QUESTIONS / ANSWERS
:: Eutelsat Communications and the Stock Exchange
:: Eutelsat Communications and Dividends and Taxation
:: Eutelsat Communications and its Organisation
:: Eutelsat Communications and its General Assembly
Eutelsat Communications and the Stock Exchange
:: At what price was Eutelsat Communications share offered on the stock exchange?:: Where can I find documents relative to the IPO of Eutelsat Communications?
:: Can I invest Eutelsat Communications stock in a PEA (Share Savings Account)?
:: Will I be charged management fees?
:: Is it possible to convert bearer shares to registered shares?
:: How are Eutelsat shareholders kept informed on the latest news from their company?
:: How will shares be taxed?
:: How are dividends taxed?
:: How are capital gains taxed?
:: What is the capital structure of Eutelsat Communications?
:: What are the growth prospects for Eutelsat Communications?
:: What is the Group's net debt?
:: What is the mid-term level of net debt targeted?
At what price was Eutelsat Communications share offered on the stock exchange?
The first quotation of Eutelsat Communications' shares on Euronext Paris' Eurolist took place on December 2, 2005. The IPO price was 12 euros per share.
Where can I find documents relative to the IPO of Eutelsat Communications?
The reference document approved by the Autorité des Marchés Financiers (AMF) on October 10, 2005 (n° 05-710), and the offering memorandum (visa n° 05-818 as of November 28, 2005) are available on the Group website.
These documents can also be accessed on the website of the Autorité des Marchés Financiers: www.amf-france.org.
The information provided in these documents will enable you to understand the Group's activity, its economic and competitive environment, its growth strategy and the details of the financial operation.
These documents can also be sent on request to:
Eutelsat Communications
Investor Relations
70 rue Balard
F-75502 PARIS CEDEX 15
FRANCE
Tel.: +33 (0) 1 53 98 35 35
E-mail: investors@eutelsat-communications.com
Can I invest Eutelsat Communications stock in a PEA (Share Savings Account)?
Yes. Eutelsat Communications stock can be held in a PEA.
Will I be charged management fees?
Your bank will charge management fees.
We recommend you contact your financial intermediary for the exact amount of the relevant fees.
Is it possible to convert bearer shares to registered shares?
Yes, Eutelsat Communications stock can be converted into registered shares on request to your financial intermediary.
Eutelsat Communications registered shares service is managed by:
BNP Paribas Securities Services
GCT Emetteurs
Immeuble Tolbiac
75450 PARIS CEDEX 09
FRANCE
Tel.: 0826 109 119 (0.15 €/m)
Fax: +33 (0) 1 55 77 34 17
How are Eutelsat shareholders kept informed on the latest news from their company?
Eutelsat Communications regularly informs shareholders on news and financial results via the press
and in the Investor Relations section of its website www.eutelsat.com.
Shareholders can also request information by contacting Group headquarters:
Eutelsat Communications
Investor Relations
70 rue Balard
F-75502 PARIS CEDEX 15
FRANCE
Tel.: +33 (0) 1 53 98 35 35
E-mail: investors@eutelsat-communications.com
How will shares be taxed?
Eutelsat Communications shares are subject to common law rules of private income tax.
As an indication, we can provide the following information:
Shares can generate two types of cash flows: dividends and capital gains.
The holding of shares is not taxed as part of a private individual's income tax, but as part of the tax on wealth; for this reason, only dividends and capital gains are taxed.
The dividend: corresponds to the part of the profit distributed to shareholders. A shareholder must hold one or several shares at the date when the dividends were agreed in order to receive the dividends. According to the company results, the shareholders' general assembly decides the distribution and the amount of the dividend on the proposal of the Board of Directors.
The dividend is to be paid within nine months after the end of the financial year.
The capital gain: if you sell your shares at a higher price than the acquisition price, you make a capital gain.
Each shareholder should examine his/her individual situation with their fiscal advisor.
How are dividends taxed?
The 2004 French Finance law has planned the end of tax credit for 2005.
Since January 1, 2005, dividends paid to private individuals no longer give the right to a tax credit.
For the calculation of income tax, it should be noted that:
- Taxpayers will benefit from a 50% tax relief on the amount of dividends paid by French or foreign companies (which have signed a fiscal agreement with France).
- The 1,220 euros tax relief for a single person, or 2 440 euros for a couple with joint taxation, is maintained. It will apply to the amount of the dividends, after deducting the new 50% tax relief.
- A tax credit equal to 50% of the dividends before tax relief has been created, with a maximum of 115 euros per single person and 230 euros per couple with joint taxation. This tax allowance will benefit shareholders and the holders of a PEA.
- Social charges (supplementary social contributions (CSG), CRDS and social security deductions of 2.3%, i.e. 11%) will be calculated on the amount of distributed income, before tax relief.
How are capital gains taxed?
Capital gains are only taxable when the amount of shares sold exceeds a certain limit during the year.
For transfers in 2005, the threshold is currently fixed at 15,000 euros.
a) If the threshold is not exceeded
If the sale of shares (of all kinds) in the fiscal household does not exceed this threshold, the capital gain made is tax-exempt.
b) If the threshold is exceeded
If the 15,000 euros threshold is exceeded for capital gains made in 2005, all capital gains will be taxed at a rate of 27%.
Capital losses made since January 1, 2002, can be deducted from capital gains of the same nature, realised during the year of transfer or of the next ten years.
This is possible provided that the annual applicable assimilated threshold of the transfer of securities and rights or investments, in conformance with the realisation of the capital loss (15,000 euros in 2005), is exceeded within the considered year.
What is the capital structure of Eutelsat Communications?
As of May 31, 2008, Eutelsat Communications’ capital is distributed as follows:
What are the growth prospects for Eutelsat Communications?
Following its performance in 2007-2008, the favourable market outlook and its satellite launch schedule, the Group provides the following update to the financial objectives presented on July 31, 2008:
• Revenue objective for 2008-2009 is over 900 million euros.
• The Group intends to maintain its profitability at the highest level of its sector and targets an EBITDA margin above 78% of revenue for 2008-2009, confirming its solid financial situation.
In addition, the Group revises upward its three-year revenue growth objective and now targets revenues above one billion euros in fiscal year 2010-2011(1).
This objective corresponds to a three-year (2008-2009 to 2010-2011) compound average growth rate of 6%(2), accelerating from 2009-2010 onwards.
The Group confirms its EBITDA margin target above 77% over the period 2008-2011.
(1) Excluding revenues from the 50% owned Solaris Mobile Ltd affiliate in charge of operating the S-band payload on W2A which will be accounted for under the equity method.
(2) Based on 2007-2008 revenues excluding revenues from €/US$ hedging gains (9.9 million euros).
What is the Group's net debt?
At June 30 2008, net debt was 2,422 million euros.
During the fiscal year, the Group increased its ownership of its privately-held operating subsidiary Eutelsat SA from 95.25% of the share capital at June 30, 2007, to 95.91% at June 30, 2008. Despite higher investments, capital expenditure and distribution to the Group’s shareholders (up 12% to almost 140 million euros), the net debt(1) to EBITDA ratio has decreased to 3.48X.
(1) Net debt includes all bank debt and all liabilities from long-term lease agreements, less cash and cash equivalents and marketable securities (net of bank credit balances).
(2) The debt is made of two tranches which are repayable in November 2011 and June 2013, respectively.
What is the mid-term level of net debt targeted?
The level of debt targeted for the mid-term is a level which can give the company sufficient financial and strategic flexibility: targeted Net debt/EBITDA ratio is between 3.0x and 4.0x.
DOWNLOADS
Facts & Figures (PDF, 470 KB)
Corporate Brochure (PDF, 1 MB)
Eutelsat Corporate Film, 11/08
