ORANO // Annual Activity Report 2024

6

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

NOTE 29 FINANCIAL INSTRUMENTS Orano uses derivatives to manage its exposure to foreign exchange and interest rate risk. These instruments are generally quali fi ed as hedges of assets, liabilities or speci fi c commitments. Orano manages all risks associated with these instruments by centralizing the commitment and implementing procedures setting out the limits and characteristics of the counterparties. Foreign exchange risk Changes in the exchange rate of the US dollar against the euro may affect the group’s income in the medium term. In view of the geographic diversity of its locations and operations, the group is exposed to fluctuations in exchange rates, particularly the euro/US dollar exchange rate. The volatility of exchange rates may impact the group’s currency translation differences, equity and income. Currency translation risk The group does not hedge the currency translation risk resulting from the accounting impact of the conversion into euros in the consolidated fi nancial statements of group subsidiaries that use a currency other than the euro, to the extent that this risk does not result in a flow. Only dividends expected from subsidiaries for the following year are hedged as soon as the amount is known.

Financing risk The group fi nances its subsidiaries in their functional currencies to minimize the foreign exchange risk from fi nancial assets and liabilities issued in foreign currencies. Loans and advances granted to subsidiaries by the centralized Treasury Management Department are then systematically converted into euros through foreign exchange swaps or cross-currency swaps. To limit the foreign exchange risk on long-term investments generating future cash flows in foreign currencies, the group uses a liability in the same currency to offset the asset whenever possible. Transactional risk The principal foreign exchange risk concerns fluctuations in the euro/US dollar exchange rate. The group’s policy, which was approved by the Executive Committee, is to systematically hedge foreign exchange risk generated by sales transactions, whether certain or potential (in the event of hedging during the proposal phase), so as to minimize the impact of exchange rate fluctuations on net income. To hedge transactional foreign exchange risk, including trade receivables and payables, fi rm off-balance sheet commitments (customer and supplier orders), highly probable future flows (sales or purchasing budgets, projected margins on contracts) and calls for proposals in foreign currencies, Orano purchases derivatives (mainly currency futures) or speci fi c insurance contracts (issued by Coface). These hedging transactions are backed by underlying transactions in identical amounts and maturities and are generally documented and eligible for hedge accounting (excluding possible hedges in the case of calls for proposals submitted in foreign currencies).

DERIVATIVES SET UP TO HEDGE FOREIGN EXCHANGE RISK AT DECEMBER 31, 2024

Notional amounts by maturity date

Market value

Total

<1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years >5 years

(in millions of euros)

Forward exchange transactions and currency swaps

1,691

1,242

787

539

252

4,510

(170)

Currency options

-

-

-

-

-

-

-

-

Cross-currency swaps

67

100

100 887

134 673

401

16

TOTAL

1,758 1,342

252

-

4,912

(154)

DERIVATIVES SET UP TO HEDGE FOREIGN EXCHANGE RISK AT DECEMBER 31, 2023

Notional amounts by maturity date

Market value

<1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years >5 years

Total

(in millions of euros)

Forward exchange transactions and currency swaps

2,314

1,362

1,167

693

43

- - -

5,580

11

Currency options

-

-

-

-

-

-

-

Cross-currency swaps

70

70

105

105 798

140 184

490

8

TOTAL

2,384 1,431 1,272

-

6,070

19

372

Orano - Annual Activity Report 2024