November 5, 2021 13:00 ET | Source: RECYLEX SA RECYLEX SA

Recylex Group (Paris Euronext: FR0000120388-RX) today released financial information for September 30, 2021.

After the final loss of control 1 and the spin-off of the former German subgroup entity 2 in May 2020, the Recylex Group reduced its new configuration to the following activities:

The consolidated sales announced on September 30, 2021 are limited to the activities of the Recylex Group under its new configuration, while the consolidated sales announced on September 30, 2020 include the activities of the former German subgroup entities up to the date of separation. In order to be able to compare with the financial information on September 30, 2021, the consolidated sales on September 30, 2020 are also presented on a comparable basis, that is, the activities of the former German subgroup entities are completely excluded from the consolidated sales.

IFRS data, unaudited data. Not applicable: Not applicable*Rounding effect

1. Metal price trend on September 30, 2021 (Euro)

The average lead price in the first nine months of 2021 is 1,808 Euros, which is an increase of 13% compared to the average price in the same period in 2020.

In U.S. dollars, the average lead price in the first nine months of 2021 was US$2,162, a 20% increase compared to the average price in the first nine months of 2020. At the same time, the euro/dollar exchange rate has also risen. During the period (increased by 6.5% compared to 2020), the increase in lead prices in euros decreased to 13%.

The average exchange rate of EUR/USD on September 30, 2021 was EUR 1.197, which is an increase from the average exchange rate for the first nine months of 2020 (USD 1.125/EUR)

2. Consolidated sales details on September 30, 2021 and September 30, 2020

Consolidated sales on September 30, 2021 were 67.4 million euros.

As of September 30, 2021, the lead division accounted for 89% of consolidated sales, including sales from two waste lead-acid battery recycling plants from Recylex SA.

Consolidated sales for the period ending September 30, 2021 totaled 59.8 million euros, a significant increase compared to the comparable consolidated sales (68%) for the same period in 2020.

In the first nine months of 2021, Recylex SA recycled approximately 68,600 tons of used lead-acid batteries, a significant increase (52%) compared to the same period in 2020, mainly due to:

In addition, the sharp increase in lead prices in the first nine months of 2021 supplemented the sales growth of recycling and sales volume.

As of August 2021, Glencore International AG has taken over the assets of the Nordenham smelter, which is operated by Weser-Metall GmbH, a former subsidiary of the Recylex Group, which is in bankruptcy proceedings. These assets are now operated by Nordenham Metall GmbH, which is wholly owned by Glencore International AG. To date, waste lead-acid battery recycling stations in Villefranche and Escaudoeuvres continue to supply the smelter, and their main customer is now Glencore International AG. As of September 30, 2021, sales to the Nordenham smelter accounted for 93% of the lead division's sales, reflecting the company's strong reliance on this almost unique customer.

Despite the efforts made in the past two years, Recylex SA has not yet succeeded in finding important new channels for the recycling of waste lead-acid batteries for its products in order to reduce this customer dependence. In fact, since the recycling process of two used lead-acid batteries in France was originally designed by the former German subsidiary Weser Metal Co., Ltd. as an integral part of the secondary material recycling chain, a major industrial change seems to have taken place. A waste battery recycling process must be carried out to be able to target other potential customers and market segments. Under these circumstances, maintaining a commercial relationship with the Nordenham smelter currently operated by Nordenham Metall GmbH (Glencore International AG) is still essential for the maintenance of the short- and medium-term business4 and business transformation, whether through Recylex SA or Part of the third-party acquirer

As of September 30, 2021, the plastics division accounted for 11% of consolidated sales, covering C2P SAS activities

In the nine months ending September 30, 2021, consolidated sales totaled 7.4 million euros, a significant increase (25%) compared to the consolidated sales on September 30, 2020. This increase was mainly due to the impact of the SARS-CoV-2 health crisis, which caused C2P SAS to temporarily suspend operations in the second quarter of 20203.

Although the environment for the recycled raw materials industry in early 2021 is favorable due to the increase in the price of virgin polypropylene, the recycled polypropylene business will be affected by the slowdown in the automotive market in the second and third quarters of 2021. The latter is mainly affected by parts and components that currently affect the sector. The impact of shortages.

As a result, sales of the plastics division in the third quarter of 2021 were 2.3 million euros, which is equivalent to sales of 2.1 million euros in the third quarter of 2020.

3. Recylex SA debt restructuring update

As of September 30, 2021, the company's net financial debt is 48.9 million euros (excluding IFRS 16 lease debt), which mainly include:

In addition, the ruling of the Marseille Administrative Court on May 26, 2021 may affect and aggravate the company's net financial debt. Temporary funds of 5.7 million euros were used for the "Global Renovation" of the public realm of railways near the Estaque district. When SNCF Réseau requested funding, the two companies also had to pay a surplus of up to 63.3 million euros7. Recylex SA intends to challenge this decision through any legal means deemed appropriate, including substance and ability to pay, and therefore appealed the decision on July 22, 2021. The execution will be suspended on October 29, 2021.

As of September 30, 2021, Recylex SA's cash and cash equivalents amounted to 3.5 million euros.

As a reminder, Recylex SA is facing many debts and liabilities inherited from its industrial history, some of which have been described above. The amount and maturity of these debts and liabilities are out of proportion to the scope of the Group's current activities. Although the current lead price is favorable and the Nordenham smelter has continuous demand for secondary materials for processing waste lead-acid batteries, the Group's ability to generate cash is still unable to repay these debts and liabilities.

A few months ago, Recylex SA initiated the debt restructuring process with the purpose of adjusting the amount and timing of debt based on its cash-generating capabilities.

After discussions with the group’s main creditors, namely Glencore International AG and the European Commission, Recylex SA initiated the asset disposal process, with the priority of retaining jobs and debt restructuring related to these activities8.

The progress of these various ongoing processes highlights the following aspects:

The success of the debt restructuring depends on the outcome of the planned asset disposal and the willingness of creditors to accept major debt exemptions, so there is still a high degree of uncertainty. As a reminder, for this reason, the company cannot close its 2021 semi-annual financial statement, nor can it release its semi-annual financial report as of June 30, 20210.

Thomas Hüser, Chairman of the Board of Directors of Recylex SA, announced: "The recent developments in the asset disposal process and the recent rulings of the Marseille Administrative Court may increase our debt, making the outcome of this reorganization very uncertain. If no agreement is reached with creditors on major debt exemptions, consider At its current cash flow forecast, the consequences of debt solvency will cause Recylex SA to announce the suspension of payments."

1 Please refer to the press releases on May 14, 2020 and May 20, 2020. 2 Namely: Weser-Metall GmbH, Harz-Metall GmbH, Norzinco GmbH and PPM Pure Metals GmbH and Recylex GmbH, C2P Germany GmbH and Recylex Grundstücksverwaltungsgesellschaft mbH. 3 See the press release dated April 30, 2020. 4 See the press releases on April 28, 2021 and April 29, 2021, and note 32.5.1.4 to the consolidated financial statements on December 31, 2020. 5 However, the expiration of this exemption may be if Recylex SA fails to meet the exemption conditions granted, that is, Recylex SA continues to supply secondary materials to Weser-Metall GmbH, and successfully completes the restructuring process of Recylex SA’s financial and non-financial business, Glencore International AG will shorten debt-see press release on April 28, 2021. 6 The nominal amount of the financial recovery clause is 19.2 million euros, of which 17.8 million euros are due to Glencore International AG. 7 See press release on June 2, 2021. 8 See press release on July 29, 2021. 9 See note 30 to the notes to the consolidated financial statements on December 31, 2020. The amount of 60.7 million euros includes a loan of 17.9 euros of 17.8 million euros, and Glencore's financial contribution under the 2016 financing agreement is 25 million euros. 10 See press release on October 4, 2021.

Quarterly evolution of metal price averages

Consolidated sales by quarter and market segment

Sales of Recylex SA

Disclaimer: This press release is an unofficial English translation of a press release issued in French on the same date, and is provided only for the convenience of English users. This press release should be read and interpreted in accordance with French law. Disclaimer: This press release may contain forward-looking statements that constitute trends or goals and should not be construed as predictions of results or any other performance indicators. As stated in the company's annual report available on the company's website (www.recylex.fr), the nature of this information is subject to risks and uncertainties. For more detailed information about Recylex, please visit its website (www.recylex.eu).

The Recylex Group of raw materials from urban mines is a European expert in the recycling of lead, zinc and polypropylene. More information about the Recylex Group: www.recylex.eu

Media and investor contacts: Tel 33 (0)158 47 29 91 | Email info@recylex.eu

Recylex SA | Registered address: 6 place de la Madeleine | 75008 Paris | France

Administrative Office: 79 rue Jean-Jacques Rousseau | 92158 Suresnes Cedex | France