Cham Paper Group Holding AG

EQS-Adhoc: Cham Paper Group Holding AG: FY 2014: Cham Paper Group achieves continued success

EQS Group-Ad-hoc: Cham Paper Group Holding AG / Key word(s): Final
Cham Paper Group Holding AG: FY 2014: Cham Paper Group achieves
continued success

19.03.2015 / 07:00
Release of an ad hoc announcement pursuant to Art. 53 KR.
The issuer is solely responsible for the content of this announcement.


FY 2014: Cham Paper Group achieves continued success

- Pleasing revenue development thanks to good market conditions and
successful products
- Significant improvements in results, with EBIT rising from CHF 1.8
million to CHF 8.9 million
- Investment to increase productivity and capacity at the Italian mills
- Town planning study commissioned for the Papieri-Areal successfully
concluded, master plan drawn up with framework for the project
- Payment of a dividend of CHF 3.00 per share

2014 was an important year for the future of the Cham Paper Group. The
favourable economic environment and the strong market position of Cham
Paper speciality papers led to a significant improvement in results, while
considerable progress was made with the development of the Papieri real
estate project.

Growth of strategically important products and clear improvement in results
The Cham Paper Group's revenue with speciality papers fell by 6.6% to CHF
216 million in 2014. The Group achieved growth in strategically important
product groups. Sales of speciality papers from the two Italian mills rose
by 2.4%, resulting in a 1.4% increase in revenue to CHF 187 million. In
Switzerland, revenue from the sale of paper coated in Cham, particularly
for the Digital Imaging product family, grew by 22% to CHF 29 million.
Thanks to improved cost structures, the Group achieved an operating profit
before restructuring costs of CHF 8.9 million and an EBIT margin of 4.1%.
This represents a significant increase on the previous year (CHF 1.8
million, EBIT margin 0.8%), in which the challenging transformation phase
was still ongoing.

Technology transfer from Cham to Italy
To further improve the competitiveness of our speciality papers, we decided
to transfer additional technology from Switzerland to Italy in mid-2014.
The associated investment of around CHF 20 million in the Italian mills (of
which CHF 13 million in 2014) will lead to a further improvement in
productivity and capacity in 2015. The relocation of the coating technology
operations currently run in Cham for producing the digital imaging and
barrier papers will take place in the first quarter of 2015. The associated
restructuring costs for the redundancy scheme and write-downs on facilities
in Cham reduced the operating profit for 2014 by CHF 3.1 million. The total
net profit for the 2014 financial year came to CHF 1.8 million (previous
year: CHF 0.4 million).

Balance sheet streamlined and equity ratio increased to 53%
The paper division reduced the level of outstanding customer debts and
optimised its warehouses for raw materials and finished products, which led
to a reduction of CHF 13 million in tied-up capital. Some of the funds
freed up as a result of this were used to pay suppliers earlier, which
allowed us to benefit from more favourable purchasing conditions. At the
same time, liabilities to banks of CHF 14 million were repaid. The Group
had cash reserves of CHF 38 million at the end of the year and is thus free
from debt in net terms. The balance sheet total was reduced by around CHF
30 million, while the equity ratio is now a comfortable 52.8% (previous
year: 46.3%).

Town planning study concluded and master plan drawn up
The future use of the Papieri-Areal in Cham is increasingly taking shape.
An assessment panel consisting of experts, representatives of the community
of Cham, the Cham Paper Group and various cantonal offices had unanimously
recommended following up a project proposal from the study commissioning
process at the end of June 2014. The authors of the project were then able
to develop their draft into a master plan with a framework for the project.
We are now working flat out on the legal groundwork together with the
cantonal authorities involved. The electors of the municipality of Cham
will vote on rezoning in 2016.

Interim use intensified and head of the new real estate division appointed
The buildings and the Papieri-Areal have already come to life, with a total
of 73 interim tenants using the space that has become free until the
renovation and new construction work begins. The revenue obtained from this
will cover a large proportion of the project costs. Andreas Friederich has
joined the Cham Paper Group and has been building up an internal real
estate team since March 2015. On 1 July 2015 he will become the head of the
new real estate division. This division will report directly to the Board
of Directors' real estate committee, which consists of Philipp Buhofer and
Niklaus Peter Nüesch, as well as external experts.

New head of the paper division from 1 July 2015
The Delegate of the Board, Urs Ziegler, who has successfully completed the
extensive restructuring of the Cham Paper Group since the end of 2012, will
reduce his workload as planned from summer 2015 onwards. Luis Mata, until
now the Head of Finance at the Cham Paper Group, will take over the
operational management of the paper division as COO from 1 July 2015.

Proposals to the General Meeting of Shareholders
The Board of Directors will propose to the General Meeting of Shareholders
that an unchanged dividend of CHF 3.00 per share be paid (previous year:
CHF 3.00), which will be exempt from capital gains tax for Swiss private
investors. All five members of the Board of Directors will also be put
forward for re-election.

Demanding challenges, but strategically well-placed
The Cham Paper Group is confident regarding the Group's further
development. The Paper business unit is well positioned and will benefit
from the strong performance characteristics of its products in all markets.
At the present time, the strength of the US dollar against the euro is
having a detrimental effect on the margin. The real estate division will
develop into a strong second pillar for the Group over the next decade.

We would like to thank you, our valued shareholders, customers and
partners, for your trust and our employees for their huge commitment.

A media and analyst conference will take place in the SIX Convention Point
in Zurich today, 19 March 2015, at 9:00.

The complete annual report (in German) is available on our website in the
Investor Relations section (see "Financial Reports") or directly under the
following link:

For information, please contact
Media and IR Office Cham Paper Group Holding AG
c/o Dynamics Group, Edwin van der Geest / Philippe Blangey
E-mail: /
Phone: +41 43 268 32 32
Securities no. / ISIN / ticker symbol: registered shares of Cham Paper
Group Holding AG 193 185 / CH0001931853 / CPGN

Cham Paper Group
The Cham Paper Group is a leading manufacturer of coated speciality papers.
Its papers have surface coatings that give them functionalities that offer
added value for customers. The company was founded in 1657 and has three
sites, one in Switzerland (Cham) and two in Italy (Carmignano and Condino),
as well as operating a global distribution network.
The decision to focus on development and distribution activities and to
withdraw from paper production in Switzerland has created new space at the
factory site in the centre of Cham. The Cham Paper Group is developing an
11-hectare area there, the Papieri-Areal.
The Cham Paper Group (stock exchange symbol: CPGN) is listed on
Switzerland's SIX Swiss Exchange.

End of ad hoc announcement

Additional features:

Document title: Medienmitteilung Geschäftsjahr 2014


19.03.2015 News transmitted by EQS Schweiz AG. - news

The issuer is responsible for the contents of the release.


Language:    English
Company:     Cham Paper Group Holding AG
             6330 Cham
Phone:       +41 41 785 33 33
Fax:         +41 41 785 31 50
ISIN:        CH0001931853
Valor:       -
Listed:      Foreign Exchange(s) SIX

End of News    EQS Group News-Service
334689 19.03.2015

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