2008 - TenCate

ANNUAL REPORT 2008
Royal Ten Cate
Sustainability. The most natural thing in the world.

MATERIALS THAT MAKE A DIFFERENCE
We want to be known for the difference we make
Our materials are at the cutting edge of
textile technology, chemical technology
and material technology.
Our clear vision, mission and strategy give direction to
the company. The strategy is focused on value chain
management. The TenCate business model underpins
the day-to-day structuring, implementation and operationalisation
of the business. Our challenge lies in striking the
ultimate balance between the four cornerstones.
TenCate supplied composite material as part of its
sponsorship of the solar-powered Twente One (21) car
produced by the University of Twente.
Every two years, a team of students takes part in the World
Solar Challenge in Australia. This solar race will be held for
the 10th time in October 2009. The Twente solar car will
once again have the starting number 21, Twente One.
Our systems and materials generate
added-value solutions.
© copyright Royal Ten Cate
Our customers make a difference with our
materials and systems. This generates
growth and continuity.
Commercial overview and profile

COMMERCIAL OVERVIEW
as at 1 January 2009
The TenCate sectors are subdivided into market groups. Each market group is a cluster of operating companies which co-operate intensively
in research & development, production, marketing and sales.
An overview of the legal entities which make up the company can be found on the inside back cover.
ADVANCED TEXTILES & COMPOSITES SECTOR
PROTECTIVE FABRICS
Protective and safety fabrics for industry,
services, firefighting and defence.
◾ TenCate Protective Fabrics Americas
◾ TenCate Protective Fabrics EMEA
◾ TenCate Protective Fabrics Asia
GEOSYNTHETICS & GRASS SECTOR
GEOSYNTHETICS
Synthetic fabrics, non-wovens and grids
for infrastructure and civil engineering.
◾ TenCate Geosynthetics Americas
◾ TenCate Geosynthetics EMEA
◾ TenCate Geosynthetics Asia
◾ Geofabrics Australasia Pty Ltd,
Australia (joint venture)
Royal Ten Cate Annual Report 2008
OUTDOOR FABRICS
Protective fabrics for outdoor applications.
◾ TenCate Outdoor Fabrics Europe
INDUSTRIAL FABRICS
Synthetic fabrics, non-wovens and grids for
agriculture and horticulture, the environmental
sector, the construction industry, water
management and recreation.
◾ TenCate Industrial Fabrics North America
◾ TenCate Industrial Fabrics EMEA
◾ TenCate Industrial Fabrics Asia
SPACE & AEROSPACE COMPOSITES
Advanced composites for aerospace and
industrial applications.
◾ TenCate Advanced Composites Americas
◾ TenCate Advanced Composites Europe
GRASS
Synthetic turf components and systems for
top-flight sports, recreation and landscape
projects.
◾ TenCate Grass Americas
◾ TenCate Grass EMEA
◾ TenCate Grass Asia
◾ Edel Grass, The Netherlands (joint venture)
◾ GreenFields, The Netherlands (participation)
TenCate has production sites and sales offices in the following countries (◾): TECHNOLOGIES SECTOR *
INKJET TECHNOLOGY
◾ Xennia Technology Ltd, United Kingdom
Specialist inkjet technology for industrial
applications.
* Consolidated with the figures of the Advanced
Textiles & Composites Sector

ARMOUR COMPOSITES
Advanced composite and ceramic materials for
the protection of police, army, air force, navy and
civilian service personnel, vehicles and vessels.
◾ TenCate Advanced Armour Americas
◾ TenCate Advanced Armour EMEA
TECHNICAL COMPONENTS/
HOLDING & SERVICES SECTOR
TECHNICAL COMPONENTS
Technical rollers and components, particularly
for printers, copiers, fax machines, postal sorting
machines and ATMs.
◾ TenCate Enbi North America
◾ TenCate Enbi Europe
◾ TenCate Enbi Asia
HOLDING & SERVICES
◾ Koninklijke Ten Cate nv, Netherlands
PROFILE
Royal Ten Cate (TenCate) is a multinational
company which combines textile technology
with chemical processes in the development
and production of functional materials. Various
market applications have been created around
this technological basis.
TenCate occupies leading positions worldwide
in its core markets. Within its strategic core
activities, TenCate presents itself as a developer
and producer of materials with distinctive
characteristics. The company structures product
and process development and stimulates
technological innovation in order to maintain
leading market positions. TenCate develops
customer-specific solutions jointly with partners
and end-users. The system approach plays a key
role.
Geographic breakdown of sales in 2008
in per cent
◾ By destination
◾ By origin
50
45
40
35
30
25
20
15
10
5
0
NETHERLANDS
BELGIUM
GERMANY
AUSTRIA
FRANCE
UK
ITALY
OTHER EUROPE
OTHER EU
SPAIN
MIDDLE EAST
TenCate materials are mainly used for:
◾ safety and protection;
◾ space and aerospace;
◾ infrastructure and the environment;
◾ sport and recreation.
TenCate employs around 4,500 people worldwide
and strives to operate in an ethically and socially
responsible way. On this basis it encourages
its employees to be enterprising, flexible and
creative, thereby demonstrating its aim of
achieving progress and sustainability for all
stakeholders.
REST OF THE WORLD
ASIA
CENTRAL AND
SOUTH AMERICA
USA + CANADA

Annual Report 2008
Royal Ten Cate
Commercial overview Inside cover
Profile Inside cover
Financial highlights 3
Key developments in 2008 4
Evaluation of action plans 6
Actions for 2009 8
Vision, mission, strategy and objectives 9
Foreword by the Chairman of the Executive Board 11
The TenCate share 13
Sustainability 16
Report of the Supervisory Board 18
Corporate governance 22
The Boards 24
Report of the Executive Board 28
General 28
Financial performance 29
Risk management 33
SWOT analysis 34
Information technology 41
Human resources management 42
Socially responsible enterprise 44
Post balance sheet events 47
Outlook 47
Statement from the Executive Board 48
Sector reports 50
Advanced Textiles & Composites 52
Geosynthetics & Grass 60
Technologies 65
Technical Components / Holding & Services 68
Financial statements 2008 73
Other information 136
Ten-year summary 140
Operating companies, associated companies and other interests Inside cover
Colophon Outside cover

EBITA AND NET INCOME
in millions of euros
◾ Operating result before amortisation
(EBITA)
◾ Net income *
108
2
96
84
72
60
48
36
24
12
0
2004 2005 2006 2007 2008
PER SHARE DATA
in euros
◾ Net income *
◾ Dividend
2.7
2.4
2.1
1.8
1.5
1.2
0.9
0.6
0.3
0.0
2004 2005 2006 2007 2008
* Net income before amortisation and excluding
income from the divestment of operations and
exceptional items.
Royal Ten Cate Annual Report 2008
REVENUES PER SECTOR
in millions of euros
◾ Protective Fabrics & Advanced Composites
◾ Geosynthetics & Grass
◾ Technical Components/Holding & Services
540
480
420
360
300
240
180
120
60
0
72
63
54
45
36
27
18
9
0
– 9
2004 2005 2006 2007 2008
EBITA PER SECTOR
in millions of euros
◾ Protective Fabrics & Advanced Composites
◾ Geosynthetics & Grass
◾ Technical Components/Holding & Services
2004 2005 2006 2007 2008

Financial highlights
in millions of euros, unless stated otherwise
PROFIT AND LOSS ACCOUNT 2008 2007
Revenues 1,032.6 886.0
Operating income before depreciation and amortisation (EBITDA) 126.1 102.1
Operating result before amortisation (EBITA) 95.4 73.0
Operating income before amortisation as % of revenues (EBITA margin) 9.2% 8.2%
Operating result (EBIT) 83.8 69.4
Net income
Net income before amortisation and excluding result of divestment of
51.1 46.4
operations and exceptional items (cash earnings) 62.7 46.6
CONSOLIDATED BALANCE SHEET AND RETURN
Net capital employed (year-end) 746.6 585.0
Return on net average capital employed 13.4% 13.1%
Net interest bearing debt (year-end) 331.1 230.4
CONSOLIDATED CASH FLOW
Cash flow from operating activities 48.7 27.8
Investments less divestments of fixed assets – 35.2 – 51.8
Free cash flow 13.5 – 24.0
Balance of acquisition / disposal of operating companies and participating interests – 88.1 – 175.1
OUTSTANDING SHARES (X 1,000)
Number of outstanding shares at year-end 23,967 23,556
Weighted average number of outstanding shares (before dilution) 23,426 22,797
Weighted average number of outstanding shares (after dilution) 23,495 22,967
PER-SHARE DATA
Net income
Net income before amortisation and excluding result from divested operations
2.18 2.04
and exceptional items (cash earnings) 2.68 2.04
Diluted net income 2.17 2.02
Diluted cash earnings 2.67 2.03
Dividend per share 0.85 0.80
Equity 15.31 13.16
EMPLOYEES
Number of staff years at year-end 4,437 4,020
– of which in the Netherlands 931 975
Royal Ten Cate Annual Report 2008 3

Key developments in 2008
◾ TenCate exceeded the €1 billion revenue
level in 2008, a milestone which was
forecast earlier in the year. During the
reporting year, TenCate was relatively
unaffected by the imminent economic crisis.
Revenue growth amounted to 17%,
including 5% on an organic basis.
◾ EBITA increased by 31% to €95.4 million.
Acquisitions contributed 36% to the
growth. An important positive contribution
was made by the fast-growing revenues
in the defence market. The
Geosynthetics & Grass sector also
showed a good performance, under difficult
external conditions.
◾ The EBITA margin increased by one percentage
point to 9.2%. The growth in
margins took place in both the Advanced
Textiles & Composites sector and the
Geosynthetics & Grass sector.
◾ The cash earnings (net income before
amortisation and excluding the result on
the divestment of operations and exceptional
items) increased from €46.6 million
to €62.7 million (+35%).
4
Royal Ten Cate Annual Report 2008
◾ Very major developments again took place
in the field of fire-resistant materials for
the US army (including TenCate
Defender M). TenCate Defender M is
the standard for the protective fabric
used in US Army uniforms for combat
units. TenCate has developed a product
portfolio in the field of fire-resistant products
with a wide range of potential applications
for the army, air force and navy.
◾ With the acquisition of Xennia Technology
Ltd., TenCate took an important step in
the field of inkjet applications for industrial
markets. Its focus is on achieving a
breakthrough in finishing technology for
the improvement of production processes
(painting, coating, finishing) and the creation
of new functionalities for textile substrates,
as well as a spin-off to other
industrial applications. The first products
based on this technology are being introduced
into the market for protective fabrics.
◾ Together with Union Textile Public
Company (Thailand), TenCate established
a company for safety fabrics for the Asian
market. This is an important step in the
market development of the Asian region.
◾ In mid-2008 it was decided to implement
an accelerated adaptation in the production
of protective and outdoor fabrics
(Protective Fabrics and Outdoor Fabrics)
at Nijverdal (Netherlands), in order to provide
greater focus. This adaptation is
aimed at concentrating two plants at one
site.
◾ The aircraft industry was sluggish in the
fourth quarter. The reduction of inventory
positions in the supply chain resulted in
lower quarterly revenues in this market
segment towards the end of the financial
year, particularly in Europe. The trend in
the market nevertheless remains positive
for aviation composites. There is an
underlying increase in the use of lightweight
materials in order to replace aluminium.

◾ In the market for aerospace composites
and armour composites, the companies
YLA / CCS Composites and Composix
were acquired in the United States. As
result, the position in the US market was
considerably strengthened. Composix in
particular made a strong contribution
through its involvement in large-scale US
vehicle programmes (Stryker Light Armour
Vehicles and MRAP vehicles).
◾ The Grass market group took a further
step in its strategy of end user marketing
in May 2008. Together with Oranjewoud,
the company Edel Grass was acquired.
The acquisition is mainly of importance
for co-operation within the chain, in order
to guarantee the quality of technical
aspects of synthetic turf systems.
◾ The earlier acquisition of Phoenixx TPC
enabled TenCate to bring the UD (unidirectional)
technology in house. This technology
is complementary to the existing
production processes for space and aviation
composites (TenCate Cetex®). During
the reporting year, qualification processes
were set initiated for future applications
in the aviation sector, and production
capacity was expanded. In addition,
a co-operation agreement was signed
with Airborne Composite Tubulars for
applications in tubular systems for oil and
gas extraction.
Royal Ten Cate Annual Report 2008 5

Evaluation of action plans
Evaluation of action plans for 2008 which
were announced in the 2007 annual report.
◾ Consolidation and integration of strategic
acquisitions
The companies acquired in 2007 and 2008
have been fully integrated within the
worldwide TenCate organisation. TenCate
strives to achieve market leadership and
chain management within a worldwide
value chain (value chain management).
The full or partial acquisitions of participating
interests in synthetic turf companies
form part of the business model
(end-user marketing section), which is
derived from the TenCate strategy. The
aim is increasingly to achieve a system
approach based on optimum performance
during the economic life of synthetic turf
sport pitches. These marketing organisations
retain their own identity and brand
structure.
Xennia, as a technology investment, is
not an integrated TenCate company,
as the technology is also used outside the
strategic market area. Xennia does nevertheless
use specific expertise which is
available within TenCate. Intensive
technological harmonisation takes place
in various sub-areas.
6
Royal Ten Cate Annual Report 2008
◾ Further implementation of the policy in
the Grass group of raising quality of synthetic
turf systems and increasing delivery
reliability through process control and
redefinition of the product portfolio
Within the Grass group, further progress
was made in implementing the strategy
of end-user marketing and entering into
joint ventures with commercial customers.
Good progress was also made with
product and system development.
Strategic partners develop and implement
synthetic turf systems jointly with
TenCate. The mutual relationship between
the various functional components results
in a sustainable, high-quality end-product.
A good example of this approach is the
new football pitch (FIFA Two Star
Recommended) at Heracles Almelo, which
is performing well in the top-flight competition
in the Netherlands. In the course
of 2008, the product portfolio and logistics
were streamlined. That led to less
idle time for machines and greater efficiency
with larger production runs.
◾ Further development of digital textile
finishing
A 75% interest in Xennia was acquired at
the beginning of 2008. This can be viewed
as a technology investment. The joint
developments by TenCate and Xennia can
bring about a major change in TenCate’s
production methods. The first successes
were achieved in 2008 with the wearresistant
coating or printing of ceramic
tiles. The coating of textile substrates is
a derivative of this. In the course of 2009,
this will be started on a laboratory scale
and trials will be carried out in the market.
This technology creates considerable
cost benefits for TenCate and will lead to
a substantial saving of environmental
costs and energy consumption.
◾ Controlling growth of working capital
The importance of a strict liquidity policy
was already appreciated in 2007. In view
of the developments in the second half of
2008 and in particular in the fourth quarter,
this is now even more significant than
in the previous year. A number of business
units fell short of the internal targets
were not met, partly because customers
were reluctant to take up
inventories before the year-end.

◾ Combination of purchase flows
Global sourcing was carried out successfully
in a number of areas. As a global
player in niche markets, in which it usually
operates as a market leader, TenCate
seeks to avoid regional price differences.
The company therefore aims where
possible to operate a global account for
suppliers, partly based on sale volumes
and a usually broad sale of products.
TenCate increasingly sees purchasing as
a tactical and strategic operation which
is co-ordinated worldwide.
◾ Organisational development and management
competences
Specific competences of the existing and
potential management are developed,
partly through the TenCate Active programme.
At the end of 2008, preparations
were begun for the company-wide TenCate
Talent programme, which will focus worldwide
on the development of young talent
within TenCate. Finally, the development
of the new senior structure of TenCate
effectively anticipates the required competences
of the senior management, such
as the Global Group Directors. Where
applicable, the content of the management
profiles was amended.
◾ Establishment of the global active directory
The IT organisation for corporate applications
has been strengthened. Good
progress was also made with the global
roll-out of TenCate’s worldwide network
(global active directory). The ERP implementation
at TenCate Protective Fabrics
North America was completed. A new
ERP package was implemented at the
new TenCate Geosynthetics plant in
Zhuhai (China), which matches that used
by the other Asian companies within
TenCate Geosynthetics.
Royal Ten Cate Annual Report 2008 7

Actions for 2009
◾ The global economy is experiencing difficult
times in 2009. There can be no expectation
in the near term of a recovery in
the financial markets or of a return to
optimum operation in the financial system.
TenCate’s financial policy is focused
primarily on optimising cash flow in order
to reduce bank debt.
The entire company will also place great
emphasis on cost control.
The current market can give rise to attractive
growth opportunities. TenCate aims
to continue the buy & build policy. The
structural financial objectives have been
formulated in such a way that they are
well within the covenants set by the
banks.
◾ Following the successful introduction of
TenCate Defender M in the US armed
forces, the product portfolio in the field of
fire-resistant protection will be further
expanded, and new geographic markets
will also be developed. The first armed
forces orders are expected from outside
the United States in 2009.
◾ TenCate will assess the enabling technologies
on the basis of which new productmarket-technology
combinations can arise
in the future. To this end, TenCate is part
8
Royal Ten Cate Annual Report 2008
of European development programmes, in
which it will play an active role.
◾ New possibilities can arise by establishing
a link between materials and sensors.
Examples of this development within
Geosynthetics are TenCate Geodetect ®
and TenCate Hydrodetect®. TenCate will
develop markets in this area in close cooperation
with a technology partner who
has been involved in the development of
these products. The first pilot projects,
including the IJkdijk project in the
Netherlands (intelligent dyke construction)
are very promising.
◾ The development of the fourth generation
of synthetic turf is now in a decisive
phase. The aim is to implement the first
pilot project in 2009. The fourth generation
of synthetic turf combines various
essential functions in the upper layer
leading to savings in installation costs.
The replacement of the pitch will also be
easier and therefore cheaper.
◾ TenCate will continue entering into strategic
alliances with marketing organisations
in the worldwide synthetic turf market,
in order to achieve optimum
worldwide coverage, with each of the
commercial partners having access to the
most distinctive product portfolio possible.
It will thus be able to occupy a leading
position in the market.
◾ Further expansion of the market position
in Asia. The Asia region – with major
countries such as China and India – is a
growth market for TenCate’s functional
materials. Following the start-up of production
of both protective fabrics
(Thailand) and geosynthetic materials
(China), other areas will also be considered,
in order to determine which growth
will be pursued in order to become an
important player in local markets.
◾ For inkjet technology, in addition to technical
textiles, new industrial applications
will be developed in order to achieve continuing
market development and value
creation at Xennia.
◾ In the field of information technology, global
active directory will be further rolled
out.

Vision, mission, strategy and objectives
VISION
TenCate develops and produces functional
materials which are distinctive in terms of
their characteristics. These materials make a
positive contribution to progress, particularly
in social areas such as safety and protection,
environmental benefits and savings of energy
costs. Efficiency, logistical and cost advantages
can also be achieved which deliver substantial
savings for users. Technological innovations
are important links in this chain. In
developing and producing new functional
materials, TenCate can draw on technological
developments which also take place outside
its core areas.
Textile technology, chemical technology and
material technology can develop into materials
science. This gives rise to new functional
materials to replace the existing materials.
Materials, solutions and systems will be available
for use in existing and new product-market-technology
combinations. On the basis of
their distinctive characteristics, they will
make a positive contribution to the development
and performance in the industries and
markets in which TenCate operates.
TenCate Business Model
The extent to which demand for such materials
is created – for example by new legislation
and regulations and higher specifications
– determines to a large degree the future
growth of TenCate.
MISSION
TenCate strives for leadership in growing
markets for functional materials. To that end
the company exploits its broad technological
base, the individual skills of the employees
and a strong – global – position in the value
chain. By developing (system) solutions,
TenCate achieves progress in the market sectors
in which the company operates. The
added value for customers and end-users
results in more highly rated products and
profitable growth for the company. That also
creates value for shareholders.
TenCate strives for an internal culture based
on professionalism, openness, efficiency,
enthusiasm and respect. The core values of
the company are based on entrepreneurship,
innovative capability and a focus on results.
Our clear vision, mission and strategy set the course for the corporation. The strategy focuses on value chain management.
In day-to-day practice, the TenCate business model is used as the basis for structuring, implementing and operationalising the
business. Our challenge resides in finding the ultimate balance between the four cornerstones.
© Business Model Royal TenCate.
STRATEGY
TenCate has pursued a growth strategy (buy
& build) in recent years in order to secure
strong positions worldwide in the company’s
core markets. The strategy is implemented on
the basis of TenCate’s value chain management
model. This model is used in structuring,
implementing and operationalising the business.
It is based on the ultimate balance
between the four cornerstones:
◾ cost leadership in combination with
◾ product differentiation, focusing on specific
applications and customer requirements;
◾ end-user marketing and an industrial
brand policy;
◾ technological innovation.
TenCate has achieved the necessary critical
mass and strategic coherence by means of a
series of acquisitions which are complementary
to the existing business. This has also
strengthened the technological position and
achieved a healthy cost structure.
The emphasis has also been placed increasing
returns by concentrating on core competencies
and focusing on functional materials with
distinctive characteristics. With the aim of a
Royal Ten Cate Annual Report 2008 9

alanced portfolio of product-market-technology
combinations, the focus is increasingly on
sufficient new activities. The aim is to use
product development and innovation to generate
at least 15% of revenues from activities
which were developed no more than three
years earlier. This aim is being achieved in the
current revenue breakdown.
QUALITATIVE STRATEGIC
OBJECTIVES
◾ Creation of shareholder value through
profitable growth based on our knowledge,
skill and internal synergy. In this
way we can fulfil our social responsibilities;
◾ Achievement of critical mass in productmarket-technology
combinations by securing
leading positions in worldwide market
niches;
◾ Achievement of a healthy financial position
with sufficient strength for acquisitions;
◾ Management of a balanced portfolio of
activities, in which product-market-technology
combinations differ in terms of
growth opportunities and risk profile;
10
Royal Ten Cate Annual Report 2008
◾ Stimulation of an open, creative and
enterprising culture for progress, change
and renewal;
◾ Management of a commercial organisation
which thinks in terms of (system)
solutions within the overall value chain.
FINANCIAL OBJECTIVES
◾ The net capital employed must generate a
sufficient return. The operating income
before amortisation as a percentage of
average net capital employed (plus accumulated
amortisation) must be at least
15%.
◾ The financial position must be sufficiently
solid. The ratio of net interest-bearing
debt to operating income before depreciation
and amortisation (EBITDA) must be
structurally lower than 2.5;
◾ The long-term growth of cash earnings
per share must be at least 10%;
◾ An appropriate profit margin must be
achieved. The EBITA margin should rise to
at least 10%.

Foreword by the Chairman
of the Executive Board
DEVELOPMENTS
2008 was a remarkable year in many respects.
On the one hand there was a continuation of
our successful buy & build policy. On the other
hand, there was the impending financial and
then economic crisis, which particularly
affected the end of the year. Another striking
fact was the strong price fluctuation in the
commodity markets, particularly the market
for polyethylene (PE) and polypropylene (PP).
This made it difficult to determine the pricing
policy. As a global player, TenCate consequently
had to absorb constant price rises in
the first half of the year. In the fourth quarter
of 2008, commodity prices fell substantially,
but TenCate was barely able to take advantage
of this decline.
Although the second half of the year showed
significantly lower growth in our earnings, net
profit growth for the whole year reached an
entirely acceptable level of +35% (cash earnings).
The growth was therefore in line with
our earlier profit forecast. Overall, 2008 was
a positive year, but it was buoyed strongly by
acquisitions and excellent performances by
our US companies, where revenues are primarily
related to US defence contracts. The
organic growth of consolidated net company
TenCate – Union Protective Fabrics Asia
revenues for 2008 amounted to 5%. Although
the economic climate is currently uncertain,
we have achieved a strong strategic positioning
in the past year. As a result, further organic
growth can be achieved.
TenCate’s growth potential is also seen by
investors. TenCate attracted keen interest
among investors, as is evidenced by the performance
of the share on NYSE Euronext.
Although the stock market climate deteriorated
sharply over the year, the TenCate share
fared relatively well.
BUY & BUILD
Over the past decade, TenCate has secured
leading positions worldwide in its niche markets.
The acquisitions during the past financial
year have proved to be an excellent supplement
to our product-market-technology
combinations. Each of these new business
units has contributed to the growth and
helped achieve critical mass. That is favourable
for our position in the market and our purchasing
power in the commodities markets. In
the near future this purchasing power will
contribute to the desired further growth in the
EBITA margin.
TenCate – Union Protective Fabrics Asia in Thailand was officially opened on 26 September 2008. The company manufactures
fabrics for work apparel and, in time, will add safety fabrics for the Asian market to its product range. The Asian market for safety
fabrics is developing quickly. Many of TenCate’s customers have production facilities there. Delivery via the new company will
result in cost savings and logistical benefits. A global market leader, TenCate wants to be actively involved in new developments
in this market and expand its production basis at the local level. The new company will allow TenCate to serve the growing Asian
market for functional materials optimally whilst adding value.
We have consolidated our positions by means
of acquisitions (Xennia, Composix, YLA/CCS
Composites and TenCate – Union Protective
Fabrics), a joint venture (Edel Grass) and a cooperation
agreements (Airborne Composite
Tubulars). These activities must prove their
worth in the years ahead, but they already
directly enhance our strategy. Although we
will continue to focus on growth, attention
will be devoted to the consolidation of our
positions and financial solidity in 2009.
BUSINESS MODEL
The four cornerstones of our unique business
model – technological innovations, end-user
marketing, product differentiation and cost
leadership – offer us opportunities and potential
to address the entire global value chain.
Even when profits are rising strongly, as in
previous years, we continue to pay close
attention to costs. The current economic situation
requires us to do so even more critically.
The cost leadership cornerstone will be implemented
more intensively in the near term.
That was already announced in 2008, particularly
with regard to the Dutch production
sites. Among other measures, the number of
temporary employees was reduced in the final
quarter of 2008.
Royal Ten Cate Annual Report 2008 11

Adjustments were also made to the management
of the company in 2008 (see page 43).
The aim of this was to increase with the
speed of reaction in the market by means of
intercontinental commercial management and
internal co-operation within the groups. This
also strengthens TenCate’s positioning as a
company with clear corporate strategy.
Co-operation between the market groups is
essential in order to operate strongly as a
world player in the market and to create new
value by making use of our knowledge and
skills.
STABILISING MEASURES
When the first signals came at the end of
2007, TenCate took measures to enable it to
cope as effectively as possible with the
impending crisis. Investment proposals were
already put on ice at the end of that year. The
investment budget for 2008 was set on the
basis of defensive assumptions. That resulted
in a downward adjustment of investment
expenditure for 2008. Steps were also taken
at the beginning of 2008 to increase and
renew the syndicated bank facility on attractive
terms. Production was deferred at a
number of locations in the fourth quarter with
a view to controlling working capital.
12
Royal Ten Cate Annual Report 2008
SUSTAINABILITY
TenCate’s business activities take place
against a backdrop of social and ecological
themes, such as security and protection of
people and the environment. We naturally aim
to make economical use of raw materials and
energy. That aim is integrated in our internal
best practices. TenCate conducts an active
environmental policy, but nowadays that is
the most natural thing in the world.
Precisely because we anticipate the global
themes and trends referred to above, TenCate
appears to be less sensitive to the issues of
the day. When we also lead the way with pioneering
(process) technologies which deliver
considerable cost and environmental benefits,
the concept of sustainability adds genuine
value.
Xennia, acquired in 2008, is a leading specialist
in the area of inkjet technology. This technology
already has shown successes in other
industrial processes.
CONFIDENCE
We have always fulfilled our profit forecasts
in past years. That generates confidence. The
growth of the company over the past year
was made possible in part by the confidence
Innovative tubular systems
which customers place in us and, not least,
the efforts of how employees, for which I
would like to express my gratitude.
More than ever, we realise that the entire global
economy is based on confidence.
Confidence is therefore a keyword for our
activities in 2009. However, confidence
relates not to the past, but to the future.
TenCate has the potential to deliver a good
performance, even in difficult times.
L. de Vries
Chairman of the Executive Board
TenCate Advanced Composites and Airborne Composite Tubulars have entered into a strategic partnership for the development
and manufacture of tubular systems based on thermoplastic composites. These innovative tubular systems are implemented in the
oil and gas extraction industry and in oil and gas transport. Composite tubulars offer considerable advantages. In addition to sig-
nificant weight savings and a higher relative strength, enabling drilling at greater depths, for instance, they also have a longer
lifespan. Moreover other functionalities, such as sensors, can be built into such composite pipe systems relatively easily. As such,
they allow access to areas that were previously difficult or impossible to reach.

The TenCate share
Source: NYSE Euronext
ISIN code: NL 0000375731
Reuters code: NTCN.AS
Bloomberg code: KTC.NA
◾ KTC
◾ AEX
◾ AScX
LISTING
The Royal Ten Cate share is listed on NYSE
Euronext Amsterdam and in 2008 formed part
of the AMX index (2008 weighting: 2.33%;
indicative 2009 weighting: 2.55%).
A number of Dutch and international banks
and securities houses are actively engaged in
trading in the TenCate share, and TenCate is
followed by an increasing number of sell-side
analysts.
As at 31 December 2008, there were
23,966,901 outstanding ordinary shares, each
of a par value of € 2.50. The closing price of
the share at the end of December 2008 was
€ 16.05.
140
130
120
110
100
90
80
70
60
50
40
JAN FEB MA APR MAY JUN JUL AUG SEP OCT NOV DEC
INVESTOR RELATIONS POLICY
TenCate has a broad international institutional
shareholder base. Regular, direct contact is
maintained with the investors market.
The company once again took major strategic
steps in 2008. Against this background, and
as a result of the turbulence in the financial
markets, frequent contact was maintained
with our financial stakeholders.
This policy contributed to the relatively good
performance of the TenCate share. We succeeded
in attracting a reliable core of stable
institutional investors with a long-term focus.
The geographic spread was largely
unchanged. Investors are concentrated in the
United Kingdom and the United States.
Interest is aroused by the strong commercial
developments in the United States, mainly
with regard to defence contracts.
TenCate’s concentration on global themes
such as water management, the environment,
protection and energy saving also creates
interest among sustainable (SRI) investment
funds.
Royal Ten Cate Annual Report 2008 13

COMMUNICATION POLICY
TenCate strives for a transparent communication
policy. Nevertheless, the quality of the
quarterly reporting will be raised, to reflect
the seasonal character of certain activities
and the project-based character of defence
contracts in particular. In the current form,
the detailed quarterly financial reports provide
have only limited comparative and predictive
value for stakeholders. Starting in
2009, TenCate will therefore send out trading
updates setting out the main points of the
company’s current performance. The full- and
half-year figures meet the requirements of the
new European transparency directive.
In TenCate’s positioning, it is important to
draw attention to the identity of the company
as a whole. It is more than the sum of the
parts. Our strength lies in the common striving
for market leadership in both the technological
and commercial spheres. In addition, a
strong position can be secured in global value
chains. Our model for value chain management
is based on a business model that has
proved its worth in past years.
DIVIDEND POLICY
TenCate operates in sustainable growth markets.
As stated in previous annual report,
TenCate expects to realise growth in its strategic
key markets in the years to come.
In order to finance such growth, TenCate aims
to achieve internal funding to the greatest
14
Royal Ten Cate Annual Report 2008
possible extent whilst retaining a sound financial
basis.
In view of the development of the world economy,
the company pursued a cautious investment
policy and implemented a number of
cost cutting measures early on in 2008. In
2009, TenCate pursues a financial policy that
focuses primarily on debt reduction.
A consistent dividend policy is pursued, which
is based on a 40% payout ratio. Shareholders
are offered a choice of cash or shares charged
to the share premium reserve.
In view of the growth trend of TenCate shares,
over 50% of the shareholders have consistently
opted for a stock dividend in recent
years. Over the past few years, the buy &
build strategy resulted in a significant growth
of profit per share.
In view of the above, it is proposed to set the
dividend in respect of 2008 at € 0.85 per
€ 2.50 par value share. Half of the dividend
will be payable in the form of a stock dividend;
the remaining half in cash or stock
dividend according to the shareholder’s
preference. TenCate aims to stimulate the
choice for a stock dividend by applying a light
premium to the value of the stock dividend
compared to the cash dividend.
A new slope with geosynthetics
As at 31 December
Number of issued
2008 2007
ordinary shares 23,966,901 23,556,158
Par value € 2.50 € 2.50
Highest price € 27.19 € 34.05
Lowest price € 11.60 € 19.92
Closing price
Cash earnings per
€ 16.05 € 21.27
share € 2.68 € 2.04
Dividend per share € 0.85 € 0.80
DISCLOSURE OF MAJOR HOLDINGS
IN LISTED COMPANIES ACT
The register maintained by the Netherlands
Authority for the Financial Markets (AFM) in
connection with the disclosure of major holdings
in listed companies contains details of
the following investors (percentages based
on AFM returns or recent returns by the
respective shareholders):
Date of
disclosure Disclosing shareholder Interest
28.10.08 Allianz Global 4.99%
23.10.08 Kempen Capital
Management 9.90%
08.10.08 Allianz Global Investors 5.04%
22.02.08 Schroders plc 9.70%
Source: Netherlands Authority for the Financial Markets,
situation as at 16 February 2009
Avalanches, falling rock and land slides can damage or obstruct mountain roads. Retaining walls reinforced with TenCate geosyn-
thetics offer a solution to repair the damage caused by, and prevent the consequences of, such natural phenomena. The foundation
of the road near Rodlau (Austria), for instance, was being damaged by water drainage. Soil reinforcement was required and the
curve in the road needed to be adapted. Option 1 was building a € 1 million bridge. However, option 2 was selected: constructing a
30 metre slope reinforced with TenCate Polyfelt®, which would cost 50% less than the first solution. After building the reinforced
structure, the road was relocated and paved. The slope now looks like a naturally vegetated slope.

Geographic spread of shareholdings
in percentage
◾ The Netherlands
◾ Belgium/Luxembourg
◾ United Kingdom
◾ USA/Canada
◾ Others
◾ Germany
2008
47%
21%
6%
8%
13%
5%
2007
52%
23%
5%
12%
8%
Changes in the number of outstanding shares
Number of outstanding shares at end of 2007 23,556,158
Issue of shares –
Increase in share capital as a result of stock dividend 410,743
Number of outstanding shares at end of 2008 23,966,901
In addition to the above institutional investors,
WAM Acquisitions and Aviva plc (Delta
Lloyd) have in the past disclosed interests of
over 5% under the Disclosure of Major
Holdings in Listed Companies Act.
OPTION PLAN, SHAREHOLDINGS
OF PERSONNEL AND EXECUTIVE
BOARD
Details of the option plan for managers and
members of the Executive Board can be found
on page 131 of this report. The shares repurchased
by the company relate to the hedging
of granted options which have become fully
vested. Details of shares and options of the
company held by members of the Executive
Board and Supervisory Board can be found on
page 126 of this report.
Important dates in 2009
Publication of 2008 full-year figures 4 March
Annual General Meeting of Shareholders 9 April
Ex-dividend date 15 April
Record datum for dividend eligibility 17 April
Option period for cash or stock dividend 17 April to 4 May inclusive
Publication of trading update 29 April
Payment of dividend/delivery of shares (stock) 8 May
Publication of half-year figures 2009 26 August
Publication of trading update 28 October
Royal Ten Cate Annual Report 2008 15

Sustainability
THE MOST NATURAL THING IN
THE WORLD
Sustainability is an inherent quality of
TenCate. It is embodied in numerous qualitative
aspects of products, systems, production
process and our social innovation. Every day
of every year. Sustainability as a basis and a
reflection of our striving for continuity.
Within our operational management, sustainability
is the most natural thing in the world.
We believe it is very important that our products
should make an essential contribution to
a better world where safety and protection
are also the most natural thing in the world.
Such functionalities are so essential that this
is considered to be self-evident. There is a
natural demand for these functional characteristics.
TenCate therefore has the important
task of setting or following functional trends.
In the production process, TenCate focuses
attention on responsible handling of raw
materials, reject reduction, waste reduction
and recycling. Almost all production sites
have been established or certified in accordance
with ISO 9001 and/or ISO 14001 standards.
Environmental legislation and environmental
protection form the foundations. They
are the basis for dealings with suppliers, as
well as customers. TenCate is a great advocate
of industry-wide preferably international
16
Royal Ten Cate Annual Report 2008
regulations. That creates clarity, keeps relationships
pure and guarantees fair competition.
It underlines TenCate’s wish to control
the production process as part of the chain
and make improvements where necessary and
possible.
QUALITATIVE ASPECTS
TenCate operates in the field of materials science.
Material characteristics are based on
the choices of raw materials used and the
market’s requirements with regard to use,
sustainability and environmental characteristics,
among other aspects. Safety, protection,
risk control, reduction of environmental
impact and energy saving are the current
themes that are of importance throughout the
world and constantly demand innovative solutions.
TenCate aims to play a decisive role in
providing the answers. These can involve full
or partial social, economic, technological and
ecological solutions. They will preferably be
qualitative total solutions which fit in with
the system approach targeted by TenCate.
This focus on responsible solutions forms the
basis for our growth, because this growth is
based on worldwide themes. It also limits the
cyclical nature of TenCate’s revenues to a certain
extent.
CHAIN MANAGEMENT
Continuity is the common theme in the management
of the chains in which TenCate operates.
TenCate has the necessary technical
knowledge and international networks that
are of importance in value chain management.
Our approach to value chain management is
distinctive in the industrial world. It is based
on four policy cornerstones: cost control in
combination with product differentiation,
end-user marketing and technological innovation.
The exercising of influence and authority as a
market leader is necessary in order to monitor
and accelerate progress within the various
chains. After all, each chain is ultimately
linked directly to the end users. Changing
demand requires a changing supply and technological
renewal. And hence changing production,
new processes, new choices of raw
materials and adjustments to purchasing from
suppliers.
Such an outlook demands special form of
problem-solving capability. TenCate has
proved over many years that it can adapt
effectively to changed circumstances by being
innovative. That requires an unorthodox
entrepreneurial approach. After all, the balanced
combination of the four cornerstones of
our business model is a constant challenge.

In some cases the result is a coincidental –
and subsequently explainable – concurrence
of circumstances. Often it is not. One of the
biggest challenges is to effectively deploy the
knowledge and skills that are available within
the organisation for process and organisational
renewal and technological innovation.
That is part of our culture.
FUNCTIONAL MATERIALS
Innovative technologies contribute to the
emergence of new functional materials. In
some cases this can take place rapidly.
Product design and material use will often
have an unforeseen influence. For example,
who would have thought 20 years ago that
modern aircraft would comprise more than
50% composites, often originating in textilerelated
materials. In this example, composites
now make an important contribution to the
reduction of both the fuel consumption and
noise.
Operation in niche markets for functional
materials underlines the need to indicate
trends and developments clearly in technology
roadmaps. These articulate and represent
the developments in functional materials and
related technologies. A good example is the
Technology Road Map for Personal Protective
Equipment drawn up jointly with the EFSM
(Engineering Fibrous Smart Materials) foundation
in December 2008.
TenCate contributes to these ‘roads to the
future’ in many ways. The network approach
is also central in the many contacts with the
outside world. Relationships with international
research establishments, partners, universities
and government bodies create solid
opportunities for innovation. This approach
guarantees that new directions can be taken
in good time. TenCate has demonstrated that
it has a successful model in which it continuously
renews itself by developing technologies
and new processes with which new
paths can be taken. An example is the DigiTex
project, with which inkjet technology is being
developed for industrial applications in the
textile production process.
SYSTEM APPROACH
Functional materials are a decisive component
of an overall system or concept. Each system
consists largely of the functionalities of the
materials, some of which constitute a system
in themselves. Standards form the framework
conditions within which the overall system
operates.
TenCate endeavours to apply its system
approach as a common theme in all markets.
Co-operation – from supplier to decision
maker – is necessary at all times for the enduser.
When each component has been harmonised
as fully as possible with the other parts
or components in the system, the most efficient
and effective solution has been found.
IDENTITY AND CULTURE
TenCate is a company in which different cultures
come together. In addition to the core
values in the field of environmental protection
and innovation, the corporate culture is based
on integrity and reliability, quality of products,
professionalism of employees and respect for
society.
All employees within TenCate have access to
‘10Cate’, which represents the identity of the
company. These ten values are universal
within our company. The customer is at the
centre, and every team is the driving force
behind the corporate culture.
Royal Ten Cate Annual Report 2008 17

Report of the Supervisory Board
ANNUAL REPORT
We hereby present the 2008 annual report
as prepared by the Executive Board, incorporating
the financial statements. The financial
statements have been audited by KPMG
Accountants NV and were discussed with the
Executive Board on 3 March 2009, in the presence
of the auditor. We are therefore of the
opinion that the annual report fulfils the
transparency requirements and forms a good
basis on which the Supervisory Board can
account for its supervision.
We propose that you accordingly adopt the
financial statements, approve the dividend
proposal and grant discharge to the Executive
Board in respect of its policy and to the
Supervisory Board in respect of its supervision.
SUPERVISION
The Supervisory Board held plenary meetings
with the Executive Board on six occasions in
2008, on the basis of a fixed schedule. It also
met independently on several occasions.
In addition, the Board held four supplementary
meetings, on a range of subjects including
proposed acquisitions and their financing.
All members attended the majority of the
meetings.
18
Royal Ten Cate Annual Report 2008
During the joint meetings, the Supervisory
Board dealt with subjects such as the budget,
current acquisition projects and the corporate
strategy. The financial results were discussed
in each quarter. In the discussion of the 2007
annual figures and 2008 half-year figures, the
independent auditor reported on his findings.
The Supervisory Board met independently of
the Executive Board to discuss the composition
and performance of the Supervisory
Board and the remuneration and performance
of the Executive Board.
One or two representatives of the Board took
part in four consultative meetings of the
Central Works Council, at which they
appraised themselves of the company’s
affairs.
INDEPENDENCE
All members of the Supervisory Board are
independent within the meaning of the bestpractice
provisions of the Corporate
Governance Code.
No TenCate shares or options are held by the
members of the Supervisory Board.
COMPOSITION
In the general meeting of shareholders held
on 3 April 2008, Mr J.C.M. Hovers was
appointed as a supervisory director and then
elected by the board members as chairman.
Messrs F.A. van Vught and E. ten Cate were
simultaneously reappointed.
At the same meeting, Messrs A.W. Veenman
and C.W. Versteeg retired from the board. We
are grateful to both of them for their commitment
and contribution to the company.
Mr Veenman served as chairman of the
Supervisory Board for 12 years. TenCate
achieved strong growth under his chairmanship.
His extensive technical and managerial
knowledge and experience were of great
value to the company. The way in which he
managed the Supervisory Board and the consultations
with the Executive Board was stimulating
and inspiring, and contributed to
effective decision-making.
Mr Versteeg served as a member of the
Supervisory Board for eight years. His contribution
was characterised by his involvement
with the human aspect of the company, relations
with employees and consideration of
broad social developments.

SUPERVISORY BOARD COMMITTEES
The Supervisory Board has two committees:
the Financial Committee chaired by
Mr Ten Cate and the combined Remuneration,
Selection and Appointments Committee
chaired by Mr Van Vught. Their task is to analyse
subjects within their specific areas of
knowledge and make preparations for decisions
to be taken in the meeting of the
Supervisory Board.
FINANCIAL COMMITTEE
The entire Financial Committee met on three
occasions in 2008. The meetings were held to
prepare for the discussion of the 2007 annual
figures and the 2008 half-year figures and a
number of specific subjects.
Matters considered in greater depth included
the internal management and reporting
systems, the tax position, the policy with
regard to audit services, aspects of financial
risk management and the external auditor’s
management letter and the corresponding
follow-up.
REMUNERATION REPORT
No changes were made to the remuneration
policy as set out in detail in the 2005 reporting
year. The rise of the position of CEO of
Royal Ten Cate to the median of Hay level 30
was continued. In view of the continued wide
difference between the current salary level
and the median of Hay level 30, it was decided
in 2008 also to implement an interim rise
towards level 30. The annual salary of Mr L.
de Vries was therefore increased by 10%.
The position of Mr J. Wegstapel as CFO and a
member of the Executive Board was set at
Hay level 26. The fixed basic salary was also
raised by 10% in 2008.
The remuneration of the Executive Board is
shown in note 56.2 on page 125 of this
report.
VARIABLE REMUNERATION
In 2008 Mr L. de Vries received the maximum
results-linked remuneration in respect of
2007, amounting to 50% of the annual salary,
having comfortably met the specified performance
criteria.
Mr J. Wegstapel received results-linked
remuneration of 30% of annual salary in 2008,
i.e. 75% of the maximum obtainable. This was
paid pro rata due to his having joined the company
in March 2007.
Almelo, 3 March 2009
Supervisory Board
J.C.M. Hovers, Chairman
P.P.A.I. Deiters, Vice-Chairman
F.A. van Vught
E. ten Cate
Royal Ten Cate Annual Report 2008 19

SAFETY. THE MOST NATURAL THING IN THE WORLD.
20 ADVANCED ARMOUR
Personal protection. In an increasingly dynamic society, it is about
the safety of people. Whether military or police, they make themselves
vulnerable by protecting civilians.

The threat level determines the choice of stab and bulletproof material,
such as TenCate Aresshield for safety vests, which is also used for
antiballistic shields. Composite is a – relatively – light-weight material
that offers maximum multi-threat protection depending on its layer
structure and composition.
Mireille van der Doorn has been a police
officer since graduating from the police
academy in Harlingen in 1992.
At the beginning of her career, she regularly
‘walked the beat’ in uniform. She wore
a bulletproof vest countless times. Mireille,
married and the mother of a daughter,
is now a detective with the Large-scale
Investigation Unit of the Regional Police
Department of Twente. She has specialised
in interrogation methods. Today, she wears
a protective vest primarily during some
on-site investigations.
We would like to thank VTS Politie Nederland.
We would also like to thank Suit Supply Hengelo.

Corporate governance
CORPORATE GOVERNANCE
STRUCTURE
The Supervisory Board and the Executive
Board endorse the main principles of corporate
governance. The few exceptions which
apply within TenCate mostly relate to the
nature and size of the organisation. They do
not affect the basic principles of good corporate
management and integrity. No changes
occurred in 2008 with regard to the exceptions
to the best practice provisions stated on
TenCate’s corporate website.
With regard to the declaration made by the
Executive Board in the annual report with
regard to the internal risk and control systems,
reference is made to page 33 of this
report.
The corporate governance structure is based
on the voluntary application of the two-tier
board structure. The main elements of this
are:
◾ The financial statements are adopted by
the general meeting of shareholders.
◾ Supervisory directors are appointed by
the general meeting of shareholders on
the basis of nominations by the
Supervisory Board. The profile of the
members of the Supervisory Board is first
22
Royal Ten Cate Annual Report 2008
discussed at the general meeting of
shareholders at the time of adoption and
on each subsequent modification.
◾ The general meeting of shareholders and
the works council can recommend persons
to the Supervisory Board for nomination
as supervisory directors.
◾ In the case of one-third of the members of
the Supervisory Board, the Supervisory
Board will in principle place in nomination
the name of a person recommended by
the works council (works council’s reinforced
right of recommendation).
◾ In the event of an outright majority of the
votes, the general meeting of shareholders
representing at least one-third of the
issued share capital may reject the nomination
by the Supervisory Board.
◾ The members of the Executive Board are
appointed by the general meeting of
shareholders on the basis of a binding
nomination by the Supervisory Board.
Personal Protective Equipment
Corporate governance within TenCate is
based on the following principles:
◾ Value creation for shareholders
This means making optimum use of the
available resources. In the context of
internal financial control, financial ratios
and metrics are monitored closely. These
reflect the performance in terms of cash
flow generating assets, efficiency, margins
and the return on capital employed.
Consideration is also given to longer-term
continuity. TenCate takes account of efficient
use of natural resources and its
social responsibilities.
◾ Quality of the management and appropriate
remuneration
The remuneration policy must make it
possible to attract high-quality management
which is appropriate for the specialised
and multinational character of
TenCate. The performance pay structure
must be transparent and focused on key
performance indicators. The Supervisory
Board’s Remuneration Committee is
responsible for developing the remuneration
policy and assessing the performance
criteria for members of the Executive
Board.
Early in December 2008 TenCate co-organised the PPE Conference, which is devoted to Personal Protective Equipment. The con-
ference revolved around personal protection (fire brigade, police, emergency services) and focused on protection against high risks.
Personal Protective Equipment is one of the key factors in guaranteeing safety at work by protecting workers from a broad range of
hazards. Innovation is vital in order to improve the wearing comfort and properties of PPE products.

◾ Code of conduct for management and
employees
The company has a code of integrity, a
whistleblowers scheme and rules to prevent
abuse of inside information.
◾ Disclosure
Disclosed information must fulfil criteria
of accuracy, completeness and promptness
and comply with transparency guidelines
and IFRS standards, in order to provide
stakeholders with the most
transparent and accurate information
possible on the performance and outlook.
The main risks must be stated and evaluated.
The information on TenCate’s corporate
strategy is communicated clearly. TenCate
carried out full financial quarterly reporting
up until the 2008 financial year. From
2009, only a market-compliant trading
update will be provided for the first and
third quarters, in accordance with the
legislation which came into force in
December 2008.
TenCate maintains an open communication
policy, providing regular information
on important commercial developments.
◾ Financial control and risk monitoring
The Supervisory Board forms a financial
committee from among its members to
supervise the financial performance,
acquisitions, divestments and general risk
policy.
◾ Avoidance of conflicts of interest
TenCate is alert to conflicts of interest.
These are addressed and where necessary
avoided.
◾ Social responsibility and sustainable
enterprise
TenCate strives to maintain good relations
with other parties in its vicinity and
with stakeholders. The company endeavours
to limit environmental impact as far
as possible. This principle is also included
in the code of conduct for employees.
Substantial environmental investments
are made for this purpose.
Operating companies have long implemented
major elements of socially responsible
enterprise. In order to ensure that
the sustainability policy is widely disseminated,
it is increasingly publicised internally.
TenCate products also have major
sustainable elements having regard to
their functional characteristics.
Royal Ten Cate Annual Report 2008 23

The Boards
as at 1 January 2009
EXECUTIVE BOARD
L. de Vries (57), Chairman J. Wegstapel (53)
24
Royal Ten Cate Annual Report 2008

SUPERVISORY BOARD
J.C.M. Hovers (65) Chairman 1) 2)
Commenced in office: 2008
End of current term: 2012
Former Chairman of the Executive Board of
Océ nv and Stork nv
Supervisory director of Randstad Holding
Chairman of the Supervisory Board of Schuitema
Chairman of the Supervisory Board of Inter Access
Chairman of the Supervisory Board of Gemeentelijk
Vervoersbedrijf Amsterdam
P.P.A.I. Deiters (65) Vice-Chairman 1)
Commenced in office: 1998
End of current term: 2010
Former director of Berghaus International Fashion
Supervisory director of G-III Apparel Group Ltd
Supervisory director of Bandolera B.V.
Supervisory director of Tootal B.V.
Consultant to the European Bank for Reconstruction
and Development EBRD
Supervisory director of HVEG Investments B.V.
1) Member of the Financial Committee.
2) Member of the combined Remuneration,
Selection and Appointments Committee.
*)
Chairman.
From left to right: E. ten Cate, F.A. van Vught, J.C.M. Hovers and P.P.A.I. Deiters
F.A. van Vught (58) 2*)
Commenced in office: 2000
End of current term: 2012
Member of the Group of Policy Advisors,
Chairman of the European Committee
Member of the Executive Board of
the European University Association
Member of the University Grants Committee
of Hong Kong
Supervisory director of Rova N.V.
Chairman of the Board of Nether (Netherlands
House for Education and Research, Brussels)
Chairman of the Board of ESMU (European Centre
for Strategic Management of Universities, Brussels)
E. ten Cate (63) 1*)
Commenced in office: 2004
End of current term: 2012
Director of Bank ten Cate & Cie N.V.
Chairman of the Supervisory Board of Nyloplast N.V.
Supervisory director of Nesbic Investment Fund
Supervisory director of Pas Reform B.V.
Supervisory director of Medisch Spectrum Twente
Royal Ten Cate Annual Report 2008 25

ENERGY SAVING. THE MOST NATURAL THING IN THE WORLD.
26 AEROSPACE COMPOSITES
As in the aviation industry, the automotive industry could benefit a lot
if more composites were implemented. After all, composites are lighter
than aluminium, stronger than steel and recyclable. This Twente One,
the solar car of Solar Team Twente, is featherlight thanks to TenCate
composites. The sustainable vehicles attained speeds of up to
126 kilometres per hour.

Thermoplast and thermoset materials, such as TenCate Thermo-Lite
and TenCate Cetex, make a contribution to more sustainable transport.
The car racing industry is already using these innovative materials
extensively.
Solar Team Twente, a student team of
Twente University in the Netherlands,
competed in the World Solar Challenge in
Australia with its Twente One (21) solar car
in October 2007. The team completed the
journey, which is more than 3000 km long,
finished in sixth place and was the technology
and innovation winner thanks to the
composite pivoting wing equipped with
solar cells.
In October 2009, the sun’s sustainable
energy will be the focal point in Australia
once again. A new team, a new Twente
One – red this time, the proud colour of
the Dutch region of Twente

Report of the Executive Board
GENERAL
TenCate was one of the best-performing listed
companies in 2008, amid a deteriorating
stock market climate. At the same time, the
fall in the share price during the year was no
reflection on the good performance of
TenCate. The global economy deteriorated
sharply in the second half of the year.
Although this had an effect on TenCate’s
share price, the company continued to perform
very well, delivering a satisfactory result
of 35% growth in cash earnings.
The intended strategic developments proceeded
according to plan. The Advanced
Textiles & Composites sector provides a
strong foundation for profit growth. The synthetic
turf activities are also well positioned.
As stated previously, the process of improving
the results of the Geosynthetics & Grass
sector will proceed gradually. Despite the
continuing recession in the United States, the
TenCate Geosynthetics group showed good
results.
Numerous alliances were entered into with
parties in the value chain were established. A
growing awareness of quality and our
advanced system approach fulfil a guiding
role.
28
Royal Ten Cate Annual Report 2008
TenCate is reasonably able to withstand the
prevailing economic downturn around the
world. Nevertheless, a degree of uncertainty
has arisen in various value chains with regard
to the availability of parts of public sector
budgets. In addition, there is some reticence
with regard to financing on the part of specific
customers. This put some pressure on revenues
and results in the second half of the
year. On the other hand, within the limited
public sector budgets priorities are being set
which may have a positive effect on TenCate’s
activities, such as investments in infrastructure
in order to stimulate the economy.
The rise in revenues during the year was
strongly influenced by defence contracts. The
lion’s share of our acquisitions in 2008 related
to this market. TenCate was thus able to
anticipate the growing demand for protection
of personnel and materiel. The great success
of TenCate Defender M was due to that. A
large part of the revenues of TenCate
Protective Fabrics relate to defence. In view
of the military modernisation programmes
already announced, this market offers important
prospects.
TenCate Defender M sets the standard
Despite less favourable external conditions,
the Geosynthetics & Grass sector continued
its rising trend. A positive aspect was the
increase in the EBITA margin. It should be
borne in mind that TenCate had to absorb part
of the sharp increase in raw material costs in
the first half of 2008. The positive effect of
the sharp decline in raw material costs in the
fourth quarter of 2008 will be evident mainly
in 2009. There is a strong seasonal pattern in
this sector, particularly in synthetic turf,
where market demand peaks during the summer
months.
TenCate succeeded in increasing its mediumterm
finance in good time on attractive terms.
The commitment runs for a residual term of
three years.
Attention was focused specifically on the
trends in the profit of TenCate’s Dutch companies,
particularly with regard to the trend in
costs. This remains an important subject in
2009. The leading global market positions and
the favourable underlying market trends provide
a strong foundation.
TenCate Defender M fabrics have been selected as the standard material for flame-resistant combat uniforms for the American
army and marine corps. New TenCate Defender M products are being developed continuously. The American army submits them
to comprehensive wearing tests. TenCate Gen2 fabric is another successful product for military applications. As the biggest
American manufacturer of protective fabrics, TenCate is able to respond quickly to the requirements of different army units, each
with its own specific functional and qualitative properties. The company recently received an award for its performance from US
military authorities.

COMMERCIAL DEVELOPMENTS
Because there were signs at the beginning of
the year of possible growing uncertainty in
the market and a slowdown in growth in the
global economy, the investment level was
temporarily reduced. The emphasis was also
placed on generating returns from the recent
acquisitions and investments in production
capacity and new technologies. TenCate’s
markets are dominated by growth resulting
from global trends and themes such as water
management, energy saving and protection.
As a continuation of our sale activities in
Asia, important steps have been taken with
regard to production activities. This emerging
market will in the near future constitute an
important pillar of growth for TenCate.
On 17 July last year, the new synthetic turf
system for Heracles Almelo was presented in
the Polman Stadium jointly with TenCate’s
synthetic turf partners. It is the latest development
in synthetic turf systems for football.
Recent research has shown that footballers
highly rate the new pitch, which meets the
highest standards of FIFA and UEFA. This new
synthetic turf system has also attracted great
interest in the United States. It can also be
used effectively for sports other than football.
BUY & BUILD
TenCate achieved further success and
progress with the implementation of its buy &
build strategy during the reporting year. The
lion’s share was achieved in the first half of
2008. Our product-market-technology positions
were further strengthened.
The strategic themes of buy & build and fix-it
/ exit will be of secondary importance in
2009. We will focus on liquidity and concentrate
on further margin improvement, particularly
within the Geosynthetics & Grass sector,
and on reducing working capital.
FIX-IT / EXIT
As a result of the general economic situation
and the turmoil in the financial markets, it
was not possible to pursue our fix-it / exit
policy. A divestment of TenCate Enbi was not
opportune. TenCate will continue to work
towards the effective positioning of TenCate
Enbi as a reliable supplier in the international
printer and copier market.
FINANCIAL PERFORMANCE
NET INCOME
Net income amounted to € 51.1 million in
2008. That is a rise of 10% compared to 2007
(€ 46.4 million). The 2007 net income included
a book profit of € 0.3 million on the divestment
of operating companies, as well as
exceptional income after tax of € 3.1 million in
connection with a large real-estate transaction.
Net income before amortisation and excluding
the result on the divestment of operations and
exceptional items (cash earnings) rose by 35%
from € 46.6 million in 2007 to € 62.7 million in
2008.
As a result of the acquisitions during the
reporting year, the amortisation of intangible
fixed increased from € 3.6 million in 2007 to
€ 11.6 million in 2008.
COMPOSITION OF THE COMPANY
In line with the company’s strategy, the following
companies were acquired in 2008:
◾ On 30 January 2008: Composix Co. of
Newark, Ohio (United States), a company
operating in the field of vehicle armour.
Royal Ten Cate Annual Report 2008 29

Analysis of 2008 results by sector 2008 2007 Diff. Organic
in millions of euros
30
Royal Ten Cate Annual Report 2008
of which Acquisition/
currency divestment
Net sales
Advanced Textiles & Composites 481.0 350.3 37% 8% – 4% 33%
Geosynthetics & Grass 497.8 468.3 6% 5% – 4% 5%
Technical Components / Holding & Services 53.8 67.4 – 20% – 16% – 2% – 2%
1,032.6 886.0 17% 5% – 4% 16%
Operating result before amortisation (EBITA)
Advanced Textiles & Composites 61.5 40.2 53% 0% – 4% 57%
Geosynthetics & Grass 37.8 30.4 24% 20% – 7% 11%
Technical Components / Holding & Services – 3.9 2.4 *
95.4 73.0 31% 0% – 5% 36%
*
Including an exceptional item of €4.1 million.
Amortisation – 11.6 – 3.6
Operating result (EBIT) 83.8 69.4 21%
Net financial expenses – 13.7 – 11.3 21%
Pre-tax result 70.1 58.1 21%
Profit tax – 19.1 – 11.9 61%
Result from ordinary operations after tax 51.0 46.2 10%
Result from divested activities – 0.3
Third party minority interest 0.1 – 0.1
Net result 51.1 46.4 10%
Road through the salt lake
EBITA margins 2008 2007
Advanced Textiles & Composites 12.8% 11.5%
Geosynthetics & Grass 7.6% 6.5%
Consolidated 9.2% 8.2%
Two projects were realised in Algeria using TenCate geosynthetics. One of these is the construction of a 13 kilometre access road
through Chott el Hodna, a salt lake between Mcif and Ain Khadra. The salt lake has an inadequate substrate. In winter, the lake is
one meter deep; in summer, the soil is covered entirely with a layer of salt due to evaporation. Thanks to the expertise of TenCate
Geosynthetics and the collaboration with the company creating the specifications, the builders decided against digging – which
would have required a huge investment in terms of time and money. TenCate supplied TenCate 300,000 m² TenCate Bidim® and
252,000 m² TenCate Miragrid® for the foundation of the road.

◾ On 12 March 2008: YLA inc and the 100%
subsidiary CCS Composites inc of Benicia,
California (United States), operating in
the manufacture of composite materials
for aerospace and industrial applications.
◾ On 14 March 2008: Xennia Technology ltd
(75% interest) of Cambridge (United
Kingdom), operating in the development
of industrial applications of inkjet technology.
◾ On 14 May 2008: Edel Grass bv (50%
interest) of Genemuiden (Netherlands), a
marketing organisation and installer of
synthetic turf sports pitches. This company
is proportionally consolidated.
◾ On 16 August 2008: TenCate – Union
Protective Fabrics Asia ltd (50.65% interest)
of Bangkok (Thailand), a producer of
fabrics for protective clothing.
REVENUES
Net revenues rose by 17% in 2008, including
5% on an organic basis. The currency effect
on revenues amounted to –4% and was
caused principally by a decline in the average
rate of the US dollar and related currencies.
The bulk of the revenue growth was accounted
for by the Advanced Textiles & Composites
sector. Revenue growth in this sector amount-
ed to 37%, including 33% as a result of acquisitions
(Composix, YLA/CCS, Xennia and
TenCate – Union Protective Fabrics Asia ltd).
The Geosynthetics & Grass sector recorded
revenue growth of 6%. This growth was
mainly due to the Grass activities. The organic
sales growth in the sector amounted to 5%,
with a currency effect of –4%.
The 5% acquisition effect concerns the proportional
consolidation (50%) of Edel Grass
and the full-year consolidation of TenCate
Thiolon Middle East compared to nine months
in 2007.
The revenues of TenCate Enbi declined by
20%. It was not possible to win new projects
in time to offset the termination of a number
of major customer contracts.
OPERATING INCOME BEFORE AMORTISATION
(EBITA)
Operating income before amortisation (EBITA)
rose by 31% in 2008 from € 73.0 million to
€ 95.4 million. Excluding the exceptional item
of € 4.1 million in 2007, there was a rise of
38%. 36% of the EBITA growth was due to
acquisitions, including a particularly large
contribution from Composix.
The Advanced Textiles & Composites sector
recorded EBITA growth of 53%, including 57%
as a result of acquisitions. The 0% organic
EBITA growth was due to an increase in the
American activities and a decrease in profits
from activities in Europe.
The Geosynthetics & Grass sector generated
EBITA growth of 24%. This growth arose in
both the Geosynthetics and the Grass activities.
On an organic basis, the EBITA growth
amounted to 20%.
The results of the Geosynthetics group came
under pressure from start-up costs for the
new plant at Zhuhai (China) and the contraction
of the US market. These effects were
offset, however, by cost measures in companies
in the United States and further earnings
growth in the activities in South-East Asia.
The Grass businesses began using new production
lines during in Dayton (United States)
and Dubai during the year. As a result, the
company now has sufficient production capacity
to meet the growing market demand in the
short term.
Royal Ten Cate Annual Report 2008 31

The reduction in the EBITA of the Technical
Components / Holding & Services sector is
closely related to the aforementioned exceptional
item of € 4.1 million in 2007, the decline
in the revenues and results of TenCate Enbi
and the recognition of a reorganisation provision
at TenCate Enbi in 2008.
The EBITA margin rose to 9.2% (2007: 8.2%).
RAW MATERIAL COSTS
Raw material costs as a percentage of revenues
rose from 52% to 54%. This rise was
mainly due to the changed composition of revenues.
The Geosynthetics & Grass sector in
particular had to contend with wide fluctuations
in prices of the main raw materials (polyethylene,
polypropylene). These prices are
strongly correlated with the price of crude oil.
From January to August 2008, prices rose
strongly. They then fell back steeply in the
final part of the year.
32
Royal Ten Cate Annual Report 2008
PERSONNEL COSTS
Personnel costs in 2008 amounted to 18% of
revenues, a decrease of two percentage
points compared to 2007 (20%). This decrease
was a result of the changed composition of
the company and efficiency improvements in
a number of businesses.
TAXES
The tax rate rose from 20.5% to 27.3%. Key
factors were the change in the geographic
origin of profits. Partly as a result of acquisitions,
a larger proportion of profit was generated
in the United States, where the tax rate
is relatively high.
In addition, the tax charge was favourably
impacted by non-recurring tax income relating
to previous years.
C1000 personnel in orange and black
WORKING CAPITAL
Working capital increased by € 52 million in
2008 from € 210 million to € 262 million.
Working capital at end
of 2007 € 210.3 million
(84 days)
Effect of exchange rate
differences € 5.8 million
Effect of acquisitions
(divestments) € 12.9 million
Organic change € 33.0 million
Total at end of 2008 € 262.0 million
(90 days)
INVESTMENTS
In 2008, € 48.0 million was invested (2007:
€ 62.9 million), compared to depreciation and
amortisation of € 42.3 million.
Major expenditure related to:
◾ the construction of a geosynthetics plant
at Zhuhai (China);
◾ the expansion of the number of production
lines in the synthetic turf plants at
Dayton (US) and Dubai;
◾ expansion investments for the Aerospace
& Armour Composites activities in the
Netherlands and the United States.
Employees of C1000, the Dutch supermarket chain, are currently being fitted for an all-new uniform. Two qualities of TenCate
Tecawork represent the basis for the new clothing range. The new uniform is a part of the transition towards the new, fourth
generation of stores. Many of the approximately 30,000 employees already wear the new clothing range, which was developed in
close collaboration with C1000 owner Schuitema. It is ‘an exclusive design’ that complies with all of the quality standards and
uses the new corporate colours, orange and black. The clothing range will be used for a period of seven to ten years.

CASH FLOWS AND FINANCING
The acquisitions in the first months of 2008
led to an increased financing requirement.
This was met by increasing the existing syndicated
bank facility from € 250 million to € 400
million.
Net interest-bearing debt increased from
€ 230.4 million at the end of 2007 to € 331.1
million at the end of 2008. In spite of this, the
covenants entered into with the banks were
complied with.
The ratio of net interest-bearing debt to
EBITDA (bank definition) amounted to 2.61 at
the end of 2008.
Group equity at the end of 2008 stood at
€ 372 million, with a solvency ratio of 41.8%
(2007: 43.0%).
SWOT ANALYSIS
Previous annual reports have included a
detailed SWOT analysis has been included.
The following pages contain a summary of the
main changes in the positions and the specific
developments that have taken place with
regard to this analysis.
RISK MANAGEMENT
There are risks associated with the business
strategy. External economic factors, unpredictability
of market developments, calamities
and human factors can impede the achievement
of business objectives. TenCate strives
to control the achievement of strategic and
operational objectives as effectively as possible.
To that end, TenCate has access to appropriate
risk management and control measures.
As a result of these:
◾ the main risks are identified in time and
remain limited to an acceptable level;
◾ there is a reasonable degree of certainty
that the financial reporting contains no
material misstatements;
◾ the applicable regulations and legislation
are complied with.
The market areas in which TenCate operates
– protective fabrics, aerospace, antiballistics,
geotextiles, synthetic turf and technical components
– entail specific strategic and commercial
risks. In most cases, TenCate pursues
these activities on four continents, each with
its own dynamics. TenCate is therefore not
part of a monoculture. Consequently, none of
the risks detailed below will have a dominant
influence.
A number of specific significant risks applying
to TenCate have been identified. The summary
of the main specific risk areas below is not
exhaustive. It is possible that risks which
have not currently been identified or which
are not seen as material will subsequently
have a significant negative effect on
TenCate’s ability to achieve its business
objectives. The risk management and control
measures are aimed at timely identification of
these risks.
MARKET RISKS
Market
The market risks differ depending on the market
segment. In some segments, such as base
fabrics for professional wear, there is intensive
competition and high price elasticity.
In addition, production of less distinctive
products is gradually shifting to Asia.
In other market segments, such as safety fabrics,
antiballistics, geotextiles and artificial
grass, TenCate has a technological lead, in
many cases with associated market leadership.
To be continued on page 37 ▶ ▶
Royal Ten Cate Annual Report 2008 33

SWOT analysis
TENCATE’S STRENGTHS
TenCate owes its strong position in the strategic
markets on a global scale primarily to
the know-how which it has developed in the
specialist markets and the broad technological
basis, both through organic growth and inhouse
research & development and through
acquisitions.
In past years, TenCate has succeeded in
securing positions in respective value chains
that have given the company leading positions
in terms of market share. TenCate has striven
continuously for critical mass in order to
achieve a balanced position principally
between the suppliers (input side) and the
often large parties in end-markets (output
side), among which TenCate occupies a distinctive
position.
Size is not the only important factor. Specialist
markets mainly demand solutions for complex
requirements (specifications) from the market
in the field of functional materials. TenCate is
increasingly solution-focused and is shifting
the market approach from a product-based
philosophy to a system approach.
34
Royal Ten Cate Annual Report 2008
POINTS FOR IMPROVEMENT
Partly as a result of product life cycles, there
is a continuing risk that a product will become
a commodity, replacement products will
appear and margins will decline. TenCate protects
itself against this by continuously placing
cost control high on its agenda. In addition,
product differentiation is one of the
cornerstones of its policy. This means that the
company works continuously to develop products
and expand the portfolio.
The positioning of the corporate brand and its
values, in which the quality and performance
of TenCate products form an important part,
is a means of increasing the recognition and
familiarity of TenCate products within the
context of end-user marketing. This is a continuous
process, in which acquired companies
are also included.
It was previously stated that TenCate is still
underrepresented in the Asian market.
Although the demand for high-grade functional
materials on the whole has not yet
increased to the level of the United States
and Europe, strong growth is nevertheless
being recorded. In 2008, TenCate increased
its position in Asia in the field of geosynthetics
and protected fabrics. This development
will be continued in the years ahead.
OPPORTUNITIES
TenCate plays an important role in Europe
with regard to research and development in
smart textiles. Digital processing based on
inkjet technology (Xennia) also offers considerable
opportunities. Due to the large number
of developments in the field of standards,
specifications, etc. and technological developments,
it was decided to manage both corporate
technology and corporate development
on a central level.
The increasing concern for sustainability,
safety and protection is positive for the markets
in which TenCate operates. An example
of this is the geosynthetics used in infrastructure
projects. These enable substantial savings
in environmental costs and reductions in
harmful environmental impacts, such as disruption
to the environment, as well as lower
transport costs for construction materials.
THREATS
The purchasing side and scarcity of certain
raw materials (e.g. synthetic fibres) remains a
point of attention. The dependence has nevertheless
decreased as a result of acquisitions
and the growth of TenCate over the past
few years. Moreover, as a result of the gener-

al economic situation, there is no longer any
scarcity of raw materials. Such a situation is
not expected to recur in the near term, partly
having regard to capacity expansions which
have taken place in the past.
On the purchase side, the very sharp rises in
prices of PE and PP had a substantial impact
on margins. There are few effective ways to
hedge against these wide movements effectively
in the market, but where possible
TenCate revises its contractual relationships
with customers and suppliers in order to build
in greater flexibility.
CHALLENGES FOR TENCATE
The situation with regard to the challenges
referred to previously is stated below.
◾ Knowledge protection / patent position
The central position of corporate technology
underlines the importance of knowledge
protection and the patent position.
For each market group, a Technology Road
Map is drawn up which serves as a basis
for product and market development.
◾ System approach
A continuing focus is our system
approach, which plays a role in all of the
areas in which TenCate operates. A functionality
usually operates not in isolation
but as part of a system. TenCate products
form an inseparable part of it. This development
requires more intensive co-operation
with third parties (joint venture, outsourcing
of operations, etc.) and in some
situations other technologies may be
required to operate as an integrated system.
It is possible that new networks of
companies will arise in future which market
certain systems.
◾ Conceptual (system) approach in the field
of synthetic turf sports applications
The synthetic turf market is potentially a
worldwide growth market, in which a
growth rate of 15% is achievable.
However, synthetic turf is not a generic
product but must be adapted to the specific
use, the local situation and climate
conditions.
The joint ventures which TenCate has
entered into in the synthetic turf market
form a basis for a more conceptual
approach to the synthetic turf market.
This process takes several years, because
the market also has to develop the distinctive
capability. A good performance of
a sports pitch over a number of years is
not a basic requirement that can be
achieved with an arbitrary selection of
components. In addition to good quality in
the end-product, increasing co-operation
is required in installation and maintenance
in order to achieve optimum playing
conditions over many years. The cooperation
with partners in the market
must support this development.
◾ Growth potential in Asia and emerging
markets
Following the start-up of the new production
facility for geosynthetics in Zhuhai
(China) and the joint venture for protective
fabrics in Thailand, TenCate’s presence
in Asia will be further enhanced. The
relative share of revenues from Asia is
expected to increase considerably in the
years ahead.
◾ Reduction of dependence on oil products
TenCate has begun development work in
biopolymers with third parties. This
project is taking place within the framework
of the Regional Innovation Platform
in Twente in the Netherlands.
Royal Ten Cate Annual Report 2008 35

◾ Links to other industrial sectors
36
Two developments can be cited with
regard to new applications for TenCate
materials,. With the acquisition of
Phoenixx (composites), TenCate has
gained access to UD technology, which
can be used to produce composite pipelines
for oil and gas extraction. TenCate
has entered into a joint venture in this
field with the Dutch company Airborne
Composite Tubulars. In addition, Xennia is
working with other companies in order to
market the developed technologies in
industrial sectors other than the textile
sector. A commercial breakthrough was
achieved in the field of coating (printing)
of ceramic interior tiles.
The combination of TenCate’s strengths/
opportunities and possible threats/risks creates
possibilities for action.
◾ Exploitation of scale benefits and worldwide
presence in the purchasing market.
The ending of scarcity strengthens the
position in this market.
◾ Wider use of available knowledge and
patent positions, with a greater degree of
international cooperation in R&D.
◾ Co-operation with third parties and open
Royal Ten Cate Annual Report 2008
innovation lead to shorter time to market
and faster market acceptance.
◾ The system approach and greater interaction
within the value chain in the synthetic
turf market raise quality and lead to
greater appreciation of performancerelated
characteristics among end-users.
The system approach and new technological
developments lead to higher added
value in the synthetic turf system.
◾ The system approach is an effective
means of shortening a product lifecycle
as a result of commoditisation.
◾ The broadening of the geographic coverage
(Asia) reduces the general market
risk. An example of this is the sluggish
market for geosynthetics materials in the
US and a strong, growing market in Asia.
Seasonal patterns are also smoothed out.

▶ ▶ Continued from page 33
This provides no guarantee for the future.
Products which reach the end of their life
cycle must be succeeded in good time by new,
improved and distinctive versions.
Protection and patenting of intellectual property
strengthens the unique positions of the
products.
End-user marketing provides pull effects, as a
result of which the value chain is controlled
more effectively and distinctive ability is
rewarded by the market.
There are also markets which feature longterm
development programmes, such as the
aerospace market. Growth in revenues is
protected by qualification processes. A precondition
is that TenCate continues to adhere
to the quality guidelines specified by the customers.
Macroeconomic developments
Macroeconomic developments have an influence
on the level of demand for TenCate’s
products. That also applies to the current economic
crisis. The revenues of some market
groups and product-market-technology combinations
is directly impacted by the level of
economic activities among industrial companies
and end-users. An important factor is
‘Synthetic turf owns the future’
government expenditure in the major countries.
The demand for protective fabrics and
antiballistics is controlled by public sector
bodies, in particular defence forces and fire
brigades.
Demand for geotextiles and synthetic turf
products is driven by public sector investments
in infrastructure and sports facilities.
Factors which determine government policy in
the above markets include security policy and
economic growth. Strong commercial networks
and the associated information provision
make it possible to anticipate government
plans promptly and efficiently.
As a result of flexibility in cost structures, it
is possible to compensate for the consequences
of a certain degree of reduction in
demand. This flexibility is achieved among
other things by flexible deployment of labour
and partial outsourcing in some market
groups.
Raw materials
A limited number of raw materials determine
a large part of the materials consumed by the
TenCate companies. This concerns in particular
cotton, aramid fibres and various gradations
of polyethylene and polypropylene.
Prices in the commodity market may fluctuate
FIFA, the world football organisation, is a strong advocate of synthetic turf. Football on synthetic turf owns the future. It makes the
game faster, more attractive and safer. ‘Synthetic turf fields have many benefits: the field is always perfectly green; the game is
sped up and the passes are more accurate thanks to the field’s regularity. Technically talented and physically strong players have
equal changes. Synthetic turf fields can be used more often and offer a greater number of options for use. The field is not damaged
by bad weather and the maintenance, which is vital to maintain synthetic turf fields in top condition, is less costly than for natural
grass fields.’
widely. The price of plastics is determined
partly by the oil price, but in particular by
shortages or surpluses in the market.
Price rises can be passed on to customers
with a time lag of one to six months. The
same applies to price reductions. In some
cases an automatic price adjustment clause is
included in customer contracts.
In the case of super-strength or fire-resistant
armour fibres, regular shortages occur or
a strong dependence develops on a single
supplier. In such situations suitable agreements
have been entered into with the supplier.
TenCate operating companies will
increasingly take part jointly in negotiations
with major suppliers, in order to achieve optimum
conditions in terms of price, quality and
delivery reliability.
Royal Ten Cate Annual Report 2008 37

FINANCIAL RISKS
Currency
Approximately 36% of TenCate’s revenues are
denominated in euros. The main currency risk
incurred by Ten Cate is in respect of the US
dollar (47% of sales) and a number of more or
less dollar-related currencies such as the
Hong Kong, Singapore and Australian dollar,
the Chinese renminbi and the dirham (Dubai).
With regard to currencies, we draw a distinction
between competition, transaction and
translation risk. The competition risk concerns
the changing competitive position vis-à-vis
competitors in areas with a different currency.
This risk is hedged over the subsequent six
months by means of options. Thereafter a
permanent answer must be found to the new
situation. Transactions in foreign currencies
are immediately hedged by means of futures
or options. These are mainly transactions by
European operating companies denominated
in US dollars and British pounds.
Since foreign operating companies, particularly
those using US dollars and related currencies,
make an important profit contribution
to the company’s results, these, these translation
risks are hedged. If possible, they are
38
Royal Ten Cate Annual Report 2008
offset by means of opposite positions with
regard to competitive risk.
Interest
The company’s financing is fairly centralised.
The risk of interest rate rises is in principle
hedged 90% for the following year and 75%
and 50% for the subsequent years, taking into
account the expected interest rate trends.
The preference is to use caps for this purpose.
The impact of the change in value of financial
instruments on the company’s results is mitigated
as far as possible by the use of hedge
accounting.
Pension provisions
TenCate has placed the pension provision for
Dutch employees with Stichting Pensioenfonds
Koninklijke TenCate. This average salary
scheme is designated as ‘defined benefit’ in
accordance with IFRS reporting rules. A sharp
fall in prices on international securities
exchanges could lead to a decrease in the
value of the pension fund’s investments. The
result of this and of interest rate developments
may be that the provision for pension
liabilities on the Royal Ten Cate balance sheet
increases under the new IFRS guidelines. The
pension fund has taken measures itself within
its investment policy, partly as a result of the
Financial Assessment Framework (including
interest rate risk management), involving a
reduction in the risk profile.
The company has concluded an implementation
contract with Stichting Pensioenfonds
Koninklijke TenCate, under which the financial
contribution remains limited to an average
contribution. This moves within an agreed
range depending on the financial situation of
the fund.
In the other countries there are defined contribution
schemes in the vast majority of
cases.
ORGANISATIONAL AND LEGAL RISKS
TenCate is involved in various legal proceedings
resulting from normal business operations.
In the proceedings between United
Fabrics and TenCate, which began in 2000
and have been reported on previously, The
Supreme Court issued a judgment on 7 April.
Part of the claim, based on a commercial alliance,
was dismissed. With regard to the
remainder of the claim, relating to a management
alliance, the other party has been
instructed to demonstrate the damage suf-

fered. A bank guarantee issued by us expired
in 2008, increasing the likelihood of a favourable
outcome.
Environment
TenCate’s environmental policy is based on
limiting any impact on the environment as far
as possible. Regular checks are carried out
both by the holding company and by the managements
of operating companies and measures
are taken to avoid environmental risks.
Textile finishing in particular may involve the
use of chemicals which must be covered by
guarantees. The waste water from textile finishing
in the Netherlands and the United
States is treated in the company’s own water
treatment plants.
TenCate considers that the environmental
risks have been limited as fully as possible.
Environmental coordinators have been
appointed at local level who are familiar with
the specific situation and implement local legislation
and regulations accordingly.
TenCate Industrial Zhuhai
Product development
Product development is the lifeline for the
years ahead. It must be managed with care. If
products are brought to market too early, this
can result in teething troubles, recalls and
damage. On the other hand, if the time-tomarket
is too long, TenCate will lose a large
part of its competitive advantage. The product
development process has been structured
in accordance with strict procedures and criteria.
Production and product liability
TenCate has various small- to medium-scale
production processes, for example involving
fewer than 100 employees. Where there is a
relatively low degree of production automation
there is a higher risk of human error.
Incidents in production can never be ruled
out.
These may lead to a loss of quality in the endproducts,
claims from customers or even a
temporary halt in the production process.
However, TenCate carries out preventive
inspections of its products and almost all
plants are ISO-certified. Control of production
processes and quality management are important
priorities in order to avoid product claims.
The official opening of TenCate Industrial Zhuhai occurred on 13 June 2008. It is the biggest TenCate manufacturing plant in the
Pacific and the most important investment of TenCate in Asia to date. It will be able to respond to the great demand for geosyn-
thetics in China, the rest of Asia and Australasia. Part of its production will be exported to the Middle East and the US. The plant
operates weaving machines for polypropylene and polyester based geotextiles. It also contains four extrusion lines. Most of the
textiles produced will be delivered to TenCate Geosynthetics. The remainder is intended for TenCate Industrial Fabrics (trampoline
fabric in particular).
In that context, terms and conditions of sale
have been standardised as far as possible.
Management and personnel
TenCate’s organisation strategy is based on a
decentralised model. The group directors and
operating company managements determine
the company policy to a large extent independently
and take entrepreneurial decisions.
Not having the right man or woman in the
right place can result in an operating company
rapidly losing its lead or even falling behind
its competitors. For this reason the selection
criteria for new management personnel have
been tightened up, with an assessment forming
part of the key management recruitment
procedure.
Another risk is dependence on key officers,
often with an R&D or market background. It is
necessary to ensure that this expertise is
retained and shared across the organisation.
This is achieved by guaranteeing knowledge.
Royal Ten Cate Annual Report 2008 39

CONTINUITY OF INFORMATION PROVISION
Each operating company has its own systems
for control and transaction processing in the
main operating processes. Systems for communication
and generic workplace automation
are implemented to a large extent centrally.
Disruptions to these systems can impede
operating processes. The risks are limited as
far as possible by means of information security
and fallback procedures. The operation of
these facilities is tested periodically.
Risk management and control system
The overall risk management and control
measures are based on a number of key elements.
MANAGEMENT ENVIRONMENT
The company strives for a culture of openness,
integrity, professionalism, enthusiasm,
efficiency and respect. Core values are entrepreneurship,
innovation and a focus on
results.
Every employee is made aware of these cultural
elements and the obligation to comply
with all applicable legislation and regulations.
40
Royal Ten Cate Annual Report 2008
The Integrity Code and the Confidential
Adviser Scheme set out the general rules of
conduct with which employees must comply.
ORGANISATION
TenCate’s organisational structure is based
on providing support for a co-operation structure
in which each person’s responsibilities
are clearly defined and performances are
measurable.
This is reflected in a group structure in which
groups and operating companies bear responsibility
for results. The group managements
determine the group strategy, promote consistency
and synergy and are responsible for
exploiting the market positions in the value
chain.
Central management support departments in
the company with functional responsibilities
contribute to the co-ordination.
The above objectives are facilitated by a
number of Group procedures, including the
TenCate Accounting Manual.
Managements of operating companies are
controlled on the basis of a formalised planning
and control cycle.
INFORMATION PROVISION,
COMMUNICATION AND PROCESS
MONITORING
Systems for internal information provision
and communication are primarily aimed at giving
employees and managers appropriate
information for their own areas of responsibility.
A whistleblowers scheme and a complaints
scheme enable employees to inform
the company management about undesirable
situations.
It is important to maintain direct contact
between the Executive Board, group managements
and operating company directors.
Direct discussion takes place regularly,
depending on the matter at hand. More formally,
extensive monthly reporting takes
place and the performance, results, outlook
and certain facets of risk management are
discussed once each quarter. Risk management
also forms part of the consultation with
the Financial Committee of the Supervisory
Board.
MANAGEMENT ACTIVITIES
Risk management is a responsibility of the
management at all levels. All managers and
controllers sign a twice-yearly letter of repre-

sentation on the financial reporting/internal
control.
All financial regulations are included in the
TenCate Accounting Manual. The managements
and controllers of the operating companies
declare in respect of all their reports
that the results have been compiled in accordance
with this manual.
Each year the external auditors assess the
structure and operation of the administrative
organisation and internal control, to the
extent relevant to the auditing of the financial
statements. They report on this to the management,
the Executive Board and the
Supervisory Board.
Where risks are insurable, such as for fire and
loss of profits and third-party and product liability,
they are laid off to insurers. The balance
between insurance cover, premium levels
and own risk is reassessed each year.
Regular inspections and follow-up increase
the continuity of the business processes,
reduce production outages and lead to lower
risk costs. Damage prevention and preventive
investments improve the risk profile.
TenCate Active 2 online
EVALUATION OF RISK MANAGEMENT AND
CONTROL SYSTEMS
The Executive Board is of the opinion that:
◾ the risk management and control systems
provide a reasonable degree of certainty
that the financial reporting is free of
material misstatements;
◾ the risk management and control systems
have operated correctly in the reporting
year;
◾ there are no indications that the risk management
and control systems will not
operate correctly during the current year.
However well designed our internal risk management
and control systems are, they can
never provide absolute certainty that objectives
in the field of strategy, operation,
reporting and compliance with laws and rules
will always be achieved. In taking decisions
we are aware that:
◾ human errors of judgement may arise;
◾ cost/benefit assessments are always
made when accepting risks and taking
control measures;
◾ human failings and even simple errors or
mistakes can have major consequences;
◾ conspiracies by officials can lead to circumvention
of internal control measures;
TenCate is a learning organisation, which is why the company invests continuously in the knowledge and skills of its employees.
The first version of the TenCate Active programme was concluded towards the end of 2007. In mid-2008, a number of employees
of TenCate companies in the US and Europe – potential leaders – enrolled in the second edition of the TenCate Active programme.
Once again, the programme focuses on increasing the employees’ understanding of the TenCate strategy, the translation to tactics
and operations, refining their competencies (innovative ability, entrepreneurship and leadership), and the execution of innovation
projects.
◾ the management of parts of the company
can permanently or temporarily negate
agreements made with the Executive
Board.
This statement should not be interpreted as
being a statement in accordance with the
requirements of section 404 of the Sarbanes
Oxley Act in the United States, which does
not apply to Royal Ten Cate.
INFORMATION TECHNOLOGY
DEVELOPMENTS IN 2008
A policy was formulated in 2008 for the
organisation and further standardisation of
generic ICT services, including e-mail and
services for the ICT infrastructure. The IT
organisation for corporate applications was
strengthened.
A number of operating companies have
migrated from the traditional analogue telephony
systems to the use of computer networkbased
(VoIP) technology combined with the
integration of e-mail, fax and chat functionality
(unified messaging).
Royal Ten Cate Annual Report 2008 41

Good progress was made in 2008 with the
global roll-out of the TenCate’s worldwide
network (global active directory). Active
directory enables managers to manage the
policy (rights, domains and settings) in the
network of an entire company.
The ERP implementation within TenCate
Protective Fabrics USA was completed at the
end of 2008. In the new TenCate
Geosynthetics plant in Zhuhai (China), an ERP
package was implemented which is aligned
with that of the other Asian companies of
TenCate Geosynthetics.
PLANS FOR 2009
Global active directory will also be implemented
in the US companies in 2009, thereby
completing the roll-out.
A single shared service centre will be established
in each region (United States, Europe,
Asia) in the years ahead. A shared service
centre is unit within the organisation which
has responsibility for results, operates on the
basis of a contract (service level agreement)
and provides specialised services within the
organisation. The shared service centre for
Europe began operating on 1 January 2009.
Organisationally, it is within the purview of
the corporate information manager.
42
Royal Ten Cate Annual Report 2008
Preparations are being made for the creation
of a shared service centre in the United States
in 2009.
The standardisation of ERP systems in each
group will be continued.
HUMAN RESOURCES MANAGEMENT
HUMAN RESOURCES POLICY
On the central level, the HRM efforts are
focused primarily on guaranteeing continuity
of the company. The early identification of
talent for management positions and other
key roles and the continuous strengthening of
the organisation are of key importance in this
regard.
In concrete terms, that means:
◾ early identification and development of
talent;
◾ leadership development;
◾ strengthening of conduct based on the
core values in our corporate culture: innovative
capability, enterprise, a focus on
results, trust and co-operation.
These principles form an important part of our
TenCate People Program. In particular,
TenCate endeavours to engender a sense of
commitment among employees at all levels of
the company. We are constantly looking for
employees with passion who are always prepared
to ‘go the extra mile’.
During the reporting year, TenCate increased
its worldwide presence by acquiring Composix
and YLA / CCS Composites (USA), Xennia (UK)
and TenCate – Union Protective Fabrics. The
international character of TenCate was thereby
further strengthened, leading to improved
control of international value chains.
Economic, social and ethical factors are the
criteria applied in the creation of jobs in geographic
areas that are new to TenCate.
Number of employees
(in staff years)
Year end
2008
Year end
2007
Netherlands 931 975
Rest of Europe 612 582
United States 1,573 1,527
Asia/Australia 936 641
Middle East 385 295
Total 4,437 4,020

ORGANISATIONAL DEVELOPMENT
Our role as market leader requires strong
leadership and a clear organisational structure,
so that further growth can be guaranteed.
During the reporting year, work began
on laying the basis of a new organisational
structure, based on global leadership in each
group. This will strengthen and guarantee
international co-operation within the groups.
In addition, the lines between the Executive
Board and the group managements will be
shortened, leading to improved distribution of
duties and responsibilities. This structure is
based on a global presence of all five groups.
Important principles are a decentralised
organisation and lowest possible devolution
of responsibilities within the organisation.
Entrepreneurship is key at all levels in the
groups. Efficient, central management by the
holding company strengthens the aforementioned
core values of the corporate culture.
An appropriate degree of autonomy in the
various operating companies and the active
pursuit of internal and external co-operation
are consistent with the company’s culture.
The renewed overarching global structure of
the organisation is intended to deliver greater
co-operation and greater strength and provide
a solid foundation for further growth in 2009.
TenCate People Programme
The early identification and development of talent, the development of leadership, and the
reinforcement of behaviour based on the key values of our corporate culture are important
components of the TenCate People Programme. The TenCate Talent Programme started up in
the last quarter of 2008. All TenCate employees up to 35 years of age with at least a
Bachelor’s level education are invited to participate in events. These talents can improve their
visibility within the organisation at these events. Continuous scouting, assessment (of poten-
tial), evaluation and development of talent represent the key values of the programme.
TALENT AND MANAGEMENT DEVELOPMENT
For an enterprising and growing organisation
such as TenCate, the prompt identification
and development of in-house talent remains
an important key to success. Talent is about
more than having sufficient competences.
Passion is also a very important motive.
Management development
TenCate recognises the importance of investing
in the knowledge and skills of the current
and potential management. The core values
of entrepreneurship, leadership, innovative
capability, a focus on results and co-operation
are systematically strengthened in a
four-layer management development (MD)
programme. The purpose of this international
TenCate programme is to ensure appropriate
succession, the development of current and
potential management and the attraction of
the right talent.
The MD programme was established internationally
during the reporting year. 30 employees
took part in two TenCate Active programmes.
One programme took place in the
US and was provided by Twente School of
Management (TSM) in co-operation with
Emory Business School in Atlanta. The other
programme took place in Europe. This was
also provided by TSM, in co-operation with
teachers from leading European business
schools.
These programmes are aimed at promoting
innovative capability, entrepreneurship and
situational leadership. The participants are
given guidance to provide them with a better
understanding of the strategy formation process
and its tactical and operational implementation
and enable them to adjust this process
as necessary. The participants carry out a
strategic assignment in teams. In addition to
the acquired knowledge, skill, expertise and
attitude, an important added value of this programme
is the mutual cooperation between
the managers in the various strategic product
groups and disciplines.
Royal Ten Cate Annual Report 2008 43

In the final quarter of the reporting year, work
commenced on the TenCate Talent programme.
All TenCate employees up to the age
of 35 with education at least to bachelor
degree level are invited to take part in events.
These events, which take place over the year,
raise the visibility of these talents within the
organisation. Continuous scouting, assessment
(of potential), evaluation and development
of talent form the core of this programme.
The local management and the HRM
discipline play an important role in these programmes,
meeting local requirements as fully
as possible.
The TenCate Talent programme and the
TenCate Active programme will be further
expanded In 2009. For the Talent target group,
a number of events will be organised over the
year, in which they can participate on a voluntary
basis. The aim of this is to offer this
group an opportunity to become more visible
within the organisation.
EMPLOYMENT CONDITIONS
TenCate aims to offer its employees a comprehensive
and competitive package of
employment conditions. To this end, regular
surveys are conducted, in co-operation with
44
Royal Ten Cate Annual Report 2008
Hay Group and local employer organisations.
The globally developed remuneration policy
for the international senior and upper management,
based on the Hay system, was completed
during the reporting year.
SAFETY
Our employees on all continents are professional
people who have a sense of enterprise
focused on results and solutions and are prepared
to take on challenges. A safe, highquality
working environment is of great importance
in this regard and has the utmost
priority. TenCate’s policy is aimed at implementing
or structuring all operations and
processes in such a way that all forms of personal
injury and damage to health can be
avoided.
This aim forms the basis of the health and
safety policy implemented in all our companies.
This results among other things in a relatively
low level of sickness absence.
SOCIALLY RESPONSIBLE
ENTERPRISE
SUSTAINABILITY
The basis of TenCate’s sustainability policy is
an optimum balance between our quality policy
and our environment policy. TenCate aims
to impact the environment as little as possible.
Quality assurance forms the basis of this.
Periodic inspections are carried out by both
the holding company and the managements of
the operating companies and measures are
taken to avoid quality deficiencies and environmental
risks. In addition, the standing policy
is to ensure, by means of quality systems
and independent certification, that compliance
with all applicable (international) legislation
and regulations – particularly on environmental
aspects – is guaranteed.
TenCate further developed its central policy
principles for sustainability during the reporting
year. The necessary improvements were
made in order to fulfil and implement the previously
defined key objectives. These related
to areas such as environmental protection as
part of integrated quality assurance, safety
and protection on the shopfloor, professionalism
and integrity of employees and social
commitment.

MEASUREMENT PROVIDES THE ANSWERS
The general principles with regard to socially
responsible enterprise have been further
defined and developed within the company. A
fuller assessment of our sustainability policy
was carried out during the reporting year. All
plants worldwide were visited by the corporate
risk manager and an extensive series of
sustainability-related qualitative and quantitative
information was obtained. The ISO
14001 methodology was used as a general
framework. Examples include the volumes of
waste, waste by type, waste water, energy
consumption and various emissions. Due to
the confidentiality of such data, figures and
details are not being disclosed. It was nevertheless
established that comparability needs
to be improved. That can be explained by the
fact that each country applies its own measurement
and recording methods due to historical
reasons and local legislation.
At product level, almost all product-market
combinations were surveyed in terms of their
effect on social aspects, ecological conditions
and economic performance. These data have
similarly not been disclosed to third parties,
for competition reasons. An increasing
amount of information on certain aspects of
sustainability is nevertheless being provided
in publications by operating companies – such
as pamphlets, datasheets and websites. The
results of the aforementioned internal surveys
are being further studied and assessed.
QUALITY ASPECTS
Quality assurance is a guiding principle within
our company. It begins with the process of
product development. This is structured in
accordance with strict procedures and criteria.
Some customers apply additional quality
standards which must be complied with. That
is the case, for example, of materials for
applications in aerospace, antiballistics and
protective fabrics.
Further work was carried out in 2008 on the
standardisation and tightening up of standards
in plants and sales organisations. The
standardised terms and conditions of sale
were rolled out to European customers during
the year. They are stated in full on the website.
ENVIRONMENTAL ASPECTS
TenCate considers that the environmental
risks have been limited as fully as possible.
Environmental co-ordinators have been
appointed at local level in practically every
part of the world who know the specific situation
and implement local legislation and regulations.
The high standards applied in Europe
serve increasingly as guiding principles for
plants at other locations around the world.
Apart from five recently acquired units, all 26
plants have a quality system that is currently
certified in accordance with ISO 9001 standards.
Three of the five excluded plants do
nevertheless have an internal quality system.
With regard to environmental aspects, a
growing number of plants have also been certified
in accordance with ISO 14001 standards
since 2000. In most cases the internal environmental
policy served as the basis for this
successful additional step.
On the basis of environmental control systems,
the aim is to limit the use of raw materials,
water and energy consumption and
emissions. Action is taken jointly suppliers of
raw materials and customers in an effort to
further reduce the environmental effects.
Examples are the replacement of chemical
additives by environmentally friendlier materials,
improvements in the production process,
reduction of energy and water consumption
Royal Ten Cate Annual Report 2008 45

and control of energy and waste flows. For
example, TenCate Advanced Textiles in the
Netherlands uses only chemicals and dies
that are listed in the textile environmental
database. TenCate purchases most chemicals
and synthetic fibres from major multinationals
who already have a policy aimed at sustainability.
The TenCate operating companies devote a
great deal of attention to the control of waste
flows. In addition to coherent waste separation,
various production sites maintain a mass
balance sheet. This serves as preparation for
the limitation of waste flows in the entire
production process. Specific materials such
as glass and bulbs, board and paper, iron and
steel, as well as wood, are separated as far
as possible. Any hazardous waste is collected
separately and removed by recognised
processing companies.
A number of Dutch operating companies successfully
reduced their water and energy consumption
at industry level during the past
year. These arrangements had previously
been set out in a covenant. The aim is to
achieve an energy saving of 10% within a
period of 10 years. A plan for energy savings
46
Royal Ten Cate Annual Report 2008
is drawn up and implemented every three
years. The saving of energy across the entire
chain is a central objective.
The TenCate Advanced Textiles site in the
Netherlands has had its own water treatment
plant since June 2007. Considerable savings
were made in 2008 in treatment charges. In
2009, investments are planned in the
Netherlands to enable the biogas obtained
from these treatments to be burned – after
cleaning – as an additional fuel in the steam
boiler of TenCate Advanced Textiles, for all
the existing plants. The conversion of cooling
water from TenCate Grass into process water
for TenCate Advanced Textiles in the
Netherlands is also bearing fruit. This results
in lower energy costs and discharge levies
and hence less time consumption.
CHAIN-FOCUSED ENVIRONMENTAL
PROTECTION
TenCate exercises its growing influence in the
value chain on suppliers and customers in
order to achieve objectives in terms of more
sustainable enterprise within the value chain,
although the various markets still differ in this
regard, sometimes substantially. Our increasingly
chain-focused approach makes it possi-
Waste water purification
ble to achieve objectives which also have an
influence outside the company itself. Within
the organisation, TenCate continues to support
sustainable operation with best practices
in its internal media. Operating companies are
encouraged to devise projects of their own,
both internally and externally.
SAFETY AND PROTECTION
TenCate gives the utmost priority to a safe
working environment worldwide. Although
any incident is one too many, the very low
percentage of industrial accidents underlines
this ambition. Safety is about protective
equipment and awareness. Safe machines
must be used safely. Training and information
are targeted means of keeping employees
mindful of possible risks. The operational
management is required to remind colleagues
on the shopfloor of the operational arrangements
for personal protection. Quality, Health
& Safety and Environment officers have been
appointed within the operating companies.
They monitor the performance in these areas
in the operating companies.
The new waste water purification system at TenCate Protect is the first anaerobic purification system installed in a textile plant in
the Netherlands. The environmental costs are reduced by about 40%, including depreciation, operating costs and power consump-
tion. Anaerobic purification does not require any oxygen, since the contamination is removed by bacteria. This results in methane
(CH4), the main component of natural gas. The company aims to reuse the generated biogas to the boiler house as a power source
in the near future.

INTEGRITY
One of TenCate’s core values is reliability. The
integrity code involves everyone who is
employed in TenCate or one of its operating
companies. The code is part of each individual
contract of employment. A central compliance
officer and a confidential adviser have been
appointed to support the code. Additions
were made to various points of the integrity
code in 2008.
COMMITTED AND ACTIVE
On the basis of its local responsibility,
TenCate endeavours to make a positive contribution
to its environment worldwide.
TenCate sponsors a wide range of activities in
sport, culture and other social projects. The
largest project relates to its role as the main
sponsor of the Heracles Almelo professional
football club, which serves both a local and a
commercial interest. This is the first professional
football club to play official competition
matches on synthetic turf. This is an
important reference for TenCate Grass. The
summer of 2008 saw the installation of the
very latest synthetic turf system was
installed, which now also includes sensors –
a world first.
POST BALANCE SHEET EVENTS
In the first quarter of 2009 it was announced
that imminent agreement was expected on
the acquisition of a minority interest in
TigerTurf, a leading company in the international
synthetic turf market operating principally
in Australia and New Zealand. The company
markets concepts for various sports and
landscape applications. Annual revenues are
approximately € 50 million.
OUTLOOK
TenCate operates in sustainable growth markets.
The company’s growth is based on
worldwide trends in the field of water management
and the environment, the growing
demand for lightweight materials in transport
and haulage (lower fuel costs) and increasing
focus on safety and protection. The current
economic and financial situation may temporary
inhibiting effect on market developments.
In the Advanced Textiles & Composites sector,
protective materials for defence markets
account for a large proportion of revenues.
Government policies in the field of personal
protection and armour (vehicles) are not
expected to differ greatly from past policies.
Various future projects have already been
announced.
The outlook in the European market for work
clothing for industrial end-users is sluggish.
By contrast, the outlook for high-grade safety
fabrics, particularly in the professional wear
market, remains positive.
Royal Ten Cate Annual Report 2008 47

The space and aerospace markets are driven
by long-term developments, although the current
tightness in the financing market may
give rise to a temporary slowdown.
The US market for geosynthetics remains
sluggish, whereas outside the United States
the geosynthetics markets remain positive.
Governments’ plans to stimulate the economy
by means of infrastructure projects will have
a positive effect on the geosynthetics market
worldwide.
Synthetic turf is continuing to gain ground
worldwide. The sports market is often associated
with government budgets.
The recently announced plan to acquire an
interest in TigerTurf will further strengthen
TenCate’s market position. This is another
step in the strategy of end-user marketing in
the synthetic turf market.
Growth opportunities are arising in this market
as a result of the company’s good global
strategic positioning. TenCate will continue to
investigate the potential for exploiting these
growth opportunities, having regard to the
profit growth achieved in this area in the
past.
48
Royal Ten Cate Annual Report 2008
TenCate is maintaining its restrained investment
policy and striving for continuing cost
control as already implemented at an early
stage in 2008.
Unlike last year, no profit forecast is being
issued for the current financial year in view of
the current market situation.
Cruyff Court London
STATEMENT FROM THE EXECUTIVE
BOARD
We, the Executive Board of Royal Ten Cate,
have established the Annual Report and
Financial Statements for 2008.
We hereby certify that, to the extent known
to us:
◾ the Financial Statements are a true representation
of the capital and financial
position of the company and its consolidated
businesses;
◾ the Annual Report is a true representation
of the state of affairs on the balance
sheet date and in the course of the financial
year of the corporation and its affiliated
companies, and that the actual risks
are incorporated in the Annual Report.
Almelo, 3 March 2009
Executive Board
L. de Vries, Chairman
J. Wegstapel
On 23 October 2008, Dennis Bergkamp opened a Cruyff Court named in his honour. Johan Cruijff himself, the initiator of the syn-
thetic turf football fields for young people, attended the occasion. Like most courts, the Cruyff Court Dennis Bergkamp was built in
a residential district: Elthorne Park (Islington). Dennis Bergkamp played for Arsenal for eleven years. The partnership between
TenCate and the Johan Cruyff Foundation was renewed for another three years at the end of October.

Royal Ten Cate Annual Report 2008 49

PROTECTION. THE MOST NATURAL THING IN THE WORLD.
50 PROTECTIVE FABRICS
TenCate offers protective fabrics for a great variety of applications. The
risk level always determines the choice. These are all high-tech fabrics,
such as textiles for fire fighters. They are also all inherently flameresistant.

TenCate Tecashield provides maximum protection and comfort thanks
to a multi-layer structure. It allows fire fighters to approach the source
of a fire more closely without endangering their lives more than
absolutely necessary. The clothing underneath the fire fighter’s suit
is also part of the total protective system.
In everyday life, Geert Gottemaker is an
employee of TenCate in Nijverdal, the
Netherlands. He has been handling important
parts of the production process for
protective fabrics at TenCate Protective
Fabrics for over 24 years.
Together with four other TenCate colleagues,
Geert is also a member of the
voluntary fire brigade of the Dutch municipality
of Hellendoorn, of which Nijverdal
forms part. As a result, he and his fire fighting
colleagues test the practical side of
the protective fabrics their employer
manufactures again and again. Geert has
been a volunteer with the fire brigade for
14 years now.

Advanced Textiles & Composites
KEY FIGURES
Advanced Textiles & Composites 2008 2007 2006 2005 2004
in millions of euros unless stated otherwise
Revenues
Operating result before amortisation
481.0 350.3 279.7 285.6 229.9
(EBITA) 61.5 40.2 21.3 16.8 11.2
EBITA margin (%) 12.8 11.5 7.6 5.9 4.9
Operating result (EBIT) 52.9 38.7 20.9 16.5 11.1
Investments 11.7 17.0 11.7 13.2 4.0
Depreciation and amortisation 17.6 10.8 6.1 6.2 5.6
Net assets 286.4 197.6 124.9 124.2 113.6
Staff years at year-end
EBITA as percentage of net average capital
1,651 1,238 1,203 1,171 1,204
employed 22.9 22.6 17.1 13.5 10.5
ACTIVITIES
The Advanced Textiles & Composites sector
consists of the following market groups:
◾ TenCate Protective Fabrics and
TenCate Outdoor Fabrics
High-grade protective and safety fabrics for
the defence and professional wear market,
and for the high-grade segment of the outdoor
market.
52
Royal Ten Cate Annual Report 2008
◾ TenCate Space & Aerospace
Composites and TenCate Armour
Composites
Composites for the aerospace industry and
special industrial applications and for personal
protection and vehicle armour, including
composite materials with bullet-, fragment-,
knife- and needle-proof characteristics.
Protection against electric arcs
REVENUES AND RESULTS
The revenues of the Advanced Textiles &
Composites sector increased by 37% to € 481
million. The acquisition of the US company
Composix (antiballistics) made a substantial
contribution to the growth of this sector.
Organic revenue growth amounted to 8%.
Operating income before amortisation
amounted to € 61.5 million. The EBITA margin
rose further to 12.8%. This excellent result
was due primarily to the very good performance
in defence-related markets (safety fabrics
for military applications and antiballistic
materials).
Organic EBITA growth amounted to 0%. The
good growth in the United States was thus
negated by the European activities in the field
of protective fabrics.
INVESTMENTS
Investments in tangible and intangible fixed
assets amounted to € 11.7 million during the
reporting year. They were made primarily in
the composites market segment, in anticipation
of future growth. This concerns among
other things the supplies of TenCate Cetex®
to Airbus for the Airbus A380 programme.
Preparations are also being made for develop-
Industrial businesses are increasingly aware of risks their operations present to employees. The most common injury is caused by
electric arcs resulting from short-circuits and incorrect switching operations. As a result, demand for protective clothing is grow-
ing. Legislation in this field is also evolving. Multi-layer systems must be deployed for protection against strong electric arcs to
achieve a higher insulation value. TenCate Protective Fabrics already markets a range of fabric combinations and is working on the
development of a multi-layer system that provides Class 2 protection according to the electric arc standard. The objective is to
minimise the weight of this system in order to retain the comfort-related properties of the clothing.

ments in the Airbus A350 XWB programme.
Investments were also made in production
capacity based on UD (unidirectional) tape
technology, which will be used for new developments
in aerospace and oil and gas extraction
(including drill pipes). The latter activity
represents an expansion of TenCate’s scope
of application for composites. This technology
was acquired as a result of the acquisition of
the US composites company Phoenixx.
PROTECTIVE FABRICS AND
OUTDOOR FABRICS
MARKET POSITION AND STRATEGY
TenCate is the market leader in America and
Europe in the field of protective fabrics. The
products offer protection against risks in the
workplace, for example from chemicals, fire
and static electricity. The market is tightly
regulated, as governments have enacted
employment legislation specifying safety
standards in certain risk areas. TenCate’s customers
are ready-to-wear clothing producers
and industrial clothing laundries offering a
total range of professional wear and work
clothing for end-users. TenCate focuses traditionally
on industrial markets, firefighting and
emergency services as well as the healthcare
sector.
In the last two years there has been very
strong growth in military markets, for which
TenCate has developed concept products.
After TenCate Defender M was selected as
the US standard for uniforms with fire-resistant
protection in 2008, this product has
become one of the main pillars of the strong
growth that has taken place in this field.
TenCate’s strategy is focused on the use of
end-user marketing to make target groups
aware of protection concepts in order to exert
an influence on specifications. TenCate’s
positioning is supported by a brand policy
based mainly on quality and functionality in
the field of high-grade protection. TenCate
has also the ability to supply customised products,
which have proved successful with the
US armed forces.
TenCate has a broad technological basis and
excellent access to the worldwide commodities
market. This is due to its long-term focus
on this niche market and its scale as a global
player.
TenCate further strengthened its market position
in 2008 by becoming the first western
company to enter into a co-operation agreement
with a producer in Asia (Thailand) for
the growing local market.
GENERAL PERFORMANCE
In Europe, the market for protective and outdoor
fabrics was under pressure. TenCate’s
focus in this market has traditionally been
mainly on the industrial segment of work
clothing and professional wear. The company
withdrew from the market for contract finishing
(pretreatment and finishing of fabrics for
third parties) during the year. As a result, the
organisation was slimmed down and a further
step was taken in the concentration of the
two production plants (Nijverdal, Netherlands).
The aim of this is to focus more on high-grade
materials. This operation involved the loss of
47 posts in mid-2008.
In the United States, TenCate succeeded in
maintaining growth in the field of protective
fabrics. Approximately half of the revenues
generated in the US in this market segment
related to defence applications, mostly
TenCate Defender M. This product, which
has only been on the market since May 2007,
Royal Ten Cate Annual Report 2008 53

has been developed for a wide field of application.
Wearing comfort and good value for
money are the key aspects. The expansion of
the rayon fibre capacity at the Austrian company
Lenzing AG, which supplies one of the
components for TenCate Defender M, enabled
TenCate to offer considerably higher volumes
in the market in the second half of
2008.
In addition to the US armed forces, there is
growing interest among armed forces in
Europe, because of the increasing concern for
security and the general level of protection is
being raised. The first orders from outside the
US are expected in 2009. Further product differentiation
in the Defender line led to an
expansion of the product range and additional
demand.
A substantial order for TenCate Gen2, worth
€ 35 million, was received in December 2008.
This is a product for military applications
based on aramid fibres and delivering a very
high level of protection.
The firefighting market in the US is the second
most important market. After a good
start, growth weakened somewhat in the second
half of the year. Full-year revenues were
54
Royal Ten Cate Annual Report 2008
higher, but budget cuts became evident in the
course of the year. TenCate in an excellent
position to offer cheaper solutions if the market
requires them for budgetary reasons.
In the US, TenCate achieved success in the
industrial market for firefighting protection
with the TenCate Tecasafe® product (TenCate
Tecasafe Plus) adapted for this market.
TenCate also generated growing revenues In
this industrial market.
In Asia, TenCate achieved success with
TenCate Tecasafe among major companies in
the oil industry. Asia and South America are
attractive growth markets.
TECHNOLOGICAL DEVELOPMENTS
Details of the technological developments in
this sector can be found on page 65, which
contains a description of the Technologies
sector. This includes Xennia Technology ltd. A
majority interest (75%) was acquired in this
British company in March 2008.
The technology platforms developed jointly by
Xennia and TenCate were used commercially
in 2008 in the ceramics industry through the
Spanish company Creta Print, an OEM (original
equipment manufacturer) partner which
produces and sells machines in this sector.
Continued development is taking place for
applications on textile substrates. Initial contacts
have been made with industrial partners.
Work is being carried out on the development
of the first industrial width test
machine which can be used to produce test
runs.
OUTLOOK
The signs coming from the market at the end
of 2008 pointed to a sharp slowdown. This
was mainly evident in the European market
for professional wear and work clothing.
Business investments fell back and projects
were deferred.
The measures taken to control costs helped
offset the less favourable market conditions.
By contrast, expectations for the defence
market remain positive. There is a good possibility
that – following the example of
America – the standard for fire-resistant protection
for military applications will be raised
in Europe.

SPACE & AEROSPACE COMPOSITES
AND ARMOUR COMPOSITES
MARKET POSITION AND STRATEGY
TenCate is one of the leading companies in
space and aerospace composites. These are
composite materials which replace traditional
materials (aluminium) and make an important
contribution to aspects such as weight saving
and reduced production costs. The material is
used for interior and structural parts.
In the US, TenCate became the number one in
composite materials for space applications
following the acquisition of YLA/CCS
Composites. TenCate is active in the aircraft
industry in the field of civil aviation and small
private aircraft, as well as in military aviation.
The main civil aviation customers are Airbus
and Boeing and their direct suppliers. TenCate
has initially focused on these two manufacturers
and the market will be further developed
from that basis. The start-up of production
for aerospace has required substantial
investments in the past few years. The
TenCate Cetex® material now occupies a
strong position. Among other products, the
leading edge of the wing (J-nose) and the
engine intakes are manufactured from this
material.
Composites for aviation and aerospace
TenCate is involved as a technology partner in
the development of materials and their use in
the development and design of new aircraft.
In acquiring the US company Phoenixx,
TenCate took an important step in the development
of UD technology for the aerospace
sector. This has strengthened its position as a
development partner and supplier to the
entire aircraft sector has been strengthened.
In view of the strong revenue growth in
armour composites, the relative importance
of the aviation sector is still limited.
Nevertheless, the building rates point to
strong future revenue growth, which began in
2008 with the launch of the Airbus A380.
TenCate is the global market leader in concepts
for ballistic protection for personnel and
materiel. Following the acquisition of Composix
in the United States, TenCate also has a
strong position in this field in America, which
is evidenced partly in the considerable orders
placed with TenCate in 2008. Customers are
mainly large industrial conglomerates in the
defence industry, manufacturers of trucks,
aircraft, helicopters etc. and the related suppliers.
The specifications are determined by
government bodies (defence ministries).
TenCate finalised the acquisition of YLA and CCS Composites in March 2008. YLA is a manufacturer of advanced thermoset com-
posites, which focuses on supplying manufacturers in the field of satellites and communication, aviation, defence and power gen-
eration. CCS Composites is a manufacturer of composite components. These are used in commercial and military aviation, satel-
lites, oil and gas extraction, and industrial applications. The Advanced Extremely High Frequency (AEHF) satellite communication
system is one example.
TenCate operates as a single group with
regard to the exchange of knowledge and
solutions, provided that is permitted by the
defence authorities.
TenCate occupies an important position as a
(fibre-)independent producer of composites.
The company processes a range of fibres
including aramid, glass and carbon on behalf
of third parties. TenCate has a wide range of
products, but has focused on aerospace and
armour because these are highly specialised
and high-grade markets with comparable
structures and dynamics. Weight saving is a
characteristic of both markets, but a range of
requirements and specifications form the
basis for the ultimate solution which has to
be embedded in the material.
Royal Ten Cate Annual Report 2008 55

GENERAL PERFORMANCE AND
OUTLOOK
SPACE & AEROSPACE COMPOSITES
Europe was dominated by the scaling up of
production for Airbus in 2008 for the launch
of the A380. There was volume growth, but
this was not reflected in earnings.
The scaling up involved costs incurred for the
addition of new capacity and qualification of
new products.
As a result of the financial crisis, the entire
industrial sector began to reduce inventories
at the end of the year, leading to delays in
deliveries. The longer-term market trend for
lightweight composite materials remains positive.
Strong growth was recorded in this market
segment In America, partly due to the
strengthened position following the acquisition
of YLA/CCS Composites. A great deal of
energy was devoted to the integration of the
various companies during the year.
This market also saw weakening growth
towards the end of the year, mainly due to a
sharp decline in the market small private jets.
Increased revenues in areas such as space
and communication (radomes) continued to
provide strong support for growth.
56
Royal Ten Cate Annual Report 2008
OUTLOOK FOR SPACE & AEROSPACE
COMPOSITES
As a result of the financial market crisis
referred to earlier, there is prevailing uncertainty
in this market. Although underlying
demand remains unchanged, uncertainty is
being fuelled by potential financing problems
for airlines wishing to purchase new aircraft.
However, neither Airbus nor Boeing have
announced any downward adjustments in production
volumes. Demand for small jets is
expected to decline in 2009.
Expectations remain positive for the military
aviation and space markets.
ARMOUR COMPOSITES
The largest proportion of revenues in composites
are related to armour. Although developments
in the Eastern European market were
positive, the developments in the American
market in 2008 were particularly encouraging.
Substantial orders were received for vehicle
armour at the beginning of 2008. TenCate
generated substantial revenues from the
MRAP (Mine Resistant Ambush Protection)
and Stryker programmes in America. There
are similar market requirements In Europe, but
they are on a much smaller scale and are more
fragmented.
TenCate composites at home in space
A positive factor is the co-operation with
other TenCate businesses in the field of protective
fabrics (TenCate Defender M).
Market synergies can be achieved here. Joint
presentations at trade fairs and joint marketing
strengthen TenCate’s proposition for the
defence market with regard to general protection
of personnel and materiel. The system
approach is also applied in this area. A conceptual
approach to theme of protection is
more effective than a more product-oriented
individual approach.
An important aspect is the project-based
character of the businesses, which means
among other things that they must be flexible
in their cost structure. The worldwide market
presence, the breadth of the product portfolio
and the conceptual approach are important
strengths in the organisation.
After travelling for over nine months, the Phoenixx Mars Lander made a successful landing on Mars on 26 May 2008. Among other
things, the space probe consists of TenCate Thermo-Lite, advanced thermoset composites produced by TenCate Advanced
Composites USA. This company has a leading position in the American space industry. The two science decks and sides of these
decks are also made from TenCate materials, as are the heat shield, the casing of the probe, and the landing radar antenna of the
telecommunication panel.

OUTLOOK FOR ARMOUR COMPOSITES
A number of extremely large number of
projects took place in 2008, and it is not certain
that the performance can be matched.
The annual revenues in this market depend
greatly on the number and size of projects. No
major programmes are planned in the short
term. Larger-scale projects are expected for
the MATV (MTAP All Terrain Vehicle) programme
at the end of 2009. The size and timing
of the potential revenues are uncertain.
There are various possibilities In Europe there
and the market is expected to continue to
yield a good level of revenues. These expectations
are based on the fact that government
budgets for security are not being cut as a
result of the economic situation. This is partly
reflected in the defence programmes already
announced for armour and modernisation programmes.
Royal Ten Cate Annual Report 2008 57

SAVING WATER. THE MOST NATURAL THING IN THE WORLD.
58 GRASS
Synthetic turf has a number of sustainable benefits. Synthetic turf
fields can be used far more intensively in top sports and mixed sports,
reducing the amount of space needed. Trainings and matches can be
held in all weather conditions.

In terms of maintenance, its water saving properties and reduced
pesticide use are the most notable properties. This also applies to
synthetic turf for landscaping, which is used for instance between the
bus lanes for the public transport facilities in the Roombeek district in
Enschede, a city in Twente.
Kees van der Meiden has been the
enthusiastic and motivated director of the
TwentseWelle Museum in Enschede since
2008. He travels by public transport on
a regular basis.
The museum is a modern open depot
museum, one of the biggest showcases in
Europe. Interactive presentations are used
to tell ‘The Big Story’ of the Twente region.
It describes how man found this region just
after the last ice age and decided to live
there. The museum focuses on nature,
hunting, agriculture, the development of
land to city and region, the (textile) industry,
innovation and technique. It also exhibits
TenCate materials.

Geosynthetics & Grass
KEY FIGURES
Geosynthetics & Grass 2008 2007 2006 2005 2004
in millions of euros unless stated otherwise
Revenues
Operating result before amortisation
497.8 468.3 397.5 273.9 231.9
(EBITA) 37.8 30.4 25.6 23.8 21.8
EBITA margin (%) 7.6 6.5 6.4 8.7 9.4
Operating result (EBIT) 34.8 28.3 25.5 23.8 21.8
Investments 29.0 44.9 28.9 10.5 5.3
Depreciation and amortisation 23.0 20.0 13.7 7.9 7.9
Net assets 427.4 354.8 215.8 206.4 98.2
Staff years at year-end
EBITA as percentage of net average
2,129 2,053 1,633 1,544 1,176
capital employed 8.8 8.9 12,9 22,6 21,9
ACTIVITIES
The Geosynthetics & Grass sector consists of
the following market groups:
◾ TenCate Geosynthetics and TenCate
Industrial Fabrics
Fabrics, grids and nonwovens for use in civil
engineering, the construction industry and the
environmental market, as well as industrial
fabrics for various applications, such as fish
farms, agribusiness, sports and recreation.
60
Royal Ten Cate Annual Report 2008
◾ TenCate Grass
Synthetic turf components, including synthetic
turf fibres and backing, for a wide range of
applications, such as football, hockey and
other sports pitches, as well as landscaping.
REVENUES AND RESULTS
The revenues of the Geosynthetics & Grass
sector rose 6% to € 497.8 million. On an organic
basis, the rise was 5%. The revenues grew
amid less favourable market conditions in the
geosynthetics market in the United States,
which is an important geographic market.
TenCate Mirafi ® builds dykes
Operating income before amortisation of
intangible fixed assets (EBITA) rose by 24% to
€ 37.8 million. The EBITA margin increased to
7.6% despite unfavourable trends in commodity
prices. At the beginning of 2008 TenCate
announced its intention that this margin
should rise to at least 10% within two years.
Organic EBITA growth amounted to 20%.
INVESTMENTS
The investments in this sector amounted to
€ 29.0 million. A major investment concerned
the production expansion for geosynthetics in
the Asian market. The new plant at Zhuhai
(China) was opened in June 2008. The synthetic
turf production capacity at Dayton (United
States) and in Dubai was also expanded.
GEOSYNTHETICS AND INDUSTRIAL
FABRICS
MARKET POSITION AND STRATEGY
TenCate is the largest producer worldwide in
the field of (high-strength) fabrics and nonwovens
for infrastructure, the construction
industry and environmental applications
(Geosynthetics) as well as industrial fabrics
for sectors including the agriculture, horticulture
and recreation sectors (Industrial
Fabrics). This group generates by far the larg-
The Calcasieu River is one of the lifelines between the harbour of Lake Charles in Louisiana and the Gulf of Mexico, one of the
world’s most vulnerable environments. The river is dredged systematically to preserve its depth. It is lined with a dyke created
from different qualities of TenCate Mirafi ® , materials produced by TenCate Geosynthetics North America. The materials provide
stability, adequate water permeability and can act as a storage facility. The dyke is sustainable and represents modest annual
maintenance costs. The harbour of Lake Charles in Louisiana will remain accessible for all water-based transport for decades to
come.

est proportion of sales in the first of these
market segments.
A distinction should be drawn between
wovens and nonwovens (fleeces). Woven
products are generally stronger and can withstand
greater forces. The non-woven market
can be characterised as a volume market. The
important factor for TenCate is that the company
is strongly represented in both market
segments and provides extensive technical
advice on the use of geosynthetics for civil
engineers, construction managers and contractors.
Here too, the aim is to achieve a system
approach focused on solutions.
Geosynthetics form part of the overall structure
and deliver functional added value.
The market is devoting increasing attention to
the positive environmental aspects of geosynthetics.
The alternatives are mostly concrete,
stone and steel, which often have to be transported
over long distances. By contrast, geosynthetics
use materials that are available
locally (sand, sludge). In the case of land reclamation
(hydraulic filling with sand), there is
usually considerably less need for dredging. In
many cases that has a positive effect on the
environment.
These environmental arguments and reduced
environmental impacts are increasingly being
incorporated in the promotion, design and
specifications.
GENERAL PERFORMANCE IN 2008
Persistent sluggishness in the American market
in 2008 resulted in a decrease in volumes
in the United States, one of the most important
markets for geosynthetics. The other
geographic markets (Europe and Asia) continued
to grow. In Asia in particular, where major
infrastructure projects took place in the civil
engineering sector, sales grew strongly.
Geographic markets such as Africa and South
America also showed growth.
TenCate’s market share in the United States
increased. Cost measures were taken at an
early stage in 2007 and 2008, which had a
positive impact on profitability.
The most salient development, which was of
importance for the entire Geosynthetics &
Grass sector, was the very sharp rise in raw
material costs in-mid 2008. Price rises put
margins under pressure for a considerable
time. TenCate can pass on rises in raw material
costs after a certain period, but sudden
movements of the scale seen in 2008 had a
clearly negative impact. The final months of
the year saw very steep fall in commodity
prices. This is traditionally the period in which
activities in the market (construction, contracting)
are at a low level.
A business simplification process is being
implemented throughout the TenCate
Geosynthetics Group, with priorities being
reset and attention being focused on the overall
product portfolio. In addition, internal cooperation
is being encouraged by means of
single management, redefinition of commercial
responsibilities, exchanges of product
knowledge and identification of worldwide
growth opportunities.
TenCate Geosynthetics is contributing to a
range of attractive projects worldwide. An
example is the repair work following the damage
caused by Hurricane Katrina in New
Orleans. In 2008, the work still involved mainly
small-scale repairs, but at the end of 2008
the group participated in a major restoration
project. Further related projects are expected
in 2009.
In Asia in particular, where the ground is less
stable, geosynthetics are used frequently in
Royal Ten Cate Annual Report 2008 61

the construction of roads and railway lines.
These are often large-scale projects.
TECHNOLOGICAL DEVELOPMENTS
TenCate sees a large market for the combination
of geosynthetics and sensors. Smart geosynthetics
can be used for security, monitoring
of engineering structures, artificial grass
(the new pitch at the Heracles Almelo football
club is equipped with sensors which measure
the load on the pitch) and the environment
(measurement of pollution from leaks in storage
basins and tanks etc.).
Trial projects have been successfully conducted
in recent years. TenCate is working with a
technology partner in the field of high-quality
optical fibres. In this context, TenCate is
launching new products, fitted with sensor
technology, in the market for land-based and
hydraulic applications. Together with its partners,
TenCate took part in the Dutch IJkdijk
project (see www.ijkdijk.nl) in order to conduct
trials in the intelligent dyke construction
system of the future.
OUTLOOK
All signs are pointing to a further weakening
of the global economy, which does not offer
good prospects for the construction sector
62
Royal Ten Cate Annual Report 2008
and the infrastructure projects market. In
addition to the American market, the other
geographic markets are expected to be affected
to a certain extent. By contrast, there are
signs that governments will promote projects
to stimulate economic growth. TenCate does
not expect this to lead to additional sales in
the first half of 2009, but such government
policies will have a positive impact in the
longer term. TenCate is also encouraged by
indications that government stimulus policies
should also have other positive environmental
effects, including in other areas of materials
engineering.
Past and future cost measures and the results
of the business simplification process will
have a further positive impact on profitability.
A decrease in sales therefore does not necessarily
have to lead to a decrease in operating
margins.
GRASS
MARKET POSITION AND STRATEGY
The TenCate Grass group has a leading position
worldwide in the market for synthetic turf
fibres and backing for synthetic turf. TenCate
is therefore almost at the beginning of the
supply chain. By entering into alliances with
marketing organisations which carry out
Cost-effective, environmentally friendly and simple
projects, TenCate contributes to increased
quality awareness, among both end-users and
companies in the value chain. In the case of
synthetic turf sports pitches, there is a certification
process which lays down the specifications
of sports pitches and thus determines
the performance (technical sporting characteristics).
In order to guarantee these characteristics
as effectively as possible during the
economic life of the pitch, close co-operation
is required in the business chain (production
of components, processing, installation and
maintenance). TenCate calls this co-operation
process end-user marketing. As part of the
process, alliances have been entered into and
equity interests acquired in various synthetic
turf businesses, such as Edel Grass and
GreenFields. The intended acquisition of an
interest in TigerTurf was announced in
February 2009.
Improvement in the performance of synthetic
turf sports pitches, particularly for football, is
one of the key challenges in this market. The
market penetration of synthetic turf in sport
has risen sharply in the last few years, but is
still fairly low worldwide. A greater degree of
co-operation, the use of only environmentally
friendly components, the reduction of pro-
Schnecksville, Pennsylvania, is growing steadily. One of the consequences of that growth is its increasing car traffic, necessitating
reconstruction and widening of the through road. However, the town wanted to protect the surrounding nature reserve, rich in
water, as much as possible from the work. The construction had to take up as little space as possible. The best solution – because
it was the most cost-effective, environmentally friendly and simply one – was a stabilised earth retaining wall with TenCate geo-
synthetics and geogrids. These materials are perfectly suited for layered soil stabilisation in such steep road structures.

curement and replacement costs as well as a
greater degree of certainty with regard to
performance will have a positive impact on
acceptance. Synthetic turf potentially offers
unprecedented benefits over the year compared
to natural grass as a sports playing surface.
The market position as a producer of synthetic
turf fibres is partly based on economies of
scale. TenCate is the only supplier in the market
with such a wide product portfolio (product
differentiation) in the field of sports and
landscaping. With production facilities in the
Netherlands, Dubai and the US, TenCate has
organised its production more cost-effectively
and the logistical lines to customers in the
sector are short.
The technology component has also been
strongly developed within the grass group.
TenCate has a large number of valuable patents.
Formulations are developed in-house
which give fibres high wear resistance and
make them flexible and resilient.
Technologies available within TenCate as a
whole are drawn upon to devise new methods
for the production of synthetic turf carpet.
TenCate has demonstrated its technological
leadership in new developments for many
years. The company also strives to develop a
safe product which makes a positive contribution
to the prevention of sports injuries (synthetic
turf for a safe and sustainable sporting
experience).
PERFORMANCE IN 2008
The Grass group generated revenue growth of
16%, resulting in a larger share of the total
revenues of the Geosynthetics & Grass sector.
The increase in revenues was partly
caused by the price effect. In volume terms,
growth fell short of the high expectations,
particularly due to the sluggishness market
conditions in the second half of 2008. The
sluggishness was partly due to the initial
sharp rise in raw material costs in the high
season, after which they fell back sharply.
The increased scarcity of financial resources
in the final four months of 2008 prevented
some operators from building inventories
before the year-end for the forthcoming season.
This extreme situation led to lower revenue
growth than could be expected on the
basis of general market forecasts. This situation
also put downward pressure on prices.
Production was partly shut down at the end
of 2008 in order to control working capital.
New products were developed in 2008 offering
superior quality characteristics. The
TenCate Monoslide ® Pro fibre is an example
of a resilient and durable fibre which has been
developed primarily for football. For a number
of strategic partners, specific products with
high functional characteristics are developed
for applications in hockey, tennis and football.
The XP fibre has been developed particularly
for intensively used facilities such as Cruyff
Courts ® , a concept developed jointly with
TenCate and provided by the Cruyff
Foundation. This fibre is manufactured on
unique machines in accordance with a specific
formulation. The TenCate Tapeslide ® XP
fibre is thus a unique and particularly wearresistant
yet soft product, which is particularly
sliding-friendly. Substantial revenue growth
was achieved with this product, demonstrating
that the characteristics of fibres lead to
considerable sale volumes worldwide. That is
an important success factor in the development
of unique fibres of high functional quality
marketed through TenCate-dedicated parties.
For this reason the decision was also taken
during the year to rationalise the range of volume
products. This concerned products with
Royal Ten Cate Annual Report 2008 63

too limited distinctive capability and products
at the end of their life cycle. The market for
such products is price sensitive. These products
provide little support for a conceptual
system approach and increased quality
awareness in end-markets.
Since 2008, the organisation has been managed
as an integrated group on the basis of a
regional market strategy and global account
management, with the optimum production
method (location) being chosen with the highest
level of efficiency. The synthetic turf
activities of Mattex in Dubai have been fully
integrated. An integrated customer approach
also applies among the TenCate businesses in
the United States and the Netherlands.
The sports market is currently the most important
market for synthetic turf, but the landscaping
market has the potential to surpass
the sports market. Water conservation is one
of the main reasons for using synthetic turf in
gardens and public green spaces.
Within the sports market, the football market
is seeing the highest growth. A sports-related
market is the market for multisport applications,
particularly in schools. This market is
focused on America and Asia. Each market
64
Royal Ten Cate Annual Report 2008
requires products with specific functional
characteristics.
TenCate generated its lowest growth in Asia
as a result of high import duties. These make
it more difficult for TenCate to compete in the
middle segment of the market. The lower market
segment is of such a low quality level that
TenCate does not cater to it.
TECHNOLOGICAL DEVELOPMENTS
TenCate originated as a producer of components.
The combination of components to a
large extent determines the technical sporting
characteristics. The substructure (layers
under the top layer) nevertheless provide certain
characteristics, such as shock absorption
and ball bouncing behaviour. TenCate’s technological
developments are aimed partly at
integrating as many functionalities as possible
in the top layer, thereby reducing the costs
of installation or renovation.
OUTLOOK
The demand side of the synthetic turf market
for sport applications remains structurally
sound. Synthetic turf offers large cost and
other advantages compared to natural grass,
particularly for intensively used sports pitches.
Water conservation is also increasingly a
Sensory synthetic turf system in Polman Stadium
motive for the choice of synthetic turf.
In Europe, however, this market is strongly
influenced by government budgets. Sports
complexes are often owned by local authorities.
The availability of these budgets for
sports can sometimes be delayed and priorities
may be temporarily changed. The current
tightness in the financial markets has a negative
impact on the synthetic turf sector. It
consists largely of private marketing and
installation companies which have relatively
limited financial buffers and have grown
strongly in the past in tandem with the growth
in the market (15-20% annually) also grown
strongly. It is uncertain how these companies
will fare in the market in future in the face of
a constrained credit policy.
The situation in the housing market and the
decline in consumer confidence are expected
to have a negative impact on the landscaping
market. However, this market is smaller than
the sports market.
Heracles Almelo will be playing its home matches at the Polman Stadium on a new synthetic turf system this season. The Two
Dimension Pro system was co-developed by TenCate. The synthetic turf hides an innovation: dozens of sensors are embedded in
the shock pad. Among other things, these register the impact on and condition of the turf. Heracles’ technical staff receives infor-
mation and advice on maintenance on the basis of these data.
TenCate sees the stadium as a showroom in which it can display the latest developments in synthetic turf. The players of Heracles
Almelo are very happy with the new synthetic turf system.

Technologies
INKJET TECHNOLOGY
◾ Xennia Technology ltd, UK
Specialist inkjet technology for industrial
applications
A majority holding (75%) was acquired in the
British company Xennia in March 2008. This
company is one of the few specialists in the
world in the field of inkjet technology for
industrial applications. Intensive co-operation
has already taken place with this company in
the European DigiTex-project. Within this
project, TenCate develops exclusive applications
for innovative digital finishing process
(Digifin). Production methods and processes
are developed jointly with partners for this
technological innovation.
Xennia originally focused mainly on research
and development assignments for third parties
on a contract basis. Xennia’s speciality is combining
the technology (hardware) with operating
systems (software) based on its own chemical
formulations for inks, coatings etc. Xennia
has a range of ink formulations for applications
in areas such as printed electronics (circuits,
infrared reflection, coatings with self-cleaning
effect on special inks for applications in the
printing sector (such as label printers).
Xennia leading in inkjet technology
The use of inkjet technology in industrial processes
is still in its infancy, but the growth
potential is enormous. The advantages of
inkjet technology are:
◾ Rapid reaction time to changing market
demand (reduction of inventories);
◾ Mass customisation;
◾ Cost benefits (production costs, environmental
costs, labour costs);
◾ Product innovations through new possibilities
offered by the technology;
◾ Accuracy and controllability
Due to the complexity of the technology and
the relatively high price of inks, there has as
yet been no exponential growth, but considerable
technological progress has already been
made in the past few years. As the potential
areas of application grow, the increased volumes
will also lead to a decrease in the price
of the special inks and coatings.
Xennia plays an important role in this process
as a developer and problem solver. The company
will continue to fulfil this role after the
acquisition of a 75% interest by TenCate. In
2008 the company received a number of new
requests for co-operation in development
projects. Co-operation with TenCate for devel-
TenCate owns a controlling interest in Xennia Technology, a leading company in digital inkjet technology. TenCate believes in the
opportunities of using inkjet technology for protective and outdoor fabrics and will be introducing products with new or improved
properties (smart textiles) in the near future. Moreover, this development represents a significant cost saving (in the field of envi-
ronmental considerations and energy, for instance) for TenCate. Digital inkjet technology is one of the answers to the trend
towards sustainable business and mass customisation – the cost-effective production of big customer-specific orders in small
series. It also represents opportunities in relation to the production of synthetic turf and composite materials.
opments in the technical textiles takes place
on an exclusive basis.
Xennia also has a number of hardware components
which have been developed in-house.
The sale of these components is also beginning
to make a substantial contribution to the
company’s revenues and results. Joint ventures
have been entered into with various
producers of print heads, including the British
company Xaar.
Within the foreseeable future, Xennia’s revenues
will consist mainly of the sale of components
and royalties on links/coatings and
other royalty income.
Xennia achieved growth in 2008 and made a
positive contribution to the company result.
Royal Ten Cate Annual Report 2008 65

AQUACULTURE. THE MOST NATURAL THING IN THE WORLD.
66 INDUSTRIAL FABRICS
The number of fish farms is growing worldwide. Modern locations can
be found in Scottish estuaries and Norwegian fjords.
Sustainable aquaculture is important for many reasons. Predator fish try
to eat the cultured fish. TenCate Aquagrid prevents this. The material is
much stronger than conventional nylon netting, reducing replacement
and maintenance costs. The smooth coating reduces fouling.

Micro-organisms attach much less easily to this material than to nylon.
The coating also prevents the fish from unravelling the netting. Cleaning
is easier because organisms are easily removed with a brush or highpressure
water spray. Anti-foulant is no longer necessary, which is
good news for cultured fish and their living environment.
At TenCate Industrial Fabrics in Almelo,
Maarten Bos, Gerrit Hofmans and
Jan-Willem Heezen constitute the sales
team for, among other things, TenCate
Aquagrid. They focus on the European
market.
Aquaculture is the world’s fastest growing
agrarian industry. In Norway, the sales
team works on bringing its innovative
products to the attention of aquafarmers.
The large-scale aquaculture of cod is the
main business in the Norwegian fjords.
On other continents, too, the grid product
is marketed by sales teams from America,
Australia and Asia.

Technical Components /
Holding & Services
KEY FIGURES
Technical Components /
Holding & Services 2008 2007 2006 2005 2004
in millions of euros unless stated otherwise
Revenues
Operating result before amortisation
53.8 67.4 93.3 127.0 179.2
(EBITA) – 3.9 2.4 * 4.2 – 1.5 1.7
Operating result (EBIT) – 3.9 2.4 3.7 – 1.8 1.7
Investments 7.3 1.0 2.4 2.5 2.7
Depreciation and amortisation 1.7 1.9 3.3 5.2 5.7
Staff years at year-end 657 729 696 863 1.254
*
Including exceptional items.
ACTIVITIES
◾ TenCate Enbi
Technical rollers and components particularly
for printers, copiers, fax machines, postal
sorting machines and automated teller
machines.
TenCate Enbi develops and produces technical
rollers and components based on rubber
and foam technology for paper transport and
image transfer in printers, copiers and fax
machines, as well as for postal sorting
machines and automated teller machines. The
group is one of the world’s major players in
68
Royal Ten Cate Annual Report 2008
this field. TenCate Enbi has sites at Beek (the
Netherlands), Opladen (Germany), Rétság
(Hungary), Shelbyville (Indiana, US), Rochester
(New York, US), Singapore and Zhuhai (China).
In the financial reports, the data for TenCate
Enbi are combined with those of the holding
company and the related TenCate services.
REVENUES AND RESULTS
The revenues of the Technical Components /
Holding & Services sector declined by 20%.
The EBITA of the Technical Components /
Holding & Services sector declined by € 6.3
million to - € 3.9 million. This decrease is
associated with the 2007 exceptional item of
€ 4.1 million referred to previously, the
decrease in the revenues and results of
TenCate Enbi and the recognition of a reorganisation
provision at TenCate Enbi in 2008.
MARKET POSITION AND STRATEGY
TenCate Enbi occupies an important position
as a leading supplier to major printer and copier
producers in Europe, America and now
also Asia. The products consist mainly of components
for image transfer (technical rollers)
and paper transport. The products have to
meet strict qualification requirements with
regard to technical characteristics.
TenCate Enbi is one of few suppliers to operate
on three continents: Europe, North
America and Asia. Its competitors mainly
operate locally. As an industrial supplier, it is
important as a partner in the logistics chain
to provide added value and serve as a sounding
board in technological development proc-

esses. Naturally, this all has to be done on the
basis of competitive terms and conditions.
In addition to the office market, TenCate Enbi
serves niche markets, such as postal sorting
machines, automated teller machines, photo
printers and (foam-based) insulation products.
A strong development capacity and the possibility
of wider knowledge deployment are key
conditions for success in this market, which
has increasingly short product life cycles.
PERFORMANCE IN 2008
The markets for printers and copiers came
under increasing pressure in 2008. The major
producers announced measures and reported
steep falls in earnings. TenCate Enbi was not
immune to this trend. In addition, customers
deferred new developments, as a result of
which revenues fell short of the expected
level.
One of the major customers insourced part of
its production, causing a loss of revenues for
TenCate Enbi. A long-term co-operation
arrangement was nevertheless entered into
with regard to future volumes, providing security
and compensation.
A positive development is the diversification
within Europe, which became necessary due
to the loss of a large part of the traditional
revenues in the European printer and copier
market. TenCate Enbi won a multi-year contract
in the field of boiler insulation for heating
systems.
The newly acquired projects in Asia have still
not generated expected revenue levels, as a
result of the general economic situation.
Further cost measures were taken in view of
the market situation. The sites in Hungary and
Germany were integrated, generating greater
commercial strength. Additional cost measures
have also been taken recently at the
head office of TenCate Enbi, including the
transfer of the R&D department to Singapore.
The strategic focus for TenCate Enbi is
not currently on the fix-it/exit-process.
Divestment is not a realistic proposition at
present. The emphasis is primarily on improving
the return and strengthening the market
position with a profitable product portfolio.
OUTLOOK
The outlook in the traditional markets, even in
Asia, is uncertain. Costs will be brought into
line with the market outlook in 2009. TenCate
will continue to strive for a strong positioning
for TenCate Enbi as a reliable high-quality
supplier. Continuity is a key principle in order
to provide maximum certainty for customers.
In this difficult economic situation, it is particularly
important to be part of an internationally
well-positioned company.
Royal Ten Cate Annual Report 2008 69

SUSTAINABILITY. THE MOST NATURAL THING IN THE WORLD.
70 GEOSYNTHETICS
Water plays a central part in the history of geotextile. After the great
inundation of the southwest Netherlands in 1953, protective resources
were vital. Initially, these were sandbags made from synthetic fabrics
that were used to seal holes in breached dykes. This was the world’s first
implementation of synthetic fibres in hydraulic engineering. From 1957
geotextiles were used in several applications in the Delta Works, which

protect the southwest Netherlands from a new storm surge with coastal
defences. In 2053, this will be 100 years ago.
Today, TenCate’s geosynthetics are the basis for a range of earth and
water works, such as Palm Island in Dubai, Hong Kong Airport, and the
coastal defences on the Eastern Seaboard.
In 2008, the Dutch water polo players
Marieke van den Ham and Rianne Guichelaar
won a gold medal with their 11 team
mates at the Beijing Olympics. Both started
their water polo careers in swimming pools
in Twente.
Rianne Guichelaar (1983) has been playing
water polo since she was eight years old.
She debuted in the Dutch water polo team
in May 2001. Rianne is left-handed and is a
member of swimming and water polo club
Het Ravijn from Nijverdal, Twente.
Marieke van den Ham (1983) has been
playing water polo since she was 14 years
old. She, too, is left-handed and started out
with a club in Wierden, Twente. In 2007,
she became the national champion with
her water polo club Polar Bears from Ede

72
Royal Ten Cate Annual Report 2008

Financial statements 2008
Royal Ten Cate
Consolidated profit and loss account 75
Consolidated balance sheet 76
Consolidated cash flow statement 78
Consolidated statement of changes
in Group equity 80
Notes to the consolidated financial statements 81
1 General information on Royal Ten Cate 81
2 General principles for financial reporting 81
3 Principles for the preparation
of the financial statements 81
4 Consolidation principles 82
5 Foreign currencies 83
6 Derivatives 83
7 Hedge accounting 84
8 Segment reporting 84
9 Revenues 84
10 Government subsidies 84
11 Raw materials and manufacturing supplies 85
12 Lease payments 85
13 Financial income and expenses 85
14 Profit tax 85
15 Earnings per share 86
16 New standards and interpretations
not yet applied 86
17 Principles for the preparation
of the cash flow statement 87
18 Intangible fixed assets 88
19 Tangible fixed assets 89
20 Inventories 90
21 Trade and other receivables 90
22 Cash and cash equivalents 90
23 Impairment 90
24 Share capital 91
Royal Ten Cate Annual Report 2008 73

25 Pension liabilities 91
26 Share-based payments 92
27 Provisions 93
28 Long-term debts 93
29 Trade creditors 94
30 Determination of the fair value
of business combinations 94
Notes to the consolidated profit and loss accaount 95
31 Segment information 95
32 Acquisitions and divestment
of operating companies 97
33 Personnel costs 99
34 Other operating costs 99
35 Financial income and expenses 100
36 Profit tax 100
37 Result from divested activities 101
Notes to the consolidated balance sheet 102
38 Intangible fixed assets 102
39 Tangible fixed assets 104
40 Financial fixed assets 105
41 Deferred profit tax assets and liabilities 106
42 Inventories 107
43 Trade debtors 107
44 Other receivables 107
45 Cash and cash equivalents 108
46 Total shareholders’ equity 108
47 Earnings per share 111
48 Long-term debts 112
49 Pension liabilities 114
50 Provisions 117
74
Royal Ten Cate Annual Report 2008
Other information 118
51 Financial instruments 118
52 Liabilities not shown in the balance sheet 124
53 Investment liabilities 124
54 Contingent liabilities 124
55 Post balance sheet events 125
56 Related parties 125
57 Estimates and judgments formed
by the management 127
Company financial statements 128
58 Company profit and loss account 128
59 Company balance sheet 128
Notes to the company financial statements 129
60 Financial fixed assets 129
61 Equity 129
62 Called and paid-up capital 130
63 Ordinary shares 130
64 Share premium reserve 130
65 Statutory reserve 131
66 Other reserves 131
67 Option plan 131
68 Provisions 134
69 Long-term liabilities 134
70 Short-term liabilities 134
71 Auditor’s fees 135
72 Liabilities not shown in the balance sheet 135

Consolidated profit and loss account
in millions of euros note 2008 2007
Revenues 31 1,032.6 886.0
Changes in inventories of finished products and work in progress – 18.0 – 11.7
Raw materials and manufacturing supplies 562.0 463.6
Work contracted out and other external expenses 60.7 54.9
Personnel costs 33 190.3 178.3
Depreciation and impairment 39 30.7 29.1
Amortisation 38 11.6 3.6
Other operating costs 34 111.5 98.8
Total operating expenses 948.8 816.6
OPERATING RESULT 83.8 69.4
Financial income 35 4.2 0.5
Financial expenses 35 – 17.9 – 11.8
NET FINANCIAL EXPENSES – 13.7 – 11.3
PRE-TAX INCOME 70.1 58.1
Profit tax
Result from ordinary operations after tax but before
36 – 19.1 – 11.9
divestment of activities 51.0 46.2
Result from divested activities after tax 37 – 0.3
RESULT AFTER TAX 51.0 46.5
ATTRIBUTABLE TO:
Shareholders of parent company (net income) 51.1 46.4
Minority interests – 0.1 0.1
Weighted average number of shares (x 1,000) 47 23,426 22,797
Weighted average number of shares after dilution (x 1,000) 47 23,495 22,967
Net income per share (in euros) 47 2.18 2.04
Diluted net income per share (in euros) 47 2.17 2.02
The notes in sections 1 to 72 form an integral part of these consolidated financial statements.
Royal Ten Cate Annual Report 2008 75

Consolidated balance sheet
in millions of euros note 31 December 2008 31 December 2007
FIXED ASSETS
Goodwill 38 165.1 115.1
Other intangible fixed assets 38 47.0 21.7
Tangible fixed assets 39 247.4 218.1
Financial fixed assets 40 10.9 6.2
Deferred profit tax assets 41 14.2 13.6
Total fixed assets 484.6 374.7
CURRENT ASSETS
Inventories 42 211.5 176.2
Receivables
Trade debtors 43 168.9 145.8
Profit tax receivables 2.5 3.8
Other receivables 44 16.3 16.6
Cash and cash equivalents 45 5.4 4.8
Total current assets 404.6 347.2
TOTAL ASSETS 889.2 721.9
76
Royal Ten Cate Annual Report 2008

in millions of euros note 31 December 2008 31 December 2007
GROUP EQUITY
Share capital 59.9 58.9
Share premium reserve 49.7 50.7
Statutory reserve – 5.9 – 19.5
Other reserves 212.1 173.6
Undistributed Result 51.1 46.4
Total shareholders’ equity 366.9 310.1
Minority interests 5.1 0.3
Group equity 372.0 310.4
LONG-TERM LIABILITIES
Long-term debts 48 316.2 222.3
Pension liabilities 49 24.3 28.5
Provisions 50 9.6 11.4
Deferred profit tax liabilities 41 5.2 0.9
Total long-term liabilities 355.3 263.1
SHORT-TERM LIABILITIES
Cash loans, overdrafts 45 19.4 12.5
Repayment of long-term debt 48 0.9 0.4
Trade creditors and other payables 132.6 128.9
Provisions 50 4.4 3.4
Profit tax liabilities 4.6 3.2
Total short-term liabilities 161.9 148.4
Total liabilities 517.2 411.5
TOTAL GROUP EQUITY AND LIABILITIES 889.2 721.9
The notes in sections 1 to 72 form an integral part of these consolidated financial statements.
Royal Ten Cate Annual Report 2008 77

Consolidated cash flow statement
in millions of euros note 2008 2007
CASH FLOW FROM OPERATING ACTIVITIES
Result after tax 51.0 46.5
Adjustments for:
Depreciation and impairment 39 30.7 29.1
Amortisation 38 11.6 3.6
Net interest income and expense 17.4 11.3
Profit tax 36 19.1 11.9
Result from divested activities 37 – – 0.3
Result from sale of tangible fixed assets 34 – 6.7 – 9.7
Costs of option scheme 1.7 1.1
Change in provisions and pension liabilities
CASH FLOW FROM OPERATING ACTIVITIES BEFORE CHANGE IN
– 2.2 – 5.3
WORKING CAPITAL 122.6 88.2
CHANGES IN WORKING CAPITAL
Inventories – 14.6 – 19.8
Receivables – 0.7 – 31.6
Short-term liabilities – 20.5 16.2
– 35.8 – 35.2
CASH FLOW FROM OPERATING ACTIVITIES 86.8 53.0
Interest paid – 18.7 – 11.1
Profit tax paid – 19.4 – 14.1
CASH FLOW FROM OPERATING ACTIVITIES 48.7 27.8
78
Royal Ten Cate Annual Report 2008

in millions of euros note 2008 2007
CASH FLOW FROM INVESTING ACTIVITIES
Income from sale of tangible fixed assets 34 12.8 11.1
Interest received – 0.3
Divested activities less cash – 7.8
Receipt of long-term receivables – 0.2
Acquisition of operating companies less cash acquired 32 – 88.1 – 182.9
Investments in intangible fixed assets 38 – 1.2 – 1.4
Investments in tangible fixed assets 39 – 46.8 – 61.5
Increase in long-term receivables – – 0.5
CASH FLOW FROM INVESTING ACTIVITIES – 123.3 – 226.9
CASH FLOW FROM OPERATING AND INVESTING ACTIVITIES – 74.6 – 199.1
CASH FLOW FROM FINANCING ACTIVITIES
Issue of shares – 50.6
Issue of repurchased shares 0.4 1.0
Repurchase of own shares – – 4.2
Drawdown of long-term debt 74.4 215.3
Repayment of long-term debt – – 56.2
Dividend payment to shareholders – 8.6 – 4.7
CASH FLOW FROM FINANCING ACTIVITIES 66.2 201.8
CHANGE IN CASH – 8.4 2.7
Cash on 1 January 45 – 7.7 – 22.4
Currency differences in cash 2.1 12.0
CASH AS AT 31 DECEMBER 45 – 14.0 – 7.7
The notes in sections 1 to 72 form an integral part of these consolidated financial statements.
Royal Ten Cate Annual Report 2008 79

Consolidated statement of changes in group equity
in millions of euros
80
Royal Ten Cate Annual Report 2008
Share
capital
Share
premium
Retained
earnings of
associated
companies
Translation
differences
Retained Undistributed Undistributed
earnings profit result
Total
shareholders’
equity
Minority
interest
BALANCE AS AT
1 JANUARY 2007
Foreign currency translation
52.7 6.3 – – 2.0 105.2 0.5 76.0 238.7 0.2 238.9
differences – 18.8 – 18.8 – 18.8
Result for 2007 46.4 46.4 0.1 46.5
TOTAL RESULT FOR 2007 – – – – 18.8 – – 46.4 27.6 0.1 27.7
Appropriation of 2006 profit 1.3 58.5 – 59.8 – –
Dividend paid – 4.7 – 4.7 – 4.7
Stock dividend 0.9 – 0.9 11.5 – 11.5 – –
Issue of shares 5.3 45.3 50.6 50.6
Share-based payments 1.1 1.1 1.1
Issue of repurchased shares 1.0 1.0 1.0
Repurchase of own shares – 4.2 – 4.2 – 4.2
TOTAL OTHER CHANGES
BALANCE AS AT
6.2 44.4 1.3 – 67.9 – – 76.0 43.8 – 43.8
31 DECEMBER 2007 58.9 50.7 1.3 – 20.8 173.1 0.5 46.4 310.1 0.3 310.4
BALANCE AS AT
1 JANUARY 2008
Foreign exchange translation
58.9 50.7 1.3 – 20.8 173.1 0.5 46.4 310.1 0.3 310.4
differences 12.2 12.2 – 0.4 11.8
Result for 2008 51.1 51.1 – 0.1 51.0
TOTAL RESULT FOR 2008 – – – 12.2 – – 51.1 63.3 – 0.5 62.8
Appropriation of 2007 profit 1.4 26.5 – 0.4 – 27.5 – – –
Dividend paid – 8.6 – 8.6 – – 8.6
Stock dividend 1.0 – 1.0 10.3 – 10.3 – – –
Share-based payments
Changes as a result of
1.7 1.7 1.7
consolidation 5.3 5.3
Issue of repurchased shares 0.4 0.4 0.4
TOTAL OTHER CHANGES 1.0 – 1.0 1.4 – 38.9 – 0.4 – 46.4 – 6.5 5.3 – 1.2
BALANCE AS AT
31 DECEMBER 2008 59.9 49.7 2.7 – 8.6 212.0 0.1 51.1 366.9 5.1 372.0
The notes in sections 1 to 72 form an integral part of these consolidated financial statements.
Group
equity

Notes to the consolidated financial statements
ACCOUNTING STANDARDS
1 GENERAL INFORMATION ON ROYAL TEN CATE
Koninklijke Ten Cate nv (Royal Ten Cate) (the company) is established in Almelo, the Netherlands.
The consolidated financial statements of the company comprise the financial statements of the company and its
operating companies (referred to collectively as the ‘Group’) and the Group’s interests in other (non-consolidated)
participating interests and proportionally consolidated joint ventures. The financial statements have been
prepared by the Executive Board.
The 2008 annual report and accounts were discussed on 3 March 2009 at the meeting of the Supervisory Board.
They were released by the Executive Board for publication on 4 March 2009. They will be presented to the
general meeting of shareholders for adoption on 9 April 2009.
The parent company financial statements form part of the 2008 financial statements of Royal Ten Cate. Royal
Ten Cate has made use of the exemption pursuant to article 2:402 of Book 2 of the Netherlands Civil Code with
regard to the parent company financial statements.
The original financial statements were prepared in the Dutch language. This document is a version translated
into English. In the event of any differences between the English and the Dutch text, the latter shall prevail.
2 GENERAL PRINCIPLES FOR FINANCIAL REPORTING
The consolidated financial statements have been prepared in accordance with International Financial Reporting
Standards, as adopted within the EU (hereinafter EU-IFRS) and with Part 9 of Book 2 of the Netherlands Civil
Code.
3 PRINCIPLES FOR THE PREPARATION OF THE FINANCIAL STATEMENTS
The financial statements are presented in millions of euros, unless stated otherwise. The financial statements
have been prepared on the basis of historical cost, except for the following assets and liabilities, which are
valued at fair value: derivatives, financial instruments held for trading purposes.
In preparing the financial statements, the Executive Board has used estimates and assumptions which affect
the amounts stated in the consolidated financial statements (see note 57). Changes in estimates and assumptions
may affect amounts reported in future years. The actual results may differ from such estimates.
The accounting principles set out below have been applied consistently by the Group’s operating companies and
joint ventures for the periods presented in these consolidated financial statements.
Royal Ten Cate Annual Report 2008 81

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
4 CONSOLIDATION PRINCIPLES
4.1 Operating companies
Operating companies are undertakings in which the company directly and/or indirectly has a controlling interest.
The company has a direct or indirect controlling interest if it can determine the financial and operational policy
of a company in such a way that it can derive a benefit from the activities of that company. The financial
statements of operating companies are included in the consolidated financial statements from the first to
the last date on which control is exercised. Minority interests in the Group result and the shareholders equity
of the Group are stated separately.
4.2 Associated companies, joint ventures and other participating interests
Associated companies are undertakings in which the Group can exercise significant influence on the financial
and operational policy, but in which it has no controlling interest and which are not therefore included in the
consolidation. Joint ventures are companies over which the Group has joint control and in which such control
has been set forth in an agreement and in which strategic decisions on the financial and operational policy
are taken on the basis of unanimity.
Joint ventures are proportionally consolidated. Associated companies are accounted for using the equity
method.
If the Group’s share in losses exceeds the book value of the associated company, the book value is stated at
zero and further losses are no longer stated, unless the Group has entered into a legally enforceable or actual
liability on behalf of the associated company.
Other participating interests over which no significant influence is exercised are valued at fair value and
the dividend is stated in the profit and loss account when it is made payable.
If no fair value is available and other methods do not result in a reasonable estimate, the investment is valued
at cost less impairment.
4.3 Elimination of transactions on consolidation
Intragroup balances and transactions between the operating companies in the Group and unrealised profits and
losses on such transactions are eliminated in the preparation of the consolidated financial statements. Unrealised
profits on Group transactions with proportionally consolidated joint ventures are eliminated in proportion to
the Group’s interest in the joint venture. Unrealised losses are eliminated in the same way as unrealised profits,
but only to the extent that there is no indication of impairment.
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5 FOREIGN CURRENCIES
5.1 Transactions in foreign currencies
Receivables and liabilities denominated in foreign currencies are converted into euros at the rate prevailing on
the balance sheet date. Transactions in foreign currencies are converted into euros at the exchange rate applying
on the transaction date. Foreign exchange translation differences are stated in the profit and loss account.
Non-monetary assets and liabilities which are denominated in foreign currencies and valued on the basis of
historical cost are converted into euros at the exchange rate on the transaction date.
5.2 Foreign operating companies and joint ventures
The profit and loss accounts of foreign operating companies are converted into euros at the exchange rate on
the transaction date. Assets and liabilities including goodwill and fair value adjustments in respect of acquisitions
are converted at the rate on the balance sheet date. The resulting translation differences are carried in
equity. If a foreign activity is fully or partly divested, the respective amount is transferred from equity to the
profit and loss account. The rates of the main currencies against the euro are as follows
Closing rate Average rate
2008 2007 2008 2007
US dollar 1.39 1.46 1.47 1.37
Hungarian forint (100) 2.67 2.54 2.52 2.52
Danish krone 7.44 7.45 7.46 7.45
UAE dirham 5.12 5.36 5.41 5.03
Singapore dollar 2.00 2.12 2.08 2.06
Malaysian ringgit 4.92 4.88 4.90 4.72
British pound 0.96 0.74 0.79 0.69
Thai bhat (100) 0.50 0.45 0.49 0.45
Chinese yuan renminbi 9.50 10.75 10.27 10.43
Australian dollar 2.03 1.68 1.74 1.64
6 DERIVATIVES
Royal Ten Cate uses derivatives in order to hedge exchange rate and interest rate risks resulting from operating,
financing and investing activities. Examples are interest rate caps and swaps as well as currency options and
forward contracts. In accordance with its treasury policy, the Group does not use derivatives for trading purposes.
Nor does it issue such derivatives. Any derivatives which do not meet the requirements for hedge accounting
are stated as trading instruments. Derivatives are valued at fair value. The inclusion of the resulting income or
expense depends on the nature of the item being hedged. The fair value of derivatives is the estimated amount
which the Group would receive or would have to pay in order to terminate the derivative on the balance sheet
date, taking into account the current exchange rates, the current interest rate and the current creditworthiness
of the counterparty/counterparties to the derivative.
Royal Ten Cate Annual Report 2008 83

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
7 HEDGE ACCOUNTING
Where specific conditions are met (IAS 39 88), hedge accounting can be applied. Under these specific conditions,
there must be a demonstrable one-on-one relationship between the risk and the hedge instrument.
In such a situation, the profit or loss is stated directly in equity (in the reserve for hedging results) during
the term of the risk and the hedge instrument. When the risk and/or the hedge instrument terminates, the result
is stated in the profit and loss account or in the cost price of the first-time inclusion of the non-financial asset
or liability. If no hedge accounting is applied, profits or losses on the hedge instrument are always stated in the
profit and loss account. Hedge accounting was applied for the first time in the 2008 financial statements
in respect of a number of contracts.
8 SEGMENT REPORTING
A segment is a clearly distinguishable part of the Group which is engaged in the supply of products or services
(business segment), or the supply of products or services in a particular economic environment (geographic
segment) which has a different risk and return profile than other segments. The Group’s primary segmentation
is based on business segments.
9 REVENUES
Revenues comprise the revenues from goods and services supplied to third parties, less discounts and any taxes
due.
Revenues from sales of goods are recognised in the profit and loss account when the main risks and benefits
of ownership have been transferred to the purchaser.
Revenues from services supplied are recognised in the profit and loss account in proportion to the extent of performance
of the work applying on the balance sheet date. No revenues are recognised if the extent of the revenues
cannot be reliably determined and if significant uncertainties remain with regard to the collection of the
remuneration due, the associated costs or the possible return of goods, and also if there is a protracted management
involvement with such goods.
10 GOVERNMENT SUBSIDIES
Subsidies granted as compensation for expenses incurred by the Group are systematically stated as income in
the profit and loss account in the same period as that in which the subsidisable expenses are incurred and as
soon as there is a reasonable certainty that they will be received and that the Group will fulfil the attached conditions.
Subsidies granted to compensate the Group for the cost of an asset are systematically stated as cost of
sales in the profit and loss account during the useful life of the asset.
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11 RAW MATERIALS AND MANUFACTURING SUPPLIES
The consumption of raw materials and manufacturing supplies is calculated on the basis of historical cost.
12 LEASE PAYMENTS
12.1 Operational leasing
Lease payments in respect of operational leasing are stated in the profit and loss account on a straight-line
basis over the lease term.
12.2 Financial leasing
Lease payments are stated partly as financing charges and partly as a repayment of the outstanding liability.
The financing costs are allocated to each period of the total lease term in such a way that this results in a constant
periodic interest rate on the residual balance of the liability.
13 FINANCIAL INCOME AND EXPENSES
The financial income and expenses include the interest charges on cash, interest charges on financial lease
payments, foreign exchange translation differences and results of derivatives for which no hedge accounting is
used. Interest income and expenses are included in the profit and loss account on the basis of the effective
interest method.
14 PROFIT TAX
The tax on profit for the financial year includes the taxation that is payable, available for set-off and deferred in
respect of the reporting period. The tax is stated in the profit and loss account, except where it relates to items
which are included directly in equity, in which case the tax is stated in equity. Tax that is payable and available
for set-off in respect of the reporting period is the tax which is expected to be payable on the taxable result,
calculated on the basis of tax rates which have been set on the balance sheet date, or on which a firm decision
has been taken by the balance sheet date, and corrections to tax payable in respect of previous years.
A receivable/provision is recognised for deferred tax differences using the balance sheet liability method for
timing differences between the book value of assets and liabilities for the financial reporting and the fiscal
book value of the items concerned. No provision is formed in respect of two timing differences: non-tax-deductible
goodwill and the difference between the economic and fiscal value of operating companies, associated
companies and a joint venture. The amount of the provision for deferred profit tax liabilities is based on the
method by which the book value of the assets and liabilities is expected to be realised or settled, using tax
rates which, on the balance sheet date, have been specified by law or in respect of which an effective legal
decision has been taken.The amount of deferred profit tax assets is reduced to the extent that it is no longer
likely that the associated tax benefit will be realised. Additional taxes on the profit in respect of dividend payments
are stated at the same time as the liability to pay the respective dividend.
Royal Ten Cate Annual Report 2008 85

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Deferred profit tax assets and liabilities are offset if there is a legally enforceable right to offset the profit tax
assets and liabilities and such assets and liabilities relate to profit tax imposed by the same tax authority on the
same taxable entity, or on different taxable entities which intend to offset the profit tax assets and liabilities or
whose profit tax assets and liabilities are realised simultaneously.
A deferred profit tax asset is only recognised to the extent that it is likely that future taxable profits will be
available which can be applied for the realisation of the timing difference. Deferred profit tax assets are
reviewed on each reporting date and reduced if it is no longer likely that the associated tax benefit will be realised.
15 EARNINGS PER SHARE
The Group presents ordinary and diluted earnings per share for the ordinary share capital. The net income per
ordinary share is calculated on the basis of the profit attributable to shareholders or the loss divided by the
weighted average number of ordinary shares in issue during the reporting period. In the calculation of the diluted
earnings, the weighted average number of ordinary shares in issue during the reporting period is corrected to
take account of the potential dilutive effect on the ordinary shares arising from the share options granted to
employees.
16 NEW STANDARDS AND INTERPRETATIONS NOT YET APPLIED
A number of new standards, amendments to standards and interpretations were not in force in 2008 and have
therefore not been applied to these consolidated financial statements:
◾ IFRS 8 – Operating Segments: introduces the segment reporting management approach. This becomes compulsory
with effect from 2009 and is consistent with the breakdown which the management applies for
internal purposes. The impact of IFRS 8 on TenCate is currently being analysed.
◾ Revision of IAS 23 – Borrowing Costs: the existing possibility of charging borrowing costs relating to the
construction or purchase of an asset directly to the result is no longer permitted under the amended standard.
Instead, borrowing costs must be capitalised. This already happens in the case of significant investments.
◾ IFRIC 14 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction
makes clear that pension assets are available if, on the balance sheet date, there is an unconditional right
to dispose of the surplus now or in the future in the form of repayments and/or future contribution reductions.
Application of IFRIC 14 is compulsory in the case of the Group’s consolidated financial statements for
2009. IFRIC 14 is not expected to have any impact on TenCate.
◾ IFRS 3 – Business Combinations will be applied prospectively to the consolidated financial statements from
2010 and therefore has no impact on prior periods.
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The revised IFRS 3 Business Combinations (2008) includes the following amendments, which will probably
be relevant to the Group’s activities:
◽ The definition of business has been extended; it can therefore be expected that a larger number of
acquisitions will be treated as business combinations;
◽ Conditional remuneration is valued at fair value; changes after first-time inclusion are stated in the
profit and loss account;
◽ Except in the case of share and debt issue costs, transaction costs are charged to the result in the period
in which they are incurred;
◽ Any interest already held in the acquired party is valued at fair value; the profit or loss is stated in the
profit and loss account;
◽ The acquirer can elect, on a transaction-by-transaction basis, to value a minority interest either at fair
value or at the minority interest’s share of the identifiable assets and liabilities of the acquiree.
◾ The amended IAS 27 Consolidated and Separate Financial Statements (2008) states that changes in the
group’s ownership interest in a subsidiary, where control is retained, must be stated as a share transaction.
If the group ceases to have control of a subsidiary, any residual interest in the former subsidiary must be
measured at fair value, with the resulting profit or loss being stated in the profit and loss account. Application
of the amendments to IAS 27 will be compulsory in respect of the Group’s consolidated financial statements
for 2010.
◾ The following new or amended standards are not expected to have any material impact on TenCate:
◽ Revised IAS 1 – Presentation of Financial Statements
◽ IFRS 2 – Share-based Payment – provisions for unconditional promise and cancellation
◽ IFRIC 13 – Customer Loyalty Programmes
◽ IAS 39 – Financial Instruments: Recognition and Measurement – qualifying hedged positions
◽ IFRIC 15 – Agreements for the Construction of Real Estate
◽ IFRIC 16 – Hedges of a Net Investment in a Foreign Operation
◽ IFRIC 17 – Distributions of Non-cash Assets to Owners
◽ IFRIC 18 – Transfers of Assets from Customers.
17 PRINCIPLES FOR THE PREPARATION OF THE CASH FLOW STATEMENT
Cash flows from operating activities are presented on the basis of the indirect method. Cash flows in foreign
currencies are converted at the exchange rate on the date of the cash flow or on a cash basis. Changes which
have not resulted in cash flows, such as exchange rate differences, acquisitions, financial lease liabilities,
changes in fair value, recognised share-related transactions and similar transactions are eliminated in this
statement. Dividends paid to shareholders are included in the cash flow from financing activities. Dividends
received are stated in the cash flow from investing activities, and interest paid is stated in the cash flow from
operating activities. Overdrafts which are immediately repayable and form part of the cash management of the
Group are included in the balance of cash and bank current accounts as part of the consolidated cash flow
statement.
Royal Ten Cate Annual Report 2008 87

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
18 INTANGIBLE FIXED ASSETS
18.1 Goodwill
All acquisitions are accounted for using the purchase accounting method. Goodwill results from the acquisition
of operating companies, associated companies and joint ventures and is the difference between the cost of the
acquisition and the net fair value of the acquired identifiable assets, liabilities and contingent liabilities.
Up until 2000, goodwill was charged to equity. In the years 2001 to 2003 it was stated at cost less amortisation.
Since 1 January 2004, goodwill has no longer been amortised but has been valued at cost less accumulated
impairments (impairments). Goodwill is allocated to cash generating units.
18.2 Other intangible fixed assets
The other intangible fixed assets consist of:
Research and development
Costs of research activities carried out with a view to acquiring new scientific or technical knowledge and
insights are stated as an expense in the profit and loss account when they are incurred.
Costs of development activities, in which research results are used for a plan or design for the production of
new or substantially improved products and processes, are capitalised if the product or process is technically
and commercially feasible and the Group has sufficient resources to complete the development. The capitalised
costs include material costs, direct labour costs and an appropriate portion of directly attributable overheads.
Other development costs are stated as an expense in the profit and loss account when they are incurred. The
capitalised development costs are valued at cost less accumulated amortisation and impairments (see note 23).
Other intangible fixed assets
Other intangible fixed assets acquired by the Group relate to customer relationships, trademark rights, patents
and similar rights. These intangible assets are valued at cost less accumulated amortisation and impairments
(see note 23). Costs of internally generated goodwill and trademarks are stated as an expense in the profit and
loss account when they are incurred.
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18.3 Expenses after first-time inclusion
Expenses after the first-time inclusion of capitalised intangible fixed assets are capitalised only if they lead to
an increase in the future economic benefits embodied in the particular asset to which they relate. All other
expenses are charged to the profit and loss account when they are incurred.
18.4 Amortisation
Amortisation costs are charged to the profit and loss account by the straight-line method on the basis of the
estimated useful life of intangible fixed assets. Goodwill is tested each year on the balance sheet date to assess
whether any impairment has arisen. The amortisation of other intangible fixed assets begins as soon as the
assets are available for use.
The amortisation method, economic life and residual value are assessed periodically.
The estimated economic life is as follows:
◾ Development costs 5 years
◾ Other intangible fixed assets 3 – 14 years
19 TANGIBLE FIXED ASSETS
19.1 Owned assets
Tangible fixed assets are valued at cost less accumulated depreciation (see note 19.4) and impairments (see
note 23).
The cost price of self-manufactured assets comprises material costs, direct labour costs and an appropriate
portion of directly attributable overheads. The financing costs relating to the construction or purchase of
a significant asset are also included in the determination of the cost price.
Where tangible fixed assets consist of components with differing useful lives, these are stated as separate
items under tangible fixed assets.
19.2 Leased assets
Lease agreements in which the Group actually assumes all the risks and benefits of ownership are classified
as financial leases. Tangible fixed assets which are required by means of financial leases are valued at
the lower of fair value and the discounted value of the minimum lease payments at the inception of the lease,
less accumulated depreciation (see note 19.4) and impairments (see note 23). Lease payments are stated as
described in note 12.
19.3 Expenses after first-time inclusion
Expenses incurred for the replacement of a component of a tangible fixed asset are capitalised provided the
future economic benefits resulting from the asset accrue to the Group and the costs of such replacement
expenses can be reliably determined. All other expenses are charged to the profit and loss account when they
are incurred.
Royal Ten Cate Annual Report 2008 89

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
19.4 Depreciation
Depreciation is charged to the profit and loss account on the basis of the straight-line method over the estimated
economic life of each component of a tangible fixed asset. Land is not depreciated. The estimated economic
life is as follows::
◾ buildings 33 years
◾ fixtures and installations in buildings 10 years
◾ plant and equipment 7 – 10 years
◾ inventory 5 years
◾ computers and office equipment 3 – 5 years
The depreciation method, economic life and residual value are assessed periodically.
20 INVENTORIES
Inventories are stated at the lower of cost or net realisable value. The net realisable value is the estimated sale
price in ordinary operations, less the estimated costs of completion and the sale costs. The cost of inventories is
based on the FIFO (first in, first out) principle and includes the costs incurred on the acquisition of the inventories,
their production or conversion and bringing them to the existing location and condition. In the case of
inventories of finished products and work in progress, the cost price includes an appropriate portion of the indirect
costs based on the normal production capacity.
21 TRADE AND OTHER RECEIVABLES
Trade and other receivables with a term of less than one year are stated at amortised cost less impairments.
22 CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash balances and immediately claimable credit balances. Current account
credit balances at banks which are immediately claimable and form an integral part of the Group’s cash management
are included as part of the cash and cash equivalents for the purposes of the cash flow statement.
23 IMPAIRMENT
The book value of the Group’s assets, except that of inventories (see note 20) and deferred profit tax assets (see
note 14) is examined at each balance sheet date in order to determine whether there are indications of impairment.
If there are such indications, an estimate is made of the realisable value of the asset. In the case of goodwill
and intangible fixed assets which are not yet available for use, the realisable value is estimated at each
balance sheet date.
An impairment is recognised when the book value of an asset or the cash generating unit thereof is higher than
the realisable value. It is first charged to any allocated goodwill and then deducted from the book value of the
other assets.
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23.1 Calculation of the realisable value
The realisable value is the higher of the recoverable amount, less sale costs, and the value in use. In determining
the value in use, the discounted value of the estimated future cash flows is calculated using a discount rate
after tax which reflects both the current market valuations of the time value of money and the specific risks
relating to the asset. In the case of an asset which generates no cash receipts which are to a large degree independent
of other assets, the realisable value is determined for the cash generating unit to which the asset
belongs.
23.2 Reversal of impairments
An impairment relating to goodwill cannot be reversed. In the case of other assets, an assessment is made on
the balance sheet date as to whether an impairment must be reversed if there is a change in the estimates on
which the realisable value was based.
An impairment is only reversed to the extent that the book value of the asset is no higher than the book value
which would have been determined after the deduction of depreciation, if no impairment had been recognised.
24 SHARE CAPITAL
24.1 Share capital
The share capital is classified as equity.
24.2 Repurchase of own shares
On the repurchase of share capital which is stated in the balance sheet as equity, the amount of the paid consideration,
including directly attributable costs, is stated as a change in equity. Repurchased shares are classified
under ‘Other reserves’ and presented as a deduction from total assets.
24.3 Dividend
Dividend is stated as a liability in the period in which it is declared.
25 PENSION LIABILITIES
25.1 Defined contribution schemes
Liabilities relating to contributions to defined contribution pension schemes are charged to the profit and loss
account in the period to which they relate.
Royal Ten Cate Annual Report 2008 91

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
25.2 Defined benefit schemes
The Group’s net liability in respect of defined benefit pension schemes is calculated separately for each scheme
by estimating the amount of the future payments which employees have earned in the present and previous
reporting periods in exchange for their services. This payment is discounted in order to determine the present
day value, with the fair value of the fund investments being deducted. The discount rate is the yield on the balance
sheet date of bonds which have an AA credit rating and a period to maturity which approximates the term
of the Group’s liabilities and are denominated in the currency in which the benefits are paid. The calculation
is performed by an authorised actuary on the basis of the projected unit credit method. If the payments under
a pension scheme are increased, the proportion of the higher payment which relates to employees’ past service
is stated as an expense in the profit and loss account on a straight-line basis over the average period up to the
granting of the rights. If the rights are granted immediately, the expense is stated immediately in the profit and
loss account.
With regard to the actuarial profits and losses that arise in the calculation of the Group’s liability under
a pension scheme, in so far as any accumulated actuarial profits or losses not yet recognised amount to more
than 10% of the discounted value of the gross liabilities in respect of defined benefit pension rights or of the
fair value of the fund investments if this is greater (in other words: remains within the corridor), that element is
recognised in the profit and loss account over the expected average remaining service period of the employees
participating in the scheme. For the remainder, the actuarial profit or loss is not recognised.
When the calculation results in a receivable for the Group, the recognised asset item is limited to the net total
of any actuarial losses and back-service costs and the discounted value of the lower of future repayments
by the fund and future pension contributions.
26 SHARE-BASED PAYMENTS
The option scheme enables the Group’s management to acquire shares in the legal entity.
The fair value of the granted options is stated under personnel costs, with a corresponding entry in equity.
The fair value is determined on the grant date and is allocated over the period up to the time at which the management
acquires an unconditional right to the options. The fair value of the granted options is determined on
the basis of the binomial model, taking account of the conditions under which the options have been granted.
Valuation factors include the share price on the valuation date, the exercise price of the instrument, the expected
volatility, the weighted average expected term of the instruments (based on past experience and the conduct
of the instrument holders), the expected dividends and the risk-free interest rate (based on government bonds).
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27 PROVISIONS
A provision is recognised in the balance sheet if there is a legally enforceable or actual obligation as a result of
a past event and it is likely that an outflow of resources will be required to settle such liability and such outflow
can be reliably estimated. If the effect of this is material, the provisions are determined by discounting the
expected future cash flows using a discount rate before tax which reflects the current market valuations of the
time value of money and, if necessary, the specific risks of the liability.
27.1 Claims and guarantees
The provision for claims relates to damages claims and any litigation costs. The provision for guarantees relates
to goods and services supplied and is based on historical guarantee data.
27.2 Reorganisation
Reorganisation provisions are included if the Group has formalised a detailed plan for the reorganisation and
has begun or publicly announced the reorganisation. The reorganisation provision does not include costs
incurred in relation to future activities.
27.3 Other personnel liabilities
Long service leave and other allowances such as anniversaries form part of the provisions under other personnel
liabilities. These provisions are accumulated over the respective period as in the case of defined benefit
pension schemes, albeit that actuarial profits or losses are included in the profit and loss account in the period
in which they arise.
27.4 Environment
In accordance with the Group’s published environmental policy and the applicable legal obligations, a provision
for the clearance of environmental pollution is formed when the pollution occurs.
28 LONG-TERM DEBTS
When included for the first time, interest-bearing loans received are stated at fair value less directly attributable
transaction costs. After the first-time inclusion, interest-bearing loans are valued at amortised cost, with the
difference between the cost and the redemption price being stated in the profit and loss account on the basis of
the effective interest method over the term of the loans.
Royal Ten Cate Annual Report 2008 93

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
29 TRADE CREDITORS
Trade creditors and other payables are stated at amortised cost.
30 DETERMINATION OF THE FAIR VALUE OF BUSINESS COMBINATIONS
The following principles have been applied in determining the fair value of assets and liabilities in the case
of acquisitions:
Tangible fixed assets
The fair value of tangible fixed assets included as a result of a business combination is based on market value.
The market value of real estate is the estimated value at which an item of immovable property can be traded
on the valuation date between a well-informed purchaser and a well-informed seller in a transaction on an
objective, business basis, in which both parties have acted carefully and without coercion. The market value of
other tangible fixed assets and inventories is based on the listed market prices of comparable assets and items.
Intangible assets
The fair value of patents and trademarks acquired as part of a business combination is determined on the basis
of the discounted estimated royalties which have been avoided as a result of ownership of the patent or trademark.
The fair value of customer relationships acquired in a business combination is determined using
the excess earnings method over several periods, with the respective assets being valued after deduction of
a real return on all other assets which jointly constitute the associated cash flows.
Inventories
The fair value of inventories acquired as part of a business combination is determined on the basis of the
estimated sale price in normal business operation, less the estimated costs of completion and the sale costs,
plus a reasonable profit margin reflecting the completion and sale effort.
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Notes to the consolidated profit and loss account
31 SEGMENT INFORMATION
Segment information is provided for the business and geographical segments of the Group. The primary
segmentation basis, business segments, reflects the Group’s internal reporting structure.
The prices for transactions between the segments are determined on an objective, business basis.
The results, assets and liabilities of a segment comprise items which can be attributed directly or reasonably
to the segment. Net financial expenses and profit tax are not allocated to the segments. The same applies
to the related balance sheet items.
Investments in fixed assets in the segment relate to the total costs incurred during the reporting period for the
acquisition of the assets of the segment which are expected to remain in use for longer than a reporting period.
Business segments
The Group distinguishes the following business segments:
◾ Advanced Textiles & Composites
Manufacture and sale of protective and safety fabrics for professional wear, outdoor fabrics, composites
for personal and vehicle protection and composites for technological applications in aerospace
◾ Geosynthetics & Grass
Manufacture and sale of fabrics and non-wovens for civil engineering, environmental projects, recreational
and industrial applications and manufacture and sale of synthetic turf fibres
◾ Technical Components/Holding & Services
Manufacture and sale of rubber and foam rollers for the office equipment industry and related products, as
well as country holding companies and service companies
Geographic segments
The segments operate on four continents, namely Europe, North America, Australia and Asia. In the presentation
of information based on geographic segments, the revenues of the segment are based on the geographic
location of origin. The assets of the segment are based on the geographic location of the asset.
Royal Ten Cate Annual Report 2008 95

NOTES TO THE CONSOLIDATED PROFIT AND LOSS ACCOUNT
31.1 Segment information
31.2 Analysis by business segment
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Royal Ten Cate Annual Report 2008
Advanced Textiles
& Composites
Geosynthetics
& Grass
Technical Components/
Holding & Services/
eliminations Consolidated
in millions of euros 2008 2007 2008 2007 2008 2007 2008 2007
Revenues 481.0 350.3 497.8 468.3 53.8 67.4 1,032.6 886.0
Intercompany sales 1.6 1.3 – – – 1.6 – 1.3 – –
Total revenues 482.6 351.6 497.8 468.3 52.2 66.1 1,032.6 886.0
Operating result 52.9 38.7 34.8 28.3 – 3.9 2.4 83.8 69.4
Net financial expenses – 13.7 – 11.3
Result from divested activities – 0.3
Profit tax – 19.1 – 11.9
Minority interests 0.1 – 0.1
Net income 51.1 46.4
Assets of segments 343.7 243.4 487.9 426.2 29.3 28.8 860.9 698.4
Investments in other participating interests – – – – 6.2 1.3 6.2 1.3
Unallocated assets – – – – – – 22.1 22.2
Total assets 343.7 243.4 487.9 426.2 35.5 30.1 889.2 721.9
Liabilities of segment * 58.3 56.8 63.6 71.7 48.8 43.7 170.7 172.2
Unallocated liabilities – – – – – – 346.5 239.3
Total liabilities 58.3 56.8 63.6 71.7 48.8 43.7 517.2 411.5
Investments 11.7 17.0 29.0 44.9 7.3 1.0 48.0 62.9
Depreciation and impairment 9.0 9.3 20.0 17.9 1.7 1.9 30.7 29.1
Amortisation 8.6 1.5 3.0 2.1 – – 11.6 3.6
*
Excluding intercompany loans.
31.3 Analysis by geographic location
(origin) Revenues Assets
Investments in
tangible & intangible
fixed assets
2008 2007 2008 2007 2008 2007
Netherlands 222.5 234.4 135.4 157.8 8.5 24.8
Rest of Europe 176.1 162.4 185.1 153.1 7.3 2.6
North America 488.0 373.6 295.5 206.6 11.0 14.0
Asia / Australia / Middle East 146.0 115.6 273.2 204.4 21.2 21.5
TOTAL 1,032.6 886.0 889.2 721.9 48.0 62.9

32 ACQUISITIONS AND DIVESTMENT OF OPERATING COMPANIES
32.1 Acquisitions
On 30 January 2008 the Group acquired 100% of the shares of Composix Co of Newark, Ohio, United States for
a cash payment to the original shareholder of $ 68 million.
The acquisition was consolidated in the Group’s figures from 30 January. The Group’s revenues would have been
€ 8.0 million higher if the acquisition had taken place on 1 January 2008. The net income would not have been
materially different. The goodwill paid amounts to € 19.8 million.
On 12 March 2008 the Group acquired 100% of the shares of YLA inc and CCS Composites inc, both of Benicia,
California, United States for a combined cash payment of $ 32 million.
The acquisition was consolidated in the Group’s figures from 12 March. The Group’s revenues would have been
€ 4.8 million higher if the acquisition had taken place on 1 January 2008. The net income would not have been
materially different. The goodwill paid amounts to € 13.1 million.
On 14 March 2008 the Group acquired 75% of the shares of Xennia Technology ltd of Cambridge, United
Kingdom for a cash payment of £ 8 million.
The acquisition was consolidated in the Group’s figures from 14 March. The revenues and net income would not
have been materially different if the acquisition had taken place on 1 January 2008. The goodwill paid amounts
to € 7.3 million.
On 14 May 2008 the Group acquired 50% of the shares of Edel Grass bv, Genemuiden, the Netherlands for
a cash payment to the original shareholder of € 5.5 million.
Edel Grass bv was proportionally consolidated in the Group’s figures from 14 May. The Group’s revenues would
have been € 2.6 million higher if the acquisition had taken place on 1 January 2008. The net income would not
have been materially different. The goodwill paid amounts to € 2.9 million.
On 16 August 2008 the Group acquired 50.65% of the shares of the newly formed company TenCate-Union
Protective Fabrics Asia Ltd of Bangkok, Thailand by contributions of cash and assets. This newly formed company
is fully consolidated in the Group’s figures, on the basis of a minority interest of 49.35%. This acquisition led
to a cash outflow of € 0.1 million. The goodwill paid amounts to € 0.1 million.
In the case of Composix, Xennia and Edel Grass, an earn-out payment may be payable in the future in addition
to the amounts stated above.
The expected earn-out has been taken into account in the determination of the purchase price.
Royal Ten Cate Annual Report 2008 97

NOTES TO THE CONSOLIDATED PROFIT AND LOSS ACCOUNT
The total goodwill acquired in 2008 amounts to € 44.8 million and comprises mainly employee potential and
synergy benefits.
The total contribution from the 2008 acquisitions to the Group’s 2008 revenues amounts to € 124.6 million.
The effect of the acquisitions on the result after tax amounts to € 10.4 million.
32.2 Effects of the acquisition of operating companies
The effect of the above acquisitions on assets and liabilities was as follows:
98
Royal Ten Cate Annual Report 2008
Recognised values Fair value adjustments Book values
Composix Co Others Group Composix Co Others Group Composix Co Others Group
Tangible fixed assets 6.0 5.9 11.9 – 0.4 0.4 6.0 5.5 11.5
Intangible fixed assets 17.8 17.0 34.8 17.8 16.7 34.5 – 0.3 0.3
Deferred profit tax assets – 0.5 0.5 – – – – 0.5 0.5
Inventories 14.7 4.6 19.3 0.7 – 0.7 14.0 4.6 18.6
Trade creditors and other payables 7.7 8.7 16.4 – – – 7.7 8.7 16.4
Cash and cash equivalents 0.8 1.4 2.2 – – – 0.8 1.4 2.2
Minority interests – – 5.3 – 5.3 – – 1.2 – 1.2 – – 4.1 – 4.1
Deferred profit tax liabilities – – 5.7 – 5.7 – – 5.7 – 5.7 – – –
Other provisions – – 0.3 – 0.3 – – – – – 0.3 – 0.3
Interest-bearing loans – – 0.1 – 0.1 – – – – – 0.1 – 0.1
Banks, current accounts – – 1.8 – 1.8 – – – – – 1.8 – 1.8
Trade creditors and other payables – 15.2 – 7.8 – 23.0 – – 0.1 – 0.1 – 15.2 – 7.7 – 22.9
NET IDENTIFIABLE ASSETS
AND LIABILITIES 31.8 17.1 48.9 18.5 10.1 28.6 13.3 7.0 20.3
Goodwill on acquisition 19.8 25.0 44.8
Purchase price paid in cash 51.6 42.1 93.7
Amount still payable – 4.0 – 1.2 – 5.2
Acquired cash less short-term bank debts – 0.8 0.4 – 0.4
Cash outflow 46.8 41.3 88.1

32.3 Divested operations
The effect of the 2007 divestments of Business Key and SCI La Domitienne on the 2007 profit and loss account
was as follows:
2008 2007
Revenues – 1.4
Costs of raw materials and manufacturing supplies and work contracted out – – 1.0
Other costs – – 0.3
Operating result – 0.1
33 PERSONNEL COSTS 2008 2007
Wages and salaries 138.4 127.9
Social charges 32.0 31.6
Costs of option scheme 1.7 1.1
Pension costs 3.8 4.4
Temporary personnel 14.4 13.3
Personnel costs 190.3 178.3
The pension costs comprise € 1.9 million (2007: € 1.2 million) in respect of defined benefit pension schemes
and € 1.9 million (2007: € 3.2 million) in respect of defined contribution schemes (see note 49.3).
34 OTHER OPERATING COSTS
34.1 Government subsidies
The Group’s profit and loss account includes € 2.1 million of government subsidies in 2008 (2007: € 2.5 million).
34.2 Research and development
The costs associated with research and development amounted to € 7.9 million in 2008 (2007: € 8.2 million),
of which € 4.2 million (2007: € 3.2 million) has been stated in personnel costs and € 3.7 million (2007: € 5.0 million)
in other operating costs.
Royal Ten Cate Annual Report 2008 99

NOTES TO THE CONSOLIDATED PROFIT AND LOSS ACCOUNT
34.3 Book profit on sale of tangible fixed assets
In 2008 the Group sold land and buildings on which a total book profit of € 6.5 million was recorded
(2007: € 9.5 million).
100 Royal Ten Cate Annual Report 2008
2008 2007
Land and buildings 6.5 9.5
Others 0.2 0.2
Result from sale 6.7 9.7
Book value of sold assets 6.1 1.4
Proceeds of sale 12.8 11.1
34.4 Operating lease expenses
In 2008 the Group included € 5.5 million of expenses relating to operating lease agreements in other operating
costs.
35 FINANCIAL INCOME AND EXPENSES 2008 2007
Interest income 0.5 0.5
Interest expenses
Exchange rate differences and fair value adjustments in respect
– 17.9 – 11.4
of financial instruments 3.7 – 0.4
– 13.7 – 11.3
36 PROFIT TAX 2008 2007
Profit taxes payable
Current financial year – 21.0 – 15.2
Release of provision in respect of previous years – 2.1
Deferred profit tax
– 21.0 – 13.1
Use of tax losses 1.9 1.2
Total tax charge in profit and loss account – 19.1 – 11.9

Reconciliation with applicable tax rate 2008 2007
% euro % euro
Pre-tax income 70.1 58.1
Tax on profit at local profit tax rate 29.7% 20.8 30.1% 17.5
Non-tax deductible costs 0.9% 0.6 1.5% 0.9
Tax-exempt income 1.6% 1.1 0.2% 0.1
Use of loss set-off – 4.0% – 2.8 – 5.6% – 3.3
Change of rate – 2.7% – 1.9 – 2.0% – 1.2
Others 1.8% 1.3 – 3.7% – 2.1
Tax charge in profit and loss account 27.3% 19.1 20.5% 11.9
The decrease in the weighted average tax rate from 30.1% to 29.7% is due to changes in the various countries’
shares in the total pre-tax income and to the fact that the applicable tax rate changed in a number of countries.
37 RESULT FROM DIVESTED ACTIVITIES 2008 2007
Business Key – 0.2
SCI La Domitienne – 0.1
Result from divested activities – 0.3
Royal Ten Cate Annual Report 2008 101

Notes to the consolidated balance sheet
in millions of euros
38 INTANGIBLE FIXED ASSETS Goodwill Development
102 Royal Ten Cate Annual Report 2008
Other
intangible
fixed assets Total
Cost
Balance as at 1 january 2007 12.6 0.2 4.1 16.9
Change as a result of consolidation 114.8 – 22.6 137.4
Investments – 0.3 1.1 1.4
Change as a result of deconsolidation – 1.0 – – – 1.0
Divestments – – – 0.1 – 0.1
Exchange rate differences – 9.1 – – 1.9 – 11.0
Balance as at 31 December 2007 117.3 0.5 25.8 143.6
Change as a result of consolidation 44.8 – 34.8 79.6
Investments – 0.8 0.4 1.2
Exchange rate differences 5.2 – 1.5 6.7
Balance as at 31 December 2008
Amortisation
167.3 1.3 62.5 231.1
Balance as at 1 january 2007 3.3 – 1.2 4.5
Amortisation – 0.1 3.5 3.6
Changes as a result of deconsolidation – 0.9 – – – 0.9
Exchange rate differences – 0.2 – – 0.2 – 0.4
Balance as at 31 December 2007 2.2 0.1 4.5 6.8
Amortisation – 0.2 11.4 11.6
Exchange rate differences – – 0.6 0.6
Balance as at 31 December 2008 2.2 0.3 16.5 19.0
Book value
Balance as at 1 january 2007 9.3 0.2 2.9 12.4
Balance as at 31 December 2007 115.1 0.4 21.3 136.8
Balance as at 31 December 2008 165.1 1.0 46.0 212.1

38.1 Amortisation/Impairments
The Group recognised no impairment losses in 2008 (2007: € 0).
38.2 Testing of the impairment for cash generating units which include goodwill
The following units contain goodwill items:
2008 2007
TenCate Grass 82.7 78.8
TenCate Advanced Armour EU 32.3 32.3
TenCate Advanced Composites US 19.7 3.4
Composix 21.0 –
Others 9.4 0.6
165.1 115.1
The Group tested the existing goodwill for impairment in 2008. The value in use has been determined on
the basis of future cash flows over the forthcoming three years, based on historical empirical data, market
expectations and strategic plans. No growth rate is applied for the period beyond three years. The discount rate
used is 9.3% (2007: 9.5%).
The net realisable value is the fair (market) value less sale costs.
On the basis of this test, no goodwill impairment has been recognised. The changes in 2008 related largely to
the acquired participating interests amounting to € 44.8 million (see note 32.2) and exchange rate differences.
38.3 Amortisation
The amortisation of € 11.6 million (2007: € 3.6 million) has been stated in the ‘Amortisation’ item in the profit
and loss account.
Royal Ten Cate Annual Report 2008 103

NOTES TO THE CONSOLIDATED BALANCE SHEET
39 TANGIBLE FIXED ASSETS
104 Royal Ten Cate Annual Report 2008
Land and
operating
buildings
Plant and
equipment
Other
operating
assets
Operating
assets under
construction Total
Acquisition value
Balance as at 1 January 2007 113.0 292.2 36.2 11.7 453.1
Changes as a result of consolidations 7.6 24.6 0.5 0.8 33.5
Investments 12.4 34.7 3.3 11.1 61.5
Changes as a result of deconsolidations – 1.4 – – 0.4 – – 1.8
Divestments – 3.6 – 3.0 – 0.9 – – 7.5
Exchange rate differences – 3.7 – 12.5 – 0.9 – 0.8 – 17.9
Balance as at 31 December 2007 124.3 336.0 37.8 22.8 520.9
Changes as a result of consolidations 1.3 7.2 1.1 2.3 11.9
Investments 7.7 52.6 4.4 – 17.9 46.8
Divestments – 6.2 – 8.0 – 0.7 – – 14.9
Exchange rate differences 2.5 6.9 0.5 1.4 11.3
Balance as at 31 December 2008
Depreciation and impairment
129.6 394.7 43.1 8.6 576.0
Balance as at 1 January 2007 51.3 206.3 29.7 – 287.3
Changes as a result of consolidations – 0.6 – – 0.6
Depreciation 4.2 20.5 2.1 – 26.8
Impairment – 2.3 – – 2.3
Changes as a result of deconsolidations – 0.4 – – 0.3 – – 0.7
Divestments – 2.5 – 2.7 – 0.9 – – 6.1
Exchange rate differences – 1.2 – 5.7 – 0.5 – – 7.4
Balance as at 31 December 2007 51.4 221.3 30.1 – 302.8
Depreciation 4.6 23.5 2.6 – 30.7
Divestments – 4.1 – 4.2 – 0.5 – – 8.8
Exchange rate differences 0.7 2.8 0.4 – 3.9
Balance as at 31 December 2008 52.6 243.4 32.6 – 328.6
Book value
Balance as at 1 January 2007 61.7 85.9 6.5 11.7 165.8
Balance as at 31 December 2007 72.9 114.7 7.7 22.8 218.1
Balance as at 31 December 2008 77.0 151.3 10.5 8.6 247.4

39.1 Impairment and reversal of impairment
The Group recognised no impairment of tangible fixed assets in 2008 (2007: € 2.3 million).
The impairment recognised in 2007 was stated in the consolidated profit and loss account under depreciation
and impairment. No impairment losses were reversed during the year.
39.2 Leased plant and equipment
The Group leases buildings, plant and equipment under a number of financial leases.
The net book value of these assets as at 31 December 2008 was € 5.5 million (31 December 2007: € 1.2 million).
The increase was due to the conversion of an operating lease into a financial lease. The leased buildings, plant
and equipment serve as collateral for the financial lease liabilities (see note 48).
39.3 Collateral
No land and buildings were encumbered as collateral for bank loans as at 31 December 2008. The same was
true as at 31 December 2007.
39.4 Depreciation charge
The depreciation charge of € 30.7 million (2007: € 26.8 million) has been stated in depreciation and impairment
in the profit and loss account.
40 FINANCIAL FIXED ASSETS
The financial fixed assets can be analysed as follows:
2008 2007
Other participating interests 6.2 1.3
Other long-term receivables 4.7 4.9
Balance as at 31 December 10.9 6.2
40.1 Other participating interests
The main other participating interests included below concern GreenFields bv (Kampen, 20%), Landscape
Solutions bv (Goirle, 20%) and Performance Fabrics and Fibers LLC (Andrews, South Carolina, 16%).
2008 2007
Balance as at 1 January 1.3 1.3
Investments 4.6 –
Exchange rate differences 0.3 –
Balance as at 31 December 6.2 1.3
Royal Ten Cate Annual Report 2008 105

NOTES TO THE CONSOLIDATED BALANCE SHEET
The investments include the acquisition of 16% of the shares of Performance Fabrics and Fibers LLC (€ 4.6 million).
The consideration took the form of a contribution of assets.
No loans were granted to other participating interests.
40.2 Other long-term receivables and investments
The main long-term receivables and investments concern invested pension monies at a number of US operating
companies (€ 2.6 million) and an advance payment in connection with long-term lease rights in China and Malaysia
(€ 1.9 million).
41 DEFERRED PROFIT TAX ASSETS AND LIABILITIES
The deferred profit tax assets and liabilities recognised in the balance sheet are attributable to the following
items:
106 Royal Ten Cate Annual Report 2008
Assets Liabilities Net
2008 2007 2008 2007 2008 2007
Tangible fixed assets – – – 4.4 – 3.4 – 4.4 – 3.4
Intangible assets – 0.7 – 6.6 – 2.2 – 6.6 – 1.5
Financial fixed assets – 0.5 – 0.4 – 0.2 – 0.4 0.3
Inventories 3.4 2.0 – – 3.4 2.0
Other receivables 0.4 0.3 – – 0.4 0.3
Pension provisions 4.6 6.0 – – 4.6 6.0
Other provisions 6.1 4.9 – – 6.1 4.9
Tax value of loss carry-forwards 5.1 2.9 – – 5.1 2.9
Others 0.8 1.2 – – 0.8 1.2
Deferred profit tax asset/liability 20.4 18.5 – 11.4 – 5.8 9.0 12.7
Balance of assets and liabilities – 6.2 – 4.9 6.2 4.9 – –
Net deferred profit tax asset/liability 14.2 13.6 – 5.2 – 0.9 9.0 12.7
Deferred profit tax assets not stated in the balance sheet
As at 31 December 2008 there were € 21.8 million (2007: € 16.0 million) of unused losses available for set-off.
No deferred profit tax asset has been recognised in respect of this amount because it is currently unlikely that
future taxable profit will be available to the Group for the losses to be set off. The profit tax assets not included
as at 31 December 2008 amounted to € 4.4 million (2007: € 3.1 million).

The expiry periods of the unused losses available for set-off are shown in the table below:
Within 2 – 5 years 5.0
After five years 0.7
Indefinite period 16.1
Unused losses available for set-off 21.8
42 INVENTORIES 2008 2007
Raw materials and manufacturing supplies 57.4 49.1
Semi-manufactures 42.6 39.0
Finished products 111.5 88.1
Inventories 211.5 176.2
43 TRADE DEBTORS 2008 2007
Due from third parties 154.2 145.8
Due from other participating interests 13.4 –
Due from joint ventures 1.3 –
Trade debtors 168.9 145.8
Trade debtors are stated at nominal value after deduction of provisions deemed necessary. Transfers to provisions
for doubtful debts are included in the profit and loss account under direct sale costs (work contracted out
and other external costs).
44 OTHER RECEIVABLES 2008 2007
Receivable in respect of other taxes 3.3 2.3
Derivatives at fair value 1.8 3.4
Other receivables and prepayments 11.2 10.9
Other receivables 16.3 16.6
The other taxes receivable relate mainly to reclaimable VAT.
2008
Royal Ten Cate Annual Report 2008 107

NOTES TO THE CONSOLIDATED BALANCE SHEET
45 CASH AND CASH EQUIVALENTS 2008 2007
Bank balances 5.3 4.7
Cash balances 0.1 0.1
Cash and cash equivalents 5.4 4.8
Cash loans, overdrafts – 19.4 – 12.5
Cash in the cash flow statement – 14.0 – 7.7
All amounts were freely available at the end of 2008 and 2007.
46 TOTAL SHAREHOLDERS’ EQUITY
A statement of changes in equity can be found on page 80.
46.1 Ordinary shares 2008 2007
Number x 1,000
Outstanding as at 1 January 23,556 21,063
Issue of shares – 2,106
Issued stock dividend 411 387
Outstanding as at 31 December 23,967 23,556
The authorised share capital amounts to € 200 million divided into 80 million ordinary shares of a par value
of € 2.50. The issued capital as at 31 December 2008 amounts to 23,966,901 ordinary shares of a par value of
€ 2.50 (as at 31 December 2007: 23,556,158 ordinary shares of a par value of € 2.50).
The holders of ordinary shares are entitled to dividend as approved periodically by the General Meeting
of Shareholders. They are also entitled to cast one vote per share at meetings of the company.
Issue of shares and limitation of pre-emptive right
The general meeting of shareholders has granted the Executive Board the power to issue shares and to exclude
or restrict the pre-emptive right for the period ending on 30 September 2009. The power to issue shares concerns
10% of the issued share capital plus a further issue up to a maximum of 10% of the issued share capital
in the event that the issue takes place in the context of a merger or acquisition. The same applies to the power
of the Executive Board, with the approval of the Supervisory Board, to restrict or exclude the pre-emptive right.
108 Royal Ten Cate Annual Report 2008

46.2 Repurchased ordinary shares 2008 2007
Number x 1,000
Outstanding as at 1 January 556 509
Repurchasing of shares – 175
Exercise of options – 25 – 125
Issued in connection with share plan – 4 – 3
Outstanding as at 31 December 527 556
The aim of the repurchase of ordinary shares is to avoid the dilution of earnings per share by the granting of
options and the issue of shares as part of the share savings plan. No shares in the company were repurchased
in 2008. The shares repurchased in 2007 have been purchased at an average price of € 23.99.
Repurchase of own shares
The general meeting of shareholders has granted the Executive Board the power to acquire fully paid-up shares
in the company (or certificates thereof) for the period ending on 30 September 2009. The maximum number
of shares which may thus be acquired is 10% of the issued capital at the time of acquisition of the shares
(or certificates thereof).
46.3 Share premium
The share premium reserve is to be considered as paid-up capital.
46.4 Retained earnings of associated companies
The reserve has been formed in respect of operating companies and joint ventures in which the free disposal
of retained earnings is subject to restrictions.
46.5 Translation differences
The reserve for translation differences comprises all exchange rate differences which arise due to the translation
of the financial statements of foreign activities outside the eurozone. These exchange rate differences
(translation risk) are carried in equity. The accumulation of the respective amount began on 1 January 2004 and
is not available for distribution to shareholders.
46.6 Reserve for hedging results
The reserve for hedging results is not available for distribution to shareholders. A negative reserve reduces
the amount which is freely distributable from the reserves.
The balance of the reserve for hedging results as at 31 December 2008 was negligible.
Royal Ten Cate Annual Report 2008 109

NOTES TO THE CONSOLIDATED BALANCE SHEET
46.7 Undistributed Result
Subsequent to the balance sheet date the following dividend has been proposed, which has not yet been included
in the balance sheet. It is proposed to set the dividend in respect of 2008 at € 0.85 per share (2007: € 0.80
per share), payable half as a stock dividend and half at shareholders’ discretion in cash or in the form of a stock
dividend, with the value of such stock dividend slightly exceeding the cash dividend.
110 Royal Ten Cate Annual Report 2008
2008 2007
€ 0.85 per ordinary share (2007: € 0.80) 20.4 18.8
46.8 Objective with regard to equity
The objective with regard to equity, as in 2007, is to guarantee the continuity of the company by means
of attractive returns for shareholders and by guaranteeing benefits for other stakeholders. The capital structure
is adjusted if necessary in line with economic developments and the risks relating to assets.
With regard to financing, the longer-term objective is a ratio of net debt to EBITDA of a maximum of 2.5.
The calculation as at 31 December is as follows:
31 December
2008
31 December
2007
Long-term interest-bearing liabilities 316.2 222.3
Short-term portion of long-term liabilities 0.9 0.4
Cash loans and overdrafts 19.4 12.5
Total debt 336.5 235.2
Less: cash and cash equivalents 5.4 4.8
Net debt 331.1 230.4
EBITDA * 127.0 105.7
Net debt / EBITDA 2.61 2.18
*
In accordance with the covenant relating to the loan facility, the EBITDA for acquired and divested businesses is annualised. The effect
of this extrapolation is a € 0.9 million increase in EBITDA. (2007: € 3.6 million).

47 EARNINGS PER SHARE
47.1 Ordinary earnings per share
The calculation of the ordinary earnings per share as at 31 December 2008 is based on the net profit of
€ 51.1 million (2007: € 46.4 million) attributable to holders of ordinary shares and a weighted average number
of outstanding ordinary shares during the 2008 financial year of 23,426,397 (2007: 22,797,063), calculated
as follows:
2008 2007
Net profit for the financial year attributable to holders of ordinary shares 51.1 46.4
Weighted average number of ordinary shares 2008 2007
Number x 1,000
Outstanding ordinary shares on 1 January 23,556 21,063
Issue of shares – 1,847
Effect of ordinary shares held (including repurchased shares) – 556 – 535
Effect of shares issued in connection with stock dividend 411 387
Effect of shares issued as a result of exercised option rights 13 33
Effect of shares issued as a result of share savings plan 2 2
Weighted average number of ordinary shares as at 31 December 23,426 22,797
Royal Ten Cate Annual Report 2008 111

NOTES TO THE CONSOLIDATED BALANCE SHEET
47.2 Diluted earnings per share
The calculation of the diluted earnings per share as at 31 December 2008 is based on the net profit of
€ 51.1 million (2007: € 46.4 million) attributable to holders of ordinary shares and the weighted average number
of outstanding ordinary shares during the 2008 financial year of 23,494,868 (2007: 22,966,852), calculated
as follows:
112 Royal Ten Cate Annual Report 2008
2008 2007
Net profit for the financial year attributable to holders of ordinary shares 51.1 46.4
Weighted average number of ordinary shares 2008 2007
Number x 1,000
Weighted average number of ordinary shares as at 31 December 23,426 22,797
Effect of outstanding option rights
Weighted average number of ordinary shares (after dilution)
69 170
as at 31 December 23,495 22,967
48 LONG-TERM DEBTS 2008 2007
Syndicated loan 304.2 214.1
Financial lease liabilities 5.3 1.2
Other loans 7.6 7.4
317.1 222.7
Less: repayment of loans in forthcoming year – 0.9 – 0.4
Long-term debts 316.2 222.3

2008
Total
2009
< 1 year
2010
1 – 2 years
2011/2013
2 – 5 years
2014
and after
> 5 years
Syndicated loan
EUR – variable interest 122.1 122.1 214.1
USD – variable interest 150.8 150.8 –
DKK – variable interest 31.3 31.3 –
Financial lease liabilities
EUR – fixed interest 8.00% 0.9 0.2 0.2 0.5 1.1
EUR – variable interest 4.3 0.6 0.7 3.0 –
DKK – fixed interest 6.96% – 0.1
THB – fixed interest 3.65% 0.1 0.1 –
Other loans
AUD – variable interest 2.6 2.6 2.6
USD – variable interest 2.9 2.9 2.7
EUR – fixed interest 0.5 – 3.0% 0.1 0.1 0.2
EUR – fixed interest 1.00% 2.0 2.0 1.9
Long–term debts 317.1 0.9 3.5 309.8 2.9 222.7
The syndicated loan of € 400 million (2007 € 250 million), which is available for drawing in various currencies,
was concluded with a syndicate of 12 banks on 16 February 2007 and was amended on 27 February 2008.
€ 306 million of this facility was drawn as at 31 December 2008 (2007: € 215 million). The original term of the
loan is five years (up to 16 February 2012). Repayment is due in full on the maturity date. The loan is valued
at amortised cost in accordance with the effective interest method.
The interest rate payable is linked to the net debt/EBITDA ratio, which is calculated quarterly in respect of the
preceding 12 months. The interest margin above Euribor or Libor will be between 0.40% and 1.00%. At the end
of 2008, the margin was 0.725% (2007: 0.50%).
The aforementioned syndicated loan is subject to a number of covenants, the principal of which are:
◾ total net debt/EBITDA + result from associated companies less than 3, with the once-only possibility of an
increase to 3.5 for two successive quarters following an acquisition;
◾ EBITDA/net interest greater than 4;
◾ joint guarantee of operating companies with total assets of at least 60% of the TenCate total.
TenCate fulfilled these conditions as at the balance sheet date.
2007
Total
Royal Ten Cate Annual Report 2008 113

NOTES TO THE CONSOLIDATED BALANCE SHEET
In the event of a change of control of the company, the syndicated loan of € 400 million is immediately repayable
if a two-thirds majority of the lenders so require.
The € 4.3 million Financial lease liability with variable interest concerns the conversion of an operating lease
into a financial lease.
The AUD loan with a variable interest rate was granted by Westpac Banking Corporation.
The USD loan with variable interest concerns a $ 4 million loan from the Development Authority of Pike County
Industrial Revenue Bonds. Repayment is due in full in 2018.
The euro loans with a fixed interest rate between 0.5% and 3% were granted by Forschungsförderungsfond,
Vienna, and Öberbank AG, Linz.
Of the total of long-term loans, 99% (2007: 98%) had variable interest in 2008. The risk associated with this
variability has been hedged by means of a number of instruments (caps, swaps). Details of the interest rate risk
borne by the Group can be found in note 51.3.
49 PENSION LIABILITIES 2008 2007
Defined benefit schemes
Discounted value of covered liabilities 275.1 298.6
Market value of fund investments 272.4 304.7
Discounted value of net liabilities 2.7 – 6.1
Unstated actuarial profits and losses 15.1 26.8
Total defined benefit schemes 17.8 20.7
Other liabilities in respect of pensions 6.5 7.8
Pension liabilities 24.3 28.5
49.1 Changes in the valuation of liabilities as at the balance sheet date 2008 2007
Balance of liabilities as at 1 January 298.6 316.1
Service costs 3.3 3.7
Members’ contributions 3.1 3.1
Interest costs 16.3 14.6
Benefits paid – 15.6 – 12.9
Actuarial differences – 30.6 – 26.0
Balance as at 31 December 275.1 298.6
114 Royal Ten Cate Annual Report 2008

49.2 Investments 2008 2007
Balance as at 1 January 304.7 302.8
Expected return 17.7 17.1
Employer’s contribution 4.8 4.8
Members’ contributions 3.1 3.1
Actuarial losses – 42.3 – 10.3
Benefits paid – 15.6 – 12.8
Balance as at 31 December 272.4 304.7
Analysis of investments as at 31 December 2008 2007
Bonds 161.4 158.6
Shares 69.0 102.1
Hedge funds 11.1 16.7
Real estate 26.0 24.0
Cash 4.9 3.3
Pension fund investments 272.4 304.7
49.3 Charge stated in profit and loss account 2008 2007
Service costs – 3.3 – 3.7
Interest on the liabilities – 16.3 – 14.6
Expected return on fund investments 17.7 17.1
Pension income/charges – 1.9 – 1.2
The pension charges have been stated in the 2008 profit and loss account in an amount of € 1.9 million
(2007: € 1.2 million) under personnel costs. The actual return on fund investments amounts to € – 24.6 million
(2007: € 6.8 million).
Netherlands
The defined pension scheme concerns the pension rights of the Dutch employees which have been placed with
Stichting Pensioenfonds Koninklijke Ten Cate.
The main features of the scheme are:
◾ pension accumulation based on average salary;
◾ accumulation rate of 2.1%;
◾ conditional indexation; the average indexation expectation has been set at 70%.
Agreements have been entered into with the pension fund in respect of the contribution payable. The contribution
percentage varies within an agreed range, depending on the cover ratio of the pension fund. The current
agreements cover the period up to 31 December 2009.
Royal Ten Cate Annual Report 2008 115

NOTES TO THE CONSOLIDATED BALANCE SHEET
Other liabilities
The other liabilities in respect of pensions relate to defined contribution schemes and a number of specific oldage
provisions. The principal defined contribution scheme is a 401K (savings) scheme in the United States.
49.4 Liability in respect of defined benefit schemes
The main actuarial assumptions as at the balance sheet date (in weighted averages):
116 Royal Ten Cate Annual Report 2008
2008 2007
Discount rate as at 31 December 5.7% 5.5%
Expected return on fund investments as at 31 December 6.1% 5.9%
Future wage increases 2.5% 2.7%
Future pension increases 1.4% 2.0%
Assumptions with regard to future mortality figures are based on published statistical data and mortality tables.
The mortality tables used are the GBM and GBV survival tables for 2000 – 2005 with an age reduction of three
years for men and zero years for women. The age difference between men and women is set at three years.
A loading of 3.5% has been applied for future improvement in life expectancy on the liability and 6.0% on the
service cost. The total expected long-term return on the investments is 6.1% (2007: 5.9%). This percentage is
based on the sum of the returns in separate investment categories. A 0.1% change in the discount rate does not
lead to a change in the annual charges (2007: € 0.1 million). A 0.1% change in the discount rate will, however,
cause the liability to rise or fall by € 3.5 million (2007 € 4.1 million).
Historical information 2008 2007 2006 2005 2004
Discounted value of covered liabilities 275.1 298.6 316.1 326.5 302.4
Market value of fund investments 272.4 304.7 302.8 289.1 265.9
Discounted value of net liabilities
Experience adjustments arising
2.7 – 6.1 13.3 37.4 36.5
on liabilities of the scheme * Experience adjustments arising
0.8 2.7 – 1.6 – –
on fund investments – 42.3 – 10.3 5.7 15.7 5.8
*
No figures are available for 2005 and 2004.
The Group expects to contribute € 7.0 million of employer’s contributions to defined benefit pension schemes
in 2009 (2008: € 4.8 million). The pension expense in respect of 2009 is estimated at € 1.8 million (2008:
€ 1.9 million).

50 PROVISIONS
Guarantee/ Reorganisation
claims provision
Other
personnel
liabilities Environment Others Total
Balance as at 1 January 2008
Change as a result of
6.0 – 4.6 2.0 2.2 14.8
consolidation – – – – 0.3 0.3
Formed as charge against result 1.6 2.5 0.3 – 0.1 4.5
Released to result – 2.4 – 0.2 – 0.2 – 0.2 – 3.0
Expenditure in current year – 1.5 – 0.5 – 0.2 – – 0.4 – 2.6
Reclassification
Balance as at
1.1 – 1.1 –
31 December 2008 3.7 1.8 5.8 1.8 0.9 14.0
Of which short-term
as at 31.12.07 2.6 – – – 0.8 3.4
as at 31.12.08 2.1 1.8 0.1 – 0.4 4.4
The amount released to the result has been included in the profit and loss account as follows:
2008 2007
Personnel costs 0.2 0.7
Other operating costs 2.8 2.1
Total 3.0 2.8
The guarantee provision relates to goods and services supplied and the provision for claims relates to damage
claims and possible legal costs.
Two reorganisations were announced in 2008. The transfer of Ten Cate Enbi’s R&D activities to Singapore and
the discontinuation of contract finishing for third parties at TenCate Protective & Outdoor Fabrics are expected
to be completed in 2009.
The provision for other personnel liabilities has been formed in respect of long-term leave and other allowances,
such as anniversaries.
The environmental provision has been formed for expected costs of decontamination of industrial sites, on the
basis of functional decontamination (maintenance of business use).
Royal Ten Cate Annual Report 2008 117

Other information
51 FINANCIAL INSTRUMENTS
As part of the normal business operations, the Group incurs liquidity, credit, interest and currency risks. The risk
of fluctuations in exchange rates and interest rates is hedged using derivatives.
51.1 LIQUIDITY RISK
The liquidity risk is the risk of TenCate being unable to meet its liabilities when they fall due. TenCate’s policy
on control of the liquidity risk is to guarantee to the best of its ability that sufficient liquidities are available to
meet its liabilities on time, in both normal and exceptional situations.
The term of the financial liabilities as at 31 December 2008 is as follows:
118 Royal Ten Cate Annual Report 2008
Book value
Contractual
cash flow
2009
< 1 year
2010
1-2 years
2011/2013
2-5 years
2014 f.f.
> 5 years
Financial liabilities
(excluding derivatives)
Long-term debts 317.1 – 349.6 – 10.6 – 13.2 – 322.8 – 3.1
Cash loans, overdrafts
Trade and other creditors,
19.4 – 19.4 – 19.4 – – –
excluding derivatives 130.6 – 130.6 – 130.6 – – –
Derivatives
Interest rate swaps
Forward foreign exchange
0.6 – 2.0 – 0.1 – 0.5 – 1.0 – 0.4
contracts
Total financial liabilities
1.4 – 1.4 – 1.4 – – –
(including derivatives) 469.1 – 503.0 – 162.1 – 13.7 – 323.8 – 3.5

The term of the financial liabilities as at 31 December 2007 is as follows:
Book value
Contractual
cash flow
2008
< 1 year
2009
1-2 years
2010/2012
2-5 years
2013 f.f.
> 5 years
Financial liabilities (excluding
derivatives)
Long-term debts 222.7 – 268.1 – 11.3 – 11.3 – 240.8 – 4.7
Cash loans, overdrafts
Trade and other creditors,
12.5 – 12.5 – 12.5 – – –
excluding derivatives 128.5 – 128.5 – 128.5 – – –
Derivatives
Interest rate swaps – 0.1 0.3 0.3 – – –
Caps
Forward foreign exchange
– 0.8 1.0 0.6 0.4 – –
contracts
Total financial liabilities
0.1 – 0.1 – 0.1 – – –
(including derivatives) 362.9 – 407.9 – 151.5 – 10.9 – 240.8 – 4.7
51.2 Credit risk
Credit risk is the risk of a financial loss for the Group if a customer or counterparty to a financial instrument fails
to discharge its contractual obligations. Credit risks result in particular from trade debtors and investments
in securities.
The management has drawn up a credit policy and the credit risk is constantly monitored.
In the case of all supplies above a certain amount, the customer is subjected to a credit assessment and, where
possible, the debtor position is insured. All European operating companies, as well as a number of American
and Asian companies, have credit insurance.
On the balance sheet date there were no major concentrations of credit risk. The residual credit risk is the
balance sheet value of each financial asset, after deduction of derivates.
Royal Ten Cate Annual Report 2008 119

OTHER INFORMATION
The book value of the financial assets reflects the maximum exposure to credit risk. The maximum exposure can
be defined as follows:
120 Royal Ten Cate Annual Report 2008
31 December
2008
31 December
2007
Trade debtors and other (long-term) receivables 188.1 163.9
Cash and cash equivalents 5.4 4.8
Forward foreign exchange contracts and options 1.6 2.3
Interest rate swaps – 0.3
Interest rate caps 0.2 0.8
Total 195.3 172.1
The age of the trade debtors and the provision for bad debts can be analysed as follows:
2008 2007
Gross Provision Gross Provision
0 – 60 days overdue 152.5 0.6 143.7 0.5
60 – 120 days overdue 11.0 0.5 2.1 0.4
120 – 360 days overdue 6.8 1.1 1.3 0.9
Over 360 days overdue 2.8 2.0 2.2 1.7
Balance as at 31 December 173.1 4.2 149.3 3.5
The movements in the provision for trade debtors are as follows:
2008 2007
Balance as at 1 January 3.5 3.1
Change as a result of consolidations/deconsolidations 0.1 – 0.1
Formed as charge against result 1.8 2.0
Released to result – 1.0 – 1.0
Written off during the year – 0.3 – 0.3
Exchange rate differences 0.1 – 0.2
Balance as at 31 December 4.2 3.5

51.3 Interest rate risk
The policy with regard to interest rate risks is stated in the risk section on page 38 of this report. The conditions
applying to the interest-bearing debt are set out in note 48.
The aim of the interest rate policy is to limit the finance charges as far as possible. Interest rate instruments
can be used in order to adjust the fixed or variable interest character of finance to the required profile. The
Group has entered into interest rate swaps and caps in order to fulfil this purpose within the policy of the
Group.
The following interest rate instruments were outstanding at the end of 2008:
◾ interest rate swap to 02-01-2018: $ 4 million received variable, payment 4.47% fixed
◾ interest rate cap 30-12-2005 to 31-12-2009: € 25 million 3.5%
◾ interest rate cap 31-12-2008 to 30-12-2009: € 40 million 4.5%
◾ interest rate cap 31-12-2009 to 30-12-2010: € 15 million 4.5%
◾ interest rate cap 31-12-2008 to 31-12-2010: € 25 million 4.5%
◾ interest rate cap 30-06-2008 to 31-12-2009: $ 70 million 4.5%
◾ interest rate cap 30-06-2008 to 31-12-2010: $ 70 million 4.5%
◾ interest rate cap 30-06-2008 to 31-12-2011: $ 70 million 4.5%
◾ interest rate swap 31-12-2009 to 31-12-2012: $ 70 million, received variable, payment 2.215%
fixed
The Group classifies the interest rate swaps and the interest rate caps as cash flow hedging and values them
at fair value. The net fair value of the interest rate swaps as at 31 December 2008 of € – 0.6 million (2007:
€ 0.1 million) has been included under trade creditors and other payables. The net fair value of the caps of
€ 0.2 million (2007: € 0.8 million) has been included under other receivables.
51.4 Currency risk
The Group incurs currency risks on sales and purchases denominated in currencies other than the local currency
of the respective Group company. The currencies which give rise to this risk are primarily the US dollar, the British
pound and the euro.
Transaction risk
The Group hedges all trade receivables and debts denominated in foreign currencies. To that end it uses foreign
exchange forward contracts and options. The forward contracts have a term of less than one year after the balance
sheet date. If necessary they are extended.
Competition risks
The Group also hedges the estimated currency risk of the expected purchases and sales in the subsequent six
months. Currency options are used for this purpose.
Royal Ten Cate Annual Report 2008 121

OTHER INFORMATION
With regard to monetary assets and liabilities held in currencies other than the euro, the Group ensures that the
net risk remains at an acceptable level, by purchasing or selling foreign currencies as necessary in the spot market
in order to eliminate short-term imbalances.
The principal of the USD, and AUD loans of the Group has not been hedged, because these loans have been
drawn by operating companies which have corresponding assets in the same currency.
Additional note on currency risk
The Group’s exposure to currency risks on the balance sheet date is as follows:
122 Royal Ten Cate Annual Report 2008
31 December 2008 31 December 2007
USD GBP EUR USD GBP EUR
Transaction risk 5.2 2.5 23.8 – 2.5 5.1 – 9.8
Competition risk 2.2 1.4 – 0.9 4.0 2.2 15.2
Risk before hedging 7.4 3.9 22.9 1.5 7.3 5.4
Forward contracts – 6.5 – 2.2 – 22.5 – 0.6 – 6.7 7.3
Option contracts 0.3 – 0.8 – 4.4 0.5 – 0.9 6.1
Risk after hedging 1.2 0.9 – 4.0 1.4 – 0.3 18.8
The foreign currencies have been converted into euros at the closing rate.
The transaction risk in USD and EUR relates respectively to debts and receivables in USD and EUR of operating
companies outside the dollar and euro zones. The transaction risk in EUR mainly concerns trade receivables of
TenCate Thiolon Middle East. The competition risk in USD relates mainly to expected revenues of TenCate Geosynthetics
Asia. The transaction risk in GBP relates mainly to GBP receivables of TenCate Advanced Armour
France.
The competition risk concerns the balance of expected revenues and costs in the stated currencies of operating
companies located outside the respective regions.
51.5 Future transactions
The Group classifies options to hedge future transactions as cash flow hedging and values them at fair value.
The net fair value of options to hedge future transactions as at 31 December 2008 amounted to € 0.8 million
(2007: € 2.1 million). This amount has been included in other receivables.

51.6 Assets and liabilities included in the balance sheet
Changes in the fair value of foreign exchange forward contracts and options which are used to hedge, in an
economic sense, monetary assets and liabilities denominated in foreign currencies are stated in the profit and
loss account. Both changes in the fair value of forward contracts and options and the exchange rate differences
relating to monetary balance sheet items are included as exchange rate differences under net financial expenses
(see note 35).
51.7 Sensitivity analyses
In managing interest rate and currency risks, the Group’s aim is to limit the effect of short-term fluctuations on
the Group result. In the longer term, however, sustained changes in exchange rates and interest rates will have
an effect on the consolidated result.
The effect of a general rise of one percentage point in the interest rate on the pre-tax income in 2008 is
estimated at € – 2.1 million (2007: € – 0.4 million). This calculation takes account of the concluded interest rate
swaps or caps.
A general rise of one percentage point in the value of the euro against other currencies would have reduced
the result after tax by an expected € 0.4 million (2007: € 0). Existing options have been taken into account in this
calculation.
A general rise of one percentage point in the value of the euro against other currencies would have reduced
the equity by approximately € 3.1 million (2007: € 2.1 million).
51.8 Estimate of fair value
Details are given below of the main methods and assumptions used in estimating the fair value of financial
instruments.
Foreign exchange forward contracts and interest rate caps are valued on the basis of calculations or prices
obtained from financial institutions. In the case of interest rate swaps, bank statements are used.
The fair value of long-term debts is calculated on the basis of the discounted value of expected future cash
flows from repayments and interest payments.
The fair value of financial lease liabilities is estimated on the basis of the present value of future cash flows,
discounted at the interest rate for similar lease agreements.
In the case of trade debtors, other receivables, trade creditors and other short-term debts which fall due within
one year, the nominal value is deemed to reflect the fair value.
Royal Ten Cate Annual Report 2008 123

OTHER INFORMATION
52 LIABILITIES NOT SHOWN IN THE BALANCE SHEET
Operational lease as lessee
Payments due under non-cancellable operational lease agreements are as follows:
124 Royal Ten Cate Annual Report 2008
2008 2007
Less than 1 year 5.4 4.7
Between two and five years 14.5 10.7
More than five years 8.6 15.6
28.5 31.0
The Group leases buildings, plant, vehicles and office equipment under operational leases. The leased buildings
have a term of 10 to 15 years. Lease payments are indexed annually. None of the lease agreements include
conditional lease payments. In principle the Group does not act as a lessor. The term of the other lease agreements
is a maximum of five years.
53 INVESTMENT LIABILITIES
In 2008 the Group entered into contractual liabilities for the purchase of tangible fixed assets. The amount of
the liabilities as at 31 December 2008, after deduction of advance payments already made during the financial
year, is € 7.1 million (2007: € 24.9 million).
54 CONTINGENT LIABILITIES
The Group has received claims for damages arising from the conduct of business. With the exception of those
stated below, the claims are not deemed to be substantial and provisions have been recognised to the extent
necessary.
A claim for damages has been made against Royal Ten Cate by United Fabrics nv, a company registered in the
Netherlands Antilles (majority shareholder in Textielgroep Twenthe nv). The claim is based on an outsourcing
and management agreement from 1998 and originally amounted to € 56 million. On 24 May 2002 the district
court of Almelo dismissed the claim in its entirety. In a judgment on 10 February 2004 the court of appeal of
Arnhem dismissed the claim in respect of the outsourcing agreement and referred the claim in respect of the
management agreement back to the plaintiff, requiring the latter to substantiate its loss before the court.
On 10 May 2004 both Royal Ten Cate and the receiver of United Fabrics lodged appeals in cassation against
the appeal court’s judgment. The Supreme Court issued a ruling on 7 April 2006 upholding the appeal court’s
judgment. The claim in respect of the outsourcing agreement has thus permanently lapsed. There remains
the possibility of a damages assessment procedure with regard to the management agreement, which Royal
Ten Cate views with confidence. As at the end of 2008, United fabrics had not commenced any damages
assessment procedure.

55 POST BALANCE SHEET EVENTS
A commentary on events subsequent to the balance sheet date can be found on page 138.
56 RELATED PARTIES
56.1 Identity of related parties
Related parties concern relationships between the Group and its operating companies, other associated companies,
joint ventures, the TenCate pension fund and the executive and supervisory directors.
56.2 Directors’ remuneration
The remuneration of the members of the Executive Board was as follows:
L. de Vries J. Wegstapel
1
P.H. van der Vorm
2
in thousands of euros 2008 2007 2008 2007 2008 2007
Periodic remuneration 507 461 358 259 – 57
Results-related pay 254 231 85 – – –
Pension costs 281 413 68 40 – –
1,042 1,105 511 299 – 57
1
2
As at 29 March 2007.
Up to and including 29 March 2007.
In addition to the above pension costs, costs of € 110,000 were incurred in 2007 for repairs in respect of the
Early Retirement (Pre-pension and Life Course Savings) Act. As at 31 December 2008 Mr De Vries held 129,084
shares in the company (31 December 2007: 124,928 shares). Mr Wegstapel holds no shares in the company.
Messrs De Vries and Wegstapel are participating in the Group’s share option plan. See also note 67.
Royal Ten Cate Annual Report 2008 125

OTHER INFORMATION
The remuneration of the members of the Supervisory Board was as follows:
in euros
126 Royal Ten Cate Annual Report 2008
2008 2007
A.W. Veenman – Chairman1,2 (to 3 April 2008) 13,324 38,154
J.C.M. Hovers – Chairman1,2 (from 3 April 2008) 39,972 –
P.P.A.I. Deiters – Vice-Chairman1 30,492 29,343
F.A. van Vught2,* 25,008 23,532
E. ten Cate1,* 25,008 23,532
C.W. Versteeg (to 31 March 2008) 5,253 20,535
1 Member of the Financial Committee.
2 Member of the combined Remuneration, Selection and Appointments Committee.
*
Chairman.
139,057 135,096
The members of the Supervisory Board held no shares or option rights of Royal Ten Cate at the end of 2008.
56.3 Transactions with other associated companies and joint ventures
During the 2008 financial year, other (non-consolidated) associated companies and joint ventures purchased
goods from the Group amounting to € 25.7 million. As at 31 December 2008, the outstanding trade receivables
due to the Group from other associated companies amounted to € 13.4 million and from joint ventures
€ 1.3 million. The Group has no trade accounts payable to other associated companies and joint ventures.
Transactions with other associated companies and joint ventures take place on an objective, business basis.
56.4 Operating companies
A list of (significant) subsidiaries and companies can be found inside the back cover of this report.

57 ESTIMATES AND JUDGMENTS FORMED BY THE MANAGEMENT
The Executive Board has conducted discussions with the Financial Committee on the critical principles for the
financial reporting and estimates, as well as the application of such principles and estimates.
With regard to the pensions, the main actuarial assumptions are stated in note 49. With regard to guarantees
and claims, provisions have been formed whenever there is an actual liability or it is likely that an outflow
of funds will be necessary. The result of this is stated in note 50.
With regard to impairments in the case of loss-making companies, an examination has been carried out to
determine whether the realisable value of any cash generating unit was lower than the book value. This was
not the case in 2008.
Royal Ten Cate Annual Report 2008 127

Company financial statements
58 COMPANY PROFIT AND LOSS ACCOUNT note 2008 2007
In millions of euros
Result from associated companies after tax 60 65.6 46.6
Other results after tax – 14.5 – 0.2
NET INCOME 51.1 46.4
59 COMPANY BALANCE SHEET note 2008 2007
In millions of euros
FINANCIAL FIXED ASSETS 60
Interests in operating companies 641.3 336.1
Other participating interests – 1.3
Loans to operating companies 75.4 210.3
Deferred profit tax assets 2.3 3.7
719.0 551.4
CURRENT ASSETS
Due from operating companies 0.8 2.1
Profit tax receivable 1.5 –
Other receivables 1.7 3.2
Cash and cash equivalents 0.8 –
128 Royal Ten Cate Annual Report 2008
4.8 5.3
TOTAL ASSETS 723.8 556.7
EQUITY
Share capital 62 59.9 58.9
Share premium reserve 64 49.7 50.7
Statutory reserve 65 – 5.9 – 19.5
Other reserves 66 212.1 173.6
Undistributed Result 51.1 46.4
366.9 310.1
PROVISIONS 68 1.6 3.3
LONG-TERM LIABILITIES 69 305.6 223.3
SHORT-TERM LIABILITIES 70 49.7 20.0
TOTAL EQUITY AND LIABILITIES 723.8 556.7

Notes to the company financial statements
General
Accounting principles
In determining the accounting principles for its parent company financial statements, Royal Ten Cate uses the
option available under article 2.362 paragraph 8 of the Netherlands Civil Code. This means that the accounting
principles for the parent company financial statements of Royal Ten Cate are the same as those applying to the
consolidated financial statements. Associated companies over which significant influence is exercised are valued
in accordance with the equity method. The consolidated financial statements have been prepared in accordance
with the standards set by the International Accounting Standards Board and adopted by the European
Union. A description of these standards can be found in the accounting policies applicable to the consolidated
financial statements.
The share in the results of associated companies includes the share of Royal Ten Cate in the results of these
companies. Results from transactions involving a transfer of assets and liabilities between Royal Ten Cate and
its associated companies and between individual associated companies are not included to the extent that they
can be considered to be unrealised.
60 FINANCIAL FIXED ASSETS
Interest in
operating
companies
Other
participating
interests
Loans to
operating
companies
Deferred
profit tax
assets Total
Balance as at 1 January 336.1 1.3 210.3 3.7 551.4
Capital contributions 54.2 54.2
Internal restructurings 204.5 – 1.3 203.2
Translation differences 12.2 6.3 18.5
Loans granted 164.5 164.5
Repayment of loans – 305.7 – 305.7
Result from associated companies 65.6 65.6
Dividend of associated companies – 31.3 – 31.3
Withdrawn from result – 1.4 – 1.4
Balance as at 31 December 641.3 – 75.4 2.3 719.0
Royal Ten Cate is at the head of the Group and has capital interests in the operating companies stated on
the cover.
A number of legal/financial restructurings took place in 2008. A large proportion of the internal financing
activities of Royal TenCate were placed with a newly formed financing company registered in Switzerland.
61 EQUITY
The equity in the parent company financial statements corresponds to the equity in the consolidated financial
statements. A statement of changes in equity can be found on page 80.
Royal Ten Cate Annual Report 2008 129

NOTES TO THE COMPANY FINANCIAL STATEMENTS
62 CALLED AND PAID-UP CAPITAL 2008 2007
Authorised share capital 200.0 200.0
Of which not issued 140.1 141.1
130 Royal Ten Cate Annual Report 2008
59.9 58.9
63 ORDINARY SHARES 2008 2007
The authorised share capital consists of:
80,000,000 ordinary shares of € 2.50 200.0 200.0
Issued share capital
Balance as at 1 January 2008 2007
Ordinary shares 23,556,158 and 21,063,292 58.9 52.7
Issued shares 0 and 2,106,329 – 5.3
Issued stock dividend 410,743 and 386,537 1.0 0.9
Balance as at 31 December 59.9 58.9
64 SHARE PREMIUM RESERVE 2008 2007
Balance as at 1 January 50.7 6.3
Premium on issued shares – 45.3
Issued stock dividend – 1.0 – 0.9
Balance as at 31 December 49.7 50.7
The share premium reserve is available for distribution to shareholders.

65 STATUTORY RESERVE 2008 2007
65.1 Retained earnings of associated companies
Balance as at 1 January 1.3 –
Added from appropriation of profit in respect of 2008 and 2007 1.4 1.3
Balance as at 31 December 2.7 1.3
This reserve has been created for associated companies and joint ventures where free disposal of retained
earnings is subject to restriction.
65.2 Translation differences 2008 2007
Balance as at 1 January – 20.8 – 2.0
Change 12.2 – 18.8
Balance as at 31 December – 8.6 – 20.8
Balance of statutory reserve as at 31 December – 5.9 – 19.5
66 OTHER RESERVES 2008 2007
Balance as at 1 January 173.6 105.7
Added from 2007 and 2006 result 36.4 70.0
Repurchase of own shares for share savings plan/option plan – – 4.2
Share and option schemes 1.7 1.1
Issue of repurchased shares for share savings plan/option plan 0.4 1.0
Balance as at 31 December 212.1 173.6
67 OPTION PLAN
Royal Ten Cate operates a stock option plan for the management, established by the Supervisory Board.
The maximum possible account has been taken of the recommendations of VNO-NCW and the Dutch Investors’
Association (VEB). Those eligible for options are members of the Executive Board, the corporate and group
directors and a number of managers. The implementation of the share option plan is supervised by the compliance
officer.
The options are granted on a conditional basis. If after three years a specified performance level has been
attained, the options confer the right to acquire a € 2.50 ordinary share at the option exercise price.
The performance condition is that the earnings per share over the previous three years must have increased
at least by a percentage equal to inflation plus 3% per year. The term of the options was extended in 2008;
the exercise period of the vested options is now between the third and the eighth year after the conditional
granting of the option rights (previously between the third and sixth years). The exercise price is equivalent
to the average price of the Royal Ten Cate share on NYSE Euronext Amsterdam nv on the five stock exchange
Royal Ten Cate Annual Report 2008 131

NOTES TO THE COMPANY FINANCIAL STATEMENTS
trading days following publication of the annual figures. Each granted option right lapses on termination
of employment.
In principle options amounting to approximately 1.5% of the total number of shares outstanding will be granted
in any one year. The exercise of options is subject to the restrictions laid down in the Securities Transactions
Supervision Act.
67.1 Granting of options in 2009
On 3 March 2009 the intention was to grant 275,750 conditional options at the average market price during the
five stock exchange trading days following publication of the annual results on 4 March 2009. The distribution is
as follows:
03-03-2009 05-03-2008
Members of the Executive Board 100,000 92,000
Management and management support staff 175,750 175,000
275,750 267,000
67.2 Statement of movements in options of the Executive Board in 2008
Issued on Term until
132 Royal Ten Cate Annual Report 2008
Number of
options Exercise price
Exercised/
lapsed to
2007
Exercised
in 2008
Lapsed
in 2008
Outstanding
31-12-2008
Exercisable
31-12-2008
27-02-2002 27-02-2008 40,000 6.42 40,000 – – – –
25-02-2003 25-02-2011 40,000 6.18 40,000 – – – –
25-02-2004 25-02-2012 40,000 10.29 – – – 40,000 40,000
22-02-2005 22-02-2013 50,000 15.17 – – – 50,000 50,000
01-03-2006 01-03-2014 60,000 23.63 – – – 60,000 –
28-02-2007 28-02-2015 60,000 25.77 – – – 60,000 –
05-03-2008 05-03-2016 92,000 22.50 – – – 92,000 –
382,000 80,000 – – 302,000 90,000
03-03-2009 03-03-2017 100,000
The option series from 2002 to 2007 inclusive concern only Mr De Vries. The grant in 2008 concerns Mr De Vries
(60,000 options) and Mr Wegstapel (32,000).

67.3 Statement of movements in options of management and management support staff in 2008
Issued on Term until
Number of
options Exercise price
Exercised/
lapsed to
2007
Exercised
in 2008
Lapsed
in 2008
Outstanding
31-12-2008
Exercisable
31-12-2008
27-02-2002 27-02-2008 40,000 6.42 39,200 800 – – –
25-02-2003 25-02-2011 48,200 6.18 42,400 2,200 – 3,600 3,600
25-02-2004 25-02-2012 55,600 10.29 41,998 800 – 12,802 12,802
22-02-2005 22-02-2013 102,400 15.17 10,400 21,000 – 71,000 71,000
01-03-2006 01-03-2014 141,200 23.63 13,000 – 12,600 115,600 –
28-02-2007 28-02-2015 145,000 25.77 4,000 – 5,000 136,000 –
05-03-2008 05-03-2016 175,000 22.50 – – 6,500 168,500 –
707,400 150,998 24,800 24,100 507,502 87,402
03-03-2009 03-03-2017 175,750
67.4 Complete statement of movements in options in 2008
Issued on Term until
Number of
options Exercise price
Exercised/
lapsed to
2007
Exercised
in 2008
Lapsed
in 2008
Outstanding
31-12-2008
Exercisable
31-12-2008
27-02-2002 27-02-2008 80,000 6.42 79,200 800 – – –
25-02-2003 25-02-2011 88,200 6.18 82,400 2,200 – 3,600 3,600
25-02-2004 25-02-2012 95,600 10.29 41,998 800 – 52,802 52,802
22-02-2005 22-02-2013 152,400 15.17 10,400 21,000 – 121,000 121,000
01-03-2006 01-03-2014 201,200 23.63 13,000 – 12,600 175,600 –
28-02-2007 28-02-2015 205,000 25.77 4,000 – 5,000 196,000 –
05-03-2008 05-03-2016 267,000 22.50 – – 6,500 260,500 –
1,089,400 230,998 24,800 24,100 809,502 177,402
03-03-2009 03-03-2017 275,750
The Group received € 345,534 for the 24,800 options which were exercised during the year. The weighted average
exercise price was € 13.93 and the weighted average share price at sale was € 21.87.
67.5 Share savings plan
All employees in the Netherlands have been given the possibility of participating in the share savings plan.
The maximum amount per participant in 2008 was € 1,226 (2007: € 1,226). 3,827 shares were saved through this
plan in 2008 (2007: 3,274), as a result of which employees have saved a total of 52,055 shares since 2002
(2007: 48,228). The Group has received € 91,806 (2007: € 95,744) for 3,827 (2007: 3,274) saved shares (average
of € 23.99; 2007: € 29.24).
Royal Ten Cate Annual Report 2008 133

NOTES TO THE COMPANY FINANCIAL STATEMENTS
67.6 Repurchased shares
In principle the company will repurchase shares in order to prevent any dilution of earnings
per share caused by the granting of options.
number of shares
134 Royal Ten Cate Annual Report 2008
2008 2007
Number as at 1 January 555,874 508,946
Repurchase of shares – 175,000
Issued in respect of options – 24,800 – 124,798
Issued in respect of share savings plan – 3,827 – 3,274
Number as at 31 December 527,247 555,874
68 PROVISIONS 2008 2007
Guarantees and claims 1.6 3.0
Others – 0.3
Balance of provisions as at 31 December 1.6 3.3
The term of the provisions exceeds one year.
69 LONG-TERM LIABILITIES 2008 2007
Syndicated loan 303.3 214.1
Loans from operating companies 2.3 9.2
Balance as at 31 December 305.6 223.3
The conditions of the syndicated loan can be found in note 48 in the notes to the consolidated balance sheet.
70 SHORT-TERM LIABILITIES 2008 2007
Cash loans, overdrafts 46.9 17.4
Owed to consolidated operating companies 0.4 –
Repayment of long-term debt 0.9 –
Trade creditors and other payables 1.5 2.6
Balance as at 31 December 49.7 20.0

71 AUDITOR’S FEES
The following fees of KPMG Accountants N.V. and the other entities affiliated to the KPMG network have been
charged to the Group, in accordance with article 382a Part 9 of Book 2 of the Netherlands Civil Code.
Fees 2008 2007
in thousands of euros
Examination of the financial statements 801 686
Other audit assignments 280 249
Other non-audit services 515 655
Total 2008 1,596 1,590
72 LIABILITIES NOT SHOWN IN THE BALANCE SHEET
The company has issued a declaration of liability in accordance with article 403 of Book 2 of the Netherlands
Civil Code on behalf of its Dutch operating companies.
The company forms a tax group together with the majority of the Dutch operating companies for corporation
and sales tax. Each of these operating companies is severally liable for the tax payable by all the companies
included in the tax group.
Almelo, 3 March 2009
Executive Board
L. de Vries, Chairman
J. Wegstapel
Supervisory Board
J.C.M. Hovers, Chairman
P.P.A.I. Deiters, Vice-Chairman
F.A. van Vught
E. ten Cate
Royal Ten Cate Annual Report 2008 135

Other information
To the General Meeting of Shareholders of Royal Ten Cate
AUDITOR’S REPORT
Report on the financial statements
We have audited the 2008 financial statements of Royal Ten Cate of Almelo as set out on pages 73 to 135 of
this report. The financial statements consist of the consolidated financial statements and the company financial
statements. The consolidated financial statements comprise the consolidated balance sheet as at 31 December
2008, the profit and loss account, statement of changes in equity and cash flow statement for the year then
ended, and a summary of significant accounting policies and other explanatory notes. The company financial
statements comprise the company balance sheet as at 31 December 2008, the company profit and loss account
for the year then ended and the notes.
Management’s responsibility
Management is responsible for the preparation and fair presentation of the financial statements in accordance
with International Financial Reporting Standards as adopted by the European Union and with Part 9 of Book 2 of
the Netherlands Civil Code, and for the preparation of the management board report in accordance with Part 9
of Book 2 of the Netherlands Civil Code. This responsibility includes: designing, implementing and maintaining
internal control relevant to the preparation and fair presentation of the financial statements that are free from
material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies;
and making accounting estimates that are reasonable in the circumstances.
Auditor’s responsibility
Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our
audit in accordance with Dutch law. This law requires that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation
of the financial statements in order to design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
136 Royal Ten Cate Annual Report 2008

Opinion with respect to the consolidated financial statements
In our opinion, the consolidated financial statements give a true and fair view of the financial position of Royal
Ten Cate as at 31 December 2008, and of its result and its cash flow for the year then ended in accordance with
International Financial Reporting Standards as adopted by the European Union and with Part 9 of Book 2 of
the Netherlands Civil Code.
Opinion with respect to the company financial statements
In our opinion, the company financial statements give a true and fair view of the financial position of Royal Ten
Cate as at 31 December 2008, and of its result for the year then ended in accordance with Part 9 of Book 2 of
the Netherlands Civil Code.
Report on other legal and regulatory requirements
Pursuant to the legal requirement under 2:393 sub 5 part f of the Netherlands Civil Code, we report, to the
extent of our competence, that the management board report is consistent with the financial statements as
required by 2:391 sub 4 of the Netherlands Civil Code.
Enschede, 3 March 2009
KPMG ACCOUNTANTS N.V.
A.J.M. Oude Weernink RA
Royal Ten Cate Annual Report 2008 137

OTHER INFORMATION
POST BALANCE SHEET EVENTS
Acquisition of minority interest in TigerTurf
In the first quarter of 2009 it was announced that imminent agreement was expected on the acquisition of a
minority interest in TigerTurf, a leading company in the international synthetic turf market operating principally
in Australia and New Zealand. The company markets concepts for various sport and landscape applications.
Annual revenues are approximately € 50 million.
PROVISIONS OF THE ARTICLES OF ASSOCIATION RELATING TO APPROPRIATION OF PROFIT
(Article 27)
General
The authorised capital is divided into ordinary shares.
Summary of the provisions of the articles of association
1. Profit distributions may only take place to the extent that the equity of the company exceeds the paid and
called-up part of the issued capital plus the reserves which must be held by law.
2. With the approval of the Supervisory Board, the Executive Board is authorised to determine the part of the
profit that will be reserved.
3. The sum remaining from the profit after the reservation in accordance with paragraph 2 is at the disposal of
the general meeting of shareholders.
4. Shares held by the company in its own capital are not taken into account in calculating the appropriation of
profit.
5. The dividend payable shall be made payable no later than 30 days after adoption of the financial statements
by the general meeting of shareholders. It shall be made payable only to the authorised persons in whose
name the shares are held. Such payments shall discharge the company.
6. A shareholder’s claim for payment shall be time-barred after a period of five years has elapsed.
138 Royal Ten Cate Annual Report 2008

PROPOSED APPROPRIATION OF PROFIT
in millions of euros 2008 2007
Net income 51.1 46.4
Added to other reserves in accordance with article 27, paragraph 4 of the articles of association – 29.5 – 26.5
21.6 19.9
Net addition to the reserve for retained earnings of associated companies – 1.4 – 1.4
20.2 18.5
Undistributed dividend balance from previous year 0.2 0.5
Payment of € 0.85 and € 0.80 dividend to holders of ordinary shares in accordance with article 27
20.4 19.0
paragraph 3 of the articles of association – 20.4 – 18.8
Undistributed dividend balance at year end, which is transferred to the relevant account 0.0 0.2
Royal Ten Cate Annual Report 2008 139

Ten-year summary
In millions of euros, unless stated otherwise
140 Royal Ten Cate Annual Report 2008
Figures based on IFRS Figures based on Dutch GAAP
2008 2007 2006 2005 2004 2003 2002 2001 2000 1999
CONSOLIDATED PROFIT
AND LOSS ACCOUNT
Revenues
Changes in inventories of finished products and
1,032.6 886.0 770.5 686.5 641.0 569.6 602.1 620.0 620.2 665.5
work in progress – 18.0 – 11.7 – 4.8 0.5 – 12.6 – 2.6 – 2.4 6.0 – 3.2 9.6
Raw materials and manufacturing supplies 562.0 463.6 402.2 353.8 332.1 280.7 289.9 297.2 294.4 279.8
Work contracted out and other external expenses 60.7 54.9 34.7 29.3 29.5 28.8 36.4 37.9 36.3 48.6
Personnel costs 190.3 178.3 171.2 161.6 159.7 142.9 151.3 159.1 160.2 165.5
Other operating costs 111.5 98.8 94.0 83.5 78.5 71.5 79.0 78.9 74.7 91.0
Depreciation and impairment 30.7 29.1 22.1 18.6 18.9 18.5 22.9 25.0 25.2 30.1
EBITA 95.4 73.0 51.1 39.2 34.9 29.8 25.0 15.9 32.6 40.9
Amortisation 11.6 3.6 1.0 0.7 0.3 1.1 1.1 1.0 – –
OPERATING RESULT (EBIT) 83.8 69.4 50.1 38.5 34.6 28.7 23.9 14.9 32.6 40.9
Net financial expenses – 13.7 – 11.3 – 8.0 – 4.6 – 6.8 – 7.0 – 12.0 – 12.9 – 10.6 – 10.2
PRE-TAX INCOME 70.1 58.1 42.1 33.9 27.8 21.7 11.9 2.0 22.0 30.7
Profit tax
RESULT AFTER TAX BUT BEFORE RESULT
FROM PARTICIPATING INTERESTS AND
– 19.1 – 11.9 – 11.4 – 11.5 – 9.2 – 5.3 1.7 0.7 – 3.3 – 9.0
RESULT FROM DIVESTED ACTIVITIES
Share in net income of associated companies
51.0 46.2 30.7 22.4 18.6 16.4 13.6 2.7 18.7 21.7
and result from divested activities
RESULT AFTER TAX BEFORE
– 0.3 45.4 8.1 5.1 3.9 5.4 3.5 5.5 – 0.1
EXTRAORDINARY ITEMS 51.0 46.5 76.1 30.5 23.7 20.3 19.0 6.2 24.2 21.6
Extraordinary items after tax – – – – – – 12.3 – 12.0 – –
RESULT AFTER TAX 51.0 46.5 76.1 30.5 23.7 20.3 31.3 – 5.8 24.2 21.6
Minority interests 0.1 – 0.1 – 0.1 – – 0.1 – – 0.2 0.1 – –
NET INCOME 51.1 46.4 76.0 30.5 23.6 20.3 31.1 – 5.7 24.2 21.6
Dividend 20.4 18.8 16.2 12.5 10.2 8.5 7.7 2.4 9.8 8.6
EBITA in % of revenues 9.2% 8.2% 6.6% 5.7% 5.4% 5.2% 4.2% 2.6% 5.3% 6.1%
Cash earnings 62.7 46.6
Return on average net capital employed 13.4% 13.1% 14.4% 15.3% 13.5% 11.7% 9.7% 5.9% 13.6% 13.5%

In millions of euros, unless stated otherwise
CONSOLIDATED BALANCE SHEET
Figures based on IFRS Figures based on Dutch GAAP
2008 2007 2006 2005 2004 2003 2002 2001 2000 1999
Intangible fixed assets 212.1 136.8 12.4 13.8 12.1 10.6 12.8 14.7 – –
Tangible fixed assets 247.4 218.1 165.8 161.4 118.8 118.1 130.5 154.3 151.5 143.6
Financial fixed assets 25.1 19.8 18.3 35.2 19.9 11.4 9.2 5.6 7.5 3.4
Total fixed assets 484.6 374.7 196.5 210.4 150.8 140.1 152.5 174.6 159.0 147.0
Inventories 211.5 176.2 157.7 157.5 138.6 110.0 117.4 124.6 134.6 112.0
Receivables 187.7 166.2 128.2 125.0 98.8 91.7 89.8 109.7 107.0 96.2
Securities and cash 5.4 4.8 6.7 4.6 2.7 5.8 2.9 0.1 0.4 0.4
Total current assets 404.6 347.2 292.6 287.1 240.1 207.5 210.1 234.4 242.0 208.6
TOTAL ASSETS 889.2 721.9 489.1 497.5 390.9 347.6 362.6 409.0 401.0 355.6
Equity * 366.9 310.1 238.7 181.8 146.5 162.0 152.9 129.5 140.6 130.5
Minority interests 5.1 0.3 0.2 – 0.1 0.1 0.2 0.1 0.4 0.1
Group equity 372.0 310.4 238.9 181.8 146.6 162.1 153.1 129.6 141.0 130.6
Provisions 43.5 40.8 43.8 56.1 52.1 15.6 15.1 14.4 11.2 11.3
Long-term debts 316.2 222.3 63.5 130.2 74.1 82.9 107.0 77.7 83.1 92.6
Banks and short term loans 20.3 12.9 30.4 27.1 24.6 13.9 8.9 99.7 67.4 25.1
Other short-term debts 137.2 135.5 112.5 102.3 93.5 73.1 78.5 87.6 98.3 96.0
TOTAL LIABILITIES 889.2 721.9 489.1 497.5 390.9 347.6 362.6 409.0 401.0 355.6
*
With effect from 2003 equity before appropriation of profit.
Group capital/total capital 42% 43% 49% 37% 38% 47% 42% 32% 35% 37%
Acquisitions /(de)consolidations
Investments in tangible and intangible fixed
88.1 175.1 – 63.0 40.8 29.2 0.3 1.4 23.6 14.8 34.6
assets 48.0 62.9 43.0 26.2 12.0 16.9 17.0 28.5 29.5 33.7
Depreciation and amortisation 42.3 32.7 23.1 19.3 19.2 19.6 24.0 26.0 25.2 30.1
Number of staff years at year-end 4,437 4,020 3,532 3,578 3,634 3,245 3,278 3,625 3,585 3,970
Number of shares outstanding at year-end
(x 1,000) 23,967 23,556 21,063 20,784 20,472 20,096 19,192 18,872 18,872 18,092
Net earnings per € 2.50 share 2.18 2.04 3.66 1.48 1.17 1.03 1.63 – 0.31 1.30 1.20
Cash earnings per share 2.68 2.04
Dividend per share in euro 0.85 0.80 0.70 0.60 0.50 0.43 0.40 0.13 0.52 0.48
Closing price in euro 16.05 21.27 23.21 21.50 13.55 9.02 6.25 6.50 8.23 9.38
Royal Ten Cate Annual Report 2008 141

OPERATING COMPANIES, ASSOCIATED
COMPANIES AND OTHER INTERESTS
as at 31 December 2008
ADVANCED TEXTILES & COMPOSITES
Ten Cate Advanced Textiles bv Nijverdal, Netherlands
Group activities of the TenCate Advanced Textiles group in the Netherlands
Ten Cate Protect bv Nijverdal, Netherlands
Ten Cate Protective Fabrics USA inc Union City, Georgia, USA
Fabrics for protective clothing and professional wear
Ten Cate Technical Fabrics bv Nijverdal, Netherlands
Fabrics for outdoor applications
Ten Cate Advanced Spinning bv Nijverdal, Netherlands
Specialist yarns and fabrics for protective clothing and outdoor applications
Ten Cate – Union Protective Fabrics Asia ltd Bangkok, Thailand
(50.65%) (from 16 August 2008)
Fabrics for protective clothing
Ten Cate Permess Interlinings Hong Kong ltd Hong Kong, China
Ten Cate Permess (Wuxi) Advanced Textiles co ltd
Production and sale of interlinings
Xishan, China
Ten Cate Advanced Composites bv Nijverdal, Netherlands
Advanced composites for the aircraft industry and antiballistic applications
Ten Cate Advanced Armour S.A.S. Vienne, France
Ten Cate Advanced Armour Danmark A/S Vissenbjerg, Denmark
Advanced ceramics and composites for antiballistic applications
Ten Cate Advanced Composites USA inc Morgan Hill, California, USA
Phoenixx TPC inc Taunton, Massachusetts, USA
Advanced composites for aerospace and industrial applications
Composix Co. (from 30 January 2008) Newark, Ohio, USA
Advanced composites for vehicle armour
YLA inc (from 12 March 2008) Benicia, California, USA
CCS Composites inc (from 12 March 2008) Benicia, California, USA
Advanced composites for aerospace and industrial applications
GEOSYNTHETICS & GRASS
Ten Cate Geosynthetics North America inc Atlanta, Georgia, USA
Ten Cate Geosynthetics Austria GmbH Linz, Austria
Ten Cate Geosynthetics France S.A.S. Bezons, France
Ten Cate Geosynthetics Netherlands bv Almelo, Netherlands
Ten Cate Geosynthetics Asia sdn bhd Kuala Lumpur, Malaysia
TenCate Industrial Zhuhai co ltd Zhuhai, China
Geofabrics Australasia pty ltd (50%)
Geosynthetics and industrial fabrics
Cheltenham, Australia
Ten Cate Geosynthetics sdn bhd (Malaysia) Kuala Lumpur, Malaysia
Ten Cate Geosynthetics (Thailand) ltd Bangkok, Thailand
Ten Cate Geosynthetics pte ltd Singapore
Ten Cate Geosynthetics Italia srl Lazzata, Italy
Ten Cate Geosynthetics (UK) ltd Telford, United Kingdom
Ten Cate Geosynthetics sl Madrid, Spain
Ten Cate Geosynthetics Schweiz AG Zürich, Switzerland
Ten Cate Deutschland GmbH Dietzenbach, Germany
Ten Cate Geosynthetics Polska Spzoo Krakow, Poland
Ten Cate Geosynthetics CZ sro Prague, Czech Republic
Ten Cate Geosynthetics Rumania
Sales offi ces
Bucharest, Romania
Ten Cate Thiolon bv Nijverdal, Netherlands
Ten Cate Thiolon North America inc Dayton, Tennessee, USA
Ten Cate Thiolon Middle East (49%) 1) Synthetic turf components and systems
Dubai, UAE
Ten Cate Thiobac bv Nijverdal, Netherlands
Backing for synthetic turf systems
Edel Grass bv (50%) (from 14 May 2008) Genemuiden, Netherlands
Marketing and installation of synthetic turf systems
TECHNOLOGIES
Xennia Technology ltd (75%) Letchworth, United Kingdom
(from 14 March 2008)
Specialist inkjet technology for industrial applications
1) Due to legislation in Dubai, 51% is held by a local partner.
Royal Ten Cate has 100% economic ownership.

TECHNICAL COMPONENTS
Ten Cate Enbi International bv Beek, Netherlands
TenCate Enbi group holding company
Ten Cate Enbi GmbH Opladen, Germany
Ten Cate Enbi Kft Rétság, Hungary
Ten Cate Enbi inc Shelbyville, Indiana, USA
Ten Cate Enbi pte ltd Singapore
Ten Cate Enbi Zhuhai co ltd Zhuhai, China
Technical rollers and components for printers, copiers, fax machines, postal
sorting machines, automated teller machines, insulation and heating systems
OTHERS
Ten Cate Assurantiën bv Almelo, Netherlands
Insurance
Ten Cate Nederland bv Almelo, Netherlands
Royal Ten Cate USA inc Atlanta, Georgia, USA
Ten Cate UK ltd London, United Kingdom
Ten Cate France S.A.S. Paris, France
Ten Cate Deutschland GmbH Opladen, Germany
Ten Cate Danmark A/S Copenhagen, Denmark
Royal Ten Cate Pacifi c ltd Hong Kong, China
Royal Ten Cate China Holding ltd
Country holding companies
Hong Kong, China
Ten Cate Finance AG Schaffhausen, Switzerland
Financing company
The operating companies listed here are consolidated in the financial statements, with the exception
of the companies shown as non-consolidated. Some interests of minor relevance to the overall
picture have been omitted from the list, in accordance with article 379, paragraph 3, Book 2
of the Netherlands Civil Code. The companies are wholly owned unless stated otherwise.
NON-CONSOLIDATED COMPANIES
GreenFields bv (20%) Kampen, Netherlands
Marketing organisation for synthetic turf systems
Landscape Solutions bv (20%) Goirle, Netherlands
Synthetic turf for landscaping
Performance Fabrics and Fibers LLC (16%) Andrews,
(from 16 January 2008)
Non-wovens for industrial applications
South Carolina, USA
Royal Ten Cate Annual Report 2008

Colophon
Text
Royal Ten Cate
Translation
VVH business translations, Utrecht (NL)
Concept and realisation
C&F Report Amsterdam B.V.
Photography
Picture Report, Amsterdam
Haverkort fotografie, Enschede
Royal Ten Cate
Operating companies, associated companies and other interests
Number of copies printed
3,000

Royal Ten Cate
investor relations & corporate development
F.R. Spaan, director
royal@tencate.com
Stationsstraat 11
7607 GX Almelo, The Netherlands
P.O. Box 58
7600 GD Almelo, The Netherlands
Telephone +31 (0)546 544 338
Fax +31 (0)546 824 655
www.tencate.com