Orano - Annual Activity Report 2025 72 3 RISK CONTROL AND VIGILANCE PLAN Risk factors Any postponement of these decisions beyond 2026 could be detrimental to the sustainability and renewal programs of the facilities. The agreement reached between the French State and EDF in November 2023 to set up the mechanism that will replace the ARENH (Regulated Access to Historic Nuclear Electricity) on January 1, 2026 has been transcribed into the 2025 Finance Bill (PLF) adopted in February 2025, with the entry into force of the Universal Nuclear Payment (UNV) scheduled for January 1, 2026. EDF and the manufacturers concerned held discussions for the conclusion of medium/long-term contracts for the supply of electricity. It should be noted that French political instability could have negative consequences on the implementation of the ambitious measures provided under PPE3, which was the subject to a public consultation between March and April 2025 but for which the decree has not yet been published. Similarly, France’s public finances pose risks of reduced financial support for the nuclear industry or cuts in aid to businesses. Nevertheless, the group remains exposed to the risk that the energy policies of certain countries could affect the outlook for the nuclear industry as a whole. In Europe, where the group has achieved 68% of its revenue in 2025, the recognition of the contribution of nuclear energy to the achievement of European climate objectives continues to progress in parallel with the confirmation of new nuclear projects in various EU Member States. However, many debates are still underway following the European institutional renewal, in particular on the opening up to nuclear projects of certain financing funds intended for the energy transition. Similarly, with regard to the taxonomy in which certain nuclear activities have been included, Orano remains vigilant about the future possibility of integrating all nuclear fuel cycle activities into it in order to contribute to the improvement of borrowing costs of financing nuclear activities. Information on the application of the European taxonomy to the Orano group’s activities can be found in Section 4.2.1.7 on the 2025 Annual Activity Report. Changes in European policy aimed at limiting or reversing the development of the nuclear industry could reduce the market available to the group and have a downward effect on prices. It should also be noted that, to date, there is no long-term European framework to limit non-OECD market shares in the conversion and enrichment markets. Risk management measures In the European context of increasing security of supply issues, in particular through the diversification of supply sources, Orano is involved with French and European institutions to defend a market organization that would guarantee the viability of existing and future industrial CapEx. A particular effort is being made to explain these risks to French and European authorities and policymakers in order to converge on solutions and a framework for making the investment decisions necessary to develop nuclear power in France and Europe and ensure their energy sovereignty. In addition, in order to guarantee the development of a resilient and competitive European battery industry, Orano is calling for a strengthening of the Union’s regulatory framework, aimed at better protecting Europe from foreign competition and ensuring adequate financial support. Finally, the adoption of the future multi-annual financial framework (2028-2034) represents an opportunity for better access for nuclear power to European funding programs (excluding the Euratom research and training program). Promoting a technologyneutral approach will be key to ensuring that nuclear fission projects, including those relating to the fuel cycle, have access to the new arrangements planned by the Union from 2028 onwards. This approach should also be extended to the lending policy of the European Investment Bank. In this respect, the granting of the loan in March 2025 for the extension of Orano’s Georges Besse II enrichment plant in France is a positive signal. 3.3.1.3 Risks related to the requalification of reusable nuclear materials Description of the risk In the framework of the French National Radioactive Waste and Materials Management Plan (PNGMDR), certain nuclear materials, in particular depleted uranium stocks, could be reclassified as waste. This requalification could have an unfavorable impact on the estimated waste treatment and final storage expenses, requiring an upward revision of the associated provisions as well as the earmarked assets intended to cover them, with a negative impact on the group’s results. Risk management measures Orano defends a position that meets French strategic interests, which is increasingly necessary in a complex geopolitical context: in addition to its possible industrial uses, the stock of depleted uranium plays a role as a strategic uranium reserve for the supply of the nuclear fleet in the event of a supply disruption. Indeed, the group considers these materials to be strategic in that they could be used in the manufacture of nuclear fuel and serve as a strategic reserve of uranium to supply the nuclear fleet in the event of a supply disruption. The treatment of contingent liabilities is disclosed in Section 4.2.4 and Note 34 of the Notes to the consolidated financial statements in Section 6.1 Consolidated financial statements – financial year ended December 31, 2025 . 3.3.2 Risks related to the group’s operations 3.3.2.1 Risks related to sustainability of industrial facilities, workload plans and cost control Description of the risk The obsolescence of production plants and their ability to function in a nominal way and in compliance with the regulatory commitments represents a major challenge for the Orano group. Indeed, if the underperformance of production plants and its aging were not addressed and corrected, the entire French nuclear industry could be disrupted since the group would be unable to meet its commercial obligations in terms of volume, quality and deadlines.
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