EDF / 2018 Reference document

5.

THE GROUP’S PERFORMANCE IN 2018 AND FINANCIAL OUTLOOK Outlook

5.4

OUTLOOK

Profit forescast and estimates included in section « 5.4 Outlook » have been prepared and consolidated on a basis which is comparable with historical financial information and consistent with EDF group’s accounting policies as of 31 December 2018. As a consequence, they do not include the effect of IFRS 16 « Leases » that will be applied on January 1 st 2019. Targets 2019 (1) EBITDA (2) : between €15.3 billion and €16.0 billion; ■ Operating expenses (3) : around €1.1billion decrease compared with 2015; ■ Cash flow excluding Hinkley Point C and Linky: > 0. ■ 2019-2020 Ambitions (1) Total net investments (4) excluding acquisitions and 2019-2020 Group ■ disposals: around €15 billion per year; 2019-2020 Group disposals : between €2 billion and €3 billion; ■ Net financial debt/EBITDA (2) : ≤ 2.5x; ■ Targeted payout ratio, based on net income excluding non-recurring ■ items (5) (6) : 45% - 50%.

Before IFRS 16 application. At constant legal and regulatory framework in France. (1) On the basis of the scope and exchange rates at 1 January 2019 and of an assumption of a 395TWh France nuclear output. At prevailing price conditions beginning (2) of February 2019 (around €50/MWh) for the unhedged 2020 France volumes. Sum of personnel expenses and other external expenses. At comparable scope and exchange rates. At constant pension discount rates. Excluding change in operating expenses (3) of the service activities.

In accordance with the Group’s anticipations regarding the Flamanville 3 project completion costs and schedule. (4) French State committed to scrip for the balance of the 2018 dividend and dividends relating to 2019 and 2020 full year. (5) Adjusted for the remuneration of hybrid bonds accounted for in equity. (6)

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EDF I Reference Document 2018