Financial Overview

(in million EUR)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	Rate of change (%)	Factors
Overall
Sales	976.8	1,035.1	(5.6)	-
EBITDA	13.6	66.0	(79.4)	-
Automotive
Sales	258.4	289.7	(10.8)	1)
EBITDA	10.4	22.6	(54.0)	-

Factors
1) Automotive
-Sales decreased by 10.8% year-on-year.

-New car registration in EU automotive market is stabilizing after 6 years of decline, while exports to other regions remained strong.

Sales structure of Automotive division

	(%)
Interiors	42.9
Seating	52.9
Exteriors	4.2

-Sales in "Interiors" decreased by 21.0% year-on-year. This drop was expected as some programs, mainly in the USA, were phasing-out. In contrast, the volumes in China grew significantly due to the start-up of the Beijing plant (Daimler) and higher volumes in the Shenyang plant (BMW).

-Sales in "Seating" decreased by 0.7% year-on-year, performing better than the general automotive market in Europe. Sales comes from Proseat, the 51/49 joint venture from Recticel and Woodbridge.

-Sales in "Exteriors" decreased by 0.7% 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 announced that over the last months in 2013, Its Automotive Interiors division has won several new multi-year contracts for the production of interior trim parts for the BMW "5 series", "Mercedes-Benz E-class", Porsche "Mecan", Volkswagen "Passat" and "Golf Plus", and Volvo "XC90", "S90", and "V90". The new contracts represent estimated cumulative life time sales of EUR 364 million. The trim parts will be produced in existing plants located in China, the Czech Republic and Germany. These contracts covers dashboard, glove box and/or door panel skins, which will be manufactured on the basis of the Colo-Sense Lite spray technology.

-Recent Contracts

Factory	Product	Application	Car maker	Car model	Year of Sale
Ningbo, China	Polyurethane	Instrument panel skin	Volvo	"S60"	2013-2018
Ningbo, China	Light polyurethane	Instrument panel skin	Volkswagen	"Golf A Plus"	2014-2021
Mlada Boleslav, Czech	Light polyurethane	Dash board skin	Volvo	"XC90"	2016-2023
Mlada Boleslav, Czech	Light polyurethane	Glove box skin	Volvo	"XC90"	2016-2023
Mlada Boleslav, Czech	Light polyurethane	Door panel skin	Volvo	"XC90"	2016-2023
-	Polyurethane	Instrument panel skin	BMW	"3 series"	2012
-	Light polyurethane	Door panel skin	BMW	"3 series"	2012
Beijing, China	Polyurethane	Dash board skin	Mercedes-Benz	"E-Class"	2012-2016
-	Polyurethane	Dash board skin	Mercedes-Benz	"C-Class"	-2014
-	Polyurethane	Door panel skin	Mercedes-Benz	"C-Class"	-2014
-	Polyurethane	Dash board skin	Porsche	"Cajun"	2013-

Plant Restructuring

-In January 2013, Recticel Automobilsysteme GmbH, a fully owned subsidiary of the Recticel Group, announced its intention to restructure its production operations in Rheinbreitbach, Germany. This restructuring plan aims to reduce at the Rheinbreitbach plant over the period 2014-2015 by about 150 jobs on a total of 178. Recticel announced in December 2011, that its Automotive Interiors division had not been nominated for the production of interior components for the new "Mercedes C-class". The production of interior components for the current "Mercedes C-Class" will therefore end in 2015; hence the need for restructuring.

-Nov., 2012: Clarkson factory (U.S., Michigan) of Interior division was closed.
-Apr., 2012: Unterriexingen factory (Germany) of Interior division was closed.
-Feb., 2012: Beijing factory (China) of Interior division was opened.

2010-2015 Strategy plan

1) A strict prioritization of the allocation of its resources to its portfolio of business
2) A continuous effort to streamline operations and reduce complexity
3) Geographical diversification to reduce dependency on Europe
4) Introduction of new innovative solutions

R&D Expenditure

(in million EUR)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012
Overall	13.0	14.1
% of Sales	1.3	1.4

R&D Structure

-The Company has an International Development Center (IDC) in Wetteren, Belgium. In Feb. 2013, new state-of-the-art research and test labs opened on the same site.

R&D Activities

-The Company puts high priority on the R&D of weight reduction of mold skin and the use of renewable raw materials from natural and / or recycled resources.

Product Development

Interior skin
-The Colo-Sense Lite, a high performance skin marketed as from 2013, enables a weight reduction of 25% with the same quality of soft and pleasant feeling as its predecessor.

Capital Expenditure

(in million EUR)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012
Overall	23.4	44.3
Automotive	9.3	6.3