Net asset position

In CHF million, except where indicated   30.06.2020   31.12.2019   Change
Property, plant and equipment   10,559   10,529   0.3%
Intangible assets   1,785   1,842   –3.1%
Goodwill   5,154   5,163   –0.2%
Right-of-use assets   2,109   2,177   –3.1%
Trade receivables   2,147   2,183   –1.6%
Trade payables   (1,535)   (1,614)   –4.9%
Provisions   (1,183)   (1,134)   4.3%
Deferred gain on sale and leaseback of real estate   (116)   (122)   –4.9%
Other operating assets and liabilities, net   (5)   (38)   –86.8%
Net operating assets   18,915   18,986   –0.4%
Net debt   (7,171)   (6,758)   6.1%
Lease liabilities   (1,958)   (2,027)   –3.4%
Defined benefit obligations   (1,318)   (1,058)   24.6%
Income tax assets and liabilities, net   (563)   (607)   –7.2%
Equity-accounted investees and other non-current financial assets   333   339   –1.8%
Equity   8,238   8,875   –7.2%
Equity ratio in %   34.3   36.6    

Operating assets

Net operating assets were virtually unchanged at CHF 18.9 bil­lion (–0.4%). The increase in net debt and the decrease in shareholders’ equity compared with the end of 2019 is due to the dividend payment of CHF 1,140 million in April 2020. Correspondingly, the equity ratio fell from 36.6% to 34.3%. Pension liabilities increased as a result of a negative return on plan assets, which was partially offset by a higher discount rate.

Net debt

Net debt is composed of financial liabilities minus cash and cash equivalents, current financial assets, derivative financial instruments held to hedge financial liabilities and other non-current financial assets directly related to non-current financial liabilities (certificates of deposit, U.S. Treasury Bond Strips). Net debt and the net debt to EBITDA ratio are presented both with and without classification of leases as financial liabilities. For credit rating purposes, rating agencies include lease liabilities in the calculation of net debt. However, for the financial target of the Federal Council’s financing structure, leases are not classified as financial liabilities or part of net debt.

In CHF million   30.06.2020  
Debenture bonds   6,445  
Bank loans   886  
Private placements   150  
Other financial liabilities   302  
Total financial liabilities   7,783  
Cash and cash equivalents   (247)  
Non-current certificates of deposit   (132)  
Non-current listed debt instruments   (94)  
Non-current derivative financial instruments for financing   (77)  
Other current financial assets   (62)  
Net debt   7,171  
Lease liabilities   1,958  
Net debt incl. lease liabilities   9,129  

In recent years, Swisscom has taken advantage of favourable capital market conditions with a view to optimising the interest and maturity structure of the Group’s financial obligations. As at 30 June 2020, the average interest expense on long-term financial liabilities was 0.99%, the average residual term to maturity was 5.45 years and the share of variable interest-bearing financial liabilities was 19%.