Risk Reward Update

Research evidence excerpt

Risk Reward Update

UpdateM

Risk Reward – SES (SESFd.PA)

KEY EARNINGS INPUTS

Drivers Dec 2025 Dec 2026e Dec 2027e Dec 2028e

MW KEI (%) 31.3 28.8 (1.3) 1.1

INVESTMENT DRIVERS RISKS TO PT/RATING MS ESTIMATES VS. CONSENSUS

Media business highly challenged. RISKS TO UPSIDE FY Dec 2026e

Networks has pricing pressure from Revenue shifts towards Networks, with

competition. significant industry growth. Sales / 3,382

C-band clearance proceeds to potentially offer C-band special returns from July 2027 auction. Revenue 3,339 3,520

special shareholder returns and/ or (€, mn) 3,427

deleveraging. RISKS TO DOWNSIDE

Integration of Intelsat acquisition. Video produces the bulk of cash flow, but is in

structural decline. Networks potentially 1,454

EBITDA

challenged by LEO constellations. 1,376 1,541GLOBAL REVENUE EXPOSURE (€, mn)

More capex is needed to compete in the 1,482

mobility markets.

10-20% UK

North America 30-40% income OWNERSHIP POSITIONING Net (138) 273 Europe ex UK 50-60% (€, mn)

52 Inst. Owners, % Active 58.8%

Source: Morgan Stanley Research Estimate HF Sector Long/Short Ratio 1.7x

View explanation of regional hierarchies here HF Sector Net Exposure 4.6% EPS (0.31) 0.79

(€)

Refinitiv; MSPB Content. Includes certain hedge fund 0.17MS ALPHA MODELS

exposures held with MSPB. Information may be

inconsistent with or may not reflect broader market Mean Morgan Stanley Estimates 1/5 3 Month trends. Long/Short Ratio = Long Exposure / Short

MOST Horizon exposure. Sector % of Total Net Exposure = (For a Source: Refinitiv, Morgan Stanley Research

particular sector: Long Exposure - Short Exposure) /

Source: Refinitiv, FactSet, Morgan Stanley Research; 1 is (Across all sectors: Long Exposure – Short Exposure).

the highest favored Quintile and 5 is the least favored

Quintile