Orano - Annual Activity Report 2024 411 FINANCIAL STATEMENTS 6 Company financial statements - financial year ended December 31, 2024 At December 31, 2024, the derivatives used by Orano SA to hedge foreign exchange risk were as follows: (in millions of euros) Notional amounts by maturity date at December 31, 2024 <1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years >5 years Total Market value Forward exchange transactions and currency swaps 1,691 1,242 787 539 252 - 4,510 (170) Cross-currency swaps 67 100 100 134 - - 401 16 TOTAL 1,758 1,342 887 673 252 - 4,912 (154) Interest rate risk Orano SA is exposed to interest rate fluctuations mainly on its floating-rate borrowings and on its financial investments. The Financial Operations and Treasury Management Department manages all interest rate risks. Orano SA uses several types of derivatives, depending on market conditions, to allocate its borrowings and investments between fixed rates and floating rates, with the goal being mainly to reduce its borrowing costs while optimizing the management of its cash surpluses. At December 31, 2024, interest rate swaps were the main financial instruments used in the management of external debt. The amount of the commitments and the sensitivity of the positions taken by the Orano SA Trading Desk in connection with rate management are subject to limits based on the type of transaction involved. At December 31, 2024, the following financial instruments were used to hedge interest rate exposure: INTEREST RATE INSTRUMENTS (in millions of euros) TOTAL Notional amounts by maturity date at December 31, 2024 Market value <1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years >5 years INTEREST RATE TRANSACTIONS EUR variable payer / EUR fixed receiver 100 - 100 - - - - (2) CAD variable payer / EUR variable receiver 401 67 100 100 134 - - 16 GRAND TOTAL 501 67 200 100 134 - - 14 Commodity risk Orano SA had no exposure to commodity risk at December 31, 2024. Counterparty risk Orano SA is exposed to the credit risk of counterparties linked to its use of derivatives to cover its risks. Orano SA uses different types of derivatives to manage its exposure to foreign exchange and interest rate risks. Orano SA primarily uses forward currency purchases and sales, and interest rate derivatives (such as swaps, futures and options) to cover these types of risk. These transactions expose Orano SA to counterparty risk when the contracts are concluded over the counter. To minimize this risk, Orano SA’s Financial Operations and Treasury Management Department deals with diversified, leading counterparties selected on the basis of their ratings by Standard & Poor’s and Moody’s, with a minimum rating of Investment Grade. A legal framework agreement is always signed with these counterparties. The limits allowed for each counterparty are determined based on its rating and the type and maturity of the instruments traded. Assuming the rating of the counterparty is not downgraded, the limits are reviewed at least once a year and approved by the Chief Financial Officer. The limits are verified in a specific report produced by the internal control teams of the Treasury Management Department. During periods of significant financial instability that may involve an increased risk of bank default, which may be underestimated by ratings agencies, Orano SA monitors advanced indicators such as the value of the credit default swaps (CDS) of eligible counterparties to determine whether the limits should be adjusted. When conditions warrant (rising counterparty risk, longer or shorter term transactions, etc.), market transactions are managed by monthly margin calls that reduce Orano SA’s counterparty exposure to a predetermined threshold: the Credit Support Annex for trades documented under an ISDA master agreement, or the Collateral Annex for trades documented under a French Banking Federation (FBF) master agreement. The Financial Operations and Treasury Management Department hedges these exposures directly with its banking counterparties. A system of strict limits, particularly concerning results, marked to market, and foreign exchange positions that may be taken by the Orano SA Trading Desk, is monitored daily by specialized teams that are also charged with the valuation of the transactions. In addition, analyses of sensitivity to changes in exchange rates are periodically performed.
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