Bond Eutelsat Group 1.125% ( FR0013184702 ) in EUR

Issuer Eutelsat Group
Market price 100 %  ▼ 
Country  France
ISIN code  FR0013184702 ( in EUR )
Interest rate 1.125% per year ( payment 1 time a year)
Maturity 22/06/2021 - Bond has expired



Prospectus brochure of the bond Eutelsat SA FR0013184702 in EUR 1.125%, expired


Minimal amount 100 000 EUR
Total amount 500 000 000 EUR
Detailed description Eutelsat Communications is a leading satellite operator providing communication services via its fleet of satellites to broadcasters, telecommunication operators, governments, and corporate clients worldwide.

The Bond issued by Eutelsat Group ( France ) , in EUR, with the ISIN code FR0013184702, pays a coupon of 1.125% per year.
The coupons are paid 1 time per year and the Bond maturity is 22/06/2021











EUTELSAT S.A.
500,000,000 1.125 PER CENT BONDS DUE 23 June 2021
ISSUE PRICE: 99.894 PER CENT

The 500,000,000 aggregate principal amount 1.125 per cent. bonds due 23 June 2021 (the Bonds, and each a Bond) of Eutelsat S.A. (the Issuer) will be issued
outside the Republic of France on 23 June 2016 (the Bond Issue).
Each Bond will b ear int erest on its principal amount at a fix ed rat e of 1.125 per c ent. per annum from (and including) 23 June 2016 (the Issue Dat e) to (but
excluding) 23 June 2021, payable in Euro annually in ar rears on 23 June of each year and commencing on 23 June 2017, as further described in "Terms and
Conditions of the Bonds ­ Interest".
Unless previously redeem ed or purchased and cancelled in accordance with th eir t er ms and conditions, the Bonds will be r edeemed at their pr incipal amount on 23
June 2021 (the Maturity Date).
The Issuer may, at its option, and in certain circu mstances shall, redeem all (but not part) of the Bonds at par plus any accrued and unpaid interest upon the
occurrence of certain tax changes as further described in "Terms and Conditions of the Bonds ­ Redemption and Purchase ­ Redemption for tax reasons".

The Bonds may also be redeemed (i) at the option of the Issuer, in whole or in part, at any time, prior to the Maturity Date, as further described in "Ter ms and
Conditions of the Bonds -- Red emption and Purchase -- Make Whole R edemption by th e Issuer", (ii) at any tim e pr ior to the Maturity Date, in whole (but not in
part), at par plus accrued interest , if 80 per c ent. of the initial aggregate principal amount of the Bonds have been redeem ed or purchased and cancelled, as
further described in "Terms and Conditions -- Red emption and Purchase -- Clean-Up Call Option" of the Terms and Conditions of the Bonds, and (iii) at th e option
of the Issuer at any time or from tim e to tim e, during a period of three months preceding the Maturity Dat e, in whole or in part, at par plus any accrued and
unpaid interest accrued to, but excluding, the date fix ed for redemption as further described in "Terms and Conditions of the Bonds ­ Red emption and Purchase ­
Residual Maturity Call Option".
The Bondholders may, under cer tain conditions, request the Issuer to r edeem al l or part of the Bonds following the occurrence of certain change of control events
triggering a downgrading of the Bonds as further described in " Ter ms and Conditions of the Bonds -- Redemption and Purchase ­ R edemption follo wing a Change
of Control".
The obligations of the Issuer in respect of principal and interest payable under the Bonds constitute direct, unconditional, unsecured and unsubordinated
obligations of the Issuer and shall at al l ti mes rank pari passu among themsel ves and pari passu with all oth er pr esent or future dir ect, unconditional, unsecured
and unsubordinated obligations of the Issuer, as further described in "Terms and Conditions of the Bonds ­ Status".
Payments in respect of th e Bonds will b e made wi thout deduction for, or on account of, French taxes to th e ext ent set out in " Ter ms and Conditions of the Bonds --
Taxation -- Additional Amounts".
Application has been made to the Commission de Surveillance du Secteur Financier (the CSSF) in its capacity as competent authority under the Luxembourg Act
dated 10 July 2005 on prospectuses for securities, as amended by the Luxembourg Act dated 3 Jul y 2012 (the Prospectus Act) to approve this document (th e
Prospectus) as a prospectus for the purposes of Art icle 5 .3 of Directi ve 2003/71/EC of the Europ ean Parliament and the Council dated 4 November 2003, as
amended, on prospectuses to b e published when securiti es ar e offer ed to the public or admitt ed to trading (th e Prosp ectus Direct ive). Application has also been
made to the Lux embourg Stock Exchange for the Bonds to be listed on th e Official List and admitt ed to trading on the regulat ed mar ket of the Luxembourg Stock
Exchange as of the Issue Date. The Luxembourg regulated mar ket of the Luxembourg Stock Exchange is a regulated market for the purposes of the Investm ent
Servic es Directive 2004/39/EC on financial instruments markets, as amended. Pursuant to Article 7(7) of the Luxembourg Prospectus Act, by approving this
Prospectus, the CSSF gives no undertakings as to the economic and financial soundness of the Bond Issue or the quality or solvency of the Issuer.
The Bonds wil l be issued in dematerialised form in a denomination of 100,000 and will at all ti mes be evid enced by book-entri es in compliance with Articl e L. 211-
3 et seq . and R. 211-1 et seq. of the Fr ench Code monétair e et financier . No physical docum ents of titl e will be issued in r espect of th e Bonds. As from the dat e of
issue of the Bonds, the Bonds will be regist ered in the books of Euroclear France, a subsidiary of Euroclear Bank S.A./N.V. (Eu roclea r Franc e) (acting as central
depositary) which shall credit the accounts of Account Holders (as defined in "Terms and Conditions of the Bonds ­ Form , Denomination and Title") including
Euroclear Bank S.A./N. V. (Euroclear) and the depositary bank for Clearstream Banking, société anonyme (Clearstream Luxembourg).
The Bonds hav e b een assigned a r ating of BBB b y St andard & Poor's Credit M ar ket Servic es Europ e Limi ted (S&P) and B aa3 by Moody 's Inv estors Servic e Ltd
(Moody's). S&P and Moody 's are est ablished in the Eu ropean Union and ar e r egist er ed und er R egulation (EC) No. 1060/2009 on credi t r ating agencies (as
amended) (the CR A Regulation) . As such S &P and Moody's ar e included in the list of r egist er ed cr edit r ating agencies publ ished b y th e Europ ean S ecuriti es and
Mark ets Autho rity (ESMA) on its website (https://www.esma.europa.eu /super vision/cr edit-r atin g-agenci es/risk) in accordanc e with the CRA Regulation. A ratin g
is not a r ecommend ation to buy , sell or hold th e Bonds. An y cr edit r ating is subject to revision, suspension or withdr awal at an y time by the relevant ratin g
organisation. Any revision, suspension, reduction or withdrawal of the rating may adversely affect the market price of the Bonds.
This document is not for distribution, dir ectly or indirec tly, in or into the United States. This document is n either an offer of securiti es for sale nor th e solicitation of
an offer to purchase securities in the Uni ted S tates or any oth er jur isdiction where such offer may be restrict ed. Securit ies may not be offered or sold in the Unit ed
States absent registration with the Securit ies and Exchange Commission under the U.S. Securities Act of 1933, as amended (the U.S. Secu rities Act) , or an
applicable exemption from r egistration. The Bonds have not b een and will not be regist ered under the U.S. Secur ities Act and may not b e offer ed, sold or deli ver ed
within th e Unit ed States o r to, o r for th e account or benefi t of, U .S. persons (as defined in R egulation S under the U .S. Secur ities Act (R egulat ion S)). Copies of this
document are not being, and should not be, distributed in or sent into the United States.
An in vest ment in th e Bonds in volves certain risks. Poten tial investors should r eview a ll th e info rmat ion contain ed in th is document and, in part icular, the
information set out in the section entitled "Risk Factors" of this Prospectus prior to investing in the Bonds.

Global Coordinator
Société Générale Corporate & Investment Banking

Joint Bookrunners
Société Générale Corporate & Investment Banking
HSBC
Banca IMI
SMBC Nikko
Co-Lead Manager
Helaba

Date: 21 June 2016





TABLE OF CONTENTS
Page
RESPONSIBILITY STATEMENT .................................................................................................. 3
IMPORTANT INFORMATION FOR INVESTORS ............................................................................ 4
RISK FACTORS ...................................................................................................................... 8
SELECTED FINANCIAL INFORMATION OF EUTELSAT S.A............................................................. 33
DOCUMENTS INCORPORATED BY REFERENCE ......................................................................... 37
TERMS AND CONDITIONS OF THE BONDS ............................................................................... 39
USE OF PROCEEDS .............................................................................................................. 53
INFORMATION ABOUT THE ISSUER........................................................................................ 54
BUSINESS OVERVIEW .......................................................................................................... 62
RECENT DEVELOPMENTS ..................................................................................................... 89
TAXATION.......................................................................................................................... 89
SUBSCRIPTION AND SALE ....................................................................................................102
GENERAL INFORMATION.....................................................................................................105
GLOSSARY OF TERMS .........................................................................................................108


2



RESPONSIBILITY STATEMENT
As of the date of this Prospectus, the Issuer declares that, having taken all reasonable care to ensure
that such is the case, the information contained or incorporated by reference in this Prospectus is, to
the best of its knowledge, in accordance with the facts and contains no omission likely to affect the
import of such information. The Issuer accepts responsibility for the information contained in this
Prospectus accordingly.
3



IMPORTANT INFORMATION FOR INVESTORS
References herein to the Issuer are to Eutelsat S.A. This Prospectus has been prepared for the
purpose of giving information with regard to (i) the Issuer, (ii) the Issuer and its subsidiaries (direct or
indirect) and affiliates taken as a whole (the Group) but excluding its controlling entities, Eutelsat
Communications S.A. and Eutelsat Communications Finance S.A.S., and (iii) the Bonds, which is
necessary to enable investors to make an informed assessment of the assets and liabilities, financial
position and profit and losses of the Issuer. No information contained in this Prospectus may be used
for any purpose other than investing in the Bonds.
Certain information contained in this Prospectus has been extracted from sources which the Issuer
believes to be reliable, specified in the sections where such information appears. The Issuer confirms
that such information has been accurately reproduced and that, so far as it is aware and is able to
ascertain from information published by the above sources, no facts have been omitted which would
render the information in this Prospectus inaccurate or misleading in any material respect.
The Managers (as defined under the section entitled "Subscription and Sale") have not verified the
information contained in this Prospectus. The Managers do not make any representation, warranty
or undertaking, express or implied, and no responsibility or liability is accepted by the Managers or
any of their respective affiliates, as to the accuracy or completeness of the information contained, or
incorporated by reference, in this Prospectus, or any other information provided by the Issuer in
connection with the issue of the Bonds.
Any decision to purchase any Bonds should be based on this Prospectus. No person is or has been
authorised by the Issuer or the Managers or any of their affiliates to give any information or to make
any representation other than those contained in this Prospectus in connection with the issue or
sale of the Bonds and, if given or made, such information or representation must not be relied upon
as having been authorised by the Issuer or the Managers or any of their affiliates. Neither the
delivery of this Prospectus nor the offering, sale or delivery of any Bonds shall in any circumstances
imply that the information contained herein is correct at any time subsequent to the date hereof,
nor does the Issuer undertake to update this Prospectus except as may be required by any
applicable law or regulations. The Managers do not undertake to review the financial condition or
affairs of the Issuer during the life of the Bonds or to advise any investor in the Bonds of any
information coming to their attention.
Neither this Prospectus nor any other information provided in connection with the issue of the
Bonds (a) is intended to provide the basis of any credit or other evaluation or (b) should be
considered as a recommendation by the Issuer or the Managers that any recipient of this Prospectus
or any recipient of any other information supplied in connection with the issue of the Bonds should
purchase any Bonds. Neither this Prospectus nor any other information supplied in connection with
the issue and sale of the Bonds constitutes an offer or invitation by or on behalf of the Issuer or the
Managers to any person to subscribe for or to purchase any Bonds.
Prospective investors contemplating purchasing any Bonds should rely on their own independent
investigation and appraisal of (a) the Issuer, the Group, their respective business, financial condition
and affairs and (b) the terms of the offering, including the merits and risks involved. Investors should
review, inter alia, the documents incorporated by reference into this Prospectus when deciding
whether or not to subscribe for or purchase the Bonds. The contents of this Prospectus are not to be
construed as legal, business, financial or tax advice. Each prospective investor should consult its own
advisers as to legal, tax, financial, credit and related aspects of an investment in the Bonds. Potential
investors should, in particular, read carefully the section entitled "Risk Factors" set out below before
making a decision to invest in the Bonds.
4



This Prospectus does not constitute an offer of, or an invitation or solicitation by or on behalf of the
Issuer or the Managers to subscribe or purchase, any of the Bonds in any jurisdiction where, or to
any person to whom, it is unlawful to make an offer or solicitation. The distribution of this
Prospectus and the offering and sale of the Bonds in certain jurisdictions, including the United
States, France, Luxembourg and other Member States of the European Economic Area, may be
restricted by law. The Issuer and the Managers do not represent that this Prospectus may be lawfully
distributed, or that any Bonds may be lawfully offered, in compliance with any applicable
registration or other requirements in any such jurisdiction, or pursuant to an exemption available
thereunder, or assume any responsibility for facilitating any such distribution or offering. In
particular, no action has been taken by the Issuer or the Managers which would permit a public
offering of any Bonds, and neither this Prospectus nor any advertisement or other offering material
may be distributed or published in any jurisdiction, except under circumstances that will result in
compliance with any applicable laws and regulations. Persons into whose possession this Prospectus
or any Bonds may come must inform themselves about, and observe any, such restrictions on the
distribution of this Prospectus and the offering and sale of Bonds. In particular, there are restrictions
on the distribution of the Prospectus and the offer or sale of Bonds in the United States, the United
Kingdom and France (see "Subscription and Sale").
The Bonds have not been and will not be registered under the U.S. Securities Act and may not be
offered, sold or delivered within the United States or to, or for the account or benefit of, U.S.
persons (as defined in Regulation S under the U.S. Securities Act (Regulation S)).
The information in the sections concerning clearing systems has been obtained from sources that
the Issuer believes to be reliable. The Issuer accepts no responsibility for the accuracy of such
information, other than for the correct extraction and reproduction of such information. If investors
want to use the facilities of Euroclear France, Clearstream Luxembourg or Euroclear, they should
confirm the continued applicability of the rules, regulations and procedures of Euroclear France,
Clearstream Luxembourg or Euroclear, as applicable. The Issuer will not be responsible or liable for
any aspect of the records held through the facilities of Clearstream or Euroclear or for maintaining,
supervising or reviewing any such records.
An application has been made to admit the Bonds to listing on the Official List of the Luxembourg
Stock Exchange and to trading on the Luxembourg regulated market but we cannot guarantee that
our application to listing and trading of the Bonds will be approved as at the Issue Date or any time
after the Issue Date.
In this Prospectus, unless otherwise specified or the context requires, references to "Euro", "EUR"
and "" are to the single currency of the participating Member States of the European Economic and
Monetary Union, while references to "U.S. Dollar", "USD" and "$" are to the single currency of the
United States of America.
In connection with the issue of the Bonds, Société Générale (the Stabilising Manager) (or any
person acting on behalf of the Stabilising Manager) may over-allot Bonds or effect transactions
with a view to supporting the market price of the Bonds at a level higher than that which might
otherwise prevail. However, there is no assurance that the Stabilising Manager (or any person
acting on behalf of the Stabilising Manager) will undertake stabilisation action. Any stabilisation
action may begin on or after the date on which adequate public disclosure of the terms of the
offer of the Bonds is made and, if begun, may be ended at any time, but must end no later than
the earlier of 30 days after the issue date of the Bonds and 60 days after the date of the allotment
of the Bonds. Any stabilisation action or over-allotment must be conducted by the Stabilising
Manager (or any person acting on behalf of the Stabilising Manager) in accordance with all
applicable laws and rules.
5



The market data and other statistical information used throughout this Prospectus are based on
estimates which the Issuer has made in good faith, internal surveys reviewed by the Issuer, as well as
analysis prepared, based on or derived from independent industry publications, government
publications, reports by market research firms or other published independent sources. These
publications and surveys generally state that they contain information from sources believed to be
reliable but do not guarantee the accuracy and completeness of such information. While the Issuer
believes these sources are reliable and such information was accurately reproduced in this
Prospectus, the Issuer has not verified the research by any independent source.
The Issuer cannot ensure that any of the assumptions underlying these statements are accurate, or
correctly reflect the Issuer's position in the industry and none of the internal surveys or information
of the Issuer has been verified by any independent sources. Neither the Managers nor the Issuer
make any representation or warranty as to the accuracy or completeness of this information. All of
the information set forth in this Prospectus relating to the operations, financial results or market
share of our competitors has been obtained from information made available to the public in such
companies' publicly available reports and independent research, as well as from the Issuer's
experience, internal studies, estimates and investigation of market conditions. Neither the Managers
nor the Issuer have independently verified this information and the Managers and the Issuer cannot
guarantee its accuracy.
Potential investors must rely upon their own examination of the Issuer and the financial statements
presented in this Prospectus. Certain financial information contained or incorporated by reference
in this Prospectus has been rounded and, as a result, the figures shown as totals may vary slightly
from the exact arithmetic aggregation of the figures that precede them.
Certain statements contained herein are forward-looking statements including, but not limited to,
statements that are predictions of or indicate future events, trends, plans or objectives, based on
certain assumptions, and include any statement that does not directly relate to a historical fact or
current fact. The Issuer may also make forward-looking statements in its audited annual financial
statements, in its interim financial statements, in its prospectuses, in press releases and other
written materials and in oral statements made by its officers, directors or employees to third parties.
Forward-looking statements are typically identified by words or phrases such as, without limitation,
"anticipate", "assume", "believe", "continue", "estimate", "expect", "foresee", "intend", "may
increase" and "may fluctuate" and similar expressions or by future or conditional verbs such as,
without limitation, "may", "will", "should", "would" and "could." Although the Issuer believes that
expectations reflected in its forward-looking statements are reasonable as of the date of this
Prospectus, there can be no assurance that such expectations will prove to have been correct.
Undue reliance should not be placed on such statements, because, by their nature, they are subject
to known and unknown risks, uncertainties, and other factors. These factors include those set forth
in section entitled "Risk Factors" below.
The risks described in this Prospectus are not the only risks an investor should consider. New risk
factors emerge from time to time and it is not possible for the Issuer to predict all such risk factors
on its business or the extent to which any factor, or combination of factors, may cause actual results
to differ materially from those contained in any forward-looking statements. The Issuer undertakes
no obligation to update the forward-looking statements contained in this Prospectus or any other
forward-looking statement it may make.


6



INFORMATION SOURCED FROM THIRD PARTIES
Certain information contained in this Prospectus has been sourced from third party sources. While
the Issuer believes that the information sourced from third parties, which is reproduced in this
Prospectus, is reliable, the Issuer has not independently verified such information.


7



RISK FACTORS
The following is a summary of certain aspects of the offering of the Bonds of which prospective
investors should be aware. Prior to making an investment decision, prospective investors should
consider carefully all of the information set out in this Prospectus, including in particular the risk
factors detailed below. Prospective investors should make their own independent evaluations of all
investment considerations and should also read the detailed information set out elsewhere in this
Prospectus.
Terms defined in the section entitled "Terms and Conditions of the Bonds" shall have the same
meaning where used below.
The Issuer believes that the factors described below represent the principal risks associated with
investing in the Bonds, but the inability of the Issuer to pay interest, principal or other amounts on or
in connection with the Bonds may occur for other reasons which may not be considered significant
risks by the Issuer based on information currently available to it or which it may not currently be able
to anticipate. Additional risks or uncertainties not known to the Issuer as at the date of this
Prospectus, or that the Issuer believes are immaterial, may also impact on the business operations of
the Issuer. Prospective investors should also read the detailed information set out elsewhere in this
Prospectus and reach their own views prior to making any investment decision.
1
RISKS RELATING TO THE GROUP
The risks described below are those identified by the Issuer that could have an adverse effect on the
Group's situation. Additional risks, which are either not currently known or not considered likely to
materialise, as at the date of this Prospectus may also exist, such additional risks could materially
and adversely affect the Group's business, financial condition or the results of its operations. The
occurrence of one or more of these risks could also have an adverse effect on the Group's situation.
Risks inherent to business
The Group might not be able to meet its launch or activation timetables for its new satellites.
The Group plans to launch four new satellites (EUTELSAT 172B, EUTELSAT 7C, EUTELSAT QUANTUM
and African Broadband Satellite) before the end of calendar year 2019. These satellites are aimed at
ensuring continuity of service provided by some existing satellites, increasing resources in certain
orbital positions, consolidating the Group's service offering and stepping up the level of security at
certain orbital positions.
The Group may not be able to keep to the scheduled timetable for launching these new satellites.
A significant delay in satellite construction, or a delay or failure in the launch of one of these
satellites, would impair the Group's ability to generate new sales opportunities, implement its
development strategy, meet its contractual service continuity commitments to customers and end-
users, or meet its growth objectives. Any significant delay or failure in the launch of any of its
satellites could therefore have a significant negative impact on the Group's business, financial
situation, results and objectives.
The Group relies on a small number of launch service providers to launch its satellites. Access to
space for satellite deployment according to the Group's timetable is a crucial part of its satellite
deployment plan and growth strategy.
The Group considers that the small number of launch service providers with the technical ability to
launch satellites already ordered, as well as future satellites that have not yet been ordered,
8



constitutes a constraint on its operating flexibility and could increase the cost of its launch
programme within the projected timeframe.
Should one of the launch service providers prove incapable of meeting its contractual commitments
towards the Group within the specified deadline due to operating (e.g. following a failed launch) or
financial difficulties, the Group could re-allocate the relevant satellite to another launch service
provider or even, in some cases, sign new launch service contracts that could prove more costly than
the current contracts. Such events could have a significant detrimental impact on the Group's
business (e.g. delayed satellite activation) and financial position.
In order to meet, as much as possible, the original timetable for its deployment plan and thereby
reduce costs, the Group has diversified its launch service providers. The Group currently intends to
use different launch service providers such as Arianespace, International Launch Services, and
SpaceX.
The Group's satellite deployment plan is dependent on several major suppliers.
The number of satellite manufacturers capable of designing and building satellites in compliance
with the technical specifications and quality required by the Group is limited. The limited number of
suppliers could reduce the Group's bargaining power and increase the cost of implementing its
programme within the scheduled timeframe.
As of 31 December 2015, future payments on satellite construction, launch and financing contracts
amounted to 1,365 million. These future payments are spread over 16 years. The Group has also
made commitments with other suppliers for the provision of services and acquisitions of fixed assets
relating to the monitoring and control of satellites.
The satellites under procurement at the date of this Prospectus were procured from the following
manufacturers: Airbus Defence and Space, Thales Alenia Space, Space Systems Loral Inc. and Boeing.
The Group considers that it is not dependent on suppliers other than satellite manufacturers and
launch operators.
The limited number of suppliers in these areas could therefore have a significant negative impact on
the Group's business, financial situation and results.
The Group is exposed to the risk that its suppliers may experience operational or financial
difficulties.
In the event of a Group supplier being unable to fulfil its contractual commitments towards the
Group within the agreed timeframe, the Group would be forced to reallocate the satellites
concerned to other service providers and, in some cases, enter into new launch service contracts
which might prove more costly. Such events could have a significant negative impact on the Group's
business, financial situation and results.
The actual lives of the Group's satellites may be shorter than their estimated design lives.
Satellites are depreciated on a straight-line basis over their period of operation in stable orbit, which
is between 7 to 22 years. In the event of changes in the expected fuel life of the satellite, in-orbit
anomalites or other technical factors, its actual life may be shorter than its design life. Depreciation
may be accelerated and the lifetime revenue generated reduced, leading to a reduction in the return
on investment for the asset.
9



The satellites operated by the Group may experience failures or malfunctions in orbit.
Satellites are sensitive to the external environment. Once they are in orbit, malfunctions may occur
for various reasons and reduce their remaining operating life and/or permanently or intermittently
reduce their transmission capacity (See "Business Overview ­ Breakdowns and losses of equipment"
below), which could have a considerable adverse impact on the Group's business, financial situation
and results.
In the event of a satellite failure or in-orbit malfunction, the Group may not be able to guarantee
continuity of service for all its clients by using redundant equipment or back-up capacity on another
satellite, particularly if there is a lack of available satellite capacity suitable for the needs of the
customers concerned. Similarly, the Group may not be able to guarantee continuity of service for all
customers at that orbital position by successfully launching a replacement satellite or one capable of
carrying out the tasks of the defective satellite.
In the event of a satellite failure or in-orbit malfunction, the Group may have difficulty in retaining its
customers (who could terminate or renegotiate their capacity allotment agreements) and might not
be able to enter into new capacity allotment agreements on satisfactory terms.
Until 30 June 2015, the Group had an In-Orbit Life Insurance programme covering its satellites on
the basis of their net book value. From 1 July 2015, the Group adapted its policy to take into account
not only the net book value of the satellites but also the revenues generated by those with the
highest contribution. The policies cover the partial losses and/or deemed total losses of the insured
satellites under certain conditions.
In spite of total or partial insurance coverage, a failure or loss of one or more of the Group's
satellites could have a significant negative impact on its business, financial situation and results.
Furthermore, this insurance programme does not protect the Group against losses such as
opportunity cost, interruption of business, delayed activations, image losses or, to a certain extent,
losses of revenues.
Finally, insurance companies could challenge the causes of the failure or malfunction or the amount
of the indemnity. The Group cannot guarantee that, in the event of a proven failure or malfunction
on any of its satellites covered under insurance programmes insurers would compensate the Group
within a reasonable timeframe or for the amount claimed by the Group.
A lack of compensation, late compensation or partial compensation of losses sustained could have a
significant adverse impact on the Group's business, financial situation and results.
In the future, insurance policy premiums for satellites in orbit and satellite launches could increase
and insurance cover could be more difficult to obtain or to renew.
Numerous factors, some of which are outside the Group's control, may affect the cost of insurance
premiums; these mainly include statistics on satellite failures or launch failures across the sector as a
whole.
The Group might not be able to renew its In-Orbit Life Insurance plan on comparable terms. A
deterioration in the In-Orbit Life Insurance market or an increase in insurance premiums could
prompt the Group to reduce its coverage of partial losses or deemed total losses of the insured
satellites, which itself could lead to an increase in the Group's exposure to the consequences of a
failure or malfunction in-orbit.
In addition, the Group covers the launch of its satellites through a "Launch-plus-one-year" insurance.
10


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