realisation: www.comfi.be
Annual report 2007
F i nanc i al c a l e nd ar I nv e s t o r r e l at i o ns
Friday, April 25, 2008
General shareholders meeting of 2008
Friday, May 16, 2008
Trading update 1 st quarter 2008
Friday, August 29, 2008
Announcement of 1 st half-year results 2008
Growth
Wednesday, October 31, 2008 Trading update 3 rd quarter 2008
mid-March 2009
Announcement of 2008 full-year results
Friday, April 24, 2009 General shareholders meeting
Innovation
Strategy
FINANCIAL INFORMATION AND INVESTOR RELATIONS For all further information, institutional investors and financial analysts should contact:
People
Geert Asselman - Chief Financial Officer Fabriekstraat 23 - B-8850 Ardooie T: +32 51 74 09 80 - F: +32 51 74 09 79 E: corporate@sioen.be
Fabriekstraat 23 - B-8850 Ardooie - Belgium T: +32 51 74 09 80 - F/ +32 51 74 09 79
Contents Corporate information Part I Profile Strategy Mission & Strategy Letter to the shareholders Innovation Our products Sioen worldwide History 2000-2007 Expertise right down the line Group structure Growth Coating division Chemicals division Apparel division Industrial applications People Human resources Research & development Environment Quality
1 2 4 6 8 10 12 14 16 17 18 20 25 28 32 36 38 42 43 44
Corporate information Part II Letter to the shareholders Report from the Board of Directors Group Structure Share Information Corporate Governance General information
3 5 9 10 12 16
Financial overview
20
Definitions Addresses
79 80
Only the English version of the annual report has evidential value.
realisation: www.comfi.be
Annual report 2007
F i nanc i al c a l e nd ar I nv e s t o r r e l at i o ns
Friday, April 25, 2008
General shareholders meeting of 2008
Friday, May 16, 2008
Trading update 1 st quarter 2008
Friday, August 29, 2008
Announcement of 1 st half-year results 2008
Growth
Wednesday, October 31, 2008 Trading update 3 rd quarter 2008
mid-March 2009
Announcement of 2008 full-year results
Friday, April 24, 2009 General shareholders meeting
Innovation
Strategy
FINANCIAL INFORMATION AND INVESTOR RELATIONS For all further information, institutional investors and financial analysts should contact:
People
Geert Asselman - Chief Financial Officer Fabriekstraat 23 - B-8850 Ardooie T: +32 51 74 09 80 - F: +32 51 74 09 79 E: corporate@sioen.be
Fabriekstraat 23 - B-8850 Ardooie - Belgium T: +32 51 74 09 80 - F/ +32 51 74 09 79
Contents Corporate information Part I Profile Strategy Mission & Strategy Letter to the shareholders Innovation Our products Sioen worldwide History 2000-2007 Expertise right down the line Group structure Growth Coating division Chemicals division Apparel division Industrial applications People Human resources Research & development Environment Quality
1 2 4 6 8 10 12 14 16 17 18 20 25 28 32 36 38 42 43 44
Corporate information Part II Letter to the shareholders Report from the Board of Directors Group Structure Share Information Corporate Governance General information
3 5 9 10 12 16
Financial overview
20
Definitions Addresses
79 80
Only the English version of the annual report has evidential value.
15
30 25
10
20 15
5
10 5
0
0 -5 Group profil Consolidated Cashflow EBIT EBIT/Turnover Cashflow/Turnover
CONSOLIDATED KEY FIGURES (in millions of euros) (1)
Profit & Loss Net sales Operating profit (EBIT) Financial result Profit on ordinary activities before taxes Profit on ordinary activities after taxes EBIT (8) EBITDA (9) Cashflow (4) Net profit (group share) Depreciation Personnel costs Number of employees (in units) Balance sheet Equity Long-term financial debt Net financial debt (2) Balance sheet total Working capital (3) Net investment in tangible fixed assets (10) Fixed assets Ratio’s EBIT (8) EBITDA (9) Net profit margin (7) Cash flow/net sales Liquidity (current assets/current liabilities) Solvency (equity/balance sheet total) Net financial debt/equity Return on equity (5) Return on capital (6)
2007 EUR
2006 EUR
2005 EUR
2004 EUR
2003 EUR
2002 EUR
2001 EUR
2000 EUR
1999 EUR
1998 EUR
1997 EUR
380,4 38,8 (8,4) 30,4 19,2 38,8 60,5 42,8 19,2 19,6 72,6 4 869
339,4 25,9 (6,6) 19,3 12,2 25,9 44,8 31,5 12,2 17,9 67,6 4 687
316,2 25,5 (5,5) 20,0 13,6 25,5 43,6 29,5 13,6 17,9 63,5 4 645
309,8 27,0 (7,3) 19,6 13,1 27,0 44,8 31,1 12,3 17,8 61,7 4 500
272,8 27,2 (11,0) 16,2 8,9 24,4 52,8 37,3 8,6 22,1 54,5 4 689
237,7 24,6 (8,7) 15,9 11,0 23,1 42,8 30,2 10,0 19,8 47,0 4 271
226,0 33,8 (6,7) 27,1 17,3 32,4 50,9 35,8 16,9 18,6 42,8 3 924
192,4 32,6 (3,0) 29,6 19,0 31,5 45,0 32,5 18,8 14,1 34,5 3 420
161,1 28,4 (1,3) 27,1 17,6 27,3 37,8 29,5 18,6 11,6 30,9 2 857
141,2 19,6 (1,7) 17,9 12,3 19,0 27,1 20,7 12,2 7,1 24,1 2 555
107,9 15,0 (1,2) 13,8 9,1 14,5 19,6 14,2 9,0 4,7 17,3 1 552
148,6 117,1 145,9 378,1 126,2 21,1 151,4
135,8 128,5 147,8 371,8 115,2 23,1 150,4
129,4 66,9 126,8 337,7 107,6 16,6 142,3
118,3 68,5 117,7 330,7 90,9 7,1 141,4
123,5 89,0 148,1 346,9 108,9 11,9 175,8
125,3 95,1 134,6 331,8 118,5 30,6 153,1
123,9 83,4 118,4 310,3 117,3 27,1 138,9
112,0 66,2 91,6 262,9 101,4 27,4 115,7
97,5 57,3 71,1 227,6 81,4 28,3 99,5
79,8 42,5 56,7 185,3 73,6 22,4 73,6
33,6 35,8 44,7 112,6 43,6 15,6 40,7
10,2% 15,9% 5,04% 11,26% 2,06 39,3% 0,98 14,1% 8,78%
7,6% 13,2% 3,60% 9,30% 2,11 36,5% 1,09 9% 6,23%
8,1% 13,8% 4,30% 9,34% 1,38 38,3% 0,98 11% 7,09%
8,7% 14,5% 4,24% 10,04% 1,33 35,8% 1,00 10% 8,13%
9,0% 19,4% 3,3% 13,7% 1,40 35,6% 1,20 6,9% 10,0%
9,7% 18,0% 4,4% 12,7% 1,78 37,7% 1,07 8,1% 9,6%
14,3% 22,5% 7,6% 15,8% 1,91 39,9% 0,96 15,1% 15,6%
16,4% 23,4% 9,9% 16,9% 2,05 42,6% 0,82 19,3% 18,1%
17,0% 23,5% 11,8% 18,3% 2,11 42,8% 0,73 23,4% 19,3%
13,5% 19,2% 8,9% 14,6% 2,12 43,1% 0,71 36,3% 23,3%
13,5% 18,1% 8,5% 13,2% 1,92 29,8% 1,33 35,7% 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.
Key figures 1993-2007
Operating profit Profit on ordinary activities after taxes Net profit (group share) Cashflow Consolidated equity Gross dividend Net dividend Pay-out (%) Maximum share price Minimum share price Price at end December (3) Change in share price (5) Price/Earnings ratio (5) (6) Price/Cash flow ratio (5) (7) Average daily trading volume (no. of shares) (4) Average monthly trading volume (no. of shares) (4) Annual trading volume (in EUR millions) Number of Sioen shares outstanding (in thousands) (2) Stock market capitalization (in millions) (5)
2005 EUR
2004 EUR
2003 EUR
2002 EUR
1,81 0,90 0,90 2,00 6,95 0,4500 0,3375 50,2% 10,85 9,05 9,80 2% 10,9 4,9 11 354 238 438 28,6 21 390 209,6
1,21 0,57 0,57 1,47 6,35 0,2600 0,1950 45,6% 10,41 8,00 9,60 16% 16,8 6,5 13 396 274 892 30,1 21 391 205,3
1,19 0,64 0,63 1,38 6,05 0,2400 0,1800 37,8% 10,49 7,85 8,30 -19% 13,1 6,0 12 771 268 200 29,5 21 391 177,5
1,26 0,61 0,57 1,45 5,53 0,2200 0,1650 38,4% 10,70 8,24 10,29 35% 18,0 7,1 6 550 137 550 16,2 21 391 220,1
1,27 0,42 0,40 1,74 5,77 0,20 0,15 49,8% 9,16 4,70 8,24 8% 20,5 4,7 4 406 92 895 8,3 21 391 176,3
1,15 0,52 0,47 1,41 5,86 0,17 0,13 35,9% 14,95 6,00 7,65 -33% 16,4 5,4 5 310 112 837 10,4 21 391 163,6
2001 EUR
2000 EUR
1999 EUR
1998 EUR
1997 EUR
1,58 1,52 1,27 0,89 0,79 0,88 1,67 1,52 5,79 5,24 0,16 0,14 0,12 0,11 5000 20,2% 15,8% 23,51 33,65 4000 10,1 18,4 11,503000 20,90 (45%) (36,7%) 14,52000 23,8 6,9 13,8 5 1041000 9 548 107 194 199 710 20,7 0 63,7 21 391 21 391 246,0 447,1
1,33 0,82 0,87 1,38 4,56 0,12 0,09 14,2% 47,5 28,5 33,00 (14%) 37,9 23,9 13 216 277 530 122,5 21 391 705,9
0,92 0,58 0,57 0,97 3,73 0,09 0,07 15,7% 43,13 9,92 38,18 283% 67,0 39,4 26 671 557 863 162,6 21 391 816,6
0,75 0,43 0,45 0,71 1,68 0,07 0,05 15,5% 10,68 3,92 9,97 154% 22,1 14,0 20 950 434 762 33,9 19 965 199,0
(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
60
400 350
35 15
30 25
10
20 15
5
10 5
0 0 -5 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07
300 35 250 30 200 25 150 100 20 50 15 0 10
50
40 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07
5 Group profil Consolidated Cashflow EBIT EBIT/Turnover Cashflow/Turnover
Added value Gross margin Turnover Gross margin -%
0
Coating Apparel Industrial Applications Chemicals
Investments 1993-2007
400
(in millions of EUR)
350
Financing of assets 1993-2007
60
30035
(in %)
100
25030 200 25 150 10020
80
50
60
5015 0 10
40
40
20
5 0
CONSOLIDATED KEY FIGURES PER SHARE (1)(2) 2006 EUR
(in millions of EUR)
20
40
2007 EUR
Key figures 1993-2007
(in millions of EUR)
Added value Gross97margin 93 94 95 96 98 99 00 01 02 03 04 05 06 07 Turnover Gross margin -%
0 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 Eigen vaninterest derden Capitalvermogen/belang & reserves/minority Voorzieningen Provisions Vreemd vermogen LT ST liabilities Vreemd vermogen KT LT liabilities
Coating Apparel Industrial Applications Chemicals
100
Development of employment 1993-2007
Stock price (till 08/01/08) (in EUR)
80 60
5000
40 4000 3000 20
15
15
10
10
5
5
2000
0
1000 0
Capital & reserves/minority interest 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 Provisions ST liabilities LT liabilities Tota l Industrial Applications Coating Apparel
0
Chemicals Group
02
03
04
05
06
07 0
Sioen Eurostoxx50
250000
15
200000 150000 100000
10
15
30 25
10
20 15
5
10 5
0
0 -5 Group profil Consolidated Cashflow EBIT EBIT/Turnover Cashflow/Turnover
CONSOLIDATED KEY FIGURES (in millions of euros) (1)
Profit & Loss Net sales Operating profit (EBIT) Financial result Profit on ordinary activities before taxes Profit on ordinary activities after taxes EBIT (8) EBITDA (9) Cashflow (4) Net profit (group share) Depreciation Personnel costs Number of employees (in units) Balance sheet Equity Long-term financial debt Net financial debt (2) Balance sheet total Working capital (3) Net investment in tangible fixed assets (10) Fixed assets Ratio’s EBIT (8) EBITDA (9) Net profit margin (7) Cash flow/net sales Liquidity (current assets/current liabilities) Solvency (equity/balance sheet total) Net financial debt/equity Return on equity (5) Return on capital (6)
2007 EUR
2006 EUR
2005 EUR
2004 EUR
2003 EUR
2002 EUR
2001 EUR
2000 EUR
1999 EUR
1998 EUR
1997 EUR
380,4 38,8 (8,4) 30,4 19,2 38,8 60,5 42,8 19,2 19,6 72,6 4 869
339,4 25,9 (6,6) 19,3 12,2 25,9 44,8 31,5 12,2 17,9 67,6 4 687
316,2 25,5 (5,5) 20,0 13,6 25,5 43,6 29,5 13,6 17,9 63,5 4 645
309,8 27,0 (7,3) 19,6 13,1 27,0 44,8 31,1 12,3 17,8 61,7 4 500
272,8 27,2 (11,0) 16,2 8,9 24,4 52,8 37,3 8,6 22,1 54,5 4 689
237,7 24,6 (8,7) 15,9 11,0 23,1 42,8 30,2 10,0 19,8 47,0 4 271
226,0 33,8 (6,7) 27,1 17,3 32,4 50,9 35,8 16,9 18,6 42,8 3 924
192,4 32,6 (3,0) 29,6 19,0 31,5 45,0 32,5 18,8 14,1 34,5 3 420
161,1 28,4 (1,3) 27,1 17,6 27,3 37,8 29,5 18,6 11,6 30,9 2 857
141,2 19,6 (1,7) 17,9 12,3 19,0 27,1 20,7 12,2 7,1 24,1 2 555
107,9 15,0 (1,2) 13,8 9,1 14,5 19,6 14,2 9,0 4,7 17,3 1 552
148,6 117,1 145,9 378,1 126,2 21,1 151,4
135,8 128,5 147,8 371,8 115,2 23,1 150,4
129,4 66,9 126,8 337,7 107,6 16,6 142,3
118,3 68,5 117,7 330,7 90,9 7,1 141,4
123,5 89,0 148,1 346,9 108,9 11,9 175,8
125,3 95,1 134,6 331,8 118,5 30,6 153,1
123,9 83,4 118,4 310,3 117,3 27,1 138,9
112,0 66,2 91,6 262,9 101,4 27,4 115,7
97,5 57,3 71,1 227,6 81,4 28,3 99,5
79,8 42,5 56,7 185,3 73,6 22,4 73,6
33,6 35,8 44,7 112,6 43,6 15,6 40,7
10,2% 15,9% 5,04% 11,26% 2,06 39,3% 0,98 14,1% 8,78%
7,6% 13,2% 3,60% 9,30% 2,11 36,5% 1,09 9% 6,23%
8,1% 13,8% 4,30% 9,34% 1,38 38,3% 0,98 11% 7,09%
8,7% 14,5% 4,24% 10,04% 1,33 35,8% 1,00 10% 8,13%
9,0% 19,4% 3,3% 13,7% 1,40 35,6% 1,20 6,9% 10,0%
9,7% 18,0% 4,4% 12,7% 1,78 37,7% 1,07 8,1% 9,6%
14,3% 22,5% 7,6% 15,8% 1,91 39,9% 0,96 15,1% 15,6%
16,4% 23,4% 9,9% 16,9% 2,05 42,6% 0,82 19,3% 18,1%
17,0% 23,5% 11,8% 18,3% 2,11 42,8% 0,73 23,4% 19,3%
13,5% 19,2% 8,9% 14,6% 2,12 43,1% 0,71 36,3% 23,3%
13,5% 18,1% 8,5% 13,2% 1,92 29,8% 1,33 35,7% 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.
Key figures 1993-2007
Operating profit Profit on ordinary activities after taxes Net profit (group share) Cashflow Consolidated equity Gross dividend Net dividend Pay-out (%) Maximum share price Minimum share price Price at end December (3) Change in share price (5) Price/Earnings ratio (5) (6) Price/Cash flow ratio (5) (7) Average daily trading volume (no. of shares) (4) Average monthly trading volume (no. of shares) (4) Annual trading volume (in EUR millions) Number of Sioen shares outstanding (in thousands) (2) Stock market capitalization (in millions) (5)
2005 EUR
2004 EUR
2003 EUR
2002 EUR
1,81 0,90 0,90 2,00 6,95 0,4500 0,3375 50,2% 10,85 9,05 9,80 2% 10,9 4,9 11 354 238 438 28,6 21 390 209,6
1,21 0,57 0,57 1,47 6,35 0,2600 0,1950 45,6% 10,41 8,00 9,60 16% 16,8 6,5 13 396 274 892 30,1 21 391 205,3
1,19 0,64 0,63 1,38 6,05 0,2400 0,1800 37,8% 10,49 7,85 8,30 -19% 13,1 6,0 12 771 268 200 29,5 21 391 177,5
1,26 0,61 0,57 1,45 5,53 0,2200 0,1650 38,4% 10,70 8,24 10,29 35% 18,0 7,1 6 550 137 550 16,2 21 391 220,1
1,27 0,42 0,40 1,74 5,77 0,20 0,15 49,8% 9,16 4,70 8,24 8% 20,5 4,7 4 406 92 895 8,3 21 391 176,3
1,15 0,52 0,47 1,41 5,86 0,17 0,13 35,9% 14,95 6,00 7,65 -33% 16,4 5,4 5 310 112 837 10,4 21 391 163,6
2001 EUR
2000 EUR
1999 EUR
1998 EUR
1997 EUR
1,58 1,52 1,27 0,89 0,79 0,88 1,67 1,52 5,79 5,24 0,16 0,14 0,12 0,11 5000 20,2% 15,8% 23,51 33,65 4000 10,1 18,4 11,503000 20,90 (45%) (36,7%) 14,52000 23,8 6,9 13,8 5 1041000 9 548 107 194 199 710 20,7 0 63,7 21 391 21 391 246,0 447,1
1,33 0,82 0,87 1,38 4,56 0,12 0,09 14,2% 47,5 28,5 33,00 (14%) 37,9 23,9 13 216 277 530 122,5 21 391 705,9
0,92 0,58 0,57 0,97 3,73 0,09 0,07 15,7% 43,13 9,92 38,18 283% 67,0 39,4 26 671 557 863 162,6 21 391 816,6
0,75 0,43 0,45 0,71 1,68 0,07 0,05 15,5% 10,68 3,92 9,97 154% 22,1 14,0 20 950 434 762 33,9 19 965 199,0
(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
60
400 350
35 15
30 25
10
20 15
5
10 5
0 0 -5 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07
300 35 250 30 200 25 150 100 20 50 15 0 10
50
40 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07
5 Group profil Consolidated Cashflow EBIT EBIT/Turnover Cashflow/Turnover
Added value Gross margin Turnover Gross margin -%
0
Coating Apparel Industrial Applications Chemicals
Investments 1993-2007
400
(in millions of EUR)
350
Financing of assets 1993-2007
60
30035
(in %)
100
25030 200 25 150 10020
80
50
60
5015 0 10
40
40
20
5 0
CONSOLIDATED KEY FIGURES PER SHARE (1)(2) 2006 EUR
(in millions of EUR)
20
40
2007 EUR
Key figures 1993-2007
(in millions of EUR)
Added value Gross97margin 93 94 95 96 98 99 00 01 02 03 04 05 06 07 Turnover Gross margin -%
0 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 Eigen vaninterest derden Capitalvermogen/belang & reserves/minority Voorzieningen Provisions Vreemd vermogen LT ST liabilities Vreemd vermogen KT LT liabilities
Coating Apparel Industrial Applications Chemicals
100
Development of employment 1993-2007
Stock price (till 08/01/08) (in EUR)
80 60
5000
40 4000 3000 20
15
15
10
10
5
5
2000
0
1000 0
Capital & reserves/minority interest 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 Provisions ST liabilities LT liabilities Tota l Industrial Applications Coating Apparel
0
Chemicals Group
02
03
04
05
06
07 0
Sioen Eurostoxx50
250000
15
200000 150000 100000
10
Sioen 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 business Sioen Industries is: - The world leader in coated technical textiles - A market leader in industrial protective clothing
S IO EN INDUS TRIE S I An n u al Re p o r t 20 0 7
Profile
- 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 going Exploiting 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.
1
Strategy “protection through innovation”
2 I SIOEN INDUSTRIES I Annual Report 2007
S IO EN INDUS TRIE S I An n u al Re p o r t 20 0 7
“Our strategy is targeted expansion ...”
Jean-Jacques Sioen, Chairman of the board
3
Mission & Strategy Protection throu gh innovation Mission
Strategic directions
With market leadership in key sectors of
• Seizing every opportunity for healthy internal
the coated fabrics market, won by vertical
and external growth in its key and related areas
integration, close customer relations and a
• Sound financial management to provide a steady
robust entrepreneurial ethos, Sioen is looking
dividend stream and flexibility for expansion
to take every opportunity for healthy growth.
• Continuous efforts and investments in R&D
This will provide its shareholders with a steady
• Maintaining (price) competitiveness in core
and growing income and enable it to defend
markets, and entering new high value niche
its independence as a source of tangible and
markets through constant innovation and
intangible value for its owners, employees,
customer proximity
customers and host communities.
• Offering an attractive, stable work environment at all levels
4 I SIOEN INDUSTRIES I Annual Report 2007
Challenges
entrepreneurial identity • Market leadership in all niches
• Expanding production outside Europe • Retaining the financial strength
Core competences
• Internal coherence of product lines • Acquiring and retaining quality employees in
• Vertical integration • Technical expertise
tightening labour markets
S IO EN INDUS TRIE S I An n u al Re p o r t 20 0 7
• Maintaining a distinctive, up-to-date
• Combining the traditional “hands-on”
• R&D
approach of a family-owned company with the
• Innovation & new markets
more scientific approach needed as the group
• “Hands-on”, unbureaucratic corporate culture
expands • Explore new markets
5
Letter to shareholders Dear Shareholder,
If I were to summarize 2007 in a single word, it
2007 was in all aspects an exceptional year, in
would be ‘strong’. We performed on every front,
which the old records came tumbling down one
and advanced in every activity.
after another. We achieved maximum returns in our spinning and weaving mills, we passed
The figures speak for themselves:
for the first time the six million square metre mark on our extrusion line, we operated the
• 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
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
is an increase of EUR 12 million compared to
was permanently high, and we developed
last year.
an unequalled number of new and improved
• EBITDA and EBIT increased with respectively
product formulations.
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
We also had to surmount a number of difficulties. The whole year we had to cope with
0.45 per share to its shareholders in respect of
rising energy prices, rising raw materials prices
2007 (+73%)
nor was it always easy to find suitable personnel.
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
“Targeted entrepeneurship, stimulating a sense of belonging and sticking to our strategic course”
products, what drives us and our particular style of entrepreneurship.
In every division we went forward with our improvement programmes, improving
“Strong growth, excellent results, new projects”
production and cost efficiency and fine-tuning our product formulations. We carefully examined our stock situation and optimized at
In 2007 the emphasis at Sioen was on strategy,
every level. We successfully implemented SAP in
innovation, growth and people. Our action plan,
the Industrial Applications division, with the
objectives and challenges are set out on pages 4 and 5 of this annual report.
6 I SIOEN INDUSTRIES I Annual Report 2007
2008.
• Ukraine:
· commissioning of production centre (truck roofs)
• Worldwide: · continuous investments in R&D
“On the path to new records? In an Olympic year, can we do otherwise?”
and focus on technical products.
S IO EN INDUS TRIE S I An n u al Re p o r t 20 0 7
Coating and Chemicals divisions set to follow in
Sioen Industries’ performance in 2007 and in previous years confirms our capacity to create
We are keeping up the investment pace in 2008.
long term value and growth. And that is what
This includes:
you, our shareholders, and we, entrepreneurs
• Belgium: · new buildings for storage
and all our employees, are looking for.
· new calendering line fully operational
· doubling our open structure fabric capacity production
· additional pigment paste production machinery
• France:
· optimization of direct coating line
“Strong growth, new projects, targeted entrepreneurship and sticking to our strategic course” Michèle Sioen CEO Sioen Industries n.v.
7
Innovation Innovation 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.
8 I SIOEN INDUSTRIES I Annual Report 2007
S IO EN INDUS TRIE S I An n u al Re p o r t 20 0 7
“Constant innovation is vital for survival in a rapidly evolving market” Jacqueline Sioen-Zoete, Director
9
Sioen, part of our daily lives Sioen products play an important part in our daily
soldiers and pilots on whom our society
lives, protecting us and generally improving our
depends. Sioen products strengthen our roads,
quality of life.
improve the safety and comfort of the cars we
Sioen provides filters to treat the water we drink,
drive, and allow us to enjoy outdoor sports in all
the side curtains on the trucks and protective
weathers. And many other things.
clothing for medics, firefighters, police forces,
Our products Transport Truck tarpaulins and curtains, mud flaps,
Medical sector
inflatable containers, railway wagon tarpaulins,
Medical protective clothing, air filters, mattress
protective and industrial clothing for railway, bus,
covers, pillow-cases
transport and airline companies
Air and water treatment Automobile
Filters, air conditioning and mine shaft air ducts
Airbags, dashboards, sun shades, door panels, gearlever covers, floor mats, seats, filters, trunk curtains
Navigation, fishing industry and water sports Flotation suits, life jackets, protective aquatic
Construction and road works
clothing, inflatable boats, boat tarpaulins, yacht
Reinforcement for gyproc plates, insulation, road
canvas, ship tarpaulins
fortification, rubble nets for scaffoldings, high visibility protective clothing, silos, storage tents,
Public institutions
sun screens, sewage, filters
Clothing, firemen’s clothing, clothing for police and army, railways, airlines and post offices,
Agriculture, horticulture, forestry and food industry
tents and truck tarpaulins
Windbreak nets, drainage, protective clothing,
Interior decoration
damming film, filters, pond foil, ultra-low
Yarns and pigments for carpets, wall coverings,
temperature clothing, hygienic protective clothing
insulation, ceilings, etc.
Chemical and petrochemical industries
Sports
Specific protective clothing, oil dams, filters
clothing for hunters, golfers and fishermen,
10 I SIOEN INDUSTRIES I Annual Repor t 2007
Gym mats, safety nets, children’s playing mats,
Publicity and promotion
joggers, cyclists and other outdoor sportsmen,
Indoor and outdoor publicity banners,
pool covers and pool reinforcement nets,
promotional clothing
surfer’s, ski and skater’s clothing
Corporate identity wear Tents
Clothing for courier services, electricity
Camping tents, party tents, awnings, canopies,
companies, petrol stations, breweries, telecom
halls, semi-permanent buildings, kadors
companies, airlines, etc.
Pigment pastes
Filters Sioen protective clothing
S IO EN INDUS TRIE S I An n u al Re p o r t 20 0 7
motorcyclist’s clothing, reflective clothing for
Technical textiles in cars and roads Mattress covers
Pool covers and liners Technical protective clothing
Boatliners
Tents & structures
Side curtains
11
Sioen worldwide 1 ARDOOIE Sioen Coating Division/Apparel Division/Veranneman TT Sioen Coating Distribution 2 BORNEM European Masterbatch (EMB)
1
7
Fillink Technologies
6
3 KERKSKEN
2 3 4
TIS 4 LIÈGE Sioen Nordifa 5
5 MESLIN-L’EVÊQUE
Coating
Inducolor 6 MOUSCRON
Apparel
Sioen Fibres - distribution/spinning Sioen Fabrics - weaving, coating and calendering
Industrial applications
7 POPERINGE Coatex
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
12 I SIOEN INDUSTRIES I Annual Repor t 2007
15
S IO EN INDUS TRIE S I An n u al Re p o r t 20 0 7
23
22 16
21 18
9 10
12
20
11
17
8
19
13
14
13
History 2000-2007 2000
2002
Brand new spinning mill in Mouscron (Belgium),
At Mouscron (Belgium): spinning capacity
new sales office in Shanghai (China), joint
doubled, takeover of transfer and direct coating
venture in Portugal, extra apparel production
line, increases coated textiles range, new line
capacity in Tunisia, agreement with US
producing transfer coated material for airbags.
distributor.
New textile architecture line. Takeover of Bacam, France (camouflage canvas and multispectral
2001 Acquisition of Nordifa S.A., Belgium (industrial
camouflage nets).
filters for fluids, dedusting and membrane
2003
filters), Mullion Manufacturing Ltd., UK (wet
Takeovers of Pennel, France (technical textiles
suits, thermal survival suits, lifejackets), SLP
for automotive applications) and Roltrans
productions, France (forestry protective
Group, NL (truck tarpaulins and curtains).
clothing) and Ets. Roger Vidal et Fils, France (fire fighters clothing).
14 I SIOEN INDUSTRIES I Annual Repor t 2007
Acquisition of 25% minority interests in Coatex (Belgium), modernization investments at Saint Frères (France).
2005
2007
New large-scale showroom and R&D lab
Acquisition of Fillink (Belgium), specializing in
inaugurated at Ardooie HQ site, Board of
inks for wide and super wide format printers.
Directors adopts Corporate Governance Charter,
Swap clariant PV-pastes against granulates.
Michèle Sioen appointed CEO.
Building work starts on new EUR 20 million
S IO EN INDUS TRIE S I An n u al Re p o r t 20 0 7
2004
calendering line at Mouscron.
2006
Expansion of Veranneman production line (online coating, open structure textiles), and
In pigments field: new pigment paste
new fully automated warehouse at Ardooie to
production hall at Bornem site, acquisition of
be operational in 2008.
colouring pastes activities of Siegwerk Benelux,
New plant opened in Ukraine.
acquisition of Richard Colorants (France).
15
“Expertise right down the line” As a fully integrated group, Sioen covers every
coating and on to specialist processing. This
stage of the production and application of
includes all five main coating processes, each
coated textiles, from spinning to weaving to
with its own applications and markets.
Base material
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
Coating stage
4. Application of coatings, using five different technologies (direct coating, transfer coating, online coating, extrusion coating, calendering)
Finishing
5. Coated fabrics sold as semi-finished products to external manufacturers
6. Apparel Division Production of protective clothing for industrial and leisure use
16 I SIOEN INDUSTRIES I Annual Repor t 2007
7. Industrial Applications Division – Processing of heavy-duty coated textiles for specialist markets
C O AT ING 99%
100%
100%
Sioen Coating n.v. Direct Coating Belgium
A P PA R E L 99%
INDUSTRIAL APPLICATIONS
Sioen n.v. Apparel Belgium
25% 75% (2)
Saint Frères s.a.s. Direct Coating France
Confection Tunisienne de Sécurité s.a Apparel Tunisia
89%
Sioen Coating Distribution n.v. Sales Office Belgium
Donegal Protective Clothing Ltd (4) Apparel Ireland
100%
100%
100%
Coatex n.v. Processing of coated fabrics and films Belgium
CHEMICALS 100% Inducolor s.a.
Ink production Belgium
90% European Master 10%(2) Batch n.v. Saint Frères Confection s.a.s. Master batch Heavy-duty manufacturing France production Belgium
Sioen Nordifa s.a. Filter production Belgium
S IO EN INDUS TRIE S I An n u al Re p o r t 20 0 7
SI OEN INDU STRIES NV ( 1)
100% Richard s.a.s. (7) (8) Paste production France
Fillink Technologies 100% n.v. (9) 100%
Sioen Fabrics s.a. Weaving/Transfer Coating Belgium
100%
Sioen Fibres s.a. Spinning Belgium
95%
P.T. Sioen Indonesia Apparel Indonesia
5%
100%
Sioen Shanghai (3) Sales office China
95%
P.T. Sungintex Apparel Indonesia
5%
100%
Siofab s.a. Transfer Coating Portugal
100%
TIS n.v. Weaving Belgium
99%
100%
100%
100%
Mullion Manufacturing Ltd Apparel U.K.
Roland International b.v. (6) Manufacturing of truck tarpaulins
Roltrans Group America Inc. 100% USA Roland Planen GmbH Germany
100%
Sioen Fibres s.a. Central Distribution Unit Belgium
Roltrans Group Polska sp.z.o.o. 100% Poland
Sioen France s.a.s. Sales office France
Roland Ukraine Llc (7)
100%
Roland Tilts UK Ltd.
100%
100% Veranneman TT n.v. Weaving/Direct Coating Belgium
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
(1) (2) (3) (4) (5) (6) (7) (8) (9)
100%
100%
Quoted percentages have been rounded, and reflect the situation at 31 December 2007 Via Sioen Coating nv The official name is Sioen Coated Fabrics Shanghai Trading Ltd. The official name is Gairmeidi Caomhnaithe Dhun na nGall Teoranta. 5% via P.T. Sungintex Via Monal s.a. and Roltrans Group b.v. The Richard group was acquired in October 2006 In 2007 Richard s.a.s. resp. merged with Copidis s.a.s. and Astra Colorants s.a. Fillink Technologies was acquired in January 2007
17
Growth Well-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.
18 I SIOEN INDUSTRIES I Annual Report 2007
S IO EN INDUS TRIE S I An n u al Re p o r t 20 0 7
“It is essential that we work together to ensure the future growth of our international group�
Michel Devos, CEO non direct coating companies
19
Coating Division The product – technical coated textiles
polyester granules are processed into hightenacity yarns. A portion of the yarns is twisted in the twisting plant, the rest goes directly to our weaving mills.
Coating is covering a base layer (knitted, woven,
Weaving - The yarn is supplied as raw
non woven PA or PES fabric) with a protective
material to the three weaving mills, each
layer (PVC, PU, silicon or another plastic), to
with its own specialization: sailcloth, open
make the material waterproof, fireproof, anti-
structure textiles, high tenacity textiles, airbag
static, breathable, printable, and so on, and to
textiles, etc. The fabrics all meet high technical
give protection against wind, water, cold and
requirements for tensile strength and tear
chemicals. Sioen has been coating technical
resistance, fire retardency, light fastners,….
textiles for nearly 50 years.
Sioen has also secured certificates of approval for automotive applications.
Production - vertical integration
Sioen also produces non-woven needle (Liège, Belgium) which is used, among other things, as a support in extrusion coating.
Sioen handles the entire production process: spinning, weaving, pigmenting and coating.
Preparation of coating layer/ colouring
Spinning - Sioen has one of the most
The coating layer can consist of PVC,
modern spinning mill in the world at Mouscron,
polyurethane, silicon or other polymers, which
where every year approx. 16,000 tons of
are sourced from major chemicals companies.
20 I SIOEN INDUSTRIES I Annual Repor t 2007
Online coating:
colouring the coating layer. Pastes are mixed in
Here the open weave fabric passes directly from
fully automatic paste kitchens and then brought
the loom into a coating bath.
to the coating line by robots.
Applications: geogrids, swimming pool covers,
Coating
reinforcement nets, windbreak
Sioen Industries applies five main coating
nets, filters, etc.
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.
Extrusion coating: This technique allows other
Direct coating:
base materials (textiles, non-
The PVC coating paste is directly applied to the
woven, knitted fabrics, etc.)
fabric in four layers.
to be coated with various
Applications: curtains, tilts
polymers.
and tarpaulins for trucks,
Applications: ventilation tubes, pond liners,
railway wagons and containers
greenhouse foil, sewer renovation, etc.
S IO EN INDUS TRIE S I An n u al Re p o r t 20 0 7
Sioen produces its own pigment pastes for
and other uses, sports mats, swimming pool covers, etc. Calendering (rolling): Transfer coating:
TPO (thermoplastic polyolefin)
The coating paste (PU, silicone, etc.) is applied
and PVC films are rolled to
to the fabric via a paper support.
give the required motif/
Applications: protective
texture.
clothing, outdoor sports
Applications: car dashboards,
clothing, shoe protectors,
door panels, sunvisors, wall coverings, pond
mattress protectors, airbags,
liners, etc.
etc.
21
Main product markets
can vary considerably from one year to the other. The tarpaulin and side curtains sector is by far the
More than half of the total production of the coating
largest, accounting for around 40% (in some years
division is sold as semi-finished products to external
more – in 2007 over 50% in response to strong
customers (distributors and manufacturers), for
demand) of external turnover of the Coating
use in the areas given below. It is difficult to give
division. The reamining 60% is divided amongst the
meaningful figures for sales in each sector as these
other markets.
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.
22 I SIOEN INDUSTRIES I Annual Repor t 2007
Sioen accounts for over 40% of all European
or by region) competitors in Austria, France,
coating capacity. The remainder is shared
Germany, Italy, Scandinavia, Spain, etc., certain
among one major German coater and various
of whom go opportunistically in and out of
smaller and increasingly specialized (by product
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.
S IO EN INDUS TRIE S I An n u al Re p o r t 20 0 7
Competitive position
Geotextiles (around 20 Mm² worldwide) is a steadily expanding market. Sioen is world market leader in this segment.
Geographical markets
In automotive, the new calendering facility
Over 80% of the Coating Division’s turnover
will enable Sioen to be more flexible and expand its
comes from the traditional Western European
geographical market.
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-
In the market for flexible,
breathing textiles, where there is strong competition from
textiles, France has a large number of swimming pool cover and mattress cover makers. The largest digital printing works are based in Western Europe
Asia, Sioen is competing through quality, vertical
and Pennel Automotive has a long history of
integration and by entering new markets.
contacts with French car producers. Technical
The
pool covers market, in which Sioen is the
market leader, is steady at around 20 Mm².
textiles for digital printing, truck curtains and tarpaulins are also finding their way to Eastern European customers.
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.
23
New products and developments • In 2007 Veranneman Technical Textiles
will also enable Sioen to expand, among other things its architectural textile activities. • In 2007 work started on a major EUR 20
invested in a new production hall on the
million investment in a new production
Ardooie site (Belgium). The first new looms
line on the Mouscron site (Belgium). When
should be working by mid-2008. This
fully operational in 2008, this will produce a
investment doubles our capacity in open
wide range of films and foils for ponds and
structure fabrics (anchoring nets, geotextiles,
reservoirs and for automotive applications like
rooftops, windbreak nets and advertising
dashboards, sun visors and side panels. Sioen
banners).
will now be able to deliver pond foils directly to its Coatex (Belgium) processing subsidiary,
• Next to this production hall, Sioen will enlarge its coatings warehouse for base materials and finished goods. This allows Sioen to
instead of purchasing them externally.
Sales organization
increasingly group products at Ardooie prior to expedition to customers.
In addition to the permanent sales staff operating out of the Ardooie, Mouscron and
• St Frères Enduction (Flixecourt France) has
Roubaix plants, and a number of local agents,
added a coating and a lacquering line to the
the Coating division has its own sales offices in
end of its existing coating line. This will come
Germany, France and China.
up to speed in 2008. This additional capacity
24 I SIOEN INDUSTRIES I Annual Repor t 2007
The Product
flooring, wall coverings, silicone kits used in construction and interior decoration, kitchen
Sioen Chemicals produces pigment pastes, inks,
sponges, mattress and furniture liners, shoe soles,
varnishes, colour powders and colour dispersions
bathtubs, sanitary facilities and luxury yachts.
at two locations in Belgium and one in France.
S IO EN INDUS TRIE S I An n u al Re p o r t 20 0 7
Sioen Chemicals division
Sioen Chemicals also produces specific Pigment pastes are used for colouring
flame retardant pastes. It is one of the only
polyurethane and PVC coatings, epoxies, acrylic
manufacturers in the world of high tech pastes
resins and silicones. These find their way into
that render textile invisible to military infrared
a huge range of end products, including vinyl
cameras.
25
Inks. Sioen Chemicals produces water based,
GeographicAL markets
solvent based and UV inks for wide and super wide format digital printing and decorative inks.
16% of all Sioen Chemicals products are used within the Sioen group. The balance is
Varnishes. Sioen Chemicals offers a wide range
sold to a wide variety of customers, mainly in
of colourless water and solvent borne and UV-
Western Europe, from the Bornem (Belgium)
curable varnishes and lacquerings. Applications
headquarters and the other subsidiaries.
include liquid varnishes for printing inks, top coat varnishes protecting decorative surfaces,
Competitive position
and specific technical products such as inhibitor varnish for special patterns in decorative
Sioen Chemical’s organisation and the fact of
applications.
having the Sioen group as its largest customer, give it a scale advantage over the relatively
Colour powders and colour dispersions. These
fragmented competition. In addition, the
are used to dye paint, plaster, wax, cement, etc.
personalized service and close partnerships with the customers play an important role in the success of this division.
26 I SIOEN INDUSTRIES I Annual Repor t 2007
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
“We value personalized service and close partnerships with our customers”
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.
S IO EN INDUS TRIE S I An n u al Re p o r t 20 0 7
New developments
Pascale Sioen, CEO Sioen Chemicals
27
Apparel division The Product
of technical complexity such as flotation suits, fire fighting suits, protective clothing for the
Sioen is a leading producer and seller of
petrochemicals and forestry sectors, etc. This
protective clothing for industrial and leisure use.
technical complexity means that competition
In our own production plants we process both
is more limited, whilst demand is rising as
internally and externally produced textiles into
European standards and regulations become
high quality protective clothing.
increasingly stringent.
The Industry range accounts for the greater part of the Apparel division’s turnover. It includes protective clothing against rain, wind and cold,
Design and production
but also highly technical protective clothing against electric arcs, welding flames, extreme
With an eye for detail and expert knowledge of
cold and chemicals.
production techniques and raw materials, our creative designers and textile engineers develop
With sustained commercial pressure on low-
functional and comfortable protective clothing
end markets, Sioen is focusing strategically on
which meets all legal regulations and technical
products and applications with a high degree
requirements.
28 I SIOEN INDUSTRIES I Annual Repor t 2007
sector, agriculture, gardening and the fisheries
quality standards in one of our modern production
sector. Sioen serves public authorities (municipal
centres in Tunisia, Indonesia and elsewhere. We are
services, police, army, postal services, etc.) and
continually investing in the latest technologies to
private companies.
enable us to meet the highest quality standards. Sioen has the most recent ISO 9001/ version
Sioen outdoor leisurewear is aimed mainly at
2000 certification and the Apparel division works
hunters, anglers and golfers (Baleno trade mark).
according to the AQUAP standards for military
We also produce sportswear for horse riders,
apparel (NATO Military Certificate of Conformity).
motorcyclists and walkers. Sioen is also a valued partner for certain skiwear brands.
Application areas
S IO EN INDUS TRIE S I An n u al Re p o r t 20 0 7
Each design is produced carefully to the strictest
GEOGRAPHICAL Markets
The application areas are as divergent as they are extensive: Sioen protective clothing is used
The vast majority of products are sold in Sioen’s
in the petrochemicals industry, the food sector,
traditional European markets (France, Belgium
road construction and public works, the building
UK, the Netherlands and Germany).
“We are continually investing in the latest technologies to meet the highest quality standards” Bart Vervaecke CEO Apparel Division
29
Competitiveness
• a 3-year contract to provide intervention jackets and trousers for all Belgian fire fighters.
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.
• fire fighting suits for the national federation of fire fighters of Luxembourg.
D evelopmentS during 2007
• protective clothing to Austrian electricity supplier Wien Strom. Wien Strom’s safety specifications are some of the toughest in Europe.
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:
30 I SIOEN INDUSTRIES I Annual Repor t 2007
the Swedish army.
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-
• T-shirts and fleeces for workers in all Belgian Coca-Cola plants,
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.
• Fleeces and high visibility trousers and jackets for Scottish ambulance personnel.
S IO EN INDUS TRIE S I An n u al Re p o r t 20 0 7
• sets of rain garments (jacket and trousers) to
31
Industrial applications division Product
Processin g
The Industrial Applications division processes
Plants in France, Belgium, Germany, Poland
heavy-duty coated textiles (produced mainly
and Ukraine each provide their own specialty
in-house) into a number of finished and semi-
products and services.
finished products. Kadors: Sioen processes in-house coated
Markets
technical fabric into kadors (flexible tubes enclosed in a technically coated fabric, into which profiles can easily be inserted, for
The division covers a wide range of markets,
example for caravan awnings).
including automotive, leisure, the food industry, heavy industry and chemicals, transport and
Sio-steel: Sio-steel is a patented composite
mining.
consisting of a PVC coated steel net and double-
32 I SIOEN INDUSTRIES I Annual Repor t 2007
Cutting: Cutting of technical textiles for the
for intrusion-resistant truck and train tarpaulins
automotive industry (airbags, door panels, sun
and side-curtains.
visors, etc.).
Carapax: Whenever the roof curtain of a
Pond and dam liners: Cutting, splicing and
truck is opened, the cables hang down into
packaging of sheeting for recreational ponds
the trailer’s loading area and get in the way.
and industrial reservoirs, water basins and
Carapax is an alternative to traditional roof
cultivating beds, for customers worldwide.
S IO EN INDUS TRIE S I An n u al Re p o r t 20 0 7
sided PVC coated polyester fabric, used primarily
curtains, giving additional resistance to the trailer superstructure and meeting the
Filters and filter cloths: Sioen specializes in
requirements of EN 12642XL. Carapax is a
producing needle felt and derived products
combination of aramide and technical coated
such as filter cloths and complete ready-to-use
textile.
filter systems. These filters are used in the food industry (water and air treatment in sugar
Nordifa
Airbags
Carapax
33
refineries, breweries, etc.), heavy industry
of truck curtains, roofs and tilts, with a 45%+
and metallurgy, mining, petrol stations, paper
market share in curtains for new trucks. Acquired
processing, cement companies, the chemicals
by Sioen in 2003, the company focuses on large
industry, municipal water purification and
volume, batch production.
after-burning plants. Nordifa recently started producing acoustic and thermal insulation panels.
Geographic markets
Tents, covering systems, roll-down shutter
Over 60% of sales in this division are in
doors, separating walls and silos: A small
Germany. This is because the largest trailer
percentage of our production of technical
builders are in Germany. Other automotive
textiles is processed into finished and semi-
applications (cut airbags, door panels, etc.) also
finished products for high-tech applications for
find their way to Germany. The remaining 40%
the army, the railways, the airline industry, and
is divided between France, Belgium, the UK, the
the construction sector.
Netherlands, Eastern Europe and the USA. The two latter areas both offer considerable scope
Camouflage fabric: Sioen specializes in the
for growth.
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
Sales and distribution org anization
development. Sales and distribution channels differ from one Truck curtains, roofs and tilts: Roland
product to another. Increasing emphasis is being
International (production units in Germany,
placed on cross-selling.
Poland, Ukraine) is the world’s largest producer
34 I SIOEN INDUSTRIES I Annual Repor t 2007
Camouflage nets Siosteel
35
S IO EN INDUS TRIE S I An n u al Re p o r t 20 0 7
People The 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.
36 I SIOEN INDUSTRIES I Annual Report 2007
S IO EN INDUS TRIE S I An n u al Re p o r t 20 0 7
“Quality employees are vital to our future”
Christophe Desmedt, Chief HR Officer
37
Focus on human resources 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 labourintensive 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.
38 I SIOEN INDUSTRIES I Annual Repor t 2007
Working at Sioen Recruitment and selection We 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.�
Sioen has recently created a HR function at executive level, reporting directly to the CEO.
Starting out
Sioen is listed by ETHIBEL, that screens companies on internal social policy, environmental policy, external social policy and ethical economic policy.
Anyone 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.”
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.
Workin g at Sioen
S IO EN INDUS TRIE S I An n u al Re p o r t 20 0 7
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.”
39
Working at Sioen
Workin g at Sioen
Open communication
Good working climate and relations
We try to communicate 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 Chemicals 4% Groupe 1%
Apparel 61%
Industrial Applications 19% Coating 15%
40 I SIOEN INDUSTRIES I Annual Repor t 2007
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.”
Workin g at Sioen
Our sectors
Global commitment
Sioen’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.”
Personnel per country Poland 12% Tunisia 15% Indonesia 40%
Other countries 5% Belgium 20%
Sioen 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 creating jobs. Bettering material progress of our host societies by conducting our business as effectively as possible is the most important social contribution our group can make. Jafaar, Indonesia I 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.
S IO EN INDUS TRIE S I An n u al Re p o r t 20 0 7
Working at Sioen
Hayet, Tunisia I 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.
France 7%
41
Research & Development Sioen has a concerted focus on knowledge,
development and innovation and on process
innovation and creativity: on new materials, new
improvement with state-of-the-art facilities. 50
production processes, new services, new niches,
people are involved in R&D and testing. Direct
new markets and new requirements. Knowledge
expenditure on R&D and testing amounted
is our fundamental principle and our real capital.
in 2007 to EUR 7,354,49 (= 1.9% of turnover) including production time and related costs.
Sioen organizes its research and development activities around three main areas: product
As well as its central R&D unit, Sioen has ten
development, process improvement and
other research teams at major production sites,
technological innovations. The products we
conducting specific research and product testing
develop must both meet customer expectations
in more restricted areas. Work done at the
and create added value for the business. Process
production sites is coordinated and managed
optimization made possible by technological
from the central R&D unit in Ardooie.
innovation is making a substantial contribution to the group’s effectiveness.
Sioen’s R&D team cooperates closely with national and international research institutions,
A “spider’s web” R&D structure
universities and scientific institutes in Belgium and abroad. This includes a special working
Keeping ahead of the market requires ongoing
relationship with the Textile and Textile
investment in research and development. At the
Engineering department of the University of
group’s central R&D centre at its headquarters
Ghent.
in Ardooie, professionals work on product
42 I SIOEN INDUSTRIES I Annual Repor t 2007
Sioen’s R&D centres and labs are fully equipped
thermal radiation tests (EN ISO 6942) in-house
with the latest testing equipment. Testing for
has led to Sioen being one of the first European
tear and breaking strength, flame retardancy,
producers certified for the new EN469:2005
chemical resistance, water column, colour
standard for fire fighter clothing, and opens
fastness, ageing and so on are all performed in-
the way for Sioen to play a leading role in fire-
house, and Sioen can stand comparison with the
retardant garments. Sioen has its own ballistic
world’s top research institutes in this area. The
laboratory including a shooting range and
ability to conduct flame tests (EN367), and
evaluation equipment.
Environment For Sioen, care for the environment is a constant
In 2007, an additional heat exchanger came into
concern. As a responsible corporate citizen, the
use at Ardooie. The new extension at Ardooie
group complies with all legal requirements. As a
(Veranneman production hall plus storage
market leader it also seeks to operate a proactive
warehouse) is to be fitted with electricity-
environmental policy, investing every year to
generating solar panels.
protect people, nature and the environment,
In addition to developing new products,
applying stricter standards than those required
technologies and processes, the R&D team is
by law.
also intensively engaged in researching and
The group is making increasing use of recycling
developing recycling options. Possibilities
and energy recovery technologies. Coating
include the recycling of used technical textiles in
sites are fitted with distillation and combustion
bags, insulation materials, mud flaps and so on.
S IO EN INDUS TRIE S I An n u al Re p o r t 20 0 7
Top flight test facilities
towers, which minimize exhausts and recover hot air which can be used to pre-heat ovens. At
Sioen is developing its own recycling
Ardooie, contaminated solvents from cleaning
programme for used coated textiles, more
paste tubs are distilled for re-use.
especially for truck tarpaulins and side curtains.
“Knowledge is our real capital” Joost Wille R&D Manager Coating division
43
Quality Quality means satisfying the customer
This starts with the screening of suppliers and their raw materials. It continues with monitoring, testing and controlling every stage
Quality means satisfying the customer‘s
of the production process, from yarn to finished
expectations in terms of products and delivered
product, using the latest technology like camera
services. Quality is not confined to those
supervision of fabric quality.
departments which come into direct contact with the customer. Quality is a key principle for
Certificates
all employees of the Sioen Industries group as they perform their work, whether in production,
The Apparel Division has met ISO 9001
sales, accounting, customer service, R&D or
standards since 1996 and now complies with the
purchasing. Every employee contributes to
most recent ISO 9001 version 2000 regulations.
quality in their own field. Our quality policy
It also works according to the AQUAP-120
emphasizes constant quality monitoring and
standards for military tenders. Thanks to a
improvement, with the customer as the ultimate
constant concern for quality the Coating division
judge of all our efforts.
was one of the first coaters to acquire the ISO 9001 certificate.
Quality monitoring
The five areas of focus for the ISO 9001 standard – quality management system, management
The quality of the delivered product must meet
responsibility, management of resources,
the customer’s most stringent criteria. We
production of the product, and measurement,
therefore not only inspect the final product, but
analysis and improvement – form the core of
monitor for quality throughout the production
Sioen’s integrated quality assurance system.
process.
“Every co-worker contributes to quality”
Ivan Deceuninck Technical Director Apparel division
44 I SIOEN INDUSTRIES I Annual Repor t 2007
realisation: www.comfi.be
Annual report 2007
F i nanc i al c a l e nd ar I nv e s t o r r e l at i o ns
Friday, April 25, 2008
General shareholders meeting of 2008
Friday, May 16, 2008
Trading update 1 st quarter 2008
Friday, August 29, 2008
Announcement of 1 st half-year results 2008
Growth
Wednesday, October 31, 2008 Trading update 3 rd quarter 2008
mid-March 2009
Announcement of 2008 full-year results
Friday, April 24, 2009 General shareholders meeting
Innovation
Strategy
FINANCIAL INFORMATION AND INVESTOR RELATIONS For all further information, institutional investors and financial analysts should contact:
People
Geert Asselman - Chief Financial Officer Fabriekstraat 23 - B-8850 Ardooie T: +32 51 74 09 80 - F: +32 51 74 09 79 E: corporate@sioen.be
Fabriekstraat 23 - B-8850 Ardooie - Belgium T: +32 51 74 09 80 - F/ +32 51 74 09 79
Contents Corporate information Part I Profile Strategy Mission & Strategy Letter to the shareholders Innovation Our products Sioen worldwide History 2000-2007 Expertise right down the line Group structure Growth Coating division Chemicals division Apparel division Industrial applications People Human resources Research & development Environment Quality
1 2 4 6 8 10 12 14 16 17 18 20 25 28 32 36 38 42 43 44
Corporate information Part II Letter to the shareholders Report from the Board of Directors Group Structure Share Information Corporate Governance General information
3 5 9 10 12 16
Financial overview
20
Definitions Addresses
79 80
Only the English version of the annual report has evidential value.
realisation: www.comfi.be
Annual report 2007
F i nanc i al c a l e nd ar I nv e s t o r r e l at i o ns
Friday, April 25, 2008
General shareholders meeting of 2008
Friday, May 16, 2008
Trading update 1 st quarter 2008
Friday, August 29, 2008
Announcement of 1 st half-year results 2008
Growth
Wednesday, October 31, 2008 Trading update 3 rd quarter 2008
mid-March 2009
Announcement of 2008 full-year results
Friday, April 24, 2009 General shareholders meeting
Innovation
Strategy
FINANCIAL INFORMATION AND INVESTOR RELATIONS For all further information, institutional investors and financial analysts should contact:
People
Geert Asselman - Chief Financial Officer Fabriekstraat 23 - B-8850 Ardooie T: +32 51 74 09 80 - F: +32 51 74 09 79 E: corporate@sioen.be
Fabriekstraat 23 - B-8850 Ardooie - Belgium T: +32 51 74 09 80 - F/ +32 51 74 09 79
Contents Corporate information Part I Profile Strategy Mission & Strategy Letter to the shareholders Innovation Our products Sioen worldwide History 2000-2007 Expertise right down the line Group structure Growth Coating division Chemicals division Apparel division Industrial applications People Human resources Research & development Environment Quality
1 2 4 6 8 10 12 14 16 17 18 20 25 28 32 36 38 42 43 44
Corporate information Part II Letter to the shareholders Report from the Board of Directors Group Structure Share Information Corporate Governance General information
3 5 9 10 12 16
Financial overview
20
Definitions Addresses
79 80
Only the English version of the annual report has evidential value.