Eutelsat Communications : Annual financial statements as of 30 June 2022

Eutelsat Communications

1. public limited company (French "société anonyme") with a capital of 230,544,995 euros Registered office: 32, boulevard Gallieni, 92130 Issy-les-Moulineaux
   481,043,040 R.C.S. Paris

ANNUAL FINANCIAL STATEMENTS AS OF 30 JUNE 2022

Eutelsat Communications • 1

INCOME STATEMENT

(in millions of euros)	Note	30 June 2021		30 June 2022
Revenue		2.7		2.6
Other operating income		0.2		2.2
Total operating income	3.1.	2.9		4.8
Staff costs		(3.0)		(3.4)
Other operating expenses		(9.5)		(12.9)
Total operating expenses	3.2.	(12.5)		(16.3)
Operating income		(9.6)		(11.5)
Financial income		1.6		195.7
Financial expenses		(5.9)		(4.5)
Financial income	3.3.	(4.3)		191.3
Current income before taxes		(13.9)		179.7
Exceptional income	3.4.	0.3		0.4
Company tax	3.5.	4.3		4.8
INCOME FOR THE YEAR	3.5.2.	(9.4)		185.0

Eutelsat Communications • 2

BALANCE SHEET

							30 June 2021				30 June 2022
	(in millions of euros)		Note				Net Amounts				Net Amounts
	Assets
	Financial assets		4.1.			2,947.7			2,948.4
	Equity investments				2,943.4		2,943.4
	Other financial assets				4.3		5.0
	Fixed assets					93.4			56.3
	Other receivables	4.2.		18.2		12.9
	Group current accounts	4.2.		69.1		39.9
	Marketable securities	4.3.		1.0		1.0
	Cash	4.3.		5.1		2.4
	Prepaid expenses				0.1		0.1
	Other assets					0.1			1.8
	Debt issuance costs	4.4.		0.1		1.8
	TOTAL ASSETS					3,041.1			3,006.4
	(in millions of euros)		Note			30 June 2021			30 June 2022
	Liabilities
	Share capital				230.5			230.5
	Issue, merger and acquisition premiums				1,217.5			1,217.5
	Other reserves				0.2			0.2
	Statutory reserves				23.1			23.1
	Retained earnings				1,154.9			931.3
	Income for the year				(9.4)			185.0
	Tax related provisions				0.5			0.5
	Equity Capital		4.5.			2,617.4			2,588.1
	Provisions					0.1			0.1
	Financial debts	4.6.		400.1			400.3
	Other liabilities	4.7.		23.7			17.9
	Financial, operating and other liabilities					423.7			418.2
	TOTAL LIABILITIES					3,041.1			3,006.4

Eutelsat Communications • 3

NOTES TO THE FINANCIAL STATEMENTS

The information contained in these notes is an integral part of the annual financial statements. It is expressed in millions of euros, unless otherwise stated.

The Company's fiscal year runs for twelve months from 1 July to 30 June.

NOTE 1. COMPANY'S ACTIVITY AND KEY EVENTS OF THE FINANCIAL YEAR

1.1. COMPANY'S ACTIVITY

Eutelsat Communications S.A. ("the Company" or "Eutelsat") is the parent company of the Eutelsat Communications Group ("the Group"). Its purpose is to hold shares and provide services for its equity interests.

The Company, whose registered office is located at 32 boulevard Gallieni 92130 Issy-les-Moulineaux, is registered with the Register of Trade and Companies under number 481,043,040.

1.2. KEY EVENTS OF THE FINANCIAL YEAR

None

NOTE 2. ACCOUNTING PRINCIPLES

2.1. BASIS OF PRESENTATION OF FINANCIAL INFORMATION

The annual financial statements are prepared in accordance with the provisions of Regulation 2018-01 of the French Accounting Standards Authority (ANC) as well as any subsequent opinions and recommendations of the French Accounting Standards Authority. The Company's reporting currency is the euro.

The following conventions have been applied in compliance with the principle of prudence and in accordance with the following basic rules:

• going concern,
• separation of financial periods,
• consistent accounting methods from one financial year to the next,

and in accordance with the general guidelines for preparing and presenting the annual financial statements.

The basic method used for evaluating the items recorded in the accounts is the historical cost method.

No changes were made to the accounting methods during the financial period.

2.2. SIGNIFICANT JUDGEMENTS AND ESTIMATES

The preparation of annual financial statements requires the use of judgements and estimates likely to affect some of the items in the income statement, the balance sheet and the accompanying notes. The Management constantly updates these estimates and assessments by using past experience and other relevant factors related to the economic environment. The outcome of the transactions underlying these estimates and assumptions could result in significant adjustments to the amounts that are recognised in a subsequent financial period because of the uncertainty that surrounds them.

In preparing the financial statements as of 30 June 2022, the Management made judgements, particularly with regard to the value of equity investments and share-based compensation.

Eutelsat Communications • 4

2.3. FINANCIAL ASSETS

Financial assets consist of equity securities and other financial assets including treasury shares acquired under a liquidity contract.

Equity investments are recorded in the balance sheet at their acquisition value, including acquisition costs. They are subject to impairment when the acquisition value is greater than the value in use, assessed on the basis of various criteria such as the market value, expected growth and profitability and shareholders' equity.

Other financial assets are recorded in the balance sheet at their acquisition value excluding acquisition costs. They are subject to impairment when their acquisition cost is greater than their net asset value.

2.4. RECEIVABLES AND PAYABLES

Receivables and payables are evaluated at their face value.

2.5. CASH AND MARKETABLE SECURITIES

This item consists of treasury shares acquired under share buyback programmes, mutual fund investments, cash at bank and deposit warrants with original maturities of three months or less.

Treasury shares repurchased not allocated to share plans are impaired when the share price is lower than the purchase price.

Treasury shares repurchased for the purpose of serving share incentive plans are recorded at their initial cost until they are delivered to their recipients or reclassified if not attributed. They are not subject to any impairment.

2.6. DEBT ISSUANCE COSTS

Debt issuance costs are amortised over the duration of the loan.

2.7. SHAREHOLDERS' EQUITY

External costs directly related to capital increases or reductions are charged against the issue and acquisition premium, net of tax when tax savings are generated.

2.8. PROVISIONS

A provision is recorded when there is a company obligation towards an unrelated party that is probable or certain to lead to an outflow of resources to the benefit of such party, with nothing at least equivalent expected of the unrelated party in return and for which the term or the amount is not precisely determined.

NOTE 3. NOTE ON THE INCOME STATEMENT

3.1. REVENUE

The Company's revenue includes the re-invoicing of services provided, for its holdings, particularly with regard to strategy development, implementation of the industrial and commercial policy, and financial and corporate communications.

Revenue, which is generated exclusively in France, amounted to 2.61 million euros as of 30 June 2022 and 2.73 million euros as of 30 June 2021.

Eutelsat Communications • 5