Modelabs Group1Our market ModeLabs Group: Customized Design Manufacturer Activities Future prospects AppendicesSummary2Our market3Progressive shift of value perceived by consumerPerformanceTimeTechological InnovationTechnological innovation exceeds utility of the average userUtility 6 63;6150.998.9213.52006200620052004200310our technological capacityGraph 80 R&D engineers on December 31, 2006 Research in style and ergonomics (several mechanical and software patents) Development of a unique know-how on Up-market products, with specific processes and a network of qualified suppliers for the processing of materials (sapphire, leather, metals, ceramic) Development of a team of designers in Paris and London With the acquisition of Innovi Technologies Ltd. (in May 06), ModeLabs Group became a major player in the development of Bluetooth solutions The X2 Bluetooth hands-free headset and the ST1 stereo headsets from Bluetrek were prize-winners at the Consumer Electronics Show at Las Vegas (Innovations Design and Engineering Awards 2007)11ModeLabs GroupKey figures+ 7 million products (Accessories & Mobiles) were delivered and sold in 2006274 employees Of which 80 in R&DOne of the largest producers of Bluetooth headsetsLargest independent distribution network (BtoB)Strong profitability since its creationBreakdown of revenueInternationalFranceEuropeRest of the world49.5%50.5%200678%22%27%2%71%2006HandsetsAccessoriesServices12ModeLabs GroupInternational presenceEurope HQ in France - Paris, subsidiaries and offices in Italy, UK, Spain, Netherlands, Poland, Asia China Shanghai, Shenzhen, Hong KongAmerica US San DiegoOperating in 3 continentsAsia Hong KongChina ShanghaiUS Los AngelesChina - ShenzhenFranceU.K.ItalySpain13Activities14Innovation- Creation of disruptive concepts combining technology, usage and style- Several patents invented since 1996 in software, Bluetooth, mechanics, Creation- Market research & customer survey- Usage & lifestyle segmentation- Customer proposition (mobile, accessory, service & mix marketing)- Portfolio management- Senior product marketing team (telecom & luxury)Design- Global design approach from product to merchandizing- Designer team based in Paris & London- In-depth knowledge in working with premium brands (values & territory of brand, materials, colours, mechanics, ergonomics) with lot of atttention to detailsConcept & Design create unique product to fit individual needs 15DevelopmentTeam of 80 R&D engineers based in Paris and Hong KongResponsive leadtime from 6 to 12 months according to product definitionIn-house engineers (Paris, Los Angeles, Hong Kong, Shenzen) to manage global project from design-concept to productionSourcingPermanent market screening and qualification for new materials - mineral, sapphire glass - leather, rubber, wood - titanium, silver, goldUnique relationship with high standard manufactures (Asia & Europe)Dedicated team based in Asia and EuropeIndustrializationQualification of best partners for assembly and respect of upper quality standards for premium productsExclusive agreement with factory (France, Europe and Asia) to assembly premium productsProduct Development & Industrialization combining the best from both world 16Product made for lasting several yearsHighest quality tests in - RF, audio and connectics performance - drop impact - aging processQuality engineers and technicians present at every stage of the development, production and delivery chainQuality accept only the highest standards 17Marketing & Distribution deliver a self valuable customer experience Communicate with styleMerchandizing dedicated to Brand aspiration and visible/large display to demonstrate all variants of productsSales force and retailers trained with high level of knowledge about the Brand and ProductsPrestige PR programme and events implemented worldwideSelective distributionThousands PoS qualifyied worldwide to sell premium mobile phones and accessories - mass and telecom stores - multi-brand fashion stores - on-line Brand store - watch & jewelry - Concept store & Duty freeDedicated sales team to visit, train and control PoSExclusive agreements with partners in Europe, Asia and AmericaMarketing & Distribution deliver a self valuable customer experience 18LogisticsCentral wharehouse to serve every PoS per key region - Europe (France), - Asia (China), - America (US)Avanced IT system to monitor supply & demand in real timeCapability to deliver goods per unit either PoS or customer whereverAfter SalesQualified partners to repair premium mobile phones in every region (Europe, Asia, America)Spare piece and inventory management Hotline Level 1 & 2Custom solution on demandLogistics & After Sales custom solutions for demanding partners 19ActivitiesOn Demand20MyWAY Fashion MobilesMyWAY products up there with the trendsMW100 The smallest phone camera MW200 The first flip-up MW Al