Group 4 Jing Yuan Jerome Banuls Jean Saghaard Charles Thach.

Group 4 Jing Yuan Jerome Banuls Jean Saghaard Charles Thach

May 17, 2004Gemplus - Best in France Project

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Agenda

Company presentation

The international presence

French operations

Conclusion

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Company Presentation

GEMPLUS


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Profile

World leader in smart card manufacturing Created in 1988 in France Success, crisis (2000 – 2002), resilience

Three markets Telecom, Financial services, Identity

International – Regional culture & identity >90% turnover outside France More employees abroad


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Financial FiguresRevenue (Euros)

200,00

400,00

600,00

800,00

1 000,00

1 200,00

1 400,00

2000 2001 2002 2003

Operating Results (Euros)

-150

-100

-50

0

50

100

150

2000 2001 2002 2003

Revenues Down trend

Operating Results Started to recover


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Financial Figures

Net Results

-350

-300

-250

-200

-150

-100

-50

0

50

100

150

2000 2001 2002 2003

Historic Decreasing

demand Price pressure

Measures Divestitures Restructuring Cost reduction


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Market Performance


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People per Region

Total Employees: 5.037


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Organisation

Manufacturing & Sales Three Regions : USA, Europe, Asia Production autonomy Close to customers

R&D Main activity located in France (500 people) 100 people in Singapore, 10 in Beijing


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Worldwide Activities Split

60%

13%27%

R&D Manufacturing SG&A

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The International Presence

Gemplus out of France


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Gemplus Presence: Europe


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Gemplus Presence: North America


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Gemplus Presence: Asia


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Internationalism

Started very rapidly 1989 sales office in the USA and Singapore First manufacturing plant outside France (Germany) in

1992 1994 : 14% of employees outside France (2004 > 70%)

Drivers Customers : local markets

GSM : specific requests, local personalisation centers Banking / ID : national security policy

Manufacturing cost PubTel : low cost, delocalisation Mexico, China, Poland Allocating demand/products to run full capacity & reduce

cost


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Example : Poland

Large manufacturing center Drivers :

Local demand Quality/cost ratio of labor Cost Logistics (serving Eastern Europe) Safety

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French Operations


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Activities in France

505 people; 30%

500 people30%

675 people; 40%

R&D Manufacturing SG&A


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Operating in France

French Management Historical On purpose Local culture : French & Provence

Blend of American management norms

Importance of the R&D team


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Having the R&D in France

High level of skills French creativity Proximity with chip suppliers « Bien-être »

80% of R&D resources in France.The core of the knowledge


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Pros and Cons for France

Positive Negative

Technical skills Geographical position Infrastructures Stability

Lack of entrepreneurship spirit Complexity of the legal system Too many constraints, lack of flexibility Lack of proficiency in foreign language


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Advice when Coming in France

Integrate the French culture rapidly

Have managers familiar with the country and its functioning

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Conclusion


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French Attractivity

Not highly attractive for industrial operations

High intellectual skills

More open internationally


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Acknowledgement

Mr. Luc Gillet – European HR Director Ms. Muriel Charriere – HR Manufacturing

(France)

Group 4 Jing Yuan Jerome Banuls Jean Saghaard Charles Thach.

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