Reference Document 2014-2015
Total Page:16
File Type:pdf, Size:1020Kb
2014-2015 Reference Document CONTENTS Letter from the Chairman and CEO, 04 RISK FACTORS 69 07 OTHER INFORMATION 163 Michel de Rosen 02 4.1 Operational risks 69 7.1 Legal information regarding the Group 163 4.2 Risks relating to changes in the 7.2 Other operational information 170 01 PRESENTATION satellite telecommunications market 75 7.3 Principal shareholders 172 OF EUTELSAT 4.3 Liquidity risks 78 7.4 Organisational chart 174 4.4 Regulatory risks 81 7.5 Legal and arbitration proceedings 178 COMMUNICATIONS 04 4.5 Market risks 84 1.1 Highlights of the financial year, outlook 7.6 Group property and equipment 178 and key figures 04 7.7 Research and development, patents 1.2 Group activities, main markets and 05 REGULATION 87 and licenses 178 competition 06 5.1 Regulations governing frequency 7.8 Important contracts 179 1.3 In-orbit operations 14 assignments and international 7.9 Related party transactions 179 1.4 Management 20 coordination 87 7.10 Significant changes in financial and 1.5 Social and societal responsibility 21 5.2 Regulations governing the operation commercial position 180 of earth stations, the deployment of 7.11 Relations and conflicts of interest networks, the operation of electronic within the administrative and 02 CORPORATE GOVERNANCE 23 communications networks and the management bodies 180 2.1 Composition of the Board of Directors 23 provision of electronic communications 7.12 Statutory Auditors 180 2.2 Key management personnel 30 services 90 7.13 Documents available to the public 181 2.3 Compensation and benefits 31 5.3 Regulations governing content 93 7.14 Responsible persons 181 2.4 Report of the Chairman of the Board of 5.4 Regulations governing space operations 94 Directors of Eutelsat Communications 5.5 U.S. export control requirements in application of Article L. 225-37 of the (regulations governing the activities APPENDICES 183 French Code de commerce 40 of the Group’s suppliers) 95 2.5 Application of the Afep-Medef 5.6 Other provisions applicable to the Group 96 GLOSSARY 195 Corporate Governance Code 48 06 FINANCIAL INFORMATION 99 03 SUSTAINABLE DEVELOPMENT 49 6.1 Review of Eutelsat Communications’ 3.1 Social information 51 financial position 99 3.2 Environmental information 58 6.2 Consolidated financial statements 3.3 Information relative to societal as of 30 June 2015 110 commitments in favour of sustainable 6.3 Annual financial statements as of development 63 30 June 2015 148 3.4 Methodology and scope 67 EUTELSAT COMMUNICATIONS: CREATING SPACE FOR YOUR COMMUNICATIONS Every day, Eutelsat demonstrates its expertise as a satellite company that contributes essential resources supporting the growth of digital communications. As a player at the heart of the video and broadband markets, the greatest advances are yet to come. Ongoing progress brings with it the prospect of an increased role for satellites in order to optimise the use of spectrum, a valuable and finite resource, and to transform the digital society into an environment of economic and social benefit for all. With these goals in mind, our Group is pursuing a development strategy based on investment and innovation, operational excellence and the creation of lasting value. 01 EUTELSAT COMMUNICATIONS | 2014 | 2015 Reference Document STRONG CAPACITY TO INNOVATE LETTER FROM THE CHAIRMAN AND CEO, MICHEL DE ROSEN THE YEAR 2014-2015 WILL at the 16° East (Sub-Saharan Africa and Central Europe), 36° GO DOWN IN THE HISTORY East (Russia and Sub-Saharan Africa) and 7° East (Middle- East and Africa) orbital positions. At 30 June 2015, almost OF EUTELSAT COMMUNICATIONS 5,800 television channels were broadcast by Eutelsat with an AS ONE OF DEVELOPMENT AND increase in the High Definition penetration rate to 12% versus GROWTH, OF HIGH PROFITABILITY 10.2% a year earlier. Data services resumed their growth path with a rise of 1.3% while Value-Added Services recorded AND TECHNOLOGICAL ADVANCES” an increase of 15% on a comparable basis. High throughput During the year, our revenues rose by 4% at comparable services via KA-SAT continued to rise, with 185,000 terminals exchange rates and perimeter, and by 9.5% on a reported activated at 30 June against 154,000 a year earlier. Elsewhere, basis. Thanks to the acquisition of Satmex, now completely Government Services grew by 2.6% thanks to new contracts on integrated under the name Eutelsat Americas, we have EUTELSAT 33B, EUTELSAT 36B and EUTELSAT 48D as well as acquired a global dimension and a solid footprint in the rapidly the contribution from Eutelsat Americas. growing markets of Latin America. The year was also marked by several commercial successes, as a result of which we can This growth was achieved while maintaining a high level count on an order book of 6.2 billion euros, which equates to of profitability. The EBITDA margin stood at 76.7% while the more than four years of revenues. net result came out at 355 million euros, a rise of 17%. At the same time cash-flow generation progressed strongly, to All our applications contributed to growth during the past year. amount to 70% of revenues before investments. We confirm Video, which represents 63% of total revenues, recorded a our commitment to generating value for our shareholders rise of 3.5% on a like-for-like basis, reflecting mainly the entry and propose to the Annual General Meeting the payment of a into service of the satellite Express-AT1 in May 2014, the good dividend of 1.09 euros per share in respect of financial year performance of Eutelsat Americas as well as higher revenues 2014-2015, an increase of 6% and a pay-out ratio of 70%. 2014 | 2015 Reference Document | EUTELSAT COMMUNICATIONS 02 LETTER FROM THE CHAIRMAN AND CEO, MICHEL DE ROSEN €1,476 M 39 revenues satellites for 2014-2015 operated (1) 1,000 274 M employees households (2) of 32 different nationalities We also pursued our innovation dynamic during the year, with in particular Latin America and Africa, where satellite is the the launch of our first full-electric satellite, and the development most effective solution to address growing demand in wide and procurement of “Eutelsat Quantum”, a revolutionary areas devoid of adequate terrestrial infrastructures. Finally, the concept which will enable us to address certain markets and first Eutelsat Quantum satellite is expected at the end of 2018. customers even more efficiently in the coming years. Developed within the framework of a public-private partnership with Eutelsat’s objective is of revenue growth of 2-3% on a the European Space Agency and Airbus Defense and Space, comparable basis for financial year 2015-16, accelerating to this satellite will be software defined and will become the 4-6% in 2016-17. This reflects amendments to the nominal market reference in terms of flexibility and configurability. deployment plan following launch failures experienced by Proton Elsewhere, Eutelsat continues to build on its other innovation and Falcon 9, which led to the delay into orbit of several of our levers, be it by promoting the ramp of Ultra High Definition satellites. Our objective of an EBITDA margin above 76.5% for alongside its broadcast customers, partnering with Sigfox in the each financial year to June 2017 is maintained. At the same time ‘Internet of Things’, bringing in-flight mobility we will pursue our investment program to aircraft or backing Starburst, the start-up focused on zones and applications accelerator in the space segment. This is the offering the highest potential, while demonstration that Eutelsat, true to its values, MORE THAN maintaining a sound financial structure continues to innovate and to invent the Space of EVER, EUTELSAT’S and continuing to propose a dividend of tomorrow, in collaboration with all the players between 65% and 75% of the net result. in its ecosystem and beyond, at the service AMBITION IS TO BE AT More than ever, Eutelsat’s ambition is of our customers and for the benefit of our THE LEADING-EDGE to be at the leading-edge of innovation shareholders. OF INNOVATION IN AN in an ever-evolving digital world, and Our deployment plan enables us to look to the EVER-EVOLVING DIGITAL to stay a step ahead thanks to its future with confidence. It will see the entry into WORLD” experience, the excellence of its teams, service of seven new satellites by the end of and its commitment to its customers. calendar year 2017. Two of these, EUTELSAT The arrival of new players from other 115 WEST B, covering the Americas, and EUTELSAT 8 West sectors will multiply opportunities and stimulate markets B bringing additional resources to the Middle-East, have just in a world where connectivity is becoming as much a part of entered operational service. The other five will be launched everyday life as running water and electricity. between now and 30 June 2017. This new capacity will be Michel de Rosen focused on the geographic markets with the greatest potential, Chairman and Chief Executive Officer (1) At the date of the present document. (2) In direct and indirect audience. 03 EUTELSAT COMMUNICATIONS | 2014 | 2015 Reference Document 01 PRESENTATION OF EUTELSAT COMMUNICATIONS 1.1 Highlights of the financial year, outlook and key figures HIGHLIGHTS FY 2014-2015 OOThe successful launch, in March 2015, of Since 30 June 2015 EUTELSAT 115 West B, the first all-electric Commercial successes contributing to an order Launch of the Eutelsat 8 West B satellite, which OO commercial satellite, bringing additional OO book of 6.2 billion euros at 30 June 2015, with add resources serving Video in Middle-East and capacity over the Americas. notably important contract renewals at the HOT North Africa (MENA).