Orano - Annual Activity Report 2025 384 6 FINANCIAL STATEMENTS Statutory Auditors’ report on the consolidated financial statements for the financial year ended December 31, 2025 For the Group’s Front End activities, these tests are implemented in the following manner, as described in Notes 9 “Goodwill”, 10 “Intangible assets”, 11 “Property, plant and equipment” and 31 “Challenges related to climate risks” to the consolidated financial statements: ● a distinction should be made between the Enrichment activity corresponding to a single CGU and including goodwill in the amount of 161 millions euro and intangible assets and property, plant and equipment, and the other activities to which no goodwill is allocated; ● the property, plant and equipment and intangible assets related to these activities are tested at the level of each CGU and are tested for impairment whenever there is an indication of a loss or increase in value. The impairment tests of assets relating to the Group’s Front End activities are based on the estimate of the recoverable amount corresponding to the higher of: ● fair value less costs to sell; this fair value is based on observable data (recent transactions, offers received from potential buyers, reported ratios for comparable companies); and ● value in use, which is equal to the present value of projected future cash flows. The future cash flow projections established for these tests are based on fundamental assumptions and estimates such as: ● assumptions as to the price of conversion and enrichment based on the prices in the order book and derived from projected curves based on the Group’s view of the trends in supply and demand and for conversion and enrichment services; ● forecast production and cost data; ● discount rates applied to future cash flows. We deemed the measurement of goodwill, intangible assets and property, plant and equipment related to the Front End activities to be a key audit matter due to: ● the potentially significant impact of impairment tests on the income statement; ● uncertainties surrounding certain assumptions, particularly those that could be impacted by exogenous factors (conversion and enrichment prices, exchange rates and market environments); ● the high sensitivity of measurements to operating, macroeconomic, sectoral and financial assumptions; ● the high degree of judgment required by management with respect to these estimates and assessments. How our audit addressed this risk We assessed the methodology’s compliance with the applicable accounting standards and gained an understanding of the methods used to carry out impairment tests. In particular, we assessed the methods used to determine the groups of CGUs as well as the level at which goodwill is tested. For all impairment tests we: ● gained an understanding of indications of a loss or increase in value; ● assessed the consistency of the forecast data used in the impairment tests with the budget and medium-term plan (“financial projections”) prepared by management and approved by the Board of Directors; ● assessed the consistency of the cash flow projections with the information sources available to us (order books, operational life of assets, etc.) and with past outcomes; ● assessed, with the help of our experts, the reasonableness of the measurement inputs used (discount rate); ● reconciled the carrying amount of the net economic assets tested with the underlying accounting items; ● critically examined the sensitivity tests carried out by management, particularly assumptions regarding selling prices, exchange rates (especially the euro/dollar exchange rate) and the discount rate. More specifically, ● with regard to assumptions of conversion and enrichment prices, we: ● confirmed, using sampling techniques, the consistency of current prices, used as a benchmark, with contractual data derived from the fi xed component of the backlog, ● gained an understanding of the analyses prepared by the Group or external experts to construct projected price curves, ● compared the assumptions used to construct these projected curves with the available market data, ● analyzed the changes in the prices used compared to those of the previous year; ● For the Conversion activities, we assessed the criteria used by management to justify the existence of indications of a change in value requiring an impairment test. Lastly, we assessed the appropriateness of the disclosures provided in Notes 1.3.7.5 “Impairment of property, plant and equipment, intangible assets and goodwill”, 9 “Goodwill”, 10 “Intangible Assets”, 11 “Property, plant and equipment” and 31 “Challenges related to climate risks” to the consolidated financial statements. Recognition of revenue and margin on treatment-recycling contracts Description of risk As indicated in Note 1.3.6 to the consolidated financial statements, the Group operates in the different stages of the fuel cycle, by offering treatment-recycling services in respect of which revenue is recognized according to the degree of completion of the services provided. The Group is committed by a master agreement with the French utility group EDF (the “ATR Contract”) which specifies the terms of industrial cooperation with regard to treatment-recycling up to 2040. As part of this agreement, Orano and EDF signed an implementation contract on October 1, 2024 defining the technical and financial conditions for the transportation and treatmentrecycling of EDF’s spent fuel for the period 2024-2026. The period from January 1 to September 30, 2024 was covered by two
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