Recticel SaEURONEXT: RECT

2025 Annual Report PDF

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POWERING PROGRESS THROUGH FUTURE-SMART INSULATION

2025 Annual Report





Introduction

Highlights

A driving force

Corporate governance General insights

ESG information

Remuneration report

Financial report

Appendix

The FSC® certification provides an assurance that the wood and paper used for this 2025 Annual Report have been harvested in a socially and environmentally responsible manner. The FSC's Chain of Custody certification provides a way in which the material can be tracked from the certified initial source through the manufacturing process to the end user.

The European Single Electronic Format (ESEF) is the official version of the Financial Statement (Chapter 7 of this report), as stipulated in Art. 4 of the Transparency Directive 2004/109/EG. Download the machine-readable iXBRL version of our 2025 Annual Report at https://www.recticel.com/investors/annual-half-year-reports.html



Credits images:

Kleman Razinger

pages: cover, 7, 14, 30, 41 ,51, 54, 56, 62, 65, 73, 82, 95, 96, 161, 167, 179, 184, 249

Layout, concept and production: Vintage Productions, Belgium



Introduction

Highlights

A driving force

Corporate governance General insights

ESG information

Remuneration report

Financial report

Appendix



RECTICEL GROUP:

THE HOME OF

FUTURE-SMART INSULATION

Recticel Group is a leading insulation company with headquarters in Belgium and operations in eight countries across Europe and the US. Our ambition is to accelerate the fight against climate change with smart insulation solutions that create sustainable value for

our customers, stakeholders and society as a whole. We offer a comprehensive and innovative portfolio of thermal insulation and noise control solutions. through different divisions, all of which are centres of excellence in their own specialities.



Introduction

Highlights

A driving force

Corporate governance General insights

ESG information

Remuneration report

Financial report

Appendix

CONTENTS

PART 1 | MANAGEMENT'S REVIEW

1 HIGHLIGHTS AND PERFORMANCE INDICATORS

7

PART 3 | REMUNERATION STATEMENT

6 REMUNERATION REPORT

167

1.1 Highlights of 2025 and early 2026

8

6.1 Introduction

169

1.2

1.3

2025 financial indicators

2025 environmental indicators

10

12

6.2

6.3

Our remuneration policy at a glance

Remuneration of the Non-executive Directors

173

175

2 A FO

2.1

RCE FOR SMARTER INSULATION

Our identity and purpose

14

16

6.4

6.5

6.6

6.8

6.7

Remuneration of the Management Committee members

Share-based remuneration Termination indemnities

Annual change in remuneration and pay ratio Derogations

176

182

183

183

183

  1. Our ecosystem: trends and market drivers 21

  2. Our strategy and business model 23

  1. CORPORATE GOVERNANCE 41

    1. GOV-1 । The role of the administrative, management

      and supervisory bodies 43

    2. GOV-2 । Information provided to and sustainability matters addressed by the Recticel Group administrative, management

      and supervisory bodies 52

    3. GOV-3 । Integration of sustainability-related performance

      in incentive schemes 54

    4. GOV-4 । Statement on due diligence in the value chain 56

    5. GOV-5 | Risk management and internal controls over

      sustainability reporting 62

      PART 4 | FINANCIAL STATEMENT

      1. FINANCIAL REPORT 184

        1. Consolidated financial statements 185

        2. Notes to the consolidated financial statements

          for the year ending 31 December 2025 192

        3. Recticel NV - General information 246

        4. Recticel NV - Condensed statutory accounts 247

        5. Declaration by the responsible Officers 248

      2. APPENDIX 249

        1. Auditor's reports 250

      3.6 Applicable reference code and rules

      66

      8.2

      ESRS list of Disclosure Requirements

      256

      3.7 External audit

      69

      8.3

      References to other EU legislations

      258

      3.8 Shareholder's diary

      70

      8.4

      Glossary

      260

      PART 2 | SUSTAINABILITY STATEMENT

  2. GENERAL INSIGHTS, DMA AND IRO 71

    1. General information 73

    2. Unlocking the power of Double Materiality 76

    3. Navigating the landscape of impacts, risks and opportunities (IRO) 82

  3. ESG INFORMATION 95

    1. Environmental | EU Taxonomy 96

    2. Environmental | E1 Climate change 104

    3. Environmental | E5 Resource use and circular economy 126

    4. Social | S1 Own workforce 142

    5. Governance | G1 Business conduct 157

RECTICEL GROUP - 2025 Annual Report 4



Introduction

Highlights

A driving force

Corporate governance General insights

ESG information

Remuneration report

Financial report

Appendix

LETTER FROM THE EXECUTIVE CHAIRMAN AND THE CHIEF EXECUTIVE OFFICER

Dear Reader,

Welcome to this 2025 Annual Report. As we look back on a year of growth and transition, we value this opportunity

to share our performance, with an emphasis on clarity, accuracy and transparency. Our Annual Report serves as a key resource for stakeholders

and as an important guide for strategic planning within the Recticel Group. By reviewing our performance and assessing upcoming risks and opportunities, we gain critical insights that inform long-term value creation.

While the 2025 Annual Report has been prepared in full compliance with all applicable legal and reporting standards, including ESRS and IFRS, we strive to go beyond merely meeting legal requirements. This document contains valuable information on our progress towards our goals and plans for further growth as a provider of future-smart insulation.

As the Executive Chairman and CEO of Recticel Group, we assure you that, to the best of our knowledge, our 2025

sustainability and financial statements

Reflecting on a year of success

In 2025, Recticel Group delivered strong financial performance, strategic

expansion and steady progress towards our sustainability targets. By focusing relentlessly on our purpose -

future-smart insulation - we have reinforced our market identity, supported by a growing portfolio of brands. Volumes increased in all our divisions, as did Group sales and profits, reflecting our dedication to operational excellence, product innovation and strategic growth in key operating countries.

2025 also brought significant changes. Over the year, we reassessed our business model and strategy to establish our pathway and targets

for the rest of this decade. Our newly launched strategy - ELEVATE 2030 -sets out a clear blueprint for value-driven growth through greater focus and efficiency. Built on six core pillars (operations, administrative processes, advanced products, downstream offerings, geographical expansion, carbon footprint), this disciplined approach will strengthen our position



Jan Vergote

Executive Chairman



Stefaan Debusschere

Chief Executive Officer

and the remuneration report accurately reflect Recticel Group's assets, position and performance.

as a leader in future-smart insulation. In 2025, Recticel Group remains committed to

being the smartest rather than the biggest.



Introduction

Highlights

A driving force

Corporate governance General insights

ESG information

Remuneration report

Financial report

Appendix

Our three divisions continue to expand in their specific markets. The Insulation Boards division has been on

a positive trajectory since 2024, and this is expected to continue. Demand for our polyurethane insulation boards, marketed under the new and revitalised

Recticel Insulation brand, continues to grow in line with the building insulation market in general. Our Turvac vacuum insulated panels (VIPs) also serve the building insulation market alongside applications in the cold chain packaging and pharmaceutical sectors. And with our UK-based Gradient brand we offer bespoke solutions for tapered and flat roofs. Moving forward, the division is focused on enhancing its product mix, with an emphasis on advanced and downstream products. It is also targeting new efficiencies through smarter operations and administrative processes, including AI-driven advances that improve the customer experience.

In 2025, Recticel Group delivered strong financial performance, strategic expansion and steady progress towards our sustainability targets.

The Insulated Panels division has shown agility amid market changes, with both the Trimo and Rex brands increasing sales and volumes in 2025. Building on this success, they are aiming to be a leading supplier of premium mineral wool insulated panels, alongside PIR market leadership in targeted geographies.

Construction continues at the new Greenfield panel manufacturing facility in the US, with commissioning scheduled by the end of 2026. The Trimo MSS brand continues to serve a growing market for prefabricated solutions that contribute to the circular economy.

The Insulated Panels division has also extended its

Our US-based Acoustic Solutions division, represented by the Soundcoat brand, remains a pioneer in acoustics innovation. Largely due to its engineering prowess and commitment to R&D, it holds a unique position in value-added sectors such as aerospace, aviation and EV charging. Soundcoat's advanced acoustic materials were used in NASA's Artemis II, which successfully returned to Earth after a 10-day mission around the Moon.

The extended Recticel Group portfolio, encompassing upstream and downstream capabilities, is central

to our business model and identity. It reflects a smart, future-ready strategy that combines core insulation materials with higher-value, engineered, and application-specific products and services.

Its scope enables us to tailor solutions for diverse markets, applications, customers and projects while maintaining our focus on performance and energy efficiency.

Sustainability progress

The fight against climate change remains central in our growth strategy. In 2025 we achieved a 28%

reduction in Scope 1 & 2. Whilst our Scope 3 emissions increased by 5%, our total carbon intensity (total emissions per m³ produced) reduced by 7.5%. This reflects the impact of our sustainability efforts in a year of growth.

Our activities centre on developing high-performance insulation solutions that support the energy transition by reducing energy demand in buildings. We estimate that the building insulation products we sold in 2025 will prevent 20 million tCO2e over their lifetime, far surpassing the total carbon footprint of our activities, by a factor 33.

The data centre market is a strategic

portfolio while reducing production waste, starting May 2026. This operation alone will lead to an annual saving of 6,000 tonnes virgin polyol, providing a financial benefit and a reduction in our Scope 3 emissions.

As collaboration is key to our sustainability efforts and achievements., we partner closely with customers and suppliers to create solutions that enhance energy efficiency and promote circularity throughout the supply chain.

A future-smart outlook

Recticel Group's 2025 and Q1 2026 results demonstrate growth across our Insulated Panels and Insulation Boards divisions. Group revenue reached a record high in 2025, rising by 7.4%. Major investments are proceeding as planned, the integration of our new acquisitions is proceeding as planned, and our new strategy sets the stage for a leaner, smarter Group -anchored by a strong market position, a clear purpose and highly committed teams.

While geopolitical and economic uncertainties persist and significantly impact the costs of our raw materials, we are confident in the Group's proven ability to adapt and drive growth.

We are very grateful to our colleagues, customers, suppliers, shareholders and everyone who has contributed to Recticel Group's success. In return, we reaffirm our commitment to delivering enhanced value for you on our shared journey to growth.

portfolio with two new downstream brands: Miclar and Kuras. The growth of the division is driven by key applications, strategic expansion, improved utilisation of operational capacity, and continuous innovation

to enhance both products and production efficiency. The data centre market is a strategic growth area with demanding requirements, where our insulated panels excel as building envelope solutions.

growth area with demanding requirements.

In 2025 we took a significant step forward with the construction of our new recycled Polyol plant in Wevelgem, Belgium, which enables us to integrate recycled content across our mainstream insulation

Jan Vergote

Executive Chairman

Stefaan Debusschere

Chief Executive Officer

Introduction‌

Highlights

A driving force

Corporate governance General insights

ESG information

Remuneration report

Financial report

Appendix

01 Highlights and performance indicators

P A R T 1 | M A N A G E M E N T ' S R E V I E W





Introduction

Highlights

A driving force

Corporate governance General insights

ESG information

Remuneration report

Financial report

Appendix

  1. Highlights of 2025 and early 2026

    JAN 2025

    Low-carbon innovation Trimo next-generation Qbiss One Next and Trimoterm Next

    insulated panels deliver up to 69% reduction in carbon footprint versus conventional alternatives.

    FEB 2025

    Expanding infrastructure Turvac inaugurates a state-of-the-art production facility and Competence Centre dedicated to vacuum insulation technologies.

    MAR 2025

    Circular manufacturing Investment in an advanced recycling facility for Recticel Insulation that converts PIR production scrap into high-value recycled polyol, for insulation boards production.

    AUG 2025

    New acoustics lab Soundcoat unveils state-of-the-art acoustics lab with enhanced capabilities in modelling,

    simulation, and rapid prototyping, accelerating innovation and customer-specific development.



    AUG 2025

    Cleanroom manufacturing Soundcoat scales up controlled-environment production, enabling advanced thermo-acoustic composites and ready-to-install kit assemblies for highly sensitive applications.

    OCT 2025

    Full ownership of Turvac Acquisition of the remaining minority stake in Turvac, fully integrating its expertise in vacuum insulated panels.

    OCT 2025

    Champions rise. Legends last . Tadej Pogačar, proudly supported by Trimo, secures his second consecutive title at the UCI Road World Championships, a testament to excellence, endurance, and performance.

    NOV 2025

    Acquisition of Kuras (NED) Acquisition of a 70% controlling stake in Kuras, strengthening its position in the insulated panels market.





    Introduction

    Highlights

    A driving force

    Corporate governance General insights

    ESG information

    Remuneration report

    Financial report

    Appendix

    NOV 2025

    Supplier of the Year

    Trimo MSS receives top recognition at the Sisk Supply Chain Awards 2025, highlighting excellence in performance and partnership.

    NOV 2025

    New grow th strategy

    Launch of ELEVATE 2030, outlining the Recticel Group strategic roadmap focused on excellence, innovation, sustainability, and international expansion.

    NOV 2025

    Best sustainabilit y report Recticel Group is honored by the Belgian Institute of Statutory Auditors for its outstanding 2024 sustainability reporting.

    NOV 2025

    Acqusition of Miclar (BEL) Recticel Group acquires a 76% stake in Miclar, expanding capabilities

    in façade systems, structural steel, and finishing solutions.



    FEB 2026

    Greenfield expansion in US Recticel Group announces the construction of its first insulated panels production facility in Tennessee (US), marking a major step in its North American growth strategy.

    FEB 2026

    FEB 2026

    Top recognition by EcoVadis Recticel Group earns its first EcoVadis Silver Medal, placing the Group among top performers in sustainability.

    MAR 2026

    We build trust

    Launch of a refreshed identity and logo for Recticel Insulation,

    reflecting a renewed focus on trust, innovation, and future growth.

    APR 2026

    To the moon and back Soundcoat acoustics technologies contribute to Artemis II by NASA, demonstrating performance

    in one of the most demanding environments imaginable.





    Introduction

    Highlights

    A driving force

    Corporate governance General insights

    ESG information

    Remuneration report

    Financial report

    Appendix

    %

    GROSS DIVIDEND PER SHARE (5 YEARS)

    0.5

    0.4

    0.31

    %

    0.31

    0.31

    0.31*

    0.3

    0.29

    0.2

    0.1

    0

    2021

    2022

    2023

    2024

    2025

    Gross dividend per share

    * Subject to approval of the profit appropriation by the General Meeting of 26 May 2026, a dividend of EUR 0.31 gross will be paid per ordinary share, or EUR 0.217 net (-30% withholding tax). This dividend will be payable from 1 June 2026. KBC Bank acts as paying agent.

    Payments for the registered shares will take place via bank transfer to the shareholders' bank accounts



    SALES

    610.2

    655.1

    600

    500

    529.4

    400

    300

    200

    100

    0

    2023

    2024

    2025

    Sales

    Annual growth rate

    +7.4%

    +15.3%



    ADJUSTED EBITDA

    70

    60

    50

    40

    30

    20

    10

    0

    55.8

    49.6

    39.2

    2023 2024 2025

    Adjusted EBITDA Annual growth rate

    +12.6%

    +26.7%



    TOTAL EQUITY VERSUS NET CASH

    450

    400

    350

    300

    250

    200

    150

    100

    50

    0

    438.0

    445.1

    430.5

    161.9

    74.4

    27.4

    2023 2024 2025

    Total equity

    Net cash position



    I N EUR

    IN MILLION EUR

    IN MILLION EUR

    IN MILLION EUR

  2. 2025 financial indicators

    RECTICEL SHARE PRICE EVOLUTION VERSUS BEL 20, BEL MID, BEL SMALL (PERIOD 01.01.2025-14.04.2026)

    40.0%

    30.0%

    20.0%

    10.0%

    0.0%

    -10.0%

    -20.0%

    -4.3% Recticel

    11.2% BEL20

    -14.8%

    BELM

    -30.0%

    -11.1% BELS

    J

    A N

    -2

    5

    F

    E B

    M

    A R

    A

    P R

    M

    A Y

    J

    U N

    J

    U L

    A

    U G

    S

    E P

    O

    C T

    N

    O V

    D

    E C

    J

    A N

    -2

    6

    F

    E B

    M A

    A P

    R R

    RECT

    LISTED

    EURONEXT

    (Euronext™: RECT.BE - Reuters: RiECT.BR - Bloomberg: RECT.BB) is listed on the Euronext ™ stock exchange in Brussels and is part of the BEL Mid® index.

    Index weighting: 2.11% on 31 December 2025





    Introduction

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    A driving force

    Corporate governance General insights

    ESG information

    Remuneration report

    Financial report

    Appendix

    Consolidated Recticel Group results - Key figures

    IN MILLION EUR

    2024

    20251

    %

    Sales

    610.2

    655.1

    7.4%

    Gross profit

    104.5

    114.0

    9.0%

    as % of sales

    17.1%

    17.4%

    Adjusted EBITDA

    49.6

    55.8

    12.6%

    as % of sales

    8.1%

    8.5%

    EBITDA

    42.6

    51.3

    20.6%

    as % of sales

    7.0%

    7.8%

    Adjusted operating profit (loss)

    18.9

    24.6

    29.7%

    as % of sales

    3.1%

    3.7%

    Operating profit (loss)

    11.5

    19.9

    73.3%

    as % of sales

    1.9%

    3.0%

    Financial result

    3.4

    (3.5)

    n.m.

    Income from other associates 2

    0.0

    0.0

    n.m.

    Impairment other associates

    0.0

    (11.5)

    n.m.

    Income taxes

    1.5

    0.6

    n.m.

    Result of the period of continuing operations

    16.3

    5.6

    n.m.

    Result of discontinued operations

    1.6

    5.0

    213.0%

    Result of the period (share of the Group)

    18.1

    10.2

    -43.8%

    Result of the period (share of the Group) - base (per share, in EUR)

    0.32

    0.18

    -44.0%

    Consolidated Recticel Group results - Financial position

    IN MILLION EUR

    31 DEC 2024

    31 DEC 2025

    %

    Total equity

    445.1

    430.5

    -3.3%

    Net financial debt (incl. IFRS 16 - Leases)

    (74.4)

    (27.4)

    n.m.

    Gearing ratio (Net financial debt / Total equity)

    N/A

    N/A

    Leverage ratio (Net financial debt / EBITDA)

    N/A

    N/A

    1 Kuras BV (Insulated Panels) is fully consolidated as from 1 November 2025 and Miclar Group (Insulated Panels) is fully consolidated as from 1 December 2025.

    2 Income from other associates: income from associates not considered as being part of the Group's core business are not integrated in Operating profit (loss); i.e. Ascorium Holding GmbH (formerly TEMDA2).



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    Appendix

  3. 2025 environmental indicators

    SCOPE 1 GHG EMISSIONS

    2021 2024 2025

    (restated) (restated)

    SCOPE 2 GHG EMISSIONS (MARKET BASED)

    2021 2024 2025

    (restated) (restated)

    Recticel Group reduced its Scope 1+2 emissions in 2025 by 28%, and although Scope 3 emissions increased by 5%, our total carbon intensity (per m³ produced) fell by 7.5%, reflecting the impact of our sustainability efforts during a year of growth. Energy intensity per m³ also decreased by 14.1%. We estimate that the insulation products sold in 2025 will avoid 20 million tCO2e over their lifetime, over 33 times our total carbon footprint.

    SCOPE 3 GHG EMISSIONS

    +0.9%

    591,348

    tCO2e

    2021 2024 2025

    (restated) (restated)

    Excl. Cat 3.15, Investments

    561,533

    tCO2e

tCO2e

585,928

5,951

tCO2e

-40.6%

4,538

tCO2e

3,534

tCO e

2

5,488

tCO2e

-64.6%

3,082

tCO2e

1,944

tCO2e



CARBON INTENSITY KG CO 2E PER M³ SCOPE 1+2+3 (MARKET BASED)

2021

2024

2025

(restated, (restated) SBTi base year)



INTENSIT Y KPIS

CARBON INTENSITY KG CO 2E PER M³ SCOPE 1+2 (MARKET BASED)

3.5

kg /m³

CO2e

-60.4%

2.2

kg CO2e/m³

1.4

kg CO2e/m³

2021

(restated, SBTi base year)

2024

(restated)

2025

ENERGY INTENSITY PER M 3

18.5 KWh/m3

14.1 KWh/m3

12.1 KWh/m3

-34.6%

2021

2024

2025

180.3

kg CO2e/m³

-17.4%

161.0

kg CO2e/m³

149.0

kg CO2e/m³







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Appendix

END-OF-LIFE RECYCLING

Cat . 3 . 12 , End- of- L i fe treatment of sold products

2021 base year (restated)*

2024 result (restated)

2025 result

2030 target (-15%)

WASTE REDUCTION AND RECOVERY

Zero operational waste to landfill

WASTE REDUCTION AND RECOVERY

Diversion of operational waste to recycling

CIRCUL AR ECONOMY AND RESOURCE USE TARGETS

2024 base year

(restated)*

932.2 t

2024 base year

(restated)*

84.3%

2025 result

785.4 t

2025 result

86.9%

2035 target (0%)

0 t

2030 target (90%)

90%

1,423 tCO2e

1,603 tCO2e

1,792 tCO2e

1,267 tCO2e

PEFC CERTIFIED PAPER IN MULTILAYER FACINGS OF INSULTION BOARDS

2022 base year (restated)*

2024 result

2025 result

2030 target

0%

97%

100%

100%

RECYCLED CONTENT ** OF MINERAL WOOL IN INSULATED PANELS

2024 base year*

2025 result

2030 target

25%

19.1%

19.2%

* base year: Recticel Group, excluding Kuras, Miclar

** unweighted average of supplier-reported pre-and post consumer content



A V O IDE D E MI S S I O N S

Over 50 years of use of the building insulation products sold in 2025, more than

19.7 million tonnes of CO2e

S BT i

Overall net-zero target

  • Recticel Group commits to reach net-zero greenhouse gas emissions across the value chain by 2050 from a 2021 base year.

    Near-term targets

  • Recticel Group commits to reduce absolute Scope 1+2 GHG emissions 90% by 2030 from a

    Our commitment to sustainability and our 2025 performance is translated in higher ESG scores from major rating companies.

    will be avoided.

    2021 base year.

    • Recticel Group also commits to reduce absolute Scope 3 GHG emissions 25% within the same timeframe.

FEB 2026

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Appendix

02 A force for smarter insulation

ESRS 2, SBM-1 | ESRS 2, SBM-2 | ESRS 2, SBM-3

P A R T 1 | M A N A G E M E N T ' S R E V I E W





Introduction

Highlights

A driving force

Corporate governance General insights

ESG information

Remuneration report

Financial report

Appendix

2

IN THIS CHAPTER

Against a shifting geopolitical

background, and in the face of market fluctuations, Recticel Group has

remained both agile and committed to its overall purpose of providing

future-smart insulation. Our brands are helping to shape the future of

construction through innovation and proven performance. Each of our

three divisions - Insulation Boards, Insulated Panels and Acoustic

Solutions - has its own specialisations and capabilities. Together, they add

up to a comprehensive offering that addresses needs in a growing range of industries and applications.

The fight against climate change remains fundamental and we

2.1

2.2

2.3

Our identity and purpose

Our ecosystem: trends and market drivers

  1. Macroeconomic factors

  2. Renovation: sustainability incentives

  3. Outlook

Our strategy and business model

  1. Positioned for success

  2. Smarter solutions, smarter growth

  3. Our business model

  4. Specialised brands for a comprehensive portfolio

  5. Sustainability: central to value creation

  6. Resilience of our strategy and business model

  7. ESG ratings and transparency

  8. Interests and views of stakeholders

CONTENTS

have made measurable progress in reducing our Scope 1, 2 and 3

emissions. Sustainability is firmly embedded in every facet of our

operations and relationships, and we have enhanced our performance in

the three key areas of our strategy: products and services, customer

categories and stakeholders. We have invested in new downstream offerings and continue to adopt appropriate AI-enabled innovations which add value for our customers.

In 2025, we increased volumes in all our divisions and achieved higher

Group sales and profits. We also

evaluated our strategy and business model to redefine our growth path and targets for the rest of this decade. By

combining core insulation materials with higher-value, specifically

engineered products,

we are addressing the needs of a more diverse spectrum of markets.

We continue to build trust through engagement with ESG rating

companies, and have been rewarded most recently with an A score for

Climate Change from CDP, as well as an A rating in its Supplier Engagement Assessment (SEA). In February 2026,

we also received a silver medal from EcoVadis. Backed by continuous

stakeholder engagement, a robust business model and our rigorously focused ELEVATE 2030 strategy, we

are confident that Recticel Group will continue to build on its position as a

strong, dynamic and sustainable force for smarter insulation.

Our adjusted EBITDA target for 2030

EUR 100 MILLION

3 CORE

SEGMENTS

  • Conventional PIR boards

  • Premium MW and conventional PIR panels

  • Advanced products and downstream solutions

25 MILLION

Number of buildings to be retrofitted under the EU Renovation Wave Strategy

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ESG information

Remuneration report

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Appendix

  1. Our identity and purpose

    Buildings consume a huge amount of energy - around 40% - and insulation is one of the best ways to mitigate energy waste. Every day, we manufacture high quality products that reduce carbon footprints and make comfortable indoor temperatures more accessible for everyone."

    - Stijn Vermeulen

    Recticel Group Chief Operations Officer

    RECTICEL GROUP - 2025 Annual Report 16



    Introduction

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    Corporate governance

    General insights

    ESG information

    Remuneration report

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    Appendix

    Recticel Group is a leading house of insulation brands providing innovative and comprehensive solutions that meet the demands of a rapidly evolving world.

    Headquartered in Belgium, we operate twelve facilities across eight countries. Applying a smart strategic approach with sustainability at its core, our divisions are helping to shape the future of construction with high-performance insulation boards, advanced insulated panels and cutting-edge thermal and thermo-acoustic solutions.





    1,311

    EMPLOYEES

    headcount on 31.12.2025

    665.1

    SA LES IN MI LLION €

    on 31.12.2025

    FEB 2026



    3

    DIVISIONS

    BELGIAN

    insulation company

    INSULATION BOARDS

    countries

    +40

    Sales in

    countries

    in 8

    Present

    INSULATED PANELS

    With a strong presence in Europe and USA

    ACOUSTIC SOLUTIONS

    Introduction

    Highlights

    A driving force

    Corporate governance

    General insights

    ESG information

    Remuneration report

    Financial report

    Appendix

    Future-smart insulation | Our purpose

    Recticel Group's overall purpose is future-smart insulation. While they specialise in diverse areas, all our expert brands are united and driven by this purpose. It encapsulates our mission to develop smarter, more sustainable insulation solutions that create lasting value for customers, stakeholders and society at large.

    that lower the carbon footprint of buildings.

    exciting spaces.

    We contribute to well-being with thermal

    insulation and noise control solutions.

    We help architects and clients to develop

    We fight climate change with leading products



    Future-smart insulation | Our activities

    Our activities are organised into three distinct divisions, each powered by specialised brands, with upstream and downstream capabilities to address a broad spectrum of industry needs. We drive innovation in construction and renovation with lightweight and high-performing insulation materials, modular designs and architectural building skins that set new standards for efficiency and sustainability.

    A powerhouse of brands

    INSULATION BOARDS

    Energy-efficient polyurethane insulation boards, advanced vacuum insulated panels essential for both buildings and cold-chain industries, and bespoke solutions for flat and tapered roofs.

    PIR insulation boards

    Vacuum insulated panels

    Bespoke flat and tapered roof specialist

    (downstream offering)

    al wool insulated panel

    Building materials wholesale

    (downstream offering)

    MW and PIR

    insulated panels

    Insulated panels specialist (downstream offering)

    MW insulated Modular Space panels Solutions

    (downstream offering)

    solutions to meet high aesthetic standards and inspire architectural innovation. Modular space solutions to simplify prefabrication for cost efficiency and flexibility. Insulated panel solutions and services for the downstream market.

    Polyurethane and miner

    INSULATED PANELS

ACOUSTIC SOLUTIONS

Customised noise control solutions for superior sound management, designed to meet the unique requirements of manufacturers.

Advanced acoustic products



Insulation Boards Insulated Panels Acoustic Solutions Manufacturing plant

On 31.12.2025

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Mt. Pleasant (TN, USA)

PIR and mineral wool Insulated panels

Burntwood (GBR)

Flat and tapered roofs specialist

Stoke-on-Trent (GBR)

Thermal insulation boards (PIR)

Tournai (BEL)

PIR and mineral wool insulated panels

Mäntsälä (FIN)

Thermal insulation boards (PIR)

Wevelgem (BEL)

Thermal insulation boards (PIR)

Barneveld (NED)

Building materials wholesale

Berlare (BEL)

Insulated panels specialist

RECTICEL GROUP HEADQUARTERS

Deer Park (NY, USA)

Advanced acoustic products

Bourges (FRA)

Thermal insulation boards (PIR)

Šimanovci (SRB)

Mineral wool Insulated panels

Irvine (LA, USA)

Advanced acoustic products

Trebnje (SLO)

Mineral wool insulated panels

Šoštanj (SLO)

Vacuum insulated panels

  • In H1 2025, Recticel Group completed the planned closure of its thermo-acoustic boards plant in Angers, France.

  • Construction is underway at the Greenfield panels manufacturing facility in the US, with operations expected to commence by the end of 2026. Products will be marketed under the Trimo North America brand.

  • At end 2025, Recticel Group had acquired Kuras (The Netherlands, Insulated Panels), fully consolidated as of 1 November 2025, and Miclar (Belgium, Insulated Panels), fully consolidated as of 1 December 2025.

RECTICEL GROUP - 2025 Annual Report 19





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Source: https://climateactiontracker.org/



Future-smart insulation | Our fight for climate change

The fight against climate change is fundamental to our identity, purpose and operational practices. We continue to prioritise responsible sourcing of raw materials, smarter, more energy-efficient operations and enhanced circular efficiencies

According to Climate Action Tracker (November 2025), current global policies place the world on a trajectory of approximately 2.7°C warming by 2100. Even assuming full implementation of announced climate pledges, projected warming remains around 1.9°C, well above the 1.5°C objective of the Paris Agreement.

These projections underline the critical role of energy efficiency and decarbonisation across sectors, particularly in the built environment, which accounts for a significant share of global

energy consumption and emissions. Recticel Group contributes to the energy transition by developing high-performance insulation solutions that help

to reduce energy demand in buildings, supporting customers

Recticel Group voluntarily committed to reducing its absolute Scope 1+2 GHG emissions by 90% by 2030, using 2021 as the base year, and to cutting its absolute Scope 3 emissions by 25% within the same

period. Our formal commitment to the ultimate goal of achieving net zero by 2050 was validated by the SBTi in February 2024.

Since 2021, we have reduced our Scope 1+2 emissions by 52.1%, while our Scope 3 emissions (excl. Cat. 3.15, Investments) increased slightly by 0.9%. This occurred alongside a substantial

expansion in production output, and is reflected in a significant 16.6% reduction in Scope 3 emissions intensity (GHG emissions per m³ of insulation produced).1

We estimate that the building insulation products we sold in 2025 will prevent 19.7 million tCO2e of emissions over their lifetime. This equates to

33 times the Group's total carbon footprint in 2025.2

1 See section 5.2.7.5

2 See section 5.2.8.

RECTICEL GROUP - 2025 Annual Report 20

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  1. Our ecosystem:

    trends and market drivers

    While short-term market conditions may remain impacted by geopolitical

    developments and energy price volatility,

    Recticel Group's outlook remains cautiously optimistic, reflecting both potential risks

    and sustained demand for energy-efficient construction solutions.

    RECTICEL GROUP - 2025 Annual Report 21





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    1. Macroeconomic factors and inflation

      Europe's construction market began to show initial signs of recovery in 2025, after a protracted period of underperformance caused by high interest rates, increased costs and low consumer and business confidence. While the outlook is generally positive, the pace of recovery varies by country and sector.

      A modest recovery in residential construction, supported by improving financing conditions, a gradual increase in building permits and continued investment in infrastructure and renovation projects, is expected to underpin demand across the Recticel Group core markets.

      The non-residential building sector, which accounts for approximately 30% of the EU's total construction output, has faced headwinds in several sub-sectors,

    2. Renovation: sustainability incentives

      Renovation in both residential and non-residential markets is being driven by energy-efficiency requirements and sustainability incentives. Buildings contribute significantly to environmental challenges, accounting for approximately 50% of resource extraction and consumption while generating over 30% of the EU's annual waste. They account for 40% of the EU's energy consumption and 36% of its energy-related greenhouse gas emissions. Moreover, around 64% of the EU building stock exhibits poor energy performance.

      The EU's revised directive on the energy performance of buildings, which must be transposed into national law by 29 May 2026, focuses on increasing the rate of renovation across the EU, particularly for the worst-performing buildings in each country.

      particularly industrial and office building. However, the outlook is improving, with new investments emerging, and a return to growth is anticipated.

      At the same time, the macroeconomic environment remains uncertain. Ongoing geopolitical tensions in the Middle East contributed to increased volatility in global energy markets in early 2026, affecting the pricing of raw materials linked to petrochemical inputs.

      Against this backdrop, Recticel Group remains focused on operational efficiency, supply chain resilience and disciplined cost management. Structural trends such as stricter energy-efficiency requirements, climate targets and the renovation of Europe's existing building stock continue to support demand for high-performance insulation solutions.

      85%

      75%

      40%

      36%

      80%

      of EU buildings were built before 2000

      of these have poor energy performance

      of energy consumed in the EU is used

      in buildings of the EU's energy-related GHG emissions

      come from buildings

      of energy used in EU homes

      is for heating, cooling and hot water

    3. Outlook

      While short-term market conditions may remain impacted by geopolitical developments and energy price volatility, Recticel Group's outlook remains cautiously optimistic, reflecting both potential risks and sustained demand for energy-efficient construction solutions.

      RECTICEL GROUP - 2025 Annual Report 22

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  2. Our strategy and business model

To address the complexity of global challenges, including regulatory shifts, we have embedded sustainability in every facet of our operations and relationships. We have achieved measurable progress in our three focus areas: products and services, customer categories and stakeholders.

RECTICEL GROUP - 2025 Annual Report 23





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VOLUME INSULATION BOARDS

3500

3000

2500

2000

1500

1000

500

0

2023

2024

2025

SALES RECTICEL GROUP

750

600

450

300

150

0

2023

2024

2025

  1. Positioned for success

    Our strategy in recent years has resulted in a solid position in the insulation industry. We have shown agility and resilience in the face of impactful market and macroeconomic trends. To address the

    complexity of global challenges, including regulatory shifts, we have embedded sustainability in every facet of our operations and relationships. We have achieved measurable progress in our three focus areas: products and services, customer categories and stakeholders. Our efforts have paid off in increased volumes in all our divisions and in higher Recticel Group sales and profits. At the same time, we have acquired new downstream offerings which enable us to align our products and distribution processes more closely with customer needs.

    VOLUME INSULATED PANELS

    6000

    5000

    4000

    3000

    2000

    1000

    0

    2023

    2024

    2025

    ADJUSTED EBITDA RECTICEL GROUP

    60

    40

    20

    0

    2023

    2024

    2025

    RECTICEL GROUP - 2025 Annual Report 24



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  2. Smarter solutions, smarter growth

    In 2025, we undertook a thorough evaluation of our strategy and business model to redefine our roadmap and targets for the rest of this decade. This exercise resulted in a new, rigorously focused strategy -ELEVATE 2030 - which will guide and underpin the growth of Recticel Group as a force for smarter insulation.

    ELEVATE 2030 is the blueprint for added-value growth through focus and efficiency and is based on six

    non-cyclical smart pillars: operations, administrative processes, advanced products, downstream offering, geographical expansion and carbon footprint. The target is to reach more than EU 100 million EBITDA by 2030.

    1. Operations

      Improve efficiency, maximise assets output, achieve top-level operational performance

    2. Administrative processes

      Reduce organisational complexity, eliminate waste, improve workflows, unlock efficiency

    3. Advanced products

      Focus on high-value products (vacuum insulated panels, high added value insulation boards, Qbiss design panels, acoustic solutions)

    4. Downstream offering

      Focus on flat and tapered roof solutions, modular space solutions, façade and cladding solutions

    5. Geographical expansion

      Greenfield panels manufacturing - Trimo North America, Mt. Pleasant (TN, USA)

    6. Carbon footprint

    Industry-leading PIR recycling plant, Wevelgem, Belgium

    We have embraced AI as a vital tool to boost productivity on both the individual employee-driven level and on an overall operational level. In 2025,

    we set out a roadmap for safe and responsible implementation of AI use, covering internal operations and customer-facing resources. We identified key opportunities in a number of areas, implemented data protection policies and are currently rolling out training and awareness sessions to enhance AI skillsets throughout the company.

    6 NON-CYCLICAL SMART PILLARS

    Operations

    Downstream offering

    Administrative

    processes

    Geographical expansion

    Advanced products

    Carbon footprint

    TARGETING > EUR 100 MILLION ADJUSTED EBITDA BY 2030

    RECTICEL GROUP - 2025 Annual Report

    25





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  3. Our business model

    Premium

    MW & Conventional PIR panels

    Advanced products & Downstream offering

    Advanced products

    Downstream offering

    Conventional PIR boards



    Recticel Group specialises in future-smart insulation solutions tailored to diverse needs across a wide range of market segments, from residential and commercial buildings to non-residential and specialised applications. Applying both upstream and downstream capabilities, we aim to provide the optimal solution, based on time-proven expertise and profound understanding of each project's individual requirements. We are committed to addressing specific customer needs, prioritising energy efficiency, sustainability and superior performance to design value-driven solutions that stand out in a competitive market.

    The graphics present Recticel Group's value-added portfolio, organised into three core segments: conventional PIR boards; premium mineral wool (MW) and conventional PIR panels; and a growing range of advanced products and downstream solutions. Together, these segments reflect the Group's strategy of

    combining core insulation materials with higher-value, engineered and application-specific products and services to address the needs of diverse building and industrial markets.

    Renovation

    New construction

    Residential

    • Sales in over 40 countries

    • Primarily through B2B channels

    Non Residential

    WHERE WE CREATE VALUE

48%

21%

16%

15%

HO W W E CREAT E VALUE



SALES BY REGION

4.6% 0.1% 92.4%

ACOUSTI C SOLUTIONS

Customised noise-control solutions for superior sound management, designed to meet the unique requirements of manufacturers.



INSULATE D PANELS

PIR and mineral wool solutions that meet high aesthetic standards, inspire architectural innovation, and simplify pre-fabrication for cost efficiency.



INSULATIO N BOARDS

Energy-efficient PIR boards and advanced vacuum-insulated panels essential for both buildings and cold-chain industries, from food to pharmaceuticals.



2.9% 0.0% 0.1%

OUR COMMITMENTS

  • Achieving long-term profitable growth

  • Creating added value for our stakeholders

  • Investments in circular insulation

  • Focus on resource-efficient technologies

  • SBTi net zero commitment

FEB 2026



Europe: 92.4%

North America: 4.6%

Middle East & Africa: 2.9% Asia Pacific: 0.1%

Central & South America: 0.1% Russia: 0.0%



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  1. Specialised brands for a comprehensive portfolio

    Our insulation boards are in demand across residential and non-residential markets for their industry-leading insulation values, durability and easy



    Recticel operates as a powerhouse of brands, each with its own unique identity. We encourage each brand to innovate and grow based on its specific areas of technical expertise and knowledge of relevant markets,

    customers and applications. Together, these diverse offerings make Recticel a vital and comprehensive force for smarter insulation.

    2.3.4.1 Insulation Boards



    1. OFFERING AND MARKET

      Our Insulation Boards division provides high-performance insulation solutions to meet the growing demand for energy efficiency and sustainability

      in buildings. The division's innovations prioritise lightweight, durable materials with industry-leading insulation values, ensuring ease of installation, long-lasting efficiency and reduced environmental impact.

      Its products are all developed to meet or exceed the most stringent building regulations and energy standards. They include solutions for walls, roofs and floors, in diverse residential and non-residential applications.

      The market for our polyurethane insulation boards, marketed under the renewed Recticel Insulation brand, is expanding in line with the European building insulation market in general. The market for our Turvac vacuum insulated panels (VIPs) includes the building and construction industry, especially in renovation and retrofitting sectors. Due to their exceptionally high efficiency and space-saving characteristics, our VIPs serve additional markets in the cold chain packaging

      and pharmaceutical industries. The upstream portfolio is rounded out by the downstream provision of bespoke solutions for tapered and flat roofs, supplied by the UK-based Gradient brand.

      The Insulation Boards division's volumes and sales have been growing steadily in every geography since 2024 and this trend is projected to continue. Our

      key area of focus is an improvement of the product mix, with a stronger emphasis on advanced and downstream products. As part of our ELEVATE 2030 strategy, we are further increasing efficiencies through smarter operations and administrative processes.

      Innovations in this area include AI sales order processing and an AI-driven search function on our public website, which will enhance internal processes while adding value for customers.

      handling. We will introduce new AI tools to improve the customer experience even further."

      - Joël Pirotte

      Sales Director Recticel Insulation

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    2. BENEFITS AND VALUE CHAIN

    Our thermal insulation boards are based on a polyisocyanurate (PIR) foam core laminated between two durable facing materials. As an insulating material, PIR outperforms materials such as mineral wool (glass wool/stone wool), XPS/EPS and cellular glass. Numerous facings are available, including multi-layer foils, aluminium, bituminous,

    mineral-coated glass fleece, and gypsum plasterboard. The boards are engineered for multiple applications across the building envelope, including flat, tapered and pitched roofs, cavity walls, floors and external wall insulation systems. They allow regulatory compliance to be achieved with thinner walls and roofs.

    PIR INSULATION BOARD BENEFITS

Superior energy efficiency

Mineral Wool

0.038 d [W/mK] Expanded Polystyrene (EPS)

0.036 d [W/mK]

Cellular Glass

0.036 d [W/mK]

Extruded Polystyrene (XPS)

0.032 d [W/mK]

254 mm

Polyurethane (PIR)

240 mm

0.022 d [W/mK]

240 mm

Vacuum Insulated Panels (VIP)

214 mm

0.006 d [W/mK]

Reduced thickness

Low weight

Cleaner indoor air

Walkability without deformation

Conventional insulation materials

147 mm

40 mm

Super insulation materials

* Illustration based on a building shell element of U=0.15 W/m²K or thermal resistance value R=6.65 m²K/W (R=1/U).

Environmentally friendly

VACUUM INSULATED PANELS BENEFITS

Our vacuum insulated panels meet high technical demands where space constraints make traditional insulation impractical. This is due to their ability

Reduced thickness

to provide the most efficient performance with the thinnest layer. Their applications include retrofitting older buildings and specialised needs, such as temperature-controlled packaging for pharmaceuticals and food products.

Long lifetime

RECTICEL GROUP - 2025 Annual Report 28





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STAKEHOLDERS

Insulation Boards value chain

Residential owners

RAW MATERIALS

RECYCLED PET POLYOL

R&D DEVELOPMENT:

Pyrolysis Chemolysis

Collection & separation

Real estate managers

Thermal PIR boards:

MDI & bio-MDI; Polyol & bio-Polyol

Wholesalers / Distributors / Building supplies stores

Architects / Building Engineers

Contractors, sub-contractors & assemblers

END-OF-LIFE

RESIDENTIAL / NON-RESIDENTIAL USE

REUSE

RECYLING PIR WASTE

INTO POLYOLS

ste,

Production wa incl. briquettin

g dust

DISPOSAL ENERGY RECOVERY

RECYCLE INTO OTHER APPLICATIONS

separation



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2.3.4.2 Insulated Panels



  1. OFFERING AND MARKET

    Our Insulated Panels division specialises in premium-quality products tailored to meet a wide spectrum

    of modern construction requirements. These include premium mineral wool panels and advanced products from Trimo and conventional mineral wool and

    PIR panels delivered by Rex Panels & Profiles. All of these are designed to provide outstanding thermal performance, durability and versatility. The division also offers modular units comprising floor, column and ceiling structural elements, produced by Trimo MSS. In 2025, we expanded the portfolio with a new downstream offering via two newly acquired brands: Miclar, which specialises in industrial façade and roof cladding, light structural steel and finishing components, and Kuras, a specialised building

    products wholesaler adding value for our customers in the Benelux region.

    Our Insulated Panels division serves the key trends driving market growth: sustainability, fire safety, energy efficiency and prefabrication. The product mix addresses a market that is split between polyurethane and mineral wool cored products.

    16% MW

    84% PIR

    The division has adapted dynamically and proven resilient to changes in market behaviour, leading to growth in both sales and volumes for the Trimo

    and Rex brands in 2025. As part of our ELEVATE 2030 strategy, we have identified key steps to build on this success, with the ambition of achieving a world-leading position as a premium supplier of superior mineral wool insulated panels, alongside PIR market leadership in selected regions.

    We are strengthening our focus on key applications, notably the fast-growing data centre market, in which Trimo has delivered more than 200 projects for industry-leading technology companies since 2018.

    We are positioned to benefit from recovery and growth in Western Europe, especially priority markets in the UK, Germany and Benelux, and are deploying a plan for expansion in other global regions. We are optimising capacity utilisation at our mineral wool plants, developing value-adding innovations at Rex and increasing the efficiency of all our production lines.

    We have added an AI-enabled chat facility to the Trimo website to provide fast, reliable technical information and are deploying new AI tools to reduce sales administration and accelerate order processing.

    The Trimo MSS brand continues to serve the growing market demand for prefabricated and sustainable solutions. The company has provided 100,000 units globally, providing versatile and sustainable solutions with an outstanding price-to-performance ratio. They are designed for long-term use, are almost completely recyclable and offer certified fire resistance and proven energy efficiency.

    deliver insulated building envelope systems that ensure controlled thermal

    Data centres are a key growth market for us. Since 2018, we have completed over 200 projects and work with leading technology companies. We



    performance, high airtightness, and consistent on-site execution."

    - Janez Kunič

    Chief Commercial Officer Trimo



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    Design flexibility

    First-class service

    Safety and performance

    Lightweight factory system

    Low life cycle costs

    Single factory-manufactured unit

    A sustainable choice

    MINERAL WOOL AND POLYURETHANE INSULATED PANEL BENEFITS



  • Self-supporting

    (up to 10m single span)

  • Single factory-manufactured unit

  • Mineral wool or polyurethane core insulation

  • Water & air tightness

  • Extreme thermal values

  • Moisture resistant

  • 99% recyclable (MW)

KEY FEATURES OF OUR

INSULATED PANELS PORTFOLIO

  1. BENEFITS AND VALUE CHAINS

Engineered for superior energy performance, our insulated panels minimise heat loss and reduce overall building energy consumption, resulting in reduced operational costs and a smaller carbon footprint.

Available in a range of materials, thicknesses and finishes, they offer unique structural and physical properties that allow extensive design freedom,

while their advanced technical qualities provide

Insulated Panels value chain

RAW MATERIALS

Steel

(with/without recycled content for mass balance)

Mineral wool

(with/without % production waste)

MDI + Polyol

Assembly waste

Waste dealers

Scraping & reuse/disposal

END-OF-LIFE

(30-60 years)

NON-RESIDENTIAL USE

Production waste

mineral wool manufacturers

& steel producers

RECOVERY (mineral wool) RECYCLING (steel)

DISPOSAL (PU foam)

Separation

Collection & separation



a high-quality, total envelope solution. They are also a particularly good match for prefabrication requirements, enabling regulatory compliance in a fast, cost-efficient and scalable manner.

STAKEHOLDERS



Multinationals

Investors / developers

Architects / Building Engineers



Contractors, sub-contractors & assemblers



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Trimo MSS value chain

One-stop providers of Modular Space Solutions

Steel

STAKEHOLDERS

RAW MATERIALS

Collection & separation

Recycling (steel) Reuse (mineral wool)

(with/without recycled content for mass balance)

Retrofitting containers

Mineral wool

Dealers (rent-a-container)

(with/without % production waste)

Contractors, sub-contractors & assemblers

Production /assembly waste mineral wool manufacturers & steel producers

Architects / Building Engineers

Investors (municipalities), owners (industrial / commercial companies)

Container assembly (incl. plumbing & electrical installations)

RESIDENTIAL /

NON-RESIDENTIAL USE

END-OF-LIFE

RECOVERY (mineral wool) RECYCLING (steel)

Separation



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2.3.4.3 Acoustic Solutions



  1. OFFERING AND MARKET

    Soundcoat provides customised acoustic insulation solutions for equipment used in various sectors. Its highly specialised engineering capabilities place the brand at the forefront of acoustic innovation. Led by an experienced team of acoustical engineers, Soundcoat operates according to industry-leading best practices and proprietary methodologies.

    Leveraging strong in-house expertise, Soundcoat delivers a broad portfolio of tailored solutions, including laminated composites with films, acoustic fabrics or embossed facings; custom-shaped materials with or without adhesive backing; and products supplied in sheets, rolls or kits.

    Soundcoat holds a distinctive position in the market, combining advanced engineering services with a versatile product offering designed to meet specific customer requirements.

    Soundcoat utilises a range of engineered acoustic products to deliver tailored solutions:

    • Absorption: Materials engineered to reduce reverberant airborne noise by converting acoustic energy into thermal energy.

    • Barrier: High-performance solutions designed to deliver strong sound transmission loss, particularly in low-frequency applications.

    • Damping: Products developed to minimise vibrations caused by impact, panel resonance and structure-borne noise.

    • Gasketing: Specialised materials used between structural components to regulate contamination, airflow, noise, vibration, RF-EMI, ESD and thermal loss.

    • Thermal: Advanced porous and fibre-blended solutions suitable for high-temperature environments, including aerospace applications.

    Key services include the Soundcoat 360 SolutionTM, which leverages a host of products, services and expertise to expedite products to market and minimise design costs for industrial spaces and OEM applications. The division also offers advanced lab

    services and testing through its product and materials testing lab. Services include advanced simulation and analysis tools, proprietary characterisation processes, material & prototype development capabilities and mechanical and physical testing to measure or verify acoustics and physical properties. The company's

    two manufacturing facilities operate under a stringent internal quality control system, ensuring consistently high standards.

    For over six decades, Soundcoat has been building solid relationships with manufacturers and developing pioneering noise control solutions, propelled by a

    spirit of innovation that enables it to tackle market challenges head-on.

    Its innovations are used in diverse sectors, including:

    • Aerospace & aviation

    • Heavy duty & transport vehicles

    • Industrial equipment

    • Electronic equipment & energy infrastructure

    • Building & commercial construction

    • Medical equipment

    Soundcoat is ISO 9001:2015 registered in California and New York, with its Irvine, CA facility carrying additional AS9100:2016 registration and cleanroom manufacturing capabilities for aviation and aerospace.

    that provides the foundation for human exploration beyond Earth orbit.

    Soundcoat acoustic solutions were part of the historic NASA rocket launch of Artemis II on

    1 April 2026. NASA's SLS (Space Launch System) is a super heavy-lift rocket



    Our components were used in the Launch Vehicle Stage Adapter (LVSA), the structural element between the core (fuel tank) and the Upper Stage (Interim Cryogenic Propulsion Stage and the crewed Orion capsule). The materials were specially engineered to control the internal acoustic environment

    of the LVSA in order to prevent resonance, reduce vibroacoustic loading, and protect critical propulsion and avionics systems during ascent.

    Image Credit: NASA/Frank Michaux



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    Improved comfort

    Regulatory compliance

    Equipment protection

    Enhanced product performance

    Noise reduction

    SOUNDCOAT ACOUSTIC SOLUTION BENEFITS



  1. BENEFITS AND VALUE CHAIN

Noise control is a key differentiator in equipment manufacturing, influencing product quality and playing a vital role in a brand's reputation. Soundcoat enhances the value of its noise control solutions by treating each project as a collaborative partnership. Its engineers work closely with manufacturers, offering specialised expertise and practical knowledge throughout the design, manufacturing, testing, implementation and operational phases.

Acoustic Solutions value chain

Primary markets

Mobilty Performance:

Aerospace, Aviation, Class 8 truck

RAW MATERIALS

Foams (Melamine foam, PU foam, Polyimide foam) Plastics

Chemicals Metals Adhesives

Industrial Solutions: Power generation, Heavy-duty vehicles, Semiconductor equipment, Building acoustics

Medical OEM equipment: Fluid diagnostics, Waste management, Oxygen therapy

END-OF-LIFE

B2B

Parts & Complete kits

  • R&D (acoustics engineers) Production

  • application engineering / support waste

  • procurement management

  • manufacturing / assembly

DISPOSAL

RECYCLING INTO OTHER APPLICATIONS

Separation

STAKEHOLDERS





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  1. Sustainability: central to value creation

    Our ELEVATE 2030 strategy and our business model are aligned with the European Green Deal, the European Commission's initiative to make Europe the first climate-neutral continent

    by 2050. The EU Green Deal includes measures to enhance building energy efficiency through the EU Renovation Wave Strategy, which aims to double the annual renovation rate by 2030 and retrofit at least 25 million buildings.

    Sustainability-aligned solutions make up a substantial and growing portion of the Recticel Group's portfolio. By strategically focusing on markets and customers who share our priorities, we can integrate evolving environmental and social standards in every stage of our value chain, addressing challenges like climate change and resource scarcity.

    More information can be found in section 5.2, Environmental | E1 Climate change, and section 5.3, Environmental | E5 Resource use and circular economy.

    1. Integrating SDGs in our strategy







      Recticel Group's activities are aligned with the United Nations Sustainable Development Goals (UN SDGs). We have selected seven SDGs as strategic priorities relevant to our core values and business objectives. These globally recognised goals provide a framework for addressing critical challenges









      in areas such as environmental protection, social equity and economic development.

      By embedding these SDGs in our strategy, we drive innovation, empower

      SDG 7: Promote energy-efficient solutions for sustainable building practices

      SDG 8: Drive sustainable and economic growth through dignified work

      SDG 9: Foster innovation to enhance resilient infrastructure

      SDG 11: Develop products that improve urban energy efficiency

      SDG 12: Advance circular economy practices through product innovation

      SDG 13: Commit to ambitious greenhouse gas (GHG) reduction targets

      our workforce and address pressing global challenges including climate change, resource scarcity and access to energy-efficient housing. Our mission is to maximise the transformative potential of future-smart insulation systems to meet

      societal needs, improve building energy efficiency and promote sustainability within the construction sector.

      SDG 17:

      and climate-aligned practices

      Collaborate with stakeholders to amplify positive environmental and social impacts



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    2. Leveraging impacts, risks and opportunities

      Central to the European Sustainability Reporting Standards (ESRS) standards is the identification of material impacts, risks and opportunities (IROs) which can be leveraged to drive our strategy and foster business growth.

      In 2024, Recticel Group conducted its first full Double Materiality Assessment (DMA), a systematic evaluation integrating the principles of financial materiality (how environmental and social risks impact the organisation) and impact materiality

      (the organisation's influence on the environment and society).

      The evaluation process included engaging with stakeholders and analysing data from internal and

      external sources. Impacts were assessed based on their scale, Scope and irreversibility, while risks were evaluated in terms of likelihood and potential financial implications.

      Our evaluation encompassed every ESG dimension in the following areas:

      • Environmental: Climate change (E1), Pollution (E2), Water and marine resources (E3), Biodiversity and ecosystems (E4), Resource use and circular economy (E5)

      • Social: Own workforce (S1), Workers in the value chain (S2), Affected communities (S3), Consumers and

        end-users (S4)

      • Governance: Business conduct (G1)

      The other dimensions assessed are currently considered non-material, as their direct impact and risk relevance across our operations and value chain are limited based on operational insights and

      stakeholder feedback. As materiality is dynamic, these conclusions will be revisited as conditions evolve.

      Identified material topics will be addressed through targeted strategies and transparent reporting.

      In August 2025, the Group performed a review to assess whether its Double Materiality Assessment required adaptation or revision.

      Detailed information on the double materiality approach can be found in section 4.2, Unlocking the power of Double Materiality. For a full description of our IRO identification process, findings and interaction with our strategy and business model, see section 4.3, Navigating the landscape of impacts, risks and opportunities.

      This assessment led to the identification of our material issues, opportunities and risks:

      Environmental

      Climate change (E1)

      Climate change was identified as a material issue due to the positive impact of our products in terms of energy savings and avoided emissions during building lifecycles.

      Social

      Governance

      Business conduct (G1)

      Upholding ethical business conduct is part of our core values. This dimension includes compliance with regulations, anti-corruption measures, transparency in governance and robust supply chain oversight.

      Own workforce (S1)

      The satisfaction, engagement, health & safety, fair compensation and development of our own

      workforce are central to our success and long-term sustainability.

      Resource use and circular economy (E5) Resource use and circular economy emerged as material due to our focus on resource

      management and the regulatory push for reusable, circular product designs.

      • Opportunities: Transition to renewable energy; adoption of energy-efficient technologies; innovation in low-carbon solutions.

      • Risks: Carbon pricing policies; increased regulatory scrutiny; reputational impacts.

      • Opportunities: Strengthening corporate reputation; building resilient supply chains; enhancing investor confidence.

      • Risks: Exposure to legal penalties; reputational damage; operational disruptions due to unethical practices.

      • Opportunities: Building a culture of innovation; fostering employee loyalty; attracting top talent through strong employer branding.

      • Risks: Potential challenges related to talent retention, skills gaps and evolving workplace dynamics.

      • Opportunities: Cost savings through resource efficiency and innovation in circular design.

      • Risks: Compliance challenges with evolving regulations; adapting to shifting customer preferences for sustainable products.



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      ESG information

      Remuneration report

      Financial report

      Appendix

    3. The ESG plans steering our progress

  2. Resilience of our strategy and business model

    Recticel Group has two ESG plans in place to guide our strategy and optimise our performance for sustainable growth.

    OUR

    ZERO

    RACE

    TONET

    EMISSIONS

    Our Race to Net Zero is a dedicated Climate Action Plan aimed at combatting global warming. This plan outlines specific targets and measurable KPIs to minimise

    our carbon footprint, achieve net zero emissions and amplify the positive impact of our activities. Our approach emphasises responsible sourcing of raw

    materials, sustainable, energy-efficient processes and eco-conscious design, and reflects our ambition to lead the global shift toward a circular, low-carbon economy.



    In 2024 we reviewed our strategy and business model to address sustainability challenges and seize opportunities that drive long-term value creation.

    The evaluation encompassed the entire Recticel Group, excluding Rex Panels & Profiles, which was acquired after the ESG materiality assessment. Notably, Rex operates within the Insulated Panels Division, alongside Trimo, which engages in similar activities. The assessment covered the entire value chain.

    The review considered short-term (1-5 years), medium-term (5-10 years), and long-term (up to 25 years) horizons, focusing on the adaptability of our business model to economic, environmental and social shifts while capitalising on emerging opportunities.

    Core aspects included:

    • Identifying major sustainability drivers such as climate change, resource efficiency and socioeconomic developments.

      OUR RACE

      POSITIVE

      TOMAX

      PERFORMANCE

      Our Race to Maximum Positive Performance is our People and Solutions Plan, driven by our belief that building a better society requires collective

      action and the sharing of knowledge, expertise and technology. This conviction compels us to uphold the highest standards in human rights, labour practices, environmental stewardship and anti-corruption efforts.

      As an employer, we foster an inspiring, rewarding and safe workplace. We continuously improve the sustainability and energy efficiency of our solutions to elevate living standards for current and future generations.



    • Engaging stakeholders to ensure a comprehensive understanding of material impacts.

    • Analysing critical metrics, including carbon intensity, financial stress indicators and market share projections.

      The findings of the review underscore our business resilience, which we demonstrate by:

    • Mitigating climate risks through investments in resource-efficient technologies and collaboration with suppliers to minimise the impact of purchased goods.

    • Proactively adapting to regulatory changes through compliance initiatives and stakeholder engagement.

    • Expanding sustainable product offerings to meet evolving consumer preferences and societal trends.

    Our analysis is rooted in the 1.5°C global warming scenario, a prerequisite for validating our SBTi

    net-zero commitment.

    To enhance the long-term resilience of its operations, Recticel Group is strengthening its understanding and management of physical climate risks affecting its production footprint. Through climate scenario analysis and targeted site assessments, the Group is identifying potential vulnerabilities and defining appropriate adaptation actions.

    For further information, refer to section 5.2.2, E1-1 Transition plan for climate change mitigation, and section 4.3.2, Material IROs and their interaction with strategy and business model.

    RECTICEL GROUP - 2025 Annual Report 37



    Introduction

    Highlights

    A driving force

    Corporate governance General insights

    ESG information

    Remuneration report

    Financial report

    Appendix



  3. ESG ratings and transparency

    Building on our long-standing commitment to excellence in both financial and non-financial metrics, we continue to advance our ESG performance as a central element of our business strategy.

    Maintaining clear, measurable goals and transparently reporting our progress are crucial for earning and retaining the trust of shareholders, who increasingly recognise the importance of sustainable and responsible business practices. Active engagement with ESG rating companies enables us to assess our impact,

    enhance our accountability and continuously identify opportunities for meaningful improvement.

    1. CDP environmental data disclosure and assessment

      Recticel Group reports climate data with CDP, which operates the world's leading independent environmental disclosure system, enabling organisations worldwide to measure and manage their environmental impacts.

      For the second consecutive year, Recticel Group has received the highest 'A' score for Climate Change from CDP, reflecting our consistent and transparent approach to climate reporting and action. This recognition underscores our commitment to meaningful climate action and a sustainable future for all stakeholders.

      In 2025, CDP assessed more than 22,100 companies worldwide. Only 877 - around

      4% - earned a place on the Climate Change A List, underscoring the exclusivity of this group of global leaders in environmental transparency and performance.

      In addition, Recticel Group received an A rating in CDP's Supplier Engagement Assessment (SEA), reflecting our continued efforts to embed climate considerations throughout the supply chain and to collaborate with suppliers in advancing their own climate initiatives.

      2022

      2023

      2024

      2025

      Recticel Group

      B

      B

      A

      A

      Peer 1

      A-

      A

      A

      A-

      Peer 2

      A-

      A-

      B

      A-

      Peer 3

      B

      -



      RECTICEL GROUP - 2025 Annual Report 38



      Introduction

      Highlights

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      Corporate governance General insights

      ESG information

      Remuneration report

      Financial report

      Appendix

    2. ESG research and rating providers

      Our ESG performance is evaluated by several leading rating providers. Each provider applies its own methodology, using distinct evaluation criteria and scoring systems aligned with its specific approach.

      As a result, ratings are not directly comparable across providers. To better understand these methodologies, we encourage stakeholders to consult the detailed information available on the respective providers' websites.

      Morningstar Sustainalytics and S&P Global evaluate our exposure to ESG impacts, risks and opportunities, providing insights into how effectively we manage these critical areas, relative to peers within the same

      industry classification. They cannot be compared across industries.

      Recticel Group has been awarded the EcoVadis Silver Medal for the first time, marking an important milestone in our sustainability journey.

      This achievement places Recticel Group among the

      E S G R I S K R A T I N G

      20.8 Medium Risk

      S & P G LO B A L E S G S C O R E

      2 02 3 2 0 2 4 2 0 25

      NEGL

      LOW

      MED

      HIGH

      SEVERE

      30/100 38/100 49/100

      top 15% of companies assessed globally by EcoVadis

      Data Availability: Medium

      over the past 12 months (85th percentile and above).

      EcoVadis evaluates 21 sustainability criteria across four core themes: Environment, Labor & Human Rights, Ethics, and Sustainable Procurement. With more than 130,000 companies rated worldwide, this recognition reflects the strength of our commitments, processes

      0-10 10-20 20-30 30-40 40+

      R A NK IN G

      Industry Group (1st = lowest risk)

      Last updated: 17 December 2025

      Updated annually or in response to major developments

      S & P G LO B A L E S G S C O R E

      ESG Score Industry ESG Score Average

      EN V IR O NMEN T A L

      and continuous improvements across the Group.

      O V E R AL L SC O R E

      Building Products

      Universe

      Global Universe

      24 out of 139

      4,478 out of 14,999

      CSA Score 55 | ESG Score 59 | Industry Average 38

      SO C I AL

      73/100

      P ER C EN T IL E

      87th

      FEB 2026

      Last full update 17 October 2025

      CSA Score 35 | ESG Score 37 | Industry Average 37

      G O V E R N A N C E & E C O N O M I C

      CSA Score 48 | ESG Score 48 | Industry Average 38

      ESG RISK RATING 09.04.2026

      BUILDING PRODUCTS 2025

      Score

      Category

      Rank

      Percentile

      BUILDING PRODUCTS

      2025

      Peer 2

      Gold (10/2025)

      Peer 1

      19.3

      Low

      13/139

      10th

      Peer 2

      56

      Recticel Group

      Silver (02/2026)

      Peer 2

      19.9

      Low

      17/139

      12th

      Peer 1

      55

      Peer 1

      Silver (02/2026)

      Recticel Group

      20.8

      medium

      24/139

      18th

      Recticel Group

      49

      Peer 3

      not scored

      Peer 3

      26

      RECTICEL GROUP - 2025 Annual Report 39





      Introduction

      Highlights

      A driving force

      Corporate governance General insights

      ESG information

      Remuneration report

      Financial report

      Appendix

  4. Interests and views of stakeholders

Clear and effective stakeholder communication is essential to build trust, manage risks and support our strategic objectives. Engaged

stakeholders contribute to customer loyalty, investor confidence and employee motivation. Any material changes in strategy or activities affecting these relationships are communicated transparently.

Our key stakeholders include shareholders, investors, customers, employees and suppliers. We also recognise the broader impact of our products and activities on workers throughout the value chain, as detailed in section 3.4, GOV-4 Statement of due diligence in the value chain.

Our stakeholder engagement aims to understand priorities, address concerns and align with our sustainability

goals. Insights gathered from these interactions are systematically reviewed with the Board of Directors and the Management Committee, as outlined in section 3.2

Throughout 2025, we engaged consistently with our key stakeholders through various communication channels to support our business goals.

Through our due diligence and materiality assessment processes, we actively analyse stakeholder interests and perspectives in relation to our strategy and business model. By integrating these priorities into our strategic planning, we ensure alignment with both stakeholder

expectations and organisational goals, fostering continuous value creation.

Material stakeholders

Topics addressed

How we engage

Purpose and outcome

Shareholders, investors and analysts

  • Timely disclosure of information such as operating results, management policies, plans and events

  • Building trust-based relationships

  • Shareholder returns

  • Corporate website, press releases

  • Annual and half-year reports

  • Annual General Meeting (AGM)

  • Disclosing information to rating organisations

  • Analyst meetings

  • Roadshows, contacts (individual, group)

  • Contacts with reference shareholders

  • Confidence in accuracy and credibility of disclosed information

  • Better ESG ratings

  • Higher reputation

  • Compliancy with regulations

Customers

  • Providing safe, secure and quality products

  • Building trust-based relationships

  • Improving customer satisfaction through products, service and support

  • Fair and equitable transactions

  • Quality Assurance Certificates

  • Environmental Product Declarations

  • Interactions, training sessions, lectures

  • Calculation tools

  • Anticipating customer's expectations with smart and sustainable insulation products

  • Increased trust and loyalty

Employees

  • Providing a safe and rewarding workplace

  • Enhancing systems and education to maximise their capabilities

  • Open communication with employees and their representatives

  • Intranet communication

  • CEO 'Team Talk'

  • Town hall and team meetings

  • Employee Performance Management Discussion (EPMD)

  • Training programmes

  • Social dialogue (local and European Works Council)

  • Higher levels of employee engagement

  • Improved safety performance

  • Increased operational efficiency

Suppliers

  • Optimising carbon footprint

  • Resource efficiency and circular economy

  • Optimising upstream transport and distribution

  • Supply chain human rights due diligence

  • Partnership for innovation

  • Day-to-day contact

  • Visits, meetings, audits, fairs

  • Joint development projects

  • Improved operational efficiency

  • Trustful partnerships

  • More sustainable products

  • Lower embodied carbon

RECTICEL GROUP - 2025 Annual Report 40

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