Company: SGBAF
Filing Date: 2025-01-17
Form Type: DRS/A
Source: 0000950123-25-000378
Chunk: 300

Company: SES S.A.
Filing Date: 2025-01-17
Form: DRS/A
Chunk 300
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 capacity in the first generation of the mPOWER constellation and delay until 2026 to be able to fully exploit the capacity of the constellation have materially impacted the value in use computation of the MEO cash-generating unit in the current year and contributed to impairment charges impacting the goodwill, orbital slot rights and satellites in the course of construction associated with the MEO cash generating unit. As noted above the MEO valuation uses a statistical H-modeland two parameters of this model were updated vis-à-visthe corresponding analysis for the year ended December 31, 2022. Firstly, the growth F-55

Confidential Treatment Requested by SES Pursuant to 17 C.F.R. Section 200.83 Consolidated financial statements as of and for the years ended December 31, 2023 and December 31, 2022 rate assumed in the first year after the business plan period (2024 to 2028) was reduced from 10% to 5%, reflecting more cautious assumptions pending the bringing into services of the second-generation mPOWER constellation. And secondly the period over which this growth rate reduces on a straight-line basis to a long-term inflation rate (3% in both years) was reduced from ten to nine years.

| 3. | Other business developments in 2023 |

Beyond the changes in valuation parameters such as discount rates and perpetual growth rates described above, in generating the revised assumptions for its five-year business plan management also revised its cashflow projections concerning each cash generating unit. These projections took into account the increasingly competitive market environment across the Group’s different business verticals and its impact on capacity volumes and pricing. The impact of the three factors listed above on the outcome of the impairment testing is set out below in relation to intangible assets, and in Note 13 (‘Property, plant and equipment’) and in Note 14 (‘Assets in the course of construction’). Impairment charges recorded for 2023 and 2022 Goodwill As a result of the impairment tests conducted as of December 31, 2023, an impairment expense of EUR 1,548 million (2022: EUR 77 million) was recorded, comprising impairment charges to GEO North America of EUR 989 million (2022: EUR 77 million), GEO International of EUR 340 million (2022: nil), and MEO of EUR 219 million (2022: nil). The impairment booked in 2023 was mainly driven by the business developments described above and reflect the foreign exchange