2009 - Jaarverslag

REPORT OF THE EXECUTIVE BOARD > Advanced Textiles & CompositesObtaining the above qualifications is important for future sales.TenCate is therefore continuing to invest even in the current economicconditions. Applications for TenCate composites in military aviationand the satellite industry have grown strongly. An important growthmarket is unmanned vehicles (UAVs) for military applications andthe satellite industry. These market positions were considerablystrengthened in 2009. As a result, the number of applications ofTenCate composites will increase further in the near future.OUTLOOK FOR TENCATE ADVANCED ARMOUR ANDTENCATE SPACE & AEROSPACE COMPOSITESTenCate participates directly and indirectly in tenders which can havean important influence on sales, both in the short and long term.There is constant uncertainty about the timing of the placing of theseoften large defence orders. Annual sales are therefore highlydependent on the number and size of projects and fluctuate as a result.No major programmes are scheduled in the short term of the kind seenin 2008, with the exception of the MATV programme (MTAP All TerrainVehicle). The timing of these potential sales is uncertain.the current year. The Boeing 787 Dreamliner completed its firstsuccessful test flight in December 2009. Sales in the second half of2010 could therefore receive a boost. On the other hand, uncertaintyremains with regard to the economic trend and the potential financingproblems of aviation companies in the acquisition of new aircraft.As a result of the cost measures already taken, TenCate will be ableto benefit as soon as the markets pick up. The expectations for themilitary aviation market remain positive, as do those for satelliteprogrammes.In Europe, where revenues are spread over several projects, the orderposition is strong. The market is expected to show a continued goodlevel of sales. This expectation is due to the fact that governmentbudgets for security are not decreasing as a result of the economicsituation and due the previously announced defence programmes forarmour and modernisation.The structural demand for TenCate composites in the aviation industryhas remained positive. That is partly a consequence of thequalifications secured by the company. However, it remains uncertainwhether and to what extent a recovery will be seen in the market inAnnual Report 2009 41