To meet our ambitious 2005 objectives, we have pooled resources in Europe, maintained the momentum of our worldwide acquisitions, and pursued our development in multi-energy and related service activities. In 2000, over 25% of Group revenue was generated outside electricity in France, a significant step forward towards our 50% 2005 target. With over 51 million customers (31 in France, 20 abroad), the EDF Group is in a strong position for the future. Our strategy is to build one of the most competitive global energy groups, a forward-looking company with shared aims and values and a common ethic of corporate responsibility.

Net income before dividend payment decreased slightly as compared with 1999. At the end of December 1999, a storm of unprecedented magnitude swept over France and other parts of Western Europe. We responded rapidly and effectively, but the event inevitably cut into our revenues. More importantly, the regulatory environment in France changed for the first time since 1946. Market opening became effective in February, a major change we had been actively preparing for: 30% of the electricity market is now open to competition and we are seizing that opportunity to broaden our offer and increase its quality. In France, 95% of eligible customers have chosen to remain with us. Meanwhile, we have made gains in other European countries and are consolidating our positions with major customers. The new competitive era demands an approach sharply focused on customer needs. Our new global customized offers are designed to meet those needs and our services are everywhere being upgraded to increase customer satisfaction.

Following groundbreaking negotiations with the European Commission (EC) in November and December, we took three market-opening steps: we reworked our interconnection contracts to guarantee two-way access with the United Kingdom, Switzerland, Italy and Spain. 50 TWh will be sold at competitive prices (25 of which in auctions by EDF), thereby creating a real wholesale market in France. Two electricity firms previously partly owned by EDF, the CNR (Compagnie Nationale du Rhône) and SNET, are being made independent. In addition, an electricity exchange is due to open next summer in Paris.

Our aim is not so much size as quality, profitability and the synergy of our activities. Hence our focus on strategic acquisitions that complement our portfolio in our European core market or consolidate our positions worldwide. After London Electricity in 1999, we established a strong partnership in Germany in 2000 by acquiring a 34.5% stake in EnBW. This partnership fits into our existing or ongoing acquisitions in Austria, Poland, Hungary and the Czech Republic. Meanwhile, to optimize our position in Scandinavia, we are increasing our equity stake in Graninge (Sweden). In the global market, we have likewise paid great attention to strengthening our financial and industrial investments by boosting our equity positions in Light (Brazil) and Edenor (Argentina). All these dynamic EDF affiliate companies are playing key roles as regional growth hubs in the Group's overall development strategy.

Dalkia and EDF-Trading, offer flexible and competitive global solutions alongside our industrial affiliates. Dalkia, a joint venture with Vivendi Environnement, is Europe's leader in energy services. It gives us a pan-European capability to offer global, customized energy and service deals. EDF-Trading, set up in 1999 in partnership with Louis-Dreyfus, gives the Group a solid grip on market pricing for electricity, gas, oil and coal throughout Europe, protecting customers from unpredictable market fluctuations. In its first year of activity, EDF-Trading contributed 0.2 billion euros to group revenues. On another front, London Electricity signed an innovative deal to sell electricity through the Virgin network in the United Kingdom. Today, the EDF Group offers customers state-of-the-art solutions in a wide range of energy businesses.

We are encouraging market opening, increasing our market share, working on improving profitability, and finding the right ways to reconcile competitiveness and responsibility to the community. Our values are in tune with the times: we foster excellence, provide top-quality service, promote sustainable development and encourage best social practices. Above all, we expect to succeed thanks to an exceptionally dedicated and qualified team in the 26 countries where we operate. To prepare the future, we are attracting new talent and finding efficient ways to provide incentives to all.

In the knowledge-based economy that is coming into being, we have more than ever to foster creativity and generate a common vision and sense of shared purpose. As we build the Group, I am committed to promoting the creative potential and careers of all EDF staff. Our competitive edge lies in the Group's men and women whose expertise, world-class R&D, high-tech know-how and service to the community are recognized worldwide. They are the cornerstone of EDF's undeniably bright future.