Annual Report 2012 - Investor Relations

Notes to the Financial Statements of Cham Paper Group Holding AG73Notes to the Financial Statementsof Cham Paper Group Holding AG1. IntroductionThe financial statements of Cham Paper Group Holding AG, Fabrikstrasse, 6330 Cham, Switzerland, comply with the requirements of theSwiss Code of Obligations.2. Valuation and accounting methodsSecurities (with the exception of treasury shares) are reported at the lower of acquisition cost or market value. All other assets, includingparticipations and loans, are posted at acquisition cost less suitable value adjustments. All liabilities are valued at nominal values. Assets andliabilities denominated in a foreign currency are translated into Swiss francs at year-end exchange rates except for participations, which aretranslated at historical rates. Transactions in foreign currencies during the year are carried out at the exchange rates prevailing on the transactiondates. Exchange rate gains and losses are posted on the income statement with the exception of unrealised gains, which are set aside.3. Participation incomeIn 2012 no participation income was realised (2011: dividends from subsidiaries of TCHF 5,561).4. ParticipationsThe participations of Cham Paper Group Holding AG in subsidiaries are listed in Note 27 of the consolidated financial statements.As of 31 December 2012 no impairment of the participations had been applied (2011: negative value adjustment of TCHF 130,000).5. Treasury sharesIn FY 2012 and 2011, no treasury shares were purchased or sold.Due to the employee share ownership scheme, members of the Board of Directors were allotted 2,311 treasury shares in 2012 (2011:2,067) at the average share price in effect in November 2012 of CHF 157.00 (2011: CHF 153.00). The members of the Executive Committeeand the Executive Management Board respectively were allotted 336 (2011: 403) treasury shares at the average share price in effectin November 2012 of CHF 157.00 (2011: CHF 210.00, at the average share price in effect in March).In 2012 and 2011 treasury shares were adjusted to their market value.The number of treasury shares as at 31 December 2012 was 41,655 (2011: 44,302). The number of treasury shares held by Cham PaperGroup Holding AG was determined in accordance with the requirements of Article 659b of the Swiss Code of Obligations. Treasuryshares are not entitled to dividends.6. Subordinated loanA subordinated loan of TCHF 3,000 (2011: TCHF 3,000) is reported under “loans to subsidiaries”.