2009 - Jaarverslag

Evaluation of 2009 action plansEvaluation of action plans announced in 2009.◾ Reduction in debt positionWith regard to its financial policy, TenCate took the necessarymeasures at an early stage. The actions were concentrated on costcontrol and the reduction of investments. In April 2009, the policywas further refined and focused almost exclusively on optimisingcash flow. Although this policy was at the expense of profit, thecompany remained within the covenants agreed with the banks.The financial objectives were met in this regard.◾ Development of the geographic market for TenCate Defender MNew military orders for the TenCate Defender M product portfoliooutside America failed to materialise. The defence marketinternationally is not an open market. In some cases preferencewas given to local manufacturers. A more structural approach isbeing taken to the institutional defence markets outside the USas a result of the formation of the TenCate Defense & Tacticalbusiness unit in 2009 – as part of the TenCate Protective Fabricsmarket group. Sales in America showed unexpectedly stronggrowth.◾ Technological developmentTenCate established the corporate technology department in 2009.This department co-ordinates technological developments andco-operation with external parties. The initiatives led to a largenumber of interesting development projects, such as in the fieldof biopolymers, filtration and intelligent geotextiles (TenCateGeoDetect ® ). The IJkdijk project has now given rise to a follow-upproject.◾ Sensor technologyThe business development project relating to TenCate Geodetect ®has been established internationally and embedded within a newmarket activity in the TenCate Geosynthetics market group.◾ New generation of synthetic turfThe development of the weaving technology for synthetic turf aspart of the production of fourth-generation synthetic turf systemswas successfully completed. The first pilot pitch was laid at theend of 2009. This process is being followed up with a marketlaunch in 2010.◾ Strategic alliancesThe strategy of the TenCate Grass group of entering into allianceswith strategic market players was successfully continued with theacquisition of an interest in TigerTurf International ltd (Auckland,New Zealand).◾ Further expansion of market positions in AsiaThe expansion of the market position in protective fabrics in Asiawas to some extent delayed by the decline in market demand.The joint venture in Bangkok (Thailand) consequently showedslower growth. The new production site for the Geosyntheticsgroup in Zhuhai (China) took advantage of the strong demand inthe Asian market. There is also strong interest in composites.Attention remains focused on the further expansion of theportfolio. This process will take place gradually.◾ Value creation at Xennia TechnologyXennia made good progress in achieving its objectives. Xenniaoperates in markets that are set to grow substantially in the yearsahead as a result of the fast growth in inkjet technology forindustrial processes. Xennia develops solutions for a range ofapplications, such as the food and textile industry, the packagingindustry and the medical and electronics sectors.◾ Further development of the Global TenCate NetworkThe Global TenCate Network was rolled out further in the fieldof information technology. This network provides an easy andsecure way to co-operate digitally and conduct audio and videoconferences on the internal network. A substantial cost reductionwas also achieved by centralising and standardising hardware andsoftware. With the introduction of this Global TenCate Network,new techniques have been embraced such as Office Communicator,Voice-over IP and the replacement of analogue by digitaltelephony.Annual Report 2009 5