Orano - Annual Activity Report 2024 322 6 STATEMENTS Consolidated financial statements - financial year ended December 31, 2024 electric vehicles. These joint ventures, called Neomat CAM and Neomat PCAM, will be responsible for the construction of plants for the manufacture of cathode active materials (CAMs) and the production of precursor CAMs, respectively, on the site allocated by the Grand Port Maritime de Dunkerque in the municipalities of Gravelines and Loon-Plage. This stage of the project is part of the public inquiry process expected in the spring of 2025, and the securing of the backlog for the future facility with gigafactories located in Europe, prior to potential future investment decisions. At the same time and independently of the withdrawal on September 25, 2024 of the memorandum of understanding signed in October 2023 with Stellantis, Orano is continuing studies on its project to recycle materials contained in electric vehicle batteries in order to reuse them in new components. This project is based on an innovative process, currently being tested, developed at the Innovation Center for Extractive Metallurgy (CIME) at the Orano site in Bessines-sur-Gartempe (Nouvelle-Aquitaine). Extension of the production capacity of the Georges Besse II enrichment plant On October 10, 2024, Orano celebrated the laying of the foundation stone of the extension at the Georges Besse II plant on the Tricastin site (Drôme and Vaucluse). Approved by the Board of Directors on October 19, 2023, this investment, for a provisional amount of nearly 1.75 billion euros, will enable Orano to increase its production capacity by more than 30%, equal to 2.5 million Separation Work Units (“SWUs”). This capacity extension meets the demands of utility customers to strengthen their security of supply, thanks to a first production scheduled for 2028 and full commissioning in 2030. Future of Treatment and Recycling beyond 2040 The Nuclear Policy Council (CPN or Conseil de politique nucléaire in French), meeting of February 26, 2024, chaired by the President of the French Republic, approved the main guidelines of the French policy for the back end of the cycle, heralding the prospect of significant investments in the la Hague site. In order to continue the treatment recycling strategy beyond 2040, a sustainability/ resilience program will define the conditions for the extension of existing plants and the launch of studies for new plants. On October 17, 2024, the Chairman of the French Authority for nuclear safety and radiation protection visited the la Hague site and discussed the plant’s challenges with a presentation of the industrial master plan for the Back End of the Future program and the sustainability / resilience program. Capital increase of Orano SA subscribed by the French State The Board of Directors of Orano SA, on October 24, 2024, duly noted the completion of a capital increase with preemptive subscription rights for a total amount of 299,999,952 euros, through the creation and issue of 9,146,340 new ordinary shares with a par value of 0.50 euros each and an issue premium of 32.30 euros per share. This transaction, decided by the General Meeting of October 9, 2024, was fully subscribed and paid up in cash by the French State. Following its completion, Orano SA is 90.33% owned by the French State and JNFL and MHI each have a 4.83% stake (see Note 22). Financing As part of its EMTN program and the refinancing of its debt, on March 12, 2024, Orano carried out a bond issue for an amount of 500 million euros with a 7-year maturity (maturing March 2031) with an annual coupon of 4.00% (yield of 4.086% at issue) (see Note 26). 1.2 Estimates and judgments In preparing its consolidated financial statements, Orano must make estimates, assumptions and judgments impacting the carrying amount of certain assets and liabilities, income and expense items, or information disclosed in certain notes to the financial statements. Orano updates its estimates and judgments on a regular basis to reflect past experience and other factors deemed pertinent, based on economic conditions. As a function of changes in these assumptions or in circumstances, the amounts appearing in its future financial statements may differ from current estimates, particularly in the following areas: ● operating margins on contracts recognized according to the percentage of completion method, which are estimated by the project teams and reviewed by management in accordance with the group’s procedures (see Notes 1.3.6 and 25); ● cash flow forecasts and the discount and growth rates used for impairment tests for goodwill and other property, plant and equipment and intangible assets (see Notes 1.3.7.5, 9, 10 and 11); ● all assumptions used to assess the value of pension commitments and other employee benefits, particularly future payroll increases and discount rates, retirement age and employee turnover (see Notes 1.3.10 and 24); ● all assumptions used to measure provisions for end-of-lifecycle operations (see Notes 1.3.12 and 13) and, where appropriate, the assets corresponding to the share financed by third parties, in particular: ● the estimated costs of those operations, ● inflation and discount rates, ● the schedule of future disbursements, ● operating life of the facilities, ● the scenario chosen with regard to knowledge of the initial condition of the facilities, their target fi nal condition, and waste treatment and removal methods and their availability, ● the procedures for fi nal shutdown, ● safety requirements and regulatory developments; ● assumptions used to measure the existence of provisions or contingent liabilities for nuclear materials belonging to the group: the estimated costs of those operations, the provisional payment schedule, the inflation rate and the discount rate (see Notes 1.3.11 and 25); ● estimates and judgments regarding the outcome of disputes in progress and, more generally, estimates regarding all of the provisions and contingent liabilities of Orano (see Notes 1.3.11 and 25); ● estimates and judgments relative to the recoverability of accounts receivable from the group’s customers and other financial assets (see Notes 1.3.6 and 1.3.9.5); and ● estimates of future taxable income allowing the recognition of deferred tax assets (see Notes 1.3.13 and 8).
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