Q4 2026 Eutelsat Communications SA Earnings Call

August 7, 2026

Speaker #2: Your line is muted.

Speaker #3: Call recording is on.

Speaker #4: Welcome to the Eutelsat Full Year 2025-2026 Results Presentation. For the first part of the conference, participants will be in listen-only mode. During the Q&A session, you will be able to ask questions by dialing #key5 on your telephone keypad.

Operator: Welcome to the Eutelsat Full Year 2025/2026 Results Presentation. For the first part of the conference, the participants will be in listen-only mode. During the questions and answer session, participants will be able to ask questions by dialing #5 on their telephone keypad. I will hand the conference over to the speaker, Jean-François Fallacher, Chief Executive Officer, and Sébastien Rouge, Chief Financial Officer. Please go ahead.

Operator: Welcome to the Eutelsat Full Year 2025/2026 Results Presentation. For the first part of the conference, the participants will be in listen-only mode. During the questions-and-answer session, participants will be able to ask questions by dialing pound key five on their telephone keypad. I will hand the conference over to the speaker, Jean-François Fallacher, Chief Executive Officer, and Sébastien Rouge, Chief Financial Officer. Please go ahead.

Speaker #4: Now, I will hand the conference over to the speakers, Jean-François Folletier, Chief Executive Officer, and Sébastien Rouge, Chief Financial Officer. Please go ahead.

Speaker #5: Hello, welcome, and thank you for joining us today in the middle of the summer for Eutelsat's full-year 2025–2026 results presentation. I am Jean-François Folletier, the CEO of Eutelsat, and I am joined today by Sébastien Rouge, our Chief Financial Officer, and Joanna Darlington, Head of Investor Relations.

Jean-François Fallacher: Hello. Welcome, and thank you for joining us today in the middle of the summer for Eutelsat's Full Year 2025/2026 Results Presentation. I am Jean-François Fallacher, the CEO of Eutelsat, and I am joined today by Sébastien Rouge, our Chief Financial Officer, and Joanna Darlington, Head of Investor Relations. Let's go directly to the meat of this meeting and the highlights of our year. I want to stress that our new revenues were ahead of expectations, up nearly 70% year-on-year to almost EUR 300 million. Our new revenues are now representing 25% of group total revenues. Overall, our full year 2025/2026 results are in line with objectives. CapEx are At just under EUR 600 million, below the EUR 900 million expectations, Sébastien will come back to that.

Speaker #5: So let's go directly to the meat of this meeting and the highlights of our year. I want to stress that our yearly revenues were ahead of expectations, up nearly 70% year-on-year to almost $300 million.

Jean-François Fallacher: Let's go directly to the meat of this meeting and the highlights of our year. I want to stress that our new revenues were ahead of expectations, up nearly 70% year-on-year to almost EUR 300 million. Our new revenues are now representing 25% of group total revenues. Overall, our full year 2025/2026 results are in line with objectives. CapEx are at just under EUR 600 million, below the EUR 900 million expectations, Sébastien will come back to that.

Speaker #5: And our year revenues are now representing 25% of group total revenues. Overall, our full year 2025-2026 results are in line with objectives. Capex are just under $600 million, below the $900 million expectations, and Sébastien will come back to that.

Speaker #5: In March this year, we added the final touch to our successful $5 billion complete refinancing package with a $1.5 billion bond offering, securing our mid-term Capex EDS.

Jean-François Fallacher: In March this year, we've added the final touch to our successful EUR 5 billion complete refinancing package with a EUR 1.5 billion bond offering, securing our midterm CapEx needs. We also secured a major EUR 350 million call-off contract under NEXUS framework agreement with the French procurement arm of the French MOD. We also welcomed, two weeks ago, the FCC, the US FCC C-band clearing order, which is expected to deliver $504 million in incentives payment in 2031. Finally, the imminent outcome of the IRIS² first rendezvous is expected to confirm Eutelsat leadership on the LEO segment. Let's now turn to the financial highlights. Total revenues for full year 2025, 2026 stood, as you can read there, at EUR 1,235.9 million, down 0.6% on a reported basis and up 3% like-for-like. Revenues for our four operating verticals stood at EUR 1,197 million, up by 1.8% on a like-for-like basis.

Speaker #5: And we also secured a major $350 million call-off contract under the Nexus Framework Agreement with the French procurement arm of the French MOD. We also welcomed, two weeks ago, the US FCC's C-Band clearing order, which is expected to deliver $504 million in incentive payments in 2031.

Speaker #5: And finally, the imminent outcome is expected to confirm Eutelsat's leadership in the LEO segment. Let's now turn to the financial highlights. Total revenues for full year 2025-2026 stood, as you can read there, at $1,235.9 million, down 0.6%, or 3% like-for-like.

Jean-François Fallacher: Finally, the imminent outcome of the IRIS² first rendezvous is expected to confirm Eutelsat leadership on the LEO segment. Let's now turn to the financial highlights. Total revenues for full year 2025, 2026 stood, as you can read there, at EUR 1,235.9 million, down 0.6% on a reported basis and up 3% like-for-like. Revenues for our four operating verticals stood at EUR 1,197 million, up by 1.8% on a like-for-like basis.

Speaker #5: Revenues for our four operating verticals stood at $1.197 billion, up by 1.8% on a like-for-like basis. LEO revenues amounted to $297 million, up to almost 70%.

Jean-François Fallacher: LEO revenues amounted to €297 million, up to almost 70%. Now accounting, as I was saying, for a quarter of our revenues, this is up again by 70% versus last year. Adjusted EBITDA stood at EUR 632 million on 30 June, down 3%, 3.1 points like-for-like. Adjusted EBITDA margin stood at 51.2%, 3.2 points like-for-like. As mentioned, these results were in line with our expectations. CapEx is at just under €600 million, below the €900 million expectation. This is leaving us with a net debt to EBITDA ratio of 2.32. Let's go now to our operational performance. I will comment our revenues by vertical. Video, as you can see now, is representing 43% of our total revenues at €590 million. This is actually a decline in these legacy revenues by 13.1%.

Speaker #5: And now, accounting, as I was saying, for Q1 of our revenues, and this is up again by 70% versus last year. Adjusted EBITDA stood at $632 million on June 30, down 3%, 3.1 points like-for-like.

Speaker #5: Adjusted EBITDA margin stood at 51.2%, up 3.2 points like-for-like. As mentioned, these results were in line with our expectations. Capex is at just under $600 million, below the $900 million expectation.

Speaker #5: This is leaving us with a net debt-to-EBITDA ratio of 2.32. Let's now move on to our operational performance. I will comment on our revenues by vertical.

Jean-François Fallacher: Let's go now to our operational performance. I will comment our revenues by vertical. Video, as you can see now, is representing 43% of our total revenues at €590 million. This is actually a decline in these legacy revenues by 13.1%.

Speaker #5: Video, as you can see now, is representing 43% of our total revenues, at $519 million. This is actually a decline in these legacy revenues by 13.1%.

Speaker #5: Then, if we go to our fixed connectivity revenues, they are now representing 23% of the total group revenues, and they rose by 15.6% to $270 million.

Jean-François Fallacher: If we go to our fixed connectivity revenues, they are now representing 23% of the total group revenues, they rose by 15.6% to €270 million. Government services, which are now representing 20% of our revenues at €235.5 million, rose by 17.7%. Our mobile connectivity, which are representing 14% of the group total revenues with €172 million, increased by 16%. If we now look at the next page, our total revenues stood at EUR 1.226 billion. Again, on a like-for-like basis, it is an increase of +3%. They reflected a EUR -51 million currency effect and EUR +21 million swing in other revenues, mainly from revenue recognition from IRIS² linked to the Eutelsat involvement as a consortium system development prime, as well as some hedging revenues. Revenues of our four operating verticals were up 1.8% on a like-for-like basis.

Speaker #5: Government services which are now representing 20% of our revenues, at $235.5 million, rose by 17.7%. And our mobile connectivity, which are representing 14% of the group total revenues, with 172 million euro, increased by 16%.

Speaker #5: If we now look at the next page, our total revenues stood at $1.226 billion, again on a like-for-like basis. It is an increase of plus 3%.

Speaker #5: And they reflected a $51 million negative currency effect, and a $21 million positive swing in other revenues, mainly from revenue recognition from Iris Square, linked to the Eutelsat involvement as a consortium system development prime.

Jean-François Fallacher: They reflected a EUR -51 million currency effect and EUR +21 million swing in other revenues, mainly from revenue recognition from IRIS² linked to the Eutelsat involvement as a consortium system development prime, as well as some hedging revenues. Revenues of our four operating verticals were up 1.8% on a like-for-like basis.

Speaker #5: And as well as some hedging revenues. Revenues of our four operating verticals were up 1.8% on a like-for-like basis. Let's now zoom in on our video business.

Jean-François Fallacher: Let's now zoom on our video business. As I was saying, video revenues were down by 13.1% this year. This is with no surprise reflecting the underlying market trend, compounded as well by sanctions on our Russian channels that were imposed at the beginning of the year and by the termination of capacity contracts on two Russian satellites called Express AT1 and Express AT2. Q4 revenues on the video side stood at EUR 124.7 million, down by 14.4% on a year-on-year basis and 2.7% quarter-on-quarter, reflecting actually the first full quarter effects of these contract terminations. I was talking about the Express AT1 and Express AT2 contract termination. Let's now turn more in detail into our connectivity business. Our total connectivity revenues stood at €677.9 million, up by 9.7% on a reported basis and 16.4% like-for-like. This is clearly thanks to the robust performance of LEO across all three verticals.

Speaker #5: As I was saying, video revenues were down by 13.1% this year. This is no surprise, reflecting the underlying market trend. This was compounded as well by sanctions on our Russian channels, that were imposed at the beginning of the year, and by the termination of capacity contracts on two Russian satellites called X81 and X82.

Speaker #5: So fourth quarter revenues on the video side stood at $124.7 million, down by 14.4% on a year-over-year basis, and 2.7% quarter-on-quarter, reflecting actually the first full quarter effects of these contract terminations I was talking about—the 81 and 82 contract termination.

Jean-François Fallacher: I was talking about the Express AT1 and Express AT2 contract termination. Let's now turn more in detail into our connectivity business. Our total connectivity revenues stood at €677.9 million, up by 9.7% on a reported basis and 16.4% like-for-like. This is clearly thanks to the robust performance of LEO across all three verticals.

Speaker #5: Let's now turn in more detail to our connectivity business. Our total connectivity revenues stood at $677.9 million, up 9.7% on a reported basis and 16.4% like-for-like.

Speaker #5: This is clearly thanks to the robust performance of LEO across all three verticals. As I was saying, LEO growth exceeded expectations, up by almost 70%, to $297 million in revenues.

Jean-François Fallacher: As I was saying, LEO growth exceeded expectations up by almost 70% to €297 million. Now LEO is representing more than 40% of our connectivity business revenues and a quarter of the group total top line. The Q4 revenues stood at €214.9 million, up 24.7% like-for-like and 30% quarter-on-quarter, again powered by the sustained growth in our LEO business. In particular, they reflected the catch-up revenue recognition in respect to our NEXUS framework contract with the French MOD. Now if we zoom in each vertical on fixed connectivity, I am page 10 on the presentation. Fixed connectivity revenue stood at €270 million, up by 15.6%. Again, here, thanks to the growth of LEO-enabled solutions, that was partially offset by more challenging conditions for GEO-enabled solutions.

Speaker #5: And now, LEO is representing more than 40% of our Connectivity business revenues, and a quarter of the Group's total top-line. Fourth quarter revenues stood at $214.9 million, up 24.7% like-for-like, and 30% quarter-on-quarter, again powered by the sustained growth in our LEO business.

Speaker #5: And in particular, they reflected the catch-up revenue recognition in respect to our NEXUS framework contract with the French MoD. Now, if we zoom in on each vertical, on Fixed Connectivity—I am on page 10 of the presentation.

Jean-François Fallacher: In particular, they reflected the catch-up revenue recognition in respect to our NEXUS framework contract with the French MOD. Now if we zoom in each vertical on fixed connectivity, I am page 10 on the presentation. Fixed connectivity revenue stood at €270 million, up by 15.6%. Again, here, thanks to the growth of LEO-enabled solutions, that was partially offset by more challenging conditions for GEO-enabled solutions.

Speaker #5: Fixed connectivity revenues stood at $270 million, up by 15.6%. Again, this was thanks to the growth of LEO-enabled solutions, and was partially offset by more challenging conditions for GEO-enabled solutions. The fourth quarter revenue of this specific segment was $77.7 million, up 17% year on year, and up 27.8% quarter on quarter, reflecting again our LEO performance as well as catch-up revenue in the fourth quarter.

Jean-François Fallacher: The Q4 revenue of this specific segment were at EUR 77.7 million, up 17% year-on-year and 27.8% quarter-on-quarter, reflecting again our LEO performance as well as catch-up revenue in the Q4. Key wins in this Q4 included a new partner agreement with Voimatel and the delivery of LEO connectivity services in Finland, supporting critical network infrastructure, resilient communication for enterprise and public sector customers, and connectivity in high northern latitudes, including Arctic regions, where our constellation is particularly strong. Let's go now to the Government Services segment, where revenue stood up at 17.7%. This is strong growth and this is reflecting the revenue recognition related to the CENTAURE call of contract, part of again, the NEXUS initiative with the French MOD as well as increased demand from other non-US governments and services that we are delivering in Ukraine on the LEO constellation.

Speaker #5: Key wins in this fourth quarter included a new partner agreement with Voimatel, and the delivery of LEO connectivity services in Finland, supporting critical network infrastructure, resilient communication for enterprise and public sector customers, and connectivity in high northern latitudes, including Arctic regions, where our constellation is particularly strong.

Speaker #5: Let's go now to the government services segment, where revenues stood up at 17.7%. This is a strong growth, and this is reflecting the revenue recognition related to the Centaur call of contract, part of, again, the nexus initiative with the French MOD, as well as increased demand from other non-US governments and services that we are delivering in Ukraine on the LEO constellation.

Jean-François Fallacher: Let's go now to the Government Services segment, where revenue stood up at 17.7%. This is strong growth and this is reflecting the revenue recognition related to the CENTAURE call of contract, part of again, the NEXUS initiative with the French MOD as well as increased demand from other non-US governments and services that we are delivering in Ukraine on the LEO constellation.

Speaker #5: And fourth quarter, of this segment was up by 36.9% year on year, and by 70% quarter on quarter, this was linked to the above-mentioned contract with the French procurement arm of the French MOD.

Jean-François Fallacher: Q4 of this segment was up by 36.9% year-on-year and by 70% quarter-on-quarter. This was linked to the above-mentioned contract with the French procurement arm of the French MOD. On mobile connectivity, revenues up 16% year-on-year, precisely 15.9%. This reflected the ongoing strong performance of the Aero segment, both on LEO and GEO solutions. This is really a segment where we are benefiting from our multi-orbit capabilities at Eutelsat as well as more limited contribution from maritime where LEO growth was, unfortunately, partially offset by softer trends in the GEO services for maritime. Q4 revenues stood at EUR 50 million, up 18.6% year-on-year and 11.8% quarter-on-quarter.

Speaker #5: On Mobile Now connectivity, revenues are up 16% year on year, precisely 15.9%. This reflected the ongoing strong performance of the aero segment, both on LEO and GEO solutions.

Speaker #5: This is really a segment where we are benefiting from our multi-orbit capabilities at Eutelsat, as well as a more limited contribution from maritime, where LEO growth was unfortunately partially offset by softer trends in the GEO services for maritime.

Jean-François Fallacher: This is really a segment where we are benefiting from our multi-orbit capabilities at Eutelsat as well as more limited contribution from maritime where LEO growth was, unfortunately, partially offset by softer trends in the GEO services for maritime. Q4 revenues stood at EUR 50 million, up 18.6% year-on-year and 11.8% quarter-on-quarter.

Speaker #5: Fourth

Speaker #1: Water revenues stood at €50 million , up 18.6% year on year and 11.8% quarter on quarter Let me comment a few commercial successes in Q4 , where we signed a multi-year , multi-million dollar agreement with AC network to expand the use of Eutelsat , OneWeb services as part of hybrid connectivity solutions for maritime customers worldwide .

Jean-François Fallacher: Let me comment a few commercial successes in Q4 where we signed a multi-year, multi-million dollar agreement with IST Network to extend the use of Eutelsat OneWeb LEO services as part of hybrid connectivity solutions for maritime customers worldwide. Eutelsat also signed a new partner agreement with Greece, Tototheo, to deliver the LEO connectivity services to customers across the global maritime sector. This is clearly strengthening our company's distribution network in this strategic market which is maritime for us. In aviation, Eutelsat signed a multi-year agreement with Anuvu for capacity on EUTELSAT 10B to enhance high-speed in-flight connectivity services, underscoring the role of the GEO capacity within Eutelsat multi-orbit strategy. Elsewhere, we are happy that our distribution partner, SES Intelsat entered major in-flight connectivity agreements with Japan Airlines and LATAM Airlines that will use our LEO constellation for in-flight connectivity.

Speaker #1: Eutelsat also signed a new partner agreement with Greece's Toto Teo to deliver the LEO connectivity services to customers across the global maritime sector.

Speaker #1: And this is clearly strengthening our our companies distribution network in this strategic market , which is maritime for us and in aviation , Eutelsat signed a multi-year agreement with Hanover for capacity on Eutelsat , Tenby to enhance high speed in-flight connectivity services , underscoring the role of the geo capacity within Eutelsat Multi-orbit strategy .

Jean-François Fallacher: This is clearly strengthening our company's distribution network in this strategic market which is maritime for us. In aviation, Eutelsat signed a multi-year agreement with Anuvu for capacity on EUTELSAT 10B to enhance high-speed in-flight connectivity services, underscoring the role of the GEO capacity within Eutelsat multi-orbit strategy. Elsewhere, we are happy that our distribution partner, SES Intelsat entered major in-flight connectivity agreements with Japan Airlines and LATAM Airlines that will use our LEO constellation for in-flight connectivity.

Speaker #1: And elsewhere, we are happy that our distribution partner, SS Intelsat, entered major in-flight connectivity agreements with Japan Airlines and LATAM Airlines that will use our LEO constellation for in-flight connectivity. Our backlog now stands at $3.4 billion.

Jean-François Fallacher: Our backlog now stood at EUR 3.4 billion on 30 June versus EUR 3.5 billion a year earlier. This is the equivalent of 2.7x our 2025/2026 revenues and connectivity represented 61% of the total backlog versus 57% a year ago. As a reminder, the evolution of this backlog is reflecting the increasing weight of LEO business in the mix. As a reminder, contracts in the LEO business tend to be shorter than the contracts we used to have in the legacy GEO application. This explains this slight decrease of the backlog. Moreover, only the secured element of take-or-pay contracts, LEO contracts are recognized while what we call pay-as-you-go LEO contracts are not reflected in this backlog. Let's now turn to our financial performance, and I will pass the floor to our CFO, Sébastien Rouge.

Speaker #1: On June 30th , versus a 3.5 billion a year earlier This is the equivalent of 2.7 times our 2526 revenues . And connectivity represented a 61% of the total backlog , versus 57% a year ago .

Speaker #1: As a reminder, the evolution of this backlog reflects the increasing weight of the LEO business in the mix. And as a reminder, contracts in the LEO business tend to be shorter than the contracts we used to have in the legacy GEO application.

Speaker #1: This explains the slight decrease in the backlog. Moreover, only the secured element, or take-off pay, is in contracts. LEO contracts are recognized, while what we call PSV LEO contracts are not reflected in this backlog. Let's now turn to our financial performance, and I will pass the floor to our CFO, Sebastian Ruiz. Thank you, Jean-Francois.

Jean-François Fallacher: Moreover, only the secured element of take-or-pay contracts, LEO contracts are recognized while what we call pay-as-you-go LEO contracts are not reflected in this backlog. Let's now turn to our financial performance, and I will pass the floor to our CFO, Sébastien Rouge.

Sébastien Rouge: Thank you, Jean-François. You covered revenues in detail, let's now jump straight to profitability. Adjusted EBITDA stood at EUR 632 million for the year ended at the end of June, compared to EUR 666 million a year earlier. It is down 6.5%. It was down 3.1% on a like-for-like basis. Operating expenses stood at EUR 604 million. It is up EUR 36 million. They mainly reflected an increase in cost of goods sold for our LEO business, partially offset by the revaluation of share-based compensation schemes that we booked in H1. In terms of margin, adjusted EBITDA margin stood at 51.2% versus 54.4%, down 3.2 points on both reported and like-for-like basis. If we look at the rest of the P&L, group share of the net result was a loss of EUR 457 million versus a loss of EUR 1.1 billion a year earlier.

Speaker #1: You covered revenues in detail, so let's now jump straight to profitability. Adjusted EBITDA stood at €632 million for the year ended at the end of June, compared to €666 million a year earlier.

Speaker #1: It's down 6.5% . It was down 3.1% on a like for like basis Operating expenses stood at four 604 million . It's up 36 million there mainly reflected an increase in cost of goods sold for our our Leo business , partially offset by the revaluation of share based compensation schemes that we booked in H1 In terms of margin adjusted EBITDA margin stood at 51.2% versus 54.4 , down 3.2 points on both a reported and like for like basis .

Sébastien Rouge: In terms of margin, adjusted EBITDA margin stood at 51.2% versus 54.4%, down 3.2 points on both reported and like-for-like basis. If we look at the rest of the P&L, group share of the net result was a loss of EUR 457 million versus a loss of EUR 1.1 billion a year earlier.

Speaker #1: If we look at the rest of the P&L, group share of the net result was a loss of €457 million versus a loss of €1.1 billion a year earlier. This improvement reflected lower other operating expenses of €153 million as compared to €777 million last year.

Sébastien Rouge: This improvement reflected lower other operating expenses of EUR 153 million as compared to EUR 777 million last year. As a reminder, fiscal year 2025/2026 included goodwill and satellite impairments totaling EUR 720 million. We have lower D&A of EUR 699 million versus EUR 808 million a year earlier, reflecting the positive effect from the securing of operational continuity of the LEO constellation following the procurement of additional 140 satellites, as well as the end of amortization of certain intangible assets, as well as lower on-ground depreciation. We have a net financial result of EUR -232 million versus EUR -201 million a year earlier, mainly reflecting higher interest costs, partially offset by the favorable evolution of foreign exchange gains and losses. Finally, we have a very small corporate tax charge of EUR 1.6 million versus a small gain of EUR 6.7 million a year earlier.

Speaker #1: As a reminder of fiscal year 25 , 26 included goodwill and satellite impairments totaling 720 million . We have lowered DNA for . Of 699 million versus 808 a year earlier , reflecting the positive effect from the securing of operational continuity of the Leo constellation following the procurement of additional 340 satellites , as well as the end of amortization of certain intangible assets , as well as lower on ground depreciation We have a net financial result of -232 million versus -201 a year earlier , mainly reflecting higher interest costs , partially offset by the favorable evolution of foreign exchange gains and losses Finally , we have a very small corporate tax charge of 1.6 million versus a small gain of 6.7 a year earlier If we look at our capital expenditure CapEx amounted to 594 million as compared to 415 million a year earlier .

Sébastien Rouge: We have a net financial result of EUR -232 million versus EUR -201 million a year earlier, mainly reflecting higher interest costs, partially offset by the favorable evolution of foreign exchange gains and losses. Finally, we have a very small corporate tax charge of EUR 1.6 million versus a small gain of EUR 6.7 million a year earlier.

Sébastien Rouge: If we look at our capital expenditure, CapEx amounted to EUR 594 million as compared to EUR 450 million a year earlier. This increase reflects the progress in the execution of LEO investment programs, primarily focused on the Gen One follow-up activities. It was below the EUR 900 million that we originally anticipated through our H1 result communication, mainly due to changes in milestone phasings and good control over GEO and ground CapEx. It should not be extrapolated for the future years, notably 2026/2027, where CapEx is expected to be the region of EUR 1.2 billion. In this context, the group confirms its medium-term plan, covering investments of approximately EUR 4 billion over the period fiscal year 2026 to fiscal year 2029, funded by its recently completed EUR 5 billion refinancing round.

Speaker #1: This increase reflects the progress in the execution of LEO investment programs, primarily focused on the genuine follow-up activities. It was below the €900 million that we originally anticipated through our first half.

Speaker #1: Result . Communication , mainly due to changes in milestone phasing and good control over geo and CapEx It should not be extrapolated for the future years , notably , 2627 , where CapEx is expected to be the region of 1.2 billion .

Speaker #1: In this context, the Group confirms its medium-term plan, covering investments of approximately €4 billion over the period fiscal year 2026 to fiscal year 2029, funded by its recently completed €5 billion refinancing round.

Sébastien Rouge: In this context, the group confirms its medium-term plan, covering investments of approximately EUR 4 billion over the period fiscal year 2026 to fiscal year 2029, funded by its recently completed EUR 5 billion refinancing round.

Speaker #1: If we look now at our financing structure at the 30th of June '26, the net debt stood at €1.46 billion, down by €1.2 billion versus the end of last year, mainly reflecting the net proceeds from the capital increase of €1.5 billion.

Sébastien Rouge: If we look now at our financing structure at 30 June 2026, the net debt stood at EUR 1.46 billion, down by EUR 1.2 billion versus the end of last year, mainly reflecting the net proceeds from the capital increase of EUR 1.5 billion. It was partially offset by interest out and cost associated with the execution of our refinancing plan. As a result, the net debt to EBITDA ratio stood at 2.32 times compared to 3.9 times at the end of June 2025. The average cost of debt after hedging stood at 4.37%. Along to an ample renewal of our financing capability, the group was able to take advantage of the EUR 1.5 billion capital increase, which has improved its rating and credit appraisal by lender. The group has extended the average maturity of its debt, now at 4.2 years as compared to 2.5 years at the end of 2025.

Speaker #1: It was partially offset by interest out and cost associated with the execution of our refinancing plan As a result , the net debt to EBITDA ratio stood at 2.32 times , compared to 3.9 times at the end of June 25th .

Speaker #1: The average cost of debt after hedging stood at 4.37%, along with an ample renewal of our financing capability. The group was able to take advantage of the €1.5 billion capital increase, which has improved its rating and credit appraisal by lenders.

Sébastien Rouge: Along to an ample renewal of our financing capability, the group was able to take advantage of the EUR 1.5 billion capital increase, which has improved its rating and credit appraisal by lender. The group has extended the average maturity of its debt, now at 4.2 years as compared to 2.5 years at the end of 2025. We enjoy a great level of liquidity with undrawn credit lines and cash in hand at EUR 2.3 billion, complemented by around EUR 690 million of undrawn ECA facility dedicated to future CapEx. Now, I hand back to Jean-François for the outlook and the next steps.

Speaker #1: The group has extended the average maturity of its debt, now at 4.2 years, as compared to 2.5 years at the end of '25.

Speaker #1: We enjoy a great level of liquidity with undrawn credit lines and cash in hand at €2.3 billion, complemented by around €690 million of undrawn ECF dedicated to future CapEx. Now, I hand back to Jean-François for the outlook and the next steps.

Sébastien Rouge: We enjoy a great level of liquidity with undrawn credit lines and cash in hand at EUR 2.3 billion, complemented by around EUR 690 million of undrawn ECA facility dedicated to future CapEx. Now, I hand back to Jean-François for the outlook and the next steps.

Speaker #2: Thank you very much, Sebastien. Let's now turn to the outlook, where I want to start by commenting on the commercial momentum we've built over the past year.

Jean-François Fallacher: Thank you very much, Sébastien. Let's now turn to the outlook, where I want to start by commenting the commercial momentum we've built over the past year. It's clearly demonstrating that our strategy is translating into tangible customer wins across all our core markets. In fixed connectivity, as you can see there, we continue to strengthen our presence with both existing and actually new partners. You can see a list here of our distribution partners and basically customers. Airtel, Orange, Paratus, Intelsat are actually reflecting the continued demand for high-quality connectivity solutions and the value of our multi-orbit offering. On governmental services, this has been a year where this segment has been a major growth driver. We secure landmark agreements, most notably with the French Defense Procurement Agency, DGA, under the NEXUS frame contract, and alongside contracts with other institutional customers and partners.

Speaker #2: It clearly demonstrates that our strategy is translating into tangible customer wins across all our core markets in fixed connectivity. As you can see there, we continue to strengthen our presence with both existing and, actually, new partners.

Speaker #2: You can see a list here of our distribution partners and basically customers . Airtel , orange , Paratus , Intelsat are actually reflecting the continued demand for high quality connectivity solutions and the value of our Multi-orbit offering on governmental services .

Jean-François Fallacher: Airtel, Orange, Paratus, Intelsat are actually reflecting the continued demand for high-quality connectivity solutions and the value of our multi-orbit offering. On governmental services, this has been a year where this segment has been a major growth driver. We secure landmark agreements, most notably with the French Defense Procurement Agency, DGA, under the NEXUS frame contract, and alongside contracts with other institutional customers and partners.

Speaker #2: This has been a year where this segment has been a major growth driver . We secured landmark agreements , most notably with the French Defense Procurement Agency , DJI and the Nexus Frame contract , and alongside contracts with other institutional customers and partners .

Speaker #2: These successes are really reinforcing our position as a trusted partner for sovereign and defense communication, in an area where the demand really continues to accelerate.

Jean-François Fallacher: These successes are clearly reinforcing our position as a trusted partner for sovereign and defense communication in an area where the demand really continues to accelerate. On the right side of the chart, you can see there that the momentum in mobile connectivity has also been strong across maritime and aviation. The list of partners we are having reselling for her are including here Viasat, Marlink, Panasonic Avionics, Tototheo, IEC Telecom, Station Satcom, and of course, SES, Intelsat. Taken together, these commercial successes last year are really illustrating the breadth of our customer base, the growing recognition of our capacity, and our ability to win the business across a number of verticals. They are providing us with increasing visibility on the revenue growth as our LEO business continues to scale and to increase, of course, that while leveraging the strength of multi-orbit established GEO franchise.

Speaker #2: And on the right side of the chart, you can see there that the momentum in mobile connectivity has also been strong across maritime and aviation.

Speaker #2: And the list of partners we are having reselling for her us are including Viasat , Marlin , Panasonic Aviation , Toto Teo , AC network stations , and of course SAS , Intelsat Taken together , I mean these commercial successes Last year are really illustrating the breadth of our customer base .

Jean-François Fallacher: Taken together, these commercial successes last year are really illustrating the breadth of our customer base, the growing recognition of our capacity, and our ability to win the business across a number of verticals. They are providing us with increasing visibility on the revenue growth as our LEO business continues to scale and to increase, of course, that while leveraging the strength of multi-orbit established GEO franchise.

Speaker #2: The the growing recognition of our capacity capacity and our ability to win the business across a number of verticals . They are providing us with increasing visibility on the revenue growth as our business continues to scale and to increase .

Speaker #2: Of course, that's while leveraging the strength of our multi-orbit established GEO franchise. One word about one of the most significant commercial achievements of last year.

Jean-François Fallacher: One word about one of the most significant commercial achievements of last year. This is the award of the first call of contract under the French Ministry of Armed Forces NEXUS Framework Agreement. The name of this contract is CENTAURE. It has a total value of EUR 350 million over eight years, it's obviously a major milestone for Eutelsat. It's validating our strategic role and the role that the OneWeb constellation can play in supporting as a dual player in supporting sovereign defense communications. This contract is actually composed of a firm commitment of EUR 138 million over the first four years and is enabling immediate deployment of a secure, resilient LEO connectivity capabilities for the French armed forces. Importantly, it is bridging the gap ahead of the deployment of IRIS² by providing, as we speak, immediately, we started actually already last year, to provide a number of services.

Speaker #2: This is the word of the first call of contract . Under the French minister , Ministry of Armed Forces Nexus Framework agreement . The name of this contract is a Centaur .

Speaker #2: It has a potential total value of €350 million over eight years. And it's obviously a major milestone for Hotel SAT.

Speaker #2: It's validating our strategic role and the role that the OneWeb constellation can play in supporting us as a dual player, in supporting sovereign defense communications.

Speaker #2: This contract is actually composed of a firm commitment of $138 million over the first four years, and is enabling immediate deployment of a secure, resilient LEO.

Jean-François Fallacher: This contract is actually composed of a firm commitment of EUR 138 million over the first four years and is enabling immediate deployment of a secure, resilient LEO connectivity capabilities for the French armed forces. Importantly, it is bridging the gap ahead of the deployment of IRIS² by providing, as we speak, immediately, we started actually already last year, to provide a number of services.

Speaker #2: Connectivity capabilities for the French Armed Forces Importantly , it is bridging the gap ahead of the deployment of our square by providing , as we speak , immediately and we started actually already last year to provide a number of services .

Speaker #2: This is clearly a solution that is laying the foundation for Europe's future sovereign connectivity and infrastructure. Beyond this, it's a financial contribution.

Jean-François Fallacher: This is clearly a solution that is laying the foundation for Europe's future sovereign connectivity infrastructure. Beyond its financial contribution, this contract is strategically important. It is demonstrating the confidence that one of Europe's leading defense organizations is placing in our technology and operational capability, and this is only the beginning. The framework agreement NEXUS has a 10-year duration, creating a significant pipeline of future opportunities as additional call-off contracts are going to be awarded to support evolving operational requirements of the French Army. We believe this contract is positioning Eutelsat at the forefront of Europe's sovereign communication ecosystem and is providing an important catalyst for continued expansion of our government services business across other geographies in Europe and outside Europe. A word now on FCC Upper C-Band transition in the United States.

Speaker #2: This contract is strategically important. It demonstrates the confidence that one of Europe's leading defence organizations is placing in our technology and operational capability. And this is only the beginning.

Speaker #2: The framework agreement Nexus has a ten-year duration, creating a significant pipeline of future opportunities as additional call-off contracts are going to be awarded to support evolving operational requirements of the French Army.

Speaker #2: We believe this contract is positioning Intelsat at the forefront of Europe's sovereign communication ecosystem and is providing an important catalyst for continued expansion of our government services business across other geographies in Europe and outside Europe. A word now on the FCC C-band transition in the United States.

Jean-François Fallacher: We believe this contract is positioning Eutelsat at the forefront of Europe's sovereign communication ecosystem and is providing an important catalyst for continued expansion of our government services business across other geographies in Europe and outside Europe. A word now on FCC Upper C-Band transition in the United States.

Speaker #2: The recent FCC order has established the regulatory framework for the reallocation of 160 MHz of C-band spectrum in the United States. Under this order, Eutelsat is expecting to receive an incentive payment of $504 million pre-tax.

Jean-François Fallacher: The recent FCC order has been establishing the regulatory framework for the reallocation of 160 MHz of Upper C-Band spectrum in the United States. Under this order, Eutelsat is expecting to receive an incentive payment of $504 million pre-tax upon the completion of the transition, which is EUR 443 million pre-tax, upon completion of the transition. These funds will be expected during 2031. Separately, the costs that will be associated with this transition are eligible for reimbursement by the FCC, and this is coming on top of the $504 million incentives to be received when freeing up the spectrum. Our preliminary transition plan is now under review and will be presented to the FCC in November. The proceeds from these incentive payments in 2031 will contribute to funding our CapEx requirements beyond 2030, 2031. Now, let me say a word on this very important project, which is IRIS².

Speaker #2: Upon the completion of the transition , which is €443 million pre-tax Upon completion of the transition , these funds will be expected during 2031 and separately , the costs that will be associated with this transition are eligible for reimbursement by the FCC .

Speaker #2: And this is coming on top of the $504 million in incentives to be received when freeing up the spectrum. Our preliminary transition plan is now under review and will be presented to the FCC in November, and the proceeds from these incentive payments in 2031 will contribute to funding our CapEx requirements beyond 2030, 2031.

Jean-François Fallacher: Our preliminary transition plan is now under review and will be presented to the FCC in November. The proceeds from these incentive payments in 2031 will contribute to funding our CapEx requirements beyond 2030, 2031. Now, let me say a word on this very important project, which is IRIS².

Speaker #2: Now , let me say a word on this very important project , which is high risk , and I have a fresh news , a scoop as I'm just learning at the moment .

Jean-François Fallacher: I have fresh news, a scoop, as I'm just learning at the moment now I'm speaking that we have finalized, and the European Commission has just been communicating that we have successfully passed a very important milestone for this IRIS² project, which is a so-called Rendezvous 1 closure. What does it mean? It means that the project that was so far in a phase of design, of preparation, is going into a different operational phase where, first of all, the SpaceRISE consortium is now committed to build this project. Contracts are going to be passed to major prime key subcontractors to build this constellation for Europe's future. This is IRIS², the largest public-private partnership ever undertaken in the European space sector. It will provide Europe with a sovereign, secure, resilient, multi-orbit connectivity infrastructure. The first Rendezvous negotiation are clearly now finalized.

Speaker #2: Now I'm saying that we have finalized, and the X has been communicating that we have successfully passed a very important milestone for this project, which is a so-called rendezvous wound closure.

Speaker #2: What does it mean ? It means that the project that was so far in a phase of design of preparation is going into a different operational phase where , first of all , the the space rise consortium is now committed to build this project and contracts are going to to be passed to a major prime key subcontractors to build this constellation for Europe's future .

Jean-François Fallacher: Contracts are going to be passed to major prime key subcontractors to build this constellation for Europe's future. This is IRIS², the largest public-private partnership ever undertaken in the European space sector. It will provide Europe with a sovereign, secure, resilient, multi-orbit connectivity infrastructure. The first Rendezvous negotiation are clearly now finalized.

Speaker #2: This is Harry square , the largest public private partnership ever undertaken in European space sector . It will provide Europe with a sovereign , secure , resilient multi-orbit connectivity infrastructure .

Speaker #2: The first round negotiations are clearly now finalized. We will move now to the next step of this project. This is confirming that Eutelsat has a leading role in this project.

Jean-François Fallacher: We will move now to the next step of this project. This is confirming that Eutelsat has a leading role in this project as a LEO lead within the program. This is clearly reflecting the unique expertise we are bringing to this project, IRIS², as the only European player with an operational constellation as we speak. I have to underline that beyond the strategic recognition, IRIS² will provide access to enhanced network capacity and next-generation technological capabilities. This is really the next generation and the generation tool of our constellation that will strengthen our competitive position for the years to come and secure our future until 2040.

Speaker #2: As a Leo lead within the programme . This is clearly a reflecting the unique expertise we are bringing to this project . Harry Square as the only European player with an operational constellation as we speak and I have to underline that beyond the strategic recognition , high will provide access to network capacity and next generation technological capabilities .

Jean-François Fallacher: I have to underline that beyond the strategic recognition, IRIS² will provide access to enhanced network capacity and next-generation technological capabilities. This is really the next generation and the generation tool of our constellation that will strengthen our competitive position for the years to come and secure our future until 2040.

Speaker #2: So this is really the next generation, and the generation to our constellation, that will strengthen our competitive position for the years to come.

Speaker #2: And secure our future until 2040 . Ultimately , the programme again , firmly establishes Eutelsat . I believe , as the heart of Europe's sovereign connectivity ambition , and is reinforcing our role as a key strategic infrastructure provider and supporting future growth opportunity for us across not only government but also commercial market , B2B and really underpins now our long term roadmap Let's now turn to our financial outlook For the financial year ending in June 27th , that has just started Our Leo renews are set to drive again .

Jean-François Fallacher: Ultimately, the program, again, firmly establishes Eutelsat, I believe, as the heart of Europe's sovereign connectivity ambition and is reinforcing our role as a key strategic infrastructure provider and supporting future growth opportunity for us across not only government, but also commercial market, B2B, and really underpins now our long-term roadmap. Let's now turn to our financial outlook. For the financial year ending in June 2027, that has just started. Our LEO revenues are set to drive again further strong growth. We are anticipating a rise of over 30%. As in the previous year, LEO growth, this growth will offset the decline in GEO revenues, notably video. In consequence, we expect to deliver slight growth in our total revenues of our four operating verticals, with an EBITDA margin broadly at the same level that last year. This year, gross capital expenditure is expected to amount €1.2 billion.

Speaker #2: Further strong growth: we are anticipating a rise of over 30%. And as in the previous year, LEO growth. This growth will offset the decline in GEO revenues.

Jean-François Fallacher: As in the previous year, LEO growth, this growth will offset the decline in GEO revenues, notably video. In consequence, we expect to deliver slight growth in our total revenues of our four operating verticals, with an EBITDA margin broadly at the same level that last year. This year, gross capital expenditure is expected to amount €1.2 billion.

Speaker #2: Notably . Video . In consequence , we expect to deliver a growth in our revenues in our total revenues of our four operating verticals with an EBITDA margin broadly at the same level that last year year , gross capital expenditure is expected to amount €1.2 billion .

Speaker #2: This clearly reflects a milestone shift from previous years, as well as the ramp up of CapEx associated with the renewal of our current generation of the OneWeb constellation. Elsewhere, we are confirming our revenue expectations in the range of €1.5 to €1.7 billion for the year ending June 29th.

Jean-François Fallacher: This is clearly reflecting a milestone shift from the previous years, as well as ramp-up of CapEx associated with the renewal of our current generation of OneWeb constellation. Elsewhere, we are confirming our revenue expectation in a range of between EUR 1.5 and 1.7 billion for the year ending June 2029. That will be, again, supported by the very strong momentum of LEO revenues. Our operating leverage is set to drive an improvement in operating EBITDA margin, which is expecting at this horizon of year ending June 2029 above 60%. To conclude now, to sum up. It's been a year of solid execution against our strategic priorities. First, our transformation gains momentum. Low orbit revenues grew by 70% last year. They are now accounting for a quarter of our group revenues. This is really demonstrating the increasing commercial traction of OneWeb.

Speaker #2: That will again be supported by the very strong momentum of LEO revenues. Our operating leverage is set to drive an improvement in operating EBITDA margin, which is expected at this horizon of year ending June 29th.

Speaker #2: Above 60% . To conclude , now , to sum up , it's been a year of solid execution against our strategic priorities First , our transformation gains momentum .

Jean-François Fallacher: To conclude now, to sum up. It's been a year of solid execution against our strategic priorities. First, our transformation gains momentum. Low orbit revenues grew by 70% last year. They are now accounting for a quarter of our group revenues. This is really demonstrating the increasing commercial traction of OneWeb.

Speaker #2: Low orbit revenues grew by 70% last year . They are now accounting for a quarter of our group revenues . This is really demonstrating the increasing commercial traction of OneWeb This growth is progressively offsetting the decline in the expected decline of our legacy geo business , which nonetheless continues to generate strong , resilient cash flows that are supporting groups , investment strategy Second , we have fundamentally strengthened our financial position during last year .

Jean-François Fallacher: This growth is progressively offsetting the decline and the expected decline of our legacy GEO business, which nonetheless continues to generate strong, resilient cash flows that are supporting group's investment strategy. Second, we have fundamentally strengthened our financial position. During last year, we successfully completed a comprehensive €5 billion refinancing package, securing funding for our constellation renewal and other capital expenditure requirements throughout full year 2028/2029, while we have significantly improved the resilience and flexibility of our balance sheet. Third, we achieve an important milestone with the first major call of contract under the French MoD framework agreement that is representing more than €350 million. Further on, is demonstrating the growing strategic demand for sovereign EU connectivity and our role as a dual supplier in the MoD's segment.

Speaker #2: We successfully completed a comprehensive €5 billion refinancing package, securing funding for our constellation renewal and other capital expenditure requirements throughout full year 2029.

Speaker #2: While we have significantly improved the resilience and flexibility of our balance sheet, third, we achieved an important milestone with the first major cull of contracts under the French model framework agreement.

Jean-François Fallacher: Third, we achieve an important milestone with the first major call of contract under the French MoD framework agreement that is representing more than €350 million. Further on, is demonstrating the growing strategic demand for sovereign EU connectivity and our role as a dual supplier in the MoD's segment. Fourth, looking ahead, the FCC's decision on the Upper C-Band transition in the US will provide $504 million in incentive payments expected in 2031, which will contribute to our long-term financing needs.

Speaker #2: That is representing more than €3,350 million . And further on is demonstrating the growing strategic demand for sovereign EU connectivity and our role as a dual supplier in the Mod segment Fourth , looking ahead , the FCC's decision on the upper C-band transition in the US will provide 400 $504 million in incentive payments expected in 2031 , which will contribute to our long term financing needs and finally , the breaking news The outcome of I first rendez vous , which has now been signed this morning .

Jean-François Fallacher: Fourth, looking ahead, the FCC's decision on the Upper C-Band transition in the US will provide $504 million in incentive payments expected in 2031, which will contribute to our long-term financing needs. Finally, the breaking news, the outcome of IRIS² first rendezvous, which has now been signed this morning. That is obviously a very key and important milestone for Eutelsat and also for Europe, and it is confirming Eutelsat central role in Europe Sovereign Connectivity ambitions, reinforcing our leadership in new services and further strengthening our long-term strategic roadmap. Overall, I believe we leave the year as a stronger company, commercially, financially, strategically, with now a clear path to long-term sustainable growth. Thank you very much for your attention, and now we will take your questions.

Jean-François Fallacher: Finally, the breaking news, the outcome of IRIS² first rendezvous, which has now been signed this morning. That is obviously a very key and important milestone for Eutelsat and also for Europe, and it is confirming Eutelsat central role in Europe Sovereign Connectivity ambitions, reinforcing our leadership in new services and further strengthening our long-term strategic roadmap. Overall, I believe we leave the year as a stronger company, commercially, financially, strategically, with now a clear path to long-term sustainable growth. Thank you very much for your attention, and now we will take your questions.

Speaker #2: That is obviously a very key and important milestone for Intelsat , and also for Europe , and it is confirming Eutelsat Central role in Europe , sovereign connectivity ambitions , reinforcing our leadership in your services and further strengthening our long term strategic roadmap .

Speaker #2: So overall , I believe we live the year as a stronger company commercially , financially , strategically , with now a clear path to long term sustainable growth .

Speaker #2: Thank you very much for your attention. And now we will take your questions.

Speaker #3: Ladies and gentlemen, if you wish to ask a question, please dial the pound key followed by five on your telephone keypad to enter the queue.

Operator: Ladies and gentlemen, if you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Aleksander Peterc from Bernstein. Please go ahead.

Speaker #3: If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Alexandre Pitarch from Bernstein.

Speaker #3: Please go ahead

Speaker #4: Yes . Good morning , and thank you for taking my question . I just have three . Please , if I may . So the first one is on your guidance for the current year , fiscal 27 .

Aleksander Peterc: Yes, good morning, and thank you for taking my question. I just have three, please, if I may. The first one is on your guidance for the current year, fiscal 2027. I'm just wondering, are you being very cautious? What's explaining yet another year of flat revenue, and how should we think about your mid-term guidance that does model at some point a more meaningful top-line recovery? When will we finally get this LEO traction that translates into overall group revenue starting to track towards your mid-term guidance levels? Secondly, on the government and defense pipeline, I'm wondering to what extent the central program helped Q4 government revenues. Was this a one-off, particularly strong quarter, or should we expect similar streams going forward? I just want to know how the phasing of this program works.

Speaker #4: I'm just wondering , are you being very , very cautious ? What's explaining yet another year of flat revenue And and how should we think about your mid-term guidance that does kind of model at some point , a more meaningful top line recovery .

Speaker #4: So when will we finally get this ? Leo traction that translates into overall group revenue starting to track towards your your mid-term guidance levels Secondly , on the government and defense pipeline , I'm wondering whether , you know , to what extent the central program helped fourth quarter government revenues .

Aleksander Peterc: Secondly, on the government and defense pipeline, I'm wondering to what extent the central program helped Q4 government revenues. Was this a one-off, particularly strong quarter, or should we expect similar streams going forward? I just want to know how the phasing of this program works. Thirdly, on EBITDA margins, that came in a little bit below expectations. Again, we're going to get flat margins for the current year. Is this a function of mix that is detrimental with video declining and that obviously creates higher margins, or is there anything else at play there? Thank you very much.

Speaker #4: Was this a one off , particularly strong quarter , or should we expect similar streams going forward ? I just want to know how the phasing of this program works .

Speaker #4: And then, thirdly, on EBITDA margins that came in a little bit below expectations. Again, we're going to get flat margins for the current year.

Aleksander Peterc: Thirdly, on EBITDA margins, that came in a little bit below expectations. Again, we're going to get flat margins for the current year. Is this a function of mix that is detrimental with video declining and that obviously creates higher margins, or is there anything else at play there? Thank you very much.

Speaker #4: Is this a function that is detrimental, with video declining and that obviously creates higher margins? Or is there anything else at play there?

Speaker #4: Thank you very much

Speaker #2: Thank you for your questions . I will start to take the second question . I mean , the the , the the on the accounting of our contract with the French model , I mean , the that was an exceptional quarter in the sense that we have recognized revenues because the constellation was used during the year .

Jean-François Fallacher: Thank you for your questions. I will start to take the second question. On the accounting of our contract with the French MOD, that was an exceptional quarter in the sense that we have recognized revenues because the constellation was used during the year, and we signed this contract in June. Don't derive that the June revenues are going to flow that way each quarter in 2026, 2027. Clearly, that was the catch-up in Q4 of some usage that the French MOD did of this constellation in the year that passed. On your first question, first of all, we maintain our expectations in terms of revenues for full year 2029 to get between 1.5 and 1.7 billion in full year 2029. LEO revenues are expected to continue to accelerate. Again, we have a number of installations that are growing really in the right way.

Speaker #2: And we signed this contract in June. So don't assume that the June revenues are going to flow that way each quarter in 2026, 2027.

Speaker #2: So clearly, that was the catch-up in Q4 of some usage that the French model did of this constellation in the year that passed. On your first question, first of all, we maintain our expectations in terms of revenues for 2029 to be between €1.5 and €1.7 billion for the full year 2029.

Jean-François Fallacher: On your first question, first of all, we maintain our expectations in terms of revenues for full year 2029 to get between 1.5 and 1.7 billion in full year 2029. LEO revenues are expected to continue to accelerate. Again, we have a number of installations that are growing really in the right way.

Speaker #2: LEO renewals are expected to continue to accelerate. I mean, again, we have a number of installations that are growing really in the right way.

Speaker #2: We are ramping up; also, the backlog consumption is going in the right direction, and basically, a full year '27—actually, a slight growth—is explained by actually a '27 video revenues, which are expected to face another tough year.

Jean-François Fallacher: We are ramping up also the backlog. Consumption is going in the right direction. Basically, full year 2027 actually, slight growth is explained by actually 2027 video revenues, which are expected to face another tough year. As you remember, we had channel losses in Q4 2026. We had these 81, 82 satellites, which we actually abandoned. From full year 2028, we expect the video decline to abate to more average market trends, and therefore, growth will come next year. What you see is indeed the video is expected to have tough times again in 2027, the video GEO business. Your third question was about the EBITDA margin mix. Maybe I will pass the floor to Sébastien.

Speaker #2: And as you remember , we had channel losses in Q4 26 . We had this 81 , 82 satellites , which we actually abandoned .

Speaker #2: And from 27 , sorry , from full year 28 , we expect the video decline to abate to more average market trends and therefore , growth will come next year .

Jean-François Fallacher: From full year 2028, we expect the video decline to abate to more average market trends, and therefore, growth will come next year. What you see is indeed the video is expected to have tough times again in 2027, the video GEO business. Your third question was about the EBITDA margin mix. Maybe I will pass the floor to Sébastien.

Speaker #2: What you see is, indeed, that video is expected to have tough times again in 2017. The video geo business — and your third question was about the margin mix.

Speaker #2: Maybe I will pass the floor to Sebastian.

Speaker #1: Yes , I think you have . You have . Well , the answer into your question . We are still in a stage where the Leo business is actually not as profitable as the established geo one , with with acquisition costs and , and equipments that dilute that it will normalize throughout the year .

Sébastien Rouge: Yes, I think you have the answer into your question. We are still in a stage where the LEO business is actually not as profitable as the established GEO one with acquisition costs and the equipment that dilutes that. It will normalize throughout the year, but as we said, I think we have, in this transition, some pressure coming from this mix that remains.

Speaker #1: But as we said, I think we have in this transition some pressure coming from this mix that remains.

Speaker #4: Thank you very much. It's very clear.

Jean-François Fallacher: Thank you very much. I save time.

Aleksander Peterc: Thank you very much. I save time.

Speaker #3: The next question comes from Utsav Sinha from Alpha Value. Please go ahead.

Operator: The next question comes from Utsav Sinha, from AlphaValue. Please go ahead.

Speaker #5: Yeah . Hi . Good morning . Thank you for taking my question . I just had the question about your CapEx investments going from now onwards .

Utsav Sinha: Yeah. Hi, good morning. Thank you for taking my question. I just had the question about your CapEx investments going from now onwards. Initially, it was planned for the replenishment of generation 1 satellite, EUR 2 billion, but now you're projecting it to be around EUR 4 billion for your midterm CapEx investment. I just wanted to understand what would be your stable level CapEx ratio based on sales, because this EUR 4 billion looks quite heavy at the start. Also, I would like to understand the revenue you expect from the IRIS² program. I understand on a technical basis that Eutelsat is the leader there. I would just also like to understand what is the return that you are getting on this kind of CapEx investments. Thank you so much.

Speaker #5: So initially, it was planned for the replenishment of generation one satellite, so $2 billion. But now you're projecting it to be around $4 billion for your mid-term CapEx investment.

Speaker #5: So I just wanted to understand, what would be your, like, stable-level CapEx ratio based on sales? Because this $4 billion US looks quite heavy at the start.

Speaker #5: And also, I would like to understand the revenue you expect from the IT Square program. I understand from the technical basis that Eutelsat is the leader.

Utsav Sinha: Also, I would like to understand the revenue you expect from the IRIS² program. I understand on a technical basis that Eutelsat is the leader there. I would just also like to understand what is the return that you are getting on this kind of CapEx investments. Thank you so much.

Speaker #5: There, but I would also like to understand what is the return that you are getting on this kind of CapEx investments. Thank you so much.

Sébastien Rouge: Okay. What we clearly stated last year and at the beginning of the year was that we have a EUR 4 billion cumulative CapEx between fiscal year 2026 and fiscal year 2029, which includes, in real terms, the replenishment of the OneWeb constellation, which was indeed highlighted at around EUR 2 billion, and includes as well the early contribution of the IRIS² CapEx. It's important that obviously there will be some shift in phasing, this overall envelope accumulated over four years is confirmed, you have seen lower spending last year, and spending that will ramp up a little this year and the next two years will be important CapEx as well.

Speaker #1: Thanks . So what we what we clearly stated last year and at the beginning of the year was that we have a 4 billion cumulative CapEx between fiscal year 26 and fiscal year 29 , which includes , in real terms , the replenishment of the of the OneWeb , the OneWeb constellation , which was indeed highlighted at around 2 billion and includes as well the early contribution of the Iris CapEx .

Speaker #1: And and that's it's important that obviously , there will be some shift in phasing . But this overall envelope accumulated over four years is confirmed with with .

Sébastien Rouge: It's important that obviously there will be some shift in phasing, this overall envelope accumulated over four years is confirmed, you have seen lower spending last year, and spending that will ramp up a little this year and the next two years will be important CapEx as well. We are really maintaining this EUR 4 billion cumulative over four years, which is very well in line with the refinancing package that we have, so that we are sure that we have the necessary fund to engage this CapEx.

Speaker #1: You have seen a lower spending last year and spending that will ramp up a little this year . And , and , and the next two years will be important CapEx as well .

Speaker #1: But we are really maintaining this €4 billion cumulative over four years, which is very well in line with the refinancing package that we have.

Sébastien Rouge: We are really maintaining this EUR 4 billion cumulative over four years, which is very well in line with the refinancing package that we have, so that we are sure that we have the necessary fund to engage this CapEx.

Speaker #1: So that we are sure that we have the necessary funds to engage this CapEx.

Speaker #5: Yeah . Thank you so much . But still , I would say like 1 billion every year , like for four years , 4 billion .

Utsav Sinha: Yeah, thank you so much. Still, I would say EUR 1 billion every year, like for four years, EUR 4 billion. EUR 1 billion, your revenue is at around EUR 1.2 billion now. As a percentage of sales, it's quite high. When do you think it will stabilize?

Speaker #5: So, 1 billion, and your revenue is at around $1.2 billion now. So, as a percentage of sales, it's quite high.

Speaker #5: So, when do you think it will stabilize?

Speaker #1: Yes . That's we we are well aware that its important . We are well aware that we are in a very specific period in , in the life of Eutelsat , where we have to make sure that that the current constellation is is up and running and that we transition to the next generation of constellation .

Sébastien Rouge: Yes. We are well aware that it is important. We are well aware that we are in a very specific period in the life of Eutelsat, where we have.

Jean-François Fallacher: To make sure that the current constellation is up and running and that we transition to the next generation of constellation. That is really the reason why we have put in place this financing package, including the large capital increase, so that we have the means to, I would say, in a condensed timing, ensure quality of service for our customers that are more important every day and every month after the other, and at the same time, prepare the future, the next generation in the European frame. We agree, and very intensive timing, but we have been prepared for that.

Speaker #1: So that's I mean , that's really the reason why we have put in place this financing package in including the large capital increase , so that we have the means to , I would say , a in a condensed timing , ensure quality of service for our customers that are more important every , every day and every month after the other .

Speaker #1: And at the same time, prepare the future, the next generation, in a European frame. So, yes, we agree, and it's a very intensive timing, but we've been prepared for that.

Speaker #5: Okay. Thank you so much. That's clear.

Utsav Sinha: Okay. Thank you so much. That is clear.

Speaker #3: The next question comes from Stephane Boyadjian from Otto BHF. Please go ahead.

Operator: The next question comes from Stéphane Beyazian from Oddo BHF. Please go ahead.

Speaker #6: morning . Thank you . Yes , I'm just wondering to follow up on Iris square if there is any significant deviation or change to the initial calculation that you that you provided , especially in terms of future revenue stream , I guess , you know , the , the CapEx investment is something that we we have , but probably we have a little less a little more uncertainty perhaps on the revenue stream .

Stéphane Beyazian: Good morning. Thank you. Yes, I'm just wondering to follow up on IRIS² if there is any significant deviation or change to the initial calculation that you provided, especially in terms of future revenue stream. I guess, the CapEx investment is something that we have, but probably we have a little more uncertainty perhaps on the revenue stream. I was just wondering in all the discussion, if you've been able to get more commitments, more let's say, conviction on the future revenue stream. Second question, I was just wondering whether you can provide us a little more technical features on the new OneWeb and IRIS² satellites. I'm thinking of speed, possible download speed and capacity from those constellation. Finally, I was just wondering whether you have some takeaways from the Starlink IPO. There's been the disclosure of a lot of things, their financial numbers, their strategy, market reaction.

Speaker #6: So I was just wondering , in all the discussions , if you've been able to get more commitment , a more , let's say , conviction on the future revenue stream .

Speaker #6: Second question , I was just wondering whether you can provide us a little more technical features on the new one web and Iris square satellites and thinking of speed , possible download speed and capacity from from from those constellation .

Stéphane Beyazian: Second question, I was just wondering whether you can provide us a little more technical features on the new OneWeb and IRIS² satellites. I'm thinking of speed, possible download speed and capacity from those constellation. Finally, I was just wondering whether you have some takeaways from the Starlink IPO. There's been the disclosure of a lot of things, their financial numbers, their strategy, market reaction. I was just wondering whether there are any surprise or any takeaway that can be interesting to Eutelsat. Thank you.

Speaker #6: And finally, I was just wondering whether you have some takeaways from the Starlink IPO. You know, there's been the disclosure of a lot of things.

Speaker #6: You know , there are financial numbers there , strategy , you know , market reaction . I was just wondering whether there are any surprises or any takeaway that can be interesting to Eutelsat .

Stéphane Beyazian: I was just wondering whether there are any surprise or any takeaway that can be interesting to Eutelsat. Thank you.

Speaker #6: Thank you .

Speaker #7: Okay . Thanks , Stefan . It's Joe here . So Jean-Francois said the the iris announcement is obviously breaking news . We will be releasing our own press release with detail .

Joanna Darlington: Okay. Thanks, Stéphane. It's Jo here. Jean-François said the IRIS announcement is obviously breaking news. We will be releasing our own press release with detail. I mean, they've obviously announced the global constellation. We will be communicating like we did last time with details which are more specific to ourselves. I think what I would ask everybody to do is to wait for that communication, and then we'll be able to come back to you at a later stage, and answer questions on IRIS². No further communication on IRIS in this call, please. Let's focus on the results. I'll let Jean-François comment on your Starlink question.

Speaker #7: I mean , they've obviously they have announced the global constellation . We will be communicating like we last time with details , which are more specific to ourselves .

Joanna Darlington: We will be communicating like we did last time with details which are more specific to ourselves. I think what I would ask everybody to do is to wait for that communication, and then we'll be able to come back to you at a later stage, and answer questions on IRIS². No further communication on IRIS in this call, please. Let's focus on the results. I'll let Jean-François comment on your Starlink question.

Speaker #7: So I think what , what what I would ask everybody to do is to wait for that communication . And then we can , we'll be able to come back to you at a later stage and answer questions on iris squared .

Speaker #7: So no , no further communication on iris in this call , please . Let's focus on the results . I'll let Jean-Francois comment on your Starlink question .

Speaker #2: Yes . I mean , thanks , Stefan , for the question on Starlink IPO . This is this was of course interesting because this is the first time they had to publish a prospectus .

Jean-François Fallacher: Yes. Thanks, Stéphane, for the question on Starlink IPO. This was of course interesting because this is the first time they had to publish a prospectus and as you know, two days ago, they published their first quarterly results. This is of course interesting because it's a way to get more information about SpaceX Starlink. First thing we've derived is, and that was a surprise, in the prospectus, we've seen that the Client A, so-called Client A, which is representing almost 25% of their revenues, obviously the federal state, the US federal state. It's clear the level of support SpaceX and Starlink are getting from the US government. This is the first thing that struck us.

Speaker #2: And as you know , two days ago , they published their first , first quarter quarterly results . So this is of course interesting because it's a way to get more information about about the SpaceX's Starlink .

Speaker #2: So the first thing we've derived is there was a surprise . I mean , the prospectus , we've seen that the client , a so-called client , A , which is representing almost 25% of their revenues , is obviously the federal state , the US federal , state .

Jean-François Fallacher: First thing we've derived is, and that was a surprise, in the prospectus, we've seen that the Client A, so-called Client A, which is representing almost 25% of their revenues, obviously the federal state, the US federal state. It's clear the level of support SpaceX and Starlink are getting from the US government. This is the first thing that struck us.

Speaker #2: So we've been I mean , it's clear the level of support basic and Starlink are getting from from from the US government . So this is the first thing that struck us .

Speaker #2: I think the second thing that struck us is when we look at the valuation, we see that it is extremely undervalued because we are, as I repeat, the second operational low orbit constellation existing today in the world.

Jean-François Fallacher: I think the second thing that struck us is when we look at their valuation, we see that Eutelsat is extremely undervalued because we are, as I repeat, the second operational low Earth orbit constellation existing today in the world. You see with the results we are just publishing the growth that we are having. Basically, the strategy that the board of Eutelsat took a few years ago and the previous management was the right one because, this 70% growth year on year on our OneWeb constellation is actually, as we see, compensating actually the decline in legacy GEO business. Again, the learning when we look at the valuation of Starlink is that we believe we are undervalued as a company looking at the asset we are currently running and operating.

Speaker #2: And you see with the results, we are just publishing the growth that we are having, and basically the strategy that the Board of Eutelsat took a few years ago.

Jean-François Fallacher: Basically, the strategy that the board of Eutelsat took a few years ago and the previous management was the right one because, this 70% growth year on year on our OneWeb constellation is actually, as we see, compensating actually the decline in legacy GEO business. Again, the learning when we look at the valuation of Starlink is that we believe we are undervalued as a company looking at the asset we are currently running and operating.

Speaker #2: And the previous management was the right one , because this 70% growth year on year on on our new constellation is actually , as we see compensating actually the decline in legacy geo business .

Speaker #2: So again , I mean , learning , when we look at the valuation of Starlink , is that we believe we are undervalued as a company .

Speaker #2: Looking at the asset we are currently running and operating,

Speaker #6: Thank you . And sorry , just the other question on , you know , any technical features you could share with us on on the OneWeb replacement and I , I guess the bottom line of my question is this Starlink is yeah .

Stéphane Beyazian: Thank you. Sorry, just the other question on any technical features you could share with us on the OneWeb replacement and IRIS². I guess the bottom line of my question is the new generation of Starlink is probably.

Jean-François Fallacher: Joanna was saying we will communicate later today on this, I can already say that this is going to be really a next generation and a cutting-edge technological constellation, which will have obviously, if I'm quoting just a few features, inter-satellite links. It will be a multiple layer constellation, which will be the first one of this kind. It will be a LEO-MEO constellation. MEO will be also serving besides the ground station in the Earth as the backbone of the constellation. Very advanced constellation. It will provide us much more capacity than we have today on OneWeb. Also, I think a feature I want to state, because I think it's important, we use 5G NTN technology. For IRIS², we want also to normalize the technology we want to use.

Speaker #2: We're , we're saying we will we will communicate later today on this . But but I can already say that this is going to be really a next generation .

Speaker #2: And a cutting edge technology , technological constellation , which will have obviously , if I'm quoting just a few features , interlink satellites , it will be a multiple layer constellation , which will be the first one of this kind .

Speaker #2: So there will be a , it will be a constellation . Mio will be also a serving . Besides the ground station in the earth as the backbone of the constellation .

Jean-François Fallacher: MEO will be also serving besides the ground station in the Earth as the backbone of the constellation. Very advanced constellation. It will provide us much more capacity than we have today on OneWeb. Also, I think a feature I want to state, because I think it's important, we use 5G NTN technology. For IRIS², we want also to normalize the technology we want to use.

Speaker #2: So very advanced constellation , it will provide us much more actually capacity than we have today on OneWeb and also , I think a feature I want to state because it's important , it will use 5G end to end technology .

Speaker #2: So for high risk , where we want also to normalize the technology , we want to use , this is also a way to fight against the American giants , because today each of the technology used by ourselves on OneWeb , by actually Amazon or by Starlink are proprietary , full proprietary technologies going to normalize technologies such as 5G , end to end .

Jean-François Fallacher: This is also a way to fight against the American giants, today, each of the technology used by ourselves on OneWeb by Amazon or by Starlink are full proprietary technologies. Going to normalize technologies such as 5G NTN will also help bringing the cost down, having antennas which will be cheaper and of a smaller size. Just to give you in a nutshell, a few hints of what IRIS² will be looking like. Now we are really, since the announcement just this morning, entering in the new phase. It's a major milestone for the project. It's a new phase. It's an operational phase where we will invest. The European Commission will massively invest alongside ourselves in order to start contracting with the prime subcontractors, which are going to be Airbus, Thales Alenia Space, OHB, and Aerospacelab.

Speaker #2: We will also help bringing the cost down , having , let's say , a antennas , which will be actually cheaper and of a smaller size .

Speaker #2: So just to give you in a nutshell , a few hints of what I will be looking like . And now we are really , since the announcement of just this morning , entering in a new phase , it's a major milestone for the project .

Jean-François Fallacher: Now we are really, since the announcement just this morning, entering in the new phase. It's a major milestone for the project. It's a new phase. It's an operational phase where we will invest. The European Commission will massively invest alongside ourselves in order to start contracting with the prime subcontractors, which are going to be Airbus, Thales Alenia Space, OHB, and Aerospacelab.

Speaker #2: It's a new phase. It's an operational phase where we will invest—the European Commission will massively invest alongside ourselves— in order to start contracting with the prime subcontractors, which are going to be Airbus tails.

Speaker #2: Space OBE and Aerospace Lab . So the contracts will are will will start in in the coming days to really start building this constellation .

Jean-François Fallacher: The contracts will start in the coming days to really start building this constellation. If we compare that to a race, I think the starter has just begun this morning, and we are starting to run now full speed to reach this operational constellation as soon as we will be able to have it.

Speaker #2: So if we compare that to a race, I think the starter has just begun this morning. And we are starting to run now at full speed to reach this operational constellation.

Speaker #2: As soon as we are able to have it.

Speaker #6: Great . Thank you

Stéphane Beyazian: Great. Thank you.

Speaker #3: The next question comes from Ben Rickett from New Street Research. Please go ahead.

Operator: The next question comes from Ben Rickett from New Street Research. Please go ahead.

Speaker #4: Hi there .

Ben Rickett: Hi there. Thank you. I have two questions, please. The first question, just coming back to the 2029 guidance. Your LEO revenue was obviously very strong this year, but you are guiding for that to decelerate to 30% growth next year. I think that would probably need to re-accelerate to get to the 2029 guidance. Can you talk a bit about what gives you confidence that LEO revenue growth could accelerate in that way? Then I had a second question. There has been some talk about the potential for cooperation between the smaller LEO constellations. This is something that Telesat has spoken about, and I think it was also a NATO alliance to facilitate some interoperability between the constellations. I am just interested in your thoughts, whether that is technically possible or whether that would be desirable, that sort of cooperation. Thank you.

Speaker #8: Thank you . I have two questions . Please . The first question just coming back to the 2029 guidance . So your Leo revenue is obviously very strong this year , but you are guiding for that to decelerate to 30% growth next year .

Speaker #8: And I think that would probably need to accelerate to get to the 2029 guidance. Could you talk a bit about what gives you confidence that LEO revenue growth could accelerate in that way?

Speaker #8: And then I had a second question—some talk about the potential for cooperation between the smaller LEO constellations. So this is something that Telesat has spoken about, and I think there was also a NATO alliance to facilitate some interoperability between the constellations.

Ben Rickett: This is something that Telesat has spoken about, and I think it was also a NATO alliance to facilitate some interoperability between the constellations. I am just interested in your thoughts, whether that is technically possible or whether that would be desirable, that sort of cooperation. Thank you.

Speaker #8: So, just interested in your thoughts—whether that is technically possible, or whether that would be sort of desirable, that sort of cooperation.

Speaker #8: Thank you

Speaker #7: Thanks , Ben . I'll take the first question and then pass the second to to Jean-Francois . So I think I mean , you know , we we don't see our Leo growth decelerating .

Joanna Darlington: Thanks, Ben. I'll take the first question and then pass the second to Jean-François. I think we don't see our LEO growth decelerating. Obviously, when you've grown by 80% and then 70% in the past two years, it's not exponential because obviously you're growing but off an increasingly higher base. I think the other thing is we do try to give ourselves a bit of headroom. If you remember, we were guiding to 50% LEO growth this year. It turned out to be more like 70%. We've reiterated our 2028, 2029 guidance, and that means that we're comfortable with this and that we do expect the LEO to grow sufficiently to offset the decline in the GEO verticals.

Speaker #7: I mean , you know , obviously when you've grown by , you know , by 80% and then 70% in the past two years , it's , you know , I mean , it's , it's not exponential because obviously you're growing , but offer an increasingly higher base .

Speaker #7: You know, I think the other thing is we do try to give ourselves a bit of headroom. If you remember, we were guiding to 50%.

Joanna Darlington: If you remember, we were guiding to 50% LEO growth this year. It turned out to be more like 70%. We've reiterated our 2028, 2029 guidance, and that means that we're comfortable with this and that we do expect the LEO to grow sufficiently to offset the decline in the GEO verticals.

Speaker #7: Leo growth this year . It turned out to be to be more like 70% . So we've reiterated our 2020 829 guidance . And that means that that we're comfortable with it and that we do expect that the Leo to grow sufficiently to offset the the decline in in the geo verticals

Jean-François Fallacher: Yes. On your question about interoperability, I was saying on IRIS², we are going to go for 5G NTN. This is a normalized technology. For that reason, this is opening potentially some possibilities for interoperability based on the UT technology used. Nonetheless, this is still to be worked out and still to be proven. I have read, like you, the declarations of Telesat. We will need to materialize that in the future. At this stage, none of the constellations which are existing are interoperable, unfortunately. Or fortunately, I don't know, but this is the case today.

Speaker #2: On , on your question about interoperability , I mean , I was I was saying I mean , we are we are going to go for 5G end to end .

Speaker #2: I mean , this is a normalized technology . I mean , for that reason , I mean , this is opening potentially some of some possibilities for interoperability based on the technology used .

Speaker #2: I mean , nonetheless , this is still to be worked out and still to be proven . So I have read like you , the declarations of Telesat .

Speaker #2: So we will need to materialize that in the future. At this stage, none of the constellations which are existing are interoperable.

Speaker #2: Unfortunately or fortunately, I don't know, but this is the case today.

Speaker #8: That's great. Thank you.

Ben Rickett: That's great. Thank you.

Speaker #3: As a reminder, if you wish to ask a question, please dial the pound key, five, on your telephone keypad. The next question comes from Roshan Ranjeet from Deutsche Bank.

Operator: As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad. The next question comes from Roshan Ranjit from Deutsche Bank. Please go ahead.

Speaker #3: Please go ahead .

Speaker #9: Oh great morning everyone . I've got three questions as well . Please . Jean-Francois , you've illustrated the the kind of government opportunity and we've seen quite a lot of news flow over recent weeks , particularly the Poland MoU .

Roshan Ranjit: Great. Morning, everyone. I've got three questions as well, please. Jean-François, you've illustrated the kind of government opportunity, and we've seen quite a lot of news flow over recent weeks, particularly the Poland MOU. How should we think about further contracts similar to the NEXUS framework tied in with, I guess, IRIS²? Should we think about future government contracts being on IRIS², or could we see something similar to NEXUS on the existing Eutelsat network. Just tied to that, how should we think about the timing of the upside to the NEXUS framework? Because as you said, there's up to EUR 350 million. Is that something which we could hear in the next 12 months, or we think might maybe a bit longer? Secondly, strong performance in fixed mobile connectivity, and that's supported the 70% LEO growth.

Speaker #9: How should we think about further contracts similar to the framework tied in with , I guess , iris squared ? Should we think about future government contracts being on iris squared , or could we see something similar to Nexus on the existing Eutelsat network ?

Speaker #9: And just tied to that, how should we think about the timing of the upside to the Nexus framework? Because as you said, it's up to €350 million.

Roshan Ranjit: Just tied to that, how should we think about the timing of the upside to the NEXUS framework? Because as you said, there's up to EUR 350 million. Is that something which we could hear in the next 12 months, or we think might maybe a bit longer? Secondly, strong performance in fixed mobile connectivity, and that's supported the 70% LEO growth.

Speaker #9: I mean, is that something which we could hear in the next 12 months, or do we think maybe a bit longer? Secondly, strong performance in fixed and mobile connectivity.

Speaker #9: And that's supported the 70% LEO growth. Is it possible to get a sense of the service versus terminal mix in there?

Roshan Ranjit: Is it possible to get a sense of the service versus terminal mix in there? Because again, I guess that will support the future growth profile in terms of the service revenue ramping up. Lastly, just on the midterm guidance, now we've talked about the revenue angle. I've noticed that the margin guidance was toned down a bit. What is the reason behind that? Is that the kind of GEO weakness or is that again, the equipment versus service mix? Thank you.

Speaker #9: Because again , I guess that will support the future growth profile in terms of the service revenue ramping up . And lastly , just on the mid-term guidance , I know we've talked about the revenue angle .

Speaker #9: I've noticed that the margin guidance was toned down a bit . What is the reason behind that is that the kind of geo weakness , or is that , again , the equipment versus service mix ?

Speaker #9: Thank you .

Speaker #2: Thank you very much . On the service slash terminal revenues , Leo , we are not communicating that . So I will not comment further on your point that it's been slightly turned down for the EBITDA in 29 .

Jean-François Fallacher: Thank you very much. On the service/terminal revenues view, we are not communicating that. I will not comment further. On your point that it's been slightly toned down for the EBITDA in 2029, it's true, and this is actually linked to mostly GEO which as we just said, for full year 2027 is going to unfortunately continue on a declining trend, which will be similar to the one we have seen this year. We have had, as you know, some further Russian sanctions, which are also pushing down GEO video revenues. You have seen as well in the communication we are giving, if you make the calculation yourself, that we have actually a decline also in the GEO connectivity business which is a bit stronger than what we expected. This is explaining actually this 60% guidance on EBITDA in 2028, 2029.

Speaker #2: It's true . And this is actually linked to mostly Geo , which which which as we just said , for full year 27 is going to unfortunately continue on a on a on a declining on a declining trend , which will be similar to the one we are we have seen this year .

Speaker #2: We have had , as you know , some further Russian sanctions , which are also pushing down the geo video revenues . And you have seen as well in the in the communication we are giving , if you make the calculation yourself that we have actually decline also in the geo connectivity business , which is a bit stronger than what we expected .

Jean-François Fallacher: You have seen as well in the communication we are giving, if you make the calculation yourself, that we have actually a decline also in the GEO connectivity business which is a bit stronger than what we expected. This is explaining actually this 60% guidance on EBITDA in 2028, 2029.

Speaker #2: So this is explaining actually this 60% guidance on EBITDA in 2028 , 29 . Now on your question on , let's say , contracts like Nessus and how they will develop , I mean , now , obviously that is entering in operational phase .

Jean-François Fallacher: Now on your question on, let's say, contracts like NEXUS and how they will develop. Now, obviously that IRIS² is entering in an operational phase. We see clearer. In terms of expectations is that we are expecting actually our current constellation, OneWeb, to be operational until 2034. They will be able, obviously, this constellation will be able to continue carrying services until 2034. Starting mid-2032, we will start to migrate customers to IRIS² commercial capacity because as you understood well, IRIS² will be both, I would say, hard gov military constellation and a commercial constellation. That's the timeline. And we will and sorry, IRIS² commercial services is clearly the Gen 2 of OneWeb. We are going to migrate all our customer base, and this is going to be over with the current OneWeb Gen 1 end of 2034.

Speaker #2: I mean , we see clearer . So in terms of are expectations , is that we are expecting actually our current constellation , OneWeb , to be operational until 2034 .

Speaker #2: So they will be able , obviously , this constellation will be able to continue carrying services until 2034 . And starting mid 2032 , we will start to migrate customers to high risk commercial , commercial capacity because as you understood well , high risk , there will be both .

Jean-François Fallacher: Starting mid-2032, we will start to migrate customers to IRIS² commercial capacity because as you understood well, IRIS² will be both, I would say, hard gov military constellation and a commercial constellation. That's the timeline. And we will and sorry, IRIS² commercial services is clearly the Gen 2 of OneWeb. We are going to migrate all our customer base, and this is going to be over with the current OneWeb Gen 1 end of 2034.

Speaker #2: I would say Hardgrove military constellation and a commercial constellation . So that's the timeline . So and we will and sorry , I square commercial services is clearly the gen2 of OneWeb .

Speaker #2: So, we are going to migrate all our customer base, and this is going to be over with the current Gen 1, R OneWeb, by the end of 2034.

Speaker #2: We are going to migrate all our customers , commercial customers to actually the high risk constellation commercial payload . And what we believe clearly is that despite the fact that high risk will be clearly providing hardgrove ardent military services , there will still be space for , I would say , commercial services because what why we we we have signed this contract with the French Mod and actually why we see actually a quite strong usage of our services in Ukraine is that basically the conflict in Ukraine has been showing that commercial services are actually working extremely well and are much less expensive than military and Argo Communication services .

Jean-François Fallacher: We are going to migrate all our customers, commercial customers, to actually the IRIS² constellation commercial payload. What we believe clearly is that despite the fact that IRIS² will be clearly providing hard gov, hardened military services, there will still be space for, I would say, commercial services because why we have signed this contract with the French MOD and actually why we see actually quite a strong usage of our services in Ukraine is that basically the conflict in Ukraine has been showing that commercial services are actually working extremely well and are much less expensive than military and hard gov communication services. If I may say so, the doctrine has changed and MODs in the world are now open to buy dual services.

Jean-François Fallacher: Actually why we see actually quite a strong usage of our services in Ukraine is that basically the conflict in Ukraine has been showing that commercial services are actually working extremely well and are much less expensive than military and hard gov communication services. If I may say so, the doctrine has changed and MODs in the world are now open to buy dual services.

Speaker #2: So if I may say so , the doctrine has changed and in the world are now open to buy duel services . So the services that were not originally thought of for military usage , but that can be of a of a , I would say that can be pertinent .

Jean-François Fallacher: The services that were not originally thought of for military usage, but that can be of a, I would say, that can be pertinent. This is what you see in the drone segment, for instance, and in, of course, also the commercial communication segment. We believe that those two will still coexist in the long term. Therefore, we are very confident that our revenues, even in the government segment and in the military, the dual, let's say, in our dual business, are going to continue beyond actually 2030 and beyond the arrival of the military hard gov services that will be provided by IRIS².

Speaker #2: This is what you see in the drone segment . For instance , and in of course , also the commercial communication segment . So we believe that those two will still coexist in the long term and therefore we are very confident that our revenues , even in the government segment and in the military , in the military , in the duel , let's say in our duel business , are going to to continue beyond actually 2030 and beyond the the arrival of the military hard will be provided by high risk

Speaker #9: That's great. Thank you very much.

Roshan Ranjit: That's great. Thank you very much.

Speaker #3: The next question comes from Stefan Boyadjian from Otto VHF. Please go ahead.

Operator: The next question comes from Stéphane Beyazian from Oddo BHF. Please go ahead.

Speaker #6: Yes . Thank you . I think last quarter or two quarters ago , we discussed about some some business opportunities that you were looking at , such as spelling , selling some payload capacity or selling some ground infrastructure capacity .

Stéphane Beyazian: Yes, thank you. I think last quarter or two quarters ago, we discussed about some business opportunities that you were looking at, such as selling some payload capacity or selling some ground infrastructure capacity. We also discussed the highways industry. I was just wondering whether you can update us whether you have identified possible future new revenue streams. Thank you.

Speaker #6: We also discussed the railways industry . I was just wondering whether you can update us , whether you you have identified a possible future new revenue streams .

Speaker #6: Thank you

Speaker #2: So the answer is yes Actually , we have signed a first contract , but this one is is confidential . So we cannot communicate it .

Jean-François Fallacher: The answer is yes. Actually, we have signed a first contract, but this one is confidential, so we cannot communicate it. We have signed a first contract for hosted payload, and we have a very nourished sales pipe on hosting payloads. We see a lot of appetite in a number of geographies, not only in Europe but across the world, for actually this service. I remind that this is a service we are offering on the 340 satellites tranche, the second tranche that we have ordered in January last year to Airbus. I confirm that the pipe is extremely nourished, and we hope to be able to make announcements in the coming months around this. The second, let's say, side business where we see also a lot of appetite is around our ground. Because as you know, we have a number of teleports.

Speaker #2: But we have signed the first contract for hosted payload and we have a very nourished pipe sales pipe on hosting payloads . We see a lot of appetite in a number of geographies , not only in Europe , but across the world , for actually a this service .

Jean-François Fallacher: We see a lot of appetite in a number of geographies, not only in Europe but across the world, for actually this service. I remind that this is a service we are offering on the 340 satellites tranche, the second tranche that we have ordered in January last year to Airbus. I confirm that the pipe is extremely nourished, and we hope to be able to make announcements in the coming months around this.

Speaker #2: I remind you that this is a service we are offering on the 340-satellite tranche, the second tranche that we ordered in January last year from Airbus.

Speaker #2: And I confirm that the pipe is extremely nourished, and we hope to be able to make announcements in the coming months around this.

Speaker #2: And the second , let's say , side side business , which which also where we see , also a lot of appetite is around our ground because , as you know , we have a number of teleports , we have more than 41 , 42 operational ground stations for OneWeb across the entire planet .

Jean-François Fallacher: The second, let's say, side business where we see also a lot of appetite is around our ground. Because as you know, we have a number of teleports. We have more than 42 operation ground stations for OneWeb across the entire planet. These are quite wide areas, a few hectares of fields with 8 to 12 antennas, which are obviously key to have our OneWeb constellation operational all across the planet. We see a lot of appetite to host additional antennas or, let's say, to sweat these assets.

Jean-François Fallacher: We have more than 42 operation ground stations for OneWeb across the entire planet. These are quite wide areas, a few hectares of fields with 8 to 12 antennas, which are obviously key to have our OneWeb constellation operational all across the planet. We see a lot of appetite to host additional antennas or, let's say, to sweat these assets. We have been structuring ourselves in order to derive as much as possible additional revenues from this asset of ours, which, as you remember, last year we were about to sell, but which has been actually stopped by the lack of authorization from the French government. I think it has wakened us up in terms of the capacity to derive revenues from this asset, and we have structured ourselves internally to boost this additional business.

Speaker #2: These are quite wide areas . Few hectares of , of , of fields with 8 to 12 antennas which , which are obviously a key to have our own web constellation operational all across the planet .

Speaker #2: And we see a lot of appetite to host additional antennas or let's say , to sweat these assets . And we are we have been structuring ourselves in order to derive as much as possible additional revenues from this asset of ours , which , as you remember last year , we were about to solve , but which has been actually stopped by the lack of authorization from the French gov .

Jean-François Fallacher: We have been structuring ourselves in order to derive as much as possible additional revenues from this asset of ours, which, as you remember, last year we were about to sell, but which has been actually stopped by the lack of authorization from the French government. I think it has wakened us up in terms of the capacity to derive revenues from this asset, and we have structured ourselves internally to boost this additional business.

Speaker #2: But I think it has woken us up in terms of the capacity to derive revenues from this asset. And we have structured ourselves internally to boost this additional business.

Speaker #6: Thank you. And what about the railway industries? And there are some potential, like for...

Stéphane Beyazian: Thank you. What about the railway industries? There are some potential like the integration-

Jean-François Fallacher: Yeah.

Stéphane Beyazian: -in France.

Speaker #2: Things . Yes . On the rail . Yes . We see we see potential more for for the French around this call . We are engaged for now a good year with SNCF on on how they will actually equip potentially the fast trains in France .

Jean-François Fallacher: Thanks. Yes. On the rail, yes, we see potential. More for the French around this call, we are engaged for now a good year with SNCF on how they will actually equip potentially the fast trains in France. We've been trying to understand their needs more precisely to be ready at the moment they will launch an RFP and that I understand should come pretty soon. We will be ready. I'm very happy to report that actually we are going also to answer an RFP for Renfe, which is the Spanish trains. We have conducted actually two weeks ago, a very successful test with PKP, which is the Polish railways, on a fast train going from Warsaw to Kraków. That train we have equipped in one of our rail antenna.

Speaker #2: And , and we've been trying to understand their needs more precisely to be ready at the moment . They will launch an RFP and that , I understand , should come .

Speaker #2: Pretty soon . So we will be ready . I'm very happy to report that actually we did . We are going also to answer an RFP for Renfe , which is the Spanish trains , and we have conducted actually two weeks ago , a very successful test with PKP , which is the Polish railways on a fast train going from Warsaw to Krakow , that we that train we have equipped of one of our rail antenna .

Jean-François Fallacher: We will be ready. I'm very happy to report that actually we are going also to answer an RFP for Renfe, which is the Spanish trains. We have conducted actually two weeks ago, a very successful test with PKP, which is the Polish railways, on a fast train going from Warsaw to Kraków. That train we have equipped in one of our rail antenna.

Speaker #2: We have made progress because we have certified an antenna for the rail . Actually to be precise , two months ago . So it's pretty , pretty fresh .

Jean-François Fallacher: We have made progress because we have certified an antenna for the rail, actually to be precise, two months ago. It's pretty fresh. We just tested it two weeks ago, very successfully, in one of the wagons of this train which is also paving the way for PKP in Poland to start a tender and to choose actually to complement, I would say, the classical mobile connectivity on rail by satellite connectivity. We obviously will be present. Of course, there will be competition, to be clear. We will fight and we will do our utmost to convince these rail entities that the OneWeb Eutelsat solution is the right one for them.

Speaker #2: We just tested it two weeks ago , very successfully in one of the variants of this train , which is also paving the way for pickup in Poland to start a tender and to choose actually to complement , I would say , the classical mobile connectivity on on rail by satellite connectivity .

Speaker #2: And we obviously will be present. Of course, there will be competition, to be clear, but we will fight and we will do our utmost to convince these rail entities that the OneWeb solution and the OneWeb-Eutelsat solution is the right one for them.

Speaker #6: Thank you . And if I sorry about that . Just can just follow up a little bit on that . Just to understand the size of , of the market or the size of these contract for now , those companies are looking to put connectivity in , you know , some just a couple of major trend lines .

Stéphane Beyazian: Thank you. If I, sorry about that, can just follow up a little bit on that, just to understand the size of the market or the size of these contracts. For now, those companies are looking to put connectivity in just a couple of major train lines, or we are talking about 20% to 40% of their trains. I'm just trying to understand what we're talking about.

Speaker #6: Or we are talking about , you know , 20% , 40% of , of their trains . I'm just trying to understand what we're talking about .

Speaker #2: Just to be clear , I mean , this is a sizable market because what we understand in this company are really looking for equipping a vast majority of their trains , whether they're those are fast trains or whether those are more , let's say , regional classical trains .

Jean-François Fallacher: Just to be clear, this is a sizable market. What we understand is these company are really looking for equipping a vast majority of their trains, whether those are fast trains or whether those are more, let's say, regional classical trains. Clearly, the feedback we are getting from the rail is that, as in aviation, the customer experience and the customer satisfaction on the specific item, which is onboard connectivity, is a black spot, I would say. That's what they are saying. This is really a topic that they would wish to solve. For those of you which are taking the train between Paris and London, you are probably experiencing once you cross the channel, really awful connectivity. We have ourselves this experience. Clearly, the expectations of these rail companies are actually to equip a vast majority of their train.

Speaker #2: So clearly , you know , the feedback we are getting from the rail is that , as in aviation . I mean , the customer experience and the customer satisfaction on the specific item , which is on board connectivity is a black spot .

Speaker #2: I would say that's what they are saying . Also , this is a this is really a topic that they will wish to , to solve .

Speaker #2: I mean , for those of you which are taking the train between Paris and London , and you probably experiencing once you cross the channel , a really awful connectivity .

Jean-François Fallacher: For those of you which are taking the train between Paris and London, you are probably experiencing once you cross the channel, really awful connectivity. We have ourselves this experience. Clearly, the expectations of these rail companies are actually to equip a vast majority of their train.

Speaker #2: So, we have ourselves this experience, so clearly, I mean, the expectations of these rail companies are actually to equip a vast majority of their trains.

Speaker #2: I mean , I'm talking for those who are discussing SNCF , Renfe in Poland . I mean . But as you know , I mean , there are each country has its own company .

Jean-François Fallacher: I'm talking for those whom we are discussing, SNCF, Renfe, PKP in Poland. As you know, each country has its own company. We are also in discussions with British Rail, each country has its own company. The market. The overall market is vast. Once more, the OneWeb constellation is flying all across the planet. I didn't want to tell you guys, but we have already equipped trains in Kazakhstan, and we have trains which are equipped in Democratic Republic of Congo, for instance. Well, I'm not sure these are very valid reference for speed trains, but nonetheless, there are going to be opportunities in the rail all across the planet in many different geographies. We see that as alongside maritime and alongside aero, we see that as a potential very interesting segment, and this is a very sizable one.

Speaker #2: We are also in discussions with British Rail, and each country has its own company. So the market, the overall market, is vast.

Speaker #2: And once more , I mean the one constellation is , is flying across the planet . So I didn't want to to , to tell you guys , but we have already equipped trains in Kazakhstan and , and we have trains which are equipped in , in Democratic Republic of Congo , for instance .

Speaker #2: Well , I'm not sure these are very valid reference for speed trains , but nonetheless , there are going to be opportunities in the rail all across the planet in many different geographies .

Jean-François Fallacher: Well, I'm not sure these are very valid reference for speed trains, but nonetheless, there are going to be opportunities in the rail all across the planet in many different geographies. We see that as alongside maritime and alongside aero, we see that as a potential very interesting segment, and this is a very sizable one.

Speaker #2: So we see that as a alongside maritime and alongside air aero , we see that as a as a potential . Very interesting segment .

Speaker #2: And this is a very sizable one.

Speaker #6: That's very clear. Thank you for that.

Stéphane Beyazian: That's very clear. Thank you for that.

Joanna Darlington: Thanks.

Speaker #7: Thanks .

Speaker #3: Ladies and gentlemen, thank you for your participation. This concludes our conference. You may now disconnect. We wish you a pleasant day.

Operator: Ladies and gentlemen, thank you for your participation. This concludes our conference. You may now disconnect. We wish you a pleasant day.

Operator: The host has ended this call. Goodbye.