T h e i n t e g r a t i o n i s o n t r a c k

What’s Rockin?

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.”

OPTIMISM 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

Phuket, Thailand in a relaxed atmosphere to facilitate relationship building which is absolutely crucial to doing business in Asia.

How are things going in Asia?Get an inside update from a handful of people who are working towards the integration of the CSR and Rockwool organizations.

ASIA

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

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. What’s more, we explore the art of lobbying where legislation and policy plays a vital part in our business.

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 ‘Let’s Rock even better, we’d love to hear from you. Please feel free to send your thoughts to: prema.chelliah@rockwool.com

Regards,PREMA CHELLIAHHR DirectorRockwool Asia

EDITOR'S NOTE

March 2011

Optimism in Asia: The integration is on trackBrandingGroup ITPublic AffairsHappening updates

•••••

IN THISISSUE

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 nothappen overnight

New regionalorganisation

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 won’t 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.”

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 Sweeney’s 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.”

Henrik Frank Nielsen, Division MD, Systems DivisionRockwool Group:

“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.”

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.”

A Head Start

Asia is notjust Asia

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.”

Finding theright balance

Learninggoing both ways

Once competitor,now colleagues

Let’s learn

Phil Sweeney is impressed by the fact that all of CSR’s 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.”

Learning and challengers

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 haveto 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 infront of others; you will never win your credibility back.

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

“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.”

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.”

Rock the Globefits perfectly

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.”

BRANDING

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 CSR’s 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.

The big picture

Rockwool International (RI)(Denmark)

Merging both the companiesIts Brand Value & People

Rockwool ASIARockwool Asia is all the

companies owned by RI thatare located in Asia

RoxulProduct Brand

Roxul Brand Value RW ASIABrand Value

RW ASIACompanies

CSR Brand Value

Roxul Asia(Already owned by RI)

CSR Asian Business(Acquired by RI)

The ‘ROCKIN’ StoryRockwool International, Roxul Asia & CSR in Asia.

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.

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 employ-ees 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, profes-sional 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.

Our Brand and Company Name

The Brand Launch

GROUP IT

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

RockServiceInterface to Users

RockKnowProvides a single platform for informationcollaboration

RockinfoBusiness Intelligence -Provide reports & ad-hoc analysis

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

RockBisProvides business process(factory, HR, Admin)management via SAP

InformationSecurityDevelops standardsecurity policies

Key AccountManagersIT & Bussiness/OPCO Interface

RockSamProvides single CRMplatform

RockFactSetup of standard labelingsoftware for e.g. Barcode etc.

GROUPIT

The Asia hub has 2 servicing arms:

RockService - provides IT services regionally and globally.

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.

1.

2.

Group IT in Asia

Group IT is the Rockwool Group’s 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.

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.

Prakash RaoIT Shared Services & Regional IT Manager

RockService, Group IT

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.

Global Shared Services& Regional IT Manager- Prakash Rao

Regional IT Manager(RockService Asia)

Func

tion

al M

anag

ers

Global Shared Services

Infrastructure Specialists- Megat Mohamad- Kenny

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)

Infrastructure Engineers- Alvin Chan - Austin Phuah- (vacant)

SharePoint/SQL Specialist- (vacant)- (vacant)

Software Administrator- (vacant)

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.

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.

What we mean by Public Affairs

PUBLIC AFFAIRS

“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

Erik Gielen & Jessica Bao

How do we increase our marketshare through Public Affairs?

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.

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.

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 governmentapproach

Our modus operandi / How we function in Public Affairs.In whatever we do, we conduct ourselves with honesty, trust and professionalism.

Our non-government approach

It’s 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 NGO’s that push for improvement of energy e�ciency or reduction of green house gasses.

Our plans and approach clearly show that we’re here for the long run and very much committed to the development and growth of Rockwool Asia.

Our structurePublic 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.

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.

The Public Affairsupdate from Malaysia.

Faizul Bin Haji IderisManager, Norms, Standardsand External Relations

Thailand

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!

HAPPENINGS

Annual Dinner