• Improved operating performance with restated operating income before non-recurring items back at breakeven
• Effectiveness of the measures taken to preserve cash
• Consolidated net loss halved compared to the first half of 2015

Suresnes, September 15, 2016: Recylex SA's Board of Directors (Euronext Paris: FR0000120388 - RX) today approved the consolidated interim financial statements for the six months to June 30, 2016.

Consolidated key figures (figures reviewed by the auditors):

(€ million)	Six months to June 30, 2016	Six months to June 30, 2015	Change in millions of euros
Sales	167.8	198.1	-30.3
EBITDA1 IFRS	(0.1)	(2.8)	+2.7
EBITDA1 restated2	3.7	4.5	-0.8
Operating income before non-recurring items (IFRS)	(3.2)	(7.4)	+4.2
Restated operating income before non-recurring items2	0.1	(0.7)	+0.8
Net income (IFRS)	(4.2)	(8.8)	+4.6

(€ million)	At June 30, 2016	At December 31, 2015	Change in millions of euros
Cash and cash equivalents	4.1	3.8	+0.3
Net cash3	(5.0)	(5.0)	NS
Equity	(27.1)	(20.1)	-7.0

¹ Operating income before non-recurring items and before additions to and reversals from amortization, depreciation, provisions and impairment losses.
² To assess the performance of its Lead segment, the Group uses the LIFO method ("Last in first out", not permitted under IFRS) in its internal reporting to measure inventories for its main lead smelter in Nordenham. When assessing the performance of the Zinc segment, the Group continues to consolidate its investment in Recytech SA proportionately, which is not permitted under IFRS. See Note 4 to the condensed consolidated financial statements at June 30, 2016.
³ Cash net of bank overdraft facilities.

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

"Despite difficult trends in metals prices and reduced availability of materials for recycling compared with the first half of 2015, Recylex's performance remained solid. Accordingly, although both remained negative, the Group's operating income and net income improved significantly thanks to a favorable base of comparison. In addition, the measures taken to optimise the working capital requirement paid off. From a strategic perspective, the Group's priority is to satisfy all the conditions of the loan offer for the Group's German subsidiaries by the fourth quarter of 2016."

1. Trend in metal prices in the six months to June 30, 2016 (€ per tonne)

The average lead price in the first half of 2016 came to €1,552 per tonne, a decrease of 8% compared with the first-half average of 2015 and a decline of 4% compared with the annual average for 2015.

The average zinc price in the first half of 2016 was €1,611 per tonne, a fall of 16% compared with the first-half average of 2015 and a decline of 7% compared with the annual average for 2015.

Average lead and zinc prices during the first six months of the year were as follows:

(€ per tonne)	1st half 2016	1st half 2015	FY 2015
Lead price	1,552	1,680	1,608
Zinc price	1,611	1,913	1,737

2. Consolidated results and key figures at June 30, 2016

Consolidated sales in the first six months of 2016 came to €167.8 million, down 15% compared with the same period of 2015.

In the first half of 2016, consolidated EBITDA under IFRS moved back to breakeven point, posting a very small loss of €0.1 million. This represented a very significant improvement on the first half of 2015, when it recorded a loss of €2.8 million. Over the same period, restated consolidated EBITDA came to €3.7 million in positive territory, down from €4.5 million in the first half of 2015.
Despite the significant drop in lead and zinc prices in the first half of 2016 compared with the first half of 2015, the Group's operating performance recorded a clear improvement. It benefited from a favorable base of comparison in both its major businesses as no scheduled maintenance shutdowns occurred in the first half of 2016 at the Weser-Metall GmbH lead smelter and the electric arc dust recycling furnace at Harz-Metall GmbH's plant in the Zinc segment. It also benefited from the pursuit of the selective purchasing strategy in the Lead segment.

The Group recorded an operating loss before non-recurring items under IFRS of €3.2 million in the first half of 2016, a sharp improvement on the operating loss before non-recurring items of €7.4 million in the first six months of 2015.
The restated² operating loss before non-recurring items was close to breakeven point at €0.1 million, compared with a loss of €0.7 million in the same period of 2015.
The Zinc segment's strong business performance did not fully offset the operating loss recorded by the Lead segment and the other activities (holding company). Even so, the Lead segment's performance improved. This primarily reflected a favorable base of comparison since the Weser-Metall GmbH smelter shut down for maintenance in the second quarter of 2015 (no maintenance shutdown took place in the first half of 2016).

The Group's financial result came to a loss of €1.7 million in the first half of 2016, down from a €1.0 million loss in the same period of 2015. The key factors behind the increase were the rise in debt and thus in interest expense resulting from the two successive drawdowns on the loan facility granted in 2014 to Recylex SA. These were chiefly intended to cover the final two installments under its continuation plan.

Accordingly, Recylex's consolidated net loss attributable to equity holders of the parent came to €4.2 million in the first half of 2016, compared with a loss of €8.8 million in the first six months of 2015.

The Group's net cash position (after deduction of bank overdraft facilities) stood at negative €5.0 million at June 30, 2016, stable compared with December 31, 2015. Gross cash rose slightly to €4.1 million at June 30, 2016 up from €3.8 million at December 31, 2015. The effectiveness of the measures taken to preserve cash and optimize capital expenditure were the main factors contributing to this increase.
The €4.7 million in positive cash flow generated by operating activities helped to cover capital expenditures and interest expense in the first half of 2016.
The Group's credit lines totaled €10.2 million at June 30, 2016, €9.1 million of which were drawn down. The Group's credit lines totaled €10.2 million at December 31, 2015, €8.8 million of which were drawn down at the same date.

3. Consolidated first-half 2016 results by segment (excluding holding companies and environment)

• Lead segment (71% of consolidated sales)

(€ million)	Six months to June 30, 2016	Six months to June 30, 2015
Sales	119.1	140.4
Operating income before non-recurring items (IFRS)	(4.1)	(6.1)
Restated2 operating income before non-recurring items	(3.9)	(3.8)

The Lead segment's first-half 2016 sales totaled €119.1 million, down 15% compared with the first half of 2015.
Despite a favorable base of comparison given that no maintenance shutdowns occurred in the first half of 2016, contrary to the first six months of 2015, the segment was hit by the fall in lead prices (-8%) and by lower production volumes (-7%) given the reduced availability of materials for recycling.

The recycling plants in France and Germany processed a total of 53,000 tonnes of scrap batteries, a fall of 19% on the 65,500 tonnes processed in the first six months of 2015. This decline was attributable to the continued pursuit of the selective purchasing strategy for materials for recycling. This is intended to restore margins in the segment, given the persistently very high levels of scrap batteries and their limited availability (owing to the mild weather conditions over the winter).
In this context, the Group made adjustments to its purchasing mix in the first half of 2016 to protect Weser-Metall GmbH's cash resources pending significant progress in negotiations aimed at securing financing for the Group's operations in Germany. The shortage of scrap batteries for recycling was thus offset partially through the use of lead concentrates (with a lower lead content than the secondary materials from scrap batteries) as part of the tolling arrangements introduced by Weser-Metall GmbH since the second half of 2014.
Taking these factors into account, production at the Weser-Metall GmbH smelter totaled 52,011 tonnes in the first half of 2016, down 7% from 55,771 tonnes in the first half of 2015 despite a favorable base of comparison given that no maintenance shutdowns occurred in the first half of 2016, unlike in the same period of 2015.

The segment's restated operating loss before non-recurring items under IFRS came to €4.1 million in the first half of 2016, a significant improvement on the loss of €6.1 million in the same period of 2015. Despite the fall in lead prices, this increase was chiefly attributable to a favorable base of comparison owing to the absence of a scheduled maintenance shutdown in the first half of 2016 (one shutdown took place in the first half of 2015) and to the positive impact of industrial and commercial measures taken concerning the segment's supply chain.
The restated² operating loss before non-recurring items for the same period came to €3.9 million, stable compared with an operating loss of €3.8 million in the first half of 2015. With the higher volumes of lead concentrates processed under the tolling arrangements in the first half of 2016 generating a reduction in inventories, the impact of the LIFO restatement was smaller given the reduction in inventories, since the measurement of inventories under the WAC method in line with IFRS was closer to the measurement under the LIFO method.

In addition, the Group continued to work hard to satisfy all the conditions attached to the loan proposal received by the Group's German subsidiaries. The aim is to secure the release of the funds during the fourth quarter of 2016. This financing package covers the capital expenditures planned by the Group's German subsidiaries, chiefly consisting of Weser-Metall GmbH's new reduction furnace. The goal is to return the Group's Lead segment to profitability by recovering a larger proportion of the lead contained in input materials.

• Zinc segment (19% of consolidated sales)

(€ million)	Six months to June 30, 2016	Six months to June 30, 2015
Sales	32.3	36.9
Operating income before non-recurring items (IFRS)	2.5	1.5
Restated2 operating income before non-recurring items	5.6	5.9

The Zinc segment's sales came to €32.3 million in the first half of 2016, down 12% from €36.9 million in the first half of 2015. Restated to include the Group's share of 50%-owned Recytech SA's sales, the segment's sales came to €39.9 million, down an identical 13% compared with the same period of 2015.
This decline was chiefly attributable to the strong decline in zinc prices compared with the first half of 2015, partly offset by higher production.

In electric arc furnace dust recycling, Recytech SA in France and Harz-Metall GmbH in Germany processed 83,535 tonnes of dust during the first half of 2016, compared with 73,900 tonnes in the first half of 2015. This increase was largely attributable to the fact that no maintenance shutdowns took place at Harz-Metall GmbH in 2016. As a result, total Waelz oxide production at the two plants rose 9% to 34,884 tonnes in the first half of 2016 from 32,132 tonnes in the same period of 2015.

The scrap zinc recycling business was also impacted by the fall in zinc prices over the period, which took its toll on selling prices. Against a persistently very challenging context in terms of its purchases of materials for recycling, Norzinco GmbH processed 10,906 tonnes of zinc-rich materials, compared with 10,940 tonnes in the first six months of 2015, and zinc oxide production edged up (+3%) to 11,714 tonnes in the first half of 2016, from 11,417 tonnes in the same period of 2015.

The Zinc segment recorded operating income before non-recurring items of €2.5 million in the first half of 2016, compared with a positive figure of €1.5 million in the equivalent period of 2015. This increase despite the strong decline in zinc prices was primarily achieved thanks to the very strong performance by Harz-Metall GmbH against a favorable base of comparison.
Adjusted for the impact of IFRS 10 and 11, restated² operating income before non-recurring items* came to €5.6 million in the first half of 2016, compared with €5.9 million in the first six months of 2015. This small decline was attributable mainly to lower zinc prices.

• Special Metals segment (5% of consolidated sales)

(€ million)	Six months to June 30, 2016	Six months to June 30, 2015
Sales	8.0	11.3
Operating income before non-recurring items (IFRS)	0.2	(0.8)

The Special Metals segment's first-half 2016 sales totaled €8.0 million, down 29% on their level in the first half of 2015.

In spite of a slight increase in high-purity arsenic sales, this strong contraction was chiefly attributable to lower germanium sales volumes, coupled with the ramp-up in tolling for this metal, the steep decline in indium prices and, to a lesser extent, lower gallium sales.

Despite this top-line decline, the segment's operating income before non-recurring items reached breakeven point. It totaled €0.2 million in the first half of 2016, compared with a loss of €0.8 million in the corresponding period of 2015.
This profitability improvement was driven primarily by adjustments made to PPM Pure Metals GmbH's industrial strategy, with the ramp-up in tolling for germanium and no inventory writedowns.

• Plastics segment (5% of consolidated sales)

(€ million)	Six months to June 30, 2016	Six months to June 30, 2015
Sales	8.4	9.5
Operating income before non-recurring items (IFRS)	0.2	0.1

The Plastics segment's first-half 2016 sales totaled €8.4 million, down 12% on the level recorded in the first half of 2015.

During the first six months of 2016, the segment's total production of recycled polypropylene dropped 15% to 8,058 tonnes from 9,433 tonnes in the first half of 2015. With persistently tough conditions caused by the low level of oil prices, C2P in France recorded a modest decline in its sales volumes. Even so, its selling prices held up well thanks to its strategy of diversifying its business portfolio and of moving its products upscale. Conversely, C2P in Germany posted a decline in its sales volumes owing to the reduced appeal of recycled materials compared with primary materials at the current level of prices.

The segment's first-half 2016 operating income before non-recurring items came to €0.2 million, a small increase on the €0.1 million recorded in the first six months of 2015.
In spite of the adverse conditions, the changes made to C2P's marketing strategy in France helped to make up for the substantial decline in volumes, particularly in Germany, owing to the current appeal of primary rather than secondary materials.

4. Latest developments in legal proceedings concerning Recylex SA*

• Legal proceedings concerning Metaleurop Nord SAS

The document summarizing developments in proceedings concerning Recylex SA and Metaleurop Nord SAS is available from the Recylex Group's website (www.recylex.fr - News - Legal proceedings schedule).

On June 27, 2016, the Conseil d'État overturned the Douai Administrative Court's decision on July 21, 2015, pursuant to which Metaleurop Nord's Noyelles-Godault plant was included on the list of facilities eligible for the "ACAATA" early retirement allocation for asbestos workers for the period from January 1, 1962 until December 31, 1989.
The case was sent back to the Douai Administrative Court, with different judges to reexamine and rule on both the admissibility and merits of the request to include it on the list.

• European Commission inquiry into the lead recycling sector

On June 24, 2015, the Directorate General for Competition of the European Commission sent a statement of objections to Recylex SA and its subsidiaries purchasing scrap lead batteries.
In the first half of 2016, the Company and its subsidiaries involved in these proceedings received requests for additional information from the European Commission, to which they responded by the allotted deadline,

* See Note 1, Section D of the condensed consolidated financial statements at June 30, 2016.

5. Update on the search for financing

• German scope of the Recylex Group**

On July 6, 2016, the Recylex Group's German subsidiaries received a conditional loan offer from a banking pool.

The arrangement of this new financing is of paramount importance because it will enable the Group's German subsidiaries to refinance their existing credit lines, to cover their working capital requirement and Weser-Metall GmbH's major investment in Nordenham, the key to restoring the Lead segment's profitability. The consequences of any failure to arrange this financing would be very serious for the Group's German perimeter and thus for the entire Group given the close ties that exist, firstly, between the German subsidiaries and, secondly, between Recylex SA and its Weser-Metall GmbH subsidiary.

This indicative offer covers the full amount of the €67 million financing package searched. It is intended to cover  the working capital requirements and the projected investment expenses planned by the Group's German subsidiaries, which are key to keep their activities on a sustainable footing.

Discussions regarding the financing project are continuing with all the concerned parties and include the refinancing of a €3 million credit line provided by a bank that does not intend to join the future banking pool.

The Recylex Group's priority is to conclude this financing and to satisfy all its conditions in order to obtain the funds during the fourth quarter of 2016.

** See Note 1 Sections E and F of the condensed consolidated financial statements at June 30, 2016, Note 32 to the consolidated financial statements of the year ended December 31, 2015.

• L'Estaque site

Following the deferral until December 31, 2018 of the deadline for remediation work at the inactive L'Estaque site, Recylex SA has continued to study dedicated solutions for completing remediation and redevelopment of the site.

6. Outlook for the second half of 2016

Commodity prices, especially metals, have picked up significantly since the beginning of the second half of 2016. At August 31, 2016, lead and zinc prices stated in US dollars have reached a record high since June 2015, respectively at $ 1,875 per tonne and $ 2,328 $ per tonne. Average prices between July and August 2016 have reached $ 1,836 per tonne for lead and $ 2 235 per tonne for zinc, above the 2015 average.

• Lead segment

The segment's second-half 2016 financial performance will depend on the direction of lead prices over the period.
In this context of strong demand for scrap lead batteries, the Group's strategic priorities are to continue pursuing the selective purchasing policy and to implement the plan to install the new production tool at Weser-Metall GmbH's smelter.

• Zinc segment

In the Zinc segment's two businesses, second-half 2016 financial performance will depend on the direction of zinc prices over the period.
In Waelz oxide production, provided that the availability of materials for recycling remains comparable to the situation in the first six months of 2016, Harz-Metall GmbH's and Recytech SA's industrial performance should improve in the second half of 2016 by comparison with the first half of 2016.
In zinc oxide production, Norzinco GmbH will continue in the second half of 2016 its initiatives to develop and diversify its sources of supply. It also plans to make improvements to its manufacturing base to achieve its aim of restoring its margins.

• Special Metals segment

Whether the Special Metals segment recovers in the second half of 2016 will be determined by the strength of demand from the semiconductor industry and to a lesser extent by trends in the euro/yen exchange rate.
PPM Pure Metals GmbH will continue to pursue its expansion strategy for the recycling business and its initiatives to improve the production performance, and it aims to reverse trends in its selling prices in a fiercely competitive environment.

• Plastics segment

Given the high oil price volatility, the Plastics segment's performance in the second half of 2016 will hinge on its ability to pass on the effects of these tough conditions, primarily by paying lower input costs, and to shift its business portfolio towards customers with a preference for recycled materials so that it can keep its margins at the same level.
As every year, the annual maintenance shutdowns took place at the Group's two plants in July and August 2016.

7. Financial agenda

• Sales for the nine months to September 30, 2016: Thursday, November 10, 2016 after the market close

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Regenerating the urban mine
With operations in France, Germany and Belgium, Recylex is a European group specialized in lead and plastics recycling (mainly from automotive and industrial batteries), zinc recycling (from electric arc furnace dust and zinc scrap) and the production of special metals, primarily for the electronics industry.
A key player in the circular economy with long-standing expertise in urban waste recovery, the Group has close to 680 employees in Europe and generated consolidated sales of €385 million in 2015.
For more information about Recylex Group: www.recylex.fr and on twitter: @Recylex

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Press/Investor contact:
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 on its website (www.recylex.fr). Unless otherwise indicated, all comparisons made in this press release are on a year-on-year basis (2016/2015).

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