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 A N U A R Y 2 0 0 5DKSH launches Corporate SharedServices Center in Kuala LumpurDKSH’s new Website goes liveKnowledge Partners – the on-goinglearning alliance between DKSH andINSEADPartnership with Horphag Research –just one example of our continuousgrowth in the Japanese health industrywww.dksh.comCummins and Komori – success storiesof the Business Unit Technology inThailand

2 CONTENTSWELCOME3ContentsDear Colleagues andFriends of DKSH8DKSH – seen from a different angleA professional photographer was sent on a tripthrough our operations and returned with acollection of 3,000 unique pictures.Dr. Joerg W. WollePresident & CEODKSH Holding Ltd.WELCOMELetter from the CEO 3GROUP NEWSThe new DKSH Website 4Introducing the DKSH Corporate SharedServices Center (CSSC) 6DKSH Photo reportage 8SAP and DKSH 10CSSC Infrastructure 11Global implementation of Lotus Notes 12Internal Audit 14DKSH Great Britain Ltd. 15Learning alliance between DKSH andINSEAD 16BUSINESS UNITSConsumer Goods 18Healthcare 24Specialty & Life Science Chemicals 27Food & Ingredients 28Technology 34PRESS REVIEW 38DKSH ON STAGE 42DKSH Fantree NewsChief Editor:Martina LudescherContact:DKSH Fantree NewsP.O. Box 888Wiesenstrasse 8CH-8034 Zurich/SwitzerlandEmail: martina.ludescher@dksh.comLayout:Wetter & Erdmann, ZurichPrint:Sota AG, Zürich1244DKSH goes with Lotus Notes for global implementationLotus Notes is rolled out to the whole Group as an importantenabler for communications and knowledge management.32Worldwide agreement with HayashibaraDKSH provides the leading companies in thecosmetic industry with Hayashibara’s uniqueingredient AA2G.Consumer Goods’ strategic move forward into specialty retailDKSH is the unchallenged No. 1 Consumer Goods distri butorand supplier in Asia and is now entering into a strategicextension of its business into specialty luxury retailing.Many times you will have heard mestate: “Perception is reality”. In communication,this means that notonly what you say but how you sayit matters, but more importantly,how your partner understands themessage. Communicating successfullyis a difficult enough propositionfor a company owning productsand brands, but it is an even greaterchallenge for a knowledge basedcompany like ours, with few tangibleassets. Bearing all this in mind,we undertook in 2004, to totally redesignthe DKSH Website, whichwill be ready to go live at the endof January. This issue of “FantreeNews” provides you with a glimpseinto the structure and design of ournew “Internet face”.As the saying goes, “A picture tellsmore than a 1,000 words” and to infuseour corporate image with reallife, we sent a professional photographeron an extended trip throughour operations. The harvest of thatjourney is a multifaceted documentationof over 3,000 photographsdepicting our many services, people,local business activities and officesand, last but not least, the fascinatingplaces we are operating in. Theresultant “picturepark” will be animportant tool in bringing theFantree Company closer togetherand in creating more tangible accessfor our business partners.In the presence of Malaysia’sMinister of Science, Technology andInnovation, YB Dato’ Sri Dr.Jamaluddin Jarjis and the entireBoard of Directors of the DKSHGroup, we officially launched theDKSH Corporate Shared ServicesCenter (CSSC) at the end ofNo vember in Kuala Lumpur. TheCSSC was formed to optimizebusiness processes across the Groupas well as to standardize and centralizeDKSH’s IT platform andthereby serve our company worldwideas a global hub for IT services.This investment is critical to thefuture growth of DKSH. The newIT standards increase cost efficiencyand the quality of our services.In the context of this trip, the Boardof Directors of DKSH Holdingvisited, besides Ma la y sia, some ofour major operations in order togain hands-on expe r ience with ourday-to-day business.Another highlight in new businessdevelopment was ConsumerGoods’ strategic entry into specialtyluxury retail. In the course of thisforward integration, DKSH hasopened Roger Dubuis Boutiquesin Jakarta, Singapore, Hong Kongand Bangkok. Further steps tostrengthen our engagement in thelucrative Luxury Goods sector arescheduled in 2005.As a new feature of our magazine,we have asked some of our businesspartners to contribute to this issue.Various articles are proof of succ -essful – and often long-term – partnershipswith our principals andpartners. This initiative was so successfulthat we will continue it infuture issues.Looking back over the past 12months and reflecting on what weachieved in that time, we can proudlysay: this will be a year to remember!We were able to exceed ourambitious goals, both with regard togrowth and profitability. However:we should never take anything forgranted! On a global scale, no onewill be able to look back at 2004without being overwhelmed by thetragedy of the December 26 seaquakeand the resulting tsunami.The devastation and harm done toinnumerable people defies description.My heart goes out to all thevictims and I encourage everyone todo whatever is within their means tohelp alleviate at least the economicdisaster facing the survivors. Howwe have spearheaded supportive effortsin the areas where we are active,and will continue to help, both asindividuals and as a company, hasalready been communicated to youseparately. We will continue to assiston an ongoing basis. We are extremelygrateful that none of ourstaff was among the victims and weextend our deepest sympathy tothose who have lost a family memberor relatives.In closing, I would like to thankall of you very much for your outstandingcontribution in buildingthe continuing success story of“DKSH – the Fantree Company”and wish you and your families ahappy and prosperous 2005.

4 G R O U P N E W S5DKSH has a new, unified face –the new Website is going live atthe end of January !The Global BusinessUnit TechnologyHomepage, a contentpage (right below)and the interfacescreen for contenteditors (left below).The DKSHGroupHomepage.When Diethelm KellerServi ces Asia and SiberHegnermerged to create DKSH,around 70 local Websiteswere online – every site wasreinventing the wheel, usingdifferent IT platforms, brands,designs and structures.A single platform fordifferent needsIn order to clean up our onlinepresence and to appear in public asone company, DKSH’s ExecutiveManagement decided to integratethe different Websites into the newCorporate DKSH Web-Portal. Thekey challenge of this project was tostandardize our external communicationand web appearance to helpbuild a strong Fantree Brand. Withthe new Website, we have created asingle entry point for our principals,customers and other target audiencesto lead them as directly as possible totheir requested information or to specialistcontacts. “One stop shopping”for our principals and customers.With this in mind, we created theconcept, structure and design of thenew Website – not an easy task, consideringthat the structure of thatWebsite has to be flexible enough toaccommodate the different needs ofour 5 different Business Units with18,500 employees in 35 countries.Technology makes it livelyThis strategic decision meshedperfectly with the overall DKSH ITstrategy to standardize our IT landscape.At the end of 2003, LotusNotes was chosen as our new groupwidestandard for Websites meaningthat we had to switch with ourGlobal Website to the Lotus NotesDomino based system. Togetherwith our in-house Lotus Notes specialistsin the Corporate SharedServices Center (CSSC) in Malaysia,we put in a lot of effort to set upan optimal technical infrastructure.This allows users without technicaland design experience to build aWebsite locally (Business Unit,country, local Business Units) that isin line with the Corporate Designguidelines.With regard to regional orientation,our Business Unit strategy isimplemented by the country organizations.All countries and BusinessUnits form a matrix instead of a classichierarchy. This organizationalstructure is represented in the structureof the new Website, meaningthat Business Units, countries andlocal Business Units can now createtheir own Websites. This approachrequires the definition of clear guidelinesand, at the same time, hasto offer the necessary flexibility toaccommodate different needs andinterests.Our concept and design have beendefined to build a Website that isrelevant to the needs of the differentaudiences we serve.The Website’s motto:Thinking globally. Acting regionally.Selling personally.Thinking globallyWe publish global informationand offer site and business servicesfrom the DKSH Group and all globalBusiness Units.• ABOUT DKSH publishes corporateinformation on DKSH as aGroup: Profile, Facts & Figures,His tory, our OrganizationalStructure and DKSH’s Management.• The five Global Business UnitWebsites provide an overview onthe single Business Units e.g. theGlobal Business Unit Specialty &Life Science Chemicals with itsrespective business portfolio andservices.Acting regionallyWe provide local content fromcountries and local Business Units.• The country Websites show“What DKSH is in e.g. Thailandor Malaysia”: basic informationsuch as Facts & Figures, locations,local contacts, etc. Additionally,the country Website contains information on all Business Unitsthat are present in this country.• The local Business Unit Websitese.g. “Specialty & Life ScienceChemicals in Japan” concretizethe local activities of the BusinessUnits in the respective country.Selling personallyWe offer a DKSH contact in yourcountry and Business Unit.DKSH speaks one language inmany variationsThe global sites – Group and globalBusiness Units – are, as is thecurrent Website, published in English,Thai, Japanese, Chinese andBahasa Malaysia. The local sitessuch as coun try or local BusinessUnit Web sites are always constructedin Eng lish and optionally in alocal language.Content is KingThe process of content creationand input is different from the currentone: it is no longer centralizedat the Corporate Center, but rather,decentralized in the Business Unitsand countries. This means that ourBusiness Units and countries cancreate their own part of the Website.Business Units, countries and localBusiness Units are now responsiblefor their own content creation andintegration.The decentralized concept andupdate of the Websites has the followingadvantages:• We are closer to our principals,suppliers and customers• We have available the latest informationon trends and activities inthe Business Units and countries• Local aspects and market needscan be better taken into account• Only with a decentralized creationand update of the Websites, canwe follow our premise of maintaininglean headquarters. Other -wise, Corporate Center wouldhave to hire a dozen people just tomaintain the Website.The rollout of the new Website is atwo-step-procedure: in a first step,we go live with the Group and theglobal Business Units. Later, thecountry and local Business UnitWebsites step-by-step will come onstream.The new Website serves as a strategiccommunication tool that isstrongly supported by the ExecutiveBoard as well as the Board ofDirectors. It puts a stop to uncontrolledgrowth of local websites,strengthens the “one firm approach”and, at the same time, leaves roomfor localization. It can be likened to“living in the same house under onecommon roof, but in differentrooms”.Let’s put our hearts and mindsinto making this new Website a success!www.dksh.comMartina LudescherAssistant to CEODKSH Management Ltd.,Switzerland

6 G R O U P N E W S 7Introducing the DKSH CorporateShared Services CenterOrganizational structure of theCorporate Shared Services CenterGonpo TseringSenior Executive VPSteering CommitteeCSSC’s MissionTo excel at enabling and supporting DKSHoperations and their business partners bydelivering optimal IT and business solutions.Donabet DonikianGlobal SAP ProjectManagerBusinessApplicationsTony WooHead Global DataCenterInfrastructure,Groupware andSupport ServicesMathias GregerBPR ProjectManagerBusiness ProcessRe-engineeringThe Corporate SharedSer vices Center (CSSC) openedits doors in March 2004to serve the DKSH Groupworldwide. Senior ExecutiveVice President Operations &Business Support of DKSH,Gonpo Tsering, writes onthe reasons for setting upthe CSSC.The idea of a shared services centerfor the Group was conceived slightlymore than a year ago, upon the completionof the Post-Merger Inte grationexercise of Diethelm Keller andSiberHegner in 2002. We took an inventoryof all our hardware and softwaredeployed in the newly crea tedDKSH and found two key issues.Firstly, we had a heterogeneous ITlandscape. There were various serverplatforms, no standardized LAN andWAN and ten different databasesused across the Group. There werealso 17 different ERP implementationsand 20 different email systemsin use!Given the high rate of growththat we are currently enjoying, tocarry on with a heterogeneous ITlandscape could limit our success inoperating and competing on a globalscale.Secondly, there was insufficientintegration. With such a disparateIT environment, it was challengingto integrate all the countries’ IT systems.This meant that the varioussystems in place could not communicatedirectly with one another andconsolidation of information couldnot be automated, making it a challengeto conduct in-depth analysis ofBusiness Lines, which are spreadacross different countries.These factors sent our IT capitalexpenditures soaring. Moreover, wefound it frustrating that there wereno adequate mechanisms in place tocoordinate all these IT efforts and toensure that expertise and know ledgewere retained and shared within theGroup.Top management examined thismatter in greater depth and decidedthat a shared services center, dedicatedto supporting DKSH operationsglobally through the delivery ofoptimal IT and business solutions,was needed.The center is to focus on standardizingand consolidating the ITlandscape for the Group – SAP hadbeen chosen as the ERP system, withLotus Notes as our collaboration andmessaging tool. But those are onlythe tools – our objective is to optimizeour business processes acrossthe entire Group based on SAP andour best practices. I believe that suchstandardized and robust processeswill form a powerful springboard tosupport DKSH into its next phase ofgrowth.The four immediate key valuepropositions arising from the useof the CSSC are cost effectiveness,rapid rollout of solutions, standardizedprocesses and quality services.Let me elaborate on each point.Cost effectivenessCSSC will source and acquire ITsolutions and licenses for the Group.With offers of global contracts inhand, CSSC will have more negotiationpower and obtain better dealsfor the Group. In addition, the costof maintenance and support will bereduced through the pooling andsharing of resources.Rapid rollout of solutionsCSSC will be developing a GlobalTemplate for business solutions. ThisGlobal Template defines to a greatdegree, the needs of the Group andthus, faster rollout of business solutionsto the local offices. All this ispossible for DKSH as the processesacross the countries are common inmany areas. Of course, there will besome local peculiarities requiringadjustments, but this is still a betteroption than creating something fromscratch.Standardized processesWith standardized processes, itwill be easier for us to improve ourprocesses in the future without majortechnical constraints. In addition,we can develop Corporate andBusiness Unit-wide KPIs – this istremendously useful to the Group asinternal and external benchmarkingcan then be conducted.Quality servicesA group-wide IT standard will beset at agreed levels, thereby ensuringconsistent and optimal IT servicelevels across the Group. Moreover,CSSC will minimize and managerisk inherent in the area of processesand total IT infrastructure.In the longer term, CSSC will enablethe Group to enhance its knowledgemanagement. Having res -ources pooled at one location en -ables better sharing of knowledgeand lessons learned across theGroup. This will also give us a properplatform for sharing IT knowledge;we do believe that there is muchpotential learning within the Group.We selected Technology ParkMalaysia (TPM) in Kuala Lumpur,Malaysia for the location of the CSSCas it is located in the MultimediaSuper Corridor (MSC), which isMalaysia’s thriving IT hub.CSSC has also been set up as aseparate legal entity and obtainedCSSC Facts & Figures· SAP Applications· Business Solutions· Development andRollout ProjectsMSC status. With this status, we enjoya set of incentives and benefitsfrom the Malaysian Government,including tax exemptions for at least5 years, employment of foreign knowledgeworkers, as well as world classphysical and information infrastructures.As for the actual make-up ofCSSC, we have 3 teams: i) BusinessApplications, ii) Infrastructure,Groupware & Support Services andiii) Business Process Re-engineering.Each team within CSSC plays acrucial role in preparing DKSH forthe future. At CSSC, the teams worktogether, taking the bigger pictureinto account to achieve the globalobjectives of DKSH. Our objectivesare not merely to improve and stan-Company Name: DKSH Corporate Shared Services CenterSdn Bhd, MalaysiaAddress: Lot L4-E-3A, Enterprise 4,Technology Park Malaysia,57000 Bukit Jalil, Kuala Lumpur, MalaysiaShareholders:Services Provided:No. of staff:DKSH Holding Ltd., SwitzerlandApplications Consulting,Applications Hosting, Business Consulting,Global IT Contract Management53 (incl. staff transferred from DiethelmMalaysia, as at November 1, 2004)Our preferred partners: Unix Servers – IBM, ERP – SAP,Wide Area Network – Infonet,Physical Security – Control Risks Group,Office Furniture – Diethelm Furniture· Lotus Notes· Technical Systemsand Operations· Basis Support· Network· Service ManagementCSSC Milestones· Process Analysisand Design· Project Management· Quality Management· Change Management· Benefits Casedardize business practices – ultimately,we want to extend our processesto include our principals and customersso that we can be their bestpartner in creating effective marketaccess solutions.• July 1, 2003First employee recruited• September 9, 2003CSSC incorporated• September 26, 2003Multimedia Super Corridor(MSC) status approved• March 15, 2004Moved into TPM,CSSC facility• March 28 - 31, 2004BPR workshop, resulting ingroup-wide BPR framework• April 30, 2004Exclusive agreement for UNIXservers signed with IBM• June 30, 2004Global agreement signedwith SAP• November 22, 2004Official openingGonpo TseringSenior Executive VPOperations & BusinessSupportDKSH Holding Ltd.,Switzerland

8 G R O U P N E W S 9DKSH – seen from a different angleIn the time since the merger,the perception of ourcorporate image has takenon a different shape: wedeveloped from being perceived“a mysterious tradingcompany” into a transparent,highly specialized ServicesGroup focusing on sourcing,marketing, sales, distribu -tion and logistics.One consequence of this imagetransition is that media attentiontowards DKSH has heightened significantly.Communicating effectivelyhas become increasingly moreimportant.Quite apart from our annual pressconference in Zurich, Joerg Wolleheld various local media briefingsin Singapore, Taiwan, Philippines,Thailand, Germany, Hong Kongand Malaysia. He has also given dozensof interviews to newspapers andmagazines around the world to promoteDKSH as the leading marketingand distribution company in andfor Asia. Hand in hand with theseintensified communication activitiescomes a growing demand for information,pictures and images illustratingDKSH’s business activities.Communications and marketingare already a tough proposition for acompany possessing its own tangibleproducts and one or more strongbrands. You can well imagine thatthis challenge is even more difficultfor a group like ours, that owns neitherproducts nor brands, but is focusedpurely on services.In the course of the past 2½ yearsfollowing the merger, we have alsointensified our internal communications:for internal corporate publicationssuch as the Annual Review,Fantree News, Business Unit Brochures,Company Presentations,Web site etc. we depend heavily onprofessional pictures showing “whatDKSH is all about”. In the past, itwas sometimes very difficult to gethold of suitable pictures of sufficientquality. Frequently, we were obligedto switch to photo stock pictures,which are quite expensive and notauthentic.The time was ripe to hire a professionalphotographer and send himon a trip through our operations, toexplore the DKSH world. We foundthe ideal person for this job – Karl-Heinz Hug. The mission for theDKSH Photo reportage was clear:feature the wide variety of our localBusiness Unit activities, services,people, office buildings etc. andmake our service offerings tangible.At the beginning of December,Karl-Heinz Hug returned to Switzerlandfrom his journey – whichtook him to Japan, Korea, HongKong, Taiwan, Philippines, Thailand,Malaysia, Cambodia, Myanmar,Vietnam and India – with around3,000 unique pictures in the bag.We are delighted with the outcomeand would like to provide you withan insight into the fascinating worldof DKSH, through a small selectionof photos. DKSH owns the copyrighton all of the pictures. You canview and download these pictures onwww.picturepark.ch/dksh.Martina LudescherDKSH Management Ltd., Switzerland

10 G R O U P N E W S11SAP and DKSH –gearing up forthe futureThe nuts and bolts behind CSSCCSSC provides theDKSH Group with abroad range of SAPrelated services.DKSH Global WideArea Network (WAN)and the Server andStorage Area Networks(SAN).DKSH Global Wide Area Network (WAN) – DR OperationDKSHKoreaDKSHTaiwanDKSHChinaDKSHPhilippinesISDN Dial BackupLease LineGlobal SAP Project ManagerDonabet Donikian givessome insight into his origins,shares his role at DKSHand provides a glimpse intowhat the SAP Team will beoffering the Group.I am a German national, born inStuttgart of Armenian and Germanparentage, and joined DKSH CorporateShared Services Center inAugust 2003 as one of the threeHeads of the new CSSC. My responsibilityis to manage our global businessapplications, which compriseSAP as the backbone Enterprise ResourcePlanning (ERP) system andother complementary business solutions.As the Global SAP Project Manager,I am entrusted with the missionof developing the right set of businesssolutions to enable and spur onDKSH’s engine of growth.Why SAP?In DKSH offices worldwide, thereare 17 different ERP systems in use.Among them are many SAP installations.After an extensive evaluationof the different ERP systems, SAPwas found to best suit our businessneeds. It combines complete andscalable software for ERP with a flexibleand open technology platform,which can integrate SAP and non-SAP systems. In addition, it is enhancedby industry-specific featuresand best practices, which DKSHcan tap into, in order to further improveits processes.Also, SAP is a world market leaderin ERP solutions with the broadestfunctionality footprint among allERP vendors.The SAP Team at the CSSC providesthe Group with a broad rangeof SAP related services – rangingfrom analysis, planning, design andimplementation to operation and systemsoptimization.The Team is made up of internationallyexperienced functional andtechnical specialists with a profoundknowledge of SAP solutions, componentsand modules. They are alsofamiliar with SAP’s standard solutionand implementation methodology,approach and tools.DKSH has just embarked on itsjourney towards developing theDKSH SAP Global Template. TheGlobal Template is essentially oneSAP model, built to best fit the needsof the majority. The challenge willbe to find this biggest common denominatorwithin the DKSH Group.And, local legal and mission criticalneeds will be catered for during therollout of the template in the differentcountries.The Team will be focusing on thisproject for the coming year and, indeveloping it, the project team needsinputs from the major countries andBusiness Units to make the templatecomplete. The template will then beput through rigorous testing to ensurethat the final product is a robustand good one.At a glance…CSSC offers the following SAPexpertise• Design, development, rolloutand maintenance of the DKSHSAP Global Template• Support in design and implementationof local SAP softwaresolutions• Application migration, upgrades,business process monitoringand system administration• Authorization and security management• Archiving• Enhancement and development(reports, interfaces, screens,workflow, etc.)• Application training for keyusers• Second level application supportDonabet DonikianGlobal SAP ProjectManagerDKSH CSSC Sdn Bhd,MalaysiaDKSH has launched theCorporate Shared ServicesCenter (CSSC) in theTech nology Park Malaysia(TPM), Kuala Lumpur, tocentralize IT services acrossits group of companiesand offices worldwide.Critical to the success of the CSSC isthe technology infrastructure inplace. The CSSC infrastructure comprisesa Data Center, servers andstorage subsystems, network facilitiesand the technical managementto ensure reliability, availability,scalability and security.Our aim in the implementationof this new state-of-the-art infrastructureis for better managementof risks, consistent service levels andeconomies of scale. Hence, asidefrom partnering with establishedtechnology partners, such as IBMand Infonet, we have engaged dedicatedprofessionals with a vast rangeof expertise to manage and operatethis infrastructure.The Data Center is at the heart ofthe infrastructure, thus, security is ofparamount importance. A multi-facetedsecurity system has been developedin cooperation with our keyvendors.DKSHIndonesiaDKSHThailandDKSHSwitzerland/EuropeDKSHNetherlandsJakartaZürichDKSHSingaporeBangkokAmsterdamConnections will be commissioned according to the DKSH Global SAP Rollout PlanServer and SAN InfrastructureProduction ServersSeoulWe understand the applicationshosted by CSSC as being missioncritical to supporting the day-to-dayoperations of the business. Necessaryprecautions have been taken intoconsideration and the general designphilosophy is to eliminate any singlepoint-of-failureand strengthen securityand controls.TaipeiDKSHGlobal WANSingaporeDKSHDR SiteShanghaiManilaKuala LumpurTokyoSydneyHong KongDKSHVietnamDKSH CSSCTechnology Park, MalaysiaDevelopment ServerSAN SwitchesDevelopment Storage Production Storage LTO Tape LibraryDKSHJapanSystem Management andMonitoring ServersDKSHMalaysiaThe best practice standards inplace include built-in redundancy inserver and storage subsystems, singleand multi-tiered firewalls and, uninterruptiblepower supply and backupISDN lines for optimum servicelevels and connectivity.Physical security measures – biometricand card access systems – areDKSHAustraliaDKSHHong Kong

12 G R O U P N E W S13DKSH implements Lotus NotesgloballyThe inbox screen.The Leave Application Mana gementSystem shows numberof days taken, outstanding andstatus of leave application foreach employee.The CSSC Helpdesk Systemwhich shows at a glancethe IT requests submittedsorted by countries and date,and what is the status ofthe problem.also installed to ensure that only authorizedaccess to the Data Center ispossible.To top all this, the CSSC is alsofinalizing the design and technicaldetails for a Disaster Recovery Center(DRC). This hot-site, as the DRCis called, enables us to provide continuityof critical IT services in theevent of prolonged outages at theCSSC primary site. The DRC willbe at Cyberjaya, which is on a differentelectrical grid and located some30 km distant from our primarysite.The objective of such measures isto provide the capability of switchingto the DRC within a few hoursand for businesses to continue operationswith minimal data loss. Thus,in the highly unlikely event of a disaster,users will experience only limitedinterruption in their work whilethe “hot” standby systems are beingactivated.Tony WooHead of Global DataCenterDKSH CSSC Sdn Bhd,MalaysiaFor an organization that isglo bal in nature, DKSH hasto take a pragmatic approachto communication and knowledgemanagement. Choosingthe right application or solutionto drive these two importantaspects of businessrequires careful analysis andunderstanding of existingand future needs.Why Lotus NotesAfter the Diethelm Keller andSiberHegner merger 2½ years ago,we discovered that 20 different emailsystems were in place with as manyas 50 different email address typesglobally. This resulted in incompatibilityissues and different servicelevels.Each company or country officewas reinventing the wheel in the processof dealing with the same issues,such as viruses, spam and serverdowntimes, apart from internal andexternal security issues. This forcedus to think about an enterprise classmessaging system like Lotus Notesand led us to conclude that it wouldmake a lot of sense to roll it out tothe whole DKSH Group.Aside of messaging, Lotus Noteswas also chosen because it has extensiveapplications development functionality.Its capability ranges fromsimple threaded discussion databasesfor employees to the abilityto integrate with SAP to run corepeople driven business applicationssuch as Customer RelationshipManage ment or Supply Chain Management.Furthermore, the Lotus Notesroute is the ideal choice given thecurrent IT environment. Lotus Notesis not reliant on a single IT platform,unlike Microsoft Exchange, whichdemands complete standardizationof all our local area networks and canonly work on Microsoft servers andnetwork infrastructure.A project with these deliverables isnot feasible at the moment given theexisting heterogeneous IT environment.However, having said that,there are long-term plans to standardizethe network infrastructureand PC client applications globally;but a pragmatic approach is needed.A big bang approach is too expensiveand too risky. It will be more feasibleand cost effective to make progressstep-by-step.Lotus Notes @ CSSCLotus Notes will be administeredout of the recently-launched DKSHCorporate Shared Services Center(CSSC) in Kuala Lumpur. CSSCwill be responsible for Lotus Notesadministration and developmentprojects across the whole Group.The CSSC commitment toDKSH companies and offices worldwidecomes in the form of experiencedand certified Lotus Notes Applicationdevelopers, common developmenttools and methodologies,dedicated development environment,plus the ability to leverage onexisting databases across the Group.The manpower resources at CSSCto manage the Lotus Notes implementationhave also been adequatelycovered, with two separate groups ofspecialists – the AdministrationTeam and the Developer Team.The Lotus Notes AdministrationTeam ensures that the overall LotusNotes/Domino infrastructure isworking smoothly. They will provi-Administration –Service Offerings• Second and third levelLotus Notes support forDKSH Group• Monitoring and support ofLotus Notes infrastructure(every Lotus Notes/DominoServer)• Active support of rollouts• Custody of the DKSH LotusNotes Global Template• Global policies and guidelinesrelated to Lotus Notes/Domino• Local administrator training• Software license managementDevelopment –Service Offerings• Requirements gathering• Analysis and design• Prototyping (if applicable)• Development• Testing• Training and Supportde second to third level support tothe local administrators. Apart frommonitoring and supporting theglobal Lotus Notes infrastructure,they actively support the ongoingrollouts to the different countries.The Lotus Notes Developer Teamfocuses on applications develop -ment on the Lotus Notes platform.Applications can be developed anddeployed, depending on the complexity,within two to four weeks.These applications can be accessedover the Internet or the Lotus Notesclient. Most of the applications developedwill be used internally firstand input will naturally be soughtfrom the various Business Units andcountries in order to understand thereal business needs.CSSC is already working on a fewnew application development projects.These include DKSH GlobalAddress Book, DKSH Website,CSSC Helpdesk and Change Requestsystems, risk management andtime sheet application.Sven W. MaushakeDeputy Head ofGlobal Data CenterDKSH CSSC Sdn Bhd,Malaysia

14 G R O U P N E W S 15Internal Audit –A Value Added Service to the GroupSiber Hegner UK Ltd.changes name to DKSHGreat Britain Ltd.The DKSH Internal Audit Teamon a recent assignment.100 years of historyand the story is justbeginning!The DKSH GreatBritain team.Internal Audit has establisheditself as a partner tomana gement throughoutDKSH.In some companies, the word auditengenders apprehension. WithinDKSH, however, Internal Audit hasestablished itself as a future orientedpartner to management. In its independentrole, Internal Audit providesoperations with assessmentsand guidance on internal controls,business processes and in the managementof risks. In its group-widecoverage, the department is also in aposition to share practices, sometimespossible best practices for theGroup, with other entities.In the latest effort to providemanagement, Internal Audit’s customersand business partners, with atool to assess and improve businessprocesses and internal controls, InternalAudit has launched the InternalAudit database on Lotus Notes(under the “Quick Launch” menu).It is management that is ultimatelyresponsible for establishing andmaintaining risk management processesand a strong internal controlenvironment. However, Internal Auditcan provide valuable guidanceand suggestions for improvementsin these areas.This is what the Internal Auditdatabase is designed for. In its ControlSelf-Assessment section, the databaseprovides key questions to assesscontrols in various processes ofthe company. Being a largely salesand supply chain driven organization,a number of questionnaires arecurrently aimed at those particularareas. However, regular additionswill be made on all processes relevantto DKSH.Moreover, reviews often revealand highlight good business practices,which are worth sharing withother entities. This is done in thePossible Best Practices section.More on the department, the missionstatement, objectives and modusoperandi can be found in theInternal Audit Charter, which is alsoavailable on the Internal Audit databaseof Lotus Notes.John ClareDirector Internal AuditDKSH Hong KongSome FAQs on Internal AuditWhat is Internal Audit and whodoes Internal Audit report to?Internal Audit is an independentfunction that reports to theChairman and the Audit Committeeof DKSH. Internal Audit,however, works closely togetherwith Corporate Center, the BusinessUnit heads and local countryorganizations in determiningfocus and for discussion on possibleimprovements.Where is the departmentloca ted and how many InternalAudit members are there?Internal Audit is located in HongKong. The department consistsof an Audit Director and 4 OperationalAuditors, all with extensivebusiness and accountingbackgrounds, thereby enablingus to act as a business partner tomanagement.What does Internal Auditreview?Internal Audit covers the entireDKSH Group and potentiallyreviews all business processeswithin DKSH. The areas of revieware selected based on a riskassessment.The Annual General Meetingof SiberHegner Ltd., London,chaired as usual by JoergWolle in July 2004, passed aboard resolution to changethe company name to DKSHGreat Britain Ltd.When announcing this change Dr.Wolle also observed in a light notethat the UK usually has a reputationfor bad weather, male chauvinismand elite motor cars. However, hewas amazed to find on his arrivalthat England was enjoying a beautiful,warm summer day. Also thatmales within DKSH GB are nowoutnumbered 2:1 by female staff.Finally, all pre-conceptions wereshattered when, instead of beingpicked up at the airport by a JaguarXJ6 as promised, a Mercedes wasawaiting him! The “Jag” had brokendown and had been substituted atthe last minute by a “Merc”. What aletdown!Our image is still a little tarnished,but wait until the next AGM!The company’s name change representsanother milestone in its history,which prompted us to look abit deeper into the old company records.Closer examination revealedthat the founding organizationwas in fact incorporated in 1904.Consequently, 2004 is our Centenaryyear! The Company was formerlyknown as FW Coombe Ltd.,located in the East of London,a manufacturer of liquid glues, ce -ments and adhesives. Inter estinglyenough the com pany logo was aBritish Bulldog with a Union Jackflag incorporating the motto “Youcan stick it”. This would not be anappropriate slogan nowadays!In October 1947, the companymerged and changed its name toMendine Products Ltd., while continuingto manufacture glues andadhesives. It also became a broker/trader in a wider range of productsused by the cosmetics, pharmaceuticals,coatings and chemicals industries;the precursor of our businesstoday.Later in 1947, the company wasacquired by L.J. Rickards, a tradingcompany, but continued to operateas Mendine Products. It was not untilNovember 14, 1966, that thecompany finally changed its tradingstyle to L.J. Rickards & Co. Ltd.L.J. Rickards was ultimately sold toSiberHegner Holdings Ltd. on July26, 1968 and only four years laterrelocated from East London to itscurrent location in Beckenham,Kent. To this day, one of its originalproducts from 1904, Casein, is stillbeing sold regularly to a numberof UK adhesives manufacturers.However, in more recent years, thecompany’s strategy has been to concentrateits efforts on high valueadded products in specialty markets,with far less emphasis on such earliercommodities. This policy has markedlyreduced the top line of our accounts,but significantly improvedprofitability.DKSH GB currently has manyinnovative products in the pipeline.These are set to substantially increaseour revenue growth whilstcontinuing to maximize our profitability.Presently, the business is splitequally between 2 Business Units,Food & Ingredients and Specialty &Life Science Chemicals.Current specialist applicationswithin F&I include dietary fiberand prebiotics for health foods, cerealß glucans for breakfast cereals andbread, sweeteners for low caloriedrinks and a growing portfolio ofingredients for health and supplementation.F&I have also recentlyentered the savory flavors market forsnack foods with a Swiss company,who are offering an excellent rangeof products. SLC concentrates onnovel and bespoke chemicals for thepaint, ink, adhesives, sealants, film/packaging coatings markets, as wellas active substances and fine chemicalsused in the pharmaceuticals andhealthcare industries.Peter J. LynaghHCMT Great BritainDKSH Great Britain Ltd.

16 G R O U P N E W S17Knowledge Partners –the on-going learning alliancebetween DKSH and INSEADParticipants in theDKSH ExecutiveProgram at the INSEADCampus in Singapore.At the end of 2000, Diethelm & Co. had just completeda merger with Edward Keller, and the shareholders andtop management were looking for ways to create anddevelop a corporate identity for the new Diethelm KellerGroup and to provide a learning opportunity for itsKey Managers.INSEAD was precisely the place forthat purpose since, in addition to beingone of the leading businessschools in the world, it could boastthe other singularity of having developeda presence in the Asia Pacificregion, both through a physical investmentin a brand new school inSingapore, and from its credentialsin Asian management research.Together, we designed a one-weekprogram that took place on ourSingapore campus in May 2001,with 35 participants attending, whocame from 13 different countriescovering the entire Asia Pacific region.The program was designatedthe “Fantree Leadership Program”, aname that has been maintained overthe years.Tailor-made corporate developmentprograms for the needs of DKSHThe presence of the major familyshareholders and board members includingAndreas W. Keller, AdrianT. Keller and Jean-Pierre Blancpainat the opening of the programs highlightedthe significance and importanceof the event.Program content was organizedaround five main knowledge areas:Leadership, Business Development,Negotiation, Value-Based Managementand Asian Business. This basicstructure has remained the backboneof all subsequent Fan tree Leadershipprograms. An additional feature ofthe first and second sessions wasthe organization ofinternal work groups,called “Busi ness Issues”in which participantsgrouped into syndicates preparedpresentations and proposedso lu tions for top management ontypical problems that the groupswere confronted with. Themes suchas “Managing Prin cipals and Customers”,“Increased Productivity”,“Logistics”, “Growing Businesses inEmerging Environments” were addressedby those groups. Followingthis first experience, five otherFantree Leadership programs havetaken place in Sin gapore on behalf ofIn May 2005, the seventhDKSH Fantree LeadershipProgram will be held.more that 220 participants. In May2005, the seventh program willbe held.In June 2002, INSEAD hostedthe first top management integra -tion meeting after the merger ofDiet helm Keller and SiberHegner.Under the leadership of Dr. JoergWolle and with the facilitation oftwo INSEAD professors, 60 seniorexecutives of both groups debatedthe critical strategic and organizationalperspectives of the newGroup.Establishment of new programsIn 2003, in collaboration withAndreas Moelich, Head of HumanResources, we designed anotherprogram targeted at senior executives.Named the “DKSH Fan treeExecutive Pro gram”, ittook place in Octoberand its content wasorganized aroundstrategic leadership issues. Typically,the morning sessions were devotedto lectures and case discussions,while the afternoons were workshopsessions during which participantsdebated DKSH problems relating tothe topics discussed in the morning.Finally, a new development wasinitiated in 2004 with the first“DKSH-INSEAD Product Managers’Program” directed by mycolleague Professor Narayan Pantand specially tailored to the needsof product managers. The focus ofthe content is centered on marketing,logistics and inventory, negotiation and working capital management.DKSH and INSEAD – a valuablepartnershipAs the faculty member in chargeof the various Fantree programs, Imay say that I feel particularly proudof having collaborated with DKSHManagement and seeing the part-What is INSEAD?nership grow over the years. Thiskind of relationship between a companyand an educational institutionis what we in the academic worldcan best do to contribute to valuecreation. Thanks to the personalcontacts with DKSH participantsand management, INSEAD hasbeen able to tailor its teaching to thecompany’s needs, with participantshaving had the opportunity to participatein a rich and relevant learningexperience.INSEAD (www.insead.edu) is widely recognized among the world’s toptierbusiness schools as one of the most innovative and influential. It isthe only business school with fully-fledged campuses in Asia (Singapore)and Europe (Fontainebleau). Currently, 147 faculty members teach morethan 840 MBA students, 6,800 executives and 73 PhD students fromover 75 countries. The INSEAD Executive MBA was launched inautumn 2003. INSEAD’s unique global perspective and multiculturaldiversity are reflected in all aspects of its research and teaching. TheINSEAD-Wharton Alliance, announced in May 2001, combinesINSEAD’s resources with those of Wharton’s campuses in Philadelphiaand San Francisco, to deliver business education and research across aGlobal Learning Network.INSEAD 5 values are:• Diversity as a source of learning and enrichment• Independence as a governance principle• Rigorous and relevant teaching and research• Closeness to the international business community• Entrepreneurial spiritFantree LeadershipProgramsApril 29 - May 5, 2001:35 ParticipantsNovember 19 - 24, 2001:36 ParticipantsApril 21 - 27, 2002:36 ParticipantsOctober 13 - 19, 2002:36 ParticipantsOctober 5 - 11, 2003:33 ParticipantsMay 16 - 22, 2004:45 ParticipantsDKSH Top ManagementIntegration SeminarJune 26 - 29, 2002:71 ParticipantsDKSH FantreeExecutive ProgramNovember 9 - 15, 2003:32 ParticipantsDKSH INSEADProduct Managers’ ProgramJune 6 - 9, 2004:33 ParticipantsPhillippe LassereEmeritus Professorof Strategy and AsianBusiness, INSEADSingapore

18 C O N S U M E R G O O D S 19DKSH Logistics with muchbigger footprint in KoreaDKSH Logistics Ltd. Koreabecame 100% owned byDKSH, effective De cem ber2003, having been launchedas an independent businessin the form of a joint-venturecompany in 1999. The companyhad already startedcontract logistics services tothe Korean market in 1996as the Logis tics Division ofEdward Keller (Korea).DKSH Logistics is today one of thefastest growing companies in theKorean logistics market.Total warehousing space was expandedfrom 6,600m 2 in 1999 to25,000m 2 in 2004. The total storagecapacity is 21,000 pallet positionswith VNA and a regular pallet rackingsystem which was benchmarkedfrom DKSH’s Thailand and HongKong operations.The Yangji main W/H was openedin October 2001 by renting8,250m 2 or 35% of the whole spaceoccupied at that time. DKSH Logisticsentered into a 10-year longtermcontract with the W/H ownerto secure a stable warehousing operation.Currently, DKSH occupiesmore than 60% of the total spacewith 11 clients, e.g. Tefal, Nivea orBosch and is aiming to use the entireDKSH Korea Logistics’delivery trucks at themain distributioncenter outside Seoul.space within a short time. The mainDistribution Center consists of severalareas such as dry storage, temperaturecontrolled, and bondedware house. The company is operatinga bonded warehouse in ourmain distribution center, makingcustoms clearance for bonded productsqui cker and more accurate, andsaves transportation costs bet ween abon ded warehouse and the distributioncenter.Furthermore, it can hold a maximumof 960 pallets in a temperaturecontrolled area. This space is wellequipped for storing temperaturesensitiveproducts, such as snackfoods, color to ne cosmetics, etc.DKSH is also in strict compliancewith FIFO rules and manages clientinventories by date of manufacture(in case of food) to satisfy thoseclients’ needs through improvedwork efficiency within the warehouseand standardized operations.DKSH Logistics’ vision is to bethe No.1 quality company in contractlo gis tics in the Korean market.Although the revenues of majorlocal logistics companies such asHanjin, Korea express and CJ GLSare ten to twenty times greaterthan ours, DKSH Logistics standsout as one of the most competitivecompanies for customized services,including repackaging, bothin terms of service quality and cost.Total storage capacity of theYangji distribution center is21,000 pallet positions.For further growth of the company,DKSH Logistics is aiming forintegrated logistics services step-bystepand is confident of becomingthe leader in revenues and profits, aswell as in customized services.J.H. HanHCMT KoreaEdward Keller(Korea) Ltd.The two Thai Consumer Goodsdivisions are getting closerManagement Teams of DiethelmConsumer Goods (CG) Thailand,both from Consumer ProductsDivision and Food/Special Pro ductsDivision, led by their Vice President,Mr. Somboon Prasitjut rakul (standingcenter, with red T-shirt) jointlywent on their 1 st Off-Site ManagementMeeting in Kanchanaburi, aprovince 128 km away from Bangkokduring August 7-8, 2004.This first “off-site” and “joint” management meeting between the twoCG divisions was organized not onlyto boost the teamwork spirit of thetwo management teams, but also toreview the past performance of bothdivisions and provide the team memberswith similar guidelines and understandingof the future CG strategies.Mr. Somboon felt that, as partof the Global CG Business Unit,the CG management team in Thailandshould be fully aware of anyupcoming strategies that would beset by our Corporate Head Office.Until such time, when the completeCG strategies have been agreed andformulated, the team should alwaysbe on the alert and be prepared tofollow through on any new corpo-rate strategies, in order to achieveour global business objectives.The meeting ended successfully,thereby resulting in more friendlyworking relationships between themanagement teams of the two divisions.Although the two divisionsare considered something of competitorsin some of the product linesthey represent, the sense of beingunder the same “DKSH” umbrella isthe key factor to keeping their teamspirit alive. After the meeting, theteam members were more fullybriefed on all aspects of the globalcorporate policy. This in itself hasbetter prepared them for the comingchallenges to be fulfilled by theCG Business Unit in Thailand.Vanida PitaksonggramPersonal Assistant toVice PresidentConsumer GoodsDiethelm & Co. Ltd.,Thailand

20 C O N S U M E R G O O D S 21Innovations with added valuelead to increasing marketshare in Premium Pet ProductsmarketInnovation is our lifeblood.For the next few months,the Premium Pet Productsteam is working intensivelytogether with the marketingspecialists of Procter &Gamble to implement fournew product innovationsin their markets.Iams Active MaturityA big breakthrough is the outcomeof the in-depth research intothe life-stages of pets. Respected petfood experts found that pets have aspecial life-stage between the agesof 7 and 11 years old. This uniquelife-stage has been defined as IamsActive Maturity and Iams expertshave developed the new Iams Acti -ve Maturity 7+ diets for cats, to providethem with the essential nutrientsthey need. Research reveals thatwith a combination of proper nutritionand care, owners can help tokeep their pets in optimal healthwell into their ActiveMaturity years.This unique blendof animal proteins,fatty acids and vitamins– including L-carnitine – helpsto counteract the negative effects ofaging.The introduction of dedicatedfood for pets in the whole new ActiveMaturity life-stage offers ahuge opportunity to move consumerswith pets aged 7+ to specialneed products.Eukanuba is the onlybrand to have been shownto promote smarter, moretrainable puppies.Compact packAs well as new artwork, Iams willalso have a new technical design inpackaging. This Compact Pack is asmaller, less voluminous bag thanfound nowadays with 1kg and 3kgpackages. Compact Pack is alsoeasy to use and space-saving, animportant benefit for the retailers.The shelf can be used more efficiently;hence, more profit can beextracted from the same shelf space,while presentation on the shelf isenhanced.Eukanuba Lamb & Rice productsThe introduction of the CompactPack will be combined with the introductionof two new EukanubaLamb & Rice products. With thisinnovation, Eukanuba is offeringconsumers the best andlargest choice in Lamb& Rice products, alsovery appropriate forsensitive dogs and agreat advantage compared to themost prominent competitors in themarket.Smarter, more trainable puppiesGrowth in super premium petfoods should continue on the backof breakthrough research fromEukanuba showing that diets canpositively impact puppy intelligenceand trainability.To date, Eukanuba is the onlybrand to have been shown to promotesmarter, more trainable puppies.IAMS and Eukanuba productinnovations: IAMS ActiveMaturity 7+ diets for catsand Eukanuba Lamb & Riceproducts.David Morgan, Veterinary andScientific Communications Managerat Eukanuba said: “DHA hasbeen praised as a wonder nutrientfor infants; this is the very first timethat it has been found to boosthealthy brain development in puppies,too. With puppies receivingenhanced DHA levels demonstratingsuperior memories by beingsmarter, more trainable, this researchhas widespread implications forhelping to establish optimal behaviorpatterns.”All these innovations are only thebeginning of an extensive phase ofproduct innovations by Iams & Eukanuba.They represent an importantmotivation and opportunity forincreasing market share in the manycountries in Europe and Asian whereDKSH is operating in the PremiumPet Products market.Freek KlijnsmaIAMS Division ManagerDKSH Netherlands

22 C O N S U M E R G O O D S 23DKSH and DermaNew –a beautiful success storyEfficient relocation of the DKSHMarketing Services Distribution CenterMalaysia within record timeAmby Longhoferand Dean Rhoades,DermaNew.Developing products for thebeauty industry in BeverlyHills, with people hailing fromalmost every country andwalk of life, DermaNew realizesthat beauty knows noborders. We have come torespect DKSH for their likemindedness,and greatlyappreciate the friendshipswe have made.DKSH and their team understoodthe vision of DermaNew, and thevast market potential DermaNewhas throughout Asia and the world.We could not be more thrilled orimpressed with how DKSH has followedthrough on this vision andreproduced all of our trade channels– especially in the first flagshipDermaNew store located inHong Kong.One of the biggest challenges ofa multi-faceted corporation likeDKSH is to treat each business withthe same passion, as if it were theironly principal. DKSH has masteredthis challenge. After meeting andworking with Dr. Joerg Wolle, EnzoCunico, Yvonne Chan, MonicaWong and the rest of the DKSHteam, we can clearly see how andwhy. They continue to impress uswith their energy, vision and professionalism.Together, we share a commonvision and mission to be world leadersin developing and selling qualityand innovative products and systemsfor each and every person seekingpersonal and physical rejuvenation.With DKSH, Hong Kong willbecome Beverly Hills’ sister city inBeauty!Amby Longhofer, President/Founderand Dean Rhoades, CEO/Founder ofDermaNew, Inc.The first flagshipDermaNew storein Hong Kong.In response to the Group’sobjective of achieving greatereconomies of scale, synergiesand best practices throughconsolidating the logisticsoperations of all units withinthe Consumer Goods business,the relocation of DKSHMS’ logistics operations fromNilai to the facility of DiethelmLogistics Services (DLS)in Klang, a distance of 80km,was completed in August2004.This move was preceded by DKSHMarketing Services’ (MS) systemmigration from ISIS to SAP WMSwhich went “live” on May 4 to supportthe transfer process.Prior to the relocation, part of thefacility in DLS was upgraded to improvesecurity, safety, storage andmovement of goods. This phase wascompleted in the record time of 5weeks, at a cost of RM 3.2 million,which was within the budget of RM3.8 million. Major improvements tothe block occupied by DKSH MSinclude the installation of thirteendock levelers, realigning the accessgates to create a bigger staging area,reconfiguring the racking system,illuminating the storage area from90 lux to 180 lux and enhancing thefire protection system. Areas otherthan the block occupied by DKSHMS that were also upgraded inclu -de the extension and energizing of1800m 2 of cold-room, installingair-conditioning tunnels for stagingof air-conditioned products duringreceiving and despatching, compartmentalizingthe trade return storeand installing a 300 kVA standbygenerator.July 24, 2004 will be a day toremember in the history of DKSHMS Logistics when the first wave ofbonded goods and air-conditionedproducts were amongst the firstitems to be relocated. This operationwas completed in a single day.Spurred on by the spirit of teamworkand supported by the DLS team, the2 nd phase of the exercise fromAugust 6 - 9 saw the successful completionof the relocation to DLSfrom its Nilai facility with only 1 dayof disruption to operations. Businessas usual resumed from AugustAbove left: Pallets beingshrink-wrapped beforeloading.Above: Checking andverifying upon arrival.Left: Traffic Control center.10 as targeted. All in all, close to12,000 pallets were relocated in 600trips.The warehouse relocation wascarefully and meticulously planned.In this regard it was an achievementfor the logistics team as no majorhitch was encountered during theoperation, which could have resultedin lost sales and stock loss/damages.This achievement would not havebeen possible without the dedicationand sacrifices of every memberon the team. The co-operation andefficiency of the transport serviceprovider also contributed enormouslyto our success.Lim Kim SengGeneral ManagerSupply ChainDKSH MarketingServices Sdn Bhd

24 H E A L T H C A R E 25Diethelm Philippines Inc.participates in twoconventions – a big hit !DKSH Healthcare DistributionTeam in China with a fullservice, full solution concept !Senior National SalesManager, Mar Dabaloswith top DSAP officialsshowing off theirDKSH bags.Above: The ECR market place.Left: DPI’s prominent boothstructure.Left below: DSAP opening daywith indigenous dances.Diethelm Philippines Inc.recently took part in twoimportant conventions in itsindustry. The first event wasthe Drug Store Associationof the Philippines (DSAP)Convention, and the secondwas the Efficient ConsumerResponse Asia (ECR Asia)Convention.The earlier convention tackled issuesconcerning the HealthcareAlliance aspect of DPI’s business,while the latter was targeted at theconsumer industry.DSAP ConventionDSAP is one of the most importantPhilippine organizations coveringthe pharmaceutical distributionindustry. Its membership base ismade up of large & small stores,from the north to the most southernpart of the country. According to itscredo, the organization’s sole purposeis to help preserve and pro mo -te their group’s livelihood whilestrengthening relations with suppliersand customers. This is whereDiethelm Philippines Inc. makes itspresence felt: by being not just theirsupplier, but by also their businesspartner, DPI assists DSAP membersin improving their business operationsand eventually helps them reapimproved profits.The DSAP convention was launchedin the morning of September 8with indigenous dances and cheersfrom DSAP members. Senator MarRoxas, who was also a former Tradeand Industry Secretary, delivered thekeynote speech which highlightedmajor issues in the drugstore retailindustry.Plenary discussion sessions wereorganized throughout the 3-dayconvention. Some of the pertinentissues discussed included inventorymanagement in drugstores, disciplineand excellence in drugstoresand income management.Diethelm Philippines was alsogiven time on stage to present to all1,000 delegates its company andservices profile. In the booth dis -play area, DPI distributed a specialbag with samples of its principals’products. All DPI activities at theconvention were warmly received byall delegates without exception.ECR ConventionECR Asia, in its pursuit of promotingEfficient Consumer Responsetechniques, is geared to buildingconnections across Asia and connectingAsia with the world throughthe 7 th ECR Asia Conference. Manilahosted this important event toprovide ECR practitioners andenthusiasts, and various players inthe Fast Moving Consumer Goods(FMCG) industry, with a businessconference that is directed towards“Delighting the Asian Consumer”,which was also its theme for thisyear.The Philippine InternationalConvention Center (PICC) was busyonce again, with more than 800 localand foreign delegates learningand deriving inspiration from industrycolleagues, ECR experts andnoted consultants on the breakthroughconcepts, latest updates,and real-life executions of ECR.The plenary and breakout sessionswere complemented by the MarketPlace, an area where delegates couldinteract, network and obtain moredetailed information from exhibitors,sponsors and service providersalike.There were also industrial toursto allow first-hand experience ofthe unique Philippine retail industryand also to observe best practices inthe industry. DPI hosted one of theindustrial tours, which was atten -ded by more than 100 delegatesfrom all over Asia.DPI’s presence at both conventionssignaled the growth of its businessin the Philippines. Awareness ofthe company, as an emerging majorplayer in the industry, has increasedexponentially over the last 2 years.This can be attested to by the increasein DPI’s principals from just 8in 2002 to 30 today. This increase inDPI’s principal portfolio signifiesthat companies have confidence thatDiethelm can and will improve theface of the healthcare and consumerindustries in the country. To date,premier pharmaceutical and consumercompanies are currently lookingto Diethelm Philippines Inc. tobe their new partner in business.With this in mind and with systemsin place, DPI is ready to take on thechallenges of adding new principalsand new businesses to its boomingbusiness portfolio.Dean Clark M. CamuaCorporateCommunicationsDiethelmPhilippines Inc.The Healthcare Distribution Sales Meeting was held inSanya on the beautiful island of Hainan, famous forbeing the most southerly tip of China and for its almostHawaiian flair.This meeting was the first to inclu -de a sales force that covers the entirePeoples’ Republic of China. Thebasic principles for the strategicexpansion of the Business LineDistri bution/Operations and thesuccessful implementation of BusinessDevelopment activities wereestablished. This was done by formulatingand standardizing our conceptsin the service sectors of distribution,information services, tendermanagement and supply chain solutionsfor, and together with, the entireteam. Over and above this, wecommunicated the new DKSH cultureand created a strong team identity.We conducted training sessionsin all sectors, thereby significantlyraising the collective level of competence.Fluctuations in this team arevirtually non-existent, which is rarelythe case in China. Team membersare either pharmacists or medicaldoctors.The group shown is our DistributionTeam – all are either pharmaceuticalspecialists or GPs, noneof them logisticians – who managethe supply chain right down to drugstoreor hospital level in cooperationwith the Hospital or DrugstoreTeams of DKSH or the principals.Full service, full solution concept!

26 H E A L T H C A R ES 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 S27Healthcare Operations in Malaysianow ISO 9001:2000 certified !Inroads into the CropProtection marketwith own developedproductsCopy of ISO 9001:2000 certificatefrom SGS UnitedKingdom.Our Healthcare OperationsBusiness Unit in Malaysiais now ISO 9001:2000certified by the UK SGS certi -fying board and receivedthe official certificate inSeptember 2004.Our Zurich office is servingover 100 customers acrossthe whole of Europe in themarket segments of PlantProtection, Pest Control &Hygiene, Home & Garden,Turf, Amenity & Forestry,Wood Protection & Paints.Agro panels forthe new productsArboVital, NaturPowerand Viradis.The implementation of the ISO9001:2000 Quality ManagementSystem (QMS) commenced in late2003 and involved staff of all levelsin numerous workshops, trainingsessions, audits and meetings.Strong support by top managementof the Healthcare Operations wasgiven in order to ensure that certificationbecame reality.A steering committee comprisingall heads of departments drove theproject forward, together with theassistance of appointed externalQua lity Management System consultantsand external trainers.As part of the QMS, an internalQuality Audit Team, comprising 3trained Lead Auditors and 12 InternalQuality Auditors has been createdto evaluate the QMS on a regularbasis, checking that compliance tothe standards and documentationprocedures are strictly adhered to.The main objective of the ISO9001:2000 certification is to ensurea work culture evolving aroundconsistent quality throughout theThe steeringcommittee responsiblefor the implementationof ISO9001:2000 QMS.organization. Its achievement supportsthe Quality Policy Statement“To ensure and continually provideconsistent high quality services meetingthe expectations of all customersfor the mutual benefit of all stakeholders”.Low Lai ChinProject ManagerHealthcare OperationsDiethelm MalaysiaSdn BhdOn the one hand, we sell a largeportfolio of active ingredients andintermediate commodities originatingprimarily from China. Our highlyspecialized sourcing office inShanghai has been supporting usactively to extend sales to formulatorsand producers, despite verytough new registration regulations inEurope.On the other hand, we distributeexclusively, finished products such asplant protection and pest controlformulations, pheromone dispensersand traps.We represent more than 30 suppliersbased in Europe, Asia and theUSA, including multinationals likeBayer, BASF, Dow Agrosciences andSumitomo.In November 2004, we presentedfor the first time at the British CropProtection Council (BCPC) fair inGlasgow our three own product lineswith the following family tradenames: ArboVital, NaturPower andViradis.The Agro Team at theBCPC 2004 in Glasgow.Our creativity and hard work overthe past 3 years has paid dividendssince we are now in a position tomarket new products that mayinduce a revolution in the CropProtection market worldwide. It isour strategy to develop brandedproducts, primarily in collaborationwith universities. In a market that isOliver DürrSales ManagerAgrichemicals/Hygiene/Animal VitalisBusiness Unit Specialty& Life ScienceChemicals, DKSHSwitzerland Ltd.increasingly regulated, straightforwardtrade with commodities hasbecome unprofitable and, in somecases, even illegal. Those investmentsin registration and branded pro -ducts have a bright future, since theirregulatory data packages give theman exclusive po si tion in the CropProtection market.Reto GerberSales ManagerAgrichemicals/HyieneBusiness Unit Specialty& Life ScienceChemicals, DKSHSwitzerland Ltd.

28 F O O D & I N G R E D I E N T S 29On the move !DKSH Thailand Exhibits atFood Ingredients Asia 2004Following the first Food &Ingredients Strategy Workshopin February 2004, thespark was created to formulatethe Business Unit’sglobal growth strategy –“Unite and Ignite”.In August 2004, Business Managersrepresenting the key food markets inEurope, Asia and the Americas ledby Wolfgang Schanzenbach, reconvenedin Vietnam to assess the progressfrom the previous workshop, aswell as agree key fundamental requirementswhich will make DKSHF&I the leading healthy lifestyleservices provider throughout theFood and Well-Being industry.Guided by our external consultantsfrom “Executive Insight”, theWorkshop helped to highlight thewealth of knowledge and resourcesalready at the Business Unit’s disposal.So, how do you come up witha global strategy that utilizes theknowledge and resources currentlyavailable, when markets differ globally?Build from the bottom up!Where do we see areas of growth?Where are we ahead of the competition?How can we best learn fromthose DKSH offices in other markets?Are we ahead of the industrystandard? Can we try somethingnew, over and above the industrystandard? The F&I team was organizedinto 3 groups, Functional andNutritional Supplements, Beverageand Snacks, Sweets and Savouries.We managed to agree as to what eachindustry sector required to achievefuture growth. However, due to localmarket intricasies it was quicklyagreed that one size does not fit all.Nevertheless, common trends werefound between markets as diverse asJapan, Thailand and the UK andthat was used as the foundations.The actions agreed from the Workshopincluded procedures to:• Increase the global use of ourexcellent F&I New Product Developmentfacilities in Japan, Philippinesand Thailand• Consolidate the F&I quality proceduresglobally• Develop a creative marketing conceptprocess for new products• Set up a global sourcing team tolook at new quality ingredientsand suppliers.By the end of the third day of theWorkshop, it was agreed that theF&I team was indeed moving intonew territory. Coupled with the fantasticVietnamese hospitality, food,traffic, and planning from our localoffices, Strategy Work shop 2 provedto be an outstanding success and anexciting platform for the future.However, reciting a well knownmantra from our CEO “strategy isbecoming real at implementation”,we have to get into the battle now.Kavan RanasingheFunctional FoodsDKSH Great BritainDKSH is newexclu sive agentof LarexOn August 19, 2004, as the newlyappointed and exclusive agent ofLarex, USA, F&I held the firstpresentation in the DKSH Taiwanoffice.DKSH introduced Larex’s product,Arabinogalactan (AG) to majorpotential customers in the healthfood industry. As project leader, Mr.Peter Schkoda flew in from Zurichto support this activity, Mr. ErikTrock-Jansen, HCMT then introducedDKSH Taiwan to our customers.Larex’s Arabinogalactan is extractedby a fully natural steam processfrom Western and Eastern Larchtrees. It works dramatically as a prebioticfiber, a cholesterol reductionmaterial and also helps in immunesystem enhancement.Garson Liu, Product Manager, Food &Ingredients, DKSH TaiwanAfter the success of 2002,DKSH’s Business Unit Food& Ingredients in Thailandtook its second opportunityto exhibit at the FoodIngredients Asia Exhibition(FIA) 2004 in Septemberin Bangkok.DKSH Thailand represented 6core principals from Europe andAmerica, all of whom are leadingmultinational companies. The overallgoal was to promote and createawareness of our one-stop shopconcept and various product & salesupport functions that we can offerthe market in Thailand. Our principalswere especially appreciative ofour innovative laboratories, whichusually come up with fresh attractiveproduct concepts.To highlight our commonstrength at FIA 2004, the teaminvented and created new, distinctiveproducts to distribute free ofcharge for visitors to try out andcomment on. Naturally, all con -cepts were to employ ingredientsfrom our core principals. Consequently,because of the wide diversityof products on offer, ourstand was a hit with visitors. Eachday we served a choice of two differentfree beverages and changedthese every day. This event was bothpopular and attractive. Feedbackwas very positive, not only jud -ging by the empty container atthe end of each day. The first day, wehanded out Red Berry Mix andRooibos-Lemongrass tea to giveattendants an unconventional tasteof Super Anti-Oxidant Rooibos teaand Exotic Berry fruits.On the second day, we offeredeven more fun by creating the Non-Alcoholic Blue Kamikaze cocktailconcept and Bloody Fruity.Finally, on the last day, we presentedthe concept of very beau tifyingand very healthy drinks by VeryVeggie and Very Fruity. The VeryFruity drink is a mix of White teaand Aronia.On top of this, free candies witha cocktail touch were also alwaysavailable for visitors and passersbyto grab. The team presented thoseproducts that most Thai people arefamiliar with, such as Blue Kamikaze,Long Island, Strawberry Daiquiryand Energy Tequila.Sweet product applications werenot the only ones that received considerableinterest. Savory productsalso gained attention from the audience.A unique and uncommon, butattractive, dipping sauce made fromgreen tea, rosemary and wasabiinvariably drew attention. We alsoserved more conventional versionMashed Potato with Chicken Gravysauce.The DKSH team present at theFIA 2004 in Bangkok (above).Demonstration of savory (left)and sweet products (below).Lastly, we applied Natural ColorFresh Noodle with Japanese stylesoup. Four colors were exhibited:Green from green tea, Orange fromcarrot, Purple from purple carrotand Red from red beet.We are delighted to announcethat we received excellent feedbackfrom this exhibition in terms of inquiries.The success of our innovative,uni que and good customer serviceis promising to earn us competitiveadvantages.ThanyawatRungtivasuwanSenior DepartmentManagerFood Ingredients andRaw Materials, DKSH(Thailand) Ltd.

30 F O O D & I N G R E D I E N T S31The gift of nature –maintaining your beautyand youthWe, DKSH Food & IngredientsBusiness Unit Japan,very successfully introduced,promoted and commercializeda unique functional ingredientnamed Pycnogenol,produced by the companyHorphag Research Ltd.,Swi tzerland, into both thefood supplement and cosmeticsindustries in Japan. Wewere honored by the supplierwith the “Outstand ingSales Achievement” awardin both 2002 and 2003.Pycnogenol ® , the unique extractfrom the French maritime pineHistoryPine bark bioflavonoids were usedby the native Indians of NorthAmerica in a tea brewed from thebark of pine trees growing along theAtlantic coastline. The French explorerJacques Cartier was introducedto the tea when Indians sa -ved most of his crew from death byscurvy during the winter of 1534.More than 400 years later, universitiesbegan studies on flavonoids.Their search for bioactive flavonoidseventually led them to the bark ofthe French maritime pine, wherethey found a rich source of a distinctgroup of highly bioavailable andbioactive flavonoids.Horphag Research’s continuingstudies in Australia, China, Finland,France, Germany, Hungary, Italy,Pycnogenol isextracted as a fine,free flowing powderfrom the Frenchmaritime pine.Japan, Romania, Switzerland, theUnited Kingdom and the UnitedStates over the last 30 years haveconfirmed the composition ofPycnogenol ® , its beneficial effectsand absence of toxicity. Pycnogenol ®was launched commercially in theUnited States in 1987.Composition of Pycnogenol ®Pycnogenol ® is a concentrate ofwater-soluble bioflavonoids consistingof procyanidins, catechin,taxifolin and fruit acids in constantand normalized proportions. Becausethe bark grows layer by layerover a period of more than 30 years,there are neither seasonal nor an -nual variations in the compositionof its ingredients, in contrast toother herbal extracts. All constituentsof Pycno genol ® are potentscavengers of free radicals.PropertiesPycnogenol ® is a fine, free flowingpowder. It smells aromatic, has anastringent taste and is light reddishbrownishin color. It is very stable ina non-humid atmosphere and can bestored in dry places protected fromlight for periods of up to 5 years. Theprocyanidins content decreases only1% per year. Pycnogenol ® is easy tohandle for the production of tablets,capsules, ointments, gels, lotions orchewing-gum.Who should take Pycnogenol ® ?EverybodyFree radicals develop continuouslyas by-products during normal metabolismin our bodies and they continuouslycause damage to our cells.When we are younger, the consequenceis relatively minor. However,as we age, the cumulative effects ofthis process begin to take their toll.A large variety of diseases is knownto involve free radical damage.Neutralizing free radicals with Pycnogenol® , one of the most powerful antioxidants,is necessary to delay thisharmful process and preventionshould begin at an early age.SportspeoplePycnogenol ® increases enduranceas demonstrated by athletes on aFood supplementsmarketed by thecompany “DHC“ andcombination series offood supplements andcosmetics under theproduct concept of“Inside and OutsideBeauty” marketed bythe “Sony CP Lab”(right).treadmill in a placebo-controlledstudy. Supplementation with Pyc -no genol ® enhanced enduranceby about 20%, most probably as aresult of improved circulation andscavenging of free radicals.ManagersMen and women are at ever-increasingrisk of heart infarction andstroke, exacerbated by stress in theworkplace. In a clinical study, Pyc -no genol ® prevented the aggregationof blood platelets, reducing the riskfor heart infarction and stroke, whilekeeping circulation normal evenunder conditions of elevated stress.To reduce symptoms of chronicvenous insufficiencyMany people (women more oftenthan men) suffer from venous disorderswith swollen ankles, cramps andpain in the lower legs. Trials conductedon 600 patients showed thatthese symptoms are greatly reducedafter intake of Pycnogenol ® .WomenFor beautyPycnogenol ® protects elastic fibers,col lagen and elastin, from degradationand helps to rebuild skintissue. Pycnogenol ® reduces the in-tensity and size of irregular pigmentationof the skin. Moreover, it actsas an internal sunscreen, reducingthe skin damage caused by UV-irradiation.Pycnogenol ® makes the skinlook fresh and healthy.To reduce menstrual disordersClinical studies in Japan haveshown that intake of Pycnogenol ®14 days before menstruation reducesthe intensity of cramps and pain relatedto menstrual disorders.MenTo improve fertilityClinical observations show thatintake of Pycnogenol ® improves thequality of sperm in men whose infertilityis caused by malformed sperms.This effect is likely the result of scavengingof deleterious free radicals.The elderlyAccording to the free radical theoryof ageing, the process of ageing isaccelerated by free radical production.Consequently, the regular intakeof a potent scavenger of freera di cals should retard this process.It has been demonstrated that intakeof Pycnogenol ® increases memoryand learning ability, an additionalpositive effect besides protection ofthe circulation. Sportspeople oftenhave impaired immune systems,similar to elderly people. Pycnogenol® boosts the immune systemby enhancing the activity of socalledkiller cells and by increasingthe production of immune-competentcells.As sales references, we abovepresent the different finishedproducts. One is the food supplementsmarketed by the company“DHC”, which is one of the biggestfood supplement distributors, theother is the combination series offood supplements and cosmeticsunder the product concept of“Inside and Outside Beauty” marketedby the “Sony CP Lab”, whichis a subsidiary of the famous “Sony”group. These two well-known companiesare just two of our impressivelygrowing customer list.Kenichi NagaiManaging Director andGeneral ManagerNihon SiberHegner K.K.

32 F O O D & I N G R E D I E N T S 33The Qualityof SuccessVitamins for Personal Careand Cosmetics – from ourvalued principal HayashibaraVictor FerrariChief Operating OfficerHorphag Research, Geneva“In the year 2000, Nihon Siber-Hegner was appointed distributorshipfor Pycnogenol ® in Japan. Whatfollowed can be described as anunprecedented success story forboth companies. Within a shorttime, the Tokyo based team underthe supervision of Kenichi Nagai wasable to establish Pycnogenol ® asa key ingredient for the Japanesehealth industry. Both companiesunited their resources and capabilitiesand implemented distributionand communication in a true spiritof partnership. The quality of thepeo ple equalled the quality of theproduct. We feel privileged aboutour association with Nihon Siber-Hegner and look forward to continuousgrowth in this very promisingmarket.”The origin of Horphag Research, a privately heldcompany, dates back to Berlin in 1925. Becominga leading company supplying fortifying nutritionalproducts, Horphag Research can be consideredas a pioneer of – what we call today – thedietary supplement and health food industry. Inthe early seventies, Horphag Research starteddeveloping a unique substance: The water solubleflavonoid extract from the bark of the Frenchmaritime pine tree – Pycnogenol® – suppliedworldwide exclusively by Horphag Research.In our modern society, beingor at least looking youngand attractive is often seenas the “key to success”.Yet populations in the industrializedsocieties are gettingolder!Cosmetic products that improve aperson’s appearance or reduce theeffects of stress and ageing mayexplain the constant vitality of thecosmetics industry. In 2000, this industrywas already one of the fewboasting double-digit growth yearon year. At that time, our challengewas to open some customers’ doorswith a raw material portfolio full ofpromising ingredients, like AA2G In 2002, DKSH concludeda worldwide agreementwith Hayashibara.Left to right: Eric Bollens, Direction Généralede Achats, L’Oréal; Katsuaki Hayashibara,Corporate Director Overseas Business Development,Hayashibara; Olivier Patricola, GlobalProduct Manager AA2G, DKSH France S.A.from Hayashibara.Founded 1883, inOka yama, Japan asa starch processingcompany, Hayashibara soon establisheditself as a major manufactu -rer of syrups under the “Taiyo”brand, a name that became famousboth domestically and regionally.Haya shibara’s commitment toResearch and Deve lopment, par ticularlyin the post-war years, establishedthe company as a leadinginnovator in carbohydrate technologyand resulted in its becomingthe first enterprise in the world tomanufacture glucose syrups enzymaticallyfrom starch. This processwas to become the industry stand -ard internationally. Other innovationsfollowed including high puritycrystalline maltose, maltitol, pullulanand trehalose.In 1990, using its innovative technologyand mindset, Hayashibaradeveloped a productionmethod to stabilizevitamin Cwith glucose. Thisproduct, ascorbic acid 2-glucosideis known as AA2G . Some yearslater, DKSH Japan informed itscolleagues in France about Hayashibara’sin tention to find a partnerin Europe for the registrationof AA2G as a cosmetic ingredientapproved by the EU.Marketing AA2G required aperfect understanding of chemistryand dermatology. Furthermore, itwas necessary to monitor the internationalregulatory environments;the legal status related to some cosmeticsapplications, including restrictivepatent issues. Customerswere delighted to have formulationassistance demonstrated by prototypes,developed especially for them.Along with the support and commitmentof Hayashibara, no obstaclescould stand in the way of our determination.Through these efforts,we gained the status of a full serviceprovider and could cooperate withrenowned top level customers, evensharing confidential informationwith them. From then onwards,nothing could stop us.Since this year, L’Oréal, Clarins,Yves St Laurent, Chanel, Dior andmany others are our customersfor AA2G. Most leading cosmeticbrands are indirectly promoting thisunique ingredient. This is beingachieved through widely differ -ing marketing concepts, which continueto make this industry one ofthe most fascinating. This year,Hayashibara as a principal will enterthe top 5 list of our dedicated Food& Ingredients key suppliers.The worldwide agreement weconcluded with Hayashibara inMarch 2002 implicates a greaterglobal strategy, with the hiring andtraining of staff in China, to SouthAmerica where a distribution net-Cosmetics containingAA2G for whiteningapplications.work is being established. New excitingglobal responsibilities withHayashibara and the New ProductDevelopment Team will replicatethe French success story in manyparts of the world.Olivier PatricolaDKSH Global ProductManager for AA2GDKSH (France) S.A.

34 TECHNOLOGY35A multinational, multifunctionalfour party cooperation leadsto success !The State Railways of Thailand –a 40 years success story forCummins and Diethelm ThailandKing Rama V on the completionof the first rail line in Thailand (left),the Central Railway Station inBangkok (below).Sirivatana Interprint,one of Thailand’s leadingprinting companies, hassigned a major contract forthe purchase of two largeprinting machinery systemsfrom DKSH Technology,Thailand, the exclusive distributorof Komori printingproducts.Sumisho Leasing (Thailand) isproviding the financing for this significantpurchase, valued at aboutCHF 7 million.Komori, one of the world’s topmanufacturers of high-end stateof-the-artprinting equipment andmachinery, appointed Diethelm itsThailand distributor only 6 monthsago. Hence, this contract marks aflying start for both companies inThailand.“We have every confidence inKomori’s excellent printing machinery,and with the on-going supportof Diethelm, we feel we are in verygood hands”, stated Mr. PornthepSamatiyadekul, Managing Director,Sirivatana Interprint PCL. “We haveused Komori products within ourprinting operations for years andappreciate and understand theirstrengths, and with Diethelm asthe local distributor, we feel verysecure with this purchase.”Walter Brenneis, President ofDKSH Thailand, noted, “We arecertainly pleased to have gotten offto such a robust start in our relationshipwith Komori and are veryap pre ciative of the contributionma de by Sumisho Leasing (Thailand)in seeing this transactionthrough to completion. We are alsovery delighted to be providingto Sirivatana, as one of Thailand’sleading prin ters, such outstandingproducts.”The purchase agreement is forone Komori Lithrone 44SP Pressand one Komori Web Offset PrintingSystem (38S), two of the mosthighly regarded machine types intheir cate gories for major printingoperations.Wate Na SongkhlaExecutive MarketingManager Printing,Processing & PackagingDiethelm & Co. Ltd.,ThailandKomori Lithrone44SP Press.Pornthep SamatiyadekulManaging Director SirivatanaInterprint Public Co., Ltd., Thailand“We have every confidence inKomori’s excellent printing machinery,and with the on-going supportof Diethelm, we feel we are in verygood hands.”Toshifumi AikawaPresident Sumisho Leasing Co., Ltd.,ThailandThe State Railways of Thailand(SRT), the operators ofthe railroad system of theKingdom of Thailand sinceits founding by King Rama Vin 1887, with over 4,000kilometers of track, are consideredthe lifeblood of thecountry.The SRT, providing public and cargotransportation throughout thenation, have a historically successfulrelationship with Cummins andDiethelm in Thailand – a member ofthe DKSH Group of Companies.In 1963, the SRT purchased theirfirst Cummins engine for locomotives.The following year Diethelmbegan its relationship with Cum -mins as its representative in Thailand,and with the SRT, ever since. This40-year plus relationship betweenone of the world’s leading locomotiveengine and diesel engine manufacturershas been a story going fromsuccess to success for the State Railways,Cummins and Diethelm.Today, the Cummins engine populationamong the SRT ‘s locomotivesand railcars stands at no lessthan 526, spread over 5 differenttypes. Looking to increase locomotiveand railcar availability whilemaximizing engine durability, theSRT has come to rely heavily onCummins for its engine needs. WithCummins’ demonstrated reliabi -lity in providing spare parts atcompetitive prices and through significantlyshorter lead times, partssales have grown to USD 2 millionper year.Nowadays, Cummins is the designatedpreferred engine supplierfor locomotives and railcars, as it hasbeen in all recent SRT tenders. Withthe high degree of loyalty now confirmedby the SRT, this role as theprin cipal engine supplier to Thailand’srailroads is expected to remainunchanged in the foreseeable future.For Cummins and for Diethelm,the State Railways of Thailandcontinue to be a source of pride andsuccess.State Railways of Thailand Locomotivewith Cummins Engine (left) and newState Railways of Thailand diesel railcarwith Cummins engine (below).Daniel K. VanniasinghamDirector of Marketing(Engine Business), Cummins DieselSales Corporation, SingaporeUdom CharoenpongExecutiveMarketing ManagerCummins DieselPower GenerationDiethelm & Co. Ltd.,Thailand

36 TECHNOLOGY37Business Unit Technology maps out the futureOn July 26, 2004 the TechnologyBusiness Unit helda General Managers’ meetingin Bangkok, Thailand, toreview business and definethe Business Unit’s forwardstrategy. Present were thecountry General Managersof the Technology (TEC)Busi ness Unit, as well asTechno logy corporate stafffrom Europe and America.A proud past, a bright futureGuests arrived on Sunday even -ing at the Amari Atrium hotel andwere welcomed by Walter Brenn -eis and Christoph Enderle with adinner cruise on the Chao Phraya,the “River of Kings” aboard a speciallyconverted, traditional Thaifishing boat – powered, of course,by a Cum mins diesel engine. As wecruised along the river, we werestruck by the convergence of richhistorical landmarks with modernhigh-tech architecture. What moreappropriate setting for us to chartthe high-tech future of DKSH,a com pany with an equally richhistory.Our first day of meetings beganwith a review of the TEC Strate -gic Roadmap. The mission is tofirmly remain the industry rolemodel in Asia as an integrated technologyservices provider. Organizationally,the TEC business operationsare comprised of 3 domi -nant Business Lines and 3 deve -loping Business Lines, operating in15 Countries.The goal for TEC’s product portfoliois to have each country possessing3-4 strong Business Linesand all Countries in the profitableInstru ments (INS) sector. TEC willalso endeavor to become a playerin the strategically important Environmental Technology and RenewableEnergy fields.The review of the global performanceof TEC revealed a lot. 2004is shaping up to become an outstandingyear, with most BusinessLines surpassing both budget andyear-on-year comparisons.Countries reported individuallyon their business status, achievements,trends, and outlook for thefuture. One common theme wasthat the weak U.S. Dollar wasstrengthening the export base ofdollar-linked economies, while thestronger Swiss Franc and Euro weremaking many imported productsoverly expen sive and, hence, erod -ing margins. Another widespreadaspect raised was the difficulty inattracting and retaining skilledengineers when the export basedeconomies are booming. Bio technologyand environmental technologieswere also frequently citedas being industries that held considerablepotential for business developmentin several countries.ThailandThailand’s business is seeing salesand EBIT in keeping with plans.Ko mori, Malvern and Metech, plusseveral smaller product lines wereadded to the portfolio. Future developmentplans will include launchingCum mins gas engines onto the market,expanding the newly acquiredKo mori business and developing theenvironmental business.JapanIn 2004, Japan is enjoying veryrobust performance. Momentum iscontinuing to build up with Durst’snewly introduced digital scanningequipment, Precisa’s first success -ful sales outside Switzerland andGer ma ny, while Anton Paar busi -ness has doubled compared to its2003 year base. Moving forward,environmental systems and neutriceuticalswill be priorities for businessdevelopment.ChinaChina’s economy is seeing un -pre cedented growth and foreign investment,especially in infrastructure-relatedindustries. However,the challenge for DKSH China isthat many principals, driven byeuphoria rather than cost-headedbusiness calculations, are seekingto set up their own direct saleschannels, generally forgetting aboutthe vital service aspect. The show -case Trumpf/Siber Hegner joint venturewill be further strengthened andexpanded into new activities.Key managers of theBusiness Unit Technologyat their meetingin Bangkok.SingaporeBusiness was buoyed by significantlarge orders in machine tools,printing and infrastructure relatedprojects, as well as the addition ofseveral new agencies for life scienceand materials science, thus bodingwell for 2005.MalaysiaIn Malaysia we saw a number ofnew business acquisitions in the 1 sthalf of 2004, including StanhopeSeta, BinderMatic, Torrey Pine,Streestech, Behr, GeSim, LUM andSheffield. A new Petroleum Divisionwas set up, along with a Lab Solutionsdepartment to further expandthe Instruments (INS) department.AustraliaOn top of usual business, the“Land Down Under” reported successfuldevelopment of AustralianspecLapp Kabel products, sour -ced price-effectively from China.TaiwanTaiwan saw major orders fromthe Seven-Eleven Group for hospitalitybusiness catering to fast foodchains and convenience stores amongothers. Another important trend isthe investment into mainland Chinaby Taiwan companies and here,TEC Taiwan will leverage its longstandingrelationships with keycong lomerates to supply equipmentinto the new mainland facilities.Daewoo constructionequipment.New Business DevelopmentA key part of the TEC missionis to identify and develop new businesses.Philipp Wunnerlich, ournewly arrived Business DevelopmentManager, presented a well-structu -red framework for identifying andde veloping new businesses. Then,he led the senior TEC country managementthrough a brainstormingsession to capture and prioritize theprospective business developmentopportunities. Some of the keytechnology trends and industrial sectorswere environmental technologies,security technologies and biotechnology.Philipp introduced the“New Business Development Monitor”,which will be used regularlyto report on the status and progressof new suppliers being pursued.Value CreationLuke Mitchell, General Managerof Technology Business Unit,Japan, delivered a stimulating presentationon “Value Creation”, aframework for maximizing value forcustomers and suppliers, ultimatelyleading to a sustainable sourceof revenue and profit growth. Lukealso demonstrated a practical exampleof value opportunities such as24 x 7 service, rapid response times,on-line software upgrades, servicecontracts, and spare parts stocking.These were listed and rated accordingto customer value, DKSH capabilityand competitor capability.Business PracticesBeat Meier, the Sourcing OfficeManager for Asia based in Zurich,discussed the importance of soliddis tribution agreements. To strengthencontracts, Beat reminded managersof the key “do’s” and “don’ts”of such distribution contracts.During the second day, we touredthe impressive facilities of Diethelm& Co, Thailand. Founded in 1906,Diethelm Thailand has built upa strong and diversified businessportfolio, which includes salesand service for Consumer Goods,Health care, Chemicals, Food &Ingredients, Technology, as well asdistribution services, travel servi -ces, real estate and more besides.Diethelm TEC officeThe Diethelm TEC office housesthe sales, service, marketing, finan -ce and logistics staff for TEC operationsin Thailand. But, perhapsthe most impressive aspect of thisoffice is the facilities dedicated tothe Cummins diesel business. Here,service operations can performfull overhauls of Cummins enginesmeeting the most stringent standardsfor precision and reliability. Spareparts service is exemplary, with24-hour delivery within the Bangkokmetropolitan area.TEC Distribution CenterTEC’s Distribution center is a2,500 m 2 facility located in Bagna

38 P R E S S R E V I E W39“The trend is your friend.For us, the notable trends areAsia and outsourcing.”Dr. Joerg W. Wolle in The Edge Malaysia,November 29, 2004Diethelm Technology’sdelivery trucks and vansenable delivery withinBangkok in less than4 hours.Trad, a historic location just outsi -de Bangkok. Delivery trucks andvans enable delivery within Bang -kok in less than 4 hours and acrossthe entire country in less than 24hours. The warehouse holds manyof the large capital expense goodssold into the Thailand market, includingDaiwoo construction equipmentand, of course, Cumminsdiesel engines.ConclusionThe TEC Senior Manager’s meetingwas a resounding success. Strategywas refined, new Businesses forDevelopment were identified, andteamwork, synergies and, mostimportantly, sharing of experiencesacross the country operations wereachieved. As I prepared to board theairport bus, I panned once moreacross the great city of Bangkok.Seeing the Diethelm offices downthe road, I could not avoid thinkingof the parallels between DKSHand cities such as Bangkok: “proudhistories, bright futures.” Finally,at 08:30 a.m. sharp, with Swissprecision, the bus departed for theairport. Powered, of course, by aCummins diesel engine.Allan BiegajGeneral ManagerBusiness UnitTechnology, TaiwanDKSH has benefited fromextensive positive mediacoverage in internationalpublications all over theworld.JAPAN CHEMICAL WEEKAugust 19, 2004Nihon SiberHegner K.K. is tyingup with overseas firms through aseries of new agency contracts,as well as expanding its productline-up through a strategy ofmergers and acquisitions. In additionto organic growth, mergersand acquisitions are partof the strategy for Japan.“We (aim to) acquire one or twofirms with sales of ¥10-15 bn($92-138 mn),” says presidentAlfred Banz.HANDELSZEITUNGJuly 7, 2004“Ein Markteintritt in Chinabraucht eine detaillierte undgut strukturierte Vorbereitungund auf Grund der Kulturun -terschiede viel Geduld. Wer inChina das schnelle Geld erwartet,wird kaum Erfolg haben.Firmen, die sich von Chinaeine Lösung ihrer Marktproblemein Europa erhoffen, habenschlechte Karten.“WELLNESS FOOD EUROPEOctober/November, 2004Based on a recently signed exclusivedistribution agreement tointroduce arabinogalactan in -to Europe and major parts ofAsia, Larex Inc. and DKSH, aleading Marketing and ServicesGroup, offer two products madeof arabinogalactan: Fiber Aid ®and ImmunEnhancer .BILANZAugust, 2004DKSH – oder die Fantree-Gruppe,wie sie in Fernost genanntwird – ist der grösste Marke -ting- und DistributionsdienstleisterAsiens. In dieser Rollesorgt DKSH zum Beispieldafür, dass es in China Lindt-&-Sprüngli Schokolade zu kaufengibt, in Malaysia Gillette-Rasier utensilien oder in SingapurMontblanc-Füllfederhalter.PHILIPPINE DAILY INQUIRERSeptember 13, 2004Aboitiz One and Diethelm (Philippines) Inc. recently signed afive-year PHP1.5 billion distributionservice agreement. DPI,one of the leading distributors ofpharmaceuticals and consumerhealth products in the country,will use Aboitiz One’s Distributeand Save (D&S) service that operateson the just-in-time conceptwhich is necessary for goods beinghandled by DPI such as medicine,infant formula and evenM&M chocolates.TALKIES HONG KONGJune-August, 2004The company, formed two yearsago with the merger of Swisspowerhouses Diethelm, Kellerand SiberHegner, is Asia’s topdis tribution group specialisingin consumer goods, healthproducts, food and technology.MANILA BULLETINSeptember 10, 2004Diethelm Philippines Inc., a subsidiaryof Zurich-based firmDiethelm Keller SiberHegner(DKSH), expects its transactionvolume to hit PHP25 billionthis year with more than triplelast year’s PHP8 billion withthe completion of its $15-millionstate-of-the-art distributioncenter in Mamplasan, Laguna.DPI vice president for operationsLarry Williams attributed thesignificant growth to the efficiency,accuracy and speed in processingorders at its distributioncenter.THE EDGENovember 23, 2004“If you have annual sales ofRM17.5 billion and more than18,500 specialists in 35 count -ries and you decide to centraliseyour IT and information processingin one corporate sharedservice centre, it has to be guaranteedthat it’s working perfectly,”Joerg Wolle said. WithCSSC, the group will use itsglobal SAP-based enterprise resourceplanning system to ser -ve the needs of its Business Unitsthat cater to both local andmultinational business partnersacross the globe, he said.CHEMANAGERDecember, 2004DKSH hat sich zum grösstenAnbieter von Marketing undLogistikdienstleistungen inAsien entwickelt und verfügtderzeit über 265 Niederlassungenin 35 Ländern. Die Gruppeund ihre Geschäftspartnerkönnen damit auf ein regionalsowie weltumspannendes undflächendeckendes Netzwerk zurückgreifen.Im Vergleich zumVorjahr konnte der EBIT um12.3% gesteigert werden.

40 P R E S S R E V I E W 41THE STARNovember 23, 2004BERITA HARIANNovember 23, 2004CHEMANAGERDecember, 2004NANYANG SIANG PAUNovember 23, 2004NEW STRAITS TIMESNovember 23, 2004President and chief executiveofficer Dr. Joerg Wolle said thecorporate shared services centrein Kuala Lumpur would enablethe company to increase the efficiencyof its backroom activitiesand enhance its overall businessoperations.THE SUNNovember 23, 2004DKSH ist the number one servicesgroup in Asia, focusing onsourcing, marketing, logisticsand distributions. Its majorsubsidiary is Diethelm HoldingsMalaysia Bhd, which ispublicly listed on the MainBoard of Bursa Malaysia.KOSMO!November 23, 2004THE NATIONDecember 1, 2004Diethelm Trading Co Ltd., partof the DKSH Group, has announcedthat it will operate asDKSH (Thailand) Ltd. fromJanuary.Asien ist unser grösster Absatzmarkt,wobei Japan dieführende Stellung einnimmt.Der Wettbewerb ist auch in Asiensehr gross. Mit Vertretungen in11 asiatischen Märkten bietenwir unseren Lieferanten denVorteil, dass wir sie regional vertretenkönnen. Wir stellen fest,dass Lieferanten es vermehrt bevorzugen,einen Vertriebs partnerfür mehrere Länder einzusetzen.Dies bietet für beide Parteienenorme Vorteile.Joerg Wolle said, the destiny ofthe Group was interwoven withthe global engine of growthbeing Asia. “We are extremelywell-positioned since we provi -de access to these markets andoutsourcing services for bothmedium-sized enterprises andmultinationals,” he added.Wolle said DKSH had seenMalaysia grow to become astrong pillar in its marketingand distribution network, generatingannual sales of aboutRM 2.4 billion for the finan cialyear ended December 31, 2003.Malaysia ranked second in theregion after Thailand.“With the CSSC, we are confidentof expanding our businessnetwork and enhancing ourservices within the Asia Pacificregion in the foreseeable fu -ture,” he said.NEW STRAITS TIMESNovember 25, 2004DKSH Holding has pickedMalaysia as the base for its globalshared service centre. Accordingto DKSH’s chief value officerGonpo Tsering, the group hasengaged support and servicesfrom its technology partnersIBM, SAP and managed networkprovider Infonet for streamliningsupply chains as well as enhanceproductivity and securityfeatures.BANGKOK POSTDecember 1, 2004Cash-and-carry store operatorSiam Makro Plc has acquiredSiam Food Services Co, a leadingprovider of premium foodproducts to restaurants andhotels, from Swiss-ownedDKSH Group. DKSH plansto immediately reinvest thefunds from this sales into plannedoperations and projectsof its five Business Units inThai land, according to WalterBrenneis.THE EDGENovember 29, 2004„The saying is that the trend isyour friend. For us, the notabletrends are Asia and outsourcing.We have stayed in Asia, crisis ornot, and the landscape for us hasnot changed. And the big corporatesare managing their outsourcingrequirements in a clearerway now. As a result, we increasedour manpower, raised marginsand boosted our sales and profitson a global scale,” says Dr. JoergWolle. It has been two yearssince DKSH‘s Malaysian arm,Diet helm Holdings (M) Bhd,acqui red the marketing servicesbusinesses of EAC Holdings(Malaysia) Sdn Bhd.APARTMENT LIVING MAGAZINENovember, 2004Heading up SiberHegner Thailandis managing director,Gra ciela Haube, assisted bya “dream team” of three highlyintelligent, young and ambitiousproduct managers, all Thaiwomen. To gether, they forma striking group in a maledominatedindustry.THE STARNovember 26, 2004Science, Technology and InnovationMinister Datuk SeriDr. Jamaluddin Jarjis toldofficials of DKSH Holding, aSwiss-based international mar -ket intelligence company, thatMalaysia was as much its part -ner as the companies it did businesswith, such as hardwaresupplier IBM and software providersSAP and Infonet.

42 D K S H O N S T A G E43DKSH Launches Corporate Shared Services Centerin Kuala LumpurDKSH’s entire Board of Directorswas present at the event and wasinformed on CSSC’s activitiesfirst hand (right).YB Dato’ Sri Dr. Jamaluddin Jarjistogether with DKSH Chairman,Adrian T. Keller and DKSH President& CEO, Dr. Joerg W. Wolle.Ribbon-cutting ceremony withMalaysia’s Minister of Science,Technology and Innovation,YB Dato’ Sri Dr. Jamaluddin Jarjis.It was a day to rememberfor all the staff of the DKSHCorporate Shared ServicesCenter (CSSC) in Malaysia.The CSSC staff in TechnologyPark Malaysia (TPM), partof the country’s MultimediaSuper Corridor, were host toa much-anticipated event –the launch of the CSSC asthe global hub for selectedIT-based services in DKSHcompanies and officesworldwide.The importance of the event wasmarked by the presence of the entireBoard of Directors and ExecutiveBoard of DKSH Holding Ltd. ofSwitzerland, as well as the entireSteering Committee of the SAP implementationproject (Pegasus), keyprincipals and partners, who wererepresented by their top managements.Among the latter were theGeneral Manager of IBM Asia-Pacific, Frank Kern, President &CEO of SAP Asia-Pacific, Hans-Peter Klaey and Infonet’s ExecutiveVice-President of Communications,John Hoffman.The guest-of-honor was no lessthan Malaysia’s own Minister ofScience, Technology and Innovation,YB Dato’ Sri Dr. Jamaluddin Jarjis,who was present to officiate thelaunch.Role of CSSCThe CSSC was formed in 2003 tooptimize business processes acrossthe Group as well as to standardizeand centralize DKSH’s IT land -scape. With the CSSC, there will begreater levels of consistency, efficiency,quality and responsiveness.Thus, reinforcing DKSH’s positionas the number one in Marketing,Sales, Distribution and Logistics.In his address to the 300-plusguests present at the auspiciouslaunch, Chairman of DKSH Hol d-ing Ltd., Adrian Keller, said thatwith the CSSC, DKSH is now ableto centralize the Group’s EnterpriseResource Planning (ERP), based onSAP, for the entire global operation.He added: “All crucial communicationsand information systemsfrom Europe, Asia and America cannow operate out of Malaysia. TheCSSC will ultimately be able tocater to an immense number oftrans actions including over 500,000invoices per month and servicemore than 5,000 users worldwide.”“Additionally, the Group is alsorunning email and collaborativesystems based on IBM’s Lotus Notesout of the CSSC. The current 4,000user-base is expected to increase to6,000 across 35 countries next year.”Malaysia – choice destinationMany global investors have beenattracted to Malaysia in recent yearsfollowing the country’s initiatives inkey areas such as technology and infrastructure.The presence of morethan 1,000 multinational, foreignownedand home-grown companiesin the Multimedia Super Corridor isa testament to its success in steeringthe nation towards a knowledgebasedeconomy.DKSH President and CEO, Dr.Joerg Wolle, testified to the Group’scommitment to Malaysia in hisspeech, saying “Our long establishedroots in Malaysia, spanning morethan a century, coupled with exemplarypolitical stability, availabilityof highly-skilled multilingual ITtalent, superb infrastructure and attractivetax incentives make Malaysiathe ideal location for the CSSC.”“With the launch of the CSSC,not only will DKSH be able to enhanceits operations to take theGroup to even greater heights ofsuccess in the region, but it alsoreinforces our partnership withMalaysia. A partnership that hasproven to be highly beneficial overthe years,” he added.The CSSC also has the attentionof Prime Minister Datuk SeriAbdullah Ahmad Badawi, whoDKSH Deputy Chairman ChristopheR. Gautier receives the IBM Award fromthe General Manager of IBM Asia-Pacific,Frank Kern (above). Press conferencewith local journalists (below).was unfor tunately unable to attendthe launch due to his presence at theAPEC summit in Chile, but sent hisspecial greetings. Expressing thePrime Minister’s delight in DKSHchoosing Malaysia to be its IT hub,Dr. Jamaluddin said that the CSSCis not just a partnership of four betweenDKSH, IBM, Infonet and SAP,but instead has a fifth partner in theMalaysian government and its people,who would ensure its success.Finally, in appreciation of DKSH, heinvi ted the audience to applaud theBoard of Directors and ExecutiveBoard in making the decision tolocate the CSSC in Malaysia.Technology partnersAlso present at the CSSC launchwas DKSH Senior Execu tive VicePresident, Operations & Bu si nessSupport, Gonpo Tsering, who commentedon the vital roles played bybusiness partners directly involved inthe CSSC.Talking to the media, he said:“The IT systems and applicationsprovided by IBM, SAP and InfonetServices Corporation have enab -led the CSSC to streamline supplychains, utilize cost-effective methods,and enhance productivity aswell as security features.”Although not even a year oldyet, CSSC has already proven itselfto be a model shared services center.CSSC has already won the follow -ing awards: Outstanding Award asa Reference Site for a Global SharedServices Center powered by SAP,Outstanding Award as an IBM OnDemand Unix Infrastructure ReferenceSite and Infonet InnovationAward in Communication andNetworking.Huge media attentionNumerous journalists from variousnewspapers, TV and radio stationsattended the event and reportedon the launch of the DKSHCorporate Shared Services Center.DKSH received huge media coveragein the Malaysian press and theCSSC launch was one of the topstories in the evening news.Irene ChenBPR ConsultantDKSH CSSC Sdn Bhd,Malaysia

44 D K S H O N S T A G E 45Consumer Goods’ strategic moveforward into specialty luxury retailHow to create a culture of trustand integrity in your companyDKSH’s ExecutiveBoard with BOND,the 4-girl funkyclassical instrumentalistswhoentertained theaudience.DKSH is by far the unchallengedNo. 1 Consumer Goodsdistributor and supplier in Asia.With our Marketing and Distribution activities, we coverall areas of Consumer Goods –from Luxury Goods to FastMoving Consumer Goods.Impressions from theEurope Asian YoungLeaders Forum in Beijing.Dr. Joerg Wolle in discussion withDr. Kai M. Schellhorn, Board of theBMW Foundation Herbert Quandtand Professor Miriam Meckel,State Secretary, State ChancelleryNorth Rhine-Westphalia.Festive dinner – with Stefan Krause,Member of the Board of BMW.With more than 10,000 specialists,the Business Unit Consumer Goodsserves more than 300,000 retailoutlets in Asia on a daily basis.As Singapore’s largest consumergoods distributor and supplier ofhousehold name products, DKSHis mainly known for its Fast Mov -ing Consumer Goods business operatingunder the names of Diethelmand Harpers.DKSH has entered into a strategicextension of its business into specialtyretailing. In the course of thisforward expansion, DKSH is nowbringing its proven business formulasand expertise in the LuxuryGoods sector to Singapore also. OnOctober 12, the long-awaitedROGER DUBUIS boutique openedRed carpet treatment for ourVIP guests at the Roger Dubuisboutique opening.with a lavish cocktail reception anddinner for about 270 VIP guests andcustomers. We thereby transferreda proven strategy from countriessuch as Japan, Hong Kong andThai land to Singapore as one of ourkey markets.Roger Dubuis is among DKSH’smost important brands in the LuxuryGoods business.Martina LudescherDKSH Management Ltd.At this year’s prestigiousEurope Asian Young LeadersForum in Beijing, sponsoredby the BMW FoundationHerbert Quandt, Dr. JoergWolle gave a speech on“The Concept of OrganizationalIntegrity”.The Europe Asian Young LeadersForum brings together annually adiverse group of approximately50 younger Europeans and Asianswith outstanding leadership quali -ties in business, politics, academiaand the media. “The secrets ofbeing successful in such diverseand challenging environments werealways the same. In addition to the“hard facts”, offering excellent andcompetitive products or services, itwas the “soft factors” – or a few universalvalues, if you like – of respect,keen and genuine interest to learnabout cultural differences in orderto bridge them, the ability to lis tenrather than lecture in order to understandwhat the customer reallywanted”, Joerg Wolle said.Martina LudescherDKSH Management Ltd.

46 D K S H O N S T A G E 47The market entry China –between euphoria anddesperationSummer sporting eventsin SwitzerlandThe Monkey team (from left to right):Reto Stillhard, DKSH (Mountain bike);Barbara Turnherr (Inline skating);Thomas Koller (Team leader, Racing bike);Petra Angehrn (Swimming);Markus Keller, Diethelm Keller Holding (Running);Moni Künzler (Team physiotherapist).Dr. Joerg Wolle was one of the guestspeakers at the UBS CFO Conferenceon November 5, 2004.Together with the Chief FinancialOfficers of the Top 100 SwissCompanies, he elaborated on successfulstrategies for market entryinto China and participated in apanel discussion on investment andmarket strategies for China.See the world through our glassesThe Optical Department,responsible for the fashioneyewear and frames underthe Consumer GoodsDi vi sion, recently held a tradeseminar at the Four WingsHotel, taking as its theme“DKSH Exclusive Party”.The event was held to present thenew MIDO collection to importantkey accounts, mainly top brandoptical chains in Thailand. TheOptical Department is the soledistributor of well-known brandsthat include Ray Ban, Killer Loop,Arnette, Prada, Chanel, Miu Miu,Emanuel Ungaro and the recentlyacquired Byblos.Other than introducing new collections,we also seized the opportunityto present success storiesachieved in the year 2004. This wasto generate confidence among ourclients of the professionalism andmarket knowledge of DKSH andto further exemplify that DKSH isthe right business partner. Also toassure our clients that DKSH isserious in building further on ourrecent successes, we presented the2005 marketing strategy. The eventwas the first of its kind in the Thaieyewear industry and was wi delyaccepted by our valued clients.Marcel Rohner,Chairman and CEOUBS Wealth Management& BusinessBanking togetherwith Dr. Joerg Wolle.The Thai ConsumerGoods OpticalDepartment at therecently held tradeseminar in Bangkok.Urs Schöttli, correspondentof the “Neue ZürcherZeitung” in China chairedthe panel discussion.Jiranuch YoosamranProduct ManagerOptical Department 1Consumer ProductsDivisionDiethelm & Co. Ltd.,ThailandGigathlon – July 2004The unique relay race concept integratesfive popular sports: swimming,racing bike, long-distancerunning, inline skating and mountainbike.This sporting weekend comprising“powerful” Saturday and “fantastic”Sunday covers 416 kilometersand 8,000 meters variance in altitude.Seen as the ultimate challengefor any sportsperson, the race requiredthorough preparation andhard work for each of the “Monkey”team members. Spurred on by thestunning landscape of lakes, mountainsand valleys, plus an infectiousteam spirit, the team completed therace in an admirable 27½ hours.International Greifenseelauf –September 2004Held for the 25 th time, this halfmarathonsaw 14,070 participantsfrom all over the world giving oftheir best. Staff members of theDiethelm Keller Group were alsopresent. Juerg Keller, a Wetrok(DKMI) employee finished in 90 thplace – an excellent achievement.Rune Foldnes, Markus Keller,and Andy Kessler (employees ofDKSH, Diethelm Keller Holdingand Wetrok, DKMI respectively)also participated in the race.Markus KellerDiethelm Keller Management Ltd.The jogging team: AndyKessler, Markus Keller,Rune Foldnes, Juerg Keller.Students’ visit to DKSH MalaysiaOn Monday, October 4, 2004Diethelm Logistics Services welcomed33 students and Prof. Dr.Li Choy Chong from the AsiaResearch Center, University of St.Gallen and the Singapore ManagementUniversity at the distribu -tion center in Klang. The studentsvisited Malaysia as part of their“Asia Term”, a highly integrated14-week study program conductedat the Singapore ManagementUniversity in Singapore. This programenables students to under -stand the contexts of economicsand management in Asia and tolearn how to operate in the specificAsian environment.The very bright and inquisitivegroup of young people put numerousquestions to Henrik Pedersen,Chief Operating Officer ConsumerGoods Division, who welcomedthem and gave them a brief overviewof the DKSH Group inMalaysia. Also facing a barrageof questions were our warehousespecialists Bo Grabowski, MarkDobson and Arulnasalam Kanapathie,who guided the visitorsthrough the warehouse. After thetour, the group also enjoyed a locallunch at the canteen.Bettina SchoberBusiness InformationCoordinatorDiethelm Holdings(Malaysia) Berhad