BUSINESS ACTION

In 2016, HISPASAT focused on new sales in emerging markets and on consolidating income from their main clients.
In Spain there was substantial activity in audiovisual services, with the entry into service of the new DTT channels associated to the new TV licenses. Also, both the public corporation RTVE and the region of Asturias renewed all of their national and regional DTT services, respectively, through the HISPASAT fleet.

IN SPAIN HIGHLIGHTS ACTIVITY IN
AUDIOVISUAL SERVICES AND INTERNET ACCESS IN MOBILITY, BOTH FOR TRAINS AND FOR BOATS

National satellite data services are continuing the path followed over the last few years, renewing contracts with large operators in Spain and Portugal and beginning to provide services in new sectors. Especially relevant are the services provided in rail mobility by Telefónica to provide Internet access service for passengers on Renfe’s AVE fleet in Spain.
This 10-year agreement will consolidate the company as a leader in connectivity services for the railway industry. In the maritime sector highlights the agreement with BT to offer connectivity to the Trans-mediterranean fleet.
Also in Spain, the agreement with UFINET was renewed for data services in corporate networks in national and European coverage.
With regard IP services on the Iberian Peninsula, in 2016 HISPASAT signed a contract with Quantis with respect to the Ka band which will facilitate a reduction in the digital divide in Spain and internet access via satellite for residential services.
In EMEA (Europe, Middle East and Africa), the company continues to facilitate the distribution of audiovisual channels. In addition, the first 4K transmission of the “Parsifal” opera was carried out for RTVE, Europe and America. Also, HISPASAT signed an agreement was signed with AMC for the distribution in EMEA of 16 channels with Telefónica and the agreements with regard to the TSA in Spain and MX-1 in Israel platforms were extended.

Likewise, an agreement was made with BT Global through which HISPASAT became their main supplier of satellite services for the areas where they have coverage.
In Italy, an agreement was made with Telespazio Italia for the distribution of film premiers, events and general audiovisual content for the Italian cinema network. This network currently consists of 500 cinemas and it is expected to continue expanding throughout 2017.
In 2016, new occasional IP services were consolidated for sport, cinema and the Spanish Maritime Safety Agency, also known as “salvamento marítimo” (Paris Dakar Rally, Rugby League, EuroCup, data for the Star Wars crew, etc.), and the agreement with the company Syntelix was renewed to give continuity to maritime services being provided under European coverage (Mediterranean and North Atlantic).
HISPASAT continues its expansion strategy in North Africa. Over 4,000 Moroccan schools, as well as many other companies in the country, are connected to the Internet thanks to satellite capacity provided by HISPASAT.
In Morocco, HISPASAT renewed its services for the internal communications network of Maroc Telecom and tests have been carried out on their new VSAT network.

With respect to Central and North America, the offer was extended to other TV
channels interested in distributing their signals through the system, taking advantage of the HISPASAT’s wide cable operator base oriented at 30º West in America.
While waiting for a new tender in order to expand the México Conectado network, HISPASAT continues to be the main capacity provider with more than 11,000 sites.
The cellular backhaul networks had a moderate growth with regard to the extension of the networks of the main mobile operators. Corporate networks have had a slight negative growth with respect to previous years, especially in light of the devaluation of the Mexican peso. With regard to the audiovisual sector, the Cuban national operator ETECSA reinforced its commitment to HISPASAT and will continue broadcasting the company’s DTH package in
all of Latin America for five5 additional years through the Hispasat 30W-4 satellite.
In the United States, HISPASAT renewed important services of the Amazonas 2 satellite through opportunities with services for the Department of Defence, Unmanned Aerial Vehicles (UAV) and military networks, among others.
In the event of natural disasters, the company provided services through its clients to restore infrastructure that offer solutions to the Federal Emergency Management Agency (FEMA). Furthermore, the capacity for corporate networks was increased using the Amazonas 2 satellite.
In Latin America, HISPASAT consolidated its presence in Colombia, and since March of 2016 it has been the only satellite operator with offices in the country.
During the SET Expo fair, the Brazilian subsidiary of the company, HISPAMAR, announced the launch of an incentive program for the Brazilian audiovisual market in which more than 1.5 million reals was invested in the installation of equipment In the main pay-TV operators in Brazil for the reception of contents through the extended C-band. In this way,
operators will be able to receive their contents both in standard C band and extended C band, less vulnerable to interference, thus encouraging the use of the latter type of frequency in the audiovisual field.
In addition, in 2016, HISPASAT, in collaboration with Cellnex Telecom, has expanded the offer of Atresmedia television channels that it distributes in the American continent through the satellite Hispasat 30W-5.
The commercial work has been complemented with the organization of the fourth edition of the HISPASAT Innovation Days, consisting of events that HISPASAT holds in six cities (Paris, London, Rome, Rio de Janeiro, Rabat and Mexico DF) of six different countries, in which important figures from the satellite industry give talks on the present and future of the industry. This edition had more than 310 participants, 112 panellists and 47 sessions.