Annual financial statement
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EUTELSAT COMMUNICATIONS GROUP FINANCIAL STATEMENTS AS AT 30 JUNE 2026 EUTELSAT
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CONTENTS 1 CONSOLIDATED INCOME STATEMENT 1 2 COMPREHENSIVE INCOME STATEMENT 2 3 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 3 4 CONSOLIDATED STATEMENT OF CASH FLOWS 5 5 CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY 6 6 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 7
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1 CONSOLIDATED INCOME STATEMENT (in millions of euros, except per-share data) Note 30 June 2025 30 June 2026 REVENUE FROM OPERATIONS 6.1 1,243.7 1,235.9 Operating costs 6.2 (241.8) (239.9) Selling, general and administrative expenses 6.2 (325.7) (363.7) Depreciation expense 7.1.1, 7.1.2, 7.1.3 (808.3) (699.3) Other operating income and expenses 6.3 (777.0) (153.2) OPERATING RESULT (909.2) (220.1) Cost of net debt (173.0) (194.3) Other financial income and expenses (28.0) (38.2) FINANCE INCOME OR EXPENSE 6.4 (201.0) (232.5) PROFIT/(LOSS) BEFORE TAX (1,110.2) (452.6) Income tax 6.5 6.7 (1.6) Share of profit/(loss) of associates 7.2 (2.4) (4.7) PROFIT/(LOSS) FOR THE PERIOD (1,105.9) (458.9) Attributable to the Group (1,081.9) (457.3) Attributable to non-controlling interests (24.0) (1.6) Basic earnings per share attributable to Eutelsat Communications S.A. shareholders 6.6 (2.279) (0.524) Diluted earnings per share attributable to Eutelsat Communications S.A. shareholders 6.6 (2.268) (0.523) CONSOLIDATED INCOME STATEMENT Consolidated financial statements as of June 2026 EUTELSAT COMMUNICATIONS 1
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2 COMPREHENSIVE INCOME STATEMENT (in millions of euros) Note 30 June 2025 30 June 2026 PROFIT/(LOSS) FOR THE PERIOD (1,105.9) (458.9) OTHER RECYCLABLE COMPONENTS OF COMPREHENSIVE INCOME Translation adjustment(1) 7.7.4 (165.2) 25.6 Tax effect 7.7.4 7.7 — Changes in fair value of hedging instruments(2) 7.7.3 13.3 (5.3) Tax effect 7.7.3 (3.4) 1.4 Recycling of OneWeb translation adjustments OTHER NON-RECYCLABLE COMPONENTS OF COMPREHENSIVE INCOME Changes in post-employment benefits 7.8 4.0 (8.5) Tax effect (1.0) 2.2 TOTAL OF OTHER ITEMS OF GAIN OR LOSS ON COMPREHENSIVE INCOME (144.7) 15.4 TOTAL COMPREHENSIVE INCOME (1,250.6) (443.5) Attributable to the Group (1,223.2) (442.3) Attributable to non-controlling interests(3) (27.4) (1.2) (1) Translation adjustments include foreign net investment hedges and the effect of the unwinding of documented cross-currency swaps. (2) Changes in the fair value of hedging instruments relate to cash flow hedges and the amortisation of upfront payments. (3) The portion attributable to non-controlling interests is broken down as follows: • net loss of (24.0) million euros as at 30 June 2025 and (1.6) million euros as at 30 June 2026, • (3.6) million euros in other recyclable components of comprehensive income/(loss) as at 30 June 2025 and 0.6 million euros as at 30 June 2026, • 0.1 million euros in other non-recyclable components of comprehensive income as at 30 June 2025 and 0.2 million euros as at 30 June 2026. COMPREHENSIVE INCOME STATEMENT 2 EUTELSAT COMMUNICATIONS Consolidated financial statements as of June 2026
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3 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (in millions of euros) Note 30 June 2025 30 June 2026 ASSETS Goodwill 7.1.1 664.9 757.0 Intangible assets 7.1.1 381.6 326.8 Tangible assets and construction in progress 7.1.2 3,918.4 4,176.7 Rights of use in respect of leases 7.1.3 229.3 231.1 Investments in associates 7.2 8.8 3.9 Non-current financial assets 7.4.3 135.3 134.6 Non-current assets associated with customer contracts and costs to obtain and fulfil contracts 7.3 43.4 45.7 Deferred tax assets 7.9.1 28.6 48.1 TOTAL NON-CURRENT ASSETS 5,410.4 5,723.9 Inventories 116.1 88.2 Accounts receivable 7.3.1 327.3 340.8 Current assets associated with customer contracts and costs to obtain and fulfil contracts 7.3 13.4 19.5 Other current assets 76.6 102.8 Current tax receivables 26.4 37.0 Current financial assets 7.4.3 56.8 18.8 Cash and cash equivalents 7.4.1 517.8 1,762.9 Assets held for sale 7.5.1 454.2 — TOTAL CURRENT ASSETS 1,588.7 2,370.0 TOTAL ASSETS 6,999.1 8,093.9 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION Consolidated financial statements as of June 2026 EUTELSAT COMMUNICATIONS 3
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(in millions of euros) Note 30 June 2025 30 June 2026 LIABILITIES Share capital 7.7.1 475.2 1,178.3 Additional paid-in capital 3,111.8 3,760.2 Reserves and retained earnings (993.0) (1,317.8) Non-controlling interests 67.1 65.9 TOTAL SHAREHOLDERS’ EQUITY 2,661.1 3,686.6 Non-current financial liabilities 7.4.2 2,493.0 2,884.7 Non-current lease liabilities 7.4.3 141.9 133.9 Other non-current financial liabilities 7.4.3 45.6 60.6 Non-current payables to suppliers of property, plant and equipment 7.4.3 — — Non-current liabilities associated with customer contracts 7.4.3 385.5 377.6 Non-current provisions 7.8 20.1 19.2 Deferred tax liabilities 7.9 102.9 104.5 TOTAL NON-CURRENT LIABILITIES 3,189.0 3,580.6 Current financial liabilities 7.4.2 471.9 105.3 Current lease liabilities 7.4.3 59.5 44.9 Other current payables and financial liabilities 7.4.3 151.0 163.0 Accounts payable 117.1 154.0 Current payables to suppliers of property, plant and equipment 7.4.3 91.8 200.4 Tax payable 20.1 22.6 Current liabilities associated with customer contracts 7.3.3 128.1 120.3 Current provisions 7.8 8.7 16.3 Liabilities held for sale 7.5.2 100.7 — TOTAL CURRENT LIABILITIES 1,149.0 826.8 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 6,999.1 8,093.9 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 4 EUTELSAT COMMUNICATIONS Consolidated financial statements as of June 2026
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4 CONSOLIDATED STATEMENT OF CASH FLOWS (in millions of euros) Note 30 June 2025 30 June 2026 CASH FLOW FROM OPERATING ACTIVITIES Profit/(loss) for the period (1,105.9) (458.9) Income from associates 2.4 4.7 Tax and interest expenses, other operating items 164.4 224.9 Depreciation, amortisation and provisions 1,544.9 793.8 Deferred taxes 7.9 (23.8) (14.8) Changes in accounts receivable (52.8) (24.6) Changes in assets held under customer contracts and other assets (48.6) 41.8 Changes in accounts payable (13.7) 35.8 Changes in liabilities associated with customer contracts and other liabilities (50.8) (79.8) Taxes paid(1) (33.1) (14.1) NET CASH FLOWS FROM OPERATING ACTIVITIES 383.1 508.9 CASH FLOW FROM INVESTING ACTIVITIES Acquisitions of satellites, other property and equipment and intangible assets 7.1.1, 7.1.2 (388.7) (541.4) Income from the sale of assets 1.6 0.9 Acquisition of equity investments and other movements(2) (22.9) 8.0 NET CASH FLOWS FROM INVESTING ACTIVITIES (410.1) (532.5) CASH FLOW FROM FINANCING ACTIVITIES Distributions 0.1 — Treasury stock 0.8 (0.6) Increase/reduction in capital(3) 0.4 1,469.2 Increase in borrowings and other(4) 7.4.2 2.3 2,184.7 Repayment of borrowings(5) 7.4.2 (9.1) (2,081.1) Repayment of lease liabilities 7.4.3 (61.1) (52.5) Loan issuance costs(6) — (96.6) Interest and other fees paid (175.8) (154.6) Transactions relating to non-controlling interests — — Premiums and upfront payments on derivatives settled (46.2) — NET CASH FLOW FROM FINANCING ACTIVITIES (288.9) 1,268.5 Impact of exchange rate on cash and cash equivalents (5.7) 0.3 Impact of change in scope 2.0 — INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (319.6) 1,245.1 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 837.4 517.8 CASH AND CASH EQUIVALENTS, END OF PERIOD 517.8 1,762.9 ■ including Cash and cash equivalents, end of period 7.4.1 517.8 1,762.9 ■ including Overdrafts included under debt, end of period — — (1) As at 30 June 2026, taxes paid mainly included advance payments in respect of income tax at Eutelsat Asia and Eutelsat International for (5.6) million euros and (2.4) million euros respectively; and the payment of income tax by OneWeb Colombia, Worldvu Australia and Konnect Africa RDC for (1.9) million euros, (1.0) million euros and (0.7) million euros, respectively. They also included the payment of the CVAE (Contribution on Added Value of Enterprises) by Eutelsat SA for (0.5) million euros. (2) As at 30 June 2026, acquisitions of equity investments and other movements mainly included the repayment of NAAL’s security deposits with Exim India for 13 million euros. (3) As at 30 June 2026, the capital increase was presented in the cash flow statement net of expenses for 1,469.2 million euros, i.e. a gross amount of 1,497.8 million euros and expenses related to the capital increase of (28.6) million euros. (4) As at 30 June 2026, the increase in borrowings and other included a new term loan of 400.0 million euros and two bonds for respective amounts of 650.0 million euros and 850.0 million euros, as well as an operating financing facility for OneWeb India in the amount of 4.0 million euros, and the 280.7 million euro export credit facility at Eutelsat Communications. (5) As at 30 June 2026, the repayment of borrowings included the repayment of the term loan for (400.0) million euros, bond repayments by Eutelsat SA and Eutelsat Communications for (777.0) million euros and (600.0) million euros, respectively, the repayment of the SMBC debt for (273.9) million euros, and the repayment of the debt relating to Exim India for (31.0) million euros. (6) As at 30 June 2026, loan issuance costs comprised the costs of refinancing transactions and the establishment of the export credit facility. CONSOLIDATED STATEMENT OF CASH FLOWS Consolidated financial statements as of June 2026 EUTELSAT COMMUNICATIONS 5
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5 CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (in millions of euros, except p e r - s h a r e d a t a ) Share capital Reserves and retained earnings Shareholders' equity Group share Non- controlling interests TotalNumber Amount Additional paid in capital As at 30 June 2024 475,178,378 475.2 3,111.8 231.8 3,818.8 94.1 3,912.9 Profit/(loss) for the period — — — (1,081.9) (1,081.9) (24.0) (1,105.9) Other items of gain or loss in comprehensive income(1) — — — (141.3) (141.3) (3.4) (144.7) TOTAL COMPREHENSIVE INCOME — — — (1,223.2) (1,223.2) (27.4) (1,250.6) Benefits for employees upon exercising options and free shares granted — — — (0.8) (0.8) — (0.8) Other (1.4) (1.4) (0.9) As at 30 June 2025 475,178,378 475.2 3,111.8 (993.0) 2,594.0 67.1 2,661.1 Profit/(loss) for the period — — — (457.3) (457.3) (1.6) (458.9) Other items of gain or loss in comprehensive income(1) — — — 15.0 15.0 0.4 15.4 TOTAL COMPREHENSIVE INCOME — — — (442.3) (442.3) (1.2) (443.5) Capital increase 703,129,728 703.1 648.4 117.7 1,469.2 — 1,469.2 Treasury stock 0 — — (0.6) (0.6) — (0.6) Benefits for employees upon exercising options and free shares granted 0 — — 0.3 0.3 — 0.3 AS AT 30 JUNE 2026 1,178,308,106 1,178.3 3,760.2 (1,317.8) 3,620.7 65.9 3,686.6 (1) The changes in other items of gain or loss in comprehensive income include actuarial gains and losses recognised on post-employment benefits and changes in the revaluation surplus of derivative instruments (see note 7.7.3) and the translation reserve (see note 7.7.4), net of the associated tax effects. CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY 6 EUTELSAT COMMUNICATIONS Consolidated financial statements as of June 2026
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6 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 GENERAL OVERVIEW 8 1.1 Business 8 1.2 Duration of the financial year 8 1.3 Approval of the financial statements 8 NOTE 2 KEY EVENTS DURING THE REPORTING PERIOD 8 2.1 Capital increase 8 2.2 Refinancing transactions 8 2.3 Other key events 9 NOTE 3 SCOPE OF CONSOLIDATION 9 3.1 Scope of consolidation 10 3.2 Main changes in the scope of consolidation 13 NOTE 4 ACCOUNTING PRINCIPLES AND VALUATION METHODS 14 4.1 Basis of preparation of financial information 14 4.2 Financial reporting rules 14 4.3 Significant accounting judgements and estimates 15 4.4 Seasonality 15 NOTE 5 SEGMENT INFORMATION 15 NOTE 6 NOTES TO THE INCOME STATEMENT 16 6.1 Revenue 16 6.2 Operating expenses 17 6.3 Other operating income and expenses 19 6.4 Finance income and expense 19 6.5 Income tax 20 6.6 Earnings per share 20 NOTE 7 NOTES TO THE BALANCE SHEET 21 7.1 Fixed assets 21 7.2 Investments in associates 30 7.3 Receivables, assets and liabilities on customer contracts and costs to obtain and fulfil contracts 30 7.4 Financial assets and liabilities 33 7.5 Assets and liabilities held for sale 40 7.6 Fair value of financial instruments 41 7.7 Shareholders’ equity 43 7.8 Provisions 44 7.9 Tax assets and liabilities 47 NOTE 8 RELATED-PARTY TRANSACTIONS 49 8.1 Compensation of the key management personnel 49 8.2 Other related parties 50 NOTE 9 SUBSEQUENT EVENTS 50 NOTE 10 STATUTORY AUDITORS’ FEES 50 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements as of June 2026 EUTELSAT COMMUNICATIONS 7
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NOTE 1 GENERAL OVERVIEW 1.1 BUSINESS Eutelsat Communications S.A. is one of the world’s leading satellite operators, specialised in the global supply of connectivity and broadcasting services. Resulting from the acquisition of OneWeb by Eutelsat in 2023, effective since 28 September 2023, the Group is the first operator of fully integrated GEO-LEO satellites, with a fleet of 31 geostationary satellites and a low-earth orbit constellation (LEO) composed of around 650 satellites. The Group meets the needs of its customers who are present in four key market segments: Video, where it broadcasts more than 5,800 television channels, and the fast-growing markets of Fixed Connectivity, Mobile Connectivity and Government Services. The Group is committed to providing secure and resilient connectivity services that respect the environment, aimed at contributing to closing the digital divide. The Company is listed for trading on the Paris (Euronext Paris) and London (London Stock Exchange) stock exchanges under the ticker ETL. 1.2 DURATION OF THE FINANCIAL YEAR The financial year runs for a period of 12 months from 1 July to 30 June. 1.3 APPROVAL OF THE FINANCIAL STATEMENTS The consolidated financial statements as at 30 June 2026 have been established under the responsibility of the Board of Directors, which adopted them at its meeting of 6 August 2026. They will be submitted for approval to the Ordinary General Meeting of Shareholders taking place on 26 November 2026. NOTE 2 KEY EVENTS DURING THE REPORTING PERIOD 2.1 CAPITAL INCREASE During the year, the Group carried out a capital increase as part of its strategy to strengthen its financial structure and support the implementation of its strategic plan, in particular the development of its low-orbit activities. This transaction included: ■ the issuance of new shares with preferential subscription rights, for a gross amount of 669.8 million euros; ■ reserved capital increases, for a gross amount of 828 million euros. In total, these transactions raised 1.5 billion euros in equity (gross amount). The aim is to increase the Group’s financial flexibility, support its investments and help reduce its debt. The costs directly associated with this transaction, which were deducted from the share premium account, amounted to 28.6 million euros, and mainly included fees paid to financial intermediaries, as well as legal and administrative costs borne by the Group. This capital increase was subscribed by both existing shareholders and several strategic partners, including the French State, Bharti Space Ltd, the Government of the United Kingdom, CMA CGM Participations and the Fonds Stratégique de Participations. 2.2 REFINANCING TRANSACTIONS During the year, the Group carried out the following financing transactions: ■ November 2025: A senior debt agreement of 900 million euros comprising a 400 million euro term loan and a 500 million euro revolving credit facility entered into to refinance a 450 million euro RCF taken out in 2024 by Eutelsat S.A., maturing in April 2027, a 100 million euro RCF at Eutelsat Communications, maturing in July 2027, and the 400 million euro term loan at Eutelsat Communications, maturing in June 2027; ■ February 2026: Entry into an approximately 1 billion euro Export Credit Agency (ECA)-backed financing facility to support the acquisition of 440 LEO satellites from Airbus Defence and Space. These satellites will provide full operational continuity for OneWeb LEO constellation customers, gradually replacing existing satellites at the end of their operational life; ■ February 2026: Amendment and Restatement Agreement with the European Investment Bank (EIB) in connection with the change of borrower (from Eutelsat S.A. to Eutelsat Communications S.A.) in respect of the 200 million euro term loan maturing in December 2028; ■ February 2026: Eutelsat Communications completed a 1.5 billion euro dual-tranche issuance of senior unsecured notes, comprising an 850 million euro 5-year tranche and a 650 million euro 7-year tranche, with coupons of 5.75% and 6.25%, respectively. The proceeds of the offering will be used to redeem in full two series of notes issued by Eutelsat S.A: the 600 million euro 2.25% notes maturing in 2027 and the 600 million euro 9.75% notes maturing in 2029. The costs directly attributable to this transaction, i.e. 36.5 million euros (excluding the cost of the ECA-backed facility) were either accounted for using the effective interest rate method or amortised over the term of the notes, depending on the nature of the underlying asset. At the same time, the Group recognised 9.4 million euros in unamortised costs under finance income relating to the redemption of the aforementioned instruments, 5.9 million euros relating to hedging instruments and 33.7 million euros in early repayment penalties. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 8 EUTELSAT COMMUNICATIONS Consolidated financial statements as of June 2026
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2.3 OTHER KEY EVENTS ■ On 29 January 2026, the Group was notified that the French government had not approved the sale of terrestrial infrastructure assets to EQT. As a result, the assets and liabilities initially identified for this transaction are no longer classified as assets and liabilities held for sale. No penalty or compensation is payable, as regulatory approval was a condition precedent to the completion of the transaction originally contemplated. ■ On 30 January 2026, the Group signed an agreement with Thales Alenia Space France regarding the early termination of a contract entered into in October 2022 relating to the supply of the E113WX satellite. Under this agreement, the Group received compensation of 15.8 million euros. The Group recognised an impairment loss of 66.9 million euros on the related assets. ■ Following the completion of its annual impairment tests, the Group recognised a 91.8 million euro impairment loss for K - V H T S a n d a 1 9 . 5 m i l l i o n e u r o l o s s f o r 7 ° E . ■ Commissioning of new satellites and mission termination: • on 19 December 2025, the EUTELSAT 50WA satellite (formerly EUTELSAT 12 WEST G) was positioned at 50.3° West and entered into operational service for a t h i r d - p a r t y o p e r a t o r , • on 4 March 2026, the Eutelsat 56A satellite (also known as the Express AT1) suffered a critical failure, resulting in RSCC losing control of the satellite. As a result, the lifetime lease agreement was terminated and the satellite is no longer included in the Eutelsat fleet, • on 10 March 2026, the Eutelsat 140A satellite (also known as Express AT2) was repositioned to ensure continuity of part of the services previously provided by Express AT1. The lifetime lease agreement has also ended and this satellite is no longer included in the Eutelsat fleet, • on 12 April 2026, the Eutelsat 139 West A satellite was d e - o r b i t e d a f t e r b e i n g f u l l y d e p r e c i a t e d o n r e a c h i n g t h e e n d of its operational life. ■ On 16 December 2024, SpaceRISE, the consortium comprising the Group, Hispasat and SES, signed the agreement that will see the consortium design, build, and operate the IRIS 2 (Infrastructure for Resilience, Interconnectivity and Security by Satellite) constellation on behalf of the European Union under a public-private partnership (PPP) model in the form of a concession with an initial duration of 12 years. The Group as prime member of the SpaceRISE consortium is progressing well through Rendez-Vous 1 of the IRIS 2 program. The Group is working closely with the European Commission and the European Space Agency to validate most key terms and conditions, including project costs, supply chain arrangements, and technical requirements for the design, delivery, and operation of the innovative IRIS 2 LEO-H constellation. The Group remains fully committed to the European Union's vision for a sovereign, secure, and competitive space-based connectivity infrastructure. As a prime member of the SpaceRISE consortium, the Group collaborates with all partners to ensure successful delivery of IRIS2. NOTE 3 SCOPE OF CONSOLIDATION The consolidated financial statements cover Eutelsat Communications S.A., its subsidiaries and entities over which it directly or indirectly exercises joint control or a significant influence (considered together as the “Eutelsat Group” or the “Group”). Accounting principles Subsidiaries are entities over which the Group has direct or indirect control. Control is defined by the power to direct the financial and operational policies generally, but not systematically, combined with a shareholding of more than 50% of the voting rights. The existence and effects of potential voting rights that are currently exercisable or convertible, the power to appoint the majority of members of the governing bodies and the existence of veto rights are considered when assessing whether the Group controls another entity. Subsidiaries are consolidated under the full consolidation method from the date the Group gains control. They are de-consolidated as of the date on which the Group loses control. The portion of equity ownership that is not directly or indirectly attributable to the Group is booked under non- controlling interests. The financial statements of entities under joint control are consolidated on an equity basis where these are considered to be joint ventures and based on the equity percentage of each item on the balance sheet and income statement where they are considered to be joint activities. The financial statements of associates over which the Group exerts significant influence are consolidated using the equity method. Significant influence is presumed where at least/more than 20% of the shares are held by the Group. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements as of June 2026 EUTELSAT COMMUNICATIONS 9
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3.1 SCOPE OF CONSOLIDATION As at 30 June 2026, the list of companies in the scope of consolidation was as follows: Eutelsat MENA FZ-LLC Saudi Arabia FC 100% 96% OneWeb Angola – Servicos de Telecommunicacoes (SU) LDA Angola FC 100% 99% OneWeb SA (Argentina) Argentina FC 100% 99% Eutelsat Australia PTY Ltd Australia FC 100% 96% OneWeb - WorldVu Australia Pty Ltd Australia FC 100% 99% EUTELSAT BH D.O.O. SARAJEVO(1) Bosnia FC 100% 96% EUTELSAT BULGARIA(1) Bulgaria FC 100% 96% OneWeb (Bulgaria) EOOD Bulgaria FC 100% 99% Eutelsat do Brasil LTDA(1) Brazil FC 100% 96% Eutelsat do Brasil Participacoes LTDA(1) Brazil FC 100% 96% Eutelsat Servicos de telecomunicacoes Do Brasil Ltd(1) Brazil FC 100% 96% OneWeb Brazil Head Office (Brazil) Brazil FC 100% 99% OneWeb Brazil Itajaí Branch (Brazil) Brazil FC 100% 99% OneWeb Brazil Petrolina Branch (Brazil) Brazil FC 100% 99% OneWeb Brazil Rio de Janeiro Branch (Brazil) Brazil FC 100% 99% OneWeb Communications Canada Ltd. Canada FC 100% 99% KONNECT AFRICA RDC(1) Democratic Republic of Congo FC 100% 92% Konnect Africa Côte d'Ivoire(1) Ivory Coast FC 100% 81% OneWeb Chile SpA Chile FC 100% 99% OneWeb Costa Rica Limitada Costa Rica FC 100% 99% Eutelsat International Limited Cyprus FC 100% 96% Noorsat Media City Cyprus FC 100% 96% ES 174E Ltd Cyprus FC 100% 96% ETL Cyprus Ltd Cyprus FC 100% 96% Eutelsat Services und Beteiligungen Gmbh Germany FC 100% 96% OneWeb Network Access Holdings Limited (Fiji Branch) Kazakhstan FC 100% 99% Company Country Consolidation method % control as at 30 June 2026 % interest as at 30 June 2026 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 10 EUTELSAT COMMUNICATIONS Consolidated financial statements as of June 2026
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Eutelsat S.A. France FC 100% 96% Eutelsat Communications SA France FC 100% 100% Fransat SA France FC 100% 96% Eutelsat Konnect Services France FC 100% 96% Konnect Africa France France FC 100% 96% OneWeb France SAS France FC 100% 99% Taurus Satellite Holding United Kingdom FC 100% 96% BroadBand4Africa LTD United Kingdom FC 100% 96% Eutelsat UK Ltd United Kingdom FC 100% 96% OneWeb Holdings Ltd (UK)(2) United Kingdom FC 100% 99% Oneweb Communications Ltd (UK) United Kingdom FC 100% 99% OneWeb - Network Access Assoc Ltd (UK) United Kingdom FC 100% 99% OneWeb Network Access Holdings Ltd (UK) United Kingdom FC 100% 99% OneWeb Consolidated United Kingdom FC 100% 99% OneWeb Ghana Ltd Ghana FC 100% 99% OneWeb ApS (Greenland) France FC 100% 99% Eutelsat Greece Greece FC 100% 96% OneWeb - PT OneWeb Communications Indonesia Indonesia FC 100% 99% BB4A Israel Ltd Israel FC 100% 96% OneWeb India Communications Private Limited (India) India FC 100% 99% Skylogic Spa Italy FC 100% 96% Skylogic Mediterranéo srl Italy FC 100% 96% OneWeb Srl (Italy) Italy FC 100% 99% OneWeb - WorldVu Satellites Limited USA FC 100% 99% OneWeb Ltd (Jersey) USA FC 100% 99% OneWeb G.K. (Japan) Japan FC 100% 99% Noor Al Sharq Cyprus FC 100% 96% OneWeb Kazakhstan Ltd Kazakhstan FC 100% 99% OneWeb Communications S.a.r.L (Luxembourg) Luxembourg FC 100% 99% Company Country Consolidation method % control as at 30 June 2026 % interest as at 30 June 2026 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements as of June 2026 EUTELSAT COMMUNICATIONS 11
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OneWeb Ltd (Malta) Malta FC 100% 99% OneWeb (Mauritius) Ltd Mauritius FC 100% 99% Satelites Mexicanos S.A. de C.V.(1) Mexico FC 100% 96% SMVX Administracion S. de R.L. de C.V.(1) Mexico FC 100% 96% SMVS Servicios Tecnicos S. de R.L. de C.V.(1) Mexico FC 100% 96% OneWeb - WorldVu Mexico S.DE R.L DE C.V. Mexico FC 100% 99% Satmex International B.V.(1) Netherlands FC 100% 96% OneWeb Norway AS Norway FC 100% 99% Eutelsat Polska spzoo Poland FC 100% 96% Eutelsat Madeira Unipessoal Lda Madeira FC 100% 96% OneWeb - WorldVu Unipessoal Lda (Portugal) Portugal FC 100% 99% Eutelsat Networks LLC Russia FC 100% 96% Eutelsat Rus LLC Russia FC 100% 96% OneWeb - First Tech Web Company Limited (Saudi Arabia) Saudi Arabia EM 49.59% 50% OneWeb Sweden AB Sweden FC 100% 99% Eutelsat Asia Pte. Ltd Singapore FC 100% 96% OneWeb Asia PTE Limited (Singapore) Singapore FC 100% 99% OneWeb Senegal SARL Senegal FC 100% 99% OneWeb Turkey İletişim Hizmetleri A.Ş. Turkey FC 100% 99% Konnect Broadband Tanzania Limited Tanzania FC 100% 96% Eutelsat Inc USA FC 100% 96% Eutelsat America Corp USA FC 100% 99% ES 172 LLC USA FC 100% 96% EAS Delaware Corp USA FC 100% 96% Satmex USA LLC(1) USA FC 100% 96% OneWeb - WorldVu Development LLC (US) USA FC 100% 99% OneWeb - WorldVu JV Holdings LLC (US) USA FC 100% 99% OneWeb Holdings LLC USA FC 100% 99% Eutelsat Network Solutions USA FC 100% 96% Konnect South Africa Ltd South Africa FC 100% 96% OneWeb - WorldVu South Africa (Pty) Ltd South Africa FC 100% 99% OneWeb Colombia Limited Colombia FC 100% 99% Company Country Consolidation method % control as at 30 June 2026 % interest as at 30 June 2026 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 12 EUTELSAT COMMUNICATIONS Consolidated financial statements as of June 2026
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OneWeb SA (Argentina)_OLD Argentina FC 100% 99% OneWeb Canada Communications Ltd_OLD Canada FC 100% 99% OneWeb Ltd (Malta)_OLD Malta FC 100% 99% Australian AntennaCo Pty Ltd(3) Australia FC 100% 96% AntennaCo Brazil(3) Brazil FC 100% 96% Cameroon AntennaCo SARL(3) Cameroon FC 100% 96% Passive Satellite Infrastructure Assets Canada Limited Canada FC 100% 96% Chile AntennaCo SpA(3) Chile FC 100% 96% AntennaCo Colombia SAS(3) Colombia FC 100% 96% Costa Rica AntennaCo(3) Costa Rica FC 100% 96% AntennaCo France(3) France FC 100% 96% AntennaCo Holdings(3) France FC 100% 96% Ghana AntennaCo(3) Ghana FC 100% 96% Greece AntennaCo IKE(3) Greece FC 100% 96% Indonesia AntennaCo(3) Indonesia FC 100% 96% AntennaCo Japan KK(3) Japan FC 100% 96% Kazakhstan Antenna Co. Ltd.(3) Kazakhstan FC 100% 96% Mauritius AntennaCo(3) Mauritius FC 100% 96% AntennaCo Mexico(3) Mexico FC 100% 96% Norway AntennaCo AS(3) Norway FC 100% 96% Poland AntennaCo spółka z o.o.(3) Poland FC 100% 96% Portugal AntennaCo Lda(3) Portugal FC 100% 96% AntennaCo South Africa(3) South Africa FC 100% 96% AntennaCo Sweden Aktiebolag(3) Sweden FC 100% 96% Polynesian AntennaCo(3) Polynesia FC 100% 96% WorldVu Tanzania Tanzania FC 100% 99% 1. Antenna Company FZ-LLC; OR 2. AntennaCo FZ-LLC; OR 3. Antenna Company FZ-LLC.(3) Saudi Arabia FC 100% 96% Antennaco Limited(3) United Kingdom FC 100% 96% AntennaCo US LLC(3) USA FC 100% 96% Greenland AntennaCo ApS(3) Greenland FC 100% 96% Company Country Consolidation method % control as at 30 June 2026 % interest as at 30 June 2026 FC: Full consolidation method EM: Equity method (1) Companies with financial years ending on 31 December for legal or historical reasons. (2) Companies with financial years ending on 31 March for legal or historical reasons. For the other companies, the financial year ends on 30 June. (3) Companies initially intended to be used to implement the disposal of its passive ground infrastructure. 3.2 MAIN CHANGES IN THE SCOPE OF CONSOLIDATION During the financial year, the Group set up several new legal entities (see section 3.1) initially intended to facilitate the disposal of its passive ground infrastructure assets. The disposal was ultimately cancelled (see section 2.3). NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements as of June 2026 EUTELSAT COMMUNICATIONS 13
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NOTE 4 ACCOUNTING PRINCIPLES AND VALUATION METHODS 4.1 BASIS OF PREPARATION OF FINANCIAL INFORMATION The consolidated financial statements cover the 12-month periods ended 30 June 2026 and 30 June 2025. In accordance with Regulation No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards, Eutelsat prepares its consolidated financial statements in accordance with International Financial Reporting Standards (IFRS). This reporting framework comprises International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS), as well as interpretations issued by the Standing Interpretation Committee (SIC) and the IFRS Interpretations Committee (IFRIC) that were mandatorily effective as of 30 June 2026. The IFRS as adopted by the European Union as of 30 June 2026 are available on the following website: https:// commission.europa.eu/index_en. The consolidated financial statements have been prepared in accordance with the general principles of IFRS, including fair presentation, the going concern assumption, the accrual basis of accounting, consistency of presentation, materiality and aggregation. New standards and interpretations Since 1 July 2025, the Group has applied the new standards and interpretations outlined below and adopted by the European Union: ■ Amendments to IFRS 10 and IAS 28 – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture; ■ Amendments to IFRS 9 and IFRS 7 – Amendments to the Classification and Measurement of Financial Instruments; ■ Amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7 – Annual Improvements to IFRS, Volume 11; ■ Amendments to IFRS 9 and IFRS 7 – Contracts Referencing Nature-dependent Electricity. These new standards have had no material impact on the Group's financial statements. The Group has not early adopted the following standards and amendments: ■ IFRS 18 - Presentation and Disclosure in Financial Statements, effective from 1 January 2027; ■ IFRS 19 - Subsidiaries without Public Accountability: Disclosure requirements effective from 1 January 2027; ■ Amendment to IAS 21, Translation to a Hyperinflationary Presentation Currency, effective from 1 January 2027; ■ Amendments to the illustrative examples accompanying IFRS 7, IFRS 18, IAS 1, IAS 8, IAS 36 and IAS 37. No effective or transition date. Pillar Two The OECD's Pillar Two agreement has been implemented in French tax regulation since 1 January 2024. As a result, Eutelsat Communications S.A. and all its controlled entities fall within the scope of new tax and compliance obligations which may, depending on the effective tax rate (ETR) calculated for the individual jurisdictions where the Group operates, result in an additional tax increasing this ETR to 15%. The application of the Pillar Two regulation did not have a significant impact on the Group’s financial statements as at 30 June 2026. 4.2 FINANCIAL REPORTING RULES 4.2.1 Translation of financial statements and transactions in foreign currencies Eutelsat’s consolidated financial statements are presented in euros. In accordance with IAS 21 - The Effects of Changes in Foreign Exchange Rates, each subsidiary of the Eutelsat Group records its transactions in the currency that most faithfully represents its economic environment, i.e. its functional currency. Each subsidiary located outside the euro zone maintains its accounting records in the currency that is most representative of its economic environment. All monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate prevailing at the balance sheet date. Income statement items are converted at the average exchange rate for the period. Balance sheet and income statement translation adjustments arising from exchange rate fluctuations are recorded as translation adjustments under shareholders’ equity. The Group does not consolidate any significant entities whose functional currency is that of a hyperinflationary economy. Transactions denominated in foreign currencies are translated into the functional currency of the entity at the rate prevailing on the date of the transaction. Foreign exchange gains and losses arising from these transactions and from the translation of monetary assets and liabilities at the closing date exchange rate are shown under foreign exchange gains and losses. Foreign exchange gains and losses arising from the translation of capitalisable advances made to foreign subsidiaries and forming part of the net investment in the consolidated subsidiary are recognised directly as a translation adjustment within shareholders' equity. The U.S. dollar is the main foreign currency used. The closing exchange rate used is 1.1406 U.S. dollars for 1 euro and the average exchange rate for the period is 1.1661 U.S. dollars for 1 euro. 4.2.2 Reporting of current and non-current assets and liabilities Current assets and liabilities are those that the Group is looking to realise, use or settle during its normal operating cycle, which is less than 12 months. All other assets and liabilities are non-current. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 14 EUTELSAT COMMUNICATIONS Consolidated financial statements as of June 2026
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4.3 SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES The establishment of the Group’s consolidated financial statements requires the use of judgements, estimates and assumptions considered to be reasonable, which may affect certain assets and liabilities and the amounts of income and expenses presented in these financial statements and their accompanying notes. Management is required to review these estimates and assessments on an ongoing basis based on past experience and other factors considered relevant in light of the economic conditions existing at the time these estimates and assumptions are made. The outcome of the transactions underlying these estimates and assumptions could result in significant adjustments to the amounts that are recognised in a subsequent fiscal period because of the uncertainty that surrounds them. In preparing the financial statements for the period ended 30 June 2026, management has exercised judgement, particularly with regard to the recoverable amounts of assets, the recognition of revenue, the estimation of provisions and assessment of contingent liabilities, the recognition of tax assets and liabilities and the assessment of the risk of impairment of trade receivables. The final amounts may differ from these estimates. 4.4 SEASONALITY The activities of the Eutelsat Group do not show significant seasonal variations. NOTE 5 SEGMENT INFORMATION In accordance with IFRS 8 “Operating Segments”, the segment information presented is based on internal financial management data provided to the Chief Executive Officer and the Chief Financial Officer, who jointly constitute the Chief Operating Decision Maker (CODM) and are responsible for allocating financial resources. The Group has always considered that it operates a single global business, providing fully integrated connectivity services worldwide, across video, high-throughput enterprise networks and mobility, primarily to communications operators and international broadcasters, enterprise network integrators and companies for their own needs. The acquisition of control of OneWeb in September 2023 did not change this assessment, as the Group considers that the most relevant analytical criterion is the assessment of the services provided and the nature of the associated risks, rather than their end use. The performance indicators monitored are: ■ revenue; ■ adjusted EBITDA; ■ gross CAPEX, covering the acquisition of satellites and other tangible or intangible assets, as well as payments related to lease liabilities. Financial year ended 30 June 2026 (millions of euros) 2025 2026 Revenue from operations 1,243.7 1,235.9 Operating expenses (567.6) (603.6) ADJUSTED EBITDA 676.2 632.4 Depreciation expense (808.3) (699.3) Other operating income and expenses (777.0) (153.2) OPERATING RESULT (909.2) (220.1) Finance income or expense (201.0) (232.5) Income tax 6.7 (1.6) Share of profit/(loss) of associates (2.4) (4.7) Attributable to non-controlling interests (24.0) (1.6) ATTRIBUTABLE TO THE GROUP (1,081.9) (457.3) Financial year ended 30 June 2026 (millions of euros) 2025 2026 Net debt at the balance sheet date 2,626.6 1,464.6 Financial year ended 30 June 2026 (millions of euros) 2025 2026 Acquisitions of satellites, other property and equipment, and intangible assets (388.7) (541.4) Drawings of ECA loans and other bank credit facilities — 280.7 Repayment of SMBC loans and other bank credit facilities (9.1) (273.9) Lease debt (61.1) (52.5) DISCRETIONARY CASH FLOW (458.9) (587.1) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements as of June 2026 EUTELSAT COMMUNICATIONS 15
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NOTE 6 NOTES TO THE INCOME STATEMENT 6.1 REVENUE Accounting principles The Group follows the recommendations of IFRS 15. Most of the contracts involve the supply of satellite capacity services delivered to distributor customers (who retail the capacity to end users) and end users (who use the capacity for their own needs). These contracts usually cover periods ranging from several months to several years. Some contracts concern the provision of short-term satellite capacity for occasional use. For all of these contracts, revenue is recognised progressively as control over the capacity is transferred to the customer over the contract period according to the volume of units of satellite capacity sold (expressed in MHz or Mbps depending on the contract). The purpose of this method is to recognise revenue corresponding to the level of service provided to customers for a given period, taking into account possible changes in the volume of units sold under the contract. Some contracts include variable consideration, such as variable prices or free periods. For such contracts, the Group estimates the value of the consideration to which it will be entitled in return for providing the promised services to the customer and recognises this under revenue to the extent that it is considered highly probable that a significant reversal of the cumulative revenue recognised will not occur. At times the Group bears marketing (promotion, advertising, etc.) or technical expenses (especially antenna purchase and installation) on behalf of some customers. When these costs are not distinct from the service transferred to the customer, they represent the same performance obligation with the service delivered and the consideration payable to the customer is recognised as a reduction in transaction price. Where the consideration payable to the customer is paid in return for a separate service from the customer and corresponds to the fair value of the service for the Group, it is recognised under operating expenses. Some contracts provide for early termination in return for the payment of penalties. When these penalties are paid as part of an amendment to a contract that concerns services covered by the existing contract, the services in the amended contract form only a single performance obligation with the services partially performed at the date of amendment. These penalties are then spread over the duration of the amended contract. Upfront payments received are deferred as a contract liability to the extent that these exceed the cumulative revenue recognised. An assessment is performed to identify whether advance payments provide a significant financing benefit to the Group. Where a significant financing component that is attributable to the provision of financing is identified, the Group adjusts the revenue to be recognised for the effect of discounting and unwinds the contract liability based on the discount rate that would be reflected in a separate financing transaction with the customer. The applicable revenue and financing expense are presented on a gross basis. 6.1.1 Revenue by application Revenue by application breaks down as follows: (in millions of euros) 30 June 2025 30 June 2026 Video 608.2 519.2 Government Services 211.0 235.5 Fixed Connectivity 247.3 270.0 Mobile Connectivity 159.7 172.4 TOTAL OPERATING VERTICALS 1,226.3 1,197.1 Other revenue(1) 17.5 38.8 TOTAL 1,243.7 1,235.9 EUR/USD exchange rate 1.082 1.166 (1) Other revenue includes the impact of EUR/USD currency hedging which amounted to 6.9 million euros, compared with 0.8 million euros for the financial year ended 30 June 2025. Other revenue includes the impact of EUR/USD currency hedging and fees for the provision of various consulting/engineering services to third parties. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 16 EUTELSAT COMMUNICATIONS Consolidated financial statements as of June 2026
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6.1.2 Revenue by geographical region Revenue by geographical region, determined based on the customer billing address, was as follows: (in millions of euros and as a percentage) 30 June 2025 30 June 2026 Region Amount % Amount % France 85.2 6.8 101.9 8.2 Italy 101.5 8.2 80.9 6.5 United Kingdom 73.4 5.9 66.5 5.4 Europe (other) 350.1 28.1 374.0 30.3 USA 228.3 18.3 218.1 17.7 Americas (other) 43.3 3.5 44.9 3.6 Middle-East 193.3 15.5 211.4 17.1 Africa 106.4 8.6 72.0 5.8 Asia 60.7 4.9 58.4 4.7 Other(1) 1.5 0.1 7.8 0.6 TOTAL 1,243.7 100.0 1,235.9 100.0 (1) Other revenue includes the impact of EUR/USD currency hedging which amounted to 6.9 million euros, compared with 0.8 million euros for the financial year ended 30 June 2025. 6.1.3 Backlog The backlog represents future revenue from capacity allocation or service delivery contracts (including contracts for satellites currently under construction) . As at 30 June 2026 the backlog stands at 3.4 billion euros. The secured backlog, corresponding to the IFRS 15 requirements and excluding revenue subject to early termination clauses, stands at 2.7 billion euros. The amount of secured backlog within a five-year time horizon stands at 2.5 billion euros, of which 1.5 billion euros within two years. 6.2 OPERATING EXPENSES Operating expenses essentially comprise staff costs and other costs associated with controlling and operating the satellites, together with satellite in-orbit insurance premiums. Selling, general and administrative expenses are mainly made up of costs for administrative and commercial staff, all marketing and advertising expenses and related overheads. The operating expenses relating to impairment losses on trade receivables and assets associated with customer contracts amounted to 11 million euros for the period to 30 June 2026 (compared with 17.6 million euros for the period to 30 June 2025). 6.2.1 Staff costs Staff costs (including mandatory employee profit-sharing) are broken down as follows: (in millions of euros) 30 June 2025 30 June 2026 Operating costs 117.1 117.3 Selling, general and administrative expenses 122.7 129.6 TOTAL 239.8 247.0 Eutelsat S.A. employees benefit from a Group Savings Plan (PEE) funded by voluntary contributions by employees, a Leave Bank (CET) and a three-year profit-sharing agreement based on targets revisable on a yearly basis. 6.2.2 Employee headcount The Group had 1,645 full-time equivalent employees as at 30 June 2026 (including 496 OneWeb employees) compared with 1,578 as at 30 June 2025 (including 510 OneWeb employees). The average number of full-time equivalent employees during the reporting period was as follows: 30 June 2025 30 June 2026 Operations 865 882 Sales and administrative functions 713 763 TOTAL 1,578 1,645 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements as of June 2026 EUTELSAT COMMUNICATIONS 17
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6.2.3 Share-based and similar compensation Accounting principles Share-based payments are measured at fair value at the grant date and are recognised under staff costs over the vesting period of the rights representing the benefit granted, with a corresponding increase in shareholders' equity for equity-settled plans, or in company debts for cash-settled plans. They are revalued at each balance sheet date to take into account changes in vesting assumptions (employee turnover rate, likelihood of meeting performance criteria) and, for cash-settled plans, changes in market conditions (share price). In addition to the plans in force within the Group as at 30 June 2025, the Group granted three new share-based plans on 17 December 2025, with one paid in cash and the two others in shares. The vesting of these shares is subject to an attendance requirement and the achievement of performance conditions. The Group updated the valuation of the liabilities associated with stock option plans (relating to the OneWeb stock option plan granted prior to Eutelsat's acquisition and modified as part of the change of control) and cash-settled restricted share plans, resulting in the recognition of a net reversal of €10.6 million during the year. The key features of the plans are as follows: Features of the plans November 2023 Plan November 2024 Plan November 2025 Plan Free share plans December 2025 Vesting period July 2023 – June 2026 July 2024 – June 2027 December 2025 – June 2028 December 2025 – December 2028 Payment method Cash Cash Cash Shares Maximum number of attributable shares at inception 1,370,787 1,555,584 1,399,420 1,115,951 Number of beneficiaries 35 40 51 1 NUMBER OF SHARES AND PERFORMANCE CONDITIONS FOR THE FREE SHARES PLAN Total number of shares in circulation — — — 1,115,951 Performance conditions Connectivity revenues, Ebitda, CAPEX, CSR, TSR, implementation of a capital increase, implementation of the refinancing plan, management skills NUMBER OF SHARES AND PERFORMANCE CONDITIONS FOR THE PHANTOM SHARE PLANS Total number of shares in circulation 463,161 631,918 1,343,236 — Performance targets New business revenues, discretionary free cash flow and CSR Connectivity revenues, Ebitda, CAPEX and CSR Connectivity revenues, Ebitda, CAPEX and CSR FAIR VALUE OF THE SHARES AS AT 30 JUNE 2026 Fair value excl. TSR(1) (shares) 1.83 Fair value excl. TSR(1) (cash) 2.7 2.5 2.5 Fair value after TSR(1) 0.81 Aggregate valuation of plan as at 30 June 2026 (in millions of euros)(2) 1.0 1.4 3.1 1.8 EXPENSE FOR THE FINANCIAL YEAR Expense for the financial year ended 30 June 2026 (in millions of euros)(2) (0.4) (0.3) (0.7) (0.3) (1) The relative TSR (Total Shareholder Return) measures the Eutelsat shareholder return compared with that of other benchmarks or indexes. This performance requirement only applies to company directors. (2) Excluding social security charges. (3) Including exceptional AGA plan. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 18 EUTELSAT COMMUNICATIONS Consolidated financial statements as of June 2026
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6.3 OTHER OPERATING INCOME AND EXPENSES Accounting principles Other operating income and expenses comprise unusual, non-recurring income and expense items. They mostly include asset impairment charges, launch failure costs and the related insurance repayments, non-commercial disputes net of costs incurred, restructuring costs, income from asset disposals and the effects of changes in the scope of consolidation (acquisition costs and disposal gains/losses). (in millions of euros) 30 June 2025 30 June 2026 Other operating income 3.1 47.7 Other operating expenses (780.2) (200.9) TOTAL (777.0) (153.2) As at 30 June 2026 , other operating income mainly related to the termination of the lease agreements for the AT1 and AT2 satellites and some of the AM6 transponders for a net amount of 44 million euros (cancellation of lease liabilities, net of the derecognition of the related right-of-use assets). Other operating expenses mainly comprised satellite impairment losses of 111.3 million euros, the net cost associated with the early termination of the E113WX project of 51.3 million euros, costs incurred in connection with the planned disposal of passive ground infrastructure assets of 21.6 million euros and the net cost of litigation and restructuring activities of 14.1 million euros. As at 30 June 2025, other operating income was mainly composed of additional income from the C-band and disposals of fixed assets. Other operating expenses mainly included goodwill impairment losses of 535 million euros, satellite impairment losses of 186 million euros, 19 million euros in costs relating to the abandonment of an investment project and 30 million euros in costs arising from changes in the consolidation scope, notably relating to the acquisition of OneWeb during the previous financial year, and to the planned sale of passive ground infrastructure assets for this year. 6.4 FINANCE INCOME AND EXPENSE (in millions of euros) 30 June 2025 30 June 2026 Interest expense after hedging (142.2) (153.1) Interest on lease liabilities (25.5) (21.6) Loan issuance costs and commissions (12.7) (24.7) Capitalised interest 2.7 1.9 COST OF GROSS DEBT (177.6) (197.5) Financial income 4.6 3.2 COST OF NET DEBT (173.0) (194.3) Changes in derivative financial instruments 2.2 (2.3) Foreign-exchange impact (10.9) 2.4 Other (19.3) (38.3) FINANCE INCOME OR EXPENSE (201.0) (232.5) The change in the cost of net debt was mainly due to the impact of the recycling of financial instruments and the write-off to profit or loss of the remaining unamortised issuance costs relating to the previous debt facilities. Other financial expenses of 38.3 million euros mainly related to the early redemption of a bond issue. The amount of capitalised interest depends on the state of progress and number of satellite construction programmes recorded during the relevant financial year. The interest rate used to determine the amount of interest expense eligible for capitalisation was 4.29% as at 30 June 2026 , compared with 4.37% as at 30 June 2025. Changes in the fair value of derivative instruments as at 30 June 2026 and 30 June 2025 mainly include the ineffective portion of the time value of derivatives designated in a hedging relationship. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements as of June 2026 EUTELSAT COMMUNICATIONS 19
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6.5 INCOME TAX The Group’s income tax expense breaks down as follows: (in millions of euros) 30 June 2025 30 June 2026 Current tax expense (17.1) (16.5) Deferred tax income/(expense) 23.8 14.8 TOTAL INCOME TAX INCOME/(EXPENSE) 6.7 (1.6) The theoretical income tax expense, calculated by applying the statutory French corporate income tax rate to the pre-tax result (excluding the share of net income from equity investments), can be reconciled to the actual expense as follows: (in millions of euros) 30 June 2025 30 June 2026 Current income before tax (1,110.2) (452.6) Standard French corporate tax rate 25.83% 25.83% THEORETICAL INCOME-TAX EXPENSE 286.8 116.9 Non-taxable profit 60.6 57.8 Differences in corporation tax rates 2.6 (2.1) Goodwill impairment (138.2) CVAE (Contribution on Added Value of Enterprises) (0.5) (0.5) Unrecognised tax losses for the period (204.7) (172.0) Other permanent differences 0.2 (1.8) TAX EXPENSE 6.7 (1.6) Effective tax rate 0.6% (0.4%) As at 30 June 2026 , the effective tax rate of 0.4% was mainly attributable to a positive effect of 57.8 million euros arising from the exemption of profits generated from the operation of satellites in geostationary positions by Eutelsat S.A. This effect was offset by losses for the period for which no deferred taxes were recognised, totalling 172.0 million euros, of which 105.4 million euros at OneWeb and 38.9 million euros at Eutelsat S.A. As at 30 June 2025, other permanent differences mainly included the impact of exchange rate differences on the deferred tax positions of the Satellites Mexicanos and Eutelsat Do Brasil subsidiaries for 12 million euros and tax disputes for (3.7) million euros, partly offset by (8.1) million euros of other permanent differences. 6.6 EARNINGS PER SHARE Accounting principles EPS (earnings per share) are calculated by dividing the profit/(loss) for the period attributable to shareholders of Eutelsat Communications by the weighted average number of common shares outstanding during the period. Treasury shares are not considered in the earnings per share calculation. The following table shows the reconciliation between net income and net earnings attributable to shareholders (basic and diluted) used to compute earnings per share (basic and diluted): (in millions of euros) 30 June 2025 30 June 2026 Profit/(loss) for the period (1,105.9) (458.9) Share of income from subsidiaries attributable to non-controlling interests 24.0 1.6 NET EARNINGS USED TO COMPUTE EARNINGS PER SHARE (1,081.9) (457.3) Average number of basic shares 474,767,029 872,889,872 Basic earnings per share (2.279) (0.524) Diluted average number of shares 477,055,465 874,178,005 Diluted earnings per share (2.268) (0.523) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 20 EUTELSAT COMMUNICATIONS Consolidated financial statements as of June 2026
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NOTE 7 NOTES TO THE BALANCE SHEET 7.1 FIXED ASSETS 7.1.1 Goodwill and other intangibles Accounting principles Goodwill Business combinations are recognised using the purchase accounting method. The consideration transferred in return for control of the acquired entity is measured at fair value and includes contingent consideration, taking into account the probability of occurrence. The identifiable assets, liabilities and contingent liabilities of the entity are recognised at their fair values. The costs directly attributable to the acquisition are excluded from the transferred consideration and are recognised under other operating income and expenses once they are incurred. At the acquisition date, non-controlling interests may be computed at their fair value or as a portion of identifiable assets and liabilities of the acquired entity. The option for applying either of these two methods can be exercised on a transaction-by-transaction basis. At the first consolidation, all assets, liabilities and contingent liabilities of the acquired entity are measured at their fair value. In a takeover by successive acquisitions, the investment previously held is restated at its fair value at the acquisition date, while the ensuing gains or losses are recognised under income. Goodwill is measured in the functional currency of the acquired entity at the date of the combination at an amount equal to the difference between the aggregate fair value of the consideration paid and the fair value of the identifiable assets acquired, and the liabilities assumed. They are tested for impairment as detailed in note 7.1.4. Customer contracts and relationships Customer contracts and relationships acquired in a business combination are recorded at fair value on the acquisition date. The fair value is set by referring to the generally accepted methods such as those based on revenue or market value. These assets are amortised on a straight-line basis over their economic life, which is estimated on the basis of the average duration of the contractual relationships existing at the date of acquisition of Eutelsat and the expected contract renewal rates. The main customer relationship recognised in the Group’s financial statements is that of Eutelsat S.A. amortised over a 20-year period. Eutelsat brand The Eutelsat brand was recognised when Eutelsat S.A. was acquired by Eutelsat Communications in 2005. Other intangibles Other intangibles are composed of the cost of capitalised development, licences, priority rights with the International Telecommunication Union (ITU) and orbital rights. Development costs are capitalised and amortised over a period of 3 to 7 years if the Group can demonstrate that: ■ it has the technical capacity to realise the intangible asset and use it or sell it; ■ it has the intention and capacity to complete the software and use it or sell it; ■ it has the capacity to use or sell the intangible asset; ■ there is a likelihood that the intangible asset will yield future economic benefits for the Group; ■ there are sufficient technical, financial or other resources to realise the intangible; ■ it has the capacity to accurately assess the expenses attributable to the intangible during its development phase. Expenses incurred for research (or during the research phase of an in-house project) are recognised as expenses once they are incurred. Spectrum, orbital rights and licences are amortised over their useful lives which are as follows: ■ for spectrum and orbital rights, between 13 and 23 years; ■ for licences, between 1 and 13 years; ■ for Ku and Ka-band spectrum rights and licences for its low-earth orbit constellation, over an indefinite useful life. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements as of June 2026 EUTELSAT COMMUNICATIONS 21
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The changes in goodwill and intangible assets over the past two financial years were as follows: (in millions of euros) Goodwill Customer contracts and relationships Eutelsat brand Other intangibles Total GROSS ASSETS GROSS CARRYING AMOUNT AS AT 30 JUNE 2024 1,303.3 1,137.3 40.8 772.0 3,253.4 Acquisitions — — — 20.5 20.5 Transfers — — — 46.5 46.5 Foreign exchange differences (35.3) (21.0) — (34.1) (90.4) Disposals and scrapping of assets — — — — — Change in the scope of consolidation at net carrying amount(1) 14.2 — — (7.3) 6.9 Assets held for sale and other(3) (141.3) — — (1.5) (142.8) GROSS CARRYING AMOUNT AS AT 30 JUNE 2025 1,140.9 1,116.3 40.8 795.9 3,093.9 Acquisitions — — — 24.0 24.0 Transfers — — — 8.1 8.1 Foreign exchange differences 9.8 5.9 — 8.9 24.6 Disposals and scrapping of assets — (0.4) — — (0.4) Change in the scope of consolidation at net carrying amount — — — — — Assets held for sale and other(3) 141.3 — — 1.5 142.9 GROSS CARRYING AMOUNT AS AT 30 JUNE 2026 1,292.0 1,121.7 40.8 838.5 3,293.0 AMORTISATION AND IMPAIRMENT ACCUMULATED AMORTISATION AS AT 30 JUNE 2024 — (1,088.6) — (388.6) (1,477.2) Amortisation expense — (37.4) — (85.4) (122.8) Impairment losses(2) (535.0) — — — (535.0) Foreign exchange differences — 20.0 — 7.9 27.8 Reversals (disposals and scrapping of assets) — — — — — Transfers and other — — — — — Assets held for sale and other(3) 59.1 — — 1.1 60.1 ACCUMULATED AMORTISATION AS AT 30 JUNE 2025 (476.0) (1,106.0) — (465.0) (2,047.0) Amortisation expense — (3.7) — (89.1) (92.8) Impairment losses(2) — — — — — Reversals (disposals and scrapping of assets) — 0.4 — — 0.4 Foreign exchange differences — (5.7) — (3.0) (8.7) Transfers and other — — — (1.1) (1.1) Assets held for sale and other(3) (59.1) — — (1.1) (60.1) ACCUMULATED AMORTISATION AS AT 30 JUNE 2026 (535.0) (1,114.9) — (559.3) (2,209.2) NET CARRYING AMOUNT AS AT 30 JUNE 2024 1,303.3 48.7 40.8 383.4 1,776.2 NET CARRYING AMOUNT AS AT 30 JUNE 2025 664.9 10.3 40.8 330.9 1,046.9 NET CARRYING AMOUNT AS AT 30 JUNE 2026 757.0 6.8 40.8 279.2 1,083.8 (1) The change in the scope of consolidation relates to the software, right-of-use assets, concessions and patents contributed by OneWeb. (2) Contract impairment losses were mainly recognised under other operating expenses (see note 6.3). (3) As at 30 June 2025, this mainly included assets held for sale that were no longer classified as held for sale as at 30 June 2026. See note 7.5.2 “Other assets held for sale”. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 22 EUTELSAT COMMUNICATIONS Consolidated financial statements as of June 2026
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7.1.2 Tangible assets and construction in progress Accounting principles Satellites and other tangible assets are recognised at their acquisition cost, which includes all costs directly attributable to making the asset ready for use, less accumulated depreciation and any impairment. Satellite costs include all expenses incurred in bringing individual satellites into operational use, in particular manufacturing, launch and launch insurance costs, capitalised interest, satellite performance incentives, and costs directly associated with the monitoring of the satellite programme (studies, staff and consultancy costs). Borrowing costs incurred for the financing of tangible assets are capitalised with respect to the portion incurred during the period of construction. In the absence of a loan specifically related to the asset under construction, the capitalised interest is calculated on the basis of a capitalisation rate, which is equal to the weighted average of the Group's borrowing costs. The useful lives adopted by the Group are as follows: ■ 12 to 24 years for the geostationary satellites; ■ 7 years for the low-earth orbit satellites; ■ 5 to 10 years for traffic monitoring equipment; ■ 2 to 5 years for computer equipment; ■ 3 to 10 years for leasehold arrangements and improvements, including those related to Satellite Network Portals. Depreciation commences when the satellites enter technical service. The period between the launch of a satellite and its technical entry into service can vary between one and nine months depending on the propulsion method used by the satellite and, in the case of low-earth orbit satellites, the configuration of the constellation. Low-earth orbit satellites operate as part of a constellation which requires a minimum number of satellites to provide a viable commercial service and, as a result, the useful lives of individual low-earth orbit satellites are limited to the point that the constellation is no longer capable of delivering a viable commercial service. The Group conducts an annual review of the remaining useful lives of its in-orbit satellites on the basis of both their forecast utilisation and the technical assessment of their useful lives. If the useful life is reduced or extended, the amortisation schedule is revised prospectively. “Construction in progress” primarily consists of milestone completion payments for the construction of future satellites and advances paid in respect of launch vehicles and related launch insurance costs, together with ground network assets that are under construction. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements as of June 2026 EUTELSAT COMMUNICATIONS 23
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The changes in tangible assets over the past two financial years were as follows: (in millions of euros) Satellites Other tangible assets Assets under construction Total GROSS ASSETS GROSS CARRYING AMOUNT AS AT 30 JUNE 2024 7,332.7 826.4 833.4 8,992.6 Acquisitions 4.3 22.5 354.8 381.6 Disposals — (16.9) (8.7) (25.6) Scrapping of assets(1) (377.6) (6.0) (0.6) (384.2) Foreign exchange differences (157.8) (47.5) (37.6) (242.9) Change in the scope of consolidation at net carrying amount(2) (4.8) 23.5 (3.4) 15.4 Assets held for sale and other(4) — (419.7) (45.4) (465.1) Transfers and other(3) 225.5 379.2 (661.8) (57.1) GROSS CARRYING AMOUNT AS AT 30 JUNE 2025 7,022.5 761.5 430.7 8,214.7 Acquisitions — 33.2 630.9 664.2 Disposals — (0.1) (1.6) (1.7) Scrapping of assets(1) (243.5) 2.9 (82.9) (323.6) Foreign exchange differences 51.2 13.9 16.2 81.3 Change in the scope of consolidation at net carrying amount — — — — Assets held for sale and other(3) — 419.7 45.4 465.1 Transfers and other — 2.6 4.3 6.9 GROSS CARRYING AMOUNT AS AT 30 JUNE 2026 6,830.2 1,233.8 1,043.0 9,106.9 DEPRECIATION AND IMPAIRMENT ACCUMULATED DEPRECIATION AS AT 30 JUNE 2024 (3,708.4) (463.2) — (4,171.3) Depreciation expense (501.9) (110.8) — (612.7) Impairment losses(4) (182.9) 15.2 — (167.7) Reversals (disposals) — — — — Reversals (scrapping of assets)(1) 372.1 6.0 — 378.1 Foreign exchange differences 75.6 10.2 — 85.7 Assets held for sale and other(3) — 182.3 — 182.3 Transfers and other(2) 22.9 (13.3) — 9.6 ACCUMULATED DEPRECIATION AS AT 30 JUNE 2025 (3,922.7) (373.6) — (4,296.3) Depreciation expense (429.0) (118.0) — (546.9) Impairment losses(4) (111.3) 2.0 — (109.2) Reversals (disposals) — 0.6 — 0.6 Reversals (scrapping of assets)(1) 250.1 (2.9) — 247.1 Foreign exchange differences (33.3) 2.2 — (31.1) Assets held for sale and other(3) — (182.3) — (182.3) Transfers and other — (12.0) — (12.0) ACCUMULATED DEPRECIATION AS AT 30 JUNE 2026 (4,246.2) (684.0) — (4,930.3) NET CARRYING AMOUNT AS AT 30 JUNE 2024 3,624.5 363.3 833.5 4,821.3 NET CARRYING AMOUNT AS AT 30 JUNE 2025 3,099.8 387.9 430.7 3,918.4 NET CARRYING AMOUNT AS AT 30 JUNE 2026 2,584.0 549.7 1,043.0 4,176.7 (1) Asset scrapping and the related reversals of impairment losses mainly related, respectively, to the retirement of the E33E satellite and several transponders as at 30 June 2025 and to the early termination of the Thales contract relating to the supply of the E113WX satellite as at 30 June 2026 (see note 2.3). (2) No material impact as at 30 June 2025 and 30 June 2026. (3) Transfers during the financial year ended 30 June 2025 mainly related to the commissioning of the E36D satellite and investments in the ground network supporting the low-earth orbit activity, primarily the activation of the 20 Airbus OS and SpaceX satellites. (4) As at 30 June 2025, this mainly included assets held for sale that were no longer classified as held for sale as at 30 June 2026. See note 7.5.2 “Other assets held for sale”. (5) The impairment losses as at 30 June 2025 mainly related to the E117WB, E117WA and E115WB satellites, while those at 30 June 2026 mainly related to the Konnect VHTS satellite. (6) “Construction in progress” mainly relates to the acquisition of LEO satellites (see note 2). NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 24 EUTELSAT COMMUNICATIONS Consolidated financial statements as of June 2026
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The Group recognised satellite impairment losses of -111.3 million euros and -182.9 million euros as at 30 June 2026 and 30 June 2025 , respectively. 7.1.3 Rights of use in respect of lease agreements Accounting principles Contracts under which the Group uses a specific asset are recognised as assets on the balance sheet in the form of a right of use, and a liability on the liabilities side, where the contractual terms are such that they qualify as leases, i.e. they transfer control of the asset over the entire lease term. Rights of use are generally amortised over the term of the lease covering the non-cancellable period supplemented, where applicable, by renewal options, which the Group is reasonably certain to exercise. The discount rate used to calculate the value of the right of use and the lease liability is determined, for each contract, on the basis of the corresponding estimated incremental borrowing rate. Assets with a low unit value and leases with a term of less than 12 months are recognised as expenses. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements as of June 2026 EUTELSAT COMMUNICATIONS 25
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During the last two financial years, the rights of use saw the following changes: (in millions of euros) Satellites Other tangible assets Total GROSS ASSETS GROSS CARRYING AMOUNT AS AT 30 JUNE 2024 749.1 210.3 959.3 New contracts — 16.8 16.8 Modifications and early terminations of contracts (139.5) (6.3) (145.8) Scrapping of assets — — — Foreign exchange difference (0.1) (13.8) (13.9) Change in the scope of consolidation at net carrying amount — 1.1 1.1 Assets held for sale and other(1) — (128.5) (128.5) GROSS CARRYING AMOUNT AS AT 30 JUNE 2025 609.5 79.7 689.3 New contracts — 5.4 5.4 Modifications and early terminations of contracts (221.9) (2.3) (224.2) Scrapping of assets — — — Foreign exchange difference — 3.3 3.3 Change in the scope of consolidation at net carrying amount — — — Assets held for sale and other(1) — 128.5 128.5 GROSS CARRYING AMOUNT AS AT 30 JUNE 2026 387.6 214.6 602.3 DEPRECIATION AND IMPAIRMENT ACCUMULATED DEPRECIATION AND IMPAIRMENT AS AT 30 JUNE 2024 (478.6) (51.6) (530.2) Depreciation expense (44.1) (28.3) (72.4) Impairment losses (2.9) — (2.9) Reversals (modifications and early terminations of contracts) 96.1 6.7 102.8 Reversals (scrapping of assets) — — — Foreign exchange differences — 3.1 3.1 Assets held for sale and other(1) — 39.8 39.8 ACCUMULATED DEPRECIATION AND IMPAIRMENT AS AT 30 JUNE 2025 (429.6) (30.3) (459.9) Depreciation expense (35.9) (27.0) (62.9) Impairment losses 3.3 — 3.3 Reversals (modifications and early terminations of contracts) 187.0 2.3 189.3 Reversals (scrapping of assets) — — — Foreign exchange differences — (1.3) (1.3) Assets held for sale and other(1) — (39.8) (39.8) ACCUMULATED DEPRECIATION AND IMPAIRMENT AS AT 30 JUNE 2026 (275.0) (96.2) (371.2) NET CARRYING AMOUNT AS AT 30 JUNE 2024 270.4 158.7 429.1 NET CARRYING AMOUNT AS AT 30 JUNE 2025 180.0 49.4 229.4 NET CARRYING AMOUNT AS AT 30 JUNE 2026 112.6 118.5 231.1 (1) As at 30 June 2025, this mainly included assets held for sale that were no longer classified as held for sale as at 30 June 2026. See note 7.5.2 “Other assets held for sale”. Satellite rights of use mainly relate to the Express 36C and Astra 2G lease agreements. The Express AT1, Express AT2 and Express AM6 lease agreements were terminated early. The terms of these leases cover the expected lifespan of this type of satellite and, as such, none of these contracts include purchase options upon termination of the contract. No renewal options have been considered to determine the term of the leases. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 26 EUTELSAT COMMUNICATIONS Consolidated financial statements as of June 2026
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7.1.4 Impairment tests of non-current assets Accounting principles Goodwill and non-amortisable intangible assets Goodwill and other intangible assets with an indefinite useful life, such as the brand name and the low-earth orbit priority rights with the International Telecommunication Union (ITU) and orbital rights are tested for impairment annually, or whenever an event occurs which suggests that they may be impaired. Depreciable and amortisable assets For tangible fixed assets and intangible assets with finite useful lives, an impairment test is performed when there is an external or internal indication that their recoverable values may be lower than their carrying amounts (for example, the loss of a major customer or a technical incident affecting a satellite). An impairment test consists of appraising the recoverable amount of an asset, which is the higher of its fair value net of disposal costs and its value in use. If it is not possible to estimate the recoverable value of a particular asset, the Group determines the recoverable amount of the cash generating unit (CGU) with which it is associated. A cash-generating unit is the smallest identifiable group of assets that generates cash inflows largely independent of the cash inflows from other assets or groups of assets. In order to define its CGUs, the Group takes into account the conditions of use of its fleet and in particular the capacity of certain satellites to be used as back-up for other satellites. CGUs correspond to orbital positions, carrying one or more satellites, as well as customer contracts and relationships (after taking into account the technical or economic interdependence of their cash flows). The low-earth orbit constellation, including the ground network assets and the associated International Telecommunication Union (ITU) priority rights, represents a single CGU as none of the individual assets generate cash inflows independent of the other assets as all these assets are required to deliver connectivity services to customers. The Group estimates value in use on the basis of estimated future cash flows. These are generated by the asset or the CGU during its useful life and are discounted using the Group's WACC defined for the impairment testing, based on the medium-term plan approved by Management and reviewed by the Board of Directors. Revenue in the medium-term plan is based upon the order backlog for each CGU, market studies, and the deployment plan for existing and future satellites. Costs included in the plan that are used for the impairment test include in-orbit insurance costs, technical and commercial costs directly attributable to the CGU tested, as well as tax expenses. Beyond a maximum five-year period, cash flows are estimated on the basis of constant rates of growth or decline for the activity related to geostationary satellites and specific rates for the activity related to satellites in low Earth orbit due to the investment phases prior to this activity in development. The fair value less costs of disposal is equal to the amount that could be received from the sale of the asset (or of one CGU) in the course of an arm’s length transaction between knowledgeable, willing parties, less the costs relating to the transaction. Impairment losses and reversals of impairment losses are recognised under the items other operating income and other operating expenses. Goodwill The Group’s historical goodwill, i.e. before the takeover of OneWeb, is the result of acquisitions related to the geostationary satellite operations. This goodwill is therefore tracked on the basis of the cash flows arising from the activity linked to the geostationary satellites. The acquisition of OneWeb has resulted in the recognition of additional goodwill amounting to 27 million euros. At end-June 2026, the Group's goodwill was almost exclusively allocated to the geostationary satellite activity. At the end of June 2026, as part of the preparation of the full-year financial statements, the Group carried out two goodwill impairment tests: ■ an initial test based on the assets and recoverable value of the Group's geostationary satellite activities (“GEO goodwill impairment test”); and ■ a second test based on the assets and recoverable value of the Group’s low-earth orbit satellite activities (“LEO goodwill impairment test”). The results of these tests are presented below. GEO goodwill impairment test The forecasts used over a finite seven-year period were based in particular on the Group business plan approved by the Board of Directors on 6 August 2026 and covering the period through to the 2029-30 financial year. Beyond the 2032-33 financial year, the test includes a terminal value based on a perpetual negative growth assumption of -2.5%. The Group considers it relevant to use projections beyond five years given the long-term visibility it has over a significant portion of its business activity and on its expected growth profile which is more accurately captured in the long-term plan. The discount rate applied is a WACC (Weighted Average Cost of Capital) of 8.2%. The main operating assumptions impacting the recoverable value of the assets are the level of EBITDA and the amount of capital expenditure required for the realisation of the cash flows assumed in the forecast. The operational assumptions in the long-term plan are based on internal market models of the trends in the Group's business growth and on market data provided by independent experts. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements as of June 2026 EUTELSAT COMMUNICATIONS 27
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The outcome of this test carried out as at 30 June 2026 did not identify any impairment loss to be recognised, as the calculation indicated headroom of 250 million euros. The test is particularly sensitive to the discount rate (a WACC of 8.2%) and the growth rate applied to perpetuity (-2.5%). The sensitivity analyses of the impairment of the assets of this CGU to these assumptions were as follows (for each sensitivity analysis, and unless otherwise indicated, the sensitivity was applied to each year of the explicit forecast period as well as to the terminal year): (in millions of euros) Assumption used WACC 8.95% 8.70% 8.45% 8.20% 7.95% 7.70% 7.45% Headroom 46.7 111.6 179.3 250.2 324.4 402.2 483.9 Growth rate (4.00%) (3.50%) (3.00%) (2.50%) (2.00%) (1.50%) (1.00%) Headroom 33.6 99.6 171.5 250.2 336.5 431.8 537.4 Annual change in EBITDA (1.50%) (1.00%) (0.50%) —% 0.50% 1.00% 1.50% Headroom 177.4 201.7 225.9 250.2 274.4 298.7 322.9 Change in capex for each year (in millions of euros) 30.0 20.0 10.0 — (10.0) (20.0) (30.0) Headroom (49.7) 50.3 150.2 250.2 350.1 450.1 550.0 LEO goodwill impairment test The Group determined the recoverable amount of the LEO CGU based on discounted cash flow projections and concluded that the cash flow forecasts could be projected through to 2040. These forecasts incorporate, in particular, the business plan covering the period through to the 2029-30 financial year approved by the Board of Directors on 6 August 2026 and the business plan through to the 2039-40 financial year presented to the Board of Directors. This forecast beyond the business plan approved by the Board of Directors was prepared on the basis of known information relating to the Group’s future plans, in particular the IRIS² project. This extended forecast period reflects the long-term investment cycle associated with the Group’s business, notably within the framework of the IRIS² project. To determine the value in use, a terminal value is included in 2040, based on the assumed perpetual replacement of the constellation. A growth rate of 3.5% is included in this calculation and the discount rate used is 12.9%. The forecasts on which the impairment test is based assume continued significant growth in LEO revenue in the short and medium terms, in line with the business plan approved by the Board and correlated with LEO market growth over the longer term. Achieving these forecasts will require, among other factors, the successful launch of the additional satellites necessary to extend the operational life of the existing constellation, the successful delivery of the IRIS² programme, the achievement of sufficient technological maturity to reduce capacity costs, and the securing of the financing required to fund all planned investments. The result of this test did not reveal any impairment loss to be recognised, as the calculation indicated headroom of 222 million euros. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 28 EUTELSAT COMMUNICATIONS Consolidated financial statements as of June 2026
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The test is particularly sensitive to the discount rate applied (a WACC of 12.9%), the growth rate to perpetuity applied (3.5%) and the cost of the terminal value capacity (0.87 million euros/Gbit/s). The sensitivity analyses of the impairment of the assets of this CGU to these assumptions were as follows (for each sensitivity analysis, and unless otherwise indicated, the sensitivity was applied to each year of the explicit forecast period as well as to the terminal year): (in millions of euros) Assumption used WACC 13.7% 13.4% 13.2% 12.9% 12.7% 12.4% 12.2% Headroom (343.8) (167.3) 20.8 221.7 436.5 666.3 912.6 Growth rate 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% Headroom (277.6) (127.2) 38.5 221.7 425.6 653.7 910.6 Annual change in EBITDA (1.5%) (1.0%) (0.5%) 0.0% 0.5% 1.0% 1.5% Headroom 91.9 135.1 178.4 221.7 265.0 308.3 351.6 Capacity costs (€m/Gbit/s*) – Terminal value 15.0% 10.0% 5.0% 0.9 (5.0%) (10.0%) (15.0%) Headroom 52.6 108.9 165.3 221.7 278.1 334.5 390.9 Annual change in revenue (1.5%) (1.0%) (0.5%) —% 0.5% 1.0% 1.5% Headroom 92.0 135.3 178.5 221.7 264.9 308.2 351.4 Depreciable and amortisable assets Geostationary satellites Concerning the impairment tests carried out on the geostationary orbital position CGUs as at 30 June 2026, the cash flows used were mainly based on the Group business plan covering the period through to the 2029-30 financial year approved by the Board of Directors on 6 August 2026, and then on the cash flows extended to the end of the lifespan of the satellites based on a normative growth rate. As at 30 June 2026, these tests led to the recognition of an impairment charge of 111 million euros on the geostationary satellites (see note 7.1.2 “Tangible assets and construction in progress” and note 7.1.3 “Rights of use in respect of lease agreements”). As at 30 June 2025, the impairment loss amounted to 186 million euros. The impairments recognised reflect the insufficiency of the expected discounted cash flows compared to the carrying values of the assets for certain of the Group’s orbital positions. This reflects the fact that, for these orbital positions, the Group's most recent forecasts indicate lower operating cash flows due primarily to the increased competitive pressures observed during the period. Low-earth orbit constellation The carrying value of the Group's low-earth orbit constellation was determined at the time of the purchase price allocation based on a replacement cost. The value assigned to each satellite was then amortised over their lifespan. Continued investment in this constellation until the start-up of the IRIS² constellation is essential to maintaining priority rights with the International Telecommunication Union (ITU). These rights were recorded as intangibles with indefinite useful lives at their market value at the date of effective acquisition of OneWeb. As the Group expects to operate the satellites on an ongoing basis, the CGU's useful life is considered to be indefinite. As a result, the recoverable value of the constellation has been assessed through a single impairment test of the LEO CGU, including the OneWeb goodwill and reflecting the Group's long-term strategy. 7.1.5 Purchase commitments In addition to the items recognised on the balance sheet, the Group entered into commitments with suppliers for the acquisition of assets (satellites and other assets) and the provision of services amounting to a total of 1,579.8 million euros as at 30 June 2026 and 731.8 million euros as at 30 June 2025. The following table lists the future payments in respect of these commitments as at 30 June 2025 and 30 June 2026: (in millions of euros) As at 30 June 2025 As at 30 June 2026 Maturity within 1 year 383.9 957.5 From 1 to 2 years 186.6 310.2 From 2 to 3 years 64.2 130.7 From 3 to 4 years 17.2 26.8 Maturity exceeding 4 years 79.8 154.7 TOTAL 731.8 1,579.8 As at 30 June 2026 and 30 June 2025, these mainly related to purchase commitments with Airbus. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements as of June 2026 EUTELSAT COMMUNICATIONS 29
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7.2 INVESTMENTS IN ASSOCIATES Accounting principles The Group’s investments in associates recognised under the equity method are initially recognised at their cost of acquisition, including as appropriate the goodwill arising. Their carrying amount is then increased or reduced to take into account the Group’s share in the profits or losses generated after the acquisition date. After the application of the equity method and if there is an event indicating a potential loss in value, the carrying amount may be the subject of an impairment in the event that its recoverable value would be below its carrying amount. As at 30 June 2026, investments in associates corresponded to the Group's share in First Tech Web. (in millions of euros) 30 June 2025 30 June 2026 Investments in associates at the beginning of the period 12.1 8.8 Share of profit/(loss) of associates (2.4) (4.7) Translation adjustment (0.9) (0.2) INVESTMENTS IN ASSOCIATES AT THE END OF PERIOD 8.8 3.9 7.3 RECEIVABLES, ASSETS AND LIABILITIES ON CUSTOMER CONTRACTS AND COSTS TO OBTAIN AND FULFIL CONTRACTS Accounting principles Accounts receivable are recorded at their nominal value. They are subject to impairment, recognised in selling, general and administrative expenses, in order to cover the risk of expected future losses. These impairments are determined on the basis of a statistical approach to expected credit losses by market and region, after taking into account the deposits and guarantees received, and supplemented, where applicable, by a specific impairment in the event of payment default or significant financial difficulties on the part of a customer. Assets held under customer contracts include assets relating to revenue recognised in respect of variable prices or free periods not yet invoiced to the customer. The deferred costs of obtaining contracts correspond to the consideration paid to the customer. Contract fulfilment costs include the deferral of the cost of sales of Broadband terminals. Liabilities related to customer contracts consist of prepayments received from customers or invoiced prior to delivery of the services. Receivables, assets and liabilities on customer contracts and the costs to obtain and fulfil contracts are summarised as follows: (in millions of euros) 30 June 2025 30 June 2026 ASSETS Accounts receivable 327.3 340.8 Assets associated with customer contracts 52.0 60.3 Costs to fulfil contracts — — Costs to obtain contracts 4.8 4.9 TOTAL CURRENT AND NON-CURRENT ASSETS 384.1 406.1 ■ of which non-current portion 43.4 45.7 ■ of which current portion 340.7 360.3 LIABILITIES Financial liabilities – Guarantees and commitments received 29.2 29.0 Liabilities associated with customer contracts 513.6 497.8 TOTAL CURRENT AND NON-CURRENT LIABILITIES 542.8 526.8 ■ of which non-current portion 405.0 395.7 ■ of which current portion 137.8 131.1 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 EUTELSAT COMMUNICATIONS Consolidated financial statements as of June 2026
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7.3.1 Accounts receivable Accounts receivable (not yet due and overdue) are broken down as follows: (in millions of euros) 30 June 2025 30 June 2026 Receivables not yet due 107.7 200.0 Receivables overdue for between 0 and 90 days 84.7 49.7 Receivables overdue for between 90 and 365 days 86.6 42.1 Receivables overdue for more than 365 days 167.6 162.0 Impairment (119.2) (113.0) TOTAL 327.3 340.8 The provision for impairment of 113 million euros as at 30 June 2026 covered 69.8% of the receivables due for more than 365 days excluding invoiced deposits and 44.5% of all overdue receivables. In addition, given the nature of the activities and the geographies in which it operates, the Group is periodically required to collect receivables overdue for more than one year. Credit risk arising from a customer's failure to pay amounts due at the due date is tracked at the level of each entity under the supervision of the financial managers. In the most important cases, the relevant financial managers are assisted by a credit manager, acting in accordance with the instructions of the Group’s debt recovery service. This tracking is based mainly on an analysis of the amounts due and can be accompanied by a more detailed study of the creditworthiness of some debtors. Based on the assessment of the financial managers, entities may be required to hedge their credit risk by obtaining bank guarantees from first-tier financial institutions and insurance companies, and guarantee deposits from customers. The credit risk is mitigated by the following guarantees and commitments received: (in millions of euros) 30 June 2025 30 June 2026 Value of accounts receivable Value of guarantee Value of accounts receivable Value of guarantee Guarantee deposits 88.5 12.7 65.1 12.6 Bank or insurance guarantees 7.6 3.8 10.0 8.1 Guarantees from the parent company 1.8 2.6 3.8 3.8 TOTAL 97.9 19.1 78.9 24.4 Guarantee deposits are recognised as financial liabilities. Bank guarantees and guarantees from parent companies are not shown on the balance sheet. The Group's 10 largest clients accounted for 33.2% of revenue as at 30 June 2026 (33.4% as at 30 June 2025). The top five account for 20.0% of revenue (21.7% as at 30 June 2025). The changes in impairment of trade receivables over the two financial years were as follows: (in millions of euros) Total Value as at 30 June 2024 114.0 Change in scope — Net additions (reversals) 17.8 Reversals used (10.5) Foreign exchange differences (2.1) VALUE AS AT 30 JUNE 2025 119.2 Change in scope — Net additions (reversals) 19.8 Reversals used (26.6) Foreign exchange differences 0.6 VALUE AS AT 30 JUNE 2026 113.0 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements as of June 2026 EUTELSAT COMMUNICATIONS 31
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7.3.2 Assets associated with customer contracts, costs to obtain and fulfil non-current contracts (in millions of euros) Total Assets associated with customer contracts as at 30 June 2024 44.6 Use of assets associated with customer contracts during the period (8.7) New assets associated with customer contracts recorded during the period 16.1 Net reversals (impairment losses) — Translation adjustment (0.1) ASSETS ASSOCIATED WITH CUSTOMER CONTRACTS AS AT 30 JUNE 2025 52.0 Use of assets associated with customer contracts during the period 0.1 New assets associated with customer contracts recorded during the period 8.2 Net reversals (impairment losses) — Translation adjustment 0.1 ASSETS ASSOCIATED WITH CUSTOMER CONTRACTS AS AT 30 JUNE 2026 60.3 The costs to obtain and fulfil contracts are shown below: (in millions of euros) Total Costs to obtain and fulfil customer contracts as at 30 June 2024 4.9 Use of costs to obtain and fulfil customer contracts during the period (0.1) New costs to obtain and fulfil customer contracts recorded during the period — Changes in scope — COSTS TO OBTAIN AND FULFIL CUSTOMER CONTRACTS AS AT 30 JUNE 2025 4.8 Use of costs to obtain and fulfil customer contracts during the period — New costs to obtain and fulfil customer contracts recorded during the period 0.2 Changes in scope — COSTS TO OBTAIN AND FULFIL CUSTOMER CONTRACTS AS AT 30 JUNE 2026 4.9 7.3.3 Liabilities associated with customer contracts The liabilities associated with customer contracts are broken down as follows: (in millions of euros) Total Liabilities associated with customer contracts as at 30 June 2024 adjusted(1) 597.5 Revenue recognition during the period (146.0) New liabilities associated with customer contracts recorded during the period 82.6 Translation adjustment (20.5) Changes in scope LIABILITIES ASSOCIATED WITH CUSTOMER CONTRACTS AS AT 30 JUNE 2025 513.6 Revenue recognition during the period (142.0) New liabilities associated with customer contracts recorded during the period 119.8 Translation adjustment 6.4 Changes in scope — LIABILITIES ASSOCIATED WITH CUSTOMER CONTRACTS AS AT 30 JUNE 2026 497.8 (1) The comparative financial statements have been restated in order to adjust the position of the deferred income of the Eutelsat do Brasil LTDA subsidiary relating to a client contract dating from 2016 and including a financing component. The financial expense in the early years of the project had been undervalued, resulting in an over-valuation of the reversal of deferred income. The restatements were reflected in an increase in deferred income of 34.3 million euros and a negative net impact on shareholders' equity of (34.3) million euros as at 1 July 2024. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 32 EUTELSAT COMMUNICATIONS Consolidated financial statements as of June 2026
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7.4 FINANCIAL ASSETS AND LIABILITIES Accounting principles Cash and cash equivalents Cash mainly comprises cash in hand and demand deposits with banks. Cash equivalents mainly consist of short-term deposits with original maturities of three months or less, term accounts, as well as mutual fund investments that are easily convertible into a known amount of cash, the net asset value of which is determined and published daily and for which the risk of a change in value is insignificant. Mutual fund investments with fair value option through profit or loss are carried at fair value, with the resulting realised or unrealised gains or losses arising from the change in fair value recognised in finance income or expense. Financial liabilities Financial liabilities comprise bank loans, bond loans and structured debt. They are initially recognised at the fair value of the consideration received, less directly attributable transaction costs. These costs are recognised as loan issuance costs and premiums and are amortised over the term of the loan. Financial assets With the exception of derivative financial instruments and non-consolidated investments, financial assets are recorded at amortised cost. An impairment loss is recognised in the income statement when there is evidence of an impairment loss. Non-consolidated financial assets are measured at fair value. Financial liabilities Lease liabilities recognised in exchange for rights of use correspond to the aggregate of discounted future payments under the lease contracts. The discount rate used to measure these payables is determined by contract based on the estimated incremental borrowing rate of the entity that holds the contract. When the Group grants firm or conditional purchase commitments to non-controlling shareholders, the corresponding amount of non- controlling interests is reclassified as a financial liability to reflect the fair value of the commitment. The financial liability is revalued at each balance sheet date with a corresponding entry in shareholders' equity if no further details are provided by the IFRS standards. Derivative financial instruments Derivatives that do not qualify as hedging instruments are recognised at fair value, with subsequent changes in fair value recognised in finance income or expense. Derivatives qualifying as hedging instruments are measured and recognised on the basis of hedge accounting criteria. The Group uses derivative financial instruments to hedge cash flows (forwards and forwards KI) and the net investment of its subsidiaries in Mexico, Singapore and Dubai (cross-currency swap). Forwards, forwards KI and the interest rate component of the cross-currency swap are recorded as financial assets or liabilities depending on the position, while the exchange component is included in the Group's net debt. Hedging transactions are carried out using derivative financial instruments, the fair value changes of which are intended to offset the exposure of the hedged items to these same changes. Changes in fair value are recognised in shareholders' equity, within other recyclable components of comprehensive income, for the effective portion of the hedging relationship, while changes in fair value for the ineffective portion are recognised in finance income or expense. Cumulative changes in the fair value of the hedging instrument previously recognised in equity are reclassified to the income statement when the hedged transaction affects the income statement. The gains and losses thus transferred are recognised in the income statement in the same line item as the hedged item. 7.4.1 Cash and cash equivalents Cash and cash equivalents are detailed as follows: (in millions of euros) 30 June 2025 30 June 2026 Cash equivalents 411.8 1,643.9 Cash 106.0 119.0 TOTAL CASH AND CASH EQUIVALENTS 517.8 1,762.9 As of June 30, 2026, the cash of Eutelsat Communications, mainly coming from the capital increase operations carried out at the end of 2025, is invested mainly in mutual funds eligible to be considered cash equivalents. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements as of June 2026 EUTELSAT COMMUNICATIONS 33
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7.4.2 Financial liabilities Financial liabilities are broken down as follows: (in millions of euros) Rate 30 June 2025 30 June 2026 Maturity EIB bullet loan 1.26% 200 200 December 2028 2027 bullet loan Variable 400 June 2027 2028 bullet loan Variable 400 November 2028 2027 bond 2.25% 600 July 2027 2028 bond 1.50% 600 600 October 2028 2029 bond 9.75% 600 2031 bond 5.75% 850 March 2031 2033 bond 6.25% 650 March 2033 ECA-backed export financing facility 281 Amortisable from 30 June 2028. Last maturity 30 June 2034 Exim India amortisable loan Variable 58 Capex credit facility Variable 53 June 2027 SUB-TOTAL OF DEBT (NON-CURRENT PORTION) 2,511 2,981 Loan issuance costs and premiums (17) (96) TOTAL OF DEBT (NON-CURRENT PORTION) 2,493 2,885 2025 bond 2.00% 177 October 2025 Capex credit facility Variable 50 July 2025 Variable 53 July 2025 Variable 75 June 2026 Variable 53 June 2026 Variable 53 June 2027 Exim India amortisable loan Variable 15 November 2025, February 2026 and May 2026 Operating credit facility 8.50% to 8.55% 12 15 April 2027 Accrued interest not yet due 37.5 38 TOTAL DEBT (CURRENT PORTION) 471.9 105.3 TOTAL 2,965 2,990 With the exception of the export financing facility partially drawn in USD to the tune of 112.9 million euros at Eutelsat Communications, and the operating credit facility granted by Indian banks to OneWeb India, all of the Eutelsat Group’s external financial liabilities are denominated in euros. The Eutelsat S.A. CapEx financing facility is subject to a financial covenant that requires a ratio of consolidated net debt (for Eutelsat S.A.) to adjusted consolidated EBITDA (for Eutelsat S.A.) of less than or equal to 4.00:1. Some of Eutelsat Communications’ financing facilities also have a financial covenant that requires a ratio of consolidated net debt (for the Eutelsat Group) to adjusted consolidated EBITDA (for the Eutelsat Group) of less than or equal to 4.00 to 1. The relevant facilities are: the EIB bullet loan, the 2028 bullet bank loan, the 500 million euro committed credit facility (not drawn as at 30 June 2026) and the export financing facility. Under the bullet loan covenants, each lender may request early repayment of all amounts due in the event of a change of control at Eutelsat S.A. or Eutelsat Communications. The bonds issued by Eutelsat S.A. and Eutelsat Communications are also subject to a covenant that provides for the early repayment of all amounts due in the event of a change of control of Eutelsat S.A. or Eutelsat Communications. As at 30 June 2026, the Group was in compliance with all the banking covenants. Eutelsat Communications’ financing arrangements are subject to upstream guarantees in favour of the lenders provided by Eutelsat S.A. and OneWeb Holding. Conversely, the lenders in Eutelsat S.A.’s financing arrangements do not benefit from any guarantee, security interest or pledge. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 34 EUTELSAT COMMUNICATIONS Consolidated financial statements as of June 2026
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The credit arrangements include a commitment to maintain “Launch- plus-one-year” insurance policies for any satellite located at 13° East and, for any other satellites, a commitment not to have more than one satellite that is not covered by a launch insurance policy. In addition, as at 30 June 2026, Eutelsat Communications had a committed credit facility for an aggregate undrawn amount of 500 million euros (compared with 550 million euros as at 30 June 2025). This credit facility is subject to a banking covenant similar to those in place for the bullet loans and the export financing facility. The schedule of debt maturities, excluding issue costs and premiums and accrued interest not yet due as at 30 June 2026, is as follows: (in millions of euros) Amount Maturity within 1 year Maturity between 1 and 5 years Maturity exceeding 5 years EIB bullet loan 200.0 200.0 2028 bullet loan 400.0 400.0 ECA-backed export financing facility 280.7 152.4 128.3 Capex credit facility 53.0 53.0 Operating credit facility 14.8 14.8 2028 bond 600.0 600.0 2031 bond 850.0 850.0 2033 bond 650.0 650.0 TOTAL 3,048.5 67.8 2,202.4 778.3 7.4.3 Other financial assets and liabilities The detailed breakdown of the other financial assets is as follows: (in millions of euros) 30 June 2025 30 June 2026 Non-consolidated equity investments 5.1 6.7 Derivative financial instruments(1) 45.6 1.1 Other financial assets 141.4 141.8 TOTAL 192.0 149.7 ■ of which current portion 56.6 18.8 ■ of which non-current portion 135.4 134.6 (1) See note 7.4.5 “Derivative financial instruments”. The other debts and financial liabilities are broken down as follows: (in millions of euros) 30 June 2025 30 June 2026 Lease liabilities(1) 201.4 178.8 Other liabilities 80.8 69.8 Payables to suppliers of property, plant and equipment 91.8 200.4 Derivative financial instruments(2) 6.7 51.0 Liabilities for social contributions 84.5 71.9 Tax liabilities 24.6 30.9 TOTAL 489.8 602.9 ■ of which current portion 302.3 408.3 ■ of which non-current portion 187.5 194.5 (1) Includes the liabilities classified as held for sale, see note 7.5.2 “Liabilities held for sale”. This only relates to the financial year ended 30 June 2025. (2) See note 7.4.5 “Derivative financial instruments”. As the construction of certain satellites progresses, the acceptance of milestone payments leads to the recognition of an asset under construction and an account payable. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements as of June 2026 EUTELSAT COMMUNICATIONS 35
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The changes in lease liabilities during the period are broken down as follows: (in millions of euros) 30 June 2025 New contracts Change in scope Cash flow Other(1) Currency effects Change in accrued interest 30 June 2026 Satellites 164.6 0.1 — (24.7) (81.7) (0.5) (2.1) 55.8 Real estate 36.8 5.9 — (27.9) 105.4 2.8 — 123.0 TOTAL 201.4 6.0 — (52.5) 23.8 2.3 (2.1) 178.8 (1) Includes liabilities previously reclassified as liabilities held for sale relating to Stargate, see note 7.5.2 “Liabilities held for sale”. This relates to the impairment losses on the AT1, AT2 and AM6 satellites in the amount of 71.6 million euros. The amounts shown for lease liabilities include accrued interest totalling 1.9 million euros as at 30 June 2025 and 0.3 million euros as at 30 June 2026. 7.4.4 Net debt Net debt breaks down as follows: (in millions of euros) 30 June 2025 30 June 2026 2027 bullet loan 400.0 2028 bullet loan 400.0 EIB bullet loan 200.0 200.0 Bonds 1,976.6 2,100.0 Capex credit facility 284.0 53.0 ECA-backed export financing facility 280.7 Operating credit facility 11.7 14.8 Lease debt 199.5 179.1 GROSS DEBT 3,144.4 3,227.6 Cash and cash equivalents (517.8) (1,762.9) NET DEBT 2,626.6 1,464.6 The changes in the debt position between 30 June 2024 and 30 June 2025 are presented below: (in millions of euros) 30 June 2024 Cash flow Non-cash items Change in scope Currency effects Changes in fair value and other movements 30 June 2025 2027 bullet loan 400.0 — — — — — 400.0 EIB bullet loan 200.0 — — — — — 200.0 Bonds 1,977.0 — — — — (0.4) 1,976.6 Capex credit facility 284.0 — — — — — 284.0 Cross-currency swap component 23.5 (30.8) — — — 7.3 — Exim India loan 88.0 (9.1) — — (6.3) — 72.6 Operating credit facility 2.3 — 9.4 — — 11.7 Lease debt 409.3 (61.1) (37.5) 0.8 (11.4) (100.6) 199.5 TOTAL 3,381.8 (98.7) (37.5) 10.2 (17.7) (93.7) 3,144.4 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 36 EUTELSAT COMMUNICATIONS Consolidated financial statements as of June 2026
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The changes in the debt position between 30 June 2025 and 30 June 2026 are presented below: (in millions of euros) 30 June 2025 Cash flow Non-cash items Change in scope Currency effects Changes in fair value and other movements 30 June 2026 Bullet loan 400.0 (400.0) — — — — — 2028 bullet loan — 400.0 — — — 400.0 EIB bullet loan 200.0 — — — — — 200.0 Bonds 1,976.6 123.4 — — — — 2,100.0 ECA-backed export financing facility 280.7 280.7 Operating credit facility 11.7 4.0 — — (0.9) — 14.8 Capex credit facility 284.0 (231.0) — — — — 53.0 Exim India loan 72.6 (73.5) — — 0.9 — — Lease debt 199.5 (52.5) 6.0 — 2.3 23.8 179.1 TOTAL 3,144.4 51.1 6.0 — 2.3 23.8 3,227.6 The debt shown in this table does not take into account issuance costs and premiums, accrued interest not yet due on borrowings and accrued interest not yet due on lease liabilities. 7.4.5 Derivative financial instruments Derivative financial instruments are valued by an independent expert before being reconciled with the valuations provided by bank counterparties. The following table presents the contractual or notional amounts together with the fair values of the derivative financial instruments by type of contract. (in millions of euros) Notional Fair value Change in fair value over the period Impact on income (excl. coupons) Impact equity (excl. coupons) 30 June 2025 30 June 2026 30 June 2025 30 June 2026 Forward foreign exchange contracts and cross-currency swaps designated as CFH 125.6 620.5 10.7 (9.7) (20.4) — (20.4) Forward foreign exchange contracts and cross-currency swaps designated as FVH 760.7 1,734.1 28.2 (36.8) (65.0) (65.8) 0.7 TOTAL CURRENCY INSTRUMENTS 886.3 2,354.6 38.9 (46.5) (85.4) (65.7) (19.7) Coupons on interest rate instruments qualifying as future cash flow hedges are posted directly to income. The change recognised in equity in respect of these instruments corresponds to the change in fair value net of coupons. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements as of June 2026 EUTELSAT COMMUNICATIONS 37
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The fair value and maturities of derivatives qualifying as hedges are as follows: (in millions of euros) Fair value deferred in equity and to be reclassified to profit or loss as at 30 June 2025 Total 1 year at most 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years More than 5 years Foreign exchange risk hedges 38.9 41.2 (0.5) (0.6) (1.2) — — NET TOTAL AS AT 30 JUNE 2025 38.9 41.2 (0.5) (0.6) (1.2) — — (in millions of euros) Fair value deferred in equity and to be reclassified to profit or loss as at 30 June 2026 Total 1 year at most 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years More than 5 years Foreign exchange risk hedges (46.5) (41.1) (1.7) (4.0) (0.7) (0.4) 1.5 NET TOTAL AS AT 30 JUNE 2026 (46.5) (41.1) (1.7) (4.0) (0.7) (0.4) 1.5 7.4.6 Risk management The Group is exposed to market risks, principally in terms of currency and interest rates. To address this, the Group uses a certain number of financial derivatives. The Group does not engage in financial transactions whose associated risk cannot be quantified at maturity, i.e. the Group never sells assets it does not hold, or about which it is uncertain whether it will subsequently hold them. The objective is to limit, where appropriate, the fluctuation of revenue and cash flows due to variations in interest rates and foreign- exchange rates. Foreign exchange risk Through the sale of its satellite capacity, the Group is a net receiver of currencies, mainly the U.S. dollar. As it also purchases assets (namely some of its satellites and launch vehicles) in U.S. dollars, the Group is primarily exposed to the risk of fluctuations in the euro/U.S. dollar exchange rate. In order to hedge foreign exchange risks, the Group may be compelled to use forward sales or synthetic forward transactions with knock-in options on U.S. dollars against the euro, which may or may not be exercised, depending on the exchange rate at their expiry date. However, the Group cannot guarantee that it will be able to systematically hedge all of its U.S. dollar-denominated contracts. Intra-group loans are primarily hedged using forward contracts. Given its exposure to foreign currency risk, the Group estimates that a 10% increase in the euro/U.S. dollar exchange rate (excluding foreign exchange derivatives) would result in a 60.4 million euro decline in the Group’s revenue and a 23.6 million euro decline in operating expenses. It would also result in a 85 million euros negative variation in the Group's translation reserve. Interest rate risk The Group manages its exposure to interest rate fluctuations by maintaining a portion of its debt at fixed rates (bonds) and, where necessary, by applying a hedging or pre-hedging policy. The variable-rate export financing facility is also hedged through a portfolio of interest rate swaps in euros and USD. Considering the full range of financial instruments available to the Group as at 30 June 2026 , an increase of 10 basis points (+0.1%) over the EURIBOR interest rate would have a non-material impact on the interest expense with the revaluation of the financial instruments having an impact on the income statement. Financial counterparty risk Financial counterparty risk includes issuer risk, execution risk in connection with derivatives or monetary instruments, and credit risk related to liquidity and forward investments. The Group minimises its exposure to issuer, execution and credit risk by acquiring financial products from first-rate financial institutions and banks. Exposure to these risks is closely monitored. The Group does not foresee any losses resulting from a failure by its counterparts to respect their commitments under the agreements it has concluded. As at 30 June 2026 , the counterparty risk associated with these operations is not deemed to be significant. Liquidity risk The Group manages liquidity risk by taking into account the maturity of financial investments, financial assets and estimated future cash flows from the operating activities. The Group’s objective is to maintain a balance between the continuity of its funding needs and their flexibility through the use of overdraft facilities, bullet loans, revolving lines of credit from banks, bond loans and satellite lease agreements. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 38 EUTELSAT COMMUNICATIONS Consolidated financial statements as of June 2026
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The Group’s debt maturity profile breaks down as follows: Carrying value Total contractual cash flows Schedule at 30 June 2026 As at 30 June 2026 (in millions of euros) June-27 June-28 June-29 June-30 June-31 More than 5 years Bullet loan (400.0) (443.1) (18.1) (18.2) (406.8) — — — EIB bullet loan (200.0) (206.2) (2.5) (2.5) (201.1) — — — Bond issues (2,100.0) (2,623.5) (98.5) (98.8) (692.1) (89.5) (925.2) (719.5) ECA-backed export financing facility (280.7) (334.5) (10.3) (32.1) (52.6) (51.1) (49.5) (138.9) Capex credit facility (53.0) (55.5) (55.5) — — — — — Lease debt (179.1) (227.6) (48.7) (45.2) (38.2) (31.8) (24.4) (39.3) Designated derivatives(1) (48.0) (48.0) (48.0) TOTAL FINANCIAL LIABILITIES (3,260.8) (3,938.4) (281.7) (196.8) (1,390.8) (172.3) (999.0) (897.7) Other financial liabilities (175.6) (175.6) (115.0) (60.6) TOTAL FINANCIAL LIABILITIES (3,436.4) (4,114.0) (396.7) (257.4) (1,390.8) (172.3) (999.0) (897.7) Designated derivatives(1) 1.1 1.1 1.1 — — — — Financial assets 154.2 154.2 19.5 134.6 — — — — Cash 119.0 119.0 119.0 — — — — — Cash equivalents 1,643.9 1,643.9 1,643.9 — — — — — TOTAL FINANCIAL ASSETS 1,918.2 1,918.2 1,783.6 134.6 — — — — NET POSITION (1,518.2) (2,195.8) 1,386.9 (122.8) (1,390.8) (172.3) (999.0) (897.7) (1) The amounts broken down under derivative instruments are recognised at fair value (not as contractual cash flows). Schedule at 30 June 2025 As at 30 June 2025 (in millions of euros) Carrying value Total contractual cash flows June-26 June-27 June-28 June-29 June-30 More than 5 years Bullet loan (400.0) (432.1) (16.0) (416.0) — — — — EIB bullet loan (200.0) (208.7) (2.5) (2.5) (2.5) (201.1) — — Bonds (1,976.6) (2,258.0) (261.2) (81.0) (667.9) (1,247.8) — — Exim India (72.6) (87.3) (20.5) (25.1) (23.3) (18.4) — — Capex credit facility (284.0) (295.7) (240.0) (55.7) — — — — Operating credit facility (11.7) (11.7) (11.7) — — — — — Lease debt (199.5) (287.2) (92.9) (51.1) (40.6) (41.9) (37.0) (23.7) Designated derivatives(1) (6.7) (6.7) (4.4) (0.5) (0.6) (1.2) — — TOTAL FINANCIAL LIABILITIES (3,151.1) (3,587.4) (649.3) (632.0) (735.0) (1,510.4) (37.0) (23.7) Other financial liabilities (192.2) (192.2) (146.6) (45.6) — — — — TOTAL FINANCIAL LIABILITIES (3,343.3) (3,779.6) (795.9) (677.6) (735.0) (1,510.4) (37.0) (23.7) Designated derivatives(1) 45.6 45.6 45.6 — — — — — Financial assets 146.6 146.6 11.2 135.3 — — — — Cash 106.0 106.0 106.0 — — — — — Cash equivalents 411.8 411.8 411.8 — — — — — TOTAL FINANCIAL ASSETS 710.0 710.0 574.6 135.4 — — — — NET POSITION (2,633.4) (3,069.6) (221.3) (542.2) (735.0) (1,510.4) (37.0) (23.7) (1) The amounts broken down under derivative instruments are recognised at fair value (not as contractual cash flows). 7.4.7 Other commitments Within the framework of commercial contracts or specific bilateral agreements, the Group has issued bank guarantees in favour of third parties. As at 30 June 2026, the amount of these bank guarantees stood at 165.2 million euros. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements as of June 2026 EUTELSAT COMMUNICATIONS 39
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7.5 ASSETS AND LIABILITIES HELD FOR SALE As the assets and liabilities initially identified as part of the transaction for the disposal of passive ground infrastructure no longer met the definition of assets and liabilities held for sale at 30 June 2026, following the discontinuation of the project (see section 2.4), they were consequently reclassified into the relevant asset and liability categories of the balance sheet. 7.5.1 Assets held for sale (in millions of euros) Note 30 June 2025 30 June 2026 ASSETS HELD FOR SALE Goodwill 7.1.1 82.3 — Intangible assets 7.1.1 0.5 — Tangible assets and construction in progress 7.1.2 282.8 — Rights of use in respect of leases 7.1.3 88.7 — TOTAL NON-CURRENT ASSETS 454.2 — TOTAL CURRENT ASSETS — TOTAL ASSETS 454.2 — 7.5.2 Liabilities held for sale (in millions of euros) Note 30 June 2025 30 June 2026 LIABILITIES HELD FOR SALE TOTAL SHAREHOLDERS’ EQUITY — Non-current lease liabilities 7.4.3 89.7 — TOTAL NON-CURRENT LIABILITIES — Current lease liabilities 7.4.3 11.0 — TOTAL CURRENT LIABILITIES — TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 100.7 — NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 40 EUTELSAT COMMUNICATIONS Consolidated financial statements as of June 2026
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7.6 FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is defined as the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction. 7.6.1 Fair value of financial assets The following tables break down each asset comprising financial instruments and show its fair value, whether or not the instrument is recorded on the balance sheet at fair value: (in millions of euros) 30 June 2025 Total Instruments measured at amortised cost Fair value through other items of income Fair value through the income statement Fair value as at 30 June 2025 NON-CURRENT ASSETS Long-term loans and advances 135.3 135.3 — — 135.3 Assets associated with customer contracts 43.4 43.4 — — 43.4 CURRENT ASSETS Accounts receivable 327.3 327.3 — — 327.3 Assets associated with customer contracts 13.4 13.4 — — 13.4 Other receivables 11.2 11.2 — — 11.2 DERIVATIVE FINANCIAL INSTRUMENTS(1) Designated as hedges 45.6 — 45.6 — 45.6 CASH AND CASH EQUIVALENTS Cash 106.0 — — 106.0 106.0 Cash equivalents(2) 411.8 — — 411.8 411.8 (1) Fair value hierarchy: level 2 (observable inputs other than quoted prices in active markets). (2) Fair value hierarchy: level 1 (reflecting quoted prices). (in millions of euros) 30 June 2026 Total Instruments measured at amortised cost Fair value through other items of income Fair value through the income statement Fair value as at 30 June 2026 NON-CURRENT ASSETS Long-term loans and advances 134.6 134.6 — — 134.6 Assets associated with customer contracts 45.7 45.7 — — 45.7 CURRENT ASSETS Accounts receivable 340.8 340.8 — — 340.8 Assets associated with customer contracts 19.5 19.5 — — 19.5 Other receivables 17.6 17.6 — — 17.6 DERIVATIVE FINANCIAL INSTRUMENTS(1) Designated as hedges 1.1 — 1.1 — 1.1 CASH AND CASH EQUIVALENTS Cash 119.0 — — 119.0 119.0 Cash equivalents(2) 1,643.9 — — 1,643.9 1,643.9 (1) Fair value hierarchy: level 2 (observable inputs other than quoted prices in active markets). (2) Fair value hierarchy: level 1 (reflecting quoted prices). Except for derivative financial instruments and non-consolidated shares, the carrying amount of the financial assets represents a reasonable approximation of their fair value. As at 30 June 2026 , the total fair value of derivative financial instruments amounted to 1.1 million euros (compared with 45.6 million euros as at 30 June 2025 ) (see note 7.4.3 “Other financial assets and liabilities”). NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements as of June 2026 EUTELSAT COMMUNICATIONS 41
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7.6.2 Fair value of financial liabilities The following tables break down each liability comprising financial instruments and show its fair value, whether or not the instrument is recorded on the balance sheet at fair value: (in millions of euros) Total 30 June 2025 Instruments measured at amortised cost Derivative instruments qualified as hedges Instruments measured at fair value through the income statement Fair value as at 30 June 2025 FINANCIAL LIABILITIES Floating rate loans 756.6 756.6 — — 756.6 Bond(1) 1,959.3 1,959.3 — — 1,959.3 Fixed rate loans 211.7 211.7 — — 211.7 Bank overdrafts — — — — — OTHER FINANCIAL LIABILITIES Non-current 187.5 187.5 — — 187.5 Current 203.8 203.8 — — 203.8 DERIVATIVE FINANCIAL INSTRUMENTS(2) Designated as hedges 6.7 — 6.7 — 6.7 Accounts payable 117.1 117.1 — — 117.1 Fixed assets payable 91.8 91.8 — — 91.8 (1) Fair value hierarchy: level 1 (reflecting quoted prices). (2) Fair value hierarchy: level 2 (observable inputs other than quoted prices in active markets). (in millions of euros) Total 30 June 2026 Instruments measured at amortised cost Derivative instruments qualified as hedges Instruments measured at fair value through the income statement Fair value as at 30 June 2026 FINANCIAL LIABILITIES Floating rate loans 453.0 453.0 — — 453.0 Bond(1) 2,119.3 2,119.3 — — 2,119.3 Fixed rate loans 214.8 214.8 — — 214.8 Bank overdrafts — — — — — OTHER FINANCIAL LIABILITIES Non-current 194.5 194.5 — — 194.5 Current 159.9 159.9 — — 159.9 DERIVATIVE FINANCIAL INSTRUMENTS(2) Designated as hedges 48.0 — 48.0 — 48.0 Accounts payable 154.0 154.0 — — 154.0 Fixed assets payable 200.4 200.4 — — 200.4 (1) Fair value hierarchy: level 1 (reflecting quoted prices). (2) Fair value hierarchy: level 2 (observable inputs other than quoted prices in active markets). Except for bonds and derivative financial instruments, the carrying amount of the financial liabilities represents a reasonable approximation of their fair value. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 42 EUTELSAT COMMUNICATIONS Consolidated financial statements as of June 2026
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The fair values of the Level 1 bonds (quoted market price) are as follows: (in millions of euros) 30 June 2025 30 June 2026 2025 bond 176.1 — 2027 bond 585.0 2028 bond 548.6 578.4 2029 bond 649.6 — 2031 bond 871.4 2033 bond 669.6 TOTAL 1,959.3 2,119.3 7.7 SHAREHOLDERS’ EQUITY Accounting principles Costs for capital increases External costs directly related to increases in capital and reduction of capital are allocated to additional paid-in capital, net of taxes when an income tax saving is generated. Treasury stock Treasury stock is recognised by reducing shareholders’ equity on the basis of the acquisition cost. When the shares are sold, any gains and losses are recognised directly in consolidated reserves net of tax and are not included under income for the year. 7.7.1 Share capital As at 30 June 2026, the share capital of Eutelsat Communications was composed of 1,178,308,106 ordinary shares, with a nominal value of 1 euro per share. At that date, the Group held 487,995 treasury shares in the amount of 0.6 million euros acquired under a liquidity contract (compared with 373,992 shares in the amount of 1.1 million euros as at 30 June 2025). The aggregate amount of treasury stock is deducted from shareholders’ equity. 7.7.2 Dividends No dividends were distributed during the financial year ended 30 June 2026. The Group does not intend to propose the distribution of a dividend to the Ordinary General Meeting of Shareholders on 26 November 2026. 7.7.3 Change in the revaluation surplus for derivative instruments The changes in the revaluation surplus for derivative instruments designated as hedging instruments (tax effect included) during the financial year are broken down as follows: (in millions of euros) Total Balance as at 30 June 2025 47.4 Changes in fair value recognised in equity that may subsequently be reclassified to profit or loss (3.9) BALANCE AS AT 30 JUNE 2026 43.5 The revaluation reserve for the derivative instruments does not include the unwinding of forwards. 7.7.4 Translation reserves The translation reserve (tax effect included) has changed as follows over the year: (in millions of euros) Total Balance as at 30 June 2025 35.5 Net change over the period 25.6 BALANCE AS AT 30 JUNE 2026 61.1 The main currency generating translation differences is the U.S. dollar. As at 30 June 2026 , the translation reserve no longer included documented cross-currency swaps used to hedge net foreign investments. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements as of June 2026 EUTELSAT COMMUNICATIONS 43
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7.8 PROVISIONS Accounting principles A provision is set aside when, at the balance sheet date, (i) the Group has a present legal or constructive obligation as a result of a past event, (ii) it is probable that an outflow of resources will be required to settle the obligation, and (iii) a reliable estimate of the amount involved can be made. The amount recognised as a provision represents the best estimate of the expenditure required to settle the present obligation at the end of the reporting period. If the effect of the time value of money is material, the amount of the provision will be equal to the discounted value of anticipated expenditure needed to settle the obligation. Increases in provisions recorded to reflect the passage of time and the effect of discounting are recognised as financial expenses in the income statement. The changes in provisions between 30 June 2025 and 30 June 2026 were as follows: (in millions of euros) 30 June 2025 Change in scope Addition Reversal Reclassification Change in scope Recognised in equity Foreign exchange difference 30 June 2026Used Unused Financial guarantee granted to a pension fund 5.9 — — (10.2) — — — 8.6 — 4.4 Retirement benefits 9.2 — 1.1 (1.0) — — (0.3) (0.1) — 9.0 Other post-employment benefits(1) 5.0 — 0.8 — — 0.1 — — — 5.9 TOTAL POST- EMPLOYMENT BENEFITS 20.1 — 2.0 (11.2) — 0.1 (0.3) 8.5 — 19.2 Commercial, employee- related and tax litigation 8.7 — 8.5 (1.4) (0.6) (0.2) — 1.0 0.1 16.3 Other — — — — — — — — — — TOTAL PROVISIONS 28.8 — 10.5 (12.5) (0.6) (0.2) (0.3) 9.5 0.1 35.5 ■ of which non-current portion 20.1 19.2 ■ of which current portion 8.7 16.3 (1) Other post-employment benefits mainly concern termination benefits in various subsidiaries. 7.8.1 Financial guarantee granted to a pension fund Eutelsat S.A. gave a financial guarantee to the pension fund administering the pension scheme established by the Inter- Governmental Organisation (IGO) when the latter transferred its operations to Eutelsat S.A. in 2001. This defined-benefit pension scheme was closed, and the vested pension rights were frozen prior to the transfer. The financial guarantee provided by Eutelsat S.A. is valued and recorded in the same manner as a defined- benefit pension commitment, although the Group did not directly take over the statutory commitments contracted with the IGO. This guarantee may be called under certain conditions to compensate for future under-funding of the plan, with no quantitative threshold triggering the call on this guarantee. In 2017, the financial guarantee was called for the sum of 35.9 million euros based on the projected deficits of the scheme and an agreement was reached with the pension fund for nine payments of 4 million euros spread out from 30 June 2017 to 30 June 2026. In 2021, a new agreement replacing the previous version was entered into with the pension fund, increasing the total payment due to the fund to 29 million euros as at 30 June 2023, with a schedule through to 30 June 2029. These payments may be adjusted to reflect possible changes in the future financial position which will be assessed on an annual basis. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 44 EUTELSAT COMMUNICATIONS Consolidated financial statements as of June 2026
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The changes in the plan's obligations and assets between 30 June 2025 and 30 June 2026 were as follows: (in millions of euros) 30 June 2025 30 June 2026 Present value of the obligations at beginning of period 145.2 139.0 Service cost for the period — — Financial cost 5.4 5.1 Actuarial differences related to financial assumptions: (gains)/losses (3.5) (6.2) Benefits paid (8.1) (7.9) Gain linked to the effects of changes in demographic assumptions — — PRESENT VALUE OF THE OBLIGATIONS AT END OF PERIOD 139.0 130.0 (in millions of euros) 30 June 2025 30 June 2026 Fair value of plan assets at beginning of period 126.8 132.9 Expected return on plan assets 4.8 5.1 Actuarial differences related to financial assumptions: (gains)/losses (0.6) (14.9) Contributions paid 10.1 10.2 Benefits paid (8.1) (7.9) FAIR VALUE OF PLAN ASSETS AT END OF PERIOD 132.9 125.4 The weighted average duration of the obligation is 11.7 years. The amounts included in the fair value of the plan assets do not include any financial instruments issued by Eutelsat S.A. or any property or movable assets owned or used by Eutelsat S.A. The actual return on the plan’s assets amounted to (9.8) million euros and (4.2) million euros as at 30 June 2026 and 30 June 2025, respectively. The actuarial valuations were performed based on the following assumptions: 30 June 2025 30 June 2026 Discount rate 3.8% 4.1% Rate for pension increases 2.0% 2.0% A 25-basis-point decrease in the discount rates would result in a 3.6 million euros increase in the provision. The changes in provisions over the two financial years were as follows: (in millions of euros) 30 June 2025 30 June 2026 Provision at beginning of period 18.3 5.9 Net (income)/expense recognised in profit or loss 0.6 — Actuarial (gains)/losses (2.9) 8.6 Contributions paid (10.1) (10.2) PROVISION AT END OF PERIOD 5.9 4.4 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements as of June 2026 EUTELSAT COMMUNICATIONS 45
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7.8.2 Retirement and related benefits Accounting principles The Group’s retirement schemes consist of defined contribution plans and defined benefit plans. Expenses for defined-benefit pension schemes are recognised as “Staff costs” based on the contributions made or outstanding for the financial year for which services are delivered by recipients of the scheme. The defined-benefit plans are plans for which the Group has contractually agreed to provide a specific amount or level of benefits. These benefits are assessed using the Projected Unit Credit actuarial method, which involves forecasting the amounts of the expected future payments on the basis of demographic (staff turnover, mortality and age at retirement) and financial assumptions (salary growth and discounting). The pension cost for the period consisting of the service cost is posted to “Staff costs” and the discounting effects are recognised in finance income or expense. The actuarial differences arising from changes in actuarial assumptions or experience differences are recognised as “Other items of comprehensive income”. Defined-benefit pension schemes The Group's defined-benefit pension scheme commitments mainly include the retirement benefits plan for Eutelsat S.A. staff. As at 30 June 2025 and 30 June 2026, the position was as follows: (in millions of euros) 30 June 2025 30 June 2026 Present value of the obligations at beginning of period 10.1 9.2 Service cost for the period 0.8 0.8 Financial cost 0.4 0.3 Actuarial differences (0.8) (0.1) Termination indemnities paid (0.6) (1.2) Other — PRESENT VALUE OF THE OBLIGATIONS AT END OF PERIOD 9.8 9.0 The weighted average duration of the obligation was 8.9 years (compared with 8.9 years in 2025). The actuarial valuations were performed based on the following assumptions: 30 June 2025 30 June 2026 Discount rate 3.6% 4.0% Rate for pension increases 2.5% 3.0% The discount rate used in the actuarial valuation is determined based on high-grade corporate bonds (AA and AAA) with maturities consistent with those of the relevant scheme. Defined-contribution pension schemes Employer contributions made under the mandatory pension scheme in France during the financial year amounted to 6.2 million euros and 6.5 million euros as at 30 June 2025 and 2026, respectively. The Group also has a supplementary defined contribution funded plan for its employees (excluding Directors and company officers who are employees), which is financed by employee and employer contributions representing 6% of gross annual salary, limited to eight times the French Social Security cap. The employer contributions paid under these schemes amounted to 2.0 million euros and 2.3 million euros as at 30 June 2025 and 2026, respectively. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 46 EUTELSAT COMMUNICATIONS Consolidated financial statements as of June 2026
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7.8.3 Litigation and contingent liabilities Accounting principles The Group exercises its judgement to assess the risks incurred on a case-by-case basis and a provision is recorded to cover an expected outflow of resources. In cases viewed as unsubstantiated or insufficiently argued, no provision is recognised. In the course of its business activities, the Group may be exposed to legal actions and commercial disputes. The Group is also governed by a number of regulations specifically relating to its field of activity, particularly in Europe and the USA. These obligations may give rise to audits and the Group must be able to show that it has the necessary mechanisms in place to comply with the regulations in force. The Group endeavours to fulfil its obligations or to promptly remedy any potential deficiencies. Failure to do so could result in penalties or sanctions affecting its operations. An audit commissioned by the US administration to assess compliance with the Letter of Agreement, a mandatory US regulatory framework enabling the Group to operate and serve customers in the United States, is currently underway across the entire scope of LEO and GEO operations. Eutelsat Communications has undergone and is currently subject to several tax audits, which are presented in section 7.9.2. 7.9 TAX ASSETS AND LIABILITIES 7.9.1 Deferred tax assets and liabilities Accounting principles Deferred taxes are the result of temporary differences arising between the tax base of an asset or liability and its carrying amount. They are recognised for each fiscal entity in respect of all temporary differences, with some exceptions, using the balance sheet liability method. Accordingly, all deferred tax liabilities are recognised: 1. for all taxable temporary differences, except when the deferred tax liability arises from the non-tax-deductible impairment of goodwill or from the initial recognition of an asset or liability in a transaction which is not a business combination and which, as at the transaction date, affects neither the accounting or the taxable profit or loss; and 2. for taxable temporary differences relating to investments in subsidiaries, except where the Group controls the reversal of the difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets are recognised for all deductible temporary differences, unused tax loss carryforwards and unused tax credits to the extent that it is probable that taxable income will be available against which these deductible temporary differences can be charged. However, a deferred tax asset is not recognised if it arises from a deductible temporary difference generated by the initial recognition of an asset or liability other than in a business combination which, at the time of the transaction, affects neither the accounting nor the taxable profit or loss. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at balance sheet date. The carrying amount of deferred tax assets is reviewed on each balance sheet date and reduced to the extent that it is not probable that sufficient taxable profit will be available to allow the benefit of all or part of these deferred tax assets to be utilised. Deferred taxes are not discounted and are recorded as non-current assets and liabilities. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements as of June 2026 EUTELSAT COMMUNICATIONS 47
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The changes in the breakdown of the deferred tax balances between 30 June 2025 and 30 June 2026 were as follows: (in millions of euros) 30 June 2025 Foreign exchange difference and reclassifications Result for the period Recognised in equity 30 June 2026 DEFERRED TAX ASSETS Derivative financial instruments 49.0 — (2.8) 46.2 Loss carryforwards 36.7 0.2 6.8 — 43.7 Bad-debt provisions 29.6 0.8 (1.9) — 28.5 Financial guarantee granted to the pension fund 2.3 (0.7) (2.6) 2.2 1.1 Provisions for risks and expenses 4.1 0.4 — 4.5 Tangible and intangible assets 18.7 — 20.8 — 39.4 Other 27.3 (0.2) 6.0 0.7 33.9 TOTAL DEFERRED TAX ASSETS 167.9 (0.1) 29.4 0.1 197.3 DEFERRED TAX LIABILITIES Derivative financial instruments (4.2) — 4.0 (0.1) Intangible assets (11.7) 0.2 — (11.4) Tangible assets (207.9) (0.6) (0.7) — (209.1) Other (18.4) 0.1 (14.1) (0.5) (32.9) TOTAL DEFERRED TAX LIABILITIES (242.0) (0.5) (14.6) 3.5 (253.6) NET ASSET/(LIABILITY) POSITION (74.2) (0.6) 14.8 3.6 (56.4) Reflected as follows in the financial statements: Deferred tax assets 28.6 (18.1) 34.0 3.6 48.1 Deferred tax liabilities (102.9) 17.6 (19.2) — (104.5) TOTAL (74.2) (0.6) 14.8 3.6 (56.4) The deferred tax asset or liability corresponds to the aggregate of the consolidated entities' net positions. Deferred tax liabilities relate mainly to the taxable temporary differences generated by: ■ the accounting treatment at fair value of customer contracts and relationships and other intangible assets in the context of the acquisitions of Eutelsat S.A. and Satmex; ■ the accelerated depreciation of satellites for tax purposes. The schedule for the recovery of deferred tax assets recognised in respect of tax loss carryforwards is presented in the table below: (in millions of euros) Amount Maturity within 1 year Maturity between 1 and 5 years Maturity exceeding 5 years Undefined Schedule of recognised tax loss carryforwards 137.4 — — — 137.4 TOTAL 137.4 — — — 137.4 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 48 EUTELSAT COMMUNICATIONS Consolidated financial statements as of June 2026
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As at 30 June 2026, the tax loss carryforwards that had not given rise to the recognition of amounts on the assets side of the balance sheet (deferred tax assets) amounted to 3.5 billion euros (2.9 billion euros as at 30 June 2025). (in millions of euros) Amount Maturity within 1 year Maturity between 1 and 5 years Maturity exceeding 5 years Undefined Maturities of unrecognised tax loss carryforwards 3,511.2 2.2 2.2 23.0 3,483.8 TOTAL 3,511.2 2.2 2.2 23.0 3,483.8 The reform of international taxation established by the OECD, known as “Pillar Two”, consists of ensuring that tax is paid on income generated in each of the jurisdictions where large multinational companies operate, at a minimum tax rate of 15%. For the financial year ended 30 June 2026, the tax in respect of Pillar 2 was not material. 7.9.2 Tax disputes Within the ordinary course of their business, certain Group companies may be involved in tax proceedings. Eutelsat S.A. has been the subject of several tax audits covering the period from 1 July 2012 to 30 June 2020. Following a dispute with the tax authorities regarding a tax reassessment notified in respect of the financial year ended 30 June 2014, the Group filed an appeal with the Administrative Court. In a judgement handed down in April 2026, the court upheld all of the Group’s claims. As the tax authorities did not file an appeal, this procedure is now definitively closed. As the corresponding taxes had already been paid, reimbursement is currently in progress. In respect of an adjustment upheld for the financial year ended 30 June 2018, the Group filed a formal tax claim in January 2025. This claim was rejected by the tax authorities in February 2026. As the Group has decided not to pursue the dispute before the competent court, the proceedings are now closed. No residual tax risk had been identified in relation to this pre-litigation procedure as at 30 June 2026. In addition, Eutelsat S.A. and Eutelsat Communications are currently undergoing a tax audit covering the period from 1 July 2021 to 30 June 2024. In this context, a notice of reassessment interrupting the statutory limitation period was issued to Eutelsat SA in respect of the financial year ended 30 June 2022. The company has submitted its observations in response to the proposed reassessment and disputes the merits of the proposed adjustments. As at 30 June 2026, the procedure was still ongoing. NOTE 8 RELATED-PARTY TRANSACTIONS IAS 24 (IAS 24.3 and 24.9) requires the disclosure of related party relationships, transactions and balances, including commitments, in the consolidated financial statements of a parent company or an investor that has joint control or significant influence over a Group entity. The related parties are composed of the: ■ Group's shareholders (and the entities they control directly or indirectly) exercising joint control or significant influence, which is presumed by holding voting rights of more than 20%, or voting rights of more than 10% together with representation on the Board of Directors; ■ Group's key management personnel (including members of the Board of Directors and the Executive Committee); and ■ any entity over which the Group exercises significant influence. Currently this is limited solely to First Tech Web Company Limited (the Group's joint-venture in Saudi Arabia, “NEOM JV”). 8.1 COMPENSATION OF THE KEY MANAGEMENT PERSONNEL The Group considers that, in the context of Eutelsat's governance, the notion of “Key management personnel” includes the members of the Executive Committee chaired by the Chief Executive Officer, and the members of the Board of Directors. The compensation allocated to the members of the Executive Committee breaks down as follows: (in millions of euros) 30 June 2025 30 June 2026 Compensation(1) 12.9 10.4 TOTAL SHORT-TERM BENEFITS 12.9 10.4 Post-employment benefits(2) — — Share-based payments(3) 0.1 0.2 TOTAL LONG-TERM BENEFITS 0.1 0.2 (1) Including the gross salaries inclusive of the variable portion, bonuses, benefits in kind, incentive payments, profit sharing and social security contributions paid. (2) Corresponding to the past service costs of defined benefit pension plans. (3) Corresponding to the expense recorded in the income statement for share-based compensation. The remuneration received by the members of the Board of Directors in respect of the financial year ended 30 June 2026 amounted to 1.6 million euros (compared with 1.5 million euros in respect of the financial year ended 30 June 2025). NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Consolidated financial statements as of June 2026 EUTELSAT COMMUNICATIONS 49
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8.2 OTHER RELATED PARTIES The transactions with related parties other than key management personnel are summarised as follows: (in millions of euros) 30 June 2025 30 June 2026 Revenue 10.1 4.1 Finance income or expense (6.8) — Gross receivables (including unbilled revenue) 2.3 4.9 Debt (including deferred payments) 0.5 0.1 Revenue mainly relates to the provision of satellite monitoring and control services. NOTE 9 SUBSEQUENT EVENTS On 22 July 2026, the Federal Communications Commission (FCC) voted to release 160 MHz of upper C-band spectrum for nationwide terrestrial wireless use. The spectrum will be auctioned in 2027. The FCC order provides the framework for the reallocation of 160 MHz of the upper C-band spectrum to support the continued expansion of advanced wireless services across the United States, while ensuring the continuity of critical satellite services. The framework also establishes the orderly transition process for existing satellite operators in the coming years. Under the terms of the order, Eutelsat could receive incentive payments of 504 million dollars (443 million euros) before tax, subject to compliance with the transition protocol and the milestones set for 2031. Eutelsat could also be reimbursed for the costs incurred during the transition process. Given the uncertainty regarding the timing and potential amounts of consideration to be received, as well as the fact that the current compensation process and legal framework are still being developed, the Group will assess the actions required to manage this transition and the impact on the measurement of its assets and liabilities. The Group has not recognised any impact in its consolidated financial statements and has not taken it into account in the impairment tests performed on its assets as at 30 June 2026. NOTE 10 STATUTORY AUDITORS’ FEES (in thousands of euros) EY Forvis Mazars Amount N % Amount N-1 % Amount N % Amount N-1 % STATUTORY AUDIT, CERTIFICATION, REVIEW OF SEPARATE AND CONSOLIDATED FINANCIAL STATEMENTS Eutelsat Communications 364.0 21% 352.0 19% 289.0 36% 323.0 36% Subsidiaries 1,362.6 79% 1,461.0 81% 511.4 64% 571.0 64% SUB-TOTAL 1,726.6 100% 1,813.0 100% 800.4 100% 894.0 100% SERVICES OTHER THAN CERTIFICATION OF THE FINANCIAL STATEMENTS Eutelsat Communications 317.5 100% 15.0 100% 317.5 96.9% 15.0 4% Subsidiaries — —% — —% 10.0 3.1% 380.0 96% SUB-TOTAL 317.5 100% 15.0 100% 327.5 100% 395.0 100% CERTIFICATION OF SUSTAINABILITY-RELATED INFORMATION PURSUANT TO THE CSRD Eutelsat Communications 94.3 100% 100.0 100% 94.3 100% 100.0 —% Subsidiaries — —% — —% — —% — —% SUB-TOTAL 94.3 100% 100.0 100% 94.3 100% 100.0 100% TOTAL 2,138.4 100% 1,928.0 100% 1,222.2 100% 1,389.0 100% Services other than the certification of financial statements correspond essentially to the work undertaken within the framework of unregulated financial reviews. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 50 EUTELSAT COMMUNICATIONS Consolidated financial statements as of June 2026
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Eutelsat Communications Public limited company (société anonyme) with share capital of 1,178,308,106 euros Registered office Eutelsat Communications 32, boulevard Gallieni 92130 Issy-les-Moulineaux Nanterre Trade and Companies Register number 481 043 040 Tel: + 33 1 53 98 47 47 Photo credits Eutelsat, Getty Images, OneWeb Design & production Ruban Blanc