Position as the largest European vertically integrated utility, with a balanced share of competitive production and regulated network assets; Dominant position in the French market and low-cost nuclear generation portfolio; Reined-in diversification strategy, refocused on strategic neighboring markets; Recurring free cash flow generation, believed to have improved to close to €4 billion in 2004; and Support from the French state through a substantial capital increase expected at the time of the forthcoming partial privatization. Only average financial profile, due to an estimated €16 billion of unfunded pension and other post-employment liabilities and over €22.5 billion of net unfunded nuclear end-of-cycle liabilities; Substantial off-balance-sheet commitments in relation to put options on associates Italy-based Edison and Germany-based Energie Baden Wuerttemberg AG (EnBW);
