One of the largest vertically integrated utilities in the world, with dominant positions in France and strong positions in the U.K. and Italy. Significant exposure to European merchant power, which face tough operating conditions linked to market liberalization, declining power prices, and a mainly fixed-cost nuclear and hydro asset base. Relatively high contribution from domestic regulated earnings, notably through the full ownership of the French power distribution network. Execution risks associated with highly capital intensive nuclear new build projects. A sizable investment program, with high negative free operating cash flows after dividends. Successful implementation of a remedy plan to control debt through a capital increase, asset disposals, and scrip dividends. Substantial cash balances and excellent access to capital markets. Substantial
