Recticel

Quarterly Report • Feb 28, 2019

Inside / Regulated information

Brussels, 28 February 2019 – 07:00 CET

Annual results 2018

• Combined¹ sales of EUR 1,448.3 million (-0.9%) 2
• Combined Adjusted EBITDA¹ of EUR 103.8 million (-1.6%)
• Result of the period (share of the Group): from EUR 23.9 million to EUR 28.8 million (+20.6%)
• Combined net financial debt¹ : EUR 100.2 million (31 Dec 2017: EUR 122.9 million)
• Proposal to pay a gross dividend of EUR 0.24 per share (+9.1%)

Olivier Chapelle (CEO): "2018 has been a challenging year for Recticel, in a context of very soft European bedding and furniture demand since the spring, and of declining automotive demand in Europe and Asia since the summer. Thanks to the all-time high results of our Insulation division, the company has managed to hold the Adjusted EBITDA (-1.6%) in line with the level of last year. The record Net Result and strong cash generation have led to a substantial net debt reduction.

Meanwhile, important new steps have been taken in 2018 to support our long term profit growth potential.

The geographic expansion of our Insulation division with the start-up of the new production plant in Finland, and in January 2019 the increase of our participation to 74% in the Turvac joint venture, producing high performance vacuum insulation panels for niche applications, are key steps for further growth. As previously communicated, we continue to look for complementary external growth opportunities for that division.

Likewise, the further growth of our Technical Foam activities will be supported by the opening of two converting facilities in Morocco and China.

In 2018, we have also further worked on our industrial footprint, and streamlined our operations in The Netherlands, Spain and Germany.

On the divestment side, we have successfully closed the transactions leading to the 2-step divestment of our participation in the Proseat automotive seating joint venture. We continue to actively pursue the divestment of our Automotive Interiors division, a process which has become more challenging over the last 6 months due to the rapidly changing automotive market conditions."

OUTLOOK

In a highly volatile economic and geopolitical environment, we are well positioned to adapt quickly to changing market conditions, and we remain focused on the execution of our plans. Anticipating an adverse market environment in the first half of 2019, we expect the 2019 Adjusted EBITDA³ to be above the level of 2018 on a like-for-like basis.

¹ For the definition of terminology used, see Glossary at the end of this press release.

² All comparisons are made with the comparable period of 2017, unless mentioned otherwise.

³ Following the recent partial divestment from Proseat, the latter will be integrated in the combined figures of 2019 following the 'equity method', and no longer on a proportionate basis.

⁴ Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

1. CONSOLIDATED KEY FIGURES

• Sales: from EUR 1,135.4 million to EUR 1,117.7 million (-1.6%), including a currency impact of -0.9%
• EBITDA: from EUR 82.8 million to EUR 80.5 million (-2.8%)
• EBIT: from EUR 44.9 million to EUR 42.9 million (-4.3%)
• Result of the period (share of the Group): from EUR 23.9 million to EUR 28.8 million (+20.6%)
• Net financial debt¹ : EUR 84.6 million (31 December 2017: EUR 87.1 million; 30 September 2018: EUR 87.0 million)

in million EUR	2017	2018 2	D 2018/2017
	(a)	(b)	(b)/(a)-1
Sales	1 135,4	1 117,7	-1,6%
Gross profit 3	183,5	201,6	9,9%
as % of sales	16,2%	18,0%
Income from joint ventures and associates	2,4	10,2	325,5%
EBITDA	82,8	80,5	-2,8%
as % of sales	7,3%	7,2%
EBIT	44,9	42,9	-4,3%
as % of sales	4,0%	3,8%
Financial result	-4,7	-3,9	-18,1%
Income taxes and deferred taxes	-16,2	-10,2	-37,0%
Result of the period (share of the Group)	23,9	28,8	20,6%
Result of the period (share of the Group) - base (per share, in EUR)	0,44	0,53	19,4%
Gross dividend per share (in EUR)	0,22	0,24	9,1%
Total Equity 4	261,8	265,0	1,2%
Net financial debt 1	87,1	84,6	-2,9%
Gearing ratio (Net financial debt1 /Total Equity)	33,3%	31,9%
Leverage ratio (Net financial debt1 /EBITDA)	1,05	1,05

1 Excluding the drawn amounts under non-recourse factoring programs: EUR 51.3 million per 31 December 2018 (EUR 54.7 million per 31 December 2017, and EUR 69.2 million per 30 September 2018).

• ²The consolidated financial statements of 2018 include the impact of IFRS 15.
• 3 The gross profit 2017 included EUR -30.0 million non-recurring costs from residual additional expenses incurred due to alternative production solutions following the fire incident in Automotive Interiors plant in Most (Czech Republic).

In addition and for consistency reasons a reclassification has been recorded in 2017 between 'Cost of sales' and 'General and administrative expenses' for an amount of EUR 12.4 million.

4 Total equity 31 December 2018: cfr appendix 6

Consolidated sales: from EUR 1,135.4 million to EUR 1,117.7 million (-1.6%)

Consolidated sales decreased by EUR 17.7 million to reach EUR 1,117.7 million, including exchange rate differences (-0.9%). More details per segment can be found in the comments on the combined figures hereafter.

Income from joint ventures and associates: from EUR 2.4 million to EUR 10.2 million 1

The increase of 'Income from joint ventures and associates' is attributed to the Flexible Foams joint venture Eurofoam. The result of Proseat was in line with 2017.

Consolidated EBITDA: from 82.8 million to EUR 80.5 million (-2.8%).

Consolidated EBIT: from 44.9 million to EUR 42.9 million (-4.3%).

Consolidated financial result: from EUR -4.7 million to EUR -3.9 million (-18.1%)

Net interest charges decreased from EUR -6.5 million to EUR -3.3 million as a result of a lower cost of debt and a lower average debt level.

'Other net financial income and expenses' (EUR -0.6 million compared to EUR +1.7 million in 2017) comprise mainly interest capitalisation costs under provisions for pension liabilities (EUR 0.8 million versus EUR -1.0 million in 2017) and exchange rate differences (EUR +0.1 million versus EUR +3.2 million in 2017).

Consolidated income taxes and deferred taxes: from EUR -16.2 million to EUR -10.2 million (-37.0%):

• Current income tax charge: EUR –3.3 million (2017: EUR -6.0 million), mainly induced by tax refunds to be received in Germany;
• Deferred tax charge: EUR –7.0 million (2017: EUR -10.2 million, induced by the corporate tax reform in Belgium which lead to a EUR -4.5 million additional deferred tax charge).

Consolidated result of the period (share of the Group): from EUR +23.9 million to EUR +28.8 million (+20.6%).

¹ By application of IFRS 5, the participation in Proseat in the balance sheet has been reclassified from the item 'Investments in joint ventures and associates' to the item 'Disposal group held for sale'.

2. COMBINED KEY FIGURES

• Sales: from EUR 1,460.8 million to EUR 1,448.3 million (-0.9%), including currency impact of -0.9%
• Adjusted EBITDA: from EUR 105.5 million to EUR 103.8 million (-1.6%)
• EBIT: from EUR 48.1 million to EUR 47.0 million (-2.2%)
• Result of the period (share of the Group): from EUR 23.9 million to EUR 28.8 million (+20.6%)
• Net financial debt¹ : EUR 100.2 million (31 December 2017: EUR 122.9 million; 30 September 2018: EUR 117.9 million)

in million EUR	1H17	2H17	FY17	1H18 2	2H18 2	FY18 2	D 1H	D 2H	D FY
Sales	726,8	734,0	1 460,8	755,9	692,4	1 448,3	4,0%	-5,7%	-0,9%
Gross profit 3	100,2	107,2	207,4	122,4	117,1	239,5	22,1%	9,2%	15,5%
as % of sales	13,8%	14,6%	14,2%	16,2%	16,9%	16,5%
Adjusted EBITDA	50,1	55,4	105,5	56,2	47,6	103,8	12,1%	-14,1%	-1,6%
as % of sales	6,9%	7,5%	7,2%	45,9%	6,9%	7,2%
EBITDA	41,0	53,1	94,1	51,6	41,8	93,4	25,7%	-21,3%	-0,8%
as % of sales	5,6%	7,2%	6,4%	42,1%	6,0%	6,4%
Adjusted EBIT	31,3	35,1	66,5	36,2	27,1	63,3	15,5%	-22,9%	-4,8%
as % of sales	4,3%	4,8%	4,6%	29,6%	3,9%	4,4%
EBIT	22,2	25,9	48,1	31,0	16,1	47,0	39,4%	-37,9%	-2,2%
as % of sales	3,1%	3,5%	3,3%	25,3%	2,3%	3,2%

	30 JUN 17	31 DEC 17		31 DEC 18 30 JUN 18
Total Equity 4 Net financial debt 1 Gearing ratio Leverage ratio	257,1 151,4 58,9%	261,8 122,9 46,9%	261,8 122,9 46,9% 1,3	254,7 138,7 54,5%	265,0 100,2 37,8%	265,0 100,2 37,8% 1,1	-0,9% -8,4%	1,2% -18,5%	1,2% -18,5%

1 Excluding the drawn amounts under non-recourse factoring programs: EUR 51.3 million per 31 December 2018 (EUR 54.7 million per 31 December 2017, and EUR 69.2 million per 30 September 2018).

²The combined financial statements of 2018 include the impact of IFRS 15.

3 The gross profit 2018 includes EUR -0.7 million (2017: EUR -30.0 million) non-recurring costs from residual expenses incurred due to alternative production solutions following the fire incident in the Automotive Interiors plant in Most (Czech Republic).

4 Total equity 31 December 2018: cfr appendix 6

3. COMMENTS ON THE COMBINED GROUP RESULTS

Detailed comments on the sales and results of the different segments are given in chapter 5 on the basis of the combined financial data (joint ventures integrated following the proportionate consolidation method).

Combined Sales: from EUR 1,460.8 million to EUR 1,448.3 million (-0.9%)

The sales growth observed in the first two quarters (1Q2018: +4.6%, 2Q2018: +3.4%) reversed in the third quarter (-4.1%) and further deteriorated in 4Q2018 (-7.1%). 4Q2018 combined sales decreased from EUR 378.0 million to EUR 351.1 million including a currency impact of -0.8%. All segments reported lower 4Q sales.

Sales of the Insulation segment contracted by -2.1% during 4Q2018, as higher volumes compared to 4Q2017 did not fully compensate for the price erosion following the lowered cost for chemical raw materials.

In 4Q2018 the other business segments were affected by the overall weak market conditions in the durable consumer goods and automotive sectors.

Breakdown of the combined sales by segment

in million EUR	1Q2018	2Q2018	3Q2018	4Q2018
Flexible Foams	170,9	159,7	145,5	145,4
Bedding	70,7	54,0	57,3	61,9
Insulation	60,1	72,6	69,2	69,3
Automotive	95,5	100,1	82,0	86,3
Eliminations	( 15,0)	( 12,6)	( 12,7)	( 11,7)
TOTAL COMBINED SALES	382,0	373,9	341,3	351,1
Adjustment for joint ventures by application of IFRS 11	( 90,8)	( 85,3)	( 74,9)	( 79,5)
TOTAL CONSOLIDATED SALES	291,2	288,5	266,4	271,6

2H2017	2H2018	D 2H	in million EUR	FY2017	FY2018	D FY
308,6	290,9	-5,7%	Flexible Foams	626,1	621,5	-0,7%
133,8	119,2	-10,9%	Bedding	272,1	243,8	-10,4%
143,1	138,5	-3,3%	Insulation	272,3	271,2	-0,4%
176,9	168,3	-4,9%	Automotive	350,4	363,9	3,9%
( 28,4)	( 24,5)	-13,8%	Eliminations	( 60,1)	( 52,1)	-13,4%
734,0	692,4	-5,7%	TOTAL COMBINED SALES	1 460,8	1 448,3	-0,9%

3Q2017 3Q2018 in million EUR D 3Q	4Q2017	4Q2018	D 4Q
148,6 145,5 -2,1% Flexible Foams	159,9	145,4	-9,1%
64,9 57,3 -11,7% Bedding	68,9	61,9	-10,2%
72,4 69,2 -4,3% Insulation	70,8	69,3	-2,1%
84,1 82,0 -2,5% Automotive	92,8	86,3	-7,0%
( 14,0) ( 12,7) -9,1% Eliminations	( 14,4)	( 11,7)	-18,4%
356,0 341,3 -4,1% TOTAL COMBINED SALES	378,0	351,1	-7,1%

Full-year 2018 combined sales, excluding a -0.9% impact from exchange rate differences, were stable. There were no changes in the scope of consolidation in 2018.

Combined Adjusted EBITDA: from EUR 105.5 million to EUR 103.8 million (-1.6%)

Adjusted EBITDA margin remained stable at 7.2% (2017: 7.2%).

Breakdown of the combined Adjusted EBITDA by segment

in million EUR	1H17	2H17	FY17	1H18	2H18	FY18	D 1H	D 2H	D FY
Flexible Foams	23,3	17,3	40,6	21,6	19,8	41,5	-7,2%	14,9%	2,2%
Bedding	7,7	7,4	15,1	5,4	1,4	6,8	-29,9%	-80,6%	-54,7%
Insulation	14,2	26,1	40,3	22,8	21,9	44,7	60,5%	-16,2%	10,8%
Automotive	13,5	12,1	25,6	14,7	11,2	25,9	9,0%	-7,4%	1,2%
Corporate	( 8,6)	( 7,5)	( 16,1)	( 8,4)	( 6,8)	( 15,2)	-2,7%	-9,6%	-5,9%
TOTAL COMBINED ADJUSTED EBITDA	50,1	55,4	105,5	56,2	47,6	103,8	12,1%	-14,1%	-1,6%

All segments, except Bedding, reported a higher full-year Adjusted EBITDA.

• Flexible Foams further improved its operational efficiency and mix. In addition, the Eurofoam joint venture significantly improved performance after a difficult 2017.
• In Bedding, the weak demand due to the hot summer and increased competition from ecommerce players, as well as the costs incurred in 2H2018 to launch the new Geltex 2.0 products, explain the drop in profitability. 2018 has been a transition year.
• Insulation improved its profitability thanks to strong operational and commercial execution.
• Whereas Automotive benefited from good volumes in a supportive market environment in 1H2018, sales volumes reduced in 2H2018 due to (i) the new WLTP emission norms in Europe and (ii) the impact of trade tensions on volumes in China.

Combined Adjusted EBIT: from EUR 66.5 million to EUR 63.3 million (-4.8%)

Adjusted EBIT margin slightly decreased from 4.6% to 4.4%.

Breakdown of the combined Adjusted EBIT by segment

in million EUR	1H17	2H17	FY17	1H18	2H18	FY18	D 1H	D 2H	D FY
Flexible Foams	17,122	10,741	27,863	15,426	13,450	28,876	-9,9%	25,2%	3,6%
Bedding	5,4	5,1	10,5	3,2	( 0,8)	2,3	-40,9%	-116,5%	-77,8%
Insulation	11,0	22,7	33,7	19,6	18,5	38,1	79,0%	-18,6%	13,2%
Automotive	7,0	4,5	11,4	6,7	3,1	9,8	-4,2%	-29,9%	-14,3%
Corporate	( 9,1)	( 7,9)	( 17,0)	( 8,7)	( 7,1)	( 15,9)	-4,2%	-9,4%	-6,7%
TOTAL COMBINED ADJUSTED EBIT	31,3	35,1	66,5	36,2	27,1	63,3	15,5%	-22,9%	-4,8%

Adjusted EBIT excludes the following 'adjustments to EBIT' elements for a total net amount of EUR -16.2 million (compared to EUR -18.4 million in 2017).

in million EUR	2017	1H2018	2H2018	2018
Net impact of fire incident in Most Restructuring charges and provisions Other	( 1,1) ( 3,7) ( 6,6)	( 0,8) ( 0,2) ( 3,7)	6,4 ( 9,9) ( 2,3)	5,6 ( 10,1) ( 6,0)
Total impact on EBITDA	( 11,4)	( 4,6)	( 5,8)	( 10,4)
Impairments	( 7,0)	( 0,6)	( 5,2)	( 5,8)
Total impact on EBIT	( 18,4)	( 5,2)	( 11,0)	( 16,2)

In 2018 additional insurance indemnities were received following last year's fire incident in Most (Czech Republic).

Restructuring measures (EUR -10.1 million) in execution of the Group's rationalisation plan, include: (i) further restructuring costs in Flexible Foams for the closure of Catarroja (Spain) and Buren (The Netherlands) plants, (ii) in Bedding mainly the closure of the Hassfurt (Germany) plant, and (iii) some additional rationalisation efforts in Automotive.

The 'other' adjustments to EBIT (EUR -6.0 million) relate to costs and fees for legacy remediation and litigations.

Impairment charges of EUR -5.8 million (2017: EUR -7.0 million) for : (i) goodwill in the United Kingdom (Flexible Foams) (EUR -1.0 million), (ii) idle tangible assets in Flexible Foams (EUR -3.9 million) following the closure of the plant in Catarroja (Spain) and (iii) assets in Automotive Interiors in the Czech Republic (EUR -1.4 million).

Combined EBITDA: from EUR 94.1 million to EUR 93.4 million (-0.8%)

EBITDA margin remained stable at 6.4%.

Breakdown of EBITDA by segment

in million EUR	1H17	2H17	FY17	1H18	2H18	FY18	D 1H	D 2H	D FY
Flexible Foams	18,7	11,9	30,6	18,8	14,1	33,0	0,9%	18,7%	7,8%
Bedding	7,6	6,8	14,3	5,5	( 3,5)	2,0	-27,3%	-152,0%	-86,0%
Insulation	14,2	25,9	40,1	22,8	21,9	44,7	60,6%	-15,6%	11,4%
Automotive	9,1	15,9	25,0	13,2	17,2	30,5	45,1%	8,4%	21,8%
Corporate	( 8,6)	( 7,3)	( 16,0)	( 8,9)	( 7,9)	( 16,8)	3,1%	7,8%	5,3%
TOTAL COMBINED EBITDA	41,0	53,1	94,1	51,6	41,8	93,4	25,7%	-21,3%	-0,8%
Adjustment for joint ventures by application of IFRS 111	( 5,6)	( 5,8)	( 11,3)	( 6,1)	( 6,7)	( 12,9)	10,5%	16,7%	13,6%
TOTAL CONSOLIDATED EBITDA	35,4	47,3	82,8	45,4	35,1	80,5	28,1%	-26,0%	-2,8%

1 By application of IFRS 11 the net result after depreciation, financial and tax charges are integrated in consolidated EBITDA

Combined EBIT: from EUR 48.1 million to EUR 47.0 million (-2.2%)

EBIT margin slightly decreased to 3.2% (2017: 3.3%).

Breakdown of EBIT by segment

in million EUR	1H17	2H17	FY17	1H18	2H18	FY18	D 1H	D 2H	D FY
Flexible Foams	12,5	5,2	17,7	11,6	3,9	15,6	-6,9%	-24,6%	-12,1%
Bedding	5,3	4,3	9,6	3,7	( 5,8)	( 2,1)	-29,3%	-233,7%	-121,6%
Insulation	11,0	22,5	33,5	19,6	18,5	38,1	79,0%	-17,9%	13,9%
Automotive	2,6	1,5	4,1	5,2	7,7	12,9	99,4%	413,5%	213,7%
Corporate	( 9,1)	( 7,7)	( 16,8)	( 9,2)	( 8,3)	( 17,5)	1,2%	7,1%	3,9%
TOTAL COMBINED EBIT	22,2	25,9	48,1	31,0	16,1	47,0	39,4%	-37,9%	-2,2%
Adjustment for joint ventures by application of IFRS 111	( 1,6)	( 1,6)	( 3,2)	( 1,8)	( 2,3)	( 4,1)	12,2%	43,1%	27,3%
TOTAL CONSOLIDATED EBIT	20,6	24,3	44,9	29,1	13,8	42,9	41,5%	-43,1%	-4,3%

1 By application of IFRS 11 the net result after financial and tax charges are integrated in consolidated EBIT

4. FINANCIAL POSITION

in million EUR		31 DEC 2017	30 MAR 2018	30 JUN 2018	30 SEP 2018	31 DEC 2018
TOTAL EQUITY	(a)	261,8	-	254,7	-	265,0
Combined debt figures
Net financial debt on balance sheet + Drawn amounts under factoring programs	(b)	122,9 54,7	141,7 57,5	138,7 62,3	117,9 69,2	100,2 51,3
TOTAL COMBINED NET FINANCIAL DEBT		177,6	199,2	201,0	187,1	151,5
Gearing (combined)	(c)=(b)/(a)	46,9%	-	54,5%	-	37,8%
Consolidated debt figures
Net financial debt on balance sheet + Drawn amounts under factoring programs	(d)	87,1 54,7	106,9 57,5	104,3 62,3	87,0 69,2	84,6 51,3
TOTAL CONSOLIDATED NET FINANCIAL DEBT		141,8	164,4	166,6	156,2	135,9
Gearing (consolidated)	(e)=(d)/(a)	33,3%	-	41,0%	-	31,9%

Net Financial Debt¹ (per 31 December)

¹Excluding the drawn amounts under non-recourse factoring programs.

The Group confirms that all conditions under the financial arrangements with its banks are respected on 31 December 2018.

5. OPERATING SEGMENTS

IFRS 8 requires operating segments to be identified on the basis of the internal reporting structure of the Group that allows a regular performance review by the chief operating decision maker and an adequate allocation of resources to each segment. Therefore, the Group continues to comment on the development of the different segments on the basis of the combined figures, consistent with the managerial reporting and in line with IFRS 8.

5.1. FLEXIBLE FOAMS

in million EUR	1H17	2H17	FY17	1H18	2H18	FY18	D 1H	D 2H	D FY
Sales	317,5	308,6	626,1	330,6	290,9	621,5	4,1%	-5,7%	-0,7%
Adjusted EBITDA	23,3	17,3	40,6	21,6	19,8	41,5	-7,2%	14,9%	2,2%
as % of sales	7,3%	5,6%	6,5%	6,5%	6,8%	6,7%
EBITDA	18,7	11,9	30,6	18,8	14,1	33,0	0,9%	18,7%	7,8%
as % of sales	5,9%	3,9%	4,9%	5,7%	4,9%	5,3%
Adjusted EBIT	17,1	10,7	27,9	15,4	13,5	28,9	-9,9%	25,2%	3,6%
as % of sales	5,4%	3,5%	4,5%	4,7%	4,6%	4,6%
EBIT	12,5	5,2	17,7	11,6	3,9	15,6	-6,9%	-24,6%	-12,1%
as % of sales	3,9%	1,7%	2,8%	3,5%	1,4%	2,5%

Sales

Combined sales decreased from EUR 160.0 million in 4Q2017 to EUR 145.4 million in 4Q2018 (-9.1%), including exchange rate differences (-2.0%). Excluding intersegment sales, combined external sales decreased by -8.4% to EUR 135.5 million.

For the full-year 2018, combined sales slightly decreased from EUR 626.1 million to EUR 621.5 million (-0.7%), including exchange rate differences (-1.3%). Excluding intersegment sales, combined external sales were quasi flat (+0.3%) and amounted to EUR 577.7 million.

The Technical Foams division grew by +2.5%, compensating for a 3.0% contraction in the Comfort division which followed the soft end-demand in the furniture and mattress sector.

The expansion is pursued through new converting sites in Wuxi (China) and Tanger (Morocco) which have been started up.

Profitability

Adjusted EBITDA margin increased from 6.5% to 6.7%.

Profitability margins improved, driven by (i) an improved product-mix, (ii) lower chemical raw material costs, and (iii) the improved performance of the Eurofoam joint venture versus 2017.

Full-year EBITDA increased by EUR 2.4 million, from EUR 30.6 million to EUR 33.0 million. EBITDA includes EUR -8.5 million 'adjustments to EBIT' (2017: EUR -10.0 million) relating mainly to (i) costs related to the announced closure of the plants in Catarroja (Spain) and Buren (The Netherlands), and (ii) incurred costs and fees for legacy remediation and litigations.

Full-year EBIT includes impairments of (i) goodwill in the United Kingdom (EUR -1.0 million) and (ii) idle tangible assets following the closure of the plant in Catarroja (Spain) (EUR -3.9 million).

5.2. BEDDING

in million EUR	1H17	2H17	FY17	1H18	2H18	FY18	D 1H	D 2H	D FY
Sales	138,3	133,8	272,1	124,6	119,2	243,8	-9,9%	-10,9%	-10,4%
Adjusted EBITDA	7,7	7,4	15,1	5,4	1,4	6,8	-29,9%	-80,6%	-54,7%
as % of sales	5,6%	5,5%	5,6%	4,3%	1,2%	2,8%
EBITDA	7,6	6,8	14,3	5,5	( 3,5)	2,0	-27,3%	-152,1%	-86,0%
as % of sales	5,5%	5,0%	5,3%	4,4%	-2,9%	0,8%
Adjusted EBIT	5,4	5,1	10,5	3,2	( 0,8)	2,3	-40,9%	-116,5%	-77,8%
as % of sales	3,9%	3,8%	3,9%	2,6%	-0,7%	1,0%
EBIT	5,3	4,3	9,6	3,7	( 5,8)	( 2,1)	-29,3%		-233,7% -121,6%
as % of sales	3,8%	3,2%	3,5%	3,0%	-4,9%	-0,8%

Sales

The sales trend of the first nine-months (1Q: -5.8%; 2Q: -14.8% and 3Q: -11.7%) slightly improved in the last quarter. 4Q2018 combined sales decreased by -10.2% from EUR 68.9 million in 4Q2017 to EUR 61.9 million, including a -0.5% impact from exchange rate differences.

Excluding intersegment sales, combined external sales decreased by -10.0% to amount EUR 60.5 million in 4Q2018 in a weak market environment. Sales of the subsegment Branded Products were 4.4% lower. The subsegment Non-Branded/Private Label contracted by -18.8%.

Over the full-year 2018, combined sales decreased from EUR 272.1 million to EUR 243.8 million (-10.4%), including a -0.9% impact from exchange rate differences.

Excluding intersegment sales, combined external sales decreased by -10.1% to EUR 237.4 million. Operating in difficult market conditions with low shop traffic, especially in Germany, the decrease was more limited in the subsegment Branded Products (-7.0%), while the subsegment Non-Branded/Private Label decreased by -15.1%.

Profitability

The low sales level led to a reduction of the Adjusted EBITDA margin from 5.6% to 2.8%.

Full-year EBITDA decreased from EUR 14.3 million to EUR 2.0 million, after 'adjustments to EBIT' amounting to EUR -4.4 million (2017: EUR -0.8 million). The ' adjustments to EBIT' include mainly restructuring charges and provisions recognised after the announcement in October 2018 of the intention to close the production site in Hassfurt (Germany).

End 3Q2018, the new Geltex® 2.0 product range has been introduced in the different geographic markets in which the Group is active. This innovative new product offering is well received by our customers, and is expected to further strengthen our product assortment and boost future sales.

5.3. INSULATION

in million EUR	1H17	2H17	FY17	1H18	2H18	FY18	D 1H	D 2H	D FY
Sales	129,2	143,1	272,3	132,7	138,5	271,2	2,7%	-3,3%	-0,4%
Adjusted EBITDA	14,2	26,1	40,3	22,8	21,9	44,7	60,5%	-16,2%	10,8%
as % of sales	11,0%	18,2%	14,8%	17,2%	15,8%	16,5%
EBITDA	14,2	25,9	40,1	22,8	21,9	44,7	60,6%	-15,6%	11,4%
as % of sales	11,0%	18,1%	14,7%	17,2%	15,8%	16,5%
Adjusted EBIT	11,0	22,7	33,7	19,6	18,5	38,1	79,0%	-18,6%	13,2%
as % of sales	8,5%	15,9%	12,4%	14,8%	13,4%	14,1%
EBIT	11,0	22,5	33,5	19,6	18,5	38,1	79,0%	-17,9%	13,9%
as % of sales	8,5%	15,7%	12,3%	14,8%	13,4%	14,1%

Sales

4Q2018 sales decreased by -2.1% from EUR 70.7 million to EUR 69.3 million. Higher volumes compared to 4Q2017 did not fully compensate for some price erosion following the lowered cost for chemical raw materials.

Over full-year 2018, sales before exchange rate differences (-0.3%; i.e. Pound Sterling) were at the same level as in 2017 and amounted to EUR 271.2 million.

Profitability

Adjusted EBITDA margin increased from 14.8% to 16.5%.

Profitability improved due to (i) an improved product-mix and operating efficiency and (ii) lower chemical raw materials costs.

As announced in the press release of 21 June 2018, Recticel has established a new manufacturing unit in Finland, which will enable mid-term growth in Scandinavia, the Baltics and Russia. The project has been completed on schedule and production started in October 2018. It is expected that as from 2020 onwards this new plant will start to have a positive contribution to the results.

The ramp-up costs of this new plant impacted 2H2108 results, as the additional fixed costs were not yet absorbed by additional sales.

Early 2019 Recticel Insulation increased its stake in Turvac d.o.o., the Slovenian producer of Vacuum Insulation Panels (VIP), from 50% to 74% (see below 7.2.)

5.4. AUTOMOTIVE

in million EUR	1H17	2H17	FY17	1H18	2H18	FY18	D 1H	D 2H	D FY
Sales	173,5	176,9	350,4	195,6	168,3	363,9	12,8%	-4,9%	3,9%
Adjusted EBITDA	13,5	12,1	25,6	14,7	11,2	25,9	9,0%	-7,4%	1,2%
as % of sales	7,8%	6,9%	7,3%	7,5%	6,7%	7,1%
EBITDA	9,1	15,9	25,0	13,2	17,2	30,5	45,1%	8,4%	21,8%
as % of sales	5,3%	9,0%	7,1%	6,8%	10,2%	8,4%
Adjusted EBIT	7,0	4,5	11,4	6,7	3,1	9,8	-4,2%	-29,9%	-14,3%
as % of sales	4,0%	2,5%	3,3%	3,4%	1,9%	2,7%
EBIT	2,6	1,5	4,1	5,2	7,7	12,9	99,4%	413,5%	213,7%
as % of sales	1,5%	0,8%	1,2%	2,7%	4,6%	3,5%

Sales

The negative sales trend in the automotive end markets, which started in 3Q2018, further deteriorated in the last quarter. Combined sales decreased by 7.0% to EUR 86.3 million in 4Q2018, with almost no currency impact (1Q: +12.8%; 2Q: +12.7% and 3Q: -2.5%).

Sales of the subsegment Interiors contracted by 4.8%, whereas Seating decreased by 9.5%.

Over the full-year 2018 combined sales increased from EUR 350.4 million to EUR 363.9 million (+3.9%), including a -0.7% impact from exchange rate differences. Both subsegments increased their sales: Interiors with +6.6% to EUR 199.4 million, and Seating with +0.7% to EUR 164.4 million.

During 2H2018, the production volumes at most Automotive OEM's substantially decreased due to (i) the introduction of the new WLTP (Worldwide harmonized Light vehicles Test Procedure) emission test cycle, replacing as of 1st September 2018 the NEDC (New European Driving Cycle), and (ii) the global trade tensions negatively impacting the Chinese and European volumes. It is expected that the volume volatility will decrease with the progressive completion of the vehicle homologations to the new norm.

Profitability

Adjusted EBITDA margin slightly decreased from 7.3% to 7.1%.

Profitability held up well in both divisions.

EBITDA includes 'adjustments to EBIT' for a total net amount of EUR +4.5 million (2017: EUR -0.6 million), which include additional insurance indemnities received in relation with last year's fire incident in Most (Czech Republic).

Full-year EBIT was impacted by the impairment of intangible and tangible assets in Automotive Interiors (EUR -1.4 million).

6. PROPOSED DIVIDEND

The Board of Directors will propose to the Annual General Meeting of 28 May 2019 the payment of a gross dividend of EUR 0.24 per share on 55.2 million shares or a total dividend pay-out of EUR 13.3 million (2017: respectively EUR 0.22/share and EUR 12.1 million in total).

7. POST-BALANCE SHEET DATE EVENTS

7.1. AUTOMOTIVE SEATING – PROSEAT

In its press release of 19 December 2018, Recticel announced that it had entered into final agreements whereby it first acquires the remaining 49% in its Proseat joint venture from its Canadian partner Woodbridge Foam Corporation, and subsequently sells 75% in Proseat to the Japanese public company Sekisui. Both transactions (i.e. Recticel/Woodbridge and Recticel/Sekisui) were subject to customary closing conditions, including regulatory approvals.

On 19 February 2019 Recticel announced the closing of the transactions as a result of which Sekisui Plastics Co., Ltd. acquires 75% in Proseat. Recticel maintains a 25% participation in Proseat with the option to sell this remaining participation within three years if Sekisui exercises its call option during this period, or after three years when Recticel exercises its put option.

The net proceeds of the current transactions amounts to EUR 21 million, which values the joint venture Proseat at an enterprise value of 8.5 times the average (2016-2018) EBITDA.

7.2. INSULATION - TURVAC

On 31 January 2019 Recticel Insulation became majority shareholder (74%) in Turvac d.o.o., the Slovenian producer of Vacuum Insulation Panels (VIP), by acquiring an additional 24% of the shares of Turvac d.o.o. held by the Slovenian joint venture partner Turna d.o.o., representing an additional investment of EUR 0.8 million. Since November 2016 Recticel already held 50% in the joint venture Turvac d.o.o. which operates from Šoštanj (Slovenia). The factory in Šoštanj (Slovenia) has been continually improving its VIP products in order to comply with the quality required for construction purposes. Today these CE certified VIP boards offer an aged lambda value of 0.006W/mK, which is the benchmark in the industry.

Recticel introduced recently Deck-VQ® in the market, an ultra-performant thermal insulation solution with a PIR-VIP combination, for use in flat roofs and terraces.

By holding 74% of the shares of Turvac d.o.o., Recticel secures the know-how and production base for this high performance insulation material. This is another step forward to become the European leader in high performance insulation solutions for buildings.

°°°

APPENDIX

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 available annual report at 31 December 2017, were consistently applied for the figures included in this press release.

The analysis of the risk management is described in the annual report which is/will be available from www.recticel.com.

1. Condensed consolidated income statement

in million EUR	1H17	2H17	FY2017	1H18 1	2H18 1	FY2018 1
Sales	566,0	569,3	1 135,4	579,7	537,9	1 117,7
Distribution costs	( 31,7)	( 30,2)	( 62,0)	( 29,4)	( 30,6)	( 60,0)
Cost of sales 2	( 443,3)	( 446,5)	( 889,9)	( 448,2)	( 407,9)	( 856,1)
Gross profit	91,0	92,5	183,5	102,2	99,5	201,6
General and administrative expenses	( 43,0)	( 35,5)	( 78,4)	( 35,3)	( 35,2)	( 70,6)
Sales and marketing expenses	( 33,9)	( 35,6)	( 69,5)	( 34,4)	( 38,2)	( 72,6)
Research and development expenses	( 7,0)	( 6,7)	( 13,7)	( 6,9)	( 4,1)	( 11,0)
Impairment Goodwill	0,0	0,0	0,0	( 1,0)	0,0	( 1,0)
Impairments	0,0	( 7,0)	( 7,0)	0,4	( 5,2)	( 4,8)
Other operating revenues (1)	25,2 30,8		56,0	5,0	12,9	17,9
Other operating expenses (2) 4	( 13,1) ( 15,2)		( 28,3)	( 8,3)	( 18,4)	( 26,7)
Other operating result (1)+(2) 3	12,0	15,6	27,6	( 3,3)	( 5,5)	( 8,8)
Income from joint ventures & associates 5	1,5	0,9	2,4	7,5	2,7	10,2
Income from investments	0,0	0,0	0,0	0,0	0,0	0,0
EBIT	20,6	24,3	44,9	29,1	13,8	42,9
Interest income	0,4	0,2	0,6	0,3	0,3	0,6
Interest expenses	( 4,0)	( 3,1)	( 7,1)	( 2,3)	( 1,5)	( 3,9)
Other financial income	8,7	3,9	12,6	3,3	0,3	3,6
Other financial expenses	( 7,2)	( 3,6)	( 10,9)	( 5,6)	1,4	( 4,2)
Financial result	( 2,1)	( 2,7)	( 4,7)	( 4,4)	0,5	( 3,9)
Result of the period before taxes	18,5	21,6	40,1	24,8	14,3	39,1
Current income taxes	( 2,1)	( 3,9)	( 6,0)	( 2,4)	( 0,9)	( 3,3)
Deferred taxes	( 2,1)	( 8,1)	( 10,2)	( 3,7)	( 3,3)	( 7,0)
Result of the period after taxes	14,3	9,6	23,9	18,7	10,2	28,8
of which attributable to the owners of the parent	14,3	9,6	23,9	18,7	10,2	28,8
of which attributable to non-controlling interests	0,0	0,0	0,0	0,0	0,0	0,0

1 The consolidated financial statements of 2018 include the impact of IFRS 15.

2 The gross profit 2017 included EUR -30.0 million non-recurring costs from residual additional expenses incurred due to alternative production solutions following the fire incident in Automotive Interiors plant in Most (Czech Republic).

In addition and for consistency reasons a reclassification has been recorded in 2017 between 'Cost of sales' and 'General and administrative expenses' for an amount of EUR 12.4 million.

³ Other operating result 2017 includes EUR -11.6 million other operating expenses incurred following the fire incident in Most (Automotive Interiors – Czech Republic), as well as the insurance payments received.

⁴ Other operating revenues include EUR 6.9 million from insurers compensations related to the fire incident in Most (2017: EUR 40.5 million)

5 Income from joint ventures & associates improved compared to 2017 mainly as a result of received compensations (EUR +0.9 million), a reversal of provisions (EUR +1.5 million) and an improved operational performance at Eurofoam.

2. Earnings per share

in EUR	2017	2018 1	D
Number of shares outstanding (including treasury shares)	54 776 357	55 227 012	0,8%
Weighted average number of shares outstanding (before dilution effect)	54 110 396	54 659 774	1,0%
Weighted average number of shares outstanding (after dilution effect)	57 941 701	55 093 295	-4,9%
EBITDA	1,53	1,47	-3,8%
EBIT	0,83	0,79	-5,2%
Result for the period before taxes	0,74	0,71	-3,6%
Result for the period after taxes	0,44	0,53	19,4%
Result for the period (share of the Group) - basic	0,44	0,53	19,4%
Result for the period (share of the Group) - diluted	0,43	0,52	22,8%
Net book value	4,78	4,80	0,4%

1 The consolidated financial statements of 2018 include the impact of IFRS 15.

3. Condensed consolidated statement of comprehensive income

in million EUR	1H17	2H17	FY2017	1H18 1	2H18 1	FY2018 1
Result for the period after taxes Other comprehensive income	14,3	9,6	23,9	18,7	10,2	28,8
Items that will not subsequently be recycled to profit and loss
Actuarial gains and losses on employee benefits recognized in equity	0,5	( 4,6)	( 4,1)	4,5	0,1	4,5
Deferred taxes on actuarial gains and losses on employee benefits	( 0,3)	( 0,5)	( 0,7)	( 0,6)	0,1	( 0,5)
Currency translation differences	0,1	0,2	0,3	( 0,0)	0,0	( 0,0)
Joint ventures & Associates	0,0	( 0,4)	( 0,4)	0,5	( 0,0)	0,4
Total	0,4	( 5,3)	( 4,9)	4,4	0,1	4,5
Items that subsequently may be recycled to profit and loss
Hedging reserves	1,1	1,1	2,2	0,6	0,1	0,7
Currency translation differences	0,0	( 6,5)	( 6,5)	0,0	( 1,8)	( 1,8)
Foreign currency translation difference recycled in income statement	( 2,9)	2,9	0,0	0,5	( 0,5)	0,0
Deferred taxes on interest hedging reserves	( 0,4)	0,8	0,4	( 0,1)	( 0,0)	( 0,1)
Joint ventures & Associates	0,0	1,1	1,1	( 1,4)	0,6	( 0,8)
Total	( 2,1)	( 0,6)	( 2,7)	( 0,4)	( 1,7)	( 2,1)
Other comprehensive income net of tax	( 1,7)	( 5,9)	( 7,6)	4,0	( 1,6)	2,4
Total comprehensive income for the period	12,6	3,7	16,3	22,6	8,6	31,2
Total comprehensive income for the period	12,6	3,7	16,3	22,6	8,6	31,2
of which attributable to the owners of the parent	12,6	3,7	16,3	22,6	8,6	31,2
of which attributable to non-controlling interests	0,0	0,0	0,0	0,0	0,0	0,0

1 The consolidated financial statements of 2018 include the impact of IFRS 15.

4. Condensed consolidated balance sheet

in million EUR	31 DEC 17	31 DEC 18 1	D
Intangible assets	12,3	12,0	-2,3%
Goodwill	24,2	23,4	-3,4%
Property, plant & equipment	226,8	232,5	2,5%
Investment property	3,3	3,3	-1,3%
Interest in joint ventures & associates	76,2	68,6	-10,0%
Other financial assets	0,7	0,8	18,4%
Non-current receivables	14,8	15,7	5,7%
Non-current contract assets	0,0	15,3	-
Deferred tax	26,2	20,5	-22,0%
Non-current assets	384,6	392,1	2,0%
Inventories and contracts in progress	99,4	103,8	4,4%
Trade receivables	110,9	107,7	-2,9%
Current contract assets	0,0	13,8	-
Other receivables	73,4	55,2	-24,7%
Income tax receivables	1,4	5,6	313,9%
Other investments	0,1	0,1	12,2%
Cash and cash equivalents	57,8	37,7	-34,8%
Disposal group held for sale	2,6	19,2	647,1%
Current assets	345,6	343,1	-0,7%
TOTAL ASSETS	730,2	735,2	0,7%

in million EUR	31 DEC 17	31 DEC 18 1	D
Equity (share of the Group)	261,8	265,0	1,2%
Non-controlling interests	0,0	0,0	-
Total equity	261,8	265,0	1,2%
Pensions and other provisions	68,6	61,8	-9,8%
Deferred tax	9,1	9,7	5,9%
Interest-bearing borrowings	96,1	34,7	-63,9%
Other amounts payable	0,2	0,2	-12,2%
Non-current contract liabilities	0,0	24,1	-
Non-current liabilities	174,0	130,5	-25,0%
Pensions and other provisions	5,1	7,8	52,7%
Interest-bearing borrowings	49,0	88,2	80,0%
Trade payables	126,6	90,8	-28,3%
Current contract liabilities	0,0	45,0	-
Income tax payables	2,4	3,1	27,0%
Other amounts payable	111,3	105,0	-5,7%
Current liabilities	294,4	339,8	15,4%
TOTAL LIABILITIES	730,2	735,2	0,7%

1 The consolidated financial statements of 2018 include the impact of IFRS 15.

in million EUR	31 DEC 17	31 DEC 18	D
Net financial debt	87,1	84,6	-2,9%
Net financial debt / Equity (non-controlling interests included)	33%	32%
Equity (non-controlling interests included) / Total assets	35%	36%

5. Condensed consolidated statement of cash flow

in million EUR	2017	2018
EBIT	44,9	42,9
Depreciation, amortisation and impairment losses on assets	37,9	37,5
Write-off (write-back) of assets	6,5	0,5
Changes in provisions	( 0,5)	( 0,0)
Income from associates and joint ventures	( 2,4)	( 10,2)
Other non-cash elements	( 0,9)	( 0,7)
Gross operating cash flow	85,6	70,1
Changes in working capital	( 4,2)	( 6,7)
Gross operating cash flow after changes in working capital	81,3	63,4
Income taxes paid	( 5,7)	( 6,0)
Net cash flow from operating activities (a)	75,6	57,4
Net cash flow from investment activities (b)	( 40,8)	( 42,3)
Paid interest charges (1)	( 7,1)	( 4,9)
Paid dividends (2)	( 9,7)	( 12,0)
Increase (Decrease) of capital (3)	3,7	3,1
Increase (Decrease) of financial liabilities (4)	( 2,3)	( 21,9)
Other (5)	0,0	0,0
Net cash flow from financing activities (c)= (1)+(2)+(3)+(4)+(5)	( 15,4)	( 35,7)
Effect of exchange rate changes (d)	1,3	0,5
Effect of change in scope of consolidation (e)	0,0	0,0
Changes in cash and cash equivalents (a)+(b)+(c)+(d)+(e)	20,7	( 20,1)
FREE CASH FLOW (a)+(b)+(1)	27,7	10,2

6. Condensed consolidated statement of changes in shareholders' equity

in million EUR	Capital	Share premium	Treasury shares	Other reserves Retained	earnings	Translation differences reserves	Hedging reserves	Total shareholders' equity	Non controlling interests	Total equity, non controlling interests included
At the end of the period (31 December 2017)	136,9	128,0	( 1,5)	( 22,6)	40,9	( 16,4)	( 3,5)	261,8	0,0	261,8
Changes in accounting policies (IFRS 15)	0,0	0,0	0,0	0,0	( 19,5)	0,0	0,0	( 19,5)	0,0	( 19,5)
Changes in accounting policies (IFRS 9)	0,0	0,0	0,0	0,0	0,0	0,0	0,0	0,0	0,0	0,0
01-01-2018 Adjusted	0,0	0,0	0,0	0,0	( 19,5)	0,0	0,0	( 19,5)	0,0	( 19,5)
Dividends Stock options (IFRS 2)	0,0 0,0	0,0 0,0	0,0 0,0	0,0 0,4	( 12,0) 0,0	0,0 0,0	0,0 0,0	0,0 ( 12,0) 0,4	0,0 0,0	0,0 ( 12,0) 0,4
Capital movements	1,1	2,0	0,0	( 0,5)	0,5	0,0	0,0	3,1	0,0	3,1
Shareholders' movements	1,1	2,0	0,0	( 0,1)	( 11,5)	0,0	0,0	( 8,6)	0,0	( 8,6)
Profit or loss of the period	0,0	0,0	0,0	0,0	28,8	0,0	0,0	28,8	0,0	28,8
Components of other comprehensive income that will not be recycled to profit or loss, net of tax Total other comprehensive income that will not be recycled to profit or loss, net of tax (a)	0,0	0,0	0,0	4,5	0,0	0,0	0,0	4,5	0,0	4,5
Components of other comprehensive income that will be recycled to profit or loss, net of tax
Total other comprehensive income that will be recycled to profit or loss, net of tax (b)	0,0	0,0	0,0	( 0,9)	0,9	( 2,6)	0,5	( 2,1)	0,0	( 2,1)
Comprehensive income'	0,0	0,0	0,0	3,5	29,7	( 2,6)	0,5	31,2	0,0	31,2
At the end of the period (31 December 2018)	138,1	129,9	( 1,5)	( 19,2)	39,6	( 19,0)	( 3,0)	265,0	0,0	265,0

7. Reconciliation with alternative performance measures

in million EUR	2017	2018
Consolidated EBIT	44,9	42,9
Depreciation intangible assets	2,8	2,6
Depreciation tangible assets	26,6	27,4
Impairments	7,0	5,8
Amortisation other operational assets 1	1,6	1,7
Consolidated EBITDA	82,8	80,5

in million EUR	2017	2018
Combined EBITDA	94,1	93,4
Pro rata share in EBITDA from joint ventures by application of IFRS 11	( 11,3)	( 12,9)
Consolidated EBITDA	82,8	80,5

in million EUR	2017	2018
Combined EBIT	48,1	47,0
Pro rata share in EBIT from joint ventures by application of IFRS 11	( 3,2)	( 4,1)
Consolidated EBIT	44,9	42,9

2017	2018
94,1	93,4
1,1	( 5,6)
3,7	10,1
6,6	6,0
105,5	103,8

in million EUR	2017	2018
Combined EBIT	48,1	47,0
Net impact of fire incident in Most	1,1	( 5,6)
Restructuring charges and provisions	3,7	10,1
Other	6,6	6,0
Impairments	7,0	5,8
Adjusted EBIT (combined)	66,5	63,3

in million EUR	2017	2018
Non-current interest-bearing borrowings	96,1	34,7
Current interest-bearing borrowings	49,0	88,2
Cash	( 57,8)	( 37,7)
Other financial assets 2	( 0,2)	( 0,6)
Consolidated net financial debt	87,1	84,6
Pro rate share of net financial debt held by joint ventures by application of IFRS 11	35,8	15,6
Combined net financial debt	122,9	100,2

1 Cost to obtain a contract/Upfront fees (Automotive) and showroom (Bedding)

2 Hedging instruments and interest advances

8. Auditor's report

To the Board of Directors

The statutory auditor, Deloitte Bedrijfsrevisoren CVBA, represented by Kurt Dehoorne, has confirmed that the audit, which is substantially complete, has not to date revealed any material misstatement in the draft condensed consolidated income statement, condensed consolidated statement of comprehensive income, condensed consolidated balance sheet and condensed consolidated statement of cash flow, and that the accounting data reported in the press release is consistent, in all material respects, with the draft condensed consolidated income statement, condensed consolidated statement of comprehensive income, condensed consolidated balance sheet and condensed consolidated statement of cash flow from which it has been derived.

Ghent, 27 February 2019

The Statutory Auditor

______________________________________ DELOITTE Bedrijfsrevisoren CVBA

Represented by Kurt Dehoorne

Glossary

IFRS measures

Consolidated (figures) : Figures following the application of IFRS 11, whereby Recticel's joint ventures 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 EBIT (previously labelled REBIT)	: = EBIT before adjustments to EBIT.
Adjusted EBITDA (previously REBITDA)	: = EBITDA before adjustments to EBIT
Adjustments to EBIT	(previously non-recurring items):adjustments to EBIT 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, gains or losses on discontinued operations, revenues or charges due to important (inter)national legal issues.
Combined (figures)	: Figures including Recticel's pro rata share in the joint ventures, after elimination of intercompany transactions, in accordance with the proportional consolidation method.
EBITDA	: = EBIT + depreciation, amortisation and impairment on assets.
Gearing	: Net financial debt / Total equity
Leverage	: Net financial debt / EBITDA
Net free cash-flow	: Net free cash flow: is the sum of the (i) Net cash flow from operating activities, (ii) the Net cash flow from investing activities and (iii) the Interest paid on financial liabilities; as shown in the consolidated cash flow statement.
Net financial debt	: Interest bearing financial debts at more than one year + interest bearing financial debts within maximum one year – 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
Total net financial debt	: = Net financial debt + the drawn amounts under off-balance sheet non-recourse factoring/forfeiting 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.

Annual results 2018	28.02.2019 (at 07:00 AM CET)
First quarter 2019 trading update	29.04.2019 (at 07:00 AM CET)
Annual General Meeting	28.05.2019 (at 10:00 AM CET)
First half-year 2019 results	30.08.2019 (at 07:00 AM CET)
Third quarter 2019 trading update	30.10.2019 (at 07:00 AM CET)

For additional information

RECTICEL - Olympiadenlaan 2, B-1140 Brussels (Evere)

PRESS INVESTOR RELATIONS

chapelle.olivier@recticel.com desmedt.michel@recticel.com

Mr Olivier Chapelle Mr Michel De Smedt Tel: +32 2 775 18 01 Mobile: +32 479 91 11 38

Recticel in a nutshell

Recticel is a Belgian Group with a strong European dimension, but it also operates in the rest of the world. Recticel employs 8,472 people in 97 establishments in 29 countries.

Recticel contributes to daily comfort with foam filling for seats, mattresses and slat bases of top brands, insulation material, interior comfort for cars and an extensive range of other industrial and domestic applications.

Recticel is the Group behind well-known bedding brands (Beka®, Lattoflex®, Literie Bultex®, Schlaraffia®, Sembella®, Swissflex®, Superba®, etc.) and GELTEX® inside. Within the Insulation subsegment high-quality thermal insulation products are marketed under the well-known brands Eurowall®, Powerroof®, Powerdeck®, Powerwall® and Xentro®. Technological progress and innovation have led to breakthrough at the biggest names in the Automotive industry thanks to Colo-Fast®, Colo-Sense® and Colo-Sense Lite®.

In 2018 Recticel achieved combined sales of EUR 1.45 billion (IFRS 11 consolidated sales: EUR 1.1 billion).

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

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