (AS REPORTED)
€ million |
Q1 2019 |
|
Q2 2019 |
|
Q3 2019 |
|
Q4 2019 |
|
Q1 2020 |
|
Q2 2020 |
|
Q3 2020 |
|
Q4 2020 |
|
Average €/$ FX rate |
1.15 |
|
1.12 |
|
1.12 |
|
1.10 |
|
1.11 |
|
1.10 |
|
1.17 |
|
1.18 |
|
Revenue |
481 |
|
481 |
|
490 |
|
532 |
|
479 |
|
469 |
|
462 |
|
466 |
|
US C-band repurposing income |
-- |
|
-- |
|
-- |
|
-- |
|
-- |
|
-- |
|
-- |
|
10 |
|
Operating expenses |
(191) |
|
(186) |
|
(185) |
|
(205) |
|
(194) |
|
(207) |
|
(175) |
|
(231) |
|
EBITDA |
290 |
|
295 |
|
305 |
|
327 |
|
285 |
|
262 |
|
287 |
|
245 |
|
Depreciation expense |
(156) |
|
(162) |
|
(168) |
|
(178) |
|
(158) |
|
(161) |
|
(153) |
|
(153) |
|
Amortisation expense |
(21) |
|
(25) |
|
(20) |
|
(24) |
|
(23) |
|
(21) |
|
(21) |
|
(30) |
|
Impairment expense |
- |
|
(5) |
|
- |
|
(92) |
|
- |
|
- |
|
- |
|
(277) |
|
Operating profit/(loss) |
113 |
|
103 |
|
117 |
|
33 |
|
104 |
|
80 |
|
113 |
|
(215) |
|
Operating profit/(loss) margin |
24% |
|
21% |
|
24% |
|
6% |
|
22% |
|
17% |
|
24% |
|
-46% |
|
Net financing costs |
(38) |
|
(44) |
|
(33) |
|
(51) |
|
(46) |
|
(45) |
|
(44) |
|
(49) |
|
Profit/(loss) before tax |
75 |
|
59 |
|
84 |
|
(18) |
|
58 |
|
35 |
|
69 |
|
(264) |
|
Income tax benefit/(expense) |
(7) |
|
30 |
|
(7) |
|
60 |
|
(9) |
|
(1) |
|
(4) |
|
21 |
|
Non-controlling interests |
4 |
|
8 |
|
4 |
|
4 |
|
2 |
|
2 |
|
2 |
|
3 |
|
Net Profit/(Loss) |
72 |
|
97 |
|
81 |
|
46 |
|
51 |
|
36 |
|
67 |
|
(240) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per share (in €)(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A shares |
0.13 |
|
0.19 |
|
0.15 |
|
0.07 |
|
0.09 |
|
0.05 |
|
0.12 |
|
(0.56) |
|
Class B shares |
0.05 |
|
0.07 |
|
0.07 |
|
0.03 |
|
0.03 |
|
0.02 |
|
0.05 |
|
(0.22) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
298 |
|
298 |
|
308 |
|
334 |
|
288 |
|
294 |
|
301 |
|
269 |
|
Adjusted EBITDA margin |
62% |
|
62% |
|
63% |
|
63% |
|
60% |
|
63% |
|
65% |
|
58% |
|
US C-band repurposing income |
-- |
|
-- |
|
-- |
|
-- |
|
-- |
|
-- |
|
-- |
|
10 |
|
US C-band operating expenses |
-- |
|
-- |
|
-- |
|
-- |
|
-- |
|
(14) |
|
(7) |
|
(22) |
|
Restructuring expenses |
(8) |
|
(3) |
|
(3) |
|
(7) |
|
(3) |
|
(18) |
|
(7) |
|
(12) |
|
EBITDA |
290 |
|
295 |
|
305 |
|
327 |
|
285 |
|
262 |
|
287 |
|
245 |
1) Earnings per share is calculated as profit attributable to owners of the parent divided by the weighted average number of shares outstanding during the year, as adjusted to reflect the economic rights of each class of share. For the purposes of the EPS calculation only, the net profit for the year attributable to ordinary shareholders has been adjusted to include the coupon, net of tax, on the perpetual bonds. Fully diluted earnings per share are not significantly different from basic earnings per share. |
QUARTERLY OPERATING PROFIT (AT FINANCIAL OUTLOOK FX RATE)
€ million |
Q1 2019 |
|
Q2 2019 |
|
Q3 2019 |
|
Q4 2019 |
|
Q1 2020 |
|
Q2 2020 |
|
Q3 2020 |
|
Q4 2020 |
|
Average €/$ FX rate |
1.20 |
|
1.20 |
|
1.20 |
|
1.20 |
|
1.20 |
|
1.20 |
|
1.20 |
|
1.20 |
|
Revenue |
470 |
|
465 |
|
474 |
|
510 |
|
460 |
|
448 |
|
456 |
|
463 |
|
US C-band repurposing income |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
10 |
|
Operating expenses |
(185) |
|
(179) |
|
(177) |
|
(193) |
|
(185) |
|
(193) |
|
(172) |
|
(230) |
|
EBITDA |
285 |
|
286 |
|
297 |
|
317 |
|
275 |
|
255 |
|
284 |
|
243 |
|
Depreciation expense |
(152) |
|
(154) |
|
(161) |
|
(169) |
|
(150) |
|
(152) |
|
(150) |
|
(148) |
|
Amortisation expense |
(20) |
|
(25) |
|
(20) |
|
(24) |
|
(22) |
|
(21) |
|
(21) |
|
(28) |
|
Impairment expense |
- |
|
(5) |
|
- |
|
(84) |
|
- |
|
- |
|
- |
|
(277) |
|
Operating profit/(loss) |
113 |
|
102 |
|
116 |
|
40 |
|
103 |
|
82 |
|
113 |
|
(210) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
293 |
|
289 |
|
300 |
|
323 |
|
278 |
|
285 |
|
297 |
|
267 |
|
US C-band repurposing income |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
10 |
|
US C-band operating expenses |
- |
|
- |
|
- |
|
- |
|
- |
|
(12) |
|
(7) |
|
(22) |
|
Restructuring expenses |
(8) |
|
(3) |
|
(3) |
|
(6) |
|
(3) |
|
(18) |
|
(6) |
|
(12) |
|
EBITDA |
285 |
|
286 |
|
297 |
|
317 |
|
275 |
|
255 |
|
284 |
|
243 |
ALTERNATIVE PERFORMANCE MEASURES
SES regularly uses Alternative Performance Measures (‘APM’) to present the performance of the Group and believes that these APMs are relevant to enhance understanding of the financial performance and financial position. These measures may not be comparable to similarly titled measures used by other companies and are not measurements under IFRS or any other body of generally accepted accounting principles, and thus should not be considered substitutes for the information contained in the Group’s financial statements.
Alternative Performance Measure |
Definition |
|
Reported EBITDA and EBITDA margin |
EBITDA is profit for the period before depreciation, amortisation, net financing cost and income tax. EBITDA margin is EBITDA divided by revenue |
|
Adjusted EBITDA and Adjusted EBITDA margin |
EBITDA adjusted to exclude material exceptional items. In 2020, the primary exceptional items are restructuring charges announced in the framework of SES’ ‘Simplify & Amplify’ programme, and the net impact of the repurposing of US C-band spectrum. Adjusted EBITDA margin is Adjusted EBITDA divided by revenue. |
|
Adjusted Net Debt to Adjusted EBITDA |
Adjusted Net Debt to Adjusted EBITDA, represents the ratio of Net Debt plus 50% of the group’s hybrid bonds (per the rating agency methodology) divided by the last 12 months’ (rolling) Adjusted EBITDA. |
|
Adjusted Net Profit |
Net profit attributable to owners of the parent adjusted to exclude material exceptional items. In 2020, the primary exceptional items are restructuring charges announced in the framework of SES’ ‘Simplify & Amplify’ programme, the net impact of the repurposing of US C-band spectrum, and the net impact of impairment expense |