Orano - Annual Activity Report 2025 75 RISK CONTROL AND VIGILANCE PLAN 3 Risk factors still considered to be reusable (see also Section 3.3.1.3 Risks related to the requalification of reusable nuclear materials); and ● technical and financial uncertainties in radioactive waste management processes that may lead to delays and a drift in project implementation costs (treatment and packaging, transport and storage costs), particularly for waste that does not yet have a definitive channel. The main risk for the group is related to the uncertainty that the amounts provisioned for end-of-lifecycle operations will correspond to the costs actually incurred by the group in respect of its decommissioning obligations. It is therefore possible that end-of-lifecycle obligations and the associated expenses, or an additional obligation of a nuclear or environmental nature that the group may subsequently have to bear, could have a significant negative impact on its financial position. Risk management measures In accordance with the provisions of Article D. 594-10 of the French Environmental Code, created by French Decree No. 2020830 of July 1, 2020, relating to securing the financing of nuclear expenses, the group carries out and documents an internal risk assessment at least every three years and whenever there is any significant change in the risk profile relating to securing the financing of nuclear expenses. End-of-lifecycle costs or liabilities are quantified in two principal ways, depending on the lifecycle phase of the nuclear facility. The first is to evaluate the future costs before the INB is put into service, while the second is to draw up an operating estimate at the start of the project phase of the decommissioning operations. These figures also include the evaluation of margins for risks and contingencies, which are included in Orano’s provisions for endof-lifecycle expenses. Section 4.2.5.3 details the actions to recover radioactive materials. 3.3.2.4 Risks associated with uranium reserves and resources Description of the risk The estimates of the group’s resources and calculations of its reserves are based on internal work by the Mining Business Unit or from external reports audited by the business’ internal experts. Estimates of mineral resources and calculations of mining reserves are carried out in accordance with the international standards, recognized by CRIRSCO (Committee for Mineral Reserves International Reporting Standards) in terms of reporting. The evaluation of uranium reserves and resources is subject to an annual review according to changes in geological assumptions (prepared in particular from geological surveys), valuation methods, new technologies and/or economic conditions. Operating experience feedback, if it leads to additional elements such as geological changes not perceived during the estimation stage, is also taken into consideration. For example, fluctuations in uranium prices, rising production costs, declining extraction rates and plant yields can all have an impact on the profitability of reserves, requiring them to be adjusted. These elements may have a negative impact on the group’s estimates which could in turn impact the group’s results. The mineral resources and reserves of the Orano deposits are detailed in Section 2.3.1 Mines of the 2025 Annual Activity Report. Risk management measures To mitigate these risks, a resources and reserves committee, which includes two experts external to the group and reports to the Orano group’s Executive Management, is tasked with approving the schedule for updating resources and reserves, validating the resources and reserves reported by Orano each year, and ensuring that the means, organization, and internal and external estimating methods enable a comprehensive and objective estimate of resources and reserves, in accordance with international practices. 3.3.2.5 Risks related to the impact of climate change on our facilities and activities Description of the risk Orano has industrial sites in France and abroad and its activities are based on logistics flows and global supply chains. As such, the group is exposed to a growing number of extreme events due to climate change likely to affect the safety of facilities (natural disasters, pandemic, etc.), as well as to risks of chronic disruptions, more or less slow and gradual (rise in sea and ocean levels, heat waves, strong winds, etc.). For example, the increase in extreme temperature events and heavy rainfall, particularly in the Mediterranean region, may lead to the risk of a drop in production or temporary shutdowns (at sites in the south of France, in particular), difficulties in cooling certain facilities identified, and an increased risk of a violent Mediterranean event with flooding and damage to the effluent basins of the establishments concerned. Based on the group’s studies on the resilience of facilities to climate change and the CapEx planned in climate change adaptation plans, there appears to be a moderate risk of a slowdown or temporary shutdown of fuel cycle or mining facilities, as well as a risk of disruption to logistics flows. Risk management measures In order to assess the regional trends for the coming decades, the group monitors forecasts of expected future climate hazards (temperature, precipitation, etc.) applied to the group’s main industrial sites in France and abroad, logistics flows and supply chains. These forecasts are made on the basis of climate models available according to the scenarios of the Intergovernmental Panel on Climate Change (IPCC), in particular RCP 4.5 and 8.5, the most pessimistic scenario. The meteorological data of the sites are also analyzed, in order to assess the trend observed over the last 20 years.
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