Recticel : FIRST HALF-YEAR 2018 RESULTS

PRESS RELEASE

Regulated information

Brussels, 29 August 2018-07:00 CET

FIRST HALF-YEAR 2018 RESULTS

• Combinedasales growth of +4.0% despite an adverse currency impact of -1.2%

• Combined REBITDA: EUR 56.2 million (+12.1%)

• Result of the period (share of the Group): from EUR 14.3 million to EUR 18.7 million (+30.7%)

• Combined net financial debt: EUR 138.7 million

Olivier Chapelle (CEO): "We are satisfied with the overall 4.0% sales growth generated during the 1sthalf of 2018, amid challenging market conditions in the comfort and bedding markets, and despite a -1.2% adverse currency environment.

Our combined REBITDA margin further improves from 6.9% to 7.4%, thanks to the dedication of our teams to mitigate the effects of historically high raw material prices during 1stquarter and of adverse currency evolutions.

Going forward, we remain concentrated on three axes to create the conditions for future growth:

• (i) Geographic expansion: the converting units for Technical Foams in China and Morocco have started up during the 2ndquarter, and the new Insulation production plant in Finland will start up as planned at the beginning of the 4thquarter.

• (ii) Product innovations are being introduced in Bedding, Automotive Interiors and Technical Foams.

• (iii) External growth opportunities, mainly focussed on Insulation.

Regarding our decision to divest our Automotive divisions, we confirm that the processes engaged during the 1stquarter are on-going, and so far progressing according to plan.

OUTLOOK

For the full-year 2018 the Group expects continued growth of its combined sales and REBITDA thanks to a combination of volume growth, improved mix and efficiency gains.

All comparisons are made with the comparable period of 2017, unless mentioned otherwise.The figures mentioned have been subject to anauditor's review.

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.

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

Press release-First half-year 2018 Results-29 August 2018-07:00 CET

KEY FIGURES

1.1. CONSOLIDATED DATA

• Sales: from EUR 566.0 million to EUR 579.7 million (+2.4%), including an adverse currency

  effect of EUR -7.0 million (-1.3%)

• EBITDA: from EUR 35.4 million to EUR 45.4 million (+28.1%)

• EBIT: from EUR 20.6 million to EUR 29.1 million (+41.5%)

• Result of the period (share of the Group): from EUR 14.3 million to EUR 18.7 million (+30.7%)

• Net financial debt4: EUR 104.3 million per 30 June 2018 (30 June 2017: EUR 117.5 million; 31

  December 2017: EUR 87.1 million)

in million EUR 1H2017 1H20181 (a) (b)D(b)/(a)-1
SalesGross profit2	566,081,1	579,7102,2	2,4%26,0%
as % of sales	14,3%	17,6%
EBITDA	35,4	45,4	28,1%
as % of sales	6,3%	7,8%
EBIT	20,6	29,1	41,5%
as % of sales	3,6%	5,0%
Result of the period (share of the Group) Result of the period (share of the Group) - base (per share, in EUR)	14,3 0,27	18,7 0,34	30,7% 29,4%
31 Dec 17 30 Jun 18
Total Equity3 Net financial debt4 Gearing ratio(Net financial debt4/Total Equity)	261,887,133,3%	254,7104,341,0%	-2,7%19,7%

• 1 The consolidated financial statements of 1H2018 include the impact of IFRS 15.

• 2 The gross profit of 1H2018 includes EUR -0.8 million (1H2017: EUR -17.0 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).

  For consistency reasons a reclassification has been recorded in 1H2017 between 'Cost of sales' and 'General and administrative expenses' for an amount of EUR 9.9 million.

• 3 Total equity 30 June 2018: cfr appendix 6

• 4 Excluding the drawn amounts under off-balance non-recourse factoring/forfeiting programs: EUR 62.3 million per 30 June 2018 versus EUR 70.8 million per 30 June 2017 and EUR 54.7 million per 31 December 2017.

1.2. COMBINED DATA

• Sales: from EUR 726.8 million to EUR 755.9 million (+4.0%) including currency effect (-1.2%)

• REBITDA: from EUR 50.1 million to EUR 56.2 million (+12.1%)

• EBITDA: from EUR 41.0 million to EUR 51.6 million (+25.7%)

• EBIT: from EUR 22.2 million to EUR 31.0 million (+39.4%)

• Result of the period (share of the Group): from EUR 14.3 million to EUR 18.7 million (+30.7%)

• Net financial debt4: EUR 138.7 million (30 June 2017: EUR 151.4 million; 31 December 2017:

  EUR 122.9 million)

in million EUR 1H2017 1H20181 (a) (b)D(b)/(a)-1
SalesGross profit ²as % of sales	726,8100,213,8%	755,9122,416,2%	4,0%22,1%
REBITDAas % of salesEBITDAas % of sales	50,16,9%41,05,6%	56,27,4%51,66,8%	12,1% 25,7%
REBITas % of salesEBITas % of sales	31,34,3%22,23,1%	36,24,8%31,04,1%	15,5% 39,4%
31 Dec 17 30 Jun 18
Total Equity3	261,8	254,7	-2,7%
Net financial debt4 122,9		138,7	12,9%
Gearing ratio(Net financial debt4/Total Equity)	46,9%	54,5%

• 1 The combined financial statements of 1H2018 include the impact of IFRS 15.

• 2 The gross profit 1H2018 includes EUR -0.8 million (1H2017: EUR -17.0 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).

• 3 Total equity 30 June 2018: cfr appendix 6

• 4 Excluding the drawn amounts under off-balance non-recourse factoring/forfeiting programs: EUR 62.3 million per 30 June 2018 versus EUR 70.8 million per 30 June 2017 and EUR 54.7 million per 31 December 2017.

COMMENTS ON THE GROUP RESULTS

Detailed comments on sales and results of the different segments are given in chapter 4 on the basis of the combined figures (joint ventures integrated following the proportionate consolidation method).

There were no changes in the scope of consolidation in 1H2018.

Combined Sales:from EUR 726.8 million toEUR 755.9 million (+4.0%), including an

adverse currency impact of -1.2% due to the depreciation of most currencies versus the Euro.

All divisions reported higher sales during 1H2018, except Bedding.

• - Flexible Foams sales growth results mostly from pricing adjustments linked to the increased chemical raw material costs.

• - Bedding sales contracted by -9.9% in unfavourable market conditions.

• - The Automotive divisions reported higher sales driven by strong volumes.

• - Insulation activities have grown by 7.0% in the 2ndquarter after a soft 1stquarter, impacted by unfavourable weather conditions and by the consequences of the MDI shortage in 2017.

Breakdown of thecombinedsales by segment

in million EUR	1Q2017 2Q2017 1H2017 1Q2018 2Q2018 1H2018 D1QD2QD1H
Flexible Foams Bedding Insulation Automotive Eliminations	160,6 157,0 75,0 63,3 61,3 67,9 84,6 88,8 ( 16,3) ( 15,4)	317,5 138,3 129,2 173,5 ( 31,7)	170,9 70,7 60,1 95,5 ( 15,0)	159,7 54,0 72,6 100,1 ( 12,6)	330,6 124,6 132,7 195,6 ( 27,6)	6,4% 1,8% 4,1% -5,8% -14,8% -9,9% -2,0% 7,0% 2,7% 12,8% 12,7% 12,8% -7,6% -18,6% -13,0%
TOTAL COMBINED SALES 365,3 361,5 726,8 382,0 373,9 755,9 4,6% 3,4% 4,0%
Adjustment for joint ventures by application of IFRS 11	( 83,4) ( 77,4)	( 160,8)	( 90,8)	( 85,3)	( 176,2)	8,9% 10,2% 9,6%
TOTAL CONSOLIDATED SALES 281,9 284,1 566,0 291,2 288,5 579,7 3,3% 1,5% 2,4%

Combined REBITDA: from EUR 50.1 million toEUR 56.2 million (+12.1%)

REBITDA margin increased from 6.9% to 7.4%.

The REBITDA improvement is driven by Insulation and Automotive. Flexible Foams to some extent, and Bedding to a larger extent, have been impacted by (i) a softer market environment, especially in Germany, and (ii) by substantial raw material price increases during 1Q2018.

Breakdown of thecombinedREBITDA by segment

in million EUR	1H2017 1H2018 D
Flexible Foams Bedding Insulation Automotive Corporate	23,3 7,7 14,2 13,5 ( 8,6)	21,6 5,4 22,8 14,7 ( 8,4)	-7,2% -29,9% 60,5% 9,0% -2,7%
TOTAL COMBINED REBITDA 50,1 56,2 12,1%

• -Flexible Foamscontinued to implement its operational efficiency and mix improvement plan, and almost mitigated the effects of the 1Q2018 raw material price increases combined with soft volumes in its Comfort foam segment.

• -Beddingvolumes have been affected by the weak market conditions, especially in Germany, its largest market, which could not be fully compensated by significant efficiency & mix improvements.

• - Profitability inInsulationimproved thanks to excellent operational efficiency, positive mix and pricing.

• -Automotivebenefited from higher volumes, both in Interiors and Seating, induced by strong market demand and the addition of the new programs in Interiors.

Combined REBIT: from EUR 31.3 million toEUR 36.2 million(+15.5%)

REBIT margin increased from 4.3% to 4.8%.

Breakdown of thecombinedREBIT by segment

in million EUR	1H2017 1H2018 D
Flexible Foams Bedding Insulation Automotive Corporate	17,1 5,4 11,0 7,0 ( 9,1)	15,4 3,2 19,6 6,7 ( 8,7)	-9,9% -40,9% 79,0% -4,2% -4,2%
TOTAL COMBINED REBIT 31,3 36,2 15,5%