Recticel

Earnings Release • Jul 28, 2015

FIRST HALF-YEAR 2015 RESULTS

ORGANIC GROWTH AND EFFICIENCY GAINS IMPROVE PROFITABILITY

• Combined sales growth of +4.7%²
• Combined REBITDA growth of +15.7%²
• Combined net financial debt reduced to EUR 137.5 million

Olivier Chapelle (CEO): "We are pleased with the positive developments in all our segments. In particular, the success of our growth initiatives in Insulation and Bedding have led to 9.7% and 5.9% top line growth respectively. In parallel, the Group has made further progress in its simplification and streamlining efforts."

1. KEY FIGURES*

1.1. CONSOLIDATED DATA

• Sales: from EUR 494.0 million to EUR 519.1 million (+5.1%), including currency effects (+3.1%)
• EBITDA: from EUR 18.6 million to EUR 31.7 million
• EBIT: from EUR 4.3 million to EUR 16.9 million
• Result of the period (share of the Group): from EUR -6.5 million to EUR 5.0 million
• Net financial debt¹ : EUR 112.2 million (30 June 2015) (30 June 2014: EUR 161.3 million; 31 December 2014: EUR 168.3 million)

	1H2014 (restated for
in million EUR	IFRIC 21 and the divestment	1H2015	D
	from KTII) 2
	(a)	(b)	(b)/(a)-1
Sales	494,0	519,1	5,1%
Gross profit	88,3	100,0	13,3%
as % of sales	17,9%	19,3%
EBITDA	18,6	31,7	70,4%
as % of sales	3,8%	6,1%
EBIT	4,3	16,9	290,3%
as % of sales	0,9%	3,3%
Result of the period (share of the Group)	( 6,5)	5,0	n.r.
Result of the period (share of the Group) -
base (per share, in EUR)	( 0,23)	0,14	n.r.
Total Equity	173,7	249,5	43,6%
Net financial debt 1	161,3	112,2	-30,4%
Gearing ratio	92,9%	45,0%

¹ Excluding the drawn amounts under off-balance non-recourse factoring/forfeiting programs: EUR 70.4 million per 30 June 2015 versus EUR 67.3 million per 30 June 2014 and EUR 55.1 million per 31 December 2014.

² Restated for IFRIC 21 and excluding the joint venture Kingspan Tarec Industrial Insulation (KTII), which was sold in February 2015. Previously KTII was consolidated following the equity method. For more details on restatement for IFRIC 21 and KTII divestment, see IAS 34 Interim Report (www.recticel.com) .

* All comparisons are made with the comparable period of 2014, restated for IFRIC 21 and the divestment of Kingspan Tarec Industrial Insulation (KTII) (February 2015), unless mentioned otherwise.

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

The figures mentioned have been subject to a limited auditor's review.

1.2. COMBINED DATA

• Sales: from EUR 637.8 million to EUR 667.5 million (+4.7%), including currency effects (+2.6%)
• Sales growth of 9.7% in Insulation, and 5.9% in Bedding
• REBITDA: from 37.0 million to EUR 42.9 million (+15.7 %)
• EBITDA: from 24.4 million to EUR 38.8 million (+59.0%)
• REBIT: from 19.2 million to EUR 24.8 million (+29.1 %)
• EBIT: from 6.5 million to EUR 20.0 million
• Net financial debt¹ : EUR 137.5 million (30 June 2015) (30 June 2014: EUR 191.8 million; 31 December 2014: EUR 194.5 million)

in million EUR	1H2014 (restated for IFRIC 21 and the divestment from KTII) 2	1H2015	D
	(a)	(b)	(b)/(a)-1
Sales	637,8	667,5	4,7%
Gross profit	106,3	119,8	12,7%
as % of sales	16,7%	17,9%
REBITDA	37,0	42,9	15,7%
as % of sales	5,8%	6,4%
EBITDA	24,4	38,8	59,0%
as % of sales	3,8%	5,8%
REBIT	19,2	24,8	29,1%
as % of sales	3,0%	3,7%
EBIT	6,5	20,0	209,0%
as % of sales	1,0%	3,0%
Total Equity	166,0	249,5	50,2%
Net financial debt 1	191,8	137,5	-28,3%
Gearing ratio	115,5%	55,1%

¹Excluding the drawn amounts under off-balance non-recourse factoring/forfeiting programs: EUR 78.3 million per 30 June 2015 versus EUR 74.8 million per 30 June 2014 and EUR 62.7 million per 31 December 2014.

² Excluding the contribution of the joint venture Kingspan Tarec Industrial Insulation (KTII), which was sold in February 2015.

2. COMMENTS ON THE GROUP RESULTS

Detailed comments on sales and results of the different segments (IFRS 8) 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 1H2014 figures have been restated to reflect this change in scope.

Consolidated Sales: from EUR 494.0 million to EUR 519.1 million (+5.1%)

Consolidated sales increased by +2.0% before exchange rate differences. Currency impacts had a positive effect of EUR 15.2 million (accounting for +3.1%) on 1H2015 consolidated sales.

Combined Sales: from EUR 637.8 million to EUR 667.5 million (+4.7%).

Combined sales increased by +2.1% before exchange rate differences. Currency impacts had a positive effect of EUR 16.5 million (accounting for +2.6%) on 1H2015 combined sales.

Breakdown of the combined sales by segment

in million EUR	1Q2014	2Q2014	1H2014	1Q2015	2Q2015	1H2015	D 1Q	D 2Q	D 1H
		-------- (restated)1	--------
Flexible Foams	156,1	144,0	300,1	158,5	147,4	305,9	1,5%	2,4%	1,9%
Bedding	76,0	59,4	135,4	79,1	64,4	143,5	4,1%	8,3%	5,9%
Insulation	51,8	51,5	103,3	54,0	59,3	113,3	4,2%	15,2%	9,7%
Automotive	68,7	71,9	140,6	72,7	70,1	142,9	5,9%	-2,4%	1,6%
Eliminations	( 22,9)	( 18,7)	( 41,6)	( 20,9)	( 17,1)	( 38,0)	-8,5%	-8,7%	-8,6%
TOTAL COMBINED SALES	329,7	308,0	637,7	343,4	324,1	667,5	4,1%	5,2%	4,7%
Contribution joint ventures proportionally consolidated in segment reporting	( 73,8)	( 69,9)	( 143,7)	( 75,0)	( 73,4)	( 148,4)	1,6%	5,0%	3,2%
TOTAL CONSOLIDATED SALES	255,9	238,1	494,0	268,4	250,7	519,1	4,9%	5,3%	5,1%

1 excluding the contribution of sales by the joint venture Kingspan Tarec Industrial Insulation, which was sold in February 2015 (1H2014: EUR 7.5 million)

Combined sales increased from EUR 308.0 million in 2Q2014 to EUR 324.1 million in 2Q2015 (+5.2%, including exchange differences of +2.9%), displaying accelerated growth compared to 1Q2015 (+4.1%, including exchange differences of +2.3%). Growth initiatives and commercial performance in Insulation and Bedding, combined with the favourable impact of the Euro depreciation, have been the main growth drivers.

All segments have grown during the second quarter, except Automotive (-2.4%).

• At comparable scope¹ , the Insulation segment accelerated the positive trend of 1Q2015 (+4.2%) and recorded strong sales growth (+15.2%) in 2Q2015. The latter was also supported by the positive currency impact on sales in the United Kingdom.
• Flexible Foams benefited from improving industrial demand for Technical Foams, as well as from higher sales in the non-European markets.
• Bedding further expanded in 2Q2015 in the branded products' segment, supported by the GELTEX® inside product range.
• Automotive sales are driven by the planned phasing-out of existing programs, as well as the planned start-ups of recently acquired programs.

Combined REBITDA: from EUR 37.0 million to EUR 42.9 million (+15.7%)

Recurrent profitability 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 strongly to the profitability improvement, with the exception of Automotive which was anticipated.

Breakdown of the combined REBITDA by segment

in million EUR	1H2014 (restated)1	1H2015	D
Flexible Foams	16,6	20,4	23,1%
Bedding	3,3	6,0	79,9%
Insulation	12,4	16,1	29,9%
Automotive	12,8	9,5	-25,3%
Corporate	( 8,0)	( 9,2)	14,1%
TOTAL COMBINED REBITDA	37,0	42,9	15,7%

1 Restated for IFRIC 21 and excluding the EUR 0.6 million REBITDA contribution by the joint venture Kingspan Tarec Industrial Insulation, which was sold in February 2015

• Flexible Foams restored its industrial performance, which had been an issue during 4Q2014. Likewise, the polyol prices have receded now that the propylene oxide supply issues have been solved. The result has further improved due to a favourable product/market mix.
• Bedding benefited in 1H2015 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. Cost reduction initiatives and receding raw material prices, more than compensating price erosion in some of its most competitive markets.
• The Automotive segments profitability declined, as expected, as a direct consequence of start-up costs for the numerous new programs, mainly in the Interiors segment.

Combined REBIT: from EUR 19.2 million to EUR 24.8 million (+29.1%)

in million EUR	1H2014 (restated)1	1H2015	D
Flexible Foams	11,0	14,6	32,9%
Bedding	( 0,0)	2,8	n.r.
Insulation	9,7	13,3	37,5%
Automotive	7,2	3,8	-48,2%
Corporate	( 8,7)	( 9,7)	11,5%
TOTAL COMBINED REBIT	19,2	24,8	29,1%

Breakdown of the combined REBIT by segment

1 Restated for IFRIC 21 and excluding the EUR 0.4 REBIT contribution by the joint venture Kingspan Tarec Industrial Insulation, which was sold in February 2015

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 -4.8 million (1H2014: EUR –12.7 million).

in million EUR	1H2014	1H2015
Provision for settlement German Federal Cartel Office investigation	( 8,2)	0,0
Restructuring charges and provisions	( 4,2)	( 5,3)
Capital gain on divestment	0,0	1,6
Other (i.e. Legal and advisory fees, sale of operating assets, )	( 0,2)	( 0,4)
Total impact on EBITDA	( 12,6)	( 4,1)
Impairments	( 0,1)	( 0,7)
Total impact on EBIT	( 12,7)	( 4,8)

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 and Sweden) and in Bedding (Germany).

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

Impairment charges (EUR -0.7 million) (1H2014: EUR -0.1 million) relate to assets in The Netherlands (Flexible Foams).

Consolidated EBITDA: from EUR 18.6 million to EUR 31.7 million (+70.4%)

Combined EBITDA: from EUR 24.4 million to EUR 38.8 million (+59.0%)

Breakdown of EBITDA by segment

in million EUR	1H2014 (restated)1	1H2015	D
Flexible Foams	15,5	19,9	28,3%
Bedding	( 6,8)	5,1	n.r.
Insulation	12,4	17,7	42,6%
Automotive	12,4	5,7	-54,3%
Corporate	( 9,1)	( 9,5)	4,7%
TOTAL COMBINED EBITDA	24,4	38,8	59,0%
Contribution joint ventures proportionally consolidated in segment reporting	( 5,8)	( 7,1)	22,2%
TOTAL CONSOLIDATED EBITDA	18,6	31,7	70,4%

1 Restated for IFRIC 21 and excluding the EUR 0.6 million EBITDA contribution by the joint venture Kingspan Tarec Industrial Insulation, which was sold in February 2015

Consolidated EBIT: from EUR 4.3 million to EUR 16.9 million (+290.3%)

Combined EBIT: from EUR 6.5 million to EUR 20.0 million (+209.0%)

Breakdown of EBIT by segment

in million EUR	1H2014 (restated)1	1H2015	D
Flexible Foams	9,8	13,3	35,2%
Bedding	( 10,2)	1,9	n.r.
Insulation	9,7	14,9	53,8%
Automotive	6,9	( 0,1)	-101,7%
Corporate	( 9,7)	( 10,0)	3,0%
TOTAL COMBINED EBIT	6,5	20,0	209,0%
Contribution joint ventures proportionally consolidated in segment reporting	( 2,1)	( 3,0)	42,4%
TOTAL CONSOLIDATED EBIT	4,3	16,9	290,3%

1 Restated for IFRIC 21 and excluding the 0.4 million EBIT contribution by the joint venture Kingspan Tarec Industrial Insulation, which was sold in February 2015

Consolidated financial result: from EUR -7.0 million to EUR -7.5 million

Net interest charges slightly increased from EUR -4.8 million to EUR -5.1 million as a result of a higher average net interest-bearing debt level, including the usage of 'off-balance' factoring/forfeiting programs, until the receipt of the proceeds of the capital increase in May 2015.

'Other net financial income and expenses' totalled EUR –2.4 million, compared to EUR -2.2 million in 1H2014, and comprise mainly interest capitalisation costs under provisions for pension liabilities (EUR –0.5 million versus EUR -0.8 million in 1H2014) and exchange rate differences (EUR -1.8 million versus EUR -0.6 million in 1H2014). 1H2014 included also EUR -0.8 million financing costs resulting from the EC fine payment terms.

Consolidated income taxes and deferred taxes: from EUR -3.8 million to EUR -4.4 million:

• Current income tax charges: EUR -0.7 million (EUR -1.1 million in 1H2014);
• Deferred tax charges: EUR -3.7 million (EUR -2.7 million in 1H2014).

Consolidated result of the period (share of the Group): from EUR -6.5 million to EUR +5.0 million.

3. FINANCIAL SITUATION

On 30 June 2015, the Group net consolidated financial debt amounted to EUR 112.2 million (30 June 2014: EUR 161.3 million; 31 December 2014: EUR 168.3 million) excluding the drawn amounts under off-balance non-recourse factoring/forfeiting programs of EUR 70.4 million (30 June 2014: EUR 67.3 million; 31 December 2014: EUR 55.1 million).

On a combined basis, net financial debt amounted to EUR 137.5 million on 30 June 2015 (30 June 2014: EUR 191.8 million; 31 December 2014: EUR 194.5 million) excluding the drawn amounts under the off-balance non-recourse factoring/forfeiting programs of EUR 78.3 million (30 June 2014: EUR 74.8 million; 31 December 2014: EUR 62.7 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)

Total equity on 30 June 2015 amounts to EUR 249.5 million compared to EUR 166.2 million on 31 December 2014. The rights' issue contributed EUR 72.9 million net to the strengthening of the company's equity position.

On a consolidated basis the net debt-to-equity ratio per 30 June 2015 improved to 45.0%, compared to 101.3% at end of 2014.

On a combined basis, the net debt-to-equity ratio stands at 55.1%, compared to 117.1% at the end of 2014.

Net Financial Debt

4. OUTLOOK

In the first half of 2015, Recticel experienced a more favorable business environment which, supported by successful market initiatives and despite growing uncertainty and volatile global economic context, will lead to combined sales¹ growth for the full year 2015. Combined REBITDA¹ for the full year 2015 is expected to increase by about 15%, in line with the first half 2015 trend.

¹Excluding the contribution of the joint venture Kingspan Tarec Industrial Insulation (KTII), which was sold in February 2015.

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 will continue 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	1H2014 (restated)1	1H2015	D
Sales	300,1	305,9	1,9%
REBITDA	16,6	20,4	23,1%
as % of sales	5,5%	6,7%
EBITDA	15,5	19,9	28,3%
as % of sales	5,2%	6,5%
REBIT	11,0	14,6	32,9%
as % of sales	3,7%	4,8%
EBIT	9,8	13,3	35,2%
as % of sales	3,3%	4,3%

1 Restated for IFRIC 21

Sales

2Q2015 combined external sales increased from EUR 130.3 million to EUR 134.7 million (+3.4%). Total combined sales, including intersegment sales (2Q2015: EUR 12.7 million), increased from EUR 144.0 million in 2Q2014 to EUR 147.4 million in 2Q2015 (+2.4%).

1H2015, combined external sales grew by +2.9% from EUR 269.4 million to EUR 277.2 million. Total combined sales, including intersegment sales (1H2015: EUR 28.7 million), increased from EUR 300.1 million to EUR 305.9 million (+1.9%). Currency exchange differences had a positive effect of +2.1%.

Increased sales in Technical Foams (EUR 123.9 million; +6.0%), which are supported by stronger industrial and automotive markets, compensated for the weaker activity level in Comfort (EUR 182.0 million; -0.7%).

Sales in the Central & Eastern European countries remained strong, and the recovery in Spain is gaining momentum.

EBITDA

EBITDA increased from EUR 15.5 million to EUR 19.9 million, primarily supported by the improved product-mix due to higher sales in Technical Foams, the impact of cost management initiatives, as well as lower raw material prices. EBITDA includes EUR -0.6 million of non-recurring elements (1H2014: EUR -1.1 million), which are mainly related to a reorganisation in Spain and Sweden.

5.2. BEDDING

in million EUR	1H2014 (restated)1	1H2015	D
Sales	135,4	143,5	5,9%
REBITDA	3,3	6,0	79,9%
as % of sales	2,5%	4,2%
EBITDA	( 6,8)	5,1	n.r.
as % of sales	-5,0%	3,5%
REBIT	( 0,0)	2,8	n.r.
as % of sales	0,0%	2,0%
EBIT	( 10,2)	1,9	n.r.
as % of sales	-7,5%	1,3%

¹Restated for IFRIC 21

Sales

2Q2015 combined external sales increased strongly from EUR 54.6 million to EUR 60.2 million (+10.3%). Total combined sales, including intersegment sales (2Q2015: EUR 4.2 million), increased from EUR 59.5 million in 2Q2014 to EUR 64.4 million in 2Q2015 (+8.3%).

Branded Product sales increased by +14.7% during 2Q2015, significantly exceeding estimated market growth rate in Recticel reference markets.

Sales in the more competitive Non-Branded/Private Label sub-segment increased during 2Q2015 at a more modest rate of +4.2%.

1H2015 combined external sales grew by +7.7% from EUR 124.9 million to EUR 134.5 million. Total combined sales, including intersegment sales (1H2015: EUR 9.0 million), increased from EUR 135.4 million to EUR 143.5 million (+5.9%).

The sub-segment Branded Products confirmed an encouraging revenue increase of +11.2%, supported by the GELTEX® inside products growth of more than 40% versus 1H2014. Sales grew particularly in Germany and Austria.

The sub-segment Non-Branded/Private Label also recorded higher sales (+2.5%).

EBITDA

EBITDA turned positive from -6.8 million in 1H2014 (including the amount of the EUR 8.2 million fine to the German Federal Cartel Office) to EUR +5.1 million. The improvement in recurring operational profitability results from (i) higher sales volumes, (ii) the improving product-mix, and (iii) the effect of cost control initiatives. In 1H2015 non-recurring elements (restructurings in Germany and The Netherlands) amounted to EUR -0.9 million.

5.3. INSULATION

in million EUR	1H2014 (restated)1	1H2015	D
Sales	103,3	113,3	9,7%
REBITDA	12,4	16,1	29,9%
as % of sales	12,0%	14,2%
EBITDA	12,4	17,7	42,6%
as % of sales	12,0%	15,6%
REBIT	9,7	13,3	37,5%
as % of sales	9,4%	11,7%
EBIT	9,7	14,9	53,8%
as % of sales	9,4%	13,1%

1 Restated for IFRIC 21 and excluding the contribution by the joint venture Kingspan Tarec Industrial Insulation, which was sold in February 2015. Sales: EUR 7.5 million; (R)EBITDA: EUR 0.6. million; (R)EBIT: EUR 0.4 million.

Sales

Growth accelerated in the Insulation business. After a good 1Q2015 (+4.2%¹ ), 2Q2015 combined sales increased by a strong +15.2% from EUR 51.4 million to EUR 59.3 million. Growth in volumes and currency effects over-compensated the price erosion in overall competitive and relatively soft construction markets.

1H2015 combined sales increased by +9.7% 1 from EUR 103.3 million to EUR 113.3 million. Currency exchange differences had a positive effect of +3.8%. 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 continually increasing insulation thicknesses.

EBITDA

EBITDA posted a significant improvement from EUR 12.4 million to EUR 17.7 million (+42.6% 1 ) as a result of higher volumes, positive currency effects in the United Kingdom and receding raw material prices. In 1H2015, 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).

5.4. AUTOMOTIVE

in million EUR	1H2014 (restated)1	1H2015	D
Sales	140,6	142,9	1,6%
REBITDA	12,8	9,5	-25,3%
as % of sales	9,1%	6,7%
EBITDA	12,4	5,7	-54,3%
as % of sales	8,8%	4,0%
REBIT	7,2	3,8	-48,2%
as % of sales	5,2%	2,6%
EBIT	6,9	( 0,1)	-101,7%
as % of sales	4,9%	-0,1%

¹Restated for IFRIC 21

Sales

2Q2015 combined sales decreased from EUR 71.9 million to EUR 70.1 (-2.4%). The decrease is primarily attributable to the sub-segment Interiors, which reported 5.5% lower sales of EUR 29.7 million, compared to EUR 31.4 million in 2Q2014. As in 1Q2015, the evolution is due to the phase-out of various programs during 2014.

Sales in Seating (i.e. Proseat, the 51/49 joint venture between Recticel and Woodbridge) were flat in 2Q2015 (EUR 37.5 million; -0.2%).

In 1H2015 combined sales in Interiors grew by 2.5% to EUR 61.2 million, despite the planned phase-out of some programs in 2014, including positive currency exchange differences (+4.6%).

In Seating sales were stable over 1H2015 at EUR 75.4 million, including the positive effect of currency exchange differences (+1.4%).

1H2015 sales in Exteriors were strongly ahead on last year's comparable period (EUR 6.3 million; +15.1%).

EBITDA

EBITDA decreased, as expected, from EUR 12.4 million to EUR 5.7 million, primarily due to EUR -3.9 million (1H2014: EUR –0.4 million) restructuring charges in Seating relating to the announced closure of the Rüsselsheim plant (Germany) and further rationalisation of overheads. Recurring profitability of Seating was impacted by temporarily higher labour costs in anticipation of the closing of the Rüsselsheim plant and an additional provision for personnel benefits in Poland.

In Interiors recurring profitability was influenced by the expected start-up costs for the buildup of the new programs, including the new production sites in China (Changchun and Langfang).

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

		1H2014
in million EUR	1H2014 (as published)	(restated for IFRIC 21 and the divestment from KTII)	1H2015	D
		(a)	(b)	(b)/(a) - 1
Sales	494,0	494,0	519,1	5%
Distribution costs	( 26,8)	( 26,9)	( 28,3)	5%
Cost of sales	( 378,2)	( 378,8)	( 390,8)	3%
Gross profit	88,9	88,3	100,0	13%
General and administrative expenses	( 35,6)	( 36,0)	( 39,6)	10%
Sales and marketing expenses	( 36,5)	( 36,5)	( 37,4)	2%
Research and development expenses	( 6,9)	( 6,9)	( 6,5)	-7%
Impairments	( 0,1)	( 0,1)	( 0,7)	675%
Other operating revenues (1)	3,8	3,8	5,4	44%
Other operating expenses (2)	( 15,0)	( 15,0)	( 6,3)	-58%
Other operating result (1)+(2)	( 11,2)	( 11,2)	( 0,9)	-92%
Income from joint ventures & associates	7,2	6,8	2,0	-70%
Income from investments	0,0	0,0	0,0	-100%
EBIT	5,9	4,3	16,9	290%
Interest income	0,3	0,3	0,4	22%
Interest expenses	( 5,1)	( 5,1)	( 5,5)	7%
Other financial income	3,7	3,7	5,4	47%
Other financial expenses	( 5,9)	( 5,9)	( 7,8)	32%
Financial result	( 7,0)	( 7,0)	( 7,5)	7%
Result of the period before taxes	( 1,1)	( 2,7)	9,4	n.r.
Income taxes	( 3,8)	( 3,8)	( 4,4)	15%
Result of the period after taxes	( 5,0)	( 6,5)	5,0	n.r.
of which attributable to the owners of the parent	( 5,0)	( 6,5)	5,0	n.r.
of which attributable to non-controlling interests	0,0	0,0	0,0	-

2. Earnings per share

in EUR	1H2014 (as published)	1H2014 (restated for IFRIC 21)	1H2015	D
		(a)	(b)	(b)/(a) -1
Number of shares outstanding (including treasury shares)	29 530 356	29 530 356	53 401 060	81%
Weighted average number of shares outstanding (before dilution effect)	28 645 036	28 645 036	35 667 987	25%
Weighted average number of shares outstanding (after dilution effect)	28 645 036	28 645 036	41 648 601	45%
EBITDA	0,70	0,70	0,89	26%
EBIT	0,21	0,16	0,47	n.r.
Result for the period before taxes	( 0,04)	( 0,08)	0,26	n.r.
Result for the period after taxes	( 0,17)	( 0,23)	0,14	n.r.
Result for the period (share of the Group) - basic	( 0,17)	( 0,23)	0,14	n.r.
Result for the period (share of the Group) - diluted	( 0,17)	( 0,23)	0,14	n.r.
Net book value	5,89	5,85	4,67	-20%

3. Condensed consolidated statement of comprehensive income

in million EUR	1H2014 (as published)	1H2014 (restated for IFRIC 21 and the divestment from KTII)	1H2015
Result for the period after taxes	( 5,0)	( 6,5)	5,0
Other comprehensive income
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)	6,1
Deferred taxes on actuarial gains and losses on employee benefits	0,0	0,0	( 1,1)
Total	( 4,2)	( 4,2)	5,0
Items that subsequently may be recycled to profit and loss
Hedging reserves	( 0,9)	( 0,9)	( 0,3)
Investment revaluation reserve	0,0	0,0	0,0
Currency translation differences	0,0	0,0	5,5
Deferred taxes on hedging interest reserves	0,3	0,3	( 0,2)
Total	( 0,6)	( 0,6)	4,9
Other comprehensive income net of tax	( 4,8)	( 4,8)	9,9
Total comprehensive income for the period	( 9,8)	( 11,3)	15,0
Total comprehensive income for the period	( 9,8)	( 11,3)	15,0
of which attributable to the owners of the parent	( 9,8)	( 11,3)	15,0
of which attributable to non-controlling interests	0,0	0,0	0,0

4. Condensed consolidated balance sheet

in million EUR	31 DEC 14	30 JUN 15	D
Intangible assets	12,4	12,3	-1%
Goodwill	24,9	26,5	6%
Property, plant & equipment	202,7	207,2	2%
Investment property	3,3	3,3	1%
Interest in joint ventures & associates	73,6	71,4	-3%
Other financial investments and available for sale investments	0,9	0,9	2%
Non-current receivables	13,4	13,3	-1%
Deferred tax	46,8	43,3	-8%
Non-current assets	378,2	378,2	0%
Inventories and contracts in progress	96,6	97,8	1%
Trade receivables	78,1	110,4	41%
Other receivables	49,6	50,2	1%
Income tax receivables	0,5	1,9	274%
Available for sale investments	0,1	0,1	0%
Cash and cash equivalents	26,2	51,4	97%
Disposal group held for sale	8,6	1,6	-82%
Current assets	259,7	313,4	21%
TOTAL ASSETS	637,8	691,6	8%
in million EUR	31 DEC 14	30 JUN 15	D
Equity (share of the Group)	166,2	249,5	50%
Non-controlling interests	0,0	0,0	-
Total equity	166,2	249,5	50%
Pensions and other provisions	61,8	59,0	-5%
Deferred tax	8,9	9,2	4%
Interest-bearing borrowings	142,1	131,5	-7%
Other amounts payable	6,8	0,2	-97%
Non-current liabilities	219,7	199,9	-9%
Pensions and other provisions Interest-bearing borrowings	6,9 52,8	5,6 33,5	-19% -36%
Trade payables	96,4	94,4	-2%
Income tax payables	0,4	1,3	220%
Other amounts payable	95,5	107,5	13%
Current liabilities TOTAL LIABILITIES	251,9 637,8	242,3 691,6	-4% 8%
in million EUR	31 DEC 14	30 JUN 15	D
Net financial debt	168,3	112,2	-33%
Net financial debt / Equity (non-controlling interests included)	101%	45%

5. Condensed consolidated statement of cash flow

in million EUR	1H2014 (as published)	1H2014 (restated for IFRIC 21 and the divestment from KTII)	1H2015	D
		(a)	(b)	(b)/(a) -1
EBIT	5,9	4,3	16,9	290%
Depreciation, amortisation and impairment losses on assets	14,6	14,6	15,2	4%
Income from associates and joint ventures	( 7,2)	( 6,8)	( 2,0)	-70%
Other non-cash elements	3,4	3,4	( 2,4)	nr
Gross operating cash flow	16,8	15,6	27,7	77%
Changes in working capital	( 13,2)	( 12,0)	( 26,6)	122%
Gross operating cash flow after changes in working capital	3,6	3,6	1,0	-72%
Income taxes paid	( 1,0)	( 1,0)	( 1,1)	14%
Net cash flow from operating activities (a)	2,6	2,6	( 0,1)	nr
Net cash flow from investment activities (b)	( 14,8)	( 14,8)	( 2,9)	-81%
Paid interest charges (1)	( 4,2)	( 4,2)	( 4,3)	1%
Paid dividends (2)	( 5,8)	( 5,8)	( 5,9)	1%
Increase (Decrease) of capital (3)	2,7	2,7	73,2	2600%
Increase (Decrease) of financial liabilities (4)	20,1	20,1	( 34,7)	nr
Other (5)	0,0	0,0	0,0	#DIV/0!
Net cash flow from financing activities (c)= (1)+(2)+(3)+(4)+(5)	12,8	12,8	28,4	121%
Effect of exchange rate changes (d)	0,1	0,1	( 0,1)	nr
Effect of change in scope of consolidation (e)	0,0	0,0	0,0	#DIV/0!
Changes in cash and cash equivalents (a)+(b)+(c)+(d)+(e)	0,8	0,8	25,3	3260%
FREE CASH FLOW (a)+(b)+(1)	( 16,4)	( 16,4)	( 7,3)	-56%

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) Capital movements Income tax relating to	0,0 59,3	0,0 16,6	0,0 0,3	0,0 0,0	0,0 0,0	0,1 0,0	0,0 ( 3,1)	0,0 0,0	0,0 0,0	0,1 73,2	0,0	0,1 73,2
components of shareholder movements	0,0	0,0	0,0	0,0	0,0	0,0	1,0	0,0	0,0	1,0	0,0	1,0
Shareholders' movements	59,3	16,6	0,3	0,0	0,0	0,1	( 8,0)	0,0	0,0	68,3	0,0	68,3
Profit or loss of the period	0,0	0,0	0,0	0,0	0,0	0,0	5,0	0,0	0,0	5,0	0,0	5,0
Comprehensive income'	0,0	0,0	0,0	0,0	4,4	0,0	5,0	6,1	( 0,5)	15,0	0,0	15,0
Change in scope	0,0	0,0	0,0	0,0	0,1	0,0	( 0,1)	0,0	0,0	0,0	0,0	0,0
At the end of the period (30 June 2015)	133,5	125,2	( 1,5)	( 0,0)	( 15,3)	3,0	15,6	( 4,0)	( 7,1)	249,5	0,0	249,5

8. Auditor's report

To the Board of Directors

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

Diegem, 27 August 2015

The Statutory Auditor

DELOITTE Bedrijfsrevisoren BV o.v.v.e. CVBA

Represented by Joël Brehmen and Kurt Dehoorne

______________________________________

a For the full version of the limited review report we refer to the half-year consolidated financial statements on our website www.recticel.com under the chapter Investor Relations > Annual and half-year Reports > Condensed financial statements per 30 June 2015

Lexicon

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.
IFRIC 21	: IFRIC 21 'Levies' (effective 1 January 2014). This interpretation addresses the timing and recognition for a liability to pay a levy if that levy is within the scope of IAS 37 'Provisions, Contingent Liabilities and Contingent Assets'. IFRIC 21 is primarily applicable to the property taxes in Belgium, France and the United Kingdom, which constitute a liability to be recognized in full when an entity owns the property at 1 January.
Net financial debt	: Interest bearing financial debts at more than one year + interest bearing financial debts within maximum one year – cash and cash equivalents - Available for sale investments + 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

First half-year 2015	28.08.2015
results	(before opening of the stock exchange)
Third quarter 2015 trading update	30.10.2015 (before opening of the stock exchange)
FY2015	26.02.2016
Results	(before opening of the stock exchange)
First quarter 2016	06.05.2016
trading update	(before opening of the stock exchange)
Annual General Meeting	31.05.2016 (at 10:00 AM CET)
First half-year 2016	26.08.2016
results	(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 also operates in the rest of the world. Recticel employs 7,578 people in 99 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 2014 Recticel achieved combined sales of EUR 1.28 billion (IFRS 11 consolidated sales: EUR 0.98 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