Page 8 - hisdeSAT annual report 2011

PRESENTATION
Letter to shareholders
achieved in terms of both revenue and
operating costs are over and above the
forecasts.
The continual improvement in the re-
sults is due, fundamentally, to a commit-
ment to innovation, with the launch of
new projects and international expansion
with permanent shareholdings in the USA
and in Canada and a project of technolog-
ical cooperation in Norway, ratified by the
Framework Agreement between HISDESAT
and the Norwegian Armed Forces, and
which it is anticipated will lead to the con-
struction of a new communications satel-
lite called HisNorSat, which will be in orbit
in 2014. This thereby completes the system
of secure communications, with significant
facilities adapted to the needs of an in-
creasingly strategic market.
06 Dear shareholders, 07
Also within an international framework,
During this first year as President of the HISDESAT renewed its agreement with the
company, it gives me great satisfaction to Danish Ministry of Defence and signed a
present this report which reflects our activi- contract with EMAD in Spain for servic-
ties and favourable results, fruit of the am- es in 2011 in the operational zone. In the
bitious strategic decisions taken in earlier area of earth observation, 82% of the Paz
periods, which have accorded the compa- programme has been completed, both in
ny a privileged position within the ambit of terms of the satellite as well as the launch-
secure satellite communications, principally er, which is great news for the Spanish
in the fields of security and defence. space industry, with over 18 companies in-
volved in its development. In addition, the
Within that environment, characterised by Paz satellite was introduced officially at an
the complex international situation, the re- event which enjoyed the participation and
sults of the company have been very satis- support of the Ministries of Defence and In-
factory indeed: revenue through the pro- dustry, Tourism and Trade.
vision of services has exceeded 60 million
euros, the net result at year end was up to In this ambit, HISDESAT and Infoterra Ger-
22,5 million euros, which represents an in- many, with the approval of the DLR Ger-
crease of 2% on the previous year, and in- man Space Agency (owner of the satel-
vestments were up to 24 million euros. The lites), continued to work on designing the
EBITDA reached 44,1 million euros and op- most appropriate strategy for both parties
erating profit rose to 29,1 million euros, in order that we may cooperate on mat-
with a growth of 23,2 per cent over the last ters pertaining to the observation of Earth
four years. In short, all economic indicators with radar technology. It is sought, through
the improvement of services represented by To this effect, it will be possible for many
the constellation, to achieve greater mar- companies to operate in markets which they
ket share than the sum of the satellites in- could not gain access to due to the elevated
dividually, by being able to compete with costs of so doing. Lastly, international co-
better services against other radar satellite operation is outlined as the optimal means
constellations. of financing new programmes between
companies and countries and gradually im-
To this effect, the company is taking gi- proving the financial dimensions and diver-
ant strides in its management capacity and sifying the provision of services through in-
commercialization of available capacities, novation. This is HISDESAT’s commitment to
through the signature of agreements and the future.
contracts which enable us to reduce risks
and face forthcoming decisions with the
desirable level of confidence with which to
guarantee the stability of the company. Juan Antonio del Castillo Masete
Chairman of HISDESAT
In matters pertaining to the control of mar-
itime traffic via satellite, HISDESAT complet-
ed its investment in exactEarth, a joint-
venture with the Canadian company COMDEV
for the development of a constellation of
micro-satellites, capable of informing and
identifying all vessels with AIS system. This
year saw the launch of 3 more and service
agreements were signed in Australia, Japan
and Singapore, which significantly contrib-
ute towards the safety of traffic on seas and
oceans.
Internally, the company continues with its
cost containment policy, adapting human,
material and structural resources to the de-
velopment calendar of the Earth Observa-
tion Programme and the remainder of ini-
tiatives currently being undertaken.
In short, these achievements reflect the
success of the Public Private Partnership
(PPP) model, which is permitting access to
new technologies and boosting markets that
did not exist or which had very low levels of
development. The civil and defence sectors
in the field of technological performance
must join forces and thereby permit and
optimize the dual use of their applications.