Document YG1VN5KD1ajNJKZ98L1O94QKy

>t t KMPfl (oiicn flllOCIflTSJ mCORPORBTID COURT REPORTING SERVICE ftobertC.Co***PS OFFICES PnilaOeipftie. PA MMfotG. NJ West Palm L Bee* Race*, PL Pert UudwOait, PL Oeertieid SeaeH, PL APPtUATgD QPTtCES Miami, PL Hollywood, Ft Washington. OC Honoiuiv, Hawaii O o SHAREHOLDERS MEETING THURSDAY FEBRUARY 6th., 1993 pages; 1 thru 16, line 16 INTERVIEW WITH GLEN BXNRR pages; 16, line 19 thru 36 V?'*t ?Jte Sown ro NOT Remove Permanently PLAINTIFF'S | EXHIBIT I WV-04370 9 AM MARKET STftRET 107H FLOO* PHILADELPHIA. PA J$J0$ . {215)926-9300 (600) 5*4-9600 WV-04370 1 1 THE VOICES' On Thursday, February 2 6, Ovens-Corning management met in Hew York City, 3 with about 70 security analyst and institutional 4 investors* The meeting was held to introduce Glen 5 Hiner, his agenda, and a major step to put the 6 companies asbestos situation behind us* Because 7 employees are more serious than any other 8 individual or group, we videotaped the meeting for 9 this special report. 10 HR. ALMAN: My name is Brad 11 Alman, on behalf of Owens-Corning, I'd like to 12 welcome you to this gathering today. We are very 13 gratified and pleased by the strong turnout. I 14 believe that this is probably the largest gathering 15 that Owens-Corning has had in many years. We 16 . appreciate your interest, we appreciate your 17 support, and we hope to demonstrate by the actions 18 we outline this morning that we have warranted a 19 continuation of the support. There is one group of 20 shareholders, however, that is sot represented here 21 this morning and that group is our employees and 22 we're very proud, that Owens-Corning employees, are 23 our largest group of shareholders and for that 24 reason we are videotaping these proceedings so that 25 we can shajre our presentations with them. You have 2 1 at your places this mornings agenda, you'll here 2 from our new Chief Executive Officer, Glen Biner, 3 Senior Vice President, Paul Devario, group 4 presidents Charlie Dana, and Larry Slarey. There 5 are two important people however, that are not on 6 the agenda and I*d like to introduce them to you 7 right now* One is Jules Ventage, whose our manager 4 8 of investors relations* Jules, is in the back of 9 the room. And Bill Colevill, our general counsel* 10 Bill, would you stand please* Bow, let me turn to 11 the highlight of this morning *.s meeting* As you 12 know, on December the 30, Ovens-Corning announced 13 the appointment of a new C*B*0*, on January the 23, 14 at our Board of Directors meeting* That individual 15 was officially named our chairman. Glen Biner, 18 comes to Owens-Corning, with 35 years of experience 17 at General Electric. The last 12 of those years he IS had a GE Plasties. A iravincrs* -that grew -from 'one IS to five billion dollars during his tenure. We at 20 Owens-Corning are enthusiastic and very impressed 21 with our new C.E.O. I*m sure you will be to* Let's 22 welcome Glen Biner* 23 HR* BINER: Thank you very much, 24 and let me add my thanks and gratitude to that, 25 Brad expressed. I appreciate your interest in our 3 1 company and I appreciate very much the time that 2 you've taken to come and be with us this morning 3 and to hear our message. Before 1 join this 4 company and agree to become a C.E.O., I knew that 5 the company had a lot of strengths. X knew that 6 they were and that we are a market leader. That ve 7 had significant and strong market shares and our 8 major product lines insulation and reinforcements 9 and that we had superior customer service and 10 prodiquality. And 1 gained that knowledge because 11 X was one of the companies largest single 12 customer's in my prior capacity. X also knew 13 throughout relationship that the company was a 14 leader in technology. What it had a tradition of 15 application and process development that brought 16 new life to the application of glass and glass 17 fiber. This company is granted historically 20 to T9 30 new patents every year xn its technology. It 19 also has a strong brand franchise, unrival consumer 20 preference and insulation products. The identity 21 of the pink panther, and also a strong franchise 22 with its industrial and commercial customers. It 23 has also been a strong generator of cash through 24 all business cycles. And it has and possesses 25 capable and very dedicated employees. In addition. 4 1 to those, I also saw what 1 believe.to be 2 significant and excellent potential for growth. 3 Growth in its products through extensions of its 4 existing product lines that were focused on the 5 needs of in user markets and in user market 6 applications. An opportunity for the continuation 7 of growth and market share in new markets through a i 8 continuation of its global expansion either through 9 joint ventures or through direct participation one 10 hundred percent ownership companies. And that 11 there was the opportunity globally for additional 12 penetration through expanded coverage of its 13 existing markets. But most importantly# what I saw 14 was an opportunity for growth in revenues and 15 earnings. Well# our plans are not yet finalized. 16 We intend# to pursue the following agenda# to 17 realize our potential and resume the trajectory of 18 growth. We will accelerate our Internal, growth 19 rate by refocussing the companies research and 20 development efforts. We will focus more of the 21 research in development budget on forward product 22 development programs. Hy initial review of this 23 effort found that of the companies are indeed 24 expenditures. Only 13 percent, of those 25 expenditures were on products beyond one years 5 1 development. X have already doubled that to 25 2 percent, and look forward to a much broader 3 involvement personally in the technology of this 4 company. We will also improve the performance of 5 the current product portfolio. We will enhance the 6 productivity of the company to bring better service 7 to our customers. We will moderate the cost growth 8 of the business to rates below revenue changes in 9 down economic periods, and advoid unnecessary cost 10 escalations in periods of growth. We will 11 reinforce and accelerate those programs to 12 continuously improve cost performance as well as 13 the area of customer satisfaction. We will also 14 take new initiatives in the major markets we 15 serve. We will drive the reissulation market with 16 the continuation of marketing innovation that had 17 been a trademark of this enterprise. We will ! extend cur product line -into related businesses, IS where our technologies will give us a primitive 20 position to improve cost or performance as in our 21 window, applications, patio doors, and looking 22 forward to skylights. We will extend our reach in 23 the industrial fiber markets by developing 24 customers specific fiber coating technologies. And 25 we will use our excellent cash position to 6 1 strengthen the company* Remaining is our number 2 one priority, the retirement of debt but also using 3 cash to fund the internal growth that X have 4 outlined for you. Some of these ideas and some 5 others that we will bring forward will represent 6 change, change from the past. But I'm absolutely 7 convinced that we have the capability to <* 8 successfully carry out these actions. And we will 9 continue to update you on our plans as a develop 10 and our progress to them. The first and highest 11 item on my agenda, is to deal .with asbestos and the 12 situation that it brings to this corporation. So, 13 my early hours and days on the job have been 14 focussed on that item. When I was just a candidate 15 for the C.B.O., position Z was certainly aware of 16 . Owens-Coming * s asbestos liability and asked for 17 and received personal briefings from company IS man agement, irtfiit its outaide law firm, Vmboy* s and 19 Climpton and also engaged at my own expense a 20 personal preview by another company of their 21 assessment of the liability issue. Since I 22 accepted the position, asbestos has really taken 23 most of my time and energy. I concluded that it 24 was impairtative that we put the asbestos situation 25 behind us so that we could reenergize, refocus, 7 1 redirect this company toward achieving its very 2 evident long - term potential. One of the first 3 things that X realized was that the most 4 experienced, the single group with the most 5 experience and with the most qualified opinion and e the most qualified experts on the subject of 7 asbestos were on ay team- They were the 8 Owens-Corning management who had lived this issue 9 and they were the expertise that this company had 10 engaged overtime. Whether it be our auditors. 11 Author Anderson, our attorneys that X mentioned or 12 the consultants that we had. This group 13 collectively had the most experience and the most 14 qualifications on the subject of asbestos* So this 15 group under the direction of whose Allen Hamilton, 16 at my request, prepared a study that led me to the 17 conclusion that we could now make & reasonable 16 estimate of the asbestos liability* And on the 19 basis of this estimate management has decided to 20 take a non cash charge of 800 million dollars in 21 1991, to cover the expected uninsured cost of cases 22 that we expect for the remainder of this decade* 23 This charge covers our expected uninsured cost for 24 pending and future claims through the year 2000. 25 We would of liked to have said that it is the total 8 1 beyond that, but we believe that inessence this 2 does put asbestos behind us. As we looked out into 3 time, ve found that as we got beyond the year 2000 4 our ability to forecast became clouded due to the 5 decline that ve saw in that time period and 6 occupational exposures. Some term it, the third 7 wave plaintiff. So, we kept coming back in a point 8 in time to wbdre we Anew the forecast, and we have 9 for several reasons concluded that the demographics 10 say that the end of the decade is the right time 11 period. We have concluded that Owens-Corning will 12 receive most of its suits from the current pool of 13 plaintiffs by the end of the decade. These points 14 are pertinent. Almost all current asbestos 15 plaintiffs claim occupational exposure to 16 Owens-Corning*s high temperature insulation 17 product, Xaylo. Kaylo, as an asbestos containing i 18 `sateriai vas distsotrtitmed in 1972. Claimants, 1-9 generally file at or near their retirement age 60 20 to 65. You can see that, that exposure after 1999, 21 or 200.0 is very diminishing. And allowing for the 22 decreased levels of exposure experienced by those 23 who joined the work force late in the Kaylo period, 24 they didn't have time to have significant exposure 25 to contract the disease. It is likely that most 9 1 occupational exposure claims1 will be filed by 2 1999. Osha, also came into play in 1970, and began 3 workplace cleanup. Warning labels were also issued 4 so that the environment of the occupational work 5 force was much less significant. We have used an 6 expected value approach to value the expected 7 liability for these cases. And we have taken into 8 consideration four variables and a significant 9 number of factors about 19, that influence these 10 variables in arriving at our expected value and the 11 charge that we are making. Shown on the chart on 12 my left, are the variables that we have used to 13 reach the management conclusion. A number of 14 likely cases that we will receive. The average 15 indemnity cost per case and what our experience 16 there will be. What will the expense of our 17 defense per case be? And what is the insurance 18 aenaric that we will see and project into the 19 future of this situation that we have in the decade 20 of the 90's? With respect, to the number of likely 21 cases to receive, these are some of the factors 22 that we have considered and the variables that we 23 think that influence that. Bow many people have 24 actually been exposed to asbestos fibers and the 25 materials that contain them? How many of those 10 1 people have been exposed for a sufficient length of 2 time that would allow the disease to develop? What 3 of those people and how many of those people were 4 actually exposed to the products manufactured by 5 Owens-Coming or Kaylo? What are the historical 6 levels of case receipts and the demographics 7 affecting our historical trends? What is going to 8 be the propensity to sue? What will happen to the 9 union support which has been significant In the 10 cases received so far? What will happen to the 11 minimal medical thresholds of. diagnosis of those 12 claimants? And what is going to turnout to be the 13 economics for the legal community, the plaintiffs 14 attorneys. Perhaps, 1 might even think that 15 halcyon or silicone might become more attractive to 16 them. With respect, to the second variable the 17 average indemnity cost per case. We looked at 18 another group of inluemcXng factors and these are 1? some of those. What is the disease mix of the 20 unasserted claims, the occupational mix? How many 21 are come from ship building works? How many come 22 from steel mills? What happens to be the various 23 jurisdictions where people will file these claims? 24 What might happen to change the legal climate? 25 What will happen on multi district litigation? ' 11 1 What might happen in our congress that might 2 influence the cost per case? What will there be 3 more consolidations? Plural registries, will that 4 become a fact in the 1990*s? What will happen to 5 the number of codefendaats in the cases in which 6 we're involved? And what will be the effectiveness 7 of our trial and settlement strategy* With 6 respect, to defense expenses, what will be the 9 level of trial activity? Bow long will they last? 10 Will our codefendant strategy be effective as we 11 predict it will be? What will develop in the rules 12 of discovery and will our defense organization 13 which is newly implemented, and which will reduce 14 our defense cost by a hundred million dollars this 15 year be more affective then we even think it will 16 . be? And with regard# to insurance as we interpret 17 the policy coverage that we have or will there be 16 i-ntrtrrauce bankruptcies "that 'influence -where we 19 are? The estimate that we*re making is our best 20 estimate of likely uninsured liability for cases 21 received through the end of the decade* We further 22 believe, that the cost is as likely to be less than 23 600 million dollars as it is to be greater than 800 24 million dollars. Over the past year, 25 Owens-rCorning'.s ability to make a reasonable 12 1 estimates of its liability has improved 2 materially. Upon leaving the A.C.F., the Asbestos 3 Claim's Facility in 1988, a company faced many 4 uncertainties about its asbestos liability. Bow 5 would we, Oweas-Corning, fair in the tort system as a single defendant? What impact would the 7 anticipated resolution of the Manville bankruptcy t 8 have on the per case, averages and filings? Would 9 plaintiffs attorneys succeed in broadening the 10 reach of the litigation to include workers with 11 little if any exposure to our .products? Like the 12 tire workers, and the steelworkers. Where there 13 was essentially no kayline. What defense 14 capabilities would we need and what would they 15 cost? 1991, added significantly and substantially 16 to our cumulative experience base. The company 17 settled another 15,000 cases at about 93 hundred 18 dollars per case. Giving us a stronger conviction 19 in both our case disposition and cost assumptions. 20 We experienced the seven percent decline in 1991, 21 case receipts down to approximately 20,700 with 22 declines in filings from both traditional and non 23 traditional occupations that appeared to confirm m 24 the impression of many observers that plaintiff 25 . attorneys .are having difficulties finding 13 1 plaintiffs with demonstrable asbestos related 2 disease. In 1991, Owens-Corning completed the 3 implementation of'its new defense organization that 4 substantially increased our confidence in our 5 ability to predict our cost of defense. 6 Owens-Corning also gained confidence in its claims 7 for additional insurance, including the Northbrook 8 Insurance Company litigation and our total son 9 products coverage. We will continue to implement 10 our three part asbestos strategy aggressively. A 11 strategy for litigation will be the same. We will 12 insure that codefendants pay their fair share. We 13 will develop and apply our trial threat as a 14 deterrent, and ve will manage the litigation cost IS efficiently and effectively. But one point, I want 16 to leave with you is, that establishing the accrual 17 reserve does in noway mean that we are giving up. 18 X the contrary., this company will increase its 19- resolve to fight litigation aggressively. 20 Owens-Corning will be compassionate and it is 21 committed to paying its fair share to claimants 22 with real impairment, and disease, and a true 23 exposure to Owens-Coming product material. 24 However, we will go to trial more often'to defend i 25 ourself against unsubstantiated and unwarranted 14 1 claims of which there are many. And Owens-Corning 2 at my direction will also implement an incentive 3 compensation system for our own defense 4 organization. Where we will insanitize our 5 internal and external lawyers and reward them for 6 improve settlement performance including not only 7 lower settlements but complete dismissals. In 6 conclusion, we believe that this action taken by 9 management will refocus and revitalize our 10 operating businesses and there prospects for future 11 growth asbestos is behind them. Author Anderson, 12 has begun our company a clean opinion in our 1991, 13 financial report. We will however, as prudent 14 management continue to monitor the adequacy of the 15 reserve on an annual and ongoing basis and* make 16 adjustments when and if they become appropriate. 17 Now, to give you the details of those financial IS results, and to talk to you hot'h about the fourth 19 quarter and total year performance. I'd like to 20 introduce Paul Devario, Senior Vice-President, 21 Director, and Chief Pinancial Officer for 22 Owens-Corning Fiberglas. Thank you. 23 HR. DEVARIOs Thanks Paul, 24 Charlie, and Larry. I appreciate that very much. 23 You know, I think you all must understand how much 15 1 of a traumatic decision it was for me to leave a 2 company, and a friendship, and association that X 3 have developed over 35 years, particularly a 4 company like GE. But X can't tell you how really 5 excited I'm, how enthused, how much of an 6 opportunity I see for this corporation. Its really 7 fantastic* X have not looked back once. X only a look forward. I tried to share with the employees a of Oweas-Corning, the people of Owens-Coraing, how 10 X felt about my election as chairman. X wrote them n a letter on the day that occurred. And I've shared 12 that letter with you. There was a copy attached 13 with the agenda and that pretty much expresses what 24 X think are the priorities of any enterprise. We 25 talk about customers. We do not exist without 16 customers. And customers will expect from this 17 company that we will be their lowest cost, highest 14 quality supplier, giving unsurpassed customer 19. service, and customer satisfaction. The success of 20 any company in the 1990*s will be in the quality of 21 people.that it has. We will create a culture, an 22 environment that will attract and retain only the 23 finest and only the best. Individual dignity of 24 all people will be recognised and rewarded, and we 25 also serve our stakeholders, our shareholders. We 16 1 will bring value to them and we will recognize the 2 trust that they put in us with their investment. 3 We will also be a'excellent corporate citizen with 4 respect, to the communities we serve and the 5 governments of which we are a part. Our action 6 today on asbestos is significant* But it does put 7 it behind us, it does refocus, it does reenergize. 8 This is a good* company. I invite you to track our 9 progress for starters. My objective, for this 10 company, is to achieve continous earnings 11 improvement in 1992, so that each quarter of this 12 year will be better than the same quarter of 1991. 13 And we will continue that performance into 1993. 14 Track us, see where we're going, judge us by our 15 performance. Thank you very much for attending. 16 .We will entertain any questions that you have. 17 THE VOICE: After the meeting we 18 talked briefly with Glen Biner. 19 MR. BXHER: Well, X believe that 20 we were able to communicate with our major owners, 21 and the investment community that Owens-Corcing is 22 a company of change. That there is growth 23 opportunity for this business, and that it is a 24 company committed to getting the asbestos issue 25 behind us.# And hopefully they left here with that 17 1 message. 2 BY THE VOICES 3 Q. What was' the reaction you got from the 4 people you talked to after the meeting? 5 A. Well, the reaction X got was really very 6 positive. But of course, you know that's telling 7 somebody what they want to hear. Everybody knew 8 that's why X felt good about the meeting. X 9 received no negative comments but we'll just have 10 to wait and see. We'll have to see after a little 11 bit of time what the investment community writes 12 about us, how they reacted to this, and what the 13 market place says. And that really is the judge of 14 our effectiveness. IS Q. * Where do we go'from here as a company? 16 A. We go forward. We're not going to look 17 back. We're only going to look for opportunities 1* and we're e&l? going to look for the things that 19 are positive, and the things that will make us 20 grow. And I'm very optimistic about that. I'm 21 encouraged by our January autorate, and X think 22 that made both for a little better times than maybe 23 ve thought what was going to happen in 1992. 24 Q. Okay. 23 THE VOICES We were editing the 18 1 January addition of update when Max Webber, 2 announced that he will retire soon. Max, also said 3 that the Board of' Directors has gone outside the 4 company to find his replacement. Our new chairman 5 at C.B.O., is Glen fiiner. Be comes to us from 6 General Electric, where he was a Senior 7 Vice-President, and head of GE Plastics* To help 8 us get to know the new chairman, 1 update visited 8 Glen Biner, at his home in Fitzfield, Massachuset 10 where he's recovering from hip surgery. This 11 program presents some of the highlights from that 12 visit. 13 BY THE VOICEI 14 q. You had a 35 year career with General 15 Electric and rose to become a Senior 16 Vice-President, the head of GS Plastic quite an 17 illustrious career* Why leave all of that? IS SU oh gee. That * a great question. think 19 anybody who gets into the kind of a career that 1 20 established for myself. If they really have the 21 drive,, and the initiative that gets them as far as 22 they gotten anyway, always seeks that ultimate goal 23 they always want to get to the top. They always 24 want to get as far as they can. I always wanted to 25 be a C.B.O. I always wanted to be a chairman, to 19 I truely run my own business. i was never going to 2 get. that chance at GE. 1 had one of the top three 3 or four jobs in GB. The chairman and X were the 4 same age. We had come up through business so 1 5 knew 2 wasn't going to get that job. So, to get to 6 be a chairman at C.B.O., X had to leave GB. The 7 Qwens-Corning opportunity case by and it was one s 8 that was very attracted to me. It took me that 9 next step. It allowed me to reach the pentacle 10 really, as I see it/ of my professional career. 11 Q. What do you think of .as your major 12 accomplishments at GB Plastics? 13 A. Growth, growth of the business. When I'm 14 -- X*m an electrical engineer by education and I 15 entered this chemical business of GB in 1977. X 16 took over the business about a year later and as X 17 recall the sales that year were around 700 18 million. This year will be basically five billion 19 dollars and so the growth of the plastics business 20 to get to be a five billion dollar enterprise had 21 to be my number one objective. X come from a 22 growth orientation by the wayr and so growth will 23 naturally be one of the things that I'll be looking 24 for and that I'll be driving as we go down the road 25 together a,t Owens-Corning. 20 1 Q. What attracted you to Owens-Corning? 2 A. Timing, timing is a key ingredient. The 3 opportunity came along at a time when I was 4 receptive to talking about it, but also I*ve had 5 lots of other opportunities people have wanted to 6 talk to me at different times. And 2 haven't been 7 as positively oriented at that time as I was then e because at least Z had a little bit of a $ recognition and a little bit of a experience with 20 Owens-Corning and that experience has always been 11 positive. I can remember meeting Owens-Coming 12 people at industry meetings. Like S.P.X., X can 13 remember meeting Owens-Corning people as a supplier 14 to the business that Z was managing. I also 15 remember and I have a very, very favorable 26 rememberance of my visit to Grandville. X was 17 taken there as a customer and shown the technology IB development and what was going on J.B the 10 development of glass fiber for its incorporation in 20 our business and our product. And X still remember 21 the feeling X had of how great it must be for these 22 technologist to have this college atmosphere, 23 college campus environment* I guess is what I'm 24 saying to work into being creative in,*and to be 25 able to really let their ideas come forward and 21 1 generate something new to work on. 2 Q. Sow did you evaluate Owens-Corning? What 3 research did you do? And what did you find out 4 about us? S A. Well, the best research that X did was my 6 recall. The recall that X just related to you. 7 Secondly, X ask friends and associates in the 8 industry* You know, what do you know about this 9 company? What do you know about their people? I 10 of course, read about the Wicks takeover, attempt, 11 and what the company had gone.through and 12 restructuring to recover from that* X was 13 impressed by that* I was also impressed by the 14 fact that the team, the management team, that 15 basically made the commitments and the decisions 16 were inessence still on board and they were really 17 carrying out and fulfilling the commitments that IS they had made. And thirdly, 1 just got -- X did a 19 lot of reading* 2 tried to find every reference I 20 could. Unfortunately, a lot of the reference 21 material in the current time period that X was 22 focussing on Owens-Corning was related to 23 asbestos. And so X did a lot of individual 24 research on asbestos. X had a specific report 23 prepared for me by outside people. X also had an 22 1 interview with Owens-Corning*s outside attorneys 2 Deboy and Climpton, and I had a discussion with our 3 general counsel ahd putting all that together I 4 made a decision that 1 felt the asbestos issue was 5 being well managed and I thought that it was 6 something that could continue to be well managed in 7 the future. Something that we could eventually put 8 to the side and really focus on the true essense of 9 Owens-Corning today. And what are our products? 10 What are our technologies? And how do we build on 11 those? And how do we make it an even better company 12 than it is today? 13 Q. In the short time, that you've gotten to 14 know us, what do you see as our major strengths? 15 A. I guess, I truly have to say, that ay 16 original view continues to be the view of the 17 strengths today and that's in its people. I've 18 trees-very impressed with the people that I've 19 talked to. The people that I've set. X guess my 20 biggest frustration, the biggest single frustration 21 I have, about this is, that ay appointment was 22 announced in December, or ~~ yes, the 31st of 23 December, and here it is mid January, and I'm not 24 able to be fully on the job and which is something 25 I*m eager to get to Toledo. I mean, .1 want to 23 1 touch and feel people and X want them to see me. 2 There was a little management book that was 3 written, X think in the 50's or 6Q*s and X can't 4 remember the name of it now. But it was a lot of 5 things you ought to do to* think about whether your 6 business is good or not* And I've always remember 7 one of the items that was in that book. Was, when % 8 your own the road sometimes call your company or 9 call? your office and see how they answer the 10 telephone. And I've been impressed with that. 11 Everybody that X've called in .Owens-Coming has 12 been polite and curtious on the telephone. 13 Everybody has been willing to help me. X mean even 14 before they knew X was going to be the new boss. X 15 made a few calls and they were positive and they 16 were responsive. X viewed your January tape, and 17 let's see there was a woman on the tape. I believe 18 she -was from the Irving Texas plan. Ser name was 19 Earnery Fouler, X believe, and this woman talked 20 about customers. The way X feel about customers. 21 Because she said, they pay our bills. They pay my 22 check. Xt may come from Toledo, but it's really 23 the customer that does it. And if that's the 24 attitude in Owens-Corning throughout the business, 25 we can't lose. Because anybody in business has to 24 1 understand that we do not exist in business if it 2 were not for our customers, and our customers do us 3 a favor when they'give us and order and that's a 4 privilege, and then we can be in business to 3 fulfill their order. And so long as we have that 6 attitude and that orientation towards customer 7 satisfaction and understanding who the customers 8 are, I think that's great and X think that's the 9 genesis of a good business. 10 Q. You mentioned asbestos, what other 11 challenges do you see us facing? 12 A. The other one, I guess, X related to is 13 growth. X think that we have been on a plateau. I 14 think that we need to get beyond that. X think we 15 have to refocus on the new things that we have to 16 do. X talked with Dr. Kikesole, last week X think 17 it was or perhaps a week before. I had a little 18 disease ion with him and he told me f-or itrefcatree, 19 that 13 percent, of his R & D budget is focused on 20 future products, or new products, and new things 21 that we don't have today. My message to him is 22 that, that's not enough. That's the wrong ratio of 23 new to existing. The new ratio has to be much 24 greater than that, and X told him that he has to 23 change that right away to at least 25 percent. I 25 1 want to see technology drive us to get us a better 2 position in the market place and. that's how we*11 3 go and that's one of the issues that I'll address 4 very early* 3 Q. The people of Owens-Corning have been 6 through a lot in recent years* We had the takeover 7 attempt, the restructuring, and recaptialization, 8 we downsize the organization, and we've experienced 9 the recession* How, we find that we'ze getting a 10 new chairman from outside the company. Do you see 11 yourself adding to the stress.that we're feeling in 12 Owens Company? 23 A* 2 wonder if you were going to ask me if I 14 was part of the stress* X don't think X*m a stress 15 factor in this particular situation. Certainly, X 16 come in with no prejudiae. X don't have any 1? preoccupied agenda that says I*m going to tear this 1-8 d&wn, or build this up* ox 2 immediately want a 19 reduction of a certain number, or percentage of 20 people. X consider myself to be a people person. 21 I think that X relate well to people issues. I 22 want to communicate with people. X*m easily 23 accessible. In fact, I*ve been told at times over 24 the past that perhaps, I*m too easily accessible. 25 But I have found that to be an asset, rather than a 26 1 negative. And I hope that overtime that X will be 2 recognized as an Owens-Corning asset and I 3 certainly don't intend to enter the enterprise 4 bringing any stress with me. 5 Q. One of the articals accorded you as being 6 a touch and feel kind of guy who doesn't like to 7 manage from reports. Could you elaborate on your i 8 management style? 9 A. Well, X would say that my style is very 10 open. X tend to delegate a lot. X give people 11 probably more authority than they want. But then X 12 judge them very quickly on what they do and give 13 them a lot of rope. How they use that and how they 14 manage around that is entirely op to them. The 15 touch and feel, X found is an aspect that allows me 16 to be more easily related to the business. We talk 17 about a plant in Irving Texas, or a plant in Newark 18 or the operations. The joint venture at a Satihee, 19 in Japan, or our European operations. 2 relate 20 better to those if X*ve been there. If X see 21 them. If 2 know what their doing, because when you 22 talk - X now, know for instance, a little bit more 23 about the Bakers Field Plant due to the tape of m 24 your's that X viewed. As apposed to never having 25 been ,iere#at all. But yet, when somebody brings 27 1 up an issue or a problem with me, I feel that I'm 2 better able to deal with it. To relate to them on 3 a more positive basis about that issue if I've been 4 there in touch and felt it and understand what's 5 going on there. That's my style. I've always 6 traveled a lot. 1 think X will always travel a 7 lot. And I intend to be very visible. I think 8 people will not find it a surprise to see me in 9 their office to ask a question, as apposed to 10 picking up the telephone and calling them. Because 11 X feel like I'd like to be on.their turf as much as 12 I'd like to have them is my turf. 13 Q. Bow do you see yourself operating as our 14 C.B.O.? Hill you focus on the strategic issues, or 15 do you expect to get involved in the day - to - day 16 operations? 17 A. I think the strategic issues are my prime 1*8 responsibility. X 'think the -strategic direction -of 19 a company is mine, and mine alone. And that's 20 something that X will formulate and that we will 21 decide, in the management counsel. I will tend to 22 leave day - to - day operations to the operating 23 people. But X will always be available to them to 24 be helpful, to interface with customers, to .25 interface with government, or to interface with 28 1 suppliers where that's in our benefit. You know in 2 a lot of ways I feel I'm a part of the overhead. 3 And people in operations who don't use the. overhead 4 to their benefit, X say shame on them. And so X 5 want to be as active in the company as X can, and X want to be supportive and X want to particularly 7 have a relationship with the customer, because X 8 think that is*the real main thing of any company. 9 Q. During the past year we've launched a new 10 employee survey process at Owens-Corning. Are you 11 aware of that and would that be something you 12 expect to support? 13 A. X in fact asked, if we had ever had an 14 employee attitude survey* X was pleased to see 15 that we had, had one. X have only seen the review 16 of the top ten most favorable items and the ten 17 least favorable and I reviewed those. X didn't 19 find any significance surprises In those -as to what 19 X would expect a company, that's going through, 20 what Owens-Corning is currently going through. X 21 thought those were there. X think employee 22 attitude surveys are important, but there only 23 important if management A. Responds to them and 24 reacts to them. And then there is a follow - up 25 mechanism to insure that the attitudes are 29 1 changing. Because if the attitudes haven't changed 2 than whatever our follow - up was# or whatever our 3 action was to what we sensed in the attitude survey 4 was inadequate. 5 Q. Boring the past ten years we've been 6 implementing a total quality management philosophy 7 at Owens-Corning. Are you familiar with T.Q.N.? 8 And what's your view on T.Q.H.? 9 A. I'm familiar with total quality 10 management. X have a little different perspective 11 on quality If you will, and interjecting that into 12 the operating system. And maybe that's because I 13 entered it at a later point in time. But my focus 14 on quality is time. And cycle time reduction. 15 What X think companies of today are finding is that 18 when you reduce cycle time the time for instance# 17 of the receipt of an order until the time we 18 received the cash from our customer to .pay us for 19 that product. As we reduce that cycle time there 20 are lots of little problems that pop - up and I 21 heard .one of the customer service people talking 22 about you know, how we turned around very quickly. 23 But what we've found as you compress cycle times 24 and these little issues pop - up that cause you not 25 to be able to reduce cycle time. As you solve 30 1 those issues and those problems to make your cycle 2 time reduce, and be quicker, and be a faster 3 response. You have also inherently improved the 4 quality of your business, and improve the quality 5 of your product. So ay approach to quality and 6 quality management will be from a time prospective 7 which I think will be a little bit different. But 8 X think that will give a unique view and maybe hone 9 our skills a little bit better as we make ourselves 10 a better quality supplier. 11 Q. X notice a lot of artifacts from around 12 this world is this room. Are you interested in 13 making Owens-Coming a bigger player in the global 14 marketplace? 15 A. We 11, yes. And from this prospective X 18 believe that there is only one marketplace and 17 that*a the global marketplace. And X believe that T8 any competitor that we have is reaiiy a global 19 competitor and therefore, X believe we have to be 20 well established around the world if we're gonna 21 continue to be the market leader and X think it's 22 nievity to think that we can hold a number one 23 position for instance, in the United States and not 4t 24 be concerned about what's going on in our market, .25 and our technology, and our products, in Asia, or 31 1 Japan/ or Europe- And because I think the world 2 has shrunk, 1 think the competitors will 3 consolidate overtime and therefore, I "think that 4 global participation, a global role, a global image 5 is very important to us- And 1 don't want us to be 6 minor players in our joint ventures for instance. 7 I want us to be major players. I want us to be the 8 one who determines the strategy. Who determines 9 the tactics that we're gonna use in the 10 marketplace, because I think that's what leaders XI do. 1 think that's the importance of being in a 12 global marketplace. Perhaps, that's something that 13 I will bring to Owens-Corning. I'm very 14 comfortable in the international marketplace. I've 15 lived and work outside the United States. I've 16 . traveled extensively all over the world. And I 17 would look forward to continuing to do that, to 18 expand the ^wen'S'-Coraing franchise So expand our 19 vision to insure that it is global. That we do 20 have a worldwide prospective in everything we do. 21 Q. We've talked about your views on 22 business. But what about Glen Biner outside the 23 world of business. What are your interests? 24 A. Well, you said I think earlier in the 25 introductory remarks that I'm recovering from a hip i 32 1 surgery. I* very hopeful that this hip surgery 2 and this new hip 1 have are going to take at least 3 two strokes off niy golf handicap, because 1 really 4 enjoy playing golf. Although I've only been 5 playing it for about the last 12 years. I enjoy 6 being outside. enjoy being out of doors. And 7 that's very important to Be and golf allows axe to 6 do that. I've'also found it to be a nice way to be 9 with customers. I've also found it to be a good 10 way to meet people and make new friends. 2 also 11 enjoy the arts. I have just as much enjoyment 12 going to a Broadway play, or the opra, or a 13 symphonic concert as X do a sporting event. I'm a 14 great sports spectator. I consider myself to be 15 the number one West Virginia Mount near fan in the 16 United States, maybe the world. And I will say 17 that X will cover any and all bets, against West 18 Virginia in my Oweas-Cor-ning 'days. IS Q. You mentioned your surgery, would you mind 20 telling us what surgery you had and how your 21 recovery is coming along? 22 A. Wo, X don't have any problem with that at 23 all. My problem that X was suffering from in a 24 technical term was osteoarthritis of tlTe right 25 hip. And what was happening was that l -was losing 33 / 1 all of the cartilage in my hip, and I was at a 2 point last year where I literally had bone on 3 bone. And I did not have any cushion to the 4 activity o my hip and therefore, 1 was in a great 5 deal of pain. And the solution to this problem was 6 the replacement of my hip by an artificial hip. I 7 had that done on December 16. 1 see my surgeon on 8 the 21st of January, for my release hopefully from 9 the restrictious that are now on me. That will 10 allow me to go to Toledo, on the 26th of January, 11 and I'm looking forward to being in my office on 12 the 27th and a hundred percent of the time on the 13 job. 14 Q. You expect to move to Toledo? 15 A. Sure. X*m looking forward to that. I 16 think X*ve lived in about 17 other locations. 17 Toledo will be number 18, and 1 found that every 1<$ new place that X*ve gone to live has its -own 19 exciting new opportunities and its own challenges. 20 And we seem to be able to put into it the things 21 that make those positive experiences. So I'm 22 looking forward to it. 23 Q. We really appreciate it your spending time 24 with us this morning. Before we go, do'you have 25 any closing comments for the people of 34 1 Owens-Corning? 2 A. My special message to Ownes-Corning people 3 would be I*m delighted to have this job. I feel 4 very, very lucky. 2 will- commit a hundred percent 3 of my energies to making this a bettercompany. I 6 ask of every employee to help me make it a better 7 company. 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 as