[ annual report 2002[ financial

calendar

Financial calendar

5 7

[annual repo

rt 2002

contents

[ contents

Annual Meeting of Shareholders Friday May 30, 2003

Announcement of 2003 first quarter results Friday May 30, 2003

Announcement of 2003 first semester results Friday September 12, 2003

Announcement of 2003 third quarter results Friday November 7, 2003

Announcement of 2003 full-year results March 2004

FINANCIAL INFORMATION AND INVESTOR RELATIONS

For all further information, institutional investors and financial analysts are advisedto contact: Geert Asselman Chief Financial Officer

Fabriekstraat 23 • B-8850 Ardooie T +32(0)51/74.09.80 F +32(0)51/74.09.79e-mail corporate@sioen.be Internet http://www.sioen.com

ANNUAL REPORT/JAARVERSLAG/RAPPORT ANNUEL

This annual report is available in English, Dutch and French.Dit jaarverslag is beschikbaar in het Nederlands, het Frans en het Engels.Ce rapport annuel est disponible en français, en néerlandais et en anglais.

Addresses see next page

Realisation: KLIEK CREATIE 02 0425 - 051/40 43 12 - 03/05

1 highlights by division

2 Sioen Industries Profile

3 strategy and mission of Sioen Industries

4/5 important events in 2002

6/7 Statement to the chareholders

8/9 Report of the Board of Directors

10/11 Group structure

12 Value chain

13 Sioen worldwide

14/15 Coating Division

16/17 Apparel Division

18/19 Processing Division

20/23 Corporate Governance

24 personnel

25 environmental polis

26/27 the Sioen Industries share

28 Financial review

57 Financial calendar

Omslag Adresses

Highlights see next page

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Sioen Coating nvFabriekstraat 23B-8850 ArdooieBelgiumTel: +32 51 74 09 00Fax: +32 51 74 09 64sioline@sioen.beHR Brugge 50.741 - BE 402.753.106

Sioen Fibres sa - extrusionZoning Industriel du Blanc BallotBoulevard Métropole 9B-7700 MouscronBelgiumTel: +32 56 48 12 70Fax: +32 56 48 12 85extrusion@sioen.beRC Tournai 84.078 - BE 463.789.464

Sioen Fabrics saZoning Industriel du Blanc BallotAvenue Urbino 6B-7700 MouscronBelgiumCoatingTel: +32 56 85 68 80Fax: +32 56 34 61 31sioenfabrics@sioen.beWeavingTel: +32 56 85 01 40Fax: +32 56 85 01 47weaving@sioen.beRC Tournai 81.546 - BE 458.801.684

TIS nvDriehoekstraat 2AB-9451 Haaltert (Kerksken)BelgiumTel: +32 53 85 92 20Fax: +32 53 85 92 56tis@sioen.beHR Aalst 66.762 - BE 405.085.064

Saint Frères sas - coating4 route de VilleBP 1F-80420 FlixecourtFranceTel: +33 322 51 51 45Fax: +33 322 51 51 49sfe@sioen.beRCS Amiens B 408 448 850 - TVA FR 76408448850

Veranneman Technical Textiles nvFabriekstraat 31B-8850 ArdooieBelgiumTel: +32 51 24 81 70Fax: +32 51 22 61 68info@veranneman.beHR Brugge 94.298 - BE 429.387.623

SIOFAB S.A.Indústria de Revestimentos TêxteisRua da Indústria4795-074 Vila das AvesSanto TirsoPortugalTel: +351 252 87 47 14Fax: +351 252 94 29 68siofab@net.sapo.ptSanto Tirso SOB O N° 4641 - 505.046.644

Sioen Coating Distribution nvFabriekstraat 23B-8850 ArdooieBelgiumTel: +51 74 09 00Fax: +51 74 09 64sioline@sioen.beHR Brugge 68.454 - BE 436.241.167

Sioen GmbHJohannes-Lau-Hof 8D-30165 HannoverGermanyTel: +49 511 541 30 80Fax: +49 511 541 30 82sioengmbh@sioen.comHR B 53295 - DE 811299457

Sioen Coated Fabrics (Shanghai)Trading Co. LtdRoom O, Floor 15, Hengji BuildingNo. 99 Huaihai Road (East)200021 ShanghaiP.R. of ChinaTel: +86 21 638 425 21Fax: +86 21 638 427 39sioen@online.sh.cn

Sioen nvFabriekstraat 23B-8850 ArdooieBelgiumTel: +32 51 74 08 00Fax: +32 51 74 08 62customer@sioen.beHR Brugge 96.584 - BE 478.652.141

Siotec bvbaFabriekstraat 23B-8850 ArdooieBelgiumTel: +51 74 08 00Fax: +51 74 08 85siotec@sioen.beHR Brugge 58.906 - BE 424.304.823

Sioen Fibres sa - distributionZoning Industriel du Blanc BallotBoulevard Métropole 9B-7700 MouscronBelgiumTel: +32 56 85 54 30Fax: +32 56 34 66 10distribution@sioen.beRC Tournai 84.078 - BE 463.789.464

Sioen nv - Baleno AntwerpenKorte Leemstraat 32018 AntwerpenBelgiumTel: +32 3 213 99 80Fax: +32 3 227 17 39baleno@sioen.be

Sioen France sasPavillon Hermès110 avenue Gustave EiffelZI La CoupeF-11100 NarbonneFranceTel: +33 4 68 42 35 15Fax: +33 4 68 42 27 43cin@fr.sioen.comNarbonne B 300 774 767 - TVA FR 49300774767

Sioen DeutschlandAuf Bösselhagen 1431515 WunstorfGermanyTel: +49 5031 94 11 40Fax: +49 5031 94 11 450

SIP Protection sasZ.U.P. De LabarreF-09000 FoixFranceTel: +33 5 61 65 44 44 Fax: +33 5 61 02 80 16sip-protection@fr.sioen.comFoix B 394 215 511 - TVA FR 41394215511

Vidal Protection sas20 et 22 rue de l'ArtisanatF-81300 GraulhetFranceTel: +33 5 63 34 52 46Fax: +33 5 61 02 80 16sip-protection@fr.sioen.comCastres B 717 220 222 - TVA FR 82717220222

SIOEN UK LtdUnit 2 Windsor HouseAckhurst Business ParkFoxhole RoadChorleyLancashire PR7 1NYUKTel: +44 1257 277 244Fax: +44 1257 277 245sales@uk.sioen.com3761142 - GB 732.4071.62

Sioen Ireland(Gairmeidi Caomhnaithe Dhun Na nGall Teoranta Ltd)Industrial EstateBunbegCo. DonegalIrelandTel: +353 75 311 69Fax: +353 75 315 91ireland@sioen.ie78212 - IE 4621355M

Mullion Manufacturing Ltd44 North Farm RoadSouth Park Industrial EstateScunthorpeNorth Lincolnshire DN17 2AYUKTel: +44 172 428 0077Fax: +44 1257 277 245mullion@sioen.com1871440 - GB 365.1873.34

Confection Tunisienne de Sécurité (C.T.S) sa5 Impasse N°2Rue 8612 - (Z.I.) La Charguia2035 TunisTunesiaTel: +216 1 77 34 77Fax: +216 1 78 40 47cts@tn.sioen.comB 133171996 - 03030V/A/M/000

Sioen Tunisie sa7 Impasse N°2Rue 8612 - (Z.I.) La Charguia2035 TunisTunesiaTel: +216 1 80 75 47Fax: +216 1 80 92 62cts@tn.sioen.comB 19711998 - 614715 S / A / M / 000

Sioen Zaghouan saZone Industrielle de Zaghouan1100 ZaghouanTunesiaTel: +216 2 68 06 60fax: +216 2 68 26 60cts@tn.sioen.comB 177132000 - 747023 F / A / M / 000

P.T. Sioen IndonesiaJl. Irian RayaBlok E-26Nusantara Bonded Zone(Kawasat Berikat Nusantara)Cakung CilincingJakarta 14140IndonesiaTel: +62 21 440 33 88Fax: +62 21 440 14 28indonesia@sioen.com1.068.001.5-052

P.T. Sungin Tex Jalan Raya Narogong Km 12,5Pangkalan IVDesa CikiwulKec. Bantar GebangBekasi Barat 17310IndonesiaTel: +62 21 825 2222Fax: +62 21 825 4444indonesia@sioen.com1.068.012.2-407

Sioen Scandinavia- DenmarkPilestraede 50,2DK-1112 Copenhagen K DenmarkTel: +45 70 26 70 36Fax: +45 46 15 25 03scandinavia@sioen.com

Sioen Scandinavia- Finland BranchNicewear AgencySäästäjäkuja 1FIN-33840 TampereFinlandTel: +358 3 265 24 93Fax: +358 3 265 24 93Scandinavia@sioen.com

EMB nvRijksweg 15B-2880 BornemBelgiumTel: +32 3 890 64 00Fax: +32 3 899 26 03emb@sioen.beHR Mechelen 75.337 - BE 421.485.289

Inducolor saChemin Preuscamps 12B-7822 Meslin-L'EvêqueBelgiumTel: +32 68 25 02 30Fax: +32 68 55 26 02inducolor@sioen.beRC Tournai 81.531 - BE 400.685.125

Coatex nvIndustriezone SappenleenSappenleenstraat 3-4B-8970 PoperingeBelgiumTel: +32 57 34 61 60Fax: +32 57 33 35 23coatex@sioen.beHR Ieper 31.633 - BE 434.140.425

Sioen Nordifa saRue Ernest Solvay 181B-4000 LiègeBelgiumTel: +32 4 252 21 50Fax: +32 4 253 04 25nordifa@sioen.comRC Liège 208.057 - BE 474.276.154

Saint Frères Confection sas2 route de VilleBP 37F-80420 FlixecourtFranceTel: +33 322 51 51 70Fax: +33 322 51 51 79sfc@sioen.beAmiens B 408 449 098 - FR 44408449098

Bacam sasAvenue Raspail 4294250 GentillyFranceTel: +33 322 51 51 70Fax: +33 322 51 51 79bacam@sioen.beCreteil B 443 613 310TVA FR 39443613310

Sioen Industries nv • Fabriekstraat 23 • B-8850 Ardooie - BelgiumTel: +32 51 74 09 00 • Fax: +32 51 74 09 64 • corporate@sioen.be • HR Brugge 72.476 • BE 441.642.780

HIGHLIGHTS 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993(1)

(in millions) EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR

Turnover 237,7 226,02 192,4 161,1 141,2 107,9 85,1 66,8 48,4 45,1

Operating profit 24,6 33,82 32,6 28,4 19,6 15,0 9,7 7,7 4,8 1,3

Financial result (8,7) (6,7) (3,0) (1,3) (1,7) (1,2) (1,1) (1,9) (2,0) (2,3)

Profit from ordinary activities before taxes 31,8 27,12 29,6 27,1 17,9 13,8 8,6 5,8 2,7 (1,0)

Net profit from ordinary activities 15,9 17,30 19,0 17,6 12,3 9,1 6,8 4,5 2,2 (1,0)

Profit for the group 10,0 16,95 18,8 18,6 12,2 9,0 6,5 4,3 2,0 (1,3)

Equity 125,3 123,92 112,0 97,5 79,8 33,6 25,1 18,6 14,7 12,8

Minority interests 2,0 1,53 1,3 1,1 0,8 0,6 0,4 0,4 0,3 0,2

Long term liabilities(2) 231,5 220,40 191,2 166,7 132,7 75,1 59,3 35,8 26,2 26,9

Long term financial debt 95,1 83,42 66,2 57,3 42,5 35,8 30,3 14,0 8,7 11,5

Net financial debt(3) 134,6 118,44 91,6 71,1 56,7 44,7 40,6 31,1 22,2 19,9

Balance sheet total 331,8 310,27 262,9 227,6 185,3 112,6 89,5 70,1 51,9 45,9

Working capital(4) 117,9 116,53 100,9 81,0 73,2 43,4 40,5 30,9 20,6 14,8

Cash-flow(5) 30,2 35,75 32,5 29,5 20,7 14,2 10,8 7,6 4,9 2,8

Net capital expenditure in fixed tangible assets 30,6 27,09 27,4 28,3 22,4 15,6 10,9 4,5 0,7 3,2

Fixed tangible assets 153,1 138,89 115,7 99,5 73,6 40,7 29,1 21,9 19,0 20,4

Depreciation 19,8 18,56 14,1 11,6 7,1 4,7 3,2 2,8 2,5 3,6

Renumeration, social security costs and pensions 47,0 42,84 34,5 30,9 24,1 17,3 13,0 10,3 7,5 8,6

Personnel at year end (in units) 4.023 3.924 3.420 2.857 2.555 1.552 1.231 930 725 601

Ratios

Liquidity (current assets/ creditors) 1,78 1,91 2,05 2,11 2,12 1,92 2,00 1,40 1,28 1,34

Solvability (equity/ balance sheet total) 37,7% 39,9% 42,6% 42,8% 43,1% 29,8% 28,1% 26,5% 28,4% 27,9%

Net financial debt/ equity 0,96 0,96 0,82 0,73 0,71 1,33 1,62 1,68 1,51 1,55

Return on equity(6) 8,1% 15,1% 19,3% 23,4% 36,3% 35,7% 34,8% 29,1% 15,7% (6,2%)

ROCE(7) 9,6% 15,6% 18,1% 19,3% 23,3% 21,5% 18,3% 19,4% 13,5% 4,8%

Net profit margin(8) 4,4% 7,6% 9,9% 11,8% 8,9% 8,5% 7,9% 6,8% 4,4% (2,8%)

Cash flow/turnover 12,7% 15,8% 16,9% 18,3% 14,6% 13,2% 12,7% 11,4% 10,1% 6,3%(1) Accounting year of 18 months.(2) Equity + minority interests + provisions and deferred taxes + long term debt.(3) Financial debt - cash deposits - cash at hand and in bank.(4) Current assets (cash deposits, cash at hand and in bank excluded) - non-financial debts payable within one year - accrued charges and deferred income.(5) Consolidated profit for the year + depreciation of intangible and tangible fixed assets and other amounts written off + provisions for liabilities and charges + written off stocks, contracts in progress and trade debtors.(6) Profit for the group/equity as of December 1999; for 1993 prorated to 12 months.(7) Operating profit/((equity + minority interests + provisions and deferred taxes + net financial debts) as of December 1999).(8) Net consolidated profit for the year/turnover.

Highlights per share(2) 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993(1)

EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR

Operating profit 1,15 1,58 1,52 1,33 0,92 0,75 0,48 0,38 0,24 0,07

Net profit from ordinary activities 0,74 0,80 0,89 0,82 0,58 0,43 0,32 0,21 0,10 (0,05)

Profit for the group 0,47 0,79 0,88 0,87 0,57 0,45 0,32 0,21 0,10 (0,06)

Cash-flow 1,41 1,67 1,52 1,38 0,97 0,71 0,54 0,38 0,24 0,14

Equity 5,86 5,79 5,24 4,56 3,73 1,68 1,26 0,93 0,74 0,64

Gross dividend 0,16 0,16 0,14 0,12 0,09 0,07 0,05 - - -

Net dividend 0,12 0,12 0,11 0,09 0,07 0,05 0,04 - - -

Pay-out 35,9% 20,2% 15,8% 14,2% 15,7% 15,5% 14,5% - - -

Highest share price 14,95 23,51 33,65 47,5 43,13 10,68 4,02 - - -

Lowest share price 6,00 10,1 18,4 28,5 9,92 3,92 3,84

Share price at year end(3) 7,65 11,50 20,90 33,00 38,18 9,97 3,92 - - -

Evolution of share(5) (33,5%) (45%) (36,7%) (14%) 283% 154% 13% - - -

Price/ Earnings Ratio(5) 16,4 14,5 23,8 37,9 67,0 22,1 12,1 - - -

Price/ Cash flow Ratio(5) 5,4 6,9 13,8 23,9 39,4 14,0 7,3 - - -

Average daily transaction volume(4) 5.310 5.104 9.548 13.216 26.671 20.950 43.410 - - -

Average monthly transaction volume(4) 112.837 107.194 199.710 277.530 557.863 434.762 855.860 - - -

Year volume (in millions) 10,4 20,7 63,7 122,5 162,6 33,9 8,2 - - -

Number of shares Sioen Industries issued (000)(2) 21.391 21.391 21.391 21.391 21.391 19.965 19.965 19.965 19.965 19.965

Market capitalisation (in millions)(5) 164 246,0 447,1 705,9 816,6 199,0 78,2 - - -(1) Accounting year of 18 months.(2) Recalculated after the split in 55 on 13/09/96 and the split in 10 on 05/11/98.(3) As of 5 May 2003, the price for a Sioen Industries share is 7,40 EUR/share.(4) The data relating to 1996 have been strongly influenced by the high volume traded after the IPO of October 18, 1996.(5) Based on the Sioen Industries share price at year end.

HIGHLIGHTS 1993 - 2002 (in EUR millions)

Profit for the group

EBIT

Cash flow/ turnover

Consolidated cash flow

EBIT/turnover

HIGHLIGHTS 1993 - 2002 (in EUR millions)

Added value

Turnover

CAPITAL EXPENDITURE 1993-2002 (in EUR millions) EVOLUTION PERSONNEL 1993 - 2002

Gross margin

Gross margin %

Sioen

Euro stoxx 50

COMPOSITION LIABILITIES 1993-2002 (in %) SHARE PRICE EVOLUTION (till April 2, 2003) (in EUR millions)

Short term debt

Long term debt

Provisions

Equity/Minority interests

PROCESSINGDIVISION

COATINGDIVISION

APPARELDIVISION

Workers

Employees + management

Total