Shareholders' Letter

The contractual maturities of financial liabilities including estimated interest payments are as follows:
Carrying Contractual Due within Due within Due within Due after
In CHF million amount payments 1 year 1 to 2 years 3 to 5 years 5 years
31 December 2010
Non-derivative financial liabilities
Money market borrowings 700 700 700 – – –
Bank loans 1,460 1,628 37 26 1,365 200
Debenture bonds 5,195 6,195 170 420 2,721 2,884
Private placements 1,409 1,501 18 164 367 952
Finance lease liabilities 675 1,965 56 65 140 1,704
Other interest-bearing financial liabilities 20 20 11 5 3 1
Other non-interest-bearing financial liabilities 114 114 90 24 – –
Trade and other payables 2,215 2,215 2,215 – – –
Derivative financial liabilities
Derivative financial instruments 199 204 38 3 163 –
Total 11,987 14,542 3,335 707 4,759 5,741
Carrying Contractual Due within Due within Due within Due after
In CHF million, restated amount payments 1 year 1 to 2 years 3 to 5 years 5 years
31 December 2009
Non-derivative financial liabilities
Money market borrowings 300 300 300 – – –
Bank loans 2,570 2,475 11 2,220 18 226
Debenture bonds 4,801 5,799 516 155 2,245 2,883
Private placements 1,523 1,691 371 35 479 806
Financial liabilities from
cross-border lease agreements 15 17 10 2 5 –
Finance lease liabilities 695 2,026 62 57 157 1,750
Other interest-bearing financial liabilities 135 135 125 4 5 1
Other non-interest-bearing financial liabilities 28 28 6 13 9 –
Trade and other payables 2,314 2,314 2,314 – – –
Derivative financial liabilities
Derivative financial instruments 152 160 68 32 60 –
Total 12,533 14,945 3,783 2,518 2,978 5,666
Estimation of fair values
The carrying amounts of trade receivables and payables as well as other receivables and payables
are a reasonable estimate of their fair value because of their short-term maturities. The carrying
amounts of cash and cash equivalents and current loans receivable correspond to the fair values.
The fair value of available-for-sale financial investments is based on quoted stock exchange prices
or equates their purchase cost. The fair values of other non-current financial assets are computed
on the basis of the maturing future payments, discounted at market interest rates. The fair value
of fixed interest-bearing financial liabilities is estimated on the basis of the maturing future payments
discounted at market interest rates. The fair value of finance lease obligations is estimated
on the basis of the maturing future payments, discounted at market interest rates. The fair value
of publicly traded derivative financial instruments as well as investments held for trading or for
sale is based on quoted stock exchange prices as of the balance sheet date. Interest rate and currency
swaps are discounted at market interest rates. Foreign exchange forward contracts are valued
by reference to foreign exchange forward rates as of the balance sheet date. Foreign currency
options are measured using option pricing models.