RECYLEX SA: FIRST-HALF 2017 SALES

• Strong growth in consolidated sales (+30%) driven mainly by the increase in lead (+32%) and zinc (+54%) prices by comparison with the first half of 2016
• Good industrial performance despite the impact of the major maintenance shutdowns in the Lead and Zinc segments during the second quarter of 2017

Suresnes, July 27, 2017: the Recylex Group (Euronext Paris: FR0000120388 - RX) has today reported its consolidated sales for the six months to June 30, 2017.
They totaled €218.3 million, up 30% on the level recorded in the first half of 2016 and break down as follows:

Consolidated sales by segment (unaudited IFRS figures):

Yves Roche, Chairman and Chief Executive Officer of the Recylex Group, commented:

"During the first half of 2017, Recylex's performance benefited from the rise in metals prices in Euros above their level in the first half of 2016. Although metals prices underwent a correction in the second quarter of 2017, they currently remain at satisfying levels compared with those of the first half 2016. Nonetheless, the euro is currently at its highest level against the US dollar since May 2016. If this situation persists, it could ultimately affect metals prices in Euros. In this context, our Lead and Zinc segments delivered very strong growth in the first half of 2017. Conversely, business levels remained weak in our Plastics and Special Metals segments. Despite the two major maintenance shutdowns in the Lead and Zinc segments, our industrial performance was very encouraging indeed in the first half of 2017. Lastly, works on the new reduction furnace in Germany continue on schedule."

1. Metal prices¹ in Euros and €/$ exchange rates in the six months to June 30, 2017

 The average lead price in the first half of 2017 was 32% higher than in the first six months of 2016. The average zinc price over the same period was 54% higher than in the first half of 2016. Average metals prices for the six-month period to end-June were as follows:

Since January 2, 2017, lead prices initially moved higher early in the year, before pulling back and then stabilizing. They averaged €2,138 per tonne in the first quarter then €1,963 per tonne in the second quarter of 2017.
After peaking in mid-February 2017, zinc prices experienced a correction in the second quarter of 2017. They averaged €2,610 per tonne in the first quarter then €2,358 per tonne in the second quarter of 2017.

The average €/$ exchange rate declined 3% from 1.1157 in the first half of 2016 to 1.0827 in the first half of 2017. That said, the €/$ exchange rate went up 9% from 1.0465 to 1.1412 between January 2 and June 30, 2017.

¹ Source: London Metal Exchange 2017.

2. Breakdown of consolidated sales to June 30, 2017 relative to June 30, 2016

Consolidated sales in the first six months of 2017 came to €218.3 million, up 30% on the level posted in the first half of 2016.
Restated² consolidated sales for the six months to June 30, 2017 totaled €230.0 million, up 31% compared with the same period of 2016.

• Lead: sales up 27%

During the first half of 2017, Lead sales accounted for 69% of consolidated sales.

Production at the Nordenham smelter totaled 57,358 tonnes in the first half of 2017, up 11% from 52,011 tonnes in the first six months of 2016 despite the scheduled major maintenance shutdown in the second quarter of 2017 (no major maintenance shutdown in 2016).

The segment was boosted by a good level of availability of materials for recycling in the first half of 2017, but in this context the Group strictly pursued its selective purchasing policy. Nonetheless, the segment's performance was affected by the less supportive business environment for the treatment of lead concentrates and for sulfuric acid (a by-product of the smelter).

Supported by these favorable conditions and the surge in lead prices, the segment's first-half 2017 sales totaled €151.4 million, up 27% from their level in the first six months of 2016.

• Zinc: sales up 62%

Zinc sales accounted for 24% of the Group's consolidated total in the first half of 2017.

In the six months to June 30, 2017, they strongly increased, up 62% to €52.4 million compared with the same period of 2016. The segment's restated² sales totaled €64.1 million, up 61% compared with the first half of 2016.

Despite an unfavorable base of comparison owing to the major maintenance shutdown at the Harz-Metall GmbH plant in the second quarter of 2017 (no maintenance shutdown in 2016), the electric arc furnace dust recycling business posted strong sales growth, mainly thanks to the rise in zinc prices. Total Waelz oxide production by the Harz-Metall GmbH subsidiary and (50%-owned) Recytech SA increased to 35,273 tonnes in the first six months of 2017, from 34,884 tonnes in the first half of 2016.

As in the first quarter of 2017, sales generated by the scrap zinc recycling business also recorded a strong improvement thanks to the uptrend in zinc prices, increased availability of materials for recycling and more supportive business conditions. Norzinco GmbH's zinc oxide production rose 7% to 12,564 tonnes in the first half of 2017 from 11,716 tonnes in the equivalent period of 2016.

• Special Metals: sales down 10%

Special Metals sales accounted for 3.5% of the consolidated total in the first half of 2017.

PPM Pure Metals GmbH reported first-half sales of €7.2 million, down 10% on the first half of 2016. The strong decline in germanium and gallium sales was the key factor behind this contraction.

• Plastics: sales down 13%

Plastics sales accounted for 3.5% of the consolidated total in the first six months of 2017.

They totaled €7.3 million, down 13% compared with the first half of 2016. The reduced appeal of recycled materials by comparison with virgin raw materials continued to impact this segment's performance.

The segment's total production dropped 10% to 7,128 tonnes of recycled polypropylene in the first half of 2017 from 7,933 tonnes in the corresponding period of 2016.

² To assess the performance of the Zinc segment, the Group also releases restated financial data including the contribution from 50%-owned Recytech SA consolidated proportionately, even though this method is not permitted under IFRS. See note 19 to the 2016 consolidated financial statements.

3. Legal proceedings in progress concerning Recylex SA and Metaleurop Nord SAS³

The July 26, 2017 update summarizing the legal proceedings concerning Metaleurop Nord SAS and Recylex SA is available from the Recylex Group's website at www.recylex.fr - News - Legal proceedings schedule.

³ see Note 1 to the 2016 consolidated financial statements.

4. Financial agenda

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Regenerating the urban mines
With operations in France and Germany, Recylex is a European group specialized in lead, zinc and plastics recycling as well as in the production of special metals. A key player in the circular economy with long-standing expertise in urban waste recovery, the Group has more than 660 employees in Europe and generated consolidated sales of €382 million in 2016.
For more information about Recylex Group: www.recylex.fr and on twitter: @Recylex 
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Gabriel ZEITLIN
+ 33 (0)1 58 47 29 89
gabriel.zeitlin@recylex.fr

Disclaimer: This press release may contain forward-looking statements that do not constitute forecasts regarding results or any other performance indicator, but rather trends or targets. These statements are by their nature subject to risks and uncertainties as described in the Company's annual report available on its website (www.recylex.fr). Further information about Recylex is available from its website (www.recylex.fr).

APPENDIX

1.     Quarterly trend in metals prices

Source: London Metal Exchange.

2.     Consolidated sales by quarter⁴

⁴ IFRS - 2017 data unaudited, 2016 data audited.

3.     Recylex SA's sales⁴

⁴ IFRS - 2017 data unaudited, 2016 data audited.