1. Document commercial non contractuel – Service Communication VE - 2003 TRANSPORTWASTE MANAGEMENTWATERENERGY SERVICES 1 The world's number 1 in environmental services Water - Waste Management - Energy Services - Transportation 2002 revenue : €30 billion 302,000 employees worldwide 56 % of revenue generated outside of France

2. Document commercial non contractuel – Service Communication VE - 2003 TRANSPORTWASTE MANAGEMENTWATERENERGY SERVICES 2 Just one area of work: environmental services 4 divisions N° 2 worldwide € 6.1 billion Waste Management N° 1 in Europe €3.4 billion Transportation N° 1 in Spain € 2.7 billion Water and Waste Management N° 1 in Europe € 4.6 billion Energy Services N° 1 worldwide € 13.3 billion Water

3. Document commercial non contractuel – Service Communication VE - 2003 TRANSPORTWASTE MANAGEMENTWATERENERGY SERVICES 3 Key figures Breakdown of 2002 revenue: by division (in € billion) Transportation Waste Management Water FCC Energy Services 2002 revenue: €30 billion

4. Document commercial non contractuel – Service Communication VE - 2003 TRANSPORTWASTE MANAGEMENTWATERENERGY SERVICES 4 Key Veolia Environnement facilities United States Canada China Guadeloupe Colombia France Portugal Ireland Great Britain Sweden Poland Germany Slovakia Tunisia Chile Argentina Brazil Mauritius Mayotte South Korea Taiwan Philippines Australia Malaysia Morocco Finland Benelux Thailand Saudi Arabia Reunion Estonia French Polynesia Venezuela Norway Bahamas India Spain Lebanon Macau Slovenia Egypt Israel Italy New Zealand Denmark Latvia Lithuania Hungary Romania Switzerland Czech Republic The West Bank Gabon Congo Kenya Singapore Indonesia New Caledonia Guyana Puerto Rico Mexico Turkey Dominican Republic Kazakhstan Comoros Madagascar South Africa Niger United Arab Emirates Hong-Kong Veolia Water Onyx Connex Dalkia FCC

5. Document commercial non contractuel – Service Communication VE - 2003 TRANSPORTWASTE MANAGEMENTWATERENERGY SERVICES 5 Transport: 1 st private operator in Europe Outsourced management of urban and regional passenger transportation using all types of vehicle: bus, motorcoach, train, metro, tramway, trolleys, boat, taxi, etc. Freight transportation and logistics Business activity

6. Document commercial non contractuel – Service Communication VE - 2003 TRANSPORTWASTE MANAGEMENTWATERENERGY SERVICES 6 Transport: 1 st private operator in Europe €3.4 billion in revenue in 2002 N°1 private European operator of surface passenger transportation Over 1 billion passengers carried a year 55,200 employees worldwide Over 4,000 municipalities served worldwide 236 road and rail networks 21,000 road vehicles 3,200 rail vehicles Operations in 22 countries Facts and figures

7. Document commercial non contractuel – Service Communication VE - 2003 TRANSPORTWASTE MANAGEMENTWATERENERGY SERVICES 7 Energy Services: no. 1 in Europe Heating and cooling networks Thermal and technical maintenance services Industrial utilities Integrated facilities management services Installation and maintenance of power generation systems Public lighting and illumination systems Business activity

8. Document commercial non contractuel – Service Communication VE - 2003 TRANSPORTWASTE MANAGEMENTWATERENERGY SERVICES 8 Energy Services: no. 1 in Europe €4.6 billion in revenue in 2002 European leader in energy services Revenue growth of 13.8% 40,100 employees worldwide 300 district heating networks managed 70,000 heating systems managed in Europe Operations in 32 countries Facts and figures

9. Document commercial non contractuel – Service Communication VE - 2003 TRANSPORTWASTE MANAGEMENTWATERENERGY SERVICES 9 Waste Management: 2 rd operator in the world Collection, recycling and processing of solid, liquid and hazardous wastes for municipal, industrial and residential customers Waste transformed into energy and for agricultural applications Commercial, municipal and industrial cleaning services Business activity

10. Document commercial non contractuel – Service Communication VE - 2003 TRANSPORTWASTE MANAGEMENTWATERENERGY SERVICES 10 Waste Management: 2 rd operator in the world €6.1 billion in revenue in 2002 73,300 employees worldwide Over 76 million people served 64% of revenue generated by industrial customers 36% of revenue generated outside of France 270,000 industrial customers Operations in 49 countries Facts and figures

11. Document commercial non contractuel – Service Communication VE - 2003 TRANSPORTWASTE MANAGEMENTWATERENERGY SERVICES 11 Water: No. 1 in the world Municipal outsourcing services in water and wastewater Industrial outsourcing services in feed and process water and wastewater Design, manufacture and supply of standard water treatment equipment and systems Residential customer and end-user services Business activity

12. Document commercial non contractuel – Service Communication VE - 2003 TRANSPORTWASTE MANAGEMENTWATERENERGY SERVICES 12 Water: No. 1 in the world €13.3 billion in revenue in 2002 Accounts for 44.2% of Veolia Environnement’s revenue 77,600 employees worldwide More than 110 million people served worldwide 62% of 2002 revenue generated with municipalities 33% of revenue generated with industrial companies 5% of revenue generated with residential customers Facts and figures

13. Document commercial non contractuel – Service Communication VE - 2003 TRANSPORTWASTE MANAGEMENTWATERENERGY SERVICES 13 Focus on Veolia Water Korea VEOLIA WATER KOREA

14. Document commercial non contractuel – Service Communication VE - 2003 TRANSPORTWASTE MANAGEMENTWATERENERGY SERVICES 14 Veolia Water Korea Key Dates  Nov. 1999: Established Vivendi Water Rep. Office  Mar. 2000: Contracted HPC Project / Established Vivendi Water Korea  Dec. 2001: Contracted Hynix Project  Dec. 2001: Signed Incheon Songdo Mansu Sewage BTO Project  Dec. 2001: Awarded the President Citation as one of the Best Foreign Investment Companies  Apr. 2002: Acquired ISO9001:2000 Certificate (HPC Project)  Mar. 2003: Acquired ISO9001:2000 Certificate (Global)  May 2003: Renamed as Veolia Water Korea

15. Document commercial non contractuel – Service Communication VE - 2003 TRANSPORTWASTE MANAGEMENTWATERENERGY SERVICES 15 Veolia Water Korea Veolia Water Korea Business Activities Major Business Status Industrial Outsourcing  Acquired HPC (Hyundai Petrochemical Company)’s water treatment facilities and operate for 20 years  Acquired HYNIX Semiconductor’s water & wastewater treatment facilities and operate for 12 years Municipal Outsourcing  Contracted Incheon Songdo Mansu Sewage BTO Project  BTO Project  Build – Finance Project in 30 months  Transfer –completed Project to Incheon City  Operate – Project for 20 years

16. Document commercial non contractuel – Service Communication VE - 2003 TRANSPORTWASTE MANAGEMENTWATERENERGY SERVICES 16 Veolia Water Korea The Benefits of Our Services Benefits of Industrial & Municipal Outsourcing Service  Industrial Water & Wastewater Treatment Services  Long-term Services  Added Values  New Technologies & Technology Transfer  Optimized Operational Management & Cost saving  Quality Assurance & Risk Management  Transfer of All Existing Staff  Long-term Commitment

17. Document commercial non contractuel – Service Communication VE - 2003 TRANSPORTWASTE MANAGEMENTWATERENERGY SERVICES 17 Veolia Water Korea PPP: A Contract Tailored to Local Condition Main Issues to Tailor the Contract to Local Conditions Customer Relationship Management Financing Environment Economics Water safety Social policy Technology transfer

18. Document commercial non contractuel – Service Communication VE - 2003 TRANSPORTWASTE MANAGEMENTWATERENERGY SERVICES 18 The different levels of PPP There are three main features which differentiate the levels of PPPs: Tariff collection Assets ownership Operational responsibilities Form of the legal agreementTariff collectionAssets ownershipOperational responsibilities Management & service contracts (2 to 5 years) Public Specific responsibilities : Private operator General management : Public sector Build-Operate-Transfer (BOT) (10 to 30 years) Public Until transfer : private After transfer : public During the concession period: build and manage : Private operator Then : Public sector Lease contract (7 to 15 years) PrivatePublicPrivate operator: Leases the asset Operates during the lease agreement Concession contract (15 to 50 years) Private Private operator: full management responsibility during the concession contract Asset sales (perpetuity) Private Private operator

19. Document commercial non contractuel – Service Communication VE - 2003 TRANSPORTWASTE MANAGEMENTWATERENERGY SERVICES 19 VE’s Recent international experiences BOTConcession, rehabilitation, asset sales Lease contracts (Asset owned by Public Entity) 1997. Tianjin (China) (Rehabilitation and management) France (water treatment distribution and waste water) Czech RepublicRow 1998. Chengdu (China) (water treatment plant: BOT) 1998. Durban (Water and Waste water) Reuse of waste water 1998. Bogota (Tibitoc) (Rehabilitation and management) 1998 Sanepar (Asset sale) (Brasil) (Water / waste water) France 3 900 contracts 8 000 municipalities 40 % of the consumers (Water treatment and distribution and waste water) 1999 Berlin (Concession) (Water treatment and distribution) 2000 Bucharest (water Treatment and distribution -BOT : Crivinal) 2001 Bruxelles waste water (Treatment plant- BOT) 2001 Tanger & Tetouan (Full utilities concession : water, waste water, electricity) 2001 Praga (water treatment and distribution and waste water) 2001 Ashkelon (Israel) (desalination:BOT) 2002 The Hague (Netherlands) (Waste water treatment plant-BOT) 2002 Shanghai – Pudong (asset sales) (water treatment and distribution) 2002. Rabat (full utility concession: water, waste water, electricity) 2002 Indianapolis 2002. Tbilissi (Georgia: International Bid organized by World Bank 2003. Baogi

20. Document commercial non contractuel – Service Communication VE - 2003 TRANSPORTWASTE MANAGEMENTWATERENERGY SERVICES 20 Training: Cultivating talent for a sustainable experience Employee training plays a key role in service businesses, where know-how is the best guarantee of quality customer service. Veolia Environnement earmarks 3% of its payroll every year to training. Most of the training is organized around the Urban Environment Institute and UK College of Environment and Transport. The Urban Environment Institute covers all of the environmental businesses (water, waste management, energy services and transportation) and provides initial training and continuing education based on validation of work experience and courses leading to qualifications. IEUUK College

21. Document commercial non contractuel – Service Communication VE - 2003 TRANSPORTWASTE MANAGEMENTWATERENERGY SERVICES 21 Research & Development: innovation - a guarantee of competitiveness 600 researchers 3 research centres: working on Water (Anjou Recherche), waste and energy (CREED), and transport (Eurolum). An international research network (Europe - USA - Pacific Asia) Research promoting public health and the environment An effective network-based organisation (France/ International). Partnerships with prestigious organisations: (the Pasteur Institute, EAWAG in Switzerland, the Environmental Protection Agency in the United States, Groundwater Studies in Australia, the University of Science and Technology in Hong-Kong and other universities in Asia (Continental China, Thailand, Malaysia). Preserving resources within the framework of sustainable development