Orano - Annual Activity Report 2025 324 6 FINANCIAL STATEMENTS Consolidated financial statements – financial year ended December 31, 2025 1.3.4 Consideration of the effect of foreign currencies The group’s consolidated financial statements are denominated in euros, which is also the functional currency of the group’s parent company. The group has determined the functional currency of each of its subsidiaries based on the economic environment in which it conducts the major part of its operations. In most cases, the functional currency is the local currency. Transactions denominated in foreign currencies Foreign currency-denominated transactions are translated by group companies into their functional currency at the exchange rate prevailing at the transaction date. Monetary assets and liabilities denominated in foreign currencies are revalued at the exchange rate prevailing on the last day of the period; foreign exchange gains and losses are then recognized: ● in operating income when related to commercial transactions (trade receivables, trade payables); ● in net financial income (expense) when they relate to financial transactions (loans or borrowings); ● in currency translation reserves when the group classifies a loan granted to a foreign subsidiary as a “net foreign investment” in the absence of planned repayments and with the intention of incorporating it into capital. Translation of the financial statements of consolidated companies whose functional currency is different from that of the group As part of the consolidation process, assets and liabilities denominated in foreign currencies are translated into euros at the closing rate, and expenses and income are converted at the rate prevailing on the date of the transaction. Currency translation differences are recognized in currency translation differences in “Other items of comprehensive income”. In the event of the disposal of a foreign entity, the share of accumulated currency translation differences relating to this entity is recycled in the statement of income. 1.3.5 Segment information The operating segments selected for the purposes of segment information have been identified on the basis of the internal reporting used by the chief operating decision-maker to allocate resources to the various segments and assess their performance. The group’s chief operating decision-maker is the Executive Management, assisted by the executive committee. The analysis of internal reporting and the specific features of the group’s businesses have led Orano to present the following three operating segments: Mining, Front End and Back End. Information relating to the medical activities and batteries for electric vehicles is presented in “Corporate and other operations”. Mining activities cover exploration (search for new deposits), mining projects (studies and construction of mines), operation (extraction of natural uranium, then chemical concentration into U3O8), and the redevelopment of sites after their operation. Front End activities primarily include the conversion of uranium concentrate (U3O8) to uranium hexafluoride (UF6), followed by the enrichment of UF6 by centrifuge. Lastly, Back End activities include used fuel recycling and plant renewal program, nuclear logistics (cask design and manufacturing, and transportation of nuclear materials and waste), dismantling and services (dismantling of nuclear facilities, waste management and services to nuclear operators), as well as engineering activities (design and implementation of complex projects). The methods used to measure the key indicators of each sector when preparing the internal reporting are identical to those used for the preparation of the consolidated financial statements. As a result, the segment information provided in the tables is presented in accordance with the same accounting principles as those used for the group’s consolidated financial statements. In addition, transactions between operating segments are carried out on an arm’s length basis. EBITDA is equal to operating income restated for net depreciation, amortization, and operating provisions (excluding impairment net of current assets) as well as net gains on the disposal of noncurrent assets, gains and losses on asset leases and effects of takeovers and losses of control. In addition, the calculation of EBITDA is restated to: i) reflect the cash flows related to employee benefits (benefits paid and contribution to hedging assets) in lieu of the service cost recognized; ii) exclude the cost of end-of-lifecycle operations for the group’s nuclear facilities (dismantling, waste retrieval and packaging) carried out during the financial year. Segment assets include “Inventories and work-in-process”, “Receivables (excluding tax)”, and “Non-current assets”, with the exception of “Deferred tax assets” and “Investments in joint ventures and associates.” Orano has adopted centralized management of its tax system and cash management. Therefore, the corresponding statement of financial position and statement of income items are not assigned to business operations. Moreover, information on segment assets and liabilities is not regularly provided to the chief operating decision-maker; the group has nevertheless elected to present the allocatable assets by operating segment on a voluntary basis. Orano also publishes information by region: Orano’s consolidated revenue is broken down between the following five regions by destination of sales: France, Europe (excluding France), Americas, Asia, Africa and Middle East. 1.3.6 Revenue The group operates in the various stages of the fuel cycle, offering the following products and services: ● supply of uranium concentrates (U3O8); ● supply of conversion and enrichment services or UF6 and enriched UF6;
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