Company: SGBAF
Filing Date: 2025-04-23
Form Type: DRS/A
Source: 0000950123-25-003652
Chunk: 46

Company: SES S.A.
Filing Date: 2025-04-23
Form: DRS/A
Chunk 46
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 base is subject to constant change, both in terms of volume and type of service purchased. Some of SES’s major customers
could decide not to renew their contracts, seek to renew them on scope or terms that are less favorable to SES or, where a contract contains an early-termination right, may terminate a contract before the end of its term. Given the fast-changing
nature of the industry, if a customer decides not to renew an agreement (for example, as a result of developing or increasing relationships with other operators or moving to other telecommunications solutions), it may take a number of years before
SES has the opportunity to replace that business. Also, if key customers cease or reduce their purchases from SES by developing or increasing relationships with other satellite solution providers (or moving to other telecommunications solutions) and
such key customer cannot be replaced, SES’s revenue may be impacted negatively.

In addition, key customers may go bankrupt or
combine with other customers through mergers and acquisitions. Consolidation in the industries in which SES’s customers operate may increase their bargaining power and leverage when negotiating agreements with SES, leading to pressure on
pricing. Budget cuts may also be imposed on SES’s governmental customers.

The loss of large customers or the reduction in demand for
our services from customers for any of the reasons described in this paragraph could have a material adverse effect on SES’s business, financial condition and results of operations.

SES is exposed to general customer counterparty risk, especially in developing markets.

SES is exposed to risks associated with the financial condition of its customers and their ability to fulfil their contractual obligations. If
any customer experiences financial difficulties or fails to fulfil its contractual

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Confidential Treatment Requested by SES Pursuant to 17 C.F.R. Section 200.83 commitments to SES, SES may incur costs enforcing its contractual rights and may incur significant losses. SES has a number of customer contracts where the customer’s payments to SES are scheduled towards the end of the contractual term but the revenue is recognized in SES’s accounts on a linear basis under IFRS accounting standards. As a result, if a customer experiences financial difficulties or fails to fulfil its contractual commitments to SES, SES may not only fail to receive the revenue due from the customer but may also have to record a loss to offset the revenue already recognized in its financial statements. The level of customer credit risk faced by SES may increase as it grows revenue in developing markets because credit risk tends to be higher in these markets. Any failure of SES’s customers to fulfil their contractual commitments to SES could