• Highly efficient geo-diversified business with optimum global scale of operations in Color Picture Tubes and Display Device Business with production facilities
  • for Flat tubes
  • for Slim tubes
  • Flat Panel Display devices
  • glass for panels
• Sourcing of R & D/technology from Japan/Korea
• Sourcing of R & D personnel from all over the world
• Spend on capex and/or development expenditure amount of €300m in next 5 years on above (includes likely capex on Flat Panel Display Devices, in addition to the proposed capex as mentioned in Thomson Mid Term Plan)

• Stop all curved CPT production
• Shift to 100% True Flat as soon as possible; target: by December 2005
• Launch Slim 21” and focus Slim 29” immediately. Target is to have almost all CRTs production shifted to Slim by 2007
• Take full advantage of Digital and HDTV revolution, gain leadership in HDTV Slim TV segment through OEM and model mix worldwide strategy.
• Study unique product range / prolarge to fill market gaps in markets such as Asia and Eastern Europe / CIS / South America
• Focus on reduction of costs through reduction of glass, shift to AK mask and reduction of process rejection

• Improve relationship with existing clients ; Use of Thomson’s excellent relations as preferred supplier to maximize sales
• Improve service and quality without putting pressure on price structure
• Fetch a better price and avoid crisis of huge stock.
• Leverage Slim product offering
• Launch end 2006 / beginning 2007 of LCD panels assembly to be a major actor of the Flat Panel Displays market (which is expected to account for 50% of the market by 2012).
• Benefit from OEM CTV business with the help of Videocon’s CTV division, invest for new models, introduction of new technologies.

• Consider improvement in production lines set-up: investments, line speed up / mergers ? Target is to increase output and decrease product costs by increasing productivity of existing lines
• This will reduce manpower and overheads per picture tube by 30% that will be redeployed on new activities in the sites (new technologies)
• Improve the furnace output in the Poland Glass factory by making some changes into furnaces including electrical boosting. Consider increasing capacity through one more furnace.
• t is envisaged that 100m€ will be invested in the next 2 years for this purpose
• Expand into LCD panels back-end assembly (from buying LCD arrays from big suppliers like LG, SDI, CMO, AUO, Sharp)

• Leverage the strong base of Videocon’s glass business (25 million pieces of glass by end 2006): Thomson-Videocon partnership will have a very strong negotiation position and can reduce impact of glass pricing volatility
• Reduce production cost by upgrading and improving the production lines. Thomson-Videocon partnership will have its own base of additional 4 million units CTV (other than India)
• Necessary to rationalize R & D efforts, necessary to make its cost below 1.5% of sales

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