1. Group 4 Jing Yuan Jerome Banuls Jean Saghaard Charles Thach

2. May 17, 2004Gemplus - Best in France Project (Confidential) 2 Agenda Company presentation The international presence French operations Conclusion

3. 3 Company Presentation GEMPLUS

4. May 17, 2004Gemplus - Best in France Project (Confidential) 4 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

5. May 17, 2004Gemplus - Best in France Project (Confidential) 5 Financial Figures Revenues Down trend Operating Results Started to recover

6. May 17, 2004Gemplus - Best in France Project (Confidential) 6 Financial Figures Historic Decreasing demand Price pressure Measures Divestitures Restructuring Cost reduction

7. May 17, 2004Gemplus - Best in France Project (Confidential) 7 Market Performance

8. May 17, 2004Gemplus - Best in France Project (Confidential) 8 People per Region Total Employees: 5.037

9. May 17, 2004Gemplus - Best in France Project (Confidential) 9 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

10. May 17, 2004Gemplus - Best in France Project (Confidential) 10 Worldwide Activities Split

11. 11 The International Presence Gemplus out of France

12. May 17, 2004Gemplus - Best in France Project (Confidential) 12 Gemplus Presence: Europe

13. May 17, 2004Gemplus - Best in France Project (Confidential) 13 Gemplus Presence: North America

14. May 17, 2004Gemplus - Best in France Project (Confidential) 14 Gemplus Presence: Asia

15. May 17, 2004Gemplus - Best in France Project (Confidential) 15 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

16. May 17, 2004Gemplus - Best in France Project (Confidential) 16 Example : Poland Large manufacturing center Drivers : Local demand Quality/cost ratio of labor Cost Logistics (serving Eastern Europe) Safety

17. 17 French Operations

18. May 17, 2004Gemplus - Best in France Project (Confidential) 18 Activities in France

19. May 17, 2004Gemplus - Best in France Project (Confidential) 19 Operating in France French Management Historical On purpose Local culture : French & Provence Blend of American management norms Importance of the R&D team

20. May 17, 2004Gemplus - Best in France Project (Confidential) 20 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

21. May 17, 2004Gemplus - Best in France Project (Confidential) 21 Pros and Cons for France PositiveNegative 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

22. May 17, 2004Gemplus - Best in France Project (Confidential) 22 Advice when Coming in France Integrate the French culture rapidly Have managers familiar with the country and its functioning

23. 23 Conclusion

24. May 17, 2004Gemplus - Best in France Project (Confidential) 24 French Attractivity Not highly attractive for industrial operations High intellectual skills More open internationally

25. May 17, 2004Gemplus - Best in France Project (Confidential) 25 Acknowledgement Mr. Luc Gillet – European HR Director Ms. Muriel Charriere – HR Manufacturing (France)