HORIBA, Best in France

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

2. About HORIBA HORIBA in France Cultural difference Adaptation to France Suggestion HORIBA Company

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

4. About HORIBA HORIBA in France Cultural difference Adaptation to France Suggestion Products & Customer HORIBAABX HORIBAJobin Yvon

5. About HORIBA HORIBA in France Cultural difference Adaptation to France Suggestion Why HORIBA came to France ? Partnership in distribution • ABX / Jobin Yvon • Looking for an industry partner • Performing in potential market • Aspiration for R&D • HORIBA • Looking for opportunities to grow • Transformation from product oriented to market oriented • Strong R&D 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. About HORIBA HORIBA in France Cultural difference Adaptation to France Suggestion Differences between Japan and France • 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 • Generalist oriented vs. Specialist oriented • Collectivism vs. Individualism • Define the goal: “What is your strategy, Alex?” • Think or Act

8. About HORIBA HORIBA in France Cultural difference Adaptation to France Suggestion Differences between Japan and France 1. Generalist oriented vs. Specialist oriented • 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

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

10. About HORIBA HORIBA in France Cultural difference Adaptation to France Suggestion Differences between Japan and France 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?

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

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

13. About HORIBA HORIBA in France Cultural difference Adaptation to France Suggestion Adaptation to France and International Environment 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

14. About HORIBA HORIBA in France Cultural difference Adaptation to France Suggestion Adaptation to France and International Environment 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 HORIBA J.Y. HORIBA Japan HORIBA ABX @horiba.co.jp @abx.fr ERP @horiba.com

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 Implication and Suggestion Past Present Future Before coming to France Operation In France Future investment • 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 FRENCH COMPETITIVENESS

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