Presented by: Megumi Nanya Yanan Hou Patrick Kelm

1. Presented by: • Megumi Nanya • YananHou • Patrick Kelm

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

3. Company Overview Pentel Co., Ltd. is a privately held Japanese company that produces stationery and writing instruments 1946 2009 Deming Prize 1976 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. Pentel’s Financials Note that 1 US dollar=88.35yen & 1 US dollar=1.47 euro 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. Social Activities International Children’s Art Exhibition Pentel of America

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

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

12. 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. Why operate in France? ✗ • Highest corporate taxes • Highly unionized • 35h per week • No Strikes ✗ • Role of the state ✗ • Cultural differences between Japan & France • All employees are French • Chairman is Japanese ✗

14. Adaption to France • 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 The headquarter culture fits with the French values

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

16. Conclusion • 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

17. Thank youvery much