1. Presented by: Megumi Nanya Yanan Hou Patrick Kelm

2. Agenda Company Overview Pentel France Why operate in France? Conclusion

3. is a privately held Japanese company that produces stationery and writing instruments Deming Prize 1976 19462009 Company Overview Pentel Co., Ltd. Company Values –Spirit of Wonder –Being Better Is What We’re All About! – Leader in innovation – Commitment to excellence.

4. Product Portfolio

5. Global Network

6. Note that 1 US dollar=88.35yen & 1 US dollar=1.47 euro Pentel’s Financials In USD

7. Pentel’s Financials Note that 1 US dollar=88.35yen & 1 US dollar=1.47 euro In USD

8. Environmental Activities Pentel is the leader in environmental activities Following the worldwide trend of environmental responsibility In 2007 Pentel instituted the Recycology™ producing products… with a minimum of 50% recycled materials by weight without any liquid servants no PDC The Pentel Path to Recycology™ - Reduce, Reuse, and Recycle -

9. International Children’s Art Exhibition Social Activities Pentel of America

10. Pentel France In 1966, Pentel entered the French market Headquarter Japan Pentel Europe USA... Pentel France GER... Marketing Department Manu- factring Commer- cial Ware- house Sales- men Located in Marne la Vallee Located in Bry sur Marne Ball Pen $311 million sales 2008 $21.7 million sales 2008 60 employees 826 Employees

11. Pentel France Pentel’s Customer in France 60% 40% Mass-market Distribution via stationary shops Office suppliers Distribution direct selling European key accounts (Global players) Europentel S.A.S. counts $21.7 million revenues B2B-Revenues: $13.02 million B2C-Revenues: $8.68 million 3rd largest provider in France

12. Benefits Geographic Factor Economic/ Market Factors Workforce Why operate in France? Interaction with other European subsidiaries Marketing activities Common European brand image Point of sales Huge market for pencils Price in Germany: €0.75 - €0.98 Price in France: €1.21 - €1.48 Basis for company’s innovativeness Well educated Cultural fit

13. Constraints Taxation Workforce Bureaucracy Cultural Constrains Why operate in France?

14. Good understanding and integration of French’s way of doing business Gives certain autonomy Good understanding and adaption of Japanese company cultural Close cooperation with headquarters Similar value towards employee loyalty, team spirit and identification with the company Adaption to France The headquarter culture fits with the French values

15. Doing Business in France Major Advantages Challenges in France Huge market Regional product, price & promotion differentiation Highly productive & well educated employees Highly competitive market Pressure to differentiate permanently from the competitors High quality human resources The headquarter strategy fits into the French market

16. Euro Pentel S.A.S operates in France since 1966 The subsidiary consists of a manufacturing & sales department The main reasons for Pentel stay in France Cultural fit between Pentel & France Strategic fit between Pentel & France As long as this fit exists Pentel can operate successfully in France Conclusion

17. Thank you very much