Orano - Annual Activity Report 2024 330 6 STATEMENTS Consolidated financial statements - financial year ended December 31, 2024 Orano does not consolidate the assets of its earmarked mutual funds line by line, insofar as it does not control them within the meaning of IFRS 10: ● Orano is not involved in the management of the earmarked mutual funds, which are managed by front-ranking independent management companies; ● Orano does not hold voting rights in the mutual funds; ● the mutual funds do not trade directly or indirectly in financial instruments issued by Orano; ● none of the financial investments made by the mutual funds are strategic to Orano; ● Orano receives no benefit and bears no risk other than that normally associated with investments in mutual funds and in proportion to its holding; and ● the management agreements governing termination by Orano restrict this to specific cases (gross negligence, fraud, etc.). This means that Orano cannot replace a fund’s management company at will. Accordingly, the earmarked mutual funds are recorded on a single line in the statement of financial position in an amount corresponding to Orano’s share of their net asset value as of the reporting date. Other than government bonds and the EDF and CEA receivable, resulting from the overfinancing of ANDRA, which are recognized at amortized cost, the entire portfolio of assets earmarked for endof-lifecycle operations is recorded as financial assets at fair value through profit or loss. 1.3.9.4. Loans, advances, and deposits This heading mainly includes loans related to unconsolidated interests, advances for acquisitions of interests, and security deposits. These are valued at amortized cost. Impairment is recognized when the recoverable amount is less than the carrying amount. 1.3.9.5. Trade receivables Trade receivables are recognized using the amortized cost method. Impairment is calculated on the basis of the expected credit loss model. Under this model, 12-month expected credit losses (resulting from the risk of default in the next 12 months) are recorded on issued or purchased instruments at their initial recognition. Full lifetime expected credit losses (resulting from the risk of defaults over the remaining life of the instrument) are recognized when a significant increase in credit risk is recorded after initial recognition or in the case of short-term trade receivables. The group determines the expected loss based on (a) the amount of exposure at default, (b) the associated loss-given-default rate, and (c) the probability of default. 1.3.9.6. Other current financial assets Cash management financial assets include negotiable debt securities with a maturity of more than three months and securities in non-money market funds with a short-term management horizon that can be easily mobilized and do not strictly meet the criteria for classification as cash equivalents under IAS 7. Debt securities are measured using the amortized cost method, and mutual funds at fair value through profit or loss. 1.3.9.7. Cash and cash equivalents Cash includes bank balances and non-trade current accounts with unconsolidated entities. Cash equivalents include risk-free marketable securities with an initial maturity of three months or less, or which may be converted almost immediately into a known amount of cash, and which are subject to negligible risk of change in value as per the criteria set out in IAS 7. They include in particular negotiable debt securities and securities in money market funds in euros that comply with European Regulation (EU) 2017/1131 (known as “MMF”); debt securities are valued using the amortized cost method and mutual funds at fair value through profit or loss. 1.3.9.8. Financial liabilities Borrowings include: ● certain interest-bearing advances received from customers: interest-bearing advances received from customers are classified as borrowings when they are settled in cash, and as contract liabilities in other cases; ● bank borrowings; ● bonds issued by Orano; ● bank overdrafts; and ● liabilities under finance leases. Borrowings are measured at amortized cost based on the effective interest rate method. Bonds hedged with a rate swap (fixed-rate/floating-rate swap) qualified as a fair value hedge are revalued in the same amount as the hedging derivative. 1.3.9.9. Derivatives and hedge accounting The group has adopted the IFRS 9 general hedge accounting model. 1.3.9.9.1. Hedged risks and financial instruments Orano uses derivative instruments to hedge its foreign exchange and interest rate risks. The derivatives used are mainly forward currency contracts, currency and interest rate swaps, inflation swaps and currency options. The hedged risks relate to receivables, liabilities and firm or projected obligations in foreign currencies. 1.3.9.9.2. Recognition of derivatives Derivatives are measured at fair value on initial recognition and subsequently remeasured at the end of each accounting period until settled. Accounting methods for derivatives vary, depending on whether the derivatives are designated as fair value hedging items, cash flow hedges, hedges of net investments in foreign operations, or do not qualify as hedging items.
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