Industrieholding Cham: Margins in Speciality ... - Investor Relations

Cham, October 2005
Industrieholding Cham: Margins in Speciality Papers under Pressure
In the first nine months of the current year, Industrieholding Cham (IC) generated consolidated
net revenue of CHF 318.6 million (previous year CHF 330.3 million). Excluding revenue from
the already divested wallpaper base business of the Cham Paper Group, this represents growth
in net revenue of 2%.
Net Revenue January 1 – September 30, 2005
2005 2004 1) Change vs. 2004
CHF mio. CHF mio. CHF mio. %
Cham Paper Group 309.6 320.8 -11.2 -3.5%
Net revenue excl. wallpaper
base
307.6 300.7 +6.9 +2.3%
Hammer Retex Group 9.0 9.5 -0.5 -5.3%
IC Group 318.6 330.3 -11.7 -3.5%
1) Excl. Kardex Group, deconsolidated as of 13.5.2004
Cham Paper Group: Slight increase in core business revenue
In the first nine months of the current fiscal year, the Cham Paper Group generated net
revenue of CHF 309.6 million (previous year CHF 320.8 million). Net of the divested wallpaper
base business, the Cham Paper Group increased its net sales by 2.3%. On the other hand, the
higher rate of order bookings and revenue expected for the third quarter did not materialise.
Development (in tonnes) of the individual product groups was mixed. The positive trend in selfadhesive
papers continued, producing growth of 9% relative to the previous year. Flexible
packaging remained stable. Technical papers added 2%, with the sharp decline in papers for
the beverages market being more than offset by increases in other papers within this product
group.
The regional spread remained stable, 79% of sales (in tonnes) in the reporting period coming
from Europe.
The steep rise in energy costs and prices of oil-based raw materials had a negative impact on
the margins of the Cham Paper Group. In view of the continuing weak demand of the endmarkets
and existing overcapacities in the market, these cost increases could only be passed
on as higher prices to a partial extent and with delay.
This press release is published in English and German, of which the original German version is legally binding.

These developments have caused the outlook for the Cham Paper Group to deteriorate. As
compared with previous forecasts, the Cham Paper Group now expects net sales in the fourth
quarter to be lower and margins to fall sharply.
For full fiscal 2005, the Cham Paper Group will not meet the previous year's values for
operating profit and net profit.
Hammer Retex Group: Attractive order intake in all divisions
At CHF 9.0 million, revenue in the third quarter was approximately CHF 0.5 million less than
last year (CHF 9.5 million).
The Hammer Retex Group has an attractive order intake of development and general
contracting projects. Its own capacities are fully utilised.
The property management division is progressively succeeding in increasing its income from
real estate management services.
The Hammer Retex Group's profit for fiscal 2005 will be higher than last year (2004 CHF 5.4
million).
Industrieholding Cham: Changeover to IFRS
The accounting changeover to IFRS is on schedule. To further increase transparency in the
real estate sector, properties belonging to the Hammer Retex Group will be recognised in the
balance sheet of the annual financial statements at fair value (IAS 40).
Industrieholding Cham: Handling of IC treasury shares and shareholding in Kardex AG
The Non-executive Board of Directors of IC intends to propose to the Annual General Meeting
of the company in April 2006 a reduction of the capital by elimination of most of the treasury
shares.
The Kardex shares will partially be sold. In addition, the Board will propose that shareholders of
IC receive Kardex shares as partial reduction of the nominal share value.
Industrieholding Cham is active in the fields of speciality papers and real estate.
Internationally, the Cham Paper Group is an important manufacturer of high-quality speciality papers. The Group operates 5 paper
mills in 3 countries: Switzerland, Italy and Norway. Total annual capacity amounts to 260,000 tonnes of speciality papers for flexible
packaging, self-adhesive papers, labels, various technical/industrial applications, inkjet and transfer printing.
The Hammer Retex Group is one of the leading real estate companies in central Switzerland. In recent years it has become a
major provider of real estate services in the areas of general contracting, real estate management, real estate consultancy and real
estate sales. In addition, it actively manages its own portfolio of real estate in Cham and develops zoned land reserves in step with
the progress of the market.
Key dates in 2006
Analysts' and media conference of Industrieholding Cham AG: Thursday, April 6, 2006
Publication of the annual report and financial results: Thursday, April 6, 2006
Annual General Meeting of Industrieholding Cham AG: Friday, April 28, 2006, 10:30 am, Lorzensaal, Cham
For further key dates please refer to homepage.
Contact for investors and media
Mrs Ageeth Walti-Slob, phone +41 41 785 18 80, fax +41 41 785 18 87, E-mail: walti.ageeth@iccham.com
Industrieholding Cham AG PO Box 6330 Cham Switzerland Phone +41 41 785 18 88 Fax +41 41 785 18 87 www.iccham.com
This press release is published in English and German, of which the original German version is legally binding.