Dear shareholders,

I am pleased to once again present the HISPASAT Annual Report, which summarises the company’s main milestones this year.

The main strategic lines, which focus on growth, have served as our point of reference as we continue to work on and develop our activities. We have launched a strong marketing initiative that has offset, to a certain extent, significant challenges present in an increasingly complex market in which new technologies, new players and new demands require more flexible solutions and lower prices.

Of the key commercial milestones of 2015, I would like to highlight our entry into new markets, such as Morocco; the development of the pilot project to provide connectivity in AVE trains, which earned HISPASAT a place in the group of companies led by Telefónica, which RENFE awarded a contract for this new service; and the renewal and expansion of certain contracts with major clients, especially those in Latin American countries, such as Brazil, Peru, Mexico and Colombia.

These efforts have also left their mark on the backlog (guaranteed long-term satellite capacity contracts), which reached a figure equivalent to seven times the company’s annual revenue.

In 2015, total revenue earned reached 219.6 million euros, which amounts to an increase of 8.7% with respect to the previous year. 216.4 million euros of the total revenue came from leasing space capacity, 9.72% more with respect to the previous year. 34.6% of this amount came from Europe and North Africa, and we continue to experience growth in the Americas with revenues equivalent to 65.4% of the total.

During the 2015 business year, HISPASAT continued to focus on activities aimed at adapting its operational structure and costs to the needs of new satellite projects. These policies are aimed at making the company more competitive in Europe, the Americas, and other regions considered to be strategic in the near future.

EBITDA reached 178.9 million euros, 10.6% more than the previous year, which represents an operating margin of 81.5%. This figure once again establishes HISPASAT as one of the most profitable and efficient companies in the satellite sector. The net result attributed to HISPASAT parent company came in at 62.6 million euros, which is 17 million euros more than in 2014.

I would also like to highlight this year’s investment figure, which reached 245 million euros – 56.5% more than last year. This figure was mostly spent on investments in the ongoing satellite programmes Hispasat 36W-1 (Hispasat AG1), Amazonas 5 and Hispasat 30W-6 (Hispasat 1F), as well as investments in innovation projects involving both satellites and products and services.

Along these lines, I would like to point out the special emphasis we have placed on innovation this year, interpreting it as the ability to generate a sustainable competitive advantage that leads to the creation of measurable value for the company. Innovation is not only limited to the technological advances and developments that we add to our portfolio every year; it also includes the entire value chain of our business.

To achieve our goals, we work with three fundamental pillars: people, with whom we seek to develop a culture of innovation in HISPASAT; the ecosystem, in which we want to position ourselves as an innovative company that contributes to the development of innovation in Spain; and the business, to renew it and create new sources of profit.

We have dedicated important resources to these pillars throughout 2015, implementing a plan with three key objectives: define and develop our position for the long term in the face of new competitors, and taking into account new developments in the satellite communications market; guarantee the product-satellite link with these new developments; and monitor technologies and trends for the long term in the ICT sector. This will keep us at the cutting edge of technology over the new few years both for our satellites, which already incorporate the latest advances in payloads, photonic technologies and propulsion systems, as well as for our new advanced services in the audiovisual, operator and corporate markets.

I would like to finish by once again thanking our shareholders, clients, suppliers and professionals for their support and trust.