SES: Reported Revenue and EBITDA Growth of 5.5% and 5.6%, Respectively

  SES: Reported Revenue and EBITDA Growth of 5.5% and 5.6%, Respectively

Business Wire

LUXEMBOURG -- February 22, 2013

SES S.A., a leading worldwide satellite operator (NYSE Paris:SESG)
(LuxX:SESG), reports financial results for the twelve months ended 31 December
2012.

FINANCIAL HIGHLIGHTS

  *Reported revenue increased 5.5% to EUR 1,828.0 million (2011: EUR 1,733.1
    million)

       *Revenue at constant FX^1 rose by 1.5%
       *Revenue at constant FX grew by 8.1%, excluding German analogue impact

  *Reported EBITDA increased 5.6% to EUR 1,346.6 million (2011: EUR 1,274.6
    million)

       *EBITDA at constant FX rose 1.6%
       *EBITDA at constant FX grew by 10.9%, excluding German analogue impact
       *EBITDA margin of 73.7% (2011: 73.5%)

  *Reported operating profit of EUR 790.5 million (2011: EUR 808.2 million)
    reflects higher depreciation (resulting from fleet expansion) and includes
    exceptional charges
  *Profit of the group increased 5.0% to EUR 648.8 million (2011: EUR 617.7
    million)
  *EPS per A-share EUR 1.62 (2011: EUR 1.56)
  *Dividend of EUR 0.97 (2011: EUR 0.88) per A-share proposed
  *Record contract backlog of EUR 7.5 billion (2011: EUR 7.0 billion),
    reflecting renewals and new business totalling EUR 2 billion signed during
    the year
  *Net debt / EBITDA ratio of 2.96 at year end 2012 (2011: 3.12 times)

Romain Bausch, President and CEO, commented:

“2012 was a highly successful year for SES. As German analogue broadcasting
was finally switched off, taking EUR 108 million out of our revenue, our
strong sales pipeline not only overcame this challenge, but delivered absolute
top line growth. Revenue and EBITDA growth in 2012 was in line with guidance
although impacted by the SES-5 launch delay and reduction of capacity on
AMC-16, which in total represented EUR 13 million of lost revenue. New
capacity launched in 2012 will fuel growth in 2013 and 2014, as momentum is
maintained in Latin America, Africa and Asia. Having successfully launched
three satellites in 2012, we will be launching another four spacecraft in
2013, which will add over 100 new transponders to support our growth,
especially in the developing markets. The group’s 3-year revenue and EBITDA
CAGR guidance of 4.5% is reiterated. We also look forward to two launches,
with a subsequent entry into service, of the O3b Networks constellation, an
exciting initiative which we expect to deliver substantial value in the years
to come.”

^1 ”Constant FX” refers to the presentation of the prior year comparative
figures on a constant exchange rate basis, whereby those figures are
translated into euro using the actual exchange rates prevailing in the current
period.

Financial Review

Reported revenue for the full year increased by 5.5% to EUR 1,828.0 million,
while EBITDA rose by 5.6% to EUR 1,346.6 million. On a constant FX basis,
revenue and EBITDA rose by 1.5% and 1.6%, respectively. Excluding the EUR 13
million impact of the late launch of SES-5 (and the consequent delays in the
European Commission acceptance procedure for the EGNOS payload) and the
reduced revenue from AMC-16 following solar array circuit degradation,
constant FX revenue and EBITDA growth would have been 2.2% and 2.5%,
respectively. The Group EBITDA margin increased to 73.7% (2011: 73.5%), with
the industry-leading margin on infrastructure revenue increasing to 83.5%
(2011: 82.3%), while services delivered a margin of 14.8%, in line with the
prior year.

New satellites entering service resulted in an increase in depreciation, which
was amplified by the stronger U.S. dollar exchange rate, and impairment
charges recorded in respect of solar array circuit failures on AMC-16 (as
detailed below). Reflecting these higher depreciation charges, operating
profit was EUR 790.5 million (2011: EUR 808.2 million). Net financing charges
increased by EUR 11.1 million, principally due to a reduction in foreign
exchange gains and a value adjustment on a financial asset.

Profit of the group rose by 5.0% to EUR 648.8 million, driven by operating
earnings and taxation. The positive contribution from taxation resulted from
the release of EUR 107.9 million of tax provisions. Excluding this release,
the effective tax rate would have been 10.6%.

Net operating cash flow of EUR 1,233.4 million showed an increase of EUR 153.5
million, or 14.2%, year-on-year, reflecting higher EBITDA and a more
favourable working capital development. With outflows for investing activities
falling in 2012, the free cash flow before financing activities more than
doubled to EUR 535.7 million.

The group’s net debt/EBITDA ratio was 2.96 at the end of the year, against
3.12 times at the end of 2011.

The group’s contract backlog at the year-end was EUR 7.5 billion, a new
all-time high, reflecting excellent progress in both renewals and new
business, including contracts for DTH platforms signed in Q4 in Latin America
on SES-6, and in Europe.

A dividend of EUR 0.97 per A-Share is proposed in respect of 2012.

Operations Review

Notable events during the year were the switch-off of analogue TV broadcasting
in Germany, the successful launch of three satellites (SES-4, SES-5 and ASTRA
2F) adding a total of 129 C- and Ku-band transponders for growth markets, and
the activation of the Ka-band payload on ASTRA 2F to enhance satellite
broadband offerings in Europe.

Europe

European region revenue declined by 3.6% to EUR 923.3 million on a constant FX
basis. This decline is due to the analogue switch-off in Germany in April,
which led to the loss of EUR 108 million of revenue. This loss was partially
offset by EUR 74 million of new revenue added in the European region, arising
from the re-commercialisation of part of the capacity freed up, and growth at
other European orbital positions, as well as by the robust performance of HD+
in Germany, whose revenue grew strongly in line with the number of paying
customers.

An overall European inventory increase through the period of 12 transponders,
to 345 transponders, was delivered with the launch and entry into service of
SES-5 and its Ku-band Nordic beam. The number of utilised transponders
declined by a net 21 as a result of the German analogue switch-off at 19.2°E
and the cable contract terminations at 23.5°E, which were partially
compensated by increased utilisation at 28.2°E, 31.5°E and 5°E. The
utilisation rate in Europe at the year-end was 80.9%, compared to 90.1% at the
end of 2011. Transponder pricing in the various markets remained stable.

Satellite reinforced its position as the leading TV distribution
infrastructure in Europe, ahead of terrestrial and cable reception, according
to the 2011 European Satellite Monitors market survey. ASTRA served 62
million, or 74%, of all European satellite homes, while ASTRA’s total reach,
including redistribution by terrestrial networks, grew by 5% to 142 million TV
households. Of the 186 million digital TV homes, 44% were served by satellite.
High definition channels continued to proliferate, with 356 carried on ASTRA
satellites at end of 2012, up from 267 the year before.

The positive trend continued into 2012; over 18 million German households
received TV via satellite, more than any other distribution platform, an
increase of over 3% and representing a market share of 47%. HD penetration
also continued to grow, being received by 13.1 million satellite TV households
in Germany (2011: 11.5 million). The full results of the 2012 European
Satellite Monitors survey are due to be published in March 2013.

A new DTH platform, MagtiSat in Georgia, began broadcasting from 31.5°E at the
beginning of the year. It cemented its successful start with the addition of a
fourth transponder early in 2013 to support its growing HD and SD content
line-up.

The BBC added 48 dedicated channels in HD and SD for the Olympic Games in
London, enabling real-time coverage of all events.

Significant capacity renewals were agreed during the year, notably with Canal+
at 19.2°E and with the BBC and Globecast at 28.2°E, securing their substantial
capacity requirements.

The launch and entry into service of the ASTRA 2F satellite delivered
additional capacity for European operations. The Ka-band payload added 1.7
GHz, which now enables SES Broadband Services to deliver satellite
connectivity with download speeds of up to 20 Mbps. NordNet, Viveole and Wibox
in France are the first service providers marketing this enhanced connectivity
offering. ASTRA 2F also carries additional frequencies for the 28.2°/28.5°E
neighbourhood, to be commercialised from October 2013 under an agreement with
Media Broadcast, the rights holder. As disclosed in the Q3 2012 results
announcement, an arbitration process has been initiated by Eutelsat, on whose
satellite these frequencies are presently commercialised. SES strongly
disagrees with Eutelsat’s position and will vigorously defend its right to use
these frequencies from October 4, 2013.

Services activities in Europe developed well, with HD+ continuing to make good
progress in Germany, passing 1 million paying users in January 2013. The
platform added 3 programmes during 2012 and now carries 15 HD channels. The
number of paying users at the end of 2012 was 945,000, more than double the
number at year end 2011.

North America

In the North America region, revenue increased by 5.7% to EUR 422.1 million on
a constant FX basis. The increase was largely due to new government service
business and services rendered with the SES-3 Ka-band payload.

The North American fleet inventory reduced by 8 transponders to a total of
384, arising from the payload reduction of AMC-16 following incremental solar
array circuit failures in 2012. The number of utilised transponders reduced by
13 to 289. The utilisation rate at the end of the period was 75.3%, compared
to 77.0% at the end of 2011. Transponder pricing in the region remained
stable.

Strong performance in the U.S. Government segment was driven primarily by the
effective SES-GS response to new opportunities that became available as a
result of changes in U.S. Government procurement practices.

During the first half, NASA TV contracted one transponder on AMC-18 for HD and
SD programming.

The U.S. presidential election delivered an expected boost to Occasional Use
(OU) services. There was a record use of SES satellites over the United States
and elsewhere. Usage peaked at 1200 MHz across the fleet, with all available
North American OU capacity filled. Additional demand was generated following
the damage caused by Hurricane Sandy.

In-flight broadband connectivity services continued to develop. In December,
GoGo announced that it is contracting capacity of more than 6 transponders on
several SES spacecraft to offer in-flight broadband connectivity across the
continental United States and on transatlantic routes.

International

Activities in the international region delivered an 8.5% increase in revenue
at constant FX to EUR 482.6 million. The increase came from numerous new
contracts across the markets served and a full year contribution from
QuetzSat-1.

The International transponder inventory increased by 117, resulting from the
entry into service of SES-4 and SES-5 and the repositioning of AMC-3 and
NSS-7, to total 707 transponders. The number of utilised transponders
increased by 34 to 500, as capacity on SES-4, NSS-7 and YahLive, among others,
was taken up. The utilisation rate in the International region at the end of
the period was 70.7%, compared to 79.0% at the end of 2011. Transponder
pricing across the region remained stable.

In Latin America, Telefonica unit Media Networks Latin America (MNLA) signed a
multi-transponder, multi-year contract on AMC-4 for DTH services in Central
America and the Caribbean. The AMC-3 spacecraft has been relocated to 67°W,
where it is co-located with AMC-4.

Rede Novo Tempo renewed its capacity on NSS-806 for TV and radio services in
Brazil.

Communications networks applications also continued to develop, with
Telespazio Brasil taking capacity on the SES-4 satellite for high speed
broadband and VSAT services in Brazil, and Astrium Services renewed capacity
on SES-4 for its maritime communications networks around Latin America and
EMEA. Level 3 Communications concluded another SES-4 agreement, taking
capacity for corporate broadband network services in Brazil and elsewhere in
Latin America.

Across Africa and the Middle East regions, VSAT and broadband applications
were also prominent. ICCES, a Saudi Arabia–based service provider, took
capacity on SES-4 to expand its VSAT networks in the Middle East, while
Netherlands-based Castor Networks contracted additional capacity on NSS-7 for
VSAT networks in southern Africa. TRT Turk took capacity on SES-5 to
distribute its TV and radio programming to sub-Saharan Africa. 2Day Telecom, a
subsidiary of VimpelCom Group, signed up more NSS-12 capacity for GSM backhaul
in Kazakhstan.

SES Broadband Services (SBBS) established further partnerships for delivery of
satellite internet connectivity in Africa. SatADSL has signed a marketing
agreement with SBBS for sub-Saharan Africa, to deliver broadband and
VoiceoverIP connectivity via ASTRA 4A at 5°E. Damy Engineering is also using
capacity on ASTRA 4A to deliver SBBS in Benin, West Africa. In November, SBBS
installed and managed a network to support the parliamentary elections in
Burkina Faso which took place in early December.

The Asia-Pacific region saw development of telecommunications and TV
applications. Telikom PNG contracted over 100 MHz on the NSS-6 and NSS-9
satellites to deliver GSM backhaul for the mobile network in Papua New Guinea.
PacTel, an important telecom player, also contracted additional capacity on
the NSS-6 and NSS-9 satellites, to extend voice and data connectivity across
the Pacific region. Romantis took capacity on NSS-12 for VSAT and network
services in Russia and Central Asia. Mediascape of the Philippines signed
additional capacity on the SES-7 and NSS-11 satellites for the enhanced HD and
SD offerings of the pay TV broadcaster Cignal TV.

Other Developments

O3b Networks

O3b Networks continued the installation of its ground network systems, in
preparation for service launch. Service offerings for the Internet Trunking
(O3bTrunk), Energy (O3bEnergy), Maritime (O3bMaritime) and Mobile backhaul
(O3bCell) sectors were unveiled. New agreements were signed with Royal
Caribbean Cruises, and with regional telecoms operators for delivery of
high-speed connectivity in Madagascar, Cook Islands, Colombia and Brunei,
among others. Two launches, each of which will loft four satellites, are
scheduled in Q2 and Q3 of 2013, with network services expected to start in the
second half of 2013. SES presently has a 47% interest in O3b Networks.

Satellite Health

The AMC-16 satellite experienced further solar array circuit failures during
the year. Three events impaired power generation, in January, April and
November. The payload of the satellite has been reduced, with customer
payments adjusted accordingly. The carrying value of the spacecraft has also
been adjusted, resulting in a EUR 36.6 million impairment charge. No other
spacecraft have experienced solar array impairments requiring reduction of
commercial capacity in 2012.

Forthcoming Launches

Four spacecraft are due to launch in 2013. In June, three satellites are
scheduled: SES-6, which will deliver 49 additional transponders in Latin
America and the Atlantic Ocean Region; SES-8, a replacement spacecraft for
Asia-Pacific which will add 21 transponders for the region, and ASTRA 2E, a
replacement spacecraft for UK and Ireland, which will add 12 transponders for
Africa via a steerable beam. In September, ASTRA 5B is scheduled, to be
positioned at 31.5°E, where its payload will add 21 transponders to the 19
presently available on ASTRA 1G.

SES signed a contract with Boeing for the construction of SES-9, a replacement
satellite for the Asian markets served from 108.2°E. The spacecraft will add
53 transponders at this orbital position, and is scheduled for launch in 2015.

In mid-2013, SES-8 will be the Group’s first spacecraft to be launched by
SpaceX. SES has signed an agreement with SpaceX for three further launches on
the Falcon 9 rocket. SpaceX adds diversity in the satellite launch market and
offers additional security for timely access to space.

Outlook and Guidance

SES reiterates the three-year CAGR 2012-2014 guidance, which is for revenue
and EBITDA to increase by approximately 4.5% (at constant FX). When excluding
analogue revenue from the basis, the projected three-year CAGR 2012-2014
growth rates for revenue and EBITDA are 7.5% and 8.0% respectively (at
constant FX).

SES’ 2013 and 2014 revenue growth will be primarily driven by SES’ investment
in incremental capacity for emerging markets (SES-4, SES-5, SES-6 and SES-8),
continued growth from European digital infrastructure (19.2°E, 28.2°E and
31.5°E) and services (HD+). While for 2013 the year-on-year growth will remain
impacted by the analogue switch-off on 30 April 2012, the 2014 growth rate
will be unaffected by this impact and will see the ramp-up of new capacity
launched in 2012 and 2013 as well as an expected increase in the utilisation
rates in all regions.

For 2013, revenue and EBITDA growth guidance is for 4%-5% (at constant FX),
based on the present launch schedule and fleet health status. EBITDA growth
should reflect an increased contribution from services during 2013. Excluding
the analogue switch-off, revenue and EBITDA are expected to grow by 6.5%-7.5%
and 7%-8%, respectively. Expected EBITDA growth rates result from the greater
efficiencies of SES operations (following the 2011 reorganisation) and
continued cost management.

SES also reiterates that capital expenditure will reduce, as the satellite
replacement cycle approaches its minimum level. The average annual spending
reduces from EUR 700 million during 2011-2013 to a maximum of EUR 450 million
during 2014-2017. Free cash flow before financing and dividends will therefore
significantly increase from 2014 onwards, reflecting the growth in revenue and
EBITDA and the reduction in capital expenditure.

Quarterly development of operating results

                                                                
                          Q4         Q1         Q2         Q3         Q4
In millions of euro
                          2011       2012       2012       2012       2012
Average U.S. dollar       1.3641     1.3185     1.2991     1.2495     1.2970
exchange rate
                                                                      
Revenue                   451.6      450.2      441.7      467.7      468.4
Operating expenses        (128.4 )  (112.9 )  (113.9 )  (120.8 )  (133.8 )
EBITDA                    323.2      337.3      327.8      346.9      334.6
                                                                      
Depreciation expense      (116.1 )   (118.1 )   (118.3 )   (124.2 )   (155.0 )
Amortisation expense      (8.8   )  (8.7   )  (8.5   )  (8.5   )  (14.8  )
Operating profit          198.3      210.5      201.0      214.2      164.8

Transponder utilisation at end of period

                          Q4      Q1      Q2      Q3      Q4
In 36 MHz-equivalent                                
                          2011    2012    2012    2012    2012
                                                          
Europe Utilised           300     298     271     270     279
Europe Available          333     333     333     345     345
Europe %                  90.1%   89.5%   81.4%   78.3%   80.9%
                                                          
North America Utilised    302     296     301     297     289
North America Available   392     390     388     388     384
North America %           77.0%   75.9%   77.6%   76.5%   75.3%
                                                          
International Utilised    466     464     470     478     500
International Available   590     614     633     707     707
International %           79.0%   75.6%   74.2%   67.6%   70.7%
                                                          
Group Utilised            1,068   1,058   1,042   1,045   1,068
Group Available           1,315   1,337   1,354   1,440   1,436
Group %                   81.2%   79.1%   77.0%   72.6%   74.4%

U.S. dollar exchange rate

EUR 1 =             2012 Average  2012 Closing  2011 Average  2011 Closing
United States        1.2910         1.3194         1.4035         1.2939
dollar

Revenue

In millions of euro                2012     2011     Variance  %
Revenue                             1,828.0   1,733.1   +94.9      +5.5%
Revenue with prior at constant FX   1,828.0   1,801.6   +26.4      +1.5%

For chart (or graph), please see www.ses.com

Revenue increased 5.5% on a reported basis and by 1.5% at constant FX compared
to 2011.

On a constant FX basis, Infrastructure revenue of EUR 1,586.4 million was in
line with the prior year level (2011: EUR 1,586.8 million), with the EUR 108
million reduction of German analogue revenue being partially offset by EUR 74
million of new European revenue generated by commercialisation of freed-up
capacity at 19.2°E and new contracts for Central and Eastern European markets
at 23.5°E and 31.5°E. North American revenue growth of 5.7% originated
primarily from the SES-3 Ka-Band payload and new government services, which
were partially offset by reduced revenue from AMC-16 due to satellite health
issues. International revenue growth of 8.5% was driven by QuetzSat-1, YahLive
and the additional new capacity, mainly on the SES-4 and SES-5 satellites,
brought into service during 2012.

Services revenues rose 6.2% at constant FX to EUR 386.9 million (2011: EUR
364.2 million), driven by higher contributions from US Government Services and
HD+.

Revenue by downlink region:

As reported          Q4      Q4
                                  Change     2012     2011     Change
In millions of       2012    2011    (%)                             (%)
euro
Europe               235.4   245.0   -3.9%       923.3     955.0     -3.3%
North America        105.9   92.7    +14.2%      422.1     367.4     +14.9%
International        127.1  113.9  +11.6%      482.6    410.7    +17.5%
Group                468.4  451.6  +3.7%       1,828.0  1,733.1  +5.5%

At constant FX       Q4      Q4
                                  Change     2012     2011     Change
In millions of       2012    2011    (%)                             (%)
euro
Europe               235.4   245.7   -4.2%       923.3     957.4     -3.6%
North America        105.9   97.4    +8.7%       422.1     399.4     +5.7%
International        127.1  119.7  +6.2%       482.6    444.8    +8.5%
Group               468.4  462.8  +1.2%      1,828.0  1,801.6  +1.5%

EBITDA

In millions of euro                      2012     2011     Variance  %
Operating expenses                        (481.4)   (458.5)   -22.9      -5.0%
Operating expenses with prior at          (481.4)  (475.6)  -5.8      -1.2%
constant FX
EBITDA                                    1,346.6   1,274.6   +72.0      +5.6%
EBITDA with prior at constant FX          1,346.6   1,326.0   +20.6      +1.6%

For chart (or graph), please see www.ses.com

EBITDA rose 5.6% as reported, and by 1.6% at constant FX against the prior
year.

Overall operating expenses of EUR 481.4 million (2011: 475.6 million)
increased by 1.2% (at constant FX) year-on-year, reflecting higher costs of
sales associated mainly with the increased revenue contribution from HD+ and
SES-GS. Excluding costs of sales, and adjusting for the reorganisation charge
of EUR 14.8 million in 2011, operating costs fell EUR 12.2 million, or 3.8%,
year-on-year.

The Infrastructure margin expanded year-on-year to 83.5% (2011: 82.3%), with
the Services margin maintained at 14.8% (2011:14.8%). As a result, the SES
group EBITDA margin increased to 73.7% (2011: 73.5%).

In millions of  Infrastructure  Services  Elimination /            Total
euro                                         Unallocated^1
Revenue          1,586.4          386.9      (145.3)                   1,828.0
EBITDA           1,324.8          57.2       (35.4)                    1,346.6
                                                                       
2012 % margin    83.5%            14.8%      --                        73.7%
2011 % margin    82.3%            14.8%      --                        73.5%

^1 Revenue elimination refers to cross-charged capacity and other services;
EBITDA impact represents unallocated corporate expenses

Operating profit

In millions of euro                     2012     2011     Variance  %
Depreciation expenses                    (515.6)   (431.7)   -83.9      -19.4%
Amortisation expenses                    (40.5)   (34.7)   -5.8      -16.7%
Operating profit                         790.5     808.2     -17.7      -2.2%
Operating profit with prior at           790.5     837.8     -47.3      -5.6%
constant FX

Depreciation charges increased by EUR 83.9 million in 2012, resulting from
three main factors:

1. The stronger U.S. dollar in 2012, which accounted for EUR 21.6 million of
the increase;

2. New satellite capacity entering service or recognised throughout the period
(Yahlive, SES-3, ASTRA 1N, SES-2, QuetzSat-1, SES-4, SES-5, ASTRA 2F);

3. A total of EUR 36.6 million in impairment charges taken in 2012 on the
AMC-16 satellite as a result of solar array circuit failures.

Excluding the impact of the exceptional AMC-16 charge, the underlying
depreciation charge was EUR 479.0 million.

Profit from continuing operations before tax

In millions of euro                     2012     2011     Variance  %
Net interest expense                     (222.5)   (220.9)   -1.6       -0.7%
Capitalised interest                     57.1      57.6      -0.5       -0.8%
Net foreign exchange gains               4.5       9.6       -5.1       -53.1%
Value adjustment on financial assets     (8.7)    (4.8)    -3.9      -81.3%
Net financing charges                    (169.6)   (158.5)   -11.1      -7.0%
                                                                  
Profit on continuing operations before   620.9    649.7    -28.8     -4.4%
tax

The increase of EUR 11.1 million in net financing charges in 2012 arose mainly
from a reduction in net foreign exchange gains in 2012 compared to 2011, and
higher value adjustments on financial assets.

Profit attributable to equity holders of the parent

In millions of euro                       2012    2011    Variance  %
                                                                        
Income tax expense                         42.2     (16.0)   +58.2      --
Share of associates’ result                (14.0)   (8.4)    -5.6       -66.6%
Loss after tax from discontinued           --       (7.3)    +7.3       --
operations
Non-controlling interests                  (0.3)   (0.3)   --        --
Profit attributable to SES equity          648.8   617.7   +31.1     +5.0%
holders

The positive contribution from taxation resulted from the release of EUR 107.9
million of tax provisions. Excluding this release, the effective tax rate
would have been 10.6%.

Cash flow

In millions of euro                    2012     2011     Variance  %
Net operating cash flow                 1,233.4   1,079.9   +153.5     +14.2%
Investing activities                    (697.7)   (850.3)   +152.6     +17.9%
Free cash flow before financing         535.7     229.6     +306.1     +133.3%
activities

Net operating cash flow increased strongly, partly due to strengthening U.S.
dollar, but also from higher cash generation from operations and a more 
favourable development of working capital.

Cash applied to the purchase of tangible assets was significantly lower than
in 2011, resulting in free cash flow before financing activities more than
doubling to EUR 535.7 million.

Net debt

In millions of euro        2012     2011     Variance  %
Cash and cash equivalents   (240.0)   (218.0)   -22.0      -10.1%
Loans and borrowings        4,227.7  4,196.6  +31.1     +0.7%
Net debt                    3,987.7   3,978.6   +9.1       +0.2%
                                                           
Net debt / EBITDA           2.96      3.12      -0.16      -5.1%

The group’s net debt/EBITDA ratio was 2.96 at the end of the year, against
3.12 times at the end of 2011.

CONSOLIDATED INCOME STATEMENT

For the year ended December 31

In millions of euro                                     2012       2011
                                                                     
Continuing operations
Revenue                                                  1,828.0     1,733.1
                                                                     
Cost of sales                                            (173.3  )   (135.2  )
Staff costs                                              (180.7  )   (173.5  )
Other operating expenses                                 (127.4  )   (149.8  )
Operating expenses                                       (481.4  )   (458.5  )
                                                                     
EBITDA^1                                                 1,346.6     1,274.6
                                                                     
Depreciation expense                                     (515.6  )   (431.7  )
Amortisation expense                                     (40.5   )   (34.7   )
Operating profit                                         790.5       808.2
                                                                     
Finance revenue                                          6.5         14.9
Finance costs                                            (176.1  )   (173.4  )
Net financing charges                                    (169.6  )   (158.5  )
                                                                     
Profit before tax                                        620.9       649.7
                                                                     
Income tax income / (expense)                            42.2        (16.0   )
Profit after tax                                         663.1       633.7
                                                                     
Share of joint ventures and associates’ result           (14.0   )   (8.4    )
Profit from continuing operations                        649.1       625.3
                                                                     
Discontinued operations
Loss after tax from discontinued operations              --          (7.3    )
                                                                     
Profit for the year                                      649.1       618.0
                                                                     
Attributable to:
Equity holders of the parent                             648.8       617.7
Non-controlling interests                                0.3         0.3
                                                         649.1       618.0
                                                                     
Earnings per share (in euro)^2
Class A shares (of which from continuing operations      1.62        1.56
1.62 (2011: 1.58))
Class B shares (of which from continuing operations      0.65        0.62
0.65 (2011: 0.63))

^1 Earnings before interest, tax, depreciation and amortisation

^2 Earnings per share are calculated by dividing the net profit attributable
to ordinary shareholders for the period by the weighted average number of
shares outstanding during the year as adjusted to reflect the economic rights
of each class of share. Fully diluted earnings per share are insignificantly
different from basic earnings per share.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at December 31

In millions of euro                           2012     2011
                                                         
Non-current assets
Property, plant and equipment                  4,048.7   3,708.9
Assets in the course of construction           1,050.3   1,300.4
Total property, plant and equipment            5,099.0   5,009.3
                                                         
Intangible assets                              2,864.4   2,913.4
Investments in joint ventures and associates   158.4     150.4
Other financial assets                         23.8      48.0
Valuation of financial derivatives             --        3.3
Other non-current financial assets             70.1      45.3
Deferred tax assets                            89.2      60.5
Total non-current assets                       8,304.9   8,230.2
                                                         
Current assets
Inventories                                    4.4       9.3
Trade and other receivables                    412.7     382.8
Prepayments                                    34.9      29.5
Valuation of financial derivatives             4.3       –
Cash and cash equivalents                      240.0     218.0
Total current assets                           696.3     639.6
                                                         
Total assets                                   9,001.2   8,869.8
                                                         
                                                         
Equity
Attributable to equity holders of the parent   2,806.1   2,534.2
Non-controlling interests                      79.4      83.1
Total equity                                   2,885.5   2,617.3
                                                         
Non-current liabilities
Interest-bearing loans and borrowings          3,068.0   3,579.8
Provisions and deferred income                 350.6     381.2
Valuation of financial derivatives             --        1.3
Deferred tax liabilities                       671.5     694.0
Other long-term liabilities                    42.5      18.2
Total non-current liabilities                  4,132.6   4,674.5
                                                         
Current liabilities
Interest-bearing loans and borrowings          1,159.7   616.8
Trade and other payables                       410.7     444.5
Valuation of financial derivatives             40.4      56.9
Income tax liabilities                         134.1     201.3
Deferred income                                238.2     258.5
Total current liabilities                      1,983.1   1,578.0
                                                         
Total liabilities                              6,115.7   6,252.5
                                                         
Total liabilities and equity                   9,001.2   8,869.8

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended December 31

In millions of euro                                     2012       2011
                                                                     
Profit from continuing operations before tax             620.9       649.7
Loss from discontinued operations before tax             --          (2.6    )
Profit before tax – Total                                620.9       647.1
                                                                     
Taxes paid during the year                               (37.9   )   (64.0   )
Finance costs                                            132.4       126.2
Depreciation and amortisation                            556.1       470.3
Amortisation of client upfront payments                  (41.0   )   (39.0   )
Other non-cash items in consolidated income statement    23.5        12.1
Consolidated operating profit before working capital     1,254.0     1,152.7
changes
                                                                     
(Increase) / decrease in inventories                     0.6         (2.6    )
(Increase) / decrease in trade and other debtors         (63.7   )   (94.6   )
(Increase) / decrease in prepayments and deferred        14.5        9.7
charges
Increase / (decrease) in trade and other creditors       64.5        6.0
Increase / (decrease) in payments received on account    11.6        (43.5   )
Increase / (decrease) in upfront payments and deferred   (48.1   )   52.2
income
Changes in operating assets and liabilities              (20.6   )   (72.8   )
                                                                     
Net operating cash flow                                  1,233.4     1,079.9
                                                                     
Cash flow from investing activities
Net disposal / (purchase) of intangible assets           (1.6    )   (3.0    )
Purchase of tangible assets                              (634.0  )   (834.5  )
Disposal of tangible assets                              3.2         6.4
Disposal of controlling interests in ND SatCom, net of   --          (9.3    )
cash disposed
Investment in equity-accounted investments               (68.1   )   (7.3    )
Repayment of loan to associate                           4.1         (2.6    )
Other investing activities                               (1.3    )   --
Net cash absorbed by investing activities                (697.7  )   (850.3  )
                                                                     
Free cash flow before financing activities               535.7       229.6
                                                                     
Cash flow from financing activities
Proceeds from borrowings                                 790.6       926.9
Repayment of borrowings                                  (784.6  )   (847.8  )
Dividends paid on ordinary shares, net of dividends      (351.0  )   (317.0  )
received
Dividends paid to non-controlling interest               (5.6    )   --
Interest on borrowings                                   (194.5  )   (178.1  )
Issue of shares                                          86.7        --
Acquisition of Treasury Shares                           (86.7   )   --
Proceeds on treasury shares sold                         44.1        29.9
Financing received from non-controlling interests        --          58.9
Net cash absorbed by financing activities                (501.0  )   (327.2  )
                                                                     
Net foreign exchange movements                           (12.7   )   (8.1    )
                                                                     
Net (decrease) / increase in cash                        22.0        (105.7  )
Net cash at beginning of the year                        218.0       323.7
Net cash at end of the year                              240.0       218.0

Additional information is available on our website www.ses.com


TELECONFERENCES

A press call will be hosted at 11.00 CET today, 22 February 2013. Journalists
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

Confirmation Code:                           9894212

A call for investors and analysts will be hosted at 14.00 CET today, 22
February 2013. Participants are invited to call the following numbers five
minutes prior to this time.

Belgium                                      +32 (0)2 620 0138
France                                       +33 (0)1 70 99 42 77
Germany                                      +49 (0)89 1214 00699
Luxembourg                                   +352 342 080 8654
UK                                           +44 (0)20 3364 5381
USA                                          +1 212 444 0481

Confirmation Code:                           2240157

A presentation, which will be referred to during the call, will be available
for download from the Investor Relations section of our website www.ses.com

A replay will be available for one week on our website: www.ses.com

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
whatsoever.

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.

Contact:

For further information:
SES S.A.
Investor Relations
Mark Roberts, +352 710 725 490
Mark.Roberts@ses.com
or
Media Relations
Yves Feltes, +352 710 725 311
Yves.Feltes@ses.com
 
Press spacebar to pause and continue. Press esc to stop.