annual report 2006 about sioen
DESCRIPTION
Annual Report 2006 about SioenTRANSCRIPT
100 YEARS OF
Summary
Profile 1
Our products 2
100 years of Sioen 4
Innovation 6
Letter to shareholders 8
Mission & Strategy 10
Expertise 12
Expertise right down the line 14
Group Structure 15
Sioen worldwide 16
Coating division 18
Apparel division 24
Industrial applications 28
Vision 30
Human resources 32
Research & Development 33
Quality 34
Environment 35
Corporate information 1
Letter to shareholders 3
Report from the Board of Directors 5
Group Structure 9
Share Information 10
Corporate Governance 12
General information 16
Financial overview 19
Definitions 77
Addresses 78
Only the English version of the annual report has evidential value.
Innovation
Expertise
Vision
ANNUAL REPORT
2006
A100 YEARS OF SIOEN AND TEXTILES
Innovation
Expertise
Vision
100 YEARS OF
Summary
Profile 1
Our products 2
100 years of Sioen 4
Innovation 6
Letter to shareholders 8
Mission & Strategy 10
Expertise 12
Expertise right down the line 14
Group Structure 15
Sioen worldwide 16
Coating division 18
Apparel division 24
Industrial applications 28
Vision 30
Human resources 32
Research & Development 33
Quality 34
Environment 35
Corporate information 1
Letter to shareholders 3
Report from the Board of Directors 5
Group Structure 9
Share Information 10
Corporate Governance 12
General information 16
Financial overview 19
Definitions 77
Addresses 78
Only the English version of the annual report has evidential value.
Innovation
Expertise
Vision
ANNUAL REPORT
2006
A100 YEARS OF SIOEN AND TEXTILES
Innovation
Expertise
Vision
0
5
10
15
20
Group profitConsolidated CashflowEBITEBIT/TurnoverCashflow/Turnover
93 94 95 96 97 98 99 00 01 02 03 04 05 06
Key f igures 1993-2006 (in millions of euros)
40
50
60
Added valueGross marginTurnoverGross margin %
0
50
100
150
200
250
300
350
400
93 94 95 96 97 98 99 00 01 02 03 04 05 06
Key f igures 1993-2006 (in millions of euros)
CoatingApparelIndustrial applications
93 94 95 96 97 98 99 00 01 02 03 04 05 06
Investments 1993-2006 (in millions of euros)
Capital & reserves/minority interestsProvisionsST liabilitiesLT liabilities
93 94 95 96 97 98 99 00 01 02 03 04 05 06
Financing of assets 1993-2006 (in %)
0
1000
2000
3000
4000
5000
TotalCoatingApparelIndustrial Applications
93 94 95 96 97 98 99 00 01 02 03 04 05 06
Development of employment 1993-2006
96 97 98 99 00 01 02 03 04 05 06
Stock price ( to 14-03-07) (in EUR)
CONSOLIDATED KEY FIGURES ( in mil l ions of euros) (1)
2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR
Profi t & LossNet sales 339.4 316.2 309.8 272.8 237.7 226.0 192.4 161.1 141.2 107.9 85.1Operating profi t (EBIT) 25.9 25.5 27.0 27.2 24.6 33.8 32.6 28.4 19.6 15.0 9.7Financial result (6.6) (5.5) (7.3) (11.0) (8.7) (6.7) (3.0) (1.3) (1.7) (1.2) (1.1)Profi t on ordinary activities before taxes 19.3 20.0 19.6 16.2 15.9 27.1 29.6 27.1 17.9 13.8 8.6Profi t on ordinary activities after taxes 12.2 13.6 13.1 8.9 11.0 17.3 19.0 17.6 12.3 9.1 6.8EBIT (8) 25.9 25.5 27.0 24.4 23.1 32.4 31.5 27.3 19.0 14.5 9.2EBITDA (9) 44.8 43.6 44.8 52.8 42.8 50.9 45.0 37.8 27.1 19.6 13.2Cashfl ow (4) 31.5 29.5 31.1 37.3 30.2 35.8 32.5 29.5 20.7 14.2 10.8Net profi t (group share) 12.2 13.6 12.3 8.6 10.0 16.9 18.8 18.6 12.2 9.0 6.5Depreciation 17.9 17.9 17.8 22.1 19.8 18.6 14.1 11.6 7.1 4.7 3.2Personnel costs 67.6 63.5 61.7 54.5 47.0 42.8 34.5 30.9 24.1 17.3 13.0Number of employees (in units) 4 645 4 645 4 500 4 689 4 271 3 924 3 420 2 857 2 555 1 552 1 231Balance sheetEquity 135.8 129.4 118.3 123.5 125.3 123.9 112.0 97.5 79.8 33.6 25.1Long-term fi nancial debt 128.5 66.9 68.5 89.0 95.1 83.4 66.2 57.3 42.5 35.8 30.3Net fi nancial debt (2) 147.8 126.8 117.7 148.1 134.6 118.4 91.6 71.1 56.7 44.7 40.6Balance sheet total 371.8 337.7 330.7 346.9 331.8 310.3 262.9 227.6 185.3 112.6 89.5Working capital (3) 115.2 107.6 90.9 108.9 118.5 117.3 101.4 81.4 73.6 43.6 40.7Net investment in tangible fi xed assets (10) 23.1 16.6 7.1 11.9 30.6 27.1 27.4 28.3 22.4 15.6 10.9Fixed assets 150.4 142.3 141.4 175.8 153.1 138.9 115.7 99.5 73.6 40.7 29.1Ratio’sEBIT (8) 7.6% 8.1% 8.7% 9.0% 9.7% 14.3% 16.4% 17.0% 13.5% 13.5% 10.8%EBITDA (9) 13.2% 13.8% 14.5% 19.4% 18.0% 22.5% 23.4% 23.5% 19.2% 18.1% 15.5%Net profi t margin (7) 3.60% 4.30% 4.24% 3.3% 4.4% 7.6% 9.9% 11.8% 8.9% 8.5% 7.9%Cash fl ow/net sales 9.30% 9.34% 10.04% 13.7% 12.7% 15.8% 16.9% 18.3% 14.6% 13.2% 12.7%Liquidity (current assets/current liabilities) 2.11 1.38 1.33 1.40 1.78 1.91 2.05 2.11 2.12 1.92 2.00Solvency (equity/balance sheet total) 36.5% 38.3% 35.8% 35.6% 37.7% 39.9% 42.6% 42.8% 43.1% 29.8% 28.1%Net fi nancial debt/equity 1.09 0.98 1.00 1.20 1.07 0.96 0.82 0.73 0.71 1.33 1.62Return on equity (5) 9% 11% 10% 6.9% 8.1% 15.1% 19.3% 23.4% 36.3% 35.7% 34.8%Return on capital (6) 6.23% 7.09% 8.13% 10.0% 9.6% 15.6% 18.1% 19.3% 23.3% 21.5% 18.3%
Defi nitions see p77(1) Since 2004 IFRS/before BGAAP (2) Financial debt - other investments & deposits and cash & cash equivalents 3) Financial fi xed assets + current assets (less other assets & deposits and cash & equivalents) - non-fi nancial liabilities up to one year - accrued charges and deferred income.(4) Consolidated net profi t + depreciation - + provisions for liabilities and charges + impairments and valuation allowances + deferred taxes (5) Net profi t (group share) / equity(6) Operating profi t / (equity + minority interests + provisions for liabilities and charges + net fi nancial debts)(7) Net profi t / net sales for the fi nancial year (8) Earnings Before Interest and Taxes = Operating profi t - amortization of consolidation differences (goodwill) (9) Earnings Before Interest, Taxes, Depreciation and Amortizations = Operating profi t + depreciation + provisions for liabilities and charges + impairments and valuation allowance(10) Acquisition of tangible fi xed assets
CONSOLIDATED KEY FIGURES PER SHARE (1) (2)2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR
Operating profi t 1.21 1.19 1.26 1.27 1.15 1.58 1.52 1.33 0.92 0.75 0.48Profi t on ordinary activities after taxes 0.57 0.64 0.61 0.42 0.52 1.27 0.89 0.82 0.58 0.43 0.32Net profi t (group share) 0.57 0.63 0.57 0.40 0.47 0.79 0.88 0.87 0.57 0.45 0.32Cashfl ow 1.47 1.38 1.45 1.74 1.41 1.67 1.52 1.38 0.97 0.71 0.54Consolidated equity 6.35 6.05 5.53 5.77 5.86 5.79 5.24 4.56 3.73 1.68 1.26Gross dividend 0.2600 0.2400 0.2200 0.20 0.17 0.16 0.14 0.12 0.09 0.07 0.05Net dividend 0.1950 0.1800 0.1650 0.15 0.13 0.12 0.11 0.09 0.07 0.05 0.04Pay-out (%) 45.6% 37.8% 38.4% 49.8% 35.9% 20.2% 15.8% 14.2% 15.7% 15.5% 14.5%Maximum share price 10.41 10.49 10.70 9.16 14.95 23.51 33.65 47.5 43.13 10.68 4.02Minimum share price 8.00 7.85 8.24 4.70 6.00 10.1 18.4 28.5 9.92 3.92 3.84Price at end December (3) 9.60 8.30 10.29 8.24 7.65 11.50 20.90 33.00 38.18 9.97 3.92Change in share price (5) 16% -19% 35% 8% -33% (45%) (36.7%) (14%) 283% 154% 13%Price/Earnings ratio (5) (6) 16.8 13.1 18.0 20.5 16.4 14.5 23.8 37.9 67.0 22.1 12.1Price/Cash fl ow ratio (5) (7) 6.5 6.0 7.1 4.7 5.4 6.9 13.8 23.9 39.4 14.0 7.3Average daily trading volume (no. of shares) (4) 13 396 12 771 6 550 4 406 5 310 5 104 9 548 13 216 26 671 20 950 43 410Average monthly trading volume (no. of shares) (4) 274 892 268 200 137 550 92 895 112 837 107 194 199 710 277 530 557 863 434 762 855 860Annual trading volume (in EUR millions) 30.1 29.5 16.2 8.3 10.4 20.7 63.7 122.5 162.6 33.9 8.2Number of Sioen shares outstanding (in thousands) (2) 21 391 21 391 21 391 21 391 21 391 21 391 21 391 21 391 21 391 19 965 19 965Stock market capitalization (in millions) (5) 205.3 177.5 220.1 176.3 163.6 246.0 447.1 705.9 816.6 199.0 78.2
(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 14 March 2007 the Sioen Industries share was trading at EUR 9.56. (4) 1996 data are strongly infl uenced by heavy trading shortly after the stock market fl otation on 18 October 1996. (5) Price at end of December (6) Share price / net profi t per share (7) Share price / cash fl ow per share
0
10
20
30
40
50
SioenEurostoxx50
0
10
20
30
40
50
0
5
10
15
20
Group profitConsolidated CashflowEBITEBIT/TurnoverCashflow/Turnover
93 94 95 96 97 98 99 00 01 02 03 04 05 06
Key f igures 1993-2006 (in millions of euros)
40
50
60
Added valueGross marginTurnoverGross margin %
0
50
100
150
200
250
300
350
400
93 94 95 96 97 98 99 00 01 02 03 04 05 06
Key f igures 1993-2006 (in millions of euros)
CoatingApparelIndustrial applications
93 94 95 96 97 98 99 00 01 02 03 04 05 06
Investments 1993-2006 (in millions of euros)
Capital & reserves/minority interestsProvisionsST liabilitiesLT liabilities
93 94 95 96 97 98 99 00 01 02 03 04 05 06
Financing of assets 1993-2006 (in %)
0
1000
2000
3000
4000
5000
TotalCoatingApparelIndustrial Applications
93 94 95 96 97 98 99 00 01 02 03 04 05 06
Development of employment 1993-2006
96 97 98 99 00 01 02 03 04 05 06
Stock price ( to 14-03-07) (in EUR)
CONSOLIDATED KEY FIGURES ( in mil l ions of euros) (1)
2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR
Profi t & LossNet sales 339.4 316.2 309.8 272.8 237.7 226.0 192.4 161.1 141.2 107.9 85.1Operating profi t (EBIT) 25.9 25.5 27.0 27.2 24.6 33.8 32.6 28.4 19.6 15.0 9.7Financial result (6.6) (5.5) (7.3) (11.0) (8.7) (6.7) (3.0) (1.3) (1.7) (1.2) (1.1)Profi t on ordinary activities before taxes 19.3 20.0 19.6 16.2 15.9 27.1 29.6 27.1 17.9 13.8 8.6Profi t on ordinary activities after taxes 12.2 13.6 13.1 8.9 11.0 17.3 19.0 17.6 12.3 9.1 6.8EBIT (8) 25.9 25.5 27.0 24.4 23.1 32.4 31.5 27.3 19.0 14.5 9.2EBITDA (9) 44.8 43.6 44.8 52.8 42.8 50.9 45.0 37.8 27.1 19.6 13.2Cashfl ow (4) 31.5 29.5 31.1 37.3 30.2 35.8 32.5 29.5 20.7 14.2 10.8Net profi t (group share) 12.2 13.6 12.3 8.6 10.0 16.9 18.8 18.6 12.2 9.0 6.5Depreciation 17.9 17.9 17.8 22.1 19.8 18.6 14.1 11.6 7.1 4.7 3.2Personnel costs 67.6 63.5 61.7 54.5 47.0 42.8 34.5 30.9 24.1 17.3 13.0Number of employees (in units) 4 645 4 645 4 500 4 689 4 271 3 924 3 420 2 857 2 555 1 552 1 231Balance sheetEquity 135.8 129.4 118.3 123.5 125.3 123.9 112.0 97.5 79.8 33.6 25.1Long-term fi nancial debt 128.5 66.9 68.5 89.0 95.1 83.4 66.2 57.3 42.5 35.8 30.3Net fi nancial debt (2) 147.8 126.8 117.7 148.1 134.6 118.4 91.6 71.1 56.7 44.7 40.6Balance sheet total 371.8 337.7 330.7 346.9 331.8 310.3 262.9 227.6 185.3 112.6 89.5Working capital (3) 115.2 107.6 90.9 108.9 118.5 117.3 101.4 81.4 73.6 43.6 40.7Net investment in tangible fi xed assets (10) 23.1 16.6 7.1 11.9 30.6 27.1 27.4 28.3 22.4 15.6 10.9Fixed assets 150.4 142.3 141.4 175.8 153.1 138.9 115.7 99.5 73.6 40.7 29.1Ratio’sEBIT (8) 7.6% 8.1% 8.7% 9.0% 9.7% 14.3% 16.4% 17.0% 13.5% 13.5% 10.8%EBITDA (9) 13.2% 13.8% 14.5% 19.4% 18.0% 22.5% 23.4% 23.5% 19.2% 18.1% 15.5%Net profi t margin (7) 3.60% 4.30% 4.24% 3.3% 4.4% 7.6% 9.9% 11.8% 8.9% 8.5% 7.9%Cash fl ow/net sales 9.30% 9.34% 10.04% 13.7% 12.7% 15.8% 16.9% 18.3% 14.6% 13.2% 12.7%Liquidity (current assets/current liabilities) 2.11 1.38 1.33 1.40 1.78 1.91 2.05 2.11 2.12 1.92 2.00Solvency (equity/balance sheet total) 36.5% 38.3% 35.8% 35.6% 37.7% 39.9% 42.6% 42.8% 43.1% 29.8% 28.1%Net fi nancial debt/equity 1.09 0.98 1.00 1.20 1.07 0.96 0.82 0.73 0.71 1.33 1.62Return on equity (5) 9% 11% 10% 6.9% 8.1% 15.1% 19.3% 23.4% 36.3% 35.7% 34.8%Return on capital (6) 6.23% 7.09% 8.13% 10.0% 9.6% 15.6% 18.1% 19.3% 23.3% 21.5% 18.3%
Defi nitions see p77(1) Since 2004 IFRS/before BGAAP (2) Financial debt - other investments & deposits and cash & cash equivalents 3) Financial fi xed assets + current assets (less other assets & deposits and cash & equivalents) - non-fi nancial liabilities up to one year - accrued charges and deferred income.(4) Consolidated net profi t + depreciation - + provisions for liabilities and charges + impairments and valuation allowances + deferred taxes (5) Net profi t (group share) / equity(6) Operating profi t / (equity + minority interests + provisions for liabilities and charges + net fi nancial debts)(7) Net profi t / net sales for the fi nancial year (8) Earnings Before Interest and Taxes = Operating profi t - amortization of consolidation differences (goodwill) (9) Earnings Before Interest, Taxes, Depreciation and Amortizations = Operating profi t + depreciation + provisions for liabilities and charges + impairments and valuation allowance(10) Acquisition of tangible fi xed assets
CONSOLIDATED KEY FIGURES PER SHARE (1) (2)2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR
Operating profi t 1.21 1.19 1.26 1.27 1.15 1.58 1.52 1.33 0.92 0.75 0.48Profi t on ordinary activities after taxes 0.57 0.64 0.61 0.42 0.52 1.27 0.89 0.82 0.58 0.43 0.32Net profi t (group share) 0.57 0.63 0.57 0.40 0.47 0.79 0.88 0.87 0.57 0.45 0.32Cashfl ow 1.47 1.38 1.45 1.74 1.41 1.67 1.52 1.38 0.97 0.71 0.54Consolidated equity 6.35 6.05 5.53 5.77 5.86 5.79 5.24 4.56 3.73 1.68 1.26Gross dividend 0.2600 0.2400 0.2200 0.20 0.17 0.16 0.14 0.12 0.09 0.07 0.05Net dividend 0.1950 0.1800 0.1650 0.15 0.13 0.12 0.11 0.09 0.07 0.05 0.04Pay-out (%) 45.6% 37.8% 38.4% 49.8% 35.9% 20.2% 15.8% 14.2% 15.7% 15.5% 14.5%Maximum share price 10.41 10.49 10.70 9.16 14.95 23.51 33.65 47.5 43.13 10.68 4.02Minimum share price 8.00 7.85 8.24 4.70 6.00 10.1 18.4 28.5 9.92 3.92 3.84Price at end December (3) 9.60 8.30 10.29 8.24 7.65 11.50 20.90 33.00 38.18 9.97 3.92Change in share price (5) 16% -19% 35% 8% -33% (45%) (36.7%) (14%) 283% 154% 13%Price/Earnings ratio (5) (6) 16.8 13.1 18.0 20.5 16.4 14.5 23.8 37.9 67.0 22.1 12.1Price/Cash fl ow ratio (5) (7) 6.5 6.0 7.1 4.7 5.4 6.9 13.8 23.9 39.4 14.0 7.3Average daily trading volume (no. of shares) (4) 13 396 12 771 6 550 4 406 5 310 5 104 9 548 13 216 26 671 20 950 43 410Average monthly trading volume (no. of shares) (4) 274 892 268 200 137 550 92 895 112 837 107 194 199 710 277 530 557 863 434 762 855 860Annual trading volume (in EUR millions) 30.1 29.5 16.2 8.3 10.4 20.7 63.7 122.5 162.6 33.9 8.2Number of Sioen shares outstanding (in thousands) (2) 21 391 21 391 21 391 21 391 21 391 21 391 21 391 21 391 21 391 19 965 19 965Stock market capitalization (in millions) (5) 205.3 177.5 220.1 176.3 163.6 246.0 447.1 705.9 816.6 199.0 78.2
(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 14 March 2007 the Sioen Industries share was trading at EUR 9.56. (4) 1996 data are strongly infl uenced by heavy trading shortly after the stock market fl otation on 18 October 1996. (5) Price at end of December (6) Share price / net profi t per share (7) Share price / cash fl ow per share
0
10
20
30
40
50
SioenEurostoxx50
0
10
20
30
40
50
�
Prof i le
As an integrated industrial group Sioen Industries is the most important player in the technical textile worldwide. Vertical and horizontal integration, diversification and permanent growth are the key concepts that allow Sioen Industries to look ahead with great promise.
Our business
Sioen Industries is:
- The world market leader in coated technical textiles,- A market leader in industrial protective clothing, - A specialist in fine chemicals - A global player in the processing of technical textiles
Our s t rengths
- Vertical integration, making us independent of outside suppliers and giving us unrivalled expertise.
- 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 in Europe and elsewhere.
�
Our PrOducTS :SIOEn InduSTrIES – PArT Of Our dAIly lIVES
discreetly, without our realizing it, Sioen products
play an important part in our daily lives, protecting
us and those providing us with essential services, and
generally improving our quality of life.
Sioen provides filters to treat the water we drink,
the side curtains on the trucks bringing food to our
supermarkets, and protective clothing for medics,
firefighters, police forces, soldiers and pilots
on whom our society depends. Sioen products
strengthen our roads, improve the safety and comfort
of the cars we drive, and allow us to enjoy outdoor
sports in all weathers.
TransportTruck tarpaulins and curtains, mud flaps, inflatable
containers, railway wagon tarpaulins, protective and
industrial clothing for railway, bus, transport and
airline companies
Automobile Airbags, dashboards, sun shades, door panels,
gearlever covers, floor mats, seats, filters, trunk
curtains
construct ion and road works reinforcement for gyproc plates, insulation, road
fortification, rubble nets for scaffoldings, high
visibility protective clothing, silos, storage tents, sun
screens, sewage, filters
Agricul ture, hort icul ture, forestry and food industry Windbreak nets, drainage, protective clothing,
damming film, filters, pond foil, ultra-low
temperature clothing, hygienic protective clothing
chemical and petrochemical industr ies Specific protective clothing, oil dams, filters
S I O E n I n d u S T r I E S I O u r P r O d u c T S
Sioen provides filters to treat the water we drink, the side curtains on
the trucks bringing food to our supermarkets, and protective clothing
for medics, firefighters, police forces, soldiers and airmen on whom our
society depends. Sioen products strengthen our roads, improve the safety
and comfort of the cars we drive, and allow us to enjoy outdoor sports in
all weathers.
�
Medical sectorMedical protective clothing, air filters, mattress
covers, pillow-cases
Air and water t reatment filters, air conditioning and mine shaft air ducts
navigat ion, f ishing industry and water sports flotation suits, life jackets, protective aquatic
clothing, inflatable boats, boat tarpaulins, yacht
canvas, ship tarpaulins
Public inst i tut ions clothing, firemen’s clothing, clothing for police and
army, railways, airlines and post offices, tents and
truck tarpaulins
Inter ior decorat ionyarns and pigments for carpets, wall coverings,
insulation, ceilings, etc.
Sports Gym mats, safety nets, children’s playing mats,
clothing for hunters, golfers and fishermen,
motorcyclist’s clothing, reflective clothing for joggers,
cyclists and other outdoor sportsmen, pool covers
and pool reinforcement nets, surfer’s, ski and skater’s
clothing
Tents camping tents, party tents, awnings, canopies, halls,
semi-permanent buildings, kadors
Publici ty and promotion Indoor and outdoor publicity banners, promotional
clothing
corporate identi ty wear clothing for courier services, electricity companies,
petrol stations, breweries, telecom companies,
airlines, etc.
�
�00 yEArS Of Sioen text i les t radi t ion
1907 – Adolf Sioen starts a weaving mill in
rumbeke under the name Sioen-Sabbe. This is the
golden age of the cloth weaving industry in western
Belgium. Adolf Sioen is succeeded by daniel Sioen,
who continues to run Sioen-Sabbe.
1950 onwards: the flemish and northern french
textile industry enters a period of slow decline,
with growing competition from cheap imports and
synthetics.
1960 – daniel’s son Jean-Jacques Sioen, then aged
�5, creates his own company in the up-and-coming
area of technical textiles, with a first primitive
coating line at Beveren. The company is successful,
producing at first artificial leather, plastic tablecloths
and later truck tarpaulins. A major early order is
coated textile for beanbags.
1967 – Jean-Jacques’ wife Jacqueline Sioen starts an
apparel workshop in roeselare, using Sioen coated
textiles. Initial products include heavy duty clothing
for amongst others fishermen and farmers.
1970s. The company continues to grow, despite
the oil crisis and economic slowdown of the �970s
and early �980s. By the mid-�970s the two buildings
at Beveren and one at roeselare have become too
small.
1977 – company moves to a single new site
at Ardooie. At this stage it employs around �00
people in apparel, �0 in coating and �0 in sales and
administration
1980s – The company expand export into
neighbouring countries and further afield. Acquires
production sites in france, Ireland and Tunisia. In
�989 Jean-Jacques Sioen receives the export prize
from Prince Albert.
1991 – fire destroys Ardooie plant. All persons are
temporary out of work, and all of the production is
lost.
1993 – new, state-of-the-art plant inaugurated on
the Ardooie site. In �99� it reports sales of Eur �5
million and a workforce of 600.
1990s – Sioen continues its expansion, especially
in coated textiles. Apparel division opens additional
production facilities in Indonesia. Industrial
Applications begin.
1996 – Sioen goes public with an IPO on the
Brussels stock exchange. At this stage it has a
turnover of 85 million and �500 employees.
2000 – At the end of the century Sioen employs
�,�00 people and has a turnover of just under Eur
�00 million a year.
2000nd – The company continuously invests in
new applications, new processes and techniques and
focuses on profitability and growth.
2006 – The companies turnover amounts to Eur
��9.� million and now hold �8 subsidiaries in
�� different countries. �,687 people are currently
employed by Sioen.
S I O E n I n d u S T r I E S I � 0 0 y E A r S O f S I O E n T E x T I l E S T r A d I T I O n
5
Jean-Jacques SIOEn
When Jean-Jacques launched his f i rs t coat ing l ine in �960, i t was the s tar t of
Sioen Industr ies as we know i t today - a heal thy s tock l is ted company.
Al though the Sioen industr ies group was born �7 years ago, the Sioen text i les
t radi t ion is over a �00 years old. firs t in rumbeke, then in Beveren and
roeselare and now in Ardooie (al l three ci t ies in Belgium). In addit ion, the
group has now plants in �� countr ies al l over the world.
The philosophy of Mister Sioen has always been a pragmatic one: be bet ter,
faster and more innovative in al l act ivi t ies he deployed. from that point of
view grew the company adagio: “PrOTEcTIOn THrOuGH InnOVATIOn”.
Af ter �5 years as cEO and chairman of the company, Mister Sioen passed the
presidency of the company in �005 to his oldest daughter Michele. Today he
is chairman of the board of directors.
Innovation
Expertise
Vision
6
SIOEn InduSTrIES
InnOVATIOn
S I O E n I n d u S T r I E S I I n n O V A T I O n
I n n o v a t i o n
7
“Protect ion through Innovation” is Sioen’s corporate s logan. Along with creat ivi ty,
know-how and quali ty, i t is central to Sioen’s corporate cul ture. Innovation keeps us
ahead of the market with new products, processes and applicat ions based on our core
coat ing expert ise.
Over �5% of our �006 sales were of products developed over the past 5 years. Over
�0% were in markets we were not in �0 years ago. Since �000 we have spent well over
Eur �00 mil l ion on innovative manufacturing processes.
To be innovative we must know our markets and our customers. This input we get
f rom our dedicated and ef fect ive sales and market ing team. Our r&d department and
technical experts are at the cut t ing edge of our technologies. We must be able to
communicate internal ly but also external ly with suppliers , customers, r&d inst i tut ions
and experts . We must be entrepreneurial – take r isks, learn f rom our mistakes. This we
are.
8
S I O E n I n d u S T r I E S I I n n O V A T I O n
“We are optimist ic on our short and long-term future.”
�006 was another year of strong growth at Sioen
Industries in terms of production and sales. It was
also a year of innovation par excellence, in which
investment projects were completed, r&d centres
opened, markets explored, and production processes
upgraded.
We are optimistic on the future of Sioen Industries.
Even if raw material prices are placing pressure on
earnings and competition is very sharp on certain
low-end markets, Sioen is showing itself to be
resilient and able to react fast to events.
Sioen Industries is a growth company in every field:
we are focused on growth and profit, think long-term,
and aim for market leadership in all our activities.
Our corporate slogan is “protection through
innovation”. It is innovation, know-how and vision
that take Sioen forward. Innovation is embedded
in our corporate culture, providing us with new
products, new processes, new applications and new
markets. Know-how and expertise are key assets, with
over �5 years’ experience of coating technologies,
markets and standards. Vision is our strength: we
possess entrepreneurship and creativity, a nose for
good business opportunities and are always ready for
new challenges.
“We are confirming our market leadership and achieving substant ial progress”
for the coating division �006, was a year in which
we confirmed our market leadership and achieved
substantial progress. It was also a year of challenges
with further rises in raw materials prices, rapidly
growing competition in transfer coating activities and
capacity shortages in direct coating and elsewhere.
rising raw materials prices we were able to offset
with cost reduction and price increases. We invested
in a new (additional capacity) varnish line and a
new direct coating machine to meet strongly rising
demand. With its extensive range and flexible
production apparatus, Sioen coating has succeeded
in capturing much of the growth in traditional
markets (transport, camping, textile architecture).
In �006 the strategy of extending our fine chemicals
activities took further shape. under the common
denominator of Sioen chemicals we now produce
colour pigment pastes, inks, varnishes and granulates.
We invested in a new production hall at the Bornem
site, took over part of the assets of Siegwerk Benelux
and acquired the french company richard colorants.
And in January �007 we bought the Belgian company
fillink, which specializes in inks for wide format
printers. In short we have, in a very short space of
time, built up an unique position that guarantees
further expansion in these sectors.
To react better and more effectively to a competitive
and constantly evolving market, the Apparel division
optimized its internal organization. We achieved ever
greater successes in technical markets like firefighting
clothing and flame retardent apparel. This division
also continues to perform well in its core industrial
protective clothing activities.
The Industrial Applications division, in which we
process technical textiles, did very well in �006.
The lion’s share of the growth in this product line
came from transport-related activities. We will
also be investing further in larger production shops,
automation and wide-format printing.
“r&d is a s tate of mind”
We are proud to announce that �006 was a strong
year. We are continuing with the same dynamism
dEAr MAdAM, dEAr SIr,
9
to carry out various investment projects which
will increase capacity and, through far-reaching
automation, improve cost control.
We continue to focus on growth and on profit, with
a permanent emphasis on r&d. This research and
development is providing us with new products,
new markets, new production processes and new
technical features. Sioen intends to be a market
leader in each of its activities.
In �006 we extended our ultra-modern central
r&d centre at Ardooie with a brand-new section
specializing in testing and research on industrial
protective clothing. r&d is a cornerstone of our
organization. It is a state of mind, an attitude of all
our employees, at every level. Workers, salespeople,
foremen, chemists, production managers, general
managers, we are all in our own way concerned with
improvement and innovation.
With this annual report we provide an overview of
the activities of Sioen Industries, a glimpse behind
the scenes, how we see the business, where we stand
and where we intend going.
We are convinced that this vision, dynamism and
team spirit will enable us to advance with unflagging
élan. We thank all Sioen employees for their devotion
and commitment in putting all this into practice day
after day. finally we thank you, our shareholders, for
your continuing trust in Sioen Industries.
Jean-Jacques Sioen Michèle Sioen
chairman of the Board cEO Sioen Industries n.v.
� 0
At Sioen, strategy consists first and foremost
of focusing on and pursuing its key success
variables, the things that Sioen does well and
which will ensure its future success.
S I O E n I n d u S T r I E S I I n n O V A T I O n
Mission
Our task is to offer our customers high quality,
innovative products, made-to-measure solutions
and flexible service in every area in which we
are active: technical textiles, protective clothing,
industrial applications and fine chemicals.
We intend to retain and further extend our market
leadership in all segments, with an emphasis at
all times on technically sophisticated products
and innovation, and on seizing opportunities
for new markets and processes as these present
themselves.
We seek to offer our shareholders a sound
investment with reliable results and a growing
dividend stream.
We work with well-trained, result-oriented
employees, with a concern for safety and the
environment as fundamental values.
S t rategy
At Sioen strategy consists first and foremost of
focusing on and pursuing its key success variables,
the things that Sioen does well and which will ensure
its future success. These include:
MISSIOn And STrATEGy
� �
vertical integration
Mastering the entire value chain from the spinning
of yarn through to final production gives Sioen
a knowledge base unrivalled in the industry and
valuable independence from outside suppliers.
technical expertise
Sioen dominates where technical specifications are
decisive. Sioen is constantly working to maintain a
technical lead in its key product areas, and to make
sure innovative ideas are available across the group.
R&D
Sioen continuously invests in r&d. Sioen works
closely with customers to optimize quality and
delivery and respond to new needs.
innovation and new markets
Sioen is constantly looking for new areas in which
to profitably apply and expand its expertise. It has
repeatedly proved its ability to react rapidly to seize
new opportunities. The recent expansion into fine
chemicals is one example of this.
a hands-on, unbureaucratic corporate culture
The Sioen style is straightforward, plain talking,
appreciated by customers and employees alike.
� �
SIOEn InduSTrIES
ExPErTISE
S I O E n I n d u S T r I E S I E x P E r T I S E
S o l u t i o n s
� �
Know-how is one of Sioen’s great s t rengths. With over �5 years in the business, i t
shows more accumulated know-how of text i le coat ing technology and coated text i le
applicat ions than any other company in Europe. no other s ingle company masters
f ive di f ferent text i le coat ing techniques. no other company has as much experience
and knowledge of s tandards and rules. no other company has experience of as many
industr ial text i le applicat ions or as many markets .
This know-how is gained through systematical ly searching for solut ions to pract ical
problems, much of the t ime in close cooperat ion with our customers. I t is expanded by
using exis t ing know-how as a basis for enter ing new markets . I t is protected by s t rong
employee loyal ty and motivat ion.
� �
“ExPErTISE rIGHT dOWn THE lInE”
Sioen is involved at every stage of the production
and application of coated textiles, from spinning
the yarn, through weaving and coating to specialist
processing.
Its command of the complete chain, including all
main coating processes and a variety of processing
technologies, provide it with an unrivalled fund of
expertise and a leading place in its specialist areas.
Base material
5. coated fabrics sold
as semi-finished
products to outside
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
niche markets
�. Application of coatings
(direct coating, transfer
coating, online coating,
extrusion coating,
calendering)
�. Spinning of polyester high-tenacity and/or polyamide
yarns
�. Weaving of the yarn into various base textiles
�. Preparation of colourings (pigment pastes and dyes) =
Sioen chemicals
coating s tage
finishing
�
� �
�
5 6 7
S I O E n I n d u S T r I E S I E x P E r T I S E
� 5(�) Quoted percentages have been rounded, and reflect the situation at �� december �006 (�) 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) 5% via P.T. Sungintex (6) Via Monal s.a. and roltrans Group b.v. (7) In december �006 roland International b.v. acquired �00% of the shares of roland ukraine llc (8) The richard group was acquired in October �006(9) The official name is colorants Pigments distribution
SIOEn InduSTrIES nV
cOATInG dIVISIOn APPArEl dIVISIOn InduSTrIAl APPlIcATIOnS dIVISIOn
Sioen coating n.v. Sioen n.v. coatex n.v. direct coating Belgium Apparel Belgium Processing of coated fabrics and
films BelgiumSaint frères s.a.s. confection Tunisienne de Sécurité s.adirect coating france Apparel Tunisia Saint frères confection s.a.s.
Heavy-duty manufacturing france Sioen coating distribution n.v. donegal Protective clothing ltd (�) Sales Office Belgium Apparel Ireland Sioen nordifa s.a.
filter production BelgiumSioen fabrics s.a. Mullion Manufacturing ltdWeaving/Transfer coating Belgium Apparel u.K. roland International b.v. (6)
Manufacturing of truck tarpaulins Sioen fibres s.a. P.T. Sioen IndonesiaSpinning Belgium Apparel Indonesia roltrans Group
America Inc.Sioen Shanghai (�) P.T. SungintexSales office china Apparel Indonesia roland Planen GmbH
Siofab s.a. Sioen fibres s.a. roltrans Group Transfer coating Portugal central distribution unit Belgium Polska sp.z.o.o.
TIS n.v. Sioen france s.a.s. roland ukraine llc (7)Weaving Belgium Sales office france
roland Tilts uK ltd.
Veranneman TT n.v. Sioen Tunisie s.a.Weaving/direct coating Belgium Sales office Tunisia
Pennel Automotive s.a.s. Sioen Zaghouan s.a.calendering france Apparel Tunisia
Inducolor s.a. Sioen uSA Inc. (5)Ink production Belgium Sales office
European Master Batch n.v. Master batch production Belgium
richard s.a.s. (8)
copidis s.a.s. (9)
Astra colorants s.a.
99%
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99%
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90%
89%
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75% (�)
99%
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5
8 Sioen Shanghai SHANGHAI CHINA9 Saint Frères - Saint Frères Confection FLIXECOURT FRANCE10 Richard Colorants LOMME FRANCE Copidis s.a.s. LOMME FRANCE11 Astra Colorants s.a. LyON FRANCE12 Sioen France NARBONNE FRANCE13 Pennel ROUBAIX FRANCE14 P.T.Sungintex BEKASI BARAT INDONESIA15 P.T.Sioen Indonesia JAKARTA INDONESIA16 Donegal Protective Clothing DONEGAL IRLAND17 Roltrans Group Polska KONIN POLAND18 Siofab SANTO TIRSO PORTUGAL19 Roland International TEGELEN THE NETHERLANDS20 Sioen Tunisie - CTS - Sioen Zaghouan TUNIS TUNESIA21 Roland Ukraine RIVNE UKRAINE22 Roland Tilts UK BRADFORD UNITED KINGDOM23 Mullion Manufacturing Ltd. SCUNTHORPE UNITED KINGDOM24 Roltrans Group America TEXAS UNITED STATES
SIOEn WOrldWIdE
1 Sioen Coating Division/Apparel Division
Veranneman TT Sioen Coating Distribution
ARDOOIE
2 European Masterbatch/EMB
Fillink Technologies
BORNEM
3 TIS KERKSKEN
4 Sioen Nordifa LIÈGE
5 Inducolor MESLIN-L’EVÊQUE
6 Sioen Fibres - distribution/spinning
Sioen Fabrics - weaving and coating
MOUSCRON
7 Coatex POPERINGE
S I O E n I n d u S T r I E S I E x P E r T I S E
cOATInG
APPArEl
InduSTrIAl APPlIcATIOnS
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Sioen Industries masters 5 coating techniques and
has a firm control of all steps of the production
process. We spin the yarn, weave a base fabric
which we then coat with a home-made paste.
S I O E n I n d u S T r I E S I E x P E r T I S E
The product – technical coated text i les
Sioen has been specializing in the coating of
technical textile fabrics for nearly 50 years. Put in
simple terms, coating is the covering of a support
with a protective layer (PVc, Pu, silicon or another
polymer), to make the material waterproof, fireproof,
anti-static, breathable, printable, and so on, and
to afford protection against wind, water, cold and
chemical matter.
Production - vert ical integrat ion
Sioen handles the entire production process:
spinning, weaving and coating.
Spinning - Sioen has one of the most modern
spinning mills in the world, with an output of
approximately �5,000 tons of polyester high-tenacity
and/or polyamide yarns. A part of the yarns is twisted
in the twisting plant.
Weaving - The yarn is supplied as raw material
to the three weaving mills, each with its own
specialization: sailcloth, open structure textiles,
polyester high tenacity textiles, airbag textiles, etc.
The fabrics all meet high technical requirements
as tensile strength, tear resistance. Sioen has also
secured certificates of approval for automotive
applications.
Sioen also produces needle punch non-woven (liège)
which is used, among other things, as a support in
extrusion coating.
cOATInG dIVISIOn
� 9
Preparation of coating layer/colouring The coating layer can consist of PVc, polyurethane,
silicon or other polymers, which are sourced from
major chemicals companies. Sioen produces its own
pigment pastes and granulates used for colouring the
coating layer. Pastes are mixed in fully automatic
paste kitchens and then brought to the coating line by
robots.
CoatingSioen Industries applies five main coating processes,
at seven coating plants (� in Belgium, � in france
and � in Portugal), with some of the most advanced
production lines in the world.
Direct coating: the PVc coating paste is directly
applied to the fabric.
Applications: curtains for lorries and train
compartments, sports mats, swimming pool covers,
tarpaulins, advertising, …
Transfer coating: The coating paste
(polyurethane, silicone, etc.) is applied to the fabric
using a paper support.
Applications: protective clothing, outdoor sports
clothing, shoe protectors, mattress protectors, airbags
Online coating: In online coating, the fabric
passes from the loom into a coating bath before being
wound. This technique is used to manufacture open
structure textiles.
Applications: geogrids, swimming pool covers,
reinforcement nets, windbreak nets, filters, etc. ...
� 0
S I O E n I n d u S T r I E S I E x P E r T I S E
Extrusion coating: This technique allows other
base materials (textiles, non-woven, knitted fabrics,
etc.) to be coated with various polymers.
Applications: ventilation tubes, plastic sheeting for
ponds, plastic film for windows, sewer renovation,
etc. ...
Calendering (rolling): TPO (Thermoplastic
polyolefin) and PVc films are processed with rollers in
order to achieve the required motif/texture.
Applications: car dashboards and door panels, wall
coverings etc. ...
Main product markets
The majority of the total production from the
coated division is sold to external manufacturers
in the areas given below. It is difficult to give
meaningful figures for sales in each sector as these
can vary considerably from one year to the next.
The tarpaulin and side curtains sector is by far the
largest, accounting for around �0% (in some years
more) of external turnover of the coating division.
The balance is shared by the other markets, with the
individual percentages varying considerably from
year to year.
Tarpaulins and side curtains (direct
coating): The market for PVc coated tarpaulins and
side curtains for trucks and railway wagons is the
most important segment.
Sioen is the undisputed 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 tarpaulins has not yet become customary
in the American market, where trailers are usually
� �
hard-bodied. recent innovations include Siosteel, a
combination of PVc coated technical textile with a
coated steel net, which offer better protection against
vandalism. Sales of this product gathered momentum
when certain insurance companies began offering
cheaper insurance premiums to hauliers that equip
their trucks with Siosteel.
Geotextiles and roofing (online coating):
Technical textile is used as reinforcement
netting for roads, roofs and all types of plates.
With approximately 50% of the market Sioen
is the European market leader in this segment.
Geographical expansion to the uS and elsewhere is
one of the goals for the coming years.
Automotive (direct coating, transfer coating,
calendaring): about ��% of the coating division’s
production is for the automotive sector: TPO and
PVc films for car interiors, trunk covers and airbags.
Technical textile for car interiors is produced and
sold by Pennel Automotive, a long-established french
company with a strong presence in its home market
and an estimated market share of �0%.
Sioen profiles itself as a full service supplier in the
airbags market. Sioen extrudes the polyamide yarn
in its own spinning mill, weaves it 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 coatex plant (a part of the Industrial Applications
division).
The yarn is produced in the spinning mill. This high-
tech spinning mill is one of the most modern in the
world. The yarn is then processed into fabrics that
are then coated in one of the coating plants.
� �
S I O E n I n d u S T r I E S I E x P E r T I S E
Sioen chemicals
Sioen has long produced masterbatches and pigment pastes used for dyeing al l
kinds of coat ings, as well as producing special varnishes, compounds and al l
types of lacquers.
In �006 Sioen took the s t rategic decis ion to expand i ts business in f ine chemicals
used in colouring pastes, plast ics and other materials , of which i ts own coating
divis ion is a heavy user, and in the same year purchased the decorat ive inks and
varnishes business of Siegwerk-Benelux AG and later richard colorants, france’s
leading producer of water-based colour pigments.
The Sioen Industr ies range of f ine chemicals now includes:
• pigment pastes for colouring polyurethane and PVc coatings, epoxies, acryl ic
resins and si l icones
Flexible, breathing technical textile
(transfer coating): for clothing and mattress covers.
Thanks to its modern production system, large
volumes, r&d and know-how and the advantages
of vertical integration, Sioen can hold its own in this
nonetheless competition-sensitive market.
Swimming pool covers and pool 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 the major producers of swimming pool
covers and overground pools are located.
Sign and textile architecture (direct,
extrusion and online coating): Sign is the collective
name for all types of publicity banners. Textile
architecture is understood as technical textiles for
tents and structures. These two growth markets will
be able to reap the benefits of r&d efforts in coming
years.
Geographical markets
87% of the coating division’s turnover comes from
the traditional Western European countries, with
france, Germany, the Benelux and Great Britain the
largest markets. Eastern Europe and Asia are other
important markets. Since �006, we are again fully
active on the uSA market, with an own salesoffice,
Sioen coating uSA.
The geographical distribution reflects the location of
final producers. Several large trailer manufacturers
are based in Germany and the uK, Germany has
a rich tradition of using geo-textiles, france has a
large number of swimming pool cover and mattress
cover makers, the largest digital printers are based in
Western Europe and Pennel Automotive has a long
history of contacts with french car makers.
Although the traditional Western European countries
comprise the largest proportion of turnover, the
Eastern European market is growing in importance.
Technical textiles for digital printing and truck
� �
tarpaulins and side curtains in particular are finding
their way to Eastern European customers.
competi t ive posi t ion
Sioen accounts for over �0% of total coating capacity
at European level. The remainder is shared among some
German competitors and a large number of smaller and
increasingly specialized competitors in france, Spain,
Italy, Austria, Germany, france, Scandinavia, etc.
new products and developments
In early �006 Sioen invested in a new direct
two-sided coating line and automated kitchen
in flixecourt (france). This investment, costing
Eur 5 million, adds an addition 50% of production
capacity and provides considerable cost savings.
In �007 Sioen will be investing to double its capacity
in open structure fabrics (anchoring nets, geotextiles,
windbreak nets and advertising banners)
Sales organizat ion
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, china and the
uSA (Sioen coating uSA).
• granulates for inject ion moulding, extrusion and blow-moulding
• a wide range of varnishes and inks with applicat ions including vinyl f loor and
wall coverings, paints , glues, Pu foams, shoe polishes, f inger paints and wax
crayons
In �006, EMB inaugurated a new factory building in Bornem (Belgium), with
brand new machines for producing varnishes, inks, pigment pastes and pigment
granules.
In January �007, Sioen acquired fi l l ink Technologies n.v. This Belgian company is
special ized in eco-solvent, solvent and uV inks for wide and super wide format
digi tal pr inters . I ts experience with unique product formulat ions and wide market
knowledge represent a real added value for Sioen chemicals .
� �
S I O E n I n d u S T r I E S I E x P E r T I S E
The product
Sioen is Europe’s leading producer and seller of
protective clothing for both industrial and leisure use.
Part of the clothing is produced from in-house coated
textiles in Sioen’s own factories.
The Industry range accounts for the greater part of
the Apparel division’s turnover. It includes protective
clothing ranging from simple rainwear to extremely
technical protective clothing.
With sustained commercial pressure on larger-
volume, low technicity markets, Sioen is focusing
strategically on products and applications with a high
degree of technical complexity such as bullet and
knife proof vests, flotation suits, fire fighting packs,
protective clothing for the petrochemicals sector,
forestry clothing, etc. The technical complexity
of these products means that competition is more
limited, and with international and European
standards and regulations becoming increasingly
stringent, demand for these products is continuing to
rise.
APPArEl dIVISIOn
� 5
design and production
With an eye for detail and expert knowledge of
production techniques and raw materials, our
creative designers and textile engineers develop
functional and comfortable protective clothing
which meets all legal regulations and technical
requirements.
Each design is produced carefully to the strictest
quality standards in one of our modern production
centres in Tunisia and Indonesia and elsewhere. We
are continually investing in the latest technologies to
enable us to meet the highest quality standards. Sioen
has the most recent ISO 900�/ En �900� certification
as well as the AQuAP certificate.
Applicat ion areas
The application areas for the standard range are as
divergent as they are extensive: Sioen protective
clothing is used in the petrochemicals industry, the
food sector, road construction and public works,
agriculture, gardening and the fisheries sector. Sioen
serves public authorities (municipal services, police,
army, firefighting, postal services, etc.) and private
companies.
new showroom and laboratory faci l i t ies
In �005 a former s toreroom and warehouse at the Ardooie headquarters were
converted into an immense showroom. As well as tel l ing the s tory of Sioen from
production process through to f inal products, the Apparel divis ion’s range of
protect ive clothing is given special prominence with more than �00 mannequins
throughout the display area.
In �005, the Apparel divis ion constructed a new ultramodern lab in Ardooie. With
i ts own sophist icated test equipment, i t is able to conduct f lame tests (En�67) and
thermal radiat ion tests (En ISO 69��) inhouse. This has enabled i t to be one of the
f i rs t producers in Europe to obtain cert i f icat ion for the new standard En�69:�005,
covering protect ive clothing for f i ref ighters . This opens the way for Sioen to play
a leading role in the development in f i re-retardant clothing. The lab also includes
a shooting laboratory where the impact of bul lets is tested on body armour.
� 6
Sioen outdoor leisurewear is aimed mainly at
hunters, anglers, horse riders, motor cyclists, hikers
and golfers (Baleno trade mark). Sioen is also a
valued partner for certain skiwear brands.
developments during �006
during �006 the division optimized its internal
organization, both in Belgium and at its
manufacturing plants in Tunisia and Indonesia.
In �006 Sioen also extended its ultra-modern
r&d centre at Ardooie with a brand-new section
S I O E n I n d u S T r I E S I E x P E r T I S E
� 7
specializing in testing and research on industrial
protective clothing.
Whenever quality and technical excellence are vital
in protective clothing, Sioen has an appropriate
solution.
Geographical markets
The vast majority of products (around 75%) are sold
in Sioen’s traditional European markets (france,
Belgium uK, netherlands and Germany).
Sales and dis t r ibut ion
The sale of protective clothing is centralised at the
headquarters in Ardooie. Sioen Apparel also has a
number of local sales units and agents in france,
Scandinavia, Indonesia, Germany and the uK serving
local markets.
The finished products are shipped from the various
production centres to a fully automated dispatch and
distribution centre in Mouscron, and from there to
customers.
from our production centers in Tunesia and in
Indonesia, the finished products are sent to the
central dispatch and distribution centre, where they
are temporarily stored before being sent on to our
customers.
� 8
Product
The Industrial Applications division processes heavy-
duty coated textiles, mainly produced in-house, in a
wide variety of often highly specialist areas.
Markets
The markets in the division are as extensive as
they are divergent: the automotive industry, the
leisure sector, the food industry, heavy industry and
chemicals, transport, construction, mining etc.
Processing
different plants in france, Belgium, Germany, Poland
and ukraine each provide different specialty products
and services.
Kadors: Sioen processes in-house coated technical
fabric into kadors (flexible PVc tubes surrounded
by a technically coated fabric, used for instance for
sliding a tent on to a caravan.
Sio-steel: Sio-steel is a patented composite
consisting of a PVc coated steel net and double-
InduSTrIAl APPlIcATIOnS
S I O E n I n d u S T r I E S I E x P E r T I S E
� 9
sided PVc coated polyester fabric, used primarily
for intrusion-resistant truck and train tarpaulins and
side-curtains.
Cutting: cutting of lining materials and multi-
layer laser cutting of all kinds of materials, including
airbags for the automotive industry.
Pond and dam sheeting: cutting, splicing and
packaging of pond sheeting and sheeting for water
reservoirs, used in the construction of recreational
ponds and industrial reservoirs, cultivating beds and
dam sheeting, for customers worldwide.
Filters and filter cloths: Sioen specializes in
the production of felt and derived products such as
filters and filter cloths for the food industry (water
and air treatment in sugar refineries, breweries, etc.),
heavy industry - metallurgy, coke industry, mining,
power stations, paper processing, cement companies,
- the chemicals industry (dye production), city water
purification and after-burning plants. It recently
started producing acoustic and thermal insulation
panels for both visible and invisible use.
Tents, covering systems, roll-down shutter doors, compartment covers and silos: In-house coated fabric is processed into
finished products for high-tech niche markets such as
the army, the railways, the airline industry, and the
construction sector.
Camouflage fabric: Sioen specializes in the
design, production and marketing of camouflage
fabric and multi-spectral camouflage netting. This
high-tech market calls for considerable technical
knowledge and research and development.
Worldwide there are only a few companies active in
this segment.
Truck side curtains and tarpaulins: roland International (production units in Germany,
Poland, ukraine, romania) is the world’s largest
producer of tarpaulins and curtains for new trailers
(�5% of the market), using technical fabrics produced
by the coating division. Acquired by Sioen in
�00�, the company focuses on large volume, batch
production.
Geographic markets
Germany is by far the largest market, with �0% of
turnover, due mainly to the automobile and truck
tarpaulin activities). Another �0% is divided between
france, Belgium, the uK and netherlands. Eastern
Europe and the uSA both offer scope for growth.
Sales and dis t r ibut ion organizat ion
Sales and distribution channels differ from one
product to another. Increasing emphasis is being
placed on cross-selling.
� 0
SIOEn InduSTrIES
VISIOn
S I O E n I n d u S T r I E S I V I S I O n
V i s i o n
� �
This element of Sioen’s corporate cul ture is at once al l -pervasive and more di f f icul t
to def ine. I t is the abi l i ty to remain vigi lant and focused, with perfect knowledge and
mastery of our profession, ready to move forward and seize opportunit ies when they
ar ise, push open new doors, s t r ike out on new paths. I t is a rock-sol id confidence in
our own expert ise and abil i ty to tackle new areas. I t is a clear and real is t ic vis ion of
own strengths and weaknesses, where to push forward, where not to. I t is demonstrated
in Sioen’s abi l i ty in recent years to repeatedly enter new and prof i table markets at the
opportune moment.
� �
S I O E n I n d u S T r I E S I V I S I O n
On december ��, �006 Sioen Industries employed
�.687 people in �6 different countries: Belgium,
china, Germany, france, Ireland, Indonesia, Portugal,
Tunisia, uK, the netherlands, Poland, uSA, Austria,
denmark and finland. This compares with �.6�5 at
the end of december �005. �.8�6 (8�%) were blue
collar and 87� were white collar (�9%) workers.
The large number of workers in Indonesia, Tunisia
and Poland are nearly all employed in the labour-
intensive apparel industry. As rationalization and
automation continue in this industry, there will be
less call on manual operatives and more on highly
qualified personnel.
Although the activities of the coating division are
capital intensive, this division employs 9�7 persons,
an increase of ��% compared with last year.
The “Group” in personnel per division relates to
the group services structure covering personnel
management, financial and treasury management,
budgeting, IcT and legal affairs from the group
holding company Sioen Industries n.v. in Ardooie (B)
(6� employees).
Working environment
Producing quality is impossible without a quality
working environment. The creation of a stimulating
working climate in which everyone has the
opportunity to develop their capacities to the full, is
one of the cornerstones of the Sioen Industries group.
Accordingly, our employees’ satisfaction is regularly
surveyed and analysed.
HuMAn rESOurcES
Our quality policy includes an ongoing
improvement process, with customer service
being the motivation behind all our efforts.
� �
Quali ty
Quality means satisfying the customer’s expectations
in terms of products and delivered services. The
customer can be both external and internal. for this
reason the principle of meeting all the customer’s
expectations applies throughout the organization,
and is not confined to those departments which
come into direct contact with the customer. Quality
is a key principle for all employees of the Sioen
Industries group as they perform their work, whether
in production, sales, accounting, customer service,
r&d or purchasing, etc.
Our quality policy includes an ongoing improvement
process, with customer service being the motivation
behind all our efforts.
Quali ty monitoring
The quality of the delivered product must meet the
customer’s most stringent criteria. To achieve this,
Sioen Industries does not confine itself to inspecting
the end product, but monitors for quality throughout
the production process. This starts with the screening
of suppliers, from whom a consistent quality level
is required. Permanent workfloor supervision and
sampling take place during production, using the
latest communication and IT applications.
cert i f icat ion
The Apparel division has met ISO 900� standards since
�996. It has also won AQAP-��0 certification, the
quality label for military tenders. Thanks to a constant
concern for quality the coating division was one of the
first coaters to acquire the ISO 900� certificate.
QuAlITy
� �
S I O E n I n d u S T r I E S I V I S I O n
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
its fundamental principle - yesterday’s, today’s and
tomorrow’s capital.
Sioen organizes its research and development
activities around three main areas: product
development, process improvement and
technological innovations, because the products
we develop must be those which both meet
customer expectations and create added value for
the business. Technological innovations connected
with continuous process optimisation are making a
substantial contribution to the group’s effectiveness.
A “spider’s web” r&d structure
Keeping ahead of the market means ongoing
investment in research and development. In �00� the
group therefore inaugurated a central r&d unit at its
headquarters in Ardooie, where professionals work
on product development and innovation and on
process improvement with state-of-the-art facilities.
50 people are involved in r&d and testing, and
their operating costs amount to Eur �.�7� million,
rESEArcH And dEVElOPMEnT
Sioen organizes its research and development
activities around three main areas: product
development, process improvement and
technological innovations, because the products
we develop must be those which both meet
customer expectations and create added value
for the business.
� 5
excluding production time excluding production
time and costs. If we add the costs, the total annual
r&d costs amount to 7.0�� mio Eur (= �,07% of
turnover).
As well as its central r&d unit, Sioen has ten other
research teams at major production sites, conducting
specific research and product testing in more
restricted rareas. Work done at the various research
centres is coordinated and managed from the central
r&d unit in Ardooie.
Sioen’s central and regional r&d teams cooperate
closely with various national and international
universities, European research institutes and
scientific funds. Sioen has a privileged relationship
with the textiles engineering department of Ghent.
Top f l ight test faci l i t ies
Sioen’s r&d centres and labs are fully equipped
with the latest testing equipment. Testing for tractile
and breaking strength, flame retardation, chemical
resistance, water column, colour fastness, ageing and
so on are all performed inhouse, and Sioen can stand
comparison with the world’s top research institutes in
this area.
for Sioen Industries, care for the environment is a
constant concern. As a responsible corporate citizen,
the group complies with all legal requirements. As
a market leader also seeks to operate a proactive
environmental policy, investing every year to keep its
emission of harmful substances to a minimum, and
applying stricter standards than those required by law.
The group is making increasing use of recycling and
energy recovery technologies. distillation towers
at plants, for example, reducing emissions to a
minimum and recovers valuable raw materials.
The direct coating sites have also been fitted with
distillation columns, allowing hot air to be recovered
and used to pre-heat ovens. Another series of
distillation columns enables contaminated solvents to
be distilled for re-use.
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
S I O E n I n d u S T r I E S I V I S I O n
The group is making increasing use of recycling
and energy recovery technologies.
� 6� 6
Corporate InforMatIon
fInanCIaL oVerVIeW
�
Corporate Information
Letter to shareholders 3Letter to shareholders 3
I report of the Board of Directors 5I report of the Board of Directors 5
II Group Structure 9II Group Structure 9
III Share Information 10III Share Information 10
IV Corporate Governance 1�IV Corporate Governance 1�
V General information 16V General information 16
33
Letter to SharehoLDerS
Dear Shareholder,
“We are positive on our short and long-term future.”
�006 was another year of strong growth at Sioen
Industries in terms of both production and sales.
It was also a year of innovation par excellence, in which
investment projects were completed, r&D centres
opened, markets explored, and production processes
upgraded.
at eUr 339.4 million, consolidated turnover was up 7%
on �005. Gross margin was 50.7�% of sales. eBItDa
and eBIt rose 3% and �% respectively to eUr 44.8
million and eUr �5.9 million.
these results enable Sioen Industries to pay a dividend
of eUr 0.�6 per share to its shareholders. on the
stock market too, Sioen Industries gave a dynamic
performance, with the share price rising by more than
16% year-on-year.
We are bullish on the future of Sioen Industries. even if
raw material prices are placing pressure on earnings and
competition is very sharp on certain low-end markets,
Sioen is showing itself to be resilient and able to react
fast to events.
Sioen Industries is a growth company in every field:
we are focused on growth and profit, think long-term,
and aim for market leadership in all our activities. our
corporate slogan is “protection through innovation”.
It is innovation, know-how and vision that take Sioen
forward. Innovation is embedded in our corporate
culture, providing us with new products, new processes,
new applications and new markets. Know-how and
expertise are key assets, with nearly 50 years’ experience
of coating technologies, markets and standards. Vision is
our strength: we possess entrepreneurship and creativity,
a nose for good business opportunities and are always
ready for new challenges
“We are confirming our market leadership and
achieving substantial progress”.
for the Coating division �006 was a year in which
we confirmed our market leadership and achieved
substantial progress. It was also a year of challenges
with further rises in raw materials prices, rapidly
growing competition in transfer coating activities and
capacity shortages in direct coating and elsewhere.
rising raw materials prices we were able to offset with
cost reduction and price increases. We invested in a
new (additional capacity) varnish line and a new direct
coating machine to meet strongly rising demand. With
its extensive range and flexible production apparatus,
Sioen Coating has succeeding in capturing much of the
growth in traditional markets (transport, camping, textile
architecture).
In �006 the strategy of extending our fine chemicals
activities took further shape. Under the common
denominator of Sioen Chemicals we now produce
colour pigment pastes, inks, varnishes and granulates.
4
S I o e n I n D U S t r I e S I C o r p o r a t e I n f o r M a t I o n
We invested in a new production hall at the Bornem
site, took over part of the assets of Siegwerk Benelux
and acquired french company richard Colorants. and
in January �007 we bought Belgian company fillink,
which specializes in inks for wide format printers. In
short we have, in a very short space of time, built up
an unique position that guarantees further expansion in
these sectors.
to react better and more effectively to a competitive
and constantly evolving market, the apparel division
optimized its internal organization. We achieved ever
greater successes in technical markets like firefighting
clothing and arc flame resistant apparel. this division
also continues to perform well in its core industrial
protective clothing activities.
the Industrial applications division, in which we
process technical textiles, did very well in �006. the
lion’s share of the growth in this product line came from
transport-related activities. We will also be investing
further in larger production shops, automation and
wide-format printing.
“R&D is a state of mind”.
We are proud to announce that �006 was a strong year.
We are continuing with the same dynamism to carry out
various investment projects which will increase capacity
and, through far-reaching automation, improve cost
control.
We continue to focus on growth and on profit, with
a permanent emphasis on r&D. this research and
development is providing us with new products, new
markets, new production processes and new technical
features. Sioen intends to be a market leader in each of
its activities.
In �006 we extended our ultra-modern central r&D
centre at ardooie with a brand-new section specializing
in testing and research in industrial protective clothing.
r&D is a cornerstone of our organization. It is a state of
mind, an attitude of all our employees, at every level.
Workers, salespeople, foremen, chemists, production
managers, general managers, we are all in our own way
busy with improvement and innovation.
With this annual report we provide an overview of
the activities of Sioen Industries, a glimpse behind the
scenes, how we see the business, where we stand and
where we intend going.
We are convinced that this vision, dynamism and team
spirit will enable us to advance with unflagging élan.
We thank all Sioen employees for their devotion and
commitment in putting all this into practice day after
day. finally we thank you, our shareholders, for your
continuing trust in Sioen Industries.
Jean-Jacques Sioen Michele Sioen
Chairman of the Board Ceo Sioen Industries n.v.
5
Sioen Industr ies group
Sioen Industries is the leading world producer of coated
technical textiles, european market leader in industrial
protective clothing, a niche specialist in fine chemicals
and a major world player in processing technical textiles
into semi-finished products and technical end products.
In �006 Sioen posted net group sales of eUr
339.4 million, (of which eUr 3.7 million from
new acquisitions), up 7% on an annual basis from
eUr 316.� million the year before.
Despite historically high raw materials prices and
increased competition, the group succeeded in
maintaining its gross margin.
Services and miscellaneous goods rose
proportionally with sales. the largest increases in
this area were in energy and energy-related costs
(gas, electricity, fuel and energy).
personnel costs also rose in step with sales. to
be borne in mind here are obviously the two
acquisitions in the Chemicals group and sharply
rising demand in the Industrial applications
division. also included are a number of one-off
costs.
other operating costs consist mainly of a number of
non-profit related taxes such as property tax, taxe
professionnelle in france and the like. every year
these non profit-related taxes grow more onerous,
to the extent that they are now just as important as
corporation tax.
operating cash flow (eBItDa) rose 3% to
eUr 44.8 million.
financial costs were approx. eUr 1 million
higher than in �005. this is due primarily to a
eUr �1 million increase in net financial debt to
eUr 147.7 million, occasioned essentially by
takeovers and the relatively heavy investment
programme in �006.
the effective tax rate rose from 3�% to 37%, due to
the non-recognition of deferred tax assets in respect
of losses in certain subsidiaries.
this brings the final net profit for �006 to eUr
1�.1 million, compared with eUr 13.6 million in
�005.
net operating cash flow rose eUr � million from
eUr �9.5 to 31.5 million.
In �006 dividends of eUr 0.�4 per share (gross)
were paid in respect of �005.
the Board of Directors will be proposing to the
annual Meeting of Shareholders that the company
declare a dividend of eUr 0.�6 (gross) per share in
respect of �006.
I report of the BoarD of DIreCtorS
6
S I o e n I n D U S t r I e S I C o r p o r a t e I n f o r M a t I o n
CoatInG DIVISIon
the Coating Division specializes in the integrated
coating of technical textiles, of which it masters the
entire production process from the extrusion of the yarn
(spinning), to weaving the technical fabric, producing
pigment pastes, granulates, varnishes and inks, and
coating with various materials. the group is the only
player in the world with proficiency in five different
coating technologies. Sioen enjoys a prominent position
in markets where technical excellence is a decisive
sales argument.
for the Coating division �006 was a year in which
we confirmed our market leadership and achieved
substantial progress. It was also a year of challenges
with further rises in raw materials prices, rapidly
growing competition in transfer coating activities and
capacity shortages in direct coating and elsewhere. With
its extensive range and flexible production apparatus,
Sioen Coating succeeding in capturing much of the
growth in traditional markets (transport, camping, textile
architecture).
the favourable economic climate in the transport
sector produced a sharp rise in demand for trucks &
trailers. this resulted in attractive growth in terms of
product and price for our direct coating line, and in
particular for products used for trailer and railway
tarpaulins. We invested in a new direct coating
machine to meet strongly rising demand.
our open structure fabrics product line (anchoring
nets, geotextiles, windbreak nets, advertising
banners) continued its solid advance. to meet
fundamentally rising demand, we are bringing
forward to �007 our planned investments to double
our capacity.
Despite price pressure in our traditional markets
(mattress protection and protective clothing) and
higher raw materials prices, the transfer coating
unit maintained its market position. new projects
provided further sales increases.
notwithstanding constant price increases for the
main raw materials (polyester granulate, pVC
powder, plasticizers and technical fillers), the
coating division was able to increase its operating
cash flow (eBItDa) by 15%. the reasons can be
found in improved production efficiency and price
increases.
In �006 the strategy of extending our fine chemicals
activities took further shape. the colour chemicals
department, located in our eMB (european Master
Batch) subsidiary, grew spectacularly in �006. this
growth came both from our traditional markets of
pigment pastes and silicones, including investment
in a new production hall at our Bornem site and in
a new varnish line, and from two acquisitions that
opened up new sales markets:
first the takeover in September �006 of a number
of assets of Siegwerk Benelux. In this way eMB
acquired Siegwerk Benelux’s sales in the decorative
inks and varnishes market, and acquired a number
of new product formulae, with applications in
various markets in which eMB already supplies a
number of related products:
• floor coverings (vinyl, laminates)
• Wall coverings (flexo, gravure and screen printing
inks for paper and vinyl substrate)
• Decorative paper (inks for gravure printing on
paper and vinyl for decorating furniture, laminates,
etc.)
• rigid and flexible pVC panels.
Scarcely one month later eMB also acquired
the french company richard Colorants. richard
Colorants is france’s leading specialist producer
of water-based colour pigments. these pigments
are used in all applications which need colours in
liquid form for colouring:
• paint, ink, varnish, glues and textile coatings,
• wallpaper, paper and laminated paper,
• floor coverings, pU foam, plaster,
• shoe polish, sponges and gloves,
• finger paints, wax crayons.
and in January �007 we purchased the Belgian
company fillink, which specializes in inks for wide
format printers (see under “events after balance
sheet date” below).
In short we have, in a very short space of time, built up
an unique position that guarantees further expansion in
these sectors.
7
appareL DIVISIon
the apparel division designs and produces high quality
protective clothing for industrial applications. Sioen’s
reputation is based here on quality and flexibility.
During �006 the division optimized its internal
organization, both in Belgium and at its
manufacturing plants in tunisia and Indonesia.
together with a focus on professional markets, this
led to a slight drop in absolute sales, but provided
- more importantly - a 6% increase in operating
cash flow. operating result fell by 0.� million to
eUr 3.� million. this is explained mainly by a
number of one-off costs involved in redirecting
activities towards professional markets.
In �006 Sioen also extended its ultra-modern
r&D centre at ardooie with a brand-new section
specializing in testing and research on industrial
protective clothing
examples of where Sioen is called on to produce
protective clothing abound:
- for a handling company at Brussels-national
airport Sioen supplied water and windproof jackets
to the customer’s own specifications.
- europe’s leading deep-frozen products
transportation and logistics company recently
opted for Sioen protective clothing for its 7,500
employees.
- nantes, Bordeaux, toulouse and Lyon are just a
few french cities in which Sioen won tenders for
rain protective clothing.
- In the netherlands Sioen supplies high-tech flame
retardant and anti-static rainwear to a major gas
producer.
- Dutch police motor cyclists will in future be clad
in Sioen rain overalls.
- the public tender to provide protective clothing
for Belgium’s fire fighting services for the next three
years has just been awarded to Sioen.
- the Belgian ports authority has chosen Mullion
lifejackets for its harbour pilots.
Whenever quality and technical excellence are vital in
protective clothing, Sioen has an appropriate solution.
InDUStrIaL appLICatIonS DIVISIon
the Industrial applications division processes coated
fabrics and pVC film into a range of industrial items.
the Sioen Group successfully prospects and
supplies a number of markets in the transport sector,
via various subsidiaries. for truck and container
curtains and tarpaulins Sioen is the preferential
supplier of europe’s best known trailer builders.
the group also produces train tarpaulins. a number
of technical innovations in production have again
given Sioen a significant position on the european
market.
�006 saw an unprecedented boom (+ 33% year-
on-year) in curtains and tarpaulins. three factors lie
behind this growth:
- the strong economic development of a number
of Central european countries following their
accession to the eU;
- rising demand for more complex and higher
added value products;
- increasing professionalization in the sector
(production, logistics etc.)
Sioen also supplies the military market with
truck and jeep covers (with or without printed
camouflage patterns), camouflage nets, tents, etc.
the group is hard at work on a number of tenders
8
S I o e n I n D U S t r I e S I C o r p o r a t e I n f o r M a t I o n
for the armed forces, in particular for camouflage
netting, and has high hopes of winning a
substantial portion of these orders.
the Sioen group is applying its knowledge in a
very wide range of industrial markets. for example
with kadors (pVC-based coated fabric) for tents and
inflatable silos. We also cut airbags.
In the non-wovens market (needlefelt) we also made
significant technical breakthroughs that will ensure
the continued development of this activity. our
subsidiary Sioen nordifa has won no less than three
prizes for the innovative development of:
• a polylactyl-based biodegradable non-woven;
• a non-woven with specific acoustic features; and
• a non-woven that can separate out oil and water, with
the oil then broken down by bacteria.
a lack of production capacity led to the use of
subcontractors and the recruiting and training of
a relatively large number of new workers. this
occasioned a number of unforeseen expenditures
which depressed the operating result.
oUtLooK
Sioen Industries continues to focus on technical
excellence and innovation. the first months of �007
have continued the trends of the previous year, with
high demand for technical textiles. this demand set to
remain strong in the truck tarpaulins sector, where trailer
builders’ prognoses are very optimistic right through
�007. a number of capacity extension investments
are ready for finalization in the first half of the year.
these will give us additional capacity in online coating,
calendering and direct coating from �008 onwards.
eVentS after BaLanCe Sheet Date
In January eMB acquired Zaventem-based fillink
technologies n.v. fillink specializes in eco-solvent,
solvent and UV inks for wide format and superwide-
format digital printers. the group expects this new
takeover to add around eUr 7 million of sales in �007.
In January the smaller of our two Indonesian production
facilities suffered from flooding. assets and loss of
business are both insured. the group is doing everything
possible to minimize the operational and financial
implications.
9
(1) Quoted percentages have been rounded, and reflect the situation at 31 December �006 (�) Via Sioen Coating n.v.(3) the official name is Sioen Coated fabrics Shanghai trading Ltd.(4) the official name is Gairmeidi Caomhnaithe Dhun na nGall teoranta.(5) 5% via p.t. Sungintex (6) Via Monal s.a. and roltrans Group b.v. (7) In December �006 roland International b.v. acquired 100% of the shares of roland Ukraine Llc (8) the richard group was acquired in october �006(9) the official name is Colorants pigments Distribution
SIoen InDUStrIeS n.V.
CoatInG DIVISIon appareL DIVISIon InDUStrIaL appLICatIonS DIVISIon
Sioen Coating n.v. Sioen n.v. Coatex n.v. Direct Coating Belgium apparel Belgium processing of coated fabrics and
films BelgiumSaint frères s.a.s. Confection tunisienne de Sécurité s.aDirect Coating france apparel tunisia Saint frères Confection s.a.s.
heavy-duty manufacturing france Sioen Coating Distribution n.v. Donegal protective Clothing Ltd (4) Sales office Belgium apparel Ireland Sioen nordifa s.a.
filter production BelgiumSioen fabrics s.a. Mullion Manufacturing LtdWeaving/transfer Coating Belgium apparel U.K. roland International b.v. (6)
Manufacturing of truck tarpaulins Sioen fibres s.a. p.t. Sioen IndonesiaSpinning Belgium apparel Indonesia roltrans Group
america Inc.Sioen Shanghai (3) p.t. SungintexSales office China apparel Indonesia roland planen Gmbh
Siofab s.a. Sioen fibres s.a. roltrans Group transfer Coating portugal Central Distribution Unit Belgium polska sp.z.o.o.
tIS n.v. Sioen france s.a.s. roland Ukraine Llc (7)Weaving Belgium Sales office france
roland tilts UK Ltd.
Veranneman tt n.v. Sioen tunisie s.a.Weaving/Direct Coating Belgium Sales office tunisia
pennel automotive s.a.s. Sioen Zaghouan s.a.Calendering france apparel tunisia
Inducolor s.a. Sioen USa Inc. (5)Ink production Belgium Sales office
european Master Batch n.v. Master batch production Belgium
richard s.a.s. (8)
Copidis s.a.s. (9)
astra Colorants s.a.
99%
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100%100%
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95%
10%(�)10%(�)
75% (�)75% (�)
I I GroUp StrUCtUre
1 0
S I o e n I n D U S t r I e S I C o r p o r a t e I n f o r M a t I o n
I I I Share InforMatIon
List ing
In order to support and secure the company’s fast
growth, and in the conviction that a transparent
policy would further strengthen the group’s growth
possibilities, the Sioen Industries share was introduced
on the cash market, double fixing, of the Brussels Stock
exchange, on 18 october 1996.
a year later the share was listed on the semi-continuous
segment of the forward market. Since 11 March 1998
it has been quoted on the continuous segment of the
Brussels forward market, which has since become
euronext Brussels.
at the moment 7,758,538 shares or 36.3% of the total
number of shares are spread among the public. 60.3%
are controlled via the holding company Sihold n.v.,
controlled by the Sioen family, and 3.4% are held by
Shell pension fund
Public: 36.3%
Shareholders s t ructure
Sihold: 60.3%
Shell: 3.4%
evolut ion of the share in �006
the share was quoted at its highest price on 1�
December �006, at eUr 10.41. on 31 December �006,
at eUr 9.60, the share noted 16% higher than its price,
on 30 December �005 (eUr 8.30). With a combination
of steady growth of turnover, cash flow
and profit, a presence in the next prime segment and an
active communication policy, Sioen is seeking to pro-
actively stimulate investor interest. Market capitalization
amounted on 31 December �006 to eUr �05.3 million.
0
10
20
30
40
50
0
10
20
30
40
50
SioenEurostoxx50
SioenVolume
0
10
20
30
40
50
0
50,000
100,000
150,000
200,000
250,000
96 97 98 99 00 01 0� 03 04 05 06
3
1 1
Indices
In mid June �000 the Sioen Industries share was
included in the In.flanders, a share index made up of
the 100 most important listed employers in flanders. the
selection and weighting of the companies in the index
are a function of employment, established on the basis:
for subsidiaries of foreign enterprises, the number of
employees in flanders
for flemish enterprises, the number of employees
worldwide
the evolution of employment in flanders for the
subsidiaries, or worldwide for the flemish company.
the Sioen Industries share in this index is 1.��%
(31/1�/�005).
financial communicat ion policy
the Sioen Industries share is included on euronext
Brussels in Compartment B (Mid-Caps).
Dividend policythe Board of Directors aims for a pay-out ratio of more
than 15%, with the dividend increasing year after year,
in order to have the dividend closely linked to cash flow
expectations on the one hand, and on the other hand to
reward shareholders’ confidence in the company.
the pay out ratio for �006 amounts to 45.6%, as
compared to 37.8% last year. at eUr 0.�6 gross
(eUr 0.1950 net), the dividend is 8.3% higher than last
year. the dividend is payable at Dexia Bank, InG-Bank,
fortis Bank and KBC Bank from 8 June �007.
ISIn Be0003743573 Mep BrU Local
euronext code Be0003743573 Mnemo SIoe
type Stock - ordinary stock - Continuous
Market euronext Brussels - eurolist - Local shares Compartment B (Mid-Caps)
ICB Sector classification
3000, Consumer Goods
3700, personal & household Goods
3760, personal Goods
3763, Clothing & accessories
Reuters SIOE.BR
Bloomberg SIO.BB
Datastream B:SIO
1 �
S I o e n I n D U S t r I e S I C o r p o r a t e I n f o r M a t I o n
IV Corporate GoVernanCe
the Sioen family has been supported by external,
independent directors since 1986. their expertise
and experience contribute to the proper and effective
management of the company.
on �� March �005 the Board of Directors adopted a
Corporate Governance Charter, in accordance with the
Belgian Corporate Governance Code. the Corporate
Governance Charter has been in force since the �005
General Meeting, and can be consulted on the Sioen
Industries website (www.sioen.com).
no changes have been made to the Corporate
Governance Charter since it came into effect.
the board of directors
Composition (situation as at 1 april �007)
CHAIRMAN Mr J. J. Sioen (1), chairman/director in various other companies
MANAGING
DIRECTOR
MJS Consulting b.v.b.a.represented by Ms M. Sioen (1)Director in various other companies
DIRECTORS (5) Ms J. N. Sioen-Zoete (1), director in various other companiesD-Lance b.v.b.a. (1)represented by Ms D. parein-Sioen (�)Director in various other companiesP. Company b.v.b.a.represented by Ms p. Sioen (1)Director in various other companiesPol Bamelis n.v.represented by Mr p. Bamelis (3)Director in various other companiesRevam b.v.b.a.represented by Mr W. Vandepoel (3)Managing director Lessius Corporate finance n.v.. Director in various other companiesSheng n.v.represented by Mr L.-h. Verbeke (3)Chairman of Mitiska n.v.. Director in various other companiesK.E.M.P. n.v.represented by Mr L. Sterckx (3)Ceo of Spe/Luminus. Director in various other companiesVean n.v.represented by Mr L. Vansteenkiste (3)Managing director of recticel n.v. Director in various other companies
SECRETARY Mr G. asselmanCfo Sioen Industries Group
STATUTORY
AUDITOR (4)
Deloitte Bedrijfsrevisoren c.v.b.a.represented by Mr G. Verstraeten and Mr G. Wygaerts
(1) executive director
(�) non-executive director
(3) Independent director. In defining which directors are independent, the Company has opted for the criterion whereby
a director may not remain in his post for more than three four-year mandates, as from the General Meeting of �005.
the consequence of this is that three current directors are considered as independent, although they have already held
directorships for more than twelve years in the Sioen Group. this is to ensure the continuity of the Company and its
management.
(4) the Statutory auditor’s mandate expires at the ordinary general meeting in �008.
(5) the directors’ mandates expire at the �008 general meeting.
1 3
the Board of Directors and how i t works
In accordance with the articles of association, the
Board of Directors meets regularly as a function of the
company’s needs and interests. In �006 it met six times.
the number of meetings attended by the individual
directors in �006 were as follows:
Mr Jean-Jacques Sioen 6
Ms Michèle Sioen 6
Ms Jacqueline Sioen-Zoete 5
Ms Danielle Sioen 6
Ms pascale Sioen 6
Mr pol Bamelis 6
Mr Wilfried Vandepoel 6
Mr Louis-henri Verbeke 6
Mr Luc Sterckx 6
Mr Luc Vansteenkiste 6
the permanent agenda of every Board of Directors
meeting includes the discussion of and taking of
decisions with respect to the individual results of
companies in the group, division results, consolidated
results, current investments and projects, new projects
and proposals for investment opportunities. the board
also deals with specific points on the agenda as a
function of concrete matters in hand.
Working committees
the Sioen Industries Group has three working
committees:
a) Audit Committee:
In �006 the audit Committee consisted of four
independent directors, namely Messrs Vandepoel
(Chairman), Bamelis, Verbeke and Sterckx.
the audit Committee met six times in �006. the
number of meetings individually attended by the
members of the audit Committee in �006 was as
follows:
Mr Wilfried Vandepoel 6
Mr pol Bamelis 3
Mr Louis-henri Verbeke 6
Mr Luc Sterckx 3
b) Remuneration Committee
In �006 the remuneration Committee was made up of
three independent directors, namely Messrs Bamelis
(chairman), Sterckx and Vansteenkiste.
the remuneration Committee advises the Board
of Directors on pay policy in general and on the
compensation paid to the members of the Board of
Directors and the Management Committee in particular.
the share option plans also fall under its remit. the
remuneration Committee met three times in �006.
all members of the committee were present at each
meeting.
c) Nomination Committee
on �� March �005 a nomination Committee was set
up in accordance with Sioen Industries’ Corporate
Governance Charter. It is made up of two independent
directors (Messrs Bamelis and Sterckx) and one
executive director (Mr Jean-Jacques Sioen).
(1) D-Lance b.v.b.a., represented by Ms parein - Sioen, no longer forms part of the Management Committee as of 1 January �007, but continues to attend Management Committee meetings as an observer from the Board of Directors.
1 4
S I o e n I n D U S t r I e S I C o r p o r a t e I n f o r M a t I o n
Management Committee
the members of the Management Committee (as of 1
april �0071) are:
MJS Consulting b.v.b.a., represented by Ms M. Sioen
p.Company b.v.b.a., represented by Ms p. Sioen
Mr Geert asselman
Mr erwin Van Uytvanck
Mr Michel Devos
Secretary: Mr Loebrecht Lievens
external audit
Within the Sioen Industries group, external audit is
chiefly carried out by Deloitte Bedrijfsrevisoren. this
involves the auditing of both the statutory financial
statements and the consolidated annual financial
statements of Sioen Industries n.v. and its subsidiaries.
to the extent that the audits of a number of subsidiaries
are carried out by other auditing companies, Deloitte
makes use of their work, as stated in the Statutory
auditor’s report.
During the past financial year the Statutory auditor
received eUr 65,500 from Sioen Industries in respect of
its statutory auditor mandate. additionally the Statutory
auditor and its network received eUr 8,740 for other
auditing work, eUr 6,043 for fiscal consultancy services
and eUr 71,680 for other assignments outside its audit
mandate.
the mandate of Deloitte Bedrijfsrevisoren as Statutory
auditor of Sioen Industries n.v. expires at the annual
meeting of �008. Deloitte Bedrijfsrevisoren is
represented by Mr G. Verstraeten and Mr G. Wygaerts.
1 5
Share option plans
Under a Share option Scheme originally introduced in
1996, a total of 6,500 options were issued in �000 of
which 3,�50 remain outstanding and exercisable at a
price of eUr �0.335 per share until January �008. no
share options have been granted since �000. the Board
of Directors remains authorized to grant up to 158,000
options. no options have been allotted to directors until
now.
overview of the �000 share option plan
Date of Board decision 10/10/�000
option price as % of market price 7.5%
option price 1.5375
option exercise price �0.3550
allocation 6,500
Unused 3,�50
Balance to be exercised January �005-�008 (3,�50)
protocol to prevent insider t rading
to prevent privileged information being used illegally
by directors, shareholders, and members of the
management and staff (i.e. “insiders”), or even to
prevent such an impression possibly being created, the
Board of Directors of Sioen Industries n.v. has produced
a protocol for the prevention of abuse of insider
information (“1997 protocol”).
further to Directive �003/6/eU a new protocol was
approved by the Board of Directors on 1 May �005. the
protocol is initially aimed at protecting the market as
such, ensuring observance of the statutory provisions
and maintaining the group’s reputation.
In addition to a number of prohibitions concerning the
trading of Sioen Industries n.v. financial instruments
when insiders have privileged information that is not
(yet) available to the public, it also contains a number of
preventive measures and directives designed to maintain
the confidential nature of privileged information. all
insiders eligible for this have signed this protocol. a
Compliance officer has been appointed to monitor
observance of the protocol.
1 6
S I o e n I n D U S t r I e S I C o r p o r a t e I n f o r M a t I o n
V GeneraL InforMatIon
registered of f ice and name (art icles 1 and �)
the registered office of Sioen Industries, a public limited
liability company under Belgian law, is established
at fabriekstraat �3, B-8850 ardooie. the company is
registered (in the register of legal persons of Brugge)
listed under enterprise number 441.64�.780.
Incorporat ion and publicat ion
Sioen Industries was incorporated under the name
“Sihold” by deed executed before notary-public Ludovic
du faux in Moeskroen on 3 September 1990, published
in the annexes to the Belgian official Journal of �8
September 1990, under no.: 9009�8-197.
financial year (art icle 36)
the financial year begins on 1 January and ends on 31
December of each year.
term (art icle 4)
the company is established for an indefinite period.
object of the company (art icle 3)
the company’s object, in Belgium and abroad, on its
own behalf and on behalf of third parties, is:
the weaving of fibres of all kinds, the coating
of fabrics and all other material, the printing
thereof, the manufacture of plastic and plasticised
material, the manufacture, purchase and sale, both
in Belgium and abroad, of material useful for or
relating to aforesaid products and raw materials, as
well as the manufacture of chemical products and
pigments;
the manufacture of pre-fabricated outer clothing
in woven fabric, the manufacture of all kinds
of tailor-made clothing and embroidery; the
manufacture of outer clothing in knitted fabrics, and
of household linen and interior decoration items
interior decoration items; the manufacture of wall
cladding, the printing and finishing of all fabrics;
the manufacture of ready-to-wear items and outfits
for ladies and gentlemen, knitwear, embroidery,
household and table linen, children’s clothing. the
manufacture of safety and high visibility articles.
the wholesale and retail trade in all the above-
mentioned items;
the investment in, subscription to, permanent
takeover, placement, purchase, sale, and trading
of shares, dividend certificates, bonds, certificates,
claims, currencies and other movable securities,
issued by Belgian or foreign companies, whether or
not in the form of trading companies, administration
offices, institutions and associations either with or
without a (semi-) public law status;
the management of investments and participations
in subsidiaries, the holding of executive posts, the
giving of advice, management and other services to
or in accordance with the activities carried out by
the company itself. these services may be provided
by virtue of a contractual or statutory appointment
and in the capacity of external consultant or
representative of the company.
all of this insofar as the company complies with the
statutory requirements. the company may, in Belgium
and abroad, effect all industrial, trading, financial,
movable and immovable transactions that may develop
or promote its business either directly or indirectly. It
may acquire all movable or immovable goods even
if these are not related directly or indirectly to the
company’s object. It may, by any means, acquire
participating interests in all associations, businesses,
enterprises or companies that are striving for the same
or a similar or related object or that can promote its
business or facilitate the sale of its products or services,
and it may collaborate or merge therewith.
Consultat ion of documents
the statutory and consolidated annual accounts of
the company and the accompanying reports are filed
with the national Bank of Belgium. the articles of
association and the special reports required by the
Companies Code as well as the annual and half-yearly
1 7
reports and all information published for the benefit of
the shareholders, are available at the registered office
of the company. the articles of association, the annual
and half-yearly reports can also be downloaded from the
website www.sioen.com.
historical development of the capital
the historical development of the capital is included
under the comments on the consolidated annual
accounts.
authorized capital
the board of directors is authorised during a period
of five years counting from the date of publication in
the annexes to the Belgian official Journal of the deed
concerning the amendment of the articles of association
of 30 May �003 (BoJ of �3 June �003) to increase the
subscribed capital on one or more occasions, by a
maximum amount of forty-six million euros.
this renewable authority is valid for capital increases
in cash, in kind or by conversion of reserves. at the
moment this full amount is still available.
In the framework of the authorised capital, the board of
directors is authorised, in the interest of the company
and subject to observance of the conditions laid down
in articles 535 and 59� to 599 of the Companies
Code, to cancel or restrict the preferential subscription
right that is granted to the shareholders by law. the
board of directors is authorised to restrict or cancel
the preferential subscription right in favour of one or
more particular persons, even if these persons are not
members of staff of the company or its subsidiaries.
In the event of the increase of the subscribed capital,
carried out within the limits of the authorised capital,
the board of directors is authorised to ask for an issue
premium. If the board of directors decides to do so, this
issue premium should be allocated to an unavailable
reserve account that can only be reduced or written
off by resolution of the general meeting passed in the
manner required for the amendment of the articles of
association.
In default of an express authorisation given by the
general meeting to the board of directors, the board of
directors’ authority to increase the subscribed capital
through a contribution in cash with cancellation or
restriction of the existing shareholders’ preferential
subscription rights, or through contribution in kind, is
suspended from the date of notification to the company
by the Banking, finance and Insurance Commission
of a public takeover bid for the company’s shares.
this authority will be reinstated immediately after the
closing of such a takeover bid. the general meeting of
�7 May �005 expressly authorised the board of directors
to increase the subscribed capital on one or more
occasions, from the date of notification by the Banking,
finance and Insurance Commission to the company of
a public takeover bid for the company’s shares, through
contributions in cash with cancellation or restriction of
the existing shareholders’ preferential subscription right
or by contributions in kind, in accordance with articles
557 and 607 of the Companies Code. this authority was
granted for a period of three years as from �7 May �005
and is renewable.
acquisi t ion by the company of shares in i ts own capital
the general meeting of the �8 of May �004 expressly
authorised the board of directors, in accordance with
the provisions of the Companies Code, to acquire or
have the disposal of its own shares or profit-sharing
bonds, if the acquisition thereof is necessary to avoid
an impending serious detriment to the company. this
authorisation is valid for a period of three years from the
date of publication of the above-mentioned resolution
in the annexes to the Belgian official Journal (BoJ of
�3 June �004).
the general meeting of the �6 May �006 authorised
the board of directors, in accordance with articles
6�0 to 6�3 and 6�5 of the Companies Code, to obtain
its own shares through purchase or exchange up to
the maximum number permitted by law, and at a
price equal to the market value of the shares. this
authorisation (also extends to the acquisition of shares
of the company by one or more of its direct subsidiaries
within the meaning of the law and is valid for a period
of eighteen months counting from �6 May �006 and is
renewable.
1 8
f InanCIaL oVerVIeW
1 9
fInanCIaL oVerVIeW
Sioen industries consolidated financial statements
I. Comments on the consolidated financial statements �0
II. financial statements ��
II.1. Consolidated balance sheet ��
II.�. Consolidated income statement �4
II.3. Consolidated cash flow statement �6
II.4. Consolidated statement of changes in equity �7
III. notes to the consolidated financial statements �8
III.1. Key accounting rules �8
III.�. Segment information 37
III.3. exchange rate 40
III.4. Detailed income statement 41
III.5. Detailed balance sheet 45
IV. other 68
V. Statutory auditor’s report 71
VI. Statutory annual accounts of Sioen Industries n.v. 73
VII. proposal to the annual meeting 76
Definitions 77
addresses 78
� 0
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
Sioen Industries is the leading world producer of coated
technical textiles, european market leader in industrial
protective clothing, a niche specialist in fine chemicals
and a major world player in processing technical textiles
into semi-finished products and technical end products.
Sales
In �006 Sioen achieved net group sales of eUr
339.4 million, up 7% from eUr 316.� million the
year before. a booming transport sector in �006
with strongly rising demand for trucks and trailers
meant attractive growth figures for both our Coating
and our Industrial applications divisions (10% and
19.5% respectively). apparel division sales slipped
slightly as the division redirected its activities
towards more professional markets, producing a rise
in operating cash flow.
Gross margin-EBITDA-EBIT
Despite historically high raw materials prices and
increased competition, the group was able to
maintain its gross margin and to increase eBItDa at
group level by 3%. free cash flow (cash available
for investments) grew explosively from eUr 17.3
million in �005 to eUr 37.6 million in �006. this
rise is even stronger in the Coating division. price
increases for final products, a continuous drive for
cost efficiency and constant r&D efforts contributed
to this result. Whilst sales rose by 10%, operating
cash flow increased by 15%. the Apparel division
succeeded, in very competitive conditions, not only
to maintain but even increase its gross margin. this
obviously had a positive impact on operating cash
flow, which rose from eUr 5.8 million in �005
to eUr 6.1 million in �006. In this division too,
technical excellence is crucial, in particular with
professional users that set very high standards. the
Industrial Applications division faced a slight drop
in both gross margin and eBItDa. this fall is only
temporary, given recent price increases.
Services and miscellaneous goods rose in line with
sales. the fastest rising costs here are energy and
related costs (gas, electricity, fuel and transport).
Personnel costs also rose in step with sales. here
one should bear in mind the effect of the two
acquisitions by the Chemicals group and also
strongly rising demand in the Industrial applications
division. this heading also covers a number of non-
recurring costs.
Other operating costs covers a number of generally
non profit-related taxes like property tax, taxe
professionelle in france and the like. every year
these non profit-related taxes grow more onerous,
to the extent that they are now just as important as
corporation tax.
this gives the group an operating result of
eUr �5.9 million in �006 compared with �5.4
million in �005.
operating cash flow (eBItDa) rose by 3% to
eUr 44.8 million.
Financial costs were approx. eUr 1 million
higher than in �005. this is due primarily to a
eUr �1 million increase in net financial debt
to eUr 147.7 million, occasioned primarily by
takeovers and the relatively heavy investment
programme in �006.
the effective tax rate rose from 3�% to 37%, due
entirely to the non-recognition of latent tax assets in
respect of losses in certain subsidiaries.
this brings the final net profit for �006 to
eUr 1�.1 million, compared with eUr 13.6 million
in �005.
Net operating cash flow rose by eUr � million from
eUr �9.5 to 31.5 million.
Investments
total investment in tangible fixed assets amounted to
eUr �7.5 million. the largest items here are:
o the new production line at nordifa: eUr �.3 million
o the new production hall at eMB: eUr �.5 million
o Investment in a new erp package: eUr �.5 million
I . CoMMentS on the ConSoLIDateD fInanCIaL StateMentS
� 1
o a number of new looms: eUr 0.5 million
o air conditioning for the yarn extrusion plant:
eUr 0.4 million
o Initial investments in the new calendaring plant:
eUr 6.1 million.
In addition two acquisitions were made by the
group last year, representing a net investment of eUr
�3.5 million.
Last year the group received eUr 1.5 million in
investment grants. these are deducted from the
acquisition cost of the assets in question.
Balance sheet
In nominal amounts working capital rose from
eUr 107.5 million at 31/1�/�005 to eUr 111.8 million
at 31/1�/�006. Bearing in mind that sales have increased
by eUr �3 million, working capital as a percentage of
sales has fallen from 34% to 3�.9%. net financial debt
has risen to eUr 147 million, owing to the investment
programme of around eUr 47 million (investments and
capital expenditure together).
Risks
Sioen Industries nV is a company listed on euronext,
that does not itself exercise any industrial activity. Sioen
Industries holds participations in companies operating in
the following sectors:
- Coating of technical textiles
- Designing, developing and production of protective
clothing.
- processing heavy technical textiles into finished
products.
Sioen Industries is influenced, in particular in terms of its
income, by the economic performance of these divisions.
these divisions are in turn dependent on general
economic trends and more specifically:
the volatility of crude oil prices and the more or
less related volatility of prices of its principle raw
materials. (pVC, polyester, plasticizers, etc.)
With regard to the processing of heavy technical
textiles, the group’s evolution closely tracks the
economic cycles of the truck sector.
the protective clothing division follows the current
trend in industrial activity in Western europe. the
emphasis is here less on volume and more on the
technical specifications of the clothing.
� �
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
I I . ConSoLIDateD fInanCIaL StateMentS the consolidated financial statements for �006 were approved by the Board of Directors for publication on 19 March
�007.
I I .1. ConSoLIDateD BaLanCe SheetII .1. ConSoLIDateD BaLanCe Sheet in thousands of eurosin thousands of euros
ASSETS 2005 2006Note
Non-Current assets
Intangible assets III.5.1. � �67 17 716
Goodwill III.5.�. 16 548 17 935
property, plant and equipment III.5.4. 14� �78 150 4�0
Long term trade receivables III.5.5. 59 ��
other long term assets III.5.5. 5�4 504
Deferred tax assets III.5.15. 7 010 6 199
TOTAL NON-CURRENT ASSETS 168 686 192 796
Current Assets
Inventories III.5.6. 78 463 84 47�
trade receivables III.5.7. 69 416 70 414
other receivables III.5.8. 11 118 9 4�3
other investments and deposits III.5.8. �60 53�
Cash and cash equivalents III.5.8. 8 31� 1� 584
Deferred charges and accrued income III.5.8. 1 4�8 1 61�
TOTAL CURRENT ASSETS 168 997 179 037
TOTAL ASSETS 337 683 371 833
� 3
EQUITY & LIABILITIES 2005 2006
Equity Note
Share capital 46 000 46 000
retained earnings 81 317 88 338
hedging and translation reserves � 046 1 459
Minority interests 19 0
TOTAL EQUITY 129 383 135 797
Non-Current liabilities
Interest bearing loans - payable after one year III.5.11. 53 831 117 033
provisions III.5.10. 1 0�3 � 509
pension obligations III.5.9. 1 �56 1 671
Deferred tax liabilities III.5.15. 16 8�1 18 360
finance leasing - payable after one year III.5.1�. 13 049 11 4�8
other amounts - payable after one year III.5.11. 33 3
TOTAL NON CURRENT LIABILITIES 86 012 151 004
Current liabilities
trade and other payables III.5.13. 36 510 31 744
Interest bearing loans - up to one year III.5.11. 67 �90 31 16�
provisions - up to one year III.5.10. 379 1 �93
pension obligations - up to one year III.5.9. 65 4�
tax liabilities III.5.13. 5 589 7 364
finance leasing - up to one year III.5.1�. 1 14� 1 �70
other amounts payable - up to one year III.5.13. 11 313 1� 157
TOTAL CURRENT LIABILITIES 122 288 85 032
TOTAL EQUITY AND LIABILITIES 337 683 371 833
� 4
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
I I .�. ConSoLIDateD InCoMe StateMentII .�. ConSoLIDateD InCoMe StateMent by function I in thousands of eurosin thousands of euros
2005 % of 2006 % ofSales Sales
net sales 316 �37 100.0% 339 389 100.0%
Cost of goods sold -�51 877 (1) -79.6% -�67 436 -78.8%
Manufacturing contribution 64 360 20.4% 71 954 21.2%
Sales and marketing expenses -15 896 -5.0% -15 573 -4.6%
r&D expenses -5 554 (1) -1.8% -7 0�1 -�.1%
administrative expenses -19 887 -6.3% -�� 465 -6.6%
other operating result � 940 0.9% 304 0.1%
non recurring result (�) -505 -0.�% -1 307 (�) -0.4%
Operating profit 25 457 8.1% 25 891 7.6%
financial result -5 470 -1.7% -6 565 -1.9%
EBT 19 987 6.3% 19 326 5.7%
tax -6 399 -�.0% -7 17� -�.1%
EAT 13 588 4.3% 12 153 3.6%
Cash flow �9 535 9.3% 31 496 9.3%
eBItDa 43 647 13.8% 44 843 13.�%
eBIt �5 457 8.1% �5 891 7.6%
(1) in �005: reallocation of goods produced for r&D purposes to r&D expenses in an amount of keUr 1,337 in �005 to
permit comparison with figures for �006
(�) in �006: non-recurring items relate to restructuring expenses in france (pennel automotive SaS). a provision for
restructuring has been taken amounting to eUr 1.3 million eUr.
� 5
2005 % on
Turnover
2006 % on
TurnoverCONSOLIDATED PROFIT AND LOSS STATEMENT
a. turnover 316 �37 339 389
B. Changes in stocks and wip 4 647 1.47% 4 6�0 1.36%
D. other operating income 4 0�6 1.�7% 3 339 0.98%
I. revenue 3�4 910 347 348
II. Cost of sales 160 844 (1) 50.86% 171 856 50.64%
Gross margin 50.61% 50.72%
III. Services and other goods -50 705 (1) -16.03% -55 �66 -16.�8%
IV. remuneration, social security and pensions -63 450 -�0.06% -67 640 -19.93%
V. Depreciations -17 899 -5.66% -17 919 -5.�8%
VI. amounts written down on stocks and trade debts -86� -0.�7% -�30 -0.07%
VII. provision liabilities & charges 57� 0.18% -804 -0.�4%
VIII. other operating expenses -5 758 -1.8�% -6 435 -1.90%
Ix. non recurring items -505 -0.16% -1 307 -0.39%
X. OPERATING RESULT 25 457 8.05% 25 891 7.63%
XIII. fInanCIaL reSULt -5 470 -1.73% -6 565 -1.93%
XVI. PROFIT BEFORE TAX 19 987 6.32% 19 326 5.69%
XVII. taXeS -6 399 -�.0�% -7 17� -�.11%
XVIII. PROFIT AFTER TAX 13 588 4.30% 12 153 3.58%
XII. MInorItY IntereSt -6 0.00% 0 0.00%
XX. RESULT PART OF THE GROUP 13 582 4.29% 12 153 3.58%
EBIT 25 457 8.05% 25 891 7.63%
EBITDA 43 647 13.80% 44 843 13.�1%
Cash Flow 29 535 9.34% 31 496 9.�8%
(1) in �005: reallocation of goods produced for r&D purposes to r&D expenses in an amount of keUr 1,337 in �005 to
permit comparison with figures for �006
I I .�. ConSoLIDateD InCoMe StateMentII .�. ConSoLIDateD InCoMe StateMent by nature I in thousands of eurosin thousands of euros
� 6
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
I I .3. ConSoLIDateD CaSh fLoW StateMent I I .3. ConSoLIDateD CaSh fLoW StateMent I in in thousands of eurosthousands of euros
2005 2006
recurring operating result �5 96� �7 198non recurring items -505 -1 307
Depreciation 17 899 17 919Impairment 0Write off inventory and receivables 86� �30provision other risks and charges -1 0�6 � 79�
Changes in working capital -16 664 -� �54other changes -5�1 -175
Cash flow from operating activities 26 007 44 402
Current taxes -8 64� -6 78�
Net cash flow from operating activities 17 365 37 620
received interests 343 786acquired intangible and tangible assets through business combinations -16 594acquired working capital through business combinations -5 56�Goodwill resulting from business combinations -1 387Deferred tax resulting from business combinations 1 676Investments in intangible and tangible fixed assets -19 571 -�7 440Disposal and sale of intangible and tangible fixed assets 534 38�Increase in capital grants 830 1 565translation adjustments on intangible and tangible assets 558
Net cash flow from investing activities -17 865 -46 016
Net cash flow before financing activities -500 -8 396
paid interest -6 �80 -7 51�Disbursed dividend -4 706 -5 133Increase long term interest bearing loans �0 000 98 900Decrease long term interest bearing loans -�4 �93 -35 698Increase/(decrease) short term intrest bearing loans 8 097 -36 157Increase/(decrease) finance lease obligations -1 066 -1 493other -18 -45Currency result 484 �05
Cash flow from financing activities -7 781 13 068
Impact of cumulative translation adjustments and hedging 1 966 -1�8
Change in cash and cash equivalents -6 314 4 543
net cash position at the end of previous period 14 887 8 57�net cash position at the end of current period 8 57� 13 116
� 7
2006
Capital Reserves Translation
differences
Hedging
reserves
Minority
at the end of last financial year 46 000 81 318 � 466 -4�0 19
result 1� 153Dividends -5 134hedging 1 938Deferred tax -673Cumulative translation adjustments -1 766Change in consolidation scope -19transfer to profit on cash flow hedges -86
at the end of current financial year 46 000 88 337 700 759 0
the company paid in �006 eur 5.1 Mio dividends over �005.
proposed dividend over �007 under condition of approval by the general shareholders meeting amounts to eUr 5.6 Mio.
I I .4. ConSoLIDateD StateMent of ChanGeS In I I .4. ConSoLIDateD StateMent of ChanGeS In eQUItY eQUItY I in thousands of eurosin thousands of euros
2005
Capital Reserves Translation
differences
Hedging
reserves
Minority
at the end of last financial year 46 000 7� 439 -137 0
result 13 58� 6
Dividends -4 707
hedging -636
Deferred tax �16
Cumulative translation adjustments � 603 17
other 4 -4
at the beginning of last financial year 46 000 81 318 � 466 -4�0 19
� 8
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
SUMMarY of KeY aCCoUntInG rULeS
the consolidated annual financial statements of Sioen
Industries nV (the ‘Company’) include the annual
financial statements of the Company, its subsidiaries and
those entities which are consolidated by the proportional
method (together referred to below as the ‘Group’).
the consolidated financial statements are drawn up in
conformity with the International financial reporting
Standards (IfrS), as accepted within the european
Union.
In the current year, the Group has adopted all of the
new and revised Standards and Interpretations issued by
the International accounting Standards Board (the IaSB)
and the International financial reporting Interpretations
Committee (the IfrIC) of the IaSB that are relevant to
its operations and effective for annual reporting periods
beginning on 1January �006, all of which have been
endorsed by the european Union.
applicat ion of new IfrS
the Group has not applied in advance the following
new standards and interpretations which, on the date of
approval of these annual accounts, had been issued, but
were not yet effective :
- IfrS 7 financial Instruments: Disclosures; effective for
annual periods beginning on or after 1 January �007
- IfrS 8 operating Segments; effective for annual periods
beginning on or after 1 January �009
- IfrIC 7 applying the restatement approach under IaS
�9; effective for annual periods beginning on or after 1
March �006
- IfrIC 8 Scope of IfrS �; effective for annual periods
beginning on or after 1 May �006
- IfrIC 9 reassessment of embedded Derivatives;
effective for annual periods beginning on or after 1 June
�006
- IfrIC 10 Interim financial reporting and Impairment;
effective for annual periods beginning on or after 1
november �006
- IfrIC 11 IfrS � Group and treasury Share transactions;
effective for annual periods beginning on or after 1
March �007
- IfrIC 7 Service Concession arrangements; effective for
annual periods beginning on or after 1 January �008
except for IfrS 7 and IfrS 8 which will impact the
amount of information to be disclosed, the future
application of the above-mentioned standards and
interpretations would appear at a first estimate to have
no material impact on the annual financial statements.
General pr inciples
the consolidated annual accounts give a general
overview of the Group’s activities and the results
obtained. they give an accurate picture of the entity’s
financial position, financial performance and cash flow,
and are drawn up on a going concern basis.
the annual accounts are stated in thousands of euros,
as the euro is the currency of the primary economic
environment in which the Group is active. the annual
financial statements of foreign partipations are converted
in accordance with the principles described in the
section ‘foreign Currencies’.
the consolidated financial statements are presented on
the basis of the historical cost method, unless otherwise
stipulated in the accounting principles set out below.
Foreign currencies
on the basis of the Group’s relevant economic
environment and its transactions, the euro has been
chosen as the reporting currency.
foreign subsidiaries’ financial statements are converted
as follows:
transactions in foreign currencies are converted at
the exchange rate which applied on the date of the
transaction. on each balance sheet date, cash assets and
I I I . noteS to the ConSoLIDateD fInanCIaL StateMentS I in thousands of eurosin thousands of euros
I I I .1. KeY aCCoUntInG rULeSII I .1. KeY aCCoUntInG rULeS
� 9
liabilities expressed in foreign currency are converted at
the closing rate. non-cash assets and liabilities which
are shown at their fair value in a foreign currency are
converted at the exchange rate which applied when their
fair value was determined.
Gains and losses arising from such conversions are
recorded in the income statement. however, if they
are deferred, they are recorded as equity. assets
and liabilities from the Group’s foreign activities are
converted at the closing rate.
Income and expenses are converted at the average
exchange rate over the period, unless exchange rates
have fluctuated greatly. the resultant exchange rate
differences are recorded in equity, under the heading
“Conversion differences”.
If a foreign activity is disposed of, the cumulative amount
of the exchange rate differences that was recognised in
equity is recorded in the income statement.
Goodwill and adjustments to the fair value arising on
the acquisition of a foreign entity are treated as assets
and liabilities of the foreign entity and converted at the
closing rate.
Consolidat ion principles
Subsidiaries
Subsidiaries are companies over which the Company
exercises a decisive influence (‘control’). Control is
the power to steer an entity’s financial and operational
policy in order to derive benefit from its activities. the
consolidation of subsidiaries starts on the date on which
the Group acquires control over them and stops when
it loses that control. the companies in question are
accounted for by the full consolidation method.
Subsidiaries’ annual accounts are drawn up for the same
financial year as those of the parent company and on
the basis of uniform financial reporting principles for
comparable transactions and other events in similar
circumstances.
Combinations of companies
If the Group takes over an entity or business activity, the
identifiable assets, liabilities and contingent liabilities of
the party which has been taken over are adopted at their
fair value.
Subsidiaries’ financial statements are included in the
scope of consolidation from the date of acquisition until
control ceases.
the difference between the cost price and the acquiring
party’s stake in the net fair value of the identifiable
assets, liabilities and contingent liabilities is recorded as
goodwill. If this difference is negative, the surplus, after
reassessment of the fair values, is accounted for directly
in the income statement.
If the group increases its interest in an investment in
which it did not yet have control, the surplus or deficit
compared with the net asset, after adjustment to the fair
value that was acquired, is processed as if it were a new
acquisition according to the methodology explained in
the above section. If the group increases its interest in an
investment in which it already had control, the greater
or lesser price that was paid vis-à-vis the share in the
net assets that was acquired, is included directly in the
company’s own equity.
all intercompany transactions, intercompany balances
and unrealised profits on intercompany transactions are
eliminated unless they relate to a permanent write-down.
Minority interests are valued on the basis of their share
in the fair value of the recorded assets, liabilities and
contingent liabilities.
Balance sheet
Intangible assets
Intangible assets are valued at cost price. Intangible
assets are recognised if it is likely that the Group will
receive the associated future economic benefits and if
the asset’s cost price can be reliably determined. after
their initial recognition in the accounts, all intangible
assets are valued at cost price, less any accumulated
depreciation or impairments. Intangible assets are
3 0
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
depreciated on a straight-line basis over the best estimate
of their economic life.
the remaining economic life and the depreciation
method used are reassessed at the close of every
financial year. any change in the economic life of an
intangible asset is treated as a revaluation.
Internally generated intangible assets are only recognised
if all the following conditions are satisfied:
• an identifiable asset has been generated
• it is likely that the generated asset will yield future
economic benefits; and
• the asset’s cost price can be reliably determined.
Subsequent expenditure on capitalised intangible assets
is only included in the balance sheet if it increases the
likely future economic benefits associated with the asset
concerned. all other expenditure is recorded in the
income statement at the time it is incurred.
Licences, patents and similar rights
expenditure on purchased licences, patents, trademarks
and similar rights is capitalised and depreciated on
a straight-line basis over the contractual term, where
applicable, or over the estimate economic life, which is
deemed to be no more than five years.
Computer software
expenditure relating to the development or maintenance
of computer software is normally offset against the
result of theperiod in which it is incurred. only external
expenditure which is directly related to the purchase
and implementation of purchased software is recorded
as an intangible asset and depreciated on a straight-line
basis over three years. purchased erp software and the
associated implementation costs are depreciated on a
straight-line basis over seven years.
Research and development
research expenditure with a view to the acquisition of
new scientific or technological insights or knowledge is
included as a cost in the income statement as it arises.
Development expenditure in which research results are
used in a plan or design for the production of new or
substantially improved products and processes prior
to commercial production or implementation is only
recognised in the balance sheet if all the following
conditions are satisfied:
• the product or process is precisely defined and the
expenditure is individually identifiable and reliably
measurable;
• the product’s technical feasibility has been sufficiently
demonstrated;
• the product or process will be commercialised or used
within the company;
• the assets will generate future economic benefits (e.g.
a potential market exists for the product or its internal
usefulness has been sufficiently proven);
• the appropriate technical, financial and other resources
are available to finalise the project.
If the above criteria are not satisfied, the development
costs are taken to the income statement as they arise.
Capitalised development costs are depreciated on
a straight-line basis over the expected duration of
the generated benefits from the start of commercial
production or the implementation of the product or
process.
Goodwill
Goodwill represents the additional premium paid on
the acquisition of an interest over the fair value of the
Group’s interest in the acquired assets and liabilities at
the time of acquisition.
Goodwill is recorded as an asset and subjected to a
impairment test at least once a year. any impairment loss
is immediately recorded in the income statement and is
not subsequently written back.
negative goodwill represents the amount by which the
fair value of the Group’s interest in the acquired assets
and liabilities at the time of acquisition exceeds the price
paid.
on the disposal of a subsidiary, associated undertaking
or entity over which joint control is exercised, the related
I I I . noteS to the ConSoLIDateD fInanCIaL StateMentS
II I .1. KeY aCCoUntInG rULeSII I .1. KeY aCCoUntInG rULeS
3 1
goodwill is included in the calculation of the gain or loss
on disposal.
Tangible fixed assets
tangible fixed assets are valued at cost price less
accumulated depreciation and impairments. a tangible
fixed asset is recognised if it is likely that the Group will
receive the associated future economic benefits and if
the asset’s cost price can be reliably determined.
the cost price includes all direct costs and all directly
attributable costs incurred in order to bring the asset to
the location and condition necessary for it to function
in the intended way. Interest during construction is not
capitalised.
Subsequent expenditure associated with a tangible fixed
asset is usually recorded in the income statement as it is
incurred. Such expenditure is only capitalised if it can
be clearly shown to result in an increase in the expected
future economic benefits from the use of the tangible
fixed asset compared with the original estimate. repair
and maintenance costs which do not increase the likely
future economic benefits are recorded as costs as they
are incurred.
the different categories of tangible fixed assets are
depreciated by the straight-line method over their
estimated economic life. Depreciation commences once
the assets are ready for their intended use.
the estimated economic life of the main tangible fixed
assets lies within the following ranges:
Buildings: �0 years
Machines: 5 to 15 years
equipment: 10 years
furniture: 5 years
hardware: 5 years
Vehicles: 5 years
If an asset’s book value is lower than the estimated
realisable value, it is immediately written down to the
realisable value.
the gain or loss on the sale or disposal of an asset is
determined as the difference between the net income
on disposal and the asset’s book value. this difference is
recorded in the income statement.
Lease agreements
Financial leasing
Lease agreements which assign to the Group all the
main risks and benefits associated with ownership
are regarded as financial leasing. the assets acquired
under financial leasing arrangements are stated in the
balance sheet at their fair value at the start of the lease
agreement, or, if this is lower, at the present value of the
minimum lease payments, less accumulated depreciation
and impairments.
the discount rate used in the calculation of the present
value of the minimum lease payments is the interest
rate implicit in the lease agreement, where this can
be determined, or otherwise the company’s marginal
borrowing rate. Initial direct costs are included in the
capitalised amount. Lease payments are broken down
into interest charges and repayments of the principal. the
interest charges are spread over the duration of the lease
agreement such that a constant periodic interest rate is
obtained on the outstanding balance for each period. a
financial lease agreement results in the recording of both
a depreciation amount and an interest charge in each
period. the depreciation rules for assets acquired under
financial leasing arrangements are consistent with those
for assets over which full ownership is acquired.
Operational leasing
Lease agreements in which all the main risks and benefits
associated with ownership reside with the lessor are
regarded as operational leasing. In operational leasing,
the lease payments are recorded as costs and spread on
a straight-line basis over the lease period. the total value
of discounts or benefits granted by the lessor is offset
3 �
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
against the leasing costs and spread on a straight-line
basis over the lease period.
Property investments
a property investment, i.e. one which is maintained in
order to generate rental income, an appreciation of value
or both, is shown at fair value on the balance sheet date.
Gains or losses arising from a change in the fair value of
a property investment are recorded in the results for the
period in which they arise.
Financial investments
Investments are recorded in/ removed from the accounts
on the transaction date, i.e. the date on which an entity
undertakes to buy or sell the asset in question. financial
investments are valued at the fair value of the price paid,
plus the transaction costs. Investments held for trading
or available for sale are recorded at their fair value. If
investments are maintained for trading purposes, the
gains and losses arising from changes in the fair value
are taken to the income statement for the period in
question. In the case of investments which are available
for sale, gains and losses arising from changes in the
fair value are immediately recognised in equity until the
financial asset is sold or subject to impairment.
In this case, the cumulative gain or loss which had
previously been recognised in equity is included in the
income statement for the period. holdings which are not
classified as available for sale, which are not listed on
an active market and whose fair value cannot reliably be
determined using alternative valuation rules are valued
at cost price. financial investments which are held until
they mature are valued at their amortised cost price,
using the effective interest method. this does not apply
to short-term deposits, as these are valued at their cost
price.
Investment grants
Investment grants relating to the purchase of tangible
fixed assets are offset against the purchase price or
manufacturing cost of the assets in question. the
expected amount is recorded in the balance sheet at
the time of initial approval, and, if necessary, corrected
subsequently at the time of definitive allocation of the
grant. the grant is recorded in the income statement in
proportion with the depreciation of the tangible fixed
assets for which it was obtained.
Inventories
Inventories are valued at the lower of cost price or
realisable value. the cost price includes all direct and
indirect costs incurred to bring the goods to the stage of
completion they have reached on the balance sheet date.
the cost price is calculated using the weighted average
cost price method. the realisable value is the estimated
sale price minus the estimated finishing costs and costs
associated with marketing, sale and distribution.
Receivables
Short-term receivables are stated at nominal value, less
suitable provisions for any debts regarded as doubtful.
Long-term receivables are valued at amortised cost price.
Cash and cash equivalents
Cash and short-term investments which are maintained
until the end of the period are stated at their cost price.
Cash equivalents are short-term, extremely liquid
investments which can be converted immediately into
cash of a known amount, and which do not carry any
material risk of change of value.
Financial liabilities and equity instruments
financial liabilities and equity instruments are classified
on the basis of the economic reality of the contractual
agreement. an equity instrument is a contract which
includes the residual right to a share in the Group’s
assets, after the deduction of all liabilities. equity
instruments issued by the Company are recorded to the
amount of the received consideration, less the direct
costs of issue.
Income tax
tax expenses consist of tax due for the reporting
period and deferred taxes. the tax due for the reporting
I I I . noteS to the ConSoLIDateD fInanCIaL StateMentS
II I .1. KeY aCCoUntInG rULeSII I .1. KeY aCCoUntInG rULeS
3 3
period is based on the taxable profit for the period.
taxable profit differs from the net profit in the income
statement, because it excludes certain items of income
or expenditure which are taxable or deductible in
subsequent years, or which will never be taxable or
deductible.
the current tax liability is calculated on the basis of
the tax rates for which the legislative process has been
(substantially) completed by the balance sheet date.
Deferred taxes are taxes which are expected to be paid
or recovered on the basis of differences between the
book value of assets or liabilities in the annual accounts
and their taxable value used for the calculation of the
taxable profit. they are account for using the balance
sheet liability method. Deferred tax liabilities are usually
recognised for all taxable temporary differences and
deferred tax receivables are recognised to the extent
that it is likely that a taxable profit will be available
against which the recoverable temporary difference can
be offset. Such assets and liabilities are not recorded if
the temporary differences arise from goodwill or from
the initial recognition (other than in connection with a
business combination) of other assets and liabilities in a
transaction which has no effect on the taxable profit or
the profit before tax.
Deferred tax liabilities are recognised for taxable
temporary differences which relate to investments in
subsidiaries, associated undertakings and enterprises
accounted for by the equity method unless the Group
can determine the time when the temporary difference
will be resolved or if it is likely that the temporary
difference will not be resolved in the near future.
the book value of deferred tax receivable is assessed at
every balance sheet date and reduced if it is no longer
likely that sufficient taxable profit will be available to
make it possible to use all or some of the benefit of the
deferred tax receivable.
Deferred taxes are valued on the basis of the tax rates
which are expected to apply in the period in which the
tax recovery is realised or the liability is settled. Deferred
taxes are recorded as income or expenses in the income
statement for the period, unless the taxation arises from
a transaction or event that has been directly included in
equity. In this case, the deferred tax is also accounted for
in equity.
Pensions and related liabilities
In accordance with laws and practices of each country,
associated entities have either defined benefit schemes or
defined contribution schemes.
Defined contribution schemes
Contributions to defined contribution schemes are
recorded as an expense as they fall due.
Defined benefit schemes
In defined benefit schemes, the amount on the balance
sheet (the ‘net liability’) corresponds to the present value
of the gross liability, adjusted for unrecorded actuarial
gains and losses, after deduction of the fair value of the
scheme investments and unrecorded prior service costs.
the ‘present value of the gross liability of a defined
benefit scheme’ is the present value, before deduction
of the scheme investments, of expected future payments
required to settle the liability which results from the
employee’s service record in the current and previous
periods.
the discounted value of the liability arising from defined
pension rights and the assigned pension costs associated
with the year of service and prior service pension
costs are calculated by accredited actuaries using the
projected unit credit method.
the discount rate corresponds to the rate of return
on the balance sheet date on corporate bonds with a
high degree of creditworthiness and a remaining term
comparable with the term of the Group’s liabilities. the
discount rate is adjusted annually to reflect the market
return from high-value corporate bonds whose term is
consistent with the estimated term of the gross liabilities
arising from payments after retirement.
3 4
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
‘actuarial gains and losses’ include adjustments on the
basis of experience (the consequences of differences
between previous actuarial assumptions and what has
actually happened) and the consequences of changes to
actuarial assumptions. In principle, actuarial gains and
losses are not recognised at the moment they arise, but,
to the extent that the cumulative amount falls outside
a certain ‘corridor’, they are spread on a straight-line
basis over the expected average remaining working life
of the employees who are members of the scheme. this
corridor is determined individually for each defined
benefit scheme and has lower and upper limits of 110%
and 90% respectively of the higher of the present value
of the gross liabilities and the fair value of the scheme
investments.
‘prior service costs’ refer to the increase in the present
value of the gross liability for services provided by
employees in previous periods and which result in the
current period from the introduction of or changes to
payments after retirement or other long-term personnel
remuneration. prior service costs are taken gradually to
the income statement and spread on a straight-line basis
over the average term until the benefit rights have been
acquired.
If benefit rights can be regarded as acquired as a result
of a new scheme or changes to an existing scheme, prior
service costs are immediately recorded in the income
statement.
If the liability to be recorded on the balance sheet is
negative, the asset entry that is included may not exceed
the total unrecorded cumulative actuarial net losses
and prior service costs and the present value of future
repayments from the scheme or reductions in future
contributions to the scheme (the ‘asset ceiling’ principle).
In this case, however, the actuarial gains and losses are
immediately taken to the income statement if deferring
them would result in the recording of a gain purely as a
consequence of an actuarial loss in the current financial
year, or of a loss purely and simply as a consequence
of an actuarial gain in the current financial year. prior
service costs are in this case likewise immediately
included if spreading them out on a straight-line basis
would result in the recording of a gain purely as a
consequence of an increase in prior service costs during
the current financial year.
Other long-term personnel remuneration
other long-term personnel remuneration such as long-
service bonuses is accounted for using the ‘projected
unit credit’ method. however, the accounting treatment
differs from that of defined benefit schemes, in that
actuarial gains and losses and prior service costs are
recorded immediately.
Provisions
provisions are established in the balance sheet if the
Group has a legally enforceable or de facto liability on
the balance sheet date as a result of an event in the past,
for which it is likely that an outlay will be required of
resources which contain economic benefits, and if this
outlay can be reliably estimated. the amount recorded
as a provision is the best estimate on the balance sheet
date of the outlay required to satisfy the existing liability,
if necessary discounted if the time value of money is
relevant.
provisions for reorganisation costs are recorded if the
Group has a detailed formal plan for the reorganisation
that has already been communicated to the parties
concerned before the balance sheet date.
Interest-bearing financing
Interest-bearing financing is recorded at the value of the
income received less transaction costs incurred. It is then
valued at amortised cost price using the effective interest
rate method. any difference between the income (after
deduction of transaction costs) and the redemption value
(including premiums payable on redemption) is recorded
in the income statement over the period of the financing.
I I I . noteS to the ConSoLIDateD fInanCIaL StateMentS
II I .1. KeY aCCoUntInG rULeSII I .1. KeY aCCoUntInG rULeS
3 5
Trading accounts payable and other payables
non-interest-bearing trade liabilities are valued at their
cost price, which represents the fair value of the amount
payable.
Derivative financial instruments
the Group uses various derivatives to hedge against
currency risks arising from its operating activities,
financing and investment activities. the net risk of all
Group subsidiaries is managed centrally in line with
the objectives and rules established by the Group
management. It is the Group’s policy to avoid engaging
in speculative transactions or transactions with a
leverage effect and not to engage in trading in financial
instruments under any circumstances.
Derivative financial instruments are treated as follows:
Cash flow hedging
Changes in the fair value of derivative financial
instruments which are ascertained to provide effective
hedging for future cash flows are recorded directly
in equity, while the non-effective element of the gain
or loss on the hedging instrument is recorded in the
income statement. If the cash flow hedging of a fixed
commitment or a highly likely future transaction results
in the recognition of an asset or liability, then the
associated profits and losses on the derivative instrument
which were formerly recorded in equity are now
included in the initial valuation of the asset or liability at
the time of recognition. for hedges which do not result
in the recognition of an asset or liability, amounts which
were deferred in equity are recorded in the income
statement for the period during which the hedged item
affects the gain or loss.
Fair value hedging
a derivative instrument is recorded as a fair value
hedge if the instrument hedges against the risk that
the fair value of the recorded assets and liabilities may
change. Derivatives accounted for as fair value hedges
and hedged assets and liabilities are recorded at their
fair value. the corresponding changes in the fair value
are recorded in the income statement. Changes in the
fair value of derivative financial instruments which do
not qualify as hedging transactions are recorded in the
income statement when they arise. hedge accounting
is discontinued when the hedging instrument expires,
is sold, terminated or exercised or when the hedging
no longer satisfies the criteria for hedge accounting.
In this case the cumulative gain or loss on the hedging
instrument which is accounted for directly in equity
continues to be recorded separately in equity until the
expected future transaction takes place. If an expected
future transaction is not expected to take place any
more, the cumulative gain or loss shown in the equity is
transferred to the income statement for the period.
Income
Income is recorded if it is likely that the company
will receive the economic benefits associated with
the transaction and the amount of the income can
be measured reliably. turnover is recorded after the
deduction of turnover tax and discounts.
Income from the sale of goods is recorded when the
delivery and the complete transfer of risks and benefits
have taken place.
Interest income is recorded on a time basis that reflects
the actual return on the asset. royalties are included on
an accrual basis in accordance with the conditions of the
agreement.
Dividends are recorded when the shareholder’s right to
receive them has arisen.
Miscel laneous
Impairment of tangible and intangible assets
Like goodwill, which is subjected to an impairment test
every year, intangible assets and tangible fixed assets
also undergo such a test when there is an indication
that their book value may be lower than their realisable
value. If an asset does not generate a cash influx which
is independent of other assets, the Group estimates the
realisable value of the cash flow generating unit to which
the asset belongs.
3 6
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
the realisable value is the highest value of the fair value
minus sales costs and the value to the business.
the method of the going concern value uses cash flow
forecasts based on the financial budget that is approved
by the management. Cash flows after this period
are extrapolated by making use of the most justified
percentage growth over the long term for the sector
in which the cash flow-generating unit is active. the
management bases its assumptions (prices, volumes,
return) on past performances and on its expectations
with regard to the development of the market. the
weighted average growth percentages are in conformity
with the forecasts included in the sector reports. the
discount rate used is the estimated weighted average
equity cost of the group before taxes, and takes account
of the current market evaluations of the time value of
money and the risks for which the future cash flows are
adapted.
If the realisable value of an asset (or cash flow generating
unit) is estimated to be lower than its book value, the
asset’s (or cash flow generating unit’s) book value is
reduced to its realisable value. an impairment loss is
immediately recorded in the income statement.
If an impairment loss is subsequently written back, the
asset’s (or cash flow generating unit’s) book value is
increased to the revised estimate of its realisable value,
but only to the extent that the increased book value is
no higher than the book value that would have been
recorded if no impairment loss had been recorded for
the asset (or cash flow generating unit) in previous years.
however, impairment losses on goodwill are never
written back.
Post-balance sheet events
post-balance sheet events which provide additional
information about the company’s situation on the
balance sheet date (‘adjusting events’) are included in
the annual accounts. other post-balance sheet events
are mentioned in the notes only if they may have a
significant impact.
The most important assessment criteria in the
application of the Valuation rules
In the application of the valuation rules, in certain
cases an accounting assessment must be made. this
assessment is done by making the most accurate
assessment possible of uncertain future evolutions. the
management determines its assessment on the basis
of different realistically assessed parameters, such as
future market expectations, sector growth rates, industry
studies, economic realities, budgets and multi-year
plans, expected profitability studies, etc. the most
important elements within the group that are subject to
this are: impairments, provisions and deferred tax items.
I I I . noteS to the ConSoLIDateD fInanCIaL StateMentS
II I .1. KeY aCCoUntInG rULeSII I .1. KeY aCCoUntInG rULeS
3 7
I I I .�. SeGMent InforMatIonII I .�. SeGMent InforMatIon
prIMarY SeGMent InforMatIon
for management purposes, the Group is organised into three major operating divisions – Coating, apparel and Industrial
applications. these divisions are the basis on which the Group reports its primary segment information.
the principal products and services of each of these divisions are described previously.
for more details on these divisions reference is made to the first part of this annual report.
Inter-segment sales are done at prevailing market conditions.
Segments 2006 Coating Apparel Industrial applications
Eliminations Consolidated
Net sales 212 897 75 270 83 687 339 389
external sales 183 468 75 �11 80 710 339 389
Intersegment sales �9 4�9 60 � 976 -3� 465 0
Segment profit from operational activities
18 971 3 229 6 084 28 285
Unallocated profit from operational activities
-� 394
Profit from operational activities 25 891
net financial charges -6 565
Profit before taxation 19 326
taxes -7 17�
Profit after taxation 12 153
Segment assets �75 �17 58 4�4 54 508 -�� 746 365 40�
Unallocated assets 6 430
Total consolidated assets 371 833
Segment liabilities �75 �17 58 4�4 54 508 -�� 746 365 40�
Unallocated liabilities 6 430
Total consolidated liabilities 371 833
Other information Coating Apparel Industrial applications
Head office
Eliminations Consolidated
Depreciation 13 949 1 499 1 691 780 0 17 919
Write downs of inventories
59 1 690 366 0 0 � 116
Write downs of receivables
-1 008 -356 -5�� 0 0 -1 886
additions to/(reversals) of provisions
605 76 1�3 0 0 804
eBItDa 3� 577 6 138 7 74� -1 64� �9 44 843
Impairments 0 0 0 0 0 0
reorganisation costs 1 195 61 1 50 0 1 307
Investments in intangible fixed assets
�8 3� � � 71� 0 � 773
Investments in tangible fixed assets
19 �66 7�1 � 561 548 0 �3 097
3 8
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
Segments 2005 Coating Apparel Industrial applications
Eliminations Consolidated
Net sales 193 431 78 138 70 066 316 237
external sales 170 740 78 1�7 67 370 316 �37
Intersegment sales �� 691 11 � 696 -�5 398 0
Segment profit from operational activities
15 356 3 456 6 743 25 554
Unallocated profit from operational activities
-97
Profit from operational activities 25 457
net financial charges -5 470
Profit before taxation 19 987
taxes 6 399
Profit after taxation 13 588
Group share in profit or loss 13 582
Segment assets ��9 3�4 69 189 55 �06 -�0 604 333 015
Unallocated assets 4 667
Total consolidated assets 337 683
Segment liabilities ��9 3�4 69 189 55 �06 -�0 604 333 015
Unallocated liabilities 4 667
Total consolidated liabilities 337 683
Other information Coating Apparel Industrial applications
Head office
Eliminations Consolidated
Depreciation 13 599 1 753 1 786 740 �� 17 899
Write downs of inventories
135 516 �78 0 0 930
Write downs of receivables
-145 105 -�8 0 0 -67
additions to/(reversals) of provisions
-5�� -30 -�0 0 0 -57�
eBItDa �8 4�3 5 800 8 760 517 147 43 647
reorganisation costs 419 83 0 50 0 505
Investments in intangible fixed assets
4� 43 �0 631 0 736
Investments in tangible fixed assets
11 395 1 081 3 390 765 0 16 63�
I I I .�. SeGMent InforMatIonII I .�. SeGMent InforMatIon
prIMarY SeGMent InforMatIon
3 9
2006 Gross sales Assets Cost of acquisitions
Germany 68 519 �0.0% 1 376 0.4% 4 0.0%
france 6� 657 18.3% 57 �86 15.4% 4 �93 16.6%
Belgium 39 801 11.6% �59 779 69.9% �0 143 77.9%
eastern europe 33 87� 9.9% 10 866 �.9% 819 3.�%
netherlands 31 �0� 9.1% 13 070 3.5% 8 0.0%
Great Britain �3 173 6.8% 1 95� 0.5% 0 0.0%
Italy 14 �3� 4.�% 0 0.0% 0 0.0%
Scandinavia 9 637 �.8% 0 0.0% 0 0.0%
Spain 8 979 �.6% 0 0.0% 0 0.0%
USa 8 654 �.5% 3 386 0.9% 151 0.6%
Ireland 4 �06 1.�% 3 1�7 0.9% 41 0.�%
Switzerland 4 138 1.�% 0 0.0% 0 0.0%
austria 3 759 1.1% 0 0.0% 0 0.0%
other �9 1�0 8.5% �0 99� 5.6% 411 1.6%
Subtotal 341 949 100.0% 371 833 100.0% �5 871 100.0%
Discounts � 560
net Sales 339 389
2005 Gross sales Assets Cost of acquisitions
france 64 331 �0.�% 40 597 1�.0% 5 014 �7.6%
Germany 56 308 17.7% 1 950 0.6% 45 0.�%
Belgium 39 087 1�.3% �30 584 68.3% 11 779 64.7%
Great Britain �7 560 8.7% 6 588 �.0% 58 0.3%
netherlands �6 73� 8.4% 13 4�6 4.0% �4 0.1%
eastern europe �5 707 8.1% 8 990 �.7% 306 1.7%
Italy 13 011 4.1% 0 0.0% 0 0.0%
Scandinavia 10 186 3.�% 0 0.0% 0 0.0%
Spain 8 357 �.6% 0 0.0% 0 0.0%
USa 7 133 �.�% � 78� 0.8% 98 0.5%
Switzerland 4 743 1.5% 0 0.0% 0 0.0%
austria 4 090 1.3% 0 0.0% 0 0.0%
Ireland 3 811 1.�% 3 076 0.9% 38 0.�%
other �7 417 8.6% �9 3�4 9.1% 834 4.6%
Subtotal 318 473 100.0% 337 683 100.0% 18 197 100.0%
Discounts � �36
net Sales 316 �37
4 0
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
I I I .3. eXChanGe rateII I .3. eXChanGe rate
Code RATE 2005 2006
eUr average 1.0000 1.0000
closing 1.0000 1.0000
USD average 1.�400 1.�63�
closing 1.1797 1.3170
GBp average 0.6836 0.6819
closing 0.6853 0.6715
rMB average 10.15�3 10.049�
closing 9.5�0� 10.�796
pLn average 4.0�17 3.9011
closing 3.8600 3.8310
tDn average 1.6114 1.674�
closing 1.611� 1.7106
Uah average 6.3199 6.3686
closing 5.9588 6.6551
4 1
2005 2006
NET SALESSales of goods 317 567 34� 190
Subcontracting � 156 1 641
Commissions and discounts -3 486 -4 44�
Net sales 316 237 339 389
COST OF GOODS SOLDpurchases 159 088 165 3�9
transport cost goods purchased 1 410 1 144
Stock variation -8 180 -3 440
Subcontracting 5 �06 5 669
personnel expenses 4� 199 43 439
Depreciation 14 697 14 589
Services and other goods 36 5�9 38 590
amounts written off inventory and receivables 930 � 116
Cost of goods sold 251 877 (1) 267 436
SALES AND MARKETINGSubcontracting 0 4
personnel expenses 8 �57 9 7�5
Depreciation 117 303
other services and other goods 7 590 7 4�8
amounts written off inventory and receivables -67 -1 886
Sales and marketing 15 896 15 573
RESEARCH AND DEVELOPMENTpersonnel expenses � 876 3 �7�
Depreciation 53� 544
other services and goods � 147 3 �06
Research and development expenses 5 554 (1) 7 021
GENERAL AND ADMINISTRATIVE EXPENSESpersonnel expenses 10 1�7 11 �45
Depreciation � 554 � 483
other services and goods 7 �06 8 737
General overhead expenses 19 887 22 465
OTHER OPERATING INCOME AND EXPENSESGain/loss on realization fixed assets 917 54
provision liabilities & charges 57� -804
Impairment loss 0 0
received indemnities 155 548
Local taxes -670 -910
other 1 966 1 416
Other operating income and expenses 2 940 304
I I I .4. DetaILeD InCoMe StateMentII I .4. DetaILeD InCoMe StateMent
(1) in �005: reallocation of goods produced for r&D purposes to r&D expenses in an amount of keUr 1,337 in �005 to permit
comparison with figures for �006.
4 �
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
2005 2006
NON RECURRING RESULTrestructuring expenses -505 -1 307
Non recurring result -505 -1 307
Operating result
X. OPERATING RESULT 25 457 25 891
FINANCIAL RESULTInterests received �51 56�
Interests paid -6 �80 -7 51�
realized currency result ��8 -174
Unrealized currency result 194 388
other 136 170
Financial result -5 470 -6 565
TAXESCurrent tax -8 64� -6 78�
Deferred tax � �4� -391
Taxes -6 399 -7 172
earnings after taxes 13 58� 1� 153
2005 2006Reconciliation between taxes and result before taxes Profit before taxes 19 987 19 326tax on profit of fiscal entities against theoretical local tax rate 6 0�4 6 53�
theoretical tax rate (1) 30,14% 33,80%
tax impact of change in tax rate (3) 1 147
non-deductible expenses 197 31�
Specific tax regimes -7�0 -810
Deferred tax assets not recognised 1 415 1 597
Valuation allowance on previously recognised deferred tax assets 1 771
Usage of non-recognised deferred tax assets -1 393
regularisation of current tax on previous years -84� 68
Carry back (4) -186
notional interest deduction -645
Deferred taxes on undistributed reserves �60 �5�
Sale Sirec (�) -1 576
other -130 �98
tax on profit as shown in the p&L 6 399 7 17�
(1) is the weighted average tax rate
(�) in �005 Sioen Industries sold Sirec to a reinsurance company. this resulted in the realization of a deferred tax liability.
(3) tax rate in netherlands �5.5% while last year 31.5%
(4) tax paid in �003 in pennel can be claimed back
I I I .4. DetaILeD InCoMe StateMentII I .4. DetaILeD InCoMe StateMent
4 3
DIVIDENDS
Dividend for the period ending 31 December �005 of eUr 0.�4 per share.
proposed dividend for the period ending 31 December �006 of eUr 0.�6 per share.
the proposed dividend is subject to shareholders’ approval at the annual general meeting and
is not shown as a liability in these annual accounts.
ORDINARY PROFIT PER SHARE
the calculation of the ordinary and diluted profit per share is based on the following data:
2005 2006
net profit or loss for the period 13 58� 1� 153
net profit or loss from continuing activities 13 58� 1� 153
Weighted average number of outstanding shares �1 391 070 �1 391 070
ordinary shares �1 391 070 �1 391 070
Weighted average number of shares for ordinary profit per share �1 391 070 �1 391 070
Ordinary profit per share 0.63 0.57
ordinary profit per share from continuing activities 0.63 0.57
DILUTED PROFIT PER SHARE
Diluted elements -
net profit or loss from continuing activities 13 58� 1� 153
profit or loss attributable to ordinary shareholders 13 58� 1� 153
Weighted average number of outstanding ordinary shares �1 391 070 �1 391 070
Weighted average number of shares for diluted profit per share �1 391 070 �1 391 070
Diluted profit per share 0.63 0.57
Diluted profit per share from continuing activities 0.63 0.57
Anti dilutive elements not included in the calculation
Shares option plan as the options are out of the money compared to the average share price in �005 and �006.
4 4
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
2006 ope
ning
bal
ance
purc
hase
s
Dis
posa
ls
Sale
s
tran
sfer
s
exch
ange
rat
e di
ffere
nces
acq
uire
d vi
a bu
sine
ss
com
bina
tion
Dep
reci
atio
n
Impa
irm
ent
Clo
sing
bal
ance
Development expenses : acquisition 8 -8
Concessions, patents, licences etc.: acquisition 1 653 6 4 8 418 10 08�
Software : acquisition 8 399 � 767 15 -16 180 11 345
Customer portfolio : acquisition � 568 0 5 58� 0 8 150
TOTAL 12 628 2 773 0 0 7 -11 14 180 0 0 29 576
Development expenses : depreciation 0 0 0
Concessions patents licences etc.: depreciation 1 51� 4 �4� 1 758
Software : depreciation 7 334 1 -10 173 361 7 859
Customer portfolio : depreciation 1 514 0 0 7�9 0 � �43
TOTAL 10 361 0 0 0 1 -6 173 1 333 0 11 860
Intangible assets 2 267 2 773 6 -5 14 007 -1 333 0 17 716
2005 ope
ning
bal
ance
purc
hase
s
Dis
posa
ls
Sale
s
tran
sfer
s
exch
ange
rat
e di
ffere
nces
acq
uire
d vi
a bu
sine
ss
com
bina
tion
Dep
reci
atio
n
Impa
irm
ent
Clo
sing
bal
ance
Development expenses : acquisition 0 8 8
Concessions, patents, licences etc.: acquisition
1 6�9 17 0 7 0 1 653
Software : acquisition 7 693 711 -�� 18 0 8 399
Customer portfolio : acquisition � 568 � 568
TOTAL 11 889 736 0 0 -22 24 0 0 0 12 628
Development expenses : impairment
Concessions patents licences etc.: impairment
Software : impairment
Customer portfolio : impairment 6 -6 0 0
TOTAL 6 0 0 -6 0 0 0 0 0 0
Development expenses : depreciation 0 0
Concessions patents licences etc.: depreciation
1 465 3 44 1 51�
Software : depreciation 6 90� -18 10 440 0 7 334
Customer portfolio : depreciation 7�0 794 1 514
TOTAL 9 088 0 0 0 -18 13 0 1 278 0 10 361
Intangible assets 2 796 736 6 -4 11 -1 278 0 2 267
I I I .5. DetaILeD BaLanCe SheetII I .5. DetaILeD BaLanCe Sheet
III .5.1 IntanGIBLe fIXeD aSSetS
4 5
total purchases of intangible fixed assets amount to
eUr �.8 million compared with eUr 0.8 million in
�005. this is mainly due to increased purchases of
software relating to the Sap implementation.
purchases of software in �005 consist predominantly
of the initial expenditure on the erp project (Sap).
also in �006 purchases of software consist mainly of
Sap implementation costs. as Sap was not in use,
no depreciation was recorded in �006. once in use,
purchased erp software and associated implementation
costs will be depreciated over seven years on a straight-
line basis.
assets acquired through the acquisition of Siegwerk
Benelux business and of richard Colorants Sa, Copidis
SaS and astra Sa (together «richard» below) are
mentioned under acquisition via business combination.
the client portfolio of the Siegwerk Benelux business
purchased in �006 was valued at eUr 1.4 million and
the product portfolio at eUr 5.9 million. the product
portfolio is being depreciated over 8 years, the client
portfolio over 5 years.
the client portfolio of richard was valued at eUr 4.�
million and the product portfolio at eUr �.5 million. this
product portfolio is being depreciated over 10 years, the
client portfolio over 5 years.
Depreciation of intangible fixed amounts to eUr 1.3
million and is shown in the income statement by
function. Depreciation of the customer portfolio is
included in sales and marketing expenses, depreciation
of the product portfolio is included in the manufacturing
contribution.
no development expenses have been capitalized.
Intangible assets that meet the recognition criteria of IaS
38 - Intangible assets are recognised to the extent that
future economic benefits are probable. to the extent
that the recoverable amount of the intangible assets
(i.e. the higher of its fair value less costs to sell and the
present value of the future cash flows expected from
the continuing use of these assets and their disposal)
is less than the carrying amount, an impairment loss
is recognised in accordance with IaS 36 - Impairment
of assets. the recoverable amount of a CGU (Cash-
Generating Unit) is generally determined on the basis
of value-in-use calculations. for certain assets clearly
identified, the “net selling price” in a binding sales
agreement of an arm’s length transaction can however be
used to determine the recoverable amount of the asset.
the value-in-use method involves cash flow projections
based on financial budget approved by management.
Cash flows are extrapolated using the most appropriate
estimated growth rate which does not exceed the long-
term average growth rate for the business in which the
CGU operates.
Management determines these assumptions (prices,
volumes and performance yields) based on past
performance and its expectations for the market
development. the weighted average growth rates used
are consistent with the forecasts included in the industry
reports. the discount rate used is based on the Group’s
estimated pre-tax weighted average cost of capital and
reflects current market assessments of the time value of
money and risks for which future cash
flows have not been adjusted and are similar to those
disclosed under caption “Goodwill”.
no impairments were recorded in �006.
4 6
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
2006 ope
ning
bal
ance
Incr
ease
Dec
reas
e
Cha
rge
to e
quity
exch
ange
rat
e di
ffere
nces
acq
uire
d vi
a bu
sine
ss c
ombi
natio
n
Clo
sing
bal
ance
Goodwill 16 548 -� 1 388 17 935
2005
Goodwill 16 548 -� 0 16 548
I I I .5.� GooDWILL
In �006 the group purchased various assets of Siegwerk
Benelux. these were included in the consolidated
financial statements using the purchase accounting
method. the resultant goodwill of eUr 0.6 million is not
depreciated, in line with IfrS 3.
In �006 richard Colorants Sa, Copidis SaS and astra
Sa were purchased. the figures were included in the
Group’s financial statements from 1 october �006. the
purchased assets were included in the consolidated
annual accounts using the purchase accounting method.
the resultant goodwill of eUr 0.7 million is not
depreciated, in line with IfrS 3.
the book value of goodwill acquired in a business
combination must be allocated on a reasonable and
consistent basis to each cash flow-generating unit or
the smallest group of cash flow-generating units, in
conformity with IaS 36.
the realisable value of a cash flow-generating unit is
determined on the basis of the going concern value.
for calculating the going concern value, cash flow
forecasts are used that are based on financial budgets
and projections. these projections contain extrapolations
making use of the most justified growth percentage that
cannot be higher than the average growth percentage
over the long term for the sector in which the cash flow-
generating unit is active, that is, between �% and 3%.
Management bases its assumptions on past performances
and on its expectations over the coming years. the
discount rate used is calculated per segment and varies
between 6% and 10%.
Allocation to segments :
Coating 15 560
apparel � 360
Industrial application 15
4 7
I I I .5.3 SUBSIDIarIeS
% holding
2006 2005
Sioen n.v. Belgium ardooie 99.47% 99.47% apparel
Veranneman technical textiles n.v. Belgium ardooie 98.7�% 98.7�% coating
european Master Batch n.v. Belgium Bornem 100.00% 100.00% coating
Coatex n.v. Belgium poperinge 100.00% 100.00% industrial applications
Sioen france s.a.s. france narbonne 99.83% 99.83% apparel
Confection tunisienne de Sécurité s.a. tunesia tunis 89.�5% 89.�5% apparel
Donegal protective Clothing Ltd. Ireland Derrybeg 100.00% 100.00% apparel
Sioen Coating Distribution n.v. Belgium ardooie 100.00% 100.00% coating
Siofab s.a. portugal Santo tirso 100.00% 100.00% coating
p.t. Sungintex Indonesia Jakarta 100.00% 100.00% apparel
Saint frères s.a.s. france flixecourt 99.97% 99.97% coating
Sioen fabrics s.a. Belgium Moeskroen 100.00% 100.00% coating
Saint frères Confection s.a.s. france flixecourt 100.00% 100.00% industrial applications
p.t. Sioen Indonesia Indonesia Jakarta 100.00% 100.00% apparel
Sioen tunisie s.a. tunesia tunis 99.83% 99.83% apparel
Sioen fibres s.a. Belgium Moeskroen 100.00% 100.00% coating/apparel
tIS n.v. Belgium haaltert-Kerksken 100.00% 100.00% coating
Sioen UK Ltd. United Kingdom Chorley 100.00% 100.00% apparel
Mullion Manufacturing Ltd. United Kingdom Scunthorpe 100.00% 100.00% apparel
Sioen Shanghai China Shanghai 100.00% 100.00% coating
Sioen Zaghouan s.a. tunesia Zaghouan 99.50% 99.50% apparel
Sioen nordifa s.a. Belgium Luik 100.00% 100.00% industrial applications
Inducolor s.a. Belgium Meslin-L’evêque 100.00% 100.00% coating
Sioen Coating n.v. Belgium ardooie 99.47% 99.47% coating
pennel automotive s.a.s. france roubaix 100.00% 100.00% coating
roland International b.v. the netherlands tegelen 100.00% 100.00% industrial applications
roland planen Gmbh Germany Werlte 100.00% 100.00% industrial applications
roltrans Group america Inc. USa arlington 100.00% 100.00% industrial applications
roltrans Group polska Spzoo poland Konin 100.00% 100.00% industrial applications
roland tilts UK Ltd. United Kingdom Bradford 100.00% 100.00% industrial applications
Monal s.a. Luxemburg Luxemburg 100.00% 100.00% industrial applications
roltrans Group b.v. nederland tegelen 100.00% 100.00% industrial applications
roland-Ukraine Llc Ukraine rivne 100.00% 60.00% industrial applications
Sioen USa Inc. USa aberdeen 100.00% 100.00% apparel
richard s.a.s. france Lomme 100.00% 0.00% coating
Colorants pigments Distribution s.a.s. france Lomme 100.00% 0.00% coating
astra Colorants s.a. france Lomme 100.00% 0.00% coating
Sioen Industries n.v. Belgium ardooie 100.00% 100.00% group
Changes with respect to 2005:
the client portfolio of Sioen UK Ltd is acquired on 30 juni �006 by Sioen n.v.
roland International b.v. acquired in december �006 100% of the share in roland-Ukraine Llc
the group richard (richard s.a.s., Copidis s.a.s. en astra Colorants s.a.) has been acquired in october �006
4 8
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
2006 ope
ning
bal
ance
purc
hase
s
Dis
posa
ls
Sale
s
tran
sfer
s
exch
ange
rat
e di
ffere
nces
acq
uire
d vi
a bu
sine
ss
com
bina
tion
Dep
reci
atio
n
Clo
sing
bal
ance
Land : acquisition 16 718 675 -1 -7 -61 308 0 17 633
Buildings : acquisition 50 31� � 539 -1�1 -179 -544 996 0 53 003
Infrastructure buildings : acquisition 16 580 3 166 -46 -15 � � �53 0 �1 940
plant, machinery and equipment : acquisition 151 46� 8 783 -3�4 -754 �3 -577 4 107 0 16� 7�1
furniture : acquisition 3 649 14� -18 -3 -116 568 0 4 ���
Vehicles : acquisition 3 407 693 -33 -441 -40 -30 �� 0 3 578
hardware : acquisition 5 335 4�6 -�6 -� -1�1 0 0 5 61�
Leasing land and buildings : acquisition �0 �45 -874 7 0 0 19 378
Leasing furniture and equipment: acquisition �77 156 -40 -347 -3 0 0 43
assets under construction : acquisition 10� 6 517 1 416 1 0 0 8 036
TOTAL 268 087 23 097 -568 -1 256 -7 -1 440 8 255 0 296 168
Buildings : depreciation �0 363 -64 5�5 -169 88� 1 849 �3 385
Infrastructure buildings : depreciation 10 057 -33 -15 � 1 9�7 1 ��� 13 160
plant, machinery and equipment : depreciation 80 686 -110 -759 -1 -504 � 364 11 �80 9� 955
furniture : depreciation 3 304 -11 -7 0 -99 494 184 3 865
Vehicles : depreciation � 733 -33 -350 -30 -17 1 345 � 650
hardware : depreciation 3 9�8 -3 -�1 -85 0 580 4 400
Leasing land and buildings : depreciation 4 674 -411 � 0 1 064 5 330
Leasing furniture and equipment : depreciation 64 -37 -85 -1 0 61 3
assets under construction : depreciation 0 0 0 0
TOTAL 125 808 0 -253 -1 189 -1 -871 5 668 16 586 145 748
a) Land 16 718 675 -1 -7 -61 308 0 17 633
b) Buildings 36 47� 5 705 -70 0 -704 -374 440 -3 071 38 399
�) plant, Machinery and equipment 70 776 8 783 -�13 5 �4 -73 1 743 -11 �80 69 765
3) furniture and Vehicules � 4�6 1 �61 -31 -68 -10 -66 96 -1 110 � 498
4) fixed assets held under leasing and other simil 15 784 156 -� -7�6 3 0 -1 1�5 14 089
5) assets under construction and advance payments 10� 6 517 1 416 1 0 0 8 036
property, plant and equipment 14� �78 �3 097 -315 -67 -6 -569 � 587 -16 586 150 4�0
I I I .5.4 tanGIBLe fIXeD aSSetS
4 9
2005 ope
ning
bal
ance
purc
hase
s
Dis
posa
ls
Sale
s
tran
sfer
s
exch
ange
rat
e di
ffere
nces
acq
uire
d vi
a bu
sine
ss
com
bina
tion
Dep
reci
atio
n
Clo
sing
bal
ance
Land : acquisition 16 814 -138 -1�6 168 0 0 16 718
Buildings : acquisition 46 414 3 559 -401 -�06 946 0 0 50 31�
Infrastructure buildings : acquisition 16 168 6�� -1 -�35 �4 0 0 16 580
plant, machinery and equipment : acquisition 139 746 10 770 -97� 1 005 914 0 0 151 46�
furniture : acquisition 3 437 9� -8 -7 6 1�8 0 0 3 649
Vehicles : acquisition 3 7�7 �79 -660 -35 95 0 0 3 407
hardware : acquisition 5 043 41� -�5� -�5 158 0 0 5 335
Leasing land and buildings : acquisition 19 �7� 516 466 -9 0 0 �0 �45
Leasing furniture and equipment: acquisition �04 58 -9 �3 0 0 �77
assets under construction : acquisition 151 3�4 -378 5 0 0 10�
TOTAL 250 976 16 632 -8 -2 431 463 2 453 0 0268 087
Buildings : depreciation 18 4�6 -�06 -4 �84 1 86� �0 363
Infrastructure buildings : depreciation 8 776 -1 -3 1� 1 �7� 10 057
plant, machinery and equipment : depreciation 69 388 -885 5� 745 11 387 80 686
furniture : depreciation � 955 -8 -7 0 101 �63 3 304
Vehicles : depreciation � 891 -566 -17 68 357 � 733
hardware : depreciation 3 4�� -�3� -�7 100 665 3 9�8
Leasing land and buildings : depreciation 3 655 �4 -3 999 4 674
Leasing furniture and equipment : depreciation �� -1 4 39 64
assets under construction : depreciation 0 0 0
TOTAL 109 535 0 -8 -1 897 25 1 310 16 843125 808
a) Land 16 814 -138 -1�6 168 0 16 718
b) Buildings 35 380 4 18� -195 -435 675 -3 134 36 47�
�) plant, Machinery and equipment 70 358 10 770 -87 953 169 -11 387 70 776
3) furniture and Vehicules � 940 783 0 -114 -10 11� -1 �85 � 4�6
4) fixed assets held under leasing and other simil 15 798 574 434 14 -1 037 15 784
5) assets under construction and advance payments 151 3�4 -378 5 0 10�
property, plant and equipment 141 44� 16 63� 0 -534 439 1 143 -16 843 14� �78
2006 ope
ning
bal
ance
purc
hase
s
Dis
posa
ls
Sale
s
tran
sfer
s
exch
ange
rat
e di
ffere
nces
acq
uire
d vi
a bu
sine
ss
com
bina
tion
Dep
reci
atio
n
Clo
sing
bal
ance
Land : acquisition 16 718 675 -1 -7 -61 308 0 17 633
Buildings : acquisition 50 31� � 539 -1�1 -179 -544 996 0 53 003
Infrastructure buildings : acquisition 16 580 3 166 -46 -15 � � �53 0 �1 940
plant, machinery and equipment : acquisition 151 46� 8 783 -3�4 -754 �3 -577 4 107 0 16� 7�1
furniture : acquisition 3 649 14� -18 -3 -116 568 0 4 ���
Vehicles : acquisition 3 407 693 -33 -441 -40 -30 �� 0 3 578
hardware : acquisition 5 335 4�6 -�6 -� -1�1 0 0 5 61�
Leasing land and buildings : acquisition �0 �45 -874 7 0 0 19 378
Leasing furniture and equipment: acquisition �77 156 -40 -347 -3 0 0 43
assets under construction : acquisition 10� 6 517 1 416 1 0 0 8 036
TOTAL 268 087 23 097 -568 -1 256 -7 -1 440 8 255 0 296 168
Buildings : depreciation �0 363 -64 5�5 -169 88� 1 849 �3 385
Infrastructure buildings : depreciation 10 057 -33 -15 � 1 9�7 1 ��� 13 160
plant, machinery and equipment : depreciation 80 686 -110 -759 -1 -504 � 364 11 �80 9� 955
furniture : depreciation 3 304 -11 -7 0 -99 494 184 3 865
Vehicles : depreciation � 733 -33 -350 -30 -17 1 345 � 650
hardware : depreciation 3 9�8 -3 -�1 -85 0 580 4 400
Leasing land and buildings : depreciation 4 674 -411 � 0 1 064 5 330
Leasing furniture and equipment : depreciation 64 -37 -85 -1 0 61 3
assets under construction : depreciation 0 0 0 0
TOTAL 125 808 0 -253 -1 189 -1 -871 5 668 16 586 145 748
a) Land 16 718 675 -1 -7 -61 308 0 17 633
b) Buildings 36 47� 5 705 -70 0 -704 -374 440 -3 071 38 399
�) plant, Machinery and equipment 70 776 8 783 -�13 5 �4 -73 1 743 -11 �80 69 765
3) furniture and Vehicules � 4�6 1 �61 -31 -68 -10 -66 96 -1 110 � 498
4) fixed assets held under leasing and other simil 15 784 156 -� -7�6 3 0 -1 1�5 14 089
5) assets under construction and advance payments 10� 6 517 1 416 1 0 0 8 036
property, plant and equipment 14� �78 �3 097 -315 -67 -6 -569 � 587 -16 586 150 4�0
5 0
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
II I .5.4 tanGIBLe fIXeD aSSetS
Tangible fixed assets
During �006, a total of eUr �4.3 million of tangible
fixed assets were acquired (before deduction of
investment grants).
the main investments in �006 were:
• eUr 0.7 million in land at Moeskroen for calendering
project
• eUr 1.4 million in a building at Moeskroen for
calendaring project
• eUr 1.3 million in a building for richard Colorants at
Lomme
• eUr �.6 million in a new warehouse at eMB at
Bornem
• eUr 1.0 million in a new showroom at ardooie
• eUr 0.4 million in air conditioning at fibres
production plant
• eUr 1.9 million in a needle felt production line at
nordifa
• eUr 1.0 million in machinery at eMB
• eUr 0.5 million looms at Veranneman
• eUr 4.7 million calendering machinery
the fixed assets under construction consist of the
calendering factory expected to be in use by �008.
In total eUr 1.6 million of investment grants have been
received for the investments in nordifa.
In total, eUr 1.4 million of investment grants were
recognised in deduction of depreciation during period
�006.
During �005, the total acquisition of tangible fixed assets
amounted to eUr 16.6 million (including investment
grants).
the main investments in �005 were:
• eUr 3.6 million in a new coating line at Saint frères
enduction in france
• eUr 1.8 million in the further expansion of the
production hall at Saint frères enduction
• eUr �.1 million in a needle felt production line at
nordifa
• eUr 3 million on looms at Veranneman and tIS
• eUr � million on a new warehouse at eMB in Bornem
In �005 an investment grant of eUr 0.8 million was
received from the Walloon region. this has been
deducted from the acquisitions. the fixed assets under
leasing relate to the buildings at ardooie and the Saint
frères enduction building.
the building in tegelen (net book value of eUr 4
million) is not used in production and therefore is not
depreciated.
the different categories of tangible fixed assets are
depreciated by the straight-line method over their
estimated economic life. Depreciation starts once the
assets are ready for their intended use.
the estimated economic life of the main tangible fixed
assets lies within the following ranges:
Buildings: �0 years
Machines: 5 to 15 years
equipment: 10 years
furniture: 5 years
hardware: 5 years
Vehicles: 5 years
there are no mortgages secured on the tangible fixed
assets. tangible fixed assets are subject to the application
of IaS 36, Impairments, when there is an indication
that their book value may be lower than their realisable
value. If an asset does not generate a cash influx which
is independent of other assets, the Group estimates the
realisable value of the cash flow generating unit to which
the asset belongs. no impairments were recorded.
at 31 December �006, the Group had entered into
contractual commitments for the acquisition of property,
plant & equipment amounting to eUr 6.4 million.
5 1
I I I .5.5 LonG-terM traDe reCeIVaBLeS
Long term trade receivables
the term of these trade receivables is between two and three years. these long-term receivables have been valued at
their net current value.
2006opening balance
Increase Decrease fair value adjustment
Closing balance
trade debtors Lt 59 43 -59 -�� ��
trade debtors Lt : revaluation
trade debtors Lt : impairment
Long term trade receivables 59 43 -59 -22 22
2005opening balance
Increase Decrease fair value adjustment
Closing balance
trade debtors Lt 59 59
trade debtors Lt : revaluation
trade debtors Lt : impairment
Long term trade receivables 59 59
Other long term assets
as in previous years these other long term assets mainly consist of Vat deposits.
2006opening balance
Increase Decrease fair value adjustment
Closing balance
affiliated enterprises : amounts receivable
other shares : acquisition
Guarantees and deposits : acquisition 5�4.00 41.00 -63.00 504.00
other amounts receivable long term :
acquisition
Other long term assets 524.00 41.00 -63.00 504.00
2005opening balance
Increase Decrease fair value adjustment
Closing balance
affiliated enterprises : amounts receivable
other shares : acquisition
Guarantees and deposits : acquisition 684.00 -160.00 5�4.00
other amounts receivable long term :
acquisition
0.04
Other long term assets 684.00 -160.00 524.00
5 �
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
Gross inventory
2006 Closing balance
raw materials 3� 566
Consumables 848
Work in progress 5 101
finished goods 49 877
Goods in transit 3 845Contracts in progress
92 237
Amounts written off
2006 Closing balance
amounts written off raw materials -� 888
amounts written off consumables
amounts written off work in progress
amounts written off finished goods -4 876
amounts written off goods in transit
amounts written off : contracts in progress
-7 765
Net inventory
2006 Closing balance
1) raw materials �9 677
�) Consumables 848
3) Work in progress 5 101
4) finished goods 48 846
5) Contracts in progress
84 472
I I I .5.6 InVentorIeS
5 3
Gross inventories (excluding write-offs) rose eUr 8.4
million compared with �005. Increased activity in the
Coating segment caused an increase of eUr 7.8 million,
partially due to the acquisition of the richard Colorants
Group (eUr 4 million). Inventory in Industrial
applications increased by eUr � million. In apparel it
fell by eUr 1.4 million, reflecting decreased activity.
obsolescence reserves on inventories amount to
eUr 7.8 million (�005: eUr 5.4 million).
Write-downs of inventory for obsolescence to net
realisable value included in expenses amounts to
eUr �.1 million in �006 (�005: eUr 0.9 million).
these obsolescence reserves are recorded on the basis of
a detailed ageing and rotation analysis per unit.
Gross inventory
2005 Closing balance
raw materials 3� �41
Consumables �98
Work in progress 7 �77
finished goods 40 065
Goods in transit 3 960
Contracts in progress
83 840
Amounts written off
2005 Closing balance
amounts written off raw materials -� 137
amounts written off consumables
amounts written off work in progress
amounts written off finished goods -3 �40
amounts written off goods in transit
amounts written off : contracts in progress
-5 377
Net inventory
2005 Closing balance
1) raw materials 30 105
�) Consumables �98
3) Work in progress 7 �77
4) finished goods 40 784
5) Contracts in progress
78 463
5 4
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
II I .5.7 traDe reCeIVaBLeS
2006trade receivables 69 599
trade receivabes doubtful 4 8�0
amounts written off -4 005
Total trade receivables 70 414
Outstanding Balance turnover
Customer 1 4 594 6.17% 11 565 3.41%
Customer � � 16� �.91% 5 940 1.75%
Customer 3 1 666 �.�4% 4 609 1.36%
Customer 4 1 631 �.19% 4 055 1.19%
Customer 5 1 413 1.90% � 717 0.80%
other 6� 953 84.59% 310 503 91.49%
total 74 419 100.00% 339 389 100.00%
2005trade receivables 69 953
trade receivabes doubtful 5 �45
amounts written off -5 78�
Total trade receivables 69 416
Outstanding Balance turnover
Customer 1 4 441 5.91% 10 976 4%
Customer � � 896 3.85% 7 331 �%
Customer 3 1 708 �.�7% 7 084 �%
Customer 4 1 635 �.17% 4 567 1%
Customer 5 1 371 1.8�% 4 378 1%
other 63 146 83.97% �81 900 89%
total 75 198 100% 316 �36 100%
trade receivables include amounts to be received
from the sale of goods of eUr 74.4 million. Compared
with last year, trade receivables decreased slightly
despite the increase of eUr 4.5 million due to business
combinations. Last year trade receivables rose through
major orders in the apparel Division, while this year in
the same division sales fell by more than eUr 3 million.
eUr 4 million in total has been provided for estimated
uncollectible amounts. a provision is recorded for
overdue trade receivables between 30 days and 150
days and more, based on estimated irrecoverable
amounts determined by reference to past default
experience.
as of 1/4/�005 the Group decided to cover itself for the
credit risk by concluding stop loss credit insurance.
the average credit period on sales of goods is 70 days.
Generally no interest is charged on overdue trade
receivables except when legal proceedings are started.
Before accepting any new customer, the Group uses an
external credit scoring system to assess the potential
customer’s credit quality and defines credit limits by
customer. Limits and scoring attributed to customers are
reviewed continuously.
5 5
I I I .5.8 other CUrrent aSSetS
Other current assets 2005 2006
advances 34 �6
Vat receivable 8 194 6 348
tax prepayment 1 641 � 493
Capital grants receivable 109 -
Insurance premiums receivable 99 36�
other 1 040 195
Other receivables 11 117 9 42
other current assets consist primarily of eUr 6.3 million of reclaimable Vat, pre-paid taxes of eUr �.5 million and
eUr 0.4 million of insurance premiums receivable.
the entry “other” related in �005 mainly to amounts receivable relating to the sales of the buildings in antwerp and in
foix.
Investments 2005 2006
other investments and deposits �60 53�
Investments 260 532
Investments relate to deposits on 3 months (but shorter than 1 year). the book value of the investment reflects the
estimated market value.
Cash and cash equivalents 2005 2006
Cash at bank 7 438 1� �10
at hand 874 374
Cash and cash equivalents 8 312 12 584
Deferred charges and accrued income 2005 2006
Deferred charges 1 343 1 476
other 85 136
Deferred charges and accrued income 1 428 1 612
Deferred charges amounting to eUr 1.5 million consist primarily of pre-paid rent, insurance policies and interest
charges.
5 6
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
II I .5.9 penSIon LIaBILItIeS
the following net liabilities are recognized for post-employment and other long term benefits :
2005 2006post-employment benefits (pension plans) 1 3�1 1 578
other long term benefits (jubilee benefits) 0 136
Total 1 321 1 714
the amounts recognised in the balance sheet are as follows:
present value of funded obligations 4�0
fair value of plan assets -381
present value of unfunded obligations 1 4�� 1 849
(Surplus)/deficit 1 4�� 1 888
Unrecognised actuarial gains/(losses) -101 -303
Unrecognised past service cost 0 -7
Net liability recognized in balance sheet 1 321 1 578 of which liabilities 1 3�1 1 578
the amounts recognised in profit or loss are as follows :
Service cost 119 139
Interest cost 60 8�
past service cost recognized -41 -4
actuarial losses (gains) recognized -30 -��
Curtailment (gain)/loss -3 -104
Benefit expense 105 91
Changes in the present value of the defined benefit obligation are as follows:
Opening defined benefit obligation 1 261 1 422Service cost 119 139
Interest cost 60 8�
past service cost 0 -4
Benefits paid -75 -11�
Curtailment 0 -104
actuarial losses (gains) �7 75
Liabilities assumed in a business combination 0 773
Currency translation changes 30 -�
Closing defined benefit obligation 1 4�� � �69
Changes in the fair value of plan assets are as follows:
Contributions 75 11�
Benefits paid -75 -11�
assets acquired in a business combination 0 381
Closing fair value of plan assets 0 381
5 7
Cost relative to IaS 19 provisions are booked under
personnel expenses and allocated according the function
of the personnel involved (cost of goods sold, sales and
marketing expenses, r&D expenses and administrative
expenses). Interest component is recognised in financial
result.
PROVISIONS FOR PERSONNEL REMUNERATION
In accordance with law and practice in each country,
associated entities have either defined benefit schemes or
defined contribution schemes.
Defined contribution schemes
Contributions to defined contribution schemes are
recorded as an expense when they are due.
Defined benefit schemes
In defined benefit schemes, the amount on the balance
sheet (the ‘net liability’) corresponds to the present value
of the gross liability, adjusted for unrecorded actuarial
gains and losses, after deduction of the fair value of the
scheme investments and unrecorded prior service costs.
the discounted value of the liability associated with
defined pension rights and the assigned pension costs
associated with the year of service and prior service
pension costs are calculated by accredited actuaries
using the projected unit credit method.
Defined benefit schemes mainly relate to pension
liabilities in france, where such schemes are required
by law.
the plan assets represent investments in bonds;
the expected �007 contributions amount to keUr 4�.
principal actuarial assumptions at the balance sheet date :
2005 2006Eurozone Indonesia
discount rate 4.0% 4.60% 10,50%
future salary increase �.0% / 3.0% �.50% 8%
normal retirement age 60 60 55
the funded status and experience adjustments are as follows :
2005 2006Defined Benefit obligation 1 4�� � �69
plan assets 0 -381
(Surplus)/deficit 1 4�� 1 888
5 8
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
II I .5.10 proVISIonS
2006 ope
ning
bal
ance
Incr
ease
Util
isat
ion
rev
ersa
l
exch
ange
rat
e di
ffere
nces
acq
uire
d vi
a
busi
ness
com
bina
tion
fair
val
ue
Clo
sing
bal
ance
Mor
e th
en o
ne y
ear
With
ing
one
year
provisions for taxation - -
provisions for environmental issues 1 0�3 500 5� 1 575 1 575 -
provisions for other liabilities and charges
379 � �13 -770 -43 448 � ��7 934 1 �93
VII. Provisions 1 402 2 713 -770 -43 448 52 3 802 2 509 1 293
2005
provisions for taxation - -
provisions for environmental issues 1 �4� -�19 1 0�3 1 0�3 -
provisions for other liabilities and charges
1 �45 538 -647 -851 94 379 379
VII. Provisions 2 487 538 -647 -1 070 0 0 94 1 402 1 023 379
the provisions for environmental issues consist mainly
of a provision relating to the cleaning of polluted
soils in temse belonging to tIS nV and the land in
ardooie belonging to Sioen Coating nV. the risk in
temse originates in the period before the takeover. the
risk in ardooie was identified during the periodical
environmental check-up of the site. these provisions are
set up for more than one year and are discounted using
the weighted average capital cost of the Group.
provisions for other liabilities and charges consist of the
social cost of restructurings currently being carried out
by Coating at pennel and by apparel in france during
�006, consisting of the termination cost of an agency
agreement by SCD nV.
5 9
I I I .5.11 IntereStBearInG LoanS
2006 Value at the end of year
Within one year � years 3 years 4 years 5 years
after 5 years
Bond 98 970 98 970
Bank loans 18 06� 17 363 10 048 5 013 1 689 1 �00 111
finance leases 11 4�8 1 ��8 1 551 1 199 1 �53 1 �94 6 130
other loans 3 3
Total interest bearing loans long term 128 463 18 591 11 600 6 212 2 943 2 495 105 214
Current portion of amounts payable after one year 17 36�
Credit institutions short term 13 800
Bank loans 31 16�
Current portion of leasing 1 ��8
Leasing short term 4�
finance leases 1 �70
Total interest bearing loans short term 32 433
2005 Value at the end of year
Within one year � years 3 years 4 years 5 years
after 5 years
Bank loans 53 519 �0 984 36 477 9 791 4 750 1 4�9 1 071
finance leases 13 049 1 14� 1 344 1 377 1 494 1 105 7 7�9
other loans 344 344
Total interest bearing loans long term 66 912 22 126 37 821 11 168 6 244 2 534 9 144
Current portion of amounts payable after one year �0 984
Credit institutions short term 46 306
Bank loans 67 �90
Current portion of leasing 1 065
Leasing short term 77
finance leases 1 14�
Total interest bearing loans short term 68 432
Financial accounts payable
this note provides information about the group’s interest-
bearing loans.
Long-term accounts payable, including financial
long-term leasing debts.
the weighted average interest rate of long-term debts
in �006 is 4.77%, compared to 4.55% in �005. this
increase is mainly due to the longer term character of the
loans in �006 compared with �005.
all loans have a fixed interest rate, apart from one eUr
�0 million variable- rate roll-over loan. this ‘bullet’ loan,
taken up on �0/1�/�005 with expiry date 30/06/�007,
was repaid early on 14 March �006 without additional
cost.
on 14 March �006, a eUr 100 million bond listed on
eurolist by euronext Brussels was successfully issued,
with a ten-year term and fixed coupon interest of 4.75%.
to cover the interest rate on this bond issue, an IrS
6 0
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
(Interest rate Swap) was concluded on �0/1�/�005. this
IrS is described in the note on ‘financial instruments’,
and designated as ‘cash flow hedging’. effective
combined interest rate on the eUr 100 million bond is
4.7�%.
Short-term accounts payable
In �005, short-term straight loans amount to
eUr 44.6 million. they consist of eUr 36.4 million
of euro loans with a weighted average interest rate of
3.�4% and a dollar loan of USD 9.7 m. at 31/1�/�006,
the short-term straight loans were reduced to eUr 13.8
million.
there was also a tax prepayment financing which
expired on 10/4/�006.
no securities were issued for these financial debts. Most
(approx. 90%) of the Group’s financial liabilities are
centrally contracted and managed.
6 1
I I I .5.1� fInanCIaL LeaSInG DeBtS
Obligations under financial leases
2006
Value at the end of year
Within one year � years 3 years 4 years 5 years
after 5 years
Leasing and other similar obligations Lt 11 4�8 1 551 1 199 1 �53 1 �94 6 130
Current portion of leasing 1 ��8 1 ��8
Leasing short term 4� 4�
Obligations under financial leases 12 698 1 270 1 551 1 199 1 253 1 294 6 130
Minimum lease payments
Present value of lease payments
Lease payments due within one year 0 1 �70
one - two years � 1�5 1 485
two - three years 1 984 1 406
three - five years 1 740 1 ��8
after 5 years 3 480 7 309
total lease payments 6 683 1� 698
future financial charges 16 067 1� 753
present value of lease obligations 3 314 0
Less amount due for settlement within 1� months 1 �70
amount due for settlement after 1� months 11 4�8
2005
Value at the end of year
Within one year � years 3 years 4 years 5 years
after 5 years
Leasing and other similar obligations Lt 13 049 1 344 1 377 1 494 1 105 7 7�9
Current portion of leasing 1 065 1 065
Leasing short term 77 77
Obligations under financial leases 14 191
Minimum lease payments
Present value of lease payments
Lease payments due within one year 1 657 1 14�
one - two years � 188 1 543
two - three years � ��8 1 643
three - five years 3 480 � 5�6
after 5 years 8 4�3 7 336
total lease payments 17 975 14 191
future financial charges 3 784
present value of lease obligations 14 191 14 191
Less amount due for settlement within 1� months 1 14�
amount due for settement after 1� months 13 049
Leasing debts relate mainly to buildings (ardooie, flixecourt and Moeskroen). the interest inherent in the leases is fixed
for the entire lease term. the average effective interest rate contracted is approximately 5.44% p.a. (�005 5.44% p.a.).
6 �
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
II I .5.13 other aCCoUntS paYaBLe
TRADE ACCOUNTS PAYABLE AND OTHER DEBTS
2006Closing balance
trade payables 33 104
Credit notes to receive -� 010
advances 650
TOTAL 31 744
2005
trade payables 37 4�5
Credit notes to receive -1 �13
advances �99
TOTAL 36 510
trade and other payables include outstanding amounts for trade purchases and current charges. there is a decrease as
compared to �005.
OTHER DEBTS UP TO ONE YEAR
2005 2006
Current tax liabilities 5 589 7 364
Social debts 10 �88 10 940
other 6� 7�
accrued charges and deferred income 963 1 145
Total other debts up to one year 16 902 19 521
the tax liabilities consist primarily of corporate taxes and Vat payable.
6 3
I I I .5.14 fInanCIaL InStrUMentS
Financial Derivatives 2005 2006
Notional Value Fair Value Notional Value Fair Value
forward sales contracts
forward sales contracts within 1 year
rights � 933 41 7 375 6�
Duties 4 399 -8 11 063 -85
IrS forward 100 000 636 100 000 1 346
the Group manages a portfolio of derivatives to hedge
against risks relating to exchange rate and interest rate
positions arising as a result of operating and financial
activities. It is the Group’s policy to avoid engaging in
speculative transactions or transactions with a leverage
effect and not to hold derivatives for trading purposes.
Interest risk
the Group’s interest risk is relatively limited, as the
interest rate on virtually all loans is fixed. It is the group’s
strategy to arrange a fixed interest rate for the long-term
portion of debts, and to keep short-term debts floating.
thanks to an optimal portfolio of long-term and short-
term debt financing, potential negative interest-rate
fluctuations are minimised.
In connection with the group’s refinancing, it was
decided in December �005 to enlist the support of the
capital market via the issue of a eUr 100 million bond
over ten years with fixed coupon interest. Because such
an operation can easily take three months, and interest
rates at the end of December �005 were very attractive,
Sioen concluded a ten-year IrS starting in april �006,
the presumed starting date of the bond. as this IrS can
be regarded as effective cash flow hedging as per IaS39,
the KeUr 636 negative market value fluctuation on
31/1�/�005 of this IrS has been
deducted from equity.
on 0�/0�/�006, the fair value was up keUr 1,346, and it
was realised following the hedge strategy at the moment
of issuing of the bond. this received premium satisfies
the conditions for cash flow hedging defined in IaS39,
and will be spread out over the term of the bond.
the gain realised (keUr 1.346) was recognised in equity
and is taken into income over the life of the bond (10
years).
Exchange rate risk
It is the Group’s policy to hedge centrally against
exchange risks arising from financial and operating
activities.
the risks are limited by compensating for transactions
in the same currency, or by fixing exchange rates via
forward contracts or options.
the fluctuation in the market value of these exchange
rate contracts has been included in the income statement
and amounted to a KeUr 3� positive balance in �005
and a negative balance in �006 of KeUr �3.
Credit risk
In view of the relative concentration of credit risk (see
note “trade receivables), the company covers credit
risk on trade receivables via a stop loss insurance with
an own risk exposure of keUr 500. In addition, credit
control strategies and procedures have been devised in
order to monitor individual customers’ credit risk.
6 4
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
II I .5.15 DeferreD taX
2005 2006 2005 2006deferred tax
assetdeferred tax
liability
Intangible fixed assets 47 399 1 697
tangible fixed assets � 404 � 868 16 917 16 178
Inventories 1 765 1 656
receivables 31� �53
other assets
pension liabilities 411 51�
other provisions 3�9 339
other liabilities 44 59
Conversion differences 74 1 �70 1 937
hedging reserves �16 458
Undistributed reserves 1 904 � 15�
tax losses carried forward 15 779 10 95�
Total 21 307 17 112 20 091 22 422
non recognition of deferred tax receivable -11 0�7 -6 851
netting -3 �70 -4 06� -3 �70 -4 06�
Total 7 010 6 199 16 821 18 360
the value of carried-forward tax losses arranged by expiry date
one year
two years
three years � 037
four years 1 116 � 037
five years and later 17 557
no expiry date 45 481 16 319
Unrecognised carried forward tax losses 3� �87 17 �73
Unrecognised deferred tax on undistributed reserves 306 �95
Deferred tax assets which do not appear to be collectable
in the near future are not recognised. In this assessment
the management takes account of budgets and multi-year
planning.
Major deferred tax asset on tax losses carryforward is
relative to roland International BV. Based upon business
plans an asset has been recognised using estimated tax
profits over 9 years.
the company recognises deferred tax liabilities on non
distributed reserves in affiliates unless there is a firm
commitment not to distribute reserves from that particular
affiliate in the foreseeable future.
In the netherlands tax rate has decreased from 31.5% to
�5.5% resulting to 1.1 million eUr additional tax expense
as the deferred tax asset decreases.
Reconciliation of movement of deferred tax
net tax liability as per 31 December �005 9 811
net tax liability as per 31 December �006 1� 161
Difference � 350
Deferred tax as shown in the p&L 391
Deferred tax effect through equity 673
Deferred tax acquired via business combinations
1 �86
6 5
I I I .5.16 aCQUISItIonS anD DISpoSaLS of IntereStS
EFFECTS OF ACQUISITIONS AND SALES OF INVESTMENTS
2006Acquisition of Group Richard Colorants
Book value Adjustments Fair value
Non current assets 2 991 5 007 7 998
Intangible and tangible fixed assets � 991 5 007 7 998
Current assets 15 588 -280 15 308
Inventories 4 40� -1�7 4 �75
Debtors 6 113 -153 5 960
other debtors -
Cash and banks 5 073 5 073
Non current liabilities 1 168 2 238 3 406
provisions 548 �09 757
pensions 353 353
Deferred tax liabilities 1 676 1 676
Long term financial debt 6�0 6�0
Current liabilities 3 965 636 4 601
Creditors 3 406 3 406
other creditors 559 636 1 195
total net assets 13 446 1 853 15 �99
Goodwill on acquisition 75�
Paid in cash 16 051
Acquisition of assets of Siegwerk Benelux NV
Customer portfolio 1 4�5
product portfolio 5 948
Machinery 1 153
Goodwill 6��
Deferred tax asset 380
Paid in cash 9 528
2005Sale Sirec SACurrent assets 44
equity 8 6�9
Deferred tax liabilities 3 167
Short term payables 37
Sale price in cash 10 �05
Income (1) 1 576
(1) Given that the yield of this sales arises from the reversal of a deferred tax liability, this is included in deferred tax revenue.
6 6
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
II I .5.16 aCQUISItIonS anD DISpoSaLS of IntereStS
the richard group (richard s.a.s., Copidis s.a.s. en astra
Colorants s.a.) was acquired on �7 october �006.
the acquisition cost of eUr 16.1 million was paid in
cash. the necessary market valuations were performed
to determine the fair value of the customer portfolio and
the formulations.
richard Colorants is a french company based at
Lomme, near Lille. founded in 1864, the company has
specialized in pigment pastes since its early days. the
group consists of:
- richard Colorants in Lomme
- Copidis in Lomme
- astra in Lyon
richard Colorants excellently complements eMB-
Inducolor’s existing range. eMB and Inducolor produce
mainly solvent-based inks, varnishes and pigment pastes,
while richard Colorants specializes in water-based
paints and is france’s market leader in this field.
richard Colorants pigments are used to colour:
- paint, ink, varnish, glues and textile coatings,
- wallpaper, writing paper and laminated paper,
- floor coverings, pU foam, plaster,
- shoe polish, sponges and gloves,
- finger paints, wax crayons, etc.
In short, everything for which colours in liquid form are
required.
on end of September eMB bought assets of Siegwerk, a
producer of inks and varnishes. these inks and varnishes
have numerous applications in the various markets
related to the current eMB markets:
- floor coverings (vinyl, laminates, …)
- Wall coverings (flexo- gravure and screen printing inks
for paper and vinyl substrates)
- Decorative paper (inks for gravure printing on paper
and vinyl for decoration of furniture, laminates, …)
- rigid and flexible pVC panels (inks for gravure printing)
6 7
IV. other
IV.1. OPERATING LEASE ARRANGEMENTS
2005 2006
amounts recognised in income 1 030 1 17�
payments due within one year 953 985
Between one and five years 956 905
over five years 1�9
Minimal future payments � 038 1 889
these leases are mainly relative to vehicles, small equipment and office equipment.
IV.2 EVENTS AFTER BALANCE SHEET DATE
the smaller factory unit in Jakarta was flooded in January
�007. Damage to buildings and machinery (net book
value as of 31 December �006 of keUr 306), inventories
(net book value as of 31 December �006 of keUr 1,046)
and business interruption are adequately covered by
insurance.
on 18 January �007 the company fillink Sa was
acquired by eMB. fillink specializes in inks for
wide and super wide format digital printers. this
take over expresses the group’s intentions to enlarge
the “Chemicals” branch of Sioen Industries. fillink
distributes eco-solvent, solvent and UV-inks through a
selected network of distributors. these quality products
are high positioned in the market thanks to the know
how and market intelligence of the company. fillink’s
experience with unique product formulations and
wide market knowledge are real added value for Sioen
Chemicals.
IV.3. OFF BALANCE SHEET ITEMS
2005 2006
Guarantees given as securities for debts or commitments
rights due to hedging of foreign currencies � 933 7 375
Commitments due to hedging of foreign currencies 4 399 11 063
Commitments for the acquisition of intangible and tangible assets 8 516 6 447
6 8
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
IV.4. TRANSACTIONS wITH RELATED PARTIES
Nature of transaction 2006
recticel Group Sale 1 945
recticel Group purchase �64
InCh Sale 1 5�4
SVB purchase 0
Nature of transaction 2005
recticel Group Sale � 079
recticel Group purchase 344
InCh Sale 1 7��
SVB purchase 170
these transactions are done on an arm’s length basis.
other transactions with related parties other than directors are not included, given the negligible amount (under eUr 70.000).
With regard to directors’ remuneration, the reader is referred to section V.6.B.
IV.5. STAFF
Land 2005 2006Belgium 90� 930
China 16 16
Germany 18 �5
france �9� 39�
Ireland 4� 38
Indonesia � 016 1 900
netherlands 7 6
poland 490 539
portugal �5 �4
tunesia 788 766
UK 34 �8
USa 15 �3
Grand Total 4 645 4 687
Blue Collar 3 785 3 816
White Collar 860 871
Grand Total 4 645 4 687
6 9
2006Deloitte
audit fees Sioen Industries nV 65
other assurance services 9
tax services 6
non-audit related services 71
IV.7 CONTINGENT ASSETS AND LIABILITIES
a number of commercial disputes are pending, albeit
with a limited value in dispute.
apparel is currently faced with a quality claim in
france, the extent of which could reach eUr � million.
the quality problem is, however, exclusively due to
suppliers, who are sufficiently insured to cover Sioen’s
possible loss.
the mixed soil pollution identified at the ardooie site
and recorded as a contingent liability last year has
now provided against based upon the results of an
environmental study in �006.
IV.6. AUDIT AND NON AUDIT SERVICES PROVIDED BY THE STATUTORY AUDITORS AND HIS NETwORK
7 0
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
In �006 the following fees were paid to the members of
the Board of Directors and the executive management:
• non-executive and independent directors, as well as
the members of the executive Management in their
capacity as director:
Mr. Jean-Jacques Sioen eUr �0,000
MJS Consulting b.v.b.a. (represented by
Mrs. Michèle Sioen)
eUr �0,000
Mrs. Jacqueline Sioen-Zoete eUr �0,000
D-Lance b.v.b.a. (represented by
Mrs. Danielle Sioen)
eUr �0,000
p. Company b.v.b.a. (represented by
Mrs. pascale Sioen)
eUr �0,000
pol Bamelis n.v. (represented by
Mr. pol Bamelis)
eUr �8,�50
revam b.v.b.a. (represented by
Mr. Wilfried Vandepoel)
eUr �9,000
Sheng n.v. (represented by
Mr. Louis-henri Verbeke)
eUr �6,000
K.e.M.p. n.v. (represented by
Mr. Luc Sterckx)
eUr �7,500
Vean n.v. (represented by
Mr. Luc Vansteenkiste)
eUr �1,500
• Mrs. Michèle Sioen received in �006 as Ceo,
besides her remuneration as a member of the Board
of Directors, a fixed remuneration of eUr 370,000.
She has also received eUr 39,491 of variable
remunderation for �006.
• the fixed remuneration paid to the executive
Management including directors in their capacity as
members of the executive Management amounted to
eUr �,48�,508. Variable remuneration of eUr 89,5�5
for �006 was also granted. this includes contributions
to pension insurance.
• all sums above are gross sums and represent the entire
cost to the company.
In �006 there were no shares, share options or other rights
for the acquisition of shares granted to the Ceo and the
other members of the executive Management. there are
no specific recruitment agreements or agreements for a
golden handshake with the members of the executive
Management.
IV.8 Remuneration of the directors and the Executive Management
7 1
V. StatUtorY aUDItor’S report
StatUtorY aUDItor’S report to the
SharehoLDerS’ MeetInG on the ConSoLIDateD
fInanCIaL StateMentS for the Year enDeD
31 DeCeMBer �006
free translation – the original report is in Dutch
to the shareholders
as required by law and the company’s articles of
association, we are pleased to report to you on the
audit assignment which you have entrusted to us.
this report includes our opinion on the consolidated
financial statements together with the required additional
comment.
Unqualified audit opinion on the consolidated financial
statements
We have audited the accompanying consolidated
financial statements of Sioen Industries nV (“the
company”) and its subsidiaries (jointly “the group”),
prepared in accordance with International financial
reporting Standards as adopted by the european
Union and with the legal and regulatory requirements
applicable in Belgium. those consolidated financial
statements comprise the consolidated balance sheet as at
31 December �006, the consolidated income statement,
the consolidated statement of changes in equity and
the consolidated cash flow statement for the year then
ended, as well as the summary of significant accounting
policies and other explanatory notes. the consolidated
balance sheet shows total assets of 371.833 (000) eUr
and a consolidated profit for the year then ended of
1�.153 (000) eUr.
the financial statements of several significant entities
included in the scope of consolidation which represent
total assets of 69.4�4 (000) eUr and a total turnover of
77.094 (000) eUr have been audited by other auditors.
our opinion on the accompanying consolidated
financial statements, insofar as it relates to the amounts
contributed by those entities, is based upon the reports
of those other auditors.
the board of directors of the company is responsible
for the preparation of the consolidated financial
statements. this responsibility includes among other
things: designing, implementing and maintaining internal
control relevant to the preparation and fair presentation
of consolidated financial statements that are free from
material misstatement, whether due to fraud or error,
selecting and applying appropriate accounting policies,
and making accounting estimates that are reasonable in
the circumstances.
our responsibility is to express an opinion on these
consolidated financial statements based on our audit.
We conducted our audit in accordance with legal
requirements and auditing standards applicable in
Belgium, as issued by the “Institut des reviseurs
d’entreprises/Instituut der Bedrijfsrevisoren”. those
standards require that we plan and perform the audit to
obtain reasonable assurance whether the consolidated
financial statements are free from material misstatement.
In accordance with these standards, we have performed
procedures to obtain audit evidence about the
amounts and disclosures in the consolidated financial
statements. the procedures selected depend on our
judgment, including the assessment of the risks of
material misstatement of the consolidated financial
statements, whether due to fraud or error. In making
those risk assessments, we have considered internal
control relevant to the group’s preparation and fair
presentation of the consolidated financial statements in
order to design audit procedures that are appropriate in
the circumstances but not for the purpose of expressing
an opinion on the effectiveness of the group’s internal
control. We have assessed the basis of the accounting
policies used, the reasonableness of accounting
estimates made by the company and the presentation of
7 �
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
the consolidated financial statements, taken as a whole.
finally, the board of directors and responsible officers
of the company have replied to all our requests for
explanations and information. We believe that the audit
evidence we have obtained, together with the reports
of other auditors on which we have relied, provides a
reasonable basis for our opinion.
In our opinion, and based upon the reports of other
auditors, the consolidated financial statements give a
true and fair view of the group’s financial position as of
31 December �006, and of its results and its cash flows
for the year then ended, in accordance with International
financial reporting Standards as adopted by the eU and
with the legal and regulatory requirements applicable in
Belgium.
Additional comment
the preparation and the assessment of the information
that should be included in the directors’ report on the
consolidated financial statements are the responsibility
of the board of directors.
our responsibility is to include in our report the
following additional comment which does not change
the scope of our audit opinion on the consolidated
financial statements:
• the directors’ report on the consolidated financial
statements includes the information required by law
and is in agreement with the consolidated financial
statements. however, we are unable to express an
opinion on the description of the principal risks
and uncertainties confronting the group, or on the
status, future evolution, or significant influence of
certain factors on its future development. We can,
nevertheless, confirm that the information given is not
in obvious contradiction with any information obtained
in the context of our appointment.
Diegem, 15 March �007
the Statutory auditor
DeLoItte Bedrijfsrevisoren
BV o.v.v.e. CVBa
represented by
Guy Wygaerts Geert Verstraeten
V. StatUtorY aUDItor’S report
7 3
VI. StatUtorY annUaL aCCoUntS SIoen InDUStrIeS n.V.
Condensed balance sheet of Sioen Industries n.v. after appropriation of profit
December 31 (000) EUR 2006
2005
2004
2003
fixed assets 61 459 65 910 81 976 81 990
II. Intangible fixed assets 5 934 3 656 3 477 3 47�
III. tangible fixed assets 1 170 1 136 681 555
IV. financial fixed assets 54 355 61 118 77 818 77 963
Currents assets 179 90� 139 941 139 630 136 381
VII. amounts receivable within one year 178 807 138 611 139 �07 136 �05
IX. Cash at hand and in bank 8�5 1 045 �86 46
X. Deferred charges and accrued income �70 �85 137 130
Total assets 241 361 205 851 221 606 218 371
Capital and reserves 80 814 78 034 80 05� 79 660
I. Capital 46 000 46 000 46 000 46 000
IV. Legal reserves 3 766 3 339 3 174 � 910
V. profit brought forward 31 048 �8 695 30 878 30 750
Creditors 160 547 1�7 817 141 554 138 711
VIII. amounts payable after one year 115 765 51 613 60 �84 61 8�8
IX. amounts payable within one year 39 588 76 100 81 107 76 784
X. accrued charges and deferred income 5 194 104 163 99
Total liabilities 241 361 205 851 221 606 218 371
the statutory annual accounts of the parent company
Sioen Industries n.v. are shown below in condensed
form. In June �007, the annual report and annual
accounts of Sioen Industries n.v. and the auditor’s report
will be filed with the national Bank of Belgium in
accordance with articles 98-10� of the Companies act.
these reports are available on request at the following
address:
Sioen Industries n.v. – fabriekstraat �3 – 8850 ardooie.
the statutory auditor has issued an unqualified opinion
with explanatory paragraph on the statutory financial
statements of Sioen Industries n.v. the explanatory
paragraph is as follows:
the statutory auditor has issued an unqualified opinion
with explanatory paragraph on the statutory financial
statements of Sioen Industries n.v. the explanatory
paragraph is as follows:
Without qualifying the unqualified opinion expressed
above, we draw the attention to the annual report.
Sioen Industries n.v. has per December 31, �006, a
total outstanding receivable of 16,1 mio eUr on the
roltrans group, a 100% subsidiary of Sioen Industries
n.v. In addition, Sioen Coating Distribution n.v., a 100%
subsidiary of Sioen Industries n.v., has outstanding
receivables on the roltrans group for an amount of
19,0 mio eUr. the realisation of these amounts is
dependent of the further successful development of the
realised recovery plan. the accompanying financial
statements do not included any less values or provisions
relating to the above.
7 4
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
Condensed income statement of Sioen Industries n.v.
December 31 (000) EUR 2006 2005 2004 2003
I. Operating income 5 922 5 954 5 599 5 229a. Sales 5 715 5 889 5 317 5 010
D. other operating income �07 65 �8� �19
II. Operating charges -7 022 -6 113 -5 886 -5 075B. Services and other goods � 897 � 110 � 3�5 1 76�
C. renumeration 3 060 3 �36 � 579 � �56
D. Depreciation and amounts written off 944 754 901 1 0�3
G. other operating charges 1�1 13 81 34
III. Operating profit/loss -1 100 -159 -287 154
IV financial income �4 581 16 9�3 15 758 �1 �01
V. financial charges -7 438 -6 416 -6 531 -6 01�
Financial result 17 143 10 507 9 227 15 189
VI. Profit on ordinary activities 16 043 10 348 8 940 15 343
VII. Extraordinary result -7 402 -6 739 -3 596 0
IX. Profit before tax 8 641 3 609 5 344 15 343
X. Income taxes -99 -293 -71 -495
XI. Profit for the financial year 8 542 3 316 5 273 14 848
VI. StatUtorY annUaL aCCoUntS SIoen InDUStrIeS n.V.
7 5
Activity of Sioen Industries
the function of Sioen Industries is essentially to outline
the strategy of the three divisions. It also appoints the
management of the Group companies and supports the
Group companies in the areas of personnel management,
financial and treasury management, budgeting and
controlling, Management Information Systems and It,
and legal affairs.
Comments
the turnover of the holding company decreased by 3%
to eUr 5.7 million. other operating income increased by
eUr 0.14� million. In �006 the operating loss amounted
to eUr 1.1 million, compared with an operating loss
in �005 of eUr 0.159 million. financial income rose
to eUr 16 million, compared with eUr 10.3 million in
�004, as a result of higher dividend payments from the
various subsidiaries.
all participating interests have been recorded at book
value, which results in an extraordinary result for the
year.
the extraordinary income last year related to the capital
gain on the disposal of the participating interest in Sirec.
Accounting principles
the accounting principles and translation rules applied
to the statutory annual accounts of Sioen Industries in
accordance with Belgian Generally accepted accounting
principles.
Statement of capital
In accordance with articles 1 to 4 of the act of March
�, 1989 concerning the disclosure of important holdings
in listed companies and regulating take-over bids, the
applicable quotas were set at, one the one hand, 5
percent or a multiple thereof and on the other hand at
3 percent or a multiple thereof. (article 8 of the articles
of association). In accordance with article 4 of the
act of March �, 1989, the following notifications of
shareholdings in the company were received:
Situation at 31 March 2007
notifying party Date of notification number of shares
percentage of total number of shares:
Sihold n.v.(1)fabriekstraat �3, 8850 ardooie 18 october 1996
13.336.501 6�.5%
notification of change of percentage shareholding
Sihold n.v. 1� october �005 1�,715,010 59.4%
“Stichting Shell pensioenfonds” 1� october �005
7�6,3�0 3.4%
Sihold n.v. 30 January �006 1�,906,�1� 60.3%
total number of shares �1,391,070 100.0%
this foundation is controlled by the Sioen family.
(1) Sihold n.v. is controlled by Sicorp n.v., which is controlled in turn by the Dutch foundation Stichting administratiekantoor
Midapa.
7 6
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
VII . propoSaLS to the annUaL MeetInG
Proposals to the Annual Meeting of Sioen Industries n.v.
of May 25, 2007
the board of directors of Sioen Industries proposes to
the annual meeting to approve the annual accounts at
31 December �006 and to consent to the appropriation
of profit.
the profit for the financial year ended is eUr 8,54�,378,
compared to a profit of eUr 3,315,436 for the financial
year �005. the profit brought forward from the previous
financial year is eUr �8,694,595. the profit available for
appropriation is consequently eUr 37,�36,973.
The board of directors proposes to appropriate the
profit available for appropriation of EUR 37,236,973
as follows:
(in EUR)
Gross dividends for the �1.391.070 shares
5,561,678.�
Directors’ fees �00,000.00
transfer to the legal reserves 4�7,119
profit to be carried forward (31,048,176)
The proposed net dividend per share is calculated
as follows:
(in EUR)
net dividend per share 0.1950
Withholding tax �5/75 0.0650
Gross dividend per share 0.�600
pay-out ratio (1) 45.76%
the proposed dividend is 8.3% higher than that of �005.
If this proposal is accepted, the net dividend of
eUr 0.195 per share will be made payable as from 8
June, �007 onwards at Dexia Bank, InG Bank, fortis
Bank and KBC Bank on presentation of coupon no 9.
(1) Gross dividend in relation to the share of the Group
in the consolidated result
7 7
DefInItIonS
Gross margin % (turnover +/- stock movements finished goods - purchases raw materials -/+ stock movements
raw materials)/turnover
EBITDA earnings Before Interest, taxes, Depreciation and amortization = operating profit + amortization
+ provisions for liabilities and other risks + depreciation
EBIT earnings Before Interest and taxes = operating profit
EBT profit Before taxation
EAT profit after taxation
NOPAT eBIt - taxes
EVA nopat - cost of capital at start of the period
ROE net result part of the group / equity at end of previous financial year
ROCE nopat / Capital employed of the period
Cash flow consolidated net profit + depreciation + amortization + provisions for liabilities and charges +
deferred taxes
FFO net result + depreciations + provisions for liabilities and taxes + amortization + deferred taxes.
Net debt financial debt - cash deposits and cash equivalents
Free operating CF funds from operations - funds from investing activities
Capital equity + minority interests + provisions for liabilities and charges + amounts payable after one
year
working capital financial fixed assets + current assets (minus cash deposits and cash equivalents) - non financial
debt up to one year - accrued charges and deferred income.
Capital employed Working capital + tangible and intangible fixed assets + goodwill
7 8
S I o e n I n D U S t r I e S I f I n a n C I a L o V e r V I e W
aDDreSSeS
COATINGSIOEN COATING NV fabriekstraat �3 B-8850 ardooie België BtW Be 40�.753.106 rpr 040�.753.106 Brugge t +3� 51 74 09 00 f +3� 51 74 09 64 [email protected]
SAINT FRERES SAS 4 route de Ville Bp 1f-804�0 flixecourt france tVa fr 76408448850 rCS aMIenS B 408 448 850 t +33 3�� 51 51 45 f +33 3�� 51 51 49 [email protected]
SIOEN COATING DISTRIBUTION NV fabriekstraat �3 B-8850 ardooie België BtW Be 436.�41.167 rpr 0436.�41.167 Brugge t +3� 51 74 09 00 f +3� 51 74 09 64 [email protected]
SIOEN FABRICS SA Zoning Industriel du Blanc Ballot avenue Urbino 6B-7700 Mouscron Belgique tVa Be 458.801.684 rpM 0458.801.684 tournai
COATING t +3� 56 85 68 80 f +3� 56 34 61 31 [email protected]
wEAVING t +3� 56 85 01 40 f +3� 56 85 01 49 [email protected]
EUROPEAN MASTER BATCH NV – E.M.B. NV rijksweg 15 B-�880 Bornem België BtW Be 4�1.485.�89 rpr 04�1.485.�89 Mechelen t+3� 3 890 64 00 f+3� 3 899 �6 03 [email protected]
INDUCOLOR SA Chemin preuscamps 1� B-78�� ath (Meslin-L’evêque) Belgique tVa Be 400.685.1�5 rpM 0400.685.1�5 tournai t+3� 68 �5 0� 30 f+3� 68 55 �6 0� [email protected]
SIOEN FIBRES SA - extrusion Zoning Industriel du Blanc Ballot Boulevard Métropole 9 B-7700 Mouscron Belgique tVa Be 463.789.464 rpM 0463.789.464 tournai t+3� 56 48 1� 70 f+3� 56 48 1� 85 [email protected]
SIOEN COATED FABRICS (SHANGHAI) TRADING CO. LTD room o, floor 15, hengji Building no 99, huaihai road (east) �000�1 Shanghai p.r. of China
t+86 �1 63 84 �5 �1 f+86 �1 63 84 �7 39 [email protected]
SIOFAB SA Indústria de revestimentos têxteis rua da Indústria pt-4795-074 Vila das aves Santo tirso portugal Santo tirso
SoB o n° 4641 nIf 505.046.644 t+351 �5� 87 47 14 f+351 �5� 94 �9 68 [email protected]
TIS NV Driehoekstraat �a B-9451 haaltert (Kerksken) België BtW Be 405.085.064 rpr 0405.085.064 aalst t+3� 53 85 9� �0 f+3� 53 85 9� 56 [email protected]
VERANNEMAN TECHNICAL TEXTILES NV fabriekstraat 31 B-8850 ardooie België BtW Be 4�9.387.6�3 rpr 04�9.387.6�3 Brugge t+3� 51 �4 81 70 f+3� 51 �� 61 68 [email protected]
PENNEL AUTOMOTIVE SAS 310 rue d’alger f-59100 roubaix france tVa fr 53448�73615 rCS roubaix-tourcoing B 448 �73 615 t+33 3�0 76 �1 10 f+33 3�0 76 �1 1� [email protected]
RICHARD SAS rue lavoisier - zac novo - 59160 lomme t+33 3�0 00 18 88 f+33 3�0 00 18 80 [email protected]
ASTRA COLORANTS SA �0 avenue maréchal de lattre de tassigny - 69330 meyzieu + 33 478 31 58 0� f+33 478 04 0� 57 [email protected]
CONFECTIONSIOEN NV fabriekstraat �3 B-8850 ardooie - België BtW Be 478.65�.141 rpr 0478.65�.141 Brugge t+3� 51 74 08 00 f+3� 51 74 09 6� [email protected]
CONFECTION TUNISIENNE DE SECURITE SA – C.T.S. SA 5 Impasse n° � rue 861� – (Z.I.) La Charguia tn-�035 tunis tunisie Code tVa 03030 V / a / M / 000 rC B 133171996 t+�16 71 77 34 77 f+�16 71 78 40 47 [email protected]
GAIRMEIDI CAOMHNAITHE DHUN NA NGALL TEORANTA LTD (Donegal protective Clothing Ltd –Sioen Ireland) - Industrial estate Bunbeg Co. Donegal Ireland
Vat Ie 46�1355M Company nr. 78�1� t+353 74 953 11 69 f+353 74 953 15 91 [email protected]
MULLION MANUFACTURING LTD 44 north farm road South park Industrial estate Scunthorpe north Lincolnshire Dn17 �aY - UK
Vat GB 365.1873.34 Company nr. 1871440 t+44 17�4 �8 00 77 f+44 17�4 �8 01 46 [email protected]
SIOEN FRANCE-DIVISION SIP PROTECTION pavillon hermès 110 avenue Gustave eiffel ZI La Coupe f-11100 narbonne france tVa fr 49300774767 rCS narbonne B 300 774 767 t+33 4 68 4� 35 15 f+33 4 68 4� �7 43 [email protected]
P.T. SIOEN INDONESIA Jl. Irian raya Blok e-�6 nusantara Bonded Zone (Kawasat Berikat nusantara) Cakung Cilincing Jakarta 14140 Indonesia
npWp 1.068.001.5-05� t+6� �1 440 33 88 f+6� �1 440 14 �8 [email protected]
PT SUNGINTEX Jalan raya narogong Km 1�,5 pangkalan IV Desa Cikiwul Kec. Bantar Gebang Bekasi Barat 17310 Indonesia
npWp 1.068.01�.�-407 t+6� �1 8�5 �� �� f+6� �1 8�5 44 44 [email protected]
SIOEN FIBRES SA – distribution Zoning Industriel du Blanc Ballot Boulevard Métropole 9 B-7700 Mouscron Belgique tVa Be 463.789.464 rpM 0463.789.464 tournai t+3� 56 85 54 30 t+3� 56 34 66 10 [email protected]
SIOEN FRANCE SAS pavillon hermès 110 avenue Gustave eiffel ZI La Coupe f-11100 narbonne france tVa fr 49300774767 rCS narbonne B 300 774 767 t+33 4 68 4� 35 15 f+33 4 68 4� �7 43 [email protected]
SIOEN TUNISIE SA 7 Impasse n° � rue 861� – (Z.I.) La Charguia tn-�035 tunis tunisie Code tVa 614715 S / a / M / 000 rC B 19711998 t+�16 71 80 75 47 f+�16 71 80 9� 6� [email protected]
SIOEN UK Ltd Unit � Windsor house ackhurst Business park foxhole road Chorley Lancashire pr7 1nY UK
Vat GB 73�.4071.6� Company nr 376114� t+44 1�57 �7 7� 44 f+44 1�57 �7 7� 45 [email protected]
SIOEN ZAGHOUAN SA Zone Industrielle de Zaghouan tn-1100 Zaghouan tunisie Code tVa 7470�3 f / a / M / 000 rC B 17713�000 t+�16 7� 68 06 60 f+�16 7� 68 �6 60 [email protected]
SIOEN FRANCE DIVISION VIDAL PROTECTION Zone Industrielle Le passage Jean-rostand Bp167 f 81300 Graulhet t+33 5 63 34 5� 46 f+33 5 63 34 69 99 [email protected]
SIOEN USA Inc. c/o flom, french & Goodwin, L.L.C. 675 Line road Building 4, Suite B aberdeen, nJ 07747 USa
t+1 73� 441 1� 50 f+1 73� 441 1� 53 [email protected]
SIOEN NV – BALENO fabriekstraat �3 B-8850 ardooie België t+3� 51 74 08 00 f+3� 51 74 09 63 [email protected]
SIOEN DEUTSCHLAND am Zirkel 8 49757 Werlte Deutschland (allemagne) t+49 59 51 99 47 0 f+49 59 51 99 47 47 [email protected]
INDUSTRIAL APPLICATIONSCOATEX NV Industriezone Sappenleen Sappenleenstraat 3-4 B-8970 poperinge België BtW Be 434.140.4�5 rpr 0434.140.4�5 Ieper t+3� 57 34 61 60 f+3� 57 33 35 �3 [email protected]
SAINT FRERES CONFECTION SAS � route de Ville Bp 37 f-804�0 flixecourt france tVa fr 44408449098 rCS amiens 408 449 098 t+33 3�� 51 51 70 f+33 3�� 51 51 79 [email protected]
SIOEN NORDIFA SA rue ernest Solvay 181 B-4000 Liège Belgique tVa Be 474.�76.154 rpM 0474.�76.154 Liège t+3� 4 �5� �1 50 f+3� 4 �53 04 �5 [email protected]
ROLAND INTERNATIONAL B.V. Kasteellaan 33 nL-593�ae tegelen nederland BtW nL00381�5��B01 hr Venlo 1�011983 t+31 77 376 9� 9� f+31 77 373 69 66 [email protected]
ROLTRANS GROUP AMERICA INC. 3�1� pinewood Drive arlington, texas 76010 USa 75-1994308 Delaware Corporation # �044811
t+1 817 607 00 80 f+1 817 607 00 88 [email protected]
ROLAND PLANEN GMBH am Zirkel 8 49757 Werlte Deutschland Ust-id.nr.: De 81�873033 osnabrück hrB 1���96 t+49 59 51 99 55 70 f+49 59 51 99 55 71 [email protected]
ROLTRANS GROUP POLSKA SP.Z.O.O. Ul. nadbrzezna 1 pL-6�500 Konin polska nIp 665-100-18-19 rhB 1�10 t+ 48 63� 44 39 �5 f+48 63� 44 39 �1 [email protected]
ROLAND UKRAINE LLC Kievskaya 64-a rivne Ukraine t+38 36� �8 65 39 f+38 36� �8 65 39 [email protected]
ROLAND TILTS UK Ltd Unit 1 Usher Street off Wakefi eld road Bradford BD4 7DS UK Vat GB 311746186 Company nr 1380441 t+44 1�74 39 16 45 f+44 1�74 30 51 56 [email protected]
7 9
COATINGSIOEN COATING NV fabriekstraat �3 B-8850 ardooie België BtW Be 40�.753.106 rpr 040�.753.106 Brugge t +3� 51 74 09 00 f +3� 51 74 09 64 [email protected]
SAINT FRERES SAS 4 route de Ville Bp 1f-804�0 flixecourt france tVa fr 76408448850 rCS aMIenS B 408 448 850 t +33 3�� 51 51 45 f +33 3�� 51 51 49 [email protected]
SIOEN COATING DISTRIBUTION NV fabriekstraat �3 B-8850 ardooie België BtW Be 436.�41.167 rpr 0436.�41.167 Brugge t +3� 51 74 09 00 f +3� 51 74 09 64 [email protected]
SIOEN FABRICS SA Zoning Industriel du Blanc Ballot avenue Urbino 6B-7700 Mouscron Belgique tVa Be 458.801.684 rpM 0458.801.684 tournai
COATING t +3� 56 85 68 80 f +3� 56 34 61 31 [email protected]
wEAVING t +3� 56 85 01 40 f +3� 56 85 01 49 [email protected]
EUROPEAN MASTER BATCH NV – E.M.B. NV rijksweg 15 B-�880 Bornem België BtW Be 4�1.485.�89 rpr 04�1.485.�89 Mechelen t+3� 3 890 64 00 f+3� 3 899 �6 03 [email protected]
INDUCOLOR SA Chemin preuscamps 1� B-78�� ath (Meslin-L’evêque) Belgique tVa Be 400.685.1�5 rpM 0400.685.1�5 tournai t+3� 68 �5 0� 30 f+3� 68 55 �6 0� [email protected]
SIOEN FIBRES SA - extrusion Zoning Industriel du Blanc Ballot Boulevard Métropole 9 B-7700 Mouscron Belgique tVa Be 463.789.464 rpM 0463.789.464 tournai t+3� 56 48 1� 70 f+3� 56 48 1� 85 [email protected]
SIOEN COATED FABRICS (SHANGHAI) TRADING CO. LTD room o, floor 15, hengji Building no 99, huaihai road (east) �000�1 Shanghai p.r. of China
t+86 �1 63 84 �5 �1 f+86 �1 63 84 �7 39 [email protected]
SIOFAB SA Indústria de revestimentos têxteis rua da Indústria pt-4795-074 Vila das aves Santo tirso portugal Santo tirso
SoB o n° 4641 nIf 505.046.644 t+351 �5� 87 47 14 f+351 �5� 94 �9 68 [email protected]
TIS NV Driehoekstraat �a B-9451 haaltert (Kerksken) België BtW Be 405.085.064 rpr 0405.085.064 aalst t+3� 53 85 9� �0 f+3� 53 85 9� 56 [email protected]
VERANNEMAN TECHNICAL TEXTILES NV fabriekstraat 31 B-8850 ardooie België BtW Be 4�9.387.6�3 rpr 04�9.387.6�3 Brugge t+3� 51 �4 81 70 f+3� 51 �� 61 68 [email protected]
PENNEL AUTOMOTIVE SAS 310 rue d’alger f-59100 roubaix france tVa fr 53448�73615 rCS roubaix-tourcoing B 448 �73 615 t+33 3�0 76 �1 10 f+33 3�0 76 �1 1� [email protected]
RICHARD SAS rue lavoisier - zac novo - 59160 lomme t+33 3�0 00 18 88 f+33 3�0 00 18 80 [email protected]
ASTRA COLORANTS SA �0 avenue maréchal de lattre de tassigny - 69330 meyzieu + 33 478 31 58 0� f+33 478 04 0� 57 [email protected]
CONFECTIONSIOEN NV fabriekstraat �3 B-8850 ardooie - België BtW Be 478.65�.141 rpr 0478.65�.141 Brugge t+3� 51 74 08 00 f+3� 51 74 09 6� [email protected]
CONFECTION TUNISIENNE DE SECURITE SA – C.T.S. SA 5 Impasse n° � rue 861� – (Z.I.) La Charguia tn-�035 tunis tunisie Code tVa 03030 V / a / M / 000 rC B 133171996 t+�16 71 77 34 77 f+�16 71 78 40 47 [email protected]
GAIRMEIDI CAOMHNAITHE DHUN NA NGALL TEORANTA LTD (Donegal protective Clothing Ltd –Sioen Ireland) - Industrial estate Bunbeg Co. Donegal Ireland
Vat Ie 46�1355M Company nr. 78�1� t+353 74 953 11 69 f+353 74 953 15 91 [email protected]
MULLION MANUFACTURING LTD 44 north farm road South park Industrial estate Scunthorpe north Lincolnshire Dn17 �aY - UK
Vat GB 365.1873.34 Company nr. 1871440 t+44 17�4 �8 00 77 f+44 17�4 �8 01 46 [email protected]
SIOEN FRANCE-DIVISION SIP PROTECTION pavillon hermès 110 avenue Gustave eiffel ZI La Coupe f-11100 narbonne france tVa fr 49300774767 rCS narbonne B 300 774 767 t+33 4 68 4� 35 15 f+33 4 68 4� �7 43 [email protected]
P.T. SIOEN INDONESIA Jl. Irian raya Blok e-�6 nusantara Bonded Zone (Kawasat Berikat nusantara) Cakung Cilincing Jakarta 14140 Indonesia
npWp 1.068.001.5-05� t+6� �1 440 33 88 f+6� �1 440 14 �8 [email protected]
PT SUNGINTEX Jalan raya narogong Km 1�,5 pangkalan IV Desa Cikiwul Kec. Bantar Gebang Bekasi Barat 17310 Indonesia
npWp 1.068.01�.�-407 t+6� �1 8�5 �� �� f+6� �1 8�5 44 44 [email protected]
SIOEN FIBRES SA – distribution Zoning Industriel du Blanc Ballot Boulevard Métropole 9 B-7700 Mouscron Belgique tVa Be 463.789.464 rpM 0463.789.464 tournai t+3� 56 85 54 30 t+3� 56 34 66 10 [email protected]
SIOEN FRANCE SAS pavillon hermès 110 avenue Gustave eiffel ZI La Coupe f-11100 narbonne france tVa fr 49300774767 rCS narbonne B 300 774 767 t+33 4 68 4� 35 15 f+33 4 68 4� �7 43 [email protected]
SIOEN TUNISIE SA 7 Impasse n° � rue 861� – (Z.I.) La Charguia tn-�035 tunis tunisie Code tVa 614715 S / a / M / 000 rC B 19711998 t+�16 71 80 75 47 f+�16 71 80 9� 6� [email protected]
SIOEN UK Ltd Unit � Windsor house ackhurst Business park foxhole road Chorley Lancashire pr7 1nY UK
Vat GB 73�.4071.6� Company nr 376114� t+44 1�57 �7 7� 44 f+44 1�57 �7 7� 45 [email protected]
SIOEN ZAGHOUAN SA Zone Industrielle de Zaghouan tn-1100 Zaghouan tunisie Code tVa 7470�3 f / a / M / 000 rC B 17713�000 t+�16 7� 68 06 60 f+�16 7� 68 �6 60 [email protected]
SIOEN FRANCE DIVISION VIDAL PROTECTION Zone Industrielle Le passage Jean-rostand Bp167 f 81300 Graulhet t+33 5 63 34 5� 46 f+33 5 63 34 69 99 [email protected]
SIOEN USA Inc. c/o flom, french & Goodwin, L.L.C. 675 Line road Building 4, Suite B aberdeen, nJ 07747 USa
t+1 73� 441 1� 50 f+1 73� 441 1� 53 [email protected]
SIOEN NV – BALENO fabriekstraat �3 B-8850 ardooie België t+3� 51 74 08 00 f+3� 51 74 09 63 [email protected]
SIOEN DEUTSCHLAND am Zirkel 8 49757 Werlte Deutschland (allemagne) t+49 59 51 99 47 0 f+49 59 51 99 47 47 [email protected]
INDUSTRIAL APPLICATIONSCOATEX NV Industriezone Sappenleen Sappenleenstraat 3-4 B-8970 poperinge België BtW Be 434.140.4�5 rpr 0434.140.4�5 Ieper t+3� 57 34 61 60 f+3� 57 33 35 �3 [email protected]
SAINT FRERES CONFECTION SAS � route de Ville Bp 37 f-804�0 flixecourt france tVa fr 44408449098 rCS amiens 408 449 098 t+33 3�� 51 51 70 f+33 3�� 51 51 79 [email protected]
SIOEN NORDIFA SA rue ernest Solvay 181 B-4000 Liège Belgique tVa Be 474.�76.154 rpM 0474.�76.154 Liège t+3� 4 �5� �1 50 f+3� 4 �53 04 �5 [email protected]
ROLAND INTERNATIONAL B.V. Kasteellaan 33 nL-593�ae tegelen nederland BtW nL00381�5��B01 hr Venlo 1�011983 t+31 77 376 9� 9� f+31 77 373 69 66 [email protected]
ROLTRANS GROUP AMERICA INC. 3�1� pinewood Drive arlington, texas 76010 USa 75-1994308 Delaware Corporation # �044811
t+1 817 607 00 80 f+1 817 607 00 88 [email protected]
ROLAND PLANEN GMBH am Zirkel 8 49757 Werlte Deutschland Ust-id.nr.: De 81�873033 osnabrück hrB 1���96 t+49 59 51 99 55 70 f+49 59 51 99 55 71 [email protected]
ROLTRANS GROUP POLSKA SP.Z.O.O. Ul. nadbrzezna 1 pL-6�500 Konin polska nIp 665-100-18-19 rhB 1�10 t+ 48 63� 44 39 �5 f+48 63� 44 39 �1 [email protected]
ROLAND UKRAINE LLC Kievskaya 64-a rivne Ukraine t+38 36� �8 65 39 f+38 36� �8 65 39 [email protected]
ROLAND TILTS UK Ltd Unit 1 Usher Street off Wakefi eld road Bradford BD4 7DS UK Vat GB 311746186 Company nr 1380441 t+44 1�74 39 16 45 f+44 1�74 30 51 56 [email protected]
SIoen Industries nv fabriekstraat �3
8850 ardooie - Belgium
t +3� 51 74 09 00
f +3� 51 74 09 64
www.sioen.be
JaarVerSLaG / rapport annUeL / annUaL report
Dit jaarverslag is beschikbaar in het nederlands, het frans en het engels.
Ce rapport annuel est disponible en français, en néerlandais et en anglais.
this annual report is available in Dutch, french and english.
100 YEARS OF
Summary
Profile 1
Our products 2
100 years of Sioen 4
Innovation 6
Letter to shareholders 8
Mission & Strategy 10
Expertise 12
Expertise right down the line 14
Group Structure 15
Sioen worldwide 16
Coating division 18
Apparel division 24
Industrial applications 28
Vision 30
Human resources 32
Research & Development 33
Quality 34
Environment 35
Corporate information 1
Letter to shareholders 3
Report from the Board of Directors 5
Group Structure 9
Share Information 10
Corporate Governance 12
General information 16
Financial overview 19
Definitions 77
Addresses 78
Only the English version of the annual report has evidential value.
Innovation
Expertise
Vision
ANNUAL REPORT
2006
A100 YEARS OF SIOEN AND TEXTILES
Innovation
Expertise
Vision