Société anonyme with a Board of Directors and a share capital of 226,972,338 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 2015 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. - 1 - MANAGEMENT REPORT OF THE BOARD OF DIRECTORS 30/07/15 INDEX INTRODUCTION ............................................................................................................................ 4 1 KEY HIGHLIGHTS IN THE FINANCIAL YEAR ....................................................................... 4 1.1 MAIN FIGURES ........................................................................................................................................................................... 4 1.2 OPERATIONAL HIGHLIGHTS ..................................................................................................................................................... 5 1.3 REVENUES BY BUSINESS APPLICATION ........................................................................................................................... 5 1.4 ACTIVE INVESTMENT POLICY ............................................................................................................................................ 6 1.5 FINANCIAL INDICATORS ...................................................................................................................................................... 6 2 MAIN MARKETS AND STRATEGY ......................................................................................... 8 GROUP’S ACTIVITIES ARE DESCRIBED IN THE SECTION 3 OF THIS DOCUMENT. ................................................................. 8 2.1 THE FIXED SATELLITE SERVICES INDUSTRY ................................................................................................................... 8 2.2 THE GROUP’S STRATEGY ...................................................................................................................................................... 15 3 PRESENTATION OF THE SERVICES OFFERED BY THE GROUP AND REVIEW OF 2013- 2014 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 ........................................... 27 4.1 THE EUTELSAT SATELLITE FLEET .................................................................................................................................... 27 4.2 FLEET PERFORMANCE ...................................................................................................................................................... 28 4.3 AN ACTIVE INVESTMENT POLICY ..................................................................................................................................... 29 4.4 LAUNCH SERVICES ASSOCIATED WITH SATELLITES UNDER PROCUREMENT ......................................................... 31 5 ACTIVITIES OF SUBSIDIARIES AND EQUITY INTERESTS ............................................... 32 5.1 GROUP SIMPLIFIED ORGANISATIONAL CHART .............................................................................................................. 32 5.2 MAIN SUBSIDIARIES AND EQUITY INTERESTS ............................................................................................................... 33 6 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 – FINANCIAL INFORMATION ........................................................................................................ 37 6.1 FINANCIAL AND ACCOUNTING POLICY – IFRS STANDARDS......................................................................................... 37 6.2 CONSOLIDATED SIMPLIFIED BALANCE SHEET OF EUTELSAT COMMUNICATIONS .................................................. 37 6.3 SIMPLIFIED CONSOLIDATED INCOME STATEMENT OF EUTELSAT COMMUNICATIONS ........................................... 38 6.4 GROUP LIQUIDITY AND FINANCIAL RESOURCES ........................................................................................................... 40 6.5 FINANCIAL INSTRUMENTS ................................................................................................................................................. 44 6.6 LITIGATION ........................................................................................................................................................................... 44 7 COMPANY FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 – FINANCIAL INFORMATION ............................................................................................................................ 45 7.1 ACCOUNTING AND FINANCIAL PRINCIPLES .................................................................................................................... 45 7.2 COMPANY ACTIVITIES AND KEY HIGHLIGHTS DURING THE YEAR .............................................................................. 45 7.3 EXTRACTS FROM THE COMPANY'S BALANCE SHEET AND INCOME STATEMENT AT 30 JUNE 2015 ...................... 45 8 OBJECTIVES OF THE GROUP .............................................................................................. 47 9 CORPORATE GOVERNANCE ................................................................................................ 48 - 2- MANAGEMENT REPORT OF THE BOARD OF DIRECTORS 30/07/15 9.1 ABSENCE OF CONTROL OF THE COMPANY ................................................................................................................... 48 9.2 SEPARATING THE FUNCTIONS OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER..................................................... 48 9.3 FACTORS LIKELY TO HAVE AN IMPACT IN THE EVENT OF A PUBLIC OFFER............................................................. 48 9.4 CHANGES IN THE COMPOSITION OF THE BOARD OF DIRECTORS ............................................................................. 48 9.5 MISSION OF THE BOARD OF DIRECTORS ....................................................................................................................... 48 9.6 COMMITTEES OF THE BOARD OF DIRECTORS............................................................................................................... 48 9.7 ATTENDANCE FEES PAID TO THE BOARD MEMBERS ................................................................................................... 48 9.8 LIST OF FUNCTIONS OR OFFICES HELD IN ANY FRENCH AND FOREIGN COMPANY BY THE MEMBERS OF THE BOARD OF DIRECTORS AS OF 30 JUNE 2015 ............................................................................................................................ 50 9.9 INFORMATION ON COMPENSATION PAID TO COMPANY DIRECTORS AND CORPORATE OFFICERS ..................... 55 9.10 INFORMATION ABOUT THE COMPANY’S SHARE CAPITAL ............................................................................................ 64 10 CORPORATE ENVIRONMENTAL, SOCIAL AND SOCIETAL RESPONSABILITY ................. 67 10.1 SOCIAL INFORMATION ....................................................................................................................................................... 71 10.2 ENVIRONMENTAL INFORMATION ........................................................................................................................................ 82 10.3 INFORMATION RELATIVE TO SOCIETAL COMMITMENTS IN FAVOUR OF SUSTAINABLE DEVELOPMENT ................ 90 10.4 METHODOLOGY AND SCOPE ............................................................................................................................................ 96 11 OTHER INFORMATION PRESENTED .................................................................................. 99 11.1 RESEARCH AND DEVELOPMENT ...................................................................................................................................... 99 11.2 TABLE OF RESULTS FOR THE LAST FIVE FINANCIAL PERIODS ................................................................................... 99 11.3 NON-DEDUCTIBLE CHARGES AND EXPENDITURES LAID DOWN IN ARTICLE 39.4 OF THE GENERAL TAX CODE FOR THE YEAR ENDED 30 JUNE 2015 ......................................................................................................................................... 99 11.4 AGREEMENTS COVERED BY ARTICLE L.225-38 OF THE CODE DE COMMERCE........................................................ 99 11.5 ACQUISITION OF SHARES BY THE COMPANY ................................................................................................................ 99 11.6 EMPLOYEE PARTICIPATION IN THE SHARE CAPITAL OF THE COMPANY ................................................................... 99 11.7 SHARES OWNED BY COMPANY MANAGEMENT (“MANDATAIRES SOCIAUX”) ............................................................ 99 11.8 DIVIDEND POLICY AND ALLOCATION OF RESULTS ....................................................................................................