27.03.2017 – 07:06

Cham Paper Group Holding AG

EQS-Adhoc: Cham Paper Group Holding AG: Full year 2016 - Progress in all areas

EQS Group-Ad-hoc: Cham Paper Group Holding AG / Key word(s): Final Results
Cham Paper Group Holding AG: Full year 2016 - Progress in all areas

27-March-2017 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
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Cham, March, 27, 2017

Full year 2016: Progress in all areas
Net revenue up by 2.1% to CHF 198.4 millionProfitability boosted by efficiency
improvements in production and a return to normal raw material pricesEBIT margin
within the target range at 5.3%Local residents in Cham give clear backing to
development at the Papieri siteNet profit for the year of CHF 8.6 million and
payment of a dividend of CHF 4.00 per share
The Cham Paper Group enjoyed a largely pleasing financial year in 2016. The
Group has returned to growth following a lengthy and challenging period of
transformation for the paper division, achieving EBIT at the lower end of its
target margin range for the first time. The paper division benefited from
efficiency improvements in production and from a return to normal raw material
prices in what was a slightly weaker market environment. The clear backing from
voters in Cham to the redevelopment of the Papieri site proved key to activities
in the real estate division. A planning process that had lasted over four years
was thus brought to a successful conclusion, paving the way for the creation of
the town's new quarter.

The Cham Paper Group increased revenue by 2.1% to CHF 198.4 million in 2016
(previous year: CHF 194.3 million), achieving growth for the first time in five
years. Even more pleasing were the 46% increase in gross profit, which rose from
CHF 18.1 million to CHF 26.3 million, and the marked rise in operating profit
(EBIT) to CHF 10.5 million (previous year: CHF 2.4 million). The Group generated
a net profit for the year of CHF 8.6 million (previous year: CHF 0.5 million).

Paper division enjoys major improvement in results
After 2015, which was challenging in a number of respects, the 2016 financial
year proved distinctly kinder despite a weaker market environment. Operating
workflows stabilised following the end of many years of transformation and raw
material prices returned to normal levels, enabling a slight increase in revenue
to CHF 196.9 million (previous year: CHF 193.4 million) and a significant
improvement in operating profit (EBIT) to CHF 9.9 million (previous year: CHF
0.7 million before the release of restructuring provisions). This equates to a
return on sales of 5.1%, within the target EBIT margin range of 5-12%.

The efficiency improvements made by concentrating production in Italy and a
further fall in fixed costs mean that the mills are now in a sound position.
Initial results from the measures to optimise processes on the extensively
modernised production systems are also coming through and are sending out
positive signals for the future of the paper business. Innovations and
efficiency gains will continue to enhance the competitiveness of Cham Paper
Group's solutions in 2017 as well.

Real estate division on track
The development plan for the Papieri site was completed. Following the
preliminary review by the cantonal offices, the planning dossiers were made
public in the spring. On 25 September 2016, voters in the municipality of Cham
approved the development plan and the associated partial change to the building
regulations and the zoning plan. This marked the end of a planning phase which
had lasted over four years and in which the authorities and residents of Cham
had been actively involved.

In October, Specialized became the first company to move into the renovated
former workshop building as a permanent commercial tenant, ensuring a steady
rise in rental income together with the more than 70 other tenants making
interim use of the site. This pushed the real estate division's revenue up by
64% to CHF 2.3 million in the year under review (previous year: CHF 0.8
million). This also includes the sale of a relatively small building from the
portfolio for just over CHF 0.5 million. The division's operating profit (EBIT)
came to CHF 769,000 (previous year: CHF 244,000).

Balance sheet remains strong
The Cham Paper Group still has a healthy balance sheet. Concentrating production
in Italy enabled inventories to be cut by 20%, reducing total assets and
liabilities. The investment made in the conversion of the workshop building in
Cham increased the value of the Group's tangible fixed assets by nearly 4%. The
equity ratio amounted to 55.4% at the end of the year (end of 2015: 50.6%) and
the Group held cash and cash equivalents totalling CHF 42 million. The site in
Cham is currently still valued at acquisition cost.

Increased dividend
The Cham Paper Group's healthy operating profit means that it can propose a
higher payout to its shareholders. The intention is to increase the dividend
from CHF 3 (2015) to CHF 4 per share, once again to be paid in the form of a
distribution from capital reserves, which will be tax-free for private
investors. The Board of Directors will also propose to the General Meeting of
Shareholders that all its members be re-elected.

Positive outlook across all divisions
The Board of Directors and the Executive Board believe that the Group has a
bright future. The paper division will be in a position to generate additional
growth over the next few years. Leveraging potential efficiency and productivity
gains should ensure that profitability remains at between 5 and 12% of EBIT
margin over the long term, i.e. within the target range previously announced.
The real estate division will be implementing the first phase of its
construction project in 2017, which will deliver a significant increase in
rental income from 2020 onwards.

Annual Report 2016
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:
http://ir.champaper.ch/cgi-bin/show.ssp?id=310&companyName=champaper&language=En
glish

Key Figures

in KCHF, unless otherwise specified             2016    2015

Sales in tonnes                                 150,408 146,274

Net revenue                                     198,365 194,258

EBITDA                                          18,704  9,187

As a % of net revenue                           9.4%    4.7%

EBIT before restructuring                       10'498  627

As a % of net revenue                           5.3%    0.3%

Restructuring income / (restructuring expenses) 0       1,795

EBIT after restructuring                        10,498  2,422

Profit                                          8,590   480

Earnings per share (in CHF)                     11.53   0.65

Dividend (in CHF)                               4.00    3.00

Free Cash Flow                                  6,676   -5,695

Shareholders' equity                            108,118 102,088

As a % of total assets                          55.4%   50.6%

(Net debt) / Net cash                           3,248   -1,432

Investments in tangible and intangible assets   11,603  12,073

Number of employees (FTE)                       375     389
 
A media and analyst conference will take place in the SIX Convention Point in
Zurich today, 27 March 2017, at 9:30.

For information, please contact
Media and IR office Cham Paper Group Holding AG
Edwin van der Geest
E-Mail:media@cham-group.comorinvestor@cham-group.com
Phone +41 43 268 32 32 / +41 79 330 55 22

Cham Paper Group
The Cham Paper Group is a leading manufacturer of coated speciality papers.
Surface finishing lends papers properties that generate value added for its
customers. The company, which was founded in 1657, has three sites, one in
Switzerland (Cham) and two in Italy (Carmignano and Condino), and a global sales
network.
The decision to focus on development and sales and discontinue paper
manufacturing in Switzerland has made way for a new project on the factory site
in the centre of Cham. The Cham Paper Group is developing an eleven-hectare
quarter there, called the Papieri site.
The Cham Paper Group (stock exchange symbol: CPGN) is listed on Switzerland's
SIX Swiss Exchange.

Disclaimer
This communication may contain statements about the future that use words such
as, for example, "believe", "assume", "expect" and other similar expressions.
Such statements about the future are subject to risks, uncertainties, and other
factors, which can cause the true results of the company to differ significantly
from that which is expressly or implicitly assumed in these statements. In view
of these uncertainties, the reader should not depend on this type of statement
about the future. The company gives no undertaking whatever to update such
statements regarding the future, or to adapt them to future events or
developments.

This press release is issued in English and German. The German version is
binding.

Additional features:


Document:http://n.eqs.com/c/fncls.ssp?u=SJUGOVNQPA
Document title: Cham Paper Group Holding AG: Full year 2016 - Progress in all
areas
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End of ad hoc announcement------------------------------------------------------

Language: English

Company:  Cham Paper Group Holding AG

          Fabrikstrasse

          6330 Cham

          Switzerland

Phone:    +41 41 785 33 33

Fax:      +41 41 785 31 50

E-mail:    mail.cham@cham-group.com

Internet: www.cham-group.com

ISIN:     CH0001931853

Valor:    -

Listed:   SIX Swiss Exchange



 

End of Announcement EQS Group News Service

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557927  27-March-2017 CET/CEST