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Balance sheet

In CHF million, except where indicated   30.06.2016   31.12.2015   Change
             
Assets
Cash and cash equivalents and current financial assets   474   409   15.9%
Trade and other receivables   2,538   2,535   0.1%
Property, plant and equipment   10,037   9,855   1.8%
Goodwill   5,163   5,161   0.0%
Other intangible assets   1,815   1,861   –2.5%
Investments in associates and non-current financial assets   499   461   8.2%
Income tax assets   381   375   1.6%
Other current and non-current assets   541   492   10.0%
Total assets   21,448   21,149   1.4%
             
Liabilities and equity
Financial liabilities   9,470   8,593   10.2%
Trade and other payables   1,729   1,768   –2.2%
Defined benefit obligations   3,747   2,919   28.4%
Provisions   947   1,139   –16.9%
Income tax liabilities   230   436   –47.2%
Other current and non-current liabilities   1,062   1,052   1.0%
Total liabilities   17,185   15,907   8.0%
Share of equity attributable to equity holders of Swisscom Ltd   4,257   5,237   –18.7%
Share of equity attributable to non-controlling interests   6   5   20.0%
Total equity   4,263   5,242   –18.7%
Total liabilities and equity   21,448   21,149   1.4%
Equity ratio at end of period   19.9%   24.8%    
             
Net debt   8,856   8,042   10.1%

Total assets at 30 June 2016 amounted to CHF 21,448 million, which equates to an increase of CHF 299 million or 1.4% versus the end of 2015. The increase in assets is mainly due to the higher volume of property, plant and equipment as a result of investment activity. Compared to the end of 2015, defined benefit obligations recognised under IAS 19 were CHF 828 million higher at CHF 3,747 million. This increase is mainly due to the lower discount rate, which fell from 0.94% to 0.41%. The main reason for the decline in provisions by CHF 192 million to CHF 947 million is the payment of the Competition Commission sanction as part of the ongoing proceedings regarding broadband services in the amount of CHF 186 million. Swisscom does not consider the sanction justified and lodged an appeal with the Federal Court. Equity fell by CHF 979 million or 18.7% to CHF 4,263 million, which corresponds to an equity ratio of 19.9% (24.8% as at 31 December 2015). Net income of CHF 788 million was offset by the dividend of CHF 1,140 million and the other net loss of CHF 620 million recognised in equity. This includes actuarial losses of CHF 783 million from pension plans arising mainly from interest rate changes. At the end of June 2016, the cumulative currency translation losses included in equity remain unchanged at about CHF 1.7 bil­lion.

Net debt comprises financial liabilities less cash and cash equivalents, current financial assets and non-current, fixed-interest-bearing deposits. Swisscom’s goal is to achieve a maximum net debt/EBITDA ratio (on an annual basis) of 2.1. This value may be exceeded temporarily. Financial leeway exists if the target is not reached.