sbb «financial report 2012»

SBB Financial Report 2012

Report on the Group’s financial position.SBB in 2012.

SBB has improved on its 2011 result: consolidated net incomefor 2012 came in at CHF 422.5 million (2011: CHF 338.7 million).One-off effects and reversals of provisions (CHF 93.2 million,including reversals of provisions for the pension fund and highermarket valuation of securities) raised the result. When adjustedfor these one-off effects, the operating performance improvedslightly compared to the previous year. Traffic revenues roseslightly by 0.8 % thanks to fare adjustments, despite a stagnationin demand for transport. A positive contribution was madeby real estate rental revenue. By contrast, operating expensesincreased despite productivity improvements. This was duein part to higher personnel expenses, train path costs, and main-tenance costs, as well as depreciation. Finally, the financialresult boosted consolidated net income thanks to a lower financ-ing requirement.

Free cash flow improved to CHF 905.8 million (previous year:CHF –5.2 million) owing to active cash management and thesale of Railway Employees’ Building Society (EGB) mortgages.By contrast, higher commercially financed investment (particularlyrolling stock) weighed on free cash flow.

Net interest-bearing debt amounted to CHF 6.8 billion, andwas reduced by CHF 0.7 billion compared to 2011.

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Contents.Financial Report.

SBB GroupP 80 Report on the Group’s financial positionP 88 Consolidated income statementP 89 Consolidated balance sheetP 90 Consolidated cash flow statementP 91 Consolidated statement of changes in equityP 92 Notes to the consolidated financial statements 2012P 119 Report of the statutory auditor on the consolidated financial

statements

SBB AGP 121 SBB AG income statementP 122 SBB AG balance sheetP 123 Notes to the separate financial statements of SBB AGP 132 Board’s proposal for the appropriation of accumulated lossP 133 Report of the statutory auditor on the financial statements

The full Annual Report is available in German, French and Italian only.

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SBB in 2012Report on the Group’s financial position

A difficult economic environment last year resulted in stagnatingto declining demand in some of the passenger and freight mar-kets. The number of passenger-kilometres declined for the firsttime due to the trend in long-distance passenger services, whichrevealed a saturation tendency in the commuter market as wellas a decline in the leisure travel market. Passenger revenuesgrew solely because of fare adjustments. In the Freight Division,the closure of the Gotthard mountain route on three occasions,the economic situation and ongoing capacity reductions infreight-intensive industries led to a decrease in volumesand revenues. Real Estate increased rental revenue thanks tothe commissioning of new premises and optimisation of thetenant mix.

Operating expenses rose by 2.5 % year on year. The primarycauses of this development were higher headcount, higher trainpath and energy costs, higher IT costs and an increase in third-party services for maintenance and repairs.

Overall, this led to a year-on-year decline in the operatingresult (CHF 490.9 million, –7.3 %). Thanks to a stronger finan-cial result, consolidated net income rose from CHF 338.7 millionin 2011 to CHF 422.5 million in the 2012 financial year. Thefinancial result of the previous year was influenced by negativeone-off effects such as the early termination of a leasing trans-action.

Extension of the rail network, particularly the Zurich cross-cityline and the Cornavin-Eaux-Vives-Annemasse (CEVA) rail link,together with an increase in network capacity utilisation, requiredadditional funding for the rail infrastructure. The InfrastructureDivision invested CHF 1,659.4 million (+20.7 % year on year) in2012. SBB contributed to the other rail infrastructure investmentprojects that have been implemented by improving its efficiencyand through successful purchasing activities.

The Passenger Division expanded its regional and long-distance fleets with the addition of new double-deck trains.Investment was made in new ETR-610 tilting trains for servicesto Italy. In addition to further purchases of rolling stock, existingvehicles were also modernised. Overall, new investment volumerose by CHF 460.2 million (+83.1 %) year on year to CHF 1,013.7million.

The investment volume in the Freight Division declined byCHF 15.7 million year to CHF 46.3 million, due among otherthings to the decision not to carry out retrofits on shuntinglocomotives.

Real Estate invested CHF 392.1 million (CHF +65.2 millionyear on year) in the development of central sites near to stationssuch as the Europaallee in Zurich, Basel’s Südpark and Trans-Europe in Neuchâtel.

Energy invested CHF 67.8 million (CHF –75.6 million yearon year) in upgrading and maintaining energy production andtransmission facilities.

Consolidated net income 2008-2012.

CHF millions

422

491

200

300

400

500

2008 2009 2010 2011 2012

600

100

Operating result (EBIT)Consolidated net income

Capital expenditure 2008-2012.

CHF millions

2008 2009 2010 2011

500

1,000

1,500

2,000

2,500

3,500

3,000

2012

3,207

Infrastructure (network)PassengerFreight

Real Estate,Infrastructure (energy),other

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Free cash flow came in at CHF 905.8 million, a substantialimprovement on the previous year (CHF –5.2 million).

Cash flow from operating activities improved by CHF 551.1million thanks to active cash management, particularly in adjust-ments to invoicing and booking processes in passenger servicesand due to payments received for the cross-city line from theprevious year.

Cash outflows as a result of higher investment in property,plant and equipment such as rolling stock were more than off-set by cash inflows from divestments of financial assets, par-ticularly the sale of Railway Employees’ Building Society (EGB)mortgages to the SBB pension fund. Overall, cash flow frominvesting activities improved by CHF 229.7 million year on year.

The public sector commissions and finances rail infrastruc-ture maintenance and improvements. In the 2012 financial yearthis amounted to CHF 1,605.3 million (CHF +130.2 million com-pared to the previous year, of which CHF 137.6 million wasearmarked for CEVA).

Federal government grants for infrastructure cover any costsnot covered by the statutory track charges in relation to theprovision and operation of the rail network and a network main-tenance contribution equivalent to reported depreciation.

Grants for regional passenger services are the subsidiespaid by public-sector authorities for services whose costs arenot covered by passenger revenues.

Loans from the infrastructure fund and the “FinöV” fundwere granted primarily for expanding the Zurich cross-city line,CEVA and links with the European high-speed network.

Free cash flow before and after public-sectorfunding 2008-2012.CHF millions

–2,000

–3,000

–1,000

0

1,000

2008 2009 2010 2011 2012

–70

0

90

6

Free cash flow before public-sector funding of rail infrastructureFree cash flow after public-sector funding of rail infrastructure

Public-sector funding 2008-2012.

CHF millions

Grants and payments for infrastructure and grants to Cargofor non-transalpine rail freightGrants for regional passenger servicesFederal and cantonal loans for infrastructure

750

1,500

2,250

3,000

2008 2009 2010 2011 2012

3,109

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Operating expenses rose by 2.5 % year on year.Personnel expenses rose by 2.2 % in the reporting year

owing to wage increases and a higher average workforce (+655to 29,240 FTEs).

Other operating expenses rose by CHF 76.5 million yearon year owing to higher train path and energy costs, higher ITcosts and an increase in third-party services for maintenanceand repairs.

Depreciation of investments, particularly in expansion, assetmaintenance and rolling stock, rose by 4.0 % year on yearbecause of the higher investment volume. Taking impairmentinto account, the volume of depreciation overall remained virtu-ally constant at +1.1 %.

Increased maintenance activity led to a CHF +12.5 millionrise in the cost of materials.

Operating income rose by 1.8 % year on year to CHF 8,168.5million.

Despite a decline in passenger-kilometres due to develop-ments in long-distance services, passenger traffic revenues roseby 1.8 % year on year owing to fare adjustments. The declinein freight traffic revenues by 3.0 % was primarily the result oflower traffic volumes. The underlying causes were the closureof the Gotthard mountain route on three occasions, the difficulteconomic environment and ongoing capacity reductions infreight-intensive industries.

The public-sector grants figures include the revenue com-ponents for infrastructure operations and maintenance that arereflected in the income statement, plus grants for regional andfreight services. The increase of CHF 16.9 million compared tothe previous year is primarily due to higher grants to regionalpassenger services for new rolling stock. By contrast, the grantsto Cargo declined owing to the discontinuation of payments tocompensate for the strength of the Swiss franc. Public-sectorpayments for infrastructure remained virtually constant year onyear.

Own work capitalised for infrastructure and the renewal ofthe existing passenger fleet rose by CHF 57.4 million.

Rental revenue at Real Estate increased thanks to the rentalof new premises such as the Europaallee in Zurich and due alsoto an improved tenant mix.

Operating expenses 2008-2012.

CHF millions

2,000

4,000

6,000

8,000

10,000

2008 2009 2010 2011 2012

7,678

Personnel expensesOther operating expenses

DepreciationCost of materials

Operating income 2008-2012.

CHF millions

2,000

4,000

6,000

8,000

10,000

2008 2009 2010 2011 2012

8,169

Traffic revenuesPublic-sector payments(excluding loans)

Other incomeOwn work capitalisedRental revenue from Real Estate

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The financial result amounted to CHF –121.8 million. Whenadjusted for one-off effects such as the early termination of alease transaction in 2011 (CHF –78.1 million) the financial resultimproved by CHF 79.8 million year on year. The reasons for thisimprovement include a higher market valuation of securities(CHF +27.5 million) and lower foreign currency losses (CHF +19.5million).

Financial result 2008-2012.

CHF millions

–122

–200

–250

–150

–100

–50

0

2008 2009 2010 2011 2012

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Net interest-bearing debt (interest-bearing financial liabilitiesminus cash and cash equivalents as well as securities and cur-rent receivables) declined by CHF 652.5 million year on year toCHF 6.8 billion. As a result, net interest-bearing debt last yearamounted to 12.3 times SBB’s operating result (EBIT). In 2011,the debt coverage ratio (net interest-bearing debt divided byEBIT including gains from real estate disposals) stood at 12.6.

The rise in federal and cantonal loans includes investmentsin repairs and upgrades.

Property, plant and equipment and assets under constructionrose from CHF 27,485.3 million in 2008 to CHF 31,252.2 millionin 2012 (+3.3 % p. a.). The 4.8 % increase in the financial yearwas primarily the result of the procurement of the double-decktrains, fleet modernisation, and an increase in real estate, inparticular the new premises at Zurich’s Europaallee.

The year-on-year decline in financial and intangible assetsby CHF 568.7 million is primarily attributable to the sale of Rail-way Employees’ Building Society (EGB) mortgages to the SBBpension fund.

Current assets rose by 5.4 % in a year-on-year comparison,owing in particular to the rise in cash and cash equivalents fromthe sale of mortgages of the Railway Employees’ Building Soci-ety (EGB) to the SBB pension fund. Receivables and prepaidexpenses/accrued income declined as a result of active cashmanagement in particular.

Balance sheet breakdown(equity and liabilities) 2008-2012.

CHF millions

8,000

16,000

24,000

32,000

40,000

2008 2009 2010 2011 2012

34,877

EquityPublic-sector loans(federal and cantonal)

Interest-bearing debtOther liabilities

Balance sheet breakdown (assets) 2008-2012.

CHF millions

8,000

16,000

24,000

32,000

40,000

2008 2009 2010 2011 2012

34,877

Property, plant and equipmentAssets under construction

Financial and intangible assetsCurrent assets

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Passenger.As a result of fare adjustments, traffic revenues rose in 2012despite a decline in transport demand. The additional receiptswere largely offset by higher train path costs, most notablytraction power, and higher personnel expenses due to theexpanded range of services. The financial result improved yearon year, owing in particular to foreign currency effects. Overall,passenger services contributed earnings of CHF 268.9 million(+25.7 % year on year).

Freight.Freight traffic revenues declined as a result of lower freightvolumes (CHF –17.9 million year on year). Despite the difficulteconomic environment and ongoing capacity reductions infreight-intensive industries, sales remained at the previous year’slevel when adjusted for the effect of the closure of the Gotthardmountain route on three occasions. Restructuring measures ledto lower personnel expenses and cost of materials. The contri-bution to earnings deteriorated by CHF 5.2 million to CHF –51.2million in 2012.

Infrastructure.Infrastructure contributed earnings of CHF 37.1 million in 2012(–48.8 % year on year), of which Network contributed CHF –44.4million and Energy CHF 81.5 million.

Owing to findings detailed in the Network Status Report in 2011,action was taken to stabilise the maintenance backlog in railinfrastructure and additional work was carried out. The propor-tion of assets in good or very good condition rose from 74 % to78 %. Maintenance costs rose accordingly, and higher train pathrevenues and efficiency improvements were not sufficient tooffset the increase. Consequently, the Network unit posted anegative result (not covered by federal contributions) amountingto CHF –44.4 million (CHF –91.4 million year on year).

The Energy unit contributed CHF 81.5 million to earnings.This improvement in the result by CHF 56.1 million year on yearis attributable to the increase in the sale price for traction powerby CHF 0.01 per kWh and higher energy sales in the marketdue to additional production, which in turn was due to excep-tionally high water inflow.

Real Estate.Rental revenue rose year on year thanks to the addition of newpremises, including the Europaallee in Zurich, and optimisationsin the tenant mix. The annual earnings contribution amountedto CHF 8.6 million after annual compensation payments. Seg-ment earnings prior to compensation payments amounted toCHF 192.4 million. Of this amount, CHF 150 million accrued toInfrastructure, while the remainder was used for interest andcapital repayments for the restructuring of the pension fund.

Segment earnings 2008-2012.Passenger Freight Infrastructure Real Estate

CHF millions

–100

–200

0

100

–51

37269

9

200

300

2008 09 10 11 12 2008 09 10 11 12 2008 09 10 11 12 2008 09 10 11 12

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Passenger.Free cash flow in the financial year amounted to CHF 120.5million (CHF +101.0 million year on year). Owing to the improvedannual result and active cash management, particularly adjust-ments to invoicing and booking processes, the higher cashoutflow from investing activities (CHF –417.2 million year onyear) was more than offset.

Freight.The decline in free cash flow by CHF 8.1 million year on year(CHF –49.9 million in 2012) is attributable above all to lowerearnings and higher negative cash flow from investing activitiescompared to 2011.

Infrastructure.The negative free cash flow reflects capital expenditure on therail infrastructure commissioned and financed by the federalgovernment.

Real Estate.Despite higher earnings prior to compensation payments andactive cash management, increased investing activities led tohigher negative free cash flow year on year (CHF –185.2 millioncompared to CHF –138.9 million in 2011).

Free cash flow by segment 2008-2012.Passenger Freight Infrastructure Real Estate

CHF millions

–1,000

–1,500

–500

121

–50

–18

5

–1,

531

0

500

2008 09 10 11 12 2008 09 10 11 12 2008 09 10 11 12 2008 09 10 11 12

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Outlook.Over the next few years, SBB will continuously develop its ser-vices and gradually expand its offering, particularly with theoperational launch of the Zurich cross-city line (from 2014), newservices in southern Switzerland and the Geneva region, andthe upgraded north-south route through the Gotthard BaseTunnel (end of 2016). Additional funding will be requiredfor increased maintenance and reduction of the infrastructurebacklog.

Increasingly difficult times mean that latitude will be requiredif SBB’s business is to be developed sustainably and futurestrains (particularly in the passenger business) successfullymastered. In view of the prevailing economic uncertainties, SBBmust prepare for the possibility of lower public funding beingavailable for public transport. This means an even greater focusis being placed on productivity and investment in high-incomeareas.

To strengthen its earning power, SBB focuses consistentlyon increasing benefits to customers. Additional revenue fromself-financing long-distance passenger services and a sustain-able restructuring of freight services are needed. This is essen-tial if sufficient funds are to be available for meeting future chal-lenges and expanding the overall service offering. The currentinvestment in Real Estate will also help to secure SBB’s futureearnings.

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SBB GroupConsolidated income statement

Consolidated income statement.

1 January–31 December.

CHF millions Note 2012 2011

Operating incomeTraffic revenues 1 3,705.3 3,675.4

Public-sector funding 2 2,321.3 2,304.5

Rental income from real estate 3 386.5 353.5

Other income 4 865.9 856.3

Own work capitalised 5 889.5 832.1

Total operating income 8,168.5 8,021.7

Operating expensesCost of materials 6 –697.4 –684.9

Personnel expenses 7 –3,632.8 –3,554.3

Other operating expenses 8 –1,655.7 –1,579.1

Write-downs of financial assets, depreciation of property, plant and equipment,

amortisation of intangible assets 9, 21, 22, 23 –1,691.8 –1,673.8

Total operating expenses –7,677.7 –7,492.1

Operating result/EBIT 490.9 529.7

Financial income 10 86.2 94.9

Financial expenses 11 –207.9 –345.0

Profit from ordinary activities 369.1 279.5

Non-operating result 12 65.3 66.9

Profit before tax 434.4 346.5

Income taxes 13 –11.8 –6.6

Minority interests 14 –0.1 –1.1

Consolidated net income 422.5 338.7

The Notes form an integral part of these financial statements.

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SBB GroupConsolidated balance sheet

Consolidated balance sheet.

Assets.

CHF millions Note 31. 12. 2012 31. 12. 2011

Current assetsCash and cash equivalents 15 809.3 282.2

Current financial receivables 16 2.0 188.1

Trade accounts receivable 17 595.0 805.1

Other receivables 18 214.0 167.0

Inventories and work in progress 19 353.6 316.8

Prepaid expenses and accrued income 20 438.9 530.5

Total current assets 2,412.8 2,289.7

Fixed assetsFinancial assets 21 487.9 1,116.7

Property, plant and equipment 22 25,150.8 24,720.1

Assets under construction – property, plant and equipment 22 6,101.4 5,090.6

Intangible assets 23 723.8 663.6

Total fixed assets 32,463.9 31,591.1

Total assets 34,876.7 33,880.8


Equity and liabilities.


LiabilitiesCurrent financial liabilities 24 271.1 582.6

Current public-sector loans for rail infrastructure financing 25 46.9 55.6

Trade accounts payable 26 921.1 745.1

Other current liabilities 27 195.2 176.6

Deferred income and accrued charges 28 1,460.4 1,390.6

Current provisions 29 247.2 269.4

Total current liabilities 3,142.0 3,219.9

Non-current financial liabilities 24 7,382.1 7,382.1

Non-current public-sector loans for rail infrastructure financing 25 11,388.9 10,661.6

Other non-current liabilities 27 1,891.4 1,962.3

Non-current provisions 29 308.9 310.5

Total non-current liabilities 20,971.3 20,316.5

Total liabilities 24,113.2 23,536.4

EquityShare capital 9,000.0 9,000.0

Capital reserves 2,069.1 2,069.1

Retained earnings/accumulated loss before consolidated net income –814.2 –1,152.9


Equity, excl. minority interests 10,677.3 10,254.9

Minority interests 14 86.1 89.4

Total equity 10,763.5 10,344.3

Total equity and liabilities 34,876.7 33,880.8


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SBB GroupConsolidated cash flow statement

Consolidated cash flow statement.

1 January–31 December.



Depreciation and amortisation of fixed assets 1,704.9 1,647.3

Reversal of/loss from impairment –13.1 26.5

Decrease of provisions –48.4 –102.9

Other expenses/income not affecting cash flows –129.2 25.8

Gains on the disposal of fixed assets –70.6 –82.2

Pro rata profits from application of equity method –1.8 –1.2

Earnings from minority interests 0.1 1.1

Change in net current assets affecting cash flow 30 503.8 –67.2

Cash flow from operating activities including federal governmentcontributions for depreciation on SBB infrastructure 2,368.3 1,786.0

Federal government contributions for depreciation on SBB infrastructure –932.2 –901.0

Cash flow from operating activities excluding federal governmentcontributions for depreciation on SBB infrastructure 1,436.1 884.9

Outflows from the liquidation of consolidated companies –1.5 0.0

Outflows for investment in property, plant and equipment/assets under construction –2,996.3 –2,246.2

Inflows from disposal of property, plant and equipment 89.4 91.1

Outflows for investment in financial assets –14.4 –61.1

Inflows from disposal of financial assets 945.5 72.9

Outflows for investment in intangible assets –158.7 –222.3

Inflows from disposal of intangible assets 0.5 0.4

Cash flow from investing activities –2,135.6 –2,365.3

Financing of rail infrastructure investment by non-repayable federal government grants 932.2 901.0

Public-sector loan for financing of rail infrastructure 673.1 574.1

Repayment of current financial liabilities –564.3 –227.3

Assumption of non-current financial liabilities 186.0 34.1

Assumption of other non-current liabilities 2.0 3.1

Dividend payments to minority shareholders –1.2 –0.4

Capital repayments to minority shareholders –1.0 0.0

Cash flow from financing activities 1,226.8 1,284.5

Total cash flow 527.2 –195.8

Cash and cash equivalents as at 1 January 282.2 479.4

Difference on foreign currency translation –0.1 –1.5

Cash and cash equivalents as at 31 December 809.3 282.2

Change in cash and cash equivalents 527.2 –195.8


Free cash flow.

CHF millions 2012 2011

Cash flow from operating activities 1,436.1 884.9

Cash flow from investing activities –2,135.6 –2,365.3

Free cash flow before public-sector financing of rail infrastructure –699.5 –1,480.3

Cash flow from public-sector financing of rail infrastructure 1,605.3 1,475.1

Free cash flow after public-sector financing of rail infrastructure 905.8 –5.2

Cash flow from financing for commercial investments and pension fund restructuring –378.5 –190.6

Total cash flow 527.2 –195.8

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SBB GroupConsolidated statement of changes in equity

Consolidated statement of changes in equity.

CHF millions Share capital Capitalreserves

(premium)

Retainedearnings

Difference onforeign

currencytranslation

Total excl.minority

interests

Minorityinterests

Total incl.minority

interests

Equity as at 1. 1. 2011 9,000.0 2,069.1 –1,146.6 –6.6 9,915.9 79.5 9,995.4

Dividends 0.0 0.0 0.0 0.0 0.0 –0.4 –0.4

Change in minority shareholders 0.0 0.0 0.0 0.0 0.0 9.9 9.9

Consolidated net income 0.0 0.0 338.7 0.0 338.7 1.1 339.9

Currency translation effect 0.0 0.0 0.0 0.3 0.3 –0.8 –0.5

Equity as at 31. 12. 2011 9,000.0 2,069.1 –807.9 –6.3 10,254.9 89.4 10,344.3

Change in scope of consolidation 0.0 0.0 0.0 0.0 0.0 –1.1 –1.1

Dividends 0.0 0.0 0.0 0.0 0.0 –1.2 –1.2

Change in minority shareholders 0.0 0.0 0.0 0.0 0.0 –1.2 –1.2

Consolidated net income 0.0 0.0 422.5 0.0 422.5 0.1 422.6

Equity as at 31. 12. 2012 9,000.0 2,069.1 –385.4 –6.3 10,677.3 86.1 10,763.5

The share capital is divided into 180 million fully paid-up registered shares with a par value of CHF 50 each. The Swiss Confederation is the sole shareholder.

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SBB GroupNotes to the consolidated financial statements 2012

Notes to the consolidated financial statements 2012.Principles of consolidation.

General.The accounting principles applied to these consolidated financial statements meet the requirements of Swiss company law and the Swiss Accounting

and Reporting Recommendations (Swiss GAAP FER), and give a true and fair view of the financial position, cash flows and results of operations.

Closing date.The reporting period for all consolidated companies covers twelve months. The fiscal year for all consolidated entities with the exception of Kraftwerk

Rupperswil-Auenstein AG (closing date: 30 September) is identical to the calendar year.

Scope of consolidation.The consolidated financial statements comprise the separate financial statements of Swiss Federal Railways (SBB AG) and those interests in which SBB

AG directly or indirectly holds the majority of the voting shares.

The 100 % interest in AlpTransit Gotthard AG is not consolidated, but is included using the equity method. Under a special agreement between the Swiss

Confederation and SBB, the federal government is directly responsible for management. The principle of uniform management throughout the SBB Group

does not apply in this case, therefore.

As well as managing cross-border lease transactions, SBB also liaises with special purpose entities (SPE). SBB has neither shares nor share options,

voting or any other general rights in these SPEs. As a result, they are not included in the scope of consolidation. These operations are recognised as

finance leases in the balance sheet.

The companies in the scope of consolidation are shown in the list of shareholdings on page 118.

Consolidation method.Acquisition accounting is performed using the Anglo-Saxon purchase method. Intra-group assets, liabilities, expenses and income are offset against each

other. Profits on intra-group accounts not yet realised through sales to third parties are eliminated on consolidation.

On initial consolidation of a company, its assets and liabilities are revalued in accordance with uniform principles. The difference between the resulting

equity and the purchase price (goodwill or negative goodwill) is recognised in the balance sheet and amortised using the straight-line method over five

years.

The full consolidation method has been applied to all companies in which SBB AG holds a direct or indirect interest of more than 50 %. Assets, liabilities,

expenses and income are stated in full. Interests of third-party shareholders in equity and profit or loss are shown separately.

In the case of true joint ventures, the proportionate consolidation method is applied. This gives the partners absolutely equal influence and control over

the company. Assets, liabilities, expenses and income are stated pro rata.

Associated companies with an interest of between 20 % and 50 % or companies with an interest of exactly 50 % which do not meet the conditions

for proportionate consolidation are included using the equity method.

Minority interests.Disclosed minority interests in the Group’s equity and profits correspond to the third-party interests in the equity and profit or loss of the respective

companies determined on the basis of the current shareholder structure.

Foreign currency translation.Assets and liabilities from balance sheets prepared in foreign currencies are translated at the year-end exchange rate. Equity is translated at the historical

exchange rate and income, expenses and cash flows at the average rate for the period. The translation differences arising from the application of this

method are offset against the retained earnings and are not reflected in the income statement.

The following rates of exchange were applied:

Average exchange rate Average exchange rate Exchange rate onthe balance sheet date

Exchange rate onthe balance sheet date

2012 2011 31. 12. 2012 31. 12. 2011

EUR 1.20 1.23 1.21 1.22

GBP 1.46 1.42 1.48 1.45

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Valuation and classification principles.

General.The consolidated financial statements are based on the financial statements of the group companies, prepared in accordance with uniform valuation

principles. All assets and liabilities are valued on an item-by-item basis.

Current assets.Cash and cash equivalents are composed of cash, balances on postal and bank accounts, and highly liquid financial investments with a remaining term

of up to three months. They are measured at their nominal value.

Securities and current financial receivables are composed of securities, current financial receivables and loans, and short-term deposits (remaining term

of four to twelve months). They are stated at their nominal or market value.

Trade accounts receivable and other receivables are stated at their nominal value, less economically necessary valuation allowances. Actual credit

risks are considered individually while a general valuation allowance is recognised for potential credit risks in accordance with the maturity structure and

based on past experience.

Inventories and work in progress which are primarily for the Group’s own use are stated at purchase or manufacturing cost, observing the principle

of the lower of cost or market value. Manufacturing costs are calculated on the basis of the cost of materials and production costs (full costs). The

consequential cost procedure or standard cost accounting is applied to the valuation, depending on the item. Valuation allowances are recognised for

slow-moving goods and items with reduced marketability.

Fixed assets.Financial assets include unconsolidated interests in which at least 20 % of the voting rights are held, recognised using the equity method, and the other

unconsolidated interests, which are stated at historical cost less appropriate economically necessary write-downs. Financial assets comprise non-current

receivables from third parties and associates. These are shown at their nominal value less valuation allowances for actual credit risks. Assets relating

to the pension schemes and employer contribution reserves are recognised as financial assets. If there is a limited waiver of use on employer contribution

reserves, an impairment is recognised. Deferred taxes for temporary differences and tax loss carryforwards are only recognised if it is very likely that

they will be realised through future taxable profits.

Property, plant and equipment are valued at acquisition or production cost, less the necessary depreciation. Straight-line depreciation has been applied

over the anticipated useful life of the assets. The estimated useful life is as follows (in years):

Technical, electrical and mechanical installations 15-25

Tools, furniture, instruments 5-20

IT hardware 2-8

Telecommunication

– Small devices, networks 2-8

– Communication systems, radio systems 10-20

Vehicles

– Locomotives and power cars 25-30

– Passenger coaches 20-30

– Freight wagons and service vehicles 20-33

– Small motive power units 20-30

– Road and other vehicles 5-20

Substructure, track 25-50

Railway installations 15-33

Site development, supply and disposal installations 15-30

Hydraulic engineering structures

– Pressure pipes, cisterns/sand traps 40-50

– Other hydraulic structures 70-80

Buildings

– Residential/administrative/commercial and office buildings 55-75

– Other buildings 40-60

Interest expenses for investments in areas entitled to public-sector funding or commercial constructions have been capitalised where a significant

construction period is necessary before commissioning can take place. They are capitalised based on the average asset value at the average rate

applicable to the liabilities.

Assets used under a lease, but which in substance are equivalent to an asset purchase (finance lease), are recognised as property, plant and equipment

and depreciated over the same useful life as similar assets. Lease liabilities are stated under financial liabilities. Profits from sale-and-leaseback trans-

actions are deferred and released over the term of the contract.

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Undeveloped land is considered to be land that is located within a building zone and on which no buildings currently exist.

Assets under construction comprise the accrued capitalisable project costs of a project for property, plant and equipment. Non-capitalised project costs

are charged to the income statement as incurred.

Intangible assets comprise purchased non-material items (goodwill, water rights, rights of way, other rights and software) purchased. These are

amortised on a straight-line basis over the corresponding useful life. No intangible assets have been generated internally. The estimated useful life of the

intangible assets is as follows (in years):

Goodwill 5

Rights as per agreement

Software 4-8

Accrued capitalisable project costs are stated under intangible assets under construction. Non-capitalised project costs are charged to the income

statement as incurred.

Liabilities.Current liabilities are stated at their nominal value. Financial liabilities with a remaining term of more than twelve months are deemed non-current.

Financial liabilities include loans and advances received from third parties and the federal government, such as liabilities to banks, lease liabilities, bonds

and liabilities to SBB staff accounts.

Public-sector loans for rail infrastructure financing relate to federal or cantonal loans and are usually non-interest-bearing loans.

Other non-current liabilities include non-current deferred income and pension fund liabilities.

Provisions are recognised and released in accordance with standard business principles and the requirements of Swiss GAAP FER 23. If time is a

significant factor, the amount of the provision is discounted at the refinancing rate to the federal government.

Non-current tax provisions comprise deferred taxes. They include all effects of taxes on income arising from the different requirements of commercial or

local tax law or from the internal valuation principles of the Group. The provision is set up in accordance with the liability method and continuously adapted

to any changes in local tax laws. It is recognised under non-recurrent provisions.

The occupational pension plan for employees of SBB AG, SBB Cargo AG and other subsidiaries is the responsibility of the SBB pension fund, which has

been an independent foundation since 1 January 1999. Contributions to the pension schemes are made in accordance with the requirements of the Swiss

Federal Law on Occupational Retirement, Survivors’ and Disability Pension Plans (BVG). The SBB pension fund is a defined contribution plan. The other

subsidiaries either have contracts with other pension schemes or have their own schemes.

The economic effects of projected benefit obligations must be stated in accordance with Swiss GAAP FER 16, irrespective of the legal form of the pension

plans and schemes. This substance-over-form approach requires the pension fund liabilities or assets to be carried in the financial statements, although

no legally binding effect emerges to the benefit or detriment of the pension funds.

The economic effects of deficits or surpluses are determined on the basis of the most recent available (interim) financial statements of the pension funds.

Investigations are undertaken to establish whether other assets (economic benefits) or liabilities (economic obligations) exist at the balance sheet date

in addition to the contributions and related deferrals taken into account. Economic benefits arise from the possibility of a positive effect on the company’s

future cash flow (e.g. from reductions in contributions) as a result of a pension fund surplus. Economic obligations arise from the possibility that a pension

fund deficit may adversely affect future cash flow in the event that the company wishes – or is required – to be involved in the financing (e.g. through

restructuring contributions).

Changes in these economic effects are recognised in the income statement under personnel expenses.

Derivatives.SBB’s treasury policy is geared to minimising risk. Derivatives are therefore used only for hedging underlying transactions.

Hedging instruments are valued in the same way as the hedged underlying transaction, and are recognised in the income statement at the time

the underlying transaction is realised.

Contingent liabilities and receivables.Sureties, guarantees, pledges and other liabilities and assets of a contingent nature are stated at their nominal value under contingent liabilities or assets

respectively.

Other obligations not included in the balance sheet.This item includes all obligations entered into which cannot be terminated within one year. They are disclosed at their nominal value.

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Detailed notes to the consolidated financial statements.

0.1 Changes to accounting principles.The changes to Swiss GAAP FER for 2012 do not result in any adjustments to SBB’s consolidated financial statements.

0.2 Changes to the scope of consolidation.The scope of consolidation has changed as follows since 1 January 2012:

– Tiefgarage Bahnhofplatz AG, Lucerne, partially sold (January 2012); now included in other investments

– SBB Transportpolizei Schweiz AG, Berne, merged with SBB AG, Berne (May 2012)

– STC Switzerland Travel Centre AG, Zurich, partially sold (May 2012); now recognised using the equity method

– STC Switzerland Travel Centre Ltd., London, sold (May 2012)

– STC Switzerland Travel Centre GmbH, Stuttgart, sold (May 2012)

– e-domizil AG, Zürich, sold (May 2012)

– Compagnie du Chemin de fer Vevey-Chexbres SA, Vevey, acquired (July 2012)

– SBB Cargo S.r.l., Gallarate, liquidated (November 2012)

1 Traffic revenues.


Passenger 2,781.3 2,731.6

of which long-distance services 2,098.7 2,076.2

of which regional services 682.6 655.5

Freight 783.7 808.2

Operating services 62.4 62.3

Infrastructure (train path revenues) 77.9 73.3

Traffic revenues 3,705.3 3,675.4

Traffic revenues increased by a total of CHF 29.9 million (+0.8 %).

Passenger revenues rose by CHF 49.7 million (+1.8 %) due to fare adjustments and despite a decline in passenger-kilometres. Leisure traffic in particular

was down. The commuter market showed a slower pace of growth.

Freight revenues declined by CHF 24.5 million (–3.0 %) due mainly to multiple closures on the Gotthard mountain route. Adjusted for the revenue lost as

a result of the Gotthard closures, freight revenues were on a par with the previous year despite challenging market conditions in Italy and ongoing capacity

reductions.

Train path revenues increased due to higher contribution margins and traffic volumes in the Passenger Division and increases in traction power prices.

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2 Public-sector funding.


Grants for regional passenger servicesFederal government 276.5 250.4

Cantons 319.7 324.8

Total grants for regional passenger services 596.2 575.1

Federal government grants to SBB AG for infrastructure arising from service-levelagreementDepreciation on infrastructure 932.2 901.0

Non-capitalised portions of investment expenses 126.6 143.6

Operating grant for infrastructure 505.0 510.0

Total federal grants from service-level agreement 1,563.8 1,554.6

Contributions for non-capitalised portions of investments funded by special financingFederal government 77.2 89.3

Cantons 17.7 14.2

Total contributions to investments funded by special financing 94.9 103.6

Grants for infrastructure of subsidiaries (regional passenger services)Federal government 32.4 28.8

Cantons 11.8 8.8

Total grants for infrastructure of subsidiaries 44.1 37.5

Total grants for rail infrastructure 1,702.8 1,695.8

Grants to Cargo for non-transalpine freight 22.4 25.6

Federal grants for offsetting the strength of the Swiss franc 0.0 7.9

Total grants for freight services 22.4 33.6

Public-sector funding 2,321.3 2,304.5

Grants for commissioned regional passenger services are paid to compensate SBB for costs not covered by passengers. An additional CHF 21.1 million

(+3.7 %) was paid for improvements in regional passenger services. These comprised new or refurbished rolling stock and a slight expansion of the

offering.

Total federal grants for rail infrastructure remained almost unchanged year on year (+0.4 %).

Grants for freight services declined by CHF 11.2 million as there were no more grants from the federal government’s programme to offset the strength

of the Swiss franc and due to a cut in grants for wagonload traffic as a result of the decline in the volumes transported.

Federal government grants for infrastructure also include benefits of CHF 41.0 million (unchanged year on year) paid to SBB AG which were passed on

to the Zurich transport authority (ZVV) (“preferential compensation”). This sum is not directly linked to services performed by SBB AG but is forwarded in full

to the ZVV by deducting it from the cantonal grants for regional passenger services in accordance with the disclosure practice specified by the Federal

Office of Transport (FOT).

3 Rental income from real estate.Rental income increased by CHF 33.0 million (+9.3 %) due to new rentals following the completion of extension and renovation projects at central locations

(Europaallee in Zurich, Südpark in Basel, TransEurope in Neuchâtel), optimisation of the mix of tenants and improvements to make the major stations more

attractive.

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4 Other income.


Services 226.7 263.6

Maintenance and servicing work 47.2 57.7

Rental income 94.4 86.8

Energy-related revenues 66.3 57.5

Foreign currency exchange 41.2 41.5

Commissions 77.7 77.4

Sales of printed matter and materials 46.0 38.3

Cost participations 168.5 129.1

Net proceeds from the disposal of operating assets 6.0 18.3

Sundry other income 91.6 86.1

Other income 865.9 856.3

Other income increased by CHF 9.6 million (+1.1 %) year on year thanks to higher cost participations, sales of materials, rental income (vehicle rentals)

and higher energy-related revenues.

The CHF 23.0 million net increase in cost participations was due to the introduction of the buy-before-you-board requirement on long-distance services.

Energy-related revenues rose thanks to a rise in the selling price of traction power and an increase in the amount of energy sold in the market due to

higher water inflows.

Service income, on the other hand, declined as a result of the outsourcing of the incoming tourism business. The fall in income from maintenance and

servicing work was due to the decline in vehicle maintenance orders.

5 Own work capitalised.


Investment orders 542.1 492.6

Stock orders 347.4 339.5

Own work capitalised 889.5 832.1

Own work capitalised rose due to an increase in work performed on investment projects to expand and replace rail infrastructure. In addition, work was

stepped up to recondition assets for the modernisation and overhaul of vehicles in the Passenger Division.

6 Cost of materials.Cost of materials rose by CHF 12.5 million (+1.8 %) year on year due to an increase in maintenance work on vehicles.

7 Personnel expenses.


Wages and salaries 2,936.3 2,848.6

Social security costs 505.8 510.1

Personnel expenses for Labour Market Centre (AMC) 15.2 14.5

Other personnel expenses 175.5 180.9

Personnel expenses 3,632.8 3,554.3

Wages and salaries were CHF 87.7 million (+3.1 %) higher. This increase was driven both by the creation of new jobs in the Infrastructure and Passenger

Divisions and pay increases. Headcount increased by 655 to 29,240 full-time equivalents.

The employer’s share of the restructuring contributions for the SBB pension fund and the 2 % increase in the employer’s savings contribution as of October

2012 pushed up social security costs by CHF 53.6 million (previous year: CHF 43.8 million). In the reporting period, pension fund liabilities recognised

in accordance with FER 16 were used to offset the restructuring contributions.

Other personnel expenses were impacted by the recognition and reversal of provisions for restructuring measures.

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8 Other operating expenses.


Rail services 240.2 232.3

Lease of plant 49.1 47.6

Third-party services for maintenance, repair and replacement 508.3 493.9

Vehicle costs 109.7 107.2

Energy costs 137.2 138.6

Administrative costs 90.4 88.8

IT costs 222.7 208.0

Advertising costs 67.0 64.8

Licences, duties and fees 80.1 81.4

Loss on the disposal of fixed assets 0.8 3.0

Input tax reductions on grants/public-sector funding 83.9 83.4

Sundry operating expenses 66.1 30.1

Other operating expenses 1,655.7 1,579.1

Rail services expenses were up by CHF 7.9 million (+3.4 %) due to higher track charges for rail infrastructure abroad and an increase in road transport

costs (replacement services).

New building construction in Real Estate and an increase in facility management services in the Passenger Division pushed up third-party services

for maintenance and repair by CHF 14.4 million (+2.9 %).

The higher IT costs reflected higher spending on IT projects.

Sundry operating expenses were CHF 36.0 million higher than in the previous year, when expenses were reduced by the one-time reversal of insurance

provisions that were no longer required.

The expenses stated under the item “Input tax reductions on grants/public-sector funding” are based on the VAT regulations applicable to public transport

operators. SBB AG uses flat tax rates to calculate an input tax reduction on the grants it receives, instead of a reduction in proportion to the composition

of its total turnover.

9 Write-downs of financial assets, depreciation of property, plant and equipment and amortisationof intangible assets.


Change in write-downs of financial assets 0.0 3.0

Depreciation of property, plant and equipment 1,549.5 1,536.7

Amortisation of intangible assets 98.2 83.6

Write-downs of net book values from disposals of fixed assets 44.1 50.5

Write-downs of financial assets, depreciation of property, plant and equipment andamortisation of intangible assets 1,691.8 1,673.8

Write-downs, depreciation and amortisation increased by CHF 18.0 million (+1.1 %).

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10 Financial income.


Financial income from third parties 13.0 28.2

Financial income from associated companies 1.5 1.9

Financial income and investment income from other interests 0.7 0.6

Adjustment of book values of associated companies 8.3 6.7

Other financial income 62.6 57.5

Financial income 86.2 94.9

Financial income from third parties comprises interest income from balances on bank and postal accounts. The CHF 15.2 million decline in financial income

from third parties is due to the sale of financial assets (term deposits and loans to railway workers’ building cooperatives).

The increase in other financial income is the result of an upward adjustment of CHF 27.5 million (previous year: CHF 12.0 million) to the value of financial

assets. Foreign currency gains, on the other hand, were down to CHF 21.2 million in the reporting period (previous year: CHF 40.2 million).

11 Financial expenses.


Financial expenses from liabilities to third parties 175.1 199.8

Financial expenses – shareholder 9.1 4.9

Adjustment of book values of associated companies 1.0 0.9

Other financial expenses 22.7 139.5

Financial expenses 207.9 345.0

Interest expense was lower due to the repayment of financial liabilities.

In the previous year, other financial expenses included costs for the use ahead of schedule of the buy-back option for leased vehicles in the amount

of CHF 78.1 million. In addition, foreign currency losses fell to CHF 19.7 million in the reporting period (previous year: CHF 58.2 million).

12 Non-operating result.


Profit from real estate disposals 65.4 67.1

Loss from real estate disposals –0.1 –0.1

Non-operating result 65.3 66.9

Gains on real estate disposals are used entirely for principal and interest payments on the loans taken out for the restructuring of the SBB pension fund.

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13 Income taxes.


Current income taxes 15.8 6.6

Deferred income taxes –4.0 0.0

Income taxes 11.8 6.6

Deferred taxes for unused tax loss carryforwards of subsidiaries amount to CHF 2.0 million (previous year: CHF 4.1 million).

With the exception of auxiliary facilities and properties unconnected with SBB’s licensed transport activities, SBB AG is exempt from federal and cantonal

tax on earnings, capital gains tax, capital gains tax on property and real estate tax.

Due to the revision of the Swiss decrees on public transport (RöVE), additional deferred taxes had to be recognised. This increased income tax expense

in the Real Estate Division in particular.

14 Minority interests.

CHF millions 31. 12. 2012 31. 12. 2011

As at 1.1. 89.4 79.5

Change in scope of consolidation –1.1 0.0

Dividend –1.2 –0.4

Change in minority interests –1.2 9.9

Profit shares 0.1 1.1

Foreign currency effect 0.0 –0.8

As at 31.12. 86.1 89.4

The change in minority interests is due to the sale of subsidiaries in the incoming tourism business, the acquisition of Compagnie du Chemin de fer

Vevey-Chexbres SA, dividend payments and the capital reduction at Euroswitch AG.

15 Cash and cash equivalents.

CHF millions 31. 12. 2012 31. 12. 2011

Cash 45.2 44.3

Postal account 510.2 126.2

Banks 164.2 115.6

Term deposits 10.0 129.1

Cash in transit 79.8 –132.9

Cash and cash equivalents 809.3 282.2

16 Securities and current financial receivables.In the previous year, this item comprised short-term deposits and current building loans to railway workers’ building cooperatives. These were sold

to the SBB pension fund (see the “Related party transactions” section under “Other notes”).

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17 Trade accounts receivable.

CHF millions 31. 12. 2012 31. 12. 2011

Trade accounts receivable

from third parties 603.1 807.4

from associated companies 42.6 33.3

Bad debt allowance –50.6 –35.6

Trade accounts receivable 595.0 805.1

Trade accounts receivable declined due to the optimisation of billing and booking processes in the Passenger Division and the receipt of amounts billed

in the previous year for the construction of the Zurich cross-city line.

The introduction of the buy-before-you-board requirement on long-distance services resulted in a rise in amounts receivable from passengers without

a valid ticket. The bad debt allowance had to be increased accordingly.

18 Other receivables.Other receivables consist of input tax credits arising from value added tax, withholding tax credit balances, advance payments to suppliers and the deferral

of insurance premiums.

19 Inventories and work in progress.

CHF millions 31. 12. 2012 31. 12. 2011

Inventories 494.7 492.0

Work in progress 56.4 22.8

Impairments –197.5 –198.0

Inventories and work in progress 353.6 316.8

Work in progress includes CHF 6.6 million in prepayments for customer orders.

20 Prepaid expenses and accrued income.Prepaid expenses and accrued income comprise services to other transport operators which have not yet been billed and other accrued traffic revenues.

This item also includes credit balances from service-level agreements.

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21 Financial assets.

CHF millions Securities Investmentsin associated

companies

Loans to thirdparties

Loans toassociatedcompanies

Pension fundassets

Total

Net book value as at 1.1. 2011 455.4 125.0 643.3 49.4 1.3 1,274.4

Acquisition costsAs at 1.1. 2011 462.5 125.0 669.0 49.4 2.3 1,308.3

Change in valuation 14.6 1.2 0.5 0.0 0.0 16.3

Additions 13.9 0.0 55.3 0.0 0.0 69.2

Disposals –22.7 –0.1 –27.2 –1.6 –0.1 –51.6

Reclassifications –185.0 0.0 –3.9 0.0 0.0 –188.9

As at 31.12. 2011 283.2 126.0 693.7 47.9 2.3 1,153.2

Accumulated write-downsAs at 1.1. 2011 –7.1 0.0 –25.8 0.0 –1.0 –33.9

Additions –3.0 0.0 0.0 0.0 0.0 –3.0

Disposals 0.4 0.0 0.0 0.0 0.0 0.4

As at 31.12. 2011 –9.7 0.0 –25.8 0.0 –1.0 –36.4

Net book value as at 31.12. 2011 273.6 126.0 668.0 47.9 1.2 1,116.7

Acquisition costsAs at 1.1. 2012 283.2 126.0 693.7 47.9 2.3 1,153.2

Change in valuation 89.6 1.8 1.2 0.0 0.0 92.6

Additions 1.1 1.3 19.8 0.0 0.0 22.1

Disposals –132.0 –2.3 –626.2 –1.4 –0.2 –762.0

Reclassifications 0.0 0.0 –6.6 0.0 0.0 –6.6

As at 31.12. 2012 241.9 126.8 81.9 46.5 2.1 499.2

Accumulated write-downsAs at 1.1. 2012 –9.7 0.0 –25.8 0.0 –1.0 –36.4

Disposals 0.3 0.0 24.9 0.0 0.0 25.2

As at 31.12. 2012 –9.4 0.0 –0.9 0.0 –1.0 –11.3

Net book value as at 31.12. 2012 232.5 126.8 81.0 46.5 1.1 487.9

The securities column contains other investments with a net book value of CHF 37.9 million (previous year: CHF 36.8 million).

Securities classified as fixed assets comprise non-current structured financial assets related to buy-back options in lease liabilities. These had a higher

market value of CHF 89.6 million, of which CHF 62.1 million was not recognised in the income statement, as the related lease liabilities were accounted

for on a matching basis. In the case of financial assets for which there are no buy-back options, the increase in value recognised in the income statement

was CHF 27.5 million (previous year: CHF 12.0 million).

Th building loans and mortgages to railway workers’ building cooperatives were sold on arm’s length terms to the SBB pension fund (see the “Related party

transactions” section under “Other notes”) ).

Reclassifications relate to financial receivables falling due in the next twelve months. These are presented as current receivables.

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Investments in associated companies.

Share of equity

Net book value as at 1.1. 2012 126.0

Addition 1.3

Dividends received –5.5

Profit shares 7.3

Disposals –2.3

Net book value as at 31.12. 2012 126.8

The addition of CHF 1.3 million is due to the partial sale of STC Travel Centre AG. SBB’s interest in this company was reduced from 57.0 % to 24.0 %.

The disposals relate to Tiefgarage Bahnhofplatz AG Lucerne and e-domizil AG.

.

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22 Property, plant and equipment and assets under construction.

CHF millions Vehicles(incl. leasing)

Civilengineering,

trackbedand railwayinstallations

Otherproperty,plant and

equipment

Land Buildings Totalproperty,plant and

equipment

Assets underconstructionand prepay-

ments

Total

Net book value as at 1.1. 2011 6,120.8 12,207.6 1,940.2 1,608.1 2,154.8 24,031.5 5,136.2 29,167.7

Acquisition costsAs at 1.1. 2011 14,445.9 19,241.9 5,818.9 1,631.0 4,048.1 45,185.8 5,148.3 50,334.0

Foreign currency translation 0.0 0.0 0.0 0.0 0.0 –0.1 0.0 –0.1

Investments 20.6 1.6 1.6 0.0 0.5 24.2 2,244.4 2,268.6

Disposals of assets –299.4 –218.3 –87.8 –13.7 –24.6 –643.9 –0.8 –644.7

Reclassifications 567.0 1,047.2 413.9 8.9 240.5 2,277.5 –2,295.6 –18.1

As at 31.12. 2011 14,734.1 20,072.4 6,146.5 1,626.2 4,264.4 46,843.5 5,096.2 51,939.8of which leases 1,113.4 1,113.4 1,113.4

of which held as investments 106.6 72.0 178.6 178.6

of which undeveloped land 51.7 51.7 51.7

Accumulated depreciation and impairmentAs at 1.1. 2011 –8,325.1 –7,034.2 –3,878.7 –22.9 –1,893.3 –21,154.3 –12.1 –21,166.4

Foreign currency translation 0.0 0.0 0.1 0.0 0.0 0.1 0.0 0.1

Depreciation –499.1 –657.4 –255.6 0.0 –101.2 –1,513.2 0.0 –1,513.2

Impairments –20.9 0.0 –0.4 –0.8 –1.4 –23.5 0.0 –23.5

Disposals 294.9 180.3 77.9 1.1 18.8 573.0 0.8 573.8

Reclassifications 0.0 0.0 –0.3 0.0 –5.1 –5.5 5.7 0.2

As at 31.12. 2011 –8,550.1 –7,511.3 –4,057.1 –22.7 –1,982.2 –22,123.4 –5.6 –22,129.0of which leases –734.5 –734.5 –734.5

of which held as investments –8.2 –8.2 –8.2

of which undeveloped land –1.0 –1.0 –1.0


Acquisition costsAs at 1.1. 2012 14,734.1 20,072.4 6,146.5 1,626.2 4,264.4 46,843.5 5,096.2 51,939.8

Change in scope of consolidation 0.0 10.9 –0.7 0.6 0.4 11.2 0.9 12.0

Investments 5.1 0.0 2.2 0.0 0.2 7.5 3,040.3 3,047.8

Disposals of assets –247.0 –169.8 –98.4 –17.2 –16.3 –548.7 –0.2 –548.9

Reclassifications 882.3 745.9 235.7 5.1 159.3 2,028.3 –2,030.2 –1.8

As at 31.12. 2012 15,374.5 20,659.4 6,285.3 1,614.6 4,408.0 48,341.8 6,107.0 54,448.8of which leases 659.8 659.8 659.8

of which held as investments 106.9 70.8 177.6 177.6

of which undeveloped land 50.2 50.2 50.2

Accumulated depreciation and impairmentAs at 1.1. 2012 –8,550.1 –7,511.3 –4,057.1 –22.7 –1,982.2 –22,123.4 –5.6 –22,129.0

Change in scope of consolidation 0.0 –4.0 0.6 0.0 –0.1 –3.5 0.0 –3.5

Depreciation –513.3 –680.2 –265.9 0.0 –103.2 –1,562.7 0.0 –1,562.7

Impairments –0.1 –1.6 0.1 14.9 –0.1 13.2 0.0 13.2

Disposals 239.4 136.8 93.7 0.6 13.5 484.0 0.0 484.0

Reclassifications –0.1 3.9 10.7 0.0 –13.1 1.4 0.0 1.4

As at 31.12. 2012 –8,824.3 –8,056.5 –4,217.8 –7.3 –2,085.2 –23,191.0 –5.6 –23,196.6of which leases –394.7 –394.7 –394.7

of which held as investments –9.0 –9.0 –9.0

of which undeveloped land –1.0 –1.0 –1.0


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Assets under construction include CHF 782.4 million in prepayments (previous year: CHF 853.7 million).

Investments include investment grants from the federal government for noise reduction and measures under the Federal Act on Equality for People with Disabilities (BehiG) in the amount

of CHF 68.7 million (previous year: CHF 68.2 million).

Notes on non-cash investing activities:

Assets under construction totalling CHF 51.5 million were recognised (previous year: CHF 22.4 million), of which assets in the amount of CHF 34.8 million were transferred to

zb Zentralbahn AG (lowering of the approach to Lucerne station) together with a federal loan.

Borrowing costs totalling CHF 15.9 million were capitalised in the reporting period (previous year: CHF 18.3 million).

Notes on impairments: The impairments recognised and reversed relate to individual assets in accordance with Swiss GAAP FER 18.

The increase in the value of property, plant and equipment is primarily attributable to the renovation and expansion of infrastructure (track bed renewal,

the Zurich cross-city line, the Cornavin–Eaux-Vives–Annemasse (CEVA) rail link, the links to the European high-speed network in eastern Switzerland),

the expansion of the vehicle fleet for regional and long-distance services, the modernisation of rolling stock, and the construction and renovation

of properties and stations (Europaallee in Zurich, Südpark in Basel, RailCity stations).

23 Intangible assets.

CHF millionsGoodwill Rights Software Assets under

constructionTotal

Net book value as at 1.1. 2011 0.3 131.9 212.3 163.0 507.5

Acquisition costsAs at 1.1. 2011 11.6 236.0 650.8 163.0 1,061.4

Change in scope of consolidation –0.2 0.0 0.0 0.0 –0.2

Additions 0.0 0.1 0.5 221.7 222.3

Disposals 0.0 –0.2 –25.4 0.0 –25.6

Reclassifications 0.0 12.5 97.4 –92.2 17.8

As at 31.12. 2011 11.5 248.4 723.3 292.6 1,275.7

Accumulated amortisation and impairmentAs at 1.1. 2011 –11.3 –104.1 –438.6 0.0 –553.9

Change in scope of consolidation 0.2 0.0 0.0 0.0 0.2

Amortisation –0.2 –10.2 –73.3 0.0 –83.6

Disposals 0.0 0.2 25.1 0.0 25.3

As at 31.12. 2011 –11.3 –114.1 –486.7 0.0 –612.1

Net book value 31.12. 2011 0.2 134.3 236.5 292.6 663.6

Acquisition costsAs at 1.1. 2012 11.5 248.4 723.3 292.6 1,275.7

Change in scope of consolidation –1.0 –0.2 –2.6 –0.2 –4.0

Additions 0.1 0.1 1.2 157.4 158.8

Disposals 0.0 –0.1 –73.1 0.0 –73.3

Reclassifications –0.5 4.2 92.8 –95.0 1.4

As at 31.12. 2012 10.0 252.3 741.5 354.8 1,358.6

Accumulated amortisation and impairmentAs at 1.1. 2012 –11.3 –114.1 –486.7 0.0 –612.1

Change in scope of consolidation 1.0 0.2 2.4 0.0 3.6

Amortisation –0.2 –10.4 –87.5 0.0 –98.1

Impairments 0.0 0.0 –0.1 0.0 –0.1

Disposals 0.0 0.1 72.6 0.0 72.8

Reclassifications 0.5 0.0 –1.4 0.0 –0.9

As at 31.12. 2012 –10.0 –124.2 –500.7 0.0 –634.9

Net book value 31.12. 2012 0.0 128.2 240.8 354.8 723.8

Assets under construction include CHF 103.1 million in prepayments (unchanged year on year).

The “Rights” category includes rights to joint international operations, water licences, construction and tunnelling rights, rights of way, etc. Assets under

construction comprise software projects and prepayments for water licences.

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24 Financial liabilities.

CHF millions 31. 12. 2012 31. 12. 2011

Current financial liabilitiesFinancial liabilities to third parties 271.1 582.6

Non-current financial liabilitiesBank liabilities 2,076.8 2,325.1

Lease liabilities 833.6 906.3

Bonds 150.0 150.0

Staff accounts 1,738.7 1,659.9

Loans from third parties 29.5 27.5

Federal government loans (commercial) 890.0 590.0

Loans from pension funds 1,663.5 1,723.3

Total non-current financial liabilities 7,382.1 7,382.1

Financial liabilities 7,653.2 7,964.6

Notes on non-cash financing activities: CHF 253.0 million of non-current financial liabilities were reclassified as current financial liabilities.

Non-cash market value and foreign currency adjustments on current and non-current financial liabilities amounted to CHF –64.8 million (previous year: CHF –101.2 million).

Interest-bearing debt was reduced by CHF 311.4 million to CHF 7,653.2 million in the reporting period.

CHF 322.9 million of lease liabilities were repaid through regular repayments. Lease liabilities are used as a means of financing passenger vehicles.

Bank liabilities, particularly to EUROFIMA, were reduced by CHF 312.6 million, while repayable, interest-bearing (commercial) federal loans to finance

business activities increased by CHF 300.0 million.

The pension fund loan fell by CHF 59.8 million. To secure the SBB pension fund loan, all receivables from current and future rental agreements for the SBB

RailCity stations in Basel, Berne and Zurich, including all the associated ancillary and preferential rights, were ceded to the pension fund.

Bonds comprise issues by Kraftwerk Amsteg AG (see the “Bonds” section under “Other notes”).

Financial liabilities to staff accounts include credit balances on the savings accounts of current and former employees of SBB.

25 Public-sector loans for rail infrastructure financing.

CHF millions 31. 12. 2012 31. 12. 2011

Current loans

Federal loans (interest-free) 0.3 0.4

Cantonal loans (interest-free) 46.6 55.2

Total current loans 46.9 55.6

Non-current loans

Federal loans (interest-free) 10,436.8 9,829.8

Cantonal loans (interest-bearing) 15.9 15.9

Cantonal loans (interest-free) 936.2 815.9

Total non-current loans 11,388.9 10,661.6

Public-sector loans for rail infrastructure financing 11,435.7 10,717.1

For information on the change in the liabilities to the federal government as shareholder, please see the section entitled “Composition of the liabilities

to the federal government as shareholder” (below).

The increase in interest-free cantonal loans relates to the Zurich cross-city line, the Cornavin–Eaux-Vives–Annemasse (CEVA) rail link and other projects

to ease urban traffic congestion.

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Composition of the liabilities to the federal government as shareholder.

CHF millions 31. 12. 2012 31. 12. 2011

Floating-rate loans for basic infrastructure requirements 3,245.4 3,060.7

Floating-rate loans for FinöV fund 6,256.1 6,110.6

Floating-rate loans for infrastructure fund 632.1 416.3

Floating-rate loans from subsidiaries 303.5 242.5

Commercial loans (see note 24) 890.0 590.0

Total 11,327.1 10,420.2

The loan to cover basic infrastructure requirements increased by CHF 184.7 million under the 2011-2012 service-level agreement (previous year:

CHF 159.5 million). It is being used to fund small-scale investments in upgrades.

The increase in the loan from the FinöV fund is primarily the result of the rise in special funding for investments in links to the high-speed rail network,

approach routes to the transalpine tunnels and various rail infrastructure development projects (ZEB programme).

The increase in infrastructure fund loans is due to investments in urban projects, in particular the Zurich cross-city line and the CEVA project in the Greater

Geneva area.

The increase in loans from subsidiaries is primarily the result of increased lending to zb Zentralbahn AG for the expansion of the S-Bahn rapid transit

network in Lucerne and central Switzerland.

Additional commercial loans amounting to CHF 300.00 million were raised from the federal government to finance investing activities.

26 Trade accounts payable.

CHF millions 31. 12. 2012 31. 12. 2011

Trade accounts payable

to third parties 920.0 744.3

to associated companies 1.2 0.8

Trade accounts payable 921.1 745.1

The increase in trade accounts payable to third parties is primarily attributable to an increase in construction activity and higher liabilities to licensed

transport companies.

27 Other liabilities.

CHF millions 31. 12. 2012 31. 12. 2011

Other current liabilities

Public-sector liabilities 128.2 117.1

Other liabilities 67.0 59.5

Total other current liabilities 195.2 176.6

Other non-current liabilities

Non-current deferred income 102.4 107.3

Pension fund liabilities in acc. with FER 16 1,789.1 1,855.1

Total other non-current liabilities 1,891.4 1,962.3

Other liabilities 2,086.6 2,139.0

In connection with the restructuring of the pension fund, pension fund liabilities recognised in accordance with FER 16 were drawn on by an amount equal

to the restructuring contributions (CHF 66.0 million; previous year: CHF 31.9 million).

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28 Deferred income and accrued charges.

CHF millions 31. 12. 2012 31. 12. 2011

Ticket deferrals 652.2 674.8

Accrued interest payable 30.6 38.8

Other accruals and deferrals 777.6 677.0

Deferred income and accrued charges 1,460.4 1,390.6

Ticket deferrals include the deferral of the remaining term of validity of General Abonnement (GA) travelcards, Half-Fare travelcards and point-to-point travel

passes as well as the deferral of multiple-journey tickets.

Other accruals and deferrals comprise shares of income from sales outlets such as ticket counters and ticket machines credited to other licensed public

transport companies as well as supplier invoices not yet received and deferred taxes.

29 Provisions.

CHF millions 31. 12. 2012 31. 12. 2011

Current provisions 247.2 269.4

Non-current provisions 308.9 310.5

Provisions 556.1 580.0

Breakdown of provisions by purpose.

CHF millions Projectedbenefit

obligations

Environmentalprovision

Energy unitrestructuring

Vacation/overtime

Restructuring Non-currenttaxes

Otherprovisions

Total

As at 1.1. 2011 0.4 61.5 209.5 97.3 90.0 6.9 217.3 683.1

Foreign currency translation 0.0 0.0 0.0 0.0 –0.2 0.0 –0.1 –0.3

Addition 0.1 0.0 0.0 4.7 17.7 0.6 67.4 90.5

Utilisation 0.0 –4.9 –6.2 –3.8 –33.6 –0.6 –42.9 –92.0

Reversal 0.0 –0.5 0.0 0.0 –14.2 0.0 –86.7 –101.4

As at 31.12. 2011 0.4 56.1 203.4 98.2 59.8 7.0 155.1 580.0of which current 0.0 4.0 16.5 98.0 21.6 0.0 129.2 269.3

of which non-current 0.4 52.2 186.9 0.0 38.2 7.0 25.9 310.5

As at 1.1. 2012 0.4 56.1 203.4 98.2 59.8 7.0 155.1 580.0

Change in scope of consolidation 0.0 0.0 0.0 –0.2 0.0 0.0 0.0 –0.3

Addition 0.1 0.0 0.0 2.3 22.2 0.0 81.3 105.8

Utilisation 0.0 –3.7 –5.9 –4.9 –22.8 –2.9 –56.5 –96.7

Reversal 0.0 0.0 0.0 0.0 –8.8 –1.1 –22.0 –32.0

Reclassification 0.0 0.0 0.0 0.0 0.0 –0.7 0.0 –0.7

As at 31.12. 2012 0.5 52.4 197.5 95.3 50.3 2.2 157.8 556.1

of which current 0.0 5.5 16.2 95.3 25.9 0.0 104.3 247.2of which non-current 0.5 46.9 181.3 0.0 24.5 2.2 53.5 308.9

In the course of SBB’s spin-off from the federal government in 1999, environmental provisions totalling CHF 110.0 million were recognised. In 2012,

CHF 3.7 million was used for clean-up operations.

CHF 5.9 million of the provisions was used for the restructuring of the Energy unit in the reporting period.

CHF 22.2 million of restructuring provisions was recognised for restructuring projects in the Freight Division and measures decided in connection with

the implementation of SBB’s new financial organisation. CHF 22.8 million was used for current restructuring measures, primarily in the Freight and

Passenger Divisions. A total of CHF 8.8 million of provisions no longer required was reversed.

Other provisions comprise provisions for business and legal risks and provisions for insurance against claims. An amount of CHF 48.1 million was

recognised for new claims in 2012. An amount of CHF 51.9 million was used for loss adjustment purposes. CHF 20.2 million of insurance provisions

were reversed thanks to more favourable claims settlements.

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30 Change in net current assets affecting cash flow.

CHF millions 31. 12. 2012 31. 12. 2011

Decrease/increase in trade accounts receivable 206.5 –38.6

Increase/decrease in inventories and work in progress –22.3 16.5

Decrease/increase in other current assets 46.4 –40.8

Increase/decrease in trade accounts payable 180.3 –54.9

Increase in other current liabilities 92.9 50.6

Change in net current assets 503.8 –67.2

Pension fund information.

Employer contribution reserve (ECR) Nominal value Waiver of use Recognised Addition2012

Recognised Result fromECR reflected

in personnelexpenses

Result fromECR reflected

in personnelexpenses

CHF millions 31.12. 2012 31.12. 2012 31.12. 2012 31. 12. 2011 2012 2011

Pension funds 1.8 –1.0 0.8 0.0 0.8 0.0 0.0

Total 1.8 –1.0 0.8 0.0 0.8 0.0 0.0

Financial benefit/financial obligationand service cost

Surplus/deficit

Financialshare

attributableto the

organisation

Financialshare

attributableto the

organisation

Recognisedchangeversus

previous year

Contributionsdeferred tothe period

Service costin personnel

expenses

Service costin personnel

expenses

CHF millions 31.12. 2012 31.12. 2012 31. 12. 2011 2012 2011

Corporate pension fund foundations 0.3 0.0 0.0 0.0 –0.2 –0.2 –0.1

Pension plans without a surplus/deficit 0.0 0.0 0.0 0.0 –1.1 –1.1 –1.1

Pension plans with surplus1 5.2 0.0 0.0 0.0 –9.6 –9.6 –10.6

Pension plans with deficit –132.0 –1,789.1 –1,855.1 66.0 –317.1 –251.1 –257.4

Total –126.5 –1,789.1 –1,855.1 66.0 –328.0 –261.9 –269.1

1 The surpluses do not result in any economic benefits for the member companies.

A comprehensive plan is in place to restructure the SBB pension fund. This is based on three pillars, with contributions being made by SBB as

the employer, the employees as the pension fund members and the federal government.

Pillar 1, SBB’s share of the restructuring:

In 2007 and 2010, SBB made one-off restructuring contributions to the SBB pension fund totalling CHF 2,431 million. The first restructuring contribution

comprised a payment of CHF 1,493 million in 2007 and the second a payment of CHF 938 million in 2010. SBB made and continues to make equal

restructuring payments, currently of 2.5 % of the salary subject to contributions (unchanged year on year).

Pillar 2, pension fund members’ share of the restructuring:

Pension fund members had to accept significant reductions in benefits in that the pension fund was converted from a defined benefit to a defined contribu-

tion fund and the target retirement age raised from 63.5 to 65 years. No interest was paid on retirement savings in 2009. In 2007/2008 and as of 2010,

interest was paid only at the minimum rate in accordance with the Swiss Federal Law on Occupational Retirement, Survivors’ and Disability Pension Plans

(BVG). Pension fund members continue to make equal restructuring payments of 2.5 % of the salary subject to contributions. Since 2005, retirees have

foregone pension top-ups to make up for inflation.

Pillar 3, the federal government’s share of the restructuring:

This pillar of the restructuring programme is based on the federal government’s contribution. In 2011, the Council of States and the National Council

approved the federal government contribution of CHF 1,148 million. This was transferred to the SBB pension fund at the end of December 2011.

Thanks to the restructuring contributions and the solid return on investments in 2012, the SBB pension fund’s funding level increased to 99.1 % as at

31 December 2012 (previous year: 96.4 %). Despite this increase, the pension fund has still not been restructured to the point where it is on a sustainable

footing. Until it is on a sustainable footing, which requires building up a fluctuation reserve, the “pension fund liabilities in acc. with FER 16” item will

remain in place with the exception of the amounts used for current restructuring measures.

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Net debt.


Financial liabilities 24 7,653.2 7,964.6

Loans for rail infrastructure financing 25 11,435.7 10,717.1

Total financial liabilities 19,089.0 18,681.8

less cash and cash equivalents and current financial receivables –811.3 –470.2

Net debt 18,277.7 18,211.6

Change compared to the previous year 66.1 504.5

Net debt increased by CHF 66.1 million (+0.4 %) in the reporting period. In particular, the increase comprised federal and cantonal loans providing

CHF 718.6 million of funds to finance commissioned infrastructure projects.

Other notes.

Contingent liabilities and pledged assets.

CHF millions 31. 12. 2012 31. 12. 2011

Sureties and guarantees 4.0 7.1

Vehicles included as collateral for EUROFIMA hire-purchase agreements 1,771.5 1,799.1

Other quantifiable liabilities 265.9 271.5

Total 2,041.4 2,077.8

SBB includes vehicles with a net book value of CHF 1,771.5 million as collateral for EUROFIMA loans.

Other quantifiable liabilities comprise statutory liability clauses, unpaid share capital, financing commitments, repayment commitments in the case of simple

partnerships, and legal risks.

Other liabilities not included in the balance sheet.

CHF millions 31. 12. 2012 31. 12. 2011

Investment commitments 5,406.8 5,913.4

Energy purchase commitments 1,500.2 1,170.8

Other 933.6 943.1

Total 7,840.6 8,027.4

SBB has interests in a number of simple partnerships with joint and several liability. These are primarily alliances and joint ventures created

for the management of fixed-term projects.

The CHF 506.6 million (–8.6 %) decrease in investment commitments is due primarily to smaller commitments in relation to vehicle procurements

in the Passenger Division and infrastructure projects.

Energy purchase commitments increased by CHF 329.4 million mainly as a result of new supply contracts with hydroelectric plants.

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Off-balance-sheet lease liabilities.

CHF millions 31. 12. 2012 31. 12. 2011

Due within 1 year 1.7 5.1

Due within 1-2 years 0.9 1.9



Total 3.2 7.7

Contingent receivables.

CHF millions 31. 12. 2012 31. 12. 2011

Sureties received and guarantee receivables 1,792.3 1,452.4

Total 1,792.3 1,452.4

The increase is primarily due to warranty guarantees relating to vehicle procurements.

Liabilities to occupational pension schemes.

CHF millions 31. 12. 2012 31. 12. 2011

Current liabilities 4.5 2.2

Non-current liabilities 1,663.5 1,723.3

Total 1,668.0 1,725.4

The loan to the occupational pension scheme originates from the restructuring packages agreed in 2007 and 2010. In the reporting period, repayments

amounting to CHF 59.8 million were made.

Bonds.

CHF millions 31. 12. 2012 31. 12. 2011

2.375 % Kraftwerk Amsteg AG bond 2006-2018 150.0 150.0

Total 150.0 150.0

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Related party transactions.

Transactions with the shareholder.The federal government holds 100 % of the shares in SBB AG. For information on transactions with the shareholder, please see the section on public-

sector grants.

Sale of the portfolio of building loans and mortgages granted to railway workers’ building cooperatives to the SBB pension fund.The building loans and mortgages granted by SBB to various building cooperatives were sold on arm’s length terms to the SBB pension fund with effect

from 1 July 2012. This sale was based on the agreement between the SBB pension fund and SBB AG dated 11 July 2012. For the entire transaction,

the pension fund paid SBB AG CHF 641.5 million.

SBB AG provides a guarantee in favour of the SBB pension fund for critical mortgage loans (up until 31 December 2022) and for the building loans

transferred.

Public-sector participation.In the reporting period, SBB received CHF 2,647.2 million in grants from the federal government (previous year: CHF 2,452.8 million) for commissioned

regional passenger services, for freight services to support the aim of transferring traffic from road to rail and for investments in the rail network (including

maintenance and operations).

These break down as follows:


Grants for regional passenger services 276.5 250.4

Federal SLA grant for infrastructure – depreciation 932.2 901.0

Federal SLA grant for infrastructure – non-capitalised portions 126.6 143.6

Federal SLA grant for infrastructure – operating contribution 505.0 510.0

Contributions for non-capitalised portions of investments funded by special financing arrangements 77.2 89.3

Grants for infrastructure of subsidiaries (regional passenger services) 32.4 28.8

Grants to Cargo for non-transalpine freight 22.4 25.6

Federal grants for offsetting the strength of the Swiss franc 0.0 7.9

Total federal government payments reflected in income statement 1,972.2 1,956.7

Increase in federal loans for financing of rail infrastructure 606.9 427.9

Non-repayable FinöV fund contributions – noise abatement/disability legislation 68.7 68.2

Total federal government payments 2,647.7 2,452.8

SBB also received the following from the cantons:

Grants for regional passenger services 319.7 324.8

Contributions for non-capitalised portions of investments funded by special financing arrangements 17.7 14.2

Grants for infrastructure of subsidiaries (regional passenger services) 11.8 8.8

Total cantonal grants reflected in income statement 349.1 347.8

Increase in cantonal loans 111.7 146.1

Total payments from cantons 460.9 493.9

Total public-sector funding 3,108.6 2,946.7

For detailed information on the liabilities to the shareholder (federal government), please see the table under Note 25.

For information on the benefits credited to Zürcher Verkehrsverbund (Zurich public transport authority, ZVV), please see Note 2.

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Financial instruments.SBB’s long-term investment programme relating to rolling stock purchases and real estate development projects is refinanced on a matched-maturity basis

wherever possible.

Interest rate and currency hedges are entered into for both current and planned investment programmes with corresponding financing arrangements.

Variable-rate financing arrangements are generally hedged using interest rate swaps. Planned future financing arrangements are hedged with interest rate

swaps already entered into today. To a lesser extent, option strategies are also used.

Individual currency hedges are entered into for larger projects running over several years. Current liquidity needs and cash flows arising from day-to-day

business are offset at Group level and only foreign currency risks relating to the remaining net positions are hedged in the market.

In the reporting period, forward contracts were used in the context of securing energy purchases at stable prices.

The following derivatives used to hedge foreign currency, interest rate and energy price risks were outstanding at the balance sheet date:

Instrument Purpose Contractvolumes

Assets Liabilities Contractvolumes

Assets Liabilities

CHF millions 31. 12. 2012 31. 12. 2012 31. 12. 2012 31. 12. 2011 31. 12. 2011 31. 12. 2011

Currencies hedging 590.7 11.0 9.2 250.8 1.1 13.7

Interest rates hedging 1,498.8 8.1 334.1 2,229.0 9.8 431.2

Other underlyings hedging 0.5 0.0 0.0 8.5 0.0 0.0

Total 2,090.0 19.1 343.4 2,488.3 10.9 444.9

As long-term interest rates remain low and the medium- and long-term trend remains uncertain, SBB is continuing to pursue a cautious financing policy.

New financing was raised solely in the form of non-current fixed-rate loans. Floating-rate financing arrangements continued to be hedged using interest

rate swaps.

The negative values of the interest rate hedging instruments were lower year on year due to the lower contract volume. This decrease was due primarily

to the reversal of interest rate hedging instruments used to hedge the mortgage portfolio sold to the SBB pension fund. The negative valuation of the

remaining interest rate hedging instruments continues to be attributable to sustained low long-term interest rates in Switzerland.

Intra-group hedging of transaction risks.Corporate Treasury is responsible for Group-wide management of currency risks. The net currency risks arising from the activities of the divisions and

subsidiaries are hedged centrally by Corporate Treasury.

Intra-group currency hedging had the following consequences for the divisions in the reporting year; these were recognised in the income statement:


Passenger –1.6 –7.4

Freight –0.3 20.3

Infrastructure –1.7 –11.3

Real Estate 0.0 –0.1

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Information about risk assessment.

Risk management.Swiss Federal Railways (SBB) operates a risk management system tailored to the needs of the Board of Directors and Management Board and coordinated

with medium-term strategic planning.

SBB managers (as risk owners) are responsible for the operational implementation of risk management in the divisions and specialist management areas:

i.e. the regular and systematic identification, evaluation and management of the risks associated with their business area.

Corporate risk management.Each year, the Management Board submits a risk assessment to the Board of Directors in the form of the Corporate Risk Report. This covers the risks

relevant to the Group and shows the current implementation status of measures taken to manage the main risks. The uniform risk landscape and risk

assessment matrix in place throughout the Group provide the basis for standardised risk classification, assessment and reporting. The risk management

instruments were implemented to comply with SBB’s risk policy and its implementing provisions.

The Board of Directors approved the 2012 Corporate Risk Report on 13 December 2012.

Risk management at subsidiary level.SBB’s subsidiaries are included in the risk management processes of the divisions to which they report organisationally. The SBB organisational unit

responsible for the affiliate or subsidiary concerned ensures that risks relevant to the Group are reported to SBB’s Board of Directors or Management

Board.

SBB risk management and internal control system (ICS).The internal control system (ICS) that has been implemented ensures that process owners carry out annual risk assessments of financial processes.

Financial risk management.The 2012 financial statements incorporate the following specific financial risks:

Market risks.SBB’s activities expose it to a variety of financial risks such as liquidity, counterparty/credit, interest rate, currency and energy price risks.

Liquidity risk.Liquidity risk is the risk of not being able to meet current and future payment commitments on time or in full.

In order to identify liquidity risks systematically, SBB implements a rolling liquidity, foreign exchange and financial planning system that is continuously

updated. Available liquidity is managed via central cash pools that concentrate SBB’s key accounts in Swiss francs and euros, and via short-term deposits.

Any excess liquidity is invested with various financial institutions that have been assigned a short-term rating of at least A1 by ratings agency Standard &

Poor’s.

The majority of SBB’s external refinancing operations for commercial investments are effected with the Federal Finance Administration and EUROFIMA,

a finance company created to support the development of European national railways and equipped with an additional guarantee from their owners.

It grants loans exclusively to its shareholders or to transport companies guaranteed by one of EUROFIMA’s shareholders.

The availability of federal financing is governed by the applicable service-level agreement.

SBB also has credit lines with a number of banks to fund working capital.

Counterparty risks (credit risks).Credit risk is defined as the risk of potential losses that arise due to counterparties becoming unable to meet their obligations. In order to minimise

such losses, only financial institutions which have a Standard & Poor’s rating of at least A, or are protected by equivalent security structures, are used

as counterparties for SBB’s investment and hedging transactions. In the interests of risk minimisation, there are also clear rules on contract limits

per counterparty.

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Interest rate risks.Market interest rate fluctuations have a direct influence on SBB’s investment income and financing costs. Corporate Treasury manages this risk by

matching maturity profiles and influencing the mix of non-current fixed-rate financing tranches and floating-rate loans in combination with additional hedging

instruments (swaps).

Currency risks.The net currency risks arising from the activities of the divisions and Group companies are hedged centrally by Corporate Treasury. Corporate Treasury,

for its part, hedges the currency risks with selected banks. It operates an internal and external limits system and checks compliance with this system.

Energy price risks.Despite the fact that it produces most of its energy in-house, SBB is still partially exposed to energy price fluctuations through its sales of surplus energy

and the purchases it makes in order to bridge periods of peak demand. This risk is hedged by futures transactions, swaps and forwards and to a lesser

extent by options on future energy prices.

Events occurring after the balance sheet date.The consolidated financial statements were approved by the Board of Directors on 8 March 2013. No other events occurred between the balance sheet

date and this date.

Compensation payments by Real Estate to Infrastructure.As part of the owner’s strategy for the period 2011-2014, SBB and the federal government agreed on the transfer of compensation payments from Real

Estate to Infrastructure. Annual payments of CHF 150.0 million were specified in the service-level agreement with the federal government.

This amount comprises direct payments to the Infrastructure Division of CHF 106.9 million and interest payments to the Group-level units totalling

CHF 43.1 million. The Group-level units forward this interest income to the Infrastructure Division in the form of compensation payments.

Compensation payments by Real Estate for the pension fund restructuring.According to a Message issued by the Federal Council on 5 March 2010 on the restructuring of the SBB pension fund, the payment of CHF 1,493 million

made by SBB in 2007 must be financed by Real Estate. Real Estate makes a compensation payment to the Group-level units for these principal and

interest payments in line with its results. In the reporting period, this amounted to CHF 77.0 million (previous year: CHF 84.0 million).

Segment reporting.The segment report is broken down into the Passenger, Freight, Infrastructure, Real Estate and Group-level units segments. As in previous years,

operating activity is largely confined to Switzerland. For this reason, there is no geographical segmentation. The segments contain the Group companies

in accordance with the list of shareholdings on page 118.

“Other income” includes the financial result, non-operating profit or loss, tax on income and minority interests.

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Segment information: SBB Group.

1 January to 31 December.

CHF millions Passenger Freight Infrastructure

2012 2011 2012 2011 2012 2011

Income statementOperating income 4,543.1 4,431.2 921.6 956.1 3,522.2 3,443.3

of which

– Traffic revenues 2,879.9 2,812.1 822.2 840.0 904.9 883.0

– Public-sector funding 640.3 612.7 22.4 33.6 1,658.6 1,658.2

– Rental income from real estate 9.4 28.2 0.9 1.1 0.9 1.7

Operating expenses –4,206.0 –4,117.0 –969.7 –986.9 –3,622.9 –3,498.6

of which

– Personnel expenses –1,706.6 –1,680.1 –429.7 –440.9 –1,282.5 –1,225.0

– Depreciation –523.8 –510.7 –57.6 –70.4 –959.5 –947.0

– Rail-related operating expenses –823.0 –790.9 –238.9 –244.0 –33.6 –36.2

Operating result/EBIT 337.1 314.2 –48.1 –30.8 –100.7 –55.3

Other income –68.2 –100.3 –3.1 –15.2 –12.2 –22.2

Compensation payments Infrastructure/PF loan 0.0 0.0 0.0 0.0 150.0 150.0

Consolidated net income 268.9 213.9 –51.2 –45.9 37.1 72.4

Cash flowCash flow from operating activities 1,093.7 575.5 –5.6 –2.4 167.6 35.4

Cash flow from investing activities –973.3 –556.1 –44.3 –39.2 –1,698.8 –1,493.4

Free cash flow before public-sector financing

of rail infrastructure 120.5 19.4 –49.9 –41.8 –1,531.2 –1,458.0

Public-sector financing of rail infrastructure 29.9 19.3 0.6 0.0 1,574.8 1,455.8

Free cash flow after public-sector financingof rail infrastructure 150.4 38.7 –49.3 –41.8 43.5 –2.2

31. 12. 2012 31. 12. 2011 31. 12. 2012 31. 12. 2011 31. 12. 2012 31. 12. 2011

Balance sheetAssets 9,907.1 9,532.8 982.9 989.8 20,553.7 19,819.0

Current assets 2,617.0 1,702.5 241.1 238.1 592.6 637.0

Fixed assets 7,290.1 7,830.3 741.8 751.7 19,961.1 19,182.0

of which

– Vehicles 5,469.6 5,078.1 618.1 628.7 457.4 474.1

– Civil engineering, trackbed and railway

installations 388.6 332.1 5.7 5.6 12,205.7 12,220.3

– Land and buildings 68.2 66.0 14.4 14.4 1,094.0 1,065.6

– Assets under construction and prepayments 1,032.5 1,005.3 41.9 51.1 4,059.0 3,295.9

Equity and liabilities 9,907.1 9,532.8 982.9 989.8 20,553.7 19,819.0

Liabilities 5,212.2 5,106.7 704.9 657.7 12,649.9 11,951.9

of which

– Financial liabilities 3,043.5 3,098.0 467.0 432.6 600.4 642.4

– Public-sector loans for rail infrastructure

financing 448.2 383.4 1.0 0.4 10,986.5 10,333.3

Finanz e.indd 116 12.03.13 11:40

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Real Estate Group-level units Eliminations Total SBB

2012 2011 2012 2011 2012 2011 2012 2011

669.8 615.0 777.9 628.3 –2,266.0 –2,052.3 8,168.5 8,021.7

0.0 0.0 0.0 0.0 –901.6 –859.8 3,705.3 3,675.4

0.0 0.0 0.0 0.0 0.0 0.0 2,321.3 2,304.5

508.1 474.5 1.6 1.5 –134.4 –153.6 386.5 353.5

–485.2 –438.5 –695.6 –530.0 2,301.7 2,078.9 –7,677.7 –7,492.1

–108.9 –103.4 –238.3 –222.1 133.2 117.2 –3,632.8 –3,554.3

–129.8 –132.1 –21.1 –13.6 0.0 0.0 –1,691.8 –1,673.8

–14.0 –0.8 –3.5 –3.4 872.8 842.8 –240.2 –232.3

184.6 176.5 82.3 98.4 35.7 26.6 490.9 529.7

7.8 5.9 38.2 –26.6 –31.0 –32.5 –68.4 –190.9

–183.8 –180.1 33.8 30.1 0.0 0.0 0.0 0.0

8.6 2.4 154.4 101.8 4.7 –5.8 422.5 338.7

138.0 114.0 42.3 162.4 0.0 0.0 1,436.1 884.9

–323.2 –252.9 904.1 –23.4 0.0 0.0 –2,135.6 –2,365.3

–185.2 –138.9 946.3 138.9 0.0 0.0 –699.5 –1,480.3

0.0 0.0 0.0 0.0 0.0 0.0 1,605.3 1,475.1

–185.2 –138.9 946.3 138.9 0.0 0.0 905.8 –5.2

31. 12. 2012 31. 12. 2011 31. 12. 2012 31. 12. 2011 31. 12. 2012 31. 12. 2011 31. 12. 2012 31. 12. 2011

4,236.4 3,898.4 8,596.2 8,979.6 –9,399.6 –9,338.9 34,876.7 33,880.8

160.0 66.9 1,420.9 2,031.9 –2,618.8 –2,386.8 2,412.8 2,289.7

4,076.4 3,831.6 7,175.3 6,947.6 –6,780.8 –6,952.1 32,463.9 31,591.1

5.0 3.0 0.0 0.0 0.0 0.0 6,550.2 6,184.0

2.9 3.0 0.0 0.0 0.0 0.0 12,602.9 12,561.1

2,750.1 2,735.6 3.5 4.1 0.0 0.0 3,930.2 3,885.7

965.1 735.4 2.9 2.8 0.0 0.0 6,101.4 5,090.6

4,236.4 3,898.4 8,596.2 8,979.6 –9,399.6 –9,338.9 34,876.7 33,880.8

3,483.0 3,153.6 11,054.0 11,591.8 –8,990.8 –8,925.3 24,113.2 23,536.4

3,151.2 2,911.2 8,841.5 9,325.3 –8,450.2 –8,444.8 7,653.2 7,964.6

0.0 0.0 0.0 0.0 0.0 0.0 11,435.7 10,717.1

Finanz e.indd 117 12.03.13 11:40

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List of SBB shareholdings.

Group shareholdings and associates.

Company name Share capitalmillions

Held by SBBmillions

Held by SBB%

Held by SBB%

Seg

31. 12. 2012 31. 12. 2011

Schweizerische Bundesbahnen SBB AG, Berne CHF 9,000.00 9,000.00 100.00 100.00 V

Schweizerische Bundesbahnen SBB Cargo AG, Basel CHF 314.00 314.00 100.00 100.00 V G

Etzelwerk AG, Einsiedeln CHF 20.00 20.00 100.00 100.00 V I

SBB Insurance AG, Vaduz CHF 12.50 12.50 100.00 100.00 V KB

elvetino AG, Zurich CHF 11.00 11.00 100.00 100.00 V P

AlpTransit Gotthard AG, Lucerne CHF 5.00 5.00 100.00 100.00 E I

SBB GmbH, Konstanz EUR 1.50 1.50 100.00 100.00 V P

ChemOil Logistics AG, Basel CHF 1.00 1.00 100.00 100.00 V G

elvetino management AG in Liquidation, Zurich CHF 0.10 0.10 100.00 100.00 V P

Compagnie du Chemin de fer Vevey-Chexbres SA, Vevey CHF 0.95 0.87 91.97 5.27 V I

Kraftwerk Amsteg AG, Silenen CHF 80.00 72.00 90.00 90.00 V I

Thurbo AG, Kreuzlingen CHF 75.00 67.50 90.00 90.00 V P

RailAway AG, Lucerne CHF 0.10 0.09 86.00 86.00 V P

SBB Cargo International AG, Olten CHF 25.00 18.75 75.00 75.00 V G

SBB Cargo Italia S.r.l., Gallarate EUR 13.00 9.75 75.00 75.00 V G

SBB Cargo Deutschland GmbH, Duisburg EUR 1.50 1.13 75.00 75.00 V G

RegionAlps SA, Martigny CHF 6.65 4.66 70.00 70.00 V P

Euroswitch AG, Freienbach CHF 3.00 2.00 66.67 66.67 V I

zb Zentralbahn AG, Stansstad CHF 120.00 79.20 66.00 66.00 V P

Sensetalbahn AG, Berne CHF 2.89 1.89 65.47 65.47 V P

Swiss Travel System AG, Zurich CHF 0.30 0.18 60.00 60.00 V P

Kraftwerk Rupperswil-Auenstein AG, Aarau CHF 12.00 6.60 55.00 55.00 V I

Securitrans Public Transport Security AG, Berne CHF 2.00 1.02 51.00 51.00 V I

Cisalpino AG, Muri bei Bern CHF 162.50 81.25 50.00 50.00 Q P

Kraftwerk Wassen AG, Wassen CHF 16.00 8.00 50.00 50.00 E I

TILO SA, Bellinzona CHF 2.00 1.00 50.00 50.00 Q P

Rail Europe 4A SNC, Paris EUR 0.92 0.46 50.00 50.00 E P

Parking de la Gare de Neuchâtel SA, Neuchâtel CHF 0.10 0.05 50.00 50.00 E IM

Transferis SAS, Annemasse EUR 0.04 0.02 50.00 50.00 E P

Rheinalp GmbH, Freiburg im Breisgau EUR 0.03 0.01 50.00 50.00 E P

Kraftwerk Göschenen AG, Göschenen CHF 60.00 24.00 40.00 40.00 E I

Nant de Drance SA, Finhaut CHF 150.00 54.00 36.00 36.00 E I

Grosse Schanze AG, Berne CHF 2.95 1.00 33.90 33.90 E IM

RA lpin AG, Olten CHF 4.53 1.50 33.11 33.11 E G

Bus Ostschweiz AG, Altstätten CHF 0.10 0.03 30.60 30.60 E P

Terzag Terminal Zürich AG in Liquidation, Zurich CHF 0.20 0.06 30.00 30.00 E I

Lyria SAS, Paris EUR 0.08 0.02 26.00 26.00 E P

Trasse Schweiz AG, Berne CHF 0.10 0.03 25.00 25.00 E I

STC Switzerland Travel Centre AG, Zurich CHF 5.25 1.26 24.01 57.00 E P

Hupac SA, Chiasso CHF 20.00 4.77 23.85 23.85 E G

Parking de la Place de Cornavin SA, Geneva CHF 10.00 2.00 20.00 20.00 E IM

SBB Transportpolizei Schweiz AG, Berne (merged) CHF 0.00 0.00 0.00 100.00 V P

SBB Cargo S.r.I., Gallarate (liquidated) EUR 0.00 0.00 0.00 100.00 V G

STC Switzerland Travel Centre Ltd., London (sold) GBP 0.05 0.00 0.00 57.00 V P

STC Switzerland Travel Center GmbH, Stuttgart (sold) EUR 0.03 0.00 0.00 57.00 V P

e-domizil AG, Zurich (sold) CHF 0.10 0.00 0.00 28.50 E P

Inclusion: Seg = Segment:

V = fully consolidated G = Freight P = Passenger

E = accounted for by equity method I = Infrastructure KB = Group-level units

Q = proportionate consolidation IM = Real Estate

Finanz e.indd 118 12.03.13 11:40

P 119


SBB GroupReport of the statutory auditor on the consolidated financial statements

Ernst & Young LtdBelpstrasse 23P.O. BoxCH-3001 Berne

Phone +41 58 286 61 11Fax +41 58 286 68 18www.ey.com/ch

Member of the Swiss Institute of Certified Accountants and Tax Consultants

To the General Meeting of

Swiss Federal Railways SBB, Berne

Berne, 8 March 2013

Report of the statutory auditor on the consolidatedfinancial statements

As statutory auditor, we have audited the consolidated financial statements of Swiss FederalRailways SBB, which comprise the consolidated income statement, consolidated balancesheet, consolidated cash flow statement, consolidated statement of changes in equity andnotes to the consolidated financial statements / pages 88 to 118 for the year ended 31 De-cember 2012.

Board of Directors’ responsibilityThe Board of Directors is responsible for the preparation and fair presentation of the con-solidated financial statements in accordance with Swiss GAAP FER and the requirements ofSwiss law. This responsibility includes designing, implementing and maintaining an internalcontrol system relevant to the preparation and fair presentation of consolidated financialstatements that are free from material misstatement, whether due to fraud or error. TheBoard of Directors is further responsible for selecting and applying appropriate accountingpolicies and making accounting estimates that are reasonable in the circumstances.

Auditor’s responsibilityOur responsibility is to express an opinion on these consolidated financial statements basedon our audit. We conducted our audit in accordance with Swiss law and Swiss Auditing Stan-dards. Those standards require that we plan and perform the audit to obtain reasonable as-surance whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the consolidated financial statements. The procedures selected depend on theauditor’s judgment, including the assessment of the risks of material misstatement of theconsolidated financial statements, whether due to fraud or error. In making those risk as-sessments, the auditor considers the internal control system relevant to the entity’s prepara-tion and fair presentation of the consolidated financial statements in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose of expressingan opinion on the effectiveness of the entity’s internal control system. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofaccounting estimates made, as well as evaluating the overall presentation of the consoli-

Report of the statutory auditor on the consolidated financial statements.

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SBB GroupReport of the statutory auditor on the consolidated financial statements

2

dated financial statements. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements for the year ended 31 December 2012give a true and fair view of the financial position, the results of operations and the cash flowsin accordance with Swiss GAAP FER and comply with Swiss law.

Report on other legal requirements

We confirm that we meet the legal requirements on licensing according to the Auditor Over-sight Act (AOA) and independence (article 728 CO) and that there are no circumstances in-compatible with our independence.

In accordance with article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, weconfirm that an internal control system exists, which has been designed for the preparationof consolidated financial statements according to the instructions of the Board of Directors.

We recommend that the consolidated financial statements submitted to you be approved.

Ernst & Young Ltd

Alessandro Miolo Florian BaumgartnerLicensed audit expert(Auditor in charge)

Licensed audit expert

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P 121


SBB AGIncome statement

SBB AG Income statement.

1 January to 31 December.


Operating incomeTraffic revenues 1 2,971.1 2,919.4

Public-sector funding 2 2,126.7 2,108.4

Rental income from real estate 395.7 363.6

Other income 3 977.6 915.3

Own work capitalised 865.7 807.6

Total operating income 7,336.7 7,114.4

Operating expensesCost of materials –670.4 –666.7

Personnel expenses 4 –2,998.9 –2,918.9

Other operating expenses 5 –1,597.0 –1,487.1

Depreciation of property, plant and equipment, write-downs of financial assets

and amortisation of intangible assets –1,620.7 –1,568.5

Total operating expenses –6,887.1 –6,641.2

EBIT/operating result 449.6 473.2

Financial income 111.8 140.6

Financial expenses –190.4 –341.8

Profit from ordinary activities 371.0 272.1

Non-operating result 6 65.0 66.2

Profit before tax 436.1 338.2

Income taxes –13.1 –3.3

Net income for the year 7 423.0 334.9

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P 122


SBB AGBalance sheet

SBB AG Balance sheet.

Assets.


Current assetsCash and cash equivalents 735.8 149.3

Securities and current financial receivables 77.1 875.1

Trade accounts receivable 8 514.0 672.5

Other receivables 182.1 175.6

Inventories and work in progress 342.1 305.2

Prepaid expenses and accrued income 407.8 493.1

Total current assets 2,258.9 2,670.8

Fixed assetsFinancial assets 9 1,951.9 2,263.4

Property, plant and equipment 23,343.0 22,829.3

Assets under construction – property, plant and equipment 5,875.0 4,909.2

Intangible assets 688.0 636.2

Total fixed assets 31,857.9 30,638.1

Total assets 34,116.8 33,308.9

Equity and liabilities.


LiabilitiesCurrent financial liabilities 10 359.5 948.6

Current public-sector loans for rail infrastructure financing 11 46.2 54.7

Trade accounts payable 12 909.3 735.8

Other current liabilities 13 185.2 155.1

Deferred income and accrued charges 1,396.3 1,321.7

Current provisions 14 190.3 211.0

Total current liabilities 3,086.9 3,426.9

Non-current financial liabilities 10 7,077.6 6,934.5

Non-current public-sector loans for rail infrastructure financing 11 10,979.0 10,333.6

Other non-current liabilities 13 1,886.8 1,956.9

Non-current provisions 14 593.7 587.0

Total non-current liabilities 20,537.0 19,812.0

Total liabilities 23,623.8 23,238.9

EquityShare capital 9,000.0 9,000.0

Legal reserves

Reserves from capital contributions 2,000.0 2,000.0

Reserves in accordance with EBG 67/PBG 36 648.9 587.0

Accumulated loss

Loss carried forward –1,578.9 –1,852.0

Net income for the year 423.0 334.9

Total equity 10,493.0 10,070.0

Total equity and liabilities 34,116.8 33,308.9

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SBB AGNotes to the separate financial statements

Notes to the separate financial statements of SBB AG.Detailed information on the financial statements.

0.1 General.The accounting principles applied to the SBB AG financial statements meet the requirements of Swiss company law (Code of Obligations – CO).

0.2 Projected benefit obligations.SBB AG provides occupational benefits through the SBB pension fund. The SBB pension fund reported a static shortfall of CHF 132.0 million

as at 31 December 2012 (previous year: CHF 521.0 million).

The current reserve ratio stands at 99.1 % (previous year: 96.4 %). Benefit obligations of CHF 1,789.1 million were recognised as liabilities as

at 31 December 2012 (previous year: CHF 1,855.1 million).

For further information on benefit obligations, please see the notes to the consolidated financial statements.

0.3 Benefits credited to the Zurich public transport authority (Zürcher Verkehrsverbund – ZVV).Federal government grants for infrastructure include benefits of CHF 41.0 million (unchanged year on year) paid to SBB AG which were passed on to

the Zurich transport authority (ZVV) (“preferential compensation”). This sum is not directly linked to services performed by SBB AG but is forwarded in full

to the ZVV by deducting it from the cantonal grants for regional passenger services in accordance with the disclosure practice specified by the Federal

Office of Transport (FOT).

0.4 Restructuring of Energy unit.In April 2001, CSFB established that provisions totalling CHF 1.2 billion were required for the restructuring of the Energy unit. The provision has since fallen

to CHF 505.2 million due to its release on the sale of power stations and shareholdings, the recognition of impairment losses on assets and its use for

power generation costs that exceed the market price. CHF 16.5 million was used in the reporting period.

0.5 Environmental provision.An expert report prepared by external consultants identified the need for SBB AG to recognise an environmental provision amounting to CHF 393.0 million

as at 1 January 1999. In view of major uncertainties regarding the size of this provision, it was agreed with the federal government that the total amount

of the provision should not be entered in the opening balance sheet but that an initial provision totalling CHF 110.0 million for clean-up costs be entered.

Clean-up operations continued in 2012 and the associated costs, totalling CHF 3.5 million, were charged to the provision. The provision now stands

at CHF 50.6 million.

0.6 Income taxes.With the exception of auxiliary facilities and properties unconnected with SBB’s licensed transport activities, SBB AG is exempt from federal and cantonal

tax on earnings, capital gains tax, capital gains tax on property and real estate tax.

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Balance sheet and income statement disclosures.

1 Traffic revenues.


Passenger traffic 2,671.9 2,619.8

Operating services 69.8 70.9

Infrastructure (track access charges) 229.5 228.8

Traffic revenues 2,971.1 2,919.4

2 Public-sector funding.


Grants for regional passenger servicesFederal government 214.7 192.2

Cantons 253.3 258.0

Total grants for regional passenger services 468.0 450.2

Federal government contributions to SBB AG infrastructure arising from service-levelagreementDepreciation of infrastructure 932.2 901.0

Non-capitalised portions of investments 126.6 143.6

Operating grant for infrastructure 505.0 510.0

Total federal government contributions from service-level agreement 1,563.8 1,554.6

Contributions for non-capitalised portions of investments funded by special financingarrangementsFederal government 77.2 89.3

Cantons 17.7 14.2

Total contributions to investments funded by special financing arrangements 94.9 103.6

Total contribution for rail infrastructure 1,658.6 1,658.2

Public-sector funding 2,126.7 2,108.4

3 Other income.


Services 192.6 204.1

Maintenance and servicing work 135.4 136.0

Rental revenue 76.0 64.9

Income from energy-related activities 63.9 57.9

Foreign currency exchange 41.2 41.4

Commissions 72.3 71.7

Sales of printed matter and materials 78.8 69.8

Cost participations 168.1 139.7

Gains on the disposal of operating assets 3.2 3.4

Sundry other income 146.1 126.3

Other income 977.6 915.3

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4 Personnel expenses.


Wages and salaries 2,443.9 2,356.0

Social security costs 398.6 412.9

Personnel expenses – labour market centre AMC 11.4 9.5

Other personnel expenses 145.0 140.5

Personnel expenses 2,998.9 2,918.9

5 Other operating expenses.


Rail operations 143.3 134.3

Lease of plant 47.4 46.5

Third-party services for maintenance, repair and replacement 553.5 523.3

Vehicle costs 107.5 97.4

Energy expenses 161.0 179.8

Administrative expenses 81.9 76.9

IT expenses 225.2 210.9

Advertising costs 55.2 51.9

Licences, duties and fees 68.9 70.0

Loss from sale of operating assets 0.5 2.8

Input tax reductions on grants/public-sector funding 76.7 76.1

Sundry operating expenses 75.9 17.2

Other operating expenses 1,597.0 1,487.1

6 Non-operating result.


Gain on the disposal of real estate 65.1 66.3

Loss on the disposal of real estate –0.1 –0.1

Non-operating result 65.0 66.2

7 Net income for the year.


Net income/loss for the year from operations eligible for grants

Regional passenger services as per Art. 36 PBG 6.1 30.9

Infrastructure as per Art. 67 EBG –45.1 46.3

Net income for the year (operations not eligible for grants) 461.9 257.6

Net income for the year 423.0 334.9

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8 Trade accounts receivable.

CHF millions 31. 12. 2012 31. 12. 2011

Trade accounts receivable

from third parties 443.0 628.0

from Group companies 87.0 52.7

from associated companies 30.7 21.6

Bad debt allowances –46.7 –29.8

Trade accounts receivable 514.0 672.5

9 Financial assets.

CHF millions 31. 12. 2012 31. 12. 2011

Securities classified as fixed assets 228.4 270.0

Shareholdings1 680.2 731.7

Loans to third parties 55.5 633.9

Loans to Group companies 941.3 579.9

Loans to associated companies 46.5 47.9

Financial assets 1,951.9 2,263.4

1 The list under Note 18 shows the principal shareholdings of SBB AG.

10 Current and non-current financial liabilities.

CHF millions 31. 12. 2012 31. 12. 2011

Bank liabilities 2,196.3 2,328.0

Lease liabilities 840.2 1,097.6

Staff accounts 1,738.7 1,659.9

Financial liabilities to Group companies 108.4 484.4

Loans from federal government (commercial) 890.0 590.0

Loans from pension funds 1,663.5 1,723.3

Financial liabilities 7,437.1 7,883.1

11 Public-sector loans for rail infrastructure financing.

CHF millions 31. 12. 2012 31. 12. 2011

Federal government loans – basic infrastructure needs 3,245.4 3,060.7

Federal government loans – FinöV fund 6,256.1 6,110.6

Federal government loans – infrastructure fund 632.1 416.3

Cantonal loans – infrastructure fund 891.6 800.6

Public-sector loans for rail infrastructure financing 11,025.2 10,388.3

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12 Trade accounts payable.

CHF millions 31. 12. 2012 31. 12. 2011

Trade accounts payable

to third parties 819.7 676.1

to Group companies 88.7 59.0

to associated companies 0.9 0.8

Trade accounts payable 909.3 735.8

13 Other liabilities.

CHF millions 31. 12. 2012 31. 12. 2011

Current liabilities to public-sector bodies 105.8 96.5

Other current liabilities 79.5 58.6

Non-current deferred income 97.7 101.8

Pension fund liabilities1 1,789.1 1,855.1

Other liabilities 2,072.0 2,112.0

1 Please see Note 0.2 Projected benefit obligations and the information on liabilities to pension funds in the Notes to the consolidated financial statements.

14 Current and non-current provisions.

CHF millions 31. 12. 2012 31. 12. 2011

Environmental provision 50.6 54.1

Restructuring of Energy unit 505.2 521.7

Vacation/overtime 77.1 79.1

Restructuring 18.2 24.0

Other provisions 132.8 119.2

Provisions 783.9 798.0

15 Net debt.


Current and non-current financial liabilities 10 7,437.1 7,883.1

Loans for rail infrastructure financing 11 11,025.2 10,388.3

Total borrowings 18,462.3 18,271.4

Less cash and cash equivalents and current receivables –812.9 –1,024.4

Net debt 17,649.4 17,247.0

Change compared to the previous year 402.3 250.6

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16 Other notes.

16.1 Sureties, guarantees and pledges in favour of third parties.

CHF millions 31. 12. 2012 31. 12. 2011

Leased assets 265.1 378.9

Sureties and guarantees 75.4 217.1

Vehicles as collateral for EUROFIMA hire-purchase agreements 1,280.9 862.6

Liabilities from unpaid share capital 147.2 147.2

Statutory liability clauses 130.0 130.0

Other 26.9 31.7

Total 1,925.5 1,767.6

16.2 Fire insurance value of property, plant and equipment.The fire insurance value of property, plant and equipment corresponds to their replacement or new value.

16.3 Liquidity management.SBB carries out Group-wide cash pooling. SBB AG participates in the cash pooling and is pool leader. The pool can exercise a lien on the credit balances

(pool participant accounts) to guarantee its claims against the pool participants.

16.4 Off-balance-sheet lease liabilities.

CHF millions 31. 12. 2012 31. 12. 2011

Due within 1 year 1.4 4.7



Total 2.5 6.6

16.5 Information on risk assessment.SBB AG is included in the SBB Group’s risk management.

The Group carries out an annual process of identifying, assessing and managing key risks, defining the measures to be taken and ensuring they

are implemented. The process is followed in accordance with SBB’s risk policy. The findings of the risk assessment are collated and discussed with

the Management Board. The Board of Directors approved the 2012 Corporate Risk Report on 13 December 2012.

SBB AG makes certain estimates and assumptions about the future for accounting and valuation purposes. Internal control and management systems

ensure that the annual financial statements comply with the applicable accounting standards and that reporting is conducted properly.

For further information on risk assessment, please see the Notes to the consolidated financial statements.

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17 Information in accordance with the DETEC Ordinance on the Accounting of Licensed Companies (RKV).SBB AG is subject to the DETEC Ordinance on the Accounting of Licensed Companies.

Amounts of cover for property and liability insurance (Art. 3 RKV).SBB AG has taken out property insurance with cover of CHF 300 million (2011: CHF 250 million) and liability insurance with cover of CHF 400 million

(unchanged year on year) for all business units.

Property, plant and equipment and assets under construction – Infrastructure (Art. 7 RKV).

CHF millions Vehicles(incl.

leased)

Civilengineering,

trackbedand railwayinstallations

Otherproperty,plant and

equipment

Land Buildings Intangibleassets

Totalproperty,plant and

equipmentand

intangibleassets

Assetsunder

construc-tion andprepay-

ments (incl.intangible

assets)

Total

Net book value 1.1. 2012 454.8 11,973.5 1,181.4 606.4 385.5 239.4 14,841.0 3,252.9 18,093.9

Acquisition costsAs at 1.1. 2012 860.0 18,937.5 2,720.9 606.4 652.9 377.5 24,155.3 3,252.9 27,408.2

Investments 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1,656.7 1,656.7

Disposals of assets –13.1 –163.7 –68.5 –1.7 –2.9 –4.6 –254.5 0.0 –254.5

Reclassifications 18.8 672.0 138.4 4.8 23.3 24.4 881.7 –866.2 15.5

As at 31.12. 2012 865.7 19,445.8 2,790.8 609.6 673.3 397.3 24,782.4 4,043.4 28,825.9

Accumulated depreciationAs at 1.1. 2012 –405.2 –6,964.1 –1,539.5 0.0 –267.4 –138.1 –9,314.3 0.0 –9,314.3

Depreciation –32.8 –643.7 –155.1 0.0 –14.8 –37.8 –884.2 0.0 –884.2

Disposals 11.2 130.4 65.9 0.0 1.6 3.5 212.6 0.0 212.6

Reclassifications 0.0 –2.9 –2.6 0.0 –0.1 0.0 –5.6 0.0 –5.6

As at 31.12. 2012 –426.7 –7,480.2 –1,631.3 –0.1 –280.7 –172.5 –9,991.5 0.0 –9,991.5

Net book value 31.12. 2012 439.0 11,965.6 1,159.4 609.5 392.6 224.8 14,790.9 4,043.4 18,834.4

Reclassifications include additions of plant from other SBB divisions amounting to CHF 9.9 million (net).

Depreciation of property, plant and equipment and amortisation of intangible assets – Infrastructure (Art. 7 RKV).

CHF millions 31. 12. 2012 31. 12. 2011

Depreciation of property, plant and equipment 846.4 814.7

Amortisation of intangible assets 37.8 34.6

Write-downs of net book values from disposals of assets 36.6 39.9

Total 920.8 889.2

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Investments – Infrastructure (Art. 3 RKV).

CHF millions 31. 12. 2012 31. 12. 2011

Investments in assets 1,656.7 1,373.9

Assets acquired from other SBB segments 9.9 29.8

Non-capitalised portions of investment costs 221.4 247.2

Total 1,888.0 1,650.9

Investments include investment grants from the federal government for noise reduction and measures under the Federal Act on Equality for People with

Disabilities (BehiG) in the amount of CHF 68.7 million (previous year: CHF 68.2 million).

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18 Principal shareholdings.

Company name Share capitalmillions

Held by SBB AGmillions

Held by SBB AGin %

Held by SBB AGin %

31. 12. 2012 31. 12. 2011

Passenger transport and tourismelvetino AG, Zurich CHF 11.00 11.00 100.00 100.00

SBB GmbH, Konstanz EUR 1.50 1.50 100.00 100.00

Thurbo AG, Kreuzlingen CHF 75.00 67.50 90.00 90.00

RailAway AG, Lucerne CHF 0.10 0.09 86.00 86.00

RegionAlps SA, Martigny CHF 6.65 4.66 70.00 70.00

zb Zentralbahn AG, Stansstad CHF 120.00 79.20 66.00 66.00

Sensetalbahn AG, Berne CHF 2.89 1.89 65.47 65.47

Swiss Travel System AG, Zurich CHF 0.30 0.18 60.00 60.00

Cisalpino AG, Muri bei Bern CHF 162.50 81.25 50.00 50.00

TILO SA, Bellinzona CHF 2.00 1.00 50.00 50.00

Rail Europe 4A SNC, Paris EUR 0.92 0.46 50.00 50.00

Transferis SAS, Annemasse EUR 0.04 0.02 50.00 50.00

Rheinalp GmbH, Freiburg im Breisgau EUR 0.03 0.01 50.00 50.00

Lyria SAS, Paris EUR 0.08 0.02 26.00 26.00

STC Switzerland Travel Centre AG, Zurich CHF 5.25 1.26 24.01 57.00

Freight transport and forwardingSchweizerische Bundesbahnen SBB Cargo AG, Basel CHF 314.00 314.00 100.00 100.00

Power stationsEtzelwerk AG, Einsiedeln CHF 20.00 20.00 100.00 100.00

Kraftwerk Amsteg AG, Silenen CHF 80.00 72.00 90.00 90.00

Kraftwerk Rupperswil-Auenstein AG, Aarau CHF 12.00 6.60 55.00 55.00

Kraftwerk Wassen AG, Wassen CHF 16.00 8.00 50.00 50.00

Kraftwerk Göschenen AG, Göschenen CHF 60.00 24.00 40.00 40.00

Nant de Drance SA, Finhaut CHF 150.00 54.00 36.00 36.00

Real estate and car parksParking de la Gare de Neuchâtel SA, Neuchâtel CHF 0.10 0.05 50.00 50.00

Grosse Schanze AG, Berne CHF 2.95 1.00 33.90 33.90

Parking de la Place de Cornavin SA, Geneva CHF 10.00 2.00 20.00 20.00

MiscellaneousSBB Insurance AG, Vaduz CHF 12.50 12.50 100.00 100.00

AlpTransit Gotthard AG, Lucerne CHF 5.00 5.00 100.00 100.00

Compagnie du Chemin de fer Vevey-Chexbres SA, Vevey CHF 0.95 0.87 91.97 5.27

Euroswitch AG, Freienbach CHF 3.00 2.00 66.67 66.67

Securitrans Public Transport Security AG, Berne CHF 2.00 1.02 51.00 51.00

Terzag Terminal Zürich AG in Liquidation, Zurich CHF 0.20 0.06 30.00 30.00

Trasse Schweiz AG, Berne CHF 0.10 0.03 25.00 25.00

SBB Transportpolizei Schweiz AG, Berne (merged) CHF 0.00 0.00 0.00 100.00

19 Approval of the annual financial statements by the Federal Office of Transport.Pursuant to Art. 37 of the Passenger Transport Act (PBG), the Federal Office of Transport has unconditionally approved the annual financial statements

for 2012 having examined them for compliance with the legal requirements governing subsidies and issued the corresponding report on

26 February 2013.

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SBB AGBoard’s proposal for the appropriation of accumulated loss

Board’s proposal for the appropriation of accumulated loss.

The Board of Directors proposes to the General Meeting that the accumulated loss as at 31 December 2012 be appropriated as follows:

CHF millions 31. 12. 2012 31. 12. 2011

Net income 423.0 334.9

Loss carried forward from previous year –1,578.9 –1,852.0

Accumulated loss before allocations to the reserves –1,155.9 –1,517.1

Allocations to reserves from 2012 net income– Passenger services: formation of reserves in accordance with Art. 36

of the Passenger Transport Act (PBG) –6.1 –15.5

– Infrastructure: removal from reserve in accordance with Art. 67 EBG 45.1 –46.3

Accumulated loss at the disposal of the General Meeting –1,117.0 –1,578.9

To be carried forward –1,117.0 –1,578.9

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SBB AGReport of the statutory auditor on the financial statements

Ernst & Young LtdBelpstrasse 23P.O. BoxCH-3001 Berne

Phone +41 58 286 61 11Fax +41 58 286 68 18www.ey.com/ch

Member of the Swiss Institute of Certified Accountants and Tax Consultants

To the General Meeting of

Swiss Federal Railways SBB, Berne

Berne, 8 March 2013

Report of the statutory auditor on the financial statements

As statutory auditor, we have audited the financial statements of Swiss Federal RailwaysSBB, which comprise the income statement, balance sheet and notes / pages 121 to 131 forthe year ended 31 December 2012.

Board of Directors’ responsibilityThe Board of Directors is responsible for the preparation of the financial statements in ac-cordance with the requirements of Swiss law and the company’s articles of incorporation.This responsibility includes designing, implementing and maintaining an internal control sys-tem relevant to the preparation of financial statements that are free from material mis-statement, whether due to fraud or error. The Board of Directors is further responsible forselecting and applying appropriate accounting policies and making accounting estimates thatare reasonable in the circumstances.

Auditor’s responsibilityOur responsibility is to express an opinion on these financial statements based on our audit.We conducted our audit in accordance with Swiss law and Swiss Auditing Standards. Thosestandards require that we plan and perform the audit to obtain reasonable assurancewhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor’sjudgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditorconsiders the internal control system relevant to the entity’s preparation of the financialstatements in order to design audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness of the entity’s internalcontrol system.

An audit also includes evaluating the appropriateness of the accounting policies used and thereasonableness of accounting estimates made, as well as evaluating the overall presentationof the financial statements. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion.

Report of the statutory auditor on the financial statements.

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SBB AGReport of the statutory auditor on the financial statements

2

OpinionIn our opinion, the financial statements for the year ended 31 December 2012 comply withSwiss law and the company’s articles of incorporation.

Report on other legal requirements

We confirm that we meet the legal requirements on licensing according to the Auditor Over-sight Act (AOA) and independence (Art. 728 Code of Obligations (CO)) and that there are nocircumstances incompatible with our independence.

In accordance with article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, weconfirm that an internal control system exists, which has been designed for the preparationof financial statements according to the instructions of the Board of Directors.

We recommend that the financial statements submitted to you be approved.

Ernst & Young Ltd

Alessandro Miolo Florian BaumgartnerLicensed audit expert(Auditor in charge)

Licensed audit expert

Finanz e.indd 134 12.03.13 11:40

sbb «financial report 2012»

Documents

39p79sbb financial report

39p80sbb financial report

financial statementsthe

groupp80 report

annual report

year decline

previous year

consolidated net income