2012 number 3 autumn THEME: THE TENCATE VALUE PROPOSITION

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1 2012 number 3 autumn THEME: THE TENCATE VALUE PROPOSITION

2 Value chain management TENCATE AND THE VALUE PROPOSITION txtures 3 - autumn 2012 The company Royal Ten Cate (TenCate) is a multinational company which combines textile technology with chemical processes in the development and production of functional materials. On this technological basis TenCate develops a range of profitable applications (product-market-technology combinations) aimed at growth markets. Value proposition and innovation TenCate materials are mainly used for personal safety and protection of the living and working environment; modernization of equipment used by armed forces, fire brigades and police; space and aerospace (lower fuel costs due to the use of lighter materials); water management, infrastructure and environmental protection; industrial applications. txtures 3 The TenCate value proposition occupies a central role in txtures This autumn edition of txtures contains 40 pages of articles about subjects such as: TenCate Protective Systems 4 Innovation in advanced materials 8 Armour for military vehicles 14 Political leaders 16 Greater attention to CSR 18 Opening TPRC 22 Aviation industry meet at Farnborough 24 TenCate Defender M expands product portfolio 26 Making synthetic turf pitches durable 32 TenCate at home in space 33 Sustainable water management 38 Key developments include the increasing demand for weight saving, more exacting requirements for the protection of military personnel and their vehicles, reductions in water and fuel consumption, and recyclability. TenCate products that contribute to these developments include thermoplastic composite materials, protective fabrics and synthetic turf fibres. Technological renewal It is crucially important to develop existing products further by means of technological renewal or to bring new products to a higher technological level. The development and production of new, high-grade materials with specific functional characteristics require a high-grade production system, which is why the production processes too will undergo changes. In txtures 3 we devote attention to subjects such as regional innovation centres and their importance, advanced materials and the contribution of TenCate to projects that focus on the protection of people, materiel and the environment. Photo front cover: Production of industrial fabrics at TenCate Industrial Zhuhai (China) 2 txtures number 3 autumn 2012

3 TenCate delivers solutions for customers and end-users through acquisitions in complementary areas and by operating in open innovation centres, development consortia and other network structures. Materials that meet specific customer requirements are developed together with market players in co-creation. Production of protective fabrics at TenCate Union Protective Fabrics in Bangkok (Thailand) 3

4 Safety / Protection TenCate Protective Fabrics AND TenCate Advanced Armour COMBINE FORCES TenCate Protective Systems TenCate Advanced Armour and TenCate Protective Fabrics USA have jointly started up an armour company in India: TenCate Protective Systems. The new facility will focus on both the defence and commercial applications of protective fabrics and armour composites. There is a great deal of potential and keen interest in protective and flame-retardant products by the Indian military forces and paramilitary organizations and by Indian companies, including those involved in oil and gas extraction. 4 txtures number 3 autumn 2012

5 TenCate Protective Fabrics focuses on the safety and protection of people, while TenCate Advanced Armour concentrates on the active and passive protection of people and materiel. Construction workers, electricians, fighter pilots, emergency service workers and soldiers in conflict zones are all exposed to risks and dangers. TenCate aims to provide them with the best possible protection with materials based on fabrics and armour composites, preferably in system solutions. The two divisions are increasingly joining forces: in combined product presentations to endusers and by combining materials in products. The TenCate Protective Systems facility in India represents the next major step in this cooperation. Defence modernization Over the next ten years India will be undertaking the largest defence modernization on the planet, with a disposable budget of more than 120 billion across the entire spectrum of land, sea and air forces. The army alone has over a million soldiers and almost a million reservists. India is also undergoing a transformation of its law and order police forces, upgrading them with better protection to deal with serious internal strife, which is spreading through large parts of eastern India, instigated by what is popularly known as the Maoist movement. TenCate Protective Fabrics and TenCate Advanced Armour are forecasting good opportunities for their products and want to participate in these modernization and upgrading programmes of the Indian government. In wearer trials conducted by the Indian military forces TenCate materials have proved to be eminently suitable for the conditions in India. TenCate Protective Systems is now engaged in becoming the main materials supplier for this large-scale modernization programme. Brand awareness Both divisions intend to take advantage of the experiences, network and brand established by TenCate Protective Fabrics over the past two years. In India TenCate has now gained recognition as a total solutions provider for protecting the military, paramilitary and police units. It is becoming increasingly important to come up with such solutions. Continued on page 6 Picture: AudioVisuele Dienst Defensie (NL) 5

6 Safety / Protection TenCate Protective Fabrics AND TenCate Advanced Armour COMBINE FORCES Continued from page 5 As a result of the creation of a new, cohesive organization, end products can be offered that will use both protective fabrics and composite materials. In light of these considerations, the decision was taken in November 2011 to create a joint armour facility in India. TenCate Protective Systems in India is currently run by Munish Dhawan. The TenCate Protective Systems management team additionally consists of Don Olsen (global group director, TenCate Protective Fabrics), Dave Clarke (global group director, TenCate Aerospace & Armour Composites), John Shadinger (president, TenCate Defense & Tactical) and Steen Tanderup (managing director, TenCate Advanced Armour EMEA & APAC). Ambitions The present facility in Noida, in the Indian state of Uttar Pradesh, will be closed down. This facility was rented for the production plans in India of AML UK, which was acquired by TenCate at the beginning of Its location, however, was not suitable for undertaking TenCate Protective Systems plans or realizing its ambitions. At this time the company is moving into new premises and hiring the partly regional sales and technical personnel needed to ensure success. Although Indians are familiar with the western way of doing business, a knowledge of the country s customs and traditions is looked on favourably. Apart from that, the country has a well-functioning legal system. Defence industry TenCate Protective Systems will focus initially on sales & marketing and business development. Chris Corner and Wilfred Sluyter, Joint presentation by TenCate Protective Fabrics and TenCate Advanced Armour at Defexpo India txtures number 3 autumn 2012

7 senior director, market innovation & business development at TenCate Protective Fabrics and head of marketing & sales at TenCate Advanced Armour EMEA respectively, will be responsible for technical and commercial support in these areas. The company thus has the expertise to sell materials from both TenCate Protective Fabrics and Advanced Armour. Production will start at TenCate Protective Systems in the near future, as India intends to build up a defence industry of its own. The government is fast moving towards establishing a robust offset regime, which will require TenCate to have phased in local production, people and technology here. Assets can be created to benefit both TenCate Protective Fabrics and TenCate Advanced Armour. Applications As far as armour composites are concerned, the focus will be on military applications as well as the law enforcement market, including vehicle manufacturers and helicopter companies. TenCate Protective Fabrics will focus on protecting the military, paramilitary and police units with products such as TenCate Defender M. This product is currently undergoing wearer trials for qualification by departments of the Indian Ministries of Defence and of Internal Affairs and the first of these trials involving uniforms based on TenCate Defender M have proved highly successful. Together with representatives of TenCate they are currently engaged in incorporating flame-retardant TenCate Defender M materials. TenCate expects the first orders to be placed in the first quarter of On the commercial side, TenCate Protective Systems intends to focus on the oil & gas and utilities markets with TenCate Tecasafe Plus, as well as providing global emergency response solutions. In all cases sights are set on India. Once the organization is established, opportunities elsewhere in the region will be investigated. Cost conscious Historically, the Asian markets have been very cost conscious, but there is dynamic change afoot regarding the relevance of quality protection which is taking place in the light of the economic success that Asian countries are having. In particular the Indian Ministries of Defence and of Internal Affairs have begun to look for the best solutions to protect their soldiers and police, who number some two million. Most of them do not currently wear flame-retardant (FR) uniforms and the necessity to equip soldiers with these is being ever more keenly felt. This is to the advantage of TenCate. The company is not interested in volume products; what is important is to market a quality product which is able to project a distinctive profile. TenCate Protective Fabrics is already working with a number of players on the launch and qualification of TenCate Defender M. The new generation of FR uniform fabric combines the best FR protection with excellent comfort that is ideally suited to India s tropical climate. Profitable TenCate has set itself the goal for 2012 of increasing the profitable sales of TenCate Protective Fabrics and TenCate Advanced Armour in India. Efforts to continue to establish the TenCate brand will be redoubled and end-users made aware of the unique technical textile products manufactured by TenCate. TenCate Protective Fabrics and TenCate Advanced Armour intend to develop and promote system solutions. TenCate Protective Systems is continuing to establish relations with Indian ready-to-wear clothing manufacturers in order to build up a reliable and useful value chain network in India. The TenCate presence will also be strengthened to ensure success in the short and long term. There is at present no direct link between TenCate Protective Systems and the new sales office of TenCate Advanced Armour APAC in Singapore. The region is so vast that it is impossible to cover all the potential markets from either India or Singapore. In the longer term it is quite conceivable that a production facility in India will supply products that will be sold by the team in Singapore. TenCate Protective Systems aims to become the main materials supplier for the largest defence modernization programme on the planet India recognizes TenCate as a supplier of total solutions for the protection of the military, paramilitary and police units The first wearer trials with uniforms based on TenCate Defender M conducted by the Indian Ministries of Defence and of Internal Affairs have been highly successful protectivefabrics.asia@tencate.com advancedarmour.asia@tencate.com 7

8 Innovation AMMON boost for industrial cooperation east netherlands Innovation in advanced materials TenCate is one of the first four key players in Advanced Materials Manufacturing Oost-Nederland (AMMON), a business development and innovation programme led by industry in the East Netherlands. The aim is to accelerate and broaden the business development of industrial companies and strengthen industrial cooperation. Wednesday 13 June saw the official kick-off of AMMON, which was hosted by TenCate. AMMON marks the start of a new phase in industrial cooperation in the East Netherlands. Advanced materials can endow products with characteristics that are important to the customer 8 txtures number 3 autumn 2012

9 The ambition of the East Netherlands the provinces of Overijssel and Gelderland is to become stronger and more effective as a knowledge area and centre of innovative manufacturing industry in the field of high tech materials and systems. This requires the strengthening of industrial cooperation. Yet many companies still have insufficient knowledge of one another s areas of business and technology despite the herring parties and networking gatherings. A company that makes full use of the opportunities for cooperation creates added value and can take the next step in business growth. Just like the SMEs, large industrial concerns such as TenCate also see good opportunities and possibilities for innovation through cooperation or co-creation. Knowledge Business development starts with a razor-sharp insight into latent customer needs, the creativity to devise smart solutions and the knowledge to technically realize solutions. Companies cluster their strengths in consortia that combine their insights and knowledge into concrete business cases (development projects). Together they have to stay focused. Through these business cases, the East Netherlands can specifically build a much stronger technological infrastructure and industrial cooperation. Within a business community, the players know one another s strong and weak points as well as one another s products, solutions and technological possibilities. They work more closely together within a context of mutual trust. 9

10 Innovation AMMON BOOST FOR INDUSTRIAL COOPERATION EAST NETHERLANDS Advanced materials AMMON pursues the acceleration and broadening of the business growth of industrial companies concerned with raw materials, smart materials, safety and security, sustainable living environments, and energy storage and reuse. Advanced materials are important because these materials can endow products with characteristics that are important to the customer and which other materials cannot provide, explains Tjerk Gorter, programme manager of AMMON and also director of Qanbridge, a firm that not only supports technology-driven companies in accelerated business development but also builds its own high tech companies. Tjerk Gorter has a long service record in business development and innovation, and is active in the development and management of national and regional technology and innovation programmes. In national programmes you re situated mainly at the beginning of the technology chain, whereas the focus must shift much more to the end of the chain. In the Netherlands we are particularly weak in translating new technology into business. business development at TenCate). That s why we must build bridges... and networks. That s my role: creating business, although I do it wearing a TenCate hat. AMMON is a results-driven platform. The role of the provincial government is now to stimulate and facilitate. The province of Overijssel has provided fantastic support and given AMMON a good deal of space, enabling us to give shape to a large industrial programme, says Tjerk Gorter. Guide group The core of the business development programmes within AMMON is a medium-sized multinational ringed by high-quality codevelopers and suppliers. These SME parties can design and build the systems, and the number of industrial partners will be expanded even further. Although AMMON is focused on the East Netherlands, it is open to players from outside this region. The consortia will be composed of the best possible players, wherever they come from. Tjerk Gorter: We want to combine, innovate and directly realize The key team is the industrial board, a guide group that ensures uniformity in the business cases. The industrial board receives and assesses the project proposals: from the first sketch, via a concrete project plan (concrete, quantification) where professional instruments such as quality function deployment are brought into play, to a full project plan. All our projects result in working prototypes or demonstrators. In the view of the AMMON partners, the province of Overijssel can play a fantastic role as launch customer for example, for smart roads (roads that can communicate with cars) and smart levees (smart dykes complete with geosynthetics and optical sensors). Distinctive In the short term, AMMON must through cooperation enable industrial players in the East Netherlands to quickly and effectively launch distinctive solutions on the market. Therefore innovation programmes cannot do without market attack programmes with an Martin Olde Weghuis: Create networks. Lead By establishing AMMON, industrial undertakings in the East Netherlands have taken the lead hence the term industry-led innovation : a programme driven by industry. Industry itself wants to engage in innovation, and this is completely in line with provincial policy. TenCate has already initiated or is a partner in innovation projects and development consortia. You have to work together, says Loek de Vries, president and CEO of TenCate. He and Tjerk Gorter had intensive discussions in the run-up to AMMON. It starts with the business people. You mustn t impose innovation from above. This certainly applies in a region such as the East Netherlands, which is highly diverse in terms of trade and industry. This is both our strength and our weakness, feels Martin Olde Weghuis (manager 10 txtures number 3 autumn 2012

11 underlying business plan. That s the way to valorize knowledge. The objective in the long term is the realization of a far stronger industrial-technological infrastructure for the East Netherlands. And as far as innovation is concerned, industrial cooperation in the East Netherlands is entering a completely new phase. East Netherlands In the East Netherlands the provinces of Overijssel and Gelderland three regions are closely connected with R&D and innovation: the Arnhem-Nijmegen region (Health Valley), the Ede-Wageningen region (Food Valley) and the Deventer-Twente-Zwolle region (Materials Valley or the manufacturing industry). The triangle Deventer-Twente-Zwolle is considered to be one of the greatest driving forces of the Dutch knowledge economy. On the national innovation index Twente is 50% above the national average. Each of these regions concentrates on its specific core activities. In the case of Materials Valley, these are materials such as synthetics, textiles, metal and cables. Manufacturing industry The High Tech Materials & Systems sector forms the core of the innovative manufacturing industry and it is mainly in this sector that the region can distinguish itself. Approximately 28% of the companies in Twente, home of TenCate, are active in the high-quality manufacturing industry. We in Twente are reasonably creative, says Loek de Vries, president and CEO of TenCate. Synthetic turf, composites and geotextiles were devised in Nijverdal. The same applies to protective fabrics such as those that clothe the American soldier. AMMON is an industry-led, results-driven programme for innovation in advanced materials Companies in the East Netherlands are using concrete business cases to build a stronger technological infrastructure and industrial cooperation Provincial government has a stimulating and facilitating role and can act as launching customer The meeting of CEOs and CTOs of East Netherlands companies took place in the business club of the Polman Stadium in Almelo. TenCate is one of the first four core players. 11

12 Sustainability / Environment DUTCH NATIONAL TEAM opens Orange Cruyff Court in Kraków Orange Cruyff Court 7 The Dutch national football team did not leave much of an impression behind during the 2012 European Football Championships in Poland and Ukraine. What the players and staff did, however, leave behind was an Orange Cruyff Court. The players and staff of the Dutch national team opened this football pitch for young people based on TenCate synthetic turf in Kraków (Poland) on Tuesday 5 June. This is the 158 th Cruyff Court, the 22 nd Court outside the Netherlands and the seventh Orange Cruyff Court worldwide. The Cruyff Court came about in collaboration with the Dutch national team and staff, the Dutch Football Association with its World Coaches project and the municipality of Kraków. The pitch is a donation to the youth of this city, which was the Dutch national team s base during the European Championships. The pitch is at Basisschool 93 in the Bronowice district of the city, which is home to some 6,000 young people, but has only three sports facilities. This Cruyff Court has thus given the young people another great sports facility and not only that, they have also become acquainted with the philosophy of the Johan Cruyff Foundation. The 14 rules of Johan Cruijff apply to every pitch and they teach children to take responsibility, to show respect and to learn from each other, said Carole Thate (director, Johan Cruyff Foundation). TenCate Grass developed the TenCate Tapeslide XP fibre specially for intensively used sports pitches such as Cruyff Courts. Since the introduction of these fibres nine years ago, TenCate has studied a large number of these high-use pitches worldwide. All the pitches studied turned out to be still in excellent condition and showed either no signs of wear or very few. 12 txtures number 3 autumn 2012

13 Sustainability / Environment TenCate MAKES synthetic turf AVAILABLE FOR mobile PITCH Young people in Kraków started using the Cruyff Court immediately after it was opened Mobile Cruyff Court at Schiphol info@cruyff-foundation.org There are now many Cruyff Courts to be found, most of them in the Netherlands. A special version of this synthetic turf football pitch was opened on Friday, 8 June: a Cruyff Court and a European Football Championship stand at Amsterdam Schiphol Airport. A European Football Championship stand was constructed at Schiphol specially for travellers, visitors and employees, thus ensuring that nobody missed a match. The stand and the Cruyff Court were provided jointly by Schiphol, Coca Cola and ING, the main sponsor of the Dutch national team. ING organized a number of the activities relating to the Dutch national team on the Cruyff Court, which measures 18 by 10 metres. The synthetic turf on this special Cruyff Court at Schiphol was provided by TenCate, the long-standing partner of the Johan Cruyff Foundation. 13

14 Safety / Protection TenCate Advanced Armour SUPPLIES ARMOUR FOR British military vehicle The new Foxhound LPPV at the Defence Vehicle Dynamics in Millbrook [Photo: Richard Watt, Crown Copyright / MOD 2012] Protection in Afghanistan TenCate Advanced Armour has received a follow-up order for the supply of 100 TES (Theatre Entry Kits) for the Foxhound LPPV 4x 4 military vehicle. The initial order of 204 TES kits were supplied in 2011 and are currently being deployed in Afghanistan. The Foxhound is in part the result of cooperation between government and UK industry and with TenCate Advanced as a part of this cooperation. It highlights our strength as an armour supplier. The armour system supplied by TenCate Advanced Armour Swindon will be used as spall-liners, protecting soldiers travelling in a vehicle against roadside bombs, shrapnel and bullets. Delivery will take place in 2012 and 2013, with the possibility of smaller additional contracts from 2014 onwards. Force Protection Europe (FPe), now part of General Dynamics European Land Systems, will supply these patrol vehicles to the British Ministry of Defence (MoD). Survivability The Foxhound is able to carry up to six military people and provides the highest levels of survivability anywhere in the world for this size and class of vehicle. This comes in part through its V-shaped hull. The Foxhound vehicle is light, manoeuvrable and has been designed to move freely around the narrow alleyways, tracks, bridges and culverts of Afghanistan. It protects both the occupants and key automotive components, providing enhanced mobility and blast survivability to troops operating in urban environments. The follow-up order is part of a billion-pound investment in the British armoured vehicle programme, which also includes equipment and logistics support A characteristic feature here is the open systems approach that is used. This approach 14 txtures number 3 autumn 2012

15 means that off-the-shelf upgrades are easier and provide greater uniformity with other new technologies and vehicles, thereby future-proofing the British Army s core skills. The lightweight, high performance yet cost-effective armour design is manufactured to the highest standards and hence represents value for money for this highly significant MoD programme. Cooperation After the US, the UK is the largest armour market in the world and one of the largest defence-export markets. TenCate Advanced Armour has consolidated its UK operations at the Swindon plant. The company in the UK design and manufacture materials for military vehicles, naval ships, CIT security market and to a lesser degree aircraft protection. For this order TenCate Advanced Armour has worked closely with QinetiQ, a British research and technology company which focuses on defence, aerospace and safety. QinetiQ together with TenCate Advanced Armour, the Defence Science & Technology Laboratory and FPe was involved in the design. TenCate Advanced Armour is QinetiQ s preferred supplier for armour; the company is glad to involve TenCate in programmes in which armour is to be used. We are pleased to have been selected by QinetiQ for this vehicle, thereby providing protection for British troops in Afghanistan, stated Ian Dunbavand, commercial director, military sales at TenCate Advanced Armour. We understand the importance of quality and on-time deliveries. This highlights our specific strength as an armour supplier. Technology) expressed his support for the cooperation between the Ministry of Defence and industry. Both he and the army staff are aware of the quality delivered by TenCate. Foxhound is a great example of what can be achieved through the Ministry of Defence and industry working closely together, he said. I want to maximize the extent to which industry uses an open systems approach both domestically and in the global market, enabling us to buy off the shelf as far as possible. Peter Luff believes that they can now with confidence move forward to plan and deliver an armoured vehicle programme worth 5.5 billion (approx. 7 billion Euros) over the next decade. This will deliver a fleet of state-ofthe-art, high-tech and easily deployable fighting vehicles. TenCate Advanced Armour is a leading global supplier of customized, lightweight ballistic protection solutions for personnel and for a wide range of vehicles, naval ships and aircraft. This relates to both passive and active protection, such as the TenCate ABDS active blast countermeasure system (which offers protection to army vehicles against roadside bombs). The use of composite materials provides vehicles in crisis zones a higher degree of protection and mobility and represents a saving on fuel costs. advancedarmour.europe@tencate.com Peter Luff, British Minister for Defence Equipment, Support and Technology [Photo: Graeme Main, Crown Copyright / MOD 2012] Exhibition The new vehicle was displayed at the Defence Vehicle Dynamics (DVD) Exhibition at Millbrook (Bedfordshire, UK), the largest of its kind in Europe. On this occasion Peter Luff (Minister for Defence Equipment, Support and 15

16 Sustainability / Environment TenCate WELCOMES minister OF finance AND pvda party CHAIRMAN Political leaders In July TenCate welcomed to its premises two leading figures on the Dutch political scene. On Monday, 2 July the outgoing Minister of Finance, Jan Kees de Jager, visited TenCate Advanced Composites. A week later Diederik Samsom, parliamentary party chairman and political leader of the PvdA (Labour Party), followed in his footsteps. He paid visits to TenCate Advanced Composites and to TenCate Grass. TenCate Advanced Composites welcomed Jan Kees de Jager, the outgoing Minister of Finance on Monday 2 July. He was first given a presentation by Frank Meurs, director of TenCate Advanced Composites EMEA, on the strength of technological innovation. Then followed a guided tour of the production facilities by Rob Boogert, plant manager of TenCate Advanced Composites. This was intended to give the visitor a good idea of the processes involved in the manufacture of thermoplastic composites and of their use in the aviation industry. The TenCate Advanced Composites production site in Nijverdal plays a key role in thermoplastics for the international aircraft industry. The division is certified for a large number of aircraft programmes. TenCate has long-term contracts with major international aircraft manufacturers such as Airbus and Boeing. On 9 July the same welcome and presentation were also accorded to parliamentary party chairman and political leader of the PvdA, Diederik Samsom. His visit also included a guided tour of the plant where grass yarns are produced. René Bosch (director of human resources, Netherlands) and Erik Vogt (production director, TenCate Grass) accompanied the PvdA leader through the production company. Jan Kees de Jager (right) and Rob Boogert at TenCate Advanced Composites 16 txtures number 3 autumn 2012

17 in Nijverdal René Bosch explained some of the personnel aspects of the company, while Erik Vogt provided details of the the various steps in the process. The Grass group occupies a leading technological and market position globally in fibres and backing for synthetic turf systems. During their tours both the minister and the parliamentary party chairman struck up conversations with some of the employees. Both appeared extremely interested in the production process and the applications of the materials. Innovation, market developments and the competitive position as regards China were discussed. Judging by the positive reactions from Jan Kees de Jager and Diederik Samsom this can safely be considered to have been a successful working visit and it has led to greater knowledge and understanding on both sides. In the words of Hayte de Jong, political secretary to party leader Diederik Samsom: We all found it an extremely interesting, fascinating and enjoyable visit. Diederik Samson listens attentively to the explanation by Erik Vogt (right) at TenCate Grass 17

18 Corporate Social Responsibility TenCate deepens sustainability policy Greater attention to CSR Aware of the influence of its activities on society, TenCate has further increased its attention to corporate social responsibility over the last few years. Since 2011 the managements of the operating companies have been supported by the corporation s CSR team in all initiatives and activities. Furthermore, in 2012 the divisions in the Netherlands are implementing the CSR Performance Ladder. This year too they will be defining as far as possible the CO 2 footprint of company processes and products. TenCate is in close contact with its social environment, wherever that might be in the world. This social involvement arises from the policy of corporate social responsibility (CSR) pursued by TenCate. The spearheads in this policy are the customer is central, responsible products and processes, sound TenCate is working further on technologies for processing raw materials entrepreneurship, good employment practices, responsible (honest) business practices and social commitment. Based on this policy, TenCate pursues a sustainable balance between social (People), ecological (Planet) and economic (Profit) aspects. Aspects of CSR People concerns the social and ethical aspects, such as personnel policy, working conditions and safety on the shop floor. Planet concerns the ecological and environmental aspects, and here aids include certified environmental monitoring systems, ISO standards, the CSR Performance Ladder, ecotools, etc. Profit relates to the economic and business aspects: do what the customer asks, cost leadership and sustainable profitability. Through its continuity, TenCate wants to contribute to the social, ecological and economic development for future generations. TenCate aims at safety and sustainability. These trends relate to the protection of people and their living environment: protecting people. The product portfolio of TenCate focuses to a large extent on this. TenCate develops and produces protective fabrics, composites for aerospace, antiballistics, geosynthetics and synthetic turf. Many of these materials, modules and systems inherently contribute to safety and sustainability. Increasing attention to CSR The attention paid by TenCate to CSR is increasing still further. There are a number of reasons for this, starting with the growing CSR awareness of the organization itself. As market leader, TenCate is in the forefront of the endeavour of the (technical) textile industry to satisfy the needs of consumers and users in a flexible and sustainable way. Increasingly customers are asking for sustainable products. They want to be able to see what the CSR efforts of a company are. Cost savings (such as 18 txtures number 3 autumn 2012

19 The CSR team of TenCate: André Oude Hergelink (corporate risk manager), Martin Gritter (corporate human resources manager), Roel Durlinger (corporate IT manager) and Jaap de Carpentier Wolf (corporate communication) reduced energy consumption), potential scarcity of raw materials, and benefits of image and reputation also play a role. Through end-user marketing, one of the cornerstones of the TenCate business model, the visibility of the sustainability aspects can be improved. Cost leadership is another cornerstone; TenCate considers CSR to be a cost-saving or at least a cost-neutral measure. At the same time CSR stimulates process and product innovation. TenCate is working further on technologies for processing natural, synthetic, bio-based, bio-degradable, renewable or secondary raw materials. This makes it easier to manufacture recyclable products with cleaner and more efficient production techniques (such as digital inkjet technology). Support with CSR The divisions of TenCate devote considerable attention to controlling the production processes and (separated) waste streams. They see that they can increase turnover through CSR. In certain divisions, sustainable purchasing in particular is of growing importance. The corporation s CSR team in which the corporate departments risk management, human resources management, information technology and communication work together supports the management regarding initiatives and projects in the area of CSR. The managers of these departments are responsible for implementing the corporation s CSR approach. So the corporate risk manager reports on the progress of risk management to the CFO, also covering the safety and environmental aspects of the operational management. The corporate HR director reports on social and economic aspects and assessment and reward systems to the CEO. The CSR team determines the aims and the programme each year and evaluates the results with the Executive Board and the (group) directorates. CSR Performance Ladder The divisions in the Netherlands are currently working on the implementation of the CSR Performance Ladder. This is a certification standard for management systems that shows CSR performances in a concrete and visible way. In the CSR Performance Ladder, sustainable enterprise is divided into five performance levels of demonstrable sustainable development. A company can request certification at one of these five levels. The CSR Performance Ladder is based on 33 critical performance indicators, which are defined in accordance with the guidelines of the Global Reporting Initiative for sustainability reporting. In a sustainability report, an organization records its social, environmental and economic performances. The critical performance indicators make it even clearer where TenCate stands worldwide when it comes to the environmental aspects of the production process, safety and well-being, human resources, value chain management and social commitment. In this way TenCate can measure and report on its social, ecological and economic performances more unambiguously and more comprehensively. Ecotools In 2012 TenCate in the Netherlands (and as far as possible worldwide) is going to establish a CO 2 footprint that is as exhaustive and unambiguous as possible for the processes within the TenCate divisions ( within the gates ). This will be done with the aid of the process ecotool, with which the environmental burden in the entire product chain can be mapped out and well substantiated. The ecotool is also an instrument that directs innovation towards paths that enable more sustainable solutions to be achieved. At the beginning of 2013 the pros and cons of this worldwide (trial) measurement will be assessed. With the aid of specific product ecotools, in 2012 the CO 2 footprint will also be defined for a growing number of TenCate products ( outside the gates ). As market leader TenCate is in the forefront of the endeavour of the textile industry to satisfy the needs of consumers and users in a flexible and sustainable way With the CSR Performance Ladder, TenCate can measure and report on its social, ecological and economic performances more unambiguously and more comprehensively With the process ecotool, the environmental burden in the entire product chain can be mapped out and innovation directed towards more sustainable solutions 19

20 Half-year figures TenCate presents results for first six months of 2012 Net profit of 15 million On Friday 27 July TenCate published its half-year figures, after having issued a press release one week earlier relating to the adjustment to the profit forecast for The 9% decrease in revenues to 540 million in the first half of 2012 resulted in a decrease in profit of 56%. TenCate had already made it known at the time of publication of the 2011 annual figures that the performance in the first half of 2012 would not be comparable to that in the first half of The first half of last year saw an exceptionally high level of sales of TenCate Defender M. It was thus already known that, as a result of the gradual withdrawal of US troops from foreign missions, sales of TenCate Defender M were expected to decline in The increase in sales in other markets and geographic areas would not for the time being be sufficient to offset this decrease. This anticipated decrease in US Army-related sales occurred in the second quarter; it proved, however, to be greater than expected. Projections of revenues for the 2012 financial year were largely based on forecasts issued by the US Army with regard to the purchase of TenCate Defender M products. US budget discussions and the forthcoming presidential elections resulted in lower defence expenditure, partly due to a delay in releasing projects and to the cutting back of inventories in the US market. The adjustment to the profit forecast has thus resulted mainly from the consequences of the cautious attitude suddenly adopted by the US defence market. No profit forecast for 2012 as a whole was issued in the reporting of the first half of Loek de Vries, President and CEO of Royal Ten Cate Defense exposure As a result of declining government budgets, the investment markets regard the 20 txtures number 3 autumn 2012

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