Intelsat S.A.

Société anonyme

Annual accounts

For the year ended December 31, 2020

(With the report of the Réviseur d'Entreprises agréé thereon)

Stephen Spengler

David Tolley

Chief Executive Officer

Chief Financial Officer

4, rue Albert Borschette L-1246 Luxembourg

RCS Luxembourg B162.135

Intelsat S.A.

Index to the Annual Accounts

Page

Report of the Réviseur d'entreprises agréé ..............................................................................................

2-5

Annual Accounts:

Balance sheet ........................................................................................................................................

6-7

Profit and loss account ..........................................................................................................................

8-9

Notes to Annual Accounts ....................................................................................................................

10-15

.

KPMG Luxembourg, Société coopérative

Tel.: +352 22 51 51 1

39, Avenue John F. Kennedy

Fax: +352 22 51 71

L-1855 Luxembourg

E-mail: info@kpmg.lu

Internet: www.kpmg.lu

To the Shareholders of Intelsat S.A.

4, rue Albert Borschette L-1246 Luxembourg

REPORT OF THE REVISEUR D'ENTREPRISES AGREE

Opinion

We have audited the annual accounts of Intelsat S.A. (the "Company"), which comprise the balance sheet as at 31 December 2020, and the profit and loss account for the year then ended, and notes to the annual accounts, including a summary of significant accounting policies.

In our opinion, the accompanying annual accounts give a true and fair view of the financial position of the Company as at 31 December 2020 and of the results of its operations for the year then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation and presentation of the annual accounts.

Basis for opinion

We conducted our audit in accordance with the Law of 23 July 2016 on the audit profession ("Law of 23 July 2016") and with International Standards on Auditing ("ISAs") as adopted for Luxembourg by the Commission de Surveillance du Secteur Financier ("CSSF"). Our responsibilities under the Law of 23 July 2016 and ISAs as adopted for Luxembourg by the CSSF are further described in the « Responsibilities of "réviseur d'entreprises agréé" for the audit of the annual accounts » section of our report. We are also independent of the Company in accordance with the International Code of Ethics for Professional Accountants, including International Independence Standards, issued by the International Ethics Standards Board for Accountants ("IESBA Code") as adopted for Luxembourg by the CSSF together with the ethical requirements that are relevant to our audit of the annual accounts, and have fulfilled our other ethical responsibilities under those ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material Uncertainty Related to Going Concern

We draw attention to Note 2 to the annual accounts which state that the Company filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code which constituted an event of default on substantially all of the Company's debt obligations which raise substantial doubt about its ability to continue as a going concern. As stated in Note 2, these events or conditions, along with other matters as set forth in Note 2, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

© 2021 KPMG Luxembourg, Société coopérative, a Luxembourg entity and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

T.V.A. LU 27351518

R.C.S. Luxembourg B 149133

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the annual accounts of the current period. These matters were addressed in the context of the audit of the annual accounts as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Valuation of Shares in Affiliated Undertakings

Refer to accounting policies and valuation methods in note 2(c) and to note 3 (financial assets) to the annual accounts.

Why the matter was considered to be one

How the matter was addressed in our audit

of the most significant in our audit of the

annual accounts of the current period

Since April 2020, the Company and its

Our audit procedures over the valuation of shares

subsidiaries stopped paying the services

in affiliated undertakings included, but were not

attached to their unsecured debts.

limited to:

In May 2020, the Intelsat group has filed for

Evaluating the appropriateness of the

voluntary protection under the Chapter 11 in

the US and the shares has been delisted form

accounting policies

and valuation methods,

our business

understanding and industry

New York stock exchange.

practice;

Management

considered

other

qualitative

Assessing

our

understanding

of

factors

including,

general

macroeconomic

management's processes over valuation of

shares in affiliated undertakings;

conditions with covid-19, industry and market

Evaluating

the

reasonableness

of

considerations, cost factors, overall financial

performance and other relevant entity-specific

management's

key

judgements

and

estimates made in

valuation of

shares in

events at year end and accordingly, decided to

affiliated undertakings, including selection of

record a full value adjustment on the shares in

methods, models,

assumptions

and

data

Intelsat

Investment Holding S.à

r.l. as at

sources;

December 31, 2020.

Evaluating uncertainties surrounding the exit

We identified the

valuation of the shares in

from Chapter 11 and restructuring of the

affiliated undertakings as a key audit matter,

Company and other contingencies;

considering the complex management and

Assessing the completeness, accuracy and

auditor judgment was required in evaluating

relevance of key data used in the Company's

the Company's evaluation, which was

valuation model;

performed using a discounted cash flow model

Evaluating the appropriateness and testing

and included assumptions regarding the

the mathematical accuracy of the model

amount and timing of the C-band accelerated

applied;

clearing incentive payments to be received

Evaluating the completeness, accuracy and

from

the

Federal

Communications

relevance of disclosures required by

Commission

(FCC), projected

revenue

Luxembourg

legal

and

regulatory

amounts to be realized as well as the

requirements.

Company's qualitative evaluation of the

uncertainties related to the restructuring of the

Company and its subsidiaries and

contingencies existing as at December 31,

2020.

Responsibilities of the Board of Directors for the annual accounts

The Board of Directors is responsible for the preparation and fair presentation of the annual accounts in accordance with Luxembourg legal and regulatory requirements relating to the preparation and presentation of the annual accounts, and for such internal control as the Board of Directors determines is necessary to enable the preparation of annual accounts that are free from material misstatement, whether due to fraud or error.

In preparing the annual accounts, the Board of Directors is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Responsibilities of the réviseur d'entreprises agréé for the audit of the annual accounts

The objectives of our audit are to obtain reasonable assurance about whether the annual accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue a report of the "réviseur d'entreprises agréé" that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Law of 23 July 2016 and with ISAs as adopted for Luxembourg by the CSSF will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual accounts.

As part of an audit in accordance with the Law of 23 July 2016 and with ISAs as adopted for Luxembourg by the CSSF, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

  • Identify and assess the risks of material misstatement of the annual accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
  • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
  • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.

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Intelsat SA published this content on 23 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 April 2021 20:10:03 UTC.