Notes on the financial statements of CPH Chemie + Papier Holding AG

The annual financial statements of CPH Chemie + Papier Holding AG have been compiled in accordance with the provisions on commercial accounting of the Swiss Code of Obligations.

The presentation of these financial statements has been revised for the year under review to enhance their readability. The structures of the income statement and the balance sheet have been simplified in accordance with the provisions on commercial accounting specified in the Swiss Code of Obligations, and the notes thereto have been modified accordingly. This permits a clearer presentation of the company’s financial performance. There were no significant adjustments to the disclosure of individual key financial figures for the prior year.

The company provides consolidated financial statements in accordance with Swiss GAAP FER accounting standards. In view of this, the company has elected not to provide expanded notes to these financial statements, a management report and a cash flow statement.

The major balance sheet items have been presented as follows.

Receivables are stated at their nominal value less any necessary individual value adjustments. Such value adjustments are determined on the basis of maturity structures and identifiable credit risks.

Investments are stated at their purchase price less appropriate value adjustments for likely long-term impairments. Investments are valued individually if and insofar as they generate separate cash flows.

Interest-bearing liabilities are stated at their nominal value. Those with a residual term to maturity of up to one year are shown under current liabilities; those with a residual term to maturity of more than one year are shown under non-current liabilities.

Transactions effected in foreign currencies are translated into Swiss francs at the exchange rate valid as at the date of the transaction. Assets and liabilities in foreign currencies are translated into Swiss francs at the exchange rate valid as at the balance sheet date, and applying the imparity principle.