Company: SGBAF
Filing Date: 2025-04-01
Form Type: DRS/A
Source: 0000950123-25-003272
Chunk: 211

Company: SES S.A.
Filing Date: 2025-04-01
Form: DRS/A
Chunk 211
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 came with long-term contracts. Government applications trended down just slightly with more activity in global government services for non-critical coverages versus areas of regional conflict. Mobility rates declined for both maritime and aeronautical broadband services as customers had more buying options. In networks, high-volume commitments from mobile network operators for cellular backhaul services continued to yield lower prices, further influenced by non-geostationaryalternatives in the market. Euroconsult forecasts continued price disruption for data and broadband markets based on an abundance of supply and the falling cost basis that allows for aggressive pricing models. The pricing of Intelsat’s services is generally fixed for the duration of the service commitment. New and renewing service commitments are priced to reflect regional demand and other factors as discussed above. Operating Expenses Direct Costs of Revenue (Excluding Depreciation and Amortization) Direct costs of revenue relate to costs associated with the operation and control of Intelsat’s satellites, Intelsat’s communications network and engineering support, and the purchase of off-networkcapacity. Direct costs of revenue consist principally of third-party capacity and equipment, salaries and related employment costs, in-orbitinsurance, earth station operating costs and facilities costs. Intelsat’s direct costs of revenue fluctuate based on the number and type of services offered and under development, particularly as sales of off-networktransponder services and sales of customer premises equipment fluctuate. Intelsat expects its direct costs of revenue to increase as it adds customers and expand its managed services and use of off-networkcapacity. Direct costs of revenue related to Intelsat’s in-flightservices include network-related expenses (ATG and satellite network expenses, including costs for transponder capacity and backhaul, as well as data centers, network operations centers and network technical support), aircraft operations, component assembly, portal maintenance, revenue share and transactional costs. Direct costs of revenue for Intelsat’s in-flightequipment revenue primarily consists of the purchase costs for component parts used in the manufacture of its equipment and the production, installation, technical support and quality assurance costs associated with equipment sales. 153

Confidential Treatment Requested by SES Pursuant to 17 C.F.R. Section 200.83 Selling, General and Administrative Expenses Selling, general and administrative expenses relate to costs associated with Intelsat’s sales and marketing staff and its administrative staff, which include legal, finance, corporate information technology and human resources. Staff expenses consist primarily of salaries and related employment costs, including stock compensation, and travel costs. Selling, general and administrative