Financial statements of CPH Chemie + Papier Holding AG

Additional information

1. Valuation principles used

1. Valuation principles used

These financial statements have been compiled in accordance with the provisions on business bookkeeping and accounting specified in the Swiss Code of Obligations (Article 957ff). The major balance sheet items have been capitalized as described below.

No cash flow statement or certain additional notes

Since CPH Chemie + Papier Holding AG provides consolidated financial statements in accordance with recognized (Swiss GAAP ARR) accounting standards, it has – as permitted under the relevant legal provisions – elected not to provide details of auditors’ fees or a cash flow statement in the present accounts.

Financial assets and investments

Financial assets are stated at their nominal value less any value adjustments required. Investments are stated at their purchase price less value adjustments. Investments are valued individually if they are material, and are not usually grouped together for such valuation because of any similarity.

Treasury shares

Treasury shares are shown at their original purchase price. The treasury shares held are shown as a negative item in equity. If they are later sold, the resulting profit or loss is taken directly to voluntary retained earnings.

Share-based compensation

Share-based compensation is valued at the share price applicable on the shares’ assignment, and is shown under both equity and personnel expense. The definitively assigned shares are subject to a three-year vesting period, during which the number of shares assigned is not contingent on any further performance, results or other vesting conditions.

Foreign currency positions

Foreign currency positions have been translated into Swiss francs at the following conversion rates:

Foreign currency

2020 income statement

2020 balance sheet

2019 income statement

2019 balance sheet

EUR

1.0710

1.0820

1.1120

1.0870

USD

0.9380

0.8840

0.9940

0.9680

The balance sheet conversion rates are the rates that ruled on the balance sheet date of 31 December, while the conversion rates used for the income statement are the average rates for the year.

2. Notes on the financial statements

2. Notes on the financial statements

CPH Chemie + Papier Holding AG domiciled in Root

The company employed an average of six persons in 2020 (prior year: six persons) in full-time-equivalent terms.

2.1 Net revenue from sale of goods and services

2.1 Net revenue from sale of goods and services

The CHF 4.9 million in this item (prior year: CHF 5.0 million) represents the net revenue from goods and services provided to subsidiaries by the holding company and invoiced accordingly.

2.2 Additions/Releases of impairment losses on non-current assets

2.2 Additions/Releases of impairment losses on non-current assets

There were no such adjustments in 2020. In the prior year, in view of the positive equity situation at subsidiary Zeochem AG, Rüti ZH/CH, CHF 40.0 million of previous impairments to an intercompany loan were reversed.

2.3 Income from investments

2.3 Income from investments

This item includes profit distributions by certain subsidiaries.

2.4 Interest income

2.4 Interest income

Interest income derives predominantly from intercompany loans. For 2020, these were subject to interest rates of between 1.00 % and 2.25 % (prior year: between 1.00 % and 3.00 %).

2.5 Other financial income

2.5 Other financial income

This item consists primarily of income from securities and the positive net impact of currency movements on foreign-currency amounts held.

2.6 Interest expense

2.6 Interest expense

This item consists largely of the CHF 2.0 million (prior year: CHF 3.7 million) interest paid on the CHF 100 million 2.00 % corporate bond (duration 12 October 2018 to 12 October 2023). Interest was paid on two concurrent corporate bonds in 2019.

2.7 Other financial expense

2.7 Other financial expense

Other financial expense for 2020 consisted largely of currency losses of CHF 0.4 million (prior year: CHF 0.6 million) and ordinary financial expense of CHF 0.1 million (prior year: CHF 0.1 million).

2.8 Extraordinary, non-recurring or prior-period income and expense

2.8 Extraordinary, non-recurring or prior-period income and expense

No such amounts were earned or incurred in 2020 or 2019.

2.9 Cash and cash equivalents and assets held for short-term disposal with a quoted market price

2.9 Cash and cash equivalents and assets held for short-term disposal with a quoted market price

in CHF thousand

2020

2019

Cash and cash equivalents

52 156

35 560

Assets held for short-term disposal with a quoted market price

20

25

Total

52 176

35 585

2.10 Other short-term receivables

2.10 Other short-term receivables

Other short-term receivables consisted largely of value-added tax credits in both 2020 and 2019.

2.11 Long-term receivables from group member companies

2.11 Long-term receivables from group member companies

As a result of repayment activities, long-term receivables from group member companies decreased by a net CHF 12.9 million to CHF 336.1 million.

2.12 Investments

2.12 Investments

Holding in 2020

Holding in 2019

Name and legal form

Domicile

Remarks

Currency

Capital in thousand

Capital/Voting rights

Capital in thousand

Capital/Voting rights

Zeochem AG1)

Rüti ZH/CH

CHF

1 000

100 %

1 000

100 %

Zeochem L.L.C.

Louisville/USA

USD

36 547

100 %

36 547

100 %

Jiangsu Zeochem Technology Co. Ltd.1)

Lianyungang/CN

CNY

90 000

92 %

90 000

92 %

Zeochem d.o.o.1)

Zvornik/BA

EUR

2

100 %

2

100 %

Perlen Papier AG1)

Root/CH

CHF

81 000

100 %

81 000

100 %

Perlen Papier Immobilien AG

Root/CH

Founded 7.12.2020

CHF

1 000

100 %

APS Altpapier Service Schweiz AG

Root/CH

CHF

100

100 %

100

100 %

Perlen Deutschland GmbH

Munich/D

EUR

100

100 %

100

100 %

Perlen Packaging AG, Perlen1)

Root/CH

CHF

24 000

100 %

24 000

100 %

Perlen Packaging GmbH, Müllheim

Müllheim/D

EUR

1 300

100 %

1 300

100 %

Perlen Packaging L.L.C.

Whippany/USA

USD

1 000

100 %

1 000

100 %

Perlen Packaging (Suzhou) Co., Ltd.

Suzhou/CN

USD

13 000

100 %

13 000

100 %

Perlen Packaging Anápolis Indústria e Comércio Ltda.

Anápolis/BR

40 % holding purchased 4.12.2020

BRL

2 464

100 %

2 464

60 %

1) Directly held by CPH Chemie + Papier Holding AG

There were no changes to CPH Chemie + Papier Holding AG’s directly held investments in 2020 or 2019.

2.13 Liabilities towards pension schemes

2.13 Liabilities towards pension schemes

There were no liabilities towards pension schemes as of 31 December 2020 (prior year: CHF 0.0 million).

2.14 Accrued expenses and deferred income

2.14 Accrued expenses and deferred income

Accrued expenses and deferred income for 2020 included accrued interest on corporate bonds of CHF 0.4 million (prior year: CHF 0.4 million), pending tax payments of CHF 0.3 million (prior year: CHF 0.0 million) and accruals on employees’ salary and vacation entitlements of CHF 0.6 million (prior year: CHF 0.6 million).

2.15 Corporate bond

2.15 Corporate bond

This item relates to the CHF 100.0 million 2.00 % unsecured corporate bond (SIX code CPH18) issued on 12 October 2018 and maturing on 12 October 2023. The bond is listed on the SIX Swiss Exchange.

2.16 Share capital

2.16 Share capital

Share capital consists of 6 000 000 registered shares with a nominal value of CHF 0.20 per share. The Ordinary General Meeting of 17 March 2020 resolved to reduce the nominal value of the CPH share by CHF 1.80 from CHF 2.00 to CHF 0.20 and to use the reduction amount of CHF 1.80 per share (CHF 10.8 million in total) as a repayment to shareholders. This was formally effected on 25 May 2020 through a corresponding amendment to the company’s Articles of Incorporation. Uetikon Industrieholding AG, Uetikon holds 49.99% (prior year: 49.99%) of share capital. For the shares held by members of the Board of Directors and other significant shareholders, please see Note 29.2 in the “Additional information on the consolidated financial statements”.

2.17 Legal capital reserves

2.17 Legal capital reserves

The capital contribution reserve derives from the reduction in nominal value in 2018.

2.18 Treasury shares (and share-based compensation)

2.18 Treasury shares (and share-based compensation)

CPH Chemie + Papier Holding AG held 376 treasury shares at the end of 2020 (prior year: 572 shares), acquired at an average purchase price of CHF 72.61 (prior year: CHF 79.20) per share. A total of 21 438 treasury shares were purchased on the SIX Swiss Exchange in the course of 2020 (prior year: 16 584 shares) at an average purchase price of CHF 71.97 (prior year: CHF 81.91) per share, and a total of 19 253 treasury shares were sold via the SIX Swiss Exchange in the course of 2020 (prior year: 17 075 shares) at an average sale price of CHF 70.38 (prior year: CHF 81.67) per share. A further 1 190 shares of a total value of CHF 0.09 million were assigned to members of the management of CPH Chemie + Papier Holding AG in share-based compensation; and a further 1 191 shares of a total value of CHF 0.09 million were sold to subsidiaries for such assignment to their management members.