Annual report 2007 General

Financial calendar investor relations

Financial inForMation and investor relations

For all further information, institutional investors and financial analysts should contact:

Geert asselman - chief Financial officerFabriekstraat 23 - B-8850 ardooiet: +32 51 74 09 80 - F: +32 51 74 09 79e: [email protected]

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Contentscorporate information Part i

Profile 1

Strategy 2Mission & strategy 4

letter to the shareholders 6

Innovation 8our products 10

sioen worldwide 12

History 2000-2007 14

expertise right down the line 16

Group structure 17

Growth 18coating division 20

chemicals division 25

apparel division 28

industrial applications 32

People 36Human resources 38

research & development 42

environment 43

Quality 44

corporate information Part ii


report from the Board of directors 5

Group structure 9

share information 10

corporate Governance 12

General information 16

Financial overview 20

definitions 79

addresses 80

only the english version of the annual report has evidential value.

Friday, april 25, 2008 General shareholders meeting of 2008

Friday, May 16, 2008 trading update 1st quarter 2008

Friday, august 29, 2008 announcement of 1st half-year results 2008

Wednesday, october 31, 2008 trading update 3rd quarter 2008

mid-March 2009 announcement of 2008 full-year results

Friday, april 24, 2009 General shareholders meeting

Strategy

Growth

People

Innovation

Fabriekstraat 23 - B-8850 ardooie - Belgium

t: +32 51 74 09 80 - F/ +32 51 74 09 79

Annual report 2007





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Profile 1




sioen worldwide 12

History 2000-2007 14


Group structure 17



apparel division 28




environment 43

Quality 44




Group structure 9





definitions 79

addresses 80








Strategy

Growth

People

Innovation


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Annual report 2007

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2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR

Profit & Lossnet sales 380,4 339,4 316,2 309,8 272,8 237,7 226,0 192,4 161,1 141,2 107,9operating profit (eBit) 38,8 25,9 25,5 27,0 27,2 24,6 33,8 32,6 28,4 19,6 15,0Financial result (8,4) (6,6) (5,5) (7,3) (11,0) (8,7) (6,7) (3,0) (1,3) (1,7) (1,2)Profit on ordinary activities before taxes 30,4 19,3 20,0 19,6 16,2 15,9 27,1 29,6 27,1 17,9 13,8Profit on ordinary activities after taxes 19,2 12,2 13,6 13,1 8,9 11,0 17,3 19,0 17,6 12,3 9,1eBit (8) 38,8 25,9 25,5 27,0 24,4 23,1 32,4 31,5 27,3 19,0 14,5eBitda (9) 60,5 44,8 43,6 44,8 52,8 42,8 50,9 45,0 37,8 27,1 19,6cashflow (4) 42,8 31,5 29,5 31,1 37,3 30,2 35,8 32,5 29,5 20,7 14,2net profit (group share) 19,2 12,2 13,6 12,3 8,6 10,0 16,9 18,8 18,6 12,2 9,0depreciation 19,6 17,9 17,9 17,8 22,1 19,8 18,6 14,1 11,6 7,1 4,7Personnel costs 72,6 67,6 63,5 61,7 54,5 47,0 42,8 34,5 30,9 24,1 17,3number of employees (in units) 4 869 4 687 4 645 4 500 4 689 4 271 3 924 3 420 2 857 2 555 1 552Balance sheetequity 148,6 135,8 129,4 118,3 123,5 125,3 123,9 112,0 97,5 79,8 33,6long-term financial debt 117,1 128,5 66,9 68,5 89,0 95,1 83,4 66,2 57,3 42,5 35,8net financial debt (2) 145,9 147,8 126,8 117,7 148,1 134,6 118,4 91,6 71,1 56,7 44,7Balance sheet total 378,1 371,8 337,7 330,7 346,9 331,8 310,3 262,9 227,6 185,3 112,6Working capital (3) 126,2 115,2 107,6 90,9 108,9 118,5 117,3 101,4 81,4 73,6 43,6net investment in tangible fixed assets (10) 21,1 23,1 16,6 7,1 11,9 30,6 27,1 27,4 28,3 22,4 15,6Fixed assets 151,4 150,4 142,3 141,4 175,8 153,1 138,9 115,7 99,5 73,6 40,7Ratio’seBit (8) 10,2% 7,6% 8,1% 8,7% 9,0% 9,7% 14,3% 16,4% 17,0% 13,5% 13,5%eBitda (9) 15,9% 13,2% 13,8% 14,5% 19,4% 18,0% 22,5% 23,4% 23,5% 19,2% 18,1%net profit margin (7) 5,04% 3,60% 4,30% 4,24% 3,3% 4,4% 7,6% 9,9% 11,8% 8,9% 8,5%cash flow/net sales 11,26% 9,30% 9,34% 10,04% 13,7% 12,7% 15,8% 16,9% 18,3% 14,6% 13,2%liquidity (current assets/current liabilities) 2,06 2,11 1,38 1,33 1,40 1,78 1,91 2,05 2,11 2,12 1,92solvency (equity/balance sheet total) 39,3% 36,5% 38,3% 35,8% 35,6% 37,7% 39,9% 42,6% 42,8% 43,1% 29,8%net financial debt/equity 0,98 1,09 0,98 1,00 1,20 1,07 0,96 0,82 0,73 0,71 1,33return on equity (5) 14,1% 9% 11% 10% 6,9% 8,1% 15,1% 19,3% 23,4% 36,3% 35,7%return on capital (6) 8,78% 6,23% 7,09% 8,13% 10,0% 9,6% 15,6% 18,1% 19,3% 23,3% 21,5%

definitions see p79(1) since 2004 iFrs / before Belgian GaaP (2) Financial debt - other investments & deposits and cash & cash equivalents. (3) Financial fixed assets + current assets (less other assets & deposits and cash & equivalents) - non-financial liabilities up to one year - accrued charges and deferred income.(4) consolidated net profit + depreciation - + provisions for liabilities and charges + impairments and valuation allowances + deferred taxes.(5) net profit (group share) / equity (6) operating profit / (equity + minority interests + provisions for liabilities and charges + net financial debts) (7) net profit / net sales for the financial year. (8) earnings Before interest and taxes = operating profit - amortization of consolidation differences (goodwill). (9) earnings Before interest, taxes, depreciation and amortizations = operating profit + depreciation + provisions for liabilities and charges + impairments and valuation allowance. (10) acquisition of tangible fixed assets.

consolidated KeY FiGUres Per sHare (1)(2)


operating profit 1,81 1,21 1,19 1,26 1,27 1,15 1,58 1,52 1,33 0,92 0,75Profit on ordinary activities after taxes 0,90 0,57 0,64 0,61 0,42 0,52 1,27 0,89 0,82 0,58 0,43net profit (group share) 0,90 0,57 0,63 0,57 0,40 0,47 0,79 0,88 0,87 0,57 0,45cashflow 2,00 1,47 1,38 1,45 1,74 1,41 1,67 1,52 1,38 0,97 0,71consolidated equity 6,95 6,35 6,05 5,53 5,77 5,86 5,79 5,24 4,56 3,73 1,68Gross dividend 0,4500 0,2600 0,2400 0,2200 0,20 0,17 0,16 0,14 0,12 0,09 0,07net dividend 0,3375 0,1950 0,1800 0,1650 0,15 0,13 0,12 0,11 0,09 0,07 0,05Pay-out (%) 50,2% 45,6% 37,8% 38,4% 49,8% 35,9% 20,2% 15,8% 14,2% 15,7% 15,5%Maximum share price 10,85 10,41 10,49 10,70 9,16 14,95 23,51 33,65 47,5 43,13 10,68Minimum share price 9,05 8,00 7,85 8,24 4,70 6,00 10,1 18,4 28,5 9,92 3,92Price at end december (3) 9,80 9,60 8,30 10,29 8,24 7,65 11,50 20,90 33,00 38,18 9,97change in share price (5) 2% 16% -19% 35% 8% -33% (45%) (36,7%) (14%) 283% 154%Price/earnings ratio (5) (6) 10,9 16,8 13,1 18,0 20,5 16,4 14,5 23,8 37,9 67,0 22,1Price/cash flow ratio (5) (7) 4,9 6,5 6,0 7,1 4,7 5,4 6,9 13,8 23,9 39,4 14,0average daily trading volume (no. of shares) (4) 11 354 13 396 12 771 6 550 4 406 5 310 5 104 9 548 13 216 26 671 20 950average monthly trading volume (no. of shares) (4) 238 438 274 892 268 200 137 550 92 895 112 837 107 194 199 710 277 530 557 863 434 762annual trading volume (in eUr millions) 28,6 30,1 29,5 16,2 8,3 10,4 20,7 63,7 122,5 162,6 33,9number of sioen shares outstanding (in thousands) (2) 21 390 21 391 21 391 21 391 21 391 21 391 21 391 21 391 21 391 21 391 19 965stock market capitalization (in millions) (5) 209,6 205,3 177,5 220,1 176,3 163,6 246,0 447,1 705,9 816,6 199,0

(1) since 2004 iFrs / Before BGaaP (2) recalculated after the 1 to 55 share split on 13/09/96 and the 1 to 10 split on 05/11/98. (3) on 17 March 2008 the sioen industries share was trading at eUr 9.07. (4) 1996 data are strongly influenced by heavy trading shortly after the stock market flotation on 18 october 1996. (5) Price at end of december (6) share price / net profit per share (7) share price / cash flow per share

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Profit & Lossnet sales 380,4 339,4 316,2 309,8 272,8 237,7 226,0 192,4 161,1 141,2 107,9operating profit (eBit) 38,8 25,9 25,5 27,0 27,2 24,6 33,8 32,6 28,4 19,6 15,0Financial result (8,4) (6,6) (5,5) (7,3) (11,0) (8,7) (6,7) (3,0) (1,3) (1,7) (1,2)Profit on ordinary activities before taxes 30,4 19,3 20,0 19,6 16,2 15,9 27,1 29,6 27,1 17,9 13,8Profit on ordinary activities after taxes 19,2 12,2 13,6 13,1 8,9 11,0 17,3 19,0 17,6 12,3 9,1eBit (8) 38,8 25,9 25,5 27,0 24,4 23,1 32,4 31,5 27,3 19,0 14,5eBitda (9) 60,5 44,8 43,6 44,8 52,8 42,8 50,9 45,0 37,8 27,1 19,6cashflow (4) 42,8 31,5 29,5 31,1 37,3 30,2 35,8 32,5 29,5 20,7 14,2net profit (group share) 19,2 12,2 13,6 12,3 8,6 10,0 16,9 18,8 18,6 12,2 9,0depreciation 19,6 17,9 17,9 17,8 22,1 19,8 18,6 14,1 11,6 7,1 4,7Personnel costs 72,6 67,6 63,5 61,7 54,5 47,0 42,8 34,5 30,9 24,1 17,3number of employees (in units) 4 869 4 687 4 645 4 500 4 689 4 271 3 924 3 420 2 857 2 555 1 552Balance sheetequity 148,6 135,8 129,4 118,3 123,5 125,3 123,9 112,0 97,5 79,8 33,6long-term financial debt 117,1 128,5 66,9 68,5 89,0 95,1 83,4 66,2 57,3 42,5 35,8net financial debt (2) 145,9 147,8 126,8 117,7 148,1 134,6 118,4 91,6 71,1 56,7 44,7Balance sheet total 378,1 371,8 337,7 330,7 346,9 331,8 310,3 262,9 227,6 185,3 112,6Working capital (3) 126,2 115,2 107,6 90,9 108,9 118,5 117,3 101,4 81,4 73,6 43,6net investment in tangible fixed assets (10) 21,1 23,1 16,6 7,1 11,9 30,6 27,1 27,4 28,3 22,4 15,6Fixed assets 151,4 150,4 142,3 141,4 175,8 153,1 138,9 115,7 99,5 73,6 40,7Ratio’seBit (8) 10,2% 7,6% 8,1% 8,7% 9,0% 9,7% 14,3% 16,4% 17,0% 13,5% 13,5%eBitda (9) 15,9% 13,2% 13,8% 14,5% 19,4% 18,0% 22,5% 23,4% 23,5% 19,2% 18,1%net profit margin (7) 5,04% 3,60% 4,30% 4,24% 3,3% 4,4% 7,6% 9,9% 11,8% 8,9% 8,5%cash flow/net sales 11,26% 9,30% 9,34% 10,04% 13,7% 12,7% 15,8% 16,9% 18,3% 14,6% 13,2%liquidity (current assets/current liabilities) 2,06 2,11 1,38 1,33 1,40 1,78 1,91 2,05 2,11 2,12 1,92solvency (equity/balance sheet total) 39,3% 36,5% 38,3% 35,8% 35,6% 37,7% 39,9% 42,6% 42,8% 43,1% 29,8%net financial debt/equity 0,98 1,09 0,98 1,00 1,20 1,07 0,96 0,82 0,73 0,71 1,33return on equity (5) 14,1% 9% 11% 10% 6,9% 8,1% 15,1% 19,3% 23,4% 36,3% 35,7%return on capital (6) 8,78% 6,23% 7,09% 8,13% 10,0% 9,6% 15,6% 18,1% 19,3% 23,3% 21,5%

definitions see p79(1) since 2004 iFrs / before Belgian GaaP (2) Financial debt - other investments & deposits and cash & cash equivalents. (3) Financial fixed assets + current assets (less other assets & deposits and cash & equivalents) - non-financial liabilities up to one year - accrued charges and deferred income.(4) consolidated net profit + depreciation - + provisions for liabilities and charges + impairments and valuation allowances + deferred taxes.(5) net profit (group share) / equity (6) operating profit / (equity + minority interests + provisions for liabilities and charges + net financial debts) (7) net profit / net sales for the financial year. (8) earnings Before interest and taxes = operating profit - amortization of consolidation differences (goodwill). (9) earnings Before interest, taxes, depreciation and amortizations = operating profit + depreciation + provisions for liabilities and charges + impairments and valuation allowance. (10) acquisition of tangible fixed assets.

consolidated KeY FiGUres Per sHare (1)(2)


operating profit 1,81 1,21 1,19 1,26 1,27 1,15 1,58 1,52 1,33 0,92 0,75Profit on ordinary activities after taxes 0,90 0,57 0,64 0,61 0,42 0,52 1,27 0,89 0,82 0,58 0,43net profit (group share) 0,90 0,57 0,63 0,57 0,40 0,47 0,79 0,88 0,87 0,57 0,45cashflow 2,00 1,47 1,38 1,45 1,74 1,41 1,67 1,52 1,38 0,97 0,71consolidated equity 6,95 6,35 6,05 5,53 5,77 5,86 5,79 5,24 4,56 3,73 1,68Gross dividend 0,4500 0,2600 0,2400 0,2200 0,20 0,17 0,16 0,14 0,12 0,09 0,07net dividend 0,3375 0,1950 0,1800 0,1650 0,15 0,13 0,12 0,11 0,09 0,07 0,05Pay-out (%) 50,2% 45,6% 37,8% 38,4% 49,8% 35,9% 20,2% 15,8% 14,2% 15,7% 15,5%Maximum share price 10,85 10,41 10,49 10,70 9,16 14,95 23,51 33,65 47,5 43,13 10,68Minimum share price 9,05 8,00 7,85 8,24 4,70 6,00 10,1 18,4 28,5 9,92 3,92Price at end december (3) 9,80 9,60 8,30 10,29 8,24 7,65 11,50 20,90 33,00 38,18 9,97change in share price (5) 2% 16% -19% 35% 8% -33% (45%) (36,7%) (14%) 283% 154%Price/earnings ratio (5) (6) 10,9 16,8 13,1 18,0 20,5 16,4 14,5 23,8 37,9 67,0 22,1Price/cash flow ratio (5) (7) 4,9 6,5 6,0 7,1 4,7 5,4 6,9 13,8 23,9 39,4 14,0average daily trading volume (no. of shares) (4) 11 354 13 396 12 771 6 550 4 406 5 310 5 104 9 548 13 216 26 671 20 950average monthly trading volume (no. of shares) (4) 238 438 274 892 268 200 137 550 92 895 112 837 107 194 199 710 277 530 557 863 434 762annual trading volume (in eUr millions) 28,6 30,1 29,5 16,2 8,3 10,4 20,7 63,7 122,5 162,6 33,9number of sioen shares outstanding (in thousands) (2) 21 390 21 391 21 391 21 391 21 391 21 391 21 391 21 391 21 391 21 391 19 965stock market capitalization (in millions) (5) 209,6 205,3 177,5 220,1 176,3 163,6 246,0 447,1 705,9 816,6 199,0

(1) since 2004 iFrs / Before BGaaP (2) recalculated after the 1 to 55 share split on 13/09/96 and the 1 to 10 split on 05/11/98. (3) on 17 March 2008 the sioen industries share was trading at eUr 9.07. (4) 1996 data are strongly influenced by heavy trading shortly after the stock market flotation on 18 october 1996. (5) Price at end of december (6) share price / net profit per share (7) share price / cash flow per share

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ProfileSioen Industries is a diversified stock quoted group with a extensive portfolio of products and activities: coating

of technical textiles, manufacturing of protective clothing, production of fine chemicals and processing of

technical textiles. Vertical and horizontal integration, diversification and permanent growth provide a solid

basis for a promising future.

Our businessSioen Industries is:

- The world leader in coated technical textiles

- A market leader in industrial protective clothing

- A specialist in fine chemicals

- A global player in the processing of technical textiles

Our strengths - Vertical integration, making us independent of outside suppliers and giving us a major technical advantage.

- Technical expertise. Sioen products predominate where technical specifications are decisive.

- A “hands-on”, unbureaucratic corporate culture

Where we’re goingExploiting our technology base to enter new markets and develop new products and processes as

opportunities present themselves. We want to continue to grow and be market leader in all our activities.

2 I SIOEN INDUSTRIES I Annual Report 2007

Strategy “protection through innovation”

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“Our strategyis targeted

expansion ...”

Jean-Jacques Sioen, Chairman of the board


Mission & Strategy

Strategic directions

• Seizing every opportunity for healthy internal

and external growth in its key and related areas

• Sound financial management to provide a steady

dividend stream and flexibility for expansion

• Continuous efforts and investments in R&D

• Maintaining (price) competitiveness in core

markets, and entering new high value niche

markets through constant innovation and

customer proximity

• Offering an attractive, stable work

environment at all levels

PROTECTION ThROUgh INNOVATION

Mission

With market leadership in key sectors of

the coated fabrics market, won by vertical

integration, close customer relations and a

robust entrepreneurial ethos, Sioen is looking

to take every opportunity for healthy growth.

This will provide its shareholders with a steady

and growing income and enable it to defend

its independence as a source of tangible and

intangible value for its owners, employees,

customers and host communities.

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• Maintaining a distinctive, up-to-date

entrepreneurial identity

• Market leadership in all niches

Core competences

• Vertical integration

• Technical expertise

• R&D

• Innovation & new markets

• “Hands-on”, unbureaucratic corporate culture

Challenges

• Expanding production outside Europe

• Retaining the financial strength

• Internal coherence of product lines

• Acquiring and retaining quality employees in

tightening labour markets

• Combining the traditional “hands-on”

approach of a family-owned company with the

more scientific approach needed as the group

expands

• Explore new markets


Letter toshareholdersDear Shareholder,

If I were to summarize 2007 in a single word, it

would be ‘strong’. We performed on every front,

and advanced in every activity.

The figures speak for themselves:

• In 2007 our net sales amounted to EUR 380.3

million, up 12.1% on the year before.

• Our net profit was EUR 19.2 million or an

increase of 58%

• Cash flow amounted to EUR 43.5 million. This

is an increase of EUR 12 million compared to

last year.

• EBITDA and EBIT increased with respectively

36% and 50% to EUR 61.2 million (16% of net

sales) and EUR 38.8 million (10% of net sales).

• Sioen Industries is paying a dividend of EUR

0.45 per share to its shareholders in respect of

2007 (+73%)

Of course we need to say more than this to do

justice to the past year. This annual report seeks

to hold a mirror to our group’s performance.

You will find who we are, our history, our

products, what drives us and our particular style

of entrepreneurship.

“Strong growth, excellent results, new projects”

In 2007 the emphasis at Sioen was on strategy,

innovation, growth and people. Our action plan,

objectives and challenges are set out on pages 4

and 5 of this annual report.

2007 was in all aspects an exceptional year, in

which the old records came tumbling down one

after another. We achieved maximum returns

in our spinning and weaving mills, we passed

for the first time the six million square metre

mark on our extrusion line, we operated the

direct coating lines at historically high speeds,

we restructured our Jakarta facility to give

additional cost and production efficiency, we

produced record numbers of truck curtain and

roof sets, demand for open structure fabrics

was permanently high, and we developed

an unequalled number of new and improved

product formulations.

We also had to surmount a number of

difficulties. The whole year we had to cope with

rising energy prices, rising raw materials prices

nor was it always easy to find suitable personnel.

“Targeted entrepeneurship, stimulating a sense of belonging and sticking to our strategic course”

In every division we went forward with

our improvement programmes, improving

production and cost efficiency and fine-tuning

our product formulations. We carefully

examined our stock situation and optimized at

every level. We successfully implemented SAP in

the Industrial Applications division, with the

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Coating and Chemicals divisions set to follow in

2008.

“On the path to new records? In an Olympic year, can we do otherwise?”

We are keeping up the investment pace in 2008.

This includes:

• Belgium: · new buildings for storage

· new calendering line fully

operational

· doubling our open structure fabric

capacity production

· additional pigment paste

production machinery

• France: · optimization of direct coating line

• Ukraine: · commissioning of production

centre (truck roofs)

• Worldwide: · continuous investments in R&D

and focus on technical products.

Sioen Industries’ performance in 2007 and in

previous years confirms our capacity to create

long term value and growth. And that is what

you, our shareholders, and we, entrepreneurs

and all our employees, are looking for.

Michèle SioenCEO Sioen Industries n.v.

“Strong growth, new projects,

targeted entrepreneurship

and sticking to our strategic course”

8 I S IOEN INDUSTRIES I Annual Report 2007

InnovationInnovation starts from a constant desire to be out front, exploring new territory,

striking out in new directions. It is spurred on by competition: if we don’t innovate,

others will. It requires us to be entrepreneurial and take calculated risks.

“Protection through Innovation” is Sioen’s corporate slogan. Innovation keeps

us ahead of the market with new products, processes and applications based on

our core expertise.

Over 25 % of our 2007 sales were of products developed over the past 5 years.

Over 40% were in markets we were not in 10 years ago. Since 2000 we have

spent well over EUR 130 million on innovative manufacturing processes.

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“Constant innovation is vital for survival in

a rapidly evolving market”

Jacqueline Sioen-Zoete, Director


Sioen, part of our daily lives

TransportTruck tarpaulins and curtains, mud flaps,

inflatable containers, railway wagon tarpaulins,

protective and industrial clothing for railway, bus,

transport and airline companies

Automobile Airbags, dashboards, sun shades, door panels,

gearlever covers, floor mats, seats, filters, trunk

curtains

Construction and road works Reinforcement for gyproc plates, insulation, road

fortification, rubble nets for scaffoldings, high

visibility protective clothing, silos, storage tents,

sun screens, sewage, filters

Agriculture, horticulture, forestry and food industry Windbreak nets, drainage, protective clothing,

damming film, filters, pond foil, ultra-low

temperature clothing, hygienic protective clothing

Chemical and petrochemical industries Specific protective clothing, oil dams, filters

Medical sectorMedical protective clothing, air filters, mattress

covers, pillow-cases

Air and water treatment Filters, air conditioning and mine shaft air ducts

Navigation, fishing industry and water sports Flotation suits, life jackets, protective aquatic

clothing, inflatable boats, boat tarpaulins, yacht

canvas, ship tarpaulins

Public institutions Clothing, firemen’s clothing, clothing for police

and army, railways, airlines and post offices,

tents and truck tarpaulins

Interior decorationYarns and pigments for carpets, wall coverings,

insulation, ceilings, etc.

Sports gym mats, safety nets, children’s playing mats,

clothing for hunters, golfers and fishermen,

Sioen products play an important part in our daily

lives, protecting us and generally improving our

quality of life.

Sioen provides filters to treat the water we drink,

the side curtains on the trucks and protective

clothing for medics, firefighters, police forces,

soldiers and pilots on whom our society

depends. Sioen products strengthen our roads,

improve the safety and comfort of the cars we

drive, and allow us to enjoy outdoor sports in all

weathers. And many other things.

Our products

11

motorcyclist’s clothing, reflective clothing for

joggers, cyclists and other outdoor sportsmen,

pool covers and pool reinforcement nets,

surfer’s, ski and skater’s clothing

Tents Camping tents, party tents, awnings, canopies,

halls, semi-permanent buildings, kadors

Publicity and promotion Indoor and outdoor publicity banners,

promotional clothing

Corporate identity wear Clothing for courier services, electricity

companies, petrol stations, breweries, telecom

companies, airlines, etc.

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Technical textiles in cars and roads

Sioen protective clothing

Pool covers and liners

Boatliners

Technical protective clothing

Filters

Mattress covers

Pigment pastes

Side curtainsTents & structures


1 ARDOOIE

Sioen Coating Division/Apparel Division/Veranneman TT

Sioen Coating Distribution

2 BORNEM

European Masterbatch (EMB)

Fillink Technologies

3 KERKSKEN

TIS

4 LIÈgE

Sioen Nordifa

5 MESLIN-L’EVÊQUE

Inducolor

6 MOUSCRON

Sioen Fibres - distribution/spinning

Sioen Fabrics - weaving, coating and calendering

7 POPERINgE

Coatex

Sioen worldwide

Coating

Apparel

Industrial applications

2

3

5

4

71

6

8 Sioen Shanghai ShANghAI ChINA

9 Saint Frères - Enduction & Confection FLIXECOURT FRANCE

10 Richard Colorants LOMME FRANCE

11 Sioen France NARBONNE FRANCE

12 Pennel Automotive ROUBAIX FRANCE

13 P.T.Sungintex BEKASI BARAT INDONESIA

14 P.T.Sioen Indonesia JAKARTA INDONESIA

15 Donegal Protective Clothing DONEgAL IRELAND

16 Roltrans group Polska KONIN POLAND

17 Siofab SANTO TIRSO PORTUgAL

18 Roland International TEgELEN ThE NEThERLANDS

19 Sioen Tunisie - CTS - Sioen Zaghouan TUNIS TUNISIA

20 Roland Ukraine RIVNE UKRAINE

21 Roland Tilts UK BRADFORD UNITED KINGDOM

22 Mullion Manufacturing Ltd. SCUNThORPE UNITED KINGDOM

23 Roltrans group America TEXAS UNITED STATES

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1522

21

9

11

17

19

16

20

10

18

12

14

13

8

23


2000Brand new spinning mill in Mouscron (Belgium),

new sales office in Shanghai (China), joint

venture in Portugal, extra apparel production

capacity in Tunisia, agreement with US

distributor.

2001Acquisition of Nordifa S.A., Belgium (industrial

filters for fluids, dedusting and membrane

filters), Mullion Manufacturing Ltd., UK (wet

suits, thermal survival suits, lifejackets), SLP

productions, France (forestry protective

clothing) and Ets. Roger Vidal et Fils, France (fire

fighters clothing).

2002At Mouscron (Belgium): spinning capacity

doubled, takeover of transfer and direct coating

line, increases coated textiles range, new line

producing transfer coated material for airbags.

New textile architecture line. Takeover of Bacam,

France (camouflage canvas and multispectral

camouflage nets).

2003Takeovers of Pennel, France (technical textiles

for automotive applications) and Roltrans

Group, NL (truck tarpaulins and curtains).

History 2000-2007

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2004Acquisition of 25% minority interests in Coatex

(Belgium), modernization investments at Saint

Frères (France).

2005New large-scale showroom and R&D lab

inaugurated at Ardooie HQ site, Board of

Directors adopts Corporate governance Charter,

Michèle Sioen appointed CEO.

2006In pigments field: new pigment paste

production hall at Bornem site, acquisition of

colouring pastes activities of Siegwerk Benelux,

acquisition of Richard Colorants (France).

2007Acquisition of Fillink (Belgium), specializing in

inks for wide and super wide format printers.

Swap clariant PV-pastes against granulates.

Building work starts on new EUR 20 million

calendering line at Mouscron.

Expansion of Veranneman production line

(online coating, open structure textiles), and

new fully automated warehouse at Ardooie to

be operational in 2008.

New plant opened in Ukraine.


“Expertiseright down the line” As a fully integrated group, Sioen covers every

stage of the production and application of

coated textiles, from spinning to weaving to

coating and on to specialist processing. This

includes all five main coating processes, each

with its own applications and markets.

1. Spinning of polyester

high-tenacity yarns

2. Weaving of the

yarn into various base

textiles

3. Preparation of

colourings (pigment

pastes, varnishes

and dyes) = Sioen

Chemicals

5. Coated fabrics

sold as semi-finished

products to external

manufacturers

6. Apparel Division -

Production of protective

clothing for industrial

and leisure use

7. Industrial Applications

Division – Processing

of heavy-duty coated

textiles for specialist

markets

4. Application of coatings, using five different technologies (direct

coating, transfer coating, online coating, extrusion coating,

calendering)

BASE MATERIAL

COATINg STAgE

FINISHING

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(1) Quoted percentages have been rounded, and reflect the situation at 31 December 2007 (2) Via Sioen Coating nv(3) The official name is Sioen Coated Fabrics Shanghai Trading Ltd.(4) The official name is Gairmeidi Caomhnaithe Dhun na nGall Teoranta.(5) 5% via P.T. Sungintex (6) Via Monal s.a. and Roltrans Group b.v. (7) The Richard group was acquired in October 2006 (8) In 2007 Richard s.a.s. resp. merged with Copidis s.a.s. and Astra Colorants s.a.(9) Fillink Technologies was acquired in January 2007

SIOEN INDUSTRIES NV (1)

COATINg APPAREL INDUSTRIAL APPLICATIONS CHEMICALS

Sioen Coating n.v.Direct Coating Belgium

99% Sioen n.v.Apparel Belgium

25% Coatex n.v. Processing of coated fabrics andfilms Belgium

100% Inducolor s.a.Ink production Belgium75% (2)

Saint Frères s.a.s.Direct Coating France

Confection Tunisienne de Sécurité s.aApparel Tunisia

90%10%(2)

European Master Batch n.v. Master batch production Belgium

100% Saint Frères Confection s.a.s.Heavy-duty manufacturing France

Sioen Coating Distribution n.v.Sales Office Belgium

Donegal Protective Clothing Ltd (4) Apparel Ireland

100% Sioen Nordifa s.a.Filter production Belgium

Richard s.a.s. (7) (8)

Paste production France

Fillink Technologies n.v. (9)

Sioen Fabrics s.a. Weaving/Transfer Coating Belgium

100% Mullion Manufacturing LtdApparel U.K.

100% Roland International b.v. (6)

Manufacturing of truck tarpaulins

Sioen Fibres s.a. Spinning Belgium

95% P.T. Sioen IndonesiaApparel Indonesia

Roltrans group America Inc.USA

Sioen Shanghai (3)

Sales office China95% P.T. Sungintex

Apparel IndonesiaRoland Planen gmbhgermany

Siofab s.a.Transfer Coating Portugal

100% Sioen Fibres s.a.Central Distribution Unit Belgium

Roltrans group Polska sp.z.o.o.Poland

TIS n.v.Weaving Belgium

Sioen France s.a.s. Sales office France

Roland Ukraine Llc (7)

Roland Tilts UK Ltd.

Veranneman TT n.v.Weaving/Direct Coating Belgium

100% Sioen Tunisie s.a.Sales office Tunisia

Pennel Automotive s.a.s.Calendering France

99% Sioen Zaghouan s.a.Apparel Tunisia

95% Sioen USA Inc. (5)

Sales office

99%

100%

100%

100%

100%

100%

100%

100%

99%

100%

89%

100%

5%

5%

100%

100%

100%

100%

100%

100%

100%

100%


GrowthWell-managed, profitable growth dynamizes a company, imparts a sense of

pride and purpose and facilitates access to outside financing. Everyone benefits,

customers and employees as much as shareholders and management.

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“It is essential that we work together to ensure the future

growth of our international group”

Michel Devos, CEO non direct coating

companies


ThE PRODUCT – TEChNICAL COATED TEXTILES

Coating is covering a base layer (knitted, woven,

non woven PA or PES fabric) with a protective

layer (PVC, PU, silicon or another plastic), to

make the material waterproof, fireproof, anti-

static, breathable, printable, and so on, and to

give protection against wind, water, cold and

chemicals. Sioen has been coating technical

textiles for nearly 50 years.

PRODUCTION - VERTICAL INTEgRATION

Sioen handles the entire production process:

spinning, weaving, pigmenting and coating.

Spinning - Sioen has one of the most

modern spinning mill in the world at Mouscron,

where every year approx. 16,000 tons of

polyester granules are processed into high-

tenacity yarns. A portion of the yarns is twisted

in the twisting plant, the rest goes directly to

our weaving mills.

Weaving - The yarn is supplied as raw

material to the three weaving mills, each

with its own specialization: sailcloth, open

structure textiles, high tenacity textiles, airbag

textiles, etc. The fabrics all meet high technical

requirements for tensile strength and tear

resistance, fire retardency, light fastners,….

Sioen has also secured certificates of approval for

automotive applications.

Sioen also produces non-woven needle (Liège,

Belgium) which is used, among other things, as

a support in extrusion coating.

Preparation of coating layer/colouring

The coating layer can consist of PVC,

polyurethane, silicon or other polymers, which

are sourced from major chemicals companies.

Coating Division

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Sioen produces its own pigment pastes for

colouring the coating layer. Pastes are mixed in

fully automatic paste kitchens and then brought

to the coating line by robots.

CoatingSioen Industries applies five main coating

processes, at seven coating plants (4 in Belgium,

2 in France and 1 in Portugal), with some of the

most advanced production lines in the world.

Direct coating:

The PVC coating paste is directly applied to the

fabric in four layers.

Applications: curtains, tilts

and tarpaulins for trucks,

railway wagons and containers

and other uses, sports mats,

swimming pool covers, etc.

Transfer coating:

The coating paste (PU, silicone, etc.) is applied

to the fabric via a paper support.

Applications: protective

clothing, outdoor sports

clothing, shoe protectors,

mattress protectors, airbags,

etc.

Online coating:

here the open weave fabric passes directly from

the loom into a coating bath.

Applications: geogrids,

swimming pool covers,

reinforcement nets, windbreak

nets, filters, etc.

Extrusion coating:

This technique allows other

base materials (textiles, non-

woven, knitted fabrics, etc.)

to be coated with various

polymers.

Applications: ventilation tubes, pond liners,

greenhouse foil, sewer renovation, etc.

Calendering (rolling):

TPO (thermoplastic polyolefin)

and PVC films are rolled to

give the required motif/

texture.

Applications: car dashboards,

door panels, sunvisors, wall coverings, pond

liners, etc.


Tarpaulins and side curtains (direct and extrusion coating): The

market for PVC coated tarpaulins and side curtains for trucks and railway wagons is the

most important segment.

Sioen is the market leader here with an estimated 50% market share.

This market, for both new and replacement tarpaulins and side curtains, is mainly

located in Western Europe, where the large trailer builders are situated. The use of

coated fabrics has not yet become customary in the American market, where trailers are

usually hard-bodied.

Geotextiles and roofing (online coating): Technical open structure

textiles are used as reinforcement netting for roads, roofs and all types of plates. With

approximately 60% of the market Sioen is the market leader in this segment. geographical

expansion is one of the goals for the coming years.

Automotive (direct coating, transfer coating, calendering): Around 8% of

the Coating division’s production is for the automotive sector: TPO and PVC films

and technical textiles for car interiors (dashboards, door panels, sun visors, gear lever

protection, seat backs, trunk canvas etc.) and airbags. With Pennel Automotive, Sioen

has an important part of the French market for technical textiles for cars.

Sioen profiles itself as a full service supplier in the airbags market. It weaves PA yarn into

a carrier and coats it in one of its plants. As an extra service Sioen cuts the fabric with

high tech laser cutters in its Poperinge plant (Belgium, Coatex, a part of the Industrial

Applications division).

Flexible, breathable technical textile (transfer coating): For

protective clothing and mattress covers. With its modern production system, large runs,

R&D and know-how and the advantages of vertical integration, Sioen can hold its own in

this competition-sensitive market (Asia).

Swimming pool covers and liners (direct coating, extrusion coating). Sioen

is by far the largest global supplier of technical textiles for this segment. The greater

proportion of the turnover comes from France, where several swimming pool cover and

liner producers are located.

Sign and textile architecture (direct, extrusion and online coating):

Sign is the collective name for printable technical textile that can be used for publicity

banners. Textile architecture covers technical textiles for tents and structures.

MAIN PRODUCT MARKETS

More than half of the total production of the coating

division is sold as semi-finished products to external

customers (distributors and manufacturers), for

use in the areas given below. It is difficult to give

meaningful figures for sales in each sector as these

can vary considerably from one year to the other.

The tarpaulin and side curtains sector is by far the

largest, accounting for around 40% (in some years

more – in 2007 over 50% in response to strong

demand) of external turnover of the Coating

division. The reamining 60% is divided amongst the

other markets.

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COMPETITIVE POSITION

Sioen accounts for over 40% of all European

coating capacity. The remainder is shared

among one major german coater and various

smaller and increasingly specialized (by product

or by region) competitors in Austria, France,

germany, Italy, Scandinavia, Spain, etc., certain

of whom go opportunistically in and out of

markets from one year to the next.

Tarpaulins and truck covers are the largest application for heavy coated

fabrics in Western Europe, with an estimated market volume of 90 million m² in 2006,

expected to reach 122 Mm² by 2010. Sioen and another company dominate this market.

Billboards is the second largest application in the Western European heavy coated

fabrics market (estimate: 45 Mm²) . Sioen has a smaller part of this market, which is growing

by 3 to 4%. With a lower level of technicity, this sector faces competition from Asia.

Geotextiles (around 20 Mm² worldwide) is a

steadily expanding market. Sioen is world market leader

in this segment.

In automotive, the new calendering facility

will enable Sioen to be more flexible and expand its

geographical market.

In the market for flexible, breathing textiles, where there is strong competition from

Asia, Sioen is competing through quality, vertical

integration and by entering new markets.

The pool covers market, in which Sioen is the

market leader, is steady at around 20 Mm².

Textile architecture (20 Mm²) is one of the fastest growing markets for coated

textiles worldwide. Entry barriers are the high technicity of the product and the requirement to

give at least 5-year guarantees. One competitor operates exclusively in this market and has a

significant share of this market. Sioen is waiting for additional capacity to expand in this market.

GEOGRAPHICAL MARKETS

Over 80% of the Coating Division’s turnover

comes from the traditional Western European

countries, led by France, Germany, the Benelux

and Great Britain. Eastern Europe and Asia are

increasingly important markets.

The geographical distribution reflects the

location of final producers. Several large trailer

manufacturers are based in germany and the

UK, germany has a rich tradition of using geo-

textiles, France has a large number of swimming

pool cover and mattress cover makers. The largest

digital printing works are based in Western Europe

and Pennel Automotive has a long history of

contacts with French car producers. Technical

textiles for digital printing, truck curtains and

tarpaulins are also finding their way to Eastern

European customers.


NEW PRODUCTS AND DEVELOPMENTS

• In 2007 Veranneman Technical Textiles

invested in a new production hall on the

Ardooie site (Belgium). The first new looms

should be working by mid-2008. This

investment doubles our capacity in open

structure fabrics (anchoring nets, geotextiles,

rooftops, windbreak nets and advertising

banners).

• Next to this production hall, Sioen will enlarge

its coatings warehouse for base materials

and finished goods. This allows Sioen to

increasingly group products at Ardooie prior to

expedition to customers.

• St Frères Enduction (Flixecourt France) has

added a coating and a lacquering line to the

end of its existing coating line. This will come

up to speed in 2008. This additional capacity

will also enable Sioen to expand, among other

things its architectural textile activities.

• In 2007 work started on a major EUR 20

million investment in a new production

line on the Mouscron site (Belgium). When

fully operational in 2008, this will produce a

wide range of films and foils for ponds and

reservoirs and for automotive applications like

dashboards, sun visors and side panels. Sioen

will now be able to deliver pond foils directly

to its Coatex (Belgium) processing subsidiary,

instead of purchasing them externally.

SALES ORgANIZATION

In addition to the permanent sales staff

operating out of the Ardooie, Mouscron and

Roubaix plants, and a number of local agents,

the Coating division has its own sales offices in

Germany, France and China.

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ThE PRODUCT

Sioen Chemicals produces pigment pastes, inks,

varnishes, colour powders and colour dispersions

at two locations in Belgium and one in France.

Pigment pastes are used for colouring

polyurethane and PVC coatings, epoxies, acrylic

resins and silicones. These find their way into

a huge range of end products, including vinyl

flooring, wall coverings, silicone kits used in

construction and interior decoration, kitchen

sponges, mattress and furniture liners, shoe soles,

bathtubs, sanitary facilities and luxury yachts.

Sioen Chemicals also produces specific

flame retardant pastes. It is one of the only

manufacturers in the world of high tech pastes

that render textile invisible to military infrared

cameras.

Sioen Chemicals division


Inks. Sioen Chemicals produces water based,

solvent based and UV inks for wide and super

wide format digital printing and decorative inks.

Varnishes. Sioen Chemicals offers a wide range

of colourless water and solvent borne and UV-

curable varnishes and lacquerings. Applications

include liquid varnishes for printing inks, top

coat varnishes protecting decorative surfaces,

and specific technical products such as inhibitor

varnish for special patterns in decorative

applications.

Colour powders and colour dispersions. These

are used to dye paint, plaster, wax, cement, etc.


16% of all Sioen Chemicals products are

used within the Sioen group. The balance is

sold to a wide variety of customers, mainly in

Western Europe, from the Bornem (Belgium)

headquarters and the other subsidiaries.

COMPETITIVE POSITION

Sioen Chemical’s organisation and the fact of

having the Sioen group as its largest customer,

give it a scale advantage over the relatively

fragmented competition. In addition, the

personalized service and close partnerships with

the customers play an important role in the

success of this division.

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NEW DEVELOPMENTS

In January 2007, Sioen acquired Fillink

Technologies n.v. This Belgian company is

specialized in eco-solvent, solvent and UV inks for

wide and super wide format digital printers. Its

experience with unique product formulations and

wide market knowledge represent a real added

value for Sioen Chemicals.

In September 2007, Sioen acquired the PVC and

PU paste business of Clariant at St. Jeoire (France),

giving it better access to the industrial paste

business in France and Germany.

From 1 January 2008, Sioen Chemicals will operate

as a separate division, under Pascale Sioen as CEO.

“We value personalized service and close partnerships with our customers”

Pascale Sioen, CEO Sioen Chemicals


ThE PRODUCT

Sioen is a leading producer and seller of

protective clothing for industrial and leisure use.

In our own production plants we process both

internally and externally produced textiles into

high quality protective clothing.

The Industry range accounts for the greater part

of the Apparel division’s turnover. It includes

protective clothing against rain, wind and cold,

but also highly technical protective clothing

against electric arcs, welding flames, extreme

cold and chemicals.

With sustained commercial pressure on low-

end markets, Sioen is focusing strategically on

products and applications with a high degree

of technical complexity such as flotation suits,

fire fighting suits, protective clothing for the

petrochemicals and forestry sectors, etc. This

technical complexity means that competition

is more limited, whilst demand is rising as

European standards and regulations become

increasingly stringent.

DESIgNAND PRODUCTION

With an eye for detail and expert knowledge of

production techniques and raw materials, our

creative designers and textile engineers develop

functional and comfortable protective clothing

which meets all legal regulations and technical

requirements.

Apparel division

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Each design is produced carefully to the strictest

quality standards in one of our modern production

centres in Tunisia, Indonesia and elsewhere. We are

continually investing in the latest technologies to

enable us to meet the highest quality standards.

Sioen has the most recent ISO 9001/ version

2000 certification and the Apparel division works

according to the AQUAP standards for military

apparel (NATO Military Certificate of Conformity).

APPLICATION AREAS

The application areas are as divergent as they

are extensive: Sioen protective clothing is used

in the petrochemicals industry, the food sector,

road construction and public works, the building

sector, agriculture, gardening and the fisheries

sector. Sioen serves public authorities (municipal

services, police, army, postal services, etc.) and

private companies.

Sioen outdoor leisurewear is aimed mainly at

hunters, anglers and golfers (Baleno trade mark).

We also produce sportswear for horse riders,

motorcyclists and walkers. Sioen is also a valued

partner for certain skiwear brands.


The vast majority of products are sold in Sioen’s

traditional European markets (France, Belgium

UK, the Netherlands and Germany).

“We are continually investing in

the latest technologies to

meet the highest quality standards”

Bart VervaeckeCEO Apparel Division


COMPETITIVENESS

Protective clothing is essentially a series of niche

markets, generally subject to stringent and

complex performance specifications. Forty years’

experience of safety standards across Europe and

sophisticated test equipment place the Apparel

division in a strong competitive position in these

different markets.

DEVELOPMENTS DURING 2007

In 2007 a number of government institutions

and private companies placed major orders

for their company and work clothing. New

contracts won in 2007 include:

• a 3-year contract to provide intervention

jackets and trousers for all Belgian fire fighters.

• fire fighting suits for the national federation of

fire fighters of Luxembourg.

• protective clothing to Austrian electricity sup-

plier Wien Strom. Wien Strom’s safety specifica-

tions are some of the toughest in Europe.

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• sets of rain garments (jacket and trousers) to

the Swedish army.

• T-shirts and fleeces for workers in all Belgian

Coca-Cola plants,

• Fleeces and high visibility trousers and jackets

for Scottish ambulance personnel.

SALES AND DISTRIBUTION

The sale of protective clothing is centralized at

the headquarters in Ardooie, from where our

main sales team operates. Sioen Apparel also has

a number of local sales units in France, Scandi-

navia, Indonesia, germany, Ireland and the UK

serving local markets.

Finished products are shipped from the various

production centres to a fully automated dispatch

and distribution centre in Mouscron, and from

there to customers.


PRODUCT

The Industrial Applications division processes

heavy-duty coated textiles (produced mainly

in-house) into a number of finished and semi-

finished products.

MARKETS

The division covers a wide range of markets,

including automotive, leisure, the food industry,

heavy industry and chemicals, transport and

mining.

PROCESSINg

Plants in France, Belgium, Germany, Poland

and Ukraine each provide their own specialty

products and services.

Kadors: Sioen processes in-house coated

technical fabric into kadors (flexible tubes

enclosed in a technically coated fabric, into

which profiles can easily be inserted, for

example for caravan awnings).

Sio-steel: Sio-steel is a patented composite

consisting of a PVC coated steel net and double-

Industrial applicationsdivision

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sided PVC coated polyester fabric, used primarily

for intrusion-resistant truck and train tarpaulins

and side-curtains.

Carapax: Whenever the roof curtain of a

truck is opened, the cables hang down into

the trailer’s loading area and get in the way.

Carapax is an alternative to traditional roof

curtains, giving additional resistance to

the trailer superstructure and meeting the

requirements of EN 12642XL. Carapax is a

combination of aramide and technical coated

textile.

Cutting: Cutting of technical textiles for the

automotive industry (airbags, door panels, sun

visors, etc.).

Pond and dam liners: Cutting, splicing and

packaging of sheeting for recreational ponds

and industrial reservoirs, water basins and

cultivating beds, for customers worldwide.

Filters and filter cloths: Sioen specializes in

producing needle felt and derived products

such as filter cloths and complete ready-to-use

filter systems. These filters are used in the food

industry (water and air treatment in sugar

Airbags CarapaxNordifa


refineries, breweries, etc.), heavy industry

and metallurgy, mining, petrol stations, paper

processing, cement companies, the chemicals

industry, municipal water purification and

after-burning plants. Nordifa recently started

producing acoustic and thermal insulation

panels.

Tents, covering systems, roll-down shutter

doors, separating walls and silos: A small

percentage of our production of technical

textiles is processed into finished and semi-

finished products for high-tech applications for

the army, the railways, the airline industry, and

the construction sector.

Camouflage fabric: Sioen specializes in the

design, production and sales of camouflage

fabric and multi-spectral camouflage netting.

Worldwide, there are only a few companies

active in this high-tech market, that calls for

extensive technical knowledge and research and

development.

Truck curtains, roofs and tilts: Roland

International (production units in Germany,

Poland, Ukraine) is the world’s largest producer

of truck curtains, roofs and tilts, with a 45%+

market share in curtains for new trucks. Acquired

by Sioen in 2003, the company focuses on large

volume, batch production.

GEOGRAPHIC MARKETS

Over 60% of sales in this division are in

germany. This is because the largest trailer

builders are in germany. Other automotive

applications (cut airbags, door panels, etc.) also

find their way to germany. The remaining 40%

is divided between France, Belgium, the UK, the

Netherlands, Eastern Europe and the USA. The

two latter areas both offer considerable scope

for growth.

SALES AND DISTRIBUTION ORgANIZATION

Sales and distribution channels differ from one

product to another. Increasing emphasis is being

placed on cross-selling.

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Camouflage nets Siosteel


PeopleThe name and fame of Sioen Industries is growing. Controlled expansion of the

company is one of the reasons, together with Sioen’s reputation as a reliable trading

partner. The human capital at Sioen Industries is an important link here.

Our employees help make sure that promises are kept and that our products and

services meet customers’ expectations and demands.

Through many years of dedication, our employees have built up a huge fund of

skills. They put their heart and soul into their work, constantly offering creative

solutions and alternatives.

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“Quality employees are

vital to our future”

Christophe Desmedt, Chief hR Officer


On December 31, 2007 Sioen Industries

employed 4.869 people in 16 different

countries: Belgium, China, Germany, France,

Ireland, Indonesia, Portugal, Tunisia, UK, the

Netherlands, Poland, USA, Austria, Denmark,

Finland and Ukraine. This compares with 4.869

at the end of December 2006. 4.125 (85%)

were blue collar and 744 were white collar

(15%) workers.

The large number of workers in Indonesia

and Tunisia are all employed in the labour-

intensive apparel division. As rationalization

and automation continue in this industry, there

will be less call on manual operatives and more

on highly qualified personnel.

In the other capital intensive divisions, most

workers are employed in Europe, with Belgium,

Poland and France as key countries.

WORKINg AT SIOEN

Recruitment and selectionWe recruit through various channels:

newspapers, our own website, dedicated jobsites and selection bureaus. Another increasingly important channel is temporarly employment agency work.The company is present at job fairs and organizes company visits for students and recent graduates.

Sabine, HR department“I enjoy interviewing people back at the office with whom we’ve made a first contact at a job fair. They constantly refer back to this first conversation, which is much less formal than a real job interview.”

Focuson human resources

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Increasing scarcity of skilled labour in northern

Europe is requiring the Sioen group to pay

greater attention to recruiting and retaining

quality employees. Sioen seeks to create a

stimulating working climate in which those

who want can develop their capacities to the

full.

The production companies are largely

unionized, and dialogue with the various works

councils is good.

Sioen has recently created a hR function at

executive level, reporting directly to the CEO.

Sioen is listed by ETHIBEL, that screens

companies on internal social policy,

environmental policy, external social policy

and ethical economic policy.

WORKINg AT SIOEN

Starting outAnyone starting work at Sioen receives detailed

information on the group plus individual supervision from team heads, colleagues and department heads. Every employee receives a regular annual assessment.

Yves, sales manager“It’s already five years since I started as sales manager in the Coating Division. Then it was total immersion, and fast. The production head showed me the various coating lines, the product manager explained the product line, the marketing manager introduced me to the different sales and marketing tools, the R&D manager told me how research and development works at Sioen. I received a crash course in logistics from the COO, and had the IT system explained to me by the computer people.”

WORKINg AT SIOEN

Personal development and growth

Sioen has always practiced open communication. This keeps us in tune with people’s wishes, aspirations and needs. Vacancies are filled internally wherever possible. Employees are encouraged to train further.

Franky, sales director Benelux“I started in 1998 as sales manager in the Apparel division. I was young and dynamic and looking for challenges. I’ve never been short of these at Sioen. First as marketing manager, then in new product development, and then back to sales. I am now in charge of Benelux with a 12-person team.”


WORKINg AT SIOEN

Good working climate and relations

Creating a good working climate is of course everyone’s business. Sioen encourages activities that bring everyone closer together: an inter-plant football tournament, a paintball activity or a bowling evening. Management tries to be there, and sometimes dips into its pocket. An internal news bulletin keeps everyone up-to-date on new products, expansions, takeovers, projects, as well as staff festivities, Christmas parties, etc. Management also pay special attention to marriages, births and retirements.

Rita, purchasing department“It doesn’t have to be a party every day, but an activity with colleagues from time to time is good for the working atmosphere. Sometimes we all go out for a drink on a Friday evening or bowling or ice skating. In so doing we get to know each other in a different way, we can chat informally, also about work. All the better when the boss joins us from time to time.”

WORKINg AT SIOEN

Open communication We try to communi-cate openly and in a

spirit of confidence. Our flat company structure makes it easier to listen to people. New ideas, initiatives or grievances are quickly aired.

Claude, shift leader“I’ve been working for 30 years as shift leader at Sioen, and am also a trade union shop steward. I have always had direct, open communication with my boss, the production director and the CEO. This allows us to nip problems in the bud and stimulate initiatives to improve the production process.”

Personnel per division

Industrial Applications 19%

Coating 15%

Chemicals 4%

Apparel 61%

Groupe 1%

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WORKINg AT SIOEN

Our sectorsSioen’s activities fall into two major sectors, textiles

and chemicals. Since the big crisis in the textiles sector a generation ago, the sector still battled with a negative image. This is unfair, as today’s textiles companies are technically advanced, research-driven enterprises. Many, including Sioen, are profitable and expanding.

Kamiel, shift leader“They told me I was crazy going to work in the textile industry. That was 35 years ago, and since then it’s been a steady job. With a bit of luck, I’ll be around till my retirement.”

WORKINg AT SIOEN

Global commitmentSioen companies work in widely differing

social, political and economic environments.We seek to conduct our business responsibly,abiding by the law, supporting human rights,respecting the environment and creatingjobs. Bettering material progress of our hostsocieties by conducting our business aseffectively as possible is the most importantsocial contribution our group can make.

Jafaar, IndonesiaI have been in charge of the technical aspects of the Sioen factory in Jakarta since 10 years. I enjoy the work, because of the many technical developments and constantly changing fabrics. Since this year we have a beautiful new factory that makes it even more pleasant to work in.

Hayet, TunisiaI am in charge of the department where welded garments are made at the CTS plant in Tunisia. I’ve been with the company for 30 years now. Every day I

and my colleagues enjoy our challenging job.

Tunisia 15%

France 7%

Indonesia 40%Other countries 5%

Belgium 20%

Poland 12%

Personnel per country


Sioen has a concerted focus on knowledge,

innovation and creativity: on new materials, new

production processes, new services, new niches,

new markets and new requirements. Knowledge

is our fundamental principle and our real capital.

Sioen organizes its research and development

activities around three main areas: product

development, process improvement and

technological innovations. The products we

develop must both meet customer expectations

and create added value for the business. Process

optimization made possible by technological

innovation is making a substantial contribution

to the group’s effectiveness.

A “spider’s web” R&D structure

Keeping ahead of the market requires ongoing

investment in research and development. At the

group’s central R&D centre at its headquarters

in Ardooie, professionals work on product

development and innovation and on process

improvement with state-of-the-art facilities. 50

people are involved in R&D and testing. Direct

expenditure on R&D and testing amounted

in 2007 to EUR 7,354,49 (= 1.9% of turnover)

including production time and related costs.

As well as its central R&D unit, Sioen has ten

other research teams at major production sites,

conducting specific research and product testing

in more restricted areas. Work done at the

production sites is coordinated and managed

from the central R&D unit in Ardooie.

Sioen’s R&D team cooperates closely with

national and international research institutions,

universities and scientific institutes in Belgium

and abroad. This includes a special working

relationship with the Textile and Textile

Engineering department of the University of

ghent.

Research & Development

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Environment

Top flight test facilities

Sioen’s R&D centres and labs are fully equipped

with the latest testing equipment. Testing for

tear and breaking strength, flame retardancy,

chemical resistance, water column, colour

fastness, ageing and so on are all performed in-

house, and Sioen can stand comparison with the

world’s top research institutes in this area. The

ability to conduct flame tests (EN367), and

thermal radiation tests (EN ISO 6942) in-house

has led to Sioen being one of the first European

producers certified for the new EN469:2005

standard for fire fighter clothing, and opens

the way for Sioen to play a leading role in fire-

retardant garments. Sioen has its own ballistic

laboratory including a shooting range and

evaluation equipment.

For Sioen, care for the environment is a constant

concern. As a responsible corporate citizen, the

group complies with all legal requirements. As a

market leader it also seeks to operate a proactive

environmental policy, investing every year to

protect people, nature and the environment,

applying stricter standards than those required

by law.

The group is making increasing use of recycling

and energy recovery technologies. Coating

sites are fitted with distillation and combustion

towers, which minimize exhausts and recover

hot air which can be used to pre-heat ovens. At

Ardooie, contaminated solvents from cleaning

paste tubs are distilled for re-use.

In 2007, an additional heat exchanger came into

use at Ardooie. The new extension at Ardooie

(Veranneman production hall plus storage

warehouse) is to be fitted with electricity-

generating solar panels.

In addition to developing new products,

technologies and processes, the R&D team is

also intensively engaged in researching and

developing recycling options. Possibilities

include the recycling of used technical textiles in

bags, insulation materials, mud flaps and so on.

Sioen is developing its own recycling

programme for used coated textiles, more

especially for truck tarpaulins and side curtains.

“Knowledge is our real capital”

Joost WilleR&D Manager Coating division


QualityQuality means satisfying the customer

Quality means satisfying the customer‘s

expectations in terms of products and delivered

services. Quality is not confined to those

departments which come into direct contact

with the customer. Quality is a key principle for

all employees of the Sioen Industries group as

they perform their work, whether in production,

sales, accounting, customer service, R&D or

purchasing. Every employee contributes to

quality in their own field. Our quality policy

emphasizes constant quality monitoring and

improvement, with the customer as the ultimate

judge of all our efforts.

Quality monitoring

The quality of the delivered product must meet

the customer’s most stringent criteria. We

therefore not only inspect the final product, but

monitor for quality throughout the production

process.

This starts with the screening of suppliers

and their raw materials. It continues with

monitoring, testing and controlling every stage

of the production process, from yarn to finished

product, using the latest technology like camera

supervision of fabric quality.

Certificates

The Apparel Division has met ISO 9001

standards since 1996 and now complies with the

most recent ISO 9001 version 2000 regulations.

It also works according to the AQUAP-120

standards for military tenders. Thanks to a

constant concern for quality the Coating division

was one of the first coaters to acquire the ISO

9001 certificate.

The five areas of focus for the ISO 9001 standard

– quality management system, management

responsibility, management of resources,

production of the product, and measurement,

analysis and improvement – form the core of

Sioen’s integrated quality assurance system.

“Every co-worker contributes to

quality”

Ivan DeceuninckTechnical Director Apparel

division





real

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Profile 1




sioen worldwide 12

History 2000-2007 14


Group structure 17



apparel division 28




environment 43

Quality 44




Group structure 9





definitions 79

addresses 80








Strategy

Growth

People

Innovation


t: +32 51 74 09 80 - F/ +32 51 74 09 79

Annual report 2007





real

isat

ion:

ww

w.c

omfi.

be


Profile 1




sioen worldwide 12

History 2000-2007 14


Group structure 17



apparel division 28




environment 43

Quality 44




Group structure 9





definitions 79

addresses 80








Strategy

Growth

People

Innovation


t: +32 51 74 09 80 - F/ +32 51 74 09 79

Annual report 2007

Documents

Annual report 2007 General