Document RE1jGxQY33dpNVmmry9Gmqek

SALES & MARKETING - 1979 & 1980 BEING LAST ON THE PROGRAM HAS BOTH THE ADVANTAGES AND DISADVANTAGES. THE ADVANTAGE IS THAT MOST OF YOU ARE SOMEWHAT "PSYCHED UP" BY OUR PREVIOUS SPEAKERS AND THE DISADVANTAGE IS THAT THERE IS ALWAYS A RELUCTANCE TO ASK THE LAST GUY ON THE PROGRAM QUESTIONS. FOR THOSE OF YOU THAT DON'T GET A CHANCE TO POSE QUESTIC FORCE, I WOULD HATE TO SEE YOU MISS THIS OPPORTUNITY. BEFORE I DO START, I DO WANT TO MAKE IT CLEAR THAT I HAVE NO OBJECTIONS TO BEING INTERRUPTED DURING THE TALK TO ANSWER THOSE QUESTIONS THAT MAY ARISE AT THAT PAR TICULAR TIME. YOU DO NOT HAVE TO WAIT UNTIL THE END OF THE TALK. I AM PARTICULARLY PLEASED TO BE WITH YOU TODAY AS THERE ARE ALOT OF EXCITING THINGS HAPPENING IN THE SALES DEPARTMENT AND CONSEQUENTLY WITHIN ROCKBESTOS. THE MONTH OF AUGUST WAS OUR LARGEST INCOMING ORDER MONTH IN THE HISTORY OF THE COMPANY. EXHIBIT #1 SHOWS THE DAY TO DAY DOLLAR INCREASE OF ORDERS DURING THAT MONTH. THE BOTTOM LINE SHOWS THE FIGURE OF $7,600,000 FOR THE MONTH. . EXHIBIT #1 MR. REED STATED TO ME THAT THE FIRST YEAR HE CAME WITH ROCKBESTOS THIS WAS THE YEARLY TOTAL SALES. EVEN DISCOUNTING A BIT FOR INFLATION OVER THE YEARS, IT CERTAINLY SHOWS WE ARE A GROWTH COMPANY. ONE FACTOR THAT WE SHOULD ALL REMEMBER IS THAT OUR BUSINESS IS CONSTANTLY CHANGING AND OUR SUCCESS IN THE PAST AND THE FUTURE WILL LARGELY BE DEPENDENT UPON OUR ABILITY TO ADAPT TO THESE CHANGES. THERE ARE TIMES WHEN THESE CHANGES HAVE COME RAPIDLY, THERE ARE OCCASIONS WHEN THEY HAPPEN VERY SLOWLY. IT IS IMPORTANT THAT WE LEARN HOW TO REACT TO THESE CHANGES AND TO MAXIMIZE OUR CAPABILITIES. I THINK RBB01136 SC-ELEC-04920 SALES & MARKETING - 1979 &1980 page 2 THIS WAS PART OF OUR PROBLEM IN 1978 AND PLAGUED US THROUGH A LARGE PART OF 1979. FORTUNATELY, OUR MOST RECENT RESULTS ARE DEMONSTRATING NEW CAPABILITIES BY OUR ENTIRE WORK FORCE. A FEW DAYS AGO WE COMPLETED OUR MOST RECENT FORECAST FOR 1979 AND 1980, AND I WOULD LIKE TO TAKE A FEW MINUTES TO SHARE THIS WITH YOU AND EXPLAIN WHAT IT IS ALL ABOUT. WHEN WE DO OUR FORECASTING WE NORMALLY BREAK IT DOWN INTO TWO MAJOR CATEGORIES. WE FIRST DO IT BY OUR CUSTOMERS OR THE END-USE FOR OUR PRODUCTS. WE EXAMINE THE NEW CONSTRUCTION PROSPECTS IN THE VARIOUS INDUSTRIES WE SERVE AS WELL AS THE DEMANDS BY OUR O.E.M. CUSTOMERS SUCH AS JOY MANUFACTURING, WESTINGHOUSE AND SO FORTH. WE EXAMINE VARIOUS ECONOMIC FACTORS, QUERY THE FIELD SALES FORCE, AND REFER TO ALL THE PUBLISHED DATA WE CAN GET OUR HANDS ON TO ARRIVE AT CERTAIN CONCLUSIONS. THIS SECOND SLIDE YOU WILL SEE REPRESENTS THE CURRENT THINKING FOR THIS nslide A FEW OF THE SIGNIFICANT POINTS I WOULD LIKE TO MAKE ON THIS CHART ARE AS FOLLOWS: 1. YOU WILL NOTE WE HAVE INDICATED A SUBSTANTIAL INCREASE IN THE METAL WORKING INDUSTRY WHICH IS IRON AND STEEL PRIMARILY BUT ALSO INCLUDES ALUMINUM. WE FEEL THE STEEL COMPANIES ARE ACHIEVING A SOMEWHAT BETTER RETURN ON INVESTMENT AND IT IS ESSENTIAL THAT THEY BEGIN A SPENDING PROGRAM TO MODERNIZE MANY OF THEIR FACILITIES. THEY HAVE BEEN IN A VERY NON-SPENDING MODE FOR A COUPLE OF YEARS, AND WE FEEL THIS IS READY TO CHANGE FOR THE BETTER. 2. YOU CAN NOTE THE BIG JUMP IN OUR UTILITY BUSINESS IN 1979 COMPARED TO 1978 AND ALSO WHAT WE HAD FORECASTED FOR 1979. AS OF THIS MOMENT IT IS RUNNING PRETTY CLOSE TO 50% OF OUR TOTAL VOLUME AND WE ANTICIPATE A SLIGHTLY DIFFERENT MIX NEXT YEAR AS IT DROPS APPROXIMATELY $1,000,000. WE CAN TALK A LITTLE MORE ABOUT THIS' LATER. RBB 01137 SALES & MARKETING - 1979 & 1980 page 3 3. THE PETRO CHEMICAL INDUSTRY WE FEEL, IS ABOUT TO BREAK LOOSE 1980. WE ARE QUITE OPTIMISTIC ABOUT SOME OF OUR RECENT SUCCESS, AND WITH A FEW DECENT ENERGY DECISIONS FROM THE FEDERAL GOVERNMENT, WE WOULD FULLY ANTICIPATE THIS MARKET TO EXPAND CONSIDERABLY (T iC. iS*. , 4. IN THE CATEGORY OF ALL OTHER NEW CONSTRUCTION, ONE OF THE MAJOR CONTRIBUTORS TO THIS INCREASE HAS BEEN THE PAPER INDUSTRY. WE HAVE PENETRATED THAT MARKET WITH BOTH FEET THIS YEAR AND I WILL SPEAK A .LITTLE BIT MORE ABOUT THAT LATER. THESE REPRESENT THE MAJOR CHANGES IN 1979 AND 1980. - NOW LET'S GO BACK A MOMENT AND EXAMINE SOME OF THESE AREAS IN A LITTLE BIT MORE DEPTH. THIS NEXT fcSHE SHOWS YOU SOME OF THE EFFORT EXTENDED RELATIVE TO REVIEWING OUR UTILITY BUSINESS. EXHIBIT #3 / -77* THIS IS PERHAPS ONE OF THE MORE EASIER MARKETS TO FORECAST BECAUSE OF THE LONG LEAD. TIMES THAT ARE INVOLVED AND NORMALLY THE CUSTOMERS HAVE PLACED THEIR ORDERS FAR IN ADVANCE. THE DOLLARS YOU SEE HERE ARE FROM COMMITMENTS WE ARE QUITE CERTAIN ABOUT Cm.rr^/yT" AND WE WOULD ANTICIPATE A LARGE NUMBER OF ADD ONS TO THE- OTHER CONTRACTS BEING SHIPPED THIS YEAR. DURING THE BALANCE OF THIS YEAR AND NEXT YEAR, WE FEEL THE PROBLEM WILL BE MORE RELATED TO HOW MUCH WE CAN PRODUCE RATHER THAN HOW MANY ORDERS THAT WE HAVE INHOUSE. SOME OF YOU MAY BE INTERESTED IN OUR INTERPRETATION OF THE NUCLEAR MARKET AND WHAT AFFECT THAT HAS HAD UPON US FOR THE FUTURE. NEEDLESS TO SAY, THE ACCIDENT AT 3-MILE ISLAND HAS NOT DONE THE NUCLEAR CONSTRUCTION PROGRAM ALOT OF GOOD. IT HAS STRETCHED RBB01138 SAIES & MARKETING - 1979 &1980 page 4 OUT THE START UP DATES FOR MANY UNITS EVEN FURTHER AND PRECLUD8"THE STARTING OF ADDITIONAL UNITS. MORE AND MORE THE UTILITIES ARE BECOMING INCREASINGLY WARY OF LAUNCHING NUCLEAR PROJECTS BECAUSE OF THE EXTENSIVE DELAYS AND THE VAST AMOUNT OF MONEY THAT IS TIED UP IN INVESTMENTS WHEN YOU BUILD ONE OF THESE PLANTS. HOWEVER, IN THE LONG RUN, THERE IS NO OTHER OPTIONS IN MY OPINION,TO THINK OF ADDITIONAL OIL OR GAS FIRED PLANTS IS RIDICULOUS. THE BURNING OF COAL FOR OUR INCREASED GENERATION NEEDS HAS SOME VALIDITY BUT THE STATE OF THE ART FOR ELIMINATING POLLU TION IS FAR IN THE FUTURE. THE EFFECT OF SOLAR ENERGY AND WINDMILLS IS MINISCULE. I FOR ONE FIND IT DIFFICULT TO AGREE TO A NO GROWTH POLICY. THERE IS MUCH WE CAN DO FOR THE STANDARD OF LIVING IN THIS COUNTRY AND THE BEST ALTERNATIVE STILL REMAINS NUCLEAR ENERGY. WE COULD PROBABLY SPEND THE REST OF THE AFTERNOON DISCUSSING THAT SUBJECT, BUT LET'S GO ONTO SOME OF OUR OTHER AREAS OF INTEREST. ONE OF OUR NEWEST VENTURES WITH WHICH MANY OF YQJ ARE FAMILIAR IS OUR ENTRY INTO THE. RAILROAD MARKET. THIS HAS BEEN A BUSINESS WHICH HAS BEEN LARGELY DOMINATED BY TWO OF OUR MAJOR COMPETITORS NAMELY THE OKONITE COMPANY, MY FORMER ALMA MATER, AND THE WlOo KERITE COMPANY LOCATED NOT TOO FAR FROM IT. OKONITE HAS SALES WELL OVER .#,000,000 . WITH SEVEN PLANTS SPREAD AROUND THE COUNTRY AND KERITE IS ESSENTIALLY ABOUT THE SAME SIZE AS OURSELVES. I THINK IT IS SAFE TO SAY THAT KERITE HAS BEEN THE QUALITY LEADER AND OKONITE HAS BEEN THE PRICE LEADER IN THIS BUSINESS. FOR MANY YEARS WE EXAMINED THIS MARKET CLOSELY BUT WERE RELUCTANT TO DEVOTE THE SALES, MANHOURS, AND TECHNICAL BACKUP THAT WOULD BE REQUIRED TO PENETRATE THE MARKET. SELLING INTO THIS INDUSTRY REQUIRED BEING A MEMBER OF THE PATERNITY IN ORDER TO GET PRODUCT ACCEPTANCE, AND THE MEMBERSHIP DUES TO GET INTO THIS FATERNITY WERE FANTASTIC. FORTUNATELY FOR ROCKBESTOS WE WERE ABLE TO EMPLOY THE SERVICES OF BILL EDWARDS AS OUR AGENT TO REPRESENT RBB 01139 > SA1.ES & MARKETING - 1979 & 1980 page 5 US IN SALES INTO THIS INDUSTRY AND OUR SUCCESS CAN BE CONSIDERED EXCEPTIONAL. FROM A POSITION OF NO SALE A LITTLE OVER A YEAR AGO, WE NOW HAVE GAINED ACCEPTANCE OF OUR PRODUCT AND MAJOR ORDERS ARE BEING RECEIVED FROM MANY OF THE FIRST CLASS RAIL ROADS THROUGHOUT THE COUNTRY. THESE INCLUDE ORDERS FROM THE CHESSIE SYSTEM, MISSOURI PACIFIC, BURLINGTON RAILROAD, ILLINOIS CENTRAL GULF AND OTHERS. MOST RECENTLY WE RECEIVED A SUBSTANTIAL BLANKET ORDER FROM ILLINOIS CENTRAL GULF FOR 1980. AS THE NEW KID ON THE BLOCK IN THIS BUSINESS, OUR PERFORMANCE AND OUR QUALITY ARE CONSTANTLY BEING EXAMINED. IT IS OUR OPINION THAT THIS BUSINESS WILL BECOME INCREAS INGLY IMPORTANT TO US AS THE YEARS GO BY AND IN PARTICULAR IN 1981 AND BEYOND AS WE SEE AN ERODING OF THE VOLUME OF UTILITY BUSINESS AVAILABLE TO US. ANOTHER NEW AND EXCITING EFFORT MADE IN THE SALES DEPARTMENT INVOLVES MAJOR PENETRA TION OF CERTAIN SPECIFIC INDUSTRIAL MARKETS. A COUPLE OF YEARS AGO WE SINGLED OUT THE PULP AND PAPER INDUSTRY AS A TARGET AND WENT TO WORK DEVELOPING OUR MARKETING PLAN AND SALES CONCENTRATION EFFORTS. DUE TO THE SUPER EFFORT OF TWO SALESMEN AND SUBSTANTIAL SUPPORT BY VARIOUS INDIVIDUALS IN NEW HAVEN, WE FIRST BROKE INTO THE . WESTVACO ACCOUNT IN LUKE, MARYLAND, WHICH IS HEADQUARTERED IN NEW YORK CITY, AND TO DATE WE HAVE SHIPPED CLOSE TO $2,000,000 TO THIS ACCOUNT. THE MAJOR CONSTRUCTION-----USED BY WESTVACO HAS BEEN SILICONE RUBBER INSULATED CABLE, GLASS BRAIDS, GARDEX SHEATH AND HYPALON JACKETS. OUR NEXT SUCCESS WAS WITH CONSOLIDATED PAPER COMPANY in Wisconsin'with orders'being placed through our distributor, midwest electroline. THIS TURNED INTO ANOTHER MILLION DOLLAR A YEAR PLUS ACCOUNT. FOLLOWING CLOSE ON THE HEALS OF CONSOLIDATED PAPER HAS BEEN OUR LATEST SUCCESS WHICH IS CURRENTLY BEING PRODUCED IN THE FACTORY FOR THE BOISE CASCADE PLANT UP IN RUMFORD, MAINE. WE FULLY EXPECT THIS ORDER TO GO CLOSE TO $2,000,000 BEFORE IT IS COMPLETE. OBTAINING THE ORDER ONCE AGAIN REQUIRED A MAJOR EFFORT BY BILL PATTERSON, OUR BOSTON RBB 01140 SALES & MARKETING - 1979 & 1980 page 6 DISTRICT MANAGER, JOHN MERAS, ALEX DEAN, TONY RAUSCH, GENE D'AQUANNO AND MANY OTHERS. WE WERE ABLE TO GO FROM A POSITION OF NOT BEING ON THE APPROVED BIDDERS LIST TO WINDING UP RECEIVING THE ENTIRE ORDER. IT WAS PERHAPS ONE OF THE BEST ' EXAMPLES OF BACK DOOR SELLING THAT I HAVE EVER EXPERIENCED IN MY YEARS OF SELLING. MANY OF YOU HAVE READ ABOUT THIS IN OUR COMPANY PAPER. THE MOST SIGNIFICANT PART OF THIS SALES INVOLVES THE RECOGNITION WE HAVE RECEIVED IN THE INDUSTRY IN THAT WE ARE NOW THE FRONT RUNNER AS A SUPPLIER OF WIRE AND CABLE. OUR BIGGEST COMPETITOR IN THIS INDUSTRY HAS BEENTHE GENERAL ELECTRIC COMPANY AND THEY ARE STILL TRYING TO FIGURE OUT WHAT HAPPENED TO THEM. ANOTHER MAJOR COMPETITOR, ROME CABLE COMPANY, WAS ALSO STUNNED BY THE LOSS OF THIS ORDER AS THEIR PRICES WERE APPROXIMATELY I5 UNDER THOSE OF ROCKBESTOS. ......... THAT 15% DIFFERENTIAL IN PRICE WAS ONULA SMALk-PORTION OF WHAT WE SAVED THE CUSTOMER. ~' AFTER WE HAVE DONE ALL THE EVALUATING, DISCUSSED EARLIER, WE THEN DEVELOPED A MARKET FORECAST WHICH IS CONVERTED INTO MAJOR PRODUCT SALES. ' ....................................... THIS FORECAST. CHART 4 EXHIBITS CHART H I THINK WE SHOULD POINT OUT AT THIS TIME THAT ALOT OF THE GROWTH IN 1980 OVER 1979 IS GOING TO BE DUE TO'INFLATION RATHER THAN A LARGE INCREASE IN OUR SALES AND MAN UFACTURING CAPABILITY. IN MANY AREAS WE ARE RUNNING COMPLETELY AT CAPACITY AND IT IS GOING TO BE DIFFICULT TO GET MUCH MORE PRODUCT OUT THE BACK DOOR UNLESS WE BECOME A HECK OF A LOT MORE EFFICIENT THAlVwE ARE NOW. RBB 01141 SALES & MARKETING - 1979 & 1980 page 7 AS YOU WILL NOTE AGAIN WE HAVE A 1980 FORECAST OF 557,000,000 AND A 1979 FORECAST OF $51,800,000., BOTH OF WHICH WILL BE NEW RECORDS FOR THE COMPANY. DURING THE YEAR WE HAVE HAD A FEW MAJOR CHANGES OCCURRING IN THE SALES AND MARKETING AREA THAT HAVE CONTRIBUTED TO OUR SUCCESS. ONE OF THESE WAS THE MAKING OF ALEX DEAN. OUR MANAGER - INDUSTRIAL SALES WHO WAS FORMERLY OUR SOUTHERN REGIONAL MANAGER. ALEX HAS HAD THE JOB OF DEVELOPING MARKETS FOR US FOR OUR PRODUCTS IN SPECIFIC INDUSTRIAL AREAS. THESE HAVE INCLUDED THE PULP AND PAPER INDUSTRY, PETROCHEMICAL INDUSTRIES, SNET AND SO FORTH. HIS EFFORTS HAVE BEEN EXTREMELY SUCCESSFUL AND I AM JUST RETURNING FROM A BREAKFAST WE GAVE TO SOME 150 OF THE MAJOR PETROCHEMICAL BUYERS THROUGHOUT THE COUNTRY. THEY HAVE BEEN EXCITED ABOUT OUR PRODUCTS AND WITH THE EXPANSION MODE THAT THEY ARE IN, WE ARE ANTICIPATING GREAT THINGS DURING THE COMING YEARS. ., no ttfe-W THE IDEAS KEEP POURING OUT OF ALEX AND IT IS GOING TO BE A CHALLENGE TO ALL OF US TO JUST KEEP UP WITH HIS MARKET PENTRATIONS. ANOTHER PRODUCT LINE THAT IS REVEIVING A CONSIDERABLE AMOUNT OF ATTENTION IS OUR ^ HIGH PERFORMANCE COAXIAL CABLE. BOTH PRODUCTION AND SALES OF THIS PRODUCT HAVE BEEN INCREASING STEADILY AND WE HAVE RECEIVED WIDE ACCEPTANCE OF THE PRODUCT WITHIN THE MARKET PLACE. DICK PROUT HAS BEEN TRAVELING FROM COAST TO COAST INTRODUCING THE PRODUCT ALL YEAR AND DOING IT VERY SUCCESSFULLY. OUR HOPE IS NOW THAT WE CAN FIND A MARKET OTHER THAN THE NUCLEAR AREA TO SUSTAIN THE LONG RANGE GROWTH DURING PERIODS OF DOWN BUSINESS IN THE NUCLEAR AREA. RBB01142 SALES & MARKETING - 1979 & 1980 page 8 THE PRODUCT HAS BEEN LARGELY DEVOTED TO SECURITY SYSTEMS AND FOR NUCLEAR MONITORING INSIDE THE CONTAINMENT VESSELS BLU WE DO HAVE IDEAS FOR BIGGER AND BETTER THINGS ON THE HORIZON. '' OUR FIREZONE CRC PRODUCT LINE IS ALSO COMING ALONG AND THAT IS A RESPONSIBILITY OF BOTH KEN STARKEY AND DICK PROUT. AT TIMES I GET NERVOUS OVER THE ENTHUSIASM SHOWN BY SOME OF OUR SALESMEN AND MARKETING MANAGERS, PARTICULARLY WHEN I READ ABOUT FIRES ERUPTING IN VARIOUS PARTS OF THE COUNTRY. HOW FAR THEY ARE WILLING TO GO TO DEMONSTRATE THE RELIABILITY OF OUR PRODUCT SOMETIMES WORRIES ME. JOHN NOWAK HAS BEEN PARTICULARLY SUCCESSFUL WITH THE PRODUCT IN THE NEW ORLEANS AREA AND AS IT RELATES TO THESE OFFSHORE DRILLING RIGS. EXXON HAD PURCHASED LARGE AMOUNTS OF THE CABLE AND WILL CONTINUE TO DO SO PROVIDED WE CAN GET IT OUT THE BACK DOOR. ALSO DURING THIS YEAR WE HAVE SOLD LARGE AMOUNTS OF CABLE TO THE WHITE HOUSE FOR REWIRING BECUASE OF ITS LOW TOXICITY AND LOW-SMOKE PROPERTIES, THESE ARE OUR SILICONE RUBBER CABLES. THIS WAS ALSO TRUE OF SOME COMMUNICATION CABLE THAT WE HAVE BEEN SELLING TO THE BART RAPID TRANSIT SYSTEM IN SAN FRANCISCO. ` THERE ARE MANY, MANY POSITIVE THINGS HAPPENING IN THE SALES DEPARTMENT THAT GIVE ALL OF US A REASON TO BE ENTHUSIASTIC AND WE WANT EACH OF YOU TO FEEL THAT ENTHUSIASM. HOWEVER, IT IS NOT ALL PEACHES AND CREAM AS IT RELATES TO OUR FUTURE AND OUR TOTAL PERFORMANCE. APPROXIMATELY 30 S0PtE=55&-PERCENT OR OVER $4,000,000. OF OUR ORDERS THAT ARE IN HOUSE ARE PAST DUE. THIS IS NOT A TOLERABLE SITUATION AND ONE WHICH IS GOING TO SEVERLY HURT US IN THE FUTURE. THE QUICKER WE GET THESE PLANTS ON TIME WITH THEIR DELIVERIES AND REDUCE THE LATE ORDER SITUATION TO ONE TI1AT~K~MANAGEADLE, THE BETTER OFF WE WILL ALL BE RBB01143 SALES & MARKETING - 1979 & 1980 page 9 ONE OF MY OTHER PET PEEVES RELATES TO THE TIME IT TAXES US TO ACKNOWLEDGE ORDERS. OUR AVERAGE TIME TO ACKNOWLEDGE A SHIPPING PRIMISE TO OUR CUSTOMERS IS STILL MUCH TOO LONG. I BELIEVE THE LATEST ESTIMATE IS SOMETHING LIKE 26 DAYS. WHEN THE MARKET CHANGES TO A BUYERS MARKET, WE ARE NOT GOING TO HAVE THE LUXURY TO DELAY i AND PROCRASTINATE OVER THESE ORDERS, OUR SYSTEMS WIB=HAYE-#fr BE STREAMLINED IN ORDER TO EFFICIENTLY REACT TO THE MARKET tONDITIONS LX IS 11NG. THIS NEXT SLIDE SHOWS YOU WHERE THE VOLUME OF THIS BUSINESS IS CURRENTLY LOCATED THAT HAS COME THROUGH THE DOOR BUT HAS YET TO BE ACKNOWLEDGED. *i r/j./t 5 SLIDE 5 , rW IT IS A CRUEL WORLD OUT THERE. YOUR- SALESMEN ffflY LEAD A GLAMOROUS LIFE IN THE EYES OF MANY OP YOU, BUT THE NIGHTS AWAY FROM HOME AND THE MANY WEEKENDS SPENT WITH CUSTOMERS THAT THEY WOULD RATHER SPEND WITH THEIR FAMILIES AND THE MANY DISAPPOINTMENTS AND LOST ORDERS HAS GOT TO BE INCLUDED IN THE GLAMOUR. IN ADDITION, THEY CANNOT DWELL UPON THESE DISAPPOINTMENTS BUT MUST SET THEM ASIDE AND RESTORE THE SMILE FOR THE NEXT DAY'S BUSINESS. WE HAVE GOT A GOOD SALES FORCE OUT THERE THAT IS WILLING TO DEVOTE THE NUMBER OF HOURS TO KEEP US ALL EATING WELL AND WE OWE AN OBLIGATION TO THEM AND OUR CUSTOMERS: THAT IS THE RESPONSIBILITY OF ALL OF US. V RBB 01144