Orano - Annual Activity Report 2025 331 FINANCIAL STATEMENTS 6 Consolidated financial statements – financial year ended December 31, 2025 Presentation in the statement of income The revaluation of derivatives and hedged items relating to commercial transactions affecting the income statement is recognized under “Other operating income and expense”, except for the component corresponding to the discount/premium, which is recognized in net financial income. For loans and borrowings denominated in foreign currencies, the revaluation of financial hedging instruments and hedged items affecting the statement of income is recognized in net financial income. 1.3.9.10 Derecognition of financial assets and liabilities The group derecognizes a financial asset when: ● the contractual rights to the cash flows generated by the asset expire; or ● the group has transferred the rights to receive the contractual cash flows related to the financial asset as a result of the transfer of substantially all the risks and rewards of ownership of said asset. The group derecognizes a financial liability when its contractual obligations are extinguished, when they are canceled or when they expire. 1.3.10 Employee benefits Pension, early retirement, severance pay, medical insurance, long-service awards, accident and disability insurance, and other related commitments, whether for active or retired personnel, are recognized pursuant to IAS 19 as amended. The benefits provided under post-employment benefits can be distinguished according to whether the level of benefits depends on (i) contributions made by the employee (“defined-contribution” plans) or (ii) a level of benefit defined by the Company (“definedbenefit” plans). In the case of defined-contribution plans, the group’s payments are recognized as expenses for the period to which they relate. For defined-benefit plans, benefit costs are estimated using the projected credit unit method: under this method, accrued pension benefits are allocated among service periods based on the plan vesting formula. For the calculation of retirement benefits, the capping of rights provided for in collective agreements is taken into account in the recognition of commitments. The amount of future benefit payments to employees is determined on the basis of actuarial assumptions (change in wages, retirement age, probability of payment, turnover rate and mortality rate). These future payments are reduced to their present value using a discount rate determined according to the rates of corporate bonds with a maturity equivalent to that of the Company’s corporate liabilities, issued by prime corporate borrowers. The group has built up financial assets with an insurer to cover the expenses of defined-benefit plans. The recognition of hedging assets is recorded as a counterpart to the cash paid to the insurer. The amount of employee benefits results from the valuation of the commitments less the fair value of the assets intended to be hedged. Remeasurements of the net liability for defined-benefit obligations (change in the obligation and financial assets due to changes in assumptions and experience differences) are recognized in “Other items of comprehensive income”; they cannot be reclassified to the income statement. In contrast, actuarial gains and losses relating to benefits for currently employed employees (e.g. long-service awards) are recognized in the statement of income under “Other operating income and expenses.” The costs relating to employee benefits (pensions and other similar benefits) are split into two categories: ● the discounting reversal expense for the provision, net of the expected yield on assets earmarked for retirement plans, is charged to net financial income (expense); the expected yield on the assets is calculated using the same interest rate used to discount the provision; ● the expense corresponding to the cost of the services rendered is divided between the different operating expense items by purpose: the costs of products and services sold, Research and Development expenses, sales and marketing expenses, administrative expenses. Past service costs, including the expense or income related to plan amendments/settlements or the introduction of new plans are recognized in the income statement under “Other operating income and expenses.” 1.3.11 Provisions related to operating activities In accordance with IAS 37, a provision is recognized when there is a present legal obligation, contractual or constructive, resulting from a past event, the termination of which is likely to result in an outflow of resources for the entity without any counterparty expected after the reporting date. A reasonably reliable estimate of this net outflow must be determined in order to recognize a provision. When the outflow of resources is expected to occur in more than two years, provisions are discounted to net present value if the impact of discounting is material. Provisions for work yet to be carried out Provisions for contract completion cover a series of future expenses to be incurred on the la Hague and Melox (Back End segment), Tricastin and Malvési (Front End segment) sites for waste treatment and other activities resulting from the operating cycle. For the Back End segment, the work mainly covers the warehousing, treatment, packaging, transportation and storage of technological and process waste, and, for the Front End segment, nitrate effluent and dust treatment and packaging. Furthermore, the group holds nuclear materials in various physical or chemical forms that may require specific treatments to make them marketable. The group assesses the need to establish a provision on a case-by-case basis, based on (i) existing obligations at year-end, (ii) the existence and availability of treatment facilities
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