NEW DAWN SATELLITE COMPANY LTD

   
      
 

NEW DAWN DISTRIBUTION COMPANY LTD

Board Presentation
20 April 2009
Port Louis, Mauritius

  

Project Related Matters- Tax Matters

The joint venture is now structured to minimize the Mauritius tax paid by the JV while still maintaining the use
of the Mauritius tax treaty network to minimize foreign (non-Mauritius tax risks)

New Dawn Satellite Company applied for and was granted a Category 2 Global Business License in
December 2008

Previously NDSC held a Category 1 Global Business License and was to be subject to a effective
Mauritian tax rate of three percent 

Advantage: NDSC is now a non-resident for Mauritian tax purposes and therefore not subject to tax in
Mauritius;

Estimated savings: Approximately over the 15 year operational life of the JV

New Dawn Distribution Company holds a Category 1 Global Business License (as per the original project
plan)

It will be taxed at an effective rate of three percent 

Since it?s sole activity is the distribution of NDSC capacity, it will earn a return equal to one percent 
resulting in a effective tax rate on sales of 0.03%

Overall the JV will enjoy an effective tax rate on sales of 0.03% or $22,500 on yearly revenue of 

 

10

Project Related Matters- Tax Matters. . .Contd.

New Dawn Organizational Structure
As of March 31, 2009

 

Intelsat New Dawn
Company, Ltd.
(Bermuda)

 

 

 

 

 

 

Convergence SPV

(Mauritius)

 

 

 

 

74.9%

25.1%

 

 

 

New

Dawn

Satellite Company


(Mau

ritius)

 

 

 

 

 

New .

awn

Distn'bution
Company 
Mauritius)

 

 

Category 2
4? Global Business
License

Category 1
Global Business
License

 

11

Appendix

New Dawn Income Statement Projections*

 

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2021 2022 2024 2025

Ku Band Revenue . $0.0 $38.4 $38.4 $38.4 $32.7 $32.7 $33.8 $33.8 $33.1 $33.1 $35.2 $35.2 $35.2 $35.2
Band Revenue . 0.0 22.2 24.9 28.4 30.1 29-6 27.5 28.3 27.7 27-7 27.7 27.7 . 27.7 27.7
Revenues . $0.0 $60.7 $63.3 $66.8 $62.8 $62.3 $61 .3 $62.1 $60.8 $60.8 $62.9 $62.9 $62.9 $62.9

$0.0 

. 0.0 0.0 (3.5) (3.1) (2.6) (2.2) (3.7) (3.3) (2.9) (2.5) (1.6) (1.2) (0.4) 0.0

Operations and maintenar . 0-0 (1.2) (1 .2) (1.2) (1 .2) (1-2) (1.2) (1 .2) (1.2) (1 .2) (1.2) (1.2) (1.2) (1.2)
Lenders Advisers . (0.3) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) 0.0 . 0.0 0.0 . 0.0 0.0
(0.1) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) 0.0 0.0 0.0 0.0 0.0
(0.2) (0.5) (0.5) (0.5) (0.5) (0.5) (0.6) (0.6) (0.6) (0.6) (0.6) (0.6) (0.6) (0.2.5 2.5



 

$56.3 $55.3 $59.1 $55.6 $55.5 $53.0 $54.2 $53.3 $53.7 $54.1 $56.5 $56.9 $57.2 $57.6 $57.9
93% 87% 88% 89% 89% 87% 87% 88% 88% 89% 90% 90% 91% 92% 92%

$0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 
$0.3 $0.5 $0.9 $0.6 $0.6 $0.6 $0.6 $0.2 $0.2 $2.3

$0.0 ($246.6)
$0.00 

 

et Profit After Tax $24.2 $24.4 $28.8 $27.0 $29.8 $30.7 $34.6 $35.6 $36.9 $37.3 $39.7 $40.0 $40.4 $40.7 $41.1 $511.3

 

Per Base Case Financial Model (does not foot to revised revenue projections)

13