AnnuAl report

- 2 -

Follow the Sioen environmental friendly ‘green common thread’ throughout this annual report.

- 3 -

CONTENTletter to the ShAreholderS p. 4-5

our proFile – our buSineSS p. 6

OUR MISSION, STRATEGIE AND FUTURE

our buSineSS StAtement – our CompAny SlogAn p. 8

our AreAS oF expertiSe p. 9

our Core vAlueS – our StrengthS p. 10

our CommitmentS p. 11

our Future FoCuS p. 12

THE SIOEN GROUP

vertiCAl integrAtion p. 14

diverSiFiCAtion p. 15

innovAtion p. 16

reSeArCh And development p. 16-22

heAlth And SAFety p. 23

environment p. 24

QuAlity p. 25

humAn reSourCeS p. 26

Sioen in the world p. 27-28

THE SIOEN DIVISIONS

CoAting diviSion p. 30-37

ChemiCAlS diviSion p. 38-42

AppArel diviSion p. 43-49

induStriAl AppliCAtionS diviSion p. 50-54

SHAREHOLDERSreport oF the boArd oF direCtorS pArt ii p. 5

group StruCture pArt ii p. 9

ShAre inFormAtion pArt ii p. 10

CorporAte governAnCe pArt ii p. 12

generAl inFormAtion pArt ii p. 16

FINANCIAL OVERVIEW pArt ii p. 20

ADDRESSES pArt ii p. 78

DEFINITIONS pArt ii p. 80

- 4 -

Dear Shareholder,

A yEAR OF ExTREMES

2008 was a year of extremes, of high peaks and deep

troughs.

the year started with top months, in which we beat all

records. our spinning mill was never as productive, the

weaving mills were running at full capacity, production

could not keep up with sales of coated technical

textiles, the chemicals department continued to grow,

technical protective clothing sales were climbing …

everything was indicating to another top year.

no one could have predicted that a year that had got

off to such a good start would end in a minor key. From

the second half onwards, sales slackened, margins fell.

Stock markets tumbled right across the world. Compa-

nies were revising their growth forecasts daily. Slow-

down turned into recession.

Sioen industries has swum through many troubled

waters in the past – the fire that decimated our

company in the early 1990s, the slowing of growth

in 2002, sharp Chinese competition in recent years.

All these situations have left us extra-well armed for

the future.

MEASURES

in this poor economic climate we continue to look for

alternatives - new applications, new products and new

LETTER TO THE SHAREHOLDERS

markets - to pump up sales and production. despite this,

from the middle of last year we had to begin restructu-

ring and introducing economic unemployment.

total group sales in 2008 amounted to eur 349.4

million, compared with eur 380.3 million in 2007 (-8%).

ebitdA and cash flow amounted to eur 37.7 million

(10.8% of sales) and eur 24.2 million respectively.

After-tax profit was eur 3.4 million, compared with eur

19.2 million in 2007.

INNOVATING THE FUTURE

the results and explanations by division can be found in

the report of the board of directors on page 5 of the

financial part of this annual report.

we cannot emphasize enough the importance of

research and development. today everybody uses the

word innovation. it has become a fashionable word, at

times a magic word. not so at Sioen. Since founding the

company in 1960 we have lived by the motto ‘to stand

still is to go backwards’. this is innovation avant la lettre.

introducing new ideas, products, services and proces-

ses- approaching things in new ways, thinking out of the

box. this is our daily bread at Sioen, at every level of our

company.

in this annual report we give a number of concrete

examples of our recent research and development

results (see p. 16-22). these are always to a greater or

lesser extent the outcome of good teamwork between

sales, r&d, production, marketing, procurement and

senior management.

- 5 -

GREEN

in this annual report we would also like to introduce you

to our ‘green’ side. ecological projects, products, plans

and developments form a red thread through the

present report.

not because they are ‘in’, but because the environment

and safety are close to our hearts. our company slogan

for many years now has been ‘protection through

innovation’. we produce products that protect human

beings, their environment and their possessions and do

so in an environmentally friendly way.

in our business statement (see p. 8) we say that “we wish

to develop environmentally friendly coating and

processing technologies and in so doing set the

standard for green safety and protective products, while

creating sustainable, profitable growth.” the green ‘red

thread’ in this annual report testifies that we are

working hard at this.

WITH CONFIDENCE

what will happen with the world economy in the

coming years is largely a matter of conjecture.

economists are assuming that the slowdown will, in

the most favourable of circumstances, last for 4 to 6

quarters. Sioen industries is taking full account of these

predictions and has already taken the necessary

decisions and measures.

today we need to have confidence in our own strengths:

we are a flexible company, with state-of-the-art

production equipment, unique cost-efficient vertically

integrated processes, enthusiastic employees and solid

customer relations.

our business statement is clear, our strategy well

thought-through, our business slogan powerful.

Jean-Jacques Sioen Michele Sioen

Chairman of the Board CEO

of Directors

- 6 -

OUR PROFILESioen industries is a diversified stock quoted group

with an extensive portfolio of products and

activities: spinning, weaving and coating, manu-

facturing of clothing, production of fine chemicals

and processing of technical textiles.

vertical and horizontal integration, diversification

and permanent growth have driven us since 1960.

OUR BUSINESSSioen industries is:

p the world leader in coated technical textiles

p Strong specialisation in high end technical apparel

p Specialist in fine chemicals

p global player in the processing of technical textiles

- 7 -

Sioen miSSion, StrAtegy And

Future

- 8 -

OUR BUSINESS STATEMENT

we will continuously optimise the conversion of

p chemicals

p customised technical fabrics

p foil sheets

through our unique and cost effective vertically integrated process capabilities, up to and

including

p the transformation into finished products.

we will focus on global b-to-b customers and professional users in order to assure

continuity, risk-spreading and profitable growth for all our stakeholders.

we will do the above in a dynamic environment, through flexible and quick response to

the market, focussed r&d efforts and a global sales and production presence.

in addition, we will develop environmental friendly coating and converting technologies

to set a winning standard for primarily green safety and protective products to create

sustainable profitable growth.

OUR COMPANy SLOgAN

‘Protection through innovation’

- 9 -

OUR AREAS OF ExPERTISE

R&D

we must excel at r&d collaboration across the entire organisation in order to benefit from and

optimise the knowledge/expertise and to develop new profitable growth products/solutions and

process cost savings.

PRODUCTION ENGINEERING

we must excel at continuous improvement of our production processes and know-how to keep and

make them state-of-the-art, cost effective and flexible and to achieve the right quality requirements.

MARkET INTELLIGENCE

we must excel at detecting and understanding current and future market needs in order to develop

customised solutions and bring them timely (faster than competition) to the market.

GLObAL GROWTH COORDINATION

we must excel at integrating and coordinating our new sales force and production investments in

order to maximise their effectiveness for the group and to avoid overlap or wasted resources.

- 10 -

OUR CORE vALUESAll Sioen companies have as their core values integrity, fairness,

honesty and respect in all aspects of their business. Sioen industries

expects the same from all its business partners.

OUR STRENgTHSp vertical integration, making us independent of outside suppliers,

giving us a major technical advantage and better r&d.

p technical expertise. Sioen products predominate where techni-

cal specifications are decisive.

p A “hands-on”, unbureaucratic corporate culture.

- 11 -

OUR COMMITMENTS

COMMITMENT TO OUR CUSTOMERS

we have to provide our customers with high quality

products and services at competitive prices. we have to

meet our customers’ demands and win and maintain

customers’ trust.

COMMITMENT TO OUR EMPLOyEES

we have to offer our employees an attractive working

environment where there is room for personal development,

creativity, responsibility, and career opportunities.

COMMITMENT TO THE COMPANy’S SHAREHOLDERS

we have to protect their investment and every year provide

them with an acceptable return.

COMMITMENT TO OUR bUSINESS PARTNERS

we have to build partnerships and mutual beneficial

relationships with our suppliers and contractors.

COMMITMENT TO SOCIETy

Sioen companies work in a wide variety of changing social,

political and economical environments. we have to conduct

business responsibly by observing the laws, supporting

human rights, respecting the environment and by creating

additional jobs.

Sample of Sioen technical clothing

- 12 -

OUR FUTURE FOCUS

if we want to realise our goals and live up to our business statement, we must decide what our

focus will be regarding the products we offer, the customer and end-users and the geographic

areas we want to cover.

OUR FUTURE PRODUCT OFFERING

We will focus on:

p customised products

p high end, specialised products

p recyclable/recycled products

p integrated features

OUR CUSTOMER/END-USER PROFILES

We will focus on:

p partnerships

p new sales channels

p niche specialists in technical markets

p administration and tenders

OUR FUTURE GEOGRAPHIC AREAS

We will expand our sales to:

p north America

p StAn-countries

p india

- 13 -

the Sioen group

Part of the Sioen direct coating line

- 14 -

vERTICAL INTEgRATION

As a fully integrated group, Sioen covers every stage of the production and conversion 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.

bASE MATERIAL

COATING STAGE

FINISHING

1. Spinning of polyester

high-tenacity yarns

2. weaving of the yarn into

various base textiles

3. preparation of colourings (pigment

pastes, varnishes, inks and dyes) =

Sioen Chemicals

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

transfer coating, online coating, extrusion coating, calendering)

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

- 15 -

DIvERSIFICATION

Sioen products play an important part in our daily lives, protecting us and our goods and generally improving

our quality of life.

throughout the years we have established a wide range of products through internal development of new

products and markets, acquisitions and licensing of new technologies. this diversification allowed us to

spread the risk, create growth, exploit our know-how and use the available resources and capacities more

efficiently.

Sioen provides, amongst others, filters to treat the water we drink, side curtains on trucks, publicity banners,

mattress covers and protective clothing for medics, firefighters, police forces, soldiers and pilots. 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.

- 16 -

INNOvATION

innovation starts from a constant desire to be out front, exploring new territories,

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.

RESEARCH & DEvELOPMENT

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.

- 17 -

RECENT R&D REALISATION:

MEMbRANES FOR bIOGAS CONTAINERS

Sioen developed a range of technical membranes for

silos containing non grease-holding products and

grease-holding products (like slaughter waste, dung,

orange scraps, peanut scraps, corn …).

Anaerobic fermentation takes place and the

technical membrane should resist methane, water,

hydrogen, carbon monoxide, carbon dioxide,

mercaptanes, sulphides and ammonia.

Sioen offers a range of membranes, depending on

size, structure, engineering and the type of waste

that is kept in the silos.

Close up weaving loom

- 18 -

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. 55 people are involved in r&d and testing. innovation is a state of mind in

all departments of the group: production, sales, marketing, r&d, quality, management, ... direct expenditure on r&d

and testing amounted in 2008 to eur 6.1 million (= 1.7% of turnover) including production time and related costs.

As well as its central r&d unit, Sioen has 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, and iwt-projects.

RECENT R&D REALISATION: TECHNICAL PASTES

in the second quarter of the year, we’ve increased the production of flame

retardant pigment pastes. in addition, we’ve realised a breakthrough in the

development of black water-based paste (aqua paste) for the colouring of

seats. this is an extremely technical application with strict technical specs.

- 19 -

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, thermal radiation, chemical resistance, bullet and knife impact, 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.

RECENT R&D REALISATION: bODy ARMOUR SUITS

SAt offers a selection of the most sophisticated armours available on the market

today. we specialise in police, military and Security markets offering our custo-

mers tailor made products. we use the best materials in both our armour and

carriers and have developed wearing systems that enhance wearer comfort and

actively control body heat. For the development of the SAt garments, we have an

own ballistics laboratory, including a sophisticated shooting range.

p Test for limited flame spread p Test of exposure to heat radiation

A horizontal flame of 25 mm is pointed on a vertical fabric for 10 seconds.

the fabrics of the suit are exposed to an intense radiant heat.

p Test for limited flame spread EN533 p ballistics laboratory

en533 aims to prevent that the wearer gets extra injuries due to the burning of his clothing.

p Test for convective heat p R&D lab for technical coated textiles

this test simulates the fire fighter being entrapped by flames; he must fight his way through the flames.

- 20 -

RECENT R&D REALISATION: FIRE FIGHTERS CLOTHING

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 flame

retardant garments.

we have supplied fire-fighters’ clothing to the brigades of major cities

in the netherlands (some cities are situated in the europoort zone; the

largest harbour/industrial area in europe). we have also supplied

brigades in France, belgium and one of the most important fire-fighters

training centres (with about 20 000 trainees per year) equipped its

instructors with Sioen fire-fighters’ suits.

RECENT R&D REALISATION: SPECIALITIES yARN

through intensified process engineering and r&d, we can boast a

very high efficiency and productivity at our spinning plant. Clever

storage of the bobbins increases the quality and the efficiency of

delivery to the various weaving plants and to external customers.

we produce high tenacity polyester yarns for our own use and special

custom made yarns for external customers.

- 21 -

RECENT R&D REALISATION: MEMbRANES FOR TExTILE ARCHITECTURE

Sioen is world market leader in technical direct coated textiles for various applications. A very advanced

and high tech type of technical textile is used for textile architecture. in a way, this is building with coated

textiles. Strict european and international regulations define the technical characteristics of each type of

technical textile (there are five types).

the new range of Sioen- Sioline consists of a number of products for each textile architecture type. we

offer lightweight and heavy weight coated textiles for rooftops, sides, tensioned structures, tents, halls,

domes …

- 22 -

RECENT R&D REALISATION: MEGA DOME

At our workshop Saint-Frères Confection we’ve produced a very special inflatable “dome” (silo): 6.000 m² in

one piece of almost 7 tons. inflated, the dome has a diameter of 51 metres and is almost 28 metres high and

is used for keeping 30.000 tons of grains.

Again a smart proof of our ‘vertical integration’: we produce the yarn, weave the base cloth, produce the

pigment pastes for coating and process the technical textile into a finished dome.

the recent r&d projects given in this annual report serve as examples of the performance of our r&d team.

permanent support by our own research laboratories forms part of our active innovation policy. it helps us not only

to anticipate the wishes of our customers, but also to retain and further consolidate our technological advances.

RECENT R&D REALISATION:

NON WOVEN FOR PIPE RENOVATION

Sioen nordifa has developed a new non-woven dedicated to

the rehabilitation of large diameter pipes. one of our

customers has installed a 420 metre long protective sleeve

with a diameter of 1500 mm for the renovation of water pipes

at one of the biggest construction sites in europe.

- 23 -

HEALTH AND SAFETy

All our companies have a sustainable approach to

health and safety. to this end, Sioen companies

manage these matters as a critical business

activity. Safety is a core value and safe behaviour is

encouraged and respected in all Sioen companies.

OUR GOALS ARE:

p to eliminate work-related injury and illness.

p to provide work environments that do not

compromise the health or safety of each

individual.

p to ensure that this politics is applied throug-

hout the whole organisation.

Oil boominflated

PVC coated textiles for oil booms

- 24 -

ENvIRONMENT

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. For Sioen, care for the environment is a constant concern.

RECyCLING

in our business statement we say: “we will develop environmental friendly coating and converting technologies to

set a winning standard for primarily green safety and protective products to create sustainable profitable growth.”

therefore, 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.

ENVIRONMENT-FRIENDLy PRODUCTION AND ENERGy RECOVERy

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 and we use heat ex-

changers.

ELECTRICITy GENERATION

the new extension at Ardooie (veranneman production hall plus storage warehouse) is fitted with electricity

generating solar panels.

- 25 -

QUALITy

At Sioen industries the customer and customer satisfaction take centre stage.

this calls for an approach in which the quality of the finished products and services provided must meet

the customer’s highest demands. Sioen industries therefore does not confine itself to just checking the

end product, but implements an efficient quality policy to ensure appropriate monitoring throughout the

entire production and sales process.

we demand a constant level of quality from all our suppliers and employ the necessary specialists to carry

out permanent monitoring on the shop floor and random sample checks. here, Sioen industries makes use

of the latest communication and it applications.

however, Sioen industries has not only been concerned with the quality of its products. Careful attention is

also being given to superior working conditions. Creation of a stimulating working climate, in which

everyone gets the chance to develop their abilities, is one of the keystones of the policy.

ON ALL LEVELS

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. it is a key

principle for all employees of the Sioen industries group as they perform their work, whether in produc-

tion, sales, accounting, customer service, r&d or purchasing. every employee contributes to quality in their

own field.

- 26 -

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 AQAp-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, manage-

ment of resources, production of the product, and measurement, analysis and improvement – form the core of Sioen’s

integrated quality assurance system.

HUMAN RESOURCES

the human capital at Sioen industries is an important link in the expansion of the company. 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.

Bel

gium

Chi

naG

erm

any

Fran

ceIr

elan

dIn

done

sia

Net

herl

ands

Pola

ndPo

rtug

alTu

nisi

aU

KU

krai

neU

SA

0

500

1000

1500

2000

2500

899

15 629

133 27

338

2575

726 2116

2222

PerSonnel Per country 2008total: 4 676

PerSonnel Per DiviSion 2008

ChemiCAlS

CoAting

AppArel

group

induStriAlAppliCAtionS

4 %

13 %

69 %

1 %

13 %

- 27 -

Sioen in the world

1 ARDOOIE

Sioen Coating division / Apparel division / veranneman tt

Sioen Coating distribution

2 BORNEM

european masterbatch (emb)

Fillink technologies

3 KERKSKEN

tiS

4 LIEGE

Sioen nordifa

5 MESLIN - L’EVÊQUE

inducolor

6 MOUSCRON

Sioen Fibres - distribution/spinning

Sioen Fabrics - weaving, coating and calendering

7 POPERINGE

Coatex

7

6

1 2

34

5

- 28 -

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 MARUNDA - 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 NEDERLANDS

19 Sioen tunesie - CtS - Sioen Zaghouan - TUNIS - TUNISIA

20 roland ukraine - RIVNE - OEKRAINE

21 roland tilts uK - BRADFORD - UK

22 mullion manufacturing ltd. - SCUNTHORPE - UK

23 roltrans group America - TEXAS - USA

109

1816

20

12

11

19

17

21 22

15

23

13

14

8

- 29 -

the Sioen divisions

SIOEN COATING DIVISION

p. 31 Spinning, weaving

p. 33 Coating: 5 coating techniques

p. 34 main product markets

p. 35 Competitive position

p. 36 geographical markets, sales organisation

SIOEN CHEMICALS DIVISION

p. 38 pigment pastes, inks, varnishes, colour powders

and dispersions

p. 41 main product markets and competitive position

p. 42 geographical markets, sales organisation, r&d driven

SIOEN APPAREL DIVISION

p. 43 introduction

p. 44 main product markets

p. 45 niche markets

p. 49 production sites

SIOEN INDUSTRIAL APPLICATIONS

p. 50 our activities

p. 51 our markets

p. 54 geographical markets and sales organisation

- 30 -

coating DiviSion

in this division, vertical integration takes centre-stage. this means that Sioen handles the entire production

process of spinning, weaving, pigmenting and coating.

- 31 -

SPINNING

Sioen has one of the most modern spinning mills in the world (mouscron-

belgium), 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. in addition, we spin

an increasing number of custom made yarns for external customers.

WEAVING

the yarn is supplied as raw material to the three weaving mills (mouscron,

Ardooie, Kerksken- belgium). each weaving mill has its own specialisation:

sailcloth, open structure textiles, high tenacity textiles used as base material

for coating, airbag textiles, protective fabrics for body armour and forestry,

etc.

the fabrics all meet high technical requirements for tensile strength and tear

resistance, limited flame spread and light fastness.

- 32 -

COATING

Coating is covering (pvC, pu, silicone or other) a substrate (nylon, polypropy-

lene, polyester, polyamide, cotton, wool, woven or non-woven fabrics or

sheets), to enhance and alter the physical properties and appearance.

the end result is a technical textile with properties such as chemical resi-

stance, anti-stain, vapour and gas resistance, electrical conductivity, water

resistance, abrasion resistance, anti-static, printability and fire resistance.

Sioen industries applies five main coating processes, on eight coating lines

(5 in belgium, 2 in France and 1 in portugal).

PREPARATION OF COATING LAyER/COLOURING

the coating layer can consist of pvC, polyurethane, silicone or other

polymers, which are sourced from major chemicals companies. Sioen

produces its own pigment pastes for colouring the coating layer (See also

Sioen Chemicals division p. 38-42). pastes are mixed in fully automatic paste

kitchens and then brought to the coating line by robots.

- 33 -

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, textile

architecture, publicity banners, 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:

the granules (different polymers) are extruded and rolled on a carrier

(textiles, non-woven, knitted fabrics, paper, etc.).

Applications: ventilation tubes, pond liners, greenhouse foil, sewer

renovation, etc.

Calendering (rolling):

we make tpo (thermoplastic polyolefin) and pvC films that are embossed

to give the required aspect (can be motife/texture).

Applications: car dashboards, door panels, sun visors, wall coverings,

pond liners, etc.

- 34 -

MAIN PRODUCT MARkETS

part of the production of the coating division is used internally as base material in one of the other divisions.

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 in each sector as these can vary considerably from one year to the other.

TRANSPORTATION- 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 (accounting for around 40% of

external turnover of the Coating division. the remaining 60% is divided amongst the

other markets).

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-bo-

died.

GEOTExTILES AND ROOFING (online coating): technical open structure textiles

are used as reinforcement netting for roads, roofs and all types of plates. with approxi-

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

TRANSPORTATION- AUTOMOTIVE (direct coating, transfer coating, calende-

ring): 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 covers etc.) and airbags.

FLExIbLE, bREATHAbLE TECHNICAL TExTILES (transfer coating):

these are mainly used 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 compete 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.

- 35 -

COMPETITIvE POSITION

60% of the market 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 and Spain amongst others, certain of

whom go opportunistically in and out of markets from one year to the next.

Sioen accounts for over 40% of all european coating capacity.

TARPAULINS AND TRUCk COVERS

are the largest application for heavy coated fabrics in western europe, with an estima-

ted market volume of 90 million m² in 2006, expected to reach 122 mm² by 2010. Sioen

and one other german competitor dominate this market.

in 2008, there was a general decline in the transportation market. this had immediate

effect on the Sioen turnover. our market share was not affected.

GEOTExTILES (around 20 mm² worldwide) is a steadily expanding market. Sioen is

world market leader in this segment.

AUTOMOTIVE: the new calendering facility will enable Sioen to be more flexible and

expand its geographical market. however, since mid 2008, this market is under

enormous pressure.

in the market for FLExIbLE 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 absolute market leader, is steady at

around 20 mm².

- 36 -

TExTILE ARCHITECTURE (direct, extrusion and online coating):

textile architecture covers technical textiles for tents and structures. As a fully integrated

coater, we fine-tuned and dedicated our machinery in 2008 in such a way that we are now

capable of producing high quality textile architecture membranes. we coat the back and

front side in one run, immediately followed by a special lacquering treatment, providing a

better overall tension of the membrane.

SIGN (direct, extrusion and online coating):

Sign is the collective name for printable technical textiles that are used for publicity

banners. Although competition of low cost –lower quality laminates from Asia is high,

Sioen has a solid brand name with high quality banner material. we sell a substantial part

of products of this segment in Asia.

NICHE MARkETS (direct, extrusion, online, transfer and calendering coating):

Apart from these 7 major markets, Sioen also produces technical textiles, films and sheets

for biogas containers, rolling doors, bouncing castles, boat covers, machine protection,

dung covers, oil booms, ventilation tubes, sewer liners, bird nets, roofing, bags, mattress

covers, pond liners. each product has its typical high technical requirements.

MAIN PRODUCT MARkETS

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 geotextiles, 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.

SALES ORgANISATION

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.

- 37 -

bILLbOARDS (sign) is the second largest application in the western european heavy

coated fabrics market (estimate: 45 mm²). Sioen has a market share of about 10%. with a

lower level of technicality, this sector faces competition from Asia.

COMPETITIvE POSITION

TExTILE ARCHITECTURE (20 mm²) is one of the fastest-growing markets for coated

textiles worldwide. entry barriers are the high technical characteristics of the product and

the stringent guarantee requirements. one competitor operates exclusively in this market

and has a significant market share. Sioen now has capacity and capability to expand in

this market in 2009 and the following years.

NICHE MARkETS

depending on the type of product, Sioen dominates the market or is a smaller player. the

volumes of these specific niche markets are small compared to the 7 principal segments.

the complex technical nature and thus the high added value of these products allow

bigger margins. we will continue to focus on these kinds of products.

geogrAphiCAl SpreAd 2008 geogrAphiCAl SpreAd 2007

germany

France

belgium

eastern europe

netherlands

germany

France

belgium

eastern europe

netherlands

great britain

italy

Scandinavia

other

great britain

italy

Scandinavia

other

12 % 11 %

16 %

7 %

11 %

7 %5 %

8 %

4 %

30 %

15 %

7 %

21 %7 %

5 %

7 %

4 %

20 %

- 38 -

Sioen cheMicalS DiviSion

Sioen Chemicals produces pigment pastes, inks, varnishes, colour powders and colour dispersions at two

locations in belgium and one in France.

- 39 -

THE PRODUCT

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 Chemi-

cals also produces specific flame retardant pastes. it is one of the only manu-

facturers in the world of high tech pastes that render textile invisible to military

infrared cameras.

Inks. Sioen Chemicals produces water-based, solvent-based and uv inks for

wide and super wide format digital printing and decorative inks.

- 40 -

Colour powders and colour dispersions. these are used to dye

paint, plaster, wax, cement, etc.

Varnishes. Sioen Chemicals offers a wide range of water and solvent borne

and uv-curable varnishes and lacquers. 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.

- 41 -

MAIN PRODUCT MARkETS

About 85.5% of production is sold to external customers. the

other 14.5% is used internally as base materials in the coating

division.

the Chemicals division is a niche specialist, focussing on very

technical and special custom made products. there are 4

major groups for colour pastes (pvC, pu, Silicone, Aqua):

p transportation (tarpaulins)

p Automotive

p Sealants

p Coating

there are 4 major application areas for our decorative

inks:

p wallpaper

p decorative flooring

p decoration paper

p r&F pvC

the inks for wide and super-wide format digital printing are

used mainly for banners and billboards.

the colour powders and dispersions are bottled from

30 ml to 250 ml for colouring paints, clay, concrete, chalk,

fillers, … for do-it-yourselves and professional users.

the market for colour pastes (both coatings and colour

pigments for painting) has decreased under the influence of

a lower demand from the (technical) textile sector. decorative

inks continue to perform well and we are seeing a rise in

volume here.

- 42 -

COMPETITIvE POSITION

Sioen Chemical’s organisation’ and the fact of having the Sioen group as its largest customer, gives 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.

COST ADVANTAGE

vertical integration of production processes yields products that are used as raw materials in coating and varnishing.

this allows effective management of costs and ensures regular supply, constant quality monitoring and volume.

SERVICE AND TAILOR MADE PRODUCTS

more than any other pigment pastes, varnish or ink producer, we are able to provide solid quality products. Swift

delivery of standard products and quick development of special tailor made products.

gEOgRAPHICAL MARkETS

14.5% 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.

SALES ORgANISATION

from the bornem (belgium) headquarters and the other subsidiaries.

R&D DRIvEN

the Sioen Chemicals division boasts a well-working r&d centre with labs in all

production plants and dedicated professionals each specialising in their main

market. they focus on product development and innovation, but also on process

improvement and product optimisation. thanks to their efforts we have develo-

ped an extensive range of products suitable for use in a multitude of applications.

OUR CORE ACTIONS OF 2008 AND OF THE FUTURE ARE:

p Quality control and optimization of the existing productions & formulations

p Finding substitutes for non-reach compliant products

p growth projects in cooperation with strategic customers

p Sourcing projects on alternative raw material suppliers

- 43 -

aPParel DiviSion

HigH quality tecHnical PROtectiOn clOtHing

Sioen Apparel division is an innovative producer with a broad range of high end technical protective clothing.

these comply with the most stringent european norms and regulations for amongst others rainwear, high visi-

bility clothing, and flame retardant clothing, anti static and flame arc resistant clothing and chemical protection.

Sioen is active in many different niches where people daily work in many different circumstances and where

safety, comfort and security are major issues. examples are: fire fighters clothing, chainsaw protection, flota-

tion suits, bullet proof vests, clothes for operation theatres.

Quality and flexibility go together with profitability and added value. thanks to our constant innovation, we

are european market leader.

i High tech i High Visibility i agriculture i chemicals i Forestry i Flotation i

- 44 -

HIGH VIS

CHEMICAL ARC

HIGH TECH

our high tech clothing offers maximum protection in changing working and weather environments.

the high tech range is a combination of solid experience and interesting innovation.

the high visibility safety range of Sioen includes a broad selection of fluorescent workwear for

summer as well as winter periods. thanks to our high-vis range the wearer is seen and accidents

can be avoided.

protection and safety in the chemical and petrochemical industry is becoming more important

every day, not least because of the stringent european regulations. Sioen offers a complete range

of chemical and flame arc resistant clothing that complies with these norms and regulations.

- 45 -

FOOD

SIO-FIT

AGRO

Clothing for agriculture and horticulture has to be practical, waterproof, breathable, friction

resistant and supple. Farmers and growers have to be able to work comfortably in any condition.

Flexothane Kleen ensures that our clothes comply with all hygienic and safety regulations in

the food industry. the nicewear range of Sioen offers protection up to -40°C. it combines two

high tech tissues that are supple and water repellent on the outside and on the inside iso-soft

guarantees a high insulation.

in the Sio-fit range you will find t-shirts and polos in many colours and with many kinds of retro-

reflecting stripes and a high wearing comfort. the range includes our new Sio-cool concept,

clothes made of multi-functional yarns with fast drying, anti bacterial and deodorising characteristics.

- 46 -

OTHER MARkETS WE ARE ACTIvE IN!

Siofire-vidal develops protective clothing for fire fighters. Sip protection guarantees safety and chainsaw protection

in forestry. Sioen Armour technology specializes in bullet- and stab proof solutions for police, defence and security

companies. mullion produces flotation suits, life jackets and survival suits. baleno aims for outdoor, hunter and

fishermen’s clothing. Siomed produces textiles for medical sector and military produces uniforms and protective

clothing for all kinds of military applications.

Forestry governmental services tree surgeon

SIP® PROTECTION - chainsaw protection

For more that 25 years, Sip protection has invested in the development, design and

production of protective clothing for foresters and people using chainsaws.

due to this constant investment, we can commercialise products that comply with the

stringent european en381 norms and that are ‘at the same time’ light, comfortable and

easy to clean.

belgian Fire fighter suit French suit dutch suit

SIO-FIRE / VIDAL - fire fighters clothes

more and more fire fighter brigades chose the intervention clothing of Sioen. these top

quality suits guarantee optimal protection against the many dangers this profession

engenders. After an international tender, the belgian ministry accorded the multiyear

contract to Sioen. Satisfaction surveys show that the fire fighters clearly appreciate

Sioen garments.

- 47 -

harbour Flotation suits buoyancy

MULLION - flotation suits and life jackets

mullion specialises in life jackets, flotation suits and buoyancy suits for offshore, com-

mercial navigation, governments and saving brigades.

police overt police tactical Security

SAT - body armour

Sioen Armour technology produces a range of body armour products for a large number

of threats. Since its creation, the range has extended to a large product portfolio. SAt

specialises in bullet and stab proof solutions for police, military and security.

- 48 -

Surgeons aprons operation sheets

SIO® MED - medical aprons and sheets

in 2005 Sioen started producing medical textiles for amongst others operating theatres.

we offer a full range of surgery aprons and sheets for hospitals.

outdoor

uniforms

hunting

body Armour

Fishing

Flotation suits

bALENO - outdoor, hunting and fishing

MILITARy - uniforms, protective clothing and body armour

baleno is the Sioen brand for modern, comfortable yet functional sports and leisure

wear. this extensive range is specifically designed for the protection of outdoor sports

and leisure and for hunters and fishermen. At the same time, the baleno clothes are

elegant and functional for daily use.

military applications are a growing market for Sioen and we offer a variety of products.

this extends to uniforms and protective clothing and many forms of ballistic protection.

we are active in belgium and abroad and have a very strong project approach.

MILITARy

- 49 -

our ProDuction PlantS aBroaDpt Sioen and pt Sungintex (Jakarta- indonesia) are more than just production plants. we offer added value to

all aspects of your project from conception of your clothes (design, fabrics selection and special techniques) to

the eventual production, distribution and marketing. thanks to our technological expertise and to the latest

state-of-the art production techniques, we offer a competitive advantage to your clothing range.

in addition to Jakarta, we are also situated in tunisia (CtS), ireland (donegal protective Clothing), France (vidal)

and the united Kingdom (mullion manufacturing ltd. Scunthorpe).

our characteristics are amongst others quality, comfort, price-quality relation-

ship, speed, reliability, flexibility in combination with ethical business.

- 50 -

inDuStrial aPPlicationS DiviSion

this division focuses on finished products and as a result processes coated fabrics, pvC membranes and filters

for industrial applications.

- 51 -

the activities of the industrial Applications division are threefold and stand

at the end of the Sioen industries group’s value chain.

p the processing of membranes (mainly in-house coated pvC technical

textiles and foils) into finished and semi finished products such as kadors,

pond and dam liners, tents, silos, camouflage nets, …

p the production of felt and filters

p the production of truck curtains, roofs and tilts

MARkETS

the division covers a wide range of markets, including automotive, leisure, the food industry, heavy industry and

chemicals, transport and mining.

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- sided pvC coated

polyester fabric, used primarily for intrusion-resistant truck and train tarpaulins and side-curtains.

CARAPAx: 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 aramid and technical

coated textile.

kadors carapax lasercutting

- 52 -

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 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, 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.

felt samples evacuation tent pond liner

- 53 -

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 40%+ market share in curtains for

new trucks. Acquired by Sioen in 2003, the company focuses on large volume, batch production.

side curtain camouflage net side curtain

- 54 -

gEOgRAPHICAL MARkETS

over 34.9% 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

65.1% 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. we emphasise on cross-selling.