The SES Group in Space

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Kristopher Todd
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1 Satellite Industry Globalizes SES/ASTRA - The Company Operator of ASTRA, the leading DTH satellite system in Europe Satellite fleet: 12 satellites in operation (9 at 19.2 East, 3 at 28.2 East) 2 additional satellites (ASTRA 1K and 3A) under manufacture ASTRA carries more than 415 digital and analogue services and 32 radio services of leading European and international broadcasters for Europe's main language 7markets ASTRA audience exceeds 89 million households in 22 European countries Global Forum Newcastle Octobre 21 Christine Leurquin The SES Group in Space SES Strategy: To Create A Global Broadband Communications GE Americom Global Broadband Communications Next Generation s Geographic Expansion SES Strategy Product and Diversification AsiaSat NSAB StarOne Core Business DTH Europe (1H, 2B, 1K, ) ASTRA -NET targeted achieved SES Multimedia S. A. 3 SES Multimedia S. A. 4 Shaping the future of broadband satellite communications Shaping the future of broadband satellite communications SES Global, a newly-formed company headquartered in Luxembourg, to become the world s 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 1% 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 2.1% voting in SES Global SES Global financially strong: proforma 2 revenues of EUR 1.41bn (US$ 1.283bn), EBITDA of EUR 1.179bn (US$ 1.73bn) and EBITDA margins in excess of 8% 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 SES Multimedia S. A. 5 SES Multimedia S. A. 6 1

for Europe's main language 7markets ASTRA audience exceeds 89 million households in 22 European countries Global Forum Newcastle 18-19 Octobre 21 Christine Leurquin The SES Group in Space SES

2 Transaction Rationale SES Strategy: Broadband Infrastructure for a Global Communications Network 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 Next generation systems ASTRA Broadband Interactive multicast digital / analogue / SES Multimedia S. A. 7 SES Multimedia S. A. 8 Global Transponder Use Satellite DTH Reception in Europe * 36 MHz transponder equivalent In Mill. DTH/SMA Households A 24E 29E Video Last-mile IP/ YE95 YE96 YE97 YE98 YE99 YE ASTRA Total Satellite Source: Euroconsult * 29 countries (incl. 7 additional CEE countries: Belarus, Bulgaria, Estonia, Latvia, Lithuania, Romania and Ukraine and foreign households projection for Germany) SES Multimedia S. A. 1 SES Multimedia S. A. 9 Source: SES/ASTRA, Satellite Monitors In Mill. Households Cable and Satellite Reception in Europe % % +3.6% +2.6% % +11.9% +8.3% +1.7% 2 SES Strategy: To Create A Global Broadband Communications GE Americom Geographic Expansion Global Broadband Communications SES Strategy Next Generation s Product and Diversification YE96 YE97 YE98 YE99 YE Cable Satellite AsiaSat NSAB StarOne Core Business DTH Europe (1H, 2B, 1K, ) ASTRA -NET targeted achieved * 29 countries (incl. 7 additional CEE countries: Belarus, Bulgaria, Estonia, Latvia, Lithuania, Romania and Ukraine and foreign households projection for Germany) SES Multimedia S. A. 11 Source: SES/ASTRA, Satellite Monitors SES Multimedia S. A. 12 2

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 Next generation systems ASTRA

3 ASTRA-NET : a B2B or B2C Solution Value Chain Positioning Content Television & Television & High Speed High Speed DVB DVB Multiplexer Multiplexer ASTRA -NET platform Terrestrial Return 3 different delivery methods: IP-Multicast File Delivery IP-Multicast s TCP/IP High Speed Multimedia-PC Set Top Box ASTRA-NET Receiver Software Television Web Casting Micro Channels Fast Bandwidth Network SES Multimedia Business SES Multimedia Transponder Leasing - Providing capacity - Ku-Band and Ka-Band - Overall system management - Equal treatment of customers SES Network - Providing Mbytes to S.P.s - Ku-Band and/or Ka-Band - Wholesale S.P. billing - Early S.P.s - Small S.P.s - migrating to A.S.P. External Full - Provide service on own networks ASTRA-NET = Platform Operations + Transmission + Receive Site Software SES Multimedia S. A. 13 End Users SES Multimedia S. A. 14 Across Europe, competitive terrestrial offering will be accessible to SOHOs and SMEs by 25 Strengths and weaknesses Terrestrial coverage of potential SMEs 25-5% % Satellite DSL Cable Fibre / LAN LMDS 3G Speed Return / FW ISDN 2Mbits / 38 Mbits 5 Kbits / 8 Mbits 5 Kbits / 4 Mbits 1-1 Mbits / 1 Mbits 1 Mbit / 4 Mbits 4 Kbits / 2 Mbits Symmetry Coverage Bundling Scalability Asym. Continental Global Local / Asym Sym. regional Local / Asym. regional Sym. Local Asym. Local Sym. Continental? No Videostream / Bandwith SES Multimedia S. A. 15 SES Multimedia S. A. 16 GLOBAL APPLICATIONS AND SERVICES The broadcast/multicast model Point-to-multipoint PSTN return DTH payload Gateway Fibre backbone ISP Public Switched Telephone Network SES Multimedia S. A. 17 SES Group multimedia growth 4 ASTRA-NET platforms deployed worldwide Set to create a de facto multimedia network standard 5 customers using ASTRA-NET technology worldwide Broadband multimedia revenues increased to 35% of 1999 level Pre-commercial testing of ASTRA BBI initiated Stockholm Luxembourg Rio de Janeiro Amsterdam Milano Kuala Lumpur Hong Kong Existing Planned SES Multimedia S. A. 18 3

Multimedia Business SES Multimedia Transponder Leasing - Providing capacity - Ku-Band and Ka-Band - Overall system management - Equal treatment of customers SES Network - Providing Mbytes to S.P.s - Ku-Band and/or Ka-Band - Wholesale S.

4 The access model The connectivity model Star network Access to Bent-pipe payload Full mesh Full by-pass On-Board Processing Gateway Fibre backbone SES Multimedia S. A. 19 SES Multimedia S. A. 2 Models and markets SES services portfolio Broadcast / Multicast B2B Residential B2C Big Corp. SME SOHO Urban Rural X X X X X Access X X X X Connectivity X X X X Low Peak Rates High 8Mbps 2Mbps SIT III 384kbps SIT II 144kbps SIT I 1kbps Contribution Cable/ MDU Residential Corporate Mesh Large Enterprise SME BBI Market Potential EUR SES Multimedia S. A. 21 SES Multimedia S. A. 22 Key challenges for Satellite Interactive services Two-way terminal price residential market volumes will drive down costs open standards will avoid fragmentation of market DVB-RCS, Multimedia Home Platform Ka band spacecraft technology OBP provides more challenges bent-pipe is less challenging Regulatory provisions exemption from individual licensing of terminals like GSM ensure universal access to broadband network The need for partnerships Content: partners for video-streamed and bundled content Ground segment: Production of low-cost and user-friendly terminals Support open standards approach Distribution: Retail distribution Installation and maintenance SES Multimedia S. A. 23 SES Multimedia S. A. 24 4

Enterprise SME BBI Market Potential EUR SES Multimedia S. A.

5 NEED FOR A REINFORCEMENT OF THE SATELLITE ROLE IN EUROPE Founding Members SES-ASTRA, Europe*Star,Eutelsat SA., Hispasat, New Skies Satellites NV, Nordic Satellite AB, Telenor Broadband s AS and Telespazio S.p.A, Inmarsat 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. 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. SES Multimedia S. A. 25 SES Multimedia S. A. 26 SES Global: worldwide coverage *GE Americom transaction subject to regulatory approvals SES Multimedia S. A. 27 5

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

Global reach based on regional market focus

Global reach based on regional market focus SES GLOBAL: who are we? GLOBAL FORUM 2003- ROMA Satellite Interactive Broadband today in Europe: Reality and/or Fiction? Christine Leurquin Senior Manager, European Programmes The world s leading satellite