Recticel

Earnings Release • Oct 4, 2013

Brussels, 04 October 2013 – 17:45 CET

EARLY ADOPTION OF THE NEW REPORTING STANDARD IFRS 11 – JOINT ARRANGEMENTS

The International Accounting Standards Board (IASB) issued the new IFRS 11 Standard in May 2011. This standard has been adopted by the European Union in April 2013, for application as from 01 January 2014 at the latest.

On 30 September 2013 the Recticel Board of Directors has decided to formally adopt the new Reporting Standard IFRS 11 –Joint Arrangements– as from 01 January 2013. The application of the new IFRS 11 requires the integration of joint ventures on the basis of the equity method. As a result of this change, Recticel will adapt its financial statements as from 01 January 2013, implying a mandatory restatement of its comparative 2012 financial statements.

According to this new standard, joint ventures currently integrated by application of the proportionate consolidation method will be assimilated to joint arrangements with an interest in the net assets, to which the equity method applies. The change in consolidation method relates to Recticel's joint ventures Eurofoam, Proseat and Kingspan Tarec Industrial Insulation (KTII).

Under the equity method the investment in these associated companies is recognized in the consolidated balance sheet under "Interest in Associates / Joint Ventures" at their investment value measured at historical cost and adjusted to recognize the Group's share in their net result accumulated since their first consolidation, whereas under the proportionate consolidation method their contribution was recognized under each item of the balance sheet. The contribution of the joint ventures in the Result of the period is recognized under "Income from Associates – Joint Ventures", whereas under the proportionate consolidation method their contribution was recognized in each line of the Income Statement.

Given the materiality of these joint ventures in its consolidated financial statements, Recticel will adopt this new accounting standard as from 01 January 2013.

When IFRS 11 is first applied, an entity must also present restated financial information for the annual period immediately preceding the first year for which the standard is applied ; this to ensure official comparable financial information.

In accordance with the IFRS rules, the financial statements for the prior period shall be adjusted as if the new accounting policy had always been applied. Hence Recticel's 2012 financial statements are restated accordingly.

By application of the above-stated accounting rules, Recticel's previously published financial statements will no longer be relevant as a comparable basis going forward.

in million EUR	FY2012 as published on 01 March 2013	FY2012 restated for IAS 19R (1)	FY2012 restated for IAS 19R and IFRS 11 (2)
Sales	1 319.5	1 319.5	1 035.1
Gross profit	211.0	211.0	170.7
as % of sales	16.0%	16.0%	16.5%
REBITDA	90.7	87.7	73.0
as % of sales	6.9%	6.6%	7.1%
EBITDA	81.1	78.2	66.0
as % of sales	6.1%	5.9%	6.4%
REBIT	50.8	47.9	41.1
as % of sales	3.9%	3.6%	4.0%
EBIT	39.7	36.8	33.0
as % of sales	3.0%	2.8%	3.2%
Financial result	( 14.3)	( 14.8)	( 11.6)
Income taxes	( 7.8)	( 6.7)	( 6.0)
Result of the period (share of the Group)	17.6	15.4	15.4
Total Equity	260.6	241.1	241.1
Net financial debt	172.6	172.6	137.7
Gearing ratio	66%	72%	57%

The main changes on Recticel's 2012 consolidated financial statement are as follows:

(1) Restated due to the amended standard IAS19 -Employee Benefits (cfr. also press release dd 30 August 2013 on 1H 2013 results).

(2) Restated due to the amended standard IAS19 –Employee Benefits (cfr. also press release dd 30 August 2013 on 1H 2013 results)- and the early adoption of the standard IFRS 11 – Joint Arrangements.

***

ANNEXES

1. Consolidated income statement

	FY2012 as published on	FY2012 restated for	FY2012 restated for IAS
in million EUR	01 March 2013	IAS 19R (1)	19R and IFRS 11 (2)
Sales	1 319,5	1 319,5	1 035,1
Distribution costs	( 65,8)	( 65,8)	( 54,5)
Cost of sales	(1 042,7)	(1 042,7)	( 809,9)
Gross profit	211,0	211,0	170,7
General and administrative expenses	( 83,7)	( 83,7)	( 66,8)
Sales and marketing expenses	( 74,8)	( 74,8)	( 65,8)
Research and development expenses	( 14,9)	( 14,9)	( 12,9)
Impairments	( 1,6)	( 1,6)	( 1,1)
Other operating revenues (1)	15,3	15,3	14,7
Other operating expenses (2)	( 12,2)	( 15,2)	( 11,9)
Other operating result (1)+(2)	3,0	0,1	2,9
Income from associates / joint ventures	0,7	0,7	6,0
EBIT	39,7	36,8	33,0
Interest income	0,4	0,4	1,0
Interest expenses	( 12,3)	( 12,3)	( 10,3)
Other financial income	15,1	12,7	8,8
Other financial expenses	( 17,6)	( 15,6)	( 11,1)
Financial result	( 14,3)	( 14,8)	( 11,6)
Result of the period before taxes	25,4	22,0	21,4
Income taxes	( 7,8)	( 6,6)	( 6,0)
Result of the period after taxes	17,6	15,4	15,4
of which share of the Group	17,6	15,4	15,4
of which attributable to non-controlling interests	( 0,0)	( 0,0)	0,0

2. Consolidated comprehensive income

in million EUR	FY2012 as published on 01 March 2013	FY2012 restated for IAS 19R (1)	FY2012 restated for IAS 19R and IFRS 11 (2)
Result of the period after taxes	17,6	15,4	15,4
Other comprehensive income
Hedging reserves	( 1,4)	( 1,4)	( 1,4)
Currency translation differences	2,9	2,9	2,9
Deferred taxes on hedging reserves	0,5	0,5	0,5
Other comprehensive income net of tax	2,0	2,0	2,0
Total comprehensive income for the period	19,6	17,3	17,3
Total comprehensive income for the period	19,6	17,3	17,3
of which share of the Group	19,6	17,3	17,3
of which attributable to non-controlling interests	0,0	0,0	0,0

3. Consolidated balance sheet

in million EUR	31 Dec 2012 as published 01 March 2013	31 Dec 2012 restated for IAS 19R (1)	31 Dec 2012 restated for IAS 19R and IFRS 11 (2)
Intangible assets	13,0	13,0	11,1
Goodwill	35,0	35,0	25,1
Property, plant & equipment	270,9	270,9	219,2
Investment property	4,5	4,5	4,5
Interest in associates / joint ventures	13,8	13,8	69,1
Other financial investments and available for sale investments	0,4	0,4	0,3
Non-current receivables	7,7	7,7	10,2
Deferred tax	45,5	50,0	49,5
Non-current assets	390,7	395,2	389,0
Inventories and contracts in progress	116,6	116,6	91,0
Trade receivables	114,5	114,5	78,4
Other current assets	52,5	52,5	60,3
Cash and cash equivalents	27,1	27,1	18,6
Current assets	310,7	310,7	248,2
TOTAL ASSETS	701,4	705,9	637,3

in million EUR	31 Dec 2012 as published on 01 March 2013	31 Dec 2012 restated for IAS 19R (1)	31 Dec 2012 restated for IAS 19R and IFRS 11 (2)
Equity (share of the Group)	260.6	241.1	241.1
Non-controlling interests	0.0	0.0	0.0
Total equity	260.6	241.1	241.1
Pensions and other provisions	37.8	62.0	54.0
Deferred tax	8.6	8.4	7.3
Interest-bearing borrowings	142.5	142.5	120.5
Other amounts payable	0.5	0.5	0.7
Non-current liabilities	189.4	213.4	182.4
Pensions and other provisions	3.1	3.1	2.7
Interest-bearing borrowings	57.8	57.8	36.5
Trade payables	105.0	105.0	86.1
Income tax payables	2.3	2.3	2.1
Other amounts payable	83.2	83.2	86.5
Current liabilities	251.4	251.4	213.8
TOTAL LIABILITIES	701.4	705.9	637.3

in million EUR	31 Dec 2012 as published on 01 March 2013	31 Dec 2012 restated for IAS 19R (1)	31 Dec 2012 restated for IAS 19R and IFRS 11 (2)
Net financial debt	172.6	172.6	137.7
Net financial debt / Equity (non-controlling interests included) Equity (non-controlling interests included) / Total assets	66% 37%	72% 34%	57% 38%

(1) Restated due to the amended standard IAS19 -Employee Benefits (cfr. also press release dd 30 August 2013 on 1H 2013 results). IAS 19 results in a restatement of the 2012 net pension liabilities. The "corridor" method, which allowed to defer the recognition of the expenses over multiple accounting periods, will no longer be used. The new IAS 19 standard has an impact on the total equity per 31 December 2012 of EUR -19.5 million from EUR 260.6 million to EUR 241.1 million, and on the result of the period after taxes of EUR -2.2 million.

(2) Restated due to the amended standard IAS19 -Employee Benefits (cfr. also press release dd 30 August 2013 on 1H 2013 results)- and the early adoption of the standard IFRS 11 – Joint Arrangements.

The Auditor's assurance report on Compilation of the Pro Forma Consolidated Balance Sheet and Income Statement as of 31 December 2012 on the Basis of the Early Application of the New Accounting Standards IFRS 11 "Joint Arrangements" can be freely consulted on www.recticel.com.

Financial calendar

Third quarter 2013 trading update	31.10.2013 (before opening of the stock exchange)
FY2013 Results	28.02.2014 (before opening of the stock exchange)
First quarter 2014 trading update	07.05.2014 (before opening of the stock exchange)
Annual General Meeting	27.05.2014 (at 10:00 AM CET)
First half-year 2014 results	29.08.2014 (before opening of the stock exchange)
Third quarter 2014 trading update	31.10.2014 (before opening of the stock exchange)

For additional information

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

Mr Jan De Moor Mr Michel De Smedt Mobile: +32 475 42 78 26 Mobile: +32 479 91 11 38 Tel: +32 2 775 18 95

PRESS INVESTOR RELATIONS

demoor.jan@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 has 103 establishments in 28 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.). Within the Insulation sub-segment high-quality thermal insulation products are marketed under the well-known brands Eurowall®, Powerroof®, Powerdeck® and Powerwall®.

Recticel is driven by technological progress and innovation, which has led to a revolutionary breakthrough at the biggest names in the car industry.

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

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