Recticel : Trading update third quarter 2022

PRESS RELEASE

Regulated information - Inside information

Brussels, 28 October 2022 - 07:00 CET

Trading update third quarter 2022

• Third quarter net sales increase from €107.6 million1 in 2021 to €153.5 million (+42.7%) in 2022, of which €51.7 million contribution from Trimo2, a €8.9 million reduction following the phasing out of sales of chemicals to divested Automotive companies and -0.2% currency effect
• Year-to-dateSeptember net sales increase from € 337.2 million1 in 2021 to €427.9 million in 2022 (+26.9%), of which €90.3 million contribution from Trimo2, and a €39.9 million reduction following the phasing out of sales of chemicals to divested Automotive companies and +0.3% currency effect
• Closing of the divestment of Engineered Foams expected at the latest by 1Q2023

Olivier Chapelle (CEO Recticel): "The trends observed during the first half of 2022 have continued in the third quarter. The European construction market is extremely challenging with high inflation and is weakening. During the third quarter volumes have been slightly lower than in 2021. Our teams remain focussed on adapting to the changing environment.

The divestment of Engineered Foams is expected to close at the latest by the first quarter of 2023, following the decision on 2 September 2022 by the Competition and Markets Authority in the UK to fast track the approval process.

Our Insulation business is well positioned to respond to the immense challenges of our society: climate change, energy saving, and regional energy independence. Through innovation, organic growth, and M&A activities, we are dedicated to deliver on our growth promise."

OUTLOOK

In this challenging overall environment, we expect Adjusted Ebitda of our continued business to reach between €60 and €65 million for the full year 2022.

1 As announced in the press release of 10 August 2022, the Engineered Foams activities which are currently in process of being divested to the US-based Carpenter Co., have been accounted for as Discontinued Operations (IFRS 5).

• Trimo d.o.o. is fully consolidated as of 1 May 2022.

Press release - Recticel 3Q2022 Trading Update - 28 October 2022 - 07:00 CET

Net Sales development

3Q2022 sales increased by 42.7% from €107.6 million to €153.5 million, including €51.7 million from the Trimo acquisition, a €8.9 million reduction in sales of chemicals to divested Automotive companies and a -0.2%currency impact.

Demand remained broadly in line with last year, with the exception of demand for Vacuum Insulated Panels used in low temperature transportation of COVID vaccines which decreased substantially, in line with receded COVID-pandemic.

Year-to-dateSeptember 2022 sales increased by 26.9% from €337.2 million to €427.9 million, including the €90.3 million contribution from Trimo, a €39.9 million reduction in sales of chemicals to divested Automotive companies, and a +0.3% currency impact.

FINANCIAL POSITION

in million €	30 SEP 2021	31 DEC 2021	31 MAR 2022	30 JUN 2022	30 SEP 2022
Total Equity	-	391.3	-	417.6	-
Net financial debt excluding factoring	130.3	103.8	92.6	247.6	253.2
+ Lease debt (IFRS 16)	58.7	44.0	37.0	7.3	7.2
Consolidated net financial debt	189.0	147.8	129.6	254.9	260.4
+ Drawn amounts under factoring programs	41.4	25.2	0.0	29.5	17.8
Total consolidated net financial debt	230.4	173.0	129.6	284.4	278.2
Gearing ratio (incl. IFRS 16 )	-	37.8%	-	61.0%	-
Leverage ratio (incl. IFRS 16)	-	1.6	-	1.8	-

The Net financial debt: €278.2 million (31 December 2021: €173.0 million; 30 June 2022: €284.4 million); decreased by €6.2 million over 3Q2022, mainly due to lower net working capital needs.

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Press release - Recticel 3Q2022 Trading Update - 28 October 2022 - 07:00 CET

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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.

About Recticel

Recticel is a Belgian industrial group with a strong European dimension, but also with operations in Asia, Africa and the United States. End 2021, Recticel (including discontinued activities) employed 5,145 people in 53 establishments in 21 countries.

Recticel contributes to daily comfort with an extensive range of polyurethane foam products for industrial and domestic applications, with high performance thermal insulation solutions for the construction industry. Overall focus on industry-leading, customized solutions with a firm basis in sustainable innovation. In this respect, Recticel strives to provide sustainable answers to societal challenges, including climate protection and conservation of resources.

Within Recticel's Insulation boards segment, high-quality thermal insulation products are marketed under well- known brands such as Eurowall®, Powerroof®, Powerdeck®, Powerwall® and Xentro®.

The Insulated panels segment (Trimo) focuses on mid to high-end applications of roof and wall cladding, mostly in the non-residential market, under well-known brands such as Trimoterm, Qbiss One and Qbiss Screen.

Recticel has committed to the SBTi to become a net-zero emission company on Scopes 1 and 2 by 2030 and to reach net-zero on Scope 3 by 2050 at the latest.

In 2021 Recticel achieved consolidated sales of €1,032.8 million.

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

Financial calendar

Annual results 2022 results	28.02.2023 (07:00 AM CET)
First quarter 2023 trading update	28.04.2023 (07:00 AM CET)
Annual General Meeting	30.05.2023 (10:00 AM CET)
First half-year 2023 results	31.08.2023 (07:00 AM CET)
Third quarter 2023 trading update	27.10.2023 (07:00 AM CET)

Media & Investor Relations	Investor Relations
Olivier Chapelle	Dirk Verbruggen
Chief Executive Officer	Chief Financial & Legal Officer
[e-mail]	[e-mail]
[phone]	[phone]
Recticel
avenue du Bourget/Bourgetlaan 42
1130 Brussels - Belgium

The press release is available in English and Dutch on www.recticel.com

Press release - Recticel 3Q2022 Trading Update - 28 October 2022 - 07:00 CET

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