Company: SGBAF
Filing Date: 2025-01-17
Form Type: DRS/A
Source: 0000950123-25-000378
Chunk: 243

Company: SES S.A.
Filing Date: 2025-01-17
Form: DRS/A
Chunk 243
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. Such impairment tests are based on a recoverable value determined using estimated future cash flows and an appropriate discount rate. The estimated cash flows are based on the most recent business plans. As disclosed by management, in 2023 a net impairment expense was recorded for space segment assets of EUR 26 million, including EUR 30 million in reversal of previous impairments and for space segment assets under construction of EUR 425 million. Management’s future cash flows requires estimation of the future commercial revenues to be generated by each satellite, the impact of past in-orbitanomalies, and discount rates assumptions. The principal considerations for our determination that performing procedures relating to the impairment testing of space segment assets including assets under construction is a critical audit matter are (i) the significant judgment by management when developing the value in use estimate of space segment assets including assets under construction; (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management’s significant assumptions related to the future commercial revenues, in-orbitanomalies and discount rates; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included, among others (i) testing management’s process for developing the value in use estimate of space segment assets including assets under construction; (ii) evaluating the appropriateness of the value in use approach used by management; (iii) testing the completeness and accuracy of underlying data used in the discounted cash flow model; and (iv) evaluating the reasonableness of the significant assumptions used by management related to the future commercial revenues, in-orbitanomalies and discount rates. Evaluating management’s assumptions related to the future commercial revenues and in-orbitanomalies involved evaluating whether the assumptions used by management were reasonable considering (i) the current and past performance of space segment assets, (ii) evaluation of significant business developments during the forecast period; (iii) the consistency with external market and industry data; and (iv) review of satellites health reports and evaluation of their impact on the satellites capability to generate future cash flows. Professionals with specialized skill and knowledge were used to assist in evaluating (i) the appropriateness of the value in use model and (ii) the reasonableness of the discount rates assumption. PricewaterhouseCoopers, Société coopérative Luxembourg, 8 November 2024 Represented by /s/ Asif