DGAP-Adhoc

Cham Paper Group Holding AG: Dynamic revenue performance and clear-cut improvements in results - Seite 3

that has proved effective during the past two years. This means that only
30 to 40 jobs will remain in Cham in the future. These include research &
development in the Digital Imaging unit, marketing & sales, small roll
processing and group functions. To carry through the transfer, we are
currently reckoning with provisions and value adjustments of approx. CHF
4.0 million. However, they are non-cash only in part and will be recognised
in the 2014 financial year.

Balance sheet continues to be robust
During the first six months the Cham Paper Group succeeded in optimising
its level of trade receivables and inventories of raw stock and finished
goods on hand, which resulted in a reduction in tied-up capital of CHF 8.1
million. This infusion of cash was used in part to pay suppliers earlier
and thus benefit from more favourable purchasing terms. Following this
practice led to an increase in net working capital of 4.7%, which resulted
in a slightly negative free cash flow of CHF 0.8 million during the
reporting period. Despite repaying liabilities to banks in the amount of
CHF 6.8 million and a dividend yield to shareholders of CHF 2.2 million,
the Group had cash reserves of CHF 44.6 million at the end of the period
under review and thus is free of net debt. The equity ratio increased again
by 5.6% and now amounts to a comfortable 51.9%.

Test planning and urban planning competition in Cham concluded
In October 2013 four planning teams were tasked with the challenge of
developing a concept for utilising the "Papieri" site located in the
residential area of the municipality of Cham. In doing so they took into
account the objectives and issues that had been previously formulated in
concert with local residents in various workshops. At the end of June 2014,
a review committee consisting of external experts, representatives of the
municipality of Cham, Cham Paper Group Schweiz AG and various cantonal
agencies unanimously decided in favour of one of the four concepts as a
guide project for elaborating a master plan. A fully developed proposal is
scheduled to be submitted to the municipality of Cham for a referendum in
2016.

Positive outlook despite demanding tasks
The Board of Directors and the Executive Management Board are confidently
expecting continued business performance during the current year and
beyond. A slightly positive net result is expected for the year, despite
the provisions required for the technology transfer. In the wake of the
successful transformation, the Group is well-placed and will continue to