Company: SGBAF
Filing Date: 2025-05-15
Form Type: 424B3
Source: 0001193125-25-120606
Chunk: 256

Company: SES S.A.
Filing Date: 2025-05-15
Form: 424B3
Chunk 256
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 of its reporting units by using the income approach and corroborating the results
using the market approach. For the income approach, Intelsat specifically used the discounted cash flow (“DCF”) method, where the value is estimated based on expected free cash flow, discounted to its present value at a rate of return
commensurate with the risk associated with realizing that cash flow. In estimating the undiscounted cash flows, Intelsat primarily used its internally prepared budgets and forecast information. The key assumptions included in Intelsat’s model
were projected growth rates, cost of capital, effective tax rates, industry and economic trends, and the discount rate applied to those cash flows.

Whenever appropriate, management obtains these input assumptions from observable market data sources and extrapolates the market information
if an input assumption is not observable for the entire forecast period. Many of these input assumptions are dependent on other economic assumptions, which are often derived from statistical economic models with inherent limitations such as
estimation differences. Further, several input assumptions are based on historical trends which often do not recur. It is not uncommon that different market data sources have different views of the macroeconomic factor expectations and related
assumptions. As a result, macroeconomic factors and related assumptions are often available in a narrow range; however, in some situations these ranges become wide and the use of a different set of input assumptions could produce significantly
different budgets and cash flow forecasts.

A considerable amount of judgment is also applied in the estimation of the discount rate used
in the DCF model, which is an estimate of weighted-average cost of capital, which reflects the aggregate of expected rates of return on investments in Intelsat’s debt and equity. To the extent practical, inputs to the discount rate are obtained
from market data sources (e.g., Capital IQ). Intelsat selects and uses a set of publicly traded companies from the relevant industry to estimate the discount rate inputs. Management applies judgment in the selection of such companies based on its
view of the most likely market participants. It is reasonably possible that the selection of a different set of likely market participants could produce different input assumptions and result in the use of a different discount rate.

For the market approach, Intelsat specifically used the guideline public company method, where fair value is determined based on multiples
derived from the stock prices of publicly traded guideline companies to develop a business enterprise value (“BEV”) for each reporting unit. The application of the market multiples method entails the development of EBITDA multiples based
on the market value