Recticel

Earnings Release • Feb 26, 2016

Brussels, 26 February 2016 – 07:00 CET

ANNUAL RESULTS 2015

RECTICEL MOVES FORWARD IN A VOLATILE ENVIRONMENT

• Combined^b sales growth of +5.0%^a
• Combined REBITDA increased by +26.4% a
• Combined net financial debt reduced from EUR 194.5 million to EUR 123.0 million
• Refinancing of EUR 175 million credit facility signed with maturity in February 2021
• Proposal to pay a gross dividend of EUR 0.14 per share

Olivier Chapelle (CEO): "We are pleased with the sales growth and the REBITDA increase that we have generated in all our business segments amid a very turbulent international business environment, which was characterised by a supportive currency and commodity price evolution. In 2015, while continuously improving our product ranges and introducing innovations to generate more value for our customers, we have also relentlessly worked at improving our cost base. Furthermore, the combination of the capital increase of May 2015 and the credit facility refinancing of February 2016 provides Recticel with a robust financial platform to further develop the company."

OUTLOOK

For the full year 2016, the Group expects continued growth of its combined sales turnover and REBITDA, thanks to a combination of volume growth, improved mix and efficiency gains.

a All comparisons are made with the comparable period of 2014, restated for the divestment of Kingspan Tarec Industrial Insulation (KTII) (February 2015), unless mentioned otherwise. The figures mentioned are audited.

b For the definition of other used terminology, see glossary at the end of this press release.

1. KEY FIGURES

1.1. CONSOLIDATED DATA

• Sales: from EUR 983.4 million to EUR 1,033.8 million (+5.1%) including currency effects of +2.8%
• EBITDA: from EUR 36.8 million to EUR 52.9 million (+43.8%)
• EBIT: from EUR 8.8 million to EUR 23.2 million
• Result of the period (share of the Group): from EUR -9.7 million to EUR 4.5 million
• Net financial debt² : EUR 98.5 million (31 December 2014: EUR 168.3 million; 30 September 2015: EUR 95.5 million)

2014 (restated) 1	2015	D 2015/2014
(a)	(b)	(b)/(a)-1
983,4	1 033,8	5,1%
172,2	194,4	12,9%
17,5%	18,8%
36,8	52,9	43,8%
3,7%	5,1%
8,8	23,2	164,5%
0,9%	2,2%
( 9,7)	4,5	n.a.
( 0,34)	0,10	n.a.
0,20	0,14	-30,0%
166,2	249,0	49,8%
168,3	98,5	-41,5%
101,3%	39,6%

1 Excluding the joint venture Kingspan Tarec Industrial Insulation (KTII), which has been sold in February 2015. Previously KTII was consolidated following the equity method.

2 Excluding the drawn amounts under non-recourse factoring/forfeiting programs: EUR 53.7 million per 31 December 2015 and EUR 55.1 million per 31 December 2014, and EUR 65.0 million per 30 September 2015.

1.2. COMBINED DATA

• Sales: from EUR 1,264.7 million¹ to EUR 1,328.4 million (+5.0%), including currency effects of +2.3%
• REBITDA: from EUR 64.8 million to EUR 81.9 million (+26.4%)
• EBITDA: from EUR 48.2 million to EUR 67.8 million (+40.6%)
• REBIT: from EUR 30.0 million to EUR 44.9 million (+50.0%)
• EBIT: from EUR 12.7 million to EUR 29.8 million
• Net financial debt² : EUR 123.0 million (31 December 2014: EUR 194.5 million; 30 September 2015: EUR 123.1 million)

in million EUR	1H14	2H14	FY14	1H15	2H15	FY15	D 1H	D 2H	D FY
		(restated)1
Sales	637,8	626,9	1 264,7	667,5	661,0	1 328,4	4,7%	5,4%	5,0%
Gross profit	106,3	98,6	204,9	119,8	113,1	232,9	12,7%	14,8%	13,7%
as % of sales	16,7%	15,7%	16,2%	17,9%	17,1%	17,5%
REBITDA	37,0	27,8	64,8	42,9	39,0	81,9	15,7%	40,5%	26,4%
as % of sales	5,8%	4,4%	5,1%	6,4%	5,9%	6,2%
EBITDA	24,4	23,8	48,2	38,8	29,0	67,8	59,0%	21,7%	40,6%
as % of sales	3,8%	3,8%	3,8%	5,8%	4,4%	5,1%
REBIT	19,2	10,8	30,0	24,8	20,1	44,9	29,1%	87,2%	50,0%
as % of sales	3,0%	1,7%	2,4%	3,7%	3,0%	3,4%
EBIT	6,5	6,2	12,7	20,0	9,8	29,8	209,0%	58,1%	135,0%
as % of sales	1,0%	1,0%	1,0%	3,0%	1,5%	2,2%
Total Equity	166,0	166,2	166,2	249,5	249,0	249,0	50,2%	49,8%	49,8%
Net financial debt ²	191,8	194,5	194,5	137,5	123,0	123,0	-28,3%	-36,8%	-36,8%
Gearing ratio	115,5%	117,1%	117,1%	55,1%	49,4%	49,4%

1 Excluding the contribution of the joint venture Kingspan Tarec Industrial Insulation (KTII), which was sold in February 2015. 1H14 and 2H14 figures have also been restated for IFRIC 21.

2 Excluding the drawn amounts under non-recourse factoring/forfeiting programs: EUR 60.4 million per 31 December 2015 and EUR 62.7 million per 31 December 2014, and EUR 71.1 million per 30 September 2015

2. COMMENTS ON THE GROUP RESULTS

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

Change in the scope of consolidation: divestment in February 2015 of the 50% participation in the joint venture Kingspan Tarec Industrial Insulation (Belgium and UK; Insulation). The FY2014 figures have been restated to reflect this change.

Combined Sales¹ : from EUR 1,264.7 million to EUR 1,328.4 million (+5.0%).

Combined sales increased by +5.0%, including a positive +2.3% currency effect.

On an annual basis, while sales grew in all segments, the majority of the progress came from (i) successful growth initiatives and commercial performance in Insulation and Bedding, and (ii) from a very strong global Automotive market which, combined with the start-up of many new programs, generated accelerating growth in all automotive sub-segments.

Breakdown of the combined sales by segment

in million EUR	1Q2015	2Q2015	3Q2015	4Q2015
Flexible Foams	158,5	147,4	145,0	151,5
Bedding	79,1	64,4	73,1	77,9
Insulation	54,0	59,3	60,3	55,8
Automotive	72,7	70,1	65,1	72,4
Eliminations	( 20,9)	( 17,1)	( 20,1)	( 20,0)
TOTAL COMBINED SALES	343,4	324,1	323,4	337,6
Adjustment for joint ventures by application of IFRS 11	( 75,0)	( 73,4)	( 70,5)	( 75,8)
TOTAL CONSOLIDATED SALES	268,4	250,7	252,8	261,9

2H/2014 1	2H/2015	D 2H	in million EUR	FY2014 1	FY2015	D FY
292,9	296,4	1,2%	Flexible Foams	593,0	602,3	1,6%
146,2	151,1	3,3%	Bedding	281,6	294,5	4,6%
108,3	116,1	7,2%	Insulation	211,6	229,4	8,4%
123,5	137,4	11,3%	Automotive	264,0	280,3	6,2%
( 43,9)	( 40,1)	-8,6%	Eliminations	( 85,5)	( 78,1)	-8,6%
627,0	661,0	5,4%	TOTAL COMBINED SALES	1 264,7	1 328,4	5,0%

3Q/2014 1	3Q/2015	D 3Q	in million EUR	4Q/2014 1	4Q/2015	D 4Q
144,1	145,0	0,6%	Flexible Foams	148,8	151,5	1,8%
67,5	73,1	8,4%	Bedding	78,8	77,9	-1,0%
55,7	60,3	8,3%	Insulation	52,6	55,8	6,2%
59,9	65,1	8,7%	Automotive	63,6	72,4	13,8%
( 21,9)	( 20,1)	-8,0%	Eliminations	( 22,0)	( 20,0)	-9,3%
305,3	323,4	5,9%	TOTAL COMBINED SALES	321,7	337,6	5,0%

1 Excluding the contribution of sales by the joint venture Kingspan Tarec Industrial Insulation, which was sold in February 2015 (FY2014: EUR 15.5 million; 2H2014: EUR 8.0 million; 3Q2014: EUR 4.2 million and 4Q2014: EUR 3.8 million)

Combined sales¹ increased from EUR 321.7 million in 4Q2014 to EUR 337.6 million in 4Q2015 (+5.0%, including positive currency effect of +1.8%).

At comparable scope¹ , the Insulation segment grew by +6.2% in 4Q2015, resulting in an annual sales increase of +8.4%. New product introductions and commercial performance, in combination with favourable weather, are the main drivers of this growth.

The Bedding segment, which contracted slightly in 4Q2015 (-1.0%) grew by +4.6% over the full year.

The Flexible Foams segment grew by +1.8% in 4Q2015 and by +1.6% over the full year. The evolution was supported by growth in Central Europe as well as in the non-European markets where the Group is developing its activities.

Sales of the Automotive segment strongly increased in 4Q2015 (+13.8%), and by +6.2% over the full year, benefitting from strong market dynamics, and new program start-ups.

Combined REBITDA: from EUR 64.8 million¹ to EUR 81.9 million (+26.4%)

In line with 1H2015, recurrent profitability in 2H2015 increased due to (i) higher sales, (ii) improved cost performance reflecting the impact from past restructuring efforts and cost control initiatives, (iii) favourable product-mix (i.e. Flexible Foams and Bedding) and (iv) lower raw material prices. All segments contributed to the profitability improvement.

in million EUR	1H14	2H14	FY14	1H15	2H15	FY15	D 1H	D 2H	D FY
		(restated) 1
Flexible Foams	16,6	11,1	27,7	20,4	17,6	38,0	23,1%	58,7%	37,4%
Bedding	3,3	10,2	13,5	6,0	8,1	14,1	79,9%	-20,6%	4,1%
Insulation	12,4	13,6	26,0	16,1	16,2	32,3	29,9%	19,6%	24,5%
Automotive	12,8	2,1	14,9	9,5	5,9	15,4	-25,3%	178,6%	3,8%
Corporate	( 8,0)	( 9,2)	( 17,2)	( 9,2)	( 8,8)	( 18,0)	14,1%	-4,3%	4,3%
TOTAL COMBINED REBITDA	37,0	27,8	64,8	42,9	39,0	81,9	15,7%	40,5%	26,4%

Breakdown of the combined REBITDA by segment

1 Excluding the EUR 1.1 million (1H2014: EUR 0.6 million; 2H2014: EUR 0.5 million) REBITDA contribution by the joint venture Kingspan Tarec Industrial Insulation, which was sold in February 2015. 1H14 and 2H14 figures have also been restated for IFRIC 21.

• Flexible Foams improved its industrial performance throughout the year and its product/market mix, while being supported by receding raw material cost.
• Bedding benefited in 2H2015 from an improved product-mix, including further expansion of its GELTEX® inside product line, supported by continued advertising efforts.
• Insulation profitability increased, supported by higher volumes and cost reduction initiatives, despite price erosion in some of its most competitive markets driven by lower raw material cost.
• The Automotive segment's profitability increased due to higher volumes and the impact of lower raw material prices (mainly in Seating) and despite the absorption of planned startup costs for the numerous new programs in Interiors.

Combined REBIT: from EUR 30.0 million¹ to EUR 44.9 million (+50.0%)

in million EUR	1H14	2H14	FY14	1H15	2H15	FY15	D 1H	D 2H	D FY
		(restated) 1
Flexible Foams	11,0	5,5	16,5	14,6	11,5	26,1	32,9%	109,9%	58,7%
Bedding	( 0,0)	7,2	7,2	2,8	4,9	7,7	n.m.	-31,5%	8,2%
Insulation	9,7	10,7	20,4	13,3	13,1	26,4	37,5%	21,6%	29,2%
Automotive	7,2	( 3,1)	4,2	3,8	( 0,1)	3,6	-48,2%	n.r.	-12,8%
Corporate	( 8,7)	( 9,6)	( 18,2)	( 9,7)	( 9,3)	( 18,9)	11,5%	-3,3%	3,8%
TOTAL COMBINED REBIT	19,2	10,8	30,0	24,8	20,1	44,9	29,1%	87,2%	50,0%

Breakdown of the combined REBIT by segment

1 Excluding the EUR 0.7 million (1H2014: EUR 0.4 million; 2H2014: EUR 0.3 million) REBIT contribution by the joint venture Kingspan Tarec Industrial Insulation, which was sold in February 2015. 1H14 and 2H14 figures have also been restated for IFRIC 21.

Non-recurring elements: (on combined basis, including pro rata share in joint ventures)

EBIT includes non-recurring elements for a total net amount of EUR -15.1 million (compared to EUR -17.3 million in 2014).

in million EUR	2014	1H2015	2H2015	2015
Provision for settlement German Federal Cartel Office investigation	( 8,2)	0,0	0,0	0,0
Restructuring charges and provisions	( 7,6)	( 5,3)	( 7,4)	( 12,7)
Capital gain on divestment	0,0	1,6	0,0	1,6
Other	( 0,8)	( 0,4)	( 2,6)	( 3,0)
Total impact on EBITDA	( 16,6)	( 4,1)	( 10,0)	( 14,1)
Impairments	( 0,7)	( 0,7)	( 0,3)	( 1,0)
Total impact on EBIT	( 17,3)	( 4,8)	( 10,3)	( 15,1)

Additional restructuring measures were implemented in execution of the Group's rationalisation plan. The main restructurings relate to the announced closure of the Automotive-Seating plant in Rüsselsheim (Germany) and to additional actions in Flexible Foams (Spain, Sweden and the Netherlands) and in Bedding (Germany and The Netherlands).

The divestment of the 50% participation in Kingspan Tarec Industrial Insulation yielded a capital gain of EUR 1.6 million.

Impairment charges (EUR -1.0 million) (2014: EUR -0.7 million) relate to assets in The Netherlands (Flexible Foams).

Combined EBITDA: from EUR 48.2 million¹ to EUR 67.8 million (+40.6%)

in million EUR	1H14	2H14	FY14	1H15	2H15	FY15	D 1H	D 2H	D FY
		(restated) 1
Flexible Foams	15,5	9,6	25,1	19,9	14,2	34,0	28,3%	47,6%	35,7%
Bedding	( 6,8)	9,7	2,9	5,1	4,4	9,5	n.m.	-54,7%	223,2%
Insulation	12,4	13,6	26,0	17,7	15,7	33,4	42,6%	16,1%	28,8%
Automotive	12,4	0,1	12,5	5,7	4,3	9,9	-54,3%	n.m.	-20,5%
Corporate	( 9,1)	( 9,2)	( 18,2)	( 9,5)	( 9,6)	( 19,1)	4,7%	4,6%	4,6%
TOTAL COMBINED EBITDA	24,4	23,8	48,2	38,8	29,0	67,8	59,0%	21,7%	40,6%
Adjustment for joint ventures by application of IFRS 112	( 5,8)	( 5,6)	( 11,4)	( 7,1)	( 7,8)	( 14,9)	22,2%	38,5%	30,3%
TOTAL CONSOLIDATED EBITDA	18,6	18,2	36,8	31,7	21,2	52,9	70,4%	16,5%	43,8%

Breakdown of EBITDA by segment

1 Excluding the EUR 1.1 million (1H2014: EUR 0.6 million; 2H2014: EUR 0.5 million) EBITDA contribution by the joint venture Kingspan Tarec Industrial Insulation, which was sold in February 2015. 1H14 and 2H14 figures have also been restated for IFRIC 21.

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

Combined EBIT: from EUR 12.7 million¹ to EUR 29.8 million

Breakdown of EBIT by segment

in million EUR	1H14	2H14	FY14	1H15	2H15	FY15	D 1H	D 2H	D FY
		(restated) 1
Flexible Foams	9,8	3,4	13,2	13,3	7,8	21,1	35,2%	128,8%	59,4%
Bedding	( 10,2)	6,7	( 3,5)	1,9	1,2	3,2	n.m.	-81,5%	n.m.
Insulation	9,7	10,7	20,4	14,9	12,6	27,5	53,8%	17,2%	34,6%
Automotive	6,9	( 5,1)	1,8	( 0,1)	( 1,8)	( 1,9)	n.m.	-65,6%	n.m.
Corporate	( 9,7)	( 9,6)	( 19,2)	( 10,0)	( 10,1)	( 20,0)	3,0%	5,2%	4,1%
TOTAL COMBINED EBIT	6,5	6,2	12,7	20,0	9,8	29,8	209,0%	58,1%	135,0%
Adjustment for joint ventures by application of IFRS 112	( 2,1)	( 1,8)	( 3,9)	( 3,0)	( 3,5)	( 6,6)	42,4%	99,2%	68,4%
TOTAL CONSOLIDATED EBIT	4,3	4,4	8,8	16,9	6,3	23,2	290,3%	41,7%	164,5%

1 Excluding the EUR 0.7 million (1H2014: EUR 0.4 million; 2H2014: EUR 0.3 million) EBIT contribution by the joint venture Kingspan Tarec Industrial Insulation, which was sold in February 2015. 1H14 and 2H14 figures have also been restated for IFRIC 21.

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

Consolidated financial result: from EUR -12.8 million to EUR -12.5 million

Net interest charges decreased from EUR -10.0 million to EUR -9.6 million following the rights' issue; resulting in a lower net interest-bearing debt, including the usage of 'offbalance' factoring/forfeiting programs.

'Other net financial income and expenses' (EUR -3.0 million, compared to EUR -2.8 million in 2014) comprise mainly interest capitalisation costs under provisions for pension liabilities (EUR –0.8 million versus EUR -1.5 million in 2014) and exchange rate differences (EUR -2.0 million versus EUR -0.4 million in 2014).

Consolidated income taxes and deferred taxes: from EUR -5.7 million to EUR -6.2 million:

• Current income tax charge: EUR -2.4 million (2014: EUR -2.7 million);
• Deferred tax charge: EUR -3.8 million (2014: EUR -3.0 million).

Consolidated result of the period (share of the Group): from EUR -9.7 million to EUR +4.5 million.

3. FINANCIAL SITUATION

On 31 December 2015, net consolidated financial debt amounted to EUR 98.5 million (31 December 2014: EUR 168.3 million; 30 September 2015: EUR 95.5 million), excluding the amounts drawn under off-balance non-recourse factoring/forfeiting programs of EUR 53.7 million (31 December 2014: EUR 55.1 million; 30 September 2015: EUR 65.0 million).

On 31 December 2015, combined net financial debt amounted to EUR 123.0 million (31 December 2014: EUR 194.5 million; 30 September 2015: EUR 123.1 million), excluding the amounts drawn under the off-balance non-recourse factoring/forfeiting programs of EUR 60.4 million (31 December 2014: EUR 62.7 million; 30 September 2015: EUR 71.1 million).

The decrease of net financial debt follows the repayment of debt with the net proceeds of the rights' issue of May 2015. (See press release of 11 May 2015)

On 31 December 2015 total equity amounted to EUR 249.0 million compared to EUR 166.2 million on 31 December 2014. The rights' issue of May 2015 contributed EUR 72.9 million net to the strengthening of the company's equity position.

On a consolidated basis, 'net debt to equity' ratio improved to 39.6% (2014: 101.3%).

On a combined basis, 'net debt to equity' improved to 49.4%, compared to 117.1% at the end of 2014.

The Group confirms that all conditions under the financial arrangements with its banks are respected on 31 December 2015, and that in the meantime it refinanced its outstanding club deal credit facility (see chapter 6. below).

4. PROPOSED DIVIDEND

The Board of Directors will propose to the Annual General Meeting of 31 May 2016 the payment of a gross dividend of EUR 0.14 per share on 53.7 million shares or a total dividend payout of EUR 7.5 million (2014: respectively EUR 0.20/share and EUR 5.9 million in total).

5. MARKET SEGMENTS

The Group has adopted IFRS 8 since 1 January 2009. 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	1H14	2H14	FY14	1H15	2H15	FY15	D 1H	D 2H	D FY
Sales	300,1	292,9	593,0	305,9	296,4	602,3	1,9%	1,2%	1,6%
REBITDA	17,3	10,4	27,7	20,4	17,6	38,0	18,2%	69,1%	37,4%
as % of sales	5,8%	3,6%	4,7%	6,7%	5,9%	6,3%
EBITDA	16,2	8,9	25,1	19,9	14,2	34,0	22,9%	58,9%	35,7%
as % of sales	5,4%	3,0%	4,2%	6,5%	4,8%	5,6%
REBIT	11,6	4,8	16,5	14,6	11,5	26,1	25,1%	139,9%	58,7%
as % of sales	3,9%	1,6%	2,8%	4,8%	3,9%	4,3%
EBIT	10,5	2,7	13,2	13,3	7,8	21,1	26,3%	186,3%	59,4%
as % of sales	3,5%	0,9%	2,2%	4,3%	2,6%	3,5%

Sales

4Q2015 combined external sales increased by +3.8% from EUR 132.0 million to EUR 137.1 million. Total combined sales, including intersegment sales (4Q2015: EUR 14.4 million; -14.2%) increased by +1.8% from EUR 148.8 million to EUR 151.5 million. Currency exchange differences had a positive effect of +1.1%.

Full year 2015, combined external sales grew by +2.9% from EUR 528.7 million to EUR 543.9 million. Total combined sales, which include intersegment sales (EUR 58.5 million; -9.0%) increased by +1.6% from EUR 593.0 million to EUR 602.3 million. Currency exchange differences had a positive effect of +1.7%.

Higher FY2015 sales in Technical Foams (EUR 236.2 million; +4.7%), supported by stronger industrial demand, have compensated for the flat activity level in the West-European Comfort markets.

Sales in the Central & Eastern European countries remained strong, while the recovery in Spain is gaining momentum. Sales in non-European markets increased by 10% to EUR 50 million.

EBITDA

EBITDA improved strongly from EUR 25.1 million to EUR 34.0 million, primarily supported by the improved manufacturing efficiency and product-mix, by the impact of cost management initiatives, as well as lower raw material prices. EBITDA includes EUR -4.0 million nonrecurring elements (2014: EUR –2.6 million), which are mainly related to (i) reorganisation charges in Spain, Sweden and The Netherlands. and (ii) legal fees related to past legacy files.

5.2. BEDDING

in million EUR	1H14	2H14	FY14	1H15	2H15	FY15	D 1H	D 2H	D FY
Sales	135,4	146,2	281,6	143,5	151,1	294,5	5,9%	3,3%	4,6%
REBITDA	3,3	10,2	13,5	6,0	8,1	14,1	79,9%	-20,6%	4,1%
as % of sales	2,5%	7,0%	4,8%	4,2%	5,4%	4,8%
EBITDA	( 6,8)	9,7	2,9	5,1	4,4	9,5	n.m.	-54,7%	223,2%
as % of sales	-5,0%	6,7%	1,0%	3,5%	2,9%	3,2%
REBIT	( 0,0)	7,2	7,2	2,8	4,9	7,7	n.m.	-31,5%	8,2%
as % of sales	0,0%	4,9%	2,5%	2,0%	3,3%	2,6%
EBIT	( 10,2)	6,7	( 3,5)	1,9	1,2	3,2	n.m.	-81,5%	n.m.
as % of sales	-7,5%	4,6%	-1,2%	1,3%	0,8%	1,1%

Sales

After a very strong 2Q & 3Q2015, 4Q2015 combined external sales decreased by -1.5% from EUR 73.5 million to EUR 72.4 million. Total combined sales, including intersegment sales (4Q2015: EUR 5.5 million; +4.9%), decreased from EUR 78.8 million to EUR 77.9 million in 4Q2015 (-1.1%), including exchange rate differences for +1.0%.

Full year 2015, combined external sales increased by +5.5% from EUR 261.0 million to EUR 275.4 million. Total combined sales, including intersegment sales (2015: EUR 19.1 million; -7.7%), increased from EUR 281.6 million to EUR 294.5 million (+4.6%), including exchange rate differences for +1.0%.

Revenues of the sub-segment Branded Products increased by +5.2%, supported by the growth in sales of the GELTEX® inside products (+19.0% compared to 2014).

The sub-segment Non-Branded/Private Label recorded higher sales (+6.1%) as well, supported by the successful growth of the large distribution chains in a consolidating market.

In its core bedding markets, Recticel's sales developed very differently from one country to another. In Germany, Scandinavia and Poland, sales developed positively, while Benelux remained slightly positive. Sales in Switzerland and Austria slightly declined.

EBITDA

EBITDA improved from EUR +2.9 million in 2014 (including the EUR -8.2 million fine to the German Federal Cartel Office) to EUR +9.5 million. The improvement in recurring operational profitability results from (i) higher sales volumes, (ii) the better product-mix, and (iii) the effect of cost control initiatives. In 2015 non-recurring elements, mainly induced by restructurings in Germany and The Netherlands, amounted to EUR -4.6 million (2014: EUR -10.6 million).

5.3. INSULATION

in million EUR	1H14	2H14	FY14	1H15	2H15	FY15	D 1H	D 2H	D FY
		(restated) 1
Sales	103,3	108,3	211,6	113,3	116,1	229,4	9,7%	7,2%	8,4%
REBITDA	12,4	13,6	26,0	16,1	16,2	32,3	29,9%	19,6%	24,5%
as % of sales	12,0%	12,5%	12,3%	14,2%	14,0%	14,1%
EBITDA	12,4	13,6	26,0	17,7	15,7	33,4	42,6%	16,1%	28,8%
as % of sales	12,0%	12,5%	12,3%	15,6%	13,6%	14,6%
REBIT	9,7	10,7	20,4	13,3	13,1	26,4	37,5%	21,6%	29,2%
as % of sales	9,4%	9,9%	9,6%	11,7%	11,2%	11,5%
EBIT	9,7	10,7	20,4	14,9	12,6	27,5	53,8%	17,2%	34,6%
as % of sales	9,4%	9,9%	9,6%	13,1%	10,8%	12,0%

1 Excluding the contribution by the joint venture Kingspan Tarec Industrial Insulation, which was sold in February 2015. FY2014 Sales: EUR 15.5 million; (R)EBITDA: EUR 1.1 million; (R)EBIT: EUR 0.7 million.

Sales

4Q2015 combined sales¹ increased from EUR 52.6 million to EUR 55.8 million (+6.2%), including exchange rate differences for +3.0%.

The growth trend of the previous quarters¹ was confirmed (1Q2015: +4.2%; 2Q2015: +15.2% and 3Q2015: +8.3%). Growing sales volumes and a positive currency effect overcompensated some price erosion in the most competitive markets.

Full year 2015 combined sales¹ increased by +8.4% from EUR 211.6 million to EUR 229.4 million, including exchange rate differences for +3.7%. Most countries reported higher sales.

Further growth in the structural demand for high performing polyurethane building insulation products is expected over the long term as a result of stricter insulation standards and regulations (cfr European Energy Performance of Buildings Directive (EPBD) (Directive 2010/31/EU) which are progressively adopted by the EU member states), volatile energy prices and growing awareness of the need for more and better insulation; hence continuously increasing insulation thicknesses.

EBITDA

EBITDA improved from EUR 26.0 million to EUR 33.4 million (+28.8%¹ ) as a result of higher volumes, higher efficiencies, positive currency effects in the United Kingdom and receding raw material prices. In 2015, EBITDA was also impacted by a non-recurring capital gain of EUR 1.6 million on the divestment of the 50% participation in the joint venture Kingspan Tarec Industrial Insulation (KTII) as well as by a restructuring of the German sales office.

5.4. AUTOMOTIVE

in million EUR	1H14	2H14	FY14	1H15	2H15	FY15	D 1H	D 2H	D FY
Sales	140,6	123,5	264,0	142,9	137,4	280,3	1,6%	11,3%	6,2%
REBITDA	12,8	2,1	14,9	9,5	5,9	15,4	-25,3%	178,6%	3,8%
as % of sales	9,1%	1,7%	5,6%	6,7%	4,3%	5,5%
EBITDA	12,4	0,1	12,5	5,7	4,3	9,9	-54,3%	n.m.	-20,5%
as % of sales	8,8%	0,1%	4,7%	4,0%	3,1%	3,5%
REBIT	7,2	( 3,1)	4,2	3,8	( 0,1)	3,6	-48,2%	-96,5%	-12,8%
as % of sales	5,2%	-2,5%	1,6%	2,6%	-0,1%	1,3%
EBIT	6,9	( 5,1)	1,8	( 0,1)	( 1,8)	( 1,9)	-101,7%	-65,6%	-205,2%
as % of sales	4,9%	-4,1%	0,7%	-0,1%	-1,3%	-0,7%

Sales

4Q2015 combined sales increased by +13.8% from EUR 63.6 million to EUR 72.4 million, including exchange rate differences for +2.7%. All sub-segments reported higher sales.

Sales in Interiors increased by +21.7% from EUR 24.8 million to EUR 30.2 million. This positive evolution is due to the gradual start-up of new programs, leading to increased revenue recognition on moulds for the recently acquired programs, and positive currency exchange differences (+4.3%).

Sales in Seating (i.e. Proseat, the 51/49 joint venture between Recticel and Woodbridge) increased by +8.3% from EUR 35.7 million to EUR 38.7 million, including positive exchange rate differences for +1.1%.

Full year 2015 combined sales increased by +6.2% from EUR 264.0 million to EUR 280.3 million, including exchange rate differences for +3.0%.

Sales in Interiors increased by +9.5% from EUR 108.5 million to EUR 118.8 million, including positive currency exchange differences (+4.6%). Higher sales resulted from higher volumes and the gradual start-up of various new programs.

Sales in Seating were also higher with an increase of +3.0% from EUR 144.3 million to EUR 148.6 million, including positive currency exchange differences (+1.3%).

EBITDA

EBITDA decreased, as expected, from EUR 12.5 million to EUR 9.9 million, due to the EUR -4.2 million incurred restructuring cost in Seating, mainly relating to the closure of the Rüsselsheim plant (Germany) and closure costs related to the Interiors plant in Rheinbreitbach (Germany).

Recurring results before depreciation increased from EUR 14.9 million to EUR 15.4 million, despite the absorption of expected start-up costs relating to the build-up of new programs in Interiors, including the new production sites in China (Changchun and Langfang).

6. SUBSEQUENT EVENTS

Flexible Foams - France

In February 2016, Recticel SAS announced the intention to close its plant in Noyen-sur-Sarthe (France). 25 employees at the site have been put under risk of redundancy. Discussions with the works council already started in order to identify the most appropriate social support measures.

The related closure costs will be charged to the results of 2016.

Refinancing of debt

On 25 February 2016, Recticel extended its EUR 175 million secured multi-currency credit facility for 5 years.

The extension of the credit facility, concluded with six European banks, allows Recticel to secure liquidity and to extend its debt maturity profile.

°°°

ANNEXES

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 2014, 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	FY2014	1H14	2H14	FY2014	1H15	2H15	FY2015
	(as published)		(restated for IFRIC 21 and the divestment from KTII)
Sales	983,4	494,0	489,4	983,4	519,1	514,7	1 033,8
Distribution costs	( 54,1)	( 26,9)	( 27,3)	( 54,1)	( 28,3)	( 29,8)	( 58,0)
Cost of sales	( 757,0)	( 378,8)	( 378,2)	( 757,0)	( 390,8)	( 390,5)	( 781,3)
Gross profit	172,2	88,3	83,9	172,2	100,0	94,4	194,4
General and administrative expenses	( 72,3)	( 36,0)	( 36,3)	( 72,3)	( 39,6)	( 37,1)	( 76,7)
Sales and marketing expenses	( 73,3)	( 36,5)	( 36,7)	( 73,3)	( 37,4)	( 39,7)	( 77,1)
Research and development expenses	( 13,3)	( 6,9)	( 6,4)	( 13,3)	( 6,5)	( 6,1)	( 12,5)
Impairments	( 0,7)	( 0,1)	( 0,6)	( 0,7)	( 0,7)	( 0,2)	( 1,0)
Other operating revenues (1)	11,7	3,8 7,9		11,7	5,4	3,4	8,9
Other operating expenses (2)	( 24,5)	( 15,0) ( 9,5)		( 24,5)	( 6,3)	( 13,3)	( 19,6)
Other operating result (1)+(2)	( 12,9)	( 11,2)	( 1,7)	( 12,9)	( 0,9)	( 9,9)	( 10,7)
Income from joint ventures & associates	9,0	6,8	1,5	8,4	2,0	4,8	6,9
Income from investments	0,0	0,0	0,0	0,0	0,0	0,0	0,0
EBIT	8,8	4,3	3,8	8,2	16,9	6,3	23,2
Interest income	0,6	0,3	0,3	0,6	0,4	0,4	0,8
Interest expenses	( 10,6)	( 5,1)	( 5,5)	( 10,6)	( 5,5)	( 4,8)	( 10,3)
Other financial income	8,5	3,7	4,8	8,5	5,4	3,0	8,4
Other financial expenses	( 11,3)	( 5,9)	( 5,4)	( 11,3)	( 7,8)	( 3,6)	( 11,4)
Financial result	( 12,8)	( 7,0)	( 5,8)	( 12,8)	( 7,5)	( 5,0)	( 12,5)
Result of the period before taxes	( 4,0)	( 2,7)	( 1,9)	( 4,7)	9,4	1,3	10,7
Income taxes	( 5,7)	( 3,8)	( 1,9)	( 5,7)	( 4,4)	( 1,8)	( 6,2)
Result of the period after taxes	( 9,7)	( 6,5)	( 3,8)	( 10,4)	5,0	( 0,5)	4,5
of which attributable to the owners of the parent	( 9,7)	( 6,5)	( 3,8)	( 10,4)	5,0	( 0,5)	4,5
of which attributable to non-controlling interests	0,0	0,0	0,0	0,0	0,0	0,0	0,0

2. Earnings per share

2014	2015	D
29 664 256	53 731 608	81,1%
28 953 478	44 510 623	53,7%
28 953 478	44 704 483	54,4%
1,27	1,19	-6,4%
0,30	0,52	72,1%
( 0,14)	0,24	n.m.
( 0,34)	0,10	n.m.
( 0,34)	0,10	n.m.
( 0,34)	0,10	n.m.
5,60	4,63	-17,3%

3. Condensed consolidated statement of comprehensive income

in million EUR	1H14	1H14	2H14	FY2014	1H15	2H15	FY2015
	(as published)	(restated for IFRIC 21 and the divestment	from KTII)
Result for the period after taxes Other comprehensive income	( 6,5)	( 6,5)	( 3,8)	( 10,4)	5,0	( 0,5)	4,5
Items that will not subsequently be recycled to profit and loss
Actuarial gains and losses on employee benefits recognized in equity	( 4,2)	( 4,2)	( 6,0)	( 10,3)	6,1	( 0,3)	5,8
Deferred taxes on actuarial gains and losses on employee benefits	0,0	0,0	0,4	0,4	( 1,1)	0,0	( 1,1)
Total	( 4,2)	( 4,2)	( 5,7)	( 9,9)	5,0	( 0,3)	4,7
Items that subsequently may be recycled to profit and loss
Hedging reserves	( 0,9)	( 0,9)	0,6	( 0,3)	( 0,3)	1,2	0,9
Investment revaluation reserve	0,0	0,0	( 0,0)	( 0,0)	0,0	0,0	0,0
Currency translation differences	0,0	0,0	1,5	1,5	5,5	( 1,9)	3,6
Foreign currency translation difference recycled in income statement	0,0	0,0	( 0,1)	( 0,1)	0,0	0,0	0,0
Deferred taxes on interest hedging reserves	0,3	0,3	( 0,2)	0,1	( 0,2)	( 0,3)	( 0,6)
Total	( 0,6)	( 0,6)	1,7	1,1	4,9	( 1,0)	3,9
Other comprehensive income net of tax	( 4,8)	( 4,8)	( 3,9)	( 8,7)	9,9	( 1,3)	8,7
Total comprehensive income for the period	( 11,3)	( 11,3)	( 7,7)	( 19,1)	15,0	( 1,7)	13,2
Total comprehensive income for the period	( 11,3)	( 11,3)	( 7,7)	( 19,1)	15,0	( 1,7)	13,2
of which attributable to the owners of the parent	( 11,3)	( 11,3)	( 7,7)	( 19,1)	15,0	( 1,7)	13,2
of which attributable to non-controlling interests	0,0	0,0	0,0	0,0	0,0	0,0	0,0

4. Condensed consolidated balance sheet

in million EUR	31 DEC 14	31 DEC 15	D
Intangible assets	12,4	13,4	8,3%
Goodwill	24,9	25,9	3,8%
Property, plant & equipment	202,7	209,7	3,4%
Investment property	3,3	3,3	0,8%
Interest in joint ventures & associates	73,6	73,2	-0,6%
Other financial investments and available for sale investments	0,9	1,0	12,2%
Non-current receivables	13,4	13,6	1,7%
Deferred tax	46,8	43,3	-7,6%
Non-current assets	378,2	383,4	1,4%
Inventories and contracts in progress	96,6	93,2	-3,6%
Trade receivables	78,1	83,4	6,8%
Other receivables	49,6	55,3	11,6%
Income tax receivables	0,5	2,1	308,9%
Available for sale investments	0,1	0,1	21,3%
Cash and cash equivalents	26,2	56,0	113,9%
Disposal group held for sale	8,6	3,2	-
Current assets	259,7	293,2	12,9%
TOTAL ASSETS	637,8	676,7	6,1%

in million EUR	31 DEC 14	31 DEC 15	D
Equity (share of the Group)	166,2	249,0	49,8%
Non-controlling interests	0,0	0,0	-
Total equity	166,2	249,0	49,8%
Pensions and other provisions	61,8	61,1	-1,2%
Deferred tax	8,9	9,5	6,7%
Interest-bearing borrowings	142,1	40,4	-71,6%
Other amounts payable	6,8	0,2	-96,7%
Non-current liabilities	219,7	111,2	-49,4%
Pensions and other provisions	6,9	6,9	0,6%
Interest-bearing borrowings	52,8	114,7	117,2%
Trade payables	96,4	94,3	-2,2%
Income tax payables	0,4	2,5	494,9%
Other amounts payable	95,5	98,2	2,8%
Current liabilities	251,9	316,5	25,6%
TOTAL LIABILITIES	637,8	676,7	6,1%

in million EUR	31 DEC 14	31 DEC 15	D
Net financial debt	168,3	98,5	-41,5%
Net financial debt / Equity (non-controlling interests included)	101%	40%
Equity (non-controlling interests included) / Total assets	26%	37%

5. Condensed consolidated statement of cash flow

in million EUR	2014 (as published)	2014 (restated for divestment KTII)	2015
EBIT	8,8	8,2	23,2
Depreciation, amortisation and impairment losses on assets	28,0	28,0	29,6
Income from associates and joint ventures	( 9,0)	( 8,4)	( 6,9)
Other non-cash elements	( 2,3)	( 2,3)	2,4
Gross operating cash flow	25,6	25,6	48,4
Changes in working capital	( 7,0)	( 7,0)	( 17,7)
Gross operating cash flow after changes in working capital	18,5	18,5	30,8
Income taxes paid	( 1,9)	( 1,9)	( 1,9)
Net cash flow from operating activities (a)	16,6	16,6	28,9
Net cash flow from investment activities (b)	( 31,7)	( 31,7)	( 14,0)
Paid interest charges (1)	( 9,9)	( 9,9)	( 9,8)
Paid dividends (2)	( 5,8)	( 5,8)	( 5,9)
Increase (Decrease) of capital (3)	3,3	3,3	74,2
Increase (Decrease) of financial liabilities (4)	27,3	27,3	( 42,0)
Other (5)	0,0	0,0	0,0
Net cash flow from financing activities (c)= (1)+(2)+(3)+(4)+(5)	14,9	14,9	16,6
Effect of exchange rate changes (d)	0,1	0,1	( 1,7)
Effect of change in scope of consolidation (e)	0,0	0,0	0,0
Changes in cash and cash equivalents (a)+(b)+(c)+(d)+(e)	( 0,1)	( 0,1)	29,8
FREE CASH FLOW (a)+(b)+(1)	( 25,0)	( 25,0)	5,2

6. Condensed consolidated statement of changes in shareholders' equity

in million EUR	Capital	Share premium	Treasury shares	Investment revaluation reserve	Actuarial gains and losses	IFRS 2 Other capital 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 preceding period (31 December 2014)	74,2	108,6	( 1,7)	( 0,0)	( 19,8)	3,0	18,6	( 10,0)	( 6,6)	166,2	0,0	166,2
Dividends	0,0	0,0	0,0	0,0	0,0	0,0	( 5,9)	0,0	0,0	( 5,9)	0,0	( 5,9)
Stock options (IFRS 2)	0,0	0,0	0,0	0,0	0,0	0,2	0,0	0,0	0,0	0,2	0,0	0,2
Capital movements Income tax related to components of shareholder	60,2 0,0	17,1 0,0	0,3 0,0	0,0 0,0	0,0 0,0	0,0 0,0	( 3,4) 1,1	0,0 0,0	0,0 0,0	74,2 1,1	0,0 0,0	74,2 1,1
mouvements
Shareholders' movements	60,2	17,1	0,3	0,0	0,0	0,2	( 8,1)	0,0	0,0	69,6	0,0	69,6
Profit or loss of the period	0,0	0,0	0,0	0,0	0,0	0,0	4,5	0,0	0,0	4,5	0,0	4,5
Components of other comprehensive income that will not be recycled to profit or loss, net of tax
Revaluation	0,0	0,0	0,0	0,0	0,0	0,0	0,0	0,0	0,0	0,0	0,0	0,0
Actuarial gains & losses recognized in equity	0,0	0,0	0,0	0,0	5,8	0,0	0,0	0,0	0,0	5,8	0,0	5,8
Income tax	0,0	0,0	0,0	0,0	( 1,1)	0,0	0,0	0,0	0,0	( 1,1)	0,0	( 1,1)
Total other comprehensive income that will not be recycled to profit or loss, net of tax (a)	0,0	0,0		0,0	4,7	0,0	0,0	0,0	0,0	4,7	0,0	4,7
Components of other comprehensive income that will be recycled to profit or loss, net of tax
Gains (losses) on	0,0	0,0	0,0	0,0	0,0	0,0	0,0	0,0	1,6	1,6	0,0	1,6
cash flow hedge Deferred taxes	0,0	0,0	0,0	0,0	0,0	0,0	0,0	0,0	( 0,6)	( 0,6)	0,0	( 0,6)
Translation differences	0,0	0,0	0,0	0,0	( 0,5)	0,0	0,0	4,1	( 0,7)	2,9	0,0	2,9
Total other comprehensive income that will be recycled to profit or loss, net of tax (b)	0,0	0,0	0,0	0,0	( 0,5)	0,0	0,0	4,1	0,4	3,9	0,0	3,9
Comprehensive income'	0,0	0,0	0,0	0,0	4,2	0,0	4,5	4,1	0,4	13,2	0,0	13,2
Reclassification	0,0	0,0	0,0	0,0	0,1	0,0	( 0,1)	0,0	0,0	0,0	0,0	0,0
Other Comprehensive income	0,0	0,0	0,0	0,0	4,2	0,0	0,0	4,1	0,4	8,7	0,0	8,7
At the end of the period (31 December 2015)	134,3	125,7	( 1,5)	( 0,0)	( 15,5)	3,1	15,0	( 6,0)	( 6,2)	249,0	0,0	249,0

8. Auditor's report

To the Board of Directors

The auditor confirms that the audit is substantially completed, and did not reveal any significant adjustments to the financial information included in the press release.

Diegem, 25 February 2016

The Statutory Auditor

DELOITTE Bedrijfsrevisoren BV o.v.v.e. CVBA Represented by Joël Brehmen and Kurt Dehoorne

______________________________________

Glossary

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.
Consolidated (figures)	: Figures following the application of IFRS 11, whereby Recticel's joint ventures are integrated on the basis of the equity method.
EBITDA	: = EBIT + depreciation, amortisation and impairment on assets.
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
Non-recurring elements	: Non-recurring elements 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.
REBITDA	: = EBITDA before non-recurring elements; REBIT = EBIT before non-recurring elements.

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

2015 Annual results 26.02.2016 (before opening of the stock exchange) First quarter 2016 trading update 06.05.2016 (before opening of the stock exchange) Annual General Meeting 31.05.2016 (at 10:00 AM CET) First half-year 2016 results 26.08.2016 (before opening of the stock exchange) Third quarter 2016 trading update 31.10.2016 (before opening of the stock exchange)

For additional information

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

PRESS INVESTOR RELATIONS

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

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

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 7,598 people in 98 establishments in 27 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®, Ubica®, etc.) and GELTEX® inside. Within the Insulation sub-segment highquality thermal insulation products are marketed under the well-known brands Eurowall®, Powerroof®, Powerdeck® and Powerwall®. Technological progress and innovation have led to breakthrough at the biggest names in the Automotive industry thanks to Colofast®, Colosense® and Colosense Lite®.

In 2015 Recticel achieved combined sales of EUR 1.3 billion (IFRS 11 consolidated sales: EUR 1.0 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