Company: SGBAF
Filing Date: 2025-05-08
Form Type: F-4/A
Source: 0001193125-25-115825
Chunk: 179

Company: SES S.A.
Filing Date: 2025-05-08
Form: F-4/A
Chunk 179
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 SES will contribute approximately 50% of the MEO cost while having the benefit of commercializing about 90% of the MEO
capacity and part of the LEO capacity.

If confirmed twelve months after the original contract signature date (December 16, 2024) through
a contractual mechanism which allows SES to evaluate the status of the IRIS contract execution and its compliance with SES’s investment conditions, the associated capital expenditure of up
to EUR 1.8 billion is currently expected to mainly arise in the period from 2027 and 2030 and to be financed through a combination of business cash flows and additional borrowing, if required.

With deployment of SES’s O3b mPOWER anticipated to be completed in 2027 and subsequent commercial ramp-up, the delivery of IRIS is well timed to provide next-generation MEO capabilities to serve expanding customer demand for SES’s high-performance connectivity solutions, underpinning profitable growth into the next
decade. The IRIS satellites will form the foundation for SES’s next-generation MEO capabilities.

The contract grants protections to support SES’s IRR including, but not limited to, i) a rendezvous point at the end of 2025 to validate
the project cost, technical requirements, and delivery timetable, whereby any party can exit in the event of excess expected cost, not meeting technical requirements, and/or delays to the in-service date; ii) mechanism to seek renegotiation to
protect the IRR for qualifying reasons, such as delay in start of service; iii) certain protections from annual cost overruns; and iv) the Commission will cover any extra cost resulting from launch failures up to in-orbit validation.

In December 2024 the Group received an initial funding (“Pre-financing”) of EUR 300 million (2023: EUR nil) from the European
Commission for IRIS program costs arising in the first year of the program for both the Group and other consortium members and subcontractors. In the event of an early termination of the
Concession Agreement for IRIS, the Group has a contractual commitment to refund the European Commission any residual portion of the EUR 300 million Pre-financing which is unused or uncleared
against milestones accepted in accordance with the Concession Agreement.

On December 17, 2024, SES successfully launched O3b mPOWER
satellites seven and eight. Both satellites will join the first six O3b mPOWER spacecraft already in operation at medium Earth orbit (MEO), adding incremental capacity to the initial O3