EUTELSAT COMMUNICATIONS Investors presentation. November 2014

Transcription

1 EUTELSAT COMMUNICATIONS Investors presentation November 2014

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

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

4 High barriers to entry Barriers to entry: Finite resource of orbital positions and frequencies Heavily regulated at international level Key commercial orbital positions have already been developed High upfront capex before operations Investment per satellite in the range of 250M Long design and procurement cycle (c.3 years) High technology & technical expertise through satellite lifecycle 4

5 A robust business model A satellite infrastructure operator shows a typical cash flow profile of a traditional infrastructure operator High backlog, long term contracts, generating visibility on revenues Economies of scale on Capex and Opex base High operational margin High and predictable operating cash flow 5

6 Solid industry growth prospects Transponder demand worldwide CAGR TOTAL 2.4% Others 1 0.9% South East Asia / Oceania 3.5% Latin America 4.2% Sub Saharan Africa Middle East and North Africa Russia & Central Asia 5.1% 2.8% 6.3% Central Europe 1.7% Western Europe -0.8% 1 North America, rest of Asia Applications in Eutelsat footprint (EMEA + LATAM) Government services Trunking and regular capacity broadband access Corporate networks 1 direct (DTH) and indirect CAGR TOTAL 3.1% -4.2% 2.1% 7.4% Video contribution 2.8% Video distribution 1 3.7% Source: Euroconsult

7 Video: strong growth drivers INCREASE IN TOTAL NUMBER OF CHANNELS, HD PENETRATION AND UHD TAKE UP Ultra High Definition High Definition Standard Definition CAGR % 3D/UHD: 32.8% HD penetration by subregion in % 25% 38% HD: 15.9% 37% 29% SD: -0.5% 65% 40% 25% 29% Source: Euroconsult 2014, EMEA and LATAM Penetration in % 12% 6% 11% 5% 13% BREAKTHROUGH OF BANDWIDTH HUNGRY FORMATS DESPITE EFFICIENCY IMPROVEMENTS Number of channels per transponder (36Mhz) Ramp-up Format Diffusion mode MPEG-2 MPEG-4 HEVC (Mid 2010s) 1990s-2000s 2000s-2010s SD HD DVB-S DVB-S DVB-S 2 to DVB-S2 3 to 4 6 to 8 12 to s Ultra HD (4k 50fps) DVB-S2 1 to 2 3 to 4 Source: Eutelsat 7

8 Data: strong demand for interconnection ROBUST GROWTH IN CONNECTIVITY NEEDS WORLDWIDE FOR ENTERPRISES AND CONSUMERS Internet trafic growth (in Exabytes/month) Transponder demand for Corporate Networks Fast Growing Markets CAGR Fast growing markets 10.7% CAGR % Russia & Central Asia 20.2% 24.8% Middle East and North Africa 6.0% 6.3% Sub-Saharan Africa % Latin America 10.9% 11.9% Asia-Pacific 10.4% 11.8% Source: Cisco VNI Source: Euroconsult 2014 Middle East & Africa: 5 times larger demand by 2018 LATAM: 2.5 times larger demand by 2018 Asia-Pacific: 3 times larger demand by 2018 ~10% demand CAGR in Eutelsat s fastest growing markets LATAM & Asia-Pacific double digit growth 8

9 Agenda FSS Industry: growth opportunities Eutelsat in a snapshot FY Highlights Operational Performance Financial Performance Outlook Appendices Q performance Satmex acquisition Industry information Other 9

10 Eutelsat key data Revenues of 1.35bn Fleet of 35 satellites offering global coverage Operating >1,000 transponders Broadcasting >5,700 TV channels Backlog of 6.3bn, representing 4.5 years of revenues As at September 30, 2014 excluding total revenues which are at June 30,

11 Breakdown of FY revenues Revenues Reported (year-on-year) At constant currency and excl. Satmex (year-on-year) VIDEO 67% 877 M +1.3% = DATA 14% 190 M +1.2% -11.5% VALUE-ADDED SERVICES 7% GOVERNMENT SERVICES 12% 89 M +36.0% +36.3% 158 M +8.5% +6.7% Expressed as percentage of turnover as of June 30, 2014 excluding "other and non recurring revenues" 11

12 Eutelsat s global network 12

13 Agenda FSS Industry: growth opportunities Eutelsat in a snapshot FY Highlights Operational Performance Financial Performance Outlook Appendices Q performance Satmex Acquisition Industry information Other 13

14 FY : key figures Revenue EBITDA Revenues of 1,348 M, up 5.0% + 2.6% at constant currency, excluding non-recurring revenues and Satmex in line with objectives Strong profitability: EBITDA at 1,033 M 76.7% margin including Satmex, in line with objectives Net result Group share of net income at 303 M Net margin at a high level (22.5%) Financial position Distribution Net Debt / EBITDA at 3.7x (reported) and 3.5x (proforma 1 ) Dividend of 1.03 Payout ratio of 75% 1 July to December 2013 Satmex EBITDA of USD 51.0M at EURUSD rate was added to reported EBITDA 14

15 FY : operational highlights Significant contract wins, record backlog: 6.4 Bn, up 14% and 20% including Satmex Acquisition and successful integration of Satmex Successful launches of EUTELSAT 25B, Express-AT1, Express-AT2 and EUTELSAT 3B Procurement of EUTELSAT 172B to support growth in Asia-Pacific Satisfactory conclusion of the arbitration at 28 5 East 1 At constant currency and excluding non-recurring revenues 15

16 Agenda FSS Industry: growth opportunities Eutelsat in a snapshot FY Highlights Operational Performance Financial Performance Outlook Appendices Q performance Satmex acquisition Industry information Other 16

17 Record order backlog lends strong visibility BACKLOG ( bn) Backlog up 20% from June 2013 Integration of Satmex EUTELSAT 9A for Video in Europe +20% 6,4 EUTELSAT 36C for Video in Africa HTS payloads of EUTELSAT 3B and EUTELSAT 65 West A for Latam 5,2 5,4 HTS payload of EUTELSAT 172B for Asia-Pacific Above 6.0 Bn excluding Satmex, 13.6% growth Vidéo 92% 92% 84% Backlog represents 4.6 years of revenues 1 30 June June June 2014 The backlog represents future revenues from capacity lease agreements (including contracts for satellites under procurement). These capacity lease agreements can be for the entire operational life of the satellites. 1 Including Satmex revenues from July to December 2013 for USD69.0 M Video remains the largest component of the backlog 17

18 Video: capacity constraints for most of the year Lack of available capacity at several key video neighbourhoods during most of the year REVENUES FROM VIDEO ( M) Specific dynamic in several regions Higher revenue at key Video neighbourhoods serving fast-growing markets (36 East and 7 /8 West) Entry into service of Express-AT1 in May 2014, leading to positive sequential trend Satmex 5,746 channels, up 17% excluding Satmex HD penetration for the entire fleet of 10.2% (dilutive effect of Satmex) Suspension of operations on disputed frequencies at 28.5 East on 4 October 2013 FY FY FY

19 Data Services: continuing competitive environment, Positive momentum for Satmex Continuing competitive environment for point-to-point services REVENUES FROM DATA ( M) Reclassification of certain contracts to other applications to reflect the final usage of the capacity Satmex Termination of contracts with customers impacted by the U.S administration s budgetary constraints 162 Large contracts in the backlog will provide revenue growth FY FY FY

20 Value-Added Services: +36% driven by broadband & mobility 154,000 KA-SAT terminals activated at end-june 2014 (91,000 at end-june 2013) REVENUES FOR VALUE-ADDED SERVICES ( M) 89 Both consumer and professional services performing well Mobile connectivity services for maritime markets contributed to year-on-year revenue growth FY FY FY

21 Government services: reflecting outcome of contract renewals, perimeter impacts, new contracts and reclassifications Positive effects of. New contracts Reclassification from Data Services revenues in Government services line Integration of EUTELSAT 172A (acquired in September 2012) Integration of Satmex (acquired 1st January 2014) REVENUES FROM GOVERNMENT SERVICES ( M) Satmex 149 offset by The on-going pressure on government spending in the U.S. Prequalification to provide Hosted Payload Services for USG FY FY FY

22 Fill rate Improvement of fill-rate reflecting mainly the integration of Satmex satellites and of Express-AT1 in the fleet Fill rate above 80% excluding KA-SAT OPERATIONAL TRANSPONDERS 1 (M ) High fill rate at key video neighbourhoods Fill rate % 74.0% 78.7% 30 June June June Including KA-SAT 82 spot beams 2 KA-SAT specific fill rate calculation: fill rate considered at 100% when 70% of the capacity is sold 22

23 Agenda FSS Industry: growth opportunities Eutelsat in a snapshot FY Highlights Operational Performance Financial Performance Outlook Appendices Q performance Satmex acquisition Industry information Other 23

24 EBITDA margin in line with objective 957 EBITDA ( bn) +4.0% % 1,033 Increase in operating expenses Continued tight cost management Increased resources allocated to the development of commercial activity Perimeter effect High level of operating profitability with a 76.7% EBITDA margin EBITDA margin 78.3% 77.5% 76.7% FY FY FY Slightly dilutive impact of the integration of Satmex 24

25 Net income of 303 Million, net margin at 23% Extracts from the consolidated income statement in M1 FY FY Change Revenues 1,284 1, % FY13-14 includes Satmex from 1 st January 2014 EBITDA , % Operating income % Financial result (118) (132) +12.5% Income tax (208) (190) -8.9% Increase in D&A reflecting fleet rejuvenation 8.5 M other operating expenses in FY13-14 vs M other operating profit in FY12-13 Lower average cost of debt offset by higher gross debt (Satmex acquisition) Lower operating income Tougher French tax environment Settlement of the French Tax Audit Income from associates % Group share of net income % Net margin of c. 23% of revenues 1 Figures rounded to the million 2 EBITDA is defined as operating income before depreciation, amortisation, impairments and other operating income/(expenses) 25

26 Cash flow from operations M % of revenues 57% 40% 64% 51% 58% 31% FY FY FY Cash flow from operations Investments 1 Including acquisition of EUTELSAT 172A for US$228 M ( 177 M) and 6% share in Hispasat for 56 M 2 Including 16 M of disposals in equity investments or subsidiaries 26

27 Diversified debt structure and strong liquidity NET DEBT 1 ( M) Issuance of a 6-year 930 M bond in December 2013, with a 2.625% coupon 2,647 3, Term Loan Early repayment of Satmex bonds ($360M) in May Term Loan Average weighted maturity of 4.4 years Bonds Bonds Improved average cost of debt after hedging: 4.0% (4.9% in FY ) Others at 30 June 2014 include 145 Others 392 Others 175 M export financing 220 M financial leases 248 Cash 293 Cash 650 M revolving lines of credit available 30 June June Including liabilities from long-term lease agreements, overdraft and net of cash 2 Swap at 3.85% (purchased in 2006 and active from end April 2010 to June 2013) plus margin 27

28 Well-spread maturity profile DEBT MATURITY PROFILE (as of end-june 2014) 200M 800M 930M 850M 450M 800M 300M 43M 132M Bank debt Bonds Others Undrawn lines of credit Note: maturities are provided on a calendar year basis 28

29 Net debt / EBITDA ratio As of 30 June 2014 ( M) Reported Proforma including Satmex Acquisition 1 Reminder: reported as of 30 June 2013 Net Debt 3,779 3,779 2, month rolling EBITDA Net Debt / 12-m rolling EBITDA 1,033 1, Calculation based on Proforma EBITDA including Satmex July to December 2013 EBITDA at USD51.0 M at EURUSD 29

30 Dividend payout at the high end of the range NET INCOME, GROUP SHARE ( M) DIVIDEND PER SHARE ( ) Payout Ratio 67% 67% 75% 67% 67% 75% FY FY FY FY FY FY

31 Agenda FSS Industry: growth opportunities Eutelsat in a snapshot FY Highlights Operational Performance Financial Performance Outlook Appendices Q performance Satmex acquisition Industry information Other 31

32 Our framework for profitable growth Three priority growth opportunities Video: our core activity Expansion driven by fastgrowing markets Higher definition More interactivity Data and mobility Selected investments in High Throughput Satellites and Payloads Broadband competitivity 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 32

33 A key player in the Video distribution chain VIDEO: 67% 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 33

34 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 > 150k subscribers In-flight connectivity Technology & Service partner HTS payloads attracting anchor clients contributing to Data backlog 34

35 Latin America, Asia-Pacific: strong potential across all Applications LATIN AMERICA ASIA-PACIFIC 3 future satellites to increase and diversify resources EUTELSAT 172B: unmatched Asia-Pacific footprint 5 satellites with Latin America footprint in 2016 Anchor tenant for in-flight broadband and live TV Scope for further expansion ST Teleport agreement driving business to EUTELSAT 70B 35

36 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 36

37 Expansion capacity to support our growth drivers Seven launches between now and June 2017 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 5.7 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. 37

38 Three year deployment plan 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 Q 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 Video Data GS Europe Video MENA LATAM Video Data Russia SSA Video Data Broadband LATAM Video Data GS LATAM Video Data Broadband Asia-Pacific Data GS 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 38

39 Outlook: revenue growth acceleration Revenues (At constant Currency, Excl. non recurring revenues) Around 4.0% growth for , on a proforma basis 1 Above 5% average growth in and EBITDA EBITDA margin above 76.5% to June 2017 Capex Leverage Distribution 500 M per annum to June 2017 Note: this includes cash outflows related to ECA loan repayments and capital lease payments Investment grade ratings Long-term Net debt / EBITDA target below 3.3x A payout ratio of 65% to 75% of Group share of net income 1 Adding to FY13-14 reported revenues USD69.0 M revenues for Satmex from July to December 2013 and adjusting for the net revenue impact of the KabelKiosk disposal, FY13-14 revenues would amount to c. 1,377 M on a proforma basis 39

40 Agenda FSS Industry: growth opportunities Eutelsat in a snapshot FY Highlights Operational Performance Financial Performance Outlook Appendices Q performance Satmex acquisition Industry information Other 40

41 First quarter revenues: 358m, +4.2% 1 REVENUE CONTRIBUTION 2 REVENUES ( M) LIKE-FOR-LIKE 1 Y-O-Y CHANGE (%) REPORTED Video 65% % Data % VAS % Government Services Change at constant currency and excluding non-recurring revenues, based on restated revenues for Q On a reported basis, total revenue is up 10.5% 2 Excluding Other revenues and non-recurring revenues 41

42 Video: benefiting from new capacity Revenues up 3.2% 1 reflecting Additional resources added at 7 /8 West in September 2013 Entry into service of Express-AT1 Growth at Satmex REVENUES ( M) ,788 channels broadcast at end- September % y-o-y excluding Satmex Improved HD penetration at almost 11% (vs. 9.3% at end-september 2013) Q Q Q On the basis of 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 42

43 Data: mixed regional trends Revenues of 51 M, down 5.0% 1 REVENUES ( M) Ongoing tough conditions in EMEA Good momentum in LATAM and Asia-Pacific Improved geographic mix post Satmex acquisition Q Q Q 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 43

44 VAS: continued uptake on KA-SAT REVENUES ( M) Revenues to 26 M up 14% 1 166,000 terminals activated on KA-SAT at 30 September 2014 (108,000 a year earlier) Good uptake in France, Germany, Turkey and Italy Q Q Q At constant currency 44

45 Government services: new contracts and good performance of Satmex REVENUES ( M) Revenues to 44 M up 2.8% 1 New contracts, notably on EUTELSAT 48D and EUTELSAT 33B Good performance of Satmex Ongoing impact of the lower level of contract renewals in FY September/October 2014 renewals with US administration in line with expectations Q Q Q 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 45

46 Backlog providing strong visibility Backlog up 16 %, 10% excl. Satmex Like-for-like increase reflecting EUTELSAT 9A for Video in Europe EUTELSAT 36C for Video in Africa HTS payloads of EUTELSAT 3B and EUTELSAT 65 West A for Latam HTS payload of EUTELSAT 172B for Asia-Pacific Video 5.4 BACKLOG ( Bn) 93% 84% % Backlog represents 4.5 years of revenues 1 Video remains the largest component of the backlog: 84% 30 Sept June Sept 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

47 Agenda FSS Industry: growth opportunities Eutelsat in a snapshot FY Highlights Operational Performance Financial Performance Outlook Appendices Q performance Satmex acquisition Industry information Other 47

48 Latin America: A highly 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 Source: Euroconsult C, Ku & Ka wide beam. Excluding HTS (HTS refers to High Throughput Satellite) Latin America: 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 48

49 Satmex: a major FSS operator in Latin America 3 established orbital positions FSS OPERATIONS: 90% of revenues FSS revenue by application (2013A) 1 7% $120 M FSS Revenue 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

50 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 50

51 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 51

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

53 Industry average revenue per transponder AVERAGE REVENUE ESTIMATES PER TRANSPONDER (M$) IN 2011, 2012 & 2013 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 53

54 Typical capex for a satellite program 50% Satellite 28% Launcher 14% Insurance 8% Capitalized costs 54

55 Agenda FSS Industry: growth opportunities Eutelsat in a snapshot FY Highlights Operational Performance Financial Performance Outlook Appendices Q performance Satmex acquisition Industry information Other 55

56 Revenues by Application Change (%) 12 months closed 30 june reported excluding Satmex and at constant currency Video Applications % = Data & Value-Added Services % +0.8% Data Services % % Value-Added Services % +36.3% Government services % +6.7% Other revenues NA NA Sub-total 1, , % +2.6% Non-recurring revenues NA NA Total 1, , % +1.9% 56

57 Capex as defined in the outlook Extracts from the consolidated statement of cash-flows in M 1 FY Acquisitions of satellites, other property and equipment and intangible assets 440 Repayments of ECA loans and payments under long-term capital leases 11 Capex as defined in the Outlook 451 Note: Capex as defined in the Outlook includes cash outflows related to existing ECA loan repayments and capital lease payments 57

58 Free float of 67% Eutelsat shareholding structure as of 30 June 2014 Others and public 62.31% 5.01% Bpifrance* China Investment Corporation (CIC) * Formerly Fonds Stratégique d Investissement 58

59 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 our 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; our ability to establish and maintain strategic relationships in our 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. 59