EUTELSAT COMMUNICATIONS Investor Presentation. April 2015

Transcription

1 EUTELSAT COMMUNICATIONS Investor Presentation April 2015

2 Agenda FSS Industry: growth opportunities Eutelsat in a snapshot H Highlights Operational Performance Financial Performance Outlook Appendices Satmex acquisition Industry information Other 2

3 The satellite value chain END USERS Satellite manufacturers Satellite launchers Satellite Operators TV platforms (pay and free) Consumers and Businesses Telecoms 3

4 A robust business model with high barriers to entry High barriers to entry Finite resource of orbital positions and frequencies, heavily regulated at international level with key commercial orbital positions have already been developed High upfront capex before operations High technology & technical expertise through satellite lifecycle Robust business model Significant backlog with long term contracts generating revenue visibility Economies of scale High operating margins Predictable operating cash flow 4

5 Solid industry growth prospects Transponder demand by region 1 Transponder demand by application in Eutelsat footprint 2 Regular capacity HTS capacity 6.8% 4.0% -1.7% 3.5% 4.2% 5.1% 2.8% 1.7% -0.8% 3.5% -4.2% 2.1% 7.4% 72% Other Asia North America South East Asia Oceania LATAM SSA MENA Russia Central Western &Central Europe Europe Asia Video Government Services Trunking Corporate networks Consumer Broadband, HTS capacity (1) CAGR- for regular capacity (2) CAGR - EMEA + LATAM Source: Euroconsult

6 Video drivers: channel growth and image quality TV Channels in EMEA and LATAM ~25,000 ~18,000 Channel growth Strong platform and channel growth in emerging markets Broadly stable in Europe Evolution of image quality Ultra High Definition High Definition 14% 25% Standard Definition 38% Image quality HD penetration to rise from 14% to > 35% by 2023 Followed by take-up of UHD Source: Euroconsult 2014, EMEA and LATAM 6

7 Video drivers: scope for HD ramp-up in all regions Estimated HD penetration rate by major region by % 65% 28% 18% 40% 37% 12% 13% 11% 29% 29% 5% 6% 25% North America Western Europe Central Europe LATAM MENA SSA Russia and Central Asia Current HD penetration on Eutelsat fleet: circa 11% Source: Euroconsult

8 Video drivers: capacity requirements versus compression technology Number of channels per 36 Mhz transponder Ramp-up Format Modulation MPEG-2 MPEG-4 HEVC 1990s-2000s 2000s-2010s Standard Definition High Definition DVB-S DVB-S DVB-S 2 to DVB-S2 3 to 4 6 to 8 12 to s Ultra HD (4k) DVB-S2 1 to 2 3 to 4 Source: Eutelsat 8

9 Data: robust demand for interconnection Internet trafic growth (in Exabytes/month) Transponder demand for Corporate Networks (Fast Growing Markets) 20% 6% 8% 11% 10% Russia and Central Asia MENA SSA LATAM Asia-Pacific Source: Cisco VNI Source: Euroconsult CAGR ~10% demand CAGR in Eutelsat s fastest growing markets 9

10 Agenda FSS Industry: growth opportunities Eutelsat in a snapshot H Highlights Operational Performance Financial Performance Outlook Appendices Satmex acquisition Industry information Other 10

11 Eutelsat key data Revenues of 1.35bn Fleet of 34 satellites offering global coverage Operating >1,000 transponders Broadcasting >5,700 TV channels Backlog of 6.1bn, representing 4.4 years of revenues As of December 31, 2014 excluding total revenues which are at June 30,

12 Data: 35% Video: 65% Breakdown of revenues Video: 65% Direct-to-Home (DTH) Cable headends Professional Video Data Services: 15% Mobile backhaul Corporate networks Value-Added Services: 7% Broadband Internet Mobility (aircraft, ships) Government Services: 13% Government and administration Departments of Defense As of December 31, % of revenues excluding Other revenues and non-recurring revenues. 12

13 Eutelsat s global network 13

14 Agenda FSS Industry: growth opportunities Eutelsat in a snapshot H Results Highlights Operational Performance Financial Performance Outlook Appendices Satmex Acquisition Industry information Other 14

15 Key Figures Revenues Revenues of 723m, up 11.6% + 4.3% 1 at constant currency on a proforma basis EBITDA Strong profitability: EBITDA at 560m Stable 77.4% margin Net result Group share of net income at 161m Net margin of 22.2% Financial Position Robust cash-flow generation representing 70% of revenues Stable Net Debt / EBITDA at 3.5x Distribution Dividend of 1.03 paid on 11 December 2014 Payout ratio of 75% Scrip option take up of 66% 1 Based on proforma revenues,excluding non-recurring revenues, of 1,377 M for FY (see table in appendix) 15

16 Highlights of H Renewal of seven transponders at HOT BIRD with nc+ Backlog at 6.1bn, representing 4.4 years of revenues Strong performance of Satmex Announcement of software-defined Eutelsat Quantum class of satellites providing unprecedented flexibility Full-year and three-year financial targets confirmed 16

17 Agenda FSS Industry: growth opportunities Eutelsat in a snapshot H Highlights Operational Performance Financial Performance Outlook Appendices Satmex Acquisition Industry information Other 17

18 First Half Revenues: 723m, +4.3% like-for-like 1 REVENUE CONTRIBUTION 2 REVENUES ( m) Y-O-Y CHANGE (%) LIKE-FOR-LIKE 1 ACTUAL Video 65% Data 15% VAS 7% VAS Government Services 13% At constant perimeter and currency and excluding non-recurring revenues 2 Excluding Other revenues and non-recurring revenues Reminder: first-half revenues have been restated. Please refer to table in the appendix. 18

19 Video: benefiting from additional capacity Revenues up 3.5% like-for-like 1 reflecting Entry into service of Express-AT1 in May 2014 Additional resources at 7 /8 West since September REVENUES ( m) Good performance of Satmex Q2 215 Q4 222 Q ,741 channels broadcast at end- December % y-o-y excluding Satmex Q1 221 Q3 215 Q1 228 Improved HD penetration at 11.4% vs. 10.6% at end-december 2013 H H H Restated revenues at constant currency 2 Restated revenues including revenues for Satmex from July to September 2013 and adjusting for the impact of the KabelKiosk disposal and from reclassifications between applications 19

20 Data: improving underlying trend REVENUES ( m) Revenues of 107m, down 0.7% likefor-like 1 underlying trend improving in Q Take-up of capacity on EUTELSAT 3B Q2 52 Q4 53 Q2 56 Good performance of Satmex Q1 54 Q3 51 Q1 51 Ongoing competition in EMEA H H H On the basis of restated revenues at constant currency 2 Restated revenues including revenues for Satmex from July to September 2013 and adjusting from reclassifications between applications 20

21 VAS: uptake on KA-SAT Revenues of 51m up 19% 1 Q2 seasonality of Maritime business REVENUES ( m) ,000 terminals activated on KA-SAT at 31 December 2014 Main contributors: France, Italy and Spain Q Q Q2 25 Distribution network further expanded Q1 23 Q3 21 Q1 26 OTE (Greece) Telekom Austria Group H H H At constant currency 21

22 Government Services: improved performance Revenues to 92m up 2.7% like-forlike 1 REVENUES ( m) 92 New contracts at: EUTELSAT 33B EUTELSAT 36B Q2 44 Q4 43 Q2 48 EUTELSAT 48D Good performance of Satmex Q1 44 Q3 44 Q1 44 Impact of contract renewals last year H H H Positive impact of USD 1 On the basis of restated revenues at constant currency 2 Restated revenues including revenues for Satmex from July to September 2013 and adjusting from reclassifications between applications 22

23 Backlog providing strong visibility Backlog of 6.1bn, up 14 % y-o-y +8% excl. Satmex 4.4 years of revenues 1 BACKLOG ( bn) Video the largest component: 84% New contracts at 3 East, 7 East and 16 East nc+ contract renewal at HOT BIRD not booked at 31st Dec. If included, the backlog would have been stable vs 30th Sept. Video % 84% 31 Dec Sep % 31 Dec 2014 The backlog represents future revenues from capacity lease agreements (including contracts for satellites not yet delivered). These capacity lease agreements can be for the entire operational life of the satellites. 1 Based on proforma revenues for FY

24 Slight rise in fill rate Operational tranponders up 178 y-o-y Entry into Service of Express-AT1 and EUTELSAT 3B Integration of Satmex OPERATIONAL TRANSPONDERS 1,033 1, Fill Rate of 76.3% slightly up on end- Sept Ramp-up of new capacity at 3 East and 7 East Fill Rate 74.8% 76.0% 76.3% Take-up on KA-SAT 31 Dec Sep Dec 2014 Fill rate of circa 80% excluding KA-SAT Number of transponders on satellites in stable orbit, back-up capacity excluded. KA-SAT s 82 spot beams as well as EUTELSAT 3B s 5 Kaband spot beams are considered transponder equivalents. KA-SAT s fill rate is considered to be at 100% when 70% of the capacity is taken up.. 24

25 Agenda FSS Industry: growth opportunities Eutelsat in a snapshot H Highlights Operational Performance Financial Performance Outlook Appendices Satmex Acquisition Industry information Other 25

26 Stable EBITDA margin EBITDA up 12% reflecting Integration of Satmex Beneficial effect of USD exchange rate EBITDA ( m) +12% EBITDA margin stable at 77.4% 501 Phasing of operating costs marginally beneficial to the first half EBITDA margin 77.4% 75.9% 77.4% H H H

27 Net income of 161m, net margin at 22% Extracts from the consolidated income statement in m1 H H Change Revenues % EBITDA % Operating income % Financial result (65) (56) -13% Income tax (109) (109) = Increase in D&A reflecting Satmex consolidation and investment in fleet Other operating income and expenses of - 2m in H vs. + 8m in H Full impact of the 930m bond raised in Dec Postive impact of forex for 19m Higher capitalised interests Higher operating income Settlement of the French Tax Audit in H Income from associates % Higher contribution from Hispasat Group share of net income % Net margin of c. 22% of revenues 1 Numbers rounded to closest million 2 EBITDA is defined as operating income before depreciation, amortisation, impairments and other operating income/(expenses) 27

28 Strong cash flow generation M m 504 % of revenues 64% % % 205 H H H Cash flow from operations Organic investments External growth 1 Acquisition of EUTELSAT 172A for US$228 m ( 177m) 2 Including - 16m of disposals in equity investments and subsidiaries - 44m for the share of Satmex equity acquired as of 31 December 2013 (9.9% of Satmex equity) Excluding the amount on Satmex notary escrow account as of 31 December 2013 ( 537m accounted as current financial assets as of 31 December 2013) 3 Impact of the disposal of Kabelkiosk 28

29 Stable net debt m Free Cash-flow : 299m Net operating Cash Flow 3,779 (87) 3, (205) Capex (30) Interest paid, net Dividend Payment 1 (111) Change in long-life leases 2 (99) Others 3 Net Debt as of 30/06/14 Net Debt as of 31/12/14 1 Including non-controlling interests; 78 m to shareholders of Eutelsat Communications 2 including the short-term portion of these leases 3 including variation of the currency component of the cross-currency swap (- 71m) and proceeds from disposal of equity investments and subsidiaries 29

30 Sound financial structure NET DEBT / EBITDA RATIO 1 Average weighted maturity of 3.9 years Average cost of debt after hedging: 3.8% 3.3x 2 3.5x 2 3.5x Strong liquidity: Cash of 469m 650m revolving lines of credit available 31 Dec Jun Dec Based on net debt at the end of the period and last twelve months EBTIDA 2 Proforma of Satmex acquisition. 30

31 Well-spread debt maturity profile DEBT MATURITY PROFILE (as of end-june 2014) 200m 800m 850m 800m 930m 450m 4.125% 5.0% 2.625% 300m 43m 3.125% 132m Bank debt Bonds Others Undrawn lines of credit Note: maturities are provided on a calendar year basis 31

32 Agenda FSS Industry: growth opportunities Eutelsat in a snapshot H Highlights Operational Performance Financial Performance Outlook Appendices Satmex acquisition Industry information Other 32

33 Our framework for profitable growth Three priority growth opportunities Video: our core activity Higher definition Increased interactivity and hybrid solutions New platforms in developing markets Data and mobility Selective investments in HTS Broadband growth Development of Mobility Geographic expansion Investments geared towards highest growth markets Latin America Asia-Pacific Cost containment initiatives and capex optimisation Resources focused on top line initiatives Enhanced cash flow and ROCE 33

34 A key player in the Video distribution chain VIDEO: 65% of revenues and 84% of backlog Strong long-term market trends Geographic: gearing investments towards high growth markets E115WB E8WB E36C E65W Latam MENA Russia Africa Latam Applications: innovation to secure satellites in future broadcast environments 34

35 Data and mobility: first mover advantage with HTS High Throughput Satellites and Payloads unlocking data and mobility markets by driving down cost per bit KA-SAT: a landmark broadband programme > 170k subscribers In-flight connectivity Technology & Service partner HTS payloads attracting anchor clients contributing to Data backlog 35

36 Latin America, Asia-Pacific: strong potential LATIN AMERICA ASIA-PACIFIC 3 future satellites to increase and diversify resources 5 satellites with Latin America footprint in 2016 Scope for further expansion EUTELSAT 172B: Expansion capacity Unmatched Asia-Pacific footprint Innovative HTS Payload, specifically designed for inflight broadband Panasonic: Anchor tenant secured 36

37 Driving value creation through specific initiatives Opex Containment Initiative Purchase performance plan Strong focus on technical, G&A and IT Savings to reinforce commercial effort Capex Optimisation Increased project selectivity Electric propulsion New launchers Hosted payloads Profitability maintained and improved Return on capital employed 37

38 Expansion capacity to support our growth drivers Expansion capacity of >30% 1 focused On high growth markets, especially Latin America On Video and HTS payloads EXPANSION CAPACITY BY REGION (For the 7 satellites to be launched by June 2017) 9% 5% 3% 3% Young fleet with average age of 6.2 years 11% 15% 54% Latin America Asia-Pacific Sub-saharan Africa Europe Russia and Central Asia North-America MENA 1 Increase in number of physical transponders expected between end-september 2014 and end-june One spot beam is considered equivalent to one transponder. Calculation based on nominal deployment plan and including unannounced redeployments. 38

39 Deployment programme supporting topline growth EUTELSAT 115 WEST B EUTELSAT 9B EUTELSAT 8 WEST B EUTELSAT 36 C EUTELSAT 117 WEST B EUTELSAT 65 WEST A EUTELSAT 172 B Position West 9 East 7/8 West 36 East West 65 West 172 East Launch 1 st March 2015 Q2/Q Q Q Q Q H Manufacturer Boeing Airbus DS TAS Airbus DS Boeing SSL Airbus DS Launcher SpaceX Proton Arianespace Proton SpaceX N/A Arianespace Coverage Applications Americas Data Gvt Servs Europe Video MENA, SSA LATAM Video Data Russia SSA Video Data Broadband LATAM Video Data Gvt Servs LATAM Video Data Broadband Asia-Pacific Data Gvt Servs Mobility Capacity (txp) 34 Ku 12 C 50 Ku 40 Ku 10 C 52 Ku 18 Ka 1 40 Ku 24 Ku 10 C 24 Ka 36 Ku 14 C 11 HTS Ku 1 O/w expansion 3 34 Ku 12 C 12 Ku 6 Ku 10 C 20 Ku 18 Ka 1 40 Ku 24 Ku 10 C 24 Ka 1 16 Ku 2 11 HTS Ku 1 Electrical propulsion. E 115 West B and E 117 West B will enter service 7 to 9 months after launch; and E 172B c. 4 months. 1 Spotbeams - 2 Doubling of regular Ku-band capacity - 3 excludes unannounced redeployments X HTS payload 39

40 Recent and upcoming launch programme Express-AT1 March May Express-AT2 Eutelsat 3B March May July July Eutelsat 115 WB Eutelsat 9 B March Q2/Q3 8 m 1-2m Eutelsat 8 WB Q3 1-2m Eutelsat 36C Q4 1-2m Eutelsat 117 WB Eutelsat 65 WA All the dates indicated are on a calendar year basis Q4 7-9m Q2 1-2m Eutelsat 172B H1 c. 4m FY FY FY FY Completed launch Upcoming launch X Approx launch date (calendar year) X Approx. entry into in service (calendar year) Eutelsat financial year 40

41 Outlook Revenues (At constant currency, excl. non recurring revenues) Around 4.0% growth for , like-for-like 1 Above 5% average growth in and EBITDA EBITDA margin above 76.5% to June 2017 Capex Leverage Distribution Average of 500m per annum to June 2017 Including cash outflows related to ECA loan repayments and capital lease payments Investment grade ratings Long-term Net debt / EBITDA target below 3.3x Payout ratio of 65% to 75% of Group share of net income 1 Based on proforma revenues,excluding non-recurring revenues, of 1,377 M for FY (see table in appendix) 41

42 Agenda FSS Industry: growth opportunities Eutelsat in a snapshot H Highlights Operational Performance Financial Performance Outlook Appendices Satmex acquisition Industry information Other 42

43 Latin America: attractive growth market HIGH GROWTH FORECAST IN LATIN AMERICA (# of transponders leased) % CAGR 1, AMONG THE FASTEST GROWING MARKETS (Leased capacity CAGR ) +7.1% +6.5% +5.8% Video % +2.8% 542 Data LATAM Russia & Central Asia Sub-Saharan Africa Asia-Pacific Global A significant and growing market Market size comparable to Western Europe in volume terms Growth outpacing other major markets Video, VSAT networks and broadband are the key growth drivers Healthy pricing dynamics Source: Euroconsult C, Ku & Ka wide beam. Excluding HTS (HTS refers to High Throughput Satellite) 43

44 Satmex: a major FSS operator in Latin America 3 established orbital positions FSS OPERATIONS: 90% of revenues FSS revenue by application (2013A) 1 $120 M FSS Revenue 7% C, Ku and Ka-band frequency rights 23% 70% 3 satellites in orbit, 2 satellites being procured Primarily a data network services business, with high potential in video and Government services Leading market positions in Mexico, Central America and the Andean region Network Services Video Government Total revenue by geography (2013A) $133 M Total Revenue 33% 37% 30% Mexico US Central, South America and Caribbean OTHER OPERATIONS: 10% of revenues Alterna TV: distribution of Latin American programmes to Hispanic communities in the US Sources: Satmex 20F

45 Satmex transaction terms Acquisition of 100% of Satmex capital for $831 m Implied Enterprise Value of $1,142 m including net debt of $311 m 1 Tax losses carried forward of over $450 m, valued at c.$100 m 9.7x 2 EV/EBITDA based on LTM PF EBITDA 3 2-year forward multiple in line with global FSS operators Double-digit IRR, in line with Eutelsat s investment criteria 100% debt financed 930 m 6 year-bond issued at attractive terms (2.625% coupon) in December 2013 Transaction closed on 1 January 2014 Source : Satmex F, Satmex 6-K Forms Note: 1 Gross debt of $360.0m, plus accrued interest of $12.8m, less cash of $61.8m as of 31 March Based on Entreprise Value net of the value of the tax losses carried forward (c. $100 m) 3 LTM PF EBITDA: Actual LTM EBITDA as of March 31, 2013 adjusted to include already contracted incremental revenue on Eutelsat 117 West A vs. Eutelsat 115 West A 45

46 Satmex and EUTELSAT 65 West A: complementary coverage in Latin America Satmex leading markets MEXICO EUTELSAT 65 West A key target market Eutelsat 115 West A & Eutelsat 115 West B W COLOMBIA ECUADOR Eutelsat 65 West A 65 W BRAZIL Eutelsat 117 West A & Eutelsat 117 West B W Eutelsat 113 West A W PERU CHILE 46

47 Satmex a year on Dynamics of Latin American region confirmed REVENUES (USDm) 78 Integration well under way Performance in line with expectations Robust double-digit revenue growth at end- December 2014 Q2 35 Q4 37 Q2 Improved EBITDA margin Solid commercial performance Strong backlog > USD400m Q1 34 Q3 35 Q1 38 Important contracts with Millicom, Claro Peru, Televera H H H Two satellites to be launched in 2015 Complemented by Eutelsat 65 West A in 2016 Closing of the acquisition 47

48 Agenda FSS Industry: growth opportunities Eutelsat in a snapshot H Highlights Operational Performance Financial Performance Outlook Appendices Satmex acquisition Industry information Other 48

49 Industry average revenue per transponder AVERAGE REVENUE PER TRANSPONDER (m$) Eutelsat coverage Western Europe Central Europe Russia & Central Asia Middle East & North Africa Sub Saharan Africa Southern Asia Latin America North East Asia China area South-East Asia Oceania North America Source: Euroconsult Average Revenue per Transponder for regular capacity only 49

50 Typical capex for a satellite program 50% Satellite 28% Launcher 14% Insurance 8% Capitalized costs 50

51 Positioning of Leo constellations Geostationary Orbit (GEO) Km LEO offers lower latency than GEO orbit In LEO, satellites are moving with respect to earth surface Medium Earth Orbit (MEO) ~8 000 Km LEO constellations face feasibility and cost challenges: Complexity and cost of ground antennae on the end-users side OneWeb SpaceX / Google Low Earth Orbit (LEO) ~ 1000 Km Cost of the ground segment Efficiency Go-to market approach, particularly in emerging markets Stratosphere ~ 20 Km Regulatory uncertainty regarding spectrum and country licencing 51

52 Agenda FSS Industry: growth opportunities Eutelsat in a snapshot H Highlights Operational Performance Financial Performance Outlook Appendices Satmex acquisition Industry information Other 52

53 Continued audience growth at Eutelsat Video neighbourhoods Audience growth at Eutelsat s top 8 video neighbourhoods Growth in DTH households DTH is leading TV reception mode in Western Europe Audience (M homes) DTH households (M homes) Reception modes in % % % 32% 53% 58% 16% 25% East 7 East 9 East 16 East 28 East 36 East 5 West 7/8 West % Share of DTH at Eutelsat s top 8 video neighbourhoods DTH Cable (-3 pts) IP TV (+10 pts) DTT / Analogue (+1 pts vs. 2010) (-8 pts) With the exception of DTT, all other reception modes are not exclusive Source: Eutelsat TV Observatory 53

54 Eutelsat Quantum: cutting-edge technology Software-defined class of satellites First satellite to be launched in 2018 Manufactured by Airbus Defense and Space Incomparable flexibility in terms of: Coverage Bandwidth Power and frequency configurability Premium capacity through footprint shaping and steering, power and frequency band pairing that customers will be able to actively define Targeting for users operating in government, mobility and data markets Example of a coverage hopping between 2 markets Most of the capacity is devoted to Cairo, during day-time in Africa Most of the capacity is devoted to NYC, during day-time in Americas 54

55 KA-SAT High Throughput Satellite Operational since Mid-2011 covering extended Europe 1 and the Mediterranean Basin Adressing mainly Internet Broadband market in areas with limited or no internet service (Tooway TM ) In-flight connectivity Spotbeam architecture vs. widebeam for traditional satellites enables reuse of frequencies Total throughput of 90 Gbps Significantly lowered cost per Mb Connexion to a network of ten ground stations 175, 000 broadband terminals activated at end Extended Europe: Western Europe, Central Europe, Russia and Central Asia, Middle East and North Africa, Sub Saharan Africa 55

56 Shareholder structure Eutelsat shareholding structure as of 31 December 2014 Bpifrance 26.03% 62.31% 5.01% Free float and others 67.13% CIC % (1) China Investment Corporation 56

57 Disclaimer This presentation does not constitute or form part of and should not be construed as any offer for sale of or solicitation of any offer to buy any securities of Eutelsat Communications, nor should it, or any part of it, form the basis of or be relied on in connection with any contract or commitment whatsoever concerning Eutelsat Communications assets, activities or shares. This presentation includes only summary information related to the accounts and activities for the fiscal year of Eutelsat Communications and its strategy, and does not purport to be comprehensive or complete. For further details please refer to the consolidated accounts of Eutelsat Communications for the fiscal year , available on the Eutelsat Communications website All statements other than historical facts included in this presentation, including without limitations, those regarding Eutelsat Communications position, business strategy, plans and objectives are forward-looking statements. The forward-looking statements included herein are for illustrative purposes only and are based on management s current views and assumptions. Such forward-looking statements involve known and unknown risks. For illustrative purposes only, such risks include but are not limited to: postponement of any ground or in-orbit investments and launches including but not limited to delays of future launches of satellites; impact of financial crisis on customers and suppliers; trends in Fixed Satellite Services markets; development of Digital Terrestrial Television and High Definition television; development of satellite broadband services; Eutelsat Communications ability to develop and market value-added services and meet market demand; the effects of competing technologies developed and expected intense competition generally in our main markets; profitability of its expansion strategy; partial or total loss of a satellite at launch or in-orbit; supply conditions of satellites and launch systems; satellite or third-party launch failures affecting launch schedules of future satellites; litigation; its ability to establish and maintain strategic relationships in its major businesses; and the effect of future acquisitions and investments. Eutelsat Communications expressly disclaims any obligation or undertaking to update or revise any projections, forecasts or estimates contained in this presentation to reflect any change in events, conditions, assumptions or circumstances on which any such statements are based, unless so required by applicable law. These materials are supplied to you solely for your information and may not be copied or distributed to any other person (whether in or outside your organisation) or published, in whole or in part, for any purpose. 57