Company: SGBAF
Filing Date: 2025-01-17
Form Type: DRS/A
Source: 0000950123-25-000378
Chunk: 220

Company: SES S.A.
Filing Date: 2025-01-17
Form: DRS/A
Chunk 220
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 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 of the guideline companies. The multiples are developed by first calculating the market value of equity of the guideline companies and then adjusting these multiples for cash and debt to
arrive at a BEV multiple. Identifying appropriate guideline companies and computing appropriate market multiples is subjective. Intelsat considered various public companies that had reasonably similar qualitative factors as Intelsat’s reporting
units while also considering quantitative factors such as revenue growth, profitability and total assets.

See Note 8—Goodwill and
Other Intangible Assets of the Intelsat audited financial statements for the period ended December 31, 2023 included elsewhere in this prospectus for discussion of the impairment charges recognized.

Orbital Locations. Intelsat determined the estimated fair value of its rights to operate at orbital locations by using the build-up method to determine cash flows for the income approach, with the resulting projected cash flows discounted at an appropriate weighted average cost of capital. Under the
build-up approach, the amount a reasonable investor would be willing to pay for the right to operate a satellite business using orbital locations is calculated by first estimating the cash flows that typical
market participants might assume could be available from the right to operate satellites using the subject location in a similar market. It is assumed that rather than acquiring such a business as a going concern, the buyer would hypothetically
start with the right to operate satellites at orbital locations and build a new business with similar attributes from the beginning. Thus, the buyer is assumed to incur the start-up costs and losses typically
associated with the going concern value and pay for all other tangible and intangible assets.

The key assumptions used in estimating the
fair values of Intelsat’s rights to operate at its orbital locations included the following: (i) market penetration leading to revenue growth, (ii) profit margin, (iii) duration and profile of the
build-up period, (iv) estimated start-up costs and losses incurred during the build-up period and (v) weighted average
cost of capital. See additional discussion under “Goodwill” above.

Trade Name. Intelsat have implemented the
relief from royalty method to determine the estimated fair value of the Intelsat trade name. The relief from royalty analysis is composed of two major steps: (i)