• Creation of the world leader in water services
• 60 percent increase in revenue by 2004
• The Water Division will develop its activities by leveraging the Internet economy resources Suez Lyonnaise des Eaux is transferring all its water activities to a single entity to unify the Water Division's three main branches (Lyonnaise des Eaux, Nalco, and Degrémont) and guide the Group's worldwide water sector development. Recent trends in the water market require a global and unified commercial approach. The revised structure will give the Group the means to reinforce its position as world leader in water-related services, mobilizing its skills around a global strategic vision.

The aim of regrouping Suez Lyonnaise des Eaux water activities is to give the water businesses the resources necessary for their development. At the same time, this new organization will clearly identify the scope of operation of the Group's three international water networks, Lyonnaise des Eaux, Nalco, and Degrémont, and ensure optimal efficiency.

The new Water Division serves 100 million people throughout the world and provides its services to 60,000 industrial customers. In 1999, it generated EUR 8.1 billion in revenue [accounting for full-year revenues from operations completed in 1999 (Calgon, Nalco, Santiago)], 23 percent above the previous year. The Division employs 60,000 people in 120 countries.

Its activities cover all the services associated with the water cycle, with positions as world leader in the management of urban water services, industrial water services, and turnkey project engineering.

Emergence of new markets

Beyond investments to meet growth anticipated in its existing markets, the Water Division has responsibility for investing in new markets, such as:

• Industrial outsourcing. By bringing together the Water Division's combined know-how in water and industrial effluent management, combined with the backing of its numerous commercial relations, the Group will significantly strengthen its offer in the rapidly growing industrial outsourcing market.
• Mastery of water resource management skills opens new fields of activity, by combining major storage, carriage and treatment structures and control over consumption (irrigation, waste water recycling). To this end, the Group has created WRAC, the Water Resource Advisory Committee, made up of recognized international water experts.
• Environmental protection requires implementation of new know-how and technologies to meet increasingly stringent health and environmental norms. The creation of the unified Water Division will enable the Group to provide a more complete and attractive range of services, in particular for sludge treatment and storm water collection and treatment markets. As references in this field, the Division may cite its storm water treatment contracts with the cities of Bordeaux and Casablanca as well as the Paris region airports (Roissy Charles-de-Gaulle and Orly); its sewage sludge treatment references include the cities of Milwaukee, Newcastle, and Bury-sur-Oise.
• End-user expectations lead to the development of new services. At the end of last year, Suez Lyonnaise des Eaux took over and merged two companies, Château d'Eau and Roche Claire, to create France's leading distributor of water cooler dispensers (35% market share in France).

This new organizational structure will enable Suez Lyonnaise des Eaux to offer a worldwide service perfectly adapted to the needs of each of its customer categories: industry, local public authorities, and private individuals.

Moreover, Suez Lyonnaise des Eaux has decided to accelerate e-commerce implementation throughout its business lines. As an example, through their 100 million residential and 60,000 industrial clients, water businesses will achieve synergies and productivity gains, both in terms of billing and new service offerings.