SES YTD Q3 Delivers Solid Growth

  SES YTD Q3 Delivers Solid Growth

Business Wire

LUXEMBOURG -- November 09, 2012

SES S.A. (Paris:SESG) (LuxX:SESG) reports financial results for the nine
months and three months ended 30 September 2012.


  *YTD Revenue of EUR 1,359.6 million

       *An increase of 6.1% over the prior year, +1.6% at constant exchange
         rates (“constant FX”)

  *YTD EBITDA of EUR 1,012.0 million

       *An increase of 6.4% over the prior year, +1.8% at constant FX
       *EBITDA margin of 74.4% (2011: 74.2%)

  *YTD Profit of the group EUR 456.4 million (2011: EUR 446.7 million)

       *An increase of 2.2% over the prior year

  *Closing net debt / EBITDA of 3.02 times (2011: 3.13 times)

  *Contract backlog at an all-time high of EUR 7.2 billion

       *An increase from EUR 6.8 billion at end of June 2012
       *EUR 1.3 billion of renewals and new contracts signed YTD
       *24 transponder long-term contract renewal by Canal+
       *Six transponder contract renewal by the BBC

  *SES-4 and SES-5 successfully launched and brought into service

  *ASTRA 2F successfully launched and will enter commercial service later
    this month

Romain Bausch, President and CEO, commented:

“The financial results for the first nine months of 2012 are in line with our
expectations. Despite the impact of the end of analogue TV broadcasting in
Germany at the end of April, strong underlying growth has resulted in revenue
growth of 1.6%, at constant FX. Excluding the German analogue impact, revenue
growth was 7.5%. In the period, SES has successfully launched three spacecraft
(SES-4, SES-5, ASTRA 2F), two of which have already entered service. New
business and renewals have further increased our backlog of future contracted
revenue to an all-time high of EUR 7.2 billion, underlining the confidence and
trust that our customers place in us. Full year 2012 revenue and EBITDA growth
is expected to be in line with guidance. SES also reiterates the 2012-2014
revenue and EBITDA CAGR guidance (at constant FX) of approximately 4.5%. Once
again, SES has demonstrated the resilience of the satellite sector in the
economic downturn.”

YTD Q3 2012 Financial Review

In the year to date, reported revenue increased by 6.1%, to EUR 1,359.6
million. On a constant FX basis, revenue rose 1.6% despite the significant
impact of the switch-off of analogue transmissions in Germany at the end of
April. The resulting absence of five months’ revenue from this source in the
year to date was more than offset by the contributions of the Quetzsat-1
satellite, which delivered a full nine months of revenue, other capacity
sales, services rendered with the SES-3 Ka-band payload, and growth of the
European services business (principally HD+). Excluding the adverse impact of
the analogue switch-off, underlying revenue growth was 7.5% at constant FX.

As reported, operating expenses increased by EUR 17.5 million, or 5.3%, to EUR
347.6 million, reflecting the stronger U.S. dollar. On a constant FX basis the
increase year-on-year was held at EUR 3.2 million, or 0.9%. Whilst costs of
sales rose in connection with the strong performance from services activities,
this increase was largely offset both by lower underlying cost levels achieved
through cost management activities in the infrastructure business, and the
positive impact in 2012 of some one time expenses incurred in 2011.

Reported EBITDA grew by 6.4% to EUR 1,012.0 million, a 1.8% increase on a
constant FX basis reflecting a leverage impact from the strong infrastructure
business and related cost containment activities as well as absorbing the
unfavourable impact from the analogue switch-off in Germany. The total EBITDA
margin was 74.4% for the nine months, slightly ahead of the prior year level
of 74.2%, with infrastructure delivering a strong margin of 83.8% (2011:
82.9%) and services delivering a margin of 14.2% (2011: 14.9%). Excluding the
adverse impact of the analogue switch-off, EBITDA growth was 10.0% at constant

Depreciation and amortisation charges rose 13.1% to EUR 386.3 million, an
increase at constant FX of 7.4%, driven mainly by fleet additions and a first
quarter impairment charge of EUR 3 million.

Operating profit rose 2.6% to EUR 625.7 million, a decrease at constant FX of
1.4% reflecting the increased depreciation charges on the enlarged fleet.

Year to date net financing costs were EUR 18.4 million higher than the prior
year period, due to lower net foreign exchange gains and reduced
capitalisation of interest. At net profit level a lower tax charge and the
absence of the negative impact of discontinued operations in the prior year
period, contributed to an increase of 2.2% to EUR 456.4 million.

Net Debt/EBITDA was 3.02 times compared to 3.13 times at 30 September 2011.

Q3 2012 Financial Review

Third quarter reported revenue increased by 8.7% to EUR 467.7 million, also
benefiting from a stronger U.S. dollar. On a constant FX basis, revenue rose
by 1.8% in comparison with the third quarter of prior year, reflecting the
favourable development of both infrastructure and services activities, which
more than compensated for the significant impact of the German analogue
switch-off. The full contribution of QuetzSat-1 in the period was complemented
by other infrastructure sales and services rendered with the SES-3 Ka-band
payload. In addition, European services activities increased their
contribution, principally driven by the strong growth of HD+ in Germany.
Excluding the adverse impact of the analogue switch-off, underlying total
revenue growth was 10.9%, at constant FX. Reported EBITDA increased by 8.4% to
EUR 346.9 million, a 1.1% increase on a constant FX basis. The total EBITDA
margin for the third quarter was 74.2% and remains robust.

Increased depreciation and tax expense in the quarter largely absorbed the
favourable development of EBITDA, resulting in a moderate increase in the
third quarter profit of the group to EUR 157.7 million.

Operations Review

The first nine months of 2012 have witnessed the successful launch of three
satellites, two of which, SES-4 and SES-5, have now been brought into service.

SES’ 52^nd satellite, ASTRA 2F, was successfully launched on an Ariane 5
rocket on 29 September and is presently undergoing in-orbit testing. The
satellite carries Ku- and Ka-band payloads for the delivery of
high-performance Direct-to-Home (DTH) and next generation broadband services.
It is the first of a three-satellite investment programme (ASTRA 2E, 2F and
2G), that provides replacement and growth capacity for the UK and Ireland at
the 28.2/28.5 degrees East neighbourhood. The new satellites in this
neighbourhood will, as of October 2013, use additional frequency spectrum
granted to SES by Media Broadcast. The new ASTRA 2F spacecraft provides
Ku-band capacity for UK / Ireland DTH as well as for pan-European services and
for Sub-Saharan Africa. Its Ka-band payload will allow SES Broadband Services
to support download speeds of up to 20 Mbps. The spacecraft is expected to
enter commercial service later this month. In a subsequent event occurring in
October 2012, Eutelsat commenced arbitral proceedings against SES, seeking a
declaration that SES cannot use such additional frequency bands granted by
Media Broadcast without breaching an intersystem coordination agreement signed
in 1999 between Eutelsat and SES. SES strongly disagrees with Eutelsat’s
position and will vigorously defend its right to use these frequencies from
October 4, 2013.

The Group transponder utilisation rate at the end of September was 72.6%,
representing 1,045 of the 1,440 transponders commercially available. The
reduction of the utilisation rate from 81.0% in the prior year period and from
77.0% in Q2, 2012, respectively, is largely related to the onset of new
capacity mainly from QuetzSat-1, the YahLive payload on YahSat-1A, SES-4,
SES-5 and NSS-7 and unfavourably impacted by the analogue switch-off in
Germany and the end of cable contracts at 23.5°E.


European revenue, on a constant FX basis, was down 3.3% compared to the prior
year period. Available satellite capacity increased by 44 transponders
compared to the prior year period, with the new capacity on the Nordic beam of
SES-5 complementing that added by two relocated satellites (ASTRA 1F and ASTRA
1N). Utilisation decreased by a net 12 transponders, as the end of analogue
transmissions in Germany (32 transponders) and of cable contracts at 23.5°E
(15 transponders) were largely compensated by new transponder contracts for
DTH and other applications. A long term contract renewal extended the duration
of Canal+’s entire capacity of 24 transponders at 19.2°E. SES also renewed a
multiple transponder contract with the BBC. The capacity, a total of six
transponders, has been contracted on a long term basis and will be used for
services in both standard and high definition. The capacity will be hosted on
the SES satellites positioned at the orbital position 28.2 degrees East. The
overall utilisation rate in the region stood at 78.3% at the end of September,
with transponder pricing remaining stable.

HD+, the platform for HD broadcast of German commercial TV channels, has
continued to develop strongly. At the end of September 2012, there were
2,800,631 active HD+ households. Of these, 761,456 were paying customers of
HD+. The balance are HD+ users in the initial 12-month free trial period. The
company expects the number of paying households to exceed one million by the
end of the year.

North America

North American revenues, on a constant FX basis, increased by 4.7% compared to
the prior year period. The increase against the prior year period principally
relates to services rendered with the SES-3 Ka-band payload and Government
contracts on third party capacity. Available satellite capacity reduced by 27
transponders due to satellite movements and payload adjustments. Utilised
capacity reduced by 10 transponders compared to the prior year period as new
business partially offset the reduction of capacity on the AMC-15 and AMC-16
spacecraft, resulting in a utilisation rate of 76.5%. As in Europe, pricing in
the North America region remained stable.


International revenues increased by 9.4% over the comparable period in 2011 on
a constant FX basis. At the end of September, an additional 173 transponders
were available compared to last year. The increased figure resulted from new
capacity on QuetzSat-1, SES-4 and SES-5, the relocation of NSS-7 to 340
degrees East, the activation of the YahLive payload on YahSat 1A and the
relocation of AMC-3 to 67°W, as well as other fleet movements. Utilisation
increased by 55 transponders compared to the prior year period, resulting in
an overall utilisation rate of 67.6%. Average revenue per utilised transponder
was stable.

Satellite Health

SES operates a number of spacecraft which are susceptible to solar array
circuit failures. During the quarter to 30 September, there were no events
impacting the commercial capacity availability on those spacecraft.

Outlook and Guidance

The business outlook is for continued growth, in particular in the Western
European TV markets and for a range of applications in the emerging markets
that are the focus of SES’ capacity expansion. SES is well positioned to serve
the demand in these regions.

SES’ year-to-date revenue and EBITDA growth of 1.6% and 1.8% respectively (at
constant FX) meets company expectations. Full year 2012 revenue and EBITDA
growth is expected to be in line with guidance. SES also reiterates the
2012-2014 revenue and EBITDA CAGR guidance (at constant FX) of approximately

SES’ results for the 2012 financial year will be announced on Friday, 22^nd
February 2013.

Condensed consolidated income statement

                          Q3           Q3             2012,         2011,
                         2012,      2011,                  
In euro millions                                       YTD Q3        YTD Q3
Average US dollar          1.2495       1.4388         1.2890        1.4167
exchange rate
Revenue                    467.7        430.1          1,359.6       1,281.5
Operating expenses         (120.8 )   (110.2 )       (347.6  )   (330.1  )
EBITDA                     346.9        319.9          1,012.0       951.4
Depreciation and           (132.7 )   (112.0 )       (386.3  )   (341.5  )
amortisation expense
Operating profit           214.2        207.9          625.7         609.9
Net financing charges      (43.4  )   (44.2  )       (123.4  )   (105.0  )
Profit before tax          170.8        163.7          502.3         504.9
Income tax expense         (10.7  )   (4.4   )       (38.6   )   (41.3   )
Profit after tax           160.1        159.3          463.7         463.6
Discontinued               --           --             --            (7.3    )
Share of associate’s       (2.3   )     (4.3   )       (7.4    )     (7.9    )
Non-controlling            (0.1   )   (0.4   )       0.1        (1.7    )
Profit attributable to
equity holders of the      157.7     154.6         456.4      446.7   

Quarterly development of operating results

In euro          Q3           Q4           Q1           Q2           Q3
                 2011         2011         2012         2012         2012
Average U.S.
dollar           1.4388       1.3641       1.3185       1.2991       1.2495
Revenue          430.1        451.6        450.2        441.7        467.7
Operating        (110.2 )   (128.4 )   (112.9 )   (113.9 )   (120.8 )
EBITDA           319.9        323.2        337.3        327.8        346.9
Depreciation     (103.4 )     (116.1 )     (118.1 )     (118.3 )     (124.2 )
Amortisation     (8.6   )   (8.8   )   (8.7   )   (8.5   )   (8.5   )
Operating        207.9     198.3     210.5     201.0     214.2  

Transponder utilisation by Regional Coverage

In 36                  Q3          Q4          Q1          Q2          Q3
                       2011        2011        2012        2012        2012
Europe Utilised        282         300         298         271         270
Europe Available       301         333         333         333         345
Europe %               93.7%       90.1%       89.5%       81.4%       78.3%
North America          307         302         296         301         297
North America          415         392         390         388         388
North America %        74.0%       77.0%       75.9%       77.6%       76.5%
International          423         466         464         470         478
International          534         590         614         633         707
International %        79.2%       79.0%       75.6%       74.2%       67.6%
Group Utilised         1,012       1,068       1,058       1,042       1,045
Group Available        1,250       1,315       1,337       1,354       1,440
Group %                81.0%       81.2%       79.1%       77.0%       72.6%

Revenue by Regional Coverage

As reported
                Q3      Q3      Change   YTD Q3    YTD Q3    Change
(In euro          2012      2011      (%)        2012        2011        (%)
Europe            220.5     242.7     -9.1%      687.9       710.0       -3.1%
North America     123.9     91.0      +36.2%     316.2       274.7       +15.1%
International     123.3   96.4    +27.9%     355.5     296.8     +19.8%
Group             467.7   430.1   +8.7%      1,359.6   1,281.5   +6.1%
At constant
FX                Q3        Q3        Change     YTD Q3      YTD Q3      Change
                  2012      2011      (%)        2012        2011        (%)
(In euro
Europe            220.5     244.1     -9.7%      687.9       711.7       -3.3%
North America     123.9     104.8     +18.2%     316.2       302.0       +4.7%
International     123.3   110.5   +11.6%     355.5     325.1     +9.4%
Group             467.7   459.4   +1.8%      1,359.6   1,338.8   +1.6%

Analysis by Business Segment

In euro         Infra-       Services    Elimination /    Total
millions            structure                      Unallocated^1
YTD Q3 2012
Revenue             1,190.5         280.9          (111.8)             1,359.6
EBITDA              997.2           39.9           (25.1)              1,012.0
EBITDA              83.8%           14.2%          --                  74.4%
YTD Q3 2011
Revenue             1,133.3         254.5          (106.3)             1,281.5
EBITDA              939.7           37.9           (26.2)              951.4
EBITDA              82.9%           14.9%          --                  74.2%
^1 Unallocated Corporate charges

Additional information is available on our website


A call for investors and analysts will be hosted at 14.00 CET today, 9
November 2012. Participants are invited to call the following numbers five
minutes prior to this time.

Belgium                  +32 (0)2 620 0137
France                         +33 (0)1 70 48 01 63
Germany                        +49 (0)69 2999 3285
Luxembourg                     +352 2088 1429
UK                             +44 (0)20 3450 9571
USA                            +1 646 254 3373
Confirmation Code:             4706412

A presentation, which will be referred to during the calls, will be available
for download from the Investor Relations section of our website

A replay will be available for one week on our website:

Disclaimer / “Safe Harbor” Statement

This presentation does not, in any jurisdiction, and in particular not in the
U.S., constitute or form part of, and should not be construed as, any offer
for sale of, or solicitation of any offer to buy, or any investment advice in
connection with, any securities of SES nor should it or any part of it form
the basis of, or be relied on in connection with, any contract or commitment

No representation or warranty, express or implied, is or will be made by SES,
its directors, officers or advisors or any other person as to the accuracy,
completeness or fairness of the information or opinions contained in this
presentation, and any reliance you place on them will be at your sole risk.
Without prejudice to the foregoing, none of SES or its directors, officers or
advisors accept any liability whatsoever for any loss however arising,
directly or indirectly, from use of this presentation or its contents or
otherwise arising in connection therewith.

This presentation includes “forward-looking statements”. All statements other
than statements of historical fact included in this presentation, including,
without limitation, those regarding SES’ financial position, business
strategy, plans and objectives of management for future operations (including
development plans and objectives relating to SES products and services) are
forward-looking statements. Such forward-looking statements involve known and
unknown risks, uncertainties and other important factors that could cause the
actual results, performance or achievements of SES to be materially different
from future results, performance or achievements expressed or implied by such
forward-looking statements. Such forward-looking statements are based on
numerous assumptions regarding SES and its subsidiaries and affiliates,
present and future business strategies and the environment in which SES will
operate in the future and such assumptions may or may not prove to be correct.
These forward-looking statements speak only as at the date of this
presentation. Forward-looking statements contained in this presentation
regarding past trends or activities should not be taken as a representation
that such trends or activities will continue in the future. SES and its
directors, officers and advisors do not undertake any obligation to update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise.


For further information:
Mark Roberts
Investor Relations
Tel. +352 710 725 490
Yves Feltes
Media Relations
Tel. +352 710 725 311
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