EUTELSAT COMMUNICATIONS FULL YEAR 2016-17 RESULTS

Revenues of 1,478m down 2.2% like-for-like[1]

EBITDA margin of 76.7%[2], up from 76.2%

Group share of Net Income of 351.8m, up 0.9%

Discretionary Free-Cash-Flow significantly ahead, by 65%

Proposed dividend of 1.21 per share, up 10%

All financial objectives confirmed or raised

Key Financial Data FY 2015-16 FY2016-17 Actualchange Like-for-likechange

Revenues - m 1,529.0 1,477.9 -3.3% -2.2%1

Profitability

EBITDA[3] m 1,164.6 1,133.6 -2.7% -

EBITDA margin - %3 76.2 76.72 0.5 pts -

Group share of net income - m 348.5 351.8 0.9% -

Financial structure

Cash Capex3 514.4 414.4 - 100.0m -

Discretionary free-cash-flow3 247.3 407.8 160.5m -

Net debt - m 4,006.8 3,640.7 - 366.1m

Net debt/EBITDA - x3 3.4 3.2 -0.2 pts -

Backlog - bn 5.6 5.2 -7.6% -

Rodolphe Belmer, CEO of Eutelsat Communications, said: During the past year, we have delivered or over-delivered on all our financial commitments. In particular, our strong performance on free cash flow generation has enabled us to reduce net debt to below 3.3x EBITDA, and to recommend a strong, 10% rise in dividend. Our performance was supported by solid commercial momentum in our core video business and in other verticals - particularly mobile connectivity, as well as the strengthening of our financial profile. In consequence, we are on track to achieve top-line stability in FY 2017-18, with a return to slight growth thereafter. The successful execution of our LEAP cost-savings plan will help us deliver an EBITDA margin above 76% in FY 2017-18, and we are raising our target for FY 2018-19 and beyond to above 77%. We also maintain our commitment to free cash flow growth, where we target mid-single digit compound growth for the next three years off the extremely high base achieved in FY 2016-17, with growth back-end loaded in the outer two years. This will enable us to further deleverage, with net debt / EBITDA now forecast below 3.0x within the next couple of years, while continuing to serve a stable to progressive dividend to our shareholders.

At the same time, we are laying the foundations for long term value-creation, with a strong focus on securing durable capex efficiencies while paving the way for step up in growth in the early 2020s, supported by our Connectivity verticals.

HIGHLIGHTS OF THE YEAR

Delivery or over-delivery on all financial objectives:

Revenues in line with expectations at -2.2% like-for-like

EBITDA margin target raised and exceeded

Discretionary Free Cash Flow growth significantly ahead of expectations at 65%

Net Debt / EBITDA below 3.3x

Dividend per share recommended at 1.21, up 10%

Solid commercial performance:

In Video

HD take-up accelerating on HOTBIRD;

Significant contract renewals in Europe and in MENA with Arqiva at 28 East, and Digiturk at 7 East;

Multi-year, multi-transponder contract with NTV-Plus on Express-AT2 to reach homes in Far Eastern Russia and incremental capacity on Express-AT1 to consolidate coverage of Siberia.

In Government Services, a satisfactory outcome of renewal campaigns with the US Department of Defense;

In in-flight Connectivity, contracts with ViaSat on KA-SAT to provide capacity for SAS, Finnair and Icelandair, with Taqnia for the HTS payload of EUTELSAT 3B and to provide resources for Panasonic on EUTELSAT 115 West B;

Selection of EUTELSAT 5 West B by the European Global Navigation Satellite Systems Agency (GSA) for the next-generation EGNOS payload, a contract valued at c. 100 million over 15 years from 2019-20.

Strengthened financial profile:

Successful launch of the LEAP' cost-savings plan, to generate 30 million in annual savings in 2018-19;

Repayment of the March 2017 850 million bond, generating 30 million in savings from fiscal year 2017-18;

Refinancing of several credit lines and pre-hedge of the January 2020 930 million bond for an outstanding amount of 500 million;

Agreement to sell Hispasat stake to Abertis for a 302 million consideration, and other non-core asset disposals.

Laying the foundations for ongoing value creation:

Securing durable cash-flow generation through capex efficiencies:

EUTELSAT 5 West B satellite procurement with design-to-cost' policy enabling Capex savings of more than 30%;

Increased choice in the launcher market through a contract with Blue Origin for a launch on the New Glenn rocket, and multi-launch agreement with Arianespace for the launches of EUTELSAT 7C, Eutelsat Quantum and the African Broadband Satellite.

Preparing the ground for future revenue growth:

Launch of EUTELSAT 172B in June 2017 with a coverage of Asia-Pacific;

Launch of Russian Broadband programme;

Ka-band capacity secured from Yahsat enabling the commercial launch of Konnect Africa in June 2017;

Joint-venture with ViaSat paving the way for a step-up in Connectivity top-line from the early 2020s.

REVENUES[4]

Total revenues for FY 2016-17 stood at 1,477.9 million, down 2.2% at constant currency and perimeter. On a reported basis revenues were down 3.3%, reflecting a 1.7 points negative perimeter effect (disposal of Alterna'TV, Wins/DHI and DSAT Cinema) and a 0.6 points positive currency effect.

Revenues for the Fourth Quarter stood at 358.5 million, with a like-for-like change of -3.1% year-on-year and -0.9% quarter-on-quarter.

Unless otherwise stated, all variations indicated below are on a like-for-like basis.

Revenues by business application

Video Applications (64% of revenues)Core businesses

In FY 2016-17 revenues from Video Applications were down 3.3% like-for-like to 908.0 million.

Revenues from Broadcast were down 2.2%, reflecting the negative impact of the rationalisation of capacity and the end of the TV d'Orange contract at the HOTBIRD position as well as lower revenues from FRANSAT off an exceptionally high base in FY 2015-16. Excluding these two fac

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