Intentia in France Best in France Case Study June 13, 2005

1. Intentia in France Best in France Case Study June 13, 2005 Alexandre Berthier Vesselina Popova Bettina Freie Adel Benazzouz Michelle Labarthe

2. Executive Overview • Intentia Business • Company Products and Clients • Why did Intentia Come to France? • Constraints in France • Adaptation to France • Key Constraint Costs • Key Benefit Numbers

3. Intentia Business • Company Products and Clients • Why did Intentia Come to France? • Constraints in France • Adaptation to France • Key Constraint Costs • Key Benefit Numbers

4. The Intentia Proposition Intentia is the intelligent choice for organizations that operate in complex supply chains with resource constraints and want to improve the way they make,move and maintain their products. • 100% of resources are dedicated to this market • 100% of software is designed for this market • 100% of experience is in servicing this market Intentia customers benefit from over 20 years M3 enterprise sector experience, a modern technology infrastructure and a supplier committed to delivering value every time.

5. Company Objectives • To provide enterprise wide software and service solutions to M3 businesses that enable them to compete more effectively, increase their productivity, and grow their businesses profitably. • To become the leading provider of enterprise applications for M3 businesses in targeted geographies and specific industries. To achieve these objectives via a planned expansion of organic growth and acquisitions with profitable operating performance

6. Intentia Positioning • Make, move, maintain (M3) activities • Flexible, M3 prepackaged solutions • Resource-constrained organizations • Complex business processes • Make it happen, every time • Financially stable supplier • 20 years of experience • Modern technology

7. Company Strategy • To continue to deliver increasing value and superior service to their existing customers • To focus new business resources on those industries, geographies, and channels to market with the greatest potential (e.g., France) • To continue to invest 12–15 percent of total revenues in development to maintain technological leadership

8. Strategy Plan: Three Phases Profit Growth Market Share 2004 Stay in the game Play the game  time Win the game

9. Goals for 2005 • Increase of operating profit by end of 2005 • Target best-in-class across all key metrics • Grow in 2005 in comparison to 2004 • Create a world-class company with outstanding people • Become an M3 leader within specific industries

10. Intentia International AB • Created in Stockholm,1984 • Turnover of €330.7 million in 2004 • Curent Market Capitalisation of €284.15 millions • 2371 Employees in 40 Countries • More than 3000 CustomersWorldwide SIN: SE0000349243     Ticker: INT-B     Sector DJ: Tech – Software Market Cap based on close price on 06/07/2005 of 15.5SEK  

11. Revenues by Region On a regional basis, Europe accounted for more than 80% of total revenues, and Asia Pacific accounted for approximately 14% of total revenues, up from 12% in 2003.

12. Market Share from Sales in France 2003

13. Strong turnaround in 2004 • New investors injected over $85 million • New senior management team CEO, CFO, CMO • Strengthened Board : Romesh Wadhwani (Symphony), • Paul Wahl ( ex Siebel and SAP) • Strong cash position of $70 million (Q3 2004) • Solid equity to asset ratio of 33% (Q3 2004) • Positive EBITDA (Q3 2004)

14. Stronger Financial Position Intentia begins 2005 in a much stronger financial position as a result of improved operating performance and a SEK 205.6 million increase in cash.

15. Key Performance Indicators In the fourth quarter of 2004 all key performance indicators were at their highest levels in eight quarters

16. Efficiency Measures Even Q3, traditionally the weakest quarter of the year, reports a positive EBITDA in 2004, adjusted for restructuring costs July–September SEK million 2004 2003 2002 Change in revenue per employee 13% -13% -15% Change in service cost and indirect expenses1) -7% -16% -5% Service margin 1) 16% 3% 16% EBITDA 1) 4 -28 -30 1)2004 figures before restructuring charges for comparison

17. Strong Shareholder Base, SharesVision and Long-Term View Four major shareholders at the end of September 2004 hold more than 40 percent of Intentia’s capital Stockholders Percentage of Capital Symphony Technology Group 24.9 Tennenbaum Capital Partners 11.4 Eureka Funds 6.4 Total three major owners 42.7

18. Intentia Business • Company Products and Clients • Why did Intentia Come to France? • Constraints in France • Adaptation to France • Key Constraint Costs • Key Benefit Numbers

19. More than 4000 clients around the world Some Examples

20. More than 300 clients in France Some examples

21. Distribution Professional Wholesale FMCG Distribution Fashion High Fashion Contract Manufacturer, Cut and Sew Design, Source and Distribute Asset and Maintenance Field Service Depot Service Enterprise Asset Management Third-Party EAM Food and Beverage Meat and Poultry Dairy Fresh Fruit and Vegetables Bakery Customer Industry Sector Detail

22. Intentia Business • Company Products and Clients • Why did Intentia Come to France? • Constraints in France • Adaptation to France • Key Constraint Costs • Key Benefit Numbers

23. International Strategy • Presence in 40 countries covering 5 continents • Growth by acquisitions (Europe) or build from scratch (Asia) • Southern Europe is managed from France • Intentia France represents 18.3% of the group’s total sales in 2003  Significant potential justifying a French presence • Launch of R&D offshore in India to produce at lower costs plus a new customer support center (in 2005)  Partnership with IBM and Symphony • Increase of the number of dedicated people to those activities without increasing costs associated • R&D internal department will still conduct the high-added value work • Reduction of staff in Scandinavia

24. Intentia in Southern Europe More than 550 employees in southern Europe : 25 Solutions Managers 300 Technical Consultants 15 Developers 50 I-Support Consultants (hot-line) • Madrid 560 Customers Generating 19% of group’s total sales in 2004

25. Intentia International Bertrand Sciard, Chief Executive Officer Chief Financial Officer Arthur Gitajn Executive Vice President Johan Berg General Counsel Niklas Björkqvist Chief Information Officer Malin Laudon Human Resources Claes Bille Chief Marketing Officer Allan Davies Research & Development Americas Europe, Middle East and Africa (EMEA) Franck Cohen Asia ANZ IRD Henrik Billgren Americas David Rode Northern Europe Markus Jakobson Central Europe Cormac Watters Southern Europe René Samama Asia David Hope Australia/ New Zealand Linus Parker

26. Organisational Chart of Intentia Southern Europe Vincent Courtier Odile Rouxel Agnès Bravo Alain Roche Joan Sole Marc Houx OFFICE SUPPORT France, Belgique Francophone, Suisse Francophone,Italie Espagne, Portugal Directeur New Business Fréderic Champalbert Directeur Account Management Renaud Vadon Directeur New Business Jordi Salvador Directeur Account Management Jordi Salvador Directeur Services Jordi Salvador HW France Patrick Benittah

27. Intentia Business • Company Products and Clients • Why did Intentia Come to France? • Constraints in France • Adaptation to France • Key Constraint Costs • Key Benefit Numbers

28. Constraints in France • The previous company GTI was more a family run business thus cultural adaptations had to be made (procedures, strong focus on P&L) • Although the rumor says social protection is very much important in France, it actually costs less to fire someone compared to EU countries • France: 1/3 month of salary per year of employment within the company • Italy: 1 month of salary per year of employment within the company • Portugal and Spain: between 1.5 and 3 months of salary per year of employment within the company • Until recently no partnership (vs. SAP for example) so clear lack of resources in France

29. Intentia Business • Company Products and Clients • Why did Intentia Come to France? • Constraints in France • Adaptation to France • Key Constraint Costs • Key Benefit Numbers

30. Recruitment and Selection • High tech company means two ways of recruiting: • Directly by the HR department which is the most common approach • With the help of an external consulting firm for very specialized technical profiles, sales persons and management (hunting) • Although there is no assessment center, each candidate has to pass an English test –oral and written • Each selected candidate must receive approval from upper management  total number of employees is under control at the company level • No recruitment problems due to the high level of the French education system • Before: young graduates, internal and external mobility, learning on-the-job • Now: industrialization and standardization

31. Compensation • Profit-sharing scheme divided in two parts • French law says that above 50 employees it is mandatory to share parts of the profits (aka Participation). The company has no power on the split. • Another part can represent 2 to 3 months of salary and is totally in the hands of Intentia regarding the split, the amount etc…(aka Interessement). It’s however a company agreement. • On top of the usual insurance coverage (Social Security), an additional insurance (mutuelle) is added to even better cover medical reimbursements • Laptops and cell phones for everyone • 5 weeks of vacation for everyone plus 12 days due to the 35-hour week (2005 numbers) • Maternity and paternity leave, renting aid, heavy home work aid

32. Compensation Key Figures • Salary increases always follow the path: recommendation by managers  approval by France steering committee  approval by the group • Costs are controlled at a group level

33. The Award Program • One of the top 10 reasons most cited by employees when leaving companies is their perception that the company did not recognise and value his/her performance and contribution. • It is an important human need to know one’s contribution is valued. • Compensation plans are an important element in awarding performance but they also have some drawbacks: • They lack immediacy as they are based on performance over a defined period, usually a year. • Do not account for the ongoing incidents of good performance. • Comp plans are structured and formal and can lack the personal element. • Monetary awards are not the only tool in recognising performance and contribution. • Two key principles underpinning their Total Rewards philosophy are the desire to retain the best and to recognise performance and contribution. An Award program is an additional tool to deliver on these principles.

34. Why Have an Award Program? • Award programs are about the recognition of performance and contribution. • They range from the informal verbal recognition of a job well done to the more formal giving of a tangible non monetary award. • The ultimate objective of an Award program is to engender an inherent culture where strong performance and contribution is recognised and celebrated. • This culture should encompass both the purely verbal recognition as well as the tangible award. • The motivational factors of knowing one is valued and appreciated cannot be underestimated. • The Award program can become a very important and potent tool for management

35. Considerations • The Award program should articulate and reflect the underlying principles. That is, creating a culture where performance is recognised. • It should be immediate. In other words, the recognition, be it verbal or a more formal award, should be given as close as possible to the event that triggered it. • The program should be simple and clear. • The awards should be non-monetary. • Reinforce the principle that recognition of a job well done is not dependent on the giving of a tangible award. A verbal thank you can be as meaningful as a tangible award. • For higher levels of contribution and performance public recognition and celebration are important to the individual concerned and demonstrates to others the behaviours and actions that are valued by Intentia.

36. Perfect Partner Award (‘On the Spot’) • The purpose of this award is to enable management to immediately recognise and commend behaviours and actions that support the achievement of business objectives.Underlying principles: • Immediate • Local management ownership • Highlights and reinforces the behaviours that drive Intentia’s success. • Employees can nominate colleagues • The level of the award should be nominal e.g. • Verbal or written recognition of the individual and the behaviour/action • Intentia merchandise e.g. t-shirts, bags, etc • Each Business Group (BG, e.g. Southern Europe) would need to determine the appropriate award type

37. Successful Project Completion - Award • On completion of every project a review will be conducted, by management, to determine the success of the project in terms of: • Financials (revenue and variance) • Project quality • Customer satisfaction (customer feedback) • For projects deemed successful, all project participants, along with their spouses, will be taken to dinner by Intentia. • This provision of the Award program also applies to IRD projects.

38. New Deal Celebration • Each and every new deal should be celebrated at the BU level. • Diploma • Bottle of Champagne. • Permanent memento. • Any deal above €500k in licence revenue should be celebrated at the BG level. • Diploma • Gift Presented by the BG Manager • All BUs should be encouraged to recognise the sale. • Article on the BG Wire homepage • Any deal above €1m should be recognised at the GO level. • Diploma • Gift presented by GO Sales Director. • Deal recognised globally on the Wire (personalised)

39. BG Specific Initiative • From time to time BGs will introduce a specific business initiative to improve business performance. • In many cases successful achievement of such initiatives may be handled as Strategic Objectives within the comp plans. • However, this may not always be appropriate or desireable. • In such cases it may make sense to include the initiative within the context of the overall Award program. • Any awards provided must be consistent with the standard awards provided under the program.

40. Top Performers Award • Annual event for the company very top performers in all functional areas: • Sales • Services • IRD • Corporate Services • Also a number of wild card nominations

41. Communication • In the giving of an award how it is communicated to the individual has an important bearing on how the individual perceives the award and the level of pride/satisfaction they take in it. • Communication to the wider population is also very important: • Individuals will know that their contribution has been publicised and recognised across the organisation. • Allows others to celebrate success and congratulate those who have been awarded. • It is an opportunity to reinforce the behaviours and actions that management require. • The Awards given for successful project completion and New Deals will be published on the Wire on a monthly basis. • The Perfect Partner Awards and any BG Initiative award will be published on the BG Wire page.

42. Training • Mostly done internally for most technical subjects by the Intentia University • Training standardized within the group • Trainings are conducted locally, but more specialized ones might take place in other countries • Special trainings such as languages or supply chain management are done by external companies • Training represents 5% of the total personnel costs of the French subsidiary • Training subjects examples: Movex Operations, Movex Finance, Movex for Beginners, Java, API Programming, Source Code

43. Evaluation Objectives (excerpt from original HR documents) « Objectif L’objectif de l’entretien de fin d’année est de : • Définir un profil structuré de vos compétences, opportunités d’évolution et domaines dans lesquels une formation vous serait utile. • Établir des objectifs à court et long terme • Satisfaire les besoins de l’entreprise en personnel compétent • Créer une relation ouverte et confiante entre vous et votre responsable. • Procurer au responsable un feed-back sur son style de management et exprimer vos attentes vis-à-vis de ce responsable • Évaluer les objectifs de l’an dernier et vos performances. »

44. Intentia Business • Company Products and Clients • Why did Intentia Come to France? • Constraints in France • Adaptation to France • Key Constraint Costs • Key Benefit Numbers

45. Hiring • Intentia expands through organic growth and acquisitions. It came to France through acquiring the French company GTI in 1995. This acquisition reduced the costs incurred when a business is built from scratch in a new country and after it started the hiring of new labour force related to the development of the main activityof the French office – sales. • The hiring costs include publishing of announcements for job positions in news papers and internet. • When recruitment of personnel for high managerial positions is demanded, the company uses hunting.

46. Payment • Salaries. The major part of the expenses of Intentia are the salaries of the employees. In terms of salaries the costs are higher than in other countries from Southern Europe. • For comparison we are showing the average salary of a business consultant including VC + Social costs • Note: The salary in a small structure is significantly higher as there is one employee in charge of the business development of the office  more experienced staff (salaries are comparable to France) • Bonuses. Each year the employees receive the amount of 2 to 3 monthly gross salaries as additional compensation for their contribution to the profits that the company have realized. This is only true for France.

47. Payment • Social security charges. The socialsecurity charges that the company pays to the state for each employee in France are one of the highest in Europe. • Royalties. The function of the French office is to distribute the products which are developed in Sweden. Thus, it pays more than half a product price of royalties to the Swedish office.

48. Training • A major input, tightly related to the performance of the office is the employees’ up-to-date knowledge.Intentia allocates 5% of the total gross salary of an employee for training. • Due to the nature of the products, the company uses internal training system for technical staff and sales force. Some employees are trained to be trainers later on. • External training systems are also available. For example – leadership programs. • The compensation that the company offers upon dismissing is one-third monthly salary. For comparison in Spain this number is 1,5 month, and in Portugal between 1,5 and 3 months Dismissing

49. Communication • English is the official language in Intentia and employees are expected to be operational in it. During the job interviews every candidate passes a mandatory English language test. • Cultural differences. The HR department considers that there are not major cultural differences between the management in the different offices and there is exchange of people between the offices. • Centralization. The policy of the company is directed toward centralization, but according to its managers the procedures are much less rigid than in other similar companies and the formalization and justification of expenses are much more flexible. • Products. All products are translated in the language of the country in which they are sold.

50. Integration of the French Managers Into The Organization • Bertrand Sciard became a CEO of Intentia International in Sweden when Bjorn Algkvist, the former CEO of the group decided to concentrate on the strategy of the company as a shareholder • Bertrand Sciard has rich experience acquired as an Executive VP of GEAC, responsible for the activities in the regions of Europe, Middle East, Africa and Asia Pacific, as a CEO of Presys and after occupying different positions at IBM