MESSAGE FROM THE CEO

A new year of growth

Eutelsat Communications continued to report solid progress for its 2008-2009 financial year both in terms of revenues and net income, continuing a trend of uninterrupted growth since it became public. This year’s revenue increase across our full range of activities is all the more remarkable as the additional resources brought by new satellites were available only from the third and fourth quarters. Our strong performance also reflects the mobilisation of the teams working at Eutelsat and their commitment to ensuring customer satisfaction, to increasing our competitive edge and our capacity to innovate.

Markets showing favourable trends

Broadcasting, Data Services and broadband have continued their upward trend, confirming the integral role of satellites in a digital environment, both for feeding terrestrial networks and directly serving end users. Video Applications represent more than 70% of Group revenues. As a unique technology which enables broadcasters to cost-effectively maximise their audience, broadcasting is well-anchored as our principal market. And with contracts signed for periods exceeding 10 years, our video activity also offers us high visibility on revenues.

Solid perspectives for growth in our Second Continent

During the global economic downturn our Group benefits from the exceptional footprint of our satellite fleet which combines a leadership position in Europe and increasing presence in a vast region stretching from Russia to South Africa. These regions, in particular the Middle East and Africa are increasingly turning to satellites in order to supply digital services in areas not served or poorly served by terrestrial infrastructure.

First phase implemented of in-orbit expansion programme

For the period 2008-2012, Eutelsat is implementing one the most significant in-orbit investment programmes in the commercial satellite sector. Three satellites were launched in the 2008-2009 financial year and five further satellites will be launched by the end of 2011. This new capacity will enable us to increase our in-orbit resources by 30% and fully consolidate inter-satellite redundancy at our leading HOT BIRD™ video neighbourhood. It will also radically expand our Ka-band resources for mass-market consumer broadband services that will contribute to reducing the digital divide in Europe and the Mediterranean Basin.

Confidence and Ambition for the Future

We enter the 2009-2010 financial year with confidence and ambition, backed by strong structural assets. As an infrastructure operator, the long-term contracts that characterise our activity are protecting our Group during the economic downturn, while our role in delivering content to our clients’ networks and distributing services direct to their customers anchors us as a critical link in the broadcasting chain. For the future, we have clearly identified the multiple growth drivers for our business. The evolution of television formats and applications which include HDTV, digital cinema and 3D represent enormous growth potential across all regions served by our in-orbit resources. In addition, the objectives fixed by an increasing number of countries to ensure universal broadband access highlight the fundamental requirement for satellites to supplement terrestrial networks.

To conclude, I would like to welcome Michel de Rosen to Eutelsat. With his remarkable track record at the helm of international companies, Michel is highly qualified to join our executive team prior to assuming the position of Chief Executive Officer in November. I look forward to working in close collaboration with him and to combining our expertise to ensure Eutelsat’s long term growth.

Giuliano Berretta,
Chairman and CEO of Eutelsat Communications