Page 5 - hisdeSAT Informe Anual 2019

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Also within SATCOM, for its peculiarity and for the level of acceptance by its users, is the finalisation last August of
the contract between CESTIC and the Telefónica-Hisdesat joint venture, for a "Network of Personnel Assistance and
Security for Military Personnel deployed in Operational Zones". This network was activated with good results in Mali
and on Navy ships, and gladly received by those who have been stationed away from their homeland and their loved
ones for long periods.

In the Earth observation area, this has been the first complete year of the PAZ satellite being operational and, not
without difficulties, we have fulfilled all our commitments at the Ministry of Defence. Work has also continued on
extracting more information from its radar images, which has allowed us to increase our client base. Finally, we have
begun contracting the pending updates on the "Ground Segment", which will allow us to access new modes and
augment the capabilities of the satellite, which will again lead to new users.

Developments at out investee companies XTAR-LLc and exactEarth have been as planned, and the expectations
of the related operations have been fulfilled. Worth mentioning is that at the end of the year, exactEarth signed an
important business agreement that will reduce costs, thereby boosting the company’s viability and future profitability,
given the potential of ship monitoring and maritime information services.

Regarding the European Union and NATO, we have continued to work with the General Directorate of Armament and
Material (DIGAM) on initiatives related to GOVSATCOM, as well as NATO’s inclusion of Spain in the second phase of
the CP-130 capabilities package. We are also participating in the multi-country proposal (including Spain, France, Italy,
Denmark, Estonia, Lithuania, Sweden, and the Czech Republic) that was submitted in response to the EU’s EDIDP
programme. And I add, because of its importance, that in October the European Maritime Safety Agency (EMSA)
reported that Hisdesat had successfully passed evaluation for a public tender for navigation aids.
In 2019, Hisdesat continued its "Good Practices and Corporate Governance" model, adapting its work processes
to the "Risk Control and Monitoring System", the "Internal Financial Information Control System" and the "Crime
Prevention and Detection Manual", which are audited twice a year. Additionally, the corresponding ISOs for
requirements in quality management, environmental management and information security were followed.

A matter of great importance for Hisdesat has been the acquisition by Red Eléctrica Sistemas de Telecomunicaciones
S.A.U., belonging to the Red Eléctrica Corporación S.A. Group, of all the HISPASAT shares held by the ABERTIS Group,
leading to the former becoming the main shareholder of HISPASAT. Due to this, there have been changes on the
HISPASAT Board of Directors, which in turn led to changes on the Board of Hisdesat. Thus, the President of HISPASAT,
Elena Pisonero Ruiz, stepped down, presenting her resignation as Board Member for Hisdesat to the Board on the
2nd of October, after a valuable period of contribution. The resignation was ratified at the 22 October Shareholders'
Meeting, where she was thanked for her service and her tremendous dedication to the company. At the same
meeting, Angel Luis Mahou Fernández was appointed to the board. Miguel Ángel Panduro Panadero was appointed
Chief Executive Officer of HISPASAT, and authorised by the Hisdesat Board of Directors to transitionally remain in
both positions. He presented his resignation as Chief Executive Officer to the Board on 22 October, while remaining
on the Board. His departure comes after seven long years in office, during which time he proved his leadership and
skill, and near the end of the year with the best results in Hisdesat’s history. The Board thanks him for his service and
his unwavering commitment and wishes him well in his new role. Miguel Ángel García Primo was appointed as the
company's CEO, with the Board wishing him all the best for this important task.

Finally, as Chairman of the Board of Directors and in light of all these positive events, I wish to again say "BRAVO
ZULU" – well done to all the women and men of Hisdesat. I wish take this opportunity to reiterate my commitment to
all of our shareholders, and to thank you for your confidence and trust in me. It is an honour and a pleasure to be at
your service.

Sincerely -
Santiago Bolíbar Piñeiro
Chairman of the Board (non-executive)
Hisdesat