Best in France NTT Europe Paris Branch

1. Best in FranceNTT Europe Paris Branch Group ES2.b Georgios Filiopoulos Gianni Huaman Mikito Kuroki Sameer Narula December 2003

2. Agenda • NTT Group & NTT Communications • NTT Paris Branch • Why NTT came to France? • Company’s Clients • Customer’s Needs • Company’s Values • Company’s Products • Constraints in France • Organizational Structure • Adaptation to France • Essential Advice • We thank

3. NTT Group

4. NTT Communications Address : 1-1-6 Uchisaiwaicho Chiyoda-ku, Tokyo, Japan 100-8019 Capital : 211,650 million yen (as of March 31, 2003) Employees : About 7,450 (as of March 31, 2003) Business : Domestic and international telecommunications services URL : http://www.ntt.com/index-e.html

5. Overseas Sales offices

6. Paris Branch Date de création : mai 1991 sous le nom de NTT France. Directeur général : Yôsuke SEKI Siège social : NTT EuropeDEVON HOUSE, 58-60 ST. KATHARINE'S WAY LONDON E1 LB, U.K • What's its business • To sell international data services for corporate customers • International data networks in France : FR, ATM, IP/MPLS, ILL • To support Japanese Companies in France (IT, Network engineering ) • What are its key figures • Sales 4,224,306 Euros (2002)

7. Why NTT came to France? • Company approach to international growth • Target : to become a ‘Global IP services Company’. • In Europe : to be the ‘Asian carrier of choice’ for European multinational companies • To be the preferred carrier of Asian companies for their European network • Where else did it consider • Leader in Asian market, rapid growth in the Americas & Europe • Presence in the UK, France & Germany due to existing customers • Why was France a key target location • France is one of the leading countries in Europe, its economy one of the largest (among the top six in the world) • Global customers are here (eg. Toyota)

8. Company's clients • Who are the company's clients? • Japanese multinational companies in France • The number of business customer : 190 companies • Toyota Manufacturing France • Other American, Asian, European multinational companies • French multinational companies (Arcstar) • How will a French presence help or hurt the company's ability to satisfy client demands? • Close support and direct contact for offices/HQs in France will help the company satisfy client demand

9. Customer Needs • Control of IT of overseas subsidiary from headquarter in Japan • VNP • IT Security • Multi language support (English / French / Japanese) • Application development such as Groupware • Save cost of IT

10. Company’s Values • What are the core values of the company that may or may not fit with perceived French values? • Fits well : attention to service and long-term relationships with the customers • (as opposed to Anglo-Saxon ‘short-termism’ and ‘hard sell’ approach) • How did company manage to instill its values in the French unit? • Multinational & multicultural team (50:50 French : Japanese) • The culture is a unique amalgamation of French and Japanese • All Japanese employees speak French and many French speak Japanese • French employees with job experience in Japan and/or Japanese spouses

11. Company’s Values (continuation) • Dedication to service and global end-to-end support • Trilingual Help desk : language(English, Japanese, French) • One stop solution from cabling to application development • Multi system vendor • Japanese high level of IT technology is very useful for French companies • Very high level commitment to customer service (unique experience for companies in France)

12. Company’s Products • What products are produced in France? • They do not sell products but services : International data services designed by Tokyo, locally delivered services for SI (consulting,…) • Arcstar : NTT Communication network brand From “Overview of Paris Branch”

13. Constraints in France • What are the principal constraints that the company foresaw before coming to France? • In terms of HR, the strong existence of French unions represents a factor to take into account • Because of French Unions, NTT France seems as a big decision having more than 50 employees in France (highest limit of employees before having a Union in a French company) • How do these constraints differ with their other locations? • In the European region NTT has developed different business practices and rapport with its customers • NTT does not realize whether the differences between its European subsidiaries are cultural or not

14. Organizational structure • The number of employees : 30 • 2 of them are expatriates. Others are French • Many French workers have working experience in Japan • Organization • * Sales Support • * Project Management * Engineering • * Technical Sales Support * Technical Team (Example) Iléana WALBAUM, Responsable Administrative worked for French embassy in Tokyo. Hervé LEREAU, marketing director, he worked in France telecom Japanese branch

15. Adaptation to France • Conditions of work follow French law - Convention collective – • Two types of employees • Cadre & non-cadre • Ranks A, B, C, D are non-cadre • Ranks E, F, G, H are cadre • 70% of salespeople are non-cadre • Follow a special formulae which ends up making work hours paid at 37 hours a week • 12 days a year off • Training in UK and France • Initially had a Japanese bonus system, now French (13 month system) • Perks include restaurant tickets, carte orange etc.

16. Adaptation to France (continuation) • Communications policy in office • Generally, French and Japanese are common languages • The aim of this communication policy is to avoid misunderstanding by using English, which foreign for both Japanese & French workers • English is used only in simple e-mail correspondence

17. Adaptation to France (continuation) • Recruiting • Head hunting • Personal contact • Use recruiting company • Desirable talents • Language skills (French / Japanese /English) • Working experience in Japanese corporations • Engineering skills • Management skills

18. Adaptation to France (continuation) • Training Program • Technical training is held by outside expertise • Accounting training (French accounting) • Specialized Accounting software usage taught in the UK • Japanese Language lessons (for free, every week) • Compensation menu • Basically, compensation menu is based on French law (13 Salaries, 25 Calendar days for vacations, 35 working hours a week, and so on). • Food tickets (every day 7 euro support) • Transportation reimbursement (percentage of Carte Orange) • No extra bonus for Overtime (Japanese workers of NTT France are more flexible to work overtime  cultural issue)

19. Essential Advice • Advice to other companies in this sector • concerning use of France as a location • Compared to corporations in other countries, French corporations want to have long-term relationship with its business partner. • BUILDING TRUST is quite important in France. From Hervé LEREAU, sales director

20. We Thank Yosuke SEKI General Manager 90, Avenue des Champs – Elysees 75008 Paris seki@ntt.fr 01 4076 0660 Hervé LEREAU Sales Director 90, Avenue des Champs – Elysees 75008 Paris lereau@ntt.fr 01 4076 0660 Iléana WALBAUM Responsable Administrative 90, Avenue des Champs – Elysees 75008 Paris ileana@ntt.fr 01 4561 5508

21. Our Team Mikito Kuroki Mikito.Kuroki@mailhec.net Sameer Narula Sameer.Narula@mailhec.net Georgios Filiopoulos Georgios.Filipoulos@mailhec.net Gianni Huaman Gianni.Huaman@mailhec.net