ASIA

Whats

Rockin?

OPTIMISM IN ASIA The integration is on track

How are things going in Asia?

Team building was one of the main purposes of a seminar for the new management team in Rockwool Asia. Here the team has just nished a team building task. Our CEO Eelco van Heel and Systems Division Director Henrik Frank Nielsen both participated and spent three days at a seminar to build relations. The seminar took place in the Get an inside update from a handful of Phuket, Thailand in a relaxed atmosphere to facilitate relationship building people who are working towards the integration which is absolutely crucial to doing business in Asia.

of the CSR and Rockwool organizations.

Although we are only a few months into the massive task of integrating our two Asian organisations, there is good reason to be optimistic. This is the message from a handful of the people deeply involved. One of them is Henrik Frank Nielsen, Systems Division Managing Director, who has the overall responsibility for the acquisition. He says: The integration takes time and patience but we have come far already. Until mid-2011 we will remain focused on the integration process and on keeping the existing business on track. However, already in the second half of the year we expect to start developing the business.

EDITOR'S NOTE
What a month! As you all know our integration is currently in full swing, and in this issue we tackle some of the matters facing our integration. Any integration de nitely comes with a certain degree of change. One of the topics that we want to highlight in this issue is the not-entirely-new, but still vital, topic of branding. Branding can be a bit of a tricky concept at times and we try to explain it in the easiest way possible. Group IT is also another key feature this week as we explain its role and how it bene ts us all. Whats more, we explore the art of lobbying where legislation and policy plays a vital part in our business. March 2011

INDIVIDUALLY, WE ARE ONE DROP. TOGETHER, WE ARE AN OCEAN.

So ip through these pages and keep up-to-date with Rockwool. We hope you enjoy. If you have any feedback on this issue or comments on how we can make Lets Rock even better, wed love to hear from you. Please feel free to send your thoughts to: prema.chelliah@rockwool.com Regards,

PREMA CHELLIAH
HR Director Rockwool Asia

Henrik Frank Nielsen, Division MD, Systems Division Rockwool Group:

Asia is not just Asia

Even together, the Rockwool Group and CSR cover only a small part of the entire market. So there is still a lot to conquer. However, we have learned from our years in Malaysia that it is extremely important to focus our approach instead of going for the entire market all at once and end up going in all directions at the same time. We also have to be very aware that Asia has more cultures and nationalities than Europe and is even more diverse. Just within Rockwool Asia, we have more than 15 nationalities. We must understand the di erences between the cultures and not just consider Asia one big market.

A Head Start

Thomas Heldgaard, responsible for the integration project, says:

Last year we spent time planning and preparing the integration even before the nal contract was signed in December. This gave us a head start and has already made it possible to implement some integration projects in the rst quarter. Johan Bayer, RI HR Director, who is stationed in Malaysia to help with the HR integration, says: Overall the integration is going really well. There is an extreme willingness to learn and a lot of curiosity about the Rockwool business.

Does not happen overnight

The outside world will soon notice a change: We are allowed to use the CSR brand until the end of June so the switch-over of all packaging and marketing to the Roxul brand is not far away. But the integration wont happen overnight. Thomas Heldgaard says: While the hard integration of business systems such as IT is well underway, the soft integration is a much longer process. So there are still a lot of issues to address. Johan Bayer says: It really is not any di erent from other company mergers. There will always be emotions and a natural instinct to resist change so of course it takes time and puts pressure on the managers to handle people issues the best way possible.

New regional organisation

The key priority right now is to establish a new regional structure with a new management team led by Managing Director Je Wilcox.

As a consequence, for instance Phil Sweeneys job has changed signi cantly. Phil used to be Technical Director of our factory in Malaysia, but now his job also covers the former CSR factories including one in Malaysia, one in China and one in Thailand. He says: On paper, the former Asian Rockwool organisation of +100 people acquired +800 people from CSR which of course is a challenge. We must keep the good stu from both sides to improve the overall performance of the company. With that being said, I think that the integration has turned out not to be as di cult as we might have feared, thanks to the many similarities between the two organisations and great support from RI.

ISSUE

IN THIS

Optimism in Asia: The integration is on track Branding Group IT Public Affairs Happening updates

Learning going both ways

Phil Sweeney is impressed by the fact that all of CSRs factories are accident-free. He says: Even though the Rockwool technology is more advanced, we are learning a lot from CSR. One example is the accident-free factories; another is the great understanding of teamwork that CSR brings to the table.

Ron Pickering, who after 15 years with CSR is now Business Director of Rockwool Asia for China & North Asia, says:

Once competitor, now colleagues

We used to be competitors and now we work together. But since the values of CSR and the Rockwool Group are pretty much in line, there was mutual respect even while we were competing. Now this respect has grown all the more and I think that is the reason why we quickly have been able to put emotions aside.

Learning and challengers

Finding the right balance

Phil Sweeney, Technical Director, Rockwool Asia: With regard to production technology, we have to strike the right balance for what is necessary in Asia. We do not need the high-end equipment yet. Instead we have to nd the little tweaks that can increase the e ciency at our new factories.

Christopher Skouenborg, Regional Controlling Manager, Rockwool Asia: With the important challenges ahead of us, it is important to focus on customer service, motivation and value for money. Big invoices from RI can be de-motivating if the value is not absolutely clear and appreciated by the local people, who may initially feel they can get the same service locally for a fraction of the price. So it is crucial to remain focused on enhanced customer understanding internally as well as externally. Johan Bayer, RI HR Director, currently in Malaysia: During my time here I have learned a lot about how we in RI can get better at understanding to which degree we can place demands on our operating companies. It is about understanding their reality before we start changing things. Phil Sweeney: Part of Rock the Globe looks as if it is taken directly from Asia. Particularly when it comes to the new values - entrepreneurship and passion - because that is what business is all about in Asia. The way people build customer relations here and their willingness to learn and grow is a true source of inspiration for the entire Group.

Rock the Globe fits perfectly

Lets learn
Henrik, Thomas, Johan, Christopher, Phil and Ron, who have given input for this article, point out three leanings they have all done in Asia: 1. Asians in business have a fantastic ability to act and make things happen. Their commercial instinct is extreme and people exercise true entrepreneurship. Even though entrepreneurship and passion are thriving, one still has to be patient to operate in Asia. First and foremost, you have to spend time building relationships, but once you have done that the results will soon start showing. Awareness of the concept of face and the importance of dignity is extremely important. Never make someone embarrassed in front of others; you will never win your credibility back.

The big picture

BRANDING

The ROCKIN Story Rockwool International, Roxul Asia & CSR in Asia.
Both CSR in Asia and Roxul Asia were well-known and established companies in the Asian region with strong market presence and customer base. With this in mind and the opportunity to expand upon its existing platform in South East Asia and establish a bridgehead in China, Rockwool International in Denmark (the parent company of Roxul Asia) acquired CSRs Asian businesses. It was a natural progression to merge both these successful organizations and form an even bigger, stronger powerhouse under the banner of Rockwool Asia.

Rockwool International (RI) (Denmark) CSR Asian Business (Acquired by RI)

Roxul Asia (Already owned by RI)

Merging both the companies Its Brand Value & People Roxul Brand Value Rockwool ASIA Rockwool Asia is all the companies owned by RI that are located in Asia RW ASIA Brand Value CSR Brand Value

Roxul Product Brand

RW ASIA Companies

Our Brand and Company Name

Rockwool Asia refers to all of us as a group of companies in Asia. Under the banner of Rockwool Asia, it was decided that the products would be branded as Roxul and the names of the companies would be changed to better re ect our new identity. E.g. Roxul Asia Sdn. Bhd. was changed to Rockwool Malaysia Sdn Bhd and CSR South East Asia Pte. Ltd. to Rockwool Building Materials (Singapore) Pte. Ltd. The merging of both companies brought together the strength and value of two established brands, CSR and Roxul. Rockwool Asia today is able to build further upon these brand values and create a strong foundation for the future of the company.

The Brand Launch

We are currently getting ready to launch the Rockwool Asia organization and Roxul brand internally among our colleagues and externally to the market. The launch will include the presentation of our brand, what it stands for and how it is visually seen in materials such as name cards, signage, product data sheets, product packaging, etc. We are now in the midst of brie ng key personnel directly involved in the launching to prepare them for these events. The Internal launch (end April - early May) will be done at various factory sites within Asia. All employees will be participating in pre-arranged sessions to be announced later.

The External Launch (end of May to early June) will be done at selected venues where
Rockwool Asia is present. The external launch will be for our partners, customers, government o cials, professional bodies and the media.

Internally the launch will help us to better understand our brand and its value to us and our customers.
After all, we are all brand ambassadors and the customers experience of the company and the brand is through us. So, we all need to know what we should deliver in terms of performance, customer service, quality and reliability to the market.

Externally the launch is to share with the outside world who we are as a company, the value we bring to
our partners and customers, our people and our o erings to the market.

GROUP IT
Group IT is the Rockwool Groups global IT organisation and covers today all OPCOs except RX-NA. Group IT currently has 116 employees in 12 countries, and divided into 17 di erent locations. The global structure means that we are able to provide both local support as well as pro t from synergies by cooperating globally. In Group IT, it is our mission to be a trusted partner, who supports the Rockwool business by supplying reliable IT services in order to provide competitive advantages. We want to achieve this mission by creating Group standards for our infrastructure as well as business applications. We are organised in competence centres having global responsibilities within their speci c areas.
RockKnow RockService
Key Account Managers IT & Bussiness/ OPCO Interface

Interface to Users

Provides a single platform for information collaboration

Rockinfo

Business Intelligence Provide reports & ad-hoc analysis

Information Security Develops standard security policies

GROUP IT
RockBis Provides business process (factory, HR, Admin) management via SAP

IT Operations (ITO) Provieds backend service, servers,network etc.

RockSam Provides single CRM platform

RockFact Setup of standard labeling software for e.g. Barcode etc.

Speci c details of the competence center can be found on the intranet.

Group IT in Asia

The Rockwool Group made its rst acquisition in Malaysia in the year 2000. However, Malaysia has not been an o cial member of Group IT before the acquisition of the CSR factory in 2010, where Group IT strengthened its presence in Asia by introducing a Shared Service Center based in Bukit Raja, Selangor, Malaysia. With an ever-expanding business presence in Asia, IT needs to be where the business is to ful l service requirements.

Today, when an IT problem is reported, it gets resolved at any RockService o ce around the globe. The Asia hub further helps facilitate this as it increases the speed of processing requests and expands the opening hours of RockService globally due to the di erences in time zones. This ensures timely and e cient delivery of IT services to all users globally. Furthermore, RockService in Asia provides local support to factories and o ces in Asia. The Asia hub has 2 servicing arms: 1. RockService - provides IT services regionally and globally. 2. Global Shared Service Centre (GSSC) - hosting of engineers from other competence centers serving the global infrastructure setup. The hub as a team will deliver to meet the Group IT and business objectives.
Global Shared Services & Regional IT Manager - Prakash Rao Regional IT Manager (RockService Asia)

Prakash Rao
IT Shared Services & Regional IT Manager RockService, Group IT

Global Shared Services

Infrastructure Specialists - Megat Mohamad - Kenny Infrastructure Engineers - Alvin Chan - Austin Phuah - (vacant) SharePoint/SQL Specialist - (vacant) - (vacant)

RockService Global & Regional Focus -Regional Operations Mgr (vacant) (Bkt Raja - Malaysia) - Chong Yoon Whay (Melaka - Malaysia) - Darshan Patel (Gujerat - India) - Haris Ghazali (Bkt Raja - Malaysia) - Daniel He (Guangzhou - China) - (vacant) (Bkt Raja - Malaysia)

Functional Managers

Software Administrator - (vacant)

Erry and Fadrin (currently based in Bukit Raja, Malaysia) will be concentrating their deliverables on the Genesis Project while the transitioning process to Group IT takes place which will be announced at a later date. During this period support for business speci c applications such as Promix, Proclarity and Crystal will be managed by Erry and Fadrin as per current processes referencing to Terrence Yong. To secure that each OPCO has a single point of contact to Group IT for handling issues, planning of projects etc., a Key Account Manager is appointed. For RW-Asia the KAM is Keith Bollington. Equally, the OPCO appoints a contact person for Group IT, which for RW-Asia is Terrence Yong. This set-up has proven e cient to support the communication between the business and Group IT.

PUBLIC AFFAIRS
What we mean by Public Affairs
What Rockwool calls Public A airs is the art of lobbying, where we try to support the development of legislation that best supports our Rockwool Asia mission to protect life and sustain the environment by making buildings re safe, energy e cient and comfortable.

Erik Gielen & Jessica Bao This means that we will push for re safety legislation or better energy performance requirements for buildings. We are also working to have accepted government (or industry) standards for stone wool. With such standards, this stone wool products need to meet certain quality requirements before they can be sold in the market. This will prevent low quality products coming into the market and giving stone wool a bad name.
The only real reason for use of stone wool on a large scale (either for energy e ciency purpose or for re safety) is when law requires it. Therefore, in order to improve our market, it makes sense to improve the legislation.

How do we increase our market share through Public Affairs?

Interestingly, research in Europe shows that in the countries where we have been active in Public A airs, requirements for energy e ciency are higher and foam products have a much lower market share. Our ultimate goal is to help our business but seeing that many government objectives are the same as ours (protecting life by making buildings safe and preserving the environment through energy e ciency) there is no con ict.

Our government approach

Our modus operandi / How we function in Public Affairs.

In whatever we do, we conduct ourselves with honesty, trust and professionalism.

First we identify and understand the issues facing the government, mainly in the elds of energy e ciency and re safety. Once we fully understand these issues, we will contact the people that are working on the solution and o er our support. This support consists of sharing information and knowledge about our products, how they are used and how they perform. We also share knowledge about alternative solutions (like foam insulation) so the Government can make a well-informed choice. For instance, we always will be honest and the information we give is objective and based on facts. This means that for some applications we will explain that stone wool will not be the best solution to use. Of course we have to focus, as there are so many laws or standards that are interesting to develop. Typically, any development in legislation takes a long time - 3 to 5 years is no exception!

Our work is based on trust and if we misuse that trust once, it will be very hard to win it back. Possibly quote by Head of Public A airs
Its not only government that we focus on. We also engage industry leaders (for instance Developers or Architects) or anyone who supports positive development in our eld of interest. This includes NGOs that push for improvement of energy e ciency or reduction of green house gasses. Our plans and approach clearly show that were here for the long run and very much committed to the development and growth of Rockwool Asia. Public A airs is part of the Marketing & Business Development department. It is organised regionally, which means that we have developed a strategy for the whole of Rockwool Asia. Based on this strategy, we implement a local Action plan to adjust and adapt to the local situation. For instance, Fire safety has a very high priority in China right now, while for Malaysia Energy E ciency is higher on the agenda. Currently Malaysia is facing a problem with the sub standard insulation products ooding the country, most of which are imported. So far the responsible ministry has agreed to assist us in solving this problem and a committee has been established to look into this.

Our non-government approach

Our structure

The Public Affairs update from Malaysia.

The outcome and solution: an accepted standard for mineral wool insulation products. The whole process of getting this new standard established and accepted took around 32 months. The next step for the committee is to push for the standard to become mandatory which will mean that only allow mineral wool meeting the quali cations of the standard to be used in the country.

Faizul Bin Haji Ideris Manager, Norms, Standards and External Relations

HAPPENINGS

Thailand

Annual Dinner

Congratulations Rockwool Thailand! On 21st January 2011, Rockwool Thailand celebrated its Anniversary. Everyone was up for it and in the right spirit. There were lots of fun and games to entertain the team. Overall, everyone had a blast but the highlight of the evening was the strong feeling of being united as Rockwool Asia!