Shareholders' Letter

Movements in current tax assets and liabilities may be analysed as follows:
In CHF million 2010 2009
Balance at 1 January 171 125
Recognised in income statement 492 339
Recognised in other comprehensive income (271) 6
Income taxes paid (365) (300)
Recording of tax assets previously unrecognised (22) –
Foreign currency translation adjustments – 1
Balance at 31 December 5 171
Thereof current income tax assets 30 48
Thereof current income tax liabilities (35) (219)
In the years 2003 and 2006, Fastweb sold income tax and value-added tax receivables to financial
institutions. With this sale, substantially all of the risks and opportunities related to these tax
assets were transferred. In 2010, a new contract was entered into with the financial institutions
and the tax assets, including accrued interest, were taken back. As a result thereof income tax
receivables of CHF 22 million, value-added tax receivables of CHF 25 million as well as other financial
liabilities of CHF 47 million were recorded. The value-added tax receivables are recorded in the
caption “other non-financial assets”.
Recognised deferred tax assets and liabilities may be analysed as follows:
31.12.2010 31.12.2009 restated
Net Net
In CHF million Assets Liabilities amount Assets Liabilities amount
Trade and other receivables 27 – 27 29 – 29
Property, plant and equipment – (262) (262) – (205) (205)
Intangible assets – (447) (447) – (530) (530)
Defined benefit obligations – (35) (35) 6 – 6
Tax loss carry-forwards 169 – 169 250 – 250
Other 89 (23) 66 32 (48) (16)
Total tax assets (tax liabilities) 285 (767) (482) 317 (783) (466)
Thereof deferred tax assets 71 57
Thereof deferred tax liabilities (553) (523)
Deferred tax assets and liabilities have changed as follows:
Recognised Change in
Foreign
currency
Balance at in income scope of translation Balance at
In CHF million 31.12.2009 statement consolidation adjustments 31.12.2010
Trade and other receivables 29 7 – (9) 27
Property, plant and equipment (205) (48) – (9) (262)
Intangible assets (530) 32 (4) 55 (447)
Defined benefit obligations 6 (39) – (2) (35)
Tax loss carry-forwards 250 (47) – (34) 169
Other (16) 85 – (3) 66
Total (466) (10) (4) (2) (482)