Orano - Annual Activity Report 2024 71 RISKS, CONTROL AND DUTY OF VIGILANCE PLAN 3 Risk factors following the European institutional renewal, in particular on the opening up to nuclear projects of certain financing funds intended for the energy transition. Similarly, with regard to the taxonomy in which certain nuclear activities have been included, Orano remains vigilant about the future possibility of integrating all nuclear fuel cycle activities into it in order to contribute to the improvement of borrowing costs of financing nuclear activities. Information on the application of the European taxonomy to the Orano group’s activities can be found in Section 4.2.1.7 Application of the European taxonomy to the activities of the Orano group in the 2024 Annual Activity Report. Changes in the European policy limiting or reversing the development of the nuclear industry could reduce the exploitable market by the group and have a depressive effect on prices. Risk management measures In the European context of strengthening energy independence and diversifying supply sources, in the wake of the RePower EU strategy, Orano was involved with French and European institutions to defend a market organization that would ensure the viability of current and future industrial investments. 3.3.1.3 Risks related to the requalification of recoverable nuclear materials Description of the risk In the framework of the French National Radioactive Waste and Materials Management Plan (PNGMDR) (2021-2025), certain nuclear materials, in particular depleted uranium stocks, could be reclassified as waste. This requalification could have an unfavorable impact on the estimated waste treatment and final storage expenses, requiring an upward revision of the associated provisions as well as the earmarked assets intended to cover them with a negative impact on the group’s results. In addition, the PNGMDR could lead to stricter regulations concerning the rehabilitation of facilities and soils being dismantled, which would increase dismantling costs for Orano. Risk management measures Orano defends a position that meets French strategic interests, which is increasingly necessary in a complex geopolitical context: in addition to its possible industrial uses, the stock of depleted uranium plays a role as a strategic uranium reserve for the supply of the nuclear fleet in the event of a supply disruption. Indeed, the group considers these materials to be strategic in that they could be used in the manufacture of nuclear fuel and serve as a strategic reserve of uranium to supply the nuclear fleet in the event of a supply disruption. The treatment of contingent liabilities is described in Note 34 to the consolidated financial statements in Section 4.2.4 of the Sustainibility Statement and Section 6.1 Consolidated financial statements – financial year ended December 31, 2024. 3.3.2 Risks related to the group’s business activities 3.3.2.1 Risks related to sustainability of industrial facilities, workload plans and cost control Description of the risk The obsolescence of production plants, and their ability to function in a nominal way and in compliance with the regulatory commitments, represents a major challenge for the Orano group. Indeed, if the underperformance of production plants and its aging were not addressed and corrected, the entire French nuclear industry could be disrupted since the group would be unable to meet its commercial obligations in terms of volume, quality and deadlines. The obsolescence or failure of these industrial facilities would have a significant negative impact on the group’s operating activities as well as on its financial position and reputation. Risk management measures Industrial facilities are covered by maintenance programs designed to monitor and anticipate the aging of equipment. Regarding regulatory commitments, the group’s “regulated nuclear facilities” undergo periodic inspections every ten years. The French nuclear safety authority also conducts regular inspections to ensure the reliability of the facilities and the ability of the Orano group as a nuclear operator to operate them in compliance with safety and security standards. In addition, the various nuclear operators are part of WANO (World Association of Nuclear Operators) to share their know-how for greater safety. The way in which the group maintains and renews its facilities, operates them efficiently by deploying operational excellence on a daily basis, while seeking to reduce their footprint, is described in Chapter 4 of the 2024 Annual Activity Report. 3.3.2.2 Risks related to the group’s projects and the Back End of the Future Management of the group’s projects Description of the risk The group develops project management activities as part of the development, renewal or extension of its own industrial or mining facilities, as part of its activities on behalf of third parties or as part of decommissioning projects, back end of the cycle projects and projects regarding the evolution of the treatment-recycling model. For example, Orano is renewing its evaporation capacities in the dissolution workshops at the la Hague site, developing additional mining production capacities at its South Tortkuduk site in Kazakhstan, and has decided to increase its enrichment capacities
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