Shareholders' Letter

The main reasons for the recognition of goodwill are the additional market shares expected in
future and the qualified workforce. From these business combinations, there resulted additional
net revenues of CHF 48 million and a loss of CHF 2 million in the 2010 consolidated financial statements.
Assuming that the subsidiary companies acquired in 2010 had been included in the consolidated
financial statements as from 1 January 2010, there would have resulted consolidated
pro-forma net revenue of CHF 12,039 million and a consolidated pro-forma net income of CHF
1,786 million.
Business combinations in 2009
Payments totalling CHF 47 million were made in 2009 for the acquisition of Group companies. Of
this amount, CHF 11 million are for deferred consideration payments for business combinations
in prior years. The newly acquired companies in 2009 are viewed each as non-significant acquisitions
and are thus presented on an aggregate basis in the financial statements.
On 30 June 2009, Swisscom IT Services completed the acquisition of 60% of the share capital of
Sourcag Ltd which provides standardised back office services in the fields of security settlements
and payments for banks. On 30 June 2009, Swisscom IT Services acquired the entire capital of
Resource Ltd. Resource Ltd plans, develops and implements SAP-based IT solutions both for small
and medium-sized companies as well as for large corporations. On 31 October 2009, Swisscom
acquired the entire capital of Weco Inkasso Ltd which is active in the field of loss certificate and
receivable collection services of banks. Weco Inkasso Ltd was merged with Alphapay Ltd following
the acquisition.
The aggregate allocation of acquisition costs to the net assets may be analysed as follows:
Pre-acquisition Post-acquisition
In CHF million carrying amount Adjustments carrying amount
Cash and cash equivalents 9 – 9
Trade and other receivables 7 – 7
Other financial assets 10 – 10
Property, plant and equipment 2 – 2
Other intangible assets – 26 26
Deferred tax assets 2 – 2
Other current and non-current assets 2 – 2
Financial liabilities (2) – (2)
Trade and other payables (11) – (11)
Defined benefit obligations (10) – (10)
Deferred tax liabilities – (6) (6)
Other current and non-current liabilities (4) – (4)
Identifiable assets and liabilities 5 20 25
Share of equity attributable to minority interests (4)
Goodwill 36
Acquisition costs 57
Cash and cash equivalents acquired (9)
Deferred payment of purchase price (12)
Cash outflow 36
The main reasons for the recognition of goodwill are the anticipated additional future market
shares, qualifying services, processes and systems as well as synergies arising from the merger of
Weco Inkasso Ltd with Alphapay Ltd. The consolidated financial statements of 2009 reflect additional
net revenues of CHF 28 million and net loss of CHF 2 million as a result of these business
acquisitions. On the assumption that the subsidiaries acquired in 2009 had been included in consolidation
as from 1 January 2009, pro-forma consolidated net revenue of CHF 12,043 million and
a pro-forma consolidated net income of CHF 1,929 million would have been reported.
Consolidated financial statements 156 | 157
Notes to the consolidated financial statements