Recticel N.V./S.A. Business Report FY2011

Business Highlights

Financial Overview

(in million euros)

	FY2011	FY2010	Rate of change (%)	Factors
Overall
Sales	1,378.1	1,348.4	2.2	-
EBITDA	88.8	83.5	6.3	-
Automotive
Sales	324.8	324.9	0.03	1)
EBITDA	24.4	26.9	(9.3)	-

Factors
1) Automotive Division
-Sales in Automotive division in 2011 slightly increased by 0.03% to 324.8 million euro year-on-year. The lower volumes in the sub-segment "Interior" were fully compensated by higher sales in "Seating".

-Sales in "Interior" decreased slightly by 3.6% to 164.1 million euro year-on-year. The premium car market segment remained strong in Europe, the USA and in China.

-Sales in "Seating (Proseat)" increased by 7.6% to 147.0 million euro year-on-year, as a result of improving market share and the launch of the EPP (Expanded PolyPropylene) projects in its French site of Trilport.

-Sales in "Exterior" decreased by 24.5% to 13.7 million euro year-on-year. Since the sale of the compounding activities to BASF in 2008, sales are limited to compounds produced for the account of BASF under a toll agreement.

Contracts

-The Company won the supply agreement to supply dashboard skins of the new Mercedes-Benz "E-Class" for the Chinese market. These dashboard skins will be manufactured in China with patented Colo-Fast spray technology. Between end-2012 and 2016, in total about 255,000 skins will be produced.

-The Company will continue to produce the Colo-Fast dashboard skins and door panel skins for the current Mercedes "C-Class" until 2014.

-The Company was nominated for the production of the dashboard skins of the new Porsche "Cajun". These dashboard skins will be manufactured with patented Colo-Sense Spray technology. Start of production is scheduled for end-2013.

Plant Closure

-Proseat GmbH + Co. KG of Germany, a joint venture of the Company and Woodbridge Foam Corporation, announced its intention to close the plant in Hulshout, Belgian for the poor financial results for 2010. The plant manufactures foam cushions, supplying them to the two auto manufacturers in the region, namely GM in Antwerp and Ford in Genk. However, the former closed its doors and the latter has put its entire production of car seats, including the production of foam cushions, into the hands of Lear Corporation. (From a press release on January 14, 2011)