Société anonyme with a Board of Directors and a share capital of 230,544,995 euros Registered office: 70 rue Balard, F-75015 Paris 481 043 040 R.C.S. PARIS MANAGEMENT REPORT OF THE BOARD OF DIRECTORS ON THE CONSOLIDATED AND COMPANY FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 Note: The English version of this Management Report is a free translation of the French version and is provided solely for the benefit of English-speaking users. Eutelsat Communications 1 INDEX INTRODUCTION ............................................................................................................................................................................. 4 1 KEY HIGHLIGHTS IN THE FINANCIAL YEAR .......................................................................................................................... 5 1.1 Main Highlights of FY 2019-20 .......................................................................................................................................................................................................... 5 1.2 Revenues by business application .................................................................................................................................................................................................... 6 1.3 Financial performance ....................................................................................................................................................................................................................... 6 1.4 Alternative Performance indicators ................................................................................................................................................................................................... 6 2 MAIN MARKETS AND STRATEGY ............................................................................................................................................ 9 2.1 The Fixed Satellite Services industry ................................................................................................................................................................................................ 9 2.3 Group strategy ................................................................................................................................................................................................................................. 14 2.4 Extra-Financial Group strategy ....................................................................................................................................................................................................... 18 3 PRESENTATION OF THE SERVICES OFFERED BY THE GROUP AND REVIEW OF 2019-20 ACTIVITY.......................... 19 3.1 Group’s activities ............................................................................................................................................................................................................................. 19 3.2 Analysis of the activity during the year ............................................................................................................................................................................................ 23 4 A YOUNG FLEET WITH COVERAGE OF MOST OF THE GLOBE ........................................................................................ 26 4.1 Satellite fleet .................................................................................................................................................................................................................................... 26 4.2 Fleet performance ........................................................................................................................................................................................................................... 28 4.3 An active investment policy ............................................................................................................................................................................................................. 28 4.4 Launch services associated with satellites under procurement...................................................................................................................................................... 29 5 ACTIVITIES OF SUBSIDIARIES AND EQUITY INTERESTS .................................................................................................. 30 5.1 Group simplified organisational chart .............................................................................................................................................................................................. 30 5.2 Main subsidiaries and equity interests ............................................................................................................................................................................................ 31 6 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 – FINANCIAL INFORMATION ..... 33 6.1 Financial and accounting policy – IFRS standards ......................................................................................................................................................................... 33 6.2 Consolidated simplified balance sheet of Eutelsat Communications ............................................................................................................................................. 33 6.3 Simplified consolidated income statement of Eutelsat Communications ....................................................................................................................................... 35 6.4 Group liquidity and financial resources ........................................................................................................................................................................................... 37 6.5 Financial instruments ...................................................................................................................................................................................................................... 40 6.6 Litigation .......................................................................................................................................................................................................................................... 40 7 COMPANY FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 – FINANCIAL INFORMATION ............... 41 7.1 Accounting and financial principles ................................................................................................................................................................................................. 41 7.2 Company activities and key highlights during the year ................................................................................................................................................................... 41 7.3 Extracts from the Company's balance sheet and income statement at 30 June 2020 .................................................................................................................. 41 8 FINANCIAL OUTLOOK ............................................................................................................................................................. 43 9 CORPORATE GOVERNANCE ................................................................................................................................................. 44 9.1 Reference code used to establish a Corporate governance policy ................................................................................................................................................ 44 9.2 Absence of Control of the Company ............................................................................................................................................................................................... 44 9.3 Separation of the functions of Chairman and Chief Executive Officer ........................................................................................................................................... 44 9.4 Eutelsat Group senior management ............................................................................................................................................................................................... 44 9.5 Factors likely to have an impact in the event of a public offer ........................................................................................................................................................ 45 9.6 Organisation of the Board ............................................................................................................................................................................................................... 45 9.7 Changes in the composition of the Board of Directors ................................................................................................................................................................... 46 9.8 Composition and independence of the Board of Directors ............................................................................................................................................................. 46 9.9 Diversity policy and representation to the Board ...........................................................................................................................................................................