1. Product Lifecycle Management © 2003 IBM Corporation  Customer Background –Founded in 1825, French-based ARC International remains a family business after more than 175 years –Manufacturers more than 8,000 tableware products, including glass, crystal, stoneware, porcelain and cutlery –Employs 16,000 people and has an annual turnover of 1.3 billion euros  Business Challenges –Diversify product line –Increase innovation –Improve product development to cut costs and reduce time-to-market  Solution Implementation –CATIA V5 for advanced 3D product development –SMARTEAM for comprehensive data and lifecycle management  Benefits of the Solution –Boosted design productivity 20% –Increased innovation –Reduced development costs –Improved time-to-market –Elimination of interface and data conversion problems –Immediate technical validation of projects –50-80% reduction in time required to modify a complex design –25-40% reduction in time required for NC programming –10% reduction in actual machining time –Improved quality of finished moulds CATIA V5 and SMARTEAM increase innovation and productivity at ARC International

2. Product Lifecycle Management © 2003 IBM Corporation ARC International  The Industry Founded in 1825, French-based ARC International remains a family business after more than 175 years. ARC’s catalogue includes more than 8,000 tableware products, including glass, crystal, stoneware, porcelain, and cutlery. The group exports 83% of its production to 160 countries worldwide, employs 16,000 people and has an annual turnover of 1.3 billion euros.  The Challenge With increasing competition in the tableware market and pricing pressures due to outsourcing and globalization, ARC launched a growth strategy focused on improving product development processes. The company wanted to cut development costs, deliver a wider range of innovative products and improve time-to-market for greater reactivity and competitiveness.  The Solution To optimize its industrial tools, the group selected CATIA V5 for its 3D product development capabilities and SMARTEAM for its comprehensive data and lifecycle management features.  The Customer Benefits With the CATIA-SMARTEAM solution, ARC International has reduced costs, enhanced innovation, improved time-to-market and increased productivity by 20%. “Tuning up our industrial tools was part of our five-year plan to guarantee growth and profitability. CATIA V5 and SMARTEAM enable us to offer competitive prices without compromising our deep-rooted tradition of innovation, creativity and beauty – the hallmark of ARC International designs.” – Guillaume de Fougières, Director of Finance, ARC International.

3. Product Lifecycle Management © 2003 IBM Corporation CATIA V5 and SMARTEAM increase innovation, reduce costs and boost productivity by 20% Demanding market drives process improvements ARC International is a leading maker of tableware with a long-standing tradition of providing innovative, beautiful products of high quality. But outsourcing and globalization have driven prices down in the tableware market and demand is low due saturation and changes in consumer behaviour. In the face of these challenges, ARC International launched a five-year growth strategy focused on improving product development. “Strong downward pressure on prices forced us to diversify our product line, rethink our international distribution and improve the performance of our industrial processes,” said Philippe Durand, CEO, ARC International. “With CATIA V5 and SMARTEAM, we are positioning ourselves with the best tools available.” François Meurisse, Head of Industrial Reorganization Implementation, ARC International