Orano - Annual Activity Report 2024 355 STATEMENTS 6 Consolidated financial statements - financial year ended December 31, 2024 (in millions of euros) December 31, 2024 December 31, 2023 BY REGION Eurozone 6,234 5,992 Other 2,145 2,094 TOTAL FINANCIAL ASSETS EARMARKED FOR END-OF-LIFECYCLE 8,379 8,086 Financial assets held as securities or mutual funds represent 99.8% of all hedging assets at December 31, 2024. They break down as follows: 51.2% equities and other non-amortizable equity securities, 48.6% bonds and money market securities and 0.2% receivables. Performance of financial assets earmarked for end-of-lifecycle obligations by asset class Asset class December 31, 2024 December 31, 2023 Shares 8.2% 11.9% Fixed-income products (including receivables related to end-of-lifecycle operations) 3.6% 8.0% TOTAL FINANCIAL ASSETS EARMARKED FOR END-OF-LIFECYCLE 6.1% 9.9% Receivables related to end-of-lifecycle operations Receivables related to end-of-lifecycle operations correspond to an EDF and CEA receivable, resulting from the overfinancing of Andra by Orano between 1983 and 1999 (payment by Orano of contributions divided between nuclear operators above its share) in the amount of 16 million euros. Risk description and assessment Equity investments in the portfolio of earmarked securities include mainly: ● mandates of publicly traded shares, which includes about 50 companies based in the European Union. The securities are held in order to generate gains over the long term. Although it is not a management guideline, these mandates will be assessed over the long term compared to an external MSCI EMU benchmark, net dividends reinvested; and ● dedicated equity funds with diversified management strategies and focused on European companies. Depending on the investment objective, the managers are required to comply with specific rules in terms of exposure: investment limits in absolute terms and relative to net assets, limited exposure in non-euro currencies, indication of a relative risk compared to a target benchmark index (Tracking Error) and limited investments on certain instruments. Together, these limits are designed to comply with investment rules established by the implementing decree of the law of June 28, 2006. Fixed income products in the portfolio of earmarked securities mainly include: ● directly-held securities consisting of Eurozone government bonds, which will be held to maturity and their redemption. They are recognized using the amortized cost method; and ● dedicated bond funds, listed bonds and open-ended money market funds. The sensitivity to interest rates of bond funds is limited in both directions, including the portfolio’s overall consistency with preset long-term sensitivity objectives and the sensitivity of the liabilities to the discount rate used. The issuers’ ratings (Moody’s or Standard & Poor’s) are used to manage the credit risk exposure of money market and bond funds and listed bonds. Derivatives may be used for hedging or to acquire a limited exposure. They are subject to specific investment guidelines prohibiting leverage. Total nominal commitments may not exceed the fund’s net assets. Sales of puts and calls on underlying assets not included in which the bond fund has not invested or not covered by the investment are prohibited. Risk assessment and management of the earmarked portfolio As part of the mandate to conserve and enhance the funds dedicated to dismantling, the risks underlying the portfolios and funds are assessed on a regular basis. For each fund or earmarked asset, this assessment allows the maximum total loss to be estimated with a 95% degree of confidence for different portfolio maturities using the VaR (Value at Risk) method and volatility estimates. It provides a second estimate using deterministic scenarios: yield curve shock and/or equity market decline.
RkJQdWJsaXNoZXIy NzMxNTcx