ORANO // Annual Activity Report 2024

RISKS, CONTROL AND DUTY OF VIGILANCE PLAN

Risk factors

3.3.4.4 Foreign exchange risk

Risk management measures The group uses several types of derivatives, depending on market conditions, to allocate its fi nancial liabilities and investments between fi xed rates and floating rates, with the goal being mainly to reduce its borrowing costs, while at the same time optimizing the management of its cash surpluses. In addition, see Note 29 Financial instruments to the consolidated financial statements in Section 6.1.

Description of the risk 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 main Business Units with signi fi cant exposure to the risk of the US dollar’s depreciation against the euro are the Mining BU and the Chemistry-Enrichment BU, due to their geographically diversi fi ed locations (local currencies: euro/FCFA, Canadian dollar, Kazakh tenge) and to their operations denominated primarily in US dollars, which is the reference currency for worldwide prices for natural uranium and uranium conversion and enrichment services. The risk relating to price volatility may impact currency translation differences and thus have a negative impact on the group’s equity and results. Risk management measures The foreign exchange risk to be hedged is managed globally by Business Unit and is net (some requirements in opposite directions in the same currency are offset, thus providing a natural hedge). For medium- and long-term exposures, the amount of the hedge is set up according to a gradual scale for a duration based on the highly probable nature of the exposure, generally not exceeding fi ve years. As provided in the group’s policies, operating entities responsible for identifying foreign exchange risk initiate hedges against their own currencies exclusively with the group’s Treasury Management Department, except as otherwise required by speci fi c operational constraints or regulations. The Treasury Management Department, which centralizes the foreign exchange risk of the entities, then hedges its position directly with banking counterparties. A system of limits, particularly concerning authorized foreign exchange positions and results, calculated as “marked to market”, is monitored daily by specialized teams which are also in charge of valuing the transactions. In addition, see Note 29 Financial instruments to the consolidated fi nancial statements in Section 6.1. of the 2024 Annual Activity Report. Description of the risk The group is exposed to two types of risk related to changes in interest rates: ● a risk of change in the value of fi xed-rate fi nancial assets and liabilities; ● a risk of change in cash flows related to floating-rate fi nancial assets and liabilities. At December 31, 2024, Orano’s net fi nancial borrowings is mainly exposed to variable returns on its fi nancial assets. With a net exposure of 352 million euros, an increase in interest rates over one year would have a favorable impact of approximately 35 million euros on the cost of the group’s net fi nancial borrowings and thus on the group’s consolidated income before tax. 3.3.4.5 Interest rate risk

3.3.5 Regulatory

and legal risks

3.3.5.1 Risks of corruption

and in fl uence peddling

3

Description of the risk Ethics, transparency and openness to dialogue are part of the group’s values and are the fundamentals that govern the group’s practices and decisions in all circumstances. The group’s geographical footprint and the nature of its operations could expose it to the risk of violating applicable laws and regulations related to fighting corruption and influence peddling, as well as the risk of failing to comply with its internal rules. In the energy sector, generally considered to be a strategic sector in which the amounts invested can be significant, governments and public authorities are preferred counterparties. Orano operates in countries with a high level of corruption according to the index established by Transparency International. Orano applies a principle of zero tolerance to all forms of fraud, in particular to corruption and influence peddling. Allegations of corruption or influence peddling can have an adverse impact on the group, its managers and employees, as well as on its activities. In accordance with the regulatory framework including in particular French law No. 2016-1691 of December 9, 2016, on transparency, the fight against corruption and the modernization of economic life, known as the “Sapin II” law in France, the US Foreign Corrupt Practices Act and the UK Bribery Act, the group, its directors and its employees could also be exposed to investigations and administrative and/or court proceedings that could lead to fines or criminal convictions. In the event of infringements or breaches, certain measures may be imposed by the supervisory authorities to strengthen the program to prevent corruption and influence peddling under the control of a third party or an authority. All of these criminal, civil and administrative sanctions can damage the group’s financial and legal position and its reputation.

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Orano - Annual Activity Report 2024