Company: SGBAF
Filing Date: 2025-01-17
Form Type: DRSLTR
Source: 0000950123-25-000379
Chunk: 13

Company: SES S.A.
Filing Date: 2025-01-17
Form: DRSLTR
Chunk 13
---
 as a new intangible asset upon implementation of Fresh Start Accounting. The fair value of the ARP Rights was estimated to be $2,855 million and was one of the primary reasons for the reduction in the resulting residual goodwill amount at Fresh Start. Intangible Assets write-down at Fresh Start (Orbital Slots) A key assumption used to develop the orbital slots valuation in prior years related to the average/terminal capital expenditure. Upon emergence from bankruptcy, Intelsat noted that if the valuation of the legacy reporting unit utilized a $300M terminal capital expenditure amount (the assumption utilized in December 2020’s valuation) and a reasonable rate of return, the orbital slots would have been valued higher and would have resulted in Intelsat having an enterprise value of $12B, which was above the range of the disclosed and agreed upon range of values contained in the disclosure statement approved by the Bankruptcy Court. Therefore, Intelsat made changes to the terminal capital expenditure amount that were attributable to the following reasons:

| • |     | The $300M capital expenditure assumption used in the terminal year for the December 2020 valuation would not be                                                                                                  
 sufficient to grow the business at the estimated long-term growth rate of +2%, and the evolving landscape of the industry would require more capital expenditure to be spent to generate revenues going forward. |

| • |     | Intelsat’s management believed a $500M capital expenditure assumption in the terminal year, inclusive of                                                                                                                                       
 maintenance capital expenditure (split as $460M for the legacy Intelsat reporting unit and $40M for Intelsat’s commercial aviation reporting unit), to be more in line with what would be needed to achieve a terminal year growth rate of 2%. |

Laura Veator Stephen Krikorian January 17, 2025 Page 10

| • |     | Intelsat’s management also noted that the orbital slots were becoming less valuable than historical values,                                                                                                     
 as middle earth orbit and lower earth orbit alternatives were making the geo-stationary orbital slots less valuable. Additionally, with more spend required to earn every incremental dollar of revenue, it was 
 natural for the orbital slots value to drop more than other assets of the business.                                                                                                                             |

| • |     | Given that the industry has experienced a change from GEO to Low/Medium Earth Orbit (LEO and MEO, respectively),                                                                                                                            
 Intelsat’s management identified that given the fact that not only had they experienced more competition in the satellite industry but there was