2004 Form 20F

The following is a quick snapshot of main US GAAP justments in a Q&A format

Presentation of the difference between French and US GAAP

1- Have you identified new material reconciliating items in 2004 between your financial statements prepared under French GAAP and US GAAP ?

The major difference between French and US GAAP financial statements is primarily driven by : A number of significant acquisitions which resulted in step up in the recorded values of assets and lead to fair value adjustments according to US GAAP. As a reminder the related goodwill was written off directly to equity under French GAAP. The total positive impact on US GAAP net income of business combinations amounts to € 20 millions in 2004.

- The recognition in earnings of derivative financial instruments which has a negative impact of € 377 millions in 2004 in US GAAP.

- The elimination in US GAAP of French GAAP reversal of the negative goodwill of Tractebel Energia has a negative impact of € 173 millions.

- The reversal of reserves which had been taken as a charge in a previous period in French GAAP, has a negative impact of € 149 millions in 2004 in US GAAP.

- The adjustments to capital gain have a negative impact of € 87 million due to differences in carrying values under US GAAP.

-These are the main items between US and French GAAP net income group share in 2004.

2- What is the rationale for higher equity in US GAAP ?

Merger between Lyonnaise des Eaux and Suez, and SGB, Tractebel and Sita exchange public offers resulted in an equity write-off of goodwill in French GAAP and explain most of the 7.0bn€ difference with shareholders' equity in US GAAP.

For a detailed description of the differences between US and French GAAP accounting, see Notes 26 and 27 to our Consolidated Financial Statements included in our 20-F.

Download the full version of the 2004 Form 20F (Acrobat - 2.25Mb)