enlarged Europe = 500 million consumers

EU applicant countries(2002)

BulgariaCyprusthe Czech Rep.EstoniaHungaryLatviaLithuaniaMaltaPolandRomania,the Slovak Rep.Slovenia

Turkey.

overlapping European business cultures

Anglo-American

Latin

Rhineland

Scandinaviannew Russiancapitalism

New strategies of internalization

relative size is necessary to compete on the big enlarged EU domestic market of 500 million consumers;

EU market is open to world competition;

to compete globally ---French companies have to focus on core businesses, acquire companies in all key markets and build international alliances;

companies like Airbus, Carrefour, Danone, Michelin, Ondeo, Renault etc fight for world leadership on their segment.

Airbus

Source: Dussauge 1999

AirbusA3001974

AirbusA 3201984

AirbusA3301993

AirbusA 3191995

ATR Bae 146

Aerospatiale 1+5 1+5 1+5 1+(2) 2+3+(5)

3 3 3 31+2+3+4+5

DASA 2 2 2 (2)+5

CASA 4 4 4 4

Alenia 1+4

BritishAerospace

1 2

3

3

4

4

5 : final assembly

from activity sharing ...

90% of business 10% of business

… to Airbus integrated company

Airbus Integrated Company shareholders (2000): – EADS: merger of Aerospatiale-Matra (France),

DaimlerChrysler Aerospace (Germany) and CASA (Spain).

– BAE SYSTEMS (UK) 40,000 employees in Europe, 100,000 employees around the world.design, engineering and manufacturing in France, Germany, Spain and UK.Two final assembly lines: Toulouse, France & Hamburg, Germany

Michelin19%

Goodyear17%

Continental7%

local players21%

Cooper2%

Yokohama4%

Toyo2%

Bridgestone19%

Sumitomo5%

Pirelli4%

a world oligopoly: tire industry

[1999]

Michelin: managing a brand portfolio

UNIROYALRIKEN STOMIL-OLSZTYN TYREMASTER SIAMTYRE WARRIOR

MICHELIN KLEBER BF GOODRICH TAURUS PNEU LAURENT WOLBER

Carrefour international presence

EUROPE AMERICAS ASIAGNPPer cap.

region firstopen.

stores region firstopen.

stores region firstopen.

stores

High-income&MiddleIncome

FranceSpainGreecePortugalItalyBelgium

196319731991199119931998

38372656332306985534

KoreaSingaporeJapan

199619972000

2011

Lower-MiddleIncome& LowIncome

TurkeyPolandCzech RSlovakia

1993199720002000

465162

BrazilArgentinaMexicoColombiaChile

19751982199419981998

1893611833

TaiwanMalaysiaChinaThailandIndonesia

19891994199519961998

24627117

Source: Carrefour 2000

Group

Carrefour

We are

The 1st European retailing group

The 2nd worldwide retailing group

We are

The 1st retailer in:FranceSpain

GreeceBelgium

ArgentinaTaiwan

Indonesia

We have

• Over 2 billion cash transactions a year

• Over 9000 stores spread over 31 countries, including 731 hypermarkets

• Over 380 000 employees

In 2000, we opened

•1 Dia - hard-discount store per day

•1 Champion supermarket every 3 days

•1 Carrefour hypermarket per week

Today, we satisfy our customers’ needs

With our different StoresHypermarkets, Supermarkets, Maxi discount stores, Convenience stores,Cash and Carry

Carrefour, Reflets de France, Filière Qualité Carrefour, ScelgoBio, Viversano, Harmony, TeX, TopBike, De Nuestra Tierra, GreenCut ...

With our Brands

Insurance, Financial Services, Flowers, Holidays, Optical,, Car maintenance, Frozen Food Stores

With categoric stores

Ooshop, VeryWine, Gardening, Furnitures ...With E-commerce

Our ambition

Meet the challenge of modern consumption

9225* stores spread across 31 countries

731 Hypermarkets2290 Supermarkets

3745 Maxidiscount stores2261 Convenience stores198 Cash & carry stores

Latin America: 639

Asia: 108

Europe: 8478

* at February 2002, including partners

731 hypermarketsupdated 2002, February 5th

Brazil : 74

Argentina : 22

Colombia : 5

Mexico : 19

Chile : 4

Belgium : 57

Malaysia : 6

Indonesia : 8

Greece : 11

Turkey : 10

Czech Republic : 11

Italy : 37Spain : 113

Portugal : 5France : 214

Poland : 9

Chine : 27 South Korea : 22

Japan : 3

Taiwan : 26

Thaïland : 15

Singapore : 1

Other countries, with partners : 20

Latin America: 124

Asia: 108

Europe: 499

Switzerland : 11

Romania : 1

2000 consolidated turnover- including taxes -

FranceAbroad

Group

33 99730 805

64 802

52,5%47,5% 25,0%0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

% : proforma change

Euros millions

Commercial sales by type of businessUnder store banners

60%

Hypermarkets

7%

Maxidiscounters

13%

Cash & Carry, Convenience stores, Frozen Food storesWholesale activities

Supermarkets

20%

Consolidated turnover per region

Europe79%

including France53%

Asia6%

Latin America

15%

A strong growth strategy

31 countries

19 countries

9 countries

5 countries

200019941989

FranceSpainBrazil

ArgentinaTaiwan

+Turkey

ItalyPortugalMexico

+ Monaco

+ ChinaSouth Korea

Czech RepublicThailandPoland

SingaporeColombia

ChileIndonesiaMalaysia

+ GreeceBelgium

United Arab Emirates*Mauritius*

Madagascar*Slovakia

JapanTunisia

Dominican RepublicQatar

RumaniaSwitzerland

1998* partners

Employment in Asia

• 38 745 employees (updated December 31th, 2001= 10% of integrated companies staff

Thailand15%

Taiwan18%

Singapore1%

Korea13%

ndonesia9%

Japan4%

Malaysia7%

China33%

I

CarrefourCarrefourChinaChina

CHINA - Year 2000

Area: 9.6 million km2

Territorial division: 31 Provinces, Autonomous regions,etc. Capital: BeijingPopulation: 1.25 billion (2000)GDP: 8,940.4 billion yuan (1,000 billion USD)Annual per capita income: 6280 yuan (758.5 USD)Sales of consumer goods: 3415.3billion (412.5 USD)

CARREFOUR CHINAChina entry date: 1995Trading name: Carrefour (China)Management Consulting Service Co., Ltd.Employee: 15,000Turnover in 2000: Over 8 billion yuan

Carrefour in China

Shanghai (6)Wuxi (1)Nanjing (1)

Shenyang (1)

Dalian (1)

Beijing (4)

Qingdao (1+1)

Wuhan (2+1)

Dongguan (1)

Zhuhai (1)Guangzhou

(1)

Chongqing(2)

Tianjin(2+1)

Ningbo (1)

Chengdu (1+1)Hangzhou (1)

black number : existing store: 27red number : signed project :9

Shenzhen (2+1)west regioneast region

Harbin (1)

Changsha (1)

Carrefour in China: Opening Dates

1995.12.25 Beijing Chuangyijia Store

1996.01.16 Shanghai Qu Yang Store

1996.11.26 Shenzhen Nan Tou Store

1997.10.06 Tianjin Nan Kai Store

1997.12.03 Shanghai Wu Ning Store

1998.01.08 Chongqing Mian Hua Jie Store

1998.01.13 Tianjin Long Cheng Store

1998.04.08 Chongqing Jin Guan Yin Store

1998.10.19 Zhuhai Le Tian Store

1998.11.18 Wuhan Shi Sheng Store

1998.12.09 Hanghai Jin Qiao Store

1998.12.12 Shanghai Gu Bei Store

1999.07.15 Beijing Fangzhuang Store

2000.01.28 Dalian Store

1999.09.26 Shanghai Nan Fang Store

1999.10.27 Nanjing Da Qiao Store

1999.11.23 Ningbo Jiang Dong Store

1999.12.09 Qingdao Ming Da Store

1999.12.08 Beijing Ma Lian Dao Store

1999.09.30 Chengdu Ba Bao Jie Store

1999.09.09 Wuhan Wu Sheng Store

1998.12.14 Dongguan Store

2000.08.04 Meilin Store

2000.08.08 Fangyuan Store

2000.08.09 Gongjiang Store

1999.01.06 Shenyang Bei Zhan Store

A store is on average...

*10,000~15,000 Daily Debits

*500~600 employees

*10,000 square meters.

*18,000 products available

*60% of sales in food

*40% of sales in non-food

Suez Group Water Business

ONDEO OBJECTIVES

WATER: Turnover + 60% over 5 years (1999-2004)€ bn

1999100 millioncustomers

60,000 industrial customers

1981 199220 millioncustomers

199648 millioncustomers

Objective 2004

ONDEO Value Chain

Design Construction Operation Customer

Assess Buildsolutions

Implementsolutions

Asset management Customer care

Finance Management

our customers’problems

Withdrawal from non-strategic businesses (1997-2000)

eliminating all confectionery business;

eliminating more than half the Group's grocery brands in Europe: pasta, condiments, sauces;

eliminating beer business in Europe.

Focusing on core business

Dairy Products: DANONE

Biscuits: LU

Beverages: EVIAN

20 years of acquisitions in Asia

1980 - Japan: JV with Ajinomoto (fresh dairy products) 1987 - Canton: JV for fresh dairy products 1989 - India: participation in Britannia. 1989 - Australia: control of Griffin's1991 - Honk-Kong: acquisition of Amoy 1994 - Shanghaï: JV in yogurts Shangai Danone Dairy (yogurts)1994 - Shanghaï: JV in Shanghai Danone Biscuits (biscuits)1995 - China: participation in the Haomen breweries1996 - China: control of the Hangzhou Wahaha1996 - China: acquisition of Wuhan Dongxihu Beer1998 - Singapore: participation in Yeo Hiap Seng (beverage market leader) 1998 - Indonesia: agreement with Aqua (bottled mineral water) 1998 - China: agreement with Health (bottled mineral water)1998 - Singapore: participation in Yeo Hiap Seng (beverages)2000 - China: acquisition of Robust (water and dairy beverages)2000 - China: participation in Aquarius Water 2000 - Malaysia: buy back of United Biscuits activities

12% of sales in Asia-Pacific in 2001

China represents over 70% of sales in the region

4 companies together account for nearly 80% of sales in the region:– China : Wahaha and Amoy– India : Britannia– New Zealand : Griffin's

Renault - Nissan alliance (1999 - 2001)

common platforms (small and lower medium segments): objective 50% of production volume (3.5 million vehicles) by 2005. joint development on a common small diesel engine.joint purchasing organization: objective 70% of purchasesjoint distribution in Europeindustrial and sales synergies abroad joint IT Systems

Two entities - one strategy (2002)

separate identities and independence of the two groups, responsible for their own operating activities. reinforcing the cross-shareholdings:

– Renault’s stake in Nissan up from 36.8% to 44.4%– Nissan share in Renault 15% without voting rights.

setting up Renault-Nissan BV, 50-50 JV in charge of coordinating the alliance’s operations worldwide. The French State has announced it would lower its shareholding in Renault to 25%.

Changes in French business system (1990 -2002)

privatization: drastic reduction of state involvement in industry, banking, automotive sector (Renault), oil industry (Totalfinal Elf), telecommunications;growing interest of French public to the Paris "Bourse”; loss of influence of "noyaux durs”: the intricate networks of cross ownership between associated banks and corporationsloss of influence of government and high civil servants (“grand corps”) thanks to globalisation, Europe and greater autonomy at regional level: the French "regions".

France fully state controlled companies (2002)

SectorAerospace & Defence: e.g. Snecma (aircraftengines)MortorwaysChemicalsEnergy: EDF (largest European electricitycompany) , GDF (Gaz), Coal etcLeasure: Française des JeuxMedia: France TelevisionFinancial Services: La PosteTransportation: SNCF (French Railways) ,Paris Metro

Companies to be privatized (2002)

Company State’s share(%)

Air France 55.9France Telecom 55.5Thales (defense electronics) 51.0ASF (motorway operator) 51.0Renault (car industry) 25.0Thomson Multimedia 21.0EADS (aircraft industry) 16.7Bull (computers) 16.3Dassault Systems 15.8Credit Lyonnais (bank) 11.6

Growing influence of foreign investors

40%42%

37%35%

51%42%

38%45%

39%

0% 10% 20% 30% 40% 50% 60%

Alcatel

AXA UAP

ELF

Paribas

Suez-Lyonnaise

percentage of capital owned by foreigners in 1997

Conclusion

French companies go global with:more focused strategies

in depth corporate transformation

Focusing on core businesses

conglomeratediversification

forwardintegration

international strategy

backwardintegration

focusing of core business

Transforming the corporation

2 building

capabilities

4 managingintangibles

3managing

alliances andJVs

5 restructuringinternationaloperations

1 value creation

throughoutthe network

6 transformingthe institution

redefinitionof

core business