Orano - Annual Activity Report 2024 351 STATEMENTS 6 Consolidated financial statements - financial year ended December 31, 2024 At December 31, 2024, used provisions in the amount of 322 million euros correspond to expenses incurred by the group in relation to end-of-lifecycle operations. Revisions to estimates for 240 million euros include charges and reversals relating to: ● the dismantling of facilities in operation for 81 million euros, including the commissioning of new fission product concentrators (NCPF) for 47 million euros (offset by dismantling assets, attributable to owners of the parent [see Note 11]); ● the dismantling of decommissioned facilities and WRP and long-term waste management operations for 158 million euros, of which 61 million euros financed by commercial contracts (offset by operating income). The other changes amounting to 231 million euros are due to changes in financial assumptions over the 2024 financial year. The changes in financial assumptions are offset by the following: ● a financial expense of 109 million euros related to decommissioned facilities (see Note 7); ● an increase in dismantling assets attributable to owners of the parent, for 121 million euros in respect of facilities in operation (see Note 11); and ● an increase in third-party dismantling assets for 1 million euros in respect of facilities in operation. Nature of the commitments As a nuclear facility operator, the group has a legal obligation to secure and dismantle its production facilities when they are shut down, in whole or in part, on a permanent basis. It must also retrieve and package in accordance with prevailing standards certain legacy waste as well as the waste resulting from operating and dismantling activities. Furthermore, the group must assume financial obligations to monitor storage sites after their closure. In December 2004, the CEA, EDF and Orano signed an agreement concerning the Marcoule site, which transfers the responsibilities of site owner-operator to the CEA, which will be responsible for funding the dismantling of the site facilities. This agreement does not cover shipping and final storage costs for high and mediumlevel long-lived waste (HL-LLW/ML-LLW). Accordingly, provisions for the Marcoule site only cover Orano’s share of waste shipping and final waste storage costs. For all the facilities within the regulated scope and those outside the regulated scope, Orano uses the same methods to assess both the cost of end-of-lifecycle operations and expenses related to disposal and storage of radioactive waste. In accordance with Article 20 of French planning law No. 2006-739 of June 28, 2006 on the sustainable management of radioactive materials and waste, codified in Articles L. 594-1 et seq. of the French Environmental Code, Orano submits a report on INBs to the administrative authority every three years setting out cost estimates and calculation methods for end-of-lifecycle provisions, as well as an annual update of this report. Measurement of provisions for dismantling and waste retrieval and packaging operations (WRP) The costing of facility dismantling and WRP operations is based on methodologies and scenarios describing the nature and timing of the planned operations. The estimate is based on a parametric approach for facilities in operation (costing resulting from the inventory of the facility: volume of materials, equipment, etc.) NOTE 13 END-OF-LIFECYCLE OPERATIONS Provisions for end-of-lifecycle operations (in millions of euros) Net carrying amount at December 31, 2023 Reversal used Third-party expenses Revisions to estimates Accretion Other changes Net carrying amount at December 31, 2024 Provisions for dismantling 5,241 (169) (15) 182 255 97 5,591 Provisions for waste retrieval and packaging 1,395 (112) - 33 71 63 1,450 Provision for long-term waste management (transport & storage) 1,454 (14) - 29 72 55 1,595 Monitoring costs after closure of storage facilities 66 (1) - - 3 4 72 Provisions for end-of-lifecycle operations (regulated *) 8,156 (297) (15) 244 401 219 8,708 Provisions for end-of-lifecycle operations (non-regulated *) 352 (25) (1) (4) 17 11 351 PROVISIONS FOR END-OF-LIFECYCLE OPERATIONS 8,508 (322) (16) 240 418 231 9,059 * Scope of application of the French law of June 28, 2006.
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