(11/09/2003) SIOEN INDUSTRIES : Results first semester 2003 - Positive results in the first semester thanks to gr

RESULTS FIRST SEMESTER YTD

(000 Euro)
Sioen Industries	1st Sem./	1st Sem./	Evolution
	2002	2003
Turnover	117.505,7	133.969,2	16.463,6
			14,01%
Gross margin	66.817,9	74.272,4	7.454,6
% of turnover	56,86%	55,44%	11,16%
Added value	49.009,5	54.379,3	5.369,8
% of turnover	41,71%	40,59%	10,96%
EBITDA (1)	24.084,3	27.226,1	3.141,8
% of turnover	20,50%	20,30%	13,04%
Operating result	15.176,0	15.309,0	133,0
% of turnover	12,92%	11,43%	0,88%
EBIT (2)	14.435,1	13.843,7	-591,4
% of turnover	12,28%	10,33%	-4,10%
Financial result	-4.158,4	-5.780,5	-1.622,1
% of turnover	-3,54%	-4,31%	39,01%
Result from general activities	11.017,6	9.528,5	-1.489,1
% of turnover	9,4%	7,1%	-13,52%
Exceptional result	0	91,1	91,1
% of turnover	0,00%	0,07%
Result before taxation	11.017,6	9.619,6	-1.398,0
% of turnover	9,38%	7,18%	-12,69%
Taxes	-4.537,1	-3.072,6	1.464,5
Tax rate	38,59%	27,72%	-32,28%
Net result	6.480,4	6.546,9	66,5
Net result
(part of the group)	5.963,2	6.177,5	214,4
% of turnover	5,07%	4,61%	3,59%
Cashflow (3)	16.129,7	19.929,4	3.799,7
Cashflow % of turnover	13,73%	14,88%	23,56%

	1st Sem./	1st Sem./
	2002	2003
Capital and reserves	126.360,0	129.321,0
Net financial debts (4)	140.332,0	162.817,6
Net investments	22.252,0	20.980,0
Balance sheet total	338.044,0	370.864,0

Key figures per share	1st Sem./	1st Sem./
(in Euro per share and per semester) (5)	2002	2003
EBITDA	1,1259	1,2728
Result from general activities	0,5151	0,4454
Net result (part of the group)	0,2788	0,2888
Cashflow	0,754	0,9317
Capital and reserves (per share)	5,91	6,05

(1) Earnings Before Taxes Interest Taxes Depreciation & Amortisation: Operating result + Depreciation of stocks, works in process and trade debtors + Provisions for liabilities and charges + Amortisation (2) Earnings Before Interests & Taxes : Operating result- Depreciation consolidation goodwill (3) Cashflow: Net result + Depreciation of stocks, works in process and trade debtors + Provisions for liabilities and charges + Amortisation (4) Net financial debts : financial debts - investments and cash at hand and in bank (5) Key figures per share : calculated on on halfyearly base, rations divided by number of shares When taking into consideration the acquisitions, realized in the first half, viz. the North-French Pennel group and the Dutch-Polish Roltrans group, the turnover in the first half of 2003 amounts to 133.9 million Euros or an increase with 14 % compared to the first half of 2002. The growth strategy seems to be successful: in addition to the external growth, the group also realizes an organic growth of 5.98 %. When excluding the take-over purchases, the net turnover in the first semester amounts to 124.5 million Euros compared to 117.5 Euros over the first semester of 2002. The positive turnover evolution can be found back in each of the three divisions of the group. The Coating division maintains its growth. Over the last half year, the turnover went up to 68.6 million Euros compared to 64.1 million Euros last year or an increase with 7% compared to the same period last year (with an unchanged perimeter, the turnover increased with 2.82 %). Sophisticated product development and market research resulted in growth figures in market segments such as publicity, swimming pools, sports mats, and new geographic markets. On the market of the technical products, growth further pursues on the markets on which the Sioen group is active: some examples of technical products: reinforcement nets for roof covering and geotextiles. The turnover of the Confection division has increased in the first six months of 2003 with 2.9%, to reach 31.2 million Euros compared to 30.4 million Euros in the same period last year. The Confection division further focuses on quality and technicity. Remaining faithful to this image, a number of new products and markets have been and are being further developed. The Confection division is thus gradually extending to the market of high-quality technical clothing and outdoor sports wear. In the Processing division the turnover has increased in the first semester to 24.6 million Euros compared to 23 million Euros over the same period last year. A growth of no less than 6.8%, of which the manufacturers of fine chemicals take the largest part. The gross margin of the group for the first semester amounts to 74.2 million Euros or 55.44% of the turnover compared to 56.86 % over the same period last year. (with an unchanged perimeter, the margin would have increased to 57.29 %). At the moment, the lower gross margins of the new acquisitions are weighing on the positive evolution of the existing divisions. The operational cashflow or EBITDA over the first semester amounts to 27.2 million Euros or 20.3 % of the turnover and is hence 3.1 million Euros higher than last year. This is an increase with 13.04 % compared to the same period last year. The EBIT margin (operating result - depreciation consolidation goodwill) over the first semester amounts to 13.8 million Euros or 10.33 % of the turnover compared to 14.4 million Euros last year. The difference is mainly explained by the strong increase in depreciations. The rationalization that was implemented last year can be considered as successful. Simultaneously with the reorientation of the production workshops, we also introduced an 'efficiency improvement program' on these new sites. On the one hand, it results in a decrease in the number of personnel, and hence in the costs, and on the other hand in an increase in the productivity. The financial expenses over the past semester amount to 5.7 million Euros. This amount mainly includes debt expenses (interests on current loans) to the amount of 3.7 million Euros, 1.4 millon Euros for depreciation consolidation goodwill and 0.6 million Euros for bank expenses and exchange losses. The significant fall in taxes can mainly be explained by the changed tax rate. The net result over the first semester of 2003 amounts to 6.5 million Euros compared to 6.4 million Euros over the same period last year. The cashflow, calculated on the basis of the net result, amounts to 19.9 million Euros or 14.9% of the turnover compared to 16.1 million Euros or 13.7 % of the turnover over the same period last year, or an increase with 24 %. In preparation to the IFRS regulation (a new accountancy regulation) two new projects will be launched in the autumn of this year. The activities of the divisions will be scrutinized and if necessary reorganized in order to meet the stipulations of the new regulation. Within the same scope, all assets (machines, buildings, land, ...) and all participations in the companies that we acquired as well as the accompanying goodwill will be re-evaluated. Within that light, it is not excluded that Sioen Industries will, by analogy with other companies, make a number of shifts and even once-only exceptional expenses. Prospects for 2003 The positive evolution of the turnover seems to continue in the second half. Nevertheless, it remains very difficult to make prospects. The internal factors are in control, but dependency on uncertain external factors impels us to be cautious. Nevertheless, Sioen is ready for the future. Company Profile of the Sioen Industries Group Sioen Industries is a fast-growing, integrated, industrial group that is active in the branches of technical textiles and specialized chemistry by way of three divisions. The Coating Division is the world leader in coating synthetic technical fabrics, supported by a vertically integrated group spinning mill and modern weaving mills. The Confection Division is the European leader in industrial protective clothing, outdoor and recreational clothing made of technical fabrics. The Processing Division is responsible for the production of pigmented pastes and granulates, the processing of coated fabrics and PVC foils, and for the production of filters for industrial applications. Since its establishment in 1960, the Sioen group has been characterised by a continuous growth. Today, Sioen Industries has more than 30 production and sales locations, employing more than 4500 staff members and realizing a total turnover of € 240 million. In 1996, Sioen Industries was introduced onto the Brussels Stock Exchange, quotes on the Brussels Euronext market, and also is part of the Next Prime segment. Financial Calendar Meeting of Analysts Friday September 12 2003 Announcement results third quarter 2003 Friday November 7 2003 Announcement result 2003 March 2004 For more information /Financial information /Investor relations, please contact: Geert Asselman CFO Sioen Industries n.v. Fabriekstraat 23 B-8850 Ardooie Tel. 051/74.09.80 Fax 051/74.09.79 E-mail : geert.asselman@sioen.be The financial service has been delivered by the following banks : KBC, Fortis, ING & Dexia. (C) Companynews