Brussels, 26 August 2022 – 07:00 CET

Recticel First Half-Year 2022 Results

Net sales increase from EUR 229.7 million¹ to EUR 274.3 million (+19.4%), of which +15.6% organic growth, +0.6% currency effect, EUR 38.5 million contribution from Trimo² , and a EUR 31.0 million drop in sales of chemicals to the divested Automotive companies
Adjusted EBITDA: from EUR 22.4 million¹ to EUR 29.2 million (+30.3%)
Result of the period (share of the Group): from EUR 28.0 million to EUR 34.6 million
Net financial debt³ : EUR 254.9 million (31 December 2021: EUR 147.8 million; 30 June 2021 : EUR 206.6 million)

Olivier Chapelle (CEO): "We are satisfied with the sales and profitability development of our Insulation activities, in a highly challenging environment characterised by supply chain disruptions, by historical inflation on raw materials, labour, transportation and energy costs, and by economic uncertainties. Volumes have been slightly higher than in 2021, and our business teams have been able to compensate all inflationary pressures during the period. In parallel, our operations teams have displayed high flexibility to accommodate the supply chain challenges.

The first half of 2022 has seen intense M&A activity, with sequentially the closing of the Bedding divestment to Aquinos on 31 March, the closing of the Trimo acquisition on 29 April, the final exit out of the Proseat joint venture on 20 May. The Competition and Markets Authority in the UK has recently decided to refer the divestment case of Engineered Foams to a phase II investigation, with the closing of the transaction now expected latest by the first quarter of 2023."

OUTLOOK

Our Insulation business continues to perform well in difficult economic circumstances. However, the geopolitical turbulences, supply chain challenges and economic uncertainties prevent us from providing an outlook for the full year at this stage.

² Trimo d.o.o. is fully consolidated as of 01 May 2022.
³ Excluding the drawn amounts under non-recourse factoring programs: EUR 29.5 million (continuing operations) per 30 June 2022 compared to EUR 25.2 million per 31 December 2021 and EUR 45.2 million per 30 June 2021 (2021 still including Bedding and Engineered Foams)

¹ As announced in the press release of 10 August 2022, the Engineered Foams activities which are currently in process of being divested to the US-based Carpenter Co., have been accounted for as Discontinued Operations (IFRS 5).

For comparison purposes the formerly published 2021 income statements and cash flow statements have been restated accordingly.

CONSOLIDATED GROUP RESULTS – KEY FIGURES

in million EUR	1H2021 restated 1	1H2022	D %
	(a)	(b)	(b)/(a)-1
Sales	229.7	274.3	19.4%
Gross profit	39.6	47.9	20.9%
as % of sales	17.3%	17.5%
Adjusted EBITDA	22.4	29.2	30.3%
as % of sales	9.7%	10.6%
EBITDA	22.1	24.5	11.2%
as % of sales	9.6%	8.9%
Adjusted operating profit (loss)	15.8	22.5	41.8%
as % of sales	6.9%	8.2%
Operating profit (loss)	15.5	17.8	14.8%
as % of sales	6.8%	6.5%
Financial result	0.0	( 1.5)	n.m.
Income from other associates 4	0.6	( 2.4)	n.m.
Change in fair value of option structures	( 4.9)	2.3	n.m.
Income taxes	4.0	( 4.7)	n.m.
Result of the period of the continuing operations	15.3	11.6	-24.6%
Result of the discontinued operations	12.9	23.5	81.9%
Result of the period (share of the Group)	28.0	34.6	23.8%
Result of the period (share of the Group) - base (per share, in EUR)	0.50	0.62	23.3%

	31 Dec 2021	30 Jun 2022
Total Equity	391.3	417.6	6.7%
Net Financial Debt (incl. IFRS 16 - Leases) 3	147.8	254.9	72.4%
Gearing ratio (Net financial debt/Total Equity)	37.8%	61.0%
Leverage ratio (Net financial debt/EBITDA)	1.6	1.8	5

⁴ Income from other associates = income from associates not considered as being part of the Group's core business are not integrated in Operating profit (loss); i.e. Proseat (until April 2022) and Ascorium (formerly Automotive Interiors)

⁵ The 30 June 2022 pro forma leverage ratio = Net financial debt (before application of IFRS 5) divided by the sum of (a) (EBITDA (last 12 months) (before application of IFRS 5) and (b) EBITDA (last 12 months) of the recently acquired company Trimo. This pro forma leverage ratio is a better comparable to the leverage ratio at 31 December 2021.

The following changes in the scope of consolidation took place in 2022:

Acquisition of Slovenia-based Trimo d.o.o. which has been fully consolidated as of 01 May 2022.
Application of IFRS 5 to the Engineered Foams activities, which are in process of being sold to the US-based Carpenter Co.
Disposal on 31 March 2022 of the Bedding activities, which were already accounted for as discontinued operations on 31 December 2021.

Anticipating the divestment to Carpenter, the Engineered Foams activities have been carvedout and part of the former Corporate activities and costs have been transferred to Engineered Foams.

Net sales also comprise the sale of chemical raw materials at cost to the Proseat and TEMDA2/Ascorium (formerly Automotive Interiors) companies. Both supply agreements have been terminated now. Ascorium since 01 July 2021 and Proseat since 01 April 2022.

The results of the Automotive joint-ventures (i.e. Proseat and TEMDA2/Ascorium) are reported under 'Income from other associates'. The remaining 25% participation in Proseat has been sold on 20 May 2022 following the exercise of the put option on 14 April 2022.

As from 2022, as it becomes a pure Insulation player, Recticel will be reporting on a single segment basis.

Net Sales: EUR 274.3 million² compared to EUR 229.7 million in 1H2021.

Second quarter 2022:

2Q2022 sales increased by 23.9% from EUR 124.0 million to EUR 153.6 million, including EUR 38.5 million from the Trimo acquisition, a EUR 22.1 million reduction in sales of chemicals to the divested Automotive companies and a +0.3% currency impact.

Demand remained solid with the exception of COVID-related demand for VIP-insulation products which decreased with the progressive recess of the COVID-pandemic.

First half-year 2022:

1H2022 sales increased by 19.4% from EUR 229.7 million to EUR 274.3 million, including the EUR 38.5 million contribution from Trimo, a EUR 31.0 million drop in sales of chemicals to the divested Automotive companies and a +0.6% currency impact.

Adjusted EBITDA: EUR 29.2 million compared to EUR 22.4 million in 1H2021.

Adjusted EBITDA margin of 10.6% compared to 9.7% in 1H2021.

The steady volumes, pricing discipline and the successful integration of Trimo as from 01 May 2022 led to improved operational profitability, despite the strong inflationary pressure on all input costs.

Adjusted operating profit (loss): EUR 22.5 million compared to EUR 15.8 million in 1H2021.

Adjusted operating profit (loss) margin of 8.2% compared to 6.9% in 1H2021.

Adjustments to Operating profit (loss):

Adjustments to Operating profit (loss) on continuing operations in 1H2022 amount to EUR -4.6 million (1H2021: EUR -0.3 million) and include:

EUR -1.1 million of restructuring costs,
EUR -3.5 million of other adjustments, which relate mainly to (i) legal and advisory fees (EUR -1.0 million) primarily linked to the acquisition of Trimo, (ii) a fair value adjustment on inventories by application of IFRS 3, reversal of inventory step up values resulting from the purchase price allocation of Trimo (EUR -2.2 million).

EBITDA: EUR 24.5 million compared to EUR 22.1 million in 1H2021.

EBITDA margin of 8.9% compared to 9.6% in 1H2021.

Operating profit (loss): EUR 17.8 million compared to EUR 15.5 million in 1H2021.

Operating profit (loss) margin of 6.5% compared to 6.8% in 1H2021.

Financial result: from EUR +0.1 million to EUR -1.5 million

Net interest charges: EUR -1.4 million compared to EUR -0.9 million in 1H2021

'Other net financial income and expenses': EUR -0.04 million compared to EUR +1.0 million in 1H2021. This item comprises mainly exchange rate differences (EUR -0.2 million compared to EUR +1.0 million in 1H2021).

Income from other associates: EUR -2.4 million (EUR +0.6 million in 1H2021) relates to the negative result of TEMDA2 (at 49%). The participation in Proseat had been impaired at the end of 2020, as a result of which its book value had been reduced to zero. Hence the 1H2022 income statement of Recticel is not impacted by the negative result of Proseat, which has been fully divested on 20 May 2022.

Fair value of option structures: EUR +2.3 million (1H2021: EUR -4.9 million), results from the reversal of the previously recognised additional provision.

The put/call structure on the remaining 49% participation in TEMDA2/Ascorium (formerly Automotive Interiors) has been maintained at a "zero" value in accordance with the underlying valuation method.

Income and deferred taxes: from EUR +4.0 million to EUR -4.7 million:

Current income tax: EUR -3.6 million (1H2021: EUR 1.1 million);
Deferred tax: EUR -1.2 million (1H2021: EUR +5.1 million).

Result of the period from continuing operations: EUR 11.6 million compared to EUR 15.3 million in 1H2021.

Result from discontinued operations: EUR 23.5 million compared to EUR 12.9 million in 1H2021.

The result from discontinued operations mainly represents:

(i) the result of the period of the Engineered Foams activities which are currently in the process of being sold to the Carpenter Co. (EUR 4.6 million);
(ii) the result of the first three months of 2022 of the Bedding activities (EUR 1.1 million);
(iii) the net capital gain on the disposal of the Bedding activities sold to Aquinos Group (EUR +17.9 million, including EUR 5.0 million of provisions for indemnities); and
(iv) the result of the settlements related to the divestment of the Ascorium activities (EUR -0.1 million).

The total result (restated) of discontinued operations in 1H2021 was composed of:

(i) the result of the period of the Engineered Foams activities which are currently in the process of being sold to Carpenter Co. (EUR 13.9 million);
(ii) the net result related to the Bedding activities, which at that time were deemed to be divested (EUR -2.3 million) (IFRS 5 criteria however not yet met then); and
(iii) the result following the settlements related to the divestment of the Ascorium (formerly Automotive Interiors) activities (EUR 1.3 million).

Consolidated result of the period (share of the Group): EUR 34.6 million compared to EUR 28.0 million in 1H2021.

in million EUR	30 JUN 2021	30 SEP 2021		31 DEC 2021 31 MAR 2022	30 JUN 2022
TOTAL EQUITY	354.8	-	391.3	-	417.6

Net financial debt excluding factoring	145.3	130.3	103.8	92.6	247.6
+ Lease debt (IFRS 16)	61.3	58.7	44.0	37.0	7.3
CONSOLIDATED NET FINANCIAL DEBT	206.6	189.0	147.8	129.6	254.9
+ Drawn amounts under factoring programs	45.2	41.4	25.2	0.0	29.5
TOTAL CONSOLIDATED NET FINANCIAL DEBT	251.8	230.4	173.0	129.6	284.4

Gearing ratio (incl. IFRS 16 )	58.2%	-	37.8%	-	61.0%
Leverage ratio (incl. IFRS 16)	2.6	-	1.6	-	1.8

FINANCIAL POSITION

The Group's total net debt position increased by EUR 111.4 million over 1H2022 to reach EUR 284.4 million, mainly due to (i) the payment of EUR 154.8 million (net of cash) for the acquisition of Trimo, (ii) the deferred payment in January 2022 of CHF 20 million for the acquisition of FoamPartner, (iii) higher net working capital needs resulting from seasonality effects and price inflation, (iv) the dividend payment of EUR 16.2 million; partially offset by (v) the net EUR 84.5 million cash inflow from the disposal of the Bedding activities to Aquinos on 31 March 2022 and by (vi) the net proceeds from the sale of land in Balen (Belgium) (EUR 7.6 million).

The Group confirms that all conditions under the financial arrangements with its banks are respected.

ON-GOING DIVESTMENT PROCESS RECTICEL ENGINEERED FOAMS

On 18 July 2022, the UK Competition and Markets Authority (the "CMA") published its decision that the remedy undertakings offered by Carpenter cannot be accepted by the CMA under the Enterprise Act 2002 without more clarifications, and that it will refer the case to Phase 2.

Recticel and Carpenter are collaborating to provide additional information and clarifications to the CMA with regard to the remedy undertakings. Due to the additional Phase 2 procedure, the closing of the transaction will be delayed and is now expected to be completed by the first quarter of 2023.

°°°

APPENDICES

All figures and tables contained in these annexes have been compiled in accordance with the IFRS accounting and valuation principles, as adopted within the European Union. The applied valuation principles, as published in the latest annual report at 31 December 2021, were applied for the figures included in this press release.

The analysis of the risk management is described in the annual report and the IAS 34 Interim report per 30 June 2022, both which are available from www.recticel.com.

CONDENSED CONSOLIDATED INCOME STATEMENT

CONDENSED CONSOLIDATED INCOME STATEMENT
Group Recticel in thousand EUR	1H2021 restated	1H2022	D
	(a)	(b)	(b)/(a)-1
Sales	229 678	274 321	19.4%
Cost of sales	( 190 054)	( 226 413)	19.1%
Gross profit	39 624	47 908	20.9%
General and administrative expenses	( 13 061)	( 13 631)	4.4%
Sales and marketing expenses	( 8 788)	( 11 717)	33.3%
Research and development expenses	( 1 836)	( 2 105)	14.7%
Impairments goodwill, tangible and intangible assets	0	( 57)	n.m.
Other operating revenues	3 529	1 198	-66.1%
Other operating expenses	( 3 930)	( 3 754)	-4.5%
Operating profit (loss)	15 538	17 842	14.8%
Interest income	265	477	80.0%
Interest expenses	( 1 206)	( 1 918)	59.0%
Other financial income	1 805	4 820	167.0%
Other financial expenses	( 816)	( 4 861)	495.7%
Financial result	48	( 1 482)	n.m.
Income from other associates	572	( 2 384)	n.m.
Change in fair value of option structures	( 4 865)	2 330	n.m.
Result of the period before taxes	11 293	16 306	44.4%
Income taxes	4 029	( 4 746)	n.m.
Result of the period after taxes - continuing operations	15 322	11 560	-24.6%
Result of the period after taxes - discontinued operations	12 919	23 496	81.9%
Result of the period after taxes - continuing and discontinued operations	28 241	35 056	24.1%
of which attributable to the owners of the parent	27 952	34 618	23.8%
of which attributable to non-controlling interests	289	438	n.m.

Income from other associates: income from associates not considered as being part of the Group's core business are not integrated in Operating profit (loss); i.e. Proseat and Ascorium (formerly Automotive Interiors)

EARNINGS PER SHARE

in EUR	1H2021 restated 1	1H2022	D
Number of shares outstanding (including treasury shares)	55 893 420	56 208 420	0.6%
Weighted average number of shares outstanding (before dilution effect)	55 461 573	55 714 814	0.5%
Weighted average number of shares outstanding (after dilution effect)	56 162 796	56 734 281	1.0%

Earnings per share - continuing operations	0.28	0.21	-24.9%
Earnings per share - discontinued operations	0.23	0.42	81.0%
Earnings per share of continuing and discontinued operations	0.51	0.63	23.6%

Earnings per share from continuing operations
Basic	0.28	0.21	-24.9%
Diluted	0.27	0.20	-25.3%

Earnings per share from discontinued operations
Basic	0.23	0.42	81.0%
Diluted	0.23	0.41	80.0%

Net book value	6.35	7.43	17.0%

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Group Recticel in thousand EUR	1H2021 restated	1H2022
Result for the period after taxes	28 241	35 056
Other comprehensive income
Items that will not subsequently be recycled to profit and loss
Actuarial gains (losses) on employee benefits recognized in equity	3 819	2 874
Deferred taxes on actuarial gains (losses) on employee benefits	( 457)	( 136)
Currency translation differences	( 131)	9
Total	3 231	2 747
Items that subsequently may be recycled to profit and loss
Hedging reserves	29	0
Currency translation differences	2 913	1 949
Deferred taxes on retained earnings	288	162
Total	3 229	2 112
Other comprehensive income net of tax	6 460	4 858
Total comprehensive income for the period	34 701	39 914
Total comprehensive income for the period	34 701	39 914
of which attributable to the owners of the parent	34 412	39 476
of which attributable to non-controlling interests	289	438
Total comprehensive income for the period attributable to the owners of the parent	34 412	39 476
Continuing operations	17 074	11 161
Discontinued operations	17 338	28 315

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

in thousand EUR	as published 34 945	30 JUN 2022	%

Intangible assets		12 339	-64.7%
Goodwill	13 721	126 568	822.4%
Property, plant & equipment	313 406	114 771	-63.4%
Right-of-use assets	62 603	10 318	-83.5%
Investment property	7 564	113	-98.5%
Investments in associates	12 709	0	-100.0%
Investments in other associates	10 361	7 977	-23.0%
Non-current receivables	18 730	15 388	-17.8%
Deferred tax assets	46 845	29 869	-36.2%
Non-currrent assets	520 884	317 343	-39.1%
Inventories	112 897	58 620	-48.1%
Trade receivables	141 596	83 762	-40.8%
Deferred receivable for share investments/divestements	0	26 006	n.m.
Other receivables and other financial assets	15 869	17 542	10.5%
Income tax receivables	4 660	389	-91.7%
Cash and cash equivalents	118 367	66 845	-43.5%
Assets classified as held for sale	141 466	559 899	295.8%
Current assets	534 855	813 063	52.0%
TOTAL ASSETS	1 055 739	1 130 406	7.1%

Capital	139 909	140 521	0.4%
Share premium	132 087	133 596	1.1%
Share capital	271 996	274 117	0.8%
Treasury shares	( 1 450)	( 1 450)	0.0%
Other reserves	( 3 697)	( 2 994)	-19.0%
Retained earnings	112 404	133 154	18.5%
Hedging and translation reserves	( 8 686)	( 8 872)	2.1%
Elements of comprehensive income of discontinued operations	19 215	21 728	13.1%
Equity (share of the Group)	389 782	415 683	6.6%
Equity attributable to non-controlling interests	1 524	1 962	28.7%
Total equity	391 306	417 645	6.7%
Employee benefit liabilities	39 135	13 999	-64.2%
Provisions	21 993	15 295	-30.5%
Deferred tax liabilities	36 229	12 471	-65.6%
Financial liabilities	208 505	180 285	-13.5%
Other amounts payable	25	0	-100.0%
Non-current liabilities	305 887	222 050	-27.4%
Provisions	3 386	1 415	-58.2%
Financial liabilities	59 064	141 819	140.1%
Trade payables	120 247	98 684	-17.9%
Current contract liabilities	9 081	14 568	60.4%
Income tax payables	4 466	2 596	-41.9%
Deferred payables for share investments	18 749	0	-100.0%
Other amounts payable	66 885	43 943	-34.3%
Liabilities directly associated with assets classified as held for sale	76 668	187 685	144.8%
Current liabilities	358 546	490 710	36.9%
TOTAL EQUITY AND LIABILITIES	1 055 739	1 130 406	7.1%

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

Group Recticel in thousand EUR	1H2021 restated1	1H2022
Operating profit (loss)	15 538	17 842
Income from discontinued operations	1 287	0
Amortisation of intangible assets	776	598
Depreciation of tangible assets	5 787	6 031
(Write-back)/Write-offs on assets	( 364)	1 015
Changes in provisions	1 735	( 158)
(Gains) / Losses on disposals of intangible and tangible assets	( 508)	( 278)
Other non-cash elements	( 1 582)	532
GROSS OPERATING CASH FLOW BEFORE WORKING CAPITAL MOVEMENTS	22 669	25 582
Changes in working capital	17 815	( 13 299)
Trade & Other long term debts maturing within 1 year	318	0
Income taxes paid	( 344)	( 692)
Cash flow from operating activities (discontinued operations)	13 893	( 12 514)
NET CASH FLOW FROM OPERATING ACTIVITIES (a)	54 351	( 922)
Interests received	200	646
Dividends received	25	33
Disposal Bedding	0	84 520
Acquisition Trimo, net of cash acquired	0	( 154 783)
Increase of loans and receivables	( 295)	( 631)
Decrease of loans and receivables	3 643	149
Investments in intangible assets	( 1 528)	( 1 998)
Investments in property, plant and equipment	( 1 089)	( 3 110)
Net deferred charges - long term	( 37)	0
Disposals of intangible assets	5	0
Disposals of property, plant and equipment	1 559	7 660
Cash flow from divestment (investment) activities (discontinued operations)	( 227 782)	( 25 005)
NET CASH FLOW FROM DIVESTMENT (INVESTMENT) ACTIVITIES (b)	( 225 299)	( 92 518)
Interests paid on financial debt (c)	( 1 665)	( 1 844)
Interests paid on lease debt (c)	( 54)	( 52)
Dividends paid	( 14 451)	( 16 229)
Increase (Decrease) of capital	889	2 121
Increase of financial debt	198 560	87 043
Decrease of lease debt (d)	( 9 321)	( 1 696)
Cash flow from financing activities (discontinued operations)	4 313	( 5 093)
NET CASH FLOW FROM FINANCING ACTIVITIES (e)	178 271	64 250
Effect of exchange rate changes (f)	513	( 1 756)
Effect of exchange rate changes (discontinued operations) (f)	506	1 374
CHANGES IN CASH AND CASH EQUIVALENTS (a)+(b)+(e)+(f)	8 342	( 29 572)

NET FREE CASH FLOW (a)+(b)+(c)+(d)	( 181 987)	( 97 031)
Net cash position opening balance (continued operations)	64 213	84 055
Net cash position opening balance (discontinued operations)	15 042	41 664

Net cash position opening balance (g)	79 255	125 719
Net cash position closing balance (continuing operations)	50 688	66 845
Net cash position closing balance (discontinued operations)	36 909	29 302
Net cash position closing balance (h)	87 597	96 147
CHANGES IN CASH AND CASH EQUIVALENTS (h)-(g)	8 342	( 29 572)

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

Group Recticel in thousand EUR	Capital	Share	premium Treasury shares	Other reserves	Retained earnings	Translation differences reserves and Hedging reserves	Continuing operations	Discontinued operations Bedding	Discontinued operations Engineered Foams	Total shareholders' equity	Non-controlling interests	Total equity, non controlling interests included
At the end of the period 31 December 2021	139 909	132 087	(1 450)	(3 697)	112 404	(8 686)	370 566	6 196	13 020	389 782	1 524	391 306
Dividends	0	0	0	0	(16 229)	0	(16 229)	0	0	(16 229)	0	(16 229)
Stock options (IFRS 2) Capital movements	0 613	0 1 509	0 0	532 0	0 0	0 0	532 2 121	0 0	0 0	532 2 121	0 0	532 2 121
Shareholders' movements	613	1 509	0	532	(16 229)	0	(13 576)	0	0	(13 576)	0	(13 576)
Profit or loss of the period	0	0	0	0	11 113	0	11 113	18 888	4 617	34 618	438	35 056
Other comprehensive income'	0	0	0	172	168	( 292)	48	719	4 092	4 858	0	4 858
Comprehensive income	0	0	0	172	11 281	( 292)	11 161	19 607	8 708	39 477	438	39 914
Change in scope	0	0	0	( 0)	25 698	106	25 803	(25 803)	0	( 0)	0	( 0)
At the end of the period 30 June 2022	140 521	133 596	(1 450)	(2 994)	133 154	(8 872)	393 955	0	21 729	415 683	1 962	417 645

RECONCILIATION WITH ALTERNATIVE PERFORMANCE MEASURES

Group Recticel	1H2021	1H2022
in thousand EUR Income statement	restated
Sales	229 678	274 321
Gross profit	39 624	47 908
EBITDA	22 078	24 546
Operating profit (loss)	15 538	17 842

Operating profit (loss)	15 538	17 842
Amortisation intangible assets	780	597
Depreciation tangible assets Impairments on goodwill, intangible and tangible fixed assets	5 760 0	6 051 57
EBITDA	22 078	24 546

EBITDA	22 078	24 546
Restructuring charges	626	1 132
Other	( 330)	3 482
Adjusted EBITDA	22 375	29 160

Operating profit (loss)	15 538	17 842
Restructuring charges	626	1 132
Other Impairments	( 330) 0	3 482 57
Adjusted Operating profit (loss)	15 835	22 513

	31 DEC 2021
Total net financial debt	as published	30 JUN 2022
Non-current financial liabilities	208 505	180 285
Current financial liabilities	59 064	141 819
Cash	( 118 367)	( 66 845)
Other financial assets 1	( 1 380)	( 409)
Net financial debt on statement of financial position	147 822	254 850

Factoring programs	25 162	29 543
Total net financial debt	172 984	284 393
1 Hedging instruments and interest advances
Gearing ratio (Net financial debt / Total equity)
Total equity	391 306	417 645

Net financial debt on statement of financial position / Total equity Total net financial debt / Total equity	37.8% 44.2%	61.0% 68.1%

Leverage ratio (Net financial debt / EBITDA)
Net financial debt on statement of financial position / EBITDA 5	1.6	1.8
Total net financial debt / EBITDA 5	1.9	2.0

Net working capital
Inventories and contracts in progress	112 897	58 620
Trade receivables	141 596	83 862
Deferred receivables for share investments/divestments	0	26 006
Other receivables	15 869	17 542
Income tax receivables Trade payables	4 660 ( 120 247)	389 ( 98 684)
Current contract liabilities	( 9 081)	( 14 568)
Income tax payables	( 4 466)	( 2 596)
Other amounts payable	( 66 885)	( 43 943)
Net working capital	74 343	26 628

Current ratio (= Current assets / Current liabilities)
Current assets, excluding discontinued operations	393 389	253 164
Current liabilities, excluding discontinued operations	283 146	303 025
Current ratio (factor)	1.4	0.8

GLOSSARY

• IFRS measures

Consolidated (data) : financial data following the application of IFRS 11, whereby joint ventures and associates are integrated on the basis of the equity method.

• Alternative Performance Measures

In addition, the Group uses alternative performance measures (Alternative Performance Measures or "APM") to express its underlying performance and to help the reader to better understand the results. APM are not defined performance indicators by IFRS. The Group does not present APM as an alternative to financial measures determined in accordance with IFRS and does not give more emphasis to APM than the defined IFRS financial measures.

Adjusted EBITDA: EBITDA before Adjustments (to Operating Profit)

Adjusted operating profit (loss): Operating profit (loss) + adjustments to operating profit (loss)

Adjustments to Operating profit (loss): include operating revenues, expenses and provisions that pertain to restructuring programmes (redundancy payments, closure & clean-up costs, relocation costs,...), reorganisation charges and onerous contracts, impairments on assets ((in)tangible assets and goodwill), revaluation gains or losses on investment property, gains or losses on divestments of non-operational investment property, and on the liquidation of investments in affiliated companies, revenues or charges due to important (inter)national legal issues and costs of advisory fees incurred in relation to acquisitions or business combination projects, costs of advisory fees incurred in relation to acquisitions, divestments or business combination projects, including fees incurred in connection with their financing and reversals of inventory step up values resulting from purchase price allocations under IFRS 3 Business Combinations.

Current ratio: Current assets / Current liabilities

EBITDA: Operating profit (loss) + depreciation, amortisation and impairment on assets; all of continued activities

Gearing: Net financial debt / Total equity

Income from other associates: income from associates not considered as being part of the Group's core business are not integrated in Operating profit (loss); i.e. Proseat and Ascorium (formerly Automotive Interiors)
Leverage: Net financial debt / EBITDA (last 12 months)
Net free cash-flow: Net free cash flow: is the sum of the (i) Net cash flow after tax from operating activities, (ii) the Net cash flow from investing activities, (iii) the Interest paid on financial liabilities and (iv) reimbursement of lease liabilities; as shown in the consolidated cash flow statement.
Net financial debt: Interest bearing financial liabilities and lease liabilities at more than one year + interest bearing financial liabilities and lease liabilities within maximum one year + accrued interests – cash and cash equivalents + Net marked-to-market value position of hedging derivative instruments. The interest-bearing borrowings do not include the drawn amounts under non-recourse factoring/forfeiting programs
Net working capital: Inventories and contracts in progress + Trade receivables + Other receivables + Income tax receivables – Trade payables – Income tax payables – Other amounts payable
Operating profit (loss): Profit before income from other associates, fair value adjustments of option structures, earnings of discontinued activities, interests and taxes. Operating profit (loss) comprises income from associates of continued activities.
Total net financial debt : Net financial debt + the drawn amounts under off-balance sheet non-recourse factoring programs

Uncertainty risks concerning the forecasts made

This press report contains forecasts which entail risks and uncertainties, including with regard to statements concerning plans, objectives, expectations and/or intentions of the Recticel Group and its subsidiaries. Readers are informed that such forecasts entail known and unknown risks and/or may be subject to considerable business, macroeconomic and competition uncertainties and unforeseen circumstances which largely lie outside the control of the Recticel Group. Should one or more of these risks, uncertainties or unforeseen or unexpected circumstances arise or if the underlying assumptions were to prove to be incorrect, the final financial results of the Group may possibly differ significantly from the assumed, expected, estimated or extrapolated results. Consequently, neither Recticel nor any other person assumes any responsibility for the accuracy of these forecasts.

Financial calendar

Full-year 2022 results 28.02.2023 (at 07:00 AM CET) First quarter 2023 trading update 28.04.2023 (at 07:00 AM CET) Annual General Meeting 30.05.2023 (at 10:00 AM CET) First half-year 2023 results 31.08.2023 (at 07:00 AM CET) Third quarter 2023 trading update 27.10.2023 (at 07:00 AM CET)

Third quarter 2022 trading update 28.10.2022 (at 07:00 AM CET)

For additional information

RECTICEL avenue du Bourget/Bourgetlaan 42, 1130 Brussels
	PRESS	INVESTOR RELATIONS
	Mr Olivier Chapelle Tel: +32 2 775 18 01 [email protected]	Mr Michel De Smedt Mobile: +32 479 91 11 38 [email protected]

Recticel in a nutshell

Recticel is a Belgian industrial group with a strong European dimension, but also with operations in Asia, Africa and the United States. End-2021, Recticel (including discontinued activities) employed 5,145 people in 53 establishments in 21 countries.

Recticel contributes to daily comfort with an extensive range of polyurethane foam products for industrial and domestic applications, with high performance thermal insulation solutions for the construction industry and with mattresses and slat bases of top brands. Overall focus in put on industry-leading, customized solutions with a firm basis in sustainable innovation. In this respect, Recticel strives to provide sustainable answers to societal challenges, including climate protection and conservation of resources.

Recticel Engineered Foams offers a wide and unique range of foams and systems, spanning industrial, automotive and comfort applications.

Within Recticel's Insulation segment, high-quality thermal insulation products are marketed under wellknown brands such as Eurowall®, Powerroof®, Powerdeck®, Powerwall® and Xentro®.

In 2021 Recticel achieved consolidated sales of EUR 1,032.8 million.

Recticel (Euronext: REC – Reuters: RECTt.BR – Bloomberg: REC:BB) is listed on Euronext in Brussels.

The press release is available in English and Dutch on the website www.recticel.com

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