EUTELSAT COMMUNICATIONS Investor Presentation June 2018

Transcription

1 EUTELSAT COMMUNICATIONS Investor Presentation June 2018

2 Agenda 1 FSS Industry 2 3 Eutelsat in a snapshot Q performance 4 Outlook 5 Appendix 2

3 The satellite value chain Satellite manufacturers Satellite launchers Satellite operators TV broadcasters, Telecoms, Governments Consumers and businesses 3

4 Business characteristics 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 Profitable business model Significant backlog with long term contracts Economies of scale High operating margins Predictable operating cash flow 4

5 Trends in our core businesses VIDEO: SLIGHT GROWTH FIXED DATA: STRUCTURALLY CHALLENGED GOVERNMENT SERVICES: POCKETS OF OPPORTUNITY Sustained growth in emerging markets Robust channel growth Increasing HD penetration MENA and SSA leading growth Prices well-oriented Broad stability in Europe Broadly stable channel count HD and UHD ramp-up Improving encoding and compression Low growth Global demand driven by increasing connectivity needs Large HTS systems adding to existing overcapacity Ongoing severe pricing pressure More stickiness in certain segments In decline US DoD demand stabilizing, albeit at lower prices Slower migration to HTS than Data Services Opportunities in APAC and MENA Broad stability 5

6 Longer-term potential in Video and Connectivity VIDEO FIXED AND MOBILE CONNECTIVITY Satellite and IPTV set to dominate global video distribution in the longer term Opportunity to enhance satellite value proposition by offering IP-like viewer experience Outsourcing of services by broadcasters will create additional sources of demand Nascent markets with huge potential Massive growth in bandwidth usage per consumer Significant addressable market for Fixed Broadband via satellite: c. 2-3% of Households Medium-term potential in Aero Long-term potential in land Mobility VHTS a pre-requisite in terms of volume and pricing for mass-market adoption 6

7 Video drivers: Channel growth and image quality CHANNEL GROWTH INCREASED IMAGE QUALITY TV Channels in EMEA and LATAM HD penetration rate by major region CAGR: +1.5% ~24,000 ETL footprint 19% 43% ~20,500 Russia and Central Asia SSA 11% 19% 4% 36% MENA 16% 38% LATAM 24% 50% Central Europe 19% 50% Western Europe North America 29% 38% 74% 81% Predominantly driven by emerging Video markets Everywhere, including mature Video markets Source: Euroconsult

8 Video drivers: Capacity requirements versus compression technology EVOLUTION OF IMAGE QUALITY (NUMBER OF CHANNELS) NUMBER OF CHANNELS PER 36 MHZ TRANSPONDER Format Modulation MPEG-2 MPEG-4 HEVC SD DVB-S ~ DVB-S2 - ~ HD DVB-S DVB-S2 - ~9 ~ UHD DVB-S2 - - ~3 Standard Definition High Definition Ultra High Definition and 3D Source: Euroconsult 2017, EMEA and LATAM 8

9 Video: Satellite s competitive advantage over OTT / IP COST-EFFICIENCY UNIVERSAL REACH SERVICE QUALITY BROADBAND COVERAGE BANDWIDTH REQUIREMENT (Mbps) Cost OTT 1 UHD channel in HEVC 20 Satellite 72% 64% 75% 1 HD channel in MPEG % 17% 24% 1 SD channel in MPEG 2 3 # viewers Italy Poland EU Average Satellite a fraction of TV platforms operating costs CDN costs rise in line with audience growth For a large Pay-TV platform, OTT distribution would be much more expensive than satellite Satellite more cost efficient >50k viewers in Western Europe > 30 Mbps of which FTTP High cost of fibre roll-out Terrestrial networks cannot reach entire population Lower image quality Or even no service Satellite provides full coverage of a market Higher quality of image leading to increased bandwidth usage Congestion of terrestrial networks Video will represent >80% of IP traffic in 2021 Satellite and hybrid solutions give unimpaired viewing experience Source: Eutelsat analysis, European Commission - Broadband Coverage in Europe 2016, CISCO VNI

10 Video: Satellite resilience in Western Europe MILLION TV HOMES BY DISTRIBUTION MODE IN WESTERN EUROPE IP GAINING SHARE VS. TERRESTRIAL, NOT SATELLITE Slight increase in total number of TV homes 175 million Satellite reception broadly stable just below 50 million homes Satellite market share of 28% IP gaining share against terrestrial, not satellite Terrestrial Cable IP Satellite Source: Digital TV Research,

11 Video: Satellite gaining market share worldwide MILLION TV HOMES BY DISTRIBUTION MODE - GLOBAL Total number of TV homes to increase by 95 million to 1.7 bn by 2022 Satellite reception to grow by 50 million homes to 475 million by Satellite market share to rise from 26% to 28% Terrestrial Cable IP Satellite Source: Digital TV Research,

12 Agenda 1 FSS Industry 2 3 Eutelsat in a snapshot Q performance 4 Outlook 5 Appendix 12

13 Eutelsat in a snapshot KEY DATA REVENUE BREAKDOWN BY APPLICATION By geography Revenues of 1.48bn Fleet of 38 satellites; global coverage Operating >1,400 transponders 7% 11% 10% 5% 5% Western Europe Central Europe 31% MENA RCA SSA Americas 8% APAC 23% Unallocated and others Broadcasting >6,800 channels Backlog of 4.6bn, representing 3.1 years of revenues By application 7% 5% Video 12% 12% 64% Fixed Data Government Services Fixed Broadband Mobile Connectivity Data as of 31 March 2018 except for revenues which are at 30 June

14 Breakdown of revenues by Application CORE BUSINESSES Video 67% Government Services Fixed Data 11% 10% Direct-to-Home (DTH) Cable headends Professional Video Military Security Mobile backhaul Corporate networks CONNECTIVITY Fixed Broadband 7% Mobile Connectivity 5% Internet access for households and corporates In-flight Connectivity Maritime Connectivity As of 31 March % of revenues excluding Other revenues 14

15 Eutelsat s global network May

16 Financial structure NET DEBT / EBITDA RATIO 1 Net Debt/EBITDA ratio reduced to 3.3x versus 3.4x at 31 Dec x 3.3x Average cost of debt after hedging reduced to 2.9% versus 3.1% in H Dec Dec Based on net debt at the end of the period and last twelve months EBTIDA 16

17 Bond and Bank Debt maturity schedule ONGOING DEBT OPTIMISATION BOND AND BANK DEBT MATURITY SCHEDULE Net Debt/EBITDA ratio reduced to 3.3x versus 3.4x at 31 Dec Pre-hedge: 800m at c. 1.45% ex. spread 800m Pre-hedge: 500m at c. 1.12% ex. spread 930m 200m Average cost of debt after hedging reduced to 2.9% versus 3.1% in H % 2.625% 500m 1.125% 300m 600m 600m 3.125% 450m and 2020 bonds mid-swaps pre-hedged Commitment to Investment Grade ratings Undrawn lines of credit (Eutelsat S.A) Term loan / undrawn line of credits of Eutelsat Communications Outstanding Bonds Note: Maturities are provided on a calendar year 1 With 2 possible extension facility of one year subject to lenders agreement 17

18 Shareholder structure EUTELSAT SHAREHOLDING STRUCTURE AS OF 30 JUNE 2017 Bpifrance 26.4% Free float and others 59.4% CIC 1 6.7% FSP 2 7.5% 1 China Investment Corporation 2 Fonds Stratégique de Participations 18

19 Agenda 1 FSS Industry 2 3 Eutelsat in a snapshot Q performance 4 Outlook 5 Appendix 19

20 Key events since the begining of 2018 Third Quarter revenues of 337m, down 1.1% like-for-like, excluding Other Revenues Procurement of KONNECT VHTS, a major milestone in the Connectivity growth strategy Finalisation of Hispasat stake disposal for 302m, accelerating deleveraging MoU with China Unicom, addressing the fast-growing satellite communications market in Asia-Pacific Solid commercial performance, notably with DoD Spring renewals above 95% 20

21 Q3 revenues analysis Q3 Y-O-Y REVENUE BRIDGE ( M) Q3 revenues of 337m -7.4% reported -3.3% at constant perimeter and currency -1.1% Underlying businesses down 1.1% excluding Other Revenues Improving trend vs H1 (-1.8%) 364 (19) +4 (8) (4) Q3 revenues broadly stable vs Q2, excluding Other Revenues 337 Reported Q Currency 1 Perimeter Change in Other Revenues Operational trend Reported Q Net of Hedging revenues 21

22 Solid Commercial performance since the begining of 2018 Favourable outcome of the Spring renewal campaign with USG: estimated renewal rate above 95% Further contracts secured at 174 East in Government Services Reservation of a significant portion of the capacity on EUTELSAT QUANTUM by Peraton HOTBIRD: Multi-year capacity agreement with Mediaset (Italy) to accelerate HD transition and renewal with TVN (Poland) Sale of the remaining HTS capacity on the EUTELSAT 172B satellite to UnicomAirNet 22

23 Q3 Revenues like-for-like by application REVENUE CONTRIBUTION 1 REVENUES ( m) LIKE-FOR-LIKE 2 CHANGE YoY QoQ CORE BUSINESSES Video Government Services 67% % 11% % Fixed Data 10% % +0.2% -1.5% -1.6% CONNECTIVITY Fixed Broadband Mobile Connectivity 7% % 5% % -0.7% -0.8% Other revenues 0 nm nm 1 The share of each application as a percentage of total revenues is calculated excluding Other Revenues. 2 At constant currency and perimeter. 23

24 Video REVENUES 2 ( M) Q3 Revenues of 225m, down 0.2% y-o-y like-for-like 1 Broadcast revenue now stable with improving trends at HOTBIRD Ongoing pressure in Professional Video Return to a sligth growth (+0.2%) on a q-o-q basis Broadcast revenues up 0.5% Q4 Q3 Q Q Q ,880 channels at end-march % y-o-y HD up from 16.6% to 19.7% Q1 227 Q1 223 FY FY At constant currency and perimeter 2 Reported Revenues at actual rates. They include Noorsat s contribution from Q2 of FY

25 Government Services REVENUES 2 ( M) Revenues of 38m, down 2.3% y-o-y like-for-like 1 Carry-over effect of previous renewals with USG Q-o-Q revenues down 1.5% likefor-like USG Renewal rate at >95% in Spring round Further contracts secured at 174 East Further ramp-up of revenues towards the end of Q4 Q4 Q3 Q2 Q Q Q Q1 41 FY FY At constant currency and perimeter 2 Reported revenues at actual rates 25

26 Fixed Data REVENUES 2 ( M) Revenues of 35m, down 9.0% y-o-y like-for-like 1 Ongoing tough environment in all geographies Continued price pressure Q4 41 Absence of significant incremental volumes at this stage Q3 Q Q3 Q Q-o-Q revenues down 1.6% like-for-like Q1 43 Q1 37 FY FY At constant currency and perimeter 2 Reported revenues at actual rates 26

27 Fixed Broadband Revenues of 22m, down 7.7% y-o-y like-for-like 1 Broadly stable revenues Q-o-Q Lower revenues in Europe Disappointing performance of Retail JV Scarcity of available capacity in Western Europe Experienced management team now in place Progressive arrival of significant incremental capacity AY3 in 2018 for launch of Konnect Africa Broadband Service KONNECT 3 satellite in 2020 KONNECT VHTS in 2021 REVENUES 2 ( M) Q4 23 Q3 24 Q3 22 Q2 24 Q2 22 Q1 25 Q1 22 FY FY At constant currency and perimeter 2 Reported revenues at actual rates 3 Formerly called African Broadband satellite. 27

28 Mobile Connectivity REVENUES 2 ( M) Revenues of 18m, up 18% y-o-y like-for-like 1 Full-quarter effect of EUTELSAT 172B Operations started end-nov Capacity pre-sold to Panasonic Q4 19 Continued wide-beam capacity growth In particular over the Americas Q3 Q Q3 Q Q-o-Q revenues broadly stable like-for-like Q1 Q FY FY At constant currency and perimeter 2 Proforma revenues at actual rates reflecting the disposal of Wins/DHI for FY

29 Backlog and Fill Rate BACKLOG ( BN) OPERATIONAL AND LEASED TRANSPONDERS 1,374 1,416 1, Noorsat (0.4) Mar Dec Mar Video Others Backlog reflecting the absence of significant renewals during the Third Quarter 3.1 years of revenues Video accounting for 83% Fill rate 31 Mar Dec Mar % 67.0% 66.8% Operational transponders Leased transponders OSD of ETL 172B end-nov 17 2 incremental TPE leased during the quarter, 14 y-o-y Based on 36 MHz-equivalent transponders (TPE), excluding HTS capacity 29

30 Agenda 1 FSS Industry 2 3 Eutelsat in a snapshot Q performance 4 Outlook 4 5 Appendix 30

31 Reminder: Our strategic roadmap STEP 1 STEP 2 GROW CASH-FLOW GROW TOPLINE Maximise Free Cash-Flow generation Build on our core video business to accelerate growth Capture longer term potential in Connectivity 31

32 Maximize free cash-flow: Financial measures CAPEX REDUCTION LEAP COST-SAVINGS PLAN Implement design to cost approach Ground capex under strict control Average annual cash Capex reduced by > 80m 1 Launch of «LEAP», a wide-ranging cost-savings plan with a focus on external costs Annualised savings of 30m by FY 2019 of which 15m in FY OPTIMIZATION OF COST OF DEBT OTHER MEASURES 500m bond issue at 1.125% coupon Refinancing of 850m Mar Bond (4.125% coupon) Swap-lock ahead of m bond Locked at c. 145 bps, (-90 bps) Swap-lock ahead of m bond 500m locked at c. 112 bps Annual savings of c. 30m from 2017 onwards, c. 50m from Streamlining the asset portfolio: sale of the Hispasat stake ( 302m) now completed Improving working capital through DSO optimization 1 Savings vs. FY basis 32

33 Build on our core Video business to accelerate growth; capture longer term potential in Connectivity MEDIUM TERM (FROM FY 2019) LONG TERM (FROM FY 2021) VIDEO Build on our core business to accelerate growth FIXED BROADBAND Prepare for scalability MOBILE CONNECTIVITY From niche to mass market Growth potential of Video Opportunity for further value creation Harnessing technology Optimize existing assets within a limited current addressable market Progress on prerequisites for scalability Decide on scale and location of investments Use existing assets to anchor foothold in the market Selectively invest in capacity to improve coverage Pave the way for Mass market 33

34 Video: Build on our core business to accelerate growth GROWTH POTENTIAL OF VIDEO OPPORTUNITY FOR FURTHER VALUE CREATION HARNESSING EXISTING TECHNOLOGY Video via satellite will continue to grow Distribution will be split between satellite and IPTV longer term Outsourcing of services by broadcasters will create additional sources of demand Greater integration within the IP ecosystem Enhance viewer experience Add new services for broadcasters, advertisers and consumers Develop connected terminals Improve efficiency Compression Encription Security Increase revenue Metadata management Targeted advertising Payment Enhance loyalty Multiscreen Smart EPG TV everywhere Enhance end-viewer experience to reinforce customer loyalty and generate additional revenue opportunities 34

35 KONNECT VHTS: Optimal commercial, technical, financial and operational option Commercial: Partnership with two blue chip anchor customers: Orange for retail in Europe Thales for Government Services Financial: De-risking through multi-year capacity pre-commitments Aggregate value of several hundred m Technical: Highest usable capacity over Europe (500 Gbps) Powerful on-board digital processor providing maximum flexibility Unmatched procurement terms for total cost of ownership Operational: OSD in 2021 / KONNECT capacity giving early-mover advantage from 2020 Full ownership of the satellite Compatible with multiple ground technologies Maximization of synergies with other broadband operations 35

36 paving the way for the Connectivity opportunity Significant longterm potential Core market for Fixed Broadband via satellite estimated at c.5m households in Europe in 2030 Global revenues for in-flight Connectivity capacity expected to exceed 1bn in 2025 Game-changing technology Production costs in line with our Capex/Gbps target Provision of fibre-like service at fibre-like price Paving the way for the transition from niche to mass market Springboard for growth rebound from 2020 Managed within current financial framework KONNECT capabilities providing early mover advantage from 2020 onwards KONNECT VHTS available from 2021 KONNECT VHTS investment included in current capex envelope Eutelsat retains an infrastructure business model to protect high EBITDA margins 36

37 Update on our priorities for FY STEP 1: GROW CASH-FLOW STEP 2: RETURN TO GROWTH Stabilise revenues Optimise other items Return to stability at HOTBIRD Improvement in all trends Proactive Video strategy HD% up 3 points Noorsat Integration Fill Data capacity Evolution in line with expectations Leverage new resources to grow Connectivity ETL 172B HTS payload fully sold Deliver on LEAP cost-savings plan Well on track at H1 driving margin uplift next year Contain Capex Below three-year average in FY 18 Continue to de-lever Accelerated with Hispasat sale Successfully market EUTELSAT QUANTUM Vast majority of capacity reserved Deployment of Konnect Africa Delayed by AY3 late availability Prepare growth in Connectivity Disappointing performance of Retail JV with ViaSat Procurement of KONNECT VHTS 37

38 Financial outlook REVENUES (At constant currency and perimeter) EBITDA MARGIN (At constant currency) FY : low end of -1% to -2% range, subject to materialization of Other Revenues in the pipeline Up to c. -3.5% if none of these Other Revenues materialize From FY : return to slight growth Above 76% in FY Above 77% from FY CAPEX DISCRETIONARY FREE CASH FLOW 3 (At constant currency) LEVERAGE FY to FY : average of 420m 2 per year FY expected below 420m average FY to FY : mid-single digit CAGR Investment grade rating Net debt / EBITDA below 3.0x DISTRIBUTION Stable to progressing dividend 1 Based on Proforma revenues of 1472m for FY excluding the contributions of Wins/DHI and DSAT; 2 Inc. cash outflows related to ECA loan repayments and capital lease payments; 3 Net cash-flow from operating activities less Cash Capex less Interest and Other fees paid net of interest received. Three year CAGR calculated on the period FY to FY

39 Future launches Name EUTELSAT 7C EUTELSAT 5 WEST B KONNECT KONNECT VHTS Orbital Position 7 East 5 West TBD TBD TBD Launch date 1 Q Q H H Manufacturer Launcher TBD Coverage MENA SSA Europe North Africa Flexible SSA Europe Europe Applications Video Video Government Services Broadband Broadband Mobile Connectivity Government Total Capacity (TPE/Spotbeams) 49 Ku 35 Ku N/A 65 Ka / 75 Gbps ~230 Ka / 500 Gbps o/w Expansion Capacity 2 19 Ku - N/A 65 Ka / 75 Gbps ~230 Ka / 500 Gbps Electrical propulsion HTS Payload 1 Calendar year 2 Excludes unannounced redeployments 39

40 Agenda 1 FSS Industry 2 3 Eutelsat in a snapshot Q performance 4 Outlook 5 Appendix 40

41 Appendix 5.1 H financials Miscellaneous 41

42 Profitability EBITDA ( M) Rise in EBITDA margin to 78.4% at constant currency despite lower Other revenues Favourable phasing of certain operating costs Positive impact of LEAP cost saving plan Ahead of plan at the Half Year Margin at constant currency (%) H H Reported EBITDA margin stood at 78.2% 42

43 Net income Extracts from the consolidated income statement in m 1 H H Change Revenues % EBITDA 2 Operating income Financial result Income tax % % (60) (56) -6.4% (78) (61) -22.5% Lower D&A reflecting end of life / full depreciation of several satellites Capital gain on Wins/DHI last year ; negative accounting one-off this year related to Noorsat acquisition Lower cost of debt following reimbursement of Mar 17 bond Negative variation in Forex gains and losses Non-cash positive one-off related to future reduction in French tax rate Group share of net income % Net margin of 22.5% 1 Rounded to closest million 2 EBITDA defined as operating income before depreciation, amortisation, impairments and other operating income/(expenses) 43

44 Discretionary free cash flow up 8% At constant currency In m +8% at constant currency (53) (21) (13) Currency impact (1) 339 Net cash Flow from operations Cash Capex (1) Interest and Other fees paid net of interests received Discretionary Free Cash-flow Change H (130) (27) 325 (1) Cash Capex includes capital expenditure and payments under existing export credit facilities and long-term lease agreements on third party capacity. 44

45 Net debt stable after dividend payment and Noorsat acquisition In m - 10m 89 (32) (24) (339) 295 3,641 3,630 Net Debt at end- June 17 Discretionary Free Cash Flow Dividends paid Equity investments FX portion of CC Swap Change in fin. leases / ECA and Others Net Debt at end-dec

46 Appendix 5.1 H financials Miscellaneous 46

47 Focus on HOTBIRD KPIs Resilient channel count 1, % 1,009 March 2017 March 2018 Sustained HD ramp-up Penetration +19% % 31% March 2017 March 2018 MPEG-4 growth slower than HD % 567 Penetration 52% 56% March 2017 March

48 Fixed Broadband: Preparing for mass market adoption BRIDGE DIGITAL DIVIDE IN-MARKET PROPOSITION INDUSTRIAL TRANSLATION TIMING Deliver fiber-like capacity (30 Mbps) Reach fiber-like pricing ( 40 / month) Lower barrers to adoption Assess adressable market Develop appropriate distribution VHTS satellites ~ 1m / Gbps Terminals < $200 Refine assessment of fiber deployment Test and validate business models 2021 C onwards 2016 onwards Use the time to VHTS to prepare for mass market: optimize existing or committed assets (KA-SAT, Russian and African Broaband) and validate go-to-market models 48

49 Mobile Connectivity: Market foothold with existing assets BRING FIBER-LIKE CONNECTIVITY IN MOBILITY IN-MARKET PROPOSITION INDUSTRIAL TRANSLATION TIMING Deliver streaming-like experience for IFEC 1 Mbps / passenger for 50% of passengers VHTS satellites 2021 Deliver on-the-move fiber-like Connectivity for ground transportation VVHTS Flat terminals Pave the way by leveraging our existing assets in Aero (172 East, 10 East, 117 East, KA-SAT), selectively invest to improve coverage, and seek partnership deals with stakeholders for each vertical 49

50 Strong pipeline for in-flight Connectivity KA-SAT EUTELSAT 172B OTHER RESOURCES Several contracts signed using capacity on KA-SAT over Europe Finnair SAS El Al Icelandair Eutelsat provides satellite capacity, ViaSat is the prime contractor Customised HTS payload to support IFEC growth over APAC Fully sold to 2 major customers Panasonic China Unicom Panasonic to use also widebeam capacity to deliver live TV to aircrafts Contract with Taqnia for four HTS Ka-band spotbeams on ETL 3B Capacity to be used for 100 medium / long-haul aircraft of Saudi Arabian Airlines Several contracts for the use of widebeam capacity by major service providers 50

51 Stepping up cooperation with China Unicom Historic and strong partner in the region New MoU addressing satellite communications market in the framework of the Belt and Road initiative Remaining HTS capacity on ETL 172B contracted for in-flight Connectivity Considering further jointdevelopment of satellite communication services 51

52 Eutelsat Quantum: Cutting-edge technology Software-defined class of satellites First satellite to be launched in 2019 Manufactured by Airbus Defence 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 and Mobility 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 52

53 Satellite programme capex profile BREAKDOWN OF CAPEX TYPICAL TIMING OF CAPEX PAYMENTS 30% 30% 40% YEAR 1 YEAR 2 YEAR 3 Others Insurance Launcher Satellite Capex generally split equally over three years prior to launch Insurance paid in year three 53

54 Design-to-cost: EUTELSAT 5 West B case study DESIGN-TO-COST Improved match of coverage with customer requirements Lower cost of payload Smaller platform LAUNCH Shared launch in a stacked configuration on a Proton rocket Lower launch cost Lower insurance cost >30% 1 in capex savings Improved IRR Enhanced performance (1) relative to the theoretical cost of replicating EUTELSAT 5 West A s Ku band mission 54

55 Satellite economic model 1 : Regular capacity 1 For a greenfield satellite, using chemical propulsion 55

56 LEAP Programme: 30m cost-savings by 2019 LAUNCH OF LEAP WITH IDENTIFIEDSAVINGS TIMING AND IMPACT OF LEAP EBITDA margin above 75% Scope for improvement relative to best-in class c. 140m of adressable costs identifed Out of total opex base of c. 340m Target of >20% reduction Based on granular internal analysis and benchmarking FY FY FY Launch and quick wins 15m savings 30m savings EBITDA margin 1 target raised* Cost savings target attributed to each manager with attendant incentivisation >76% >76% >77% *from >75% previously for the three years 1 At constant currency 56

57 IR Contacts Joanna DARLINGTON T: E: jdarlington@eutelsat.com Cédric PUGNI T: E: cpugni@eutelsat.com 57