Orano confirms positive net cash flow from company operations in 2018

Update on the Group's financial outlook

2018 outlook

At its meeting today, the Orano Board of Directors reviewed the financial outlook for 2018. Considering the latest available forecasts, the Group specified the following:

• net cash flow from company operations is expected to exceed €50 million, in line with the Group's objective to generate positive net cash flow from company operations from 2018, allowing it to initiate debt reduction;
• EBITDA margin for the period is expected at around 22%, i.e. high end of guidance ranging from 19% to 22%¹as previously announced;
• 2018 revenue, announced in moderate decline, will be down between 6% to 8% compared with financial year 2017.

In addition, unless financial markets post a turnaround before the end of the year, net income will be negative, significantly affected by the return on assets earmarked for end-of-lifecycle obligations, due to negative market performance and, in parallel, the application of IFRS 9 since January 1, 2018.

2020 outlook confirmed

The announcements made on November 27, 2018 as part of the Multi-Year Energy Program (Programmation Pluriannuelle de l’Energie - PPE) will not have any short-term financial consequences but may have an effect in the middle of the next decade.

The Group therefore confirms its financial objectives for 2020:

• sustainably positive net cash flow from company operations;
• EBITDA margin/revenue of between 21% and 24%¹;
• context of a return to growth in revenue.

This outlook for 2020 does not take into account the proposed spent fuel treatment and recycling plant in China, for which negotiations have been extended.

2019 objectives

The Group will outline its financial objectives for 2019 when presenting its results for 2018.

Changes in share capital

On December 4, 2018, the French State acquired 12,774,282 shares, i.e. 4.8% of Orano's capital, from the CEA².

From that date, the share capital of Orano³ is owned by the French State (50% + 1 share), the CEA (1 share), AREVA SA (20%), JNFL (5%) and MHI (5%), as well as the Caisse des Dépôts et Consignations⁴ and Natixis⁴ (10% each).

Upcoming events and publications

March 1, 2019 –8:30 a.m. CET: Press release – Revenue and annual results for 2018

[1] Adjusted to reflect the impact from the application of IFRS 15.
[2] Pursuant to the government decree of November 26, 2018.
[3] Figures rounded to the nearest unit.
[4] The Caisse des Dépôts et Consignations and Natixis both acting as fiduciary agent (fiduciaire) under a security and management trust agreement (contrat de fiducie à titre de sûreté et de gestion) to the benefit of certain lenders of AREVA SA.