Orano - Annual Activity Report 2024 75 RISKS, CONTROL AND DUTY OF VIGILANCE PLAN 3 Risk factors The occurrence of the risk of accidents during the transportation of hazardous materials can have a significant negative impact on the group’s financial health and reputation. Orano could also be subject to court proceedings. Vigilance measures relating to safety during transport are described in Section 3.4.2.2 of the 2024 Annual Activity Report. Risk management measures Compliance with the regulations in force on the transportation of hazardous materials is ensured by the processes implemented within the Nuclear Packages and Services business. It implements a “transportation supervision” process, aiming to control operational, security, physical protection, media and industrial risks to transportation involving Orano. This supervision of transportation activities also ensures the management of emergency situations worldwide. Its realtime transport monitoring center gives it permanent access to information on the transport operations it carries out, in conjunction with State-provided services for sensitive transportation. A crisis management unit can be mobilized in the event of an incident. Faced with the risk of incidents during the transportation of radioactive and nuclear materials, these are subject, as are other nuclear operations, to the concept of “defense in depth” in order to ensure their safety and protect people, goods and the environment on public land. This system of defense consists of setting up a series of barriers (packaging performance, observance of safety and security requirements and arrangements for crisis management) to prevent accidents and limit their consequences. The design of the shipping cask is the main component of this system. The design, manufacture and use of packaging for the transportation of nuclear and radioactive materials undergo an assessment process by the competent authorities (in France: the ASN, the French nuclear safety authority). 3.3.2.9 Risks related to contractual and commercial issues Description of the risk The potential loss by Orano of several of its main customers, a reduction in its sales or a deterioration in contractual conditions could have a negative impact on the group’s business and financial position. It should be noted that the group generates a significant portion of its revenue with EDF and is therefore exposed to a risk of dependency on this customer. The group, like all other companies, is exposed to the risk of default by its customers for the payment of its products and services and/ or by its suppliers for the performance of certain services or the delivery of certain products. This risk had increased marginally in 2022 for suppliers that could potentially be weakened by the geopolitical consequences or international sanctions, then stabilized in 2023. In addition, Orano is required to sign long-term contracts whose profitability is likely to be affected in the long term by changes in economic conditions. Even if the prices of these contracts are revised using predetermined indices or rates, the group is exposed to the risk that the increase in the actual cost of its purchases will only be partially covered. The group is also exposed to the risk of cost overruns and deadlines in the execution of complex lump-sum projects. Risk management measures With the exception of EDF, the group is not exposed to a significant risk of dependency thanks to a diversified portfolio of international customers and a good distribution of their contribution to the group’s revenue. Faced with the risks related to multi-year contracts, the group implements commercial and contractual policies aimed in particular at defining floor prices, price indexation formulas, economic disruption clauses and international sanctions. In addition, the group has redefined its commercial strategy by avoiding fixed prices for complex projects. In all these aspects, the governance committees at all levels of the group ensure that offers comply with Orano’s commercial standards. With regard to the risk of default by its co-contractors, Orano has set up monitoring of critical/sensitive suppliers for the group, making it possible to better control this risk. 3.3.3 Risks related to social, societal and environmental commitment 3.3.3.1 Industrial, accidental and climatic safety and security risks Description of the risk The safety of nuclear, chemical and mining facilities is the group’s priority, whose Nuclear and Industrial Safety – Health – Occupational Safety – Radiation protection – Environment policy is based on a set of commitments to achieve the highest levels of safety and environmental protection. The Orano group is exposed to internal risks of nuclear and chemical origin, risks related to its industrial activity and external risks that could have a major impact on the environment. These risks concern all of the group’s industrial facilities, whether regulated nuclear facilities (INB) or industrial facilities covered by legislation on environmentally regulated sites (ICPE) in France or international equivalents (mining sites, etc.). The main risks of nuclear origin are as follows: ● risk of criticality accident (uncontrolled chain reaction with brief, intense neutron emission accompanied by radiation); ● risk of thermal release and radiolysis (absorption of energy produced by intense radiation that can lead to an increase in temperatures and decomposition of hydrogenated components by exposure to radiation and which generates hydrogen emissions).
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