Dear shareholders,

As the CEO of HISPASAT, I am pleased to present yet another year of the company’s annual report, in which we review the most important activities of the 2016 scal year.

The satellite market has been plunged into a rapid paradigm shift and all of the operators are working to adapt to the new business model in which we will go from simply leasing space capacity to increasing vertical integration and nearness to the end user, with prices that are better adjusted to be able to compete with other communication technologies.

Since we know that we can only respond to new market demands and challenges with novel solutions, in 2016 we have notably increased our e orts to innovate, not only from a technological point of view, but also in goods and services, methods, organisation and business models, bringing innovation to all the areas of the company.

Despite the complicated market situation, HISPASAT has carried out intense commercial activities that have been able to keep us above the sector average in terms of pro tability and has been re ected in the back-log (guaranteed long-term satellite capacity contracts), which has been consolidated into a number equivalent to 6.5 times the annual revenue of the company: 1.485 billion euros, one of the best in the sector.

Furthermore, in 2016 we increased our revenue by 4.2%, which has reached 228.9 million euros, of which 225.5 correspond to revenue from leasing space capacity. 35.4% of this revenue comes from Europe and North Africa, while 64.6% comes from the American market. This fact rea rms the position of HISPASAT as a leading operator in this market.

EBITDA reached 175.6 million euros, 1.8% lower than that obtained in 2015, and its percentage of revenue decreased to 76.7%. This decrease is fundamentally due to extraordinary expenses derived from the capacity contracts to advance the provision of services from 36o West, the destination position of Hispasat 36W-1, and the migration of services from current client services to new satellites. Excluding the e ect of extraordinary expenses, the margin of EBITDA would be 81.2%. HISPASAT continues to keep itself among the most e cient and pro table operators in the sector.

Regarding the results, the net profit decreased in 2016 by 59.9% compared to the previous fiscal year, standing at 25.1 million euros, mainly due to the adverse situation of HISDESAT, which has negatively impacted the company’s results. In comparative terms, discounting this impact and the mentioned extraordinary expenses, the net pro t would be 79.1 million euros, 33.4% more than in 2015.

In this scal year, we have continued to invest in our ongoing satellite programmes: Hispasat 36W-1 satellite – successfully launched on 28 January 2017-, Amazonas 5 and Hispasat 30W-6, which would be placed into orbit during 2017. We have also focused our investment e orts on developing innovation projects, both in satellites as well as in services and solutions. In total, the amount of investment reached 167.8 million euros, con rming our commitment to growth and innovation.

This data motivates us to look to the future, in which we will continue to work and develop our activity with the goal of capturing all the new opportunities that arise in the telecommunications market, linked to developments such as 5G, the Internet of Things or connected vehicles, or born from the growing need to connect which arises in a world that is increasingly digital and that terrestrial networks cannot completely satisfy.

I want to close by thanking all the professionals in the company for their daily commitment and effort; as well as our shareholders, clients and suppliers for always showing their trust in and support for HISPASAT.