EUTELSAT COMMUNICATIONS Investor Presentation January 2018

Similar documents
EUTELSAT COMMUNICATIONS Investor Presentation March 2018

SATELLITE MARKETS AND TECHNOLOGY TRENDS ITU INTERNATIONAL SATELLITE SYMPOSIUM JEAN-FRANCOIS FENECH CEO EUTELSAT ASIA BANGKOK, 1 SEPTEMBER 2017

Revenue by application

Multimedia Polska S.A. 4March 2015

HbbTV Symposium Asia 2014

Q1 2012: SES CONTINUES ON ITS GROWTH TRACK

INTERIM RESULTS SKY NETWORK TELEVISION LIMITED INTERIM RESULTS DECEMBER 2018

MACQUARIE CONFERENCE Wednesday 2 May, 2018

Quarterly Commentary

EUTELSAT GVF OIL & GAS RIO, APRIL 8, 2015 ELOI STIVALLETTI

No monopoly for High Throughput Satellite (HTS) services at sea

Global Invacom Group Limited. FY2014 Results Presentation 26 February 2015

Intelsat Media Solutions. Capture and Expand Your Audience

TV Azteca in Grupo Salinas

AT&T Investor Update. 2Q08 Earnings Conference Call July 23, 2008

4K & DVB-S2X HOW OPERATORS CAN BE COST-EFFECTIVE. Market Trend. Introduction. 4K & DVB-S2X. How Operators Can Be Cost-effective

ENABLING THE NEXT VIDEO REVOLUTION

Broadcasting from 1 West. The leading position in the Nordic region and a hotspot location for broadcasting in Central and Eastern Europe BROADCAST

GLOBAL INVACOM. FY2017 Annual General Meeting

Eros International Plc Corporate Presentation

ENCRYPTING FOR GROWTH

Introducing MX1 Sports & Events. September 2017

Capture and Expand Your Audience

YahLive The home of HDTV. Giving you the best high quality content

Strategic Partnership to Advance Dedicated and New Cinema Solutions

TV Subscriptions and Licence Fees

Quarterly Total Revenue and Adjusted AEBITDA

du Announces Interim Dividend of 12 Fils per Share Q Year-on-Year Revenues Exceed AED 3 billion for First Time

SES CONTINUES TO SHOW RECURRING GROWTH IN Q1 2010

MTN Group Limited. Highlights

The Communications Market: Digital Progress Report

Sonic's Third Quarter Results Reflect Current Challenges

SES Omni TV. The next day of TV!!!

Ka-Band Satellite Consumer Triple-Play and Professional Video Services

GLOBAL INVACOM. FY2016 Annual General Meeting

ADB Group Presentation

RUSSIA / UKRAINE / OTHER CIS INVESTMENT OPPORTUNITY JULY 23, 2007

Future of TV. Features and Benefits

DEN Networks Limited Investor Update: Q1 FY

The DTH teleport - challenges and opportunities

Coinstar, Inc. Analyst Day May 16, 2012

TMT Conference. London, 7 th June 2006

Intelsat Maritime Solutions

USO OFCOM Consultation Comments

Cineworld Group 2016 Results 9 th March 2017

RTL GROUP PRESENTATION. Brussels, 21 June 2013

Vista Group International Limited 2015 Annual General Meeting Chairman s Address

Digital Terrestrial HDTV Broadcasting in Europe

John Stankey President and CEO AT&T Operations

The Future of Satellites. Alex Epshteyn Senior Principal Regulatory Engineer

Belden Broadcast Solutions

SKYCITY Entertainment Group Limited. Interim results for the six months to 31 December 2017

The Communications Market: Digital Progress Report

Presented By: Andy Louis, Chairperson of NAB Technical Committee Date: 3 October National Association Of Broadcasters 1

31 January , , ,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000

MTN Group records 203,8 million subscribers

Netflix: Amazing Growth But At A High Price

TV Azteca en Grupo Salinas

INVESTOR PRESENTATION. March 2016

Quarterly update for the period ended 30 September 2018 and renewal of cautionary announcement

C-band Use and Challenges in the Americas Region. January 2013

SKY NETWORK TELEVISION. John Fellet CEO Jason Hollingworth - CFO 27 February 2007

MTN Group records 227,5 million subscribers. Satisfactory subscriber growth of 1,8% quarter-on-quarter (QoQ), adding 4,1 million subscribers

+ = Triple Play Powerhouse. The culmination of a long-term strategic goal

GLOBAL INVACOM. Q3 FY2016 Briefing & Analysis

Why split up Netflix?

Discussion Materials December 10, 2012

Intelsat CEO Stephen Spengler on the fleet operator s big broadband bet

High Efficiency Video coding Master Class. Matthew Goldman Senior Vice President TV Compression Technology Ericsson

Utilising satellite to promote digital broadcasting. Cristiano Benzi, Director Line of Business Video and Broadcasting, Eutelsat

Joint submission by BBC, ITV, Channel 4, Channel 5, S4C, Arqiva 1 and SDN to Culture Media and Sport Committee inquiry into Spectrum

Extraordinary Together. Zee Entertainment Entertainment Content Company

INTRODUCTION. FREEVISION Launch Presentation 30 September

What. we re planning. SKY Perfect JSAT Holdings Inc.

Cineworld 2017 Interim Results 10 th August 2017

Bank of America Merrill Lynch Media, Communications and Entertainment Conference

Interim Results. 16 th August 2012

MTN Group Limited (Incorporated in the Republic of South Africa) Highlights

Response to Ofcom Consultation The future use of the 700MHz band. Response from Freesat. 29 August 2014

Defining DTTB network specifications and ensuring Quality of Service

TV Subscriptions and Licence Fees

SATELLITE RELATED SERVICES

Cineworld 2017 Interim Results 10 th August 2017

Broadband Changes Everything

UTV Software Communications Limited

National Association Of Broadcasters 1

GLOBAL INVACOM SGX-WeR1 Investment Seminar 5 October 2016

Ahead of the Curve: Top CTOs Discuss Where to Invest Next

Hybrid DTH/DTT. Cost effective solutions for fast digital migration

Forward-Looking Statements

2011 Q1 Results Presentation

Extraordinary Together. Zee Entertainment Entertainment Content Company

Digital Terrestrial Television (DTT) is a Great European Success Story. Challenges for DTT. The European Spectrum Discussion

ATSC TELEVISION IN TRANSITION. Sep 20, Harmonic Inc. All rights reserved worldwide.

SKYCITY Entertainment Group Limited. Interim Results for six months to 31 December 2014

SATELLITEMOBILITY WORLD

Morgan Stanley October / November 2013

SWITCHED INFINITY: SUPPORTING AN INFINITE HD LINEUP WITH SDV

INVESTOR PRESENTATION. June 17

Deutsche Bank Conference June 2005

Transcription:

EUTELSAT COMMUNICATIONS Investor Presentation January 2018

Agenda 1 FSS Industry 2 3 Eutelsat in a snapshot Q1 2017-18 performance 4 Outlook 5 Appendix 2

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

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 Robust business model Significant backlog with long term contracts generating revenue visibility Economies of scale High operating margins Predictable operating cash flow 4

Trends in our core businesses VIDEO: MODEST DEMAND 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 Europe, Asia and MENA and in non-military Broad stability 5

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 Medium-term potential in Aero Long-term potential in land Mobility VHTS and VVHTS satellites are pre-requisites in terms of volume and pricing for mass-market adoption 6

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% 2026 2016 MENA 16% 38% LATAM 24% 50% Central Europe 19% 50% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Western Europe North America 29% 38% 74% 81% Predominantly driven by emerging Video markets Everywhere, including mature Video markets Source: Euroconsult 2017 7

Video drivers: Capacity requirements versus compression technology EVOLUTION OF IMAGE QUALITY (NUMBER OF CHANNELS) NUMBER OF CHANNELS PER 36 MHZ TRANSPONDER 25 000 20 000 Format Modulation MPEG-2 MPEG-4 HEVC 15 000 10 000 SD DVB-S ~12 - - DVB-S2 - ~26-5 000 HD DVB-S - - - DVB-S2 - ~9 ~15 0 2016 2018 2020 2022 2024 2026 UHD DVB-S2 - - ~3 Standard Definition High Definition Ultra High Definition and 3D Source: Euroconsult 2017, EMEA and LATAM 8

Video: Satellite s competitive advantage over OTT / IP COST-EFFICIENCY UNIVERSAL REACH SERVICE QUALITY BROADBAND COVERAGE (>30Mbps) BANDWIDTH REQUIREMENT (Mbps) Cost OTT 1 UHD channel in HEVC 20 88% 1 HD channel in MPEG 4 7 Satellite 41% 44% 1 SD channel in MPEG 2 3 # viewers UK France Italy 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 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 consumer internet traffic by 2019 Satellite and hybrid solutions give unimpaired viewing experience Source: Eutelsat analysis, European Commission - Broadband Coverage in Europe 2015, CISCO VNI 2015 9

Video: Satellite resilience in Western Europe MILLION TV HOMES BY DISTRIBUTION MODE IN WESTERN EUROPE IP GAINING SHARE VS. TERRESTRIAL, NOT SATELLITE 166 172 172 175 49 50 50 50 12 26 28 33 Slight increase in total number of TV homes 175 million Satellite reception stable at 50 million homes 47 43 42 42 Satellite market share of 29% 58 53 52 50 2010 2015 2016 2021 IP gaining share against terrestrial, not satellite Terrestrial Cable IP Satellite Source: Euroconsult, Digital TV Research 10 10

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 2021 1449 267 1568 1588 370 379 1682 432 36 124 143 199 Satellite reception to grow by 50 million homes to 430 million by 2021 528 560 563 580 Satellite market share to rise from 24% to 26% 618 514 503 471 2010 2015 2016 2021 Terrestrial Cable IP Satellite Source: Digital TV Research, June 2016 11 11

Agenda 1 FSS Industry 2 3 Eutelsat in a snapshot Q1 2017-18 performance 4 Outlook 5 Appendix 12

Eutelsat in a snapshot KEY DATA REVENUE BREAKDOWN BY APPLICATION By geography Revenues of 1.48bn Fleet of 39 satellites; global coverage Operating >1,370 transponders 7% 11% 10% 5% 5% Western Europe Central Europe 31% MENA RCA SSA Americas 8% APAC 23% Unallocated and others Broadcasting >6,600 channels Backlog of 5.2bn, representing 3.5 years of revenues By application 7% 5% Video 12% 12% 64% Fixed Data Government Services Fixed Broadband Mobile Connectivity Data as of 30 June 2017 except for breakdown of revenues by geography which is a 30 June 2016. 13

Breakdown of revenues by Application CORE BUSINESSES Video 65% Fixed Data 11% Government Services 12% Direct-to-Home (DTH) Cable headends Professional Video Mobile backhaul Corporate networks Military Security CONNECTIVITY Fixed Broadband 7% Mobile Connectivity 5% Internet access for households and corporates In-flight Connectivity Maritime Connectivity As of 30 Sept 2017. % of revenues excluding Other revenues 14

Eutelsat s global network NOVEMBER 2017 August 2017 1515

Financial structure NET DEBT / EBITDA RATIO 1 Net Debt/EBITDA ratio at 3.2x Reduced from 3.4x at 30 June 2016 Average cost of debt after hedging of 3.1% Reduced from 3.5% in FY 2015-16 3.4 3.2 Repayment of Mar 17 bond to generate 30m savings in FY 2017-18 30 June 2016 30 June 2017 1 Based on net debt at the end of the period and last twelve months EBTIDA 16

Bond and Bank Debt maturity schedule ONGOING DEBT OPTIMISATION DEBT MATURITY SCHEDULE One year extension of 600m term loan and 200m revolving credit facility Refinancing of 450m revolving facility Pre-hedge: 800m at c. 1.45% ex. spread 800m Pre-hedge: 500m at c. 1.12% ex. spread 930m 200m 2019 and 2020 bonds mid-swaps prehedged 5.0 % 2.625% 500m 300m 450m 1 Average debt maturity of 3 years 1.125% 600m 3.125% 2019 2020 2021 2022 Undrawn lines of credit (Eutelsat S.A) Outstanding Bonds Term loan / undrawn line of credits of Eutelsat Communications Note: Maturities are provided on a calendar year 1 With 2 possible extension facility of one year subject to lenders agreement 17

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

Agenda 1 FSS Industry 2 3 Eutelsat in a snapshot Q1 2017-18 performance 4 Outlook 5 Appendix 19

Key events First Quarter revenues of 349m Well-oriented operational metrics: stable Backlog rising Fill Rate and increased HD penetration quarter on quarter Positive outcome of Video renewals, notably with Polsat at HOTBIRD Streamlining of Video distribution in MENA with integration of Noorsat Favourable USG Fall campaign with almost 95% renewal rate Al Yah 3 delay impacting African broadband roll-out 20

Q1 Revenues Q1 YOY REVENUE BRIDGE ( M) Q1 revenues of 349m -1% -9.3% reported -6.7% at constant perimeter and currency (5) (6) Underlying businesses down 1% excluding Other revenues 385 (21) (4) 349 Reported Q1 2016-17 Currency Perimeter Change in Other Revenues Operational trend Reported Q1 2017-18 21

Q1 Revenues like-for-like by application REVENUE CONTRIBUTION 1 REVENUES ( m) LIKE-FOR-LIKE 2 CHANGE YoY QoQ CORE BUSINESSES Video 65% 223-0.8% Fixed Data 11% 37-11.7% Government Services 12% 41 +1.1% +0.7% -4.7% -2.0% CONNECTIVITY Fixed Broadband Mobile Connectivity 7% 22-9.7% 5% 19 +33.3% -3.5% +5.1% Other revenues 7-74.8% +14.7% 1 The share of each application as a percentage of total revenues is calculated excluding Other revenues. 2At constant currency and perimeter. Based on new applications reporting. 22

Video REVENUES 2 ( M) Revenues of 223m, down 0.8% y-o-y like-for-like 1 Broadcast up 0.5% excluding carryforward impact of termination of TV d Orange contract: Growth in Russia at 36 and 56 East And MENA at 7/8 West and 7 East Renewal with Polsat at the HOTBIRD position Ongoing tough conditions in Professional Video 6,755 channels at end-sept. 2017 +6.6% y-o-y HD up from 14.8% to 17.9% Q4 Q3 Q2 Q1 908 224 228 229 227 Q1 223 FY 2016-17 FY 2017-18 1 At constant currency and perimeter 2 Proforma revenues reflecting new applications at actual rates as well as the disposal of DSAT Cinema for FY 2016-17 23

Fixed Data REVENUES 2 ( M) Revenues of 37m, down 11.7% y-o-y like-for-like 1 Ongoing tough environment in all geographies Continued price pressure Q4 Q3 Q2 168 41 42 41 Q1 43 Q1 37 FY 2016-17 FY 2017-18 1 At constant currency and perimeter 2 Proforma revenues reflecting new applications at actual rates 24

Government Services REVENUES 2 ( M) Revenues of 41m, up 1.1% y-o-y likefor-like 1 Stabilization of revenues reflecting solid commercial performance in FY 2016-17 USG Renewal rate at almost 95% in Fall round Volumes almost stable Slight decline in price Q4 Q3 Q2 Q1 176 45 45 44 42 Q1 41 FY 2016-17 FY 2017-18 1 At constant currency and perimeter 2 Proforma revenues reflecting new applications at actual rates 25

Fixed Broadband REVENUES 2 ( M) Revenues of 22m, down 9.7% y-o-y like-for-like 1 Y-o-Y variation reflecting mainly the absence of a one-off last year: Related to the phasing of payments by a specific customer Definite delay to launch and entry into service of Al-Yah 3: Commercial service now expected in June 2018 at the earliest; Marketing partly suspended, affecting Al Yah 2 operations; Majority of revenue expectations for Konnect Africa pushed out to 2018-19. Q4 Q3 Q2 Q1 96 23 24 24 25 Q1 22 FY 2016-17 FY 2017-18 1 At constant currency and perimeter 2 Proforma revenues reflecting new applications at actual rates 26

Mobile Connectivity Revenues of 19m, up 33% y-o-y like-for-like 1 REVENUES 2 ( M) YoY variation reflecting: Full-quarter impact of Taqnia contract Continued growth on Widebeam capacity with customers including Gogo, Hunter and Panasonic Revenues to benefit from entry into service of EUTELSAT 172B in November Full impact from Q3 onwards Q4 Q3 Q2 Q1 69 19 17 18 15 Q1 19 FY 2015-16 FY 2016-17 1 At constant currency and perimeter 2 Proforma revenues reflecting new applications as well as the disposal of Wins/DHI at actual rates 27

Backlog and Fill Rate BACKLOG ( BN) OPERATIONAL AND LEASED TRANSPONDERS 5.4 5.2 5.2 0.8 0.8 0.7 1,327 1,372 1,374 948 931 940 Video 4.6 4.4 4.5 30 September 2016 30 June 2017 30 September 2017 Fill rate 30 Sept. 2016 30 June 2017 30 Sept. 2016 71.5% 67.9% 68.4% Operational transponders leased transponders 3.5 years of revenues Sequential increase in Video backlog Video accounting for 86% Operational txp unchanged Q-o-Q Leased txp up by 9 units Q-o-Q Fill rate of 68.4% Based on 36 MHz-equivalent transponders (TPE), excluding HTS capacity 28

Agenda 1 FSS Industry 2 3 Eutelsat in a snapshot Q1 2017-18 performance 4 Outlook 4 5 Appendix 29

Reminder: Our strategic roadmap STEP 1 STEP 2 GROW CASH-FLOW 2016-2019 GROW TOPLINE 2019-2025+ 2017-19 Maximise Free-Cash-Flow generation Build on our core video business to accelerate growth Capture longer term potential in Connectivity 30

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 2018 1 OPTIMIZATION OF COST OF DEBT OTHER MEASURES 500m bond issue at 1.125% coupon Refinancing of 850m Mar. 2017 Bond (4.125% coupon) Swap-lock ahead of 2019 800m bond Locked at c. 145 bps, (-90 bps) Swap-lock ahead of 2020 930m bond 500m locked at c. 112 bps Annual savings of c. 30m from 2017 onwards, c. 50m from 2019 1 Streamlining the asset portfolio: agreement reached with Abertis for Hispasat stake ( 302m) Improving working capital through DSO optimization 1 Savings vs. FY 2015-16 basis 31

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 32

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 33

Connectivity: Agreement with ViaSat CLOSING OF JV AGREEMENT WHAT S NEW? Combining Eutelsat s European broadband business with ViaSat s expertise Two entities: Infrastructure (51% Eutelsat) Retail (51% ViaSat) ViaSat paid 132.5m for 49% of European Broadband business Initial JV perimeter extended to include both Fixed Broadband AND in-flight Mobility Initial technical assessment of Viasat 3 VHTS technology successfully completed ViaSat-3 EMEA satellite expected to be added to the joint venture Platform to drive growth acceleration in Connectivity vertical from early 2020s 34

paving the way for the longer-term opportunity Significant longterm potential Core market for Fixed Broadband via satellite estimated at c.5m households in Europe in 2030 1 Global revenues for in-flight Connectivity capacity expected to exceed 1bn in 2025 VHTS gamechanging technology Provision of fibre-like service Production costs enabling transition from niche to mass market Springboard for growth rebound from 2020 Managed within current capex and profitability framework Early mover advantage Strong technology partner Combining ViaSat s distribution know how and Eutelsat s established positions and go-to-market experience Shared Investment with ViaSat KA-SAT funds earmarked for VHTS investment Eutelsat retains an infrastructure business model with no impact on margins 1 Households with Fixed Broadband connection below 10 Mbps and no indoor LTE coverage 35

Progress on our priorities for FY 2017-18 Return to broad stability at HOTBIRD Stimulate HD ramp-up and optimise Video distribution Polsat renewal with favourable outcome HD penetration up c. 3 pts in Q1 Integration of Noorsat Grow Cash Flow Stabilise revenues Optimise other items Fill Data capacity Grow Connectivity Deliver on LEAP cost-savings plan Maintain tension on WCR Contain Capex Continue to de-lever Some improvement in volume trends Mobile Connectivity up 33% in Q1 OSD of E172B on track for Q2 Konnect Africa ramp-up Pushed out due to Al Yah 3 delay All on track 36

2017-18 revenue path back-end loaded Y-o-Y revenue trend to improve in future quarters QUARTERLY PROFORMA REVENUES IN FY 2016-17 Comparison base to become easier in coming quarters Lower Other revenues End of TV d Orange on 31 Dec. Easier comps for Fixed Data 379 370 27 14 364 359 7 6 Uplift from EUTELSAT 172B in Q2 HTS payload partly presold to Panasonic Full-quarter impact from Q3 352 356 357 353 Q1 Q2 Q3 Q4 Other revenues 37

Financial outlook REVENUES (At constant currency, and perimeter) -1% to -2% in FY 2017-18 1 Versus broadly stable previously Return to slight growth from FY 2018-19 EBITDA MARGIN (At constant currency) CAPEX DISCRETIONARY FREE CASH FLOW 3 (At constant currency) LEVERAGE Above 76% in FY 2017-18 Above 77% from FY 2018-19 FY 2017-18 to FY 2019-20: average of 420m 2 per year FY 2016-17 to FY 2019-20: mid-single digit CAGR, with growth back-end loaded in the outer two years Investment grade rating Net debt / EBITDA below 3.0x DISTRIBUTION Stable to progressing dividend 1 Based on Proforma revenues of 1472m for FY 2016-17 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 2016-17 to FY 2019-20. 38

Future launches Name EUTELSAT 7C EUTELSAT 5 WEST B AFRICAN BROADBAND SATELLITE Orbital Position 7 East 5 West TBD TBD Launch date 1 H2 2018 H2 2018 2019 2019 Manufacturer Launcher Coverage MENA SSA Europe North Africa Flexible SSA Applications Video Video Government Services Broadband Total Capacity (TPE/Spotbeams) 49 Ku 35 Ku N/A 65 Ka / 75 Gbps o/w Expansion Capacity 2 19 Ku - N/A 65 Ka / 75 Gbps Electrical propulsion HTS Payload 1 Calendar year 2 Excludes unannounced redeployments 39

Agenda 1 FSS Industry 2 3 Eutelsat in a snapshot Q1 2017-18 performance 4 Outlook 5 Appendix 40

Appendix 5.1 FY 2016-17 financials 5 5.2 Miscellaneous 41

FY 2016-17 Revenues of 1.478bn, -2.2%like-for-like REVENUE CONTRIBUTION 1 REVENUES 2 ( m) LIKE-FOR-LIKE 3 CHANGE CORE BUSINESSES Video 64% 908-3.3% Fixed Data 12% 168-14.0% Government Services 12% 176-4.1% CONNECTIVITY Fixed Broadband Mobile Connectivity 7% 96 +18.4% 5% 75 +22.5% 1 The share of each application as a percentage of total revenues is calculated excluding Other revenues. 2 Total revenues of 1478m also include Other revenues of 55m 3 At constant currency and perimeter and excluding non-recurring revenues. Based on new applications reporting. 42

Profitability EBITDA ( M) EBITDA margin rising to 76.7% despite lower revenues 76.6% at constant currency First benefits of early costcutting actions Lower level of bad debt Positive impact of disposal of non-core, lower margin businesses (Wins/DHI) Margin (%) 1,165 1,134 76.2 76.7 77.4 77.4 77.5 FY 2015-16 FY 2016-17 43

Net income Extracts from the consolidated income statement in m 1 FY 2015-16 FY 2016-17 Change Revenues 1,529 1,478-3.3% EBITDA 2 1,165 1,134-2.7% Operating income Financial result Income tax Income from associates Group share of net income 662 615-7.1% (123) (131) +6.4% (200) (120) -39.9% 24 0 n.a 348 352 +0.9% Higher D&A Capital gain on Wins/DHI Full-year impact of EUTELSAT 36C lease Lower capitalized interest Variation in forex impact Partial tax-exemption of Wins/DHI capital gain Non-cash positive one-off related to future tax rate cut in France Hispasat reclassified in assets held for sale Net margin of 24% 1 Rounded to closest million 2 EBITDA defined as operating income before depreciation, amortisation, impairments and other operating income/(expenses) 44

Discretionary Free-Cash Flow up 65% In m (414) 983 1 (161) (1) +65% 408 Net cash Flow from operations Cash Capex (1) Interest and Other fees paid net of interests received Discretionary Free Cash-flow Change FY 2015-16 + 87 +100-27 +161 896 (514) (134) 247 (1) Cash Capex includes capital expenditure and payments under existing export credit facilities and long-term lease agreements on third party capacity. (2) Cash Capex for FY 2016-17 is: (i) restated from the value of the payment owed in FY 2015-16 to RSCC in respect of lease of EUTELSAT 36C but paid effectively in FY 2016-17 (payment of 95.2m) which was already accounted for in FY 2015-16 cash capex; (ii) net of the 132.5m received from ViaSat. 45

Net debt down 366m In m (408) +266 (55) 1 (140) (29) - 366m 4,007 3,641 Net Debt at end- June 16 Discretionary Free Cash Flow Dividends paid Equity divestments Change in financial leases and ECA Other Net Debt at end-june 17 1 Excluding Payment of 95.2m to RSCC already reflected in Discretionary cash flow 46 46

Appendix 5.1 FY 2016-17 financials 5 5.2 Miscellaneous 47

Focus on HOTBIRD KPIs Resilient channel count 1,044 End of TV d Orange -43 Others +15 1,016 Sept. 2016 Sept. 2017 225 +29% 290 Sustained HD ramp-up Penetration 21.6% 28.5% Sept. 2016 Sept. 2017 MPEG-4 more advanced than HD 500 +9% 544 Penetration 47.9% 53.5% Sept. 2016 Sept. 2017 4848

Evolution of used capacity at HOTBIRD KEY TRENDS BY FY 2021 EVOLUTION OF CAPACITY USED Positives HD penetration to reach 50% (vs. c. 25% today) >20 UHD channels (vs. <5) Negatives Reduction in simulcast (from 10% to 5% of total channels) Efficiency gains (coding, modulation, compression) (20) 100 (17) 109 FY 17 In Mbps (base 100 in FY 2017) SD channel reduction Efficiency gains +37 HD channel increase +9 Sensitivity: a variation of 10 channels would have a 1 point impact on capacity used UHD channel increase FY 21 New pricing model based on Mbps Increase in Mbps used => revenues at least stable 49

Acquisition of Noorsat: Streamlining Video distribution INCREASE DIRECT CUSTOMER ACCESS BY INTEGRATING DISTRIBUTION Increase our control over the commercial development of MENA Hotspots Increase our direct access to the end clients: Boost HD adoption Upsell incremental Video Services Leverage on salesforces for crossselling Internalize the distribution margin Noorsat in a snapshot One of the largest distributors of video in MENA c. 300 channels Blue chip customers Financial impacts Acquisition price of c. 75 M$ > $15m on revenues 1 Slightly dilutive margin impact absorbed within objectives - 0.4bn on backlog 1 annualized basis net of capacity purchased by Noorsat from Eutelsat 50

Video Case study: Development of hybrid offer in South Korea VIDEO KT MEDIA SUBSCRIBERS (M) South Korea is one of the countries with the highest fiber penetration KT Telecom hybrid offer launched in August 2009 combining IPTV with DTH Part of a triple play offer including broadband and Voice over IP 9.71 5.35 Differentiated services offering Wide range of linear channels including HD channels (from satellite TV) Olleh TV (IPTV) 1.55 4.55 Significant VOD contents (from IP offer) After adopting the hybrid platform KT was perceived to be superior to cable TV or competitor IPTV Olleh TV Skylife (hybrid) Skylife TV (satellite) 0.84 2.15 1.94 2.43 Satellite Became a leading IPTV player 2011 2017 Satellite prospering in the land of fiber Source: Eutelsat analysis, company reports 51

Video via satellite: Italian market focus SKY ITALIA SATELLITE SUBSCRIBER DEVELOPMENT Eutelsat s number one Video market Sky Italia retail customers, in 000 subs Unrivalled distribution cost Eg: Sky It is paying c. 90m /year to distribute 260 channels to 4.8 M households 4,833 4,760 4,734 4,700 4,809 This represents c.7 cents per channel per household per year Low terrestrial infrastructure penetration Sky Italia available via Telecom Italia terrestrial since 2015 Sky Satellite subscribers have risen since then Dec12 Dec13 Dec14 Dec15 Dec 16 Launch of OTT Source: OECD, Sky reports 52

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 2020-21 C.2019 2018 onwards 2016-18 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 53

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 1 Terabyte satellite 2020-21 Deliver on-the-move fiber-like Connectivity for ground transportation VVHTS Flat terminals 2025-2035+ 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 54

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 selected by Panasonic to support IFEC growth over APAC 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 55

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 56

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 57 57

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 58

Satellite economic model 1 : Regular capacity 1 For a greenfield satellite, using chemical propulsion 59

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 2016-17 FY 2017-18 FY 2018-19 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 60

IR Contacts Joanna DARLINGTON T: +33 1 53 98 31 07 E: jdarlington@eutelsat.com Cédric PUGNI T: +33 1 53 98 31 54 E: cpugni@eutelsat.com 61