Recticel Strategy and Trading Update
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Recticel Strategy and Trading Update

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CONTENT OF THIS PRESENTATION
1. Reminder of Recticel Strategy
2. Strategic Actions
3. 9M2012 Trading Update
4. Highlights per Segment
5. Miscellaneous
6. Outlook FY2012

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  • 1. RECTICEL STRATEGY & TRADING UPDATE KBC Small Cap ConferenceBrussels, 11 December 2012Jean-Pierre Mellen – CFO RecticelMichel De Smedt – IRO Recticel
  • 2. Reminder of Recticel strategy:1 Portfolio strategy – Internationalization - Simplification2 Strategic actions3 9M2012 Trading Update4 Highlights per segment5 Miscellaneous6 Outlook FY2012 11 Dec 2012 KBC Small Cap Conference 2
  • 3. REMINDER OF RECTICEL STRATEGY► Recticel will pursue polyurethane applications, strive for growth via innovation and new product introduction, allocate resources on highest growth segments, develop on a broader international basis, improve capacity utilization and reduce complexity :  Focus Insulation on Europe and organic growth through innovation, new product introduction, complemented by acquisitions  Bedding : organic growth and acquisitions  Rationalize and modernize Flexible Foams and seize selective growth area  Automotive : minimize investment, optimize capacity utilization while pursuing innovative product development 11 Dec 2012 KBC Small Cap Conference 3
  • 4. REMINDER OF RECTICEL STRATEGY► Financial objectives:  Achieve a CAGR of its sales turnover of minimum 5%, at same scope of consolidation  Generate double-digit growth in earnings and dividends  Deliver a ROCE (EBIT / Average capital employed) of at least 15%.  Lower the gearing ratio (Net Financial Debt/Equity) under 50% 11 Dec 2012 KBC Small Cap Conference 4
  • 5. REMINDER OF RECTICEL STRATEGY► 9-box grid: Portfolio strategy► Positive contribution of PU to global megatrends such as:  Energy conservation and environmental protection  Food & water supply due to demographic developments  Comfort, acoustics, luxury  Need for strong and lightweight materials 11 Dec 2012 KBC Small Cap Conference 5
  • 6. Reminder of Recticel strategy:1 Portfolio strategy – Internationalization - Simplification2 Strategic actions3 9M2012 Trading Update4 Highlights per segment5 Miscellaneous6 Outlook FY2012 11 Dec 2012 KBC Small Cap Conference 6
  • 7. STRATEGIC ACTIONS► Greenfield Insulation Plant in Bourges  Lean plant  Limited product range aiming at French market  Lower logistics costs  Investment : EUR 23 million  Capacity : 400,000 m³/year  Start of production : Sept 2012 → full capacity 2014 11 Dec 2012 KBC Small Cap Conference 7
  • 8. STRATEGIC ACTIONS► External Insulation for Renovation - ISOFINISH  Innovative concept • continuous insulation shield • adjustable external wall system • freedom of wall finishing 11 Dec 2012 KBC Small Cap Conference 8
  • 9. STRATEGIC ACTIONS ► External Insulation for Renovation – ETICS ETICS = External Thermal Insulation Composite System Step 3: Step 1:Base coat Supporting wallwith mesh Step 2: Mounting & fixing insulation Eurothane EW PIR + special glassfleece 600x1200x100mm Step 4: Straight edgesFinishing coat 11 Dec 2012 KBC Small Cap Conference 9
  • 10. STRATEGIC ACTIONS► Geltex : New Comfort Foam for Bedding New generation of foam developed by Recticel  Optimal pressure distribution  Maximum open celled  Market introduction in Jan-2012► ZNOOOZ® : trial for specific own-developed retail distribution concept in Belgium 11 Dec 2012 KBC Small Cap Conference 10
  • 11. STRATEGIC ACTIONS► International Expansion China : - Automotive Interiors (3 plants) : Ningbo, Shengyang, Beijing → Growing with BMW, Volvo, Daimler and VW - Flexible Foams (1 plant): Shanghaï. 2nd plant likely in 2013 in Chenzen →Technical - fast growing India : - Flexible Foams (1 plant): Mumbai. 2nd plant likely in 2013 in Bangalore → Technical/Acoustics - growing Turkey : - Flexible Foams (1 plant) : Istanbul → Technical/Acoustics - Fast growing USA : - Automotive Interiors (2plants) : Declining - Flexible Foams (2 plants) : New Jersey, California → Acoustics - fast growing – expansion under consideration Brazil : - Flexible Foams → JV under consideration Russia : - Insulation → JV under consideration 11 Dec 2012 KBC Small Cap Conference 11
  • 12. STRATEGIC ACTIONS► Simplification 2009 2012 # Segments 5 5 # Joint ventures 11/11 5/8 (T1/T2) # Plants 124 103 # Employees 9,883 < 8,000 11 Dec 2012 KBC Small Cap Conference 12
  • 13. STRATEGIC ACTIONS► Management Committee : renewed at 50% Recticel Board of Directors Remuneration and Nomination Chairman Audit Committee Committee Etienne DAVIGNON Chief Executive Officer Olivier CHAPELLE Chief Financial Officer IT & Business Support Manager Jean-Pierre MELLEN Betty BOGAERT Chief Procurement Officer IDC Manager François PETIT (started 2/5/11) Bart WALLAEYS Corporate General Counsel & General Secretary Internal Auditor Dirk VERBRUGGEN (as from 1/1/13) Patrick MICHALAK (started 1/3/12) Group Human Resources & Chief Sustainability Officer Corporate Communications Manager Jean-Pierre DE KESEL (as from 1/11/12) Jan DE MOOR Group General Manager Group General Manager Group General Manager Group General Manager Flexible Foams Automotive Bedding Insulation Rik DE VOS (started 1/9/11) Marc CLOCKAERTS Philipp BURGTORF (started 3/9/12) Paul WERBROUCK 11 Dec 2012 KBC Small Cap Conference 13
  • 14. STRATEGIC ACTIONS► Refinancing  Decision to refinance early made in May 2011 due to expected reduced credit availability  Refinancing announced in December 2011: new club deal of EUR 175 million maturing in Dec 2016 : • for 15 months, Recticel accepts higher margin and financial costs • but assures the long term financing of the company  Elimination of financing risk 11 Dec 2012 KBC Small Cap Conference 14
  • 15. STRATEGIC ACTIONS► Other financials 11 Dec 2012 KBC Small Cap Conference 15
  • 16. Reminder of Recticel strategy:1 Portfolio strategy – Internationalization - Simplification2 Strategic actions3 9M2012 Trading Update4 Highlights per segment5 Miscellaneous6 Outlook FY2012 11 Dec 2012 KBC Small Cap Conference 16
  • 17. 9M2012 TRADING UPDATE y/y: -1.3% y/y: -10.1% Automotive► Net Sales: 22.8% Flexible Foams  From EUR 1 036.4M to EUR 996.6M (-3.8%) Insulation 42.9% • 1Q/12: from EUR 359.6M to EUR 351.1M (-2.4%) y/y: 2.8% 15.5% • 2Q/12: from EUR 340.1M to EUR 329.1M (-3.2%) Bedding 18.9% • 3Q/12: from EUR 336.6M to EUR 316.4M (-6.0%)► YTD Sept/2012: All business lines y/y: -7.6% recorded lower sales, except Insulation.► Overall softer demand in most markets. Q3/2011 Q3/2012 D in million EUR YTD Sep/2011 YTD Sep/2012 D 147,3 140,1 -4,9% Flexible Foams 449,5 443,7 -1,3% 76,8 68,2 -11,2% Bedding 218,4 201,8 -7,6% 54,8 58,5 6,8% Insulation 163,4 168,0 2,8% 74,3 62,8 -15,4% Automotive 249,4 224,2 -10,1% ( 16,6) ( 13,3) -20,0% Eliminations ( 44,4) ( 41,1) -7,5% 336,6 316,4 -6,0% TOTAL 1 036,4 996,6 -3,8%► The impact of lower sales on profitability has been substantially compensated by the effect of cost reductions and efficiency improvements. 11 Dec 2012 KBC Small Cap Conference 17
  • 18. 9M2012 TRADING UPDATE► Financial situation On 30 September 2012, the Group net financial debt amounted to EUR 176.7 million excluding the drawn amounts under off-balance non-recourse factoring/forfeiting programs of EUR 43.1 million; compared to respectively EUR 191.8 million and EUR 47.6 million on 30 September 2011; and EUR 179.0 million and EUR 49.4 million on 30 June 2012.► Status Shareholders’ Agreement Recticel has been informed by the shareholders group around Compagnie du Bois Sauvage, that they have formally ended their cooperation with effect as from 6 November 2012. They accordingly no longer act in mutual understanding as mentioned in the annual report and subsequent notifications. This has no influence on the shareholding of Compagnie du Bois Sauvage, which still holds 29.98% of the Recticel shares. 11 Dec 2012 KBC Small Cap Conference 18
  • 19. Reminder of Recticel strategy:1 Portfolio strategy – Internationalization - Simplification2 Strategic actions3 9M2012 Trading Update4 Highlights per segment5 Miscellaneous6 Outlook FY2012 11 Dec 2012 KBC Small Cap Conference 19
  • 20. in million EUR 1H/2011 1H/2012 D► Key events 9M2012 Sales 108,6 109,5 0,8% REBITDA 18,2 18,8 3,4%  Sales from EUR 163.4M to EUR 168.0M (+2.8%) as % of sales 16,7% 17,2%  1Q2012: from EUR 48.4M to EUR 53.0M (+9.5%) EBITDA 18,2 18,8 3,4% as % of sales 16,7% 17,2%  2Q2012: from EUR 60.3M to EUR 56.5M (-6.2%) REBIT 16,4 16,8 2,3% as % of sales 15,1% 15,3%  3Q2012: from EUR 54.8M to EUR 58.5M (+6.8%) EBIT 16,4 16,8 2,3% as % of sales 15,1% 15,3% Sales Insulation (2010-2012) 70 60 ► Building Insulation (9M/2012: EUR 155.8M, 50 +2.8%) in million EUR Industrial  Increasingly difficult European construction market 40 7%  Structural demand for high performing polyurethane 30 building insulation products remains high as a result of stricter insulation standards and regulations, higher 20 energy prices and growing awareness of the need for Building more and better insulation. 10 93%  New factory in Bourges (France) operational since end- 00 October 2012. 1Q 2Q 3Q 4Q ► Industrial Insulation (9M/2012: EUR 12.2M, +2.2%) 2010 2011 2012 11 Dec 2012 KBC Small Cap Conference 20
  • 21. in million EUR 1H/2011 1H/2012 D► Key events 9M2012 Sales 141,6 133,6 -5,6% REBITDA 7,7 4,6 -39,9%  Sales from EUR 218,4M to EUR 201.8M (-7.6%) as % of sales 5,4% 3,5% • 1Q2012: from EUR 78.9M to EUR 73.6M (-6.7%) EBITDA as % of sales 7,5 5,3% 4,0 3,0% -46,5% • 2Q2012: from EUR 62.7M to EUR 60.0M (-4.3%) REBIT 4,7 1,9 -60,2% • 3Q2012: from EUR 76.8M to EUR 68.2M (-11.2%) as % of sales EBIT 3,3% 4,5 1,4% 1,2 -72,4% as % of sales 3,2% 0,9% Sales Bedding (2010-2012) 80 70 ► Lower sales in the ‘Brand’ sub-segment 60 (9M/2012: -7.4%) as well as in ‘Private in million EUR 50 label’ sub-segment (9M/2012: -8.0%) 40 Private Brands ► Activity suffered from a globally 30 Label 54% weakening consumer confidence in 20 46% Western Europe and lower shop visit 10 rates 00 1Q 2Q 3Q 4Q ► Appointment of new Group General Manager Bedding since Sept 2012 2010 2011 2012 11 Dec 2012 KBC Small Cap Conference 21
  • 22. in million EUR 1H/2011 1H/2012 D► Key events 9M2012 Sales 302,2 303,5 0,4% REBITDA 13,5 17,2 27,4%  Sales from EUR 449.5M to EUR 443.7M (-1.3%) as % of sales 4,5% 5,7% • 1Q2012: from EUR 159,8M to EUR 157.4M (-1.5%) EBITDA as % of sales 14,0 4,6% 14,8 4,9% 5,8% • 2Q2012: from EUR 142,4M to EUR 146.1M (+2.6%) REBIT 6,7 10,6 59,1% • 3Q2012: from EUR 147,3M to EUR 140.1M (-4.9%) as % of sales EBIT 2,2% 7,1 3,5% 7,7 7,9% as % of sales 2,4% 2,5% Sales Flexible Foams (2010-2012) 165 160 ► Comfort (9M/2012: EUR 270.8M, -1.0%) 155  In most markets sales stabilized, except in in million EUR 150 Composite Scandinavia, Spain and Benelux Foams  Signs of slowdown became tangible in CEE countries 145 4% Technical ► Technical foams (9M/2012: EUR 155,8M, -1.5%) 140 Foams Comfort 35% 61%  Suffered from the lower demand from various 135 industrial and automotive markets, especially in Spain, France and Italy 130  Strong growth in Turkey, USA and China partially 125 compensated for the negative trend in Europe 1Q 2Q 3Q 4Q ► Composite foams (9M/2012: EUR 17.2M, -4.6%) 2010 2011 2012 11 Dec 2012 KBC Small Cap Conference 22
  • 23. in million EUR 1H/2011 1H/2012 D► Key events 9M2012 Sales 175,1 161,3 -7,9% REBITDA 16,3 15,8 -3,0%  Sales from EUR 249.4M to EUR 224.2M (-10.1%) as % of sales 9,3% 9,8% • 1Q2012: from EUR 88.1M to EUR 82.4M (-6.5%) EBITDA as % of sales 15,7 9,0% 14,3 8,9% -8,9% • 2Q2012: from EUR 87.0M to EUR 78.9M (-9.2%) REBIT 7,0 7,8 12,4% • 3Q2012: from EUR 74,3M to EUR 62.8M (-15.4%) as % of sales EBIT 4,0% 6,3 4,9% 6,3 1,1% as % of sales 3,6% 3,9% Sales Automotive (2010-2012) 100 90 ► Interiors (9M/2012: EUR 111.4M, -12.5%) 80  Decrease due to the anticipated phase-out of in million EUR 70 Exteriors some contracts, mainly in the USA 60 4%  Interiors sub-segment resisted better than the 50 market, because it supplies the premium car 40 Seating segment which remained more resilient thanks to 46% Interiors the German and Asian demand 30 50% 20 ► Seating (Proseat – 51/49 JV) (9M/2012: 10 EUR 104.0.2M, -7.2%). 00  Sales fell in line with the general automotive 1Q 2Q 3Q 4Q market ► Exteriors (9M/2012: EUR 8.7M, -12.7%) 2010 2011 2012 11 Dec 2012 KBC Small Cap Conference 23
  • 24. Reminder of Recticel strategy:1 Portfolio strategy – Internationalization - Simplification2 Strategic actions3 9M2012 Trading Update4 Highlights per segment5 Miscellaneous6 Outlook FY2012 11 Dec 2012 KBC Small Cap Conference 24
  • 25. MISCELLANEOUS► Contingent assets & liabilities  Inspection by the Directorate for Competition of the EC • No further developments to be reported  Inspection by the German Federal Cartel Office (“Bundeskartellamt”) • No further developments to be reported 11 Dec 2012 KBC Small Cap Conference 25
  • 26. OUTLOOK 2012► Given the increasingly challenging and uncertain environment in the economies in which Recticel operates, the Board of Directors reiterates that it is not in a position to assess the growth potential for the remainder of 2012.► In this environment the Group continues to act in order to streamline operations and reduce complexity. These actions are generating the expected contribution to recurring results.► The Group will continue to focus on the execution of its strategic plan 2010-2015 and the realization of its corporate objectives, which remain unchanged. 11 Dec 2012 KBC Small Cap Conference 26
  • 27. Thank you for your attention ! Questions & Answers11 Dec 2012 KBC Small Cap Conference 27
  • 28. CONTACTS Investor Relations Michel De Smedt Press Jan De MoorRecticel International Headquarters Email: desmedt.michel@recticel.com Email: demoor.jan@recticel.com2, avenue des Olympiades/Olympiadenlaan, 2 Tel: +32 (0)2 775 18 09 Tel: +32 (0)2 775 18 95B-1140 Brussels Mob: +2 (0) 479 91 11 38 Mob: +2 (0) 475 42 78 26Tel: +32 (0)2 775 18 11 Fax: +32 (0)2 775 19 90 Fax: +32 (0)2 775 19 90Fax: +32 (0)2 775 19 90 Financial calendar Annual results 2012 01.03.2013 (before opening of the stock exchange) First quarter 2013 trading update 07.05.2013 (before opening of the stock exchange) Annual General Meeting 28.05.2013 (at 10:00 AM CET) First half-year 2013 results 30.08.2013 (before opening of the stock exchange) Third quarter trading update 2013 31.10.2013 (before opening of the stock exchange) For more product information or direct business contacts, please consult our web site www.recticel.com, where interested parties can also find our press releases and slide presentations of our annual or half year results.Customers, suppliers, shareholders, investors and all other stakeholders and interested parties who wish to receive Recticel’s annualreport and/or its regular press releases, are invited to subscribe to Recticel’s email alert on the above web site address. This service is freeof charge. 11 Dec 2012 KBC Small Cap Conference 28