\n| \n Key Financial Data <\/b><\/p>\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n6M to Dec.
\n
2019\n<\/p>\n<\/td>\n | \n 6M to Dec.
\n
2020<\/b><\/p>\n<\/td>\n | \n Change<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n P&L<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nRevenues – \u20acm\n<\/p>\n<\/td>\n | \n \n636.6\n<\/p>\n<\/td>\n | \n 628.5<\/b><\/p>\n<\/td>\n | \n -1.3%<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u201cOperating Verticals\u201d revenues – \u20acm\n<\/p>\n<\/td>\n | \n \n635.8\n<\/p>\n<\/td>\n | \n 613.1<\/b><\/p>\n<\/td>\n | \n -3.6%<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \u201cOperating Verticals\u201d revenues at constant currency and perimeter – \u20acm<\/b><\/p>\n<\/td>\n | \n \n635.8\n<\/p>\n<\/td>\n | \n 622.2<\/b><\/p>\n<\/td>\n | \n -2.1%<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nEBITDA1 <\/sup>– \u20acm\n<\/p>\n<\/td>\n| \n \n495.5\n<\/p>\n<\/td>\n | \n 482.1<\/b><\/p>\n<\/td>\n | \n -2.7%<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nEBITDA margin – %1<\/sup><\/p>\n<\/td>\n| \n \n77.8\n<\/p>\n<\/td>\n | \n 76.7<\/b><\/p>\n<\/td>\n | \n -1.1 pts<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nEBITDA margin at constant currency – %\n<\/p>\n<\/td>\n | \n \n77.8\n<\/p>\n<\/td>\n | \n 76.7<\/b><\/p>\n<\/td>\n | \n -1.1 pts<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nGroup share of net income – \u20acm\n<\/p>\n<\/td>\n | \n \n140.7\n<\/p>\n<\/td>\n | \n 137.4<\/b><\/p>\n<\/td>\n | \n -2.3%<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Financial structure<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nReported Discretionary Free Cash-Flow – \u20acm1<\/sup><\/p>\n<\/td>\n| \n \n107.9\n<\/p>\n<\/td>\n | \n 256.9<\/b><\/p>\n<\/td>\n | \n +138.1%<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Adjusted Discretionary Free Cash-Flow – \u20acm1<\/sup><\/b><\/p>\n<\/td>\n| \n \n117.6\n<\/p>\n<\/td>\n | \n 275.3<\/b><\/p>\n<\/td>\n | \n +134.2%<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nNet debt – \u20acm\n<\/p>\n<\/td>\n | \n \n3,234.8\n<\/p>\n<\/td>\n | \n 2,994.4<\/b><\/p>\n<\/td>\n | \n -\u20ac240.4m<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nNet debt\/EBITDA – X1<\/sup><\/p>\n<\/td>\n| \n \n3.20\n<\/p>\n<\/td>\n | \n 3.09<\/b><\/p>\n<\/td>\n | \n -0.11 pts<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Backlog \u2013 \u20acbn<\/b><\/p>\n<\/td>\n | \n \n4.3\n<\/p>\n<\/td>\n | \n 4.4<\/b><\/p>\n<\/td>\n | \n +1.9%<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nCommenting on the First Half, Rodolphe Belmer Chief Executive Officer of Eutelsat Communications, said: \u201cEutelsat has produced a solid First Half performance with Operating Verticals revenues down by 2%, reflecting our resilience in the Covid-19 impacted context, and with an EBITDA margin at 76.7%, despite the costs associated with Broadband ramp-up. Free-cash flow generation at the half year stage already amply covers the dividend paid in November. The past six months have been dynamic from a commercial point of view with the award of a further EGNOS payload to fly on EUTELSAT HOTBIRD 13G, a major wholesale agreement with Telecom Italia for the Italian capacity on EUTELSAT KONNECT and KONNECT VHTS following a similar agreement with Orange in France, and several renewal and new deals in Sub-Saharan African broadcast. From an operational point of view, we have made significant headway on our Broadband strategy with the entry into service of EUTELSAT KONNECT and the reorganization of our retail arm, where the integration of Bigblu Broadband is progressing smoothly. In view of this solid start to the year, we are in a position to absorb the negative perimeter effect linked to Broadband transactions and to raise the low end of our FY 21 revenue objective.\u201d <\/i><\/p>\n Notes: This press release contains figures from the consolidated half-year accounts prepared under IFRS and subject to a limited review by the Auditors. They were reviewed by the Audit Committee on 10 February 2021 and approved by the Board of Directors on 11 February 2021. EBITDA, EBITDA margin, Net debt \/ EBITDA ratio, Cash Capex, Discretionary Free Cash-Flow and Adjusted Discretionary Free Cash-Flow are considered Alternative Performance Indicators. Their definition and calculation are in Appendix 3 of this document. <\/b><\/p>\n KEY EVENTS<\/b><\/p>\n\n- \nFirst Half like-for-like revenues of the Operating Verticals were down -2.1% year-on-year. This solid start of the year enables us to raise the low end of our Full Year revenue objective to between \u20ac1,190 million and \u20ac1,220 million (versus between \u20ac1,180 million and \u20ac1,220 million previously). We are also in a position to absorb the net negative perimeter effect linked to Broadband transactions which will affect the second half.\n<\/li>\n
- \nContinued relative resilience in the Covid-19 context with stable Operating Vertical revenues2<\/sup> in the Second Quarter compared to the First.\n<\/li>\n
- \nSustained profitability, with EBITDA margin at 76.7%, despite revenue decline, and costs associated with Broadband ramp-up including the integration of Bigblu Broadband Europe.\n<\/li>\n
- \nHigh level of Free-Cash-Flow generation with First Half Adjusted Discretionary Free-Cash-Flow of \u20ac275 million, amply covering the Full Year dividend paid in November. FY 2021-22 Adjusted Discretionary Free Cash-Flow objective mechanically adjusted to take into account changes in perimeter.\n<\/li>\n
- \nAward of a further EGNOS payload on the EUTELSAT HOTBIRD 13G satellite representing a total contract value of \u20ac100m over 15 years.\n<\/li>\n
- \nSignificant headway in our Fixed Broadband strategy paving the way for return to growth:<\/p>\n
\n- \nReorganization of distribution completed with disposal of our stake in Euro Broadband Infrastructure and closing of the acquisition of Bigblu Broadband Europe, with integration well on track3<\/sup>;\n<\/li>\n
- \nEntry into service of EUTELSAT KONNECT satellite and launch of the first retail offers in several European countries;\n<\/li>\n
- \nMajor wholesale agreement with Telecom Italia for the Italian capacity on KONNECT and KONNECT VHTS following a similar agreement with Orange in France securing the ramp-up of capacity.\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
ANALYSIS OF REVENUES4<\/sup><\/b><\/p>\n\n\n| \n \nIn \u20ac millions\n<\/p>\n<\/td>\n | \n 6 months to Dec.
\n
2019<\/b><\/p>\n<\/td>\n | \n 6 months to Dec.
\n
2020<\/b><\/p>\n<\/td>\n | \n Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nReported\n<\/p>\n<\/td>\n | \n \nLike-for-like5<\/sup><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nBroadcast\n<\/p>\n<\/td>\n | \n \n389.4\n<\/p>\n<\/td>\n | \n 378.9<\/b><\/p>\n<\/td>\n | \n \n-2.7%\n<\/p>\n<\/td>\n | \n \n-1.8%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nData & Professional Video\n<\/p>\n<\/td>\n | \n \n87.8\n<\/p>\n<\/td>\n | \n 81.4<\/b><\/p>\n<\/td>\n | \n \n-7.3%\n<\/p>\n<\/td>\n | \n \n-4.5%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nGovernment Services\n<\/p>\n<\/td>\n | \n \n78.3\n<\/p>\n<\/td>\n | \n 76.9<\/b><\/p>\n<\/td>\n | \n \n-1.8%\n<\/p>\n<\/td>\n | \n \n+2.5%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nFixed Broadband\n<\/p>\n<\/td>\n | \n \n39.1\n<\/p>\n<\/td>\n | \n 42.1<\/b><\/p>\n<\/td>\n | \n \n+7.6%\n<\/p>\n<\/td>\n | \n \n+2.3%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nMobile Connectivity\n<\/p>\n<\/td>\n | \n \n41.2\n<\/p>\n<\/td>\n | \n 33.9<\/b><\/p>\n<\/td>\n | \n \n-17.9%\n<\/p>\n<\/td>\n | \n \n-13.9%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Total Operating Verticals<\/b><\/p>\n<\/td>\n | \n 635.8<\/b><\/p>\n<\/td>\n | \n 613.1<\/b><\/p>\n<\/td>\n | \n -3.6%<\/b><\/p>\n<\/td>\n | \n -2.1%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nOther Revenues6<\/sup><\/p>\n<\/td>\n| \n \n0.9\n<\/p>\n<\/td>\n | \n 15.4<\/b><\/p>\n<\/td>\n | \n \nNR\n<\/p>\n<\/td>\n | \n \nNR\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Total<\/b><\/p>\n<\/td>\n | \n 636.6<\/b><\/p>\n<\/td>\n | \n 628.5<\/b><\/p>\n<\/td>\n | \n -1.3%<\/b><\/p>\n<\/td>\n | \n -1.6%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n EUR\/USD exchange rate<\/i><\/p>\n<\/td>\n | \n 1.11<\/i><\/p>\n<\/td>\n | \n 1.17<\/i><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nTotal revenues in the First Half<\/b> stood at \u20ac629 million, down 1.3% on a reported basis and by 1.6% like-for-like.\n<\/p>\n \nRevenues of the five Operating Verticals (ie, excluding \u2018Other Revenues\u2019) stood at \u20ac613 million. They were down by 2.1% on a like-for-like basis excluding a positive perimeter effect of c.0.4 points (consolidation of Bigblu Broadband Europe since 1st<\/sup> October 2020) and a negative currency effect of c. -1.8 points.\n<\/p>\nSecond Quarter <\/b>revenues stood at \u20ac313 million down 1.8% on a reported basis and by 2.4% like-for-like. Revenues of the five Operating Verticals stood at \u20ac306 million, down 2.4% year-on-year and by 0.2% quarter-on-quarter on a like-for-like basis.\n<\/p>\n \nUnless otherwise stated, all variations indicated below are on a like-for-like basis, ie, at constant currency and perimeter.\n<\/p>\n Broadcast (62% of revenues) <\/b><\/p>\n First Half<\/b> Broadcast revenues were down 1.8% to \u20ac379 million, reflecting predominantly the impact from 1st July of the renegotiation of contract terms with Greece\u2019s Forthnet.\n<\/p>\n Second Quarter<\/b> revenues stood at \u20ac188 million down by 2.1% year-on-year. On a sequential basis, they were down 0.9% and were stable excluding a positive one-off of circa \u20ac2m booked in the first quarter.\n<\/p>\n \nAt 31 December 2020, the total number of channels broadcast by Eutelsat satellites stood at 6,608, down 3.9% year-on-year. HD penetration continued to increase, standing at 1,767 channels versus 1,605 a year earlier (+10%), implying a penetration rate of 26.7% up from 23.3% a year earlier.\n<\/p>\n \nOn the commercial front, the African market remained dynamic with notably the expansion of the contract with Multichoice and the extension of the contract with ZAP, both operating at the 36\u00b0East orbital position. On the other hand, we continue to face a broad slowdown in the pace of new business against the current operating backdrop, notably in Europe, which will be reflected in the Second Half. As a reminder, in the first quarter a multi-year agreement was reached with Sky Italia, Eutelsat\u2019s largest broadcast customer for the renewal and consolidation of its capacity agreements at the HOTBIRD position, securing broadly stable revenues for Eutelsat in the medium term.\n<\/p>\n Data & Professional Video (13% of revenues) <\/b><\/p>\n First Half<\/b> revenues stood at \u20ac81 million, down by 4.5% year-on-year.\n<\/p>\n \nFixed Data continued to reflect ongoing pricing pressure and highly competitive environment in particular in Latin America, although it is now partially offset by improving volumes reflecting notably the carry-forward effect of new business secured in MENA last year.\n<\/p>\n \nProfessional Video remained in decline on a year-on-year basis although Occasional Use, which was initially strongly impacted by the Covid-related lockdowns, confirmed its recovery in the past few months following the reinstatement of live sports events\n<\/p>\n Second Quarter<\/b> revenues stood at \u20ac42 million down 2.7% year-on-year but up by 7.2% quarter-on-quarter notably on the back of the rebound of Occasional Use.\n<\/p>\n \nOn the commercial front, a capacity contract with Liquid Telecom for the provision of VSAT services on the EUTELSAT 7B satellite was renewed and expanded.\n<\/p>\n Government Services (13% of revenues) <\/b><\/p>\n First Half<\/b> Government Services revenues stood at \u20ac77 million, up by 2.5%, with the negative carry-forward impact of the US Government renewal campaigns of the past 18 months more than offset by the contribution of the EGNOS payload and by new business.\n<\/p>\n Second Quarter<\/b> revenues stood at \u20ac39 million, up by 4.5% year-on-year and by 2.1% quarter-on-quarter.\n<\/p>\n \nAs a reminder, Second Half revenues will reflect a tougher comparison basis, as the same period last year included the first-time contribution of EGNOS from mid-February as well as a positive one-off related to the temporary relocation of EUTELSAT 7A in the Fourth Quarter.\n<\/p>\n \nOn the commercial front, an agreement was signed with the European Global Navigation Satellite Systems Agency (GSA) for a further EGNOS payload to be carried by the EUTELSAT HOTBIRD 13G satellite for a total contract value of \u20ac100m over 15 years.\n<\/p>\n Fixed Broadband (7% of revenues) <\/b><\/p>\n First Half<\/b> revenues stood at \u20ac42 million, up 2.3% reflecting notably higher sales of terminals in Europe in a context of increased demand for internet connectivity leading to a positive momentum of the European customer base in the last twelve months.\n<\/p>\n Second Quarter<\/b> revenues stood at \u20ac22 million. On a like-for-like basis, they were up 0.8% year-on-year, and down by 6.5% compared to the First Quarter which included a high level of terminals sales.\n<\/p>\n \nIn Europe, all the elements are now in place for a progressive return to growth: the KONNECT satellite gradually entered into service from mid-November and is now close to full-speed operations. The integration of Bigblu Broadband is progressing smoothly, and the first retail offers were launched in several countries. In parallel, two wholesale agreements have been inked with Orange and TIM, covering France and Italy respectively, and are starting to generate revenues from the current semester. In Africa, while revenues remain modest, progress has been made notably with a contract to provide connectivity services to the Post Office in Ivory Coast, highlighting the potential of government backed digital inclusion programs, and an agreement with the internet service provider, TelOne, covering Zimbabwe.\n<\/p>\n Mobile Connectivity (5% of revenues) <\/b><\/p>\n First Half <\/b>revenues stood at 34 million, down 13.9% like-for-like, reflecting the impact of the Covid-19 crisis on Aero Mobility, leading to both a low level of airtime-related revenues on KA-SAT and to the renegotiation of contracts with certain service providers. On the other hand, maritime revenues remained well-oriented thanks to the ramp-up of contracts secured in the last couple of years.\n<\/p>\n Second Quarter<\/b> revenues stood at \u20ac16 million, down 20.1% year-on-year and by 6.9% quarter-on-quarter. As a reminder, the Second Quarter of FY 2019-20 included the catch-up of a negative one-off booked in the First Quarter for circa \u20ac1m.\n<\/p>\n Other Revenues <\/b><\/p>\n \nIn the First Half<\/b>, Other Revenuesamounted to \u20ac15 million versus \u20ac1 million a year earlier. They included a \u20ac6 million positive impact from hedging operations versus a negative impact of (\u20ac5) million a year earlier.\n<\/p>\n OPERATIONAL AND UTILIZED TRANSPONDERS <\/b><\/p>\n \nThe number of operational transponders at 31 December 2020 stood at 1,380, down by seven units year-on-year, mainly reflecting on one hand lower operational capacity at 5\u00b0 West following the transfer of services from EUTELSAT 5 West A to EUTELSAT 5 West B in January 2020, and on the other, incremental capacity brought by EUTELSAT 7C in January 2020. Relative to end-June 2020 they were up by four units.\n<\/p>\n \nThe number of utilized transponders stood at 967, almost unchanged year-on-year and up by seven units compared to end June.\n<\/p>\n \nAs a result, the fill rate progressed to 70.1% compared to 69.7% a year earlier and at end-June.\n<\/p>\n \n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n31 Dec. 2019\n<\/p>\n<\/td>\n | \n \n30 June 2020\n<\/p>\n<\/td>\n | \n 31 Dec. 2020<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nOperational transponders7<\/sup><\/p>\n<\/td>\n| \n \n1,387\n<\/p>\n<\/td>\n | \n \n1,376\n<\/p>\n<\/td>\n | \n 1,380<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nUtilized transponders8<\/sup><\/p>\n<\/td>\n| \n \n966\n<\/p>\n<\/td>\n | \n \n960\n<\/p>\n<\/td>\n | \n 967<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nFill rate\n<\/p>\n<\/td>\n | \n \n69.7%\n<\/p>\n<\/td>\n | \n \n69.7%\n<\/p>\n<\/td>\n | \n 70.1%<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n Note<\/b>: Based on 36 MHz-equivalent transponders excluding high throughput capacity and satellites in inclined orbit.\n<\/p>\n ORDER BACKLOG <\/b><\/p>\n \nThe order backlog9<\/sup> stood at \u20ac4.4 billion at 31 December 2020 versus 4.3 billion a year earlier and 4.1 billion at end June 2020. It now includes the capacity commitments secured with TIM on EUTELSAT KONNECT and KONNECT VHTS but not yet the recent contract for the additional EGNOS payload.\n<\/p>\n\nThe backlog was equivalent to 3.4 times 2019-20 revenues, and Broadcast represented 67% of the total.\n<\/p>\n \n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n31 Dec.
\n
2019\n<\/p>\n<\/td>\n | \n \n30 June
\n
2020\n<\/p>\n<\/td>\n | \n 31 Dec.
\n
2020<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nValue of contracts (in billions of euros)\n<\/p>\n<\/td>\n | \n \n4.3\n<\/p>\n<\/td>\n | \n \n4.1\n<\/p>\n<\/td>\n | \n 4.4<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n In years of annual revenues based on previous fiscal year<\/i><\/p>\n<\/td>\n | \n 3.3<\/i><\/p>\n<\/td>\n | \n 3.2<\/i><\/p>\n<\/td>\n | \n 3.4<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nShare of Broadcast application\n<\/p>\n<\/td>\n | \n \n68%\n<\/p>\n<\/td>\n | \n \n68%\n<\/p>\n<\/td>\n | \n \n67%\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n PROFITABILITY <\/b><\/p>\n EBITDA<\/b> stood at \u20ac482 million at 31 December 2020 compared with \u20ac496 million a year earlier, down by 2.7%. The EBITDA margin<\/b> stood at 76.7% (76.7% at constant currency) versus 77.8% a year earlier, reflecting lower revenues and higher costs to prepare the change in scale in Fixed Broadband including the slightly dilutive impact from the consolidation of Bigblu Broadband Europe. These effects were partially offset by a strong cost discipline on the Core business. The LEAP 2 cost-saving program is well on track to deliver its objective of \u20ac20-25 million in annual savings by 2021-22 with around half of this amount to be delivered by the end of the current fiscal year.\n<\/p>\n Group share of net income<\/b> stood at \u20ac137 million versus \u20ac141 million a year earlier, down by 2.3% and representing a margin of 22%. This reflected:\n<\/p>\n\n- \nBroadly stable depreciation and amortisation <\/b>((\u20ac260) million at 31 December 2020 compared with (\u20ac263) million a year earlier);\n<\/li>\n
- \nA net financial result <\/b>of (\u20ac47) million (versus (\u20ac41) million a year earlier), reflecting on one hand the benefit of previous debt refinancing and on the other an unfavourable impact related to the evolution of foreign exchange gains and losses;\n<\/li>\n
- \nA tax rate<\/b> of 14% (versus 18% last year) reflecting notably the favourable effect of currency and inflation on deferred tax assets and liabilities as well as the decrease of two points of the corporate tax rate in France.\n<\/li>\n<\/ul>\n
CASH FLOW <\/b><\/p>\n \nIn H1 2020-21, net cash flow from operating activities<\/b> amounted to \u20ac435 million, \u20ac82 million higher than a year earlier. It reflected notably lower tax paid as well as a favourable comparison basis for change in working capital, since June 2020 reflected the most acute stage of the Covid-19 crisis.\n<\/p>\n Cash Capex<\/b> amounted to \u20ac117 million (versus \u20ac189 million last year); this level reflects the phasing of satellite program milestones and is not representative of the expected Full Year figure.\n<\/p>\n Interest and other fees paid net of interest received<\/b> amounted to \u20ac61 million versus \u20ac57 million last year, the slight increase reflecting a phasing effect. As a reminder the bulk of the coupon payments related to our Bonds fall due in the First Half (three maturities representing a nominal amount of \u20ac1.7bn) with only one maturity in the Second Half (\u20ac500m nominal amount).\n<\/p>\n Discretionary Free Cash-Flow<\/b> amounted to \u20ac257 million on a reported basis, up \u20ac149 million. Adjusted Discretionary Free Cash-Flow as per the financial outlook definition10<\/sup> stood at \u20ac275 million, up \u20ac158 million or 134%.\n<\/p>\nFINANCIAL STRUCTURE <\/b><\/p>\n \nIn the First Half, the Group raised \u20ac800 million of financing<\/b> highlighting its ease of access to diversified sources of funding and leading to the extension of the average debt maturity on compelling terms. A \u20ac600 million Eurobond was issued in October with an 8-year maturity and a 1.5% coupon to refinance the June 2021 \u20ac500 million maturity. Elsewhere, an agreement was secured with the European Investment Bank for a \u20ac200 million 8-year term loan to finance the KONNECT VHTS program at an interest rate of 0.49%. The Group\u2019s strong liquidity position enabled it to make an early repayment of \u20ac200 million out of the \u20ac600 million term loan maturing in March 2022.
\n
At 31 December 2020, net debt<\/b> stood at \u20ac2,994 million, down \u20ac5 million versus end-June. It mainly reflected on one hand the \u20ac257 million in Discretionary Free Cash-Flow generated in H1, and on the other, the dividend payment of \u20ac205 million and an outflow \u20ac56 million11<\/sup> related to changes in perimeter. Other items (mostly variations related to leases, structured debt and the foreign exchange portion of the cross-currency swap) contributed to the decrease in net debt for a net impact of \u20ac9 million. Compared to 31 December 2019, net debt was reduced by \u20ac240m. As a reminder, the month of December represents a peak in the annual net debt profile reflecting the timing of the dividend payment.\n<\/p>\n\nThe net debt to EBITDA ratio<\/b> stood at 3.09 times, compared to 3.20 times at end-December 2019 and 3.05 times at end-June 2020.\n<\/p>\n \nThe average cost of debt after hedging stood at 2.3% (2.4% in H1 2019-20). The weighted average maturity of the Group\u2019s debt stood at 4.3 years, or 4.9 years excluding the Bond maturing in June 2021, which is already refinanced, compared to 4.2 years at end-December 2019.\n<\/p>\n \nLiquidity remained strong, with undrawn credit lines and cash in excess of \u20ac1.7 billion.\n<\/p>\n DIVIDEND <\/b><\/p>\n \nThe Annual General Meeting of Shareholders of 5 November 2020 approved the payment of a dividend of \u20ac0.89 per share in respect of the financial year ended 30 June 2020. The dividend was paid on November 24, 2020.\n<\/p>\n CHANGES IN PERIMETER <\/b><\/p>\n \nOn 1 October 2020, the transaction with Bigblu Broadband for the acquisition of its European satellite broadband activities was closed for a consideration of approximately \u00a338 million.\n<\/p>\n \nOn 18 November 2020, an agreement was signed with Viasat Inc. for the disposal of Eutelsat\u2019s 51% stake in Euro Broadband Infrastructure (EBI), the company operating the KA SAT satellite and related European broadband business, for an initial consideration of \u20ac140 million. Completion is expected by the end of the current quarter, subject to customary conditions precedent.\n<\/p>\n \nThe net impact of the combined operations is estimated at around (\u20ac20) million on Operating Vertical Revenues and (\u20ac30) million on Discretionary Free Cash-Flow for the first full fiscal year following completion of the transactions.\n<\/p>\n \nAs stated above, our Full Year 2020-21 revenues target is raised, despite the net negative perimeter effect linked to these transactions which will affect the second half, while the FY 2021-22 Adjusted Discretionary Free Cash-Flow objective is mechanically adjusted.\n<\/p>\n FINANCIAL OUTLOOK <\/b><\/p>\n \nOn the back of our robust First Half revenue performance, we are in a position to raise the low end of our FY 2020-21 objective of revenues for the five Operating Verticals to between \u20ac1,190 million and \u20ac1,220 million12<\/sup> (versus between \u20ac1,180 million to \u20ac1,220 million previously). We are also absorbing the negative effect of changes in perimeter expected in the second half.\n<\/p>\n\nAs highlighted by the First Half performance, we remain well on track on our Cash-Flow generation trajectory. The Adjusted Discretionary Free Cash-Flow objective for FY 2021-22, which was based on a constant perimeter assumption, is mechanically adjusted from the (\u20ac30) million net impact of the combined operations of the acquisition of Bigblu Broadband Europe and the disposal of EBI and now stands between \u20ac390 million and \u20ac420 million13<\/sup> in FY 2021-22 (\u20ac420 million to \u20ac450 million previously).\n<\/p>\n\nAll other elements of the financial outlook are confirmed:\n<\/p>\n \n- \nCash Capex14<\/sup> at an average not exceeding \u20ac400 million per annum for the period July 2020 to June 2022.\n<\/li>\n
- \nLEAP 2 plan aimed at generating \u20ac20-25 million in annual savings by FY 2021-22.\n<\/li>\n
- \nCommitment to a sound financial structure to support our investment grade credit ratings targeting a medium-term net debt \/ EBITDA ratio of around 3x.\n<\/li>\n
- \nStable to progressive dividend policy based on the dividend of 0.89 euros paid in November 2020.\n<\/li>\n<\/ul>\n
\nThis outlook is based on the nominal deployment plan outlined hereunder.\n<\/p>\n FLEET DEPLOYMENT <\/b><\/p>\n Nominal deployment programme <\/b><\/p>\n \nThe Covid-19 crisis continued to affect the operations of satellite manufacturers and launchers. In this context, since the last quarterly update in October 2020:\n<\/p>\n \n- \nthe launch of EUTELSAT QUANTUM is now expected in Q2 2021, versus Q1 2021 previously;\n<\/li>\n
- \nthe launch of EUTELSAT HOTBIRD 13G is now expected in H1 2022, versus H2 2021 previously.\n<\/li>\n
- \nthe launch of KONNECT VHTS 13G is now expected in H1 2022, versus the very end of H2 2021 previously.\n<\/li>\n<\/ul>\n
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