2012 number 3 autumn THEME: THE TENCATE VALUE PROPOSITION

2012 number 3 autumn THEME: THE TENCATE VALUE PROPOSITION

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 2012. 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

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

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

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

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 2010. 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 2012 6 txtures number 3 autumn 2012

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 2012. 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 www.tencateprotectivefabrics.americas.com protectivefabrics.asia@tencate.com www.tencateadvancedarmour.americas.com advancedarmour.asia@tencate.com 7

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

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

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

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

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

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 www.tencategrass.com www.cruyff-foundation.org 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

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

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. www.tencateadvancedarmour.com 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

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

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

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

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

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 2012. 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 2011. 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 2012. 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 2012. 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

in first half of 2012 defence market as being less promising. TenCate focuses solely on protection. Government budgets in this field are only a fraction of the overall defence budget. As a result of the successful growth of the US defence market for TenCate protective materials, the importance of this market to TenCate has increased sharply, which may lead to marked fluctuations in the revenue trend during certain periods. This is inherent in this project market. In view of the overall number of military personnel compared with other defence markets, the US market is of overriding importance. Although TenCate is also developing other geographic markets, this market will continue to be important in the future. A positive factor is that the political importance of a high level of protection enjoys a broad base of support in the US. Consequently, this will continue in the longer term to be an attractive market which attaches importance to innovation and progress also in the area of technology. TenCate is ideally placed to continue playing a major role in this market. Developments relating to the TenCate ABDS active blast countermeasure system, which are currently concentrated in the US, also contribute to the progressive position that TenCate occupies in this market. For this reason TenCate does not consider exposure to the defence market as regards the materials and systems that are being provided to be a threat. Its attention continues, however, to be focused on creating a sufficient spread of revenues. By developing product champions in other markets too, there will be an increasing spread of both geographic sales and sales to areas of application. Thought should also be given here to applications in industrial markets. The following can be seen as major growth markets for TenCate materials: Aerospace: fibre-reinforced composites Automotive: fibre-reinforced composites Oil and gas production / process industry: protective fabrics, composites Environmental market, water management and infrastructure: geosynthetics Emerging markets: geosynthetics and protective fabrics. Sharpening of strategic focus The half-yearly report also mentioned a sharpening of the strategic focus. On the one hand considerable cost reductions will be implemented and on the other hand greater focus will be applied to the development and growth of sales of composite materials. This market is showing significant growth and TenCate has a good technological base here. TenCate also intends to stimulate growth by working more closely with major players in the value chain. In the past, these have proved to be successful in certain areas, for example in the growth of the TenCate Defender M portfolio. The announced cost reductions (which have already been started) should make a positive contribution to the earnings performance of approximately 25 million on an annual basis. Innovation Innovation relating to the digitization of production processes, which is of importance to TenCate, is currently at the stage in which the first test production run within TenCate will take place in Nijverdal (Netherlands). Because the development costs associated with this were recorded as expenditure in the earnings statement, the result within the Other activities sector came under pressure. The digitization of processes is not only of importance to TenCate to achieve lower production costs in future, but also to be able to launch new products that will contribute to future revenue growth. 21

Technological innovation Opening ThermoPlastic Composite Research Center On Tuesday 26 June the ThermoPlastic Composite Research Center (TPRC) opened the new laboratory and visitors centre in Enschede. The centre has now taken on a physical form. TPRC focuses on research into thermoplastic composites for a range of applications, including the aircraft industry. Interest in thermoplastic composites and their potential applications is increasing substantially. TPRC comes at the right moment TPRC is an open cooperative association for research into and development of thermoplastic composites, and as such essentially differs from the TAPAS project with Airbus, where TenCate is also one of the partners. TAPAS is closed open innovation and its specific goal is to develop affordable primary aircraft constructions. TPRC focuses on applications outside aviation. Acceleration In 2007 TenCate initiated TPRC. In addition to TenCate, Boeing, Fokker Aerostructures and the University of Twente have been partners from the very beginning. The intention was to accelerate the scientific and technological development of thermoplastic composites for new applications. This applied in the first instance to aviation and also to end-user markets such as the extraction of oil and gas, the automotive industry, the medical sector, mechanical engineering, infrastructure, sport, and shipping. TPRC has recently been reinforced by the arrival of five new partners: Instron (test equipment), Dutch Thermoplastic Components (components based on TenCate materials for aviation purposes), Pinette Emidecau (thermoform moulding of plastic and composites), Italmatic (autoclaves) and AniForm (computer simulations of remodelling processes of fibre-reinforced composite material). So various parties work together in the value chain of thermoplastic composites: from raw material, via processing, production and use, to reprocessing. The partners can make use of one another s knowledge or research equipment and give one another feedback. Quicker, lighter and more efficient The use of thermoplastics in the aviation industry has substantially increased. Customers want products that are lighter, more costefficient and more environmentally friendly. Companies such as Boeing are looking for innovations that accelerate the development of thermoplastic composite technologies. They also want to make the production of thermoplastic composite products quicker and more efficient. Boeing knew that considerable knowledge regarding thermoplastic composites was available in the Netherlands. Such composites do have a disadvantage, as Winand Kok (manager, engineering of TenCate Advanced Composites) and Harald Heerink (general manager TPRC) explain. In the case of small series, the so-called non-recurring investments 22 txtures number 3 autumn 2012

In the new TPRC laboratory. From the right: Randy Wilkerson (manufacturing engineer Boeing), James Fox (associate technical fellow Boeing), René ten Thije (owner/director Aniform), Winand Kok (manager, engineering TenCate Advanced Composites), Harald Heerink (general manager TPRC), Remko Akkerman (technical director TPRC), Sjoerd Hooning (engineer DTC) and Sebastiaan Haanappel (researcher TPRC) significantly to putting the region on the international map. It makes the region attractive to foreign companies. are relatively high in comparison with traditional thermoset composites. The long development and payback periods are characteristic of aviation. That s why thermoset materials were originally chosen. Now that the aviation industry must scale up, it has turned its attention to thermoplastic composites, although its knowledge in this respect is limited. On the other hand, the automotive industry does have experience with quick automated production processes, and thermoplastic composites are eminently suitable for such purposes because they are chemically stable. You can achieve short cycle times by using them. Global network TPRC is one of the many research consortia in which Boeing takes part worldwide. The centre can therefore draw on a global network of research centres and consortia when it comes to exchanging information and embarking on joint research projects. Boeing Research & Technology (BR&T) provides the funding and technical expertise. As regards TPRC, the participating companies are also financiers. The bar is high: partners commit to five years as far as participation and funding are concerned. They must be prepared to share their knowledge and vision of the future with one another. Furthermore, they must convince the consortium of their positive intentions and added value. The partners that we bring in have certainly given it thought. Interest is growing left and right that s momentum! On the map The new laboratory and visitors centre were opened on Tuesday 26 June. Among the many present were William Gerry (chairman of the board of TPRC and representative of Boeing), Ed Brinksma (Rector Magnificus University of Twente), Loek de Vries (president and CEO of Royal Ten Cate) and Wim Pasteuning (vice-president Fokker Programs). In the opinion of Theo Rietkerk, member for Economy of the Provincial Executive for the province of Overijssel, the new centre fits in well with the top High Tech Systems & Materials sector. He embraces this form of cooperation in innovation in the value chain. TPRC contributes Golden triangle According to Rector Magnificus Ed Brinksma, TPRC serves as a motor for innovation. Here we can get to grips with the golden triangle, says Brinksma. Government, industry and knowledge institutes come together in this initiative. This ecosystem creates innovation and that will have a strong impact on the economy of the region. Boeing has a long rich history in cooperating with suppliers and customers in the Netherlands, says Peter Hoffman (director global R&D strategy of Boeing). We value Dutch technical expertise and this initiative. Dutch industry and academia are helping us to move ahead, with innovative aerospace technologies that will enable us to improve our global competitive position. Partners within TPRC operate in the value chain, commit to funding for five years, and share their knowledge, vision of the future and research equipment The aviation industry wants to accelerate the development of thermoplastic composite technologies and make the production of thermoplastic composite products quicker and more efficient Dutch industry and academia are helping Boeing to improve its global competitive position through innovative aerospace technologies www.tprc.nl info@tprc.nl 23

Sustainability / Environment TenCate Advanced Composites at Farnborough International Airshow Aviation industry meet From 9 to 15 July, TenCate Advanced Composites staffed a stand at the Farnborough International Airshow in England, a seven-day trade exhibition for the military and commercial aerospace sector. The division enjoys a good reputation in the aviation industry, and through this form of end-user marketing it wants to present itself more emphatically as an important player in the value chain. Boeing sold 150 planes of two versions of the 737 to United Airlines alone at the Farnborough Airshow (picture: Boeing) 24 txtures number 3 autumn 2012

The Farnborough International Airshow is a seven-day trade exhibition for the military and commercial aerospace sector, and it attracted systems suppliers (tier 1), suppliers of parts and components (tiers 2 and 3), engineering companies, motor manufacturers such as Rolls Royce, and aircraft manufacturers (OEMs) such as Boeing and Airbus. This is the platform where the latest technological developments are showcased, useful contacts are made or maintained, and aeroplanes and helicopters are ordered and sold. In this last respect, Airbus did good business with its A320, Boeing sold 150 planes of two versions of 737 to United Airlines alone, and AgustaWestland sold over thirty twin-engine helicopters. So it s definitely the place to be for players in the value chain such as TenCate Advanced Composites and significantly complements the periodic contacts with the purchasing and technical managers of systems suppliers and OEMs. After all it s here where the CEOs of Airbus and Boeing can be found and here where their vice-presidents free up a good hour and a half for a talk at your stand. takes place once every twelve to thirteen years. In the case of the Boeing 777, over ten key changes are now being investigated, including a wing structure reinforced with carbon fibre and greater horizontal stabilization. The latter would mean more weight, so it would be better to replace traditional materials with our composites. Normally the purchaser is your contact; at Farnborough you have contacts on a high and more strategic level. You re sitting down at the table with the people who make the decisions. End-users This is the place where all the end-users in the aerospace market congregate the place for end-user marketing, says Dave Clarke (global group director TenCate Advanced Composites). And we want to be seen as an important part of the value chain by end-users too. To gain a good feeling and a good idea of what is happening in the market, you have to see the latest developments and aircraft. Standing just metres away from the Airbus A380 and Boeing 787 and looking at the wing leading edge and radome respectively the sections made of our material makes you feel proud. www.tencateadvancedcomposites.com aerospacecomposites.europe@tencate.com aerospacecomposites.america@tencate.com Reputation TenCate Advanced Composites enjoys a very good reputation in the aircraft industry. TenCate is world market leader when it comes to radomes for aviation. This part of the Boeing 787 Dreamliner for example is based on TenCate composites. Thermoplastic composites are becoming increasingly accepted and the potential for growth is considerable. More and more frequently composite materials from TenCate are being qualified for, and applied in new aircraft programmes and so-called mid-life updates. From the marketing technical perspective, these are important stages, as Frank Meurs (corporate director TenCate Advanced Composites EMEA) explains. The basic structure of an aeroplane without modification gives thirty to forty years service. A redesign Qatar Airways showed its first Boeing 787 Dreamliner at Farnborough 25

Safety / Protection TenCate Defender M portfolio EXPANDED AND IMPROVED TenCate Defender M expands product portfolio TenCate Defender M strikes an optimum balance between protection, garment life, comfort and cost. Since its introduction in 2007 the material has saved a great many lives. TenCate Defender M is regarded as the new standard for the heat and flame-retardant uniforms for military personnel and police. Wearer trials are currently taking place at various end-users worldwide. The requirements of ready-to-wear clothing manufacturers and end-users are translated into higher levels of protection and comfort. TenCate is also responding to the trend towards a lower weight in this flame-resistant clothing. The advance of TenCate Defender M continues. TenCate Defender M is regarded as the US standard for uniforms with flame-retardant (FR) protection. Since 2007 TenCate Defender M fabrics have repeatedly been selected by the US Army and the US Marine Corps for ground troops in the FR Army Combat Uniform programme and the Marine Corps FR Organizational Gear programme. The greater part of the overall production required to meet the US demand for TenCate Defender M fabrics is subcontracted. This involves more than 10,000 jobs in the United States. Balance As product champion, TenCate Defender M strikes an optimum balance between protection, garment life, comfort and cost. This leads first and foremost to a major reduction in the number of life-threatening burns. Since its introduction in 2007 it has saved a great many lives. The material has developed into the fabric of choice and has set the new standard for fire-resistant protection. And the rise of TenCate Defender M continues. Across the world wearer trials are taking place (see page 28). The requirements of various end-users are being met by means of end-use market management and in close collaboration with the end-users themselves. This will lead to expansion and strengthening of the TenCate Defender M platform. The global sales strategy focuses on expansion in both a geographic respect and in other applications. Brand awareness Brand awareness is growing: People are not asking for a flame-retardant fabric, but for TenCate Defender M, Willy van Kampen and Tatjana Topalovic point out. They are end-use market manager, military & police, and manager, R&D respectively at TenCate Protective Fabrics EMEA. Willy van Kampen worked as an officer in the Dutch armed forces for twenty-seven years, nine of which with the army and eighteen with the air force. He knows the conditions in which military personnel have to operate, is familiar with the culture and speaks their language; he can help users to formulate their requirements. Decision-making relating to the purchase of new defence materiel is linked to budgets, but goes hand in hand with the defining of specifications. That is why they intend to visit the customer or the specifiers more frequently, together with a sales manager. In those talks they will seek to have the specifications included in the tender. Two trends Two trends are becoming apparent: the need for lower weight while retaining existing 26 txtures number 3 autumn 2012

characteristics and the demand for system solutions. Lower weight increases wearer comfort. This is particularly agreeable in countries with a hot climate, for example in Africa. In such countries wearers are delighted with the efforts of TenCate to develop clothing that protects them and has a long garment life, and yet is lighter in weight. A solution-oriented system approach plays a key role in product development. We want to be able to provide a total solution for every level of clothing. You currently see that although a soldier is wearing a flame-retardant uniform he doesn t have a flame-retardant antiballistic vest. That is the reason for the trend towards system solutions, of which a vest and underclothes also form a part. A military clothing system is made up of three layers: a moisture-regulating base layer, a mid layer that regulates body heat and an outer shell that protects against water, wind and cold. The US Army for example has seven different layers of clothing: lightweight undershirt and long underpants, mid-weight shirts and underpants, a high-loft fleece jacket, a wind jacket, a soft-shell cold weather jacket and trousers, an extreme hot/cold jacket and trousers, and an extreme cold weather parka and trousers. Expansion In the context of product differentiation, TenCate Protective Fabrics is now also engaged in expanding to knit fabrics, coated materials and laminates (fabrics with an extra layer to provide for example water resistance). This is in line with the system solutions approach. TenCate Defender M is a platform on which we intend to move to ever higher levels. For this you need feedback. One of the aspects of the feedback is related to the requirement of end-users for laminates of a lower weight. You have to think out of the box. The most important thing for army and police are in particular those characteristics in which we stand out from other fabric suppliers. You have to constantly keep pushing new developments through the pipeline. Collaboration TenCate Protective Fabrics and TenCate Advanced Armour collaborate in the field of personal protection by offering system solutions, such as heat and flame-retardant ballistic vests with soft and hard inserts. During the Eurosatory exhibition held recently in Paris, together with a ready-to-wear clothing manufacturer, we showed a ballistic vest with a soft armour solution and an outer shell of TenCate Defender M. One half had been produced with a camouflage pattern, the other was transparent. This gave people a good idea of the structure of the layers; it was very well received. You can show the customer a total solution. This has now resulted, after an initially slow start, in TenCate Defender M acquiring an excellent position, particularly in the United States and increasingly in Europe. We set the standard, leaving our competitors behind. We can now take the lead and stay ahead of them. TenCate Defender M is being subjected to wearer trials in over ten countries Meeting the needs of end-users will lead to expansion and strengthening of the TenCate Defender M platform With its solutions-oriented system approach TenCate is responding to trends such as lower weight and the demand for system solutions www.tencateprotectivefabrics.europe.com protectivefabrics.europe@tencate.com protectivefabrics.america@tencate.com 27

Safety / Protection TenCate Defender M portfolio subjected to wearer trials Geared to protect In the US and in other countries there is a growing need for both cheaper and better protection solutions. Materials that satisfy the specifications, such as TenCate Defender M, are invariably subjected to extensive wearer trials by army and police units. Outside the United States at least ten new wearer trials for TenCate Defender M are being planned by army units, including New Zealand, Columbia, Mexico and Thailand. The Canadian Special Forces too have selected TenCate for their tender; the army is currently evaluating wearer trials of a variety of clothing. An important tender was recently won in Poland. Last year, after an earlier order, TenCate supplied 10,000 additional uniforms for an extended wearer trial of army uniforms by the Australian armed forces. Trials for qualification by the Indian Ministry of Defence and the Ministry of Internal Affairs for use by the army, paramilitary and police corps have so far exceeded expectations. After the British Royal Air Force opted for TenCate Defender M, the Royal Navy too is looking at the dark blue versions of TenCate Defender M. In Italy a large-scale wearer trial is taking place; the army is testing 7,000 uniforms. TenCate Protective Fabrics EMEA earlier received an order for the delivery of inherently flameretardant TenCate Defender M fabric for the Italian Soldier Modernization programme (Soldato Futuro). Likewise, in Finland and Luxemburg the military are engaged in practical tests, as are the Dutch and Norwegian armies. Delighted with their choice Norwegian Marines have now been wearing uniforms with TenCate Defender M for the past eighteen months and the authorities are considering extending this to other army units. Two weeks after a ready-to-wear clothing manufacturer from Bahrain came across TenCate Defender M at the SOFEX 2012 exhibition in Jordan, the police in Bahrain started wearing clothing based on this 28 txtures number 3 autumn 2012

material. There are plans to introduce a lighter version of this material, currently under development, for the armed forces. Virtually every wearer trial requires the clothing to be produced with its own camouflage pattern. This is an additional argument for TenCate: all camouflage patterns can be printed on the basic material. Police and firefighters The TenCate Defender M portfolio now also has references from police corps in South Africa, Germany, the Netherlands and the Czech Republic, where another tender has recently been secured. The police in Rio de Janeiro (Brazil) have conducted two wearer trials; the specifications will be prepared shortly. Two new wearer trials are coming up. It will not be long before the Mexican federal police and police in Nuevo Leon conduct tests on TenCate Defender M. In Bogota (Columbia) the riot police have now started wearer trials. A third potential market is the firefighting sector. TenCate Defender M has patented, inherently flame-retardant characteristics which cannot be washed out and which do not wear out. This is ideal for use as a thermal liner for firefighters turnout gear. In South Africa the firefighters who combat forest fires are wearing clothing based on TenCate Defender M in the fire station. www.tencateprotectivefabrics.com protectivefabrics.europe@tencate.com Picture: Ruud Mol / Koninklijke Marine (NL) 29

Public Affairs / Government Relations Ten Cate USA works on relations management at federal government In government circles Through road shows and presentations, TenCate informs interested parties about its vision, mission, products and value proposition. It s a matter of Protecting people providing the maximum protection. Through discussions with trade associations and in personal contacts with members of Congress and others, TenCate endeavours to have a detailed description of protective materials written into specifications. In this respect the companies in the United States are supported by the TenCate Office of Public and Government Affairs in Washington DC, which ensures mutual understanding and provides policy makers with information on the company, the products, and legislation and regulations that have influence on the company s activities. On the steps of the Longworth Congressional Office Building in Washington with Congressman Larry Kissel (front row, second from left) and Ruth Stephens, executive director of the United States Industrial Fabrics Institute (USIFI) 30 txtures number 3 autumn 2012

The markets in which TenCate operates are often regulated by government authorities or (government) bodies on the basis of legislation and regulations. For TenCate these bodies and customer representatives are the most important target groups. They generally determine the specifications for protective materials. It is important to be able to influence the adoption or amendment of these specifications, norms or standards. This is achieved through taking part in discussions with trade associations and through personal contacts, which enables the company to respond to such needs as recycling, reducing CO 2 and limiting costs in processing techniques. Costcutting systems offer positive results, especially in times of government budget cutbacks. That s why sustainable, social and ethical criteria are becoming increasingly important in end-markets. TenCate makes these aspects part of the total value proposition. Consequences The anticipated fall in the American government budgets in particular may have consequences for the sale in the US of ballistic materials (personal and vehicle protection), protective fabrics (army, industry and fire service) and geosynthetics (construction, road building, environment and infrastructure). The Executive Board and the business development manager provide insight into the value proposition of TenCate through road shows and presentations not only in the Netherlands and the US, but also in countries such as England, France and Germany. TenCate is protecting people, offering maximum protection to those who protect us and our living environment. Business relations TenCate is market and technological leader across a number of US industries and, as such, actively participates in several trade associations and also takes part in meetings with key American federal policy makers. This enables TenCate to maintain existing and develop new relations, stay abreast of pressing issues that member companies face, and continue to build a significant presence in Washington DC. TenCate has an office (Public and Government Affairs) in the capital, which functions as a branding and marketing platform for all the TenCate companies in the United States. This Office of Public and Government Affairs works to support the federal efforts of each business group of TenCate, serving as a force multiplier to strengthen the bonds between the corporation and important US government officeholders and departments. Conferences Earlier this year officials from various TenCate business groups attended several trade association conferences in Washington DC. Furthermore, talks with members of Congress and policy makers were on the agenda. TenCate officials also attended legislative and executive branch meetings with the US Industrial Fabrics Institute, a component of the Industrial Fabrics Association International. John Blackmon (sales manager Defense & Tactical division of TenCate Protective Fabrics) participated in meetings of the Warrior Protection and Readiness Coalition, which advocates the best protection for American troops. The Coalition supports a growing network of companies in this business sector. Capitol Hill In April John Henderson (senior vice-president TenCate Geosynthetics) attended the Hill Days of the Geosynthetics Materials Association: two lobby days on Capitol Hill. George Comer (sales manager Commercial Fabrics division of TenCate Protective Fabrics USA) attended congressional meetings of the Fire & Emergency Manufacturers and Services Association (FEMSA). FEMSA represents more than 130 companies that supply products and services to fire fighters and relief workers worldwide. In all cases the representatives of TenCate were joined by their colleagues Tara Glover (vicepresident Public and Government Relations) and Dan Trope (manager Public Affairs). All told, in less than two months TenCate met with nearly 25 members of Congress (representing key states such as Georgia, North Carolina, Tennessee, New Jersey, New York, California, Ohio and Indiana) and their staffs, and educated them on the company, the products, and the legislative and regulatory issues affecting company activities. The meetings and personal talks focused on pertinent developments and policies under consideration within the federal government in the areas of trade, defence, homeland security and highway construction. Sustainable, social and ethical criteria in end-markets are part of the total value proposition of TenCate The Office for Public and Government Affairs in Washington DC functions as a branding and marketing platform for all the TenCate companies in the United States Staff of TenCate in the US educate members of Congress and their staffs on the company, the products, and legislative and regulatory issues affecting company activities www.tencate.com us.office@tencate.com 31

Sustainability / Environment J&E SPORTS INTRODUCES SEAL TECHNIQUE FOR SYNTHETIC TURF PITCHES Making synthetic turf pitches durable Thanks to the patented 3D synthetic turf clumps technology from TenCate Grass and the seal technique from J&E Sports, synthetic turf pitches have now become fully recyclable. This is a major step forward in further increasing the durability of synthetic turf. Heracles Almelo and PEC Zwolle will set the ball rolling. Interest in green fields is growing in both the Netherlands and other countries. Material DNA Previously the strips of a synthetic turf pitch were often sewn together, a tricky and time-consuming task. The strips with the lines on them usually had to be glued on. With the new method J&E Sports uses a strong hotmelt, which has the same material DNA as the synthetic turf. This radiates less heat, thus ensuring that fibres and backing no longer melt or deform and the thickness of the adhesive can be regulated. The seal technique means that an efficient solution has been found to the sustainable installation of recyclable strips of synthetic turf. Starting in the 2012-2013 season, PEC Zwolle and Heracles Almelo will each be playing on a durable synthetic turf pitch that was produced using the patented 3D synthetic turf clumps technology from TenCate Grass. This synthetic turf pitch is fully recyclable. It will be marketed globally as the MX system by GreenFields, a TenCate subsidiary. Thanks to the new seal technique from J&E Sports this type of synthetic turf pitch can be rapidly installed to provide a seamless, durable field, which will remain fully recyclable. The new method, Sealen from J&E Sports, was introduced at the installation of the synthetic turf pitch in Almelo. This new pitch consists of tightly packed grass clumps, made up of fibres of various structures and composition. The advanced weaving technology prevents the formation of stripes, thus giving the pitch a very natural appearance. TenCate weaving technology makes it easier to use exclusively raw materials of the same material type. The demand for durable and recyclable synthetic turf systems is increasing. Experiences during the installation of the new synthetic turf pitch at Heracles Almelo and PEC Zwolle are positive. At J&E Sports requests have now been received from both the Netherlands and abroad for application of the new seal technique. www.tencategrass grass.europe@tencate.com www.jenesports.com The Heracles Almelo squad training on the new synthetic turf pitch 32 txtures number 3 autumn 2012

Sustainability / Environment TenCate LEADING SUPPLIER TO NoRTH AmeriCAN satellite industry At home in space TenCate Advanced Composites develops and manufactures thermoplastic and thermoset composite materials, connections and systems for the space and aerospace industry. Thermoplastics are increasingly being used in the aircraft industry. Thermoset is principally used in the military aviation sector and the aerospace industry. In space this involves for example satellites, reconnaissance vehicles and telescopes. TenCate is the major supplier of composite prepregs to the North American satellite industry. In space exacting demands are made of material characteristics. As space and satellite programmes are hugely expensive, compromises in the choice of materials are inconceivable. The TenCate composites used in these satellite applications are dimensionally stable, at temperatures ranging from +121 C to -121 C; they are resistant to atomic oxygen, have low outgassing and high rigidity; they are also extremely light and moisture resistant and may be heavily loaded. Producers of radomes require composites that are non-conductive (dielectrically pure). TenCate Advanced Composites has carbon fibre-free chambers at its disposal in the US. Use in satellites Thermoset composites are used in a number of satellite components, as the illustration on the following pages shows. Solar panel structures TenCate composites are used for the construction of solar panels. Booms, trusses and structural tubes and beams there are a variety of satellite components that are connected with among other things the sunshield, electronic equipment and propulsion. Reflectors and antennas the satellite makes use of a particular method of communication by transmitting and receiving signals. Bus structure the bus structure of a satellite contains the computers, instruments and fuel tanks and represents the structural part of the satellite. www.tencatespacecomposites.com spacecomposites.america@tencate.com Continued on page 34 33

Thermoset composites in satellites Continued from page 33 Solar array structures Booms, trusses and structural tubes / beams 34 txtures number 3 autumn 2012

Refl ectors and antennas Bus structures 35

Sustainability / Environment TenCate Polyfelt Geolon PET for hydraulic engineering Expansion port of Ostend The expansion of the port of Ostend is a fact. Whereas until a short while ago the port could accommodate only ships of up to 120 metres, now vessels of up to 200 metres can moor there. Thanks to good teamwork, TenCate Geosynthetics could supply customized material developed for this project in a short space of time. 36 txtures number 3 autumn 2012

PRODUCT TenCate Polyfelt Geolon PET woven polyester geotextile MARKET civil engineering PROCESS standard or customized product is supplied and installed on site TECHNOLOGY weaving and coating technology With an eye to the further economic development of the port and the associated infrastructure, the expansion was definitely necessary. Part of this related to the construction of a new, more direct navigation route, which meant the existing groynes had to be moved. In view of the soft substratum the contracting consortium decided to reinforce the seabed on site with geotextiles from TenCate. This seemed to be the most cost-effective and sustainable solution in this situation. Texion Geosynthetics, the exclusive agent of TenCate Geosynthetics in Belgium, brought the the designers and contractors into contact with TenCate. Through the concerted efforts of the production, development, planning, purchasing, laboratory and quality departments, 20,000 m 2 of TenCate Polyfelt Geolon PET, which were specifically developed for this project, could be supplied. A team of specialists from the construction department of TenCate Geosynthetics travelled to Ostend to supervise the manufacture of the various fascine mattresses. TenCate Polyfelt Geolon PET is a woven polyester geotextile for long-lasting ground reinforcement. It can last up to 100 years which makes it an exceptionally costeffective product. Depending on the project demands, a customized product can be provided. TenCate Polyfelt Geolon PET is eminently suitable for underwater applications, because the textile sinks, making for easy installation. www.tencategeosynthetics.com geosynthetics.europe@tencate.com 37

Sustainability / Environment TenCate realizes water savings at production locations in Nijverdal Sustainable water management Responsible and sustainable water management is very important to TenCate. Thanks to successive investments, use of the groundwater in Nijverdal has dropped by 500,000 m 3 (a reduction of 30%) over the past five years. And with its own water purification installation, the degree of pollution of the process water has been cut by 70% in five years. TenCate reuses the groundwater in Nijverdal twice. TenCate pumps up groundwater from the available sources on site for the production processes in Nijverdal. The groundwater pumped up is transported through a system of water pipes for the purpose of deferrization in the preliminary treatment installation of TenCate. In this way, the water can become first cooling water, then preheating water and finally process water. The process water is used by all the production locations of TenCate via its own system of water pipes. Reused twice Since 2007 up to 50% of this quantity of water has been sustainably reused: first as cooling water at Ten Cate Thiolon and then as preheated process water at TenCate Protective Fabrics. This saves considerable amounts of energy. The used process water is pre-purified in the company s own anaerobic wastewater purification installation. Finally the pre-purified process water is transported through a system of municipal pipes for approximately 100 metres as the crow flies to the sewage treatment system, where the last round of purification takes place. Afterwards it is released as surface water into the river De Regge. Investments and systems The necessary investments related to the modification of the internal systems at TenCate Protective Fabrics ( 370,000) and a new cooling system at the grass yarn production facility ( 800,000). The result is that in comparison with five years ago the use of groundwater has fallen by 500,000 m 3 a year a reduction of 30%. The anaerobic wastewater purification installation required an investment of 2.3 million resulting in a 70% reduction in the degree of pollution of the process water in comparison with five years ago. The investments are partly the result of the energy-saving aqua (ESA) project of TenCate in Nijverdal. The underlying reason was conservation, the limited cooling capacity and the desire to continue to comply with environmental legislation. Moreover, TenCate wants to show the outside world that conservation is of paramount importance to us. On 30 January 2008 the new wastewater purification installation at TenCate in Nijverdal became operational. This was the first anaerobic purification plant at a Dutch textile company. 38 txtures number 3 autumn 2012

txtures in 2012 Outlook txtures 4 / winter 2012 Among the articles in the winter edition of txtures in 2012 you can expect (with the usual proviso) the following: Sustainable water management 2 TenCate Union Protective Fabrics in Bangkok (Thailand) was the first of about 100 companies that have signed a covenant with all interested parties in the immediate living environment concerning the use and reuse of water. A delegation of these stakeholders visited the company on 6 August. Ballistic protection Daimler Zetros Results third quarter 2012 Reprocessing composite materials TenCate Advanced Composites is realizing considerable savings in the costs of its waste streams. The highgrade composite waste that is offered is eminently suitable for reprocessing. Gains for material and environment. On Friday 26 October TenCate will publish the results for the third quarter of 2012. In this edition the background to the results achieved. TenCate Advanced Armour has been selected by Daimler AG as supplier of ballistic protection for the Daimler Zetros. This type of truck will be delivered to the German Bundeswehr. TenCate Advanced Armour has developed the armour kits (a package of protective panels) in close cooperation with Daimler. The order is an indication of the potential for TenCate Advanced Armour to deliver high-grade armour solutions to customers in the automobile sector who make stringent demands in terms of quality. Volume 47 - number 3 - autumn 2012 txtures is the corporate review of Royal Ten Cate for its employees and external stakeholders. The magazine is published four times a year in a Dutch and English version. Reproduction of articles or parts of articles is authorized, providing the source is acknowledged and that passages and quotations are not placed in a different context. Editor s address Translations Design Printing Royal Ten Cate Gay Howells DeNK creatieve vrijdenkers LulofDruktechniek Coen Heldeweg (chief editor) Janice Collins Almelo Almelo phone +31 546 544 305 c.heldeweg@tencate.com 39

Making a difference in the line of duty In protecting helicopters, every kilogram matters. The high level of protection required is achieved by using the most lightweight materials available, such as TenCate Liba and TenCate Ceratego. These EN9100 certified aircraft solutions result in a high multi-hit capability, protecting the helicopter, crew and passengers against the effects of multiple projectiles or fragments. Thanks to extensive experience in aerospace composite solutions, aircraft armour from TenCate Advanced Armour is designed to make a difference in maximum protection, with only a minimum of weight added. www.tencateadvancedarmour.com