Orano - Annual Activity Report 2024 347 STATEMENTS 6 Consolidated financial statements - financial year ended December 31, 2024 The following assumptions were used to determine the net present value of the estimated future cash flows of the CGUs or groups of CGUs: At December 31, 2024 Discount rate after tax Growth rate standard year Standard year Mining 8.0% - 9.75% n/a n/a Front End 7.75% n/a n/a Back End 7.75% - 8.75% 1.5% 2040 At December 31, 2023 Discount rate after tax Growth rate standard year Standard year Mining 8.0% - 12.5% n/a n/a Front End 8.0% n/a n/a Back End 7.5% - 9% 1.5% 2040 n/a: not applicable. The exchange rates used to prepare these impairment tests are the rates in force at the reporting date or the hedging rates when the future cash flows were hedged. Mining The recoverable amount of the group of CGUs of the Mines BU is determined based on its value in use. The value in use of mining operations is calculated based on forecast data for the entire period, up to the planned end of mining operations at existing mines (Canada, Kazakhstan and Niger) and the commercialization of the corresponding products (i.e., no later than 2041), rather than on a standard year. This value in use is determined by discounting estimated future cash flows per mine at rates of between 8.00% and 9.75% (between 8.00% and 12.50% at December 31, 2023) and based on the exchange rates at December 31, 2024. Future cash flows are determined using the contractually set prices for the fixed component of the backlog and, for the variable component, the market prices based on the forecast price curve prepared by Orano. The forecast price curve is also used for the portion of sales not yet covered by a contract. The price curve is based among other things on Orano’s vision of changes in supply (uranium mines and secondary resources) and demand (reflecting the consumption of the global fleet of nuclear power plants over the length of the curve and the purchasing policy of the relevant utilities). The value in use determined in this manner is greater than the net carrying amount of the group’s Mining CGU assets, and therefore does not result in any impairment of goodwill. The result of the test excludes the Niger scope, which is no longer consolidated (see Note 1.1). The valuation remains sensitive to discount rates, to foreign exchange parity and to the anticipated future prices of uranium. The impacts of using discount rates 50 basis points higher, a euro/ US dollar exchange rate 5 cents higher, or selling price assumptions 5 US dollars per pound of uranium lower compared to the forecast price curves prepared by Orano over the entire period of the business plans, taken individually or together, would not result in any impairment of the goodwill allocated to the group of CGUs of the Mines BU. The sales price assumption sensitivity analysis was carried out without taking into account a revision of economically mineable uranium quantities or production schedules resulting from this price change. Front End In the Front End segment, goodwill is carried by the Enrichment CGU. The recoverable amount of the CGU is determined from the value in use, calculated using forecast data for the entire period up to the planned end of the operation of industrial assets, without using a normative year. This value in use is determined by discounting estimated future cash flows at a rate of 7.75% (8% at December 31, 2023) and on the basis of a euro/US dollar exchange rate of 1.04, corresponding to the closing rate at December 31, 2024 (1.11 at December 31, 2023). Future cash flows are determined using the contractually set prices for the fixed component of the backlog and, for the variable component, the market prices based on the forecast price curve prepared and updated by Orano. The forecast price curve is also used for the portion of sales not yet covered by a contract. The price curve is based among other things on Orano’s vision of changes in supply (enrichment capacities, secondary stocks, and resources) and demand for enriched uranium (reflecting the consumption of the global fleet of nuclear power plants over the length of the curve and the purchasing policy of the relevant utilities). The valuation remains sensitive to discount rates, to foreign exchange parity and to the anticipated future prices of the SWUs. The impacts of using discount rates 50 basis points higher, a euro/ US dollar exchange rate 5 cents higher, or sales price assumptions 5 US dollars per SWU lower than the forecast price curves prepared by Orano over the entire period of the business plans, taken individually or together, would not result in any impairment of the goodwill allocated to the group of Enrichment CGUs.
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