Fantree News

FANTREENEWSO U R I N - H O U S E M A G A Z I N E F O R E M P L O Y E E S A N D F R I E N D S O F D K S H J U LY 2 0 0 5The opening of DKSH’s new distributioncenter in Vietnam was marked by the liondance, a traditional Vietnamese custom tobring good luck.Deeds, not words – DKSH rebuilds theKamala SchoolDKSH and Resensa – reinventing iced teaTaiwanese success stories –DKSH underlines its growth strategy!Miniature masterstroke – successful launchof innovative nanotechnology products bySpecialty & Life Science Chemicals

2 CONTENTSContents61st global Human Resources Managers’ MeetingZurich played host to a lively HR conference with fascinatingtalks, excellent networking and breathtakingSwiss scenery making an unforgettable impression.WELCOMELetter from the CEO 3GROUP NEWSDKSH rebuilds Kamala School 41st global Human ResourcesManagers’ Meeting 6DTA – the roots of tourism in Asia 8Putting the Fantree on the mapdown under 10Successful migration of SAP systemin Thailand 12CSSC – 18 milestones in 9 months 1410Putting the Fantree on the map down underSpectacular expansion, new successful partnershipsand opportunities for business characterize stronggrowth in Australia.BUSINESS UNITSConsumer Goods 15Healthcare 22Technology 26Food & Ingredients 32Specialty & Life Science Chemicals 35PRESS REVIEW 38DKSH ON STAGE 4220Eukanuba and DKSH – a winning teamOne of the most gruelling sporting eventson earth has been won for the second timein a row by a DKSH-sponsored team.Our reporter was on the spot in Alaska.DKSH Fantree NewsChief Editor:Martina LudescherAssistant to the CEOContact:DKSH Fantree NewsP.O. Box 888Wiesenstrasse 8CH-8034 Zurich/SwitzerlandEmail: martina.ludescher@dksh.comLayout:entertainment research, BerlinPrint:Rucksal Druck, Berlin26Japan lab department’s formula for successNew, state-of-the-art laboratory for analytical instrumentsin Japan attracts new customers and suppliers.

WELCOME3Dear Colleagues andFriends of DKSHDr. Joerg W. WollePresident & CEODKSH Holding Ltd.I am happy to inform you that in2004 we further strengthened theDKSH Group’s position as the undisputedNo. 1 in Asia for marketing,sales, distribution and logistics.20,000 DKSH employees generatedtotal sales of CHF 5,800 million, agrowth rate of 10.3% in net sales. Inlocal currencies, the EBIT across thegroup rose by 28% or, in SwissFrancs, by 20%. The icing on thecake were 2,000 new jobs created.Our double-digit growth in profitabilityfor the third time in a rowsince the 2002 merger stems fromincreased net sales, along with markedlyhigher margins and gains in efficiency,but we never rest on ourlaurels! We have made some importantorganizational changes to geteven closer to the pulse of our markets:A new leadership team has beendesignated to implement our aggressivegrowth strategy for ConsumerGoods. The resulting new structureclearly emphasizes CG’s differentbusinesses: Somboon Prasitjutrakuland Niels Holm are responsible forFast Moving Consumer Goods(FMCG) and Enzo Cunico for allDKSH Luxury Goods activities. Thesuccess of our focused and dedicatedmanagement teams is already reflectedin continuing tremendous growthin FMCG and an important newpartnership in Luxury: We have takenover the Porsche Design Agencyas Master Franchise for Asia. As withRoger Dubuis, we are opening flag-ship stores in large Asian cities in thecontext of the recently initiated verticalintegration. This acquisitionwill have a particular impact in ourcore market Japan, where, withPorsche Design, we now have a majornew agency in the Luxury segmentjust in time to celebrate the140th anniversary of DKSH.The Business Units Specialty &Life Science Chemicals and Food &Ingredients will be combined into anew BU Specialty Raw Materials asof January 2006. This new successformula is based on a perfect fit: withthe same culture and business models,both SLC and F&I are knowhowdriven and, in their respectiveindustries, partners for sourcing andproduct development of highly specializedraw materials. Under the coleadershipof Beat Heller andWolfgang Schanzenbach, the newBU Specialty Raw Materials will becomea real heavyweight, both withinits markets and DKSH.Our continued investment in infrastructureis further evidence ofDKSH’s growth strategy: OnFebruary 28 – an auspicious day inthe Chinese calendar – two big newdistribution centers were inaugurated,one in Vietnam and one inSingapore. The new capacities created,combined with a state-of-the-artlogistics infrastructure, will serve as abasis for extending our strong positionin these core markets.In order to shape the future, it’sgood to know one’s history. InMarch, “The Fantree Company Book”was published for our employees,friends and business partners. Thislively account of our history, linkedas it is to the development of Asiaover the past 150 years, was receivedenthusiastically.In the 3 years since the merger,our image has been transformedfrom somewhat “mysterious traders”to a highly focused services company.Today, the “Fantree Company” isseen as the premier services brand inour major markets and DKSH iswidely identified with the Fantreesymbol. While the legal companyname of DKSH is not changing, it isour clear goal to put the FantreeCompany in the center of our communicationactivities in order to furtherincrease the perception of ourgroup as the Fantree Company. Thisis already clear from the cover of ournew, redesigned DKSH AnnualReview. The Review’s makeover isthe first step of a global CorporateIdentity project to be launched inthe coming months.DKSH has got off to an excellentstart in 2005 with both sales andprofitability way ahead of last year.Let’s keep it going – together!As ever, I would like to thank allthe authors for their input to FantreeNews, and all of you for your invaluablecontribution to the continuingsuccess story of DKSH.

4 G R O U P N E W SDeeds, not words –DKSH rebuildsthe Kamala SchoolIn the early hours of Sunday December 26, 2004 a massiveearthquake measuring 9.0 on the Richter scale struck northernSumatra, triggering a powerful tsunami that swept thecoasts of neighbouring countries, causing serious damageand loss of life. At least five million people were affected inIndonesia, Sri Lanka, India, Thailand, the Maldives, theSeychelles and Myanmar. The death toll exceeded 280,000and more than a million people were made homeless.Total devastation: Kamala School in Phuketprovince after the tsunami catastrophe.Andreas Moelich and Walter Brenneis withthe headmaster of Kamala School.The DKSH project team at Kamala School.Initial emergency relief programswere set up immediately by ourBusiness Units Consumer Goodsand Healthcare – distribution offood, water and medical supplies –and heavy equipment providedfor reconstructing shattered infrastructureby our Business UnitTechnology.While thankful that no DKSHemployees were seriously injured orlost their lives, the Executive Boardand the Board of Directors decidedimmediately that the DKSH Groupwould start a global fund-raising effortin which our employees wouldbe able to donate whatever they feltappropriate to support those affected.Every Swiss Franc donated wasmatched by the DKSH Group. Toensure that every single cent fromour employees and the DKSH Groupreaches those who need it most,we assigned a dedicated project teamconsisting of Walter Brenneis, PresidentDKSH Thailand, SomboonPrasitjutrakul, ExecutiveVice President BusinessUnit Consumer Goods,Guido Oelkers, ExecutiveVice President BusinessUnit Healthcare, GeorgeHanna, Human ResourcesManager Thailand, EvasioBarbero, Business Controller BUHEC, and Andreas Moelich, ExecutiveVice President DKSH Holding,Head of Human Resources, whotook charge of the project.After close contact with the ThaiMinistry of Public Welfare and theThai Red Cross and evaluating vari-ous potential projects, we receivedthe official endorsement of the RoyalHousehold for a project in the Southof Thailand during an audiencewith HRH Princess Sirindhorn.Kamala School, close toKamala Beach/PhuketProvince, was almost totallydestroyed by thetsunami. There is an urgentneed for a newschool and DKSH willtake responsibility forthis project, funded and controlledby DKSH. DKSH is also committedto establishing a long-term supportiverelationship with Kamala School.The DKSH project team visitedKamala School on January 27 andwas shocked by the devastation.Three out of four school buildings“We received theofficial endorsementfor a project in theSouth of Thailandduring an audiencewith HRH PrincessSirindhorn.“

5DKSH staff in Indonesia togetherwith its principals Gillette& Wrigley donated USD 13,000directly to 6 sales force victims ofthe tsunami catastrophe in Aceh.The photo shows: SwissantoSoerojo, General ManagerHarpers Marketing and Arman,Sales Manager together with thevictims.Walter Brenneis, Presidentof Diethelm & Co., Ltd.presenting the cheque forTHB 22 million to KhwankeoVajarodaya, President of theKing’s Foundation, accompaniedby (left) SomkiatSihapitak, Diethelm & Co.Company Secretary/ LegalCounsellor.HRH Princess Maha ChakriSirindhorn receives the letteron THB 22 million donation forthe reconstruction of the tsunami-hitBaan Kamala Schoolin Phuket from Walter Brenneiswhile other Diethelm executiveslook on.With the help of the DKSH global fundraisingproject, these children will go back to school.have been completely destroyed. Thetsunami was ten meters high when ithit the beach at Kamala. The schoolwas located 100 meters away fromthe coastline.The project team met with representativesof the Phuket ProvinceRed Cross organization, as well aswith the headmaster of KamalaSchool and an official from theMinistry of Education of PhuketProvince. As we had already receivedthe first construction blueprints fromthe Ministry of Education, the projectteam met with the governor ofPhuket Province to plan the nextsteps of our project and get his officialsupport.The Rachprachanukroh Foundation,under the royal patronage ofHis Majesty the King of Thailandhas assumed responsibility for theplanning and reconstruction of theschool in order to house and educatepoor children in Phuket and nearbyprovinces free of charge. The DKSHGroup subsequently volunteered todonate 22 million Baht (approx.CHF 670,000) to the King‘s Foundationfor the construction of a fourstoreymain school building in thetraditional Thai style.His Majesty the King explainedthat Rachprachanukroh means cooperationand mutual assistance betweenHis Majesty the King and thecitizens. All Rachprachanukrohschools were established to houseand educate poor children free ofcharge.The Thai Army EngineeringCorps has already started on theconstruction of the school. TheDKSH sign shown is at the site.We would like to thank all employeeson behalf of the Board ofDirectors and the Executive Boardfor their extraordinary concern anddedication to helping to do what reallymatters.Andreas MoelichExecutive Vice PresidentHead of HumanResourcesDKSH Holding Ltd.,Switzerland

6 G R O U P N E W SSuccessful conferencefor a lively Human Resourcesteam on the “Top of Europe”DKSH’s Zurich headquarterswas the setting for our 1stGlobal Human ResourcesManagers’ Meeting fromMarch 8 - 12, 2005. Aftera tour that eloquently conveyedthe unique beauty ofDKSH’s home city came dinnerat a pizzeria, where manyof our Asian ladies discoveredthat Swiss portions are a bitlarger than back home...Andreas Moelichchaired the1st Global HRManagers’Meeting.HR ladieshaving fun.Lively discussionsfrom morning tonight...The aim of our global gathering wasto share Best Practices, build up astrong network among HumanResources staff and strengthen bondswith the DKSH Corporate Center.Andreas Moelich, Executive VicePresident and Head of HR, had designedan intensive program, askingmanagers to give presentations onspecific topics from their experience.All HR processes have to becarried out professionallyThe first talk the group enjoyedwas by our charismatic CEO, JoergWolle, about one of DKSH’s maingoals: consolidating the FantreeCompany. He stressed the specialimportance of HR by stating that hisfirst post-merger hiring was to get onboard Andreas Moelich, so as to ensurethat all HR processes, especiallyassimilation of employment contractsand recruitment of new executives,were carried out by a truly professionaland experienced HRManager. Joerg Wolle, who personifieshis credo “Don’t be afraid, beself-confident!” also gave an overviewon what makes DKSH tick.An update on current projectsAndreas Moelich then gave an extensivetalk covering allimportant aspects andprocesses of HR: communicationand networking,transparent and fair processes,and the various training programswhich form an integral part ofthe DKSH philosophy of constantlydeveloping employee skills andbuilding up long-term internal relationships,as much as with principalsand customers. He also gave an updateon current projects, like theTsunami relief activities in Kamala,Phuket. The group was taken with“Don´t be afraid,be self-confident!”Andreas’ commitment and creativity,as well as his professionalism andsense of humour, and enjoyed sharinghis broad experience in internationalcompanies.As we were in the home city ofFIFA, it was decided to warn speakersthey were overrunning their presentationtime with yellow or evenred cards. Luckily, suchmeasures were hardlyused – although Andreashimself came very closeand only just avoided getting a yellowcard by losing his voice... .In the Best Practices presentations,HR Managers shared theirexperiences on a variety of topics:complex past local situations, andissues like blackmail, court cases anddismissals. The team reviewed BestPractices on new remuneration systems,recruiting methods and regularteam-building activities. Mei Ling

7Group photo infront of the Eigerand the Jungfrau.The team reached the top!told of the lessons learned at previousemployers such as FedEx, ahigh-ranked company in terms ofemployee satisfaction.Presenting an enthusiastic futurevisionThen there were the eagerlyawaitedguest speakers: GonpoTsering, Senior Executive VicePresident, Operations & BusinessSupport, illustrated the vital roleof the Corporate Shared ServicesCenter (CSSC) in enabling andsupporting DKSH operations andbusiness partners with IT and businesssolutions. Beat Heller, GlobalBusiness Unit Head SLC, gave anaccount of Specialty & Life ScienceChemicals and current recruitmentneeds. Guido Oelkers, ExecutiveVice President, Head of BusinessUnit Healthcare, presented an enthusiasticfuture vision of Healthcare.Joe Buergi, Chief Financial Officer,supplied financial facts and figuresand Martina Ludescher, Assistant tothe CEO, presented corporate communicationsat DKSH.Ursula van Emden, GeneralManager in Baltimore, USA, demonstratedthat, though far from thecompany’s Asian heart, DKSH isalso well represented in the US. AndPaul Chaplin, GM in Australia,envied for the variety of DKSHclothing he wore throughout thefour days, provided dynamic insightsinto the business “down under”.The evenings of this four-daymeeting were dedicated to networkingin a more relaxed environment.The second day ended with a deliciousfondue and by now everyoneknew they were part of not only ahighly professional but also a verylikeable HR team!An excellent presentationThe presence of the Chairman,Adrian T. Keller, Vice Chairman,Christophe R. Gautier, and theCEO, Joerg Wolle, at one of thebusiness lunches at the DKSH cafe-teria, underlined the meeting’s importance.Adrian Keller gave an excellentpresentation as the Chairmanand one of the principal owners of asizeable private company and wewere delighted he was able to join usfor the final dinner at a lakeside restaurant.As the 1st Global HR Managers’Meeting drew to a close, participantswere full of new insights into HR,the company and a country new tomost of them. The climax was a tripto the Jungfraujoch, at 3,571 m the“Top of Europe”, which left lastingimpressions of snowy Swiss Alpsagainst a perfect blue sky for ourteam to take home with them –knowing that one vital factor in thesuccessful company is the peoplewho work for it!Hedy KoenigAssistant to theExecutive BoardDKSH Holding Ltd.,Switzerland

8 G R O U P N E W SYou’ve come a long way,Diethelm TravelDiethelm Travel Asia (DTA)has evolved to becomeone of the leading inboundtourism agencies inSoutheast Asia.Yunnan,Southern China.Bagan Monasteryon Rock, Myanmar.Employing some 700 people in eightcountries, this Thailand-based firmhas seen great changes since its humblebeginnings in 1958, when itopened under the name of DiethelmTravel Office. The agency began itsincoming business in 1959 as a subsidiaryof Diethelm & Co., Bangkok.Following the establishment of aSwissair service between Zurich andTokyo with a regular stopover inBangkok, the first group of 65 travellersfrom Hotelplan Munich landedin Thailand on December 28, 1959.A similar group arrived on a Kuonipackage in January 1960. Specializingin a wide variety of excursions intothe Thai kingdom and neighbouringcountries, Diethelm Travel Officegrew into a regionally and internationallyrecognized agency – so successfullythat when the governmentin Bangkok declared 1987 “VisitThailand Year” the number of incomingtourists handled by DiethelmTravel Office surpassed 100,000 forthe first time.Ta Prohm Temple, Angkor Wat complex,Cambodia.Bagan Monastery, Myanmar.

9Novice Monk, Hue, Vietnam.Ta Prohm Temple, Angkor Wat complex,Cambodia.The company has grown steadily,allowing the establishment of officesnot only in Thailand, but also inBhutan, Cambodia, China, Laos,Malaysia, Myanmar and Vietnam.Since 2001, Diethelm Travel Asiahas been an independent operatingunit of Diethelm Keller Holdingand caters to tourists from more than80 countries.The agency’s success can be measuredby the many industry prizes ithas won over the years, including theprestigious Condé Nast TravellerAward in 2003 for its first-classservice in Thailand.Besides the tourism sector, DTAis also active in the convention andconference business. Diethelm Eventshas established itself as a major providerof comprehensive services inthe convention, trade show, eventand incentive travel segments.Halong Bay, North Vietnam.Diethelm Travel Asia prides itselfon its personal service and integrity.Each section of its business, for example,carries fully comprehensiveinsurance and customers have accessto staff 24 hours a day. Both theseelements are of great significancewhen travelling to the more “exotic”locations in the region.We are ready to serve you andyour principals and kindly invite youto promote DTA’s first-class services!John WatsonChief Executive OfficerDiethelm Travel AsiaLtd.Bangkok, ThailandTemple doorway, Luang Prabang, Laos.

10 G R O U P N E W SPutting the Fantreeon the mapdown underDKSH provided the cablingand connector infrastructurefor the stage lighting ofSydney’s opera house.At the start of 2004,DKSH had one BusinessUnit in Australia:Technology.Today, there are four:Technology, ConsumerGoods, Specialty & LifeScience Chemicals andFood & Ingredients.Technology:electrical cables andconnectors.Specialty & LifeScience Chemicals:coating & polymer.Consumer Goods acquisitionThe expansion into ConsumerGoods came from the acquisitionof United Housewares (UHPL) inJanuary 2005, a specialized premiumhousehold goods marketing and distributioncompany previously ownedby Diethelm Keller Management &Investments Ltd.In late 2003, DKSH Australia andUHPL, began Project Unite to combine,where possible, the resourcesof both independent operations. Theaim was improved performance inoperational efficiencies, profitability,return on capital employed, cashflow and balance sheets, in order toadd further value to both organizationsand the Group. Positive resultsincluded cost savings in freight forwarding,relocating the UHPL’swarehousing function from theirSydney facilities to DKSH inMelbourne, and relocating bothcompanies’ Sydney operations to anew shared facility, which allowedthe sale of UHPL’s office and warehousefacilities and associated assets.UHPL commenced operations in1975 and today Tony Michaels andhis team have established a marketleader that represents internationalbrands like Zyliss Switzerland,Zwilling J.A. Henkels, WilliamLevene, Cole and Mason and KaiserBakeware. At the same time, UHPLhas made good progress in the developmentof its own brands: Cuisina,Euroline and Viva Lifestyle. The CGbusiness employs 28 staff and marketsprimarily to over 2,500 retail accounts,with turnover approachingAUD 20 million.Welcome Food & IngredientsFebruary 2005 saw our Food &Ingredients Business Unit open itsAustralian office in Melbourne, increasingDKSH’s global sourcing opportunitiesfor a wide range of foodand ingredients, while also providingsubstantial sales potential in a strong,well-supported food industry.The food industry, responsible for80% of agricultural value, is vital toAustralia‘s economy. The processedfood and beverage industry isAustralia’s largest in the manufacturingsector, with a turnover of overAUD 55 billion over a wide range ofsectors including wine, beverages,meat, fish and seafood, dairy, fruit,vegetables, bakery, sugar and confectionary.Support and expand opportunitiesSales activities will includeProcessing Aids and Additives,Functional Ingredients and NutritionalSupplements, Personal Careand Cosmetics and Food Services.Mary Trengove has been appointedBusiness Development Managerto establish the unit. She has extensivefood industry experience in bothdomestic and international markets,thanks to jobs in sales and operationaland technical management.

11Consumer Goods:premium householdgoods.Food &Ingredients:wine industry.Technology:plasticsrecycling.Working together with the globalnetwork, official bodies like AusTradeand Australian Food Manufacturers,the Melbourne office aims to supportand expand opportunities forthe Food & Ingredients BusinessUnit.More Technology developmentsin the pipelineWhile all this was going on, inMay, the fourth Business UnitSpecialty & Life Science Chemicalshas also expanded into Australia, focusinginitially on the coating &polymer industry. Technology wasalso developing new activities. Wehave now entered the plastics and recyclingmarket, already proving aprofitable investment after only oneyear. The business line Plastics &Recycling is offering equipment forthe continuous extrusion of films,sheets, tapes and fibres, and the technologyto recycle and reclaim wasteproducts from production processes.Line manager Eric Paulsen seesthe business moving forward into recycling,including post-consumerwaste, where growth is being drivenby rising raw material costs, growingconsumer environmental awarenessand legal pressures. To date, we havesecured some of the world’s leadingsuppliers in plastics recycling machineryand some important consumables.The aim of establishingDKSH as the one-stop shop for therecycling industry is well under way,with recycling of paper, wood andother value streams being targetedfor technological synergies.Air Services as another keycontributorWe have also gone into the compressedair market with a start-up AirServices business line. The idea is tooffer a mixture of own and partnerbrand compressed air equipment –compressors, air treatment, fittingsand piping, tools and equipment,automation, safety products and environmentalsolutions. We will alsobe providing additional value-addedservices in consultancy, design andinstallation. Initial success will mainlybe in marketing to our 3,000 existingindustrial clients and weexpect the line will attract other industrialcustomers due to its uniquevalue proposition.Richard Brown was made BusinessDevelopment Manager of Air Servicesand has already achieved pleasingsales results. As Richard says: “DKSHresources have spectacular potentialto be a key player in the industry.”We see Air Services becoming anotherkey contributor to the sustainablegrowth of DKSH.Paul ChaplinHead of CountryManagement TeamDKSH Australia Pty. Ltd.

12 G R O U P N E W SThai New Year markedby successful migrationof SAP systemColleagues watched in greatamusement as SuntharSupparmaniam, Senior SAPBasis Specialist at CorporateShared Services Center(CSSC), prepared to leavefor Bangkok. They laughedas he wrapped two laptops inlayers of plastic bags beforeputting them in their cases.Then they called himparanoid.To go live or not to go live: CharlesToomey (left) and Bernhard Schmitt.“Look, I’m not taking any chances!You never know what they’ll get upto during Songkran – better safethan sorry,” was Sunthar’s reply.He was referring to the Thai NewYear, or Songkran, renowned for itspopular tradition of throwing wateraround. The original significanceof the festival, which falls on April13, was to start the year with allthat is good and pure, and thuswater is used as a symbol of thecleansing process.There was no room for mistakesin Sunthar’s critical mission inBangkok: to transfer all of Thailand’s700 Gigabytes of data – which, whenstripped to the core and exported,were compressed to 70 Gigabytes –to the laptops and bring them backto CSSC. And, of course, he wantedto make sure that the laptops were asdry as toast, with the data intact,when he returned.This was just one of many carefullyplanned measures that helpedmake the migration of Thailand’sSAP system to CSSC a resoundingsuccess. Fantree News ReporterIrene Chen asked Tony Woo, Headof Global Data Center, CSSC andBernhard Schmitt, Vice President &Head of Central Services, Thailand,what the operation had involved andwhat had made it a success.Fantree News: Tell us aboutThailand’s SAP migration.Bernhard Schmitt: The scope ofthe project was to transfer Thailand’sSAP production, development andquality assurance systems to CSSCin Kuala Lumpur. The major challengelay in Thailand’s high transactionvolume, which involves printingabout 8,000 invoices a day with multiplecopies and other supportingdocuments. We also had to bear inmind the interfaces to legacy systems,as well as to principals and ourown portal.Tony Woo: And, in addition, thekey was testing, testing, and moretesting. CSSC is very fortunate tohave strong support from ThaiCentral Services and Healthcare

13The team that made it happen.Management, who mobilized manyof our Thai colleagues to come in atweekends to conduct the manualstress tests.F N: What were the challenges thatyou faced?Woo: From the beginning of theproject, Charles Toomey, VicePresident of Healthcare, Thailand,and Bernhard Schmitt made theirintentions very clear – we couldn’tafford to have business operationsdisrupted, or risk the SAP migrationupsetting the principals. BernhardSchmitt and Charles Toomey wouldnot allow the project to proceed ifthey had the slightest doubt that itwouldn’t work.The other major challenge wasthat the migration had to be completedover a three- to four-dayperiod due to the sheer size of thedatabase. The Songkran festivitiespresented the perfect window.F N: What are the benefits of havingSAP hosted at CSSC?Schmitt: In the short term, thereare improved response times.Secondly, we’ll have access to stateof-the-artsecurity and disaster recoverysystems, which we wouldn’tbe able to afford ourselves.F N: How can Thailand be assuredthat their data remains secured?Woo: CSSC is aware that the dataresiding in the servers we host is missioncritical. To protect it, we’ve investedin and implemented thoroughsecurity measures covering physical,systems and network security. Wewill continue to be vigilant, and willenhance our security measures regularly.In future, we intend to useindependent consultants to conductsecurity audits to ensure we have theright measures in place.F N: The actual migration is nowover. What happens next?Schmitt: One of the major issuesyet to be addressed is the optimal sizingof the CSSC connection. TheThailand telecoms market hasn’tbeen fully opened up yet, whichmeans line costs are among the highestin Asia. Optimized sizing shouldallow us to reduce costs in this area.Khun Yuwadee Angkurawanich, an SAP user.F N: What was most important forthe success of the migration project?Woo: I believe there were threekey factors: strong leadership andmanagement, excellent teamwork,and transparent and robust methodology.Irene ChenBPR ConsultantDKSH CSSC Sdn Bhd,Malaysia

14 G R O U P N E W SCSSC –18 milestonesin 9 monthsLaunched in November 2004,DKSH’s Corporate SharedServices Center (CSSC) hasnow been in operation fornearly 9 months.Here’s an overview of CSSCachievements.• Infrastructure • Business Solutions • Groupware • BPRNote: Applications which are applicable globally are not highlighted on the mapInfrastructureBusiness SolutionsGroupware(Lotus Notes)BPR (Business ProcessRe-engineering)SAPCSSC operates andmaintains IT infrastructureand facilities accordingto best practices.Services range fromhardware and databasehosting, through webhosting, to SAP systemhosting and support.• Migration of SAPsystem in Thailand,Switzerland,Netherlands, Norway,Denmark, Germany,France andUnited Kingdom• New implementationof SAP in Indonesia• Europe SAP back-upsystem set up at theDisaster Recovery siteIrene ChenBPR ConsultantDKSH CSSC Sdn Bhd,MalaysiaThe Business Solutionsteam provides solutionsthat complement theback-end ERP system.It delivers flexible solutionsfor quick responsesto business needs, e.g.the sales force automationtool, EchoPlus.• EchoPlus roll-outin Switzerland,Denmark, Norway,Netherlands andIndonesia• Indonesia 9th countryto run EchoPlus inthe Asia Pacific• Launch of newEchoPlus versionin Malaysia withadditional features• New solutions forConsumer GoodsMalaysia (ConsumerGoods portal and datawarehouse)The Lotus Notes teamprovides 2nd and 3rdlevel Lotus Notes supportfor the DKSHGroup worldwide, includingmonitoring andsupport of Lotus Notesinfrastructure. The teamalso offers design anddevelopment, roll-out,maintenance and trainingservices.• Audit on Lotus Notesinfrastructure• Lotus Notes roll-outin Korea, Vietnam,Singapore, Thailand• Go-live of global 2ndand 3rd level LotusNotes support forall countries usingLotus Notes• Development andimplementation of theGlobal Address Book• Development oftechnical infrastructureand solutions forthe global DKSHwebsiteThe BPR team providesbusiness consulting servicesin both strategicand operational aspectsof the business. Businessprocesses are reengineeredto achieve significantimprovements inperformance. Servicesprovided include project,supply chain, qualityand change management.• Business process reengineeringforDKSH SwitzerlandLtd.: Analysis ofproductivity, coreprocesses and logisticsproviders• Market study forLenersan Poortmanin Netherlands• Analysis of currentbusiness model of theF&I joint venture inChina• Business processre-engineering forSwitzerland, Malaysiaand Premium PetProducts in DenmarkThe SAP team providesdesign, development,roll-out, maintenanceand training services forSAP applications, includingthe DKSH SAPGlobal Template and localSAP software solutions.• Project Pegasus kickoffon November 23,2004• Design and developmentof DKSH SAPGlobal Template(For further informationsee P18 – 19)

C O N S U M E R G O O D S15A sign of DKSH excellenceLaunch of theSelected Retailercampaign.With a view to standardizing eyeweardistribution, the ConsumerProducts Division of Diethelm &Co., Thailand, recently held a pressconference at the Westin GrandHotel, Bangkok. The launch of its“Selected Retailer campaign” was attendedby leading Thai newspapersand magazines, along with thefounder members of key accountsthat have been principals sinceDiethelm began distributing eyewear.In the past, authorized dealer signswere distributed to retailers to buildconfidence in both – retailers andend consumers in guaranteed qualityin product and service.The authorized dealerplayed a key part inbuilding a strongbasis for Diethelm’s eyeweardistribution and has helpedDiethelm maintain its dominance.With Ray-Ban’s new “Change YourView” concept and the addition ofother eyewear brands, it was time forthe authorized dealer to become thenew Selected Retailer.The launching of the SelectedRetailer sign coincided with newstrategies to standardize distributionand to help improve retailer sell-out,while enhancing the brand image ofeyewear products distributedby Diethelm. Not onlywill the sign help consumersdecide where and what to buy,it will also create a clear-cut differencefor consumers who shopat our selected retailers.Pumin NilluangDepartment ManagerConsumer GoodsDiethelm & Co. Ltd.,ThailandHuge computerizedwarehouseprojectsSAP and DKSH Logistics havesigned an agreement to implementSAP’s latest development in warehousemanagement systems inDKSH Distribution’s Hong Kongand Korean logistics facilities. Theintroduction of SAP’s new decentralizedwarehouse management systemsin these DKSH operations marks thefirst SAP implementation of its kindin Asia. The project will bring thelatest techniques in computerizedwarehouse management to these twoDKSH distribution centers that controla combined total of about65,000 pallet positions.DKSH CG Logistics continuesexpansion in ChinaRapid growth of our logistics servicesbusiness in China has made it necessaryto commission a second bondeddistribution center in Shanghai. Thefacility, now ready for business, offersfood-grade and temperaturecontrolledwarehousing, as well asprofessional repackaging services.The new distribution centerin Shanghai.Andre BartlomeVice PresidentDKSH LogisticsNorth AsiaAndre Bartlome,Vice President DKSH Logistics, N. Asia

16 C O N S U M E R G O O D SExtension ofregional partnershipwith Effem-MasterfoodsDKSH further enhances the strongand successful partnership withEffem-Masterfoods across Asia.Diethelm Singapore ConsumerGoods, led by Leonard Tan, recentlysecured a major partnership withEffem Foods Inc. The exclusive distributionagreement was signed onJanuary 17, 2005 by Chan ChowKeong, Effem Foods, and K.C.Chua, Managing Director of DKSHSingapore.At the same time, DiethelmPhilippines, Inc. (DPI) has expandedist partnership with MasterfoodsPhilippines, Inc. (MPI). MPI is oneof the fastest growing consumer busi-nesses in the Philippines, with flagshipbrands like M&Ms, Snickers,Mars, Dove, Maltesers and Combos.MPI’s collaboration with DPI hasnow been expanded from just logisticsto include sales distribution,trade marketing, and merchandisingservices.From left to right: Wendy Wong, Service &Finance Manager Effem-Foods Inc.; Jean Lee,Sales Development Manager EFI; Chan ChowKeong, National Sales Manager EFI; LeonardTan, Chief Operating Officer and K.C. Chua,Managing Director of DKSH Singapore; BartVan Hoek, Logistics Manager Asia EFI; Lim ChiuHwee, Business Manager and Andreas Wuest,Country Finance Manager, DKSH Singapore.Pictured sealing the pact are DiethelmPhilippines’ Vice President Larry Williams(2nd from left) and MPI’s Service and FinanceCountry Manager Luc Francillion (middle).Alongside them are from left to right: DPI’sHead of Corporate Affairs Sheryl Martelino, DPISales Director Norman Zara and MPI’s ExternalAffairs Manager Lourdes Marivic K. Punzalan-Espiritu.Best performance awards for our Gillette sales teamGillette recently held its annualNational Sales Conference, attendedby 300 selected salesmen who hadachieved 90% of their targets. Theevent recognizes the salesmen andsub-distributors who have madeoutstanding contributions over thepast year.The conference featured presentationsfrom Swissanto and GilletteMarketing, followed by a trainingseminar by Andre Wongso, the mostpopular motivator in Indonesia.The following day, delegates enjoyeda memorable visit to the KeratonYogyakarta Palace and Candi Boro-budur Temple. The climax of theprogram was a gala dinner,followed by the Best Performanceawards for salesmen and distributors.Zamroni, Personal Manager and HeningTirtasari, Sales Administration Executive,PT Harpers Marketing, IndonesiaEverything against toothacheThe recent congress of the IndonesianDental Association PDGIheld in Makassar, East Indonesia,from March 21-22, was sponsoredby Oral-B and attended by 500 dentistsfrom all over Indonesia. Guestspeaker Dr. Hui Chee Wah fromSingapore gave a talk on “The etiologyof caries and gingivitis: generalSwissanto Soerojo, General Manager Harpers Marketing (3rd from left) and the winners.periodontology, periodontal diagnosisand therapy prevention measures“.We also ran an Oral-B –PDGI competition for scientific papersin dentistry, whose winnersreceived cash prizes, Oral-B productsand trophies.Zamroni, Personal Manager and HeningTirtasari, Sales Administration Executive,PT Harpers Marketing, Indonesia

17DKSH successfullylaunches Ray-Ban’ssummer collectionWith supermodels, blockbusters and movie stars, theNo.1-eyebrand-collection findsway to thai consumers.“Change Your view with aRay-Ban’s Modern Hero” wasthe motto of an unforgettablelaunch event at the EmporiumShopping Complex put on byDiethelm & Co., ConsumerGoods, responsible for the No.1-eyewear brand in the world. Ray-Banhas always been an iconic productassociated with famous names andfaces, from the heroic pioneers ofaviation to the most prominent internationalcelebrities.The new collection reconnectsRay-Ban with its target audiencesby the introduction of “ModernHeroes”– apparently everyday peoplewho reveal a strength and dynamismthat render them unique,special individuals in the true senseof the word, with whom those audiencescan identify. We are proudthat Ray-Ban is the only brandin the world that can make sucha claim. Our aim was to get thismessage across to Thai consumers.The event started off with a danceperformance highlighting variousblockbuster movies that Ray-Ban hasbeen associated with. Movies likeTop Gun, Risky Business, PearlHarbor, Men in Black, Daredevil andCharlie’s Angels, all featuring themain characters wearing Ray-Bansand demonstrating the spiritednature of the brand.To drive the hero concept home inThailand, audiences were shown exclusiveDiethelm interviews with realmodern heroes like Tan Passakornnatee,President & CEO of the OishiGroup, one of the largest players inthe wholesale food industry inThailand, and Khun Ying PornthipRodchanasunan, who has broughtmodern forensics to the Thai media.The highlight was the unveiling ofthe new Ray-Ban collection, whichwas demonstrated by Thai supermodelsand actor Chatchai Plengpanich,who wore Ray-Ban Aviators15 years ago in the Thai TV series“Tee Yai” (Big Brother).Guests trying on the newestRay-Ban sunglasses.Ray-Ban’s new summer collection“Change Vour View”.Ray-Ban displays atEmporium ShoppingComplexe in Bangkok.An exciting dance performancehighlighted various movies thatRay-Ban has been associated with.Jiranuch YoosamranProduct ManagerConsumer GoodsDiethelm & Co. Ltd.,Thailand

18 C O N S U M E R G O O D SImproved operatingmodel for logistics.Prepare for the future!Get-together of DKSHlogistics specialists.June 2004, Malaysia: a teamof people with diverse skills isbriefed to improve the operatingmodel of logistics forConsumer Goods, achievebetter performance and costreduction and a higherstandard of service – andprepare for the future!At the beginning of February 2005, a teamof the Corporate Shared Services Center(CSSC) visits DKSH’s state-of-the-artdistribution center in the Philippines.DKSH distribution center in Malaysia.Business Process Re-engineering(BPR) Logistics began by analyzingthe “As Is” Model of DiethelmLogistics Services (DLS) in Malaysia,and documenting how current operationswere carried out. Two monthslater, work started on the“To Be” Model, i.e. the futureoperating version. Itwas soon clear that theperformance expectations of the logisticsoperations had to be definedexactly: this would provide thebenchmark for any suggested changes.It was agreed that the “perfect order”was the overriding goal, combinedwith maximum productivity.The result, 60 pages of detailed processesdefining the “To Be” Model,was presented on December 20,2004 – and approved. Many initiativesare now being implementedand are set to greatly improve performanceas early as this year.Just before the BPR Logistics teamwas finalized, the Pegasus ProjectThe “perfectorder” was theoverriding goal.kicked off. It quickly became apparentthat common ground and directionwere needed, as team memberswere from many different companies,all with unique characteristics,yet all equally important. It was decidedto make the “To Be”Model a guide for theglobal template of theWarehouse ManagementSystem (WMS) stream. Many meetingslater, we are now in the finalstages of defining and validating thattemplate. The team has incorporatednumerous business and service requirementsfrom DKSH, and testsagainst SAP functionalities indicatethat SAP 4.7 is up to the task. Workin the WMS stream has gone on enthusiastically.Establishing commonground and direction early on madeit easier to focus on the substance ofdeveloping a sustainable, well thoughtoutmodel. The team appreciates thechance to make a better operatingmodel and a lot of work went intothe extensive documentation.Looking back, BPR’s methodologyand work and the resulting outcomeof the WMS stream have underlinedthe importance of coherent,well-documented processes as thefoundation for viable business models,particular in an environment ofmany different countries and varyingbusiness requirements. They created aframework and a testing ground, andthe outcome of the WMS stream is aneven stronger model.Bo GrabowskiManaging DirectorDiethelm LogisticsServicesMalaysia

19Dear colleagues,Our visionIt is our vision to be the No.1 in Asia inmarketing, sales, distribution and logistics. Butthe real challenge is to be Asian No. 1 in theeyes of our principals and customers. We haveto be a customer-centric organization, focusingon what clients want and ensuring that wehave the capabilities to deliver.Many of our key principals are global andregional players and want us to beglobal or pan-Asian partners. Theyalso want market intelligence –consistent, comparable transnationalinformation, and securedata, with back-up and proper risk managementsystems. And they want better standardsof service.For this, DKSH needs optimized and standardizedprocesses. Optimized to find the mosteffective way of working, and standardized tomake processes truly “group-wide”. Then wecan talk about meaningful corporate andgroup-wide performance indicators (KPIs) andnew information channels for our principalsand for ourselves.The starting pointDKSH’s Global SAP Template project,Pegasus, is a critical step towards optimizedand standardized processes across DKSH.Developing the global template not onlysaves time. A project starting at the globallevel will also ensure a degree of harmonizationand standardization for processes acrossDKSH worldwide.The No. 1 in the eyesof our principals andcustomers.Project status and outlookProject Pegasus, which began in November2004, is right on track at the moment. We arenow at the end of the Global Blueprint phase,where solution requirements are gathered andnew processes mapped out in a series of workshopsand reviews. After this phase, theGlobal Blueprint will spell out how DKSHintends to run its core business processeswith SAP, before being subject tocompleteness and integrationchecks.The system will then be configuredbased on Global Blueprintrequirements and intense testing carried out toensure that it works according to the blueprint.This should be completed by the end of 2005and roll-outs to the countries will start in early2006, starting with Malaysia and Singaporeand followed by Thailand, Hong Kong andJapan.Thank you!To all of you in the Pegasus Project Team,we would like to express our deep appreciationfor your commitment and effort put into thisproject on top of your usual workload. Youplay a vital part in this important processwhich aims to make DKSH the uncontestedNo. 1. We are counting on you, during thetough times ahead, to make Pegasus a success.With heartfelt thanks to the Pegasus Team,Dr. Joerg WollePresident & CEOGonpo TseringSenior Executive Vice President

20 C O N S U M E R G O O D SEukanubaand DKSH –a winning teamOnce a year, hundreds ofsled drivers and thousandsof excited sled dogs lineup in Anchorage, Alaskato begin an epic race ofmore than 1,600 km –the Iditarod.The Iditarod Trail Sled Dog Race isone of the most arduous tests of enduranceof our time. Much literaturehas been dedicated to this race andsome of these classics are by the legendaryAmerican author, JackLondon. It commemorates an actualevent – an outbreak of deadly diphtheriain the remote village of Nomeduring the terrible winter of 1925.The nearest antidote was inAnchorage, over 1,000 kilometers ofAlaskan wilderness away. 20 sleddrivers, or mushers, volunteered todeliver the antidote. A race againsttime began, in effect a battle of lifeand death for the village. Thanks tothe mushers, the antidote arrivedin time and Nome was saved. ThisEnthusiastic fans rooting for Robert Sorlie and his team.year’s winner was Robert Sorlie fromNorway. Our reporter Irene Chenspoke to Morten Baastad, GeneralManager of Premium Pet Products(PPP), Norway, on what this victorymeans to Norway and DKSH.Fantree News: Congratulations onRobert Sorlie’s victory! But first, canyou tell us about the Premium PetProducts business in Norway?Morten Baastad: Premium PetProducts was founded in 1997 andbought by DKSH in 2001. It consistsof a great team of 21 pet lovers,with a passion for pet food nutrition.The main brand we distribute isIams and Eukanuba Pet Food. Today,we lead the market in all the segmentswe operate in: retail, veterinarianand breeder. Our marketshare in retail and veterinariansegments is nearly 50 %, which ishigh compared to other Europeancountries, thanks to our innovativeproducts and our passion to win.This, and the excellent relationshipwe have with the trade, form thebasis for our success in the premiumpet food industry.Fantree News: How did PPP getinvolved with Iditarod?Baastad: Iditarod tests the dogs’strength and endurance to the limits,and our main brand, Eukanuba,which has made a number of nutritionalbreakthroughs, ensures thedogs get the nutrition they need.Last year, Team Norway signed asponsorship deal with PPP andEukanuba.Norway: The winning teamRobert Sorlie, the champion, is 47 years old. He has won many big racesin Norway in the past 30 years. The first time he won the Iditarod was in2003 and he’s only the second non-American ever to win it. The race wasshown on all channels in the US, and even when Bush declared war withIraq on CNN, you could see the headlines scrolling across the screen announcingthat Robert Sorlie had won the Iditarod.Bjornar Andersen, 27, is Robert’s nephew. He already has earned the respectof all famous mushers with a great result in this year’s race. Hereached Nome in fourth place and set a new record for the best rookie.Robert Sorlie, Iditarod Champion 2005.Kjetil Backen, 36, the strategist in the team, didn’t compete this year, aftercoming third in 2003. He planned the team’s itinerary, so that Robertand Bjornar had a plan of when and where to rest.

21Morten Baastad, General Manager DKSH Norway.F N: What about this year’s race?Baastad: There were 79 mushers –from all walks of life: an ex-wrestler,a pilot, even a girl who’s legally blind!Many people said that this year‘s racewas a greater test than previous runs.The course was awful – the weatherwas too warm, so much of the routewas slush. There were also a lot ofsnowstorms. Waving a Norwegianflag, Robert finished crossed the finishingline, completing the race in 9days, 18 hours, 39 minutes and 31seconds. Over the nine days, he onlyhad about 20 hours of sleep and inthe last three days, he only slept onehour each night. He truly deservesthe winning prize – USD 72,066plus a pickup truck.F N: What does this victory meanfor DKSH?Baastad: An Iditarod championand a rookie of the year – what ateam! Winning Iditarod is very prestigiousand DKSH is proud to be apart of this victory.The winning team has been givenwide media coverage, from talkshows to newspaper and radio interviews.Interest in the Iditarod hasincreased and the Norwegian team’sfollowing has grown in numbers.Being highly branded with ourlogo and showered with so muchpublicity brings greater visibilityand prestige to the Iams andEukanuba brand.As sponsors, we can use the mushersand their dogs at trade fairs, seminarsand other events, and we plan touse them as brand ambassadors in ouradvertising. Maybe the new taglinewill be “Champs choose Eukanuba!”Irene Chen, BPR Consultant, DKSH CSSCSdn Bhd, MalaysiaRobert Sorlie after his second victory in the Iditarod race.Taiwan distributes NiveaSeated in the photo is Nivea Taiwan’smanagement team, from left to right: SophieLee, Marketing Manager; Eric Sheng, NationalSales Manager; Edward Chua, GeneralManager; Eric Chi, Trade Marketing Manager;and Maggie Huang, Controller.On March 1, 2005 DKSH Taiwanbecame the 8th DKSH country toprovide distribution for Nivea.Seamless internal cooperation betweenthe CG and HEC BusinessUnits helped win the distributioncontract in the face of very tough externalcompetition. DKSH Taiwannow provides logistics and administrativeservices to the local NiveaTaiwan organization. As part of thenew business set-up, in a short twomonthperiod, DKSH Taiwan’sHuman Resources Departmentmanaged to screen 400 applicants,interview potential candidates andfinally recommend and select 24staff for the Nivea Sales Organization.Apart from HR, the transition alsoentailed heavy involvement on thepart of DKSH Taiwan’s other salesforces, Customer Services, and, ofcourse, Logistics. We are proud to beable to contribute to the developmentof such a prominent brandwith which DKSH is so closely involvedthroughout Asia.Erik Trock-JansenGeneral Manager,DKSH Taiwan Ltd.

22 H E A L T H C A R EDKSH intensifies its successful partnershipwith NovartisMay 1, 2005 will go downin company history as thedawn of a bigger, better andstronger Diethelm Philippines,Inc. The opening of itsMamplasan DistributionCenter was also the start ofdistribution for products of itsnewest principal, NovartisHealthcare Philippines, Inc.(NHPI). Exciting times!Novartis is a world leader in healthcare– pharmaceuticals, opthalmicsand animal health – and consumerhealth – self-medication, nutrition.The company is present in virtuallyall the countries of the globe, employingmore than 80,000 people. Inmarket capitalization, Novartis isamong the world’s top companies,with shares traded on the Swiss stockmarket and also available in the formof American Depositary Shares onthe New York exchange.The company has been active inthe Philippines for more than50 years. Novartis HealthcarePhilippines was incorporated inMarch 1997, integrating Ciba-Geigy(Phils.) and Sandoz Philippines, followingthe merger of their parentcompanies.A cross-functional Novartis-Diethelm team was assembled to ensuresmooth implementation of thepartnership from May 1, 2005. Aftereight weeks of intense planning andpreparation, a fruitful, long-term relationshipwas born.There was much to be done invarious business areas before DPItook on the role of the new officialnational distributor of all NovartisHealthcare Philippines products.These included logistics, sales organizations,communications, IT andfinance. Both sides worked non-stopduring the preparatory stage to comeup with a unified work plan thatwould ensure the partnership’s success.These planning sessions culminatedin a sales rally a week beforethe actual system went live, organizedto bond the new DPI-NHPIteam and motivate the field repre-Sales rally participantswho willbe in the front linebringing Novartisproducts toconsumers.Key people in thenew DKSH-Novartispartnership in thePhilippines, fromleft to right:Pete Miranda,Vice President DPI;Mar Dabalos,Associate Director,DPI; JuergenHirschberg, President& GM, DPI; GinoBulan, MarketingDirector, NHPI.Part of theimplementationteam just beforeNovartis andDiethelm wentlive.sentatives who will be bringing theNovartis products to consumers.It is gratifying to see that all thehard work has resulted in a newworking relationship that promisesto bring long-term fulfillment toboth companies and, more importantly,to the consumers, who will bebenefiting from the partnership.Dean Clark M. CamuaCorporateCommunicationsDiethelmPhilippines Inc.

23The world leader inin-vitro diagnosticssigns on as principalof Diethelm PhilippinesDiethelm Philippines, one of theleading distributors of pharmaceuticaland consumer healthcare productsin the Philippines, has recentlysigned Roche Philippines Inc.,Diagnostics Division to its portfolioof principals. DPI becomes thenational distributor of RocheDiagnostics (RD) products.RD, the world leader in in-vitrodiagnostics with a unique productportfolio, also supplies a wide arrayof innovative testing products andservices to researchers, doctors, patients,hospitals and laboratories.Dean Clark M. Camua, CorporateCommunications, Diethelm Philippines Inc.Seen sealing the deal are Roche Philippines Inc.,General Manager Warwick Bedwell (3rd fromright) and DPI President and General ManagerJuergen Hirschberg (2nd from right).Flanking them are (from left to right): RochePhilippines Inc., Finance Director Florian Gaa;Roche Philippines Inc., Diagnostics DivisionCountry Manager Erlinda Pijuan and DPI VicePresident Larry Williams during contract-signingat the Mandarin Oriental Hotel.Logistics Services went for goldApril 18, 2005: The team fromDKSH HEC Taiwan was very proudto receive the 2004 National GoldAward for Logistics Service Qualityfrom the Taiwan ConsumerFoundation Association. This prestigiousaward is given in several differentcategories and DKSH Taiwanwas the only logistics company honouredfor its service quality. This isthe latest recognition of our operationssince the GMP certificate forwarehouse storage and re-labelling ofpharmaceutical products was awardedin April, 2004.C.R. Lu,Supply Chain Director, DKSH TaiwanFrom left to right:FS Hsu, Thomas Tong, C.R. Lu, Nancy Chen, Erik Trock-Jansen, CH Chou, and CH Chen.DKSH Taiwan – The M-ProjectApril 15, 2005 marked a milestonefor DKSH HEC Taiwan with thesigning of a cooperation agreementwith Maywufa, a local company anddistributor of Novartis Pharmaceuticals,whose annual top line isabout USD 130 million.C.R. LuSupply Chain DirectorDKSH TaiwanDKSH Taiwan and Maywufa willenter into a strategic partnership toco-operate in providing logistics andsales force services. As a result,DKSH HEC Taiwan is now the 2ndlargest healthcare distributor inTaiwan with a top line of over USD320 million.Attending the signing ceremonyin Taipei were, from right to left:Maywufa Vice Chairman Chen,Maywufa Chairman Lee,DKSH Vice ChairmanChristophe R. Gautier, andDKSH Executive Vice PresidentGuido Oelkers.

24 H E A L T H C A R EThe Fantree Foundationlaunched inthe PhilippinesWith infectious enthusiasmand selfless commitment,the employees of DKSHPhilippines, Inc. supportthe Fantree Foundationwhich only has one goal:helping poor children andtheir families.Diethelm Philippines, Inc. (DPI) hasbeen operating for almost six years,striving to become the partner ofchoice in distribution and marketing.The company has comea long way in achieving its goalsand gaining much recognitionfrom the business sector with itsworld-class facility in Mamplasan,Laguna and its strong workforce ofaround 1,200 employees.With such positive developments,DPI would now like to put somethingback into the local community.Diethelm Philippines Inc. hasstarted doing charity work in differentareas of Metro Manila, where,unfortunately, poor and sick childrenabound. Some DPI employees havealready been doing this good workfor some time. Thanks to the initialsuccesses of their efforts, our com-pany is now in a position to pursueformal charity work by creating afoundation where everyone connectedto the “Fantree” can help in hisown way.Youth is the hope and future ofour world. With this in mind, weheld out a helping hand to disadvantagedchildren – orphaned, deprivedof proper education or decent livingstandards. This is why we are establishingour own foundation. TheFantree Foundation is the most effectivecontribution we can makeand is currently active in the followingprojects:• Helping improve living and healthconditions of poor Filipinos, especiallychildren• Distributing medicines, vitamins,and other healthcare products thatare donated by various manufacturingcompanies• Providing access to healthcareproducts for the poor• Supporting livelihood projects inaffected areas: For example orderingbags and Christmas cards fromthe Little Sisters of the Assumption

25The Fantree Foundation helps to provide better educationand to improve living standards and health conditions forpoor children in the Philippines.Disadvantaged Filipino children supported by theFantree Foundation.and Kanlugan sa ER-MA insteadof buying from regular shops• Organizing educational activitieslike games and sports days for childrenin the poor areas of MetroManila• Helping other charitable institutionsto build infrastructures andpurchase basic school materials• Supporting fund-raising activitiesfor infrastructure projects, likefarmland and school buildings• Enabling collection of unuseditems, such as books, toys, cloth-Recycled handmadecards soldto raise moneyfor charity.ing and other necessities for poorfamilies in Manila• Expanding community assistanceto poor villages in the provinces• Supporting “soup kitchens” andother feeding programsAt present, the foundation receivesgenerous donations from UnitedLaboratories, Am-Europharma,Solvay and other multinationalpharmaceutical companies.Institutions supported by the FantreeFoundation include:• Missionaries of Charity, Alay ngPuso (Binondo) Mother Theresa• Asian Students’ ChristianFoundation (ASCF)• Kanlungan sa ER-MA Ministry,Inc. (Ermita-Malate)• Little Sisters of the AssumptionMalibay, PasayMoving forward, the FantreeFoundation will continue to workwith these various groups and institutionsto help raise, however modestly,the living standards of less privilegedmembers of the community.If you are interested to help, pleaseget in contact with Dean Camua:dean.camua@dksh.comDean Clark M. CamuaCorporateCommunicationsDiethelm PhilippinesInc.

26 TECHNOLOGYJapan labdepartment’sformula forsuccessAdding value + expandingcapabilities = improvedresults.To balance the mix of capital investment,service and related productsales, Technology Japan decided tofurther develop its analytical instrumentbusiness. Expansion of marketreach from government and academicsectors to include industrial customerswas already under way, nowfurther investments were necessaryto cater for the expected growth –expanding existing facilities and addingvalue to the sales process.Objectives• To improve the additional valuethat TEC Japan brings to thesales and service process fromboth customer and supplierperspectives• To create a local environmentwhere customers could evaluateinstruments with their own applications• To respond to a trend that customersexpect more from suppliersthan just selling products• To provide a continuous learningenvironment for our staff to buildon their knowledge of customerrelatedapplicationsProducts and applicationsThe instruments we sell are complexand mostly represent the leadingedge of scientific and analyticalmethodology. These advanced processesrequire a “hands-on experience”in order to truly demonstrateKeisuke Miyamoto, Hiroshi Iida andNaoya Hirano, Anton Paar.Teamwork was one of the key factorsfor the success of this project.the product’s value to the customer.The fields of precision analysis wecover include rheometry & viscometry,microcalorimetry, permeationanalysis, elemental and fluid analysisand mass spectroscopy.A large part of our business isbased on applications used in the researchof food and material sciences,covering both R&D and process development.Our customers are thusacademics, specialist scientists andengineers with a keen eye for detail.The idea was to double the demonstrationspace for our principals’equipment from 165 to 330 m 2 . Thelab is in the Ryutsu Center, centrallylocated at Heiwajima in southernTokyo, and close to Haneda Airport,rail links and the expressway system.From idea to planThe key factor for success is a solidplan. Over a period of six months,the existing facility was evaluatedand a wish-list of facilities and serviceswas drawn up with the followingelements: key technical requirements,improvements needed, ex-pansion capabilities, what productswould be demonstrated and servicesprovided, and space requirementsand scheduling.The first issue was that the newspace had to be close to the existingwarehouse and service area. As luckwould have it, the space next door toour service center had just becomevacant.From planning to implementationA final specification was drawn upand the tender process set in motion.Once we had the final bids, we wentinto the negotiation and reviewphase, while the necessary licensesand approvals were sought from thefire department, building owners etc.This is an exhaustive process inJapan, but once the plan was approved,the space secured and thedesign set, the plan was implementedquickly.

27Researchers with an automatic reactioncalorimeter from H.E.L. in UK.Junji Nakamura, Microcal.ResultsThe result was a facility completedon schedule and 12% underbudget that, to quote one of ourmost demanding suppliers, is a modelfor all partners in the region, featuring• Dedicated and filtered powercircuits• Gas delivery and storage systems(N 2 , O 2 , He)• EMI wall shielding to preventexternal electromagneticinterference• High-efficiency gas and smokeexhaust system• Latest demonstration instruments(for application testing)• Dedicated training facility• Auxiliary space for demonstratingproducts for the photo lab market• High-speed Internet accessProducts currently being demonstratedat the new facility are fromthe following companies: AntonPaar, Elementar, Microcal, Illinoios,Precisa, Hiden, Durst and Viscom.BenefitsSales of Anton Paar and AntonPaar Germany have increased by27% and 21% respectively. The facilityhas attracted new customersand market opportunities, e.g. thepetrochemical and industrial chemicalsector. Customers and suppliersare delighted. We now have a muchneededtechnical training facility,and additional demonstration spacefor other equipment from theGraphic Arts and Printing (GAP)and the Integrated Circuits andElectronics (IC&E) product portfolios.We expect a synergy effect withSLC and F&I as their need for samplemeasurement increases.Key figuresAs with any successful project,one of the most important elementswas teamwork.Many thanks to Hiroshi Iida,Tsugumitsu Kunio, Katsuji Kasagiand Mike Muramatsu and theirteams for bringing it all together: ontime, under budget and according tothe agreed specification.Additional StatisticsTotal Analytical InstrumentSales (2004)• JPY 1.3 billionStaff• Sales 12• Marketing 1• Application Engineering 3• Service Engineers 6Investment Value• Budgeted: JPY 25 million• Actual: JPY 22 millionLuke MitchellManaging Directorand General ManagerTechnologyNihon SiberHegner K.K.,Japan

28 T ECHNOLOGYDKSH at the Packaging &Confectionery MachinerySummitFrom April 21 to 27, 2005,18 fully booked halls inDüsseldorf, Germany, hostedthe International Packaging& Confectionery MachineryFair: 2,668 exhibitors offered176,000 visitors from 106countries opportunities forinformation and investment.A 3% increase over 2003 in thenumber of experts from outsideGermany accounted for 55 % of visitors,most from Europe, but alsoover 30,000 from Asia, the majorityfrom India, and sizeable numbersfrom China, Indonesia andThailand.Interpack 2005 presented newproducts in the food, pharmaceuticalsand cosmetics segments andinnovative solutions in all-in servicesfor all consumer packaging sectors.The fair covers everything from manufacturingprocesses to packaged endproducts and its high internationalImpressions from the Interpack 2005 inDüsseldorf, Germany.DKSH Technology top managers from all over the world attended the packaging symposium.Front row from left: Chris Enderle, Luke Mitchell and Paul Chaplin.profile shows the market‘s recognitionof Interpack as global leader,with strong Asian interest. Exhibitorsof packaging and confectionery machinerywere very pleased with thefair’s outcome: Almost 86 % of interviewsrated results as very good tosatisfactory, with brisk post-fair businessexpected by as many as 89.6 %.For the Business Unit Technology,the Business Line Printing, Processingand Packaging represents more than20 % of its business and last year contributedabout a quarter of its profitability.DKSH’s BU TEC broughtover 25 specialists from Australia,Japan, China, Taiwan, Korea, thePhilippines and Thailand and held apackaging symposium on day two.DKSH staff presented their organizationsand product portfolios andshared know-how on the productsand suppliers they handle. Managersfrom countries relatively new tofood processing and packagingtook the chance to learn from theexperience of our Japanese andAustralian colleagues. The eventwas rounded off by dinner in theDüsseldorfer Altstadt.Everyone had tight schedules withour European and American suppliers.The scope of tasks included meetingkey customers like MorinagaMilk and Key Coffee and searchingfor innovative new products to completethe portfolio, while importanttalks were held with key suppliers includingIWKA Group, HambaFilltec, Probat, Rondo Dogde, BoschSapal, Schwertle and Alfa. Agreementswere also signed with Inmaco BV andWheymueller for several countries.Let’s make the most of the newopportunities and contacts and seeyou at Interpack 2008.Beat MeierManager PurchasingOffice for AsiaBusiness UnitTechnologyDKSH Switzerland Ltd.

29Largest mobilephone operatorin Thailand picks Cummins forstandby GensetsAdvanced Info Serviceat Shinawatra Tower 2in Bangkok, Thailand.The products of AdvancedInfo Service (AIS) havecutting edge performancethat is unsurpassed.Where:The Metropolitan Operations &Maintenance (MOM) Departmentof Advanced Info ServiceCo Ltd, Shinawatra Tower 2,Bangkok, ThailandWhat:Two units of 1,000 KVA 800DFHD gensets, each poweredby a QST30G4 diesel engine,together with Power CommandControl and Annunciator fromCummins Power GenerationPurpose:Standby power for the MOMDepartment’s 2,000 KVA powerrequirementsPrimary Choice Factors:Proven track-record, product reliability,cost-competitiveness,lower noise levels, PowerCommand Control, quick-responseservice supportAdvanced Info Service (AIS) is thewireless telecommunications arm ofShin Corp of Bangkok, Thailand, andoperates the largest GSM 900 mobilenetwork and the second largest GSM1,800 network in the country. It is amajor importer and distributor ofmobile phones and accessories andprovides a fixed-line corporate datanetworking service.AIS was established in 1986. In1990, the company was granted a20-year Build-Transfer-Operate concessionby the Telephone Organizationof Thailand to operate cellphonenetworks using analog NMT900 and digital GSM 900 systems.In 1996, this concession was extendedto 25 years.Standby PowerAIS occupies four floors of the21-floor Shinawatra Tower 2 inBangkok. The MOM Departmenthas 350 employees and comprisesthe Mobile Switching Center,Operations & Maintenance Centerand MSC Billing Center, whichoperate round the clock. About 65 %of its power supply is used formobile switching operations, while35 % is used for building facilitiessuch as air-conditioning, lightingand uninterrupted power supply.As reliable power supplies are essentialfor operation, the AIS MOMDepartment installed a standby generatorsystem from Cummins PowerGeneration to cover the total2,000 KVA power requirement. Thesystem, comprising two 1,000 KVA800 DFHD gensets, each poweredby a QST30G4 diesel engine, wascommissioned in April 2002.Cummins Power Generation’s advancedPower Command Control.“Having installed 12 units of variousCummins Power Generationgensets at several other AIS mobileswitching facilities in 2001, weknew that Cummins generatorshave low noise levels, less than 80dBA at one meter”, said Mr. Somkit,Engineering Support Manager, AIS.“This, together with product reliabilityand cost-competitiveness,and the quick-response service supportprovided by Cummins’ longtermdistribution partner Diethelm,were compelling reasons to chooseCummins gensets for this switchingdepartment as well”.Power Command GeneratorSets ControlOnly Cummins Power Generationgensets are equipped with the stateof-the-art,microprocessor-basedPower Command Control. Thisfield-proven control system offersseveral attractive features, includingintegrated digital governing andvoltage regulation, analog and digitalmetering, digital engine monitoringsystems, smart-starting systems thatregulate the fuel system, batterymonitoring systems that test gensetbatteries, and others. The entireStandby Power Generation Plant wasdesigned, delivered, commissionedand installed by our own team ofhighly skilled specialists of theBusiness Unit Technology ofDiethelm & Co., Thailand.Udom CharoenpongExecutiveMarketing ManagerCummins DieselPower GenerationDiethelm & Co. Ltd.,Thailand

30 TECHNOLOGYAnton Paar –A precise measureof DKSH excellenceWhat began in 1981in China has becomea partnership of greatimportance to the BusinessLine Instrumentation of theBusiness Unit Technology.Anton Paarinstrumentsfor samplepreparation andmicrowavesynthesis.Today, Anton Paar is a partner ofDKSH in Japan, China, Singapore,Malaysia and Vietnam. Over theyears, sales for this high-tech laboratoryinstrument producer have developedto a multi-million SwissFranc turnover. In fact, our Japaneseinstrument operation has beennamed the best distributor of AntonPaar in the Far East for the past twoyears.Anton Paar GmbH produceshigh-quality measuring and analysisinstruments for industrial andresearch applications and is the establishedworld leader in somebranches of measuring technology.Throughout eighty successful years,the driving force behind the companyhas been the innovative spirit ofits employees and their commitmentto quality. Openness to the requirementsof their consumers and attentionto developments in their marketsform the basis for new productideas. An excellent R&D departmentand partnerships with external researchinstitutes allow Anton Paar toturn these ideas into instruments atthe cutting edge of technology.Apart from material and colloidscience, precision manufacturingand research & development, thecompany’s main activities are in:Density and concentrationmeasurementfor food and beverages, chemicalproducts, fuels and oils.Anton Paar measuring instrumentsfor determining the density ofliquids and gases are used in manyindustries, testing agencies and researchinstitutes for analysis andquality control. Besides density metersthat work on the oscillatingU-tube principle,Anton Paar alsoproduces instrumentsfor CO 2m e a s u r e m e n tand alcohol determination. Theproduct range covers portable densitymeters, high-precision lab instrumentsand sensors for direct installationin production lines. Customersinclude Formula 1 teams, refineriesand almost all the well-known beverageproducers in the world. Withover 60,000 density meters sold anda market share of 70%, Anton Paaris number one in this field worldwide.Rheometry and viscometryfor food, cosmetics, coatings, plastics,construction materials, pharmaceuticalproducts and lubricants.Anton Paar develops, producesand distributes a wide range of rheometersused to determine the defor-mation and flow behavior of materialswhen acted on by outside forces.Rheometers are high-precision instrumentswhich produce very smallforces and deformations and allowstructural changes to be measured inthe macroscopic range. Over the lastdecade, Anton Paar has become theestablished technological leaderamong rheometer manufacturers,bringing more new products ontothe market and registeredmore patentsthan any otherrheometer company.Besides rheometers,the company also offers a rangeof viscometers to measure the viscosityof substances. These are used inquality control and research & development.Microwave synthesisfor pharmaceutical research andbiochemistry.Microwave-assisted organic synthesisis growing in importance inthe field of preparative chemistry.Combining direct heating using microwaveswith reactions under pressureleads to a drastic reduction ofreaction time from hours to minutes.However, exact pressure and temperaturemeasurement are required toensure a controlled process, as well ascomprehensive safety measures.

31All that glitters...DKSH becomesthe solution provideramong Thailand‘sgold shops.Fischerscope X-Ray Model XDAL.Based on long-standing experiencein the field of microwave decomposition,Anton Paar produces highperformancesynthesis reactors withparallel rotors and a reaction volumeof up to one liter. Very high pressureand temperature limits allow completelynew synthesis procedures.Sample preparationfor checks on food and trace analysisin forensic medicine and materialsscience.To identify the smallest traces ofchemical substances, analyzed samplesmust be brought into liquidform, a procedure called wet-chemicaldecomposition. The analysis processuses several acids in which solidcomponents can be dissolved. Toensure a controlled and acceleratedprocess requires powerful instrumentswhich guarantee efficient andsafe operation. Anton Paar has beendeveloping and producing instrumentsfor sample decomposition formore than 20 years and numerousinnovations over this period havemade Anton Paar the worldwide specialistfor difficult applications.Beat MeierManager Purchasing Office for AsiaBusiness Unit TechnologyDKSH Switzerland Ltd.After numerous customers complaintedto the Thai ConsumerProtection Agency (CPA) aboutmany gold shops that claim theirgold is of 96.5% purity, the CPA hasannounced the application of standardtesting methods to determinegold purity. The agency found outthat most of the shops’ claims wereincorrect. For the CPA it is essentialthat Thai gold quality meets internationalstandards. This was the reasonthe agency announced that manufacturersmust undertake a percentageanalysis to prove the quality oftheir gold. The standard method forgold analysis is the so-called “destructivetest”, in which a gold sampleis destroyed for analysis purposes.The alternative is the “non-destructivetest”, which works much fasterand which is carried out with specialinstruments without harming thesample.The Fischer X-Ray FluorescenceMeasuring Instrument offers the bestsolution for analyzing the purity ofgold via the non-destructive testmethod. Fischer is one of the world’sleading companies in this field, withmore than 25 years’ experience.For over ten years, Diethelm &Co., Thailand‘s Technology BusinessUnit has been the exclusive distributorof Fischer in Thailand. Thanks toclose contact with customer targetThailand’s two major gold manufacturershave long used Fischer X-ray instruments toanalyze the quality of their gold:Gold Long Hong Group (right)and Goldsmith Hua Seng Heng.groups, in this case gold manufacturers,gold shops, and frequenttechnical seminars allover the country, we havesucceeded in placing nearly50 units of Fischer X-RayInstruments on the market,while gaining a reputationas the “solution providers”among Thailand’sgold shops.Jareuk MeekhanthongExecutiveMarketing ManagerInstrumentationDiethelm & Co. Ltd.,Thailand

32 F O O D & I N G R E D I E N T SResensa – greening thePhilippine iced tea marketFrom e-commerce to a newformula for green iced tea:Andrian Lee’s story isa real success story.There’s something different aboutAndrian Lee. Maybe it has to dowith his almost going bankrupt afterbad start-up decisions in the Asiancrash. Or having failed big-time as anetwork marketer. Today, AndrianLee is known to insiders as the entrepreneur’sentrepreneur – someonelooking not to obtain wealth, but tooffer financial freedom to anyonewilling to make the extra effort. Aftergraduating in communication artsfrom Ateneo de Manila University,Lee started out in the corporateworld, developing and launchingnew products.Reinventing green tea, inventingResensaAs the CEO of Trevoca, a HongKong based e-commerce company,which operates primarily in HongKong, the Philippines, and theMiddle East, Andrian Lee broughtwith him a passion for business andlearning, which led to an unexpectedcoincidence: his penchant for greentea provided the inspiration to reinventthe beverage and, create anotherwinning product – “Resensa”.“Filipinos like their drinks sweetand instant, so the challenge was tomake green tea more palatable tothem,” recalls Andrian. He immediatelysought the views of his businesspartners. While his team was busilyhunched over its drawing boards,Lee toured Asia looking for possiblesources of green tea and tasting hundredsof different concoctions. 2002saw the start of Trevoca’s businessrelationship with Edward KellerPhilippines (DKSH).Trevoca and DKSH share acommon visionOne of Trevoca’s founding membershad previously done businesswith Edward Keller Philippines inthe field of fragrances and was thusfamiliar with DKSH as an acknowledgedleader in marketing, servicesand distribution all over Asia. It wasthe beginning of a very exciting partnershipdeveloping trend-settingproducts.It all started with the arrival of anemail in the 2nd quarter of 2002: aproduct development request for aniced tea mix. After initial meetingswith the Key Account Manager, itwas clear to Andrian Lee that thisproduct would be something newand completely different, and a foreignconcept to most Filipinos. Therequest was for an iced tea mix inpowder form, using greentea as a base. In a worldwhere iced tea meant a glassof golden-brown, extremelysweet, flavored liquid, this was areal challenge.Led by Teresa Balbieran, theDKSH Philippine R&D Team wentto work on Andrian Lee’s first samplesof green tea powder. Over thecourse of several trials and hundredsof liters of green iced tea, the formulaslowly came together. The DKSHnetwork was brought into play, helpingto source green tea powder fromShanghai, and Lee began to feel thatthey were approaching the taste profilehe was looking for. The finalphase of product development tookplace in the DKSH CanlubangPlant, where adjustments were madeand the formula perfected. “I’ve neverdrunk so much green tea in oneafternoon,” laughs Andrian Lee.“But if that’s what it takes to comeup with the magic formula, then sobe it”. Three months after that firstemail enquiry, the moment of truthwas approaching: Resensa was aboutto be born.Sample tests were commissionedto get an initial feel for the market.And the market said yes please –Resensa found a high level of accep-

33“DKSH definitely stands true toits commitment of supplying innovativeconcepts and solutionsto start-ups like ours.”Andrian Lee, CEO of Trevoca.tance among Filipinos, who wantedsomething healthy yet refreshing todrink. Orders increased. The imagemany Filipinos had of iced tea neededremolding, so in 2003 Resensacreated a wave of health awareness.Within a few months, Trevoca waslisted in the top 10 key accounts ofBusiness Unit Food & IngredientsPhilippines, dislodging establishedfood companies in the process.Going the extra mileOne important facet of the DKSHSales Team is after-sales service.DKSH provides ongoing shelf-lifestudies and regular Quality Assuranceassistance, and advises clients on accurateplans and forecasts. Salesreached an all-time high in June2004, compromising supply as incominggreen tea and flavoring shipmentsarrived late. Stocks were highlycritical and, as bad luck wouldhave it, all air- and sea-couriered parcelswere delayed.It was time that the DKSHSourcing network was put in motion.With stock outs and orderbacklogs piling up, DKSH had toproduce and deliver within two days,or face the wrath of Trevoca’s distributors.It took a lot of late-nightphone calls and the involvement ofDKSH’s Shanghai office with localsuppliers, but the materials weresuccessfully delivered to Manilapersonally in order to meet ourcommitments.“We are very happy that DKSHand Trevoca share the vision of creatinga genuinely healthy beverage fordomestic and international markets.Their credibility and incredible servicehave enabled us to develop aniced tea variant that reflects superiorquality. DKSH definitely stands trueto its commitment of supplying innovativeconcepts and solutions tostart-ups like ours,” declares Lee.The partnership with DKSH has enabledTrevoca to export Resensa toaround 37 countries worldwide.These include Japan, Hong Kong,Korea, Taiwan, Saudi Arabia and theUnited Arab Emirates, all in just oneyear of operation, while also managingto penetrate the US, Europeanand Canadian markets.Resensa Green Iced Tea: A worldwidefirst to quench the thirstAs a low-calorie beverage, ResensaGreen Iced Tea is fast becoming a hitacross the archipelago. Premier golfand country clubs, restaurants, andfood chains actively promote thisunique beverage to their clienteles,who have become very aware of whatthey eat and drink. As the world’sfirst powdered green iced tea mix,many partner establishments havefound Resensa highly adaptable foruse in their menu lines. “They maketheir own slushes and smoothieswith Resensa Green Iced Tea. It isproving to be an amazingly versatiledrink,” Lee says with a smile.Still developing new ideasAside from keeping his weekendsfree for time with his family, the entrepreneurand inventor Lee seemsto be able to do without rest almostcompletely. After founding Trevocaand launching Resensa, he still has alot of ideas. The basis for the partnershipwith DKSH is growing evermore solid as innovative new productsare developed, tapping into theDKSH pool of ingredients. We canexpect a lot more firsts from thisunique, dynamic company.Andrea H.Trinidad-EchavezTrevoca, PhilippinesMia S. PolintanSales & MarketingManager, Business UnitFood & Ingredients,Edward Keller(Philippines), Inc.

34 F O O D & I N G R E D I E N T SExtraordinaryquality is nota matter of chanceDKSH Switzerland enhancesGivaudan cooperation withnew international supplyagreement awarded in theface of stiff competition.After two years supplying aromachemicals made by Chisso Japan toall European sites of Givaudan, aleading global flavourings company,DKSH Switzerland was invited tobid for a global contract in 2005,involving all production sites ofGivaudan worldwide, and in competitionwith the existing UK supplierand a very aggressive Israeli company.Apart from a competitive price,we had to guarantee prompt deliveryfor short-term demands and fulfillvery demanding supply requirements.Plants to be supplied: Two inSwitzerland and one each in Spain,Germany, the Netherlands and theUK; two plants in the USA and oneeach in Mexico, Brazil and Argentina;and a plant each in China, Singaporeand Japan.After talks supported by colleaguesfrom NihonSiber Hegner, Tokyo atGivaudan: application testing for confectionery.Chisso’s headquarters in Japan, andvisits to Givaudan’s Purchasing Departmentnear Zurich, we signed alarge global annual supply contractfor three items with a volumeof 16.5 tons: trans-2-Hexenal, a green, citrusy,orange, pungent odor;trans-2-Hexenol, a sharp, green,leafy, fruity, unripe banana odor; andtrans-2-Hexenyl Acetate, a waxy,banana-like odor with cinnamonundertones. These products are alsoused in perfume production.We now not only had to set up inventoryaround the world, but alsodeal with different legislations in thevarious countries. A further challengewas finding out the quantitieseach factory required and the frequencyand volumes to be supplied.After a while we gave up, as this informationwas not obtainable.Working on estimates, we createdstocks in Switzerland, where weknow the highest demand will begenerated by the two Swiss operations;DKSH North America was agreat help organizing warehousingand procuring deliveries; and Asia,Signing a globalannual supplycontract.where we decided to deliver directlyfrom our principal’s plant.Finally, we set up a system tocontrol and restock thedifferent inventories aroundthe world and executeshort-notice orders from allGivaudan sites.Our performance was outstandingand Givaudan has rated DKSHan excellent supplier, as the VendorRating Certificate shows.The DKSH Group representsGivaudan in Japan and has for overten years successfully developed theirflavour business to small and medium-sizedenterprises. F&I organizationsaround the world are regularsuppliers of different intermediatesto Givaudan production sites.Markus VettigerSenior Vice PresidentBusiness Unit Food &IngredientsDKSH Switzerland Ltd.

S P E C I A L T Y & L I F E S C I E N C E C H E M I C A L S35SLC Philippines wins 2004Chemicals Supplier of the Year“Setting standards in allmajor businesses in theindustry we cover” is thevision of DKSH Philippines.The 4th Annual Splash Corporation“Gawad” Awards Night at the NewWorld Hotel on January 21, 2005saw Specialty & Life ScienceChemicals Philippines honored withthe 2004 Supplier of the Year in theChemicals category.A rigorous selection process witha Supplier Performance Scorecardevaluated the following factors:• Timeliness (time taken to completea delivery from the issue of apurchase order) – 40 %• Cost (competitiveness based onagreed best price) – 10 %• Quality (percentage of receiptsthat were accepted) – 50 %DKSH customer: a keyplayer inpersonal care productsIn her speech, Gladys Casinto,Manager of Personal & HouseholdCare and Account Manager for Splash,thanked Splash management and stafffor the award and expressed determinationto repeat the feat in 2005.Established in 1985 by the husband-and-wifeteam of Drs. Rolandoand Rosalinda Hortaleza, SplashCorporation is the recognized leaderin skin care products and a key playerin personal care products in thePhilippines. An independent monitor– Euromonitor 2003 – showedthat in 2002 Splash Corporation wasin 6th place in the highly-competitiveP 69.3 billion Philippines cosmeticsand toiletry industry. And in thefastest growing segment of the industry,skin care, Splash Corporationled the field with an almost 21%share of the total retail value of theindustry.DKSH improves innovation for acompetitive edgeSplash Corporation makes a widerange of skin and hair care products:whitening & natural-based products,exfoliants and products for the professionalmarket. Splash is continuingto expand internationally, withproducts in retail outlets in Indonesia,Malaysia, the Middle East and partsof the USA and Europe, while keepingthe Philippines as its researchand production hub, supported bythe Splash Research Institute and theSplash University.DKSH Specialty & Life ScienceChemicals Philippines suppliesSplash with silicones, sunscreenagents, fragrances, emulsifiers, preservativesand rheology modifiers. Asa value-added service, technicaltraining and product presentationsare organized jointly with principalsto improve innovation for a competitiveedge. This award has earnedSLC Philippines Preferred Supplierstatus, which will serve to further raisethe bar of performance excellence.DKSH supplies Splash Corporation with highlyspecialized raw materials and formulations fortheir skin and personal care products.From right to left: DKSH Philippines President& Country Manager, Wolfgang Schanzenbachwith Lourdes Cuartero, VP SLC Philippines,Dr. Rolando Hortaleza, CEO of Splash Holdingsand Gladys Casinto, Manager Personal &Household Care at the 4th Annual GawadAwards Night.Lourdes CuarteroVice PresidentBusiness Unit Specialty& Life ScienceChemicalsEdward KellerPhilippines Inc.Gladys CasintoBusiness Line ManagerPersonal & HouseholdCareEdward KellerPhilippines Inc.

36 S P E C I A L T Y & L I F E S C I E N C E C H E M I C A L SAn enormousstep towardsthe futureThe merger of NanoTechand the ABC Group givesthe nanotechnology industrya new market leader.The company’s philosophy is to createa prosperous and environmentallyfriendly future by means ofnanotechnology, technology usingmicroscopically small components.ABC’s nanotechnology is based onnano-silver particles. Silver is one ofthe most universally found naturalantibiotics and has been medicallyproved to kill more than 650 disease-causingorganisms. Nano-silverhas an extremely large specific surfacearea, which increases the contactarea with bacteria or fungi andvastly improves its bactericidal andfungicidal effectiveness.Sarpu TM , one of ABC NanoTech’sproducts, recently enjoyed a successfullaunch and is now exclusively distributedto international marketsthrough DKSH Business UnitSpecialty & Life Science Chemicals.DKSH and the ABC NanoTechprojectOne of the constant challenges tomodern life is the presence of microorganismsand their associated potentialdangers. Consumers have becomeincreasingly aware of the needfor a hygienic lifestyle, particularlyin the light of recent MRSA scares inhospitals. This is evidenced by thesignificant increase in the range ofantimicrobial products now on themarket. Other market sectors havealso been influenced as they strive toprovide their products with anti-microbialproperties. These have beenRibbon-cutting ceremony at ABC NanoTech openingwith (from second left): Dongmyung Kim, Natale Capri,Thomas Sul, Jongman Lee, Byungmun Sohn.introduced successfullyin the Asian plastics industry,where electronicdomestic applianceshave been furnishedwith nano-silver particles.Companies are attempting torepeat this success in related markets,with a number of trials already inprogress for hygienic coating applicationsin Europe.Opening ceremonyDecember 2003 saw the merger ofNanoTech with the ABC Group andthe subsequent renaming of the newcompany as ABC NanoTech. OnJanuary 25, 2005, ABC NanoTechcelebrated the merger with ABCGroup.Many distinguished guests wereinvited, among them Mr. ByungmunSohn, chairman of ABC Group, andMr. Jongman Lee, president of ABCNanoTech, who opened proceedingsby expressing their enthusiasm forthe amalgamation of their respectivecompanies in Dajejeon, Korea. ABCNanoTech also presented its latest investments:the main building, theresearch & development center andtwo factories.We look forward to a long andsuccessful relationship.The ABC NanoTechbuilding.Cutting the cake at the ABC NanoTechopening ceremony.Dongmyung KimLocal Business UnitManager Specialty &Life Science ChemicalsDKSH Korea Ltd.

37The European Coatings Show2005 offers new marketsfor Europe and AsiaA major event for ourcustomers to learn first handabout new raw materials andtechnology trends.687 exhibitors, over 19,000 tradevisitors: This year’s EuropeanCoatings Show (ECS) in Nurembergwas larger than ever, attracting producersof coatings, printing inks, adhesivesand construction chemicalsand their suppliers.This year, our sales manager RalfMueller managed to place 10+ editorialson nanomaterials in specialistjournals, attracting many potentialnew customers seeking innovativeantibacterial solutions with nanosilverparticles for medical coatings,sterile medical and food packaging,and coatings for air-conditioningsystems and refrigerators.Thomas Sul, HCMT Germanyand Business Line Manager forCoating & Polymer gave a presentationduring Purchasers’ Day, the 2ndEuropean Congress for coating industrybuyers, to inform key playersabout sourcing new raw materialsfrom Asia.What DKSH can do for customersThe challenge for European companiesis to find new sources of rawmaterials and thus end dependencyon monopolists and subsequentweak negotiating positions. A globalcompany like DKSH, focussed onAsia and with its own sourcing network,can help these customers findnew sources or even build up newsuppliers for them, while at the sametime handling the risks involved indirect dealings with Asia.We had two new suppliers at ECS:Eastwell Korea products includeinkjet and solvent dyes for plastics,and Eutec Taiwan additives for thepaints and polymer industry. DKSHpresented proven niche productsfrom high-tech suppliers in Japanand Korea, and Chinese polymerintermediates as economical alternativesto established European andAmerican brands.Our red-hot booth with largeformatflatscreens attracted over200 qualified visit reports and alarge number of customers who justdropped by to say hello. Our teamof experts is following up thesereports which are sure to generatenew business. A worthwhile investmentfor the Business LineCoating & Polymer!Generating new businessDKSH brought 20 experts toNuremberg for a product trainingworkshop with selected suppliers.Eastwell, Eutec and Nanotechpresented portfolios, applications,market trends etc. to enable us topromote these promising new productseffectively.As always, our motto “work hardand play hard” was followed to theletter. We will long remember themedieval dinner, complete withminstrel, and our Korean supplierDr. Kang, who taught us the Koreanfor “cheers”: Vi-a-jo!Rudolf Gitzelmann, Vice President Business UnitSpecialty & Life Science Chemicals in discussionwith a customer.The red-hot DKSH booth attracted manyvisitors.Thomas SulBusiness Line ManagerCoating & Polymer andGeneral Manager DKSHGmbH, GermanyWilhelm BestmannSales ManagerBusiness Line Coating &PolymerDKSH GmbH, Germany

38 P R E S S R E V I E W“I believe that when you enter a country to invest,you must have the vision and strategy to set downyour roadmap and the commitment and patienceto follow that roadmap through.”CEO Dr. Joerg Wolle in Vietnam Economic Times, April 2005DKSH has benefited fromextensive positive mediacoverage in internationalpublications all over theworld.VIET NAM NEWSMarch 1, 2005HANDELSZEITUNGJanuary 12, 2005Die DKSH-Mitarbeitendenbrachten Medikamente vonLagerhäusern in Spitäler, versorgtendiverse Regionen mitNahrungsmitteln, Waren destäglichen Bedarfs und Wasser.“The new facility will significantlyboost the coverage andefficiency of the services wecan offer our local business partners,such as Vimedimex andLotus Trading,” said Victor Hew,general director of DiethelmVietnam.THE SAIGON TIMES WEEKLYMarch 5, 2005Diethelm Vietnam Co. Ltd. hasinaugurated the second phase ofits logistics center in Vietnam-Singapore Industrial Park in BinhDuong Province.THE SAIGON TIMES DAILYMarch 2, 2005“We open this center to show ourcommitment to Vietnam and toprovide superior logistics services,”Wolle told. “This world-classfacility is a key building block tostrengthen our leading positionin the logistics industry inVietnam.”

39VIETNAM INVESTMENTREVIEWMarch 14-20, 2005This new facility offers a valueaddedpackage of logistics servicesin a complex with capacity tostore 8,000 pallets and a fullrange of logistics facilities includingcomputerised warehouse, inventorymanagement and ambienttemperature control systems.BANGKOK POSTApril 6, 2005Diethelm & Co, Ltd, a part ofDKSH Group, gave 1,000,000to the Sirindhorn NationalEnvironmental Park inPhetchaburi province following atree planting ceremony whichmarked the beginning ofDiethelm’s celebrations of its centenaryin Thailand.VIETNAM ECONOMIC TIMESApril 2005With our comprehensive network,we provide companies inVietnam with logistics services tobring their products to customers.We also help to promoteVietnamese products in Europeancountries as well as in Japan.TALKIES HONG KONGMarch, 2005As Asia’s largest marketing, salesand distribution group, DKSH isresponsible for sourcing a varietyof products for our homes – fromeveryday items like Kraft cheeseand Gillette shavers to high-endluxury products such as RogerDubuis watches.

40 P R E S S R E V I E WNZZ AM SONNTAGApril 17, 2005“Wir haben im vergangenen Jahrden Umsatz mit der Marke RogerDubuis in Asien verdoppelt”, sagtJörg Wolle, Chef von DKSH inZürich. Der mit 5.8 Mrd. Fr.Umsatz grösste Handels- undLogistikkonzern in Asien vertreibtmehrere Schweizer Marken– darunter auch Roger Dubuis.CASHApril 28, 2005VIETNAM ECONOMIC NEWSMay 3, 2005Today, our business network hasextended to 38 provinces and wehave direct links with more than20,000 retail outlets throughoutVietnam. Our aim is to expandDiethelm Vietnam Co., Ltd. tobecome the largest marketingand logistics service provider inVietnam.NEUE ZÜRCHER ZEITUNGMay 11, 2005Die Welthandelsfirma DiethelmKeller SiberHegner (DKSH) hatim vergangenen Jahr die vonmehreren asiatischen Ländernausgehende Dynamik ausgenütztund ihre Ertragskraft weiter gestärkt.Die Aussichten für mehrWachstum und Profit sind günstig.TAGES-ANZEIGERMay 11, 2005KINH TE VIET NAMMay 3, 2005BASLER ZEITUNGMay 11, 2005Der Handel mit Asien blüht.Davon profitiert als Dienstleistungsunternehmenund Partnerinunzähliger Industriefirmen vonder Konsumgüter- über dieChemie- bis zur Maschinenindustrieauch DKSH.„Der Trend ist unser Freund“,erklärte der VerwaltungsratsdelegierteJörg Wolle gestern Dienstagan der Medienkonferenz inZürich. Einerseits profitiert dasUnternehmen davon, dass Asienim Moment der globale Wachstumsmarktist. Andererseits nütztihm der Trend, dass immer mehrFirmen die Logistik und denVertrieb aus Kostengründen auslagern.HANDELSZEITUNGMay 11, 2005Jede Tätigkeit rund um die zumLogo erhobene Fächerpalmescheint auf fruchtbaren Boden zufallen: DKSH beliefert 300,000Händler mit Konsumgütern,Luxusuhren und Lifestyleprodukten,neuerdings auch mittels eigenerBoutiquen.

41ZÜRICHSEE-ZEITUNGENMay 11, 2005THE PEAKSpring 2005Die Umsatzsteigerung, die aufinternes Wachstum und aufAkquisitionen beruht, ging einhermit einer Erhöhung derBeschäftigtenzahl um 2,000 aufgut 20,000 Personen. DasBetriebsergebnis vor Zinsen undSteuern (EBIT) wuchs mit 20.3%auf 77 Mio. Fr. noch stärker.BUSINESS THAISpring 2005FINANZ & WIRTSCHAFTMay 11, 2005DER BUNDMay 11, 2005Der Zürcher Handelsriese DKSHhat ein erfolgreiches Jahr hintersich: Der Umsatz stieg 2004 um10.3 Prozent auf 5.8 Mrd.Franken.Die DKSH-Gruppe hat ihrenErfolgskurs 2004 fortgesetzt. Dervorwiegend in Asien tätige Vertriebs-und Logistikkonzern steigerteden Umsatz 10.3% auf 4.49Mrd. Fr. Das Betriebsergebnis erreichte77 Mio. Fr. (+20.3%).LE TEMPSMay 11, 2005CORRIERE DEL TICINOMay 11, 2005DKSH ha una forte posizione inAsia, dove è presente da 140 anni.In tale regione dispose di 280succursali e approfitta della crescitagenerale del mercato asiatico.Le groupe de négoce zurichoisDKSH a augmenté son chiffred’affaires et sa rentabilité en 2004,grace à l’Asie.EUROPEAN COATINGSJOURNALDKSH offers nanoscale silverparticles as an ecologically soundbiocide under the name “Sarpu”.

42 D K S H O N S T A G EThe united strength ofDiethelm Consumer GoodsThailandRed and white, the DKSHcolours, mark a unique eventwhich showed clearly:A successful partnership issomething to celebrate.He was the most popularsinger of the night:Consumer Goods Thailandbig boss Somboon sang“My Girlfriend” with his guitar.„The Star“ − Winner of theDiethelm Fantasia Singing Contest.Once a year, Business Units ofDiethelm & Co., Thailand, holdparties to celebrate their performanceand thank staff for their dedicationand hard work.In 2003, our Consumer Goodsdivisions, Consumer Products andFoods/Special Products, merged underthe leadership of SomboonPrasitjutrakul. In 2004, both divisionsmoved into shared offices tobecome a single integrated unit, so itwas logical to celebrate a combinedstaff party.A grand title for an exclusive partyOrganizing a party for 2,500 peopleisn’t easy, considering the programsinvolved, so a committee wasset up to handle the details. After along search for a suitable venue, thecommittee finally chose the BangkokInternational Trade Center. To boostteam spirit and the “one big family”concept, we decided on Red &White, the colors of our corporateidentity, as the theme for the night.In the end, our party was given thegrand title of “CG Red & WhiteHarmony Night”, referring to theintegration of CG.The party was honoured by thepresence of our President WalterBrenneis, Chief Financial OfficerStuart Davy, Vice President HumanResources Thailand George Hanna,and Executive Vice President andHead of Human Resources, AndreasMoelich, who was on a visit toBangkok.Party activities included games,the Diethelm Fantasia singing contest,individual and group red &white costume contests, the presentationof long service awards and retirementcertificates, and magnificentperformances by various staff –among them an amazing percussionsolo by our Logistics Manager,Account Management & BusinessDevelopment Ross Cain, that wentdown a storm.The hidden talents of DKSHmanagersThe highlight was the ManagementShow, starring our ExecutiveVice President Mr. Somboon, sing-ing a classical Thai song “Fan Chan”–“My girlfriend”– and accompanyinghimself on the guitar, backed upby our female management teammiming as his backing singers anddancers in Red & White school uniforms,an unexpected treat which reallycaught the imagination of theguests.The party was a great success: theRed & White of DKSH was everywhereand boundaries between thetwo CG divisions disappeared overnight,showing that the two divisionsare now fully adjusted to one anotherand ready to move forward as oneunit of the DKSH family.As we say in Thailand:“Unity is Strength”Vanida PitaksonggramPersonal Assistantto the Executive VicePresident ConsumerGoodsDiethelm & Co. Ltd.,Thailand

43DKSH becomingNo.1 marketingand logistics providerin VietnamDiethelm Vietnam proves itslong-term commitment inVietnam with an increase ininvestment capital to USD 6.0million in 2004.Diethelm Vietnam Co. Ltd.(DVL), a member of the DKSHGroup, has been licensed as a 100%foreign investment enterprise to operatemarketing and logistics servicesin Vietnam and has begun operationsin a new distribution centeropened on February 28, 2005 in theVietnam Singapore Industrial Parkin Thuan An District, Binh DuongProvince. In 2002, DVL set up Phase1 of its purpose-built facility totaling3,500 pallets for Healthcare andConsumer Goods.As business grew, DVL embarkedon Phase 2, adding 4,500 pallets inJuly 2004. Phase 2 focussed on efficiencyand incorporated many newfeatures: Satellite connectionsto all sites from thecenter, computerizedwarehouse and inventorymanagement, separateunloading and dispatchareas, return and sortinggoods areas, dock levelers,dust-free flooring, shelvingand racking storagesystems and 600 m 2 of copackingspace. We inaugurated Phase2 of the Logistics Center in February2005, ahead of schedule.DVL gained ISO 9001: 2000certifications for quality managementat a ceremony attended byJoerg Wolle, CEO, Gonpo Tsering,representatives from Binh DuongProvince People’s Committee, the“Our majorinvestment inthis world-classfacility will greatlystrengthen ourleading positionin the logisticsindustry inVietnam.”DKSH’s new distribution center in Vietnamunder construction in December 2004 andofficially inaugurated in February 2005.To bring good for tune: Joerg Wolle is dottingthe eye of the lion during the ceremony.Management Board of VSIP, businesspartners and the media.Committed to giving exceptionalvalue to its partners, DVL aims to bethe No. 1 marketing and logisticsprovider in Vietnam. Its service networkhas been extended to 38 provinceswith direct links toover 20,000 retail outlets.In 2004, the DKSHGroup increased DVL investmentcapital fromUSD 4.5 millions to 6millions. This offers a value-addedpackage of logisticsservices in an 8,000pallet complex and a fullrange of facilities fromhigh-quality ambience to temperaturecontrol systems, transportation,deliveries, sorting and re-packaging.“This landmark project showcasesour commitment in Vietnam and facilitatesthe provision of superior logisticsservices to improve the qualityof the products that reach theVietnamese people. Our major investmentin this world-class facilitywill greatly strengthen our leadingposition in the logistics industry inVietnam,” said Joerg Wolle.“This new facility will boost thecoverage and efficiency of DVL servicesin the pharmaceutical and consumergoods industries in Vietnam”,added Victor Hew, DVL GeneralDirector.Joerg Wolle also announced furtherDKSH expansion into a plotadjacent to the current logistics centerwith space for another 16,000pallets, a semi-automated co-packingand labeling line and frozen andchill facilities, to make it one of thebiggest and most sophisticated inVietnam.Victor HewGeneral Directorof Diethelm VietnamCo. Ltd.

44 D K S H O N S T A G EWhat towear?DKSH’s littlestyleguideDave Tan, Emma Shapplin,Enzo Cunico and Kurt Hefti.Queenie See and Olivia Davies.In the last few months,DKSH has had variouslaunches in Hong Kong withnumerous guests. It wouldseem that the expression“dress code” still confusesa lot of people. We‘d liketo offer some words ofexplanation.Carlos Dias, Patrick Tse and Models.There are a few phrases commonlyused to indicate the formality, or informality,of dress.Casual attireAlthough it would be rare to seethis on an invitation, it is sometimesused when the hosts wish to let youknow that the circumstances of theparty are such that you reallyshouldn’t get too dressed up. Leavethe high heels or double-breastedsuit at home. This might be requestedif a party is being held outdoors,at the beach, in a park etc... . Anotherway of expressing this kind of dressrequirement might be Garden PartyAttire, for instance.Don’t, however, take “casual” tothe extreme. Women should still optfor a dress or skirt, although a morecasual one, or a suit with flat shoes.Men could wear nice slacks and ashirt with or without a tie. Casual attiredoes not mean jeans and trainers.Cocktail attireDress as you would for a fancydinner out on the town. Womenshould strive for elegance and chic,rather than sweet or pretty dresses.Men should look their most dashing,although tuxedos are not appropriate.Black tie optionalThis dress allows those who wishto go all out to do so, but providesleeway for those who wish to dress alittle less formally. This option isgenerally popular because men whodon’t own or want to rent a tuxedodon’t feel compelled to do so. Theycan opt for a dark suit instead of atuxedo, with black, navy or dark greybeing the best choice. Men shoulddress as formally as possible, short ofactually wearing a tuxedo. Womencan dress as formally as black tie, butcan also get away with a shorter,cocktail-style dress.Black tieThis is the most formal attire.Men should wear tuxedos and womenformal dresses, usually of floorlength.Denise LoGeneral ManagerRoger DubuisBoutique Hong KongYvette Yuen with Andrew Yuen.Jackie Chan, Pauline Wong, Charles Yangand Albert Wong.Maria Chen and Kevin Hon.

45PowerfulInsightsfromGolfNihonSiberHegnerGrand Prix2004Yutaka Kagaya, AjinomotoPhilippines’ new president,says the game of golf buildscharacter by teaching humility:“In golf, you can’t win allthe time; you learn to acceptdefeat. It makes you see yourown weakness.”Edward Keller Philippines Inc.(EKPI) and Ajinomoto PhilippinesInc. (API) held their first FriendshipGolf Tournament on November 20,2004 at the Canlubang Golf andCountry Club in Laguna, Philippines.With top golfers from bothcompanies, the EKPI team was headedby its president WolfgangSchanzenbach and supported by themen from BU Technology, LeodieLimcangco, Reggie Gadayan, JunMatriano, Alexis Ramos, and thelone female player, Chichi Carpio,representing Business Unit F&I.The API team was led by YutakaKagaya, with Marketing DirectorSunichi Komatsu, Technical DirectorFumio Tamura, Finance ControllerYoichi Hidaka, R&D ManagerYasuhisa Okuda and PurchasingManager Ric Nicolas, the onlyFilipino player on the Ajinomototeam.The games finished at twelve thirtyand were crowned by an awardsceremony. Pat Cortez, MauriceHanrahan, and Ralf Saenger providedmoral support and promised toparticipate actively in the next tournament.The Ajinomoto-DKSHFriendship Golf Tournament embodiesthe essence of this genuinepartnership.Group picture of DKSH and AjinomotoPhil. participants, from left to right:Wolfgang Schanzenbach, SunichiKomatsu, Maryanne “Chichi” Carpio, RicNicolas, Leoduardo “Leodie” Limcangco,Yoichi Hidaka, Yutaka Kagaya, FumioTamura, Yasuhisa Okuda, Alexis Ramos,Teodoro “Jun” Matriano, Reggie Gadayan(seated).Class AChampionWolfgangSchanzenbachreigns! Below,receiving thetrophy fromKagaya san.Results ofDKSH-AJINOMOTO FRIENDSHIP tournamentNovember 20, 2004Class AChampion Wolfgang Schanzenbach DKSHRunner-Up Shunichi KomatsuClass BChampion Yasuhisa OkudaRunner-Up Yutaka KagayaClass CChampion Leodie LimcangcoRunner-Up Yoishi HidakaAwardsLongest Drive Shunichi KomatsuNearest to the Pin Yasuhisa OkudaAccurate Drive Leodie LimcangcoPatrocinia CortezVice PresidentBusiness Unit Food& Ingredients,Edward Keller(Philippines), Inc.AjinomotoDKSHAjinomotoDKSHAjinomotoAjinomotoDKSHDKSHThere’s a Nihon SiberHegner (NSH)maxim that says: “We operate a leanorganization where team spirit prevailsand efforts are recognized; wetreat our staff as our most valuableasset.”With this in mind, we decided tointroduce the NSH Grand Prix, anannual award for employees whohave performed outstandingly duringthe year.Our Business Unit Managersnominated their respective teams for2004 early this year. The three finalistsmade short presentations of theirunique accomplishments to thecountry management team whichthen determined the winners andrunners-up in a secret vote. The racewas so close that three ballots wereneeded before the outcome wasclear:Grand Prix 2004Runners-up (equal)Tetsuo Terada and Yohsuke Hirai,TEC (gold medal)Yoshiyuki Shirakawa andMasakazu Mizuta, SLC(silver medal)Kiyoshi Segawa and MasayukiNoha, F&I (silver medal)The Grand Prix consists of an engravedtrophy and a round-the-worldticket for two plus ten days’ holiday.The 1st and 2nd runners-up tookhome cash prizes.Our CEO, Dr. J. Wolle, congratulatedeach winner personally infront of applauding NSH executiveswho had gathered for our annual “AllNSH Managers Meeting” on March15, 2005.Alfred BanzHead of Country Management TeamNihon SiberHegner K.K., Japan

46 D K S H O N S T A G EDKSHHong KongAnnual Dinner2005The Toast.The Fan TreeCompanyThe annual dinner of DKSH HongKong was held on January 29, 2005with around 720 guests. It is thefirst company-wide event since themerger of Edward Keller Ltd. andSiberHegner Ltd. in 2002. A goldenopportunity to develop sense of togetherness.To make the event memorable,every member of staff was given asmall token on their arrival – a sparklingheart-shaped welcome pin withthe Fantree logo. After a speech byEnzo Cuncio, our ManagingDirector, followed a grand openingceremony and the presentation ofawards for 10, 20 and 30 years’ service.The decade award was given to109 staff, the largest number we haveever had. A gold coin bearing theFantree logo was presented to allwinners in recognition of their longand distinguished service.The evening continued withgames, lucky draws and a staff talentshow. Five teams from different businessdivisions participated in theperformance competition. They hadto perform a “gu zheng”, or magicshow, Chinese opera, and sing anddance. All the performers showed excellentteam spirit.We were also honored to have 90business partners to sponsor thisevent, including diverse principals,contractors and suppliers. Last butnot least, we appreciate the enormouseffort on the part of the organizingcommittee. This successfulevent will be another milestone tomark the continuous growth ofDKSH Hong Kong.HR Department,DKSH Hong Kong Ltd.Staff performing.The magic of Enzo Cunico.The Healthcare department.Charming DKSH ladies greeted the guests.Staff participation!Three Swiss Merchantsin Asia.The beginning of 2005 saw the publicationof “The Fan Tree Company”,a beautifully produced history of theDKSH Group. This volume chroniclesthe story of DKSH from its verybeginnings in the middle of the 19thcentury, right up to the merger ofDiethelm Keller Services Asia andSiberHegner in mid-2002. It is alively account of our business history,deeply embedded in the past 150years of development in Asia.The publication is a project ofDiethelm Keller Holding Ltd.(DKH) in Zurich, the principalowner of DKSH, and was stronglysupported by Dr. Jean-PierreBlancpain, Vice Chairman of DKHand Member of the Board ofDirectors of DKSH Group.Martina Ludescher,DKSH Management Ltd.

47100 treesfor 100 yearsIt was a dignified ceremony,full of symbolism, thatmarked the beginning ofDKSH’s celebrations of acentury of continuousoperations in Thailand.Planting the first tree: WalterBrenneis, Joerg Wolle withdaughter Victoria and wifeRamona.The tree is planted!On February 16, 2005 Joerg Wolle,President & CEO of DKSH, andThailand executive team memberscame together at the SirindhornInternational Environmental Park inthe province of Petchburi to plant100 trees, one for each year ofDKSH’s existence in the country.This was a fitting curtain-raiser for aseries of events and activities withwhich Diethelm & Co. is planningto mark its centenary in Thailand inJanuary 2006. The hundred yangnatrees – dipterocarpus alatus – madefor an auspicious beginning, withJoerg Wolle and Walter Brenneis,President Diethelm & Co. Ltd.,Thailand, and ten other DKSHThailand executives planting the firsttwelve. This significant act was a furtherdemonstration of the company’sstrong commitment to the good ofthe country, and, on this occasion inparticular, conservation, reforestationand the environment. Diethelmalso donated THB 1 million to theSirindhorn National EnvironmentalPark project.Ever since opening their first officein Thailand ninety-nine yearsago, Diethelm and DKSH haveplayed an important role in the localeconomy, culture and daily life, andwill continue to do so in the future.“We are deeply honored to be startingour Thai centenary celebrationsby helping this project and supportingthe wonderful work of HRHPrincess Maha Chakri Sirindhorn inconserving the environment andThai natural history and culture”,noted Joerg Wolle. “At DKSH, wereally feel we are a part of the Thaicommunity, and thus we see it as ourrole to give something back to thesociety that has been so importantand good to us.”Walter BrenneisPresidentDiethelm & Co. Ltd.,ThailandDr. Joerg Wolle, President & CEO of DKSHGroup, presenting the cheque for THB 1 millionto Thanpuying Putrie Viravaidya, DeputyPrincipal Private Secretary to His Majesty theKing, accompanied by senior executives ofDiethelm & Co. Ltd., Thailand.DKSH Thailand on stage!

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