Orano - Annual Activity Report 2024 325 STATEMENTS 6 Consolidated financial statements - financial year ended December 31, 2024 (dismantling of nuclear facilities, waste management and services to nuclear operators), as well as engineering activities (design and implementation of complex projects). The methods used to measure the key indicators of each sector when preparing the internal reporting are identical to those used for the preparation of the consolidated financial statements. As a result, the segment information provided in the tables is presented in accordance with the same accounting principles as those used for the group’s consolidated financial statements. In addition, transactions between operating segments are carried out on an arm’s length basis. EBITDA is equal to operating income restated for net depreciation, amortization, and operating provisions (excluding impairment net of current assets) as well as net gains on the disposal of noncurrent assets, gains and losses on asset leases and effects of takeovers and losses of control. In addition, the calculation of EBITDA is restated to: i) reflect the cash flows related to employee benefits (benefits paid and contribution to hedging assets) in lieu of the service cost recognized; ii) exclude the cost of end-of-lifecycle operations for the group’s nuclear facilities (dismantling, waste retrieval and packaging) carried out during the financial year. Segment assets include “Inventories and work-in-process”, “Receivables (excluding tax)”, and “Non-current assets”, with the exception of “Deferred tax assets” and “Investments in joint ventures and associates.” Orano has adopted centralized management of its tax system and cash management. Therefore, the corresponding statement of financial position and statement of income items are not assigned to business operations. Moreover, information on segment assets and liabilities is not regularly provided to the chief operating decision-maker; the group has nevertheless elected to present the allocatable assets by operating segment on a voluntary basis. Orano also publishes information by region: Orano’s consolidated revenue is broken down between the following five regions by destination of sales: France, Europe (excluding France), Americas, Asia, Africa and Middle East. 1.3.6. Revenue The group operates in the various stages of the fuel cycle, offering the following products and services: ● supply of uranium concentrates (U3O8); ● supply of conversion and enrichment services or UF6 and enriched UF6; ● treatment-recycling services; ● engineering support to the operator and dismantling of nuclear facilities; and ● transportation and warehousing logistics services and solutions, including cask design and manufacturing. Customer contracts and performance obligations Contracts with customers are analyzed to determine the performance requirements that constitute the unit of account for income recognition. Contract price The contract price is the amount of the consideration that Orano expects to receive in exchange for the goods and services transferred. This price includes firm fixed items, as well as variable items in the proportion considered highly likely to be received. Variable items include price revisions potentially resulting from indexation clauses or riders, the potential effects of penalties or discounts, etc. The contract price is adjusted in the event that one of the parties to the contract receives a significant financing advantage from the other party, i.e., when the combination of (i) the time lag between receipt and transfer of control of the goods and services covered by the contract (i.e., revenue recognition) and (ii) the interest rate applicable to an equivalent credit facility has a significant impact on the contract price negotiated by the parties. This adjustment is equivalent to recognizing income on the basis of a transaction price reflecting the price that the customer would have paid for a spot transaction, i.e., net of any items related to the financing terms. The adjustment determined in this manner on the contract price is recognized at the same time as revenue, while the expense or financial income is recognized in proportion to the performance and amortization of the implied credit facility resulting from the terms of payment. The interest rate applied is the marginal financing rate that the party receiving the financing would have obtained from a financial institution by negotiating, on the date of the signature of the contract, a loan whose characteristics are similar to the implied financing granted. Allocation of the contract price to performance obligations The contract price is allocated to each performance obligation based on the proportions of the separate sale prices, generally in line with the contractual terms. Otherwise, the sale price of the performance obligation is calculated on the basis of costs and an expected margin for similar services. Recognition of income associated with each performance obligation Revenue is recognized when the Company transfers control of the goods or services to the customer. In application of this principle, revenue is recognized: ● for concentrate supply contracts: on delivery of uranium concentrates to conversion sites designated by customers; the delivery can be materialized by a physical delivery or by a transfer from the material account held by Orano with the converter to the material account held by the customer with the same converter (“book transfer”); ● for conversion and enrichment contracts: on delivery of the UF6. Delivery may take the form of a physical delivery or a transfer from the material account held by Orano to the material account held by the customer with the fuel enricher or assembler;
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