1. About HORIBA HORIBA in France Cultural difference Adaptation to France Suggestion Oni BROTOSENO Mizuhiko FUJIE Nurkholis MAJID HORIBA, Best in France

2. About HORIBA HORIBA in France Cultural difference Adaptation to France Suggestion Head QuarterHORIBA Ltd. Head OfficeJapan FoundedOctober 17, 1945 Consolidated Net Sales144,283 million yen Line of Business Automotive, Scientific Analytical, Medical Diagnostic, Semiconductor Stock ListingsTokyo Stock Exchange (First Section) Osaka Securities Exchange (First Section) Number of Employees5,146 (Consolidated) Business Locations in Japan Kyoto Head Office, Tokyo, Sendai, Tochigi, Tsukuba, Yokohama, Hamamatsu, Toyota, Nagoya, Osaka, Hiroshima, Fukuoka, Ehime Overseas Locations France, Germany, Austria, UK, Korea, China, India, Thailand, Singapore, Canada, USA, Brazil and additional branches in Belgium, Czech, Netherlands, Portugal, Russia, Spain and Sweden. HORIBA Company

3. “One company” Matrix Management Business segments and regions as axes Region Segment Semi- conductor Medical- Diagnostic Automotive Segment Analytical Asia Americas Europe About HORIBA HORIBA in France Cultural difference Adaptation to France Suggestion Business Portfolio 36% 28%18% 50% 21% 29%

4. About HORIBA HORIBA in France Cultural difference Adaptation to France Suggestion Products & Customer Where?Of what?For What? Automotive Test System Automotive Manufacturers Exhaust gas - R&D of engine - Certification of emission regulation Scientific Raman Spectrographs Bio-technology Institutes Nano-materials Molecules - Develop new technology and material Medical Blood Cell Counter Medical Institutes Blood-Blood test Semiconductor Chemical Concentration Monitors Semiconductor Manufacturers Washing used in semiconductor production - Maintain product line of semiconductor HORIBA ABX HORIBA Jobin Yvon

5. About HORIBA HORIBA in France Cultural difference Adaptation to France Suggestion Why HORIBA came to France ? HORIBA Looking for opportunities to grow -Transformation from product oriented to market oriented -Strong R&D ABX / Jobin Yvon Looking for an industry partner -Performing in potential market -Aspiration for R&D Partnership in distribution HORIBA acquired ABX in 1996 HORIBA acquired Jobin Yvon in 1997

6. About HORIBA HORIBA in France Cultural difference Adaptation to France Suggestion Acquisition process and challenge ABX case was the first M&A for HORIBA – As regards business aspect, HORIBA made an own assessment and judgment – Investment bank and consulting firm as advisors to avoid investment risks – Approach to DATAR France and French Ministry of Finance -> The negotiation broke down 3 times and it took 1 year before the agreement

7. The only difficulty was the way of operation – The companies had been partners – ABX and Jobin Yvon had operated in an international environment Differences: Specificity of Japan and that of France 1.Generalist oriented vs. Specialist oriented 2.Collectivism vs. Individualism 3.Define the goal: “What is your strategy, Alex?” 4.Think or Act About HORIBA HORIBA in France Cultural difference Adaptation to France Suggestion Differences between Japan and France

8. About HORIBA HORIBA in France Cultural difference Adaptation to France Suggestion Differences between Japan and France Japan [Generalist oriented] - Engage in the company rather than the job - Company provides education and training - Lifetime employment - Transference and change of position are general France [Specialist oriented] - Engage in the profession or the function - Education as self-investment - Work for own career development - Position is specifically defined by contract 1. Generalist oriented vs. Specialist oriented

9. About HORIBA HORIBA in France Cultural difference Adaptation to France Suggestion Differences between Japan and France Japan [Collectivism] France [Individualism] “Army Style Organization” 2. Organization design: Collectivism vs. Individualism

10. 3. Define the goal: “What is your strategy, Alex?” Japan: Engage to the company France: Engage to the professional career ⇒ French workers want to know the company’s vision and future. And management need to explain where they want to go. 4. Think or Act Notoriety of Japanese companies: It takes long sequence before a decision. ⇒ Prudence ? or Loss of time? About HORIBA HORIBA in France Cultural difference Adaptation to France Suggestion Differences between Japan and France

11. Adaptation to France and International Environment “HORIBA One Company” Concept of “multiplication” Not “adjust,” but “harmonize” 1.Respect to French Culture 2.Development of global mindset 3.Company philosophy and documentation 4.Integration of information system About HORIBA HORIBA in France Cultural difference Adaptation to France Suggestion Adaptation to France and International Environment

12. 1.Respect to French culture French company to be managed by French People 98% French ! – ABX (Montpelier): 500 employee, including 6 Japanese (98%) – Jobin Yvon France (CHILLY MAZARIN - LILLE - LONGJUMEAU) : 300 employee, including 1 Japanese (99%) 2.Development of global mindset Traineeship Program – 10% of Japanese employee have working experience abroad – For skill training and cultivating global mind About HORIBA HORIBA in France Cultural difference Adaptation to France Suggestion Adaptation to France and International Environment

13. 3. Corporate philosophy and documentation Corporate Motto “ おもしろおかしく (Joy and Fun)” – Invention should be joy and fun The HORIBA Way “ おもい (Omoi)” – Passions to work at HORIBA, to be a HORIBARIAN – Individuality, Technology, Communication, Social Contribution and Internationalization HORIBA Brand book – The “Bible” for “HORIBARIAN” – Published in 6 language, including French – What HORIBA Brand is About HORIBA HORIBA in France Cultural difference Adaptation to France Suggestion Adaptation to France and International Environment

14. 4. Integration of information system Introducing ERP (Enterprise Resource Planning) – the integrated information infrastructure shared by group companies Integration of domains and web sites @jobinybon.fr @abx.fr@horiba.co.jp @horiba.com HORIBA J.Y. HORIBA ABXHORIBA Japan ERP About HORIBA HORIBA in France Cultural difference Adaptation to France Suggestion Adaptation to France and International Environment

15. About HORIBA HORIBA in France Cultural difference Adaptation to France Suggestion Consequence of acquisition Drastic quality improvement Introduce new business model ⇒ In 1998, HORIBA has received an Officier prize from French government – 2 acquisition within 2 years – HORIBA’s emission test system has improved competitiveness of French automotive industry – HORIBA’s way of investment and management

16. About HORIBA HORIBA in France Cultural difference Adaptation to France Suggestion  Explore the potential market  Explore synergy potential  Know the culture of your target  Business expertise)  Have external advisers (legal, financial & tax, etc)  Optimize the local talents  Honor the cultural differences  Leverage the synergy  Develop company’s global culture & mindset  Integrate the organization’s culture  The French Government should develop ‘mode of entry’ guide-book to assist diverse potential investors  The Government should also focus on assisting local companies to develop their competitiveness PastPresent Future FRENCH COMPETITIVENESS Before coming to FranceOperation In FranceFuture investment Implication and Suggestion

17. About HORIBA HORIBA in France Cultural difference Adaptation to France Suggestion Special thanks to… Senior Corporate officer Monsieur Atsushi NAKAMINE Fireuteur des Opérations Monsieur Claude MENGELLE Accountant Monsieur Naoki OKADA The interview was conducted at HORIBA Jobin Yvon, 22th April 2009

18. About HORIBA HORIBA in France Cultural difference Adaptation to France Suggestion Contacts Mizuhiko FUJIE miz.fujie@gmail.com 4-20-5-1105, Koishikawa, Bunkyo-ku, Tokyo, Japan 112-0002 Oni BROTOSENO oniseno@yahoo.com Jl. Pinang Merah Raya No. 15, Bogor – Indonesia 16313 Nurkholis MAJID meimajid@gmail.com 12A, Jl. Ligar Elok, Bukit Ligar, Bandung, Indonesia 40191