Socit Europenne des Satellites

1
Société Européenne des Satellites SAP Plenary
session - 9 -10July ROMAIN BAUSCH
2
The SES Group in Space
3
Shaping the future of broadband satellite
communications

• SES Global, a newly-formed company headquartered
  in Luxembourg, to become the worlds premier
  broadband satellite services provider, via the
  combination of SES and GE Americom, respectively
  third and fifth-largest satellite operators in
  terms of commercial revenues worldwide
• SES Global to acquire 100 of GE Americom stock
  and other assets for a consideration of US 5 bn
• GE Capital to hold a strategic stake of 25.1
  economic and 20.1 voting in SES Global
• SES Global financially strong proforma 2000
  revenues of EUR 1.410bn (US 1.283bn), EBITDA of
  EUR 1.179bn (US 1.073bn) and EBITDA margins in
  excess of 80
• SES Global to finance transaction through a
  combination of debt and new equity, combined with
  listing on a US stock exchange
• Transaction subject to regulatory approvals

4
Transaction Rationale

• Satellite industry in transition
• Consolidation
• Globalization
• Key growth potential in global broadband
  satellite services
• Transaction enables SES Global to achieve global
  scale
• First truly global network of leading regional
  satellite systems
• Enhance leadership position in value added data
  services
• Benefit from synergy potential in fleet
  deployment and operations management
• SES Global poised to capitalize on growth markets
  in DTH, cable feed and broadband services

5
SES Global the Premier Global Broadband
Satellite Services Provider
Photoshop files in l\CFD_Coverage_Groups\CFD_Med
ia\CS_Pres\Markus Taraba\Project Gerard\Astra.
6
Relevant Market Data
7
Satellite DTH Reception in Europe
37.93
33.91
31.12
28.74
25.96
24.29
29 countries (incl. 7 additional CEE countries
Belarus, Bulgaria, Estonia, Latvia, Lithuania,
Romania and Ukraine and foreign households
projection for Germany) Source SES/ASTRA,
Satellite Monitors
8
Cable and Satellite Reception in Europe
23.7
3.6
5.6
2.6
11.9
8.9
8.3
10.7
29 countries (incl. 7 additional CEE countries
Belarus, Bulgaria, Estonia, Latvia, Lithuania,
Romania and Ukraine and foreign households
projection for Germany) Source SES/ASTRA,
Satellite Monitors
9
Strong satellite reception in Europe - Year end
2000
Reception modes
Market share of satellite systems
Cable 63.63 mio (31.0)
Others only 15.6
Satellite 37.92 mio (18.5)
ASTRA only 55.8
ASTRA and others 25.8
Terrestrial only 103.79 mio (50.5)
Base 37.92 mio DTH/SMATV households in Europe
Base 205 mio TV households in Europe
29 European countries within the ASTRA
footprint Source SES/ASTRA, Satellite Monitors
10
Forecast of European DTH/SMATV households
Actual YE 2000 12.69 million
Total DTH/SMATV
28
31
34
36
38
40
42
44
45
46
47
49
50
52
22 countries within the ASTRA footprint Source
SES/ASTRA Forecast Model, 1997
11
Global Transponder Use
Source Euroconsult
12
Key Elements For A Successful European
Satellite Policy
13
European Strategy For Space

• Inclusion of Satellite Telecommunications,
  alongside Galileo and GMES
• European public investments have contributed to
  Europes success in the commercial satellite
  market
• Satellite operators are part of the satellite
  industry and should have a voice in the European
  Strategy for Space
• Creation of a High Level Panel on satellite
  industry is required

14
e-Europe

• Satellite can contribute to bridge the digital
  divide and help to achieve the action plan
  objectives of e-Europe within the time frame of
  2002 (i.e. e-learning).
• Satellite is of special interest for the
  following e-Europe Action Plan objectives
• Cheaper, Faster Secure Internet Satellite
  provides access to all regions of Europe
• Investing in People and skills Satellite allows
  for participation for all in the knowledge-based
  economy

15
RD

• Investment in next-generation commercial
  satellite communications infrastructures
• space segment
• but do not overlook ground segment, services and
  applications.
• Support of the DVB-RCS standard
• can bolster global exports of European equipment
  and services
• Increase satellite applications in the 6th FP
  together with a consideration for satellite
  communications in the Aeronautics and Space Key
  Action line.
• RD aspects are equally important to be taken
  into account in the EU/ESA Task Force

16
Regulatory Issues

• Regulatory hurdles must be lifted in order to
  allow Europe to keep its competitive advantage in
  business and consumer-based multimedia market for
  fully integrated two-way satellite services
• SES notes the constant work of the Commission to
  lift regulatory barriers in Europe
• Hurdles still exist !

17
Spectrum Policy

• A satellite infrastructure must have guaranteed
  exclusive bands of radio spectrum this requires
  stronger harmonization of conditions on spectrum
  use.
• SES supports the creation of an informal advisory
  group on spectrum policy, which should be
  mandated to define EU priorities and propose
  guidance on the coordination of spectrum use.
• Industry s views ought to be taken into account
• CEPT measures have to be made mandatory within
  the EU.

18
Free Reception of Data

• CEC has reaffirmed the right to free reception of
  data
• Satellite downlinks of two-way systems are still
  unduly constrained in certain member states.
• The regulation of two-way interactive satellite
  services should also apply objective,
  proportionate and non-discriminatory principles.

19
Receive-Transmit Equipment

• Broadband Interactive System (BBI) terminals
  comply with safety requirements and ETSI/DVB
  harmonized standards.
• Use of BBI and/or any other compliant satellite
  interactive equipment should not be subject to
  individual end-user licensing. Blanket licensing
  is required.
• SES suggests to lift all restrictions on radio
  transmitting equipment used under the safest
  conditions (harmonized use of spectrum, and
  highest compliance with ETSI/DVB standards).

20
NEED FOR A REINFORCEMENT OF THE SATELLITE ROLE
IN EUROPE

• Founding Members SES-ASTRA, EuropeStar,Eutelsat
  SA., Hispasat, New Skies Satellites NV, Nordic
  Satellite AB, Telenor Broadband Services AS and
  Telespazio are planning the formation of a
• European Satellite Operators Association (ESOA)
• to promote the role of satellites in the
  e-europe of the 21st century.

21
ESOA Key Objectives

• Ensure that satellites benefit from the
  appropriate political, industrial and regulatory
  environment to fulfil their vital role in the
  delivery of communications
• Develop the potential of satellite-delivered
  services
• Leverage the major role of satellite in the
  up-coming knowledge and e-society, based on
  ubiquitous connectivity.
• Focus on the issues facing the development of
  satellite services such as space and
  telecommunications policy.