Orano - Annual Activity Report 2024 354 6 STATEMENTS Consolidated financial statements - financial year ended December 31, 2024 Objective of earmarked assets, portfolio of earmarked securities and end-of-lifecycle receivables To secure the funding of end-of-lifecycle obligations, the group has built up a special portfolio earmarked for the payment of its future facility dismantling and waste management expenses. This obligation has applied to all nuclear operators in France since law No. 2006-739 of June 28, 2006, and implementing decree No. 2007-243 of February 23, 2007, came into force. This portfolio was composed based on a schedule of disbursements over more than a century and is therefore managed with long-term objectives. The portfolio is comprised of financial assets intended to cover all of the group’s commitments, whether related to obligations imposed by the law of June 28, 2006, for regulated nuclear facilities located in France, or related to other end-of-lifecycle commitments for facilities located in France. The group relies on independent consultants to study strategic target asset allocations to optimize the risk/return of the portfolio over the long term and to advise it on the choice of asset classes and portfolio managers. This work is presented to the End-of-Lifecycle Obligations Monitoring Committee of the Board of Directors. Long-term asset allocations indicate the target percentage of assets to cover liabilities (bonds and money market assets, including receivables from third parties) and diversification assets (shares, etc.), subject to limits imposed by decree No. 2007-243 of February 23, 2007 and its amendment by decree No. 2013-678 of July 24, 2013, both in terms of the control and spread of risks and in terms of the type of investments. In December 2024, Orano contributed 102 million euros to the dismantling funds, a portion of which in respect of end-of-lifecycle commitments resulting from the signature of contracts with Japanese customers as part of the waste return operation. At December 31, 2024, for the end-of-lifecycle obligations falling within the scope of Articles L. 594-1 et seq. of the French Environmental Code, the legal entities comprising Orano had earmarked assets representing 97.0% of end-of-lifecycle liabilities (compared with 100.2% at December 31, 2023) in accordance with regulatory requirements. This coverage ratio is determined as follows: (in millions of euros) December 31, 2024 December 31, 2023 Provisions for end-of-lifecycle operations (regulated *) 8,708 8,156 Dismantling assets – third-party share (regulated *) 70 80 Earmarked hedging financial assets at market value (regulated *) 8,376 8,091 End-of-lifecycle assets (regulated *) 8,446 8,171 (Deficit)/Surplus in coverage (regulated *) (262) 16 Coverage ratio of end-of-lifecycle operations (regulated *) 97.0% 100.2% * Scope of application of the French law of June 28, 2006. Since the decree of July 1, 2020, the regulatory ceiling for discount rates for end-of-lifecycle liabilities has been expressed in real terms (net of long-term inflation) and stood at 2.72% at December 31, 2024. The discount rate used is lower than the regulatory ceiling discount rate (in real terms). Portfolio of earmarked securities Orano has ensured that all funds are kept, deposited and valued by a service provider in such a way as to be able to perform the necessary controls and valuations required by the implementing decree. The Equity segment is primarily managed by external service providers via: ● equity management mandates; and ● earmarked mutual funds. The Fixed-income segment (bonds and money market) is invested via: ● open-ended mutual funds; ● earmarked mutual funds; and ● directly held bonds. The portfolio of assets earmarked to fund end-of-lifecycle expenses includes the following: (in millions of euros) December 31, 2024 December 31, 2023 IN MARKET VALUE OR NET ASSET VALUE Equity mutual funds and publicly traded shares 3,060 3,187 Bond and money market mutual funds 3,079 2,637 Unlisted mutual funds 1,230 1,140 AT AMORTIZED COST Bonds and bond funds 995 1,005 Total portfolio of earmarked securities 8,363 7,968 Receivables related to end-of-lifecycle operations 16 118 TOTAL FINANCIAL ASSETS EARMARKED FOR END-OF-LIFECYCLE 8,379 8,086
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