ORANO // Annual Activity Report 2024

STATEMENTS

Consolidated fi nancial statements - fi nancial year ended December 31, 2024

Fair value hedges This designation concerns hedges of fi rm commitments in foreign currencies: purchases, sales, receivables and debt. The hedged item and the derivative are revalued simultaneously and any changes in value are recorded simultaneously in the statement of income. Cash fl ow hedges This designation refers to hedges of probable future cash flows: projected purchases and sales in foreign currencies. The highly probable hedged items are not valued in the statement of fi nancial position. Only hedging derivatives are revalued at each reporting date; in return: ● the effective portion of changes in value and changes in the fair value of the time value of the option and the effects of premiums/discounts over the life of the hedge are recognized in “Other items of comprehensive income” and presented in the statement of fi nancial position for the amount net of tax, as “Deferred unrealized gains and losses on fi nancial instruments” under Equity; ● the ineffective portion of the change in fair value resulting from the effectiveness test is recognized in pro fi t or loss. The amounts recognized under “Deferred unrealized gains and losses on fi nancial instruments” are released to income when the hedged item impacts the statement of income, i.e ., when the hedged transaction is recognized in the fi nancial statements. Hedges of net investments in foreign operations This designation relates to borrowings in a foreign currency and to borrowings in euros when the euro has been swapped against a foreign currency, to fi nance the acquisition of a subsidiary using the same functional currency, for instance. Currency translation differences on these borrowings are recognized under “Other items of comprehensive income” and presented on the statement of fi nancial position under “Currency translation reserves” in their net amount after tax; only the ineffective portion is recognized through pro fi t and loss. The amount accumulated in currency translation reserves is released to pro fi t and loss when the subsidiary in question is sold. Derivatives not qualifying as hedges When derivatives do not qualify as hedging instruments, fair value gains and losses are recognized immediately in the statement of income. 1.3.9.9.3. Presentation of derivatives recognized in the statement of fi nancial position and statement of income Presentation in the statement of fi nancial position Derivatives used to hedge risks related to commercial transactions are reported under operating receivables and liabilities in the statement of fi nancial position. Derivatives used to hedge risks related to loans, borrowings and current accounts are reported under fi nancial assets or borrowings.

Presentation in the statement of income The revaluation of derivatives and hedged items relating to commercial transactions affecting the statement of income is recognized under “Other operating income and expense”, except for the component corresponding to the discount/premium, which is recognized in net fi nancial income. For loans and borrowings denominated in foreign currencies, the revaluation of fi nancial hedging instruments and hedged items affecting the statement of income is recognized in net fi nancial income. 1.3.9.10. Derecognition of fi nancial assets and liabilities The group derecognizes a fi nancial asset when: ● the contractual rights to the cash flows generated by the asset expire; or ● the group has transferred the rights to receive the contractual cash flows related to the fi nancial asset as a result of the transfer of substantially all the risks and rewards of ownership of said asset. The group derecognizes a fi nancial liability when its contractual obligations are extinguished, when they are canceled or when they expire. 1.3.10.Employee bene fi ts Pension, early retirement, severance pay, medical insurance, long-service awards, accident and disability insurance, and other related commitments, whether for active or retired personnel, are recognized pursuant to IAS 19 as amended. The bene fi ts provided under post-employment bene fi ts can be distinguished according to whether the level of bene fi ts depends on (i) contributions made by the employee (“de fi ned-contribution” plans) or (ii) a level of bene fi t de fi ned by the Company (“de fi ned bene fi t” plans). In the case of de fi ned-contribution plans, the group’s payments are recognized as expenses for the period to which they relate. For de fi ned-bene fi t plans, bene fi t costs are estimated using the projected credit unit method: under this method, accrued pension bene fi ts are allocated among service periods based on the plan vesting formula. For the calculation of retirement bene fi ts, the capping of rights provided for in collective agreements is taken into account in the recognition of commitments. The amount of future bene fi t payments to employees is determined on the basis of actuarial assumptions (change in wages, retirement age, probability of payment, turnover rate and mortality rate). These future payments are reduced to their present value using a discount rate determined according to the rates of corporate bonds with a maturity equivalent to that of the Company’s corporate liabilities, issued by prime corporate borrowers. The group has built up fi nancial assets with an insurer to cover the expenses of de fi ned-bene fi t plans. The recognition of hedging assets is recorded as a counterpart to the sum paid to the insurer. The amount of employee bene fi ts results from the valuation of the commitments less the fair value of the assets intended to be hedged.

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Orano - Annual Activity Report 2024