Annual Report 2022
Ready like
never before
Annual Report
publications
Annual Report 2022
Ready like
never before
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2/5/2023 10:03:58 AM
2022 at a glance
Ready like
never before
The Annual Report, Sustainability Report and ‘2022 at a glance’ together make up Swisscom’s reporting
on 2022. The three publications are available online at: swisscom.ch/report2022.
‘Ready like never before’ concept
As part of its ‘Ready like never before’ concept, Swisscom points out that, thanks to Swisscom products
and services, its customers are more ready than ever to take advantage of the opportunities offered by the
connected world – simply, securely, anywhere and at any time. Swisscom also offers its employees and
apprentices training and development opportunities so that they are prepared to use the skills they have
acquired to improve Swisscom’s competitiveness and their own employability.
The majority of the images on the cover pages and in the report are taken from the various Swisscom
campaigns conducted during the 2022 reporting year. The images of the Board of Directors and the Group
Executive Board were taken by Alida Ruf, an apprentice in the Swisscom photo and film team.
Sustainability Report 2022Ready like never before7a8df08282e048a6ad3b98cb5fb81d27.indd 17a8df08282e048a6ad3b98cb5fb81d27.indd 11/28/2023 1:02:07 PM1/28/2023 1:02:07 PM
Table of contents
Introduction
Management Commentary
1 – 9
10 – 59
Corporate Governance and Remuneration Report
60 – 103
Consolidated Financial Statements
Further Information
104 – 173
174 – 182
1
2022 in review
Net revenue
billion CHF
EBITDA
billion CHF
Capital expenditure
billion CHF
11.1
0.6%
4.4
1.6%
2.3
1.0%
Net income
billion CHF
Net debt to EBITDA
ratio
Equity ratio
%
1.6
12.5%
1.7
45.4
1.8 PP
Employees
(full-time equivalent)
Dividend per share
CHF
Total shareholder
return Swisscom share
%
19,157
1.3%
22
2.5
10.4 PP
Impressive
Swisscom again gives an impressive performance
in the service tests with the best customer
experience – in person in the store and digitally
via the ‘My Swisscom App’.
World first
Successful field test of a
GPON fibre optic performance
of 50 Gbit/s.
Climate-
neutral
Swisscom is the first provider
to offer all its services as
climate-neutral – automati-
cally and at no extra charge.
Successful
More than 10 years of Fastweb –
more sales, more customers
and higher earnings in Italy.
With blue, Swisscom
is launching the next
generation change for subscriptions –
simpler, more attractive,
more digital and more individual.
Outstanding
Swisscom again wins
all mobile network tests
in Switzerland and impresses
with the fastest fibre-optic
networks – each with
the rating ‘outstanding’.
KPIs
In CHF million, except where indicated
Net revenue and results 1
Net revenue
Operating income before depreciation and amortisation (EBITDA)
EBITDA as % of net revenue
EBITDA after lease expense (EBITDA AL)
Operating income (EBIT)
Net income
Earnings per share
Balance sheet and cash flows 1
Equity
Equity ratio
Capital expenditure
Operating free cash flow proxy
Free cash flow
Net debt
Operational data
Fixed telephony access lines in Switzerland
Broadband access lines retail in Switzerland
TV access lines in Switzerland
Mobile access lines in Switzerland
Access lines wholesale Switzerland
Broadband access lines retail in Italy
Broadband access lines wholesale in Italy
Mobile access lines in Italy
Swisscom share
Number of issued shares
Market capitalisation
Closing price at end of period
Closing price highest
Closing price lowest
Dividend per share
Employees
Full-time equivalent employees
Average number of full-time equivalent employees
2022
2021
Change
11,112
11,183
4,406
39.7
4,120
2,040
1,603
30.93
4,478
40.0
4,177
2,066
1,833
35.37
–0.6%
–1.6%
–1.4%
–1.3%
–12.5%
–12.6%
11,171
10,813
3.3%
45.4
2,309
1,811
1,349
7,374
1,322
2,027
1,571
6,173
679
2,683
458
3,087
51,802
26,243
506.60
590.40
443.40
22.00
2
19,157
19,046
43.6
2,286
1,891
1,513
7,706
1,424
2,037
1,592
6,177
698
2,750
306
2,472
51,802
26,657
514.60
562.40
456.30
22.00
18,905
19,099
1.0%
–4.2%
–10.8%
–4.3%
–7.2%
–0.5%
–1.3%
–0.1%
–2.7%
–2.4%
49.7%
24.9%
–
–1.6%
–1.6%
–
1.3%
–0.3%
%
CHF
%
in thousand
in thousand
in thousand
in thousand
in thousand
in thousand
in thousand
in thousand
in thousand
CHF
CHF
CHF
CHF
number
number
1 Swisscom uses various alternative performance measures. The definition and
reconciliation of values in accordance with IFRS are set out in the chapter on
financial review.
2 In accordance with the proposal of the Board of Directors to the Annual
General Meeting.
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Business overview
Other Operating
Segments
With subsidiaries in the area of
network construction and main-
tenance (cablex Ltd) and broad-
cast services (Swisscom Broadcast
Ltd), Swisscom is supplementing
the core business in related areas.
The Digital Business division is fo-
cused on growth areas in the field
of Internet services and digital
business models, and also includes
business with online directories
(localsearch).
Swisscom
Switzerland
Fastweb
Fastweb provides broadband and
mobile phone services to resi-
dential, business and wholesale
customers in Italy. The offering
includes telephony, broadband
and mobile services. Fastweb
also offers comprehensive ICT
solutions for business customers.
Residential Customers
The Residential Customers division
provides mobile and fixed-line
services to residential customers
in Switzerland, such as fixed-line
telephony, broadband, TV and
mobile communications.
Business Customers
Business Customers offers tele-
com services and overall commu-
nications solutions for large cor-
porations and SME customers in
Switzerland. The offering in the
area of business ICT infrastructure
covers the entire range from
individual products to complete
solutions.
Wholesale
The Wholesale segment enables
other telecommunications pro-
viders to use the Swisscom fixed
and mobile network.
Infrastructure & Support Functions
The
Infrastructure & Support
Func tions area plans, operates and
maintains
the network and
IT infra structure in Switzerland.
Revenues
Revenues
Revenues
CHF 8.3 bn
EUR 2.5 bn
CHF 1.0 bn
EBITDA
EBITDA
EBITDA
CHF 3.5 bn
EUR 0.9 bn
CHF 0.2 bn
5
Shareholders’ letter
Ready like never before
From left: Christoph Aeschlimann, CEO Swisscom Ltd, Michael Rechsteiner, Chairman of the Board of Directors.
Dear Shareholders
2022 was a challenging year for us. Swisscom has long positioned itself to
cope in a crowded-out market with fierce price pressure. This was further
compounded by supply chain bottlenecks, the war in Ukraine, rising
inflation and unresolved issues surrounding energy supply. Our employees
successfully rose to these challenges. Swisscom achieved yet another stable
set of financial results, demonstrated its ability to innovate in networks
and services, and was once again rated the world’s most sustainable
telecommunications company. We are on track with our Group targets
for 2025 of clear market leadership in Switzerland, leading challenger
status in Italy through Fastweb, healthy financial results, a reputation for
responsibility towards society, and innovative products and services on
secure, resilient networks.
Number 1 in Switzerland
In Switzerland, Swisscom seeks to be inspirational, with the best networks, the best service and the most
innovative products and services.
We once again lived up to this claim, as numerous tests in the year under review bore out: for example,
we won the most relevant mobile network tests, had the fastest fibre-optic networks and came across as
significantly more service-oriented than our competitors in Switzerland. Our employees in the Swisscom
shops impressed in independent tests, as did our customer app, which received the best rating of all
service apps in the German-speaking region of Europe.
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Swisscom has further digitised and personalised its offering through the new ‘blue’ portfolio. Our customers
enjoy even faster network speeds, more content and recording capacity on blue TV, and greater online
security thanks to the new Internet Guard – all automatically and at no extra charge. And customers who
opt to use our digital assistant ‘Sam’ as their first point of contact for support can also save on costs.
Independent market researchers also name Swisscom as a leading cybersecurity provider. We now offer
Swiss companies and authorities professional emergency assistance from experienced security specialists
in the event of a cyberattack. This service is available around the clock and regardless of whether or not
the victims are Swisscom customers.
Regulatory resistance
Switzerland’s mobile communications and fibre-optic networks make it one of the top performers inter-
nationally in terms of infrastructure. Despite this, Swisscom is facing regulatory challenges, for example
with regard to the construction of adaptive antennas for mobile communications. Although the process
for the construction and renewal of these antennas has been laid down in an ordinance since January
2022 and the recommendations of the Conference of Building, Planning and Environment Directors
(BPUK) allow cantons to approve adaptive antennas without new building permits, Swiss mobile operators
are not able to expand and upgrade their networks fast enough. Customers complain about gaps in
coverage, but at the same time Swisscom alone has more than 2,000 outstanding objections to building
applications for 5G masts.
This is all the more regrettable given that a study commissioned by FOEN in 2022 found that ‘the population
as a whole has modest exposure to radiation’, and that thanks to modern technology radiation exposure
has actually been on a downward trajectory since 2014. The more modern the technology, the lower the
radiation exposure. That is why Swisscom is switching off its 3G technology – which is now 20 years old –
at the end of 2025 to make way for more modern, efficient and effective technologies such as 5G.
Due to the ongoing proceedings of the Competition Commission in relation to network expansion,
Swisscom is unable to market nearly 500,000 fibre-optic connections built using point-to-multipoint
architecture (P2MP) to the home (FTTH). In order to offer customers the option of using the fast FTTH
connections, Swisscom has decided to create new connections, largely using point-to-point (P2P) archi-
tecture, and to convert some existing P2MP connections to P2P. The annual budget for fibre optic invest-
ments of CHF 500 to 600 million remains unchanged, but the expansion is now taking place somewhat
more slowly than originally planned. This means it will only be possible to achieve 50–55% of connections
on FTTH by 2025. Swisscom will continue to invest in rolling out FTTH beyond 2025, however, with the
intention of expanding FTTH coverage to 70–80% of connections by 2030.
Fastweb – our ace card in Italy
Fastweb has been building its position as a high-quality provider in Italy for years and is now the leading
challenger in Europe’s fourth-largest broadband market. In 2022, Fastweb once again increased its revenue
across all segments. Its revenue was EUR 2,482 million (+3.8%) and its operating income before depreciation
and amortisation (EBITDA) was EUR 854 million (+3.4%).
Healthy finances create confidence
We handle the funds entrusted to us with respect and care, creating trust among our shareholders.
Healthy finances are the result of prudent management and are essential for continued success going
forward.
Swisscom recorded another solid set of financial results in 2022. With net revenue of CHF 11,112 million
(–0.6%) and operating income before depreciation and amortisation (EBITDA) of CHF 4,406 million
(–1.6%), net income was below the previous year. Revenue (+1.0%) and EBITDA (+3.1%) were both up on a
like-for-like basis and at constant exchange rates.
7
We generate healthy financial results thanks to the outstanding work of our employees and a highly
attractive range of products and services. Quite simply, this means delighting our customers every day
through future-proof, secure products and services, combined with the best quality of service and the
best networks. But that’s not all: to safeguard our long-term profitability, we need to continuously
optimise our cost base in our core business and develop new business activities. Via our transformation
efforts, we are promoting collaboration within Swisscom, working on our agility and efficiency, and
systematically driving forward digitisation. For example, we reduced our cost base in Swiss telecommuni-
cations by around a further CHF 100 million in 2022.
Taking responsibility – now, not someday
We firmly believe that digitisation creates opportunities and drives sustainability. As the Swiss market
leader, Swisscom therefore has a special responsibility. There was further independent confirmation of its
role as a pioneer in sustainability during the year under review, with World Finance magazine once again
rating Swisscom the world’s most sustainable telecommunications company. This encourages us to continue
down our chosen path with courage and rigour.
Sustainability is not something that can be deferred. We took another step forward on this front in 2022:
we now offer our customers climate-neutral access to subscriptions, equipment and our network –
automatically and at no extra charge under the banner ‘Now, not someday’. We offset the production,
transport and use of devices via recognised climate protection projects in Switzerland and abroad.
To help achieve our goal of saving one million tonnes of CO2 per year by 2025 in cooperation with our
customers, we offer residential and business customers ICT solutions that massively reduce our carbon foot-
print. For example, our portfolio for business customers includes a carbon accounting platform.
We also contribute to society through our activities to promote media literacy, our support for Ukrainian
war refugees in Switzerland and our efforts to save electricity as part of the energy saving alliance of the
Swiss Confederation.
‘ We are delighted that World
Finance has once again named us
the world’s most sustainable
telecommunications company.
Above all, this spurs us on to
continue down our chosen
path with courage and rigour!’
Innovation stimulates growth
In a global market where new technologies are constantly emerging and customer needs are always
evolving, Swisscom needs to keep its finger on the pulse of innovation. To safeguard our company’s
long-term success, we work closely with the pacesetters of digitisation, be they universities, start-ups or
established technology companies.
For example, Swisscom agreed a strategic collaboration in the cloud space with Amazon Web Services in 2022.
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A highlight of our innovation efforts was the successful field test using the latest generation of fibre-
optic technology carried out in 2022, in which we were the first in the world to achieve a maximum data
transmission speed of 50 Gbps. More important, however, are the reduced latency and stable band-
widths.
It is through innovations like this that we strive for growth – primarily in our core business, in the IT market
and in new areas of business.
‘ Independent tests once again
proved in 2022 that our networks
and customer service are among
the best in Switzerland. This shows
that our employees give their
best every day, for which I thank
them from the bottom of my heart.’
Shareholder return and outlook
Swisscom’s share price fell by 1.6% to CHF 506.60 during the year under review. The Swisscom stock
outperformed the European telecommunications sector index.
Swisscom expects net revenue of between CHF 11.1 and 11.2 billion, EBITDA of between CHF 4.6 and
4.7 billion and capital expenditure of around CHF 2.3 billion (around CHF 1.7 billion of which will be in
Switzerland) for 2023. Subject to achieving its targets, Swisscom plans to propose payment of an
unchanged dividend of CHF 22 per share for the 2023 financial year at the 2024 Annual General Meeting.
Many thanks
The highly challenging environment demanded a lot from our employees, who once again proved that they
are eager to deliver the best for our customers, day in and day out. We are very grateful to them for this.
We would also like to thank you, our valued shareholders, for the trust and confidence you have placed in
us. We have set ourselves ambitious goals to be achieved by 2025 and want to embark on a successful
future with you.
Kind regards
Michael Rechsteiner
Chairman of the Board of Directors
Swisscom Ltd
Christoph Aeschlimann
CEO Swisscom Ltd
9
Management
Commentary
Strategy and environment _______ Financial targets and achievement of targets in 2022 . . 12
General conditions and market environment . . . . . . . . 12
Swisscom Group Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Strategy for Switzerland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Strategy in Italy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Infrastructure _________________ Infrastructure in Switzerland . . . . . . . . . . . . . . . . . . . . . . . . 24
Infrastructure in Italy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Employees ___________________ Employees in Switzerland . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Employees in Italy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Brands, products and services _____ Swisscom brands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Products and services in Switzerland . . . . . . . . . . . . . . . . 35
Products and services in Italy . . . . . . . . . . . . . . . . . . . . . . . . 38
Customer satisfaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Innovation and development _____ Innovation as a key driver of business performance . . 39
Innovation focused on specific topics . . . . . . . . . . . . . . . . 40
Financial review _______________ Alternative performance measures . . . . . . . . . . . . . . . . . . 42
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Segment results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Depreciation and amortisation, non-
operating results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Capital expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Net asset position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Statement of added value . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Financial outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Capital market ________________ Swisscom share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Dividend policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Credit ratings and financing . . . . . . . . . . . . . . . . . . . . . . . . . 56
Value-oriented business management . . . . . . . . . . . . . . . 57
Risks ________________________ Risk situation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Risk factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
11
Strategy and
environment
Telecommunications market
Number 1
Swisscom is number 1 in Switzer-
land.
Net revenue
CHF 11.1 billion
in revenue was generated by
Swisscom in 2022, 78% of which
in Switzerland and 22% in Italy.
Responsibility
Climate-neutral
Swisscom aims to become climate-
neutral across its entire value chain
by 2025.
Financial targets and achievement of targets in 2022
Targets 2022
Achievement of targets in 2022
Financial targets
Net revenue 1
Operating income before depreciation
and amortisation (EBITDA)
Capital expenditure
Net revenue for the year 2022
of around CHF 11 .1 billion
EBITDA for the year 2022
of around CHF 4 .4 billion
Capital expenditure for the year 2022
of around CHF 2 .3 billion
Operational Excellence
Reduction of cost base 2022 in the Swiss telecommunications business
by CHF 100 million
CHF 11,112 million
CHF 4,406 million
CHF 2,309 million
CHF 104 million
1 As already communicated during the course of 2022, the financial 2022 financial
targets have been adjusted as follows as a result of the strong Swiss franc: net
revenue from CHF 11.1–11.2 billion to around CHF 11.1 billion.
General conditions and
market environment
Swisscom operates in a dynamic environment. Changes
continue to occur at a swift pace. Megatrends such as
demographic change, new working models and the
growing importance of ecological and social sustainability
are shaping and altering society and the economy and
also impact the activities of Swisscom. By the same
token, technology trends such as the expansion of ultra-
fast broadband, the increasing penetration of cloud
computing and advances made in the field of artificial
intelligence also influence Swisscom’s business in the
short to medium term. Swisscom’s economic environ-
ment is currently characterised by global uncertainties.
Causes include the supply chain bottlenecks, rising infla-
tion and heightened geopolitical risks such as trade rela-
tions between the US and China or the war in Ukraine.
Digitisation is taking hold of more and more areas of our
lives, and customer behaviour is undergoing a lasting
change, as indicated by, among other things, the
increased use of online channels for shopping and making
contact as well as the rise of contactless payment.
Customers’ expectations regarding customer-centric
offerings, high-performance and stable networks, a
seamless and personalised customer experience and
transparent sustainability efforts will continue to rise.
Digitisation is leading to new, rapidly developing busi-
ness models. Swisscom’s core business is characterised
by competition with strong price pressure. Another
slight contraction was observed in the overall market for
connectivity services in Switzerland and Italy. By con-
trast, the market for IT services in Switzerland continues
to grow moderately.
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Market environment
Macroeconomic factors such as the economy, interest
rates and exchange rates can have a significant impact
on Swisscom’s net assets, financial position, results of
operations and financial reporting.
Change GDP Switzerland
Change GDP Italy
Inflation rate Switzerland
Inflation rate Italy
Yield on government bonds (10 years)
Closing rate CHF/EUR
Closing rate CHF/USD
1 Forecast SECO.
Economy
In the 2022 reporting year, economic development was
dominated by global delivery problems and an increase in
inflation. This was mainly due to the rise in energy prices
(electricity, oil and natural gas). Swisscom’s energy costs
amounted to CHF 152 million in 2022 (previous year:
CHF 120 million) and mainly included electricity costs.
Interest rates
The interest rate level has an impact on funding costs
and, in the consolidated financial statements, the balance
sheet value of individual items such as non-current provi-
sions and pension obligations, as well as the impairment
assessment of goodwill. Short- and long-term interest
rates rose significantly in 2022. Swisscom’s average
interest expense (excluding leasing) amounts to 1.05%
at the end of 2022. The financing structure with a 82%
share of fixed-interest financial debt offers considerable
protection against further interest rate increases.
Exchange rates
Currency effects impact the consolidated financial state-
ments both through transactions made in foreign cur-
rencies and the translation of foreign subsidiaries. Trans-
action risks mainly relate to the purchase of terminals,
technical equipment, licences, and services. In the Swiss
core business, the amount of money paid out in foreign
currencies is higher than the income in the correspond-
ing currencies. The largest net transaction risk is in the
US dollar (USD). The transaction risks are partly hedged
by foreign currency forward contracts, and hedge
accounting is applied in the consolidated financial state-
ments. Among the foreign subsidiaries, a currency trans-
lation risk primarily exists at Fastweb, whose net assets
amounted to EUR 3.4 billion at the end of 2022. Currency
translation differences are recognised directly in equity.
A portion of the financial liabilities in EUR is classified as
a currency hedge of Fastweb’s net assets.
Unit
in %
in %
in %
in %
in %
in CHF
in CHF
2018
2019
2020
2021
2022
2 .8
0 .1
0 .7
1 .1
(0 .24)
1 .13
0 .99
0 .9
0 .2
0 .2
0 .5
(0 .46)
1 .09
0 .97
(2 .5)
(9 .6)
(0 .8)
(0 .2)
(0 .53)
1 .08
0 .88
3 .5
6 .3
1 .5
3 .9
(0 .13)
1 .03
0 .91
2 .0
1
3 .9
2
2 .8
11 .6
1 .57
0 .99
0 .92
2 Forecast Istat.
Legal environment
Swisscom’s legal framework
Swisscom is a public limited company with special status
under Swiss law. Corporate governance is governed by
company law and, in particular, the Telecommunications
Enterprise Act (TEA). As a listed company, Swisscom is
also subject to capital market law.
The legal framework for Swisscom’s business activities is
formed by the decrees listed below with their relevant
regulatory provisions and requirements, which Swisscom
adheres to by taking precautionary measures to ensure
compliance.
According to the TEA, the
Swiss Confederation must hold
a majority of the capital and
voting rights in Swisscom .
Telecommunications Enterprise Act (TEA) and
relationship with the Swiss Confederation
The Telecommunications Enterprise Act requires the Swiss
Confederation to hold a majority of the capital and voting
rights in Swisscom. Were the government to dispose of
the majority holding, this would require a change in the
corresponding law, which would be subject to a facultative
referendum. Every four years, the Federal Council
defines the goals which the Confederation as principal
shareholder aims to achieve. The current target period
for the years 2022 to 2025 includes strategic, financial
and human resources policy objectives as well as targets
relating to partnerships and investments. The Federal
Council also expects Swisscom to pursue a corporate
strategy that is, to the extent economically possible,
both sustainable and committed to ethical principles
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while also attaching special importance to the reduction
of greenhouse gas emissions.
N See www.swisscom.ch/ziele_2022-2025
Telecommunications Act (TCA)
The Telecommunications Act and the associated ordi-
nances primarily regulate network access, international
roaming, the open Internet, basic service provision, the
use of radio frequencies, and the security of installations
and operations.
N See www.admin.ch
Network access
Cost-based network access regulation is limited to fixed-
link telephony and copper-based connections with the
associated services. Access to fibre-optic lines is granted
on the basis of commercial agreements.
Basic service provision
The Federal Communications Commission (ComCom)
awarded Swisscom the universal service licence until
2022 and, in 2021, subsequently extended it until 2023.
The basic service provision mandate includes fixed-net-
work telephony and broadband Internet access with
transmission rates of at least 10 Mbps (downloads) and
1 Mbps (uploads). From 2024 onward, basic service pro-
vision will include a new transmission rate of 80 Mbps.
Swisscom pursues an open
Internet policy
Open Internet
Swisscom pursues an open Internet policy. It is convinced
of its customers’ desire to be able to freely choose con-
tent and offerings on the Internet. Within the scope of
its network management activities, it provides all web
content and services in the same high quality wherever
possible. The blocking or removal of web content and
services occurs solely in compliance with official orders
or to ensure network security. Swisscom does not have
any zero-rated offers that exclude access to selected
web services from the data volume.
Non-ionising radiation (NIR)
The Ordinance on Non-Ionising Radiation (ONIR) regu-
lates immissions and thus the transmission power of
mobile antennas. Swiss precautionary values as defined
by the Environmental Protection Act (installation limit
value) are stricter than the exposure limit values recom-
mended by the WHO. Additional antennas are required
to cope with increasing volumes of data transmitted
over the network and to guarantee the reliability of
mobile connections.
Since 2022, the ordinance (ONIR) regulates the opera-
tion of adaptive antennas that apply a correction factor.
This allows operators to take full advantage of this gen-
eration of antennas with their increased capacity and
range. At the same time, adaptive antennas have the
advantage of reducing the exposure to people in the
vicinity of the antenna installation.
In March 2022, the Conference of Building, Planning and
Environment Directors (BPUK) published new recom-
mendations for mobile communications. These recom-
mendations regulate the cases in which building per-
mits for mobile communication antennas are granted
using a simplified procedure. They provide for two
options: Option 1 primarily covers the replacement of a
conventional antenna with another conventional
antenna, meaning it only permits maintenance as part
of a minor modification procedure. Option 2, on the
other hand, allows a conventional antenna to be
replaced by an adaptive antenna, thereby making it pos-
sible to modernise the mobile network by means of a
minor modification procedure. This is important in part
because, under the conventional procedure, it often
takes years for building applications to be approved and
once they have been, the type of antenna originally
entered might no longer be available. So far, just under
half of the cantons have come out in favour of Option 2.
One question remains unanswered, namely how adjust-
ments made to antennas that do not have any impact on
immissions can be regulated in a legally binding manner.
To that end, the Federal Office for the Environment has
started preparations for a revision of the ONIR, which
could at best enter into force at the beginning of 2025.
Since operational adjustments have to be made to
mobile communications systems approximately every
18 months, a timely regulation of the matter is essential.
Federal Cartel Act (CartA)
Competition law (Federal Cartel Act) is highly relevant to
various Swisscom products and services, primarily due
to Swisscom’s prominent market position. It allows for
direct sanctions to be imposed for unlawful conduct by
market-dominant companies. Swisscom has established
various compliance measures and processes to prevent
violations of the law. With regard to its compliance-re-
lated measures, Swisscom pursues a zero-tolerance
strategy. The Swiss competition authority (Competition
Commission, COMCO) has classified Swisscom as being
market-dominant in a wide range of submarkets. There
are currently several proceedings open within the con-
text of which COMCO has classified Swisscom as being
market-dominant and its conduct as being unlawful,
and has thus imposed or may impose direct financial
sanctions. The proceedings relate to the rolling out of
the fibre-optic network, the broadcast of live sporting
events on pay TV, broadband connections of post office
locations as well as the broadband connections of both
business customers and directory services. The status of
the respective proceedings as well as the potential
financial effects are set out in the notes to the consoli-
dated financial statements.
D See report page 145
The Federal Copyright Act (CopA)
Swiss copyright law protects the rights of creators of
works while also facilitating the fair use of works subject
to copyright, which may generally be used only with the
copyright holder’s consent and in return for a considera-
tion. An exception to this rule is made for private use and
for copying for private use. The compensation payable to
the copyright holder for certain types of use protected
by copyright law (collective management of rights) is
determined by reference to collectively negotiated copy-
right tariffs. These apply to the distribution of television
programmes and to the use of time-delayed television
viewing (Replay TV).
The Federal Radio and Television Act (FRTA)
Switzerland’s Radio and Television Act governs the pro-
duction, presentation, transmission and reception of
radio and television programmes. It is primarily on
account of blue TV that Swisscom is affected by the rules
on the transmission and broadcasting of media offer-
ings. The various privileges (known as the ‘must carry’
provisions) applicable to certain broadcasters are rele-
vant to Swisscom.
Federal Act on Data Protection (FADP)
The Swiss Federal Act on Data Protection regulates the
treatment of personal data. After several years of pre-
paratory work, Parliament adopted the revised version
of the Federal Act on Data Protection in 2020. The
revised act enters into effect on 1 September 2023
The European Union’s General Data Protection
Regulation (GDPR)
The General Data Protection Regulation regulates the
processing of personal data. The GDPR is relevant to
Swisscom both as regards its service offering to residential
customers in the EU as well as within the European Eco-
nomic Area (EEA) and its provision of IT services to busi-
ness customers directly subject to the GDPR. The actions
required to comply with the GDPR’s requirements, in so
far as it impacts Swisscom’s operations, were taken by
Swisscom within the specified time period.
Legal and regulatory environment in Italy
The legal framework for Fastweb’s business activities is
determined primarily by Italy’s telecommunications
legislation and the EU. In July 2021, an EU Commission
ordinance entered into force that sets uniform limits on
fixed and mobile termination charges for voice services
within the EU.
Data protection and confidentiality
Swisscom attaches great importance to the legally com-
pliant and responsible processing of personal data and
confidential information. Swisscom operates a manage-
ment system for data protection and confidentiality
that applies internationally recognised standards and
norms. It also maintains a data ethics framework that
clarifies ethical issues connected to the processing of
data or the use of new technologies.
Swisscom complied with the legal
provisions related to customer data
and confidentiality in 2022 .
In view of the new Federal Act on Data Protection,
Swisscom is reviewing existing personal data protection
measures to ensure that they comply with the new
requirements. It will make any adjustments necessary.
Swisscom processes personal data, in part to provide
customers with individualised, targeted advertising and
offers that are even better tailored to their needs.
Swisscom creates customer segments or customer pro-
files to that end. It also makes customers’ personal data
available to advertising marketing companies in aggre-
gated form for the purpose of target group-based adver-
tising. Customers may object to the receipt of advertis-
ing and the processing of their personal data for
marketing and advertising purposes. Swisscom has
implemented technical and organisational measures in
order to comply with applicable legal provisions.
Swisscom complied with the legal provisions related to
customer data and confidentiality in the year under
review. Swisscom complies with its legal obligations
with regard to the Surveillance of Postal and Telecom-
munications Traffic.
N See www.swisscom.ch/dataprotection
Swiss market trends in telecoms and
IT services
The Swiss telecommunications market is characterised
by a wide range of products and services for data and
voice communications. In addition to the established
regional and national telecommunications companies,
internationally active companies are entering the Swiss
telecommunications market, offering both free and
paid-for Internet-based services around the world,
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including telephony, messaging and streaming services.
Competitive pressure remains high. A previously supra-
regional Swiss company announced in the second half of
2022 that, going forward, it intends to operate nation-
wide as a full-service provider of mobile, Internet, TV,
and fixed-network services. All major Swiss full-service
providers have also adjusted their product portfolios
over the course of 2022. Swisscom has driven the digiti-
sation of its offerings through its new blue product port-
folio and brought all its previous subscriptions and ser-
vices together under a single roof. Swisscom customers
now manage and individually customise their various
products via the My Swisscom app. A digital assistant
named Sam provides support on any questions that
arise. Overall, demand for high bandwidths that enable
fast, quality access to data and applications is growing
constantly. The uninterrupted availability of data and
services as well as the security involved in ensuring this
availability are pivotal, with modern, highly effective
network infrastructures providing the foundations.
Swisscom continuously invests in the quality, coverage
and performance of its network infrastructure, thereby
consolidating its position at the cutting edge of
technology. In the year under review, the Swisscom net-
work once again earned top rankings in independent
network tests.
Swisscom continuously invests in
the quality, coverage and performance
of its network infrastructure .
The Swiss telecoms market is broken down into the sub-
markets of relevance to Swisscom: mobile communica-
tions and fixed network. It generates total revenue esti-
mated at CHF 11 billion. Price pressure will remain high
in all markets, and Swisscom therefore expects revenue
to decline slightly in the telecommunications market in
the medium term. Saturation in all markets is intensify-
ing the cut-throat competition. The individual submar-
kets are characterised by a high level of promotional
activity on the part of the individual market participants
and corresponding price pressure. At the heart of the
portfolio of offerings are convergence offerings which
can contain one or more mobile lines, in addition to a
fixed broadband connection with Internet, TV and fixed-
line telephony. Swisscom – as well as some competitors
– offers products and services from the core business
using secondary and third-party brands.
Market share Swisscom
Swiss telecommunications market
56%
55%
50% 50%
37%
39%
2021
2022
2021
2022
2021
2022
Mobile
Broadband retail
TV
Mobile communications market
Switzerland has three separate, wide-area mobile net-
works on which the operators of those networks market
their own products and services. Other market players
also offer their own mobile services as MVNOs (mobile
virtual network operators) on these networks. Swisscom
makes its mobile communications network available to
selected third-party providers so that they can offer pro-
prietary products and services to their customers via the
Swisscom network. The number of mobile lines (SIM
cards) has increased by 2% within the year and stands at
11 million. Mobile access line penetration in Switzerland
is estimated at 129%. As in the previous year, the num-
ber of postpaid subscriptions taken out increased, while
the number of prepaid customers fell. The proportion of
mobile users with postpaid subscriptions stands at 83%
(prior year: 81%). Swisscom’s postpaid market share is
55%. This represents a decrease of one percentage point
compared to the previous year, which is due to the con-
tinuing competitive pressure.
Fixed-line market
Close to 100% of Switzerland is covered by fixed broad-
band networks. Alongside the fixed-line networks of tel-
ecoms companies, there are also networks provided by
cable network operators. Moreover, market players such
as utilities operating in particular cities and municipali-
ties are building and operating fibre-optic networks on
their own initiative at a regional level. For the most part,
their network infrastructures are available to other mar-
ket participants for product offerings and the provision
of services. Broadband connections lay the basis for a
rich product offering from both national and global
competitors. Swisscom
is building state-of-the-art
fibre-optic networks, partly in cooperation with other
companies, based on the principle of open networks.
Due to COMCO’s investigation into network expansion,
Swisscom is now largely relying on point-to-point archi-
tecture for its expansion.
Broadband market
The most widespread access technologies for fixed
broadband connections in Switzerland are infrastruc-
tures based on the networks of telecommunications
providers and cable network operators. The broadband
market grew by around 2% year over year. There were
around 4 million retail broadband access lines in Swit-
zerland at the end of 2022. Swisscom’s market share
remains stable year-on-year at 50%.
TV market
In Switzerland, TV signals are transmitted via cable,
broadband, satellite and mobile. The large majority of
TV connections is provided via cable or broadband net-
works. The Swiss TV market features a diverse range of
offerings from established national market participants.
Offerings from other national and international compa-
nies are also available on the market, including TV and
streaming services that can be used over an existing
broadband connection, regardless of the Internet pro-
vider. The competitive dynamics in the saturated TV
market remain high, driven by the large number of dif-
ferent offerings. Swisscom defended its market share
against the competition in 2022 and remains the market
leader with a market share of 39%.
Swisscom is the leader in the
TV market with a share of 39% .
Fixed-line telephony market
Fixed-line telephony is mainly based on lines running
over the fixed networks of the telecoms service provid-
ers and the cable networks. As fixed-line telephony con-
tinues to be replaced by mobile communications and
Internet-based services, its use is steadily declining.
IT services market in Switzerland
In 2022, the IT services market (IT services and software)
generated revenue of just under CHF 20 billion. This rep-
resented a continuation of the market’s prior-year
growth trend on the heels of a slight contraction in
2020. For the coming years, Swisscom assumes that the
market will continue to grow slightly due to increasing
digitisation. The areas in which Swisscom expects the
most growth are the cloud, workspace & collaboration,
security, the Internet of Things (IoT) and business appli-
cations. This growth is a result of the increasing number
of business-driven ICT projects as well as the rising
demand for digital business models and new working
models. Swisscom has noticed companies’ growing will-
ingness to procure more external services in order to
cope with a high level of complexity as well as the accel-
erating transformation into a hybrid cloud. Further
growth drivers are the increasing threats in the area of IT
security as well as system solutions in the area of IoT.
Here, customers generally expect services customised to
their individual sector and business processes with
appropriate advice.
In a fiercely competitive, changing market environment,
Swisscom increased its revenue slightly year-on-year
and held on to its market position. This was mainly due
to positive trends in the growth areas of security, cloud
and business applications. Market revenues increased in
each of those areas, although certain revenues shifted
to the big global cloud providers (hyperscalers).
17
Italian market trends in telecoms services
Italian broadband market
Generating revenue of around EUR 15 billion including
wholesale, Italy is the fourth-largest fixed-line market in
Europe. The broadband market for homes and busi-
nesses has grown steadily in past years. It comprises
some 18 million access lines operated by the four major
competitors (Fastweb, TIM, Vodafone, WindTre), two
new market players (Iliad, Sky) and other smaller providers.
Fastweb is one of the largest fixed-network broadband
providers with unchanged market shares of 16% in the
residential customer segment and 34% in the business
customer segment.
Swisscom Group Goals
In order to ensure its long-term success in a dynamic
environment, Swisscom has defined five Group targets
(‘Swisscom Group Goals 2025’). The Group Goals apply
to all Group companies. Swisscom has enshrined one
common denominator: its new purpose of ‘Empowering
the Digital Future’. Swisscom also defined its Vision 2030
for the long-term orientation of the Group during the
year under review: ‘Innovators of Trust: The most trusted
Swiss tech innovator creating unique customer experi-
ences with positive impact for society.’ Innovative
strength and trust are core values of Swisscom and cen-
tral to successful technological and social development.
Swisscom is already addressing relevant and promising
future topics.
Swisscom has set itself the goal of consolidating its posi-
tion even further, both as a market leader in Switzerland
and as a key provider in the market for IT services, and
therefore living up to its status as ‘No. 1 in Switzerland’.
Swisscom Group goals 2025
Italian mobile communications market
The Italian mobile communications market has a volume
of around 107 million SIM cards and generates revenue
of just under EUR 13 billion. Competitive and price pres-
sure are considerable and have intensified even further
following the market entry of Iliad and the launch of
mobile communications providers’ secondary brands.
Fastweb’s mobile customer base rose by 25% year-on-
year to around 3.1 million customers in 2022. It has a
market share of 4% (prior year 3%).
Swisscom’s infrastructure forms Switzerland’s digital
backbone and sets itself apart by offering the best cus-
tomer experience.
Swisscom’s Fastweb subsidiary is a leading alternative
provider for residential and business customers in Italy. Its
goal is to be the ‘Leading challenger in Italy’. Fastweb con-
tinues to expand its own convergent ultra-broadband
network through ongoing investments. The best cus-
tomer experience it provides is based on impressive qual-
ity of service and on offers that are characterised by trans-
parency, fairness and simplicity. Fastweb contributes
significantly to Swisscom’s growth.
As Swisscom is characterised by enormous stability, it
lives up to its goal of having ‘rock-solid financials’. Safe-
guarding profitability and cash flow is essential to its
ability to continue distributing an attractive dividend.
No. 1
in Switzerland
Leading
Challenger in Italy
Rock-solid
Financials
Committed to
Corporate
Responsibility
Outstanding
in Innovation
& Reliability
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Swisscom is committed to fulfilling its corporate respon-
sibility towards society. This responsibility is gaining
importance in the eyes of shareholders, the capital mar-
ket and customers. As a trustworthy company, Swisscom
is focused on sustainability and pursues the goal of being
‘committed to corporate responsibility’. This is expressed
by the Group’s climate-neutral value chain, a positive car-
bon footprint and a portfolio of sustainability services in
the Swiss business, among other things. Swisscom
aspires to be climate-neutral along its entire value chain
by 2025. It also promotes diversity and inclusion within
its own company. Diversity stands for a balanced mix of
generations, gender equality and variety in terms of lan-
guage and origin. Inclusion refers to the targeted integra-
tion of employees with physical or psychological impair-
ments as well as the integration of refugees.
N See www.swisscom.ch/cr-report2022
As a leading digital company, Swisscom launches inno-
vative products and services based on resilient, secure
networks and that meet up to the goal of being ‘out-
standing in innovation & reliability’. It develops growth
areas in its Digital Business division, such as trust ser-
vices, in a targeted manner.
Strategy for Switzerland
Swisscom is a market, technology and innovation leader
in Switzerland with high quality standards, connecting
both residential and corporate customers. It is at the
heart of digitisation and enables its customers to seize
the opportunities presented by the networked world
without difficulty. In everything it does, Swisscom
focuses on people’s needs. Its employees work in con-
cert to provide inspirational customer experiences.
Swisscom is committed and trustworthy in its actions,
consistently seeks to learn new things and develop and
systematically pursues its goals. What matters most to
Swisscom is its customers’ trust in it. That trust is
strengthened by Swisscom’s reliability and sustainabil-
ity in everything it undertakes. In order to safeguard its
market position in the long term, Swisscom has set out
three strategic aspirations:
Best infrastructure
Digital leader
Best service
Highly simplified IT
and simplified network
Best
customer
experience
Operational
excellence
Best products
Smart investments
Growth
Maximisation of core business
Focused growth
in new areas of business
Growth in IT market
Strategic aspirations of Swisscom
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Best customer experience
Swisscom wants to inspire its customers by providing
them with the best service at all times, regardless of their
location. Since the customer experience is based on a
high-performance infrastructure, Swisscom offers its
customers the latest IT and communications infrastruc-
ture and develops these on an ongoing basis. Customer
requirements for networks are constantly growing. As a
result, Swisscom sets up and operates high-perfor-
mance networks that are top-notch in terms of security,
availability and coverage. In the year under review, the
Swisscom network once again dominated numerous
tests conducted by leading technical journals. Swisscom
sets itself ambitious goals for the expansion of its
fibre-optic network. By the end of 2025, for example,
fibre-optic coverage in homes and businesses will
increase to between 50 and 55%.
Swisscom is pushing ahead with the expansion of 5G.
Some portions of the population still have concerns
about and are resistant to the expansion of 5G; addition-
ally, Switzerland’s strict legal limits mean that networks’
full capacity cannot be exploited. That hinders efforts to
create urgently needed capacity on the mobile network.
By the end of 2025, fibre-optic
coverage in homes and businesses
(FTTH – Fibre to the Home) is
expected to increase to between
50 and 55% .
Cloud services produced in Switzerland form the central
cornerstone of the cloud offering and are supplemented
by global public cloud solutions (including Amazon Web
Services or Microsoft Azure, for example). Swisscom acts
as an independent service provider that offers hybrid
and multi-cloud solutions to provide customers with the
support they need for their digital transformation.
The relationship with customers is at the heart of
Swisscom’s success. Swisscom’s top priorities are provid-
ing the best service and inspirational experiences across
the board. Swisscom provides customers with expert guid-
ance and they get flexible, personalised on-site service and
enjoy a simple user experience across all online offerings.
Swisscom is also streamlining its offering and provides
relevant, advanced products.
The launch of the new blue product portfolio for resi-
dential customers has enabled Swisscom to push ahead
with the digitisation of its offerings. With it, customers
can conveniently adjust their subscriptions via the My
Swisscom app or book additional offers directly. Support
is provided by a digital assistant named Sam. These
offerings are geared specifically toward the needs of the
digital native generation. In addition to its main brand,
Swisscom offers second- and third-party brands to
address more digitally savvy or price-sensitive target
groups.
Swisscom provides small and medium-sized enterprises
(SMEs) with in-depth, personal, local support thanks to a
nationwide network of SME specialists and certified
partners. As part of this, Swisscom provides SMEs with
complete Smart ICT solutions for outsourcing IT. Both
standardised products and customised customer solu-
tions are in demand in the business customer segment.
Swisscom offers its business customers an integrated
customer experience from a single source. Swisscom
expands its ICT portfolio on an ongoing basis – such as in
the area of security, through new workplace or UCC
offerings as well as through the further development of
strategic cloud partnerships.
Operational excellence
Competition is putting pressure on revenues in the core
business. Swisscom wants to offset these revenue losses
as much as possible through growth in new areas and
strict cost management. Swisscom wants to optimise its
cost base further over the coming years in order to secure
long-term profitability. This should allow Swisscom to
free up funds for the exploration of new business oppor-
tunities and make the investments necessary to ensure
future success. As a leading digital company, Swisscom’s
internal digital transformation and accompanying
increase in its own level of digitisation are also crucial. To
drive this transformation, Swisscom is expanding process
automation, strengthening its online channel for sales
and consulting and using artificial intelligence and ana-
lytics capabilities, among other things. Simplifying the
company’s own IT and network is also essential. To this
end, Swisscom is modernising and consolidating its IT
platforms, phasing out old technologies, reducing inter-
faces, using agile development methods and standardis-
ing and streamlining its product portfolio. What’s more,
it is making its investment activities even more efficient,
for example through an intelligent mix of technologies,
value-oriented network expansion or even through part-
nerships for network expansion.
New growth
The market for telecommunications in Switzerland is sat-
urated. Swisscom anticipates moderate volume growth,
both in the postpaid segment of mobile communica-
tions as well as in the broadband segment, where it
expects the rising number of homes and businesses in
Switzerland, among other factors, to result in an increase
in the number of subscribers. Price pressure will remain
high in all markets, and Swisscom therefore expects rev-
enue to decline slightly in the telecommunications mar-
ket as a whole. Market experts believe that the market
for IT services, on the other hand, will enjoy moderate
growth over the next few years, driven by increasing dig-
itisation and the related increase in the use of ICT in
numerous industries.
Swisscom is targeting growth in the following three areas
in particular: in its core business, in the IT market and in
new business areas. By developing its core business fur-
ther, it intends to exploit growth opportunities, e.g. in the
Internet of Things (for both residential and business cus-
tomers), in blue Entertainment with advanced val-
ue-added services and in respect of secondary and third-
party brands.
In the IT sector, Swisscom’s focus is on security and
cloud services, vertical IT offerings (e.g. banking) and
applications. It aims to generate growth in new busi-
ness areas through digital services tailored to SMEs
provided by localsearch (Swisscom Directories Ltd) and
trust services. It manages growth areas using clearly
defined success criteria. When selecting growth areas,
it is guided by future customer requirements, focuses
on future-oriented business models offering strong
growth and makes increased use of partnerships.
Swisscom is pooling forces in the new Group Strategy
& Business Development department as of January
2023 in order to improve the efficiency of growth in
new, adjacent business areas and to drive the topic of
innovation across the Group.
‘Level Up’ transformation
In order to achieve the Group goals (‘Swisscom Group
Goals 2025’) in a changing environment and to help
shape the future, Swisscom must break new ground and
adjust its Code of Conduct. With clear targets in the three
dimensions of ‘Performing together’, ‘Thinking digital
first’ and ‘Acting lean & agile’, Swisscom intends to
develop its corporate culture and employees’ skills and,
in keeping with the ‘Level Up’ concept, take them up to
the next level. To that end, Swisscom is committed to
both Group-wide goals and the continuous development
of all employees and teams who take on responsibility
and deliver an impressive performance. Decisions at
Swisscom are always made based on data. In this con-
text, digitisation plays a central role, which is why
Swisscom is systematically digitising its internal business
processes. Likewise, all employees need digital skills to
provide their customers with the best experience and to
offer significant added value through lean, iteratively
developed solutions. To that end, Swisscom promotes
the continuous development of its employees.
‘Performing together’, ‘Thinking
digital first’, and ‘Acting lean & agile’
enable Swisscom to develop its
corporate culture .
Strategy in Italy
Fastweb is an infrastructure-based, alternative telecom-
munications provider for residential, business and whole-
sale customers in Italy. It has its own ultra-broadband
infrastructure and offers fixed network and mobile com-
munications services for residential customers and busi-
ness customers. Fastweb positions itself as a high-quality
provider and pursues a strategy in line with its role as an
infrastructure-based OTT provider. Its network infra-
structure (mobile communications and fixed network)
offers customers connectivity at gigabit speed. Fastweb
continues to expand its own convergent ultra-broadband
network through ongoing investments. In the broadband
market, its good market position is based on its own opti-
cal fibre-based infrastructure. Fastweb also holds a (4.5%)
stake in FiberCop S.p.A., a network company majority
owned by TIM. By acquiring a stake in FiberCop, Fastweb
will benefit from the planned further FTTH roll-out in
Italy. Fastweb additionally relies on the use of fixed wire-
less access (FWA). FWA allows surfing speeds similar to
those offered by fibre to achieve a better customer expe-
rience at lower costs and with less time required for net-
work expansion. The roll-out of the nationwide 5G mobile
network will be enabled by the acquisition of Spektrum
and the partnership with WindTre.
In the residential customer segment, Fastweb relies on a
convergent product portfolio that is transparent, fair
and simple. It intends to offer the best customer experi-
ence by providing a high level of service quality. For busi-
ness customers, it is making strategic expansions to its
portfolio, primarily by employing horizontal solutions
focused on cloud and digital security. Another focus of
Fastweb’s activities is the expansion of its wholesale
offerings – whether in the area of ultra-fast broadband
or with the connection of mobile communications sites
to the fibre-optic network.
In order to improve its brand positioning even further,
Fastweb has additionally incorporated its purpose of ‘Tu
sei futuro’. In doing so, it intends to expand its position-
ing, which had been heavily based on speed and perfor-
mance in the past, to include future topics such as digiti-
sation and sustainability. Swisscom expects Fastweb to
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further expand its market position in the future and to
make a rising value contribution.
Sustainability
Sustainability strategy
Swisscom assumes responsibility towards society and
the environment. As Switzerland’s leading ICT company,
it wants to seize the opportunities of the digital trans-
formation for the prosperity of Switzerland and help
shape the future. To that end, Swisscom promotes peo-
ple’s digital skills, protects the climate, supports fair and
climate-friendly supply chains, and builds and maintains
its reliable, high-performance ICT infrastructure. All
these measures are part of its Sustainability Strategy
and are aligned with the UN’s Global Sustainable Devel-
opment Goals. Swisscom has formulated three strategic
priorities with corresponding objectives to address these
essential fields of activity: ‘Responsibility for people’,
‘Responsibility for the environment’ and ‘Responsibility
in action’. Further information can be found in the separate
Sustainability Report.
N See www.swisscom.ch/cr-report2022
‘Responsibility for people’,
‘Responsibility for the environment’
and ‘Responsibility in action’
express Swisscom’s commitment
to corporate responsibility .
Responsibility for people
Swisscom wants to enable people in Switzerland to make
use of the opportunities presented by a networked world.
By no later than 2025, Swisscom will help two million peo-
ple every year to improve their skills in the digital world.
New educational opportunities for schools, the people,
SMEs and their employees are bringing it closer to this
goal. Its teams in the call centres and shops are available
to answer customers’ questions. Responsibility for people
also stands for the company’s commitment to being a
responsible employer, evidenced by how it trains around
900 apprentices, offers training and development oppor-
tunities to employees, and through the variety of offers
relating to health, language diversity and volunteering.
What’s more, Swisscom is committed to barrier-free
access to all its services.
Responsibility for the environment
As a pioneer in climate protection, Swisscom makes a
contribution to help limit the global temperature
increase to 1.5 °C. In its Swiss business, Swisscom will be
climate-neutral across the entire value chain by 2025. By
then, it aims to avoid 90% of direct emissions (Scope 1
and 2) compared to 1990 as well as 50% of indirect emis-
sions (Scope 3) compared to 2013. To achieve that goal, it
will rely on 100% renewable energy, heat pumps as well
as innovative data centres and is gradually electrifying
its vehicle fleet. Swisscom relies on scientific evidence
using the SBTi (Science Based Targets initiative) method-
ology and the entire Swisscom Group has also made a
commitment to achieving net zero in accordance with
the SBTi. It is also working with its customers to reduce
net CO2 emissions by 1 million tonnes per year by 2025.
This corresponds to around 2% of Switzerland’s green-
house gas emissions. Ultimately, Swisscom wants to
reduce its electrical energy consumption by 30% by 2030
compared to 2020.
Responsibility in actions
As a trustworthy partner, Swisscom is committed to
meeting the highest demands of external stakeholders.
That makes corporate ethics as well as data protection
and security an important part of its sustainability strat-
egy. It provides individuals and businesses nationwide
with reliable ultra-fast broadband. Swisscom uses the
best networks and progressive solutions to create added
value for its customers, employees, shareholders and
suppliers as well as for all of Switzerland. By doing this, it
makes the country more competitive and a better place
to live. Swisscom ensures fair and safe working condi-
tions in the supply chain. It takes a systematic approach
towards ensuring that its supply partners comply with
social and environmental standards. It pays special
attention to monitoring the origin of conflict minerals
and the fight against child labour.
Climate protection and energy efficiency
In a continuously changing legal, regulatory and ecological
environment, Swisscom is continuing along its path
towards greater energy efficiency and climate protection,
making ongoing reductions to its greenhouse gas emission
and raising its sustainability targets. The transition to a
zero-emission company has implications for Swisscom’s
organisation and processes. In return, it offers new sources
of revenue through Swisscom’s portfolio of sustainable
products and services.
The regulatory environment has become more challeng-
ing. In Switzerland, as in Europe, there is a noticeable
trend towards more stringent requirements. Regulatory
efforts are aimed at accelerating the transition to a
zero-emissions economy by 2050 (net zero emissions).
The 2022 reporting year saw Swisscom step its CO2
reduction targets up even further and put them in line
with a reduction path to well below 1.5 °C. It plans to
reach its target of becoming climate-neutral in Switzer-
land by 2025. In 2023 it will also submit a new net zero
target for 2035 at Group level that is compliant with the
revised SBTi standard.
In order to achieve its goals, Swisscom is working primar-
ily on efforts to boost its own energy efficiency. Maxi-
mum energy efficiency is essential for an energy-inten-
sive company like Swisscom. As part of that, it aims to
increase the efficiency of its network, real estate and
mobility infrastructure while refraining from using fossil
fuels. Accordingly, it acts and invests in a targeted man-
ner. The company’s individual activities and impact of
those activities are described in detail in the sustainabil-
ity and climate reports.
The goal of climate neutrality not only requires that
emissions be reduced to an enormous degree, but also
that responsibility be taken for the unavoidable residual
emissions. To that end, Swisscom intends to promote
projects that either avoid CO2 emissions or actively
remove CO2 from the atmosphere and store it. Recent
years have already seen it make reductions to its CO2
emissions in recent years and use high-quality CO2 certif-
icates to offset unavoidable residual emissions. All
Swisscom subscriptions were already climate-neutral in
the year under review as a result. Swisscom will continue
to focus on making further reductions to its own CO2
emissions going forward.
Swisscom offers a range of services that help customers
reduce their own CO2 footprint. These include telecom-
munication services, which significantly reduce travel
and therefore greenhouse gas emissions, as well. These
services proved useful during the Covid-19 pandemic
since they were able to preserve and even increase the
economy’s productivity and competitiveness. One pre-
requisite for their use is comprehensive coverage with
high-speed connectivity. An estimate of the emissions
prevented by Swisscom customers through the use of
sustainable services can be found in Swisscom’s annual
climate report.
N See www.swisscom.ch/climatereport2022
In addition to the transition risks associated with regula-
tory and legal uncertainties, Swisscom must assess the
physical risks arising from climate change. To that end, it
has begun to implement the recommendations of the
Task Force on Climate-related Financial Disclosures
(TCFD).
Swisscom offers a range of services
that help customers reduce their own
CO2 footprint .
Swisscom issued two green bonds in 2020 and 2021 in
accordance with the Green Bond Principles of the Inter-
national Capital Market Association (ICMA). Since 2021,
it has also had credit facilities with costs that are linked
to the ESG objectives (environmental, social and govern-
ance). The portfolio of sustainable services makes a rele-
vant contribution to sales and is expected to grow fur-
ther. Corresponding information can be found in the
sustainability report and in the climate report.
N See www.swisscom.ch/cr-report2022
N See www.swisscom.ch/climatereport2022
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Infrastructure
Investments
CHF 2.3 billion
was invested by Swisscom in 2022,
CHF 1.7 billion of which in Switzerland
and CHF 0.6 billion in Italy.
Optical fibre expansion
50 to 55%
Fastweb
2.3 million
of homes and businesses in Switzer-
land are to be connected directly
with fibre to the home (FTTH) by the
end of 2025.
customers are covered by Fastweb’s
ultrabroadband in Italy – and
the company aims to cover 90%
of homes and businesses by 2025.
Infrastructure in Switzerland
Broadband coverage
Network infrastructure
Swisscom aims to provide its customers with the best
network for both the fixed and mobile networks. To do
this, it relies on a smart combination of different net-
work technologies.
Coverage >80 Mbps
Coverage >200 Mbps
Coverage with 10 Gbps
91%
79%
34%
Leading international position
thanks to constant expansion
International studies regularly confirm that Switzerland
boasts one of the best IT and telecoms infrastructures
worldwide. Rural regions benefit in particular from the
high level of capital expenditure, almost two thirds of
which is financed by Swisscom. According to the Broad-
band Coverage in Europe 2021 study by Omdia/IHS
Markit – commissioned by the EU Commission and Glas-
fasernetz Schweiz – the availability of broadband with at
least 30 Mbps in rural regions of Switzerland is 96%, well
above the EU average of 68%.
The Broadband Network Test Switzerland 2022, con-
ducted by the trade magazine connect, awarded first
place to Swisscom’s fixed network, with it winning in
both the 1 Gbps and 10 Gbps speed classes. Swisscom’s
fixed network was also rated ‘outstanding’ at the same
time. Similarly, Swisscom’s mobile network is one of the
best networks in the world, as confirmed by independ-
ent network tests such as those conducted by the trade
magazines connect and CHIP.
Network expansion
Since the demand for broadband keeps growing on both
the Swiss fixed and mobile networks, Swisscom invests
some CHF 1.7 billion every year to maintain and expand
its IT and infrastructure.
Due to the ongoing proceedings of the Competition Com-
mission, Swisscom cannot market nearly 500,000
fibre-optic connections built using point-to-multipoint
architecture (P2MP) to the home (FTTH) for the time
being. In view of this situation, Swisscom has decided to
create new connections – largely using point-to-point
(P2P) architecture and to convert some existing P2MP
connections to P2P – in order to offer customers the
option of using the fast FTTH connections. The annual
budget for fibre optic investments of CHF 500 to 600 mil-
lion remains unchanged, but the expansion is taking place
somewhat more slowly than originally planned. Only 50
to 55% of the connections can be connected via FTTH by
2025, for example. Swisscom will continue to invest in
FTTH roll-out after 2025 with the intention of expanding
FTTH coverage to 70 to 80% by 2030. At the same time,
Swisscom will continue to modernise its existing net-
work. Bonding technology will be used to combine the
performance of the fixed network with that of the mobile
network in selected regions, for example.
Swisscom is continually increasing its number of antenna
sites. For this, it coordinates site expansions with other
mobile providers wherever feasible, and now shares nearly
a quarter of its approximately 9,800 antenna sites with
them. At the end of 2022, Swisscom had around 6,600
exterior units and 3,700 mobile communication antennas
in buildings. With around 7,500 hotspots in Switzerland, it
is also the country’s leading provider of public wireless local
area networks (WLAN).
The 5G mobile communication standard not only ena-
bles new functions, but also brings a much-needed
reduction in the load on the network, increases capacity
and maintains the accustomed quality of the 4G net-
work. Because of this, and owing to the stringent legal
framework conditions that apply, the mobile network
has to be expanded by the addition of new mobile
telephony sites. Progress continues to be made on
expanding 4G and 5G. Swisscom announced in the
reporting year that it would decommission its 3G tech-
nology, now 20 years old, at the end of 2025 in order to
use the freed-up capacity for more modern and efficient
technologies.
N See www.swisscom.ch/networkcoverage
Swisscom currently covers 99% of the Swiss population
with a basic version of 5G and around 74% with 5G+.
According to the industry association asut, 4.5 million
5G-enabled devices were already in operation in Swit-
zerland by the end of 2022. The 5G expansion will grad-
ually provide the additional capacity that residential and
business customers need. Progress on this is slow due to
concerns and resistance among the population – even
despite the fact that a study commissioned by the FOEN
indicates that 5G radiation only has a moderate impact
on the population as a whole and is not harmful to peo-
ple’s health. In order to improve the level of information
within the population, Swisscom provides information
on its channels and supports the joint information plat-
form CHANCE 5G established by the industry associa-
tion asut.
N See www.chance5g.ch
The Internet of Things (IoT)
International cloud providers have become more inter-
ested in the IoT market, which has given new impetus to
the integration and scaling of IoT. Thanks to strong part-
nerships, Swisscom is already the leading provider of IoT
system solutions required for cloud and analytics imple-
mentations and their operation. ‘Data as a Service’
rounds off Swisscom’s portfolio and, thanks to plug-and-
play, makes it even easier for many customers to enter
the IoT.
Mobile frequencies
Transmission of mobile signals requires the availability
of suitable frequencies. In Switzerland, such frequencies
are allocated on a technology-neutral basis, i.e. any
mobile communications technology can be transmitted
on the available frequencies. In 2012, the Federal Com-
munications Commission (ComCom) allocated the fre-
quencies 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz and
2,600 MHz. Swisscom currently uses these frequencies
to offer its customers services via the 4G and 3G mobile
communications technologies. In February 2019, further
mobile radio frequencies – 700 MHz, 1,400 MHz, 2,600
MHz and 3,500 MHz – were allocated in Switzerland, pri-
marily for transmission via 5G. Swisscom currently uses
these frequencies to offer its customers services via the
5G, 4G and 3G mobile communication technologies. It
always does this within the legal limits, which in Swit-
zerland are ten times stricter than those recommended
by the World Health Organization in sensitive areas such
as homes, schools, hospitals and permanent workplaces.
IT infrastructure and platforms
Swisscom operates six major data centres in Switzer-
land. The IT infrastructure comprises over 80,000 virtual
machines and around 6,000 servers. The central tele-
communications functions for the operation of the fixed
and mobile networks converge in four of the six data
centres. Swisscom largely relies on virtualisation and
containerisation of these network functions to enable
efficient and resilient operations.
Likewise, Swisscom use four data centres (two of the six
data centres have a dual function) for running IT applica-
tions. These include all business applications in connec-
tion with Swisscom services. The entire infrastructure is
designed for redundant operation and high availability.
Swisscom attaches the very highest priority to both sta-
bility and resilience, and reviews and improves them on
an ongoing basis. Since the quality and security culture is
a central aspect of Swisscom, the company takes every
possible precaution to reduce the likelihood that major
disruptions will occur. Swisscom positions itself as a reli-
able IT partner with a broad range of services. On the
basis of an extended cloud strategy, it is expanding its
cloud offering with hybrid ICT services. These services
support Swisscom customers in setting up hybrid and
multi-cloud environments and operating them effi-
ciently. Swisscom responds quickly and individually to
the numerous needs of its customers using a flexible
system of modular services. As part of its strategy, it is
strengthening its partnerships with the major public
cloud providers such as Amazon Web Services and
Microsoft Azure. In addition to its extensive public cloud
service offering for business customers, Swisscom will
be relying on Amazon Web Services to operate a growing
number of internal applications over the next few years.
Swisscom uses its cloud platforms to provide both inter-
nal and external communication services. It operates
these platforms in its own geographically redundant
data centres, which thus enables efficient, automated
use and improves the customer experience in a targeted
manner. Swisscom is continuously expanding its con-
nectivity offering with an advanced software-defined
Wide Area Network (SD-WAN), Managed Security and
Managed LAN, while paying special attention to the
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combination of modern and established services. State-
of-the-art approaches such as a secure access service
edge (SASE) and zero trust network access (ZTNA) are
being used with growing frequency. The constant state
of change on the market backs up Swisscom’s efforts to
use the latest technologies both internally and exter-
nally for the benefit of its customers. Instead of develop-
ing its own infrastructure, Swisscom is increasingly mak-
ing use of the standardised systems created by its
partners. The focus on the development of market-spe-
cific, value-adding services based on established infra-
structure has proven sound.
The industrialisation of IT continues to make headway,
as does the development of modern applications that
benefit from the opportunities offered by the platforms,
cut costs and ensure maximum stability. Here Swisscom
is establishing its role in the digital transformation
through specific services such as the ‘Journey to the
Cloud’ portfolio. By combining different generations of
technology to meet its needs, Swisscom is building upon
its experience and expertise to provide the best possible
support to its customers as they make their way into the
digital world.
Infrastructure in Italy
Network infrastructure
In Italy, government subsidies have accelerated the roll-
out of optical fibre even further. The ‘Italia 1Gbps’ plan,
for example, aims to provide gigabit-level coverage for
all of Italy by 2026. Fastweb has always played an impor-
tant role in the development of ultra-broadband (UBB)
infrastructures. Accordingly, it has invested in its own
infrastructure and holds a 4.5% stake in FiberCop. Fast-
web’s goal is to use FTTx (Fiber to the Home/Street) and
5G FWA (Fixed Wireless Access) to provide UBB to 90% of
homes and businesses by 2025. By the end of 2022,
8.3 million homes and businesses will benefit from UBB
coverage with FTTx from Fastweb. On top of that, the
roll-out of 5G FWA enables Fastweb to reach a total of
4.5 million homes and businesses in collaboration with
Linkem.
IT infrastructure
Fastweb currently uses five large data centres, four in the
Milan area and one in Rome. Two of the data centres are
owned by a technology partner that manages and devel-
ops the data centre and handles all operational tasks con-
nected to Fastweb’s IT infrastructure. 2022 saw Fastweb
open a new data centre in Milan that is operated by a
technology partner as part of a whitespace solution.
Fastweb mainly uses two other data centres for the
business customer segment, including for housing, cloud
services and other ICT-managed services. The fifth is
specifically dedicated to internal operations.
Capital expenditure
in CHF million
2,404
2,438
2,229
2,286
2,309
1,645
1,770
1,596
1,634
1,688
759
668
633
652
621
2018
2019
2020
2021
2022
Switzerland
Other countries
Making learning more
innovative than ever before
Making learning more
innovative than ever before
Swisscom offers an individual apprenticeship model
with new vocational training and innovative approaches
to applications and training.
Employees
Employees
19,157
Part-time
21%
Women
24%
employees (FTEs) work at Swisscom,
15,750 (82%) of which in Switzerland
and 3,039 (16%) in Italy.
employees work part-time
at Swisscom.
of the company’s workforce
is comprised of women; the figure
for management is 14%.
Swisscom plays a pioneering role in flexible working
throughout Switzerland and is expanding the availabil-
ity of this type of working model. Employees appreciate
the flexibility it offers, not having to commute to work
and a better work-life balance just as much as they enjoy
regular face-to-face meetings in the office – in part to
cultivate informal exchanges of information.
Collective Employment Agreement (CEA)
Swisscom is committed to fostering constructive dia-
logue with its social partners – syndicom and transfair
– as well as the employee associations that are granted
rights of co-determination of varying degrees. The Col-
lective Employment Agreement (CEA) and the social
plan are negotiated by Swisscom Ltd and its social part-
ners and applicable to Swisscom Ltd’s employees. Sub-
sidiaries adopt the CEA, possibly with adaptations for
specific sectors or lines of business, by means of an affil-
iation agreement. The subsidiaries cablex Ltd and
Swisscom Directories Ltd (localsearch) negotiate their
own CEA with the social partners. Under the Telecom-
munications Enterprise Act (TEA), Swisscom is obliged to
draw up a collective employment agreement in consul-
tation with the employee associations. In the event of
any controversial issues, an arbitration commission
must be convened which will support the social partners
by providing suggestions for solutions.
Employees in Switzerland
Digitisation presents numerous opportunities as well as
great challenges for employees and companies. As a
result, Swisscom helps its employees develop their skills
and provides them with five training and development
days a year.
Swisscom offers a wide range of mostly digitised learning
content via its training and development platform, which
employees use to increase their employability regardless
of time and location. In 2022, Swisscom employees spent
an average of 3.8 days per person on learning, training
and development.
Overview employees
Employees (FTE)
15,750
Subordination to CEA
Permanent work contracts
Part-time employees
Fluctuation rate
80%
99%
21%
5%
Swisscom staff are employed under private law on the basis
of the Code of Obligations. The terms and conditions of
employment exceed the minimum standard defined by the
Code of Obligations. Swisscom management employees in
Switzerland are subject to general terms and conditions of
employment, while the other employees are subject to
Swisscom’s Collective Employment Agreement (CEA).
N See www.swisscom.ch/cr-report2022
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Progressive employment conditions
Education days per year
Purchase of holiday days
Weeks of maternity leave
Weeks of paternity leave
5
10
18
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Social plan
The objective of the social plan is to formulate socially
acceptable restructuring measures and avoid job cuts.
Responsibility for implementing the social plan lies with
subsidiary firm Worklink AG. The services it offers
include skill assessments, retraining measures, career
advice and coaching as well as placement in temporary
external and internal work assignments. In 2022, 88% of
those affected by personnel reduction measures had
found a new job before the social plan programme
ended (prior year: 93%). For employees with manage-
ment contracts, there is also an arrangement in place to
support them in their professional reorientation in the
event of restructuring.
Employee remuneration
Swisscom’s salary system comprises a basic salary, a var-
iable performance-related component and bonuses. The
basic salary is determined based on function, individual
performance and the job market. The variable perfor-
mance-related salary component is measured by the
achievement of overriding objectives such as financial
parameters as well as business transformation metrics
that fall into the areas of operating performance, cus-
tomers, growth and sustainability. Details on remunera-
tion paid to members of the Group Executive Board are
provided in the Remuneration Report.
With effect from April 2022, Swisscom and its social
partners agreed to increase salaries for employees sub-
ject to the CEA by 0.9% of the total payroll. Some of the
salary increases were general in nature and some were
individual, taking the situation in the salary band into
account. An additional 0.9 per cent of the total payroll
was available for individual salary adjustments at the
management level.
Equal pay
The salary system is structured in such a way that equal
salaries are paid for equivalent tasks and services.
Employees’ salaries are adjusted within the scope of the
annual salary review. Swisscom also periodically reviews
the salary structure for differences between men’s and
women’s wages using the federal government’s equal
pay tool (Logib). Past reviews have only revealed minor
pay discrepancies that are below the tolerance threshold
set by the Federal Office for Gender Equality.
Internal staff development
and external job market
The company invests in targeted professional training
for its employees and managers in order to maintain and
improve their employability and the company’s compet-
itiveness in the long term. It is Swisscom’s declared goal
to fill as many positions as possible internally. Where
this is not possible, external recruitment is used. To
recruit the best talent, Swisscom has to compete with
national and international companies – especially in the
IT professions. Swisscom operates DevOps Centres with
354 employees (FTEs) in both Riga and Rotterdam. It
does this primarily to provide access to international tal-
ent outside the Swiss labour market, if needed.
Apprenticeships and internships
Swisscom trains 895 apprentices in a variety of profes-
sions in Switzerland; more than 526 ICT apprentices
make it the largest provider of ICT apprenticeships in
Switzerland. In the year under review, it introduced the
new ‘Digital Business Developer with Swiss Federal Cer-
tificate of Competence (EFZ)’ occupational profile and
launched the ‘Putting people before paper’ pilot project
in German-speaking Switzerland. Under this project,
Swisscom does not request school reports or certificates
in connection with apprenticeship applications.
526
ICT apprentices are trained by Swisscom, making it the
largest provider of ICT apprenticeships in Switzerland.
Furthermore, Swisscom launched the ‘Learnvolution’
project with the Baden Vocational School to make the
training concept of vocational schools more flexible.
This project was distinguished with the ICT Education &
Training Award. Through it, the graduates of technical
colleges and universities are able to gain their first prac-
tical experience at Swisscom as part of a step-in intern-
ship or as a trainee.
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Employee satisfaction
The Pulse survey gives Swisscom employees an opportu-
nity to submit their feedback on a wide variety of issues
relating to their personal work situation. Employees’
results and the comments are made available to all
employees in real time. A survey of this type fosters a cul-
ture of feedback and trust, which provides the basis for
Swisscom and its employees to grow and develop. The
response rate to the Pulse survey was 71% in 2022 (previ-
ous year: 68%). More than 90% of the employees partici-
pating in the survey said they recommend Swisscom as an
employer.
More than 90% of the employees
recommend Swisscom as an employer .
Diversity
To promote diversity, Swisscom focuses in its activities
on the factors of gender, inclusion, generations and lan-
guage regions.
Gender: Swisscom relies on various programmes and
initiatives to attract more women to IT professions and
positions in management. At the end of 2022, around
24% of Swisscom’s employees were women (prior year:
24%), and the proportion of women in management was
around 14%.
Flexible working models give employees the support
they need in different life situations. Swisscom therefore
advertises the majority of its positions with workloads
ranging from 60 to 100% and also offers job sharing, hol-
iday purchasing, part-time work on a trial basis, contri-
butions to extra-familial childcare and programmes
such as Work & Care.
Inclusion: Swisscom is committed to making jobs availa-
ble to people with physical or psychological impairments
in order to (re)integrate them into the workforce. The
proportion of these jobs increased from 1.11% to 1.17%
versus the previous year. Swisscom tries to earmark at
least 1% of jobs for inclusion-related employment solu-
tions.
Generations: In order to counteract the loss of knowl-
edge and shortage of skilled workers that will come
hand-in-hand with the upcoming, substantial wave of
retirements, Swisscom promotes the transfer and
build-up of know-how through measures such as men-
toring and junior programmes.
Languages: Swisscom attaches importance to ensuring
that the different languages are appropriately repre-
sented throughout the company and offers apprentice-
ships, internships and talent programmes in all language
regions as a result. The Swisscom Lingua language initia-
tive supports efforts to learn both the national lan-
guages and English or improve the corresponding lan-
guage skills.
Employees in Italy
The statutory working conditions in Italy are based on
the collective employment agreement. It sets out the
working conditions for employees and also contains pro-
visions governing relations between Fastweb and the
unions. Fastweb engages in dialogue with the unions
and the employee representatives and, in the event of
major operational changes, involves them at an early
stage.
The collective employment agreement regulates, among
other things, weekly working hours, holiday entitlement
as well as maternity and paternity leave.
General terms of employment
Weekly working time in hours
Weeks of holiday entitlement
Weeks of maternity leave
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In the event of incapacity for work due to illness or acci-
dent, Fastweb guarantees full payment of salary for 180
days and payment of half the salary for a further 185 days.
The terms and conditions of employment enable employ-
ees to achieve a healthy balance between their work
demands and personal life. This is largely due to the fol-
lowing measures: flexible office working hours, smart
working and working from home, and for mothers the
choice of shifts or temporary part-time jobs.
Fastweb offers competitive salary packages aimed at
attracting and retaining highly qualified specialists
and managers. The company’s salary system com-
prises a basic salary, a collective variable profit-sharing
bonus for non-managerial staff and a variable perfor-
mance-related component for managerial staff which
is contingent on meeting individual goals and com-
pany targets. The basic salary is determined according
to function, individual performance and the situation
in the labour market. The variable profit-sharing bonus
is based on the model agreed with the unions. Fast-
web complies with the legal minimum salary.
Now climate neutral
Climate-neutral subscriptions for all of Swisscom’s
customers – immediately, automatically and at no extra charge.
Now climate neutral
Climate-neutral subscriptions for all of Swisscom’s
customers – immediately, automatically and at no extra charge.
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Fastweb employees have full flexibility
and autonomy in their choice of
working model .
A Smart Working agreement was introduced at Fastweb
in 2020. It provides full flexibility and autonomy in the
choice of working model for all employees of the com-
pany, including customer advisors. It gives Fastweb
employees the option of using the smart working model
on all business days or deciding each day, in consultation
with their supervisor, whether to do their work in the
office or remotely. This guarantees performance-based
management that does not view success as being con-
tingent upon employees’ on-site work.
Fastweb is always interested in attracting new talent,
as well. To that end, it offers young people an oppor-
tunity to complete
internships at the company
throughout the entire year and participates in a pro-
gramme in which it takes on interns from schools as a
way of introducing them to the world of work. Fur-
thermore, Fastweb participates in career days and
presentation/recruitment events organised by uni-
versities and educational institutions in order to meet
young candidates.
Development of headcount
in full-time equivalents
19,845
19,317
19,062
18,905
19,157
17,147
16,628
16,048
15,882
15,750
2,698
2,689
3,014
3,023
3,407
2018
Switzerland
2019
Other countries
2020
2021
2022
As individual as you are
With ‘blue’, Swisscom offers its customers a
tailored service – better, simpler and more attractive.
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Brands, products
and services
Swisscom brand
CHF 5.6 billion
is the value of the Swisscom brand.
Swisscom blue
4.6 million
Fastweb
34%
new subscriptions were taken out
by customers.
Fastweb’s market share among
business customers.
Swisscom brands
The Swisscom brand is managed strategically as an
intangible asset and important element of the Group’s
reputation management.
In Switzerland, Swisscom offers core business products
and services under the main Swisscom brand, as well as
under the secondary brand Wingo and the third-party
brands Coop Mobile and M-Budget. Its portfolio also
includes other brands which are associated with other
themes and business areas. Outside Switzerland,
Swisscom’s main market is Italy, where it operates under
the Fastweb brand. The strategic management and
development of the entire brand portfolio is an integral
part of corporate communications.
Vision, values and the Swisscom promise determine the
positioning of the Swisscom brand. Swisscom expects
its employees to demonstrate trustworthiness, commit-
ment and curiosity in everything they do. Swisscom is
preparing its customers so they can make even easier
use of the networked future. The ‘ready’ brand platform
expresses this positioning to the outside world, which
has a positive effect on the brand perception.
The ‘Swisscom blue’ product family, which combines all
of Swisscom’s entertainment offerings, was upgraded
and expanded in the year under review. In addition to
the existing offerings Swisscom blue TV, blue Cinema
and blue News, it now includes connectivity offerings on
the mass market. It ensures high visibility and recogni-
tion and rejuvenates the Swisscom brand.
Main brand
Product family
Secondary brand
and tertiary brands
Other brands
(excerpt)
Swisscom brand portfolio
This is in line with Swisscom’s one-brand strategy. With
respect to employer branding, Swisscom relies on its
employees as ambassadors, primarily via platforms such
as LinkedIn. The My Intranet App – MIA has established
itself as an important tool in internal communications. It
brings topics from the intranet to the mobile phones of
all employees.
Trustworthiness and service remain important factors
in confirming to existing customers that they made the
right decision in opting for Swisscom and in winning
new customers, while also helping to emphasise the
importance of Swisscom for Switzerland. Swisscom is
part of a modern Switzerland, is always recognisable as
a Swiss company and positions itself clearly and credibly
through its stance on responsibility. The targeted sus-
tainability campaigns have had an impact and strength-
ened the brand overall. This is one reason why the repu-
tation values achieved by Swisscom are exceptionally
high for a company in the telecommunications sector by
global standards.
According to the Telecoms 150 report,
Swisscom is the second-strongest
telecommunications brand worldwide .
The ‘Brand Finance Switzerland 50 2022’ report rated
Swisscom as the year’s strongest brand in Switzerland –
ahead of Lindt and last year’s winner Rolex. Swisscom
increased its brand value by 16% to CHF 5.6 billion, mak-
ing it one of the ten most valuable Swiss brands.
Products and services in Switzerland
Residential Customers
Swisscom launched its new, comprehensive blue portfo-
lio during the year under review. It makes the subscription
more flexible and attractive for new and existing custom-
ers, offering them a range with even more benefits.
Simply digital: Customers who use Sam – the digital
assistant – as their first point of contact for support will
benefit from a monthly discount of CHF 10 per subscrip-
tion. Of course, all Swisscom customers will still be able
to access the traditional hotline and in-shop advice.
Loyalty benefit: Customers who combine subscriptions
for mobile telephony and Internet access now benefit
from a monthly loyalty discount of CHF 20 at even the
lowest subscription level, or a whole CHF 30 for each
additional mobile subscription in the same household
(up to four).
Giga speed: Swisscom customers with the most popular
subscriptions now surf at up to 1 Gbps, automatically
and at no extra charge, instead of 200 Mbps or 300 Mbps.
This benefits around 1.9 million customers.
blue TV: blue TV now offers up to 2,000 hours of record-
ing capacity. Depending on the language region, the
blue Play media library now includes up to 10,000 films
and series episodes and is free of charge for customers
with the blue M subscription level or higher.
The easiest way to control Swisscom blue is via the new
My Swisscom app: Customers can use the app to cus-
tomise their subscriptions, manage devices, order ser-
vices, or contact customer support. The trade magazine
connect rated the Swisscom app as the best telecommu-
nications app in the German-speaking region (Germany,
Austria and Switzerland).
Swisscom blue offers a comprehensive entertainment
experience with TV, streaming and cinema, along with
the freedom of being able to access this content from
anywhere. blue TV is available both via the Swisscom
Box and via a smartphone and tablet app, a web player
on blue.ch and a smart TV app on Samsung and LG
devices. The app is also available with the complete
blue+ offering on the TV boxes of UPC TV, Quickline,
Wingo, Net+ and Apple TV. Apple TV 4K has also been
available as an alternative to Swisscom Box 21 since
2022. Owners of Apple devices can now use the blue TV
app on Apple TV 4K to access their blue TV subscription,
making blue TV not only accessible to Swisscom custom-
ers, but also to customers of other operators.
Swisscom blue:
better, simpler, more attractive
The broadest blue TV package is still only available in
combination with the Swisscom Box, because only the
Swisscom Box integrates streaming offers from Netflix,
Prime Video, Sky, OCS, DAZN, YouTube and Play Suisse in
addition to traditional television and blue+ content (live
sport, films and series). In addition, the Swisscom Box
offers access to the MySports channels, which broadcast
matches from the top Swiss ice hockey leagues, among
other things.
In addition to the standard communications channels
such as hotlines, chats and contact forms, customers get
in touch with Swisscom via WhatsApp, Facebook,
Twitter and Google Business Messenger. When it comes
to service, Swisscom continues to rely on a regional,
on-site presence. Employees address customers’ con-
cerns in 115 Swisscom shops – many of which already
feature the new ‘Retina’ design, whose nationwide roll-
out began in the year under review. Swisscom earned
top scores to win the connect shop test for the second
time in a row in 2022. Customers can also have damaged
mobile devices repaired on site in eleven Swisscom
Repair Centers. Swisscom offers its customers a Swiss
solution via myCloud for securely managing and sharing
their personal data such as photos, videos and docu-
ments.
35
Swisscom targets its other brands – Wingo, Coop Mobile
and M-Budget – at customers who do not want the
high-quality service and extensive range offered by
Swisscom products. M-Budget and Wingo offer custom-
ers straightforward attractive mobile, Internet and
fixed-line services. Coop Mobile is exclusively a mobile
subscription.
Swisscom works together with regional IT partners to
operate the IT and takes care of both security and pro-
fessional data backups. Mobile subscriptions geared to
the needs of small and medium-sized enterprises, IoT
solutions, a cloud-based register system, cloud-based
software for mobile working as well as web services
round off Swisscom’s SME portfolio.
Business Customers
Swisscom makes use of its many years of experience as
an integrated telecommunications and IT company to
support its business customers with their digitisation
efforts and works together with them to develop for-
ward-looking solutions. Swisscom’s comprehensive ICT
portfolio comprises cloud, outsourcing, workplace and
IoT solutions, as well as mobile phone solutions for
mobile working and communication, networking solu-
tions, location networking, business process optimisa-
tion, SAP solutions, security and authentication solu-
tions and services tailored to the banking industry.
In the year under review, Swisscom entered into a strate-
gic cloud collaboration with Amazon Web Services to
offer its customers advanced products and services.
Swisscom also helps drive the digitisation of the health-
care sector. It helps makes hospitals more efficient by
providing them with support to digitise their processes.
It helps health insurance companies by taking over the
operation of their core IT systems and interconnects ser-
vice providers through digitised solutions.
As a leading provider of cybersecurity, Swisscom now
offers immediate professional assistance to Swiss com-
panies and authorities from experienced security spe-
cialists if they become the victim of a cyber attack – all
of this around the clock and regardless of whether the
victims are Swisscom customers.
Swisscom has standardised and customisable ICT solu-
tions in its portfolio for SME customers. inOne SME
office covers basic Internet and telephony needs. Smart
Business Connect, a scalable communication solution
with collaboration and networking features, is ideal for
SMEs with more complex needs. Both bundled offerings
include integrated services such as an Internet failover
and can be supplemented with blue TV, blue TV Public or
blue TV Host – the infotainment offering for hotels and
homes. SMEs are increasingly dependent on their IT
functioning flawlessly and being able to adapt easily and
flexibly to market and company changes at any time.
The Smart ICT complete IT outsourcing package includes
a modular integrated solution for SMEs. For this,
Through its localsearch product portfolio, Swisscom
helps companies to be found online, to acquire new cus-
tomers and to retain them in the long term. As a com-
pany with roots in the printed telephone directory, local-
search currently contributes to the success of Swiss
SMEs in the digital world through the provision of simple
yet effective online marketing solutions. In addition,
localsearch operates local.ch and search.ch, the direc-
tory and booking platforms with the widest reach in
Switzerland. Swisscom’s brand portfolio also includes
renovero, the largest Swiss platform for craftsmen; Loc-
alcities, a platform for communities and associations; as
well as anbieter-vergleich.ch, an industry comparison
service.
The subsidiary Swisscom Broadcast AG provides radio
networks for broadcasting, security and professional
mobile radio and makes around 450 transmitter sites
available for co-use. Its offering also includes numerous
services related to video surveillance and analysis,
perimeter protection as well as drones and robot appli-
cations. It is complemented by services from the fields of
telecommunications, IT, streaming and event manage-
ment. Furthermore, Swisscom takes over the planning,
construction, maintenance and operation of high-per-
formance ICT and network infrastructure solutions as
well as promising smart infrastructure projects through
cablex Ltd, Switzerland’s leading network infrastructure
and service company.
Wholesale
Swisscom provides a variety of copper- and fibre-optic-
based connectors as per customer requirements. With
its Carrier Ethernet and Carrier Line services and lines
leased under the TCA, Swisscom Wholesale offers tele-
coms service providers transparent connections on an
as-needed basis with a wide range of different band-
widths and interfaces and/or a flexible Ethernet service
allowing tailored bandwidths and qualities of service.
Swisscom Wholesale also provides basic offerings for
the connection (interconnection) of telecoms systems
and services, and supplies its customers with infrastruc-
ture products such as the shared use of cable ducts and
the mobile network.
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More security than ever
In the event of a cyber attack, Swisscom specialists
support companies and authorities –
quickly, professionally, for customers and non-customers alike.
Products and services in Italy
In the residential customer segment, Fastweb defended
its premium positioning in 2022 despite intense price
competition. The high quality of services and, increas-
ingly, sustainability efforts have contributed to the com-
pany’s successful market positioning. Fastweb defended
its premium positioning in the fixed-network segment
as well. It introduced a three-tier offer, launched an
Internet box with several different versions and
expanded the offer with additional services. In the area
of mobile communications, Fastweb expanded coverage
even further with the 5G network. That enabled Fastweb
to attract new customers by offering the best value for
money on the market. At the same time, Fastweb
contributed to climate protection by offering the first
‘emission-free’ subscriptions in Italy. Finally, it incorpo-
rated the Fastweb Digital Academy into its offering in
order to intensify its commitment to strengthening dig-
ital skills within the country and fostering talent.
In the business customers segment, Fastweb confirmed
its leading position again in 2022. A market share of 34%
gives the company a strong market position, especially
in fixed network and ICT services for corporate custom-
ers. In the area of public administration, its market share
rose to 47% thanks to the conclusion of national frame-
work agreements for fixed-network and ICT services. In
this customer segment, Fastweb secured contracts for
cybersecurity projects worth a total of EUR 135 million
through cyber security tenders. Fastweb was also
awarded a number of projects to network schools and
healthcare institutions as part of the EU-funded National
Recovery and Resilience Plan (NRRP). Fastweb gained
additional corporate customers during the year under
review through its ‘Fastweb 5G Mobile’ service for busi-
nesses, which was successfully launched at the end of
2021. It also continued efforts to develop its portfolio of
cloud and IT security offerings through Cutaway and
7Layers, which had been acquired in 2020. With respect
to the public cloud, Fastweb offered its customers a
more comprehensive multi-cloud service as part of the
partnership with Amazon Web Services (AWS) that was
established in 2021.
In the wholesale market, Fastweb has achieved excel-
lent results thanks to partnerships with Sky, WindTre,
Tiscali and other companies with more than 400,000
connections (residential and business customers), and
customers benefit from ultra-fast broadband services.
Customer satisfaction
Swisscom measures the satisfaction of residential and
business customers twice a year, and that of wholesale
customers once a year. The metric used is the extent to
which customers are willing to recommend Swisscom to
others and the related Net Promoter Score (NPS). The NPS
is calculated from the difference between ‘promoters’
(customers who would strongly recommend Swisscom)
and ‘critics’ (customers who would only recommend
Swisscom with reservations or would not recommend
the company). Swisscom conducts the following surveys
among residential and business customers:
• The Residential Customers segment questions callers
to the Swisscom hotline and visitors to the Swisscom
Shops regularly about waiting times and staff friend-
liness. Product studies also continuously survey buy-
ers and users to determine product satisfaction, ser-
vice and quality.
• The Business Customers segment conducts surveys
among customers to measure satisfaction along the
customer experience chain. Feedback tools are imple-
mented at relevant customer touchpoints to enable
IT users to submit feedback or enter their comments
in the order system after each interaction with the
service desk or after placing orders. Customers can
also assess the quality and success of their projects
on completion.
In view of the tougher competitive environment, the
NPS in the residential customer segment has remained
stable at a good level – particularly compared with the
competition. The NPS for business customers remains at
a very high level. The results of these studies and surveys
help Swisscom formulate direct measures to further
improve its services and products. They also influence
the variable performance-related component of remu-
neration for employees and management.
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Innovation
and development
Trendscouting
Since 1998
Swisscom has had a branch office
in Silicon Valley since 1998.
Innovation activities
7 areas
of innovation
that help the Group achieve its goals.
Swisscom Ventures
More than 80
investments
in technology companies made
by Swisscom.
Innovation as a key driver
of business performance
Innovation is central to Swisscom’s business perfor-
mance and helps the company achieve its strategic
goals. Even the best customer experience can be
improved even further through upgrades to existing
products and services. With the help of analytical tools,
artificial intelligence and automation, Swisscom designs
processes to be even more efficient. It creates growth by
developing new products and services. Innovation also
helps Swisscom position itself as the best ICT employer,
attract the best talent and retain it. Swisscom works
closely with partners, universities, start-ups and estab-
lished technology companies.
Swisscom supports the internal
innovation process through its Kickbox
intrapreneurship programme .
In its Silicon Valley office, Swisscom has been engaged in
trend and technology scouting since 1998. At the same
time, Swisscom Outpost is an integral part of the Silicon
Valley ecosystem. It establishes local partnerships with
advanced technology companies whose products and
business models are subsequently transferred to Swit-
zerland.
The Swisscom Ventures division has been investing in
start-ups since 2007 and networking them with
Swisscom in order to stimulate innovation. In the year
under review, Swisscom made investments in nine new
companies and eleven follow-up investments in existing
holdings. These include Scandit, a leading smart data
capture company. Additionally, Swisscom uses the
Swisscom StartUp platform to support entrepreneurs
and start-ups in Switzerland through consulting, dis-
counts on IT and cloud services, expert know-how,
coaching programmes, financing and community events.
The year under review featured the tenth Swisscom
Start-up Challenge, which was all about climate protec-
tion and sustainability. Over 200 start-ups from 30 coun-
tries applied for the funding programme. The five win-
ners of the Start-up Challenge secured spots to participate
in a one-week exploration programme with sustainabil-
ity and ICT experts from Swisscom while also gaining
access to the Swisscom ecosystem. They now have access
to workshops, coaching and a network that includes
companies from the areas of climate protection and
energy efficiency as well as investors. They also get the
chance to partner with Swisscom. Swisscom strengthens
the internal innovation process through the intrapre-
neurship programme Kickbox, which provides employ-
ees with tools, a clear process and resources for innova-
tion projects. The programme is also available to other
companies via the spin-off rready AG.
N See www.swisscom.ch/innovation
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Innovation focused on specific topics
Analytics and artificial intelligence
Entertainment
Internet of Things
Security
Digital business
Network and infrastructure
Digital Swisscom
Network and infrastructure
Swisscom is focusing on a technology mix so that the
whole of Switzerland can benefit from the best infra-
structure. Its advanced architecture also enables it to
renew all components from the core network to the con-
nection. Swisscom is thus laying the foundations to ena-
ble the rapid introduction of new services in the future
and make new developments available to customers.
Fixed network
Broadband demand will continue to grow going forward,
making it important for Swisscom to continuously invest
in the network, expand it and implement the latest tech-
nologies. The year under review saw Swisscom become
the first company in the world to successfully test the
latest generation of fibre-optic technology (50G PON) in a
Zurich metropolitan area. In addition to offering a band-
width of up to 50 Gbps, this technology offers valuable
security services, lower latency and guaranteed band-
width thanks to network slicing.
Mobile communications
Swisscom is continuously improving its mobile network
through the fine-tuning of a variety of parameters
(antenna alignment, etc.). In the past, parameter adjust-
ments had been performed manually. Swisscom is cur-
rently developing a machine learning-based recommen-
dation system for mobile communications configurations
that evaluates a large number of possible parameter
combinations. Going forward, Swisscom plans to use this
system for making automatic adjustments to the mobile
network. Swisscom is working on a hyperloop project
together with the Swiss Federal Institute of Technology
in Lausanne (EPFL): a 600-kilometre-per-hour ground-
based transport system. Swisscom controls the hyper-
loop using its own 5G mobile radio cell.
Internet of Things (IoT)
The Internet of Things (IoT) enables lucrative business
models, automated processes, and novel customer
interactions through smart products. Swisscom sup-
ports companies to successfully enter the IoT and to
develop their systems further. Swisscom partnered with
Microsoft to develop an advanced IoT solution for the
Rhomberg Sersa Rail Group, a leading international
full-service provider of railway technology. The solution
collects position and operating data from the equip-
ment, analyses this data with the help of artificial intelli-
gence and evaluates it. This approach to digitised rail-
way construction is already enabling faster and more
economical work processes in several countries.
Analytics and artificial intelligence (AI)
Swisscom uses artificial intelligence (AI) to offer its cus-
tomers even better service and optimise processes. It
uses AI in its customer service, in new products and ser-
vices and to detect network faults, for example. Together
with EPFL, it invests in research projects related to
machine learning and artificial intelligence at the
Swisscom Digital Lab. Forecasting algorithms, for exam-
ple, can be used to analyse past visitor flows and predict
future ones. Last year, Swisscom successfully launched a
service for Switzerland Tourism that forecasts visitor
density around tourist attractions. It plans to extend its
movement forecasts to other industries, such as retail
and transportation, to provide data-driven support to
customers making expansion-related decisions or for
marketing planning, for example.
Customers have been navigating the automated voice
dialogue on the Swisscom hotline via AI-based speech
recognition instead of conventional numerical inputs
through the keypad for two years already. This makes it
possible for customer concerns to be identified via an
automated process, classified more quickly and for cus-
tomers to be forwarded directly to the agent best quali-
fied to assist them. Ongoing training of the AI applica-
tion is improving the service continuously, so that
certain customer enquiries can be resolved entirely via
automated voice dialogue. The same AI foundation is
used in the Swisscom chatbot via webchat, AppChat,
Apple Business Chat (ABC), SMS and WhatsApp.
Security
Security is part of Swisscom’s values and culture. Threats
from the Internet are constantly growing in number and
becoming increasingly intelligent. Many processes and
business models in today’s companies are completely
IT-based and thus become attractive targets for attack-
ers. In addition, the use of multi-cloud and hybrid cloud
solutions are making IT landscapes increasingly complex
and vulnerable.
In collaboration with the Swiss National Bank and the
SIX Group, Swisscom and other telecommunications ser-
vice providers collaborated in 2021 to launch the Secure
Swiss Finance Network (SSFN). This network is based on
the SCION Internet architecture developed at the ETH;
Swisscom has been providing financial support for its
development for ten years now. SCION technology
offers a very high level of protection against cybercrime
by operating the communications network separately
from the conventional Internet and by clearly defining
network users and data paths. Following a pilot project
conducted within the SSFN framework, Swisscom is now
offering products based on SCION technology to its busi-
ness customers.
Entertainment
Swisscom expanded the Swisscom blue offering even
further during the year under review. Customers can
now use Apple TV as a TV-Box. The Sport Player on the
television gives customers with sports subscriptions
direct access to the highlights of a sporting event. The
Swisscom Studio uses augmented reality to digitally dis-
play players, for example. Swisscom uses blue Music to
provide a world of experience around the most popular
Swiss open-air concerts – on site, online for people on
the go and on blue TV. Finally, Swisscom is integrating
the metaverse into its entertainment offerings and col-
laborated with Energy to organise the first virtual live
concerts in the metaverse in the year under review.
Digital Swisscom
Swisscom took further steps to digitise its network, jobs
and processes in 2022. The new My Swisscom app once
again passed the test carried out by trade magazine con-
nect and came in first place with the highest score
among all service apps operated by German-speaking
telecommunications companies. Swisscom uses innova-
tions from the field of digitisation on the customer chan-
nels it serves (such as in shops and call centres). Follow-
ing a successful pilot last year, Swisscom is enabling
self-checkout in its stores using the My Swisscom app.
The app will also display waiting times and free appoint-
ment slots in the future. The shops stopped printing out
cash register receipts this year; they will be stored digi-
tally in the respective customer’s My Swisscom app
going forward.
Digital business
In the field of digital business innovation, Swisscom sup-
ported developments within and outside its own com-
pany in the year under review, by setting up and further
developing joint ventures with strategic partners and
promoting intrapreneurship. The Swisscom Digital Busi-
ness Unit (DBU) focuses on digital services for SMEs via
localsearch (Swisscom Directories Ltd) and trust services.
It is also continuously examining other action areas that
could become relevant to its activities.
Digital trust
Swisscom has positioned itself in Switzerland as a pio-
neer and market leader for trust services such as elec-
tronic signatures and digital certificates. Swisscom sub-
sidiary Ajila AG is already providing major support to
numerous Swiss companies and administrations to help
them completely digitise their document-based busi-
ness processes. Customer identification and onboarding
as well as contract signings often pose bottlenecks in
the customer journey. However, fully digital processes
call for tools that avoid media discontinuity and inte-
grate seamlessly into companies’ offerings. This is
ensured by two subsidiaries: i-web, the leading provider
of eGovernment services to municipalities and cities in
Switzerland, and Swisscom Trust Services AG, which is a
leading provider in Switzerland and Europe of legally
valid electronic signature and identity solutions in accord-
ance with the EU’s eIDAS Regulation and the Swiss Signa-
tures Act ZertES.
41
Financial review
Alternative performance measures
Swisscom uses key indicators defined in the International
Financial Reporting Standards (IFRS) throughout its entire
financial reporting, as well as selected alternative perfor-
mance measures (APMs). These alternative measures
provide useful information on the Group’s financial situ-
ation and are used for financial management and control
purposes. As these measures are not defined under IFRS,
the calculation may differ from the published APMs of
other companies. For this reason, comparability across
companies may be limited.
The key alternative performance measures used at
Swisscom for 2022 financial reporting are defined as
follows.
Key performance measure
Adjustments
At constant exchange rates
Swisscom definition
Significant items that, due to their exceptional nature, cannot be considered part of the
Swisscom Group’s ongoing performance, such as termination benefits and significant
positions in connection with legal cases or other non-recurring items . In addition, the
application of changes in the IFRS accounting principles and standards can have an impact
on comparability with the previous year if these principles are not applied retrospectively . The
same definitions and calculation bases are applied for the adjustments in the financial year
and in the previous year . In the financial reporting, the change in the adjusted operating result
before depreciation and amortisation (EBITDA adjusted) is commented ‘on a comparable
basis’ .
Key performance measures considering currency effects (figures for 2022 are translated at the
2021 exchange rate to calculate the currency effect) .
Operating income before depreciation and amortisation (EBITDA) Operating income before depreciation, amortisation and impairment losses of property, plant
and equipment, intangible assets and right-of-use assets, financial expense and financial
income, result of equity-accounted investees and income tax expense .
Operating income (EBIT)
Capital expenditure
Operating free cash flow proxy
Free cash flow
Net debt
Operating income before financial expense and financial income, result of equity-accounted
investees and income tax expense .
Purchase of property, plant and equipment and intangible assets and payments for
indefeasible rights of use (IRU) which are classified as leases under IFRS 16 . In general, IRUs
are paid in full at the beginning of use .
Operating income before depreciation and amortisation (EBITDA) minus capital expenditure
in property, plant and equipment, intangible assets and payments for indefeasible rights of
use (IRU) and lease expense . Lease expense includes interest expenses on lease liabilities and
depreciation of rights of use excluding depreciation of indefeasible rights of use (IRU) and
impairment losses on right-of-use assets .
Cash flows from operating and investing activities excl . cash flows from the acquisition and
sale of subsidiaries as well as income and expenses for equity-accounted investments and
other financial assets .
Financial liabilities and lease liabilities less cash and cash equivalents, listed debt instruments,
financial assets in connection with financing and other current financial assets .
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Reconciliation of alternative performance measures
in million CHF
Net revenue
Net revenue
Operating income before depreciation and amortisation (EBITDA)
EBITDA
Termination benefits
Gain from change in pension plan
Additions to provisions for legal proceedings in Switzerland
EBITDA adjusted
Capital expenditure
Capital expenditure in property, plant and equipment
and intangible assets
Payments for indefeasible rights of use (IRU)
Capital expenditure
In CHF million
Operating free cash flow proxy
Cash inflow from operating activities
Capital expenditure
Depreciation of right-of-use assets
Depreciation of indefeasible rights of use (IRU)
Impairment losses on right-of-use assets
Proceeds from finance leases
Change in deferred gain from the sale and leaseback of real estate
Change in operating assets and liabilities
Change in provisions
Change in defined benefit obligations
Gain on sale of property, plant and equipment
Loss on disposal of property, plant and equipment
Expense for share-based payments
Revenue from finance leases
Interest received
Interest paid on financial liabilities
Dividends received
Income taxes paid
Operating free cash flow proxy
Free cash flow
Cash inflow from operating activities
Cash flow used in investing activities
Repayment of lease liabilities
Acquisition of subsidiaries, net of cash and cash equivalents acquired
Proceeds from sale of subsidiaries, net of cash and cash equivalents sold
Purchase of equity-accounted investees
Proceeds from equity-accounted investees
Purchase of other financial assets
Proceeds from other financial assets
Free cash flow
2022
2021
Change
reported
Change at
constant
currencies
11,112
11,183
–0.6%
1.0%
4,406
4,478
–1 .6%
–0 .2%
(5)
–
157
4,558
2,289
20
2,309
14
(60)
52
4,484
1.7%
3.1%
2,270
16
2,286
0 .8%
25 .0%
1.0%
2 .9%
3.0%
2022
2021
Change
3,876
(2,309)
(262)
20
–
(106)
10
85
(31)
(49)
11
(3)
(1)
134
(2)
62
(2)
378
1,811
3,876
(2,430)
(240)
67
–
2
–
142
(68)
1,349
4,044
(2,286)
(281)
23
1
(112)
11
(65)
73
9
10
–
(1)
120
(14)
81
(1)
279
1,891
4,044
(2,120)
(259)
42
(1)
3
(149)
73
(120)
1,513
(168)
(23)
19
(3)
(1)
6
(1)
150
(104)
(58)
1
(3)
–
14
12
(19)
(1)
99
(80)
(168)
(310)
19
25
1
(1)
149
69
52
(164)
43
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44
Summary
In CHF million, except where indicated
Net revenue
Operating income before depreciation and amortisation (EBITDA)
EBITDA as % of net revenue
Operating income (EBIT)
Net income
Operating free cash flow proxy
Free cash flow
Capital expenditure
Net debt
Equity
Equity ratio
Full-time equivalent employees
The main contributors to Group net revenue for 2022 of
CHF 11.1 billion are the Swisscom Switzerland (74%) and
Fastweb (22%) segments.
Compared with the previous year, Group net revenue
decreased by 0.6% and operating income before depreci-
ation and amortisation (EBITDA) by 1.6%. The reported
revenue and EBITDA development was significantly
influenced by the performance of the euro (EUR) as a
result of the substantial share held by Fastweb. The
average EUR exchange rate decreased by 7.0% year-on-
year in 2022. This resulted in negative exchange differ-
ences on Group net revenue of CHF 187 million and on
EBITDA of CHF 65 million. Based on a constant EUR
exchange rate, revenue in 2022 rose by 1.0% or CHF 116
million. Revenue remained largely stable for Swisscom
Switzerland (+0.4%), and Fastweb achieved an increase
in revenue of 3.8% (in EUR). In the other segments, reve-
nue saw a marginal increase of 0.5%.
In addition to exchange rate effects, EBITDA develop-
ment was also influenced by various non-recurring items.
In 2022, provisions for legal proceedings of CHF 157 mil-
lion were recognised with an effect on EBITDA (prior year:
CHF 52 million). In addition, provisions for termination
benefits of CHF 5 million were reversed with an effect on
EBITDA in the reporting year (in the previous year, provi-
sions of CHF 14 million were recognised). In 2021, there
was also a positive non-recurring item of CHF 60 million
in connection with change in pension plan. These non-
recurring items negatively impact the comparison of
EBITDA year-on-year by a total of CHF 146 million. With-
out these items and with a constant EUR exchange rate,
this resulted in an increase in EBITDA of CHF 139 million
(+3.1%). Swisscom Switzerland and Fastweb both con-
tributed to this, with CHF 121 million and CHF 30 million
respectively.
2022
11,112
4,406
39 .7
2,040
1,603
1,811
1,349
2,309
7,374
11,171
45 .4
19,157
2021
11,183
4,478
40 .0
2,066
1,833
1,891
1,513
2,286
7,706
10,813
43 .6
18,905
Change
(71)
(72)
(0 .3)
(26)
(230)
(80)
(164)
23
(332)
358
1 .8
252
in %
–0 .6%
–1 .6%
–1 .3%
–12 .5%
–4 .2%
–10 .8%
1 .0%
–4 .3%
3 .3%
1 .3%
The development of the financial result and income tax
expense was also influenced by non-recurring items. In
2021, gains from two shareholding transactions of
CHF 207 million combined were incurred and income tax
expense positively impacted by CHF 57 million due to a
change in Italian tax laws.
Net
income decreased by 12.5% year-on-year to
CHF 1,603 million. The main reasons for the CHF 230 mil-
lion decline in profit are the non-recurring items in
EBITDA (CHF 146 million), in the financial result (CHF 207
million) and in income tax expense (CHF 57 million).
Adjusted for these items, net income increased by
CHF 180 million.
Capital expenditure was again substantial at CHF 2.3 bil-
lion. This was 1.0% higher than in the previous year and
related primarily to network infrastructure in the Swiss
core business and at the Italian subsidiary Fastweb. The
generated free cash flow of CHF 1,349 million can be
used to finance the total dividend of CHF 1,140 million
and further reduce net debt. Net debt remained
unchanged in relation to EBITDA at 1.7x. The single-A
credit rating confirmed by both major rating agencies
and the further increase in the equity ratio to 45% under-
line the solid financing.
Swisscom expects net revenue of CHF 11.1 to 11.2 bil-
lion, EBITDA of CHF 4.6 to 4.7 billion and capital expend-
iture of around CHF 2.3 billion for 2023. Subject to
achieving its targets, Swisscom will propose payment of
an unchanged, attractive dividend of CHF 22 per share
for the 2023 financial year at the 2024 Annual General
Meeting.
Segment results
In CHF million, except where indicated
Net revenue 1
Residential Customers
Business Customers
Wholesale
Infrastructure & Support Functions
Intersegment elimination
Swisscom Switzerland
Fastweb
Other Operating Segments
Intersegment elimination
2022
2021
Change
in %
4,527
3,129
612
71
(69)
8,270
2,493
1,038
(689)
4,545
3,031
654
76
(73)
8,233
2,583
1,033
(666)
(18)
98
(42)
(5)
4
37
(90)
5
(23)
(71)
59
9
(7)
(29)
(2)
30
(35)
(6)
(67)
6
(72)
–0 .4%
3 .2%
–6 .4%
–6 .6%
–5 .5%
0.4%
–3 .5%
0 .5%
3 .5%
–0.6%
2 .0%
0 .7%
–2 .3%
2 .6%
0.9%
–3 .9%
–3 .6%
–12 .8%
–1.6%
Revenue from external customers
11,112
11,183
Operating income before depreciation and amortisation (EBITDA) 1
Residential Customers
Business Customers
Wholesale
Infrastructure & Support Functions
Intersegment elimination
Swisscom Switzerland
Fastweb
Other Operating Segments
Reconciliation pension cost 2
Intersegment elimination
2,975
1,384
291
(1,166)
(1)
3,483
857
160
(53)
(41)
2,916
1,375
298
(1,137)
1
3,453
892
166
14
(47)
Operating income before depreciation and amortisation (EBITDA)
4,406
4,478
1 Swisscom has made adjustments to its financial management as of 1 January
2 Operating income of segments includes ordinary employer contributions as
2022 and has restated the previous year’s figures accordingly. For further
information, see note 1.1 to the consolidated financial statements.
pension fund expense. The difference to the pension cost according to IAS 19 is
recognised as a reconciliation item.
Swisscom’s reporting focuses on the operating divisions
Swisscom Switzerland and Fastweb. The other business
divisions are grouped together under Other Operating
Segments.
Swisscom Switzerland comprises the customer segments
Residential Customers, Business Customers and Whole-
sale, along with the Infrastructure & Support Functions
business division. Infrastructure & Support Functions is
managed as a cost centre and does not charge network
costs and management fees to other segments. All other
services between the segments are charged at market
prices. The segment results for Residential Customers,
Business Customers and Wholesale correspond to a con-
tribution margin before network costs.
Fastweb operates in Italy and consists of the Residential
Customers, Business Customers and Wholesale seg-
ments.
Other Operating Segments primarily comprises the Dig-
ital Business division, Swisscom Broadcast Ltd (radio
transmitters) and cablex Ltd (network construction and
maintenance).
45
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46
Swisscom Switzerland
In CHF million, except where indicated
Net revenue and results
Telecom services
Solution business
Merchandise
Wholesale
Revenue other
Revenue from external customers
Intersegment revenue
Net revenue
Direct costs
Indirect costs
Segment expenses
Segment result before depreciation and amortisation (EBITDA)
Margin as % of net revenue
Lease expense
Depreciation and amortisation
Segment result
Operating free cash flow proxy
Segment result before depreciation and amortisation (EBITDA)
Lease expense
EBITDA after lease expense (EBITDA AL)
Capital expenditure
Operating free cash flow proxy
Operational data in thousand and full-time equivalent employees
Fixed telephony access lines
Broadband access lines retail
TV access lines
Mobile access lines
Access lines wholesale
Headcount
Swisscom Switzerland’s net revenue remained largely
stable (+0.4%). Telecoms services account for the largest
share of revenue (66%). The other main revenue items are
solutions business (14%), merchandise (10%) and whole-
sale business (7%).
In telecoms services, the long-standing trend of declining
revenues slowed significantly in 2022 with a year-on-
year decrease of CHF 49 million (–0.9%), in spite of con-
tinued high competition and price pressure. In the Resi-
dential Customers segment (+0.2%), this trend was even
stopped altogether, mainly due to the following factors:
the successful launch of a new product portfolio
(Swisscom blue), fewer promotions, a decline in willing-
ness among customers to switch (churn rate) and strong
customer growth at secondary brand Wingo. Market sat-
uration is reflected in fewer connections and declining
2022
2021
Change
in %
5,449
1,181
831
601
148
8,210
60
8,270
(1,799)
(2,988)
(4,787)
3,483
42 .1
(218)
(1,489)
1,776
3,483
(218)
3,265
(1,698)
1,567
1,322
2,027
1,571
6,173
679
5,498
1,111
772
644
152
8,177
56
8,233
(1,826)
(2,954)
(4,780)
3,453
41 .9
(232)
(1,475)
1,746
3,453
(232)
3,221
(1,642)
1,579
1,424
2,037
1,592
6,177
698
12,822
12,889
(49)
70
59
(43)
(4)
33
4
37
27
(34)
(7)
30
14
(14)
30
30
14
44
(56)
(12)
(102)
(10)
(21)
(4)
(19)
(67)
–0 .9%
6 .3%
7 .6%
–6 .7%
–2 .6%
0.4%
7 .1%
0.4%
–1 .5%
1 .2%
0.1%
0.9%
–6 .0%
0 .9%
1.7%
0 .9%
–6 .0%
1.4%
3 .4%
–0.8%
–7 .2%
–0 .5%
–1 .3%
–0 .1%
–2 .7%
–0 .5%
subscriber bases for fixed-network telephony (–7.2%),
broadband retail (–0.5%), TV (–1.3%) and mobile commu-
nications (–0.1%). In mobile communications, the cus-
tomer structure changed due to a decline in prepaid lines
(–170,000) and an almost equal increase in postpaid lines
(+166,000). The share of secondary and third-party
brands rose from 23% to 28%.
Revenue from the solutions business increased by
CHF 70 million (+6.3%). Around half of this is attributable
to the acquisition of the MTF Group. Swisscom has a
strong position as a full-service provider and customer
satisfaction is high. Demand for cloud, security, IoT and
SAP solutions as well as business applications continued
to grow.
The decline in wholesale revenue by CHF 43 million
(–6.7%) resulted in part from the loss of MVNO revenue
with UPC following the acquisition of Sunrise and in part
from a decrease in inbound roaming revenues.
Segment expenses remained largely stable in 2022
(+0.1%). Direct costs fell by CHF 27 million (–1.5%). Lower
costs for subscriber acquisition and retention and for
termination on other providers’ networks were offset by
higher costs for merchandise. The increase in indirect
costs by CHF 34 million (+1.2%) was influenced by
non-recurring items. In the year under review, provisions
for legal proceedings amounting to CHF 157 million
were recognised (prior year: CHF 52 million) and provi-
sions for termination benefits amounting to CHF 5 mil-
lion reversed. In the previous year, termination benefits
amounted to CHF 9 million. Indirect costs excluding
these non-recurring items fell by CHF 57 million (–2.0%).
In telecommunications, cost savings of CHF 104 million
were realised through efficiency improvement measures
and optimised network maintenance. In contrast, indi-
rect costs in the solutions business increased by CHF 47
million as a result of business growth. Headcount in full-
time equivalents fell by 67 full-time equivalent employ-
ees (–0.5%). Headcount saw a decline in customer sup-
port and a rise in the area of IT. There was also an
increase here as a result of the acquisition of the MTF
Group (+154 full-time equivalent employees).
The segment result before depreciation and amortisa-
tion improved by 0.9%; when adjusted for the above-men-
tioned non-recurring item, this figure rises to 3.4%.
Investments rose by CHF 56 million (+3.4%). Investment
in transport networks and backbone infrastructure in
particular saw an increase, while spending on the expan-
sion of the broadband and mobile networks shrank.
Revenue telecom services
in CHF million
6,228
5,952
5,667
5,498
5,449
2018
2019
2020
2021
2022
47
Fastweb
In EUR million, except where indicated
2022
2021
Change
in %
Net revenue and results
Residential Customers
Corporate Business
Wholesale
Revenue from external customers
Intersegment revenue
Net revenue
Segment expenses
Segment result before depreciation and amortisation (EBITDA)
Margin as % of net revenue
Lease expense
Depreciation and amortisation
Segment result
Operating free cash flow proxy
Segment result before depreciation and amortisation (EBITDA)
Lease expense
EBITDA after lease expense (EBITDA AL)
Capital expenditure
Operating free cash flow proxy
Operational data in thousand and full-time equivalent employees
Broadband access lines retail
Broadband access lines wholesale
Mobile access lines
Headcount
1,145
1,015
315
2,475
7
2,482
(1,628)
854
34 .4
(57)
(600)
197
854
(57)
797
(616)
181
2,683
458
3,087
3,039
1,142
979
263
2,384
8
2,392
(1,566)
826
34 .5
(54)
(590)
182
826
(54)
772
(601)
171
2,750
306
2,472
2,753
3
36
52
91
(1)
90
(62)
28
(3)
(10)
15
28
(3)
25
(15)
10
(67)
152
615
286
0 .3%
3 .7%
19 .8%
3.8%
–12 .5%
3.8%
4 .0%
3.4%
5 .6%
1 .7%
8.2%
3 .4%
5 .6%
3.2%
2 .5%
5.8%
–2 .4%
49 .7%
24 .9%
10 .4%
Fastweb’s net revenue rose by 3.8% to EUR 2,482 million.
Competition remained fierce. In view of the very chal-
lenging market conditions and the pursued value strat-
egy, its broadband customer base contracted year-on-
year by 67,000 customers (–2.4%). The proportion of
ultra-fast broadband connections increased by 4 per-
centage points to 86%. The number of mobile access
lines increased by 615,000 (+25%) to 3.1 million, with
bundled offerings continuing to play an important role
here. 41% of broadband customers used a bundled offer-
ing combining fixed network and mobile. Revenue from
residential customers remained largely stable (+0.3%).
By contrast, revenue from business customers increased
by 3.7%, driven by the strong market position, particu-
larly in the area of public administration. Wholesale rev-
enues increased by 19.8% or EUR 52 million to EUR 315
million. Key drivers here were growth in the number of
wholesale broadband connections (+50%) as well as the
sale of long-term right-of-use assets (IRU).
Segment expenses increased by EUR 62 million (+4.0%).
Driven by sales growth, the segment result before
depreciation and amortisation increased by EUR 28 mil-
lion (+3.4%). Capital expenditure increased by 2.5% to
EUR 616 million due to an increase in customer-driven
investment. Headcount increased by 10.4% or 286 FTEs
to 3,039 FTEs as the company took on external staff and
the growth created a need for more personnel.
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Other Operating Segments
In CHF million, except where indicated
Net revenue and results
Revenue from external customers
Intersegment revenue
Net revenue
Segment expenses
Segment result before depreciation and amortisation (EBITDA)
Margin as % of net revenue
Lease expense
Depreciation and amortisation
Segment result
Operating free cash flow proxy
Segment result before depreciation and amortisation (EBITDA)
Lease expense
EBITDA after lease expense (EBITDA AL)
Capital expenditure
Operating free cash flow proxy
Full-time equivalent employees
Headcount
Net revenue for the Other operating segments rose
slightly by 0.5% or CHF 5 million to CHF 1,038 million.
The segment result before depreciation and amortisa-
tion shrank by 3.6% or CHF 6 million to CHF 160 million
as a consequence of lower profitability at cablex, which
saw the profit margin narrow to 15.4% (prior year:
16.1%). Headcount was at 3,296 full-time equivalents,
and was therefore almost on a par with the previous
year (+1.0%).
2022
2021
Change
in %
417
621
1,038
(878)
160
15 .4
(10)
(49)
101
160
(10)
150
(34)
116
431
602
1,033
(867)
166
16 .1
(11)
(56)
99
166
(11)
155
(41)
114
(14)
19
5
(11)
(6)
(1)
1
7
2
(6)
1
(5)
7
2
–3 .2%
3 .2%
0.5%
1 .3%
–3.6%
–4 .1%
–9 .1%
–12 .5%
2.0%
–3 .6%
–9 .1%
–3.2%
–17 .1%
1.8%
3,296
3,263
33
1 .0%
Reconciliation of pension cost and
intersegment elimination
Reconciliation of pension cost and intersegment elimina-
tion are not allocated to the operating segments. The rec-
onciliation item for pension cost is the difference between
employer contributions and the pension cost under IFRS.
Intersegment elimination relates to intragroup profits on
capitalised services of other Group companies. 2021
includes an extraordinary reduction in pension cost of
CHF 60 million due to a plan amendment. For this reason,
a higher negative EBITDA resulted in the reconciliation
item in 2022 (CHF –94 million) than in the prior year
(CHF –33 million).
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Depreciation and amortisation, non-operating results
In CHF million, except where indicated
Operating income before depreciation and amortisation (EBITDA)
Depreciation and amortisation of property, plant and equipment
and intangible assets
Depreciation of right-of-use assets
Operating income (EBIT)
Net interest expense for financial assets and liabilities
Interest expense on lease liabilities
Other financial result
Result of equity-accounted investees
Income before income taxes
Income tax expense
Net income
Earnings per share (in CHF)
2022
4,406
(2,104)
(262)
2,040
(57)
(44)
29
(5)
1,963
(360)
1,603
30 .93
2021
4,478
(2,131)
(281)
2,066
(60)
(44)
200
(10)
2,152
(319)
1,833
35 .37
Change
(72)
27
19
(26)
3
–
(171)
5
(189)
(41)
(230)
in %
–1.6%
–1 .3%
–6 .8%
–1.3%
–5 .0%
0 .0%
–85 .5%
–50 .0%
–8.8%
12 .9%
–12.5%
(4 .44)
–12 .6%
Net income decreased by 12.5% year-on-year to CHF 1,603
million. The main reasons for the CHF 230 million decline
in profit are the non-recurring items in EBITDA (CHF 146
million), in the financial result (CHF 207 million) and in
income tax expense (CHF 57 million). Adjusted for these
items, net income increased by CHF 180 million. The
non-recurring effects in EBITDA relate to provisions for
legal proceedings and termination benefits as well as, in
the previous year, a positive effect from the adjustment
to the pension plan. Depreciation and amortisation of
property, plant and equipment, intangible assets and
rights of use decreased by CHF 46 million year-on-year,
mainly as a result of currency effects. The currency trans-
lation of Fastweb resulted in a decrease of CHF 57 million.
The non-recurring items of CHF 207 million in the finan-
cial result were incurred in the previous year in connec-
tion with the transfer of a Fastweb stake in Flash Fiber to
FiberCop (CHF 169 million) and from the sale of its stake in
Belgacom International Carrier Services (CHF 38 million).
The non-recurring item in the tax expense for 2021 relates
to the capitalisation of deferred tax assets of CHF 57 mil-
lion at Fastweb.
Income taxes
In CHF million, except where indicated
Switzerland
Italy
Other countries
Total
2022 financial year
Income before income taxes
Income tax expense
Effective income tax rate
Income taxes paid
2021 financial year
Income before income taxes
Income tax expense
Effective income tax rate
Income taxes paid
1,779
316
17 .8%
361
1,827
339
18 .6%
264
168
42
16
2
25 .0%
12 .5%
17
306
(22)
–
19
2
–7 .2%
10 .5%
15
–
1,963
360
18 .3%
378
2,152
319
14 .8%
279
The effective income tax rate is 18.3% (prior year: 14.8%).
The 2021 expense was positively influenced by the low
rate of tax on income from participations and a capitali-
sation of deferred tax assets of CHF 57 million in connec-
tion with a change in Italian tax laws. Swisscom antici-
pates a future effective consolidated tax rate of 19%.
The CHF 99 million increase in income taxes paid to
CHF 378 million was attributable to back-payments for
previous financial years.
Cash flows
In CHF million
Operating income before depreciation and amortisation (EBITDA)
Lease expense
EBITDA after lease expense (EBITDA AL)
Capital expenditure
Operating free cash flow proxy
Change in net working capital
Change in defined benefit obligations
Net interest payments on financial assets and liabilities
Income taxes paid
Other operating cash flow
Free cash flow
Dividends paid to equity holders of Swisscom Ltd
(Acquisition) disposal of companies
Other changes 1
Decrease in net debt
1 Includes foreign currency effects, fair value adjustments and non-cash changes in
net debt positions.
2022
4,406
(286)
4,120
(2,309)
1,811
(64)
49
(60)
(378)
(9)
1,349
(1,140)
(69)
192
332
2021
4,478
(301)
4,177
(2,286)
1,891
(19)
(9)
(67)
(279)
(4)
1,513
(1,140)
105
22
500
Change
(72)
15
(57)
(23)
(80)
(45)
58
7
(99)
(5)
(164)
–
(174)
170
(168)
The operating free cash flow proxy decreased by CHF 80
million year-on-year, mainly due to lower EBITDA. The
lower operating free cash flow proxy and higher income
tax payments led to a decrease in free cash flow of
CHF 164 million. The free cash flow of CHF 1,349 million
was used to finance the dividend of CHF 1,140 million,
the business acquisitions and a reduction of net debt.
Capital expenditure
In CHF million, except where indicated
Fixed access and infrastructure
Expansion of the fibre-optic network
Mobile network
Projects and others
Swisscom Switzerland
Fastweb
Other Operating Segments
Elimination (intermediate winnings)
Total capital expenditure
Thereof Switzerland
Thereof other countries
Capital expenditure as % of net revenue
2022
555
480
282
381
2021
428
555
324
335
1,698
1,642
619
34
(42)
2,309
1,688
621
20 .8
649
41
(46)
2,286
1,634
652
20 .4
Change
127
(75)
(42)
46
56
(30)
(7)
4
23
54
(31)
0 .4
in %
29 .7%
–13 .5%
–13 .0%
13 .7%
3.4%
–4 .6%
–17 .1%
–8 .7%
1.0%
3 .3%
–4 .8%
Capital expenditure continued to be substantial in 2022
at CHF 2,309 million or 20.8% of net revenue. The share
of investments in Switzerland is 73% or CHF 1,688 mil-
lion. Swisscom Switzerland’s investments were 3.4%
higher than in the previous year. Investment in transport
networks and backbone infrastructure increased, while
spending on expansion of the broadband and mobile
networks shrank. Fastweb’s investments increased by
2.5% in local currency to EUR 616 million due to higher
customer-driven investments.
51
Net asset position
In CHF million
Property, plant and equipment
Intangible assets
Goodwill
Right-of-use assets
Trade receivables
Receivables from finance leases
Trade payables
Provisions
Deferred gain on sale and leaseback of real estate
Other operating assets and liabilities, net
Net operating assets
Net debt
Defined benefit assets and obligations, net
Income tax assets and liabilities, net
Equity-accounted investees and other non-current financial assets
Equity
Equity ratio
31.12.2022
31 .12 .2021
Change
10,811
10,771
1,741
5,172
1,992
2,255
131
(1,674)
(1,159)
(85)
(218)
18,966
(7,374)
(11)
(829)
419
1,714
5,157
2,134
2,315
99
(1,600)
(1,149)
(95)
(438)
18,908
(7,706)
(13)
(835)
459
11,171
10,813
45 .4
43 .6
40
27
15
(142)
(60)
32
(74)
(10)
10
220
58
332
2
6
(40)
358
1 .8
Operating assets
Net operating assets were virtually unchanged at
CHF 19.0 billion, Goodwill was at CHF 5.2 billion, the bulk
of which relates to Swisscom Switzerland (CHF 4.3 bil-
lion). This goodwill arose primarily in 2007 in connection
with the repurchase of the 25% stake in Swisscom
Mobile Ltd sold to Vodafone in 2001. The valuation risk
of this goodwill item is very low. The carrying amount of
goodwill for Fastweb is CHF 0.5 billion. In total, the carry-
ing amount of Fastweb’s net assets amounts to EUR 3.4
billion (CHF 3.4 billion).
Post-employment benefits
The net defined benefit obligations in accordance with
IFRS provisions amount to CHF 11 million (prior year:
CHF 13 million). According to Swiss accounting standards
(Swiss GAAP FER), the Swisscom pension fund has a fund-
ing surplus of CHF 1.1 billion and an estimated funding
ratio of 108% as per the provisional financial statements
for 2022. Due to different assumptions and methods,
the valuation according to IFRS results in a surplus of
only CHF 0.6 billion. Due to specific IFRS regulations,
most of the surplus was not capitalised.
The pension cost in accordance with IFRS was CHF 53 mil-
lion higher than regulatory employer contributions in
2022. In the previous year, a positive EBITDA effect of
CHF 60 million was incurred in connection with a plan
amendment. Because the interest rate relevant for IFRS
measurement has increased significantly, the IFRS provi-
sion expense in 2023 is expected to decrease by approxi-
mately CHF 90 million compared with 2022.
Equity
Swisscom has equity of CHF 11.2 billion and an equity
ratio of 45.4%. Equity increased year-on-year by CHF 0.4
billion, mainly due to retained earnings. The determina-
tion of distributable reserves is based on the financial
statements of Swisscom Ltd (separate financial state-
ments according to Swiss Code of Obligations) and not
on the consolidated financial statements according
under IFRS. The equity of Swisscom Ltd in the 2022
financial statement is CHF 7.9 billion. The difference as
compared to the equity reported in the consolidated
balance sheet is largely due to earnings retained by sub-
sidiaries and different accounting methods.
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Net debt
In CHF million
Net debt
Debenture bonds
Bank loans
Private placements
Other financial liabilities
Lease liabilities
Financial liabilities and lease liabilities
Cash and cash equivalents
Listed debt instruments
Other financial assets
Net debt
Debt ratio
Net debt
EBITDA
Ratio net debt/EBITDA
31.12.2022
31 .12 .2021
Change
4,886
5,564
512
322
282
1,911
7,913
(121)
(285)
(133)
7,374
7,374
4,406
1.7
488
151
242
2,017
8,462
(401)
(278)
(77)
7,706
7,706
4,478
1.7
(678)
24
171
40
(106)
(549)
280
(7)
(56)
(332)
(332)
(72)
–
The ratio of net debt to EBITDA at the end of 2022
remained unchanged at 1.7x. The ratio reflects the solid
debt situation. In the year under review, Swisscom met its
target of maintaining a single-A credit rating. It also
complied with the limit on net debt set by the Federal
Council in the financial targets of 2.4x EBITDA.
At the end of 2022, the proportion of fixed-interest-bear-
ing financial liabilities was 82%, the average interest
cost of all financial liabilities was 1.05% and the average
remaining term to maturity was 5.4 years. Swisscom also
has two lines of credit totalling CHF 2.2 billion, which have
not been used. In 2023, bank loans and bonds totalling
CHF 0.5 billion will become due for repayment.
Development of net debt
in CHF million
7,706
1,140
69
–1,349
7,374
–192
Net debt
1 .1 .2022
Free cash flow
Dividend
payment
M&A
net expenditures
Other
effects
Net debt
31.12.2022
53
Statement of added value
In CHF million
Added value
Net revenue
Capitalised self-constructed assets and other income
Direct costs
Other operating expense 1
Lease expense
Depreciation and amortisation 2
Intermediate inputs
Operating added value
Other non-operating result 3
Total added value
Allocation of added value
Employees 4
Public sector 5
Shareholders (dividends)
Third-party lenders (net interest expense)
Company (retained earnings) 6
Total added value
Switzer-
land
Other
countries
2022
Total
Switzer-
land
Other
countries
2021
Total
8,627
2,485
11,112
8,579
2,604
11,183
513
(1,814)
(1,296)
(229)
155
(873)
(679)
(57)
668
459
(2,687)
(1,840)
(1,975)
(1,184)
(286)
(243)
(1,501)
(601)
(2,102)
(1,500)
139
(939)
(661)
(58)
(635)
(4,327)
(2,055)
(6,382)
(4,308)
(2,154)
4,300
430
4,730
4,271
450
2,396
290
256
59
(41)
4,689
2,652
2,412
320
349
1,141
58
489
4,689
269
17
598
(2,779)
(1,845)
(301)
(2,135)
(6,462)
4,721
126
4,847
2,681
337
1,141
60
628
4,847
1 Other operating expense: excl. taxes on capital and other taxes not based on
4 Employees: employer contributions are reported as pension cost, rather than as
income.
expenses according to IFRS.
2 Depreciation and amortisation: excl. amortisation of acquisition-related intangi-
5 Public sector: current income tax expense, capital taxes and other taxes not
ble assets such as brands or customer relations.
3 Other non-operating result: financial result excl. net interest expense, result of
equity-accounted investees, and amortisation of acquisition-related intangible
assets.
based on income. Excl. payments for VAT and mobile communication frequencies.
6 Company: incl. changes in deferred income taxes and defined benefit obligations.
Thanks to a modern, high-performance network infra-
structure and a comprehensive, needs-driven service
offering, Swisscom makes an important contribution to
Switzerland’s competitiveness and economic success.
Of the consolidated operating added value of CHF 4.7
billion, Swisscom generated 91% or CHF 4.3 billion in
Switzerland. Operating added value in Switzerland
remained stable year-on-year. The added value per FTE
in Switzerland was CHF 271,000
(prior year:
CHF 267,000). Including capital expenditure, the pur-
chasing volume in the Swiss business was around
CHF 4.5 billion in 2022 (prior year: CHF 4.4 billion). In
addition to direct added value, purchases from suppli-
ers provided significant indirect added value for Swit-
zerland’s economy.
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Financial outlook
Key figures or as noted
Net revenue
Swisscom Group
Switzerland 2
Fastweb
Operating income before depreciation and amortisation (EBITDA)
Swisscom Group
Switzerland 2
Fastweb
Capital expenditure
Swisscom Group
Switzerland 2
Fastweb
2022 reported
2023 outlook
3
CHF 11,112 million
CHF 11.1–11.2 billion
CHF 8,619 million
EUR 2,482 million
~ CHF 8 .6 billion
EUR 2 .5–2 .6 billion
CHF 4,406 million
CHF 3,549 million
EUR 854 million
CHF 2,309 million
CHF 1,690 million
EUR 616 million
CHF 4,6–4,7 billion
1
CHF 3 .7–3 .8 billion
~ EUR 0 .9 billion
~ CHF 2.3 billion
~ CHF 1 .7 billion
~ EUR 0 .6 billion
1 EBITDA after lease expense (EBITDA AL) 2022: CHF 4,120 million;
EBITDA AL guidance 2023: ~ CHF 4.3-4.4 billion.
2 Swisscom w/o Fastweb.
3 Exchange rate CHF/EUR 1.00 (2022: CHF/EUR 1.00).
Subject to achieving its targets, Swisscom plans to pro-
pose payment of an attractive unchanged dividend of
CHF 22 per share for the 2023 financial year at the 2024
Annual General Meeting.
Revenue and EBITDA Switzerland and Fastweb
in million
8,630
8,600
8,619
3,542
2,304
3,586
2,392
3,549
2,482
784
826
854
Revenue
EBITDA
Revenue
EBITDA
Revenue
EBITDA
2020
2021
2022
Switzerland w/o Fastweb in CHF
Fastweb in EUR
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Capital market
Market value
CHF 26.2 billion
Swisscom market capitalisation
at the end of 2022.
Total shareholder return
+2.5%
Credit rating
Single A
Total shareholder returns achieved
by the Swisscom share for 2022.
Rating was confirmed by
Standard & Poor’s and Moody’s
Swisscom share
In CHF million, except where indicated
Number of issued shares
Closing price at end of period
Closing price highest
Closing price lowest
Market capitalisation
Dividend per share
Total dividend
Dividend return
Change in Swisscom share price
Change in SMI
Change in STOXX Europe Telco 600 (in EUR)
Total shareholder return Swisscom share
Total shareholder return SMI
Total shareholder return STOXX Europe Telco 600 (in EUR)
In an extremely difficult market environment, the
Swisscom share fell by 1.6% in 2022, which was signifi-
cantly less than the SMI (–16.7%) or the index of Euro-
pean telecommunications providers
(–17.7%). The
Swisscom share offers an attractive dividend yield of
4.3%. At +2.5%, it achieved a significantly better total
shareholder return (TSR) in 2022 than either the SMI
(–14.3%) or the STOXX Europe 600 Telecommunications
Index (–14.0%).
N See www.swisscom.ch/shareprice
Dividend policy
Swisscom pursues a return policy with a stable dividend.
Since 2006, the dividend per share has been CHF 22. For
the financial year 2022, the Board of Directors will again
propose a dividend of CHF 22 to the Annual General
Meeting. The total dividend of CHF 1,140 million corre-
sponds to 85% of the free cash flow for 2022. Since the
initial public offering in 1998, the total amount distrib-
uted has equated to CHF 36 billion and the average
31.12.2022
31 .12 .2021
51,802
506 .60
590 .40
443 .40
26,243
22 .00
1,140
4 .3
(1 .6)
(16 .7)
(17 .7)
2 .5
(14 .3)
(14 .0)
51 .802
514 .60
562 .40
456 .30
26,657
22 .00
1,140
4 .6
7 .9
20 .3
11 .3
11 .5
23 .7
16 .1
CHF
CHF
CHF
CHF
%
%
%
%
%
%
%
annual total shareholder return has equated to 4.5%
(excluding reinvestment).
Credit ratings and financing
Swisscom enjoys good credit ratings from the Standard
& Poor’s and Moody’s rating agencies, at A (stable) and
A2 (stable) respectively. Swisscom aims to maintain the
single-A credit ratings. To avoid structural downgrading,
Swisscom endeavours to raise financing at the level of
Swisscom Ltd. Swisscom is widely diversifying its debt
portfolio and paying particular attention to balancing
maturities and diversification of financing instruments,
markets and currencies. Swisscom’s solid financing gave
it unrestricted access to money and capital markets
again in 2022.
Value-oriented business management
Key performance indicators for planning and manag-
ing business operations are revenue, operating income
before depreciation and amortisation (EBITDA) and
capital expenditure. The enterprise value/EBITDA ratio
permits comparison with the value of comparable
companies (European telecommunications compa-
nies) and with its own figure for the prior year. The
members of the Board of Directors and Group Execu-
tive Board are paid a portion of their remuneration in
the form of Swisscom shares, which are blocked for a
period of three years. They are also subject to a mini-
mum shareholding requirement. Variable remunera-
tion based on financial and non-financial targets, the
partial settlement of remuneration in shares and the
minimum shareholding requirement ensure that the
financial interests of management are aligned with
the interests of shareholders.
In CHF million, except where indicated
31.12.2022
31 .12 .2021
Change
Enterprise value
Market capitalisation
Net debt
Defined benefit assets and obligations, net
Income tax assets and liabilities, net
Equity-accounted investees and other non-current financial assets
Non-controlling interests
Enterprise value (EV)
Operating income before depreciation and amortisation (EBITDA)
Ratio enterprise value/EBITDA
26,243
7,374
11
829
(419)
3
34,041
4,406
7.7
26,657
7,706
13
835
(459)
2
34,754
4,478
7.8
(414)
(332)
(2)
(6)
40
1
(713)
(72)
(0.1)
Swisscom’s enterprise value fell by CHF 0.7 billion (–2.0%)
to CHF 34 billion in 2022. The main reasons were, on the
one hand, a decrease in market capitalisation (CHF –0.4
billion) and, on the other hand, a decrease in net debt
(CHF –0,3 billion). The enterprise value/EBITDA ratio of
7.7x is slightly lower than the prior-year figure. Measured
against this ratio, Swisscom’s relative valuation is well
above the average for comparable companies in Europe’s
telecoms sector. The higher relative valuation is sup-
ported by Swisscom’s solid market position and attrac-
tive dividend. In addition, the lower interest rates and
lower corporate income tax rates in Switzerland com-
pared with other European countries have a positive
effect on its enterprise value.
Share performance 2022
in CHF
600
500
400
300
.
1
2
2
1
2
2
1
0
.
2
2
2
0
.
2
2
3
0
.
.
2
2
4
0
2
2
5
0
.
.
2
2
6
0
.
2
2
7
0
2
2
8
0
.
2
2
9
0
.
2
2
0
1
.
2
2
1
1
.
2
2
2
1
.
Swisscom
SMI (indexed)
Stoxx Europe 600 Telcos (in CHF, indexed)
CHF 507
Closing price
Swisscom share
31 .12 .2022
57
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Risks
Competitive dynamics
Revenue devel-
opment in core
business
Swisscom is countering the risk
of disruptive megatrends through
comprehensive environment
analyses, fundamental transformation
and increasing its own efficiency.
Politics
Regulation
Swisscom’s wide range of business
activities, coupled with the complex-
ity of the applicable regulations,
calls for an effective compliance
management system.
Geopolitics
Inflation, supply
bottlenecks
and currencies
Swisscom takes steps on an
ongoing basis to enable it to respond
appropriately to geopolitical
developments.
Risk situation
Sales in the core business of Swisscom are under pressure
from intense competition. New offerings in the areas of
digitisation and IT services, such as cloud services, IT secu-
rity and IoT solutions, are intended to compensate at least
in part for sagging revenue from the core business. Market
developments result in changes to the business model and
demand both a profound transformation of Swisscom’s
own company as well as greater efficiency. Some of the key
risk factors are described below. The risk factors arising in
the supply chain are described in the Sustainability Report.
N See www.swisscom.ch/cr-report2022
Risk factors
Competitive dynamics
in the telecommunications market
Competitive dynamics are currently being driven by
infrastructure providers and service providers without
their own network infrastructure. Swisscom is counter-
ing this pressure and the development of revenue from
the traditional telecommunications business by trans-
forming the company as well as through constant inno-
vation. Megatrends such as increasing connectivity, cus-
tomisation of customer needs, and demographic change
are indelibly shaping and altering both society and the
economy and have a long-term impact on the activities
of Swisscom. Swisscom conducts a comprehensive
external environment analysis at least once a year in
order to identify potential disruptions at an early stage.
It uses the future trends and developments identified by
the analysis in a targeted manner: for example, to cate-
gorise new, potentially disruptive developments and to
model possible scenarios in a timely manner. Swisscom
also produces regular analyses of the economic and reg-
ulatory environment. It also examines the activities of
global Internet corporations in greater depth to identify
relevant changes and respond with appropriate meas-
ures. To respond to changes in the market, Swisscom
consistently focuses on customer needs when trans-
forming its own company and optimises or adapts its
processes and organisation.
Policy, regulation and compliance
The manner in which regulations are implemented
entails risks for Swisscom, which could have an adverse
impact on the company’s financial position and results
of operations. Sanctions by the Competition Commis-
sion could also reduce Swisscom’s operating results and
cause reputational damage to the company. Finally,
excessively high political demands threaten to funda-
mentally undermine the current competitive system.
Swisscom’s wide range of business activities, coupled
with the complexity of the applicable regulations, calls
for an effective compliance management system (CMS).
Swisscom’s central CMS covers the entire Group. It was
redesigned in line with the ISO-37301 standard during
the year under review.
Geopolitical development
Geopolitical developments pose the risk of sustained
inflation, shortages of goods or delays in deliveries, as
well as recession or stagflation in general. The limited
availability of goods and the shortage of various compo-
nents can lead to increased costs, delivery delays and
reduced deliveries. To enable it to respond appropriately
to geopolitical developments, Swisscom reviews and
implements measures on an ongoing basis. It also pur-
sues a successful hedging strategy, thereby minimising
the risk of losses that can arise as a result of fluctuating
foreign exchange rates.
Increasing bandwidth in the access network
Customer demand for broadband access is growing rap-
idly, as is the growing popularity of mobile devices and
IP-based (Internet Protocol-based) services (smart-
phones, IPTV, OTTs, etc.). Swisscom faces tough compe-
tition from cable companies and other network opera-
tors as it strives to meet current and future customer
needs and defend its own market share. The network
expansion this necessitates calls for major investments.
To mitigate financial risks and ensure optimum network
coverage, network expansion is geared towards popula-
tion density and customer demand. Swisscom enters
into partnerships for network expansion. Substantial
risks would arise if Swisscom were forced to spend more
on network expansion than planned or if projected long-
term earnings were to fall. Swisscom minimises the risks
by adapting the broadband expansion of the access net-
work to changing conditions and technical opportunities
on an ongoing basis.
Competitive dynamics
and regulation in Italy
The competitive dynamics in Italy carry risks that have a
detrimental impact on Fastweb’s strategy and could jeop-
ardise projected revenue growth as a result. In particular,
risks may arise in connection with the entry of new com-
petitors in the market. Fastweb is countering this pres-
sure by constantly adapting its services, organisation,
processes and partnerships. Changes in the legal and reg-
ulatory environment can have a negative impact on busi-
ness activities and thus on the value of the company.
Business interruption
Usage of Swisscom Switzerland’s and Fastweb’s services
is heavily dependent on technical infrastructure such as
communications networks and IT platforms. Any major
disruption to business operations poses a financial risk
as well as a substantial reputational risk. Force majeure,
natural disasters, human error, hardware or software
failure, criminal acts by third parties (e.g. computer
viruses, hacking activities), power outages, power short-
ages and the ever-growing complexity and interdepend-
ence of modern technologies can cause damage or inter-
ruption to operations. Built-in redundancy, contingency
plans, deputising arrangements, alternative locations,
careful selection of suppliers and other measures are
designed to ensure that Swisscom can deliver the level
of service that customers expect at all times. As a sys-
temically important company, Swisscom also wants to
do its part to minimise the risk of a power shortage.
Information and security technologies
Swisscom’s complex IT architecture entails risks during
both the implementation and operating phases. These
risks have the potential to delay the rollout of new ser-
vices, result in additional costs and impact Swisscom’s
competitiveness. The transformation is being closely
monitored by the Group Executive Board. Changes and
developments in technology, the economy and society
interact to shape the area of Internet security because
continuous innovations and the opportunities they bring
lead not only to opportunities, but also to new risks.
Despite the fact that preventing cyber attacks is becom-
ing increasingly difficult due to the rise in the number of
potential threats, the objective is to identify these risks
at an early stage, systematically document them and
take appropriate steps to sustainably reduce them.
Health and the environment
In the year under review, claims were again made that
electromagnetic radiation (e.g. from mobile antennas or
mobile handsets) is potentially harmful to health. Under
the terms of the Ordinance on Non-Ionising Radiation
(ONIR), Switzerland has adopted a precautionary princi-
ple and introduced limits for base stations that are ten
times stricter than both those prescribed by the WHO
and the legal provisions in neighbouring countries and
that apply to all mobile frequencies (including 5G). The
public’s wary attitude towards 5G, particularly if ques-
tions arise concerning locations for mobile communica-
tion antennas, is impeding Swisscom Switzerland’s net-
work expansion. Even without stricter legislation, public
concerns about the effects of electromagnetic radiation
on the environment and health could further hamper
the construction of wireless networks in the future and
drive up costs.
59
Corporate Governance
and Remuneration Report
Corporate Governance _______ 1 Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
2 Group structure and shareholders . . . . . . . . . . . . . . . . . . . 62
3 Capital structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
4 Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
5 Group Executive Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
6 Remuneration, shareholdings and loans . . . . . . . . . . . . . 84
7 Shareholders’ participation rights . . . . . . . . . . . . . . . . . . . . 84
8 Change of control and defensive measures . . . . . . . . . . 85
9 Auditor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
10 Information policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
11 Financial calendar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Remuneration Report ________ 1 Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
2 Remuneration of the Board of Directors . . . . . . . . . . . . . 91
3 Remuneration of the Group Executive Board . . . . . . . . 95
4 Other remuneration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
5 Activities at other companies . . . . . . . . . . . . . . . . . . . . . . . 101
6 Gender representation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
Report of the statutory auditor . . . . . . . . . . . . . . . . . . . . . . . . . 102
61
Corporate Governance
Majority shareholder
51%
of the shares are held by the
Swiss Confederation (‘Confederation’)
as the main shareholder.
Organisation
Christoph
Aeschlimann
has been the new Swisscom CEO
since June 2022.
Board of Directors by gender
33%
is the proportion of women on
the Board of Directors at the end
of 2022.
1 Principles
In performing their activities, the Board of Directors and
Group Executive Board of Swisscom are guided by the
objective of sustainable business management. They
incorporate the interests of Swisscom shareholders, cus-
tomers, employees and other interest groups into their
decisions. To this end, the Board of Directors practises
effective, transparent corporate governance, which is
characterised by clearly assigned responsibilities and
based on recognised standards. In this regard, Swisscom
complies with the recommendations of the Swiss Code
of Best Practice for Corporate Governance 2014 issued by
economiesuisse, the umbrella organisation representing
Swiss business, and the requirements of the Ordinance
against Excessive Compensation in Listed Stock Compa-
nies (OaEC), which have been carried over to the Federal
Act on the Amendment of the Swiss Civil Code (Swiss
Code of Obligations) as of 1 January 2023.
N See www.swisscom.com/amendment_cc
The interaction of investors, proxy advisors and other
stakeholder groups with the respective specialist divi-
sions at Swisscom allows the Board of Directors to iden-
tify trends at an early stage and to adjust its corporate
governance to new requirements as and when necessary.
Swisscom’s principles and rules on corporate governance
are set out primarily in the company’s Articles of Incorpo-
ration, Organisational Rules and the Rules of Procedure
of the Board of Directors’ committees. Of particular
importance is the Code of Conduct approved by the
Board of Directors. It contains an explicit declaration by
Swisscom of its commitment to absolute integrity as
well as compliance with the law and all other external
and internal rules and regulations. Swisscom expects its
employees to take responsibility for their actions, show
consideration for people, society and the environment,
comply with applicable rules, demonstrate integrity and
report any violations of the Code of Conduct.
The latest versions of these documents as well as their
earlier, unamended and superseded versions can be
viewed online on the Swisscom website under ‘Basic
principles’.
N See www.swisscom.ch/basicprinciples
2 Group structure and shareholders
2.1 Group structure
Operational Group structure
Swisscom Ltd is a holding company and responsible for
the overall management of the Swisscom Group. On
31 December 2022, the Group comprised the five Group
divisions of Group Business Steering, Group Human
Resources, Group Strategy & Board Services, Group Com-
munications & Responsibility, and Group Security, which
have staff functions, as well as the business divisions
Residential Customers, Business Customers, IT Network
& Infrastructure, and Digital Business. These are joined
by several Group companies, including Fastweb S.p.A.
Società in Italy.
The Board of Directors of Swisscom Ltd delegates day- to-
day business management to the CEO of Swisscom Ltd. The
Group Executive Board is comprised of the CEO of Swisscom
Ltd and the heads of the Group divisions Group Business
Steering (CFO) and Group Human Resources (CPO), plus the
heads of the business divisions Residential Customers,
Business Customers, and IT Network & Infrastructure.
Selective changes will be made to the
Group divisions as of 1 January 2023 .
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t The operational Group structure as at 1 January 2023 is
shown in the organisational chart below. The new
Group Strategy & Development division is responsible
for identifying and developing new growth areas in
Switzerland and abroad. The Group Security & Corpo-
rate Affairs division, which was also newly created,
combines and develops all the Group’s assurance func-
tions. The existing Group divisions Group Strategy &
Board Services and Group Security as well as the busi-
ness division Digital Business have been integrated into
the two new Group divisions on a topic-specific basis.
Board of Directors
CEO Swisscom Ltd
Internal Audit
Group Communications
& Responsibility
Group Security
& Corporate Affairs
Group Strategy
& Business Development
Residential
Customers
Business
Customers
IT, Network
& Infrastructure
Group Business
Steering
Group Human
Resources
Fastweb
Group Executive Board
The business activities are carried out by Swisscom Group
companies. Strategic and financial management
is
assured through the rules governing the assignment of
powers and responsibilities set by the Board of Directors
of Swisscom Ltd. The Group companies are divided into
three categories: strategic,
important and other.
Swisscom Ltd, Swisscom (Switzerland) Ltd and Fastweb
S.p.A. are classified as strategic companies. The members
of the Board of Directors and the managing directors of
the strategic companies are appointed by the Board of
Directors of Swisscom Ltd and elected via the competent
statutory bodies. The Board of Directors of Swisscom
(Switzerland) Ltd comprises the CEO of Swisscom Ltd as
Chairman, the CFO of Swisscom Ltd and the Head of Busi-
ness Customers. The CEO of Swisscom Ltd is responsible
for the executive management of Swisscom (Switzerland)
Ltd. Seats on the Board of Directors of Fastweb S.p.A. are
held by the CEO of Swisscom Ltd, who acts as Chair,
together with the CFO of Swisscom Ltd as well as one rep-
resentative of Swisscom’s management. The Board of
Directors is supplemented by an independent external
member and the delegate of the Board of Directors, who
has been empowered with the executive management
of the company. Fastweb controls two subsidiaries. All
other Swisscom Group companies are assigned to a
Group division or business division for management pur-
poses. The members of the Board of Directors of the
other Group companies and their managing directors
are appointed by the CEO of Swisscom Ltd. In some
cases, external parties also serve as members of the
Board of Directors. A list of Group companies, including
company name, registered office, percentage of shares
held and share capital, is provided in Note 5.4 to the con-
solidated financial statements.
D See report pages 159–160
For financial reporting purposes, Swisscom’s business divi-
sions and Group companies are allocated to individual seg-
ments. Further information on segment reporting can be
found in the Management Commentary.
D See report page 42
Listed company
Swisscom Ltd is a company governed by Swiss law and has
its registered office in Ittigen (Canton of Berne, Switzer-
land). It is listed in the Standard for Equity Securities,
Sub-Standard International Reporting, of the SIX Swiss
Exchange (Securities No.: 874251; ISIN: CH0008742519;
ticker symbol SCMN).
Trading in the United States is conducted over the coun-
ter (OTC) as a Level 1 programme (ticker symbol: SCMWY;
ISIN: CH008742519; CUSIP for ADR: 871013108). Within
the framework of the programme, the Bank of New York
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Mellon Corporation issues the American Depositary
Shares (ADS). ADS are American securities that represent
Swisscom shares. Ten ADS correspond to one share. The
ADS are evidenced by American Depositary Receipts (ADR).
As at 31 December 2022, the stock market capitalisation
of Swisscom Ltd was CHF 26,243 million. There are no
other listed companies in the Swisscom Group.
2.2 Major shareholders
Pursuant to Article 120 of the Federal Act on Financial
Market Infrastructures and Market Conduct in Securities
and Derivatives Trading (Financial Market Infrastructures
Act; FMIA), there is a duty to disclose a shareholding to
Swisscom Ltd and SIX Swiss Exchange whenever the share
of a person or group subject to the disclosure obligation
reaches, exceeds or falls below 3, 5, 10, 15, 20, 25, 331/3,
50 or 662/3 per cent of the voting rights of Swisscom Ltd,
irrespective of whether or not the voting rights can be
exercised. The detailed disclosure requirements and the
calculation method are defined in the FINMA Financial
Market
(FinMIO-FINMA).
Under the FinMIO-FINMA, nominee companies unable
to independently decide how voting rights are exercised
are not subject to disclosure requirements. Since a noti-
fication requirement only exists if a shareholding
reaches, falls below or exceeds one of the limits indi-
cated above, the current percentage of shares actually
held by significant shareholders may at any time differ
from the percentage most recently disclosed.
Infrastructure Ordinance
The shareholding notifications can be viewed on the web-
site of the SIX Exchange Regulation at https://www.
six-exchange-regulation.com/en/home/publications/
significant-shareholders.html. In the 2022 reporting
year, no shareholdings subject to Article 120 FMIA were
reported to Swisscom.
BlackRock, Inc., New York, reported a shareholding of
3.44% of the voting rights in Swisscom Ltd in 2017 and
has not provided any notification indicating that it has
exceeded or fallen below the thresholds subject to noti-
fication requirements (3% and 5%, respectively) since
that time. According to the Swisscom share register,
Chase Nominees Ltd, London, held 3.5% of the voting
rights in Swisscom Ltd on 31 December 2022.
As majority shareholder, the Swiss Confederation (‘Con-
federation’) held 50.95% of the issued share capital of
Swisscom Ltd on 31 December 2022, which was
unchanged from the previous year. The Telecommunica-
tions Enterprise Act (TEA) provides that the Swiss Con-
federation shall hold the majority of the share capital
and voting rights of Swisscom Ltd. The Federal Council
defines the goals which the Confederation as principal
shareholder of the company aims to achieve in the next
four years. As a rule, stakeholder talks with the Chair-
man of the Board, the CEO and the representative of the
Swiss Confederation are conducted three times a year by
the responsible federal government departments – the
Federal Department of the Environment, Transport,
Energy and Communications (DETEC) and the Federal
Department of Finance (FDF) – led by the Head of DETEC.
The CFO and the Head of Strategy & Board Services
(Head of Security & Corporate Affairs from 2023
onwards) also take part. During these talks, the partici-
pants examine the status of target achievement. After
the close of the business year, target achievement is
assessed by the Federal Council.
N See www.swisscom.ch/ziele_2022-2025
2.3 Cross-shareholdings
No cross-shareholdings exist between Swisscom Ltd and
other public limited companies.
3 Capital structure
3.1 Capital
The share capital of Swisscom Ltd has remained
unchanged since 2009, totalling CHF 51,801,943. There
is no authorised or conditional share capital. Informa-
tion concerning equity can be found in the financial
statements of Swisscom Ltd.
D See report page 176
3.2 Shares, participation and profit-sharing
certificates
All of the shares issued by Swisscom Ltd are fully paid-up
registered shares with a par value of CHF 1. Each share
entitles the holder to one vote. Shareholders may only
exercise their voting rights, however, if their shares have
been entered with voting rights in the share register of
Swisscom Ltd. All registered shares with the exception of
treasury shares held by Swisscom are eligible for a divi-
dend. There are no preferential rights.
Registered shares of Swisscom Ltd are not issued in certif-
icate form but are held as book-entry securities in the
depositary holdings of SIX SIS AG, up to a maximum limit
determined by the Swiss Confederation. Shareholders
may at any time request confirmation of the registered
shares they hold. However, they have no right to request
the printing and delivery of certificates for their shares
(registered shares with no right to printed certificates).
The holder of an ADR possesses the rights listed in the
Deposit Agreement (e.g. the right to issue instructions
for the exercise of voting rights and the right to divi-
dends). The Bank of New York Mellon Corporation, which
acts as the ADR depositary, is listed as the shareholder in
the share register. ADR holders are therefore unable to
directly enforce or exercise shareholder rights. The Bank
of New York Mellon Corporation exercises the voting
rights in accordance with the instructions it receives
from the ADR holders. If it does not receive instructions,
it does not exercise the voting rights.
Swisscom Ltd has issued neither participation nor prof-
it-sharing certificates.
Further information on the shares is available in Section 7
‘Shareholders’ participation rights’ as well as in the Man-
agement Commentary.
D See report page 84
D See report page 56
3.3 Limitations on transferability and
nominee registrations
Swisscom shares are freely transferable, and the voting
rights of the shares registered in the share register in
accordance with the Articles of Incorporation are not
subject to restrictions of any kind. In accordance with
Article 3.5.1 of the Articles of Incorporation, the Board of
Directors may refuse to recognise an acquirer of shares as
a shareholder if the total holding, when the new shares
are added to any voting shares already registered in its
name, exceeds the limit of 5% of all registered shares
entered in the commercial register. For the shares in
excess of the limit, the acquirer is entered in the share
register as a shareholder or beneficial holder without
voting rights. The other statutory provisions on
restricted transferability are described in Section 7.1 of
this Corporate Governance Report, ‘Voting right restric-
tions and proxies’.
N See www.swisscom.ch/basicprinciples
D See report page 84
Swisscom has issued special regulations governing the
registration of trustees and nominees in the share regis-
ter. To facilitate the tradability of the company’s shares
on the stock exchange, the Articles of Incorporation
(Article 3.6) allow the Board of Directors, by means of
regulations or agreements, to permit the fiduciary entry
of registered shares with voting rights for trustees and
nominees in excess of the 5% threshold, provided they
disclose their trustee capacity. In addition, they must be
subject to supervision by a banking or financial market
supervisory authority or otherwise provide the neces-
sary assurance that they are acting for the account of
one or more unrelated parties. They must also be able to
provide evidence of the names, addresses and holdings
of the beneficial owners of the shares. This provision of
the Articles of Incorporation may be changed by resolu-
tion of the Annual General Meeting, for which an abso-
lute majority of valid votes cast is required. In accord-
ance with this provision, the Board of Directors has
issued regulations governing the entry of trustees and
nominees in the Swisscom Ltd share register.
N See www.swisscom.ch/basicprinciples
The entry of trustees and nominees as shareholders
with voting rights is subject to application and the con-
clusion of an agreement by which the trustee or nomi-
nee acknowledges the applicable entry restrictions and
disclosure obligations as binding. Trustees and nominees
related in terms of capital or voting rights either con-
tractually or through common management or other
means are treated as a single shareholder (trustee or
nominee).
3.4 Convertible bonds, debenture bonds
and options
Swisscom has no convertible bonds outstanding. Details
of the debenture bonds are given in Note 2.2 to the con-
solidated financial statements.
D See report pages 122–125
Swisscom does not issue options on registered shares of
Swisscom Ltd to its employees.
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4 Board of Directors
4.1 Members of the Board of Directors
The Annual General Meeting of Shareholders re-elected
all current members of the Board of Directors on 30
March 2022. The Federal Council also appointed the cur-
rent representative of the Swiss Confederation to the
Board of Directors for another year. As of 31 December
2022, the Board of Directors comprised the following
non-executive members.
Name
Michael Rechsteiner 1
Roland Abt
Alain Carrupt
Guus Dekkers
Frank Esser
Barbara Frei
Sandra Lathion-Zweifel
Anna Mossberg
Renzo Simoni 2
Nationality
Switzerland
Switzerland
Switzerland
Netherlands
Germany
Switzerland
Switzerland
Sweden
Switzerland
Year of birth
Function
Taking office at the Annual General Meeting
1963
1957
1955
1965
1958
1970
1976
1972
1961
Chairman
Member
Member, representative of the employees
Member
Deputy Chairman
Member
Member, representative of the employees
Member
Member, representative of the Confederation
2019
2016
2016
2021
2014
2012
2019
2018
2017
1 Chairman since 31 March 2021.
2 Designated by the Swiss Confederation.
Barbara Frei will not stand for re-election at the Annual
General Meeting on 28 March 2023. The Board of Direc-
tors proposes that Monique Bourquin be elected to
replace her. Similarly, the Federal Council has announced
that it will send a new representative as of the 2023
Annual General Meeting.
66
4.2 Education, professional activities
and affiliations
Key details of the career and qualifications of each mem-
ber of the Board of Directors are provided in the sum-
mary below, along with the mandates held outside the
Group and other significant activities. The Board mem-
bers are obligated to consult the Chairman of the Board
of Directors prior to accepting new mandates and to
immediately advise him of any changes in their profes-
sional lives. If the Chairman is concerned, he shall con-
sult or inform the Deputy Chairman. The Chairman or
Deputy Chairman, as the case may be, then informs the
Board of Directors about these changes and about
potential conflicts of interest. The issue of affiliations is
addressed with the Board of Directors as part of an
annual internal training session that focuses on stock
exchange regulations. Details on the regulation of exter-
nal mandates, in particular the number of permissible
external mandates and the definition of the term ‘man-
date’, are set out in Article 8.3 of the Articles of Incorpo-
ration. No member exceeds the limits set for external
mandates.
N See www.swisscom.ch/basicprinciples
The members of the Board of Directors are required to
order their personal and business affairs to ensure that
conflicts of interest are avoided as far as possible and to
take whatever measures necessary. Should a conflict of
interest nevertheless arise, the member concerned must
inform the Chairman of the Board of Directors and/or
the Deputy Chairman immediately, for the attention of
the Board of Directors. The members of the Board of
Directors and the Chairman are obliged to abstain from
negotiations in business which conflict with their own
interests or with the interests of natural or legal persons
closely associated with them.
Michael Rechsteiner
Master of Science in Mechanical Engineering,
Zurich Federal Institute of Technology (ETH);
MBA, University of St. Gallen (HSG)
Career history
1990–2000 various roles at ABB Kraftwerke AG, most
recently General Manager of ABB Power Generation Asia,
Kuala Lumpur, Malaysia; 2000–2002 Head of Power Plants,
Vice President Project Execution, Alstom Power; 2003–
2007 Chief Operating Officer, Sultex; 2007–2015 various
roles at Alstom Power, most recently CEO and Senior Vice
President Power Service; 2015–2017 General Electric (GE)
Officer and Vice President of Global Product Lines at GE
Power Services; April 2017–March 2021 managerial
responsibility for GE Power Services Europe and CEO of GE
Gas Power Europe; since April 2021 external advisor to
General Electric (Switzerland) GmbH; since March 2021
Chairman of the Board of Directors of Swisscom Ltd
Key competencies
Michael Rechsteiner heads up the Board of Directors
with broad, international experience in business and
management. In particular, he contributes his expertise
and experience in the areas of technology, business cus-
tomers, mergers & acquisitions, strategy, transforma-
tion, human resources as well as environment, social &
governance (ESG) to the Board of Directors.
Mandates in companies
–
Mandates in interest groups, charitable
associations, institutions and foundations,
and employee retirement-benefit foundations
Member of the Board of Trustees of General Electric
Switzerland Pension Fund until March 2022
Mandates by order of Swisscom
Member of the Board of Directors and the Board Com-
mittee of economiesuisse
Other significant activities
–
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Alain Carrupt
Swiss school-leaving certificate in economics
Career history
1978–1994 PTT companies, most recently as Head of
Administration at the telecoms directorate in Sion;
1994–2000 Central Secretary of the Telecommunica-
tions sector, PTT Union; 2000–2010 Communications
Union: 2000–2002 Deputy General Secretary and Head
of Personnel, 2003–2008 Vice Chairman, 2008–2010
Chairman; 2011–2016 syndicom Trade Union: 2011–2013
Joint Chairman, 2013–February 2016 Chairman
Key competencies
Thanks to his professional experience as well as the many
years he spent in the leadership of a personnel associa-
tion, Alain Carrupt brings his expertise particularly in the
areas of telecommunications, transformation, finance,
human resources and ESG to the Board of Directors.
Mandates in companies
–
Other significant activities
President of the association Opération Boule à Zéro, Bel-
faux
Roland Abt
Doctorate in Business Administration (Dr. oec.)
University of St. Gallen (HSG)
Career history
1985–1987 CFO of a group of companies with opera-
tions in the areas of IT and real estate; 1987–1996 Eter-
nit Group (later Nueva Group): 1987–1991 Head of Con-
trolling, 1991–1993 CEO, Industrias Plycem, Venezuela,
1993–1996 Division Manager, Fibre Cement Activities;
1996–2016 Georg Fischer Group: 1996–1997 Chief
Financial Officer (CFO), Georg Fischer Piping Systems,
1997–2004 CFO, Agie Charmilles Group (currently Georg
Fischer Machining Solutions), 2004–2016 CFO, Georg
Fischer AG, and member of the Group Executive Board
Key competencies
Roland Abt is a financial expert with broad international
experience in business and management. In particular,
he contributes his expertise and experience in the areas
of business customers, finance, mergers & acquisitions,
strategy, transformation, legal and human resources to
the Board of Directors.
Mandates in listed companies
Member of the Board of Directors and chairman of the
Audit Committee of Bystronic AG (formerly Conzzeta
AG), Zurich
Mandates in non-listed companies
Mandates in Aargau Verkehr (AVA): Chairman of the
Board of Directors of Aargau Verkehr AG, Aarau and
Chairman of the Board of Directors of Limmat Bus AG,
Dietikon; Chairman of the Board of Directors of Eisen-
bergwerk Gonzen AG, Sargans; Member of the Board of
Directors of Raiffeisenbank Zufikon; Chairman of the
Board of Directors of Conzzeta Management AG, Zurich
Mandates in interest groups, charitable
associations, institutions and foundations,
and employee retirement-benefit foundations
President of the Board of Trustees of Fürsorgestiftung
Conzzeta, Zurich; since June President of the Board of
Trustees of Pensionskasse Conzzeta, Zurich
68
Other significant activities
–
Guus Dekkers
Master’s degree in Computer Science,
Radboud University Nijmegen;
MBA, Rotterdam School of Management (RSM)
Career history
1990–2001 Volkswagen AG, Wolfsburg, various func-
tions, mainly in the area of business process optimisa-
tions; 2002–2005 Head of Information Technology
Europe & International and Vice President, Johnson Con-
trols Automotive; 2005–2007 Chief Information Officer
and Vice President, Siemens VDO Automotive AG, Ger-
many; 2008–2016 Chief Information Officer, Airbus
Group, France; since April 2018 Chief Technology Officer,
Tesco PLC, London
Key competencies
Guus Dekkers has gained broad, international experience
in business and management from various sectors. He
especially contributes knowledge of the telecommuni-
cations and IT sectors to the Board of Directors. Further-
more, he complements the Board of Directors with his
expertise and experience in the areas of innovation,
technology and digitisation as well as mergers & acqui-
sitions, strategy, transformation and human resources,
in both business and residential customer segments.
Mandates in companies
–
Other significant activities
Member of the Advisory Board of the Fraunhofer Insti-
tute for Secure Information Technology, Darmstadt;
Member of the Advisory Board of the National Research
Center for Cybersecurity, Darmstadt
Frank Esser
Graduate in Business Administration,
Doctorate in Economics (Dr. rer. pol.)
Career history
1988–2000 Mannesmann Deutschland, most recently
from 1996 member of the Executive Board of Mannes-
mann Eurokom; 2000–2012 Société Française du Radi-
otéléphone (SFR): 2000–2002 Chief Operating Officer
(COO), 2002–2012 CEO, in this function from 2005–2012
also a member of the Group Executive Board of the
Vivendi Group
Key competencies
Frank Esser has international business, leadership and
transformation experience from within the telecommu-
nications industry. In particular, he brings to the Board of
Directors his expertise in the business and residential
customer segments as well as in the areas of technology,
mergers & acquisitions, strategy and human resources.
Mandates in listed companies
Chairman of the Board of Directors of SES S.A., Luxem-
bourg
Mandates in non-listed companies
–
Other significant activities
–
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Barbara Frei
Degree in Mechanical Engineering, ETH;
Doctorate (Dr. sc. techn.), ETH Zurich;
MBA, IMD Lausanne
Career history
1998–2016 ABB Group in various managerial positions,
including 2008–2010 Country Manager, ABB s.r.o.,
Prague; 2010–2013 Country Manager and Regional
Manager Mediterranean, ABB S.p.A., Sesto San Giovanni
(Italy); 2013–2015 Managing Director, Drives and Con-
trol Unit; 2016 Head of Strategic Portfolio Reviews for
the Power Grids division; since December 2016 Schnei-
der Electric, Paris: Chair of the Executive Committee of
Schneider Electric GmbH, Germany, in which capacity
she was also Zone President Germany until June 2017;
July 2017–December 2018 Zone President Germany,
Austria and Switzerland, January 2019–April 2021 Exec-
utive Vice President Europe Operations, since May 2021
Executive Vice President Industrial Automation
Key competencies
Barbara Frei has broad, international experience in busi-
ness and management. In particular, she brings to the
Board of Directors her expertise and experience in the
areas of innovation, technology, digitisation, finance,
strategy, human resources and ESG, as well as in the
business customer segment.
Mandates in listed companies
Until May 2022, member of the Board of Directors, Swiss
Prime Site, Olten
Mandates in non-listed companies
Since December 2022, member of the Board of Directors
and of the People Committee of Northvolt AB, Stockholm
Other significant activities
–
Sandra Lathion-Zweifel
Degree in Law, attorney-at-law;
Master of Laws from the University of Zurich
and Columbia University, New York;
trader’s licence from SIX Swiss Exchange
Career history
2005–2010 attorney-at-law for Mergers & Acquisitions,
Lenz & Staehelin law firm, Zurich; 2010–2014 Head of
Financial Products, Legal & Compliance, Credit Suisse
AG, Zurich; 2014–2018 Head of department in the Asset
Management division of the Swiss Financial Market
Supervisory Authority (FINMA); 2018–2019 counsel for
Banking & Finance, Lenz & Staehelin law firm, Geneva
Key competencies
Sandra Lathion-Zweifel brings her legal expertise to the
Board of Directors as well as experience in the areas of
mergers & acquisitions, banking and finance, asset man-
agement, strategy, human resources and ESG.
Mandates in listed companies
–
Mandates in non-listed companies
Member of the Board of Directors, president of the
Nomination and Remuneration Committee and mem-
ber of the Audit Committee of the Raiffeisen Switzer-
land cooperative, St. Gallen
Other significant activities
Member of the Advisory Board of the Capital Markets
and Technology Association, Geneva; Member of the
Executive Board of swissVR, Rotkreuz
Anna Mossberg
Executive MBA for Growing Companies,
Stanford Business School, Palo Alto, USA;
Executive MBA, IE University, Madrid;
Master of Science in Industrial Engineering and
Management, Luleå University of Technology
Career history
1996–2010 Telia: in various roles, including Vice Presi-
dent and Head of Business & Product Management,
Head of Internet, Consumer Segment, Director Data Ser-
vices, Product & Services; 2010 CEO, Bahnhof AB; 2012–
2014 Senior Vice President Strategy and Portfolio Man-
agement, Deutsche Telekom; 2015–2018 member of the
Management Team, Google Ltd, Sweden; March 2021–
2022 Managing Director, Silo AI, Sweden
Key competencies
Anna Mossberg has international business and leadership
experience in the media and entertainment sector. In par-
ticular, she brings to the Board of Directors her expertise
and experience in the areas of telecommunications, inno-
vation, digitisation, finance, mergers & acquisitions,
human resources, and strategy in the consumer and busi-
ness customer segment.
Mandates in listed companies
Member of the Board of Directors, Remuneration Commit-
tee and Audit Committee, Swedbank AB, Stockholm; until
April 2022 member of the Board of Directors, Schibsted
ASA, Oslo; member of the Board of Directors, Orkla ASA,
Oslo; until May 2022 member of the Board of Directors,
Byggfakta AB, Stockholm; since April 2022 member of
the Board of Directors of Volvo Cars AB, Göteborg
Mandates in non-listed companies
–
Other significant activities
–
Renzo Simoni
Doctorate in Mechanical Engineering (Dr. sc. techn.),
Zurich Federal Institute of Technology (ETH)
Career history
1985–1989 technical assistant in Civil Engineering and
Building Construction, Gruner Group; 1989–1995 scien-
tific assistant, Federal Institute of Technology in Zurich
(ETH Zurich); 1995–1998 lecturer (part-time), ETH Zurich;
1995–2002 Civil Engineering Developer Consulting Ser-
vices, Ernst Basler + Partner AG; 2002–2006 member of
the Management Board, most recently as Co-CEO, Hel-
bling Beratung + Bauplanung AG; 2007–2017 Chairman
of the Management Board, AlpTransit Gotthard AG
Key competencies
Renzo Simoni has broad business and management expe-
rience in large projects as well as knowledge of the politi-
cal environment. In particular, he brings to the Board of
Directors his expertise and experience in the areas of
finance, risk management, human resources and trans-
formation as well as in the corporate business segment.
Mandates in listed companies
–
Mandates in non-listed companies
Member of the Board of Directors of Gruner AG, Basel;
member of the Board of Directors, Vice President and
Chairman of the Audit Committee of Rhätische Bahn AG,
Chur; Chairman of the Board of the Psychiatric Hospital
of the University of Zurich; Chairman of Verkehrs-
betriebe Luzern AG, Lucerne
Other significant activities
–
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4.3 Composition of the Board of Directors
The Board of Directors regularly examines its composi-
tion and plans the appointments to the committee posi-
tions on an annual basis. The members of the Board of
Directors possess comprehensive expertise in relevant
areas and broad experience.
The following diagrams show breakdowns of the Board
of Directors by competency, term of office and gender.
Board of Directors by career, experience, skills
and knowledge
In % and (number of members) as of 31 December 2022
Telecommunications,
IT, Media and/or
entertainment
Innovation, technology
and/or digitisation
Residential Customers
(B2C)
Business Customers
(B2B)
International
business experience
44%
(4)
56%
(5)
33%
(3)
78%
(7)
67%
(6)
Finance, Risk Management
and/or M&A
100%
(9)
Strategy and/or Transfor-
mation
100%
(9)
Human Resources
Legal
Environment, Social
& Governance
Leadership position in
top management
Member of the Board
of Directors in stock ex-
change listed companies
100%
(9)
22%
(2)
44%
(4)
89%
(8)
55%
(5)
Sector
Specialization
Role
Board of Directors by length of term of office
In % and (number of members) as of 31 December 2022
44%
(4)
44%
(4)
11%
(1)
Up to 4
years
5 to 8
years
9 to 12
years
Board of Directors by gender
In % and (number of members) as of 31 December 2022
67%
(6)
33%
(3)
Male
Female
The Board of Directors of Swisscom Ltd thus already
complies with the requirements of Swiss company law
regarding gender representation on the boards of direc-
tors of listed companies.
4.4 Independence
To establish the independence of its members, the Board
of Directors applies the criteria set out in the Swiss Code
of Best Practice for Corporate Governance published by
economiesuisse. Independent members are thus under-
stood to mean non-executive members of the Board of
Directors who were never a member of the executive
management or who have not been a member of the
executive management for at least three years and who
have no or only comparatively minor business relations
with the company. The term of office of a member of the
Board of Directors is not a criterion that can be used to
assess independence. No members of the Board of
Directors hold an executive role within the Swisscom
Group or have held such a role in any of the three busi-
ness years prior to the reporting year. The Board mem-
bers have no significant commercial links with Swisscom
Ltd or the Swisscom Group. The Swiss Confederation,
represented on the Board by Renzo Simoni, holds the
majority of the capital and voting rights in Swisscom in
accordance with the Telecommunications Enterprise Act
(TEA). Customer and supplier relationships exist between
the Swiss Confederation and Swisscom. Details of these
are provided in Note 6.2 to the consolidated financial
statements.
D See report page 164
4.5 Election and term of office
Under the terms of the Articles of Incorporation, the
Board of Directors comprises between seven and nine
members and, if necessary, the number can be increased
temporarily. Under the Articles of Incorporation of
Swisscom Ltd, the Swiss Confederation is entitled to
appoint two representatives to the Board of Directors of
Swisscom Ltd. At present, one representative
is
appointed. Under the terms of the TEA, employees must
be granted appropriate representation on the Board of
Directors of Swisscom Ltd. The Articles of Incorporation
also stipulate that the Board of Directors is to include
two employee representatives and that employees are
entitled to make proposals for their employee repre-
sentatives. Alain Carrupt was nominated as employee
representative by the syndicom trade union and Sandra
Lathion-Zweifel was nominated as employee represent-
ative by the transfair staff association. The employee
representatives are elected by the shareholders at the
Annual General Meeting upon a motion proposed by the
Board of Directors, as are the other members of the
Board of Directors with the exception of the representa-
tive of the Swiss Confederation, who is appointed by the
Federal Council.
The Annual General Meeting elects the members and
the Chairman of the Board of Directors as well as the
members of the Compensation Committee individually
for a term of one year. The term of office runs until the
conclusion of the following Annual General Meeting.
Re-election is permitted. If the office of the Chairman is
vacant or the number of members of the Compensation
Committee falls below the minimum number of three
members, the Board of Directors nominates a chairman
from among its members or appoints the missing mem-
ber(s) of the Compensation Committee to serve until the
conclusion of the next Annual General Meeting. Other-
wise, the Board of Directors constitutes itself.
The maximum term of office
for members elected by the
Annual General Meeting, as a rule,
is a total of twelve years .
The flexible arrangement makes it possible for share-
holders to extend the maximum term of office in excep-
tional cases if special circumstances exist. Members
retire from the Board of Directors when they reach the
age of 70. The maximum term of office and age limit for
the representative of the Swiss Confederation are deter-
mined by the Federal Council.
4.6 Succession planning
The Board of Directors regularly examines whether its
members’ qualifications, abilities and experience are
still aligned with the Board’s needs and requirements.
The Board commences the search for potential new
members early on so as to ensure that it has access to
the expertise it requires, is well-diversified and can nom-
inate new members as needed in the future. As a guide
for the ad-hoc Nomination Committee, the Board of
Directors formulates a requirements profile specifying
the qualifications, skills and experience that are desired.
On the basis of this, the Nomination Committee evalu-
ates potential candidates and makes recommendations
to the Board of Directors for the election of new Board
members by the Annual General Meeting. The Board of
Directors submits a motion to the Annual General Meet-
ing regarding the approval of new Board members.
4.7 Ongoing development and
continuing education
The Board of Directors attaches great importance to the
ongoing development and continuing education of the
Board and its individual members. The Board of Direc-
tors and its individual committees generally assess their
own performance and efficiency once a year in Decem-
ber or January on the basis of a survey sent out in
advance. This self-evaluation asks them to assess both
the work of the respective body as well as the perfor-
mance of the Board or Committee Chairman. The evalu-
ation additionally covers the composition, organisation
and work processes of the body, responsibilities under
the Organisational Rules and the priorities and goals for
the reporting year. The Board of Directors and the Com-
mittees meet to discuss the results of the survey and
formulate goals and measures for the following/current
year. In the 2022 reporting year, the Board of Directors
had a comprehensive, externally led assessment carried
out for the first time in order to obtain an outside view
of the Board and compare it with its peers. The Chair-
man also conducts a one-on-one annual discussion with
each member in which possibilities for further individual
development are addressed.
Once a year, a one-day mandatory training course is
held, most recently in January 2022 and 2023. At least
four times per year, the members of the Board of Direc-
tors also have the opportunity to explore in depth the
upcoming challenges facing the Group and business
divisions as well as the subsidiaries as part of ‘company
experience days’. The majority of the Board members
regularly take advantage of these opportunities. In addi-
tion, all the members of the Board of Directors attend
the Swisscom Group’s annual management meeting
whenever possible. New Board members are given a
task-specific introduction to their duties. At a one-day
73
introduction, they are provided with an overview of
Group management, the business and the current oper-
ational challenges. In addition, they are introduced to
topics related to the Italian subsidiary Fastweb S.p.A.
and attend function-related training courses.
4.8 Chairman of the Board of Directors
Michael Rechsteiner has held the office of Chairman since
31 March 2021. The tasks and responsibilities of this func-
tion are defined in the Organisational Rules. In the event
that the Chairman of the Board of Directors is unavailable
or there is a potential conflict of interest, the Vice-Chair-
man, Frank Esser, takes over the Chairman’s tasks.
N See www.swisscom.ch/basicprinciples
4.9 Internal organisation and
modus operandi
The Board of Directors is responsible for the strategic
and financial management of Swisscom and for moni-
toring the company’s executive management. As the
supreme governing body of the company, it has deci-
sion-making authority unless such authority is granted
to the Annual General Meeting by virtue of law.
The Board of Directors is usually convened once per month
by the Chairman (except in July and November) for a one-
to-two-day meeting. Further meetings are convened as
business requires (ad-hoc meetings). In the event that the
Chairman is hindered, the meeting is convened by the
Vice-Chairman. The Chairman sets the agenda. Any Board
Total
Average duration (in hours)
Participation:
Michael Rechsteiner, Chairman
Roland Abt
Alain Carrupt
Guus Dekkers
Frank Esser, Deputy Chairman
Barbara Frei
Sandra Lathion-Zweifel
Anna Mossberg
Renzo Simoni
member may request the inclusion of further items on the
agenda. The Board members receive the agenda and sup-
porting documentation approximately ten days prior to
the meetings, so that they can prepare. The CEO, the CFO
and the Head of Group Strategy & Board Services (Head of
Security & Corporate Affairs from 2023 onward) always
attend the Board meetings as well. At every Board meet-
ing, the Chairman of the Board, the CEO and the Chief Per-
sonnel Officer report on particular events, on the general
course of business and major business transactions, as
well as on any measures that have been implemented. To
further ensure appropriate reporting to the attention of
the members of the Board, the Board of Directors invites
members of the Group Executive Board and senior
employees of Swisscom as well as auditors and other
internal and external experts, as necessary, to all its meet-
ings as dictated by the specific issues being addressed. In
the year under review, the Board of Directors brought in
external consultants solely for the purpose of conducting
the external assessment of the Board of Directors.
The duties, responsibilities and modus operandi of the
Board of Directors and its conduct with respect to con-
flicts of interest are defined in the Organisational Rules
and in the rules governing the standing committees.
N See www.swisscom.ch/basicprinciples
t The following table gives an overview of the Board of
Directors’ meetings and circular resolutions in 2022.
Individual meetings were held by videoconference.
Meeting days
Ad-hoc meetings
Circular resolutions
12
06:35
3
01:25
12
12
12
12
12
12
12
12
12
3
3
3
3
3
2
3
3
3
1
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1
1
1
1
1
1
1
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4.10 Committees of the Board of Directors
The Board of Directors has delegated individual tasks to
committees. The committees of the Board of Directors of
Swisscom Ltd were constituted as follows as at 31 Decem-
ber 2022.
Board of Directors
Finance Committee
Frank Esser 1
Alain Carrupt
Guus Dekkers
Anna Mossberg
Michael Rechsteiner
Audit & ESG
Reporting Committee
Roland Abt 1
Sandra Lathion-Zweifel
Renzo Simoni
Michael Rechsteiner
Compensation Committee
Barbara Frei 1
Roland Abt
Frank Esser
Renzo Simoni
Michael Rechsteiner 2
Nomination Committee
Ad-hoc staffing
1 Chairman/chairwoman of the Board of Directors committee
2 No voting rights
The Board of Directors has three standing committees
(Finance, Audit & ESG Reporting and Compensation) and
one ad-hoc committee (Nomination) tasked with carry-
ing out detailed examinations of matters of importance.
In accordance with the rules governing the committees,
they usually each consist of three to six members. As a
rule, each member of the Board of Directors sits on at
least one of the standing committees. Subject to being
appointed to the Compensation Committee (without
voting rights), the Chairman of the Board of Directors is
a member of all the standing committees. The standing
committees are chaired by other members, however.
The chairs of the committees report verbally on the lat-
est committee meetings at the next meeting of the
Board of Directors. All members of the Board of Direc-
tors also receive copies of all meeting minutes from the
Finance Committee as well as the Audit & ESG Reporting
Committee. The minutes of the Compensation Commit-
tee and the Nomination Committees are sent to the
other members of the Board of Directors upon request.
Finance Committee
The Finance Committee prepares information for the
Board of Directors on corporate transactions, for exam-
ple, in connection with setting up or dissolving signifi-
cant Group companies, acquiring or disposing of signifi-
cant shareholdings, and entering into or terminating
strategic alliances. The Committee also acts in an advi-
sory capacity on matters relating to major investments
and divestments and examines specific current issues in
depth. The Finance Committee has the ultimate deci-
sion-making authority when it comes to issuing rules of
procedure and directives in the areas of Mergers &
Acquisitions and Corporate Venturing. Details of the
Committee’s activities and responsibilities are set out in
the Finance Committee rules of procedure.
N See www.swisscom.ch/basicprinciples
The Finance Committee is convened by the Chairman or
at the request of a Committee member as often as busi-
ness requires, but as a rule once per quarter within the
framework of a half-day meeting. The CEO, the CFO and
the Head of Group Strategy & Board Services (Head of
Security & Corporate Affairs from 2023 onwards) always
participate in the Board meetings. In 2022, all the meet-
ings were also attended by other members of the Group
Executive Board, members of the Management Boards
of strategic Group companies or project managers,
depending on the agenda items. The Finance Committee
did not call on any external consultants during the
reporting year.
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t The following table gives an overview of the Finance
Committee’s meetings and circular resolutions in 2022.
Individual meetings were held by videoconference.
Total
Average duration (in hours)
Participation:
Frank Esser, Chairman
Alain Carrupt
Guus Dekkers
Anna Mossberg
Michael Rechsteiner
Audit & ESG Reporting Committee
The Audit & ESG Reporting Committee handles all busi-
ness relating to financial management (for example,
accounting, financial controlling, financial planning,
tax strategy and financing), assurance (risk manage-
ment, the internal control system, compliance and
internal audit), data protection and security as well as
external audit. It also handles matters dealt with by
the Board of Directors that call for specific financial
expertise (dividend policy, for example). The Commit-
tee has also been involved in environment, social and
governance (ESG) reporting since 2022 and performs
monitoring tasks. The Committee is the Board of Direc-
tors’ most important controlling instrument and is
responsible for monitoring the Group-wide assurance
functions. It formulates positions on business matters
which lie within the decision-making authority of the
Board of Directors and has the final say on those busi-
ness matters for which it has the decision-making
authority. Details of the Committee’s activities and
responsibilities are set out in the rules of procedure of
the Audit & ESG Reporting Committee.
N See www.swisscom.ch/basicprinciples
Meetings
Ad-hoc meetings
Circular resolutions
5
02:47
5
5
4
4
5
2
01:20
2
2
1
2
2
–
–
–
–
–
–
–
The Audit & ESG Reporting Committee is composed of
four independent members. The Chairman of the Com-
mittee is an expert in the financial field, and the major-
ity of the members are experienced in finance and
accounting. The Audit & ESG Reporting Committee is
convened by the Chairman or at the request of a Com-
mittee member as often as business requires, but at
least once per quarter and one additional time in Decem-
ber. The meetings usually last between three and six
hours. The CEO, CFO, Head of Group Strategy & Board
Services (Head of Security & Corporate Affairs from
2023 onward), Head of Accounting, Head of Internal
Audit and the external auditors always attend the meet-
ings. In 2022, the Board of Directors called upon other
members of the Group Executive Board and Swisscom
management to attend, depending on the agenda. The
Audit & ESG Reporting Committee can also involve inde-
pendent third parties such as lawyers, public account-
ants and tax experts as required. The Committee did not
invite any external consultants to meetings during the
reporting year.
The Chairman of the Audit & ESG Reporting Committee
also liaises closely with the Heads of Internal Audit and
Accounting and the representatives of Swisscom’s external
auditors outside of the meetings. He and individual mem-
bers of the Committee also meet with the persons respon-
sible for Fastweb’s internal and external audits once a year
to discuss the current challenges facing Fastweb.
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t The following table gives an overview of the Audit &
ESG Reporting Committee’s meetings and circular
resolutions in 2022.
Total
Average duration (in hours)
Participation:
Roland Abt, Chairman 1
Sandra Lathion-Zweifel
Renzo Simoni
Michael Rechsteiner
1 Financial expert.
Compensation Committee
For information on the Compensation Committee, refer
to the section ‘Remuneration Report’.
D See report page 89
Nomination Committee
The Nomination Committee is formed on an ad-hoc
basis for the purpose of preparing the groundwork for
electing new members to the Board of Directors and the
Group Executive Board when needed. The Committee is
presided over by the Chairman of the Board of Directors,
and its composition is determined on a case-by-case
basis. The Committee carries out its work based on a
specific requirements profile defined by the Board of
Directors outlining the qualifications and experience
sought. It then presents suitable candidates to the Board
of Directors, but has no further decision-making author-
ity. The Board of Directors appoints the members of the
Group Executive Board and decides upon the motion to
be proposed to the Annual General Meeting for the elec-
tion and approval of members of the Board of Directors.
The Nomination Committee is convened by the Chair-
man or at the request of a Committee member as often
as business requires. In the 2022 financial year, the topic
of succession was addressed by two ad-hoc Nomination
Committees, one each for the Executive Committee and
for the Board of Directors.
The following four members of the ad-hoc Nomination
Committee for the Executive Committee met once for
four hours:
• Michael Rechsteiner (Chair)
• Frank Esser
• Guus Dekkers
• Sandra Lathion-Zweifel
Meetings
Ad-hoc meetings
Circular resolutions
5
04:00
5
5
5
5
–
–
–
–
–
–
–
–
–
–
–
–
The following members of the ad-hoc Nomination Com-
mittee for the Board of Directors met once for three
hours:
• Michael Rechsteiner (Chair)
• Sandra Lathion-Zweifel
• Frank Esser
• Anna Mossberg
All members attended the meetings.
4.11 Assignment of powers of authority
The Telecommunications Enterprise Act (TEA) refers to
the Swiss Code of Obligations regarding the non-transfer-
able and irrevocable duties of the Board of Directors of
Swisscom Ltd. Pursuant to Article 716a of the Code of
Obligations, the Board of Directors is responsible for the
overall management and supervision of persons
entrusted with managing the company’s operations. It
decides on the appointment and removal of members of
the Group Executive Board. The Board of Directors also
sets the strategic, organisational, financial planning and
accounting guidelines, including the tax and ESG strate-
gies, taking into account the goals that the Swiss Confed-
eration, as majority shareholder, aims to achieve. The Fed-
eral Council formulates these goals for a four-year period
in accordance with the provisions of the TEA. The Federal
Council defined the goals for the period from 2022 to
2025 in 2021.
N See www.swisscom.ch/ziele_2022-2025
The Board of Directors has delegated day-to-day busi-
ness management to the CEO in accordance with the
TEA and the Articles of Incorporation. In addition to the
duties reserved for it under the law, the Board of Direc-
tors decides on business transactions of major impor-
tance to the Group, including, for example, the acquisi-
tion or disposal of companies with a financial exposure
in excess of CHF 20 million and capital investments or
divestments thereof with a financial exposure in excess
of CHF 50 million. Since the year under review, the Board
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of Directors has also assumed overall responsibility for
ESG (environmental, social, governance) issues, approved
the sustainability strategy as part of the corporate strat-
egy and monitored its implementation. The division of
powers between the Board of Directors and the CEO is
set out in detail in the Organisational Rules and in Annex
2 to the Organisational Rules, ‘Rules of Procedure and
Accountability’ (see function diagram). The ESG govern-
ance is described in the Sustainability Report.
N See www.swisscom.ch/basicprinciples
N See www.swisscom.ch/cr-report2022
4.12 Information and controlling
instruments of the Board of Directors
vis-à-vis the Group Executive Board
The Board of Directors is briefed comprehensively so it
can fulfil its tasks and responsibilities. The Chairman of
the Board of Directors and the CEO discuss fundamental
issues concerning Swisscom Ltd and its Group companies
at least once a month. The Chairman also meets in person
with each member of the Group Executive Board as well
as the heads of other Group and business divisions at
least once a year for an in-depth discussion of topical
issues.
The CEO also provides the Board of Directors at every
ordinary meeting with detailed information on the
course of business, major projects and events, and any
measures adopted. Every month, the Board of Directors
receives a report containing all key performance indica-
tors relating to the Group and the segments. In addition,
the Board of Directors receives a quarterly report on the
course of business, financial position, results of opera-
tions and risk position of the Group and the segments. It
also receives projections for operational and financial
developments for the current financial year. The man-
agement reporting is carried out in accordance with the
same financial statement reporting policies as for exter-
nal financial reporting. It also includes key non-financial
information that is important for controlling and steer-
ing purposes. The Board of Directors is informed in writ-
ing about other current or material issues on an ongoing
and timely basis. Every member of the Board of Direc-
tors is entitled to request information on all matters
relating to the Group at any time, provided this does not
conflict with the provisions regarding the reclusion of a
member from Board deliberations or confidentiality
obligations. The Board of Directors is also informed
immediately of any events of an exceptional nature.
The Board of Directors is responsible for establishing
and monitoring the Group-wide assurance functions of
risk management, internal control system, compliance
and internal audit.
Risk management
The Board of Directors has set the objective of protect-
ing the company’s enterprise value through the imple-
mentation of Group-wide risk management. A corpo-
rate culture that promotes the conscious handling of
risks facilitates the achievement of this objective.
Accordingly, Swisscom has implemented a Group-wide,
central risk management system that is based on
ISO Standard 31000 and takes account of both external
and internal events. Swisscom engages in level-appro-
priate, comprehensive reporting and maintains the
appropriate documentation. Its objective is to identify,
assess and address significant risks and opportunities in
good time. To this end, the central Risk Management
unit, which reports to both the CFO and Controlling or,
from 2023 onwards, to the Head of Security and Corpo-
rate Affairs, works closely with the Controlling and Strat-
egy departments, other assurance functions and line
functions. The risk management system is examined
periodically by an external auditor. Swisscom assesses
its risks in terms of the probability that they will occur
and their quantitative and qualitative effects in the
event that they do occur. It manages risks on the basis of
a risk strategy. The risks are evaluated in terms of their
impact on key performance
indicators. Swisscom
reviews and updates its risk profile on a quarterly basis.
The Board of Directors and the Audit & ESG Reporting
Committee are provided with information in April and
December on significant risks, their potential effects and
the status of remedial measures. In urgent cases, the
Chairman of the Audit & ESG Reporting Committee is
informed without delay about any significant new risks.
The risk factors are described in the Risks section of the
Management Commentary.
D See report page 58
Internal control system and financial reporting
The internal control system (ICS) ensures the reliability of
financial reporting with an appropriate degree of assur-
ance. It acts to prevent, uncover and correct substantial
errors in the consolidated financial statements, the
financial statements of the Group companies and the
Remuneration Report. The ICS encompasses the follow-
ing internal control components: control environment,
assessment of accounting risks, control activities, moni-
toring controls, information and communication. The
Accounting unit, which reports to the CFO, manages and
monitors the ICS. Internal Audit periodically reviews the
functioning and effectiveness of the ICS. Significant
shortcomings in the ICS identified during these monitor-
ing and review activities are reported together with the
corrective measures in a status report to the Audit &
ESG Reporting Committee twice a year and to the Board
of Directors on an annual basis. Should the ICS risk
assessment change significantly, the Chairman of the
Audit & ESG Reporting Committee is informed without
delay. Corrective measures to remedy the shortcomings
are monitored by the Accounting unit. The Audit & ESG
Reporting Committee assesses the performance and
effectiveness of the ICS on the basis of the periodic
reporting.
Compliance management
The Group-wide central Compliance Management Sys-
tem (CMS) serves to prevent compliance violations in
order to protect the Swisscom Group, its executive bod-
ies and employees from legal sanctions, financial losses
and reputational damage.
It covers the following legal areas
• Anti-corruption
• Money laundering
• Data protection and confidentiality
• Antitrust law
• Telecommunications law
• Stock exchange law
Swisscom redesigned its CMS in line with the ISO-37301
standard during the financial year. The new Compliance
Management Framework makes even more targeted
improvements possible. The Group’s central compliance
functions as well as the compliance officers and manag-
ers of the Group divisions and fully consolidated Group
companies provide support to the line for the ongoing
implementation of the CMS in specific legal areas.
External auditors will now review the CMS for adequacy
and effectiveness every four years. Furthermore, exter-
nal auditors will continue to conduct a specific audit in
the area of money laundering law on an annual or bien-
nial basis.
Once a year, Group Compliance reports directly to the
Audit & ESG Reporting Board of Director’s committee
and to the Board of Directors on the function’s activities,
compliance risk assessment and target achievement. In
the event of significant changes in the assessment of
compliance risks and in the event of potentially serious
compliance violations, a timely report is sent to the
Chairman of the Audit & ESG Reporting Committee as
well as the Chairman of the Board of Directors.
N See www.swisscom.ch/basicprinciples
Internal auditing
Internal auditing is carried out by the Internal Audit unit.
Internal Audit supports the Swisscom Ltd Board of Direc-
tors and its Audit & ESG Reporting Committee in fulfill-
ing their statutory and regulatory supervisory and con-
Internal Audit also supports
trolling obligations.
management by highlighting opportunities for improv-
ing business processes and controls as well as the assur-
ance functions. It documents the audit findings and
monitors the implementation of measures.
Internal Audit is responsible for planning and perform-
ing audits throughout the Group in compliance with
professional auditing standards and possesses maxi-
mum independence. It is under the direct control of the
Chairman of the Board of Directors and provides reports
to the Audit & ESG Reporting Committee. At an adminis-
trative level, Internal Audit provides reports to the Head
of Group Strategy & Board Services (Head of Security &
Corporate Affairs from 2023 onwards).
Internal Audit liaises closely and exchanges information
with the external auditors. The external auditors have
unrestricted access to the audit reports and audit files of
Internal Audit. Based on a risk analysis and in close coor-
dination with the external auditors, Internal Audit pre-
pares the integrated strategic audit plan annually and
presents it to the Audit & ESG Reporting Committee for
approval. Notwithstanding the above, the Audit & ESG
Reporting Committee can commission special audits –
and do so based on information received on the whis-
tle-blowing platform operated by Internal Audit. This
reporting procedure, which has been approved by the
Audit & ESG Reporting Committee, allows complaints
relating to external reporting and financial reporting,
among other things, to be submitted anonymously to
Internal Audit, which ensures that these will be followed
up. At its meetings, which are held at least quarterly, the
Audit & ESG Reporting Committee is briefed on audit
findings, the reports submitted to the whistle-blowing
platform and the implementation status of the audit
plan and corresponding measures. The Head of Internal
Audit took part in all five meetings of the Audit & ESG
Reporting Committee in 2022. He reported on audit find-
ings at one meeting of the full Board of Directors.
79
5 Group Executive Board
5.1 Members of the Group Executive Board
In accordance with the Articles of Incorporation, the
Executive Board comprises one or more members, who
must not be members of the Board of Directors of
Swisscom Ltd at the same time. Temporary exceptions
are only permitted in exceptional cases. The Board of
Directors has delegated responsibility for the overall
executive management of Swisscom Ltd to the CEO. The
CEO is entitled to delegate his powers to subordinates,
mainly to other members of the Group Executive Board.
The members of the Group Executive Board are appointed
by the Board of Directors. The Board of Directors
appointed Christoph Aeschlimann, previously Head of IT,
Network & Infrastructure (INI), to become the Chief Exec-
utive Officer (CEO) and Chairman of the Group Executive
Board from 1 June 2022. The previous CEO, Urs Schaeppi,
stepped down from his post with effect from 31 May
2022. Christoph Aeschlimann will continue to manage the
INI business area on an ad interim basis until his successor
Gerd Niehage, who was appointed by the Board of Direc-
tors on 26 October 2022, takes up his duties on 1 March
2023. The 2021 Corporate Governance Report contains
further information on Urs Schaeppi.
N See www.swisscom.ch/report2021
D See report page 62
t An overview of the composition of the Group Execu-
tive Board as at 31 December 2022 is given in the table
below.
Name
Nationality
Year of birth
Function
Christoph Aeschlimann 1
Switzerland
Eugen Stermetz
Klementina Pejc
Urs Lehner
Dirk Wierzbitzki
1 SInce june 2022 CEO.
Austria
Germany
Switzerland
Germany
1977
1972
1974
1968
1965
CEO Swisscom AG
a .i . Head of IT, Network & Infrastructure
CFO Swisscom Ltd
CPO Swisscom Ltd
Head of Business Customers
Head of Residential Customers
Appointed to the Group
Executive Board as of
February 2019
March 2021
February 2021
June 2017
January 2016
80
The Group Executive Board will be expanded from six to
nine members as of 1 April 2023. The new members are
Martin Vögeli, Head of Group Security & Corporate
Affairs, Stefan Nünlist, Head of Group Communications
& Responsibility, and Isa Mueller-Wegner, the newly
appointed Head of Group Strategy & Business Develop-
ment as of 1 June 2023.
5.2 Education, professional activities
and affiliations
Key details of the careers and qualifications of the mem-
bers of the Group Executive Board are provided below
along with a summary of the mandates they hold out-
side the Group and other significant activities. Prior to
accepting new mandates and other duties outside the
Swisscom Group, the members of the Group Executive
Board are obligated to obtain the approval of the Chair-
man of the Board of Directors. Details on the regulation
of external mandates, in particular the number of per-
missible mandates and the definition of the term ‘man-
date’, are set out in Article 8.3 of the Articles of Incorpo-
ration. None of the members of the Group Executive
Board exceeds the set limits for mandates. The members
of the Group Executive Board also perform their other
significant activities by order of Swisscom.
N See www.swisscom.ch/basicprinciples
The members of the Group Executive Board are required
to order their personal and business affairs and take
whatever measures are necessary to ensure that con-
flicts of interest are avoided as far as possible. Should a
conflict of interest nevertheless arise, the member con-
cerned must inform the CEO and/or Chairman of the
Board of Directors immediately. The members of the
Group Executive Board are obliged to abstain from
negotiations in business which conflict with their own
interests or with the interests of natural or legal persons
closely associated with them.
5.3 Management agreements
Neither Swisscom Ltd nor any of the Group companies
included in the scope of consolidation have entered into
management agreements with third parties.
Christoph Aeschlimann
Degree in Computer Science (Dipl. Ing.),
École polytechnique fédérale de Lausanne (EPFL);
MBA, McGill University (Canada)
Career history
2001–2004 Software Development Manager, Odyssey
Asset Management Systems; 2006–2007 Business Unit
Manager, Zühlke Group; 2007–2011 Odyssey Financial
Technologies: 2007–2008 Area Services Manager, 2008–
2011 Senior Account Manager EMEA; 2011–2012 Head
of Switzerland and General Manager D-A-CH & CIS, BSB;
2012–2018 ERNI Group: 2012–2014 Business Area Man-
ager, 2014–2017 Managing Director Switzerland, 2017–
2018 CEO; since February 2019 Swisscom Ltd: Head of IT,
Network & Infrastructure and member of the Swisscom
Group Executive Board, since June 2022 Chief Executive
Officer (CEO) and Chairman of the Group Executive
Board
Mandates by order of Swisscom
Since May 2022 member of the Executive Board, Associ-
ation Suisse des Télécommunications (asut), Berne; since
June 2022 member of the Board of Trustees of the Swiss
Entrepreneurs Foundation, Berne; since June 2022 mem-
ber of the international Advisory Committee of the
ZHAW School of Management and Law, Winterthur;
since January 2023 member of the Board of IMD Founda-
tion, Lausanne
Other significant activities
Until March 2022 member of Dell’s CIO Advisory Board;
until October 2022 member of the Cisco Global Cus-
tomer Advisory Board, San José; since June 2022 mem-
ber of the Executive Board, Glasfasernetz Schweiz,
Berne; since June 2022 member of the Steering Commit-
tee of digitalswitzerland
81
Eugen Stermetz
Degree in Business Administration (lic. oec.),
University of St. Gallen; PhD in Social
and Economic Sciences (Dr. rer. soc. oec.), Vienna
University of Economics and Business
Klementina Pejic
Dortmund University of Applied Sciences;
École Supérieure des Sciences Économique
et Commerciales ESSEC, Cergy-Pontoise,
International Business M.A.
Career history
1996–2000 Boston Consulting Group, Munich and
Vienna; 2001–2005 Chief Financial Officer (CFO), Ige-
neon AG, Vienna; 2006–2008 CFO and Managing Direc-
tor, F-star GmbH, Vienna; 2009–2011 CFO and member
of the Executive Board, SVOX AG, Zurich; since 2012
Swisscom Ltd: until 2017 CFO Participations, 2017–2018
CFO Participations and Head of M&A, 2018–February
2021 Group Treasurer (Treasury, Insurance and M&A),
since March 2021 Chief Financial Officer (CFO) and mem-
ber of the Swisscom Group Executive Board
Career history
2001–2002 Consultant, Watson Wyatt AG, Zurich;
2003–2020 Clariant International AG: 2003–2004 Divi-
sional HR Manager, 2005–2007 Global HR Business Part-
ner, 2008–2009 Head of Management Development
Europe, 2010–2011 Head of Global Talent Management,
2012–2013 Head of Senior Management Development,
2014–2017 Head of SMD & People Excellence, 2018–
January 2021 Head of Human Resources; since February
2021 Swisscom Ltd: Chief Personnel Officer (CPO) and
member of the Group Executive Board
Mandates by order of Swisscom
Vice President of the Board of Trustees of the comPlan pen-
sion fund, Berne
Mandates by order of Swisscom
Member of the Board of Trustees of the comPlan pen-
sion fund, Berne
Other significant activities
–
Other significant activities
Member of the Institute Council of the international insti-
tute of management in technology (iimt) at the University
of Fribourg
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Urs Lehner
Degree in IT Engineering
(UAS, University of Applied Sciences),
Executive MBA in Business Engineering,
University of St. Gallen (HSG)
Career history
1997–2013 Trivadis Group: 2004–2008 Solution Port-
folio Manager, member of the Executive Board of
Trivadis Group, 2008–2011 Chief Operating Officer
(COO) of Trivadis Group, 2011–2013 member of the
Board of Directors of Trivadis Holding AG; July 2011–
June 2017 Swisscom (Switzerland) Ltd: July 2011–
December 2013 Head of Marketing & Sales Corporate
Business, 2014–2015 Head of Marketing & Sales Enter-
prise Customers, 2016–June 2017 Head of Sales & Services
Enterprise Customers; since June 2017 Swisscom Ltd: Head
of Business Customers (called ‘Enterprise Customers’
until 2019) and member of the Swisscom Group Execu-
tive Board
Mandates by order of Swisscom
–
Other significant activities
Until December 2022 member of the Advisory Board of
BKW Innovation GmbH, Berlin
Dirk Wierzbitzki
Degree in Electrical Engineering (Dipl. Ing.)
Career history
1994–2001 various management roles in the area of
product management, Mannesmann (now Vodafone
Germany); 2001–2010 Vodafone Group: 2001–2003
Director for Innovation Management, Vodafone Global
Products and Services, 2003–2006 Director of Commer-
cial Terminals, 2006–2008 Director of Consumer Internet
Services and Platforms, 2008–2010 Director of Communi-
cations Services; 2010–2015 Swisscom (Switzerland) Ltd:
member of Management Residential Customers, 2010–
2012 Head of Customer Experience Design for Residen-
tial Customers, 2013–2015 Head of Fixed-network Busi-
ness & TV for Residential Customers; since January 2016
Swisscom Ltd: until 2019 Head of Products & Marketing
and since 2020 Head of Residential Customers; since
2016 member of the Swisscom Group Executive Board
Mandates by order of Swisscom
Member of the Board of Directors of SoftAtHome, Paris
Other significant activities
–
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Gerd Niehage (CTO from 1 March 2023)
Degree in Business Information Technology
(Dipl.-Inform.; UAS, University of Applied Sciences),
focus on Information/Communication
Management; MBA, University of Mannheim /
Tongji University, Shanghai;
Doctor of Business Administration (DBA / Dr),
Middlesex University, London
Career history
1994–2001 Niehage Lippstädter Softwarehaus GmbH:
Managing Partner; 2001–2002 INFORA GmbH, IT con-
sulting company for public administration: Senior Con-
sultant and Project Manager; 2003–2016 Hella Group:
2003–2008 Project Manager IT & Logistics, 2008–2013
IT Director APAC, Shanghai, 2011–2012 IT Director
North/South America, 2013–2016 CIO, Lippstadt; 2017–
2021 B. Braun Group CIO, Melsungen; 2021–2022 ZF
Group: Global Head of Data/AI, IT Innovation & EAM and
Regional CIO APAC, Shanghai
Mandates by order of Swisscom
–
Other significant activities
–
6 Remuneration,
shareholdings and loans
All information on the remuneration of the Board of
Directors and the Group Executive Board of Swisscom Ltd
is provided in the separate Remuneration Report.
D See report page 89
7 Shareholders’ participation rights
7.1 Voting right restrictions and proxies
Each registered share entitles the holder to one vote. Vot-
ing rights can only be exercised if the shareholder is
entered in the share register of Swisscom Ltd with voting
rights. The Board of Directors may refuse to recognise an
acquirer of shares as a shareholder or beneficial holder
with voting rights if the latter’s total holding, when the
new shares are added to any voting shares already regis-
tered in its name, exceeds the limit of 5% of all regis-
tered shares entered in the commercial register. For the
shares in excess of the limit, the acquirer is entered in
the share register as a shareholder or beneficial holder
without voting rights. This restriction on voting rights
also applies to registered shares acquired through the
exercise of subscription, option or conversion rights. The
calculation of the percentage restriction is subject to the
Group clause in accordance with Article 3.5.1 of the Arti-
cles of Incorporation.
N See www.swisscom.ch/basicprinciples
The 5% voting right restriction does not apply to the
Swiss Confederation, which, under the terms of the Tel-
ecommunications Enterprise Act (TEA), holds the major-
ity of the capital and voting rights in Swisscom Ltd. Fur-
ther information on voting right restrictions are set out
in Section 3.5 of the Articles of Incorporation.
N See www.swisscom.ch/basicprinciples
The restrictions on voting rights provided for in the Arti-
cles of Incorporation may be lifted by resolution of the
Annual General Meeting, for which an absolute majority
of valid votes cast is required.
During the year under review, the Board of Directors did
not recognise any acquirers of shares with more than 5%
of all registered shares as a shareholder or beneficial
holder with voting rights, did not reject any requests for
recognition or registration and did not remove any
shareholders with voting rights from the share register
due to the provision of false data.
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7.2 Statutory quorum requirements
The Annual General Meeting of Shareholders of Swisscom
Ltd adopts its resolutions and decides its elections by the
absolute majority of valid votes cast. Abstentions are not
deemed to be votes cast. In addition to the special quorum
requirements under the Swiss Code of Obligations, a two-
thirds majority of the voting shares represented is required
in the following cases:
•
introduction of restrictions on voting rights
• conversion of registered shares to bearer shares
• change in the Articles of Incorporation concerning
special quorums for resolutions
7.3 Convocation of the Annual General
Meeting and agenda items
The Board of Directors convenes the Annual General
Meeting at least 20 calendar days prior to the date of the
meeting by means of an announcement in the Swiss
Commercial Gazette. The meeting can also be convened
by registered or unregistered letter to all registered
shareholders. One or more shareholders who together
represent at least 10% of the share capital can demand in
writing that an extraordinary general meeting be con-
vened, stating the agenda item and the proposal or, in the
case of elections, by stating the names of the proposed
candidates.
The Board of Directors is responsible for defining the
agenda. Shareholders representing shares with a par
value of at least CHF 40,000 may request that an item be
placed on the agenda. This request must be submitted in
writing to the Board of Directors at least 45 days prior to
the Annual General Meeting, stating the agenda item
and the proposal (Article 5.4.3 of the Articles of Incorpo-
ration).
N See www.swisscom.ch/basicprinciples
7.4 Representation at the Annual General
Meeting
Shareholders may be represented at the Annual General
Meeting by another shareholder with voting rights or by
the independent proxy elected by the Annual General
Meeting. The law firm Reber Rechtsanwälte, Zurich, was
appointed as independent proxy for the period up until
the conclusion of the Annual General Meeting in March
2023. Partnerships and legal entities may be represented
by authorised signatories, while minors and wards may
be represented by their legal representative, even if the
representative is not a shareholder.
A power of attorney may be granted in writing or elec-
tronically via the shareholder portal operated by Com-
putershare Switzerland Ltd. Shareholders who are repre-
sented by a proxy may issue instructions for each agenda
item and also for all unannounced agenda items and
motions, stating whether they wish to vote for or against
the motion or abstain. The independent proxy must cast
the votes entrusted to him by shareholders according to
their instructions. If the independent proxy receives no
instructions, he shall abstain. Abstentions are not
deemed to be votes cast (Article 5.7.4 of the Articles of
Incorporation).
In accordance with the measures prescribed by the Fed-
eral Council to combat the coronavirus (Covid-19 Ordi-
nance 3), the Annual General Meeting of 30 March 2022
took place without the physical participation of share-
holders. Shareholders were able to authorise the inde-
pendent proxy to cast their votes and execute their
instructions on their behalf. The independent proxy cast
the votes in person at the Annual General Meeting.
7.5 Entries in the share register
Shareholders entered in the share register with voting
rights are entitled to vote at the Annual General Meet-
ing. To ensure due procedure, the Board of Directors
defines a cut-off date at its own discretion for determin-
ing voting entitlements, which is normally three busi-
ness days before the respective Annual General Meet-
ing. Entries in and deletions from the share register can
be made at any time, regardless of the cut-off date. The
cut-off date is announced with the invitation to the
Annual General Meeting and also published in the finan-
cial calendar on the Swisscom website. Shareholders
entered in the share register with voting rights as of 5
p.m. on 25 March 2022 were entitled to vote at the
Annual General Meeting of 30 March 2022. Sharehold-
ers entered in the share register with voting rights as of
5 p.m. on 23 March 2023 will be entitled to vote at the
Annual General Meeting of 28 March 2023.
8 Change of control and
defensive measures
Under the terms of the Telecommunications Enterprise Act
(TEA), the Swiss Confederation must hold the majority of
the capital and voting rights in Swisscom Ltd. This
requirement is also set out in the Articles of Incorpora-
tion. There is thus no duty to submit a takeover bid as
defined in the Financial Market Infrastructures Act, since
this would contradict the TEA.
Details on change of control clauses are given in the sec-
tion ‘Remuneration Report’.
D See report page 89
85
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9 Auditor
9.1 Selection process, duration of mandate
and term of office of the auditor-in-
charge
The statutory auditor is appointed annually by the
Annual General Meeting following a proposal submitted
by the Board of Directors. Re-election is permitted. The
policies for appointing the statutory auditor have been
set forth in a policy by the Audit & ESG Reporting Com-
mittee. A new invitation to tender is issued for the stat-
utory auditor’s mandate at least every ten to 14 years.
The statutory auditor’s tenure is limited to 20 years. As
stipulated by the Swiss Code of Obligations, the auditor-
in-charge may only perform the mandate for a maxi-
mum of seven years. PricewaterhouseCoopers (PwC),
Zurich, has performed the mandate since the 2019
financial year. The auditor-in-charge is Peter Kartscher.
9.2 Audit fees and supplementary fees
Audit-related services include audit services in connection
with IT outsourcing orders from business customers, IT pro-
jects, reporting requirements related to the outstanding
green bonds and the reporting of financial information.
Other services include consulting services related to cyber-
security, VAT in connection with international roaming,
company acquisitions and compliance.
t The table shows the fees paid to the statutory auditor
in the 2021 and 2022 financial years.
2022
3,147
704
279
4,130
2021
3,084
701
120
3,905
Reporting Committee meetings. They inform the Com-
mittee in detail on the performance and results of their
work, in particular regarding the annual financial state-
ment audit. They further submit a written report annu-
ally to the Board of Directors and the Audit & ESG
Reporting Committee on the conduct and results of the
audit of the annual financial statements, as well as on
their findings with regard to accounting and the internal
control system. Finally, the Chairman of the Audit & ESG
Reporting Committee liaises closely with the auditor-in-
charge beyond the meetings of the Committee and reg-
ularly reports to the Board of Directors. Representatives
of PwC, the statutory auditors, attended all meetings of
the Audit & ESG Reporting Committee in 2022. The
Head of Internal Audit was also present at all meetings.
Neither the representatives of the statutory auditor nor
the Head of Internal Audit attended the meetings of the
full Board of Directors in 2022.
In CHF thousand
Audit fees
Audit-related services
Other services
Fees to auditors
9.3 Supervision and controlling instruments
vis-à-vis the auditors
The Audit & ESG Reporting Committee verifies the qual-
ifications and independence of the statutory auditors as
a state-supervised auditing firm on behalf of the Board
of Directors. It also assesses the performance and remu-
neration of the auditors. Assessment criteria are the
competence and availability of the audit team, the audit
process, and reporting and communication. It is also
responsible for observing the statutory rotation princi-
ple for the auditor-in-charge and for reviewing and issu-
ing the new invitations to tender for the audit mandate.
The Audit & ESG Reporting Committee approves the
integrated strategic audit plan, which includes the
annual audit plan of both the internal and external audi-
tors, and the annual fee for the auditing services pro-
vided to the Group and Group companies. To help ensure
independence, the Audit & ESG Reporting Committee
has laid down principles for awarding additional services
to the auditors, including a list of prohibited services. In
order to ensure the independence of the auditors, addi-
tional service mandates must be approved by the Audit
& ESG Reporting Committee where the fee exceeds
CHF 300 thousand. The Audit & ESG Reporting Commit-
tee requires that the CFO reports to it quarterly and the
auditors annually on current mandates being performed
by the auditors, broken down according to audit ser-
vices, audit-related services and non-audit services, and
on their independence.
The statutory auditors, represented by the auditor-in-
charge and his deputy, usually attend all Audit & ESG
10 Information policy
Swisscom pursues an open, active information policy
vis-à-vis shareholders, the general public and the capital
markets. Shareholders are provided with notifications
and announcements in accordance with Article 12 of the
Articles of Incorporation, which are published in the
Swiss Commercial Gazette. Swisscom publishes compre-
hensive, consistent and transparent financial informa-
tion on a quarterly basis. Furthermore, it publishes an
annual sustainability report in accordance with the
Global Reporting Initiative (GRI) and an annual report
including a management commentary, corporate gov-
ernance report, remuneration report, consolidated
financial statements and a condensed version of the
financial statements of Swisscom Ltd. The interim
reports, annual report and financial statements of
Swisscom Ltd are available on the Swisscom website
under ‘Investors’. The Sustainability Report is available
on the Swisscom website under ‘Company’.
N See www.swisscom.ch/basicprinciples
N See www.swisscom.ch/financialreports
N See www.swisscom.ch/cr-report2022
Swisscom meets investors regularly throughout the year,
presents its financial results at analysts’ meetings and
road shows, attends selected conferences for financial
analysts and investors, and keeps its shareholders and
other interested parties continuously informed about its
business through press releases.
Related presentations and the ad-hoc press releases pub-
lished by Swisscom are available on the Swisscom website
under ‘Investors’.
N See www.swisscom.ch/adhoc
It is possible to subscribe online to the ad-hoc press
releases published by Swisscom.
N See www.swisscom.com/adhoc-subscribe
The minutes of the Annual General Meeting of 30 March
2022 and minutes from past meetings are available on
the Swisscom website.
N See www.swisscom.ch/generalmeeting
Those responsible for investor relations can be con-
tacted via the website or by email, telephone or post.
The path to Swisscom’s website, contact details and the
address of its headquarters are listed in the publishing
details.
D See report page 183
11 Financial calendar
• Annual General Meeting for the 2022 financial year:
28 March 2023, in Zurich Oerlikon
• 1st Quarter Interim Report: 4 May 2023
• Half-Year Interim Report: 3 August 2023
• 3rd Quarter Interim Report: 2 November 2023
• Annual Report 2023: 8 February 2024
• Annual results press conference: 8 February 2024
The detailed financial calendar is published on the
Swisscom website under ‘Investors’ and is updated on a
regular basis.
N See www.swisscom.ch/financialcalendar
87
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88
Letter from the Chair of the
Compensation Committee
Dear Shareholders
Swisscom achieved a stable set of financial results in the
year under review, continued to hold a strong market
position in Switzerland and had leading challenger status
in Italy through Fastweb. In addition to strong price pres-
sure, 2022 presented new major challenges in the form
of supply bottlenecks, the Ukraine war, rising inflation
and the tense energy supply situation. Nevertheless,
revenue was stabilised in the Swiss core business and
boosted at Fastweb. The Group’s financial development
as presented in the financial reporting is characterised
by non-recurring items and foreign currency translation.
At constant exchange rates and after adjustment for
non-recurring items, revenue, EBITDA and net income
increased.
Swisscom came out on top in the relevant mobile and
broadband tests during the year under review and
impressed the juries of independent tests with the quality
of services provided in shops and digitally via the ‘My
Swisscom App’. It launched a modern and innovative offer-
ing in 2022 with its new blue portfolio. Swisscom is also on
track in terms of sustainability: The goal is to save one mil-
lion tonnes of CO2 per year by 2025 in cooperation with
customers. To that end, Swisscom offers residential and
business customers ICT solutions that can massively reduce
their collective carbon footprint. In addition, Swisscom
offers customers their subscriptions, devices and our net-
work on a climate-neutral basis.
The Compensation Committee reviewed the remunera-
tion system of the Group Executive Board and proposed to
the Board of Directors that it keep the variable remunera-
tion model that had been revised in the previous year. In
addition to financial performance, which is a key determi-
nant of overall target achievement, this model also takes
performance on issues related to business transformation
into account. The variable performance-related salary
component for members of the Group Executive Board will
continue to be paid out in cash and blocked shares. This
approach gears remuneration of the Group Executive
Board towards strategy implementation and makes it pos-
sible to reward performance both appropriately and sus-
tainably while taking into account Swisscom’s responsibil-
ity to help promote society’s positive development and to
protect the environment.
Swisscom performed successfully in the year under review.
Not only did it achieve a good financial result, it also per-
formed exceptionally well in terms of customer satis-
faction and sustainability. Within the scope of its overall
assessment, the Board of Directors weighed these suc-
cesses against the company’s operational performance,
which was not satisfactory in every respect (keyword: net-
work disruptions). This results in overall target achieve-
ment of 120% for the members of the Executive Commit-
tee. Overall, the total remuneration for the members of
the Board of Directors and the Group Executive Board for
the 2022 reporting year is within the range approved by
the 2021 Annual General Meeting.
Like every year, you, dear shareholders, will have an oppor-
tunity at the 2023 Annual General Meeting to cast your vote
on Swisscom’s remuneration principles and the remunera-
tion system as part of the consultative vote on the Remu-
neration Report. In addition, you will vote again on the max-
imum total remuneration paid to the Board of Directors and
the Group Executive Board for the 2024 financial year. The
proposed amount for the Board of Directors remains
unchanged over the prior year. Due to the expansion of the
Group Executive Board from six to nine members as of
1 April 2023, a maximum amount of CHF 10.9 million is pro-
posed for the remuneration of the Group Executive Board in
2024. In addition, a proposal to increase the already
approved amount for the remuneration of the Group Exec-
utive Board in 2023 from CHF 8.7 million to CHF 10.4 million
will be submitted to the Annual General Meeting for
approval.
To meet our responsibilities, the Compensation Com-
mittee will conduct reviews of the remuneration strat-
egy and system again in the coming year to ensure that
our principles are aligned with the interests of share-
holders and other stakeholders and that performance is
rewarded both appropriately and sustainably. We look
forward to your support and thank you for your trust.
Kind regards
Barbara Frei
Chair of the Compensation Committee
Remuneration Report
Remuneration
Incentive
Group Executive Board
CHF 7.70 million
Board of Directors
CHF 2.45 million
for sustainable corporate success.
Remuneration for 2022.
Remuneration for 2022.
1 Governance
1.1 General principles
The Remuneration Report is based on sections 3.5 and
5 of the annex to the Corporate Governance Directive
issued by the SIX Swiss Exchange and Articles 13 to 16
of the Ordinance against Excessive Compensation in
Listed Stock Companies (OaEC), which have been car-
ried over to the Federal Act on the Amendment of the
Swiss Civil Code (Swiss Code of Obligations; Art. 734-
734f) as of 1 January 2023. Swisscom implements the
requirements of the OaEC and complies with the rec-
ommendations of the Swiss Code of Best Practice for
Corporate Governance issued by economiesuisse, the
umbrella organisation representing Swiss business.
Swisscom’s internal principles for determining the level
of remuneration are primarily set out in the Articles of
Incorporation, the Organisational Rules and the Regula-
tions of the Compensation Committee. The latest ver-
sions of these documents as well as their earlier, una-
mended and superseded versions can be viewed online
on the Swisscom website under ‘Basic principles’.
N See www.swisscom.ch/basicprinciples
N See www.swisscom.com/amendment_cc
As in previous years, the Remuneration Report will be
put to a consultative vote at the Annual General Meet-
ing on 28 March 2023.
1.2 Division of responsibilities between
the Annual General Meeting, the Board
of Directors and the Compensation
Committee
The Annual General Meeting approves the maximum
total remuneration amounts payable to the Board of
Directors and the Group Executive Board for the follow-
ing financial year upon the motion proposed by the
Board of Directors. Details of the relevant regulation and
the consequences of a negative decision by the Annual
General Meeting are set out in Articles 5.7.7 and 5.7.8 of
the Articles of Incorporation. Article 7.2.2 of the Articles
of Incorporation also defines the requirements for and
the maximum level of the additional amount that can be
paid to a member of the Group Executive Board who is
newly appointed during a period for which the Annual
General Meeting has already approved the remunera-
tion. In addition, the Articles of Incorporation contain the
following provisions relating to the remuneration policy:
• Remuneration of the Board of Directors (Articles 6.4
and 8.1)
• Compensation Committee (Article 6.5)
• Remuneration of the Group Executive Board (Articles
7.2 and 8.1)
• Contracts of the Board of Directors and the Group
Executive Board (Article 8.2)
• Number of external mandates for the Board of Direc-
tors and Group Executive Board (Article 8.3)
The Board of Directors approves, inter alia, the person-
nel and remuneration policy for the entire Group, as well
as the general terms and conditions of employment for
members of the Group Executive Board. It sets the remu-
neration of the Board of Directors and decides on the
remuneration of the CEO as well as the total remunera-
tion for the Group Executive Board. In doing so, it takes
into account the maximum total amounts approved by
the Annual General Meeting for the remuneration to be
paid to the Board of Directors and the Group Executive
Board for the financial year in question.
The Compensation Committee handles all business
matters of the Board of Directors concerning remunera-
tion, submits proposals to the Board of Directors in this
context, and, within the framework of the approved
total remuneration, is empowered to decide upon the
remuneration of the individual Group Executive Board
members (with the exception of the CEO). Neither the
CEO nor the other members of the Group Executive
Board participate in meetings at which any change to
their remuneration is discussed or decided.
The decision-making powers are governed by the Arti-
cles of Incorporation, the Organisational Rules of the
Board of Directors and the Regulations of the Compen-
sation Committee.
N See www.swisscom.ch/basicprinciples
89
t The table below shows the division of responsibilities
between the Annual General Meeting, the Board of
Directors and the Compensation Committee.
Subject
Remuneration
Committee
Board
of Directors
Annual
General Meeting
Maximum total amounts for remuneration of the Board of Directors and Group Executive Board
V
1
Additional amount for the remuneration of newly appointed members of the Group Executive Board
(Articles of Incorporation)
Personnel and remuneration policy
Principles of the performance and shareholding plans for the Board of Directors
and Group Executive Board (Articles of Incorporation)
Principles underlying retirement-benefit plans and social security payments
Equity-share and performance-based participation plans of the Group
General terms of employment of the Group Executive Board
Definition of performance targets for the variable performance-related salary component
Concept of remuneration to members of the Board of Directors
Remuneration of the Board of Directors
Remuneration of the CEO Swisscom Ltd
Total remuneration of the Group Executive Board
Remuneration of the members of the Group Executive Board (excl . CEO)
Remuneration report
V
V
V
V
V
V
V
V
V
V
V
G
5, 6
V
A
2
A
G
4
A
G
G
4
G
4
G
4
G
4
G
5
G
5
G
5
–
A
3
G
G
–
G
–
–
–
–
–
–
–
–
–
7
G
1 V stands for preparation and proposal to the Board of Directors.
2 A stands for proposal to the Annual General Meeting.
3 G stands for approval.
4 In the framework of the Articles of Incorporation.
5 In the framework of the maximum total remuneration defined by the Annual
General Meeting.
6 In the framework of the total remuneration defined by the Board of Directors.
7 Advisory vote.
1.3 Election, composition and modus
operandi of the Compensation
Committee
The Compensation Committee consists of three to six
members. They are elected individually each year by the
Annual General Meeting. If the number of members falls
below three, the Board of Directors appoints the missing
member(s) from its midst until the conclusion of the
next Annual General Meeting. The Board of Directors
appoints the Chairman of the Compensation Commit-
tee, which constitutes itself. If the Annual General Meet-
ing elects the Chairman of the Board of Directors to the
Compensation Committee, he has no voting rights. The
Chairman of the Board of Directors recuses himself
when discussions take place or decisions are made with
regard to changes in his own remuneration. The CEO,
CPO, Head of Group Strategy & Board Services (Head of
Security & Corporate Affairs from 2023 onwards) and
Head of Rewards & Engagement attend the meetings in
an advisory capacity. In the case of agenda items that
concern the Board of Directors exclusively or concern
changes in the remuneration of the CEO and CPO, the
CEO and CPO may not be present. Other members of the
Board of Directors, auditors or experts may be called
upon to attend the meetings in an advisory capacity.
Minutes are kept of the meetings, which are provided to
the members of the Committee and to other members
of the Board of Directors on request. The Chairman of
the Compensation Committee reports verbally on the
activities of the Committee at the next meeting of the
Board of Directors. The meetings of the Compensation
Committee are generally held in February, June and
December. Further meetings can be convened as and
when required. The Compensation Committee did not
call on any external consultants during the reporting year.
The details are governed by Article 6.5 of the Articles of
Incorporation, the Organisational Rules of the Board of
Directors and the Regulations of the Compensation
Committee.
N See www.swisscom.ch/basicprinciples
The members of the Compensation Committee neither
work nor have worked for Swisscom in an executive
capacity, nor do they maintain any significant commercial
links with Swisscom Ltd or the Swisscom Group. Customer
and supplier relationships exist between the Swiss Con-
federation and Swisscom. Details of these are provided in
Note 6.2 to the consolidated financial statements.
D See report page 164
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t The following table gives an overview of the composi-
tion of the Committee, the Committee meetings and
circular resolutions in 2022.
Total
Average duration (in hours)
Participation:
Barbara Frei, Chairwoman
Roland Abt
Frank Esser
Renzo Simoni 1
Michael Rechsteiner 2
Meetings
Ad-hoc meetings Circular resolutions
3
01:00
1
00:10
3
3
3
3
3
1
1
1
1
1
1
–
1
1
1
1
1
1 Representative of the Confederation.
2 Participation without voting rights.
2 Remuneration of the
Board of Directors
2.1 Principles
The remuneration system for the members of the Board
of Directors is designed to attract and retain experi-
enced and motivated individuals for the Board of Direc-
tors’ function. It also seeks to align the interests of the
members of the Board of Directors with those of the
shareholders. The remuneration is commensurate with
the activities and level of responsibility of each member.
The basic principles regarding the remuneration of the
Board of Directors and the allocation of equity shares
are set out in Articles 6.4 and 8.1 of the Articles of Incor-
poration.
N See www.swisscom.ch/basicprinciples
The remuneration is made up of a fixed Director’s fee that
varies in relation to the member’s function (basic emolu-
ment plus functional allowances), statutory and regula-
tory employer contributions to social security and to the
occupational pension, as well as any additional benefits.
Additional remuneration is not given for attendance at
meetings. No variable performance-related emoluments
are paid. The members of the Board of Directors are obli-
gated to draw a portion of their fee in the form of equity
shares and to comply with the requirements on minimum
shareholdings, thus ensuring they directly participate
financially in the performance of Swisscom’s shares.
The remuneration is normally reviewed every December
for the following year for ongoing appropriateness. In
December 2021, the Board of Directors reviewed the
remuneration and deemed it appropriate as part of a dis-
cretionary decision. The Board of Directors compared
Swisscom’s remuneration with that of other listed compa-
nies domiciled in Switzerland, which, like Swisscom, must
fulfil Swiss and foreign legal requirements, including full
personal liability. The Board of Directors used as a compar-
ison the remuneration paid by Compagnie Financière
Richemont, Geberit, Givaudan, Logitech, Lonza, SGS and
Sika. The Board of Directors did not call on any external
consultants with regard to the determination of the remu-
neration nor to review its appropriateness.
91
2.2 Remuneration components
Director’s fee
The Director’s fee is made up of a basic emolument and
allowances as compensation for the individual func-
tions. The following amounts are paid per year.
in CHF
Base salary per member
Functional allowances 1
Presidium
Vice presidium
Representative of the Confederation
Audit Committee & ESG Reporting, Chair
Audit Committee & ESG Reporting, Member
Finance Committee, Chair
Finance Committee, Member
Remuneration Committee, Chair
Remuneration Committee, Member
1 No functional allowance is paid for participation in ad-hoc committees
appointed on a case-by-case basis.
Under the Management Incentive Plan, the members of
the Board of Directors are obligated to draw one third of
their Director’s fee in the form of shares. For members
who resign from the Board of Directors at the Annual
General Meeting, the fee is paid fully in cash on a pro
rata basis. The shares are allocated on the basis of their
tax value, rounded up to whole numbers of shares.
Shares are blocked from sale for three years. This restric-
tion on disposal also applies if members leave the com-
pany during the blocking period. The shares, which are
allocated on a pro rata basis in March or April and in
December of the reporting year for the reporting year,
are recorded at market value on the date of allocation.
The share-based remuneration is augmented by a factor
of 1.19 in order to take account of the difference
between the tax value and the market value. In March
and December 2022, a total of 1,544 shares were allo-
cated to the members of the Board of Directors (prior
year: 1,512 shares) with a tax value of CHF 468 (March)
and CHF 434 (December) (prior year: CHF 423), respec-
tively, per share. Their market value was CHF 557 (March)
and CHF 517 (December) (prior year: CHF 504), respec-
tively, per share.
2022 gross
2021 gross
146,000
146,000
308,000
308,000
25,000
48,000
61,000
17,000
25,000
17,000
25,000
15,000
25,000
48,000
61,000
17,000
25,000
17,000
25,000
15,000
Contributions to social security and occupational
pension as well as additional benefits
Swisscom pays the statutory and regulatory employer
contributions to social security and occupational pen-
sion on the fee. The contributions are disclosed sepa-
rately and are included in the total remuneration.
If required by law, the individual members of the Board
of Directors are insured against the economic conse-
quences of old age, death and disability; their basic
emolument is covered through the comPlan pension
plan (see www.pk-complan.ch for the regulations) and
their functional allowances are covered as part of a 1e
plan with VZ Sammelstiftung. The reported pension
benefits cover all savings, guarantee and risk contribu-
tions paid by the employer to the pension plan.
The disclosure of service-related and non-cash benefits
and expenses relies on a tax-based point of view.
Swisscom does not offer any significant service-related
or non-cash benefits. Expenses are reimbursed on the
basis of actual costs incurred. Accordingly, neither ser-
vice-related and non-cash benefits nor out-of-pocket
expenses are included in the reported remuneration.
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2.3 Total remuneration (audited)
The total remuneration paid to the individual members
of the Board of Directors for the 2021 and 2022 financial
years is presented in the tables below, broken down into
individual components. The higher total remuneration
in 2022 is primarily due to higher contributions to the
occupational pension plan and social security. Total
remuneration paid is within the maximum total
amount approved by the 2021 Annual General Meet-
ing (AGM) for 2022 of CHF 2.5 million.
Total remuneration to members of the Board of Directors
1,357
812
1 Guus Dekkers is subject to social security contributions in UK since 2022.
2 Frank Esser is subject to social security contributions in Germany. No employer
contributions are paid.
3 Anna Mossberg is subject to social security contributions in Sweden.
2022, in CHF thousand
Michael Rechsteiner, Chairman
Roland Abt
Alain Carrupt
Guus Dekkers 1
Frank Esser 2
Barbara Frei
Sandra Lathion-Zweifel
Anna Mossberg 3
Renzo Simoni
2021, in CHF thousand
Michael Rechtsteiner, Chairman 1
Hansueli Loosli, Chairman 2
Roland Abt
Alain Carrupt
Guus Dekkers 3
Frank Esser 4
Barbara Frei
Sandra Lathion-Zweifel
Anna Mossberg 5
Renzo Simoni
Base salary and functional allowances
Cash
remuneration
Share-based
payment
Employer
contributions to
pension plan
Employer
contributions
to social security
Total 2022
335
159
109
109
152
124
109
109
151
200
95
65
65
91
75
65
65
91
63
23
–
–
–
–
22
–
33
141
30
14
8
23
–
12
10
32
14
628
291
182
197
243
211
206
206
289
143
2,453
Base salary and functional allowances
Cash
remuneration
Share-based
payment
Employer
contributions to
pension plan
Employer
contributions
to social security
Total 2021
279
126
159
109
82
152
124
109
109
151
167
–
95
65
49
91
74
65
65
90
47
–
35
–
–
–
–
22
–
33
137
25
–
15
8
8
–
12
10
32
14
518
126
304
182
139
243
210
206
206
288
124
2,422
Total remuneration to members of the Board of Directors
1,400
761
1 Elected as chairman on 31 March 2021.
2 Left the Board of Directors on 31 March 2021.
3 Elected to the Board of Directors on 31 March 2021.
4 Frank Esser is subject to social security contributions in Germany. No employer
contributions are paid.
5 Anna Mossberg is subject to social security contributions in Sweden.
93
2.4 Minimum shareholding requirement
The members of the Board of Directors are required to
maintain a minimum shareholding equivalent to one
annual emolument (basic emolument plus functional
allowances). As a rule, they have four years from the
start of their term of office or assumption of a new func-
tion to acquire the prescribed shareholding in the form
of the blocked shares paid as part of remuneration and,
if necessary, through share purchases on the open mar-
ket, observing internal and legal trading restrictions.
Compliance with the shareholding requirement
is
reviewed annually by the Compensation Committee. If a
member’s shareholding falls below the minimum
Number
Michael Rechsteiner
Roland Abt
Alain Carrupt
Guus Dekkers
Frank Esser
Barbara Frei
Sandra Lathion-Zweifel
Anna Mossberg
Renzo Simoni
Total shares held by the members of the Board of Directors
requirement due to a drop in the share price, the differ-
ence must be made up by no later than the time of the
next review. In justified cases, such as personal hardship
or legal obligations, the Chairman of the Board of Direc-
tors can approve individual exceptions at his discretion.
2.5 Shareholdings of the members of the
Board of Directors (audited)
Blocked and non-blocked shares held by members of the
Board of Directors and/or related parties as at 31 Decem-
ber 2021 and 2022 are shown in the table below. None
of the individuals required to make notification holds
voting shares exceeding 0.1% of the share capital.
31.12.2022
31 .12 .2021
945
1,096
816
272
1,325
1,478
491
599
1,003
8,025
565
915
692
148
1,152
1,336
367
475
831
6,481
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3 Remuneration of the
Group Executive Board
3.1 Principles
The remuneration policy of Swisscom applicable to the
Group Executive Board is designed to attract and retain
highly skilled and motivated specialists and executive
staff over the long term and provide an incentive to
achieve a lasting increase in the enterprise value. It is
systematic, transparent and long-term-oriented, and is
predicated on the following principles:
• Total remuneration is competitive and is in an appro-
priate relation to the market as well as the internal
salary structure.
• Remuneration is based on performance in line with
the results achieved by Swisscom.
• Through direct financial participation in the perfor-
mance of the Swisscom share, the interests of manage-
ment are aligned with the interests of shareholders.
Remuneration system
Remuneration components and determining factors
The remuneration of the Group Executive Board is a bal-
anced combination of fixed and variable salary compo-
nents. The fixed component is made up of a base salary,
fringe benefits (mainly a car allowance) and retirement
benefits. The variable remuneration includes a perfor-
mance-related component settled partly in cash and
partly in shares.
The members of the Group Executive Board are required
to hold a minimum shareholding, which strengthens
their direct financial participation in the medium-term
performance of the Swisscom share and thus aligns their
interests with those of shareholders. To facilitate com-
pliance with the minimum shareholding requirement,
Group Executive Board members have the possibility of
drawing up to 50% of the variable performance-related
component of their salary in shares.
The basic principles regarding the performance-related
remuneration and the profit and equity participation
plans of the Group Executive Board are set out in Arti-
cle 8.1 of the Articles of Incorporation.
N See www.swisscom.ch/basicprinciples
Remuneration
Assets
Instruments
Fixed remuneration
Variable remuneration
Base salary
Pension benefits
Fringe benefits
Performance-related
component in cash
and shares
Minimum shareholding
requirement
Requirement to hold
a minimum amount
of Swisscom shares
Influencing factors
Function, experience
and qualifications,
market
Achievement of
annual performance
targets
Long-term growth
of enterprise value
Purpose
Employee recruitment,
employee retention
and protection
Focus on annual targets
and sustain able
corporate results
Alignment with
shareholders interests
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The Compensation Committee decides at its discretion
on the level of remuneration, taking into consideration
the external market value of the function in question,
the internal salary structure and individual performance.
For the purpose of assessing market values, Swisscom
relies on cross-sector market comparisons with Swiss
companies as well as international sector comparisons.
These two comparative perspectives allow Swisscom to
form an optimal overview of the relevant employment
market for managerial positions. In the year under review,
Swisscom consulted a national and an international com-
parative study conducted by Willis Towers Watson. The
comparison conducted in the year under review with the
Swiss market covers 13 major companies domiciled in
Switzerland from various sectors, with the exception of
the financial and pharmaceutical sectors. On average,
these companies generate revenue of CHF 6 billion and
employ 25,000 people. The international sector compari-
son from 2020 covers telecommunications companies
from eight western European countries with median rev-
enue of CHF 7.5 billion and a median workforce of 19,500
employees. The evaluation of the two comparative stud-
ies takes into account the comparability of the extent of
responsibility in terms of revenue, number of employees
and international scope. The Compensation Committee
did not call on any external consultants during the report-
ing year.
As a rule, the Compensation Committee reviews the
individual remuneration paid to members of the Group
Executive Board every three years of employment. The
Board of Directors made no adjustments to the salary of
any member of the Group Executive Board during the
year under review.
3.2 Remuneration components
Base salary
The base salary is the remuneration paid according to
the function, qualifications and performance of the indi-
vidual member of the Group Executive Board. It is deter-
mined based on a discretionary decision taking into
account the external market value of the function and
the salary structure for the Group’s executive manage-
ment. The base salary is paid in cash.
Variable performance-related salary component
The members of the Group Executive Board are entitled to
a variable performance-related salary component which
represents 70% of the base salary if objectives are achieved
in full (performance-related bonus). The amount of the
performance-related component paid out depends on the
extent to which the targets are achieved, as set by the
Compensation Committee, taking into account the perfor-
mance evaluation by the CEO. If targets are exceeded, the
performance-related bonus may amount to no more than
130% of the target bonus. The maximum performance-re-
lated salary component is thus limited to 91% of the base
salary. This ensures that the performance-related salary
component does not exceed the annual base salary, even
taking account of the market value of the component paid
in shares.
Targets and achievement of targets for the
variable performance-related salary component
The targets for the members of the Group Executive
Board consist of financial targets as well as topics relating
to the business transformation. The target structure
therefore also anchors long-term, strategic considera-
tions such as strengthening the core business by offering
the best customer experiences and the best infrastruc-
ture, realising new growth opportunities, and continu-
ously developing operational excellence.
Overall target achievement also depends on the
achievement of the minimum EBITDA requirement,
referred to as the ‘EBITDA threshold’. The EBITDA
threshold is set annually by the Board of Directors in
relation to the Group EBITDA target. Once the EBITDA
threshold is reached, overall target achievement is
measured based on financial target achievement and
topics related to business transformation (0-130%). If
the EBITDA threshold is not reached, overall target
achievement for the members of the Group Executive
Board is 0% and no variable performance-related sal-
ary component is paid out.
Determination of target achievement
As the decisive basis for the payment of the performance-related component
1. Financial targets
2. Business transformation
3. Overall target achievement
Net revenue
EBITDA margin
Operating performance
(depending on the achievement
+/-
Customers
=
of the ‘EBITDA threshold’)
between 0% and 130%
Operating free cash flow proxy
Growth
Financial targets Fastweb
Sustainability
a) Financial targets
The financial targets underlying the variable perfor-
mance-related salary component are adopted annually
in December for the following year by the Board of
Directors following a proposal submitted by the Com-
pensation Committee. The targets relevant to the
reporting year remain unchanged from the previous
year, in line with the Group’s continuing corporate strat-
egy. The targets are based on the budget figures for the
respective year under review. The financial targets
include net revenue, operating income before interest,
taxes, depreciation and amortisation as a percentage of
net revenue (EBITDA margin), and operating free cash
Weighting of financial targets
flow proxy. The Group Executive Board members dele-
gated by Swisscom to the Board of Directors of the Ital-
ian subsidiary Fastweb S.p.A. are also measured on the
basis of the Fastweb financial targets.
The Compensation Committee’s decision is based on an
assessment of the extent to which financial targets have
been met using a scale for the overachievement and/or
underachievement of each target. The achievement of an
individual target can vary from 0% to 200%. The achieve-
ment of the financial targets is determined according to
the weighting of the individual targets and cannot exceed
200% overall.
Financial targets
Net revenue
EBITDA margin
Operating free cash flow proxy
Financial targets Fastweb
Weighting CEO, CFO and Head of IT,
Network & Infrastructure
Weighting other members
of Group Executive Board
24%
24%
32%
20%
30%
30%
40%
0%
b) Business transformation
The topics relevant to Swisscom’s long-term success
are summarised under the term ‘business transforma-
tion’. These topics strengthen the degree to which
compensation is focused on shareholder interests, as
they form the basis for comprehensively assessing
Swisscom’s performance, which is geared towards the
long term. As a result, indicators on market share, net-
work and service stability and reputation have been
included in the assessment of operating performance.
The topic of customers includes customer satisfaction
as measured by the Net Promoter Score for residential
and business customers; this is a recognised indicator
of customer loyalty. The topic of growth is measured
on the basis of innovation indicators and the imple-
mentation of strategic projects, while the new topic of
sustainability includes indicators on employee satis-
faction and Swisscom’s contribution toward protecting
the environment (CO2 reduction; ESG criterion). This
therefore incorporates Swisscom’s responsibility to
help promote society’s positive development and to
protect the environment into the remuneration sys-
tem. Further information on customer satisfaction can
be found in the Management Commentary. Further
information on Swisscom’s contribution to the environ-
ment and society can be found in the Sustainability
Report.
D See report page 38
N See www.swisscom.ch/cr-report2022
The Compensation Committee uses key figures and
deviations from the multi-year average or previous year
to deliberate on performance with respect to the busi-
ness transformation. It assesses the outcome at its own
discretion on a scale of +/– 0 to 20 percentage points.
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Business transformation topics
Securing long-term success
Business transformation
Topics
Operating performance
Customers
Growth
Sustainability
• Market share
• Stability
• Reputation
• Customer satisfaction
or net promoter score
•
Innovation or
strategic projects
• Employees
• Environment
Assessment based
among others on
• Quantitative
key figures
per topic
• Multi-year
average
• Previous year
• Current year
+/– 0 to 20 per-
centage points
on financial target
achievement
c) Overall target achievement
Overall target achievement is calculated based on
achievement of financial targets including or less the
business transformation assessment. In order to ensure
that this definition of overall target achievement appro-
priately describes the Group’s performance and reflects
shareholders’ interests in terms of long-term value crea-
tion, the Compensation Committee may, in exceptional
situations, exercise its discretion in determining the
overall target achievement in order to appropriately
depict actual management performance. In doing so, it
may take into account certain special factors e.g. cur-
rency fluctuations, extraordinary financial effects or
unforeseen industry and market developments. The
overall achievement of targets is limited to a maximum
of 130%. Based on the overall achievement of targets,
the Compensation Committee submits a proposal for
the approval of the Board of Directors for the amount of
the performance-related salary component to be paid to
the Group Executive Board and the CEO.
Thresholds for overall target achievement
200%
130%
0%
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Lower threshold
(EBITDA minimum requirement)
Upper threshold
(Cap at 130 % target achievement)
Payment of the variable performance-related
salary component
The variable performance-related salary component for a
given financial year is paid in March or April of the follow-
ing year, with 25% being paid in the form of Swisscom
shares, in accordance with the Management Incentive
Plan. Group Executive Board members may opt to increase
the share component up to a maximum of 50% of the
total variable performance-related compensation. The
remaining portion of the performance-related compo-
nent is settled in cash. In the event of a departure from
the Group Executive Board during the course of the year,
the payment of the performance-related component for
the current year is generally made in cash only. The deci-
sion as to what percentage of the variable perfor-
mance-related salary component is to be drawn in the
form of shares must be communicated prior to the end of
the reporting year, but no later than in November follow-
ing the publication of the third-quarter results. In the year
under review, three members of the Group Executive
Board opted for a higher share component. The shares are
allocated on the basis of their tax value, rounded up to
whole numbers of shares. Shares are blocked from sale
for three years. This restriction on disposal likewise
applies if the employment relationship is terminated dur-
ing the blocking period. The share-based remuneration
disclosed in the year under review is augmented by a fac-
tor of 1.19 in order to take account of the difference
between the market value and the tax value. The market
value is determined as of the date of allocation. The allo-
cation of shares for the year under review will be made in
March 2023.
In March 2022, a total of 1,536 shares (prior year: 1,454
shares) with a tax value of CHF 468 (prior year: CHF 423)
per share and a market value of CHF 557 (prior year:
CHF 504) per share were allocated for the 2021 financial
year to the members of the Group Executive Board.
Pension fund and fringe benefits
The members of the Group Executive Board, like all eligi-
ble employees in Switzerland, are insured against the
financial consequences of old age, death and disability
through the comPlan pension plan (for pension fund
regulations, see www.pk-complan.ch). The reported
pension benefits cover all savings, guarantee and risk
contributions paid by the employer to the pension plan.
They also include the pro-rata costs of the AHV bridging
pension paid by comPlan in the event of early retirement
and the premium for the term life insurance concluded
for Swisscom management staff in Switzerland. Further
information about this is provided in Note 4.3 to the
consolidated financial statements.
D See report pages 149-154
A tax-based point of view is taken in reporting service-re-
lated and non-cash benefits and expenses. The members
of the Group Executive Board are entitled to a car allow-
ance. Out-of-pocket expenses are reimbursed on a lump-
sum basis in accordance with expense reimbursement
rules approved by the tax authorities, and other expenses
are reimbursed on an actual cost basis. They are not
included in the reported remuneration.
3.3 Total remuneration (audited)
The following table shows the total remuneration paid
to the members of the Group Executive Board for the
2021 and 2022 financial years, broken down into indi-
vidual components and including the highest amount
paid to one member. In the year under review, the
financial targets relevant to remuneration were consid-
erably exceeded. At the same time, expectations in the
context of the business transformation were also
exceeded overall, particularly with respect to custom-
ers and sustainability. The EBITDA threshold was
reached. The resulting overall target achievement of
the performance-related component for both the CEO
and the other members of the Group Executive Board is
120% of the target bonus. The Board of Directors took
network faults into account when determining target
achievement. In the year under review, the variable
performance-related salary component for members
of the Group Executive Board (CHF 2,505 thousand in
total) was around 87% of the base salary (CHF 2,878 thou-
sand in total). The highest remuneration amount is
attributable to the resigned CEO, Urs Schaeppi. It is 8%
lower than in the previous year due to the fact that
100% of the performance-related component will be
paid out and payment will be effected entirely in cash
due to his resignation. The decrease in the total
amounts of remuneration paid to the Group Executive
Board is mainly attributable to the vacancy in the Head
of IT, Network & Infrastructure function, which is cur-
rently being managed by Christoph Aeschlimann on an
ad interim basis following his appointment as CEO.
Total remuneration paid is within the maximum total
amount approved by the 2021 Annual General Meeting
(AGM) for 2022 of CHF 8.7 million.
99
In CHF thousand
Fixed base salary paid in cash
Variable performance-related remuneration paid in cash
Variable performance-related remuneration paid in shares 1
Service-related and non-cash benefits
Employer contributions to social security 2
Retirement benefits
Total remuneration to members of the Group Executive Board
Benefits paid following retirement from Group Executive Board 3
Total remuneration paid to Group Executive Board,
incl. benefits paid following retirement from Board
1 The shares are reported at market value and are blocked from sale for three
years.
2 Employer contributions to social security (OASI, DI, EO and FZ, incl. administra-
tion costs, and daily sickness benefits and accident insurance) are included in
the total remuneration.
Total Group
Executive Board
2022
Total Group
Executive Board
2021
Thereof
Urs Schaeppi
2022
Thereof
Urs Schaeppi
2021
2,878
1,638
867
121
480
666
6,650
1,053
3,165
1,916
853
118
526
766
7,344
1,026
368
257
–
7
59
62
753
1,053
7,703
8,370
1,806
882
547
217
17
146
149
1,958
–
1,958
3 Contractual compensation payments made during the notice period to Group
Executive Board members who resigned from Board during the financial year
or in 2021.
3.4 Minimum shareholding requirement
The members of the Group Executive Board are required
to hold a minimum amount of Swisscom shares. The min-
imum shareholding to be held by the CEO is equivalent to
two years’ base salary and the other Group Executive
Board members are required to maintain a shareholding
equivalent to one year’s base salary. The members of the
Group Executive Board build up the prescribed sharehold-
ing over four allocation periods The members of the
Group Executive Board build up the prescribed sharehold-
ing over four allocation periods in the form of the blocked
shares paid as part of remuneration and, if necessary,
through share purchases on the open market, observing
internal trading restrictions. Compliance with the share-
holding requirement is reviewed annually by the Com-
pensation Committee. If a member’s shareholding falls
below the minimum requirement due to a drop in the
share price or a salary adjustment, the difference must be
made up by no later than the time of the next review. In
justified cases, such as personal hardship or legal obliga-
tions, the Chairman of the Board of Directors can approve
individual exceptions at his discretion.
3.5 Shareholdings of the members of the
Group Executive Board (audited)
Blocked and non-blocked shares held by members of the
Group Executive Board and/or related parties as at 31
December 2021 and 2022 are shown in the table below.
None of the individuals required to make notification
holds voting shares exceeding 0.1% of the share capital.
Number
Christoph Aeschlimann (CEO) 1
Urs Schaeppi (CEO) 2
Eugen Stermetz 3
Klementina Pejic 4
Urs Lehner
Dirk Wierzbitzki
Total shares held by the members of the Group Executive Board
31.12.2022
31 .12 .2021
713
–
175
256
1,231
1,535
3,910
422
5,445
–
–
1,019
1,323
8,209
1 Since 1 June 2022 CEO.
2 Left the Group Executive Board on 31 May 2022.
3 Elected to the Group Executive Board on 1 March 2021.
4 Elected to the Group Executive Board on 1 February 2021.
3.6 Employment contracts
The employment contracts of the members of the Group
Executive Board are subject to a twelve-month notice
period. No termination benefits apply beyond the salary
payable for a maximum of twelve months. The employ-
ment contracts stipulate that Swisscom may allow any
wrongfully awarded remuneration to lapse or may
reclaim any remuneration that is wrongfully paid. The
contracts do not contain either a non-competition clause
or a clause on change of control.
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4 Other remuneration
5 Activities at other companies
The activities performed by the members of the Board of
Directors and the Group Executive Board at other compa-
nies are listed in the Corporate Governance report.
D See report pages 67-71 (Board of Directors)
D See report pages 81-84 (Group Executive Board)
6 Gender representation
The Board of Directors complies with the legal require-
ments regarding the representation of both genders on
the Board of Directors. It aims to reach the statutory
threshold of 20% relevant for the Group Executive Board
by the end of the transition period at the end of 2030.
4.1 Remuneration for additional services
(audited)
Swisscom may pay remuneration to members of the
Board of Directors for assignments in Group companies
and assignments performed by order of Swisscom (Arti-
cle 6.4 of the Articles of Incorporation). No such remu-
neration was paid in the year under review.
N See www.swisscom.ch/basicprinciples
The members of the Group Executive Board are not enti-
tled to separate remuneration for any directorships they
hold either within or outside the Swisscom Group.
4.2 Remuneration for former members of
the Board of Directors or Group
Executive Board and related parties
(audited)
In the year under review, no remuneration was paid to
former members of the Board of Directors in connection
with their earlier activities as a member of a governing
body of the company or which are not at arm’s length.
Similarly, no such remuneration was paid to former mem-
bers of the Group Executive Board. Further, there were no
payments to individuals who are closely related to any
former or current member of the Board of Directors or the
Group Executive Board which are not at arm’s length.
4.3 Loans and credits granted (audited)
Swisscom Ltd has no statutory basis for the granting of
loans, credit facilities or pension benefits apart from the
retirement benefits paid to the members of the Board of
Directors and Group Executive Board.
In the 2022 financial year, Swisscom did not grant any col-
lateral, loans, advances or credit facilities of any kind either
to former or current members of the Board of Directors or
related parties, or to former or current members of the
Group Executive Board or related parties. There are there-
fore no corresponding receivables outstanding.
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Report of the statutory auditor
to the General Meeting of Swisscom Ltd
Ittigen
Report on the audit of the remuneration report
Opinion
We have audited the remuneration report of Swisscom Ltd (the Company) for the year ended 31 December 2022. The
audit was limited to the information on remuneration, loans and advances pursuant to Art. 14 to 16 of the Ordinance
against Excessive Remuneration in Listed Companies Limited by Shares (Ordinance) contained in the sections 2.3, 2.5,
3.3, 3.5 and 4.1 to 4.3 on pages 89 to 101 of the remuneration report.
In our opinion, the information on remuneration, loans and advances in the remuneration report (pages 89 to 101) com-
plies with Swiss law and article 14 to 16 of the Ordinance.
Basis for opinion
We conducted our audit in accordance with Swiss law and Swiss Standards on Auditing (SA-CH). Our responsibilities
under those provisions and standards are further described in the 'Auditor’s responsibilities for the audit of the remunera-
tion report' section of our report. We are independent of the Company in accordance with the provisions of Swiss law
and the requirements of the Swiss audit profession, and we have fulfilled our other ethical responsibilities in accordance
with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Other information
The Board of Directors is responsible for the other information. The other information comprises the information included
in the annual report, but does not include the tables marked 'audited' in the remuneration report, the consolidated finan-
cial statements, the financial statements and our auditor’s reports thereon.
Our opinion on the remuneration report does not cover the other information and we do not express any form of assur-
ance conclusion thereon.
In connection with our audit of the remuneration report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the audited financial information in the remuner-
ation report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we
are required to report that fact. We have nothing to report in this regard.
Board of Directors' responsibilities for the remuneration report
The Board of Directors is responsible for the preparation of a remuneration report in accordance with the provisions of
Swiss law and the company's articles of incorporation, and for such internal control as the Board of Directors determines
is necessary to enable the preparation of a remuneration report that is free from material misstatement, whether due to
fraud or error. The Board of Directors is also responsible for designing the remuneration system and defining individual
remuneration packages.
Auditor’s responsibilities for the audit of the remuneration report
Our objectives are to obtain reasonable assurance about whether the information on remuneration, loans and advances
pursuant to article 14 to 16 of the Ordinance is free from material misstatement, whether due to fraud or error, and to
PricewaterhouseCoopers AG, Birchstrasse 160, Postfach, 8050 Zürich, Switzerland
Telefon: +41 58 792 44 00, www.pwc.ch
PricewaterhouseCoopers AG is a member of the global PricewaterhouseCoopers network of firms, each of which is a separate and independent legal entity.
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guar-
antee that an audit conducted in accordance with Swiss law and SA-CH will always detect a material misstatement when
it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of this remuneration re-
port.
As part of an audit in accordance with Swiss law and SA-CH, we exercise professional judgment and maintain profes-
sional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement in the remuneration report, whether due to fraud or error, de-
sign and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropri-
ate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropri-
ate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's in-
ternal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and re-
lated disclosures made.
We communicate with the Board of Directors or its relevant committee regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that
we identify during our audit.
We also provide the Board of Directors or its relevant committee with a statement that we have complied with relevant
ethical requirements regarding independence, and communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safe-
guards applied.
PricewaterhouseCoopers AG
Peter Kartscher
Audit expert
Auditor in charge
Zürich, 8 February 2023
Petra Schwick
Audit expert
Swisscom Ltd | Report of the statutory auditor to the General Meeting
103
Consolidated
Financial Statements
Consolidated
Financial Statements ________
Consolidated statement of comprehensive income . . . .
106
Consolidated balance sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
Consolidated statement of cash flows . . . . . . . . . . . . . . . . .
108
Consolidated statement of changes in equity . . . . . . . . . .
109
Notes to the consolidated
financial statements _________
1 Operating performance
1 .1 Segment information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
1 .2 Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
2 Capital and financial risk management
2 .1 Capital management and equity . . . . . . . . . . . . . . . . . . . 120
2 .2 Financial liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
2 .3 Leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
2 .4 Financial result . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
2 .5 Financial risk management . . . . . . . . . . . . . . . . . . . . . . . . . 129
3 Operating assets and liabilities
3 .1 Net current operating assets . . . . . . . . . . . . . . . . . . . . . . . 137
3 .2 Property, plant and equipment . . . . . . . . . . . . . . . . . . . .
140
3 .3 Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
142
3 .4 Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
3 .5 Provisions and contingent liabilities . . . . . . . . . . . . . . . . . 145
4 Employees
4 .1 Employee headcount and personnel expense . . . . . .
148
4 .2 Key management compensation . . . . . . . . . . . . . . . . . .
149
4 .3 Defined benefit plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
149
5 Scope of consolidation
5 .1 Group structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
5 .2 Changes in the scope of consolidation . . . . . . . . . . . . . . 156
5 .3 Equity-accounted investees . . . . . . . . . . . . . . . . . . . . . . . . 157
5 .4 Group companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
6 Other disclosures
6 .1 Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
6 .2 Related parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
164
6 .3 Other accounting policies . . . . . . . . . . . . . . . . . . . . . . . . . . 165
Report of the statutory auditor . . . . . . . . . . . . . . . . . . . . . . . .
166
105
Consolidated Financial Statements
Consolidated statement
of comprehensive income
In CHF million, except for per share amounts
Note
2022
2021
Income statement
Net revenue
Direct costs
Personnel expense
Other operating expense
Capitalised self-constructed assets and other income
Operating income before depreciation and amortisation
Depreciation and amortisation of property, plant and equipment and intangible assets
Depreciation of right-of-use assets
Operating income
Financial income
Financial expense
Result of equity-accounted investees
Income before income taxes
Income tax expense
Net income
Other comprehensive income
Actuarial gains and losses from defined benefit pension plans
Change in fair value of equity instruments
Items that will not be reclassified to income statement
Foreign currency translation adjustments of foreign subsidiaries
Change in cash flow hedges
Other comprehensive income from equity-accounted investees
Items that may be reclassified to income statement
Other comprehensive income
Comprehensive income
Net income
Other comprehensive income
Comprehensive income
Share of net income and comprehensive income
Equity holders of Swisscom Ltd
Non-controlling interests
Net income
Equity holders of Swisscom Ltd
Non-controlling interests
Comprehensive income
Earnings per share
1 .1
1 .2
1 .2, 4 .1
1 .2
1 .2
3 .2, 3 .3
2 .3
2 .4
2 .4
5 .3
6 .1
2 .1
2 .1
2 .1
2 .1
2 .1
11,112
11,183
(2,687)
(2,705)
(1,982)
668
4,406
(2,104)
(262)
2,040
76
(148)
(5)
1,963
(360)
1,603
41
(38)
3
(96)
(4)
–
(100)
(97)
1,603
(97)
1,506
1,602
1
1,603
1,505
1
1,506
(2,779)
(2,667)
(1,857)
598
4,478
(2,131)
(281)
2,066
269
(173)
(10)
2,152
(319)
1,833
638
71
709
(75)
(6)
2
(79)
630
1,833
630
2,463
1,832
1
1,833
2,462
1
2,463
Basic and diluted earnings per share (in CHF)
2 .1
30.93
35.37
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Consolidated balance sheet
In CHF million
Assets
Cash and cash equivalents
Trade receivables
Receivables from finance leases
Other operating assets
Other financial assets
Current income tax assets
Total current assets
Property, plant and equipment
Intangible assets
Goodwill
Right-of-use assets
Equity-accounted investees
Receivables from finance leases
Other financial assets
Defined benefit assets
Deferred tax assets
Total non-current assets
Total assets
Liabilities and equity
Financial liabilities
Lease liabilities
Trade payables
Other operating liabilities
Provisions
Current income tax liabilities
Total current liabilities
Financial liabilities
Lease liabilities
Defined benefit obligations
Provisions
Deferred gain on sale and leaseback of real estate
Deferred tax liabilities
Total non-current liabilities
Total liabilities
Share capital
Capital reserves
Retained earnings
Foreign currency translation adjustments
Hedging reserves
Equity attributable to equity-holders of Swisscom Ltd
Non-controlling interests
Total equity
Total liabilities and equity
Note
31.12.2022
31 .12 .2021
3 .1
2 .3
3 .1
6 .1
3 .2
3 .3
3 .4
2 .3
5 .3
2 .3
4 .3
6 .1
2 .2
2 .3
3 .1
3 .1
3 .5
6 .1
2 .2
2 .3
4 .3
3 .5
2 .3
6 .1
2 .1
2 .1
2 .1
121
2,255
53
1,353
64
2
3,848
10,811
1,741
5,172
1,992
26
78
747
11
194
401
2,315
33
1,179
93
2
4,023
10,771
1,714
5,157
2,134
30
66
691
11
204
20,772
24,620
20,778
24,801
547
232
1,674
1,571
88
194
4,306
5,455
1,679
22
1,071
85
831
9,143
13,449
52
136
12,942
(1,960)
(2)
559
217
1,600
1,617
118
230
4,341
5,886
1,800
24
1,031
95
811
9,647
13,988
52
136
12,485
(1,864)
2
11,168
10,811
3
11,171
24,620
2
10,813
24,801
107
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Consolidated statement
of cash flows
In CHF million
Net income
Income tax expense
Result of equity-accounted investees
Financial income
Financial expense
Note
6 .1
5 .3
2 .4
2 .4
Depreciation and amortisation of property, plant and equipment and intangible assets
3 .2, 3 .3
Depreciation of right-of-use assets
Gain on sale of property, plant and equipment
Loss on disposal of property, plant and equipment
Expense for share-based payments
Revenue from finance leases
Proceeds from finance leases
Change in deferred gain from the sale and leaseback of real estate
Change in operating assets and liabilities
Change in provisions
Change in defined benefit obligations
Interest received
Dividends received
Interest payments on financial liabilities
Interest payments on lease liabilities
Income taxes paid
Cash flow from operating activities
2 .3
1 .2
2 .3
3 .1
3 .5
4 .3
5 .3
2 .2
2 .3
6 .1
Purchase of property, plant and equipment and intangible assets
3 .2, 3 .3
Proceeds from sale of property, plant and equipment and intangible assets
Acquisition of subsidiaries, net of cash and cash equivalents acquired
Proceeds from sale of subsidiaries, net of cash and cash equivalents sold
Acquisition of equity-accounted investees
Proceeds from sale of equity-accounted investees
Purchase of other financial assets
Proceeds from other financial assets
Other cash flows from investing activities
Cash flow used in investing activities
Issuance of financial liabilities
Repayment of financial liabilities
Repayment of lease liabilities
Dividends paid to equity holders of Swisscom Ltd
Dividends paid to non-controlling interests
Acquisition of non-controlling interests
Other cash flows from financing activities
Cash flow used in financing activities
(Net decrease) net increase in cash and cash equivalents
Cash and cash equivalents at 1 January
Foreign currency translation adjustments in respect of cash and cash equivalents
Cash and cash equivalents at 31 December
5 .2
5 .2
5 .2
5 .2
2 .2
2 .2
2 .3
2 .1
5 .2
2022
1,603
360
5
(76)
148
2,104
262
(11)
3
1
(134)
106
(10)
(85)
31
49
2
2
(62)
(44)
(378)
3,876
(2,289)
15
(67)
–
(2)
–
(142)
68
(13)
2021
1,833
319
10
(269)
173
2,131
281
(10)
–
1
(120)
112
(11)
65
(73)
(9)
14
1
(81)
(44)
(279)
4,044
(2,270)
17
(42)
1
(3)
149
(73)
120
(19)
(2,430)
(2,120)
209
(535)
(240)
350
(792)
(259)
(1,140)
(1,140)
(1)
(14)
–
(1)
–
(14)
(1,721)
(1,856)
(275)
401
(5)
121
68
340
(7)
401
Consolidated statement
of changes in equity
In CHF million
Share
capital
Capital
reserves
Foreign
currency
Retained translation
earnings adjustments
Equity
attributable
Non-
to equity
Hedging holders of controlling
interests
Swisscom
reserves
Balance at 1 January 2021
52
136
11,085
(1,791)
Net income
Other comprehensive income
Comprehensive income
Dividends paid
Other changes
–
–
–
–
–
–
–
–
–
–
1,832
709
2,541
(1,140)
(1)
–
(73)
(73)
–
–
Balance at 31 December 2021
52
136
12,485
(1,864)
Net income
Other comprehensive income
Comprehensive income
Dividends paid
Other changes
–
–
–
–
–
–
–
–
–
–
1,602
3
1,605
(1,140)
(8)
–
(96)
(96)
–
–
8
–
(6)
(6)
–
–
2
–
(4)
(4)
–
–
9,490
1,832
630
2,462
(1,140)
(1)
10,811
1,602
(97)
1,505
(1,140)
(8)
Balance at 31 December 2022
52
136
12,942
(1,960)
(2)
11,168
Total
equity
9,491
1,833
630
2,463
1
1
–
1
(1)
(1,141)
1
2
1
–
1
(1)
1
3
–
10,813
1,603
(97)
1,506
(1,141)
(7)
11,171
109
Notes to the consolidated
financial statements
The financial report is a translation from the original German version. In case of any inconsistency the German
version shall prevail.
General information and changes in accounting policies
General disclosures
The Swisscom Group (hereinafter referred to as Swisscom) provides telecommunications services. It operates
mainly in Switzerland and Italy. The consolidated financial statements for the year ended 31 December 2022
comprise Swisscom Ltd, as the holding company, and its subsidiaries. Swisscom Ltd is a public limited company
with special status under Swiss law and has its registered office in Ittigen (Berne). Its address is: Swisscom Ltd,
Alte Tiefenaustrasse 6, 3048 Worblaufen. Swisscom is listed on the SIX Swiss Exchange. The number of issued
shares is unchanged from the prior year and totals 51,801,943. The shares have a nominal value of CHF 1 and are
fully paid-up. Each share entitles the holder to one vote. The majority shareholder of Swisscom Ltd remains, as in
the prior year, the Swiss Confederation (‘Confederation’). The Confederation is obligated by current law to hold
the majority of the capital and voting rights. The Board of Directors of Swisscom approved the issuance of these
consolidated financial statements on 8 February 2023. To date, no material events after the reporting date have
occurred. The consolidated financial statements are subject to approval by the shareholders of Swisscom Ltd at
its Annual General Meeting to be held on 28 March 2023.
Basis of preparation
The consolidated financial statements of Swisscom have been prepared in accordance with International Financial
Reporting Standards (IFRS), and in compliance with the provisions of Swiss law. The reporting period covers twelve
months. The consolidated financial statements are presented in Swiss francs (CHF), which corresponds to the
functional currency of Swisscom Ltd. Unless otherwise noted, all amounts are stated in millions of Swiss francs.
The consolidated financial statements are drawn up on the historical cost basis, unless a standard or interpreta-
tion prescribes another measurement basis for a particular line item, in which case this is explicitly stated in the
accounting policies. Material accounting policies of relevance for an understanding of the consolidated financial
statements are set out in the specific notes to the financial statements.
Significant judgements, estimates and assumptions in applying the accounting policies
The preparation of consolidated financial statements is dependent upon assumptions and estimates being made
in applying the accounting policies, for which management can exercise a certain degree of judgement. In par-
ticular, this concerns the following positions.
Description
Leases
Property, plant and equipment
Intangible assets
Goodwill
Provisions for dismantlement and restoration costs
Provision for regulatory and competition law procedures
Defined benefit plans
Further information
Note 2 .3
Note 3 .2
Note 3 .3
Note 3 .4
Note 3 .5
Note 3 .5
Note 4 .3
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Amendments to International Financial Reporting Standards and Interpretations which
are to be applied for the first time in the financial year
Standard
Name
Amendments to IFRS 3
References to conceptual framework
Amendments to IAS 16
Property, plant and equipment: Income before intended use
Amendments to IAS 37
Onerous contracts: Cost of fulfilling a contract
Various
Amendments to IFRS 2018-2020
As of 1 January 2022, Swisscom adopted various amendments to existing International Financial Reporting
Standards (IFRS) and Interpretations, which have no material impact on the results or financial position of the
Group. Further information regarding the changes to the IFRS which must be applied in 2023 or later are set out in
Note 6.3.
111
1 Operating performance
This chapter sets out information on the operating performance of Swisscom
in the current financial year . The classification according to operating segments
corresponds to the reporting system used internally to evaluate performance
and allocate resources as well as to Swisscom’s management structure .
1.1 Segment information
Changes in segment reporting
Swisscom has simplified its internal allocation as of 1 January 2022. The costs of roaming calls and termination
on the networks of other telecommunications providers are no longer charged to the Residential Customers and
Business Customers segments and instead remain in the Wholesale segment. In return, revenue from termination
on Swisscom’s network is no longer credited to the Residential Customers and Business Customers segments
and instead also remains in the Wholesale segment. In addition, Swisscom has reallocated certain areas within
Swisscom Switzerland to the segments as of 1 January 2022. The prior year’s figures have been restated as follows:
In CHF million
Net revenue
2021 financial year
Residential Customers
Business Customers
Wholesale
Infrastructure & Support Functions
Elimination
Swisscom Switzerland
Fastweb
Other Operating Segments
Elimination
Total net revenue
Segment result
2021 financial year
Residential Customers
Business Customers
Wholesale
Infrastructure & Support Functions
Elimination
Swisscom Switzerland
Fastweb
Other Operating Segments
Elimination
Total segment result
Reported
Adjustment
Restated
4,592
3,058
971
76
(464)
8,233
2,583
1,033
(666)
11,183
2,676
1,189
524
(2,644)
1
1,746
197
99
(20)
2,022
(47)
(27)
(317)
–
391
–
–
–
–
–
145
88
(227)
(6)
–
–
–
–
–
–
4,545
3,031
654
76
(73)
8,233
2,583
1,033
(666)
11,183
2,821
1,277
297
(2,650)
1
1,746
197
99
(20)
2,022
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General disclosures
Swisscom Group
Swisscom Switzerland
Residential
Customers
Business
Customers
Wholesale
Infrastructure
& Support
Functions
Fastweb
Other Operating
Segments
Segment
Activity
Residential Customers
Business Customers
Wholesale
The Residential Customers segment provides mobile and fixed-network services to residential customers in Switzer-
land, such as telephony, broadband, TV and mobile offerings . The segment also includes the sale of terminal equip-
ment .
The Business Customers segment focuses on telecom services and overall communications solutions for business
customers in Switzerland . Its offering in the area of business ICT infrastructure covers the entire range from individual
products to complete solutions .
This segment incorporates the use of the Swisscom fixed-line and mobile network by other telecommunications ser-
vice providers and the use of external networks by Swisscom . In addition, Wholesale includes roaming by foreign
operators whose customers use the Swisscom mobile network, as well as broadband services and regulated access
services to the access network .
Infrastructure & Support Functions The segment Infrastructure & Support Functions is responsible for the planning, operation and maintenance of
Swisscom’s network infrastructure and all IT systems . It is responsible for the development and production of IT and
network services in Switzerland . In addition, Infrastructure & Support Functions also includes Group-wide support
functions such as finance, human resources or strategy as well as the management of real estate and the vehicle fleet
in Switzerland .
Fastweb
Other Operating Segments
Fastweb provides broadband and mobile services to residential, business and wholesale customers in Italy . The offer-
ing includes telephony, broadband and mobile offerings . For business customers, Fastweb offers comprehensive ICT
solutions .
Other Operating Segments mainly comprises Digital Business and Participations . Digital Business mainly comprises
Swisscom Directories Ltd (localsearch), which operates in the field of online directories . Participations mainly com-
prises the subsidiaries cablex Ltd and Swisscom Broadcast Ltd . The operations of cablex Ltd are in the building and
maintenance of wired and wireless networks in Switzerland, primarily in the field of telecommunications . Swisscom
Broadcast Ltd is the leading provider in Switzerland of broadcast services, of cross-platform retail media services, and
of security communications .
Reporting is divided into the following segments: Residential Customers, Business Customers, Wholesale, and
Infrastructure & Support Functions, which are grouped under Swisscom Switzerland, as well as Fastweb and
Other Operating Segments.
For its services, the Infrastructure & Support Functions segment does not charge any network costs or manage-
ment fees whatsoever to other segments. All other services between the segments are charged at market prices.
The results of the Residential Customers, Business Customers and Wholesale segments thus correspond to a
contribution margin before network costs.
Segment expense encompasses the direct and indirect costs, which include personnel expense and other oper-
ating costs less capitalised costs of self-constructed assets and other income. Pension cost includes ordinary
employer contributions. The difference between the ordinary employer contributions and the pension cost as
provided for under IAS 19 is reported in the column ‘Eliminations’. The Eliminations segment result of CHF –79 mil-
lion (prior year: CHF –20 million) includes an expense of CHF 53 million (prior year: income of CHF 14 million) as
a pension cost reconciliation item in accordance with IAS 19.
Leases between the segments are not recognised in the balance sheet in accordance with IFRS 16. The reported
lease expense of the segments comprises depreciation and interest on right-of-use assets excl. depreciation of pre-
paid indefeasible rights of use (IRU) of CHF 20 million (prior year: CHF 23 million), impairments on right-of-use
assets of CHF 1 million in the prior year and the accounting for the rental of buildings between segments. The lease
expense of assets of low value is presented as direct costs.
Capital expenditure consists of the purchase of property, plant and equipment and intangible assets and pay-
ments for indefeasible rights of use (IRU). In general, IRU are paid in full at the beginning of the usage period. If
113
the criteria of IFRS 16 are met, they are classified as a lease. From an economic point of view, pre-paid IRU will be
considered as capital expenditure in the segment information. IRU payments in 2022 amounted to CHF 20 mil-
lion (prior year: CHF 16 million).
Swisscom Switzerland sometimes sells mobile handsets at a subsidised rate as part of a bundled offering with a
mobile contract. As a result of the reallocation of revenue over the pre-delivered components (mobile handset),
revenue is recognised earlier than the date of invoicing. This results in contract assets deriving from this business
being recognised. In the segment reporting of Swisscom Switzerland, the recognition and derecognition of these
contract assets is reported as other revenue. The amounts invoiced are reported under revenue from telecoms
services or merchandise.
Segment information 2022
2022, in CHF million
Residential customers
Corporate customers
Wholesale customers
Net revenue from external customers
Net revenue from other segments
Net revenue
Direct costs
Indirect costs
Segment result before depreciation and amortisation
Lease expense
Depreciation and amortisation
Segment result
Interest expense on lease liabilities
Operating income
Financial income and financial expense, net
Result of equity-accounted investees
Income before income taxes
Income tax expense
Net income
Swisscom
Switzerland
4,511
3,098
601
8,210
60
8,270
(1,799)
(2,988)
3,483
(218)
(1,489)
1,776
Other
Operating
Segments
–
417
–
417
621
Fastweb
1,150
1,019
316
2,485
8
2,493
1,038
(879)
(757)
857
(57)
(602)
198
(76)
(802)
160
(10)
(49)
101
Elimi-
nation
–
–
–
–
(689)
(689)
67
528
(94)
(1)
16
(79)
Segment result before depreciation and amortisation
Capital expenditure
Lease expense
Operating free cash flow proxy
3,483
(1,698)
(218)
1,567
857
(619)
(57)
181
160
(34)
(10)
116
(94)
42
(1)
(53)
Total
5,661
4,534
917
11,112
–
11,112
(2,687)
(4,019)
4,406
(286)
(2,124)
1,996
44
2,040
(72)
(5)
1,963
(360)
1,603
4,406
(2,309)
(286)
1,811
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Segment information Swisscom Switzerland 2022
Residential
Customers
Business
Customers
Whole-
sale
Infrastructure
& Support
Functions
Elimi-
nation
Total
Swisscom
Switzerland
Segment result before depreciation and amortisation
2,975
1,384
2,006
1,855
3,861
–
518
–
132
840
748
1,588
1,181
313
–
(1)
4,511
3,081
16
48
4,527
3,129
(878)
(674)
(765)
(980)
(40)
(60)
(30)
(76)
2,875
1,278
–
–
–
–
–
601
–
601
11
612
(308)
(13)
291
(1)
–
290
–
–
–
–
–
–
17
17
54
71
(8)
(1,229)
(1,166)
(149)
(1,352)
(2,667)
(55)
(47)
–
(1,596)
Swisscom
Switzerland
4,529
3,004
644
8,177
56
8,233
(1,826)
(2,954)
3,453
(232)
(1,475)
1,746
Other
Operating
Segments
–
431
–
431
602
Fastweb
1,233
1,057
285
2,575
8
2,583
1,033
(933)
(758)
892
(58)
(637)
197
(72)
(795)
166
(11)
(56)
99
–
–
–
–
–
–
–
–
(69)
(69)
160
(92)
(1)
2
(1)
–
–
Elimi-
nation
–
–
–
–
(666)
(666)
52
581
(33)
–
13
(20)
2022, in CHF million
Fixed-line
Mobile
Telecom services
Solution business
Merchandise
Wholesale
Revenue other
Net revenue from external customers
Net revenue from other segments
Net revenue
Direct costs
Indirect costs
Lease expense
Depreciation and amortisation
Segment result
Capital expenditure
Segment information 2021
2021, in CHF million, restated
Residential customers
Corporate customers
Wholesale customers
Net revenue from external customers
Net revenue from other segments
Net revenue
Direct costs
Indirect costs
Segment result before depreciation and amortisation
Lease expense
Depreciation and amortisation
Segment result
Interest on lease liabilities
Operating income
Financial income and financial expense, net
Result of equity-accounted investees
Income before income taxes
Income tax expense
Net income
Segment result before depreciation and amortisation
Capital expenditure
Lease expense
Operating free cash flow proxy
3,453
(1,642)
(232)
1,579
892
(649)
(58)
185
166
(41)
(11)
114
(33)
46
–
13
2,846
2,603
5,449
1,181
831
601
148
8,210
60
8,270
(1,799)
(2,988)
3,483
(218)
(1,489)
1,776
(1,698)
Total
5,762
4,492
929
11,183
–
11,183
(2,779)
(3,926)
4,478
(301)
(2,155)
2,022
44
2,066
96
(10)
2,152
(319)
1,833
4,478
(2,286)
(301)
1,891
115
Segment information Swisscom Switzerland 2021
Segment result before depreciation and amortisation
2,916
1,375
2021, in CHF million, restated
Fixed-line
Mobile
Telecom services
Solution business
Merchandise
Wholesale
Revenue other
Net revenue from external customers
Net revenue from other segments
Net revenue
Direct costs
Indirect costs
Lease expense
Depreciation and amortisation
Segment result
Capital expenditure
Disclosure by geographical regions
In CHF million
Switzerland
Italy
Other countries
Not allocated
Total
Disclosure by products and services
In CHF million
Telecom services
Solution business
Merchandise
Wholesale
Revenue other
Total net revenue
Residential
Customers
Business
Customers
Whole-
sale
Infrastructure
& Support
Functions
Elimi-
nation
Total
Swisscom
Switzerland
2,001
1,854
3,855
–
544
–
130
866
777
1,643
1,111
228
–
–
4,529
2,982
16
49
4,545
3,031
(941)
(688)
(712)
(944)
(40)
(55)
(31)
(67)
2,821
1,277
–
–
–
–
–
644
–
644
10
654
(339)
(17)
298
(1)
–
297
–
–
–
–
–
–
22
22
54
76
(7)
(1,206)
(1,137)
(160)
(1,353)
(2,650)
(40)
(42)
–
(1,560)
–
–
–
–
–
–
–
–
(73)
(73)
173
(99)
1
–
–
1
–
2,867
2,631
5,498
1,111
772
644
152
8,177
56
8,233
(1,826)
(2,954)
3,453
(232)
(1,475)
1,746
(1,642)
2022
Non-current
assets
16,103
3,629
10
1,030
20,772
2021
Non-current
assets
15,984
3,811
11
972
Net revenue
8,579
2,575
29
–
11,183
20,778
Net revenue
8,627
2,485
–
–
11,112
2022
7,538
1,181
894
917
582
2021
7,673
1,111
851
942
606
11,112
11,183
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Accounting policies
Telecoms services
Telecoms services encompass mobile and fixed-network services both in Switzerland and abroad. Mobile phone
services comprise the basic charges; in addition, they include the domestic and international cellular traffic by
Swisscom customers within Switzerland and abroad. Swisscom offers subscriptions with a monthly flat-rate fee,
the revenue for which is recognised on a straight-line basis over the minimum term of the contract. Depending
on the type of subscription, revenue is also recognised on the basis of the minutes used. The minimum contract
term is generally 12 or 24 months. If a mobile handset is sold as part of a bundled offering with a subscription, it
is considered a multiple-element contract. Similar multiple-element contracts are grouped into portfolios for
revenue accounting. The total transaction price for multiple-element contracts is allocated to each identified
performance obligation on the basis of relative stand-alone selling prices. In this process, the stand-alone selling
price of each component is considered in relation to the sum of the stand-alone selling prices of all performance
obligations under the contract. The stand-alone selling prices of mobile handsets and subscriptions correspond
to Swisscom’s list price and the minimum contract term. Non-refundable connection fees which do not consti-
tute a separate performance obligation are considered as part of the total transaction price and allocated to the
separate performance obligations arising under the customer contract on a pro rata basis. In the event that there
is no minimum contract term, the revenue is recognised at the time of connection. Fixed-network services prin-
cipally comprise the basic charges for fixed telephony, broadband and TV connections, as well as the domestic
and international telephony traffic of individuals and corporate customers. In addition, Swisscom makes bun-
dled offerings comprising broadband and TV connections with an optional fixed-line telephony connection.
These subscription fees are flat rate. The minimum contract term is twelve months. Revenues are recognised on
a straight-line basis over the term of the contract. Revenue for telephone calls is recognised at the time when the
calls are made.
Solutions
The service area of communications and IT solutions principally comprise advisory services and the implementation,
maintenance and operation of communication infrastructures. Furthermore, the area includes applications and
services, as well as the integration, operation and maintenance of data networks and outsourcing services. Rev-
enue from customer-specific orders is recognised using a measure of progress method, which is measured on the
basis of the relationship of the costs incurred to total anticipated costs. Revenue arising on long-term outsourcing
contracts is recognised as a function of performance to date provided to the customer. The duration of these con-
tracts is generally between three and seven years. Transition projects in connection with an outsourcing con-
tract are not recorded as separate performance obligations. Maintenance revenues are recognised on a straight-
line basis over the term of the maintenance contracts. Variable consideration is only included in the transaction
price if it is highly probable that no significant revenue reversals will occur in the future.
Sales of merchandise
Mobile handsets, fixed-line devices and miscellaneous supplies are recognised as revenue at the time of delivery
or provision of the service. Swisscom sells routers and TV boxes to be used for services provided by Swisscom. As
these devices are only compatible with the Swisscom network and cannot be used for networks of other tele-
communications service providers, they are not recorded as separate performance obligations. Revenue is
deferred and recognised over the minimum contract term of the related broadband or TV subscription.
Wholesale
The services principally comprise leased lines and the use of the Swisscom fixed network by other telecommuni-
cations service providers (roaming). Leased-line charges are recognised as revenue on a straight-line basis over
the terms of the contract. Roaming services are recognised as revenue on the basis of the call minutes or as
contractually agreed charges as of the time of providing the service. Roaming fees charged to other telecommu-
nications service providers are reported on a gross basis.
117
1.2 Operating expenses
Direct costs
In CHF million
Customer premises equipment and merchandise
Services purchased
Costs to obtain a contract
Costs to fulfil a contract
Network access costs of Swiss subsidiaries
Network access costs of foreign subsidiaries
Total direct costs
Indirect costs
In CHF million
Salary and social security expenses
Other personnel expense
Total personnel expense 1
Information technology cost
Maintenance expense
Energy costs
Advertising and selling expenses
Consultancy expenses and freelance workforce
Call centre services purchased
Administration expense
Allowances for receivables and contract assets
Miscellaneous operating expenses
Total other operating expense
Capitalised self-constructed tangible and intangible assets
Own work for capitalised contract costs
Gain on sale of property, plant and equipment
Miscellaneous income
Total capitalised self-constructed assets and other income
Total indirect costs
1 See Note 4.1.
2022
977
705
222
86
308
389
2021
965
730
219
101
338
426
2,687
2,779
2022
2,637
68
2,705
267
303
152
193
117
129
49
42
730
1,982
(485)
(54)
(11)
(118)
(668)
2021
2,580
87
2,667
257
284
120
201
127
139
59
64
606
1,857
(432)
(60)
(11)
(95)
(598)
4,019
3,926
Other operating expenses include, among other items, newly established provisions for regulatory and competition
law proceedings. See Note 3.5.
Capitalised self-constructed tangible and intangible assets include personnel costs accrued in the manu facturing of
technical installations, the construction of network infrastructure and the development of software for internal use.
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Accounting policies
Costs to obtain a contract
Swisscom pays commissions to dealers for the acquisition and retention of mobile phone customers. The commission
payable is dependent on the type of subscription. Costs to obtain a contract are deferred and amortised over the
related revenue-recognition period. In addition, Swisscom will reimburse the dealer for any handset subsidies
they grant to customers when they take out a Swisscom mobile subscription at the same time. The associated
costs are deferred and recognised on a straight-line basis over the contract term as the costs of obtaining a
contract. The amortisation period corresponds to the related revenue-recognition period. See Note 1.1.
Costs to fulfil a contract
In connection with a broadband or TV subscription, the customer must purchase a router or TV box in order to
use the services of Swisscom. Routers and TV boxes may be used exclusively for services provided by Swisscom.
The cost of routers and TV boxes are reported as costs to fulfil a contract and amortised over the minimum term
of the contract. The set-up costs incurred to transfer and integrate outsourcing transactions with corporate
customers are deferred and amortised against income on a straight-line basis over the duration of the operating
contract. The amortisation period corresponds to the related revenue-recognition period. See Note 1.1.
119
2 Capital and financial risk management
The following chapter sets out the procedures and guidelines governing the
active management of the capital structure and the financial risks to which
Swisscom is exposed . Swisscom strives to achieve a robust equity basis, which
enables it to guarantee its ability to continue as a going concern and to offer
investors an appropriate return based on the risks assumed .
2.1 Capital management and equity
Debt
Swisscom’s debt situation is aligned with the limit on net debt in relation to the operating result before depreciation
and amortisation (EBITDA) as set by the Federal Council in its financial targets. Swisscom also has a single A credit
rating with rating agencies Standard & Poor’s and Moody’s. Swisscom aims to maintain this rating. During the
year under review, the Federal Council adjusted the financial targets for Swisscom and set the limit for net debt
at 2.4x EBITDA. Previously, the limit on net debt excluding lease liabilities was 2.1x EBITDA after lease expense.
Net debt comprises financial liabilities and lease liabilities less cash and cash equivalents, listed debt instruments,
financial assets relating to financing and other current financial assets. The net debt to EBITDA ratio is as follows:
In CHF million
Net debt
Operating income before depreciation and amortisation (EBITDA)
Ratio net debt/EBITDA
31.12.2022
31 .12 .2021
7,374
4,406
1.7
7,706
4,478
1.7
Equity ratio
Swisscom strives to achieve an equity ratio of a minimum of 30%. The equity ratio is computed as follows:
In CHF million
Equity
Total assets
Equity ratio in %
31.12.2022
31 .12 .2021
11,171
24,620
45.4
10,813
24,801
43.6
Dividend policy
Swisscom pursues a dividend policy with a stable dividend, taking into account its financial situation and cash flow
generation. Distributable reserves are not determined on the basis of the equity as reported in the consolidated
financial statements but rather on the basis of equity as reported in the statutory financial statements of the
parent company, Swisscom Ltd. As at 31 December 2022, Swisscom Ltd’s distributable reserves amounted to
CHF 7,846 million. The dividend is proposed by the Board of Directors and must be approved by the Annual General
Meeting of Shareholders. Treasury shares are not entitled to a dividend. Swisscom Ltd paid the following dividends
in 2021 and 2022.
In CHF million, except where indicated
Number of registered shares eligible for dividend (in millions of shares)
Ordinary dividend per share (in CHF)
Dividends paid
2022
51 .802
22 .00
1,140
2021
51 .802
22 .00
1,140
The Board of Directors will propose the payment of an unchanged dividend of CHF 22 per share for the 2022
financial year to the Annual General Meeting of Shareholders of Swisscom Ltd on 28 March 2023. This results in
a total dividend payment of CHF 1,140 million. The dividend payment is scheduled for 4 April 2023.
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Earnings per share
In CHF million, except where indicated
Share of net income attributable to equity holders of Swisscom Ltd
Weighted average number of shares outstanding (number)
Basic and diluted earnings per share (in CHF)
2022
1,602
2021
1,832
51,800,968
51,801,334
30.93
35.37
Supplementary information on equity
Development of retained earnings and other reserves as well as comprehensive income 2022
In CHF million
Balance at 1 January 2022
Net income
Actuarial gains and losses from defined
benefit pension plans
Change in fair value of equity instruments
Income tax expense
Items that will not be reclassified
to income statement
Foreign currency translation adjustments
of foreign subsidiaries
Fair value losses of cash flow hedges transferred
to income statement
Equity-accounted investees
Income tax expense
Items that may be reclassified
to income statement
Other comprehensive income
Comprehensive income
Dividends paid
Other changes
Foreign
currency
Retained
translation
earnings adjustments
12,485
(1,864)
1,602
48
(37)
(8)
3
–
–
–
–
–
3
1,605
(1,140)
(8)
–
–
–
–
–
(103)
–
–
7
(96)
(96)
(96)
–
–
Balance at 31 December 2022
12,942
(1,960)
Hedging
reserves
Equity
holders of
Swisscom
Non-
controlling
interests
2
–
–
–
–
–
–
(5)
–
1
(4)
(4)
(4)
–
–
(2)
10,623
1,602
48
(37)
(8)
3
(103)
(5)
–
8
(100)
(97)
1,505
(1,140)
(8)
10,980
2
1
–
–
–
–
–
–
–
–
–
–
1
(1)
1
3
Total
10,625
1,603
48
(37)
(8)
3
(103)
(5)
–
8
(100)
(97)
1,506
(1,141)
(7)
10,983
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Development of retained earnings and other reserves as well as comprehensive income 2021
In CHF million
Balance at 1 January 2021
Net income
Actuarial gains and losses from defined benefit pension plans
Change in fair value of equity instruments
Income tax expense
Items that will not be reclassified to income statement
Foreign currency translation adjustments of foreign subsidiaries
Foreign currency translation losses of foreign
subsidiaries transferred to income statement
Fair value losses of cash flow hedges transferred to income statement
Equity-accounted investees
Income tax expense
Items that may be reclassified
to income statement
Other comprehensive income
Comprehensive income
Dividends paid
Other changes
Foreign
currency
Retained
translation
earnings adjustments
11,085
(1,791)
1,832
777
84
(152)
709
–
–
–
–
–
–
709
2,541
(1,140)
(1)
–
–
–
–
–
(107)
25
–
2
7
(73)
(73)
(73)
–
–
Balance at 31 December 2021
12,485
(1,864)
2.2 Financial liabilities
In CHF million
Balance at 1 January
Issuance of bank loans
Issuance of debenture bonds
Issuance of private placements
Issuance of other financial liabilities
Issuance of financial liabilities
Repayment of bank loans
Repayment of debenture bonds
Repayment of other financial liabilities
Repayment of financial liabilities
Interest expense
Interest payments
Foreign currency translation adjustments
Change in fair value
Accrual of deferred purchase price margins from business combinations
Expenses for deferred consideration arising on business combinations 1
Other changes
Balance at 31 December
Bank loans
Debenture bonds
Private placements
Derivative financial instruments 2
Other financial liabilities
Total financial liabilities
Thereof current financial liabilities
Thereof non-current financial liabilities
1 Reported in the cash flow statement as cash flow used in investing activities.
2 See Note 2.5.
See Note 5.2.
Hedging
reserves
Equity
holders of
Swisscom
Non-
controlling
interests
8
–
–
–
–
–
–
–
(7)
–
1
(6)
(6)
(6)
–
–
2
9,302
1,832
777
84
(152)
709
(107)
25
(7)
2
8
(79)
630
2,462
(1,140)
(1)
10,623
1
1
–
–
–
–
–
–
–
–
–
–
–
1
(1)
1
2
2022
6,445
38
–
170
1
209
–
(500)
(35)
(535)
62
(62)
(64)
(38)
18
(2)
(31)
6,002
512
4,886
322
129
153
6,002
547
5,455
Total
9,303
1,833
777
84
(152)
709
(107)
25
(7)
2
8
(79)
630
2,463
(1,141)
–
10,625
2021
7,042
221
100
–
29
350
(192)
(544)
(56)
(792)
63
(81)
(88)
(25)
6
(10)
(20)
6,445
488
5,564
151
64
178
6,445
559
5,886
Credit lines
Swisscom has two confirmed lines of credit amounting to CHF 1,000 million maturing in 2027 and CHF 1,200 million
maturing in 2028. The line of credit amounting to CHF 1,000 million is a sustainability linked loan. The amount
of the credit margin is linked to the achievement of defined sustainability targets by Swisscom. As of 31 Decem-
ber 2022, neither of these lines of credit had been drawn down, as in the prior year.
Bank loans
In CHF million
Maturity years
Par value
in currency
Nominal
interest rate
Effective
interest rate
31.12.2022
31 .12 .2021
Carrying amount
Bank loans in EUR 1, 3
Bank loans in USD 1
Bank loans in USD 1
Bank loans in EUR 2, 3
Bank loans in USD 2
Bank loans in USD 2
Total bank loans
1 Variable interest-bearing.
2 Fixed interest-bearing.
2021–2023
2022–2023
2022–2023
2017–2024
2009–2028
2009–2028
200 Euribor +0 .63%
16
25
150
58
51
4 .65%
4 .75%
0 .67%
8 .30%
7 .65%
2 .47%
–0 .63%
–0 .94%
0 .67%
4 .62%
4 .63%
198
15
23
148
69
59
512
207
–
–
155
68
58
488
3 Designated for hedge accounting of net investments in foreign operations.
As of 31 December 2022, Swisscom has taken out short-term bank loans on a weekly and monthly basis amounting
to USD 41 million or CHF 38 million (none in the prior year). In the second quarter of 2021, Swisscom took on a
bank loan of EUR 200 million (CHF 207 million), maturing in 2023. The funds received were used to repay existing
debt. Bank loans to the value of EUR 350 million (CHF 351 million) may become due for immediate repayment if
the shareholding of the Confederation in the capital of Swisscom falls below one third, or if another shareholder
can exercise control over Swisscom.
123
Debenture bonds
In CHF million
Maturity years
Par value
in currency
Nominal
interest rate
Effective
interest rate
31.12.2022
31 .12 .2021
Carrying amount
Debenture bond in CHF
(ISIN: CH0114695379)
Debenture bond in CHF
(ISIN: CH0268988174) 2
Debenture bond in CHF
(ISIN: CH0188335365)
Debenture bond in EUR
(ISIN: XS1288894691)
Debenture bond in CHF
(ISIN: CH0247776138)
Debenture bond in EUR
(ISIN: XS1803247557) 1
Debenture bond in CHF
(ISIN: CH0344583783) 2
Debenture bond in CHF
(ISIN: CH0362748359)
Debenture bond in CHF
(ISIN: CH0317921663)
Debenture bond in CHF
(ISIN: CH0437180935)
Debenture bond in EUR
(ISIN: XS21692434791)
Debenture bond in CHF
(ISIN: CH0254147504)
Debenture bond in CHF
(ISIN: CH0419040982)
Debenture bond in CHF
(ISIN: CH0515152467)
Debenture bond in CHF
(ISIN: CH0336352775)
Debenture bond in CHF
(ISIN: CH0373476164)
Debenture bond in CHF
(ISIN: CH1112455766)
Debenture bond in CHF
(ISIN: CH0580291968)
Debenture bond in CHF
(ISIN: CH0268988182) 2
Debenture bond in CHF
(ISIN: CH0494734335)
Total debenture bonds
2010–2022
2015–2023
2012–2024
2015–2025
2014–2026
2018–2026
2016–2027
2017–2027
2016–2028
2018–2028
2020–2028
2014–2029
2019–2029
2020–2031
2016–2032
2017/
2019–2033
2021–2033
2020–2034
2015/
2018–2035
2019–2044
500
250
500
500
200
500
200
350
200
150
500
160
200
100
300
230
100
100
300
125
2 .63%
2 .81%
0 .25%
1 .02%
3
1 .75%
1 .77%
1 .75%
1 .76%
4
1 .50%
1 .47%
1 .13%
1 .25%
0 .38%
1 .78%
3
0 .38%
0 .39%
0 .38%
0 .30%
0 .75%
0 .72%
0 .38%
0 .53%
1 .50%
1 .47%
0 .50%
0 .43%
0 .13%
0 .15%
0 .13%
0 .14%
0 .75%
0 .66%
0 .25%
0 .27%
0 .25%
0 .27%
1 .00%
1 .04%
3
0 .00%
0 .00%
–
251
504
465
201
491
184
350
201
150
488
161
201
100
300
233
100
100
281
503
252
504
537
202
515
203
351
202
151
511
161
201
100
299
233
100
100
314
125
4,886
125
5,564
1 Designated for hedge accounting of net investments in foreign operations.
2 Thereof CHF 575 million designated for fair value hedge accounting.
3 After hedging with interest rate swap.
4 After hedging with currency swap and taking hedge accounting into consider-
ation.
Swisscom repaid a CHF 500 million bond upon maturity in the third quarter of 2022. In the second quarter of 2021,
Swisscom issued a green bond for CHF 100 million. It has a coupon of 0.25% and matures in 2033. The funds raised
were used within the Green Bond Framework.
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124
Private placements
In CHF million
Maturity years
Private placements in CHF
2022–2027
Private placements in CHF
2016–2031
Total private placements
Par value
in currency
Nominal
interest rate
Effective
interest rate
31.12.2022
31 .12 .2021
Carrying amount
170
150
1 .71%
0 .56%
1 .71%
0 .56%
171
151
322
–
151
151
Swisscom recorded a private placement of CHF 170 million in the third quarter of 2022 that matures in 2027. The
funds received were used to repay existing debt. Apart from this, there is another outstanding private placement
of CHF 150 million that matures in 2031. The private placements may become due for immediate repayment if
the shareholding of the Confederation in the capital of Swisscom falls below 35% or if another shareholder can
exercise control over Swisscom.
Other financial liabilities
As at 31 December 2022, the carrying amount of other financial liabilities was CHF 153 million (prior year:
CHF 178 million), consisting primarily of loans.
2.3 Leases
Lessee
Swisscom’s leases comprise the rental of operation and office buildings, antenna sites, and network infrastructure
in particular. In addition, indefeasible rights of use (IRU) are classified as leases under IFRS 16. In general, IRU are
paid in full at the beginning of use. The Italian subsidiary Fastweb procures various access services from other
fixed-network operators and uses their connection cables to the end customer. Swisscom applies the low value
asset exemption for these leases. Accordingly, no right-of-use assets and lease liabilities are recognised for these
access services. The costs are reported as direct costs. There are no material lease commitments arising from
leases that began after the balance sheet date.
Swisscom concluded two agreements in 2001 for the sale of real estate. At the same time, it entered into long-
term agreements to lease back part of the real estate sold which, in part, qualify as finance leases. The gain
realised on real estate classified as finance leases was deferred. As at 31 December 2022, the carrying amount of
the deferred gains was CHF 85 million (prior year: CHF 95 million). The deferred gains are released to other
income over the term of the individual leases.
125
Right-of-use assets
In CHF million
At cost
Balance at 1 January 2021
Additions
Disposals
Sales of subsidiaries
Foreign currency translation adjustments
Balance at 31 December 2021
Additions
Disposals
Business combinations
Foreign currency translation adjustments
Balance at 31 December 2022
Accumulated depreciation and impairment losses
Balance at 1 January 2021
Depreciation
Impairments
Disposals
Foreign currency translation adjustments
Balance at 31 December 2021
Depreciation
Disposals
Foreign currency translation adjustments
Balance at 31 December 2022
Net carrying amount
Net carrying amount at 31 December 2022
Net carrying amount at 31 December 2021
Net carrying amount at 1 January 2021
Lease liabilities
In CHF million
Balance at 1 January
Additions
Interest expense
Payments
Disposals
Business combinations
Foreign currency translation adjustments
Balance at 31 December
Land and buildings
Technical installations
Other leases
Total lease liabilities 1
Thereof current lease liabilities
Thereof non-current lease liabilities
1 Note 2.5 shows the maturity analysis for lease liabilities.
Land
and buildings
Technical
installations
Other
right-of-use
assets
2,172
261
(78)
(1)
(13)
2,341
203
(129)
7
(12)
2,410
(601)
(223)
(1)
71
3
(751)
(206)
24
3
(930)
1,480
1,590
1,571
1,046
47
(12)
–
(43)
1,038
37
(10)
–
(44)
1,021
(485)
(53)
–
12
21
(505)
(50)
10
22
(523)
498
533
561
10
9
(1)
–
–
18
9
(2)
–
–
25
(4)
(4)
–
1
–
(7)
(6)
2
–
(11)
14
11
6
2022
2,017
249
44
(284)
(98)
7
(24)
Total
3,228
317
(91)
(1)
(56)
3,397
249
(141)
7
(56)
3,456
(1,090)
(280)
(1)
84
24
(1,263)
(262)
36
25
(1,464)
1,992
2,134
2,138
2021
1,988
317
44
(303)
(7)
–
(22)
1,911
2,017
1,565
329
17
1,911
232
1,679
1,653
349
15
2,017
217
1,800
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Income and expenses arising from leases
In CHF million
Revenue
Income from leases excluding subleases
Income from subleases
Other income
Deferred gain on sale and leaseback of real estate
Financial income
Interest income on finance lease
Direct costs
Expense from leases of low value assets
Depreciation and impairment losses
Depreciation of right-of-use assets
Impairment losses on right-of-use assets
Financial expense
Interest expense on lease liabilities
2022
202
3
10
1
2021
189
6
11
2
(94)
(110)
(262)
–
(280)
(1)
(44)
(44)
Lessor
Swisscom supplies other providers of telecommunications services with access lines for use, which are classified
either as finance or operating leases. At the same time, Swisscom leases space in operations and offices buildings
and at antenna sites, which is classified as an operating lease. Future lease payments in respect of receivables
from finance leases as at 31 December 2021 and 2022 break down as follows:
In CHF million
Within 1 year
Between 1 and 2 years
Between 2 and 3 years
Between 3 and 4 years
Between 4 and 5 years
After 5 years
Total future payments from finance leases
Future interest income
Total receivables from finance leases
Thereof current receivables from finance leases
Thereof non-current receivables from finance leases
31.12.2022
31 .12 .2021
53
29
8
6
5
31
132
(1)
131
53
78
33
24
7
6
4
26
100
(1)
99
33
66
Future lease payments in respect of operating leases are as follows as at 31 December 2021 and 2022.
In CHF million
Within 1 year
Between 1 and 2 years
Between 2 and 3 years
Between 3 and 4 years
Between 4 and 5 years
After 5 years
31.12.2022
31 .12 .2021
45
41
40
39
38
39
44
40
39
39
38
38
Total future payments from operating leases
242
238
127
Significant judgements or estimates
When determining the terms of leases, management considers all facts and circumstances that encompass an
economic incentive to exercise renewal options or not exercise termination options. Renewal and termination
options are only included in the contract term where there is sufficient certainty that they will be exercised. This
assessment is reviewed in the event of a material occurrence or change in circumstances that might affect the
previous assessment, where this is within the lessee’s control.
Accounting policies
Financial liabilities
Financial liabilities are initially recognised at fair value less direct transaction costs. In subsequent accounting
periods, they are re-measured at amortised cost using the effective interest method.
Leases
A lease is a contract or part of a contract that transfers the right to control the use of an identifiable asset for an
agreed period of time in return for payment. In particular, Swisscom leases comprise the rental of operation and
office buildings, antenna sites as well as network infrastructure and indefeasible rights of use (IRU). As a lessee,
for each lease Swisscom recognises a lease liability for future lease payments and a right of use for the underlying
asset as at the time when the leased asset becomes available to Swisscom. The lease payments are divided into
a repayment component and an interest component. The interest component is recognised as an interest
expense over the lease term computed on the basis of the effective interest method. The right-of-use asset is
depreciated on a straight-line basis over the shorter of the useful life and the lease term. As a lessor, Swisscom has
to distinguish between finance and operating leases. A lease is recorded as a finance lease whenever essentially
all of the risks and rewards incidental to ownership of the asset are transferred. Unless implicitly specified in the
lease, the interest rate used to measure the rights of use and lease liabilities is the incremental borrowing rate.
In the area of network access services, for selected leases Swisscom applies the exemptions regarding the sepa-
ration of lease and non-lease components. The non-lease components are accounted for in accordance with
other standards. Swisscom procures various access services from other network operators and uses their con-
nection cables to the end customer. Under IFRS 16, part of these access services is classified as a lease. The value of
the individual connection cable fulfils the criteria as an asset of low value. Swisscom applies the low value asset
exemption for these leases. Accordingly, no right-of-use assets and lease liabilities are recognised for these
access services. The costs of access services continue to be reported as an operating expense. The exemption for
short-term leases is not applied. A number of leases for the rental of operation and office buildings include
renewal and termination options which are taken into account in the initial measurement by category of building.
Rental contracts of antenna sites have an initial lease term of 10 to 15 years. In general, these rental contracts
include renewal and mutual termination options. For these leases, it is not reasonably certain that all renewal
options will be exercised. Accordingly, no renewal options are taken into account in the initial measurement of
lease contracts of antenna sites. Given Swisscom’s planning horizon of a maximum of five years and technological
developments, it is not possible to estimate the amount of additional undiscounted payments which are currently
not included in the lease liabilities.
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2.4 Financial result
In CHF million
Interest income on financial assets
Interest income on defined benefit obligations 3
Foreign exchange gains
Change in fair value of interest rate swaps 1
Gain on sale of equity-accounted investees 2
Other financial income
Total financial income
Interest expense on financial liabilities
Interest expense on lease liabilities
Interest expense on defined benefit obligations 3
Foreign exchange losses
Interest and present-value adjustments on provisions 4
Other financial expense
Total financial expense
Financial income and financial expense, net
Interest expense on lease liabilities
Net interest expense on financial assets and liabilities
2022
4
1
–
66
–
5
76
(62)
(44)
–
(9)
(18)
(15)
(148)
(72)
(44)
(58)
2021
3
–
14
21
219
12
269
(63)
(44)
(1)
–
(32)
(33)
(173)
96
(44)
(60)
1 See Note 2.5.
2 See Note 5.3.
3 See Note 4.3.
4 See Note 3.5.
2.5 Financial risk management
Swisscom is exposed to various financial risks arising from its operating and financing activities. Financial risk man-
agement is conducted in accordance with established guidelines, with the objective of limiting the potentially
adverse effects thereof on the financial situation of Swisscom. The identified risks and measures to minimise
them are presented below.
Risk
Source
Risk mitigation
Currency risks
Swisscom is exposed to foreign exchange changes
which can impact the Group’s cash flows,
financial result and equity .
● Reduction in cash flow volatility by use of forward
currency contracts/swaps and currency swaps and
designation for hedge accounting (transaction risk)
● Reduction in translation risk by foreign currency
financing and designation for hedge accounting
● Hedging of currency risk of foreign currency financing
by use of currency swaps
Interest rate risk
Interest rate risks result from changes in interest rates
which can negatively impact cash flows and the financial
situation of Swisscom .
● Use of interest rate swaps to manage
fixed/variable share and duration
of financial debt
Credit risks
from operating
business activities
and financial
transactions
Liquidity risk
Through its operating business activities and derivative
financial instruments and financial investments,
Swisscom is exposed to the risk of default
of a counterparty .
● Guideline establishing minimum requirements
for counterparties
● Designated counterparty limits
● Employment of netting agreements foreseen under
ISDA (International Swaps and Derivatives Association)
Prudent liquidity management involves the holding
of adequate reserves of cash and cash equivalents,
negotiable securities as well as the possibility
of obtaining confirmed lines of credit .
● Use of collateral agreements
● Procedures and principles
to ensure adequate liquidity
● Two guaranteed bank credit lines
totaling CHF 2,200 million
129
Foreign exchange risks
As regards financial instruments, the following currency risks and hedging contracts existed for foreign currencies
as of 31 December 2021 and 2022.
In CHF million
Cash and cash equivalents
Trade receivables
Other financial assets
Financial liabilities
Trade payables
Net exposure at carrying amounts
Net exposure to forecasted cash flows in the next 12 months
Net exposure before hedges
Forward currency contracts
Foreign currency swaps
Currency swaps
Hedges
Net exposure
31.12.2022
31 .12 .2021
EUR
32
10
16
(1,872)
(57)
(1,871)
(210)
(2,081)
314
103
493
910
(1,171)
USD
8
13
425
(270)
(46)
130
(242)
(112)
242
(5)
–
237
125
EUR
11
6
13
(1,931)
(60)
(1,961)
(15)
(1,976)
–
131
517
648
(1,328)
USD
14
7
403
(217)
(41)
166
(219)
(53)
219
(36)
–
183
130
As at 31 December 2022, Swisscom had outstanding financial liabilities with a nominal value totalling EUR 1,350
million (CHF 1,330 million, prior year: EUR 1,350 million, CHF 1,395 million), which are designated for hedge
accounting of net investments in foreign operations. In 2022, income of CHF 64 million (prior year: CHF 61 mil-
lion) arising from the measurement of financial liabilities was recognised in other comprehensive income in the
position of foreign currency translation of foreign Group companies. As at 31 December 2022, the cumulative
positive amount of foreign currency translation differences in equity totalled CHF 368 million.
Foreign currency sensitivity analysis
The following sensitivity analysis shows the impact on the income statement should the EUR/CHF and USD/CHF
exchange rates change in line with their implicit volatility over the next twelve months. The analysis assumes
that all other variables, in particular the interest rate level, remain constant.
In CHF million
31.12.2022
EUR volatility 6 .15%
USD volatility 8 .12%
31.12.2021
EUR volatility 5 .02%
USD volatility 6 .24%
Income impact on
Hedges for
1
balance sheet items balance sheet items
Planned
Hedges for
cash flows planned cash flows
115
(11)
98
(10)
(56)
–
(32)
2
13
20
1
14
–
(20)
–
(14)
1 Without hedge accounting of net investments in foreign operations.
The volatility of balance sheet positions and scheduled cash flows is partially offset by the volatility of the related
hedging contracts.
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Interest rate risks
The structure of interest-bearing financial instruments at nominal values is as follows:
In CHF million
Fixed interest-bearing financial liabilities
Variable interest-bearing financial liabilities
Total interest-bearing financial liabilities
Fixed interest-bearing financial assets
Variable interest-bearing financial assets
Total interest-bearing financial assets
Total interest-bearing financial assets and liabilities, net
Variable interest-bearing
Variable through interest rate swaps
Variable interest-bearing, net
Fixed interest-bearing
Variable through interest rate swaps
Fixed interest-bearing, net
Total interest-bearing financial assets and liabilities, net
31.12.2022
31 .12 .2021
5,648
235
5,883
(274)
(406)
(680)
5,203
(171)
1,068
897
5,374
(1,068)
4,306
5,203
6,050
230
6,280
(275)
(584)
(859)
5,421
(354)
1,092
738
5,775
(1,092)
4,683
5,421
Interest rate sensitivity analysis
A shift in interest rates by 100 basis points has an impact of CHF 9 million on the income statement (prior year:
CHF 7 million). It has no impact on equity as at 31 December 2021 and 2022.
Credit risks
Credit risks from financial transactions
The carrying amounts of cash and cash equivalents and other financial assets exposed to credit risk (excluding trade
receivables, receivables from finance leases and contract assets) may be analysed as follows:
In CHF million
Cash and cash equivalents
Financial assets at amortised cost
Derivative financial instruments
Other assets valued at fair value
Total carrying amount of financial assets
31.12.2022
31 .12 .2021
121
419
5
4
549
401
356
19
2
778
The carrying amounts analysed by the Standard & Poor’s rating of the counterparties may be summarised as follows:
In CHF million
AAA
AA– to AA+
A– to A+
BBB– to BBB+
Without rating
Total
31.12.2022
31 .12 .2021
39
293
160
28
29
549
118
530
75
11
44
778
131
Financial risks from operating activities
Credit risks on trade receivables, contract assets and other receivables arise from the Group’s operating activities.
Credit risks from other receivables are insignificant. As an initial step, Swisscom divides the credit risks from
operating activities between Swisscom Switzerland and Fastweb. Default risks are principally impacted by the
individual attributes of the customers. They are also influenced by the default risk of customer groups and industry
sectors. Swisscom has a receivables management system in place to minimise default losses. It reviews new
customers for their creditworthiness and sets maximum payment terms for customer groups. As regards their
creditworthiness, Swisscom divides customers into groups for the purposes of monitoring default risk. In the
process it differentiates between individual and business customers, among other things. In addition, it takes
into account the ageing structure of the receivables as well as the industry segment in which a business customer
is active. The split of trade receivables and contract assets by operating segment is as follows:
In CHF million
Notional amount
Residential Customers
Business Customers
Wholesale
Infrastructure & Support Functions
Swisscom Switzerland
Fastweb
Other Operating Segments
Total notional amount
Allowances for doubtful debts
Residential Customers
Business Customers
Wholesale
Infrastructure & Support Functions
Swisscom Switzerland
Fastweb
Other Operating Segments
Total allowances for doubtful debts
Total notional amount less allowances for doubtful debts
31.12.2022
31 .12 .2021
905
572
201
22
1,700
671
182
2,553
(52)
(10)
(2)
–
(64)
(35)
(23)
868
559
186
36
1,649
821
170
2,640
(51)
(22)
(4)
(1)
(78)
(48)
(25)
(122)
(151)
2,431
2,489
As at 31 December 2022, the maturities of trade receivables and contract assets as well as any related valuation
allowances may be analysed as follows:
In CHF million
Not overdue
Past due up to 3 months
Past due 4 to 6 months
Past due 7 to 12 months
Past due over 1 year
Total
Rate
0 .49%
3 .71%
39 .02%
27 .16%
97 .96%
4.78%
Par value
1,627
755
41
81
49
31.12.2022
Allowance
(8)
(28)
(16)
(22)
(48)
2,553
(122)
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As at 31 December 2021, the maturities of trade receivables and contract assets as well as any related valuation
allowances may be analysed as follows:
In CHF million
Not overdue
Past due up to 3 months
Past due 4 to 6 months
Past due 7 to 12 months
Past due over 1 year
Total
Rate
0 .30%
3 .80%
40 .82%
45 .83%
76 .29%
5.72%
31 .12 .2021
Par value
Allowance
1,657
789
49
48
97
(5)
(30)
(20)
(22)
(74)
2,640
(151)
Movements in valuation allowances for trade receivables and contract assets may be analysed as follows:
In CHF million
Balance at 1 January
Additions to allowances
Write-off of irrecoverable receivables subject to allowance
Release of unused allowances
Sales of subsidiaries
Foreign currency translation adjustments
Balance at 31 December
Liquidity risk
Contractual maturities including estimated interest payable
2022
151
63
(69)
(21)
–
(2)
122
2021
164
87
(66)
(23)
(9)
(2)
151
In CHF million
31.12.2022
Bank loans
Debenture bonds
Private placements
Derivative financial instruments
Other financial liabilities
Lease liabilities
Trade payables
Total
In CHF million
31.12.2021
Bank loans
Debenture bonds
Private placements
Derivative financial instruments
Other financial liabilities
Lease liabilities
Trade payables
Total
Carrying Contractual Due within Due within Due within
1 year 1 to 2 years 3 to 5 years
amount
payments
Due after
5 years
512
544
4,886
5,148
322
129
153
1,911
1,674
342
112
153
2,267
1,674
9,587
10,240
245
292
4
12
24
274
1,588
2,439
155
541
4
8
18
231
14
971
12
1,806
181
75
22
541
72
132
2,509
153
17
89
1,221
–
2,709
4,121
Carrying Contractual Due within Due within Due within
1 year 1 to 2 years 3 to 5 years
amount
payments
Due after
5 years
488
526
5,564
5,779
151
64
178
2,017
1,600
158
61
178
2,680
1,600
10,062
10,982
7
556
1
(1)
27
261
1,517
2,368
214
293
1
(3)
45
245
70
865
173
1,832
2
28
20
600
13
132
3,098
154
37
86
1,574
–
2,668
5,081
133
Derivative financial instruments
In CHF million
Interest rate swaps in CHF
Currency swaps in EUR
Total fair value hedges
Forward currency contracts in USD
Forward currency contracts in EUR
Total cash flow hedges
Interest rate swaps in CHF
Currency swaps in USD
Currency swaps in EUR
Forward currency contracts in USD
Forward currency contracts in EUR
Total other derivative financial instruments
Contract value
Positive fair value
Negative fair value
31.12.2022
31 .12 .2021
31.12.2022
31 .12 .2021
31.12.2022
31 .12 .2021
575
493
575
517
1,068
1,092
153
247
400
120
194
111
89
67
581
166
–
166
200
36
131
53
–
420
–
–
–
–
1
1
2
1
–
–
1
4
5
3
2
19
–
19
–
–
–
–
–
–
–
–
–
19
1
18
(39)
(79)
(118)
(7)
–
(7)
–
–
–
(4)
–
(4)
(129)
(11)
(118)
–
(2)
(2)
(2)
–
(2)
(58)
–
(1)
(1)
–
(60)
(64)
(4)
(60)
Total derivative financial instruments
2,049
1,678
Thereof current derivative financial instruments
Thereof non-current derivative financial instruments
Swisscom has entered into interest rate and foreign currency swaps, designated as fair value hedges, in order to
hedge interest rate and foreign currency risks of fixed interest-bearing finance denominated in CHF and EUR.
Derivative financial instruments contain forward contracts, designated as cash flow hedges, for hedging future
purchases of goods and services in USD and EUR. Furthermore, derivative financial instruments include interest
rate swaps which are not designated for hedge accounting purposes. In addition, derivative financial instru-
ments exclusively comprise forward foreign currency transactions and foreign currency swaps in EUR and USD
which serve to hedge future transactions in connection with financing or the operating business activities of
Swisscom, and which are not designated for hedge accounting purposes. Swisscom does not enter into derivative
financial instruments for speculative purposes.
The interest rate and currency swaps entered into by Swisscom have been affected by the Interest Rate Bench-
mark Reform (known as the IBOR Reform). In Switzerland, the changeover from the reference interest rate LIBOR
to SARON has taken place. In the EUR zone, the EURIBOR has been reformed and the ESTR has replaced the
EONIA. In 2021, Swisscom switched the reference interest rate for interest rate swaps worth CHF 775 million and
for currency swaps worth EUR 500 million.
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Valuation category and fair value of financial instruments
The fair values of financial assets and financial liabilities are summarised in the following table. Not included
therein are cash and cash equivalents, trade receivables and trade payables, as well as miscellaneous receivables
and liabilities whose carrying amount corresponds to a reasonable estimation of their fair value.
In CHF million
Other financial assets
Listed debt instruments
Other financial assets
At amortised cost
Equity instruments
Equity instruments
Fair value through other comprehensive income
Loans
Derivative financial instruments
Fair value through profit or loss
Total other financial assets
Financial liabilities
Bank loans
Debenture bonds
Private placements
Derivative financial instruments
Other financial liabilities
Total financial liabilities
In CHF million
Other financial assets
Term deposits
Quoted debt instruments
Loans
At amortised cost
Equity instruments
Equity instruments
At fair value through other comprehensive income
Loans
Derivative financial instruments
Fair value through profit or loss
Total other financial assets
Financial liabilities
Bank loans
Debenture bonds
Private placements
Derivative financial instruments
Other financial liabilities
Total financial liabilities
Carrying amount
Fair value
31.12.2022
Level
285
134
419
4
379
383
4
5
9
811
512
4,886
322
129
153
6,002
245
134
379
4
379
383
4
5
9
771
508
4,497
300
129
145
5,579
1
2
1
3
2
2
2
1
2
2
2
Carrying amount
Fair value
31 .12 .2021
Level
57
278
21
356
26
381
407
2
19
21
784
488
5,564
151
64
178
6,445
57
273
21
351
26
381
407
2
19
21
779
514
5,717
154
64
187
6,636
2
1
2
1
3
2
2
2
1
2
2
2
Financial assets amounting to CHF 291 million (prior year: CHF 284 million) are not freely available as they serve
as security for liabilities.
135
Accounting policies
Derivative financial instruments
Derivative financial instruments are initially recognised at fair value and are subsequently measured at fair
value. The method of recording the fluctuations in fair value depends on the underlying transaction and the
objective pursued by purchasing or entering into this underlying transaction. On the date a derivative contract is
concluded, management designates the purpose of the hedging relationship: hedge of the fair value of an asset
or liability (‘fair value hedge’) or a hedge of future cash flows in the case of future transactions (‘cash flow hedge’).
Changes in the fair value of derivative financial instruments that are designated as hedging instruments for ‘fair
value hedges’ are recognised in the income statement. Changes in the fair value of derivative financial instru-
ments that are designated as hedging instruments for ‘cash flow hedges’ are dealt with in other comprehensive
income and are recognised in the hedging reserve as part of equity. If a hedge of an anticipated transaction
subsequently results in the recording of a financial asset or financial liability, the amount included in equity is
recognised in the income statement in the same period in which the financial asset or financial liability impacts
the results. Otherwise, the amounts recorded in equity are recognised in the income statement as income or
expense in the same period as the cash flows of the intended or agreed future transaction occur. Changes in the
fair value of derivative financial instruments that are not designated as hedging instruments are immediately
recorded as income.
Estimation of fair values
Fair values are allocated to one of the following three hierarchical levels.
• Level 1: exchange-quoted prices in active markets for identical assets or liabilities;
• Level 2: other factors which are observable on markets for assets and liabilities, either directly or indirectly;
• Level 3: factors that are not based on observable market data.
The fair value of publicly traded equity and debt instruments of Level 1 is based upon their stock exchange quo-
tations as of the balance sheet date. The fair value of Level 2 financial assets and liabilities which are not quoted
on exchanges are computed on the basis of future maturing payments discounted at market interest rates.
Level 3 assets consist of investments in various investment funds and individual companies. The fair value is
determined on the basis of a computational model. Interest rate and currency swaps are discounted at market
rates. Foreign currency forward transactions and foreign currency swaps are valued by reference to forward
foreign exchange rates as of the balance sheet date.
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3 Operating assets and liabilities
The following chapter discloses information on the movement in net operating
assets and liabilities as well as in significant non-current tangible and intangible
assets . In addition, it outlines the allocation of goodwill to the individual
cash-generating units and the results of any applicable impairment tests . Changes
in provisions and contingent liabilities are also presented in this chapter .
3.1 Net current operating assets
Movements in operating assets and liabilities
In CHF million
2022 financial year
Trade receivables
Other operating assets
Trade payables
Other operating liabilities
Total operating assets and liabilities, net
1 Foreign currency translation and adjustments from acquisition and sale of
subsidiaries.
In CHF million
2021 financial year
Trade receivables
Other operating assets
Trade payables
Other operating liabilities
Total operating assets and liabilities, net
1 Foreign currency translation and adjustments from acquisition and sale of
subsidiaries.
Trade receivables
In CHF million
Billed revenue
Accrued revenue
Allowances
Total trade receivables 1
1 Credit risks. See Note 2.5.
01 .01 .2022
Operational
changes
Other
1
changes
31.12.2022
2,315
1,179
(1,600)
(1,617)
277
(33)
187
(103)
34
85
(27)
(13)
29
12
1
2,255
1,353
(1,674)
(1,571)
363
01 .01 .2021
Operational
changes
Other
1
changes
31 .12 .2021
2,132
1,029
(1,525)
(1,269)
367
269
161
(110)
(385)
(65)
(86)
(11)
35
37
(25)
2,315
1,179
(1,600)
(1,617)
277
31.12.2022
31 .12 .2021
2,236
139
(120)
2,255
2,335
131
(151)
2,315
137
Other operating assets and liabilities
In CHF million
Other operating assets
Contract assets
Contract costs
Other receivables
Inventories
Prepaid expenses
Advance payments made
Value-added taxes receivable
Other non-financial assets
Total other operating assets
Other operating liabilities
Contract liabilities
Accruals for variable performance-related bonus
Value-added taxes payable
Accruals for annual holiday, overtime
Liabilities from collection activities
Miscellaneous liabilities
Total other operating liabilities
Contract assets and liabilities
In CHF million
Contract assets
Swisscom Switzerland
Other
Total contract assets
Contract liabilities
Swisscom Switzerland
Fastweb
Other
Total contract liabilities
31.12.2022
31 .12 .2021
178
278
77
162
514
83
45
16
174
263
84
114
430
38
22
54
1,353
1,179
1,084
149
73
44
18
203
1,571
1,012
172
68
43
19
303
1,617
31.12.2022
31 .12 .2021
119
59
178
650
358
76
113
61
174
559
379
74
1,084
1,012
Contract assets of Swisscom Switzerland primarily include deferrals arising in connection with the sale of bundled
offerings in the mobile-phone area. In part, mobile handsets are sold on a subsidised basis, together with a mobile
contract in a bundled offering. As a result of the allocation of revenue over the pre-delivered components (mobile
handset), revenues are recognised earlier than the invoicing thereof. This results in contract assets deriving from
this business being recognised. The contractual liabilities mainly cover deferrals from payments for prepaid cards
and prepaid Swisscom Switzerland subscription fees. In 2022, an amount of CHF 281 million was recorded as
revenue which had been recognised as a contract liability as at 31 December 2021. With the disclosure of the
performance obligations that are unsatisfied and the allocated transaction price, Swisscom avails itself of the
rules of IFRS 15.121. The exemption is not applied in the case of mobile-phone contracts with the sale of a sub-
sidised mobile handset and a minimum contract term. These contracts incorporate revenue of CHF 641 million
(2023: CHF 483 million; 2024: CHF 158 million).
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Contract costs
Contract costs include deferred costs to obtain a contract as well as costs to fulfil a contract, which may be analysed
as follows:
In CHF million
Costs to obtain a contract
Swisscom Switzerland
Fastweb
Other
Total costs to obtain a contract
Costs to fulfil a contract
Router and TV boxes
Initial costs from outsourcing contracts
Total costs to fulfil a contract
Total contract costs
Accounting policies
31.12.2022
31 .12 .2021
35
75
48
158
32
88
120
278
39
54
45
138
34
91
125
263
Operating assets and liabilities
Total operating assets and liabilities used in the normal course of business are disclosed as current items in the
balance sheet.
Trade receivables
Trade and other receivables are measured at amortised cost less impairment losses. Impairment losses on trade
receivables are recognised, depending on the nature of the underlying transaction, in the form of individual valu-
ation allowances or portfolio-based general valuation allowances which cover the anticipated default risk. As
regards portfolio-based general valuation allowances, financial assets are grouped together based on homogeneous
credit risk attributes, reviewed collectively for impairment and, whenever required, impairment losses are recognised.
In addition to the contractually foreseen payment conditions, historical default rates and current information and
expectations are taken into consideration in determining the expected future cash flows from the portfolio.
Impairment losses for trade receivables are recognised as other operating expenses.
139
Technical
installations
Land, buildings
and leasehold
improvements
Advances made
and assets
installations under construction
Other
3.2 Property, plant and equipment
In CHF million
Cost of acquisition
Balance at 1 January 2021
Additions
Disposals
Adjustment to dismantlement and restoration costs
Reclassifications
Business combinations
Sales of subsidiaries
Foreign currency translation adjustments
Balance at 31 December 2021
Additions
Disposals
Adjustment to dismantlement and restoration costs
Reclassifications
Business combinations
Foreign currency translation adjustments
28,317
1,675
4,801
1,020
(946)
15
158
–
–
(248)
28,316
1,017
(1,370)
(23)
170
–
(259)
4
(15)
–
15
–
–
(4)
1,675
5
(8)
–
5
–
(4)
197
(444)
(36)
97
1
(1)
(1)
4,614
205
(219)
(16)
70
4
(1)
Balance at 31 December 2022
27,851
1,673
4,657
Accumulated depreciation and impairment losses
Balance at 1 January 2021
Depreciation
Impairment losses
Disposals
Sales of subsidiaries
Foreign currency translation adjustments
Balance at 31 December 2021
Depreciation
Impairment losses
Disposals
Foreign currency translation adjustments
(19,706)
(1,215)
(3)
943
–
156
(19,825)
(1,138)
(23)
1,368
166
(1,400)
(3,470)
(17)
–
14
–
2
(1,401)
(16)
–
6
2
(298)
(4)
438
1
–
(3,333)
(293)
(1)
215
–
Balance at 31 December 2022
(19,452)
(1,409)
(3,412)
508
489
–
–
(270)
–
–
(2)
725
424
–
–
(243)
–
(3)
903
–
–
–
–
–
–
–
–
–
–
–
–
Total
35,301
1,710
(1,405)
(21)
–
1
(1)
(255)
35,330
1,651
(1,597)
(39)
2
4
(267)
35,084
(24,576)
(1,530)
(7)
1,395
1
158
(24,559)
(1,447)
(24)
1,589
168
(24,273)
10,811
10,771
10,725
Net carrying amount
Net carrying amount at 31 December 2022
Net carrying amount at 31 December 2021
Net carrying amount at 1 January 2021
8,399
8,491
8,611
264
274
275
1,245
1,281
1,331
903
725
508
Commitments for future capital expenditures
Firm contractual commitments for future capital investments in property, plant and equipment as at 31 Decem-
ber 2022 aggregated CHF 1,019 million (prior year: CHF 899 million).
Non-cash investing and financing transactions
As a result of changes in the assumptions made in estimating dismantling and restoration costs, a decrease in
the corresponding provisions of CHF 39 million (prior year: decrease of CHF 21 million) was recognised in property,
plant and equipment with no impact on the income statement. See Note 3.5.
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Significant judgements or estimates
Management estimates the useful economic lifes and residual values of technical facilities, real estate and other
installations and equipment, on the basis of the anticipated period over which economic benefits will accrue to
the company from the use of the assets. Useful economic lifes are reviewed annually on the basis of historical
and forecast expectations concerning future technological developments, economic and legal changes as well as
further external factors.
Accounting policies
Property, plant and equipment is recognised at historical cost less depreciation and impairment losses. In addition
to historical cost and the costs directly attributable to bringing the asset to the location and condition necessary
for it to be capable of operating in the manner intended by management, the purchase or manufacturing cost
also includes the estimated costs for dismantling and restoring the site. Borrowing costs are capitalised insofar
as they are directly attributable to the acquisition or production of a qualifying asset. Costs of replacement,
renewal or renovation of property, plant and equipment are capitalised as replacement investments if a future
inflow of economic benefits is probable and the purchase or manufacturing cost can be measured reliably. The
carrying amount of the parts replaced is de-recognised. Depreciation is calculated using the straight-line method
except for land, which is not depreciated. The estimated useful lifes for the main categories of property, plant
and equipment are as follows:
Category
Ducts 1
Cables 1
Transmission and switching equipment 1
Other technical installations 1
Buildings and leasehold improvements
Other installations
1 Technical installations.
Years
40
13 to 30
4 to 15
3 to 15
10 to 40
3 to 15
Whenever significant parts of an item of property, plant and equipment comprise individual components with
differing useful lifes, each component is depreciated separately. The process for estimating useful lifes takes into
account the expected use by the company, the expected wear and tear, technological developments, as well as
empirical values with comparable assets. Leasehold improvements and installations in leased premises are depre-
ciated on a straight-line basis over the shorter of their estimated useful lifes and the expected lease term. The
impact from adjusting useful economic lifes and residual values is recognised on a prospective basis. Whenever
indications exist that the value of an asset may be impaired, the recoverable amount of the asset is determined.
If the recoverable amount of the asset, which is the greater of the fair value less costs to sell and the value in use,
is less than its carrying amount, the carrying amount is written down to the recoverable amount. The carrying
amount of an item of property, plant and equipment is de-recognised upon disposal or whenever no future eco-
nomic benefits are expected from its use. Gains and losses arising on the disposal of property, plant and equip-
ment are recognised as other income or other operating expenses.
141
3.3 Intangible assets
In CHF million
Cost of acquisition
Balance at 1 January 2021
Additions
Disposals
Reclassifications
Business combinations
Sales of subsidiaries
Foreign currency translation adjustments
Balance at 31 December 2021
Additions
Disposals
Reclassifications
Business combinations
Sales of subsidiaries
Foreign currency translation adjustments
Balance at 31 December 2022
Accumulated amortisation and impairment losses
Balance at 1 January 2021
Amortisation
Impairment losses
Disposals
Reclassifications
Sales of subsidiaries
Foreign currency translation adjustments
Balance at 31 December 2021
Amortisation
Impairment losses
Disposals
Reclassifications
Foreign currency translation adjustments
Balance at 31 December 2022
Net carrying amount
Net carrying amount at 31 December 2022
Net carrying amount at 31 December 2021
Net carrying amount at 1 January 2021
Purchased
software
Internally
generated
software
Brands and
customer
relations
Other
intangible
assets
Licenses
2,347
210
(10)
11
–
(13)
(80)
2,465
214
(21)
31
–
(1)
(84)
2,604
(1,904)
(229)
(1)
10
14
6
69
(2,035)
(231)
(1)
21
1
74
(2,171)
433
430
443
1,600
194
(111)
107
–
–
(8)
1,782
184
(11)
48
–
–
(9)
1,994
(1,182)
(221)
–
110
(14)
–
6
(1,301)
(237)
–
11
(1)
6
(1,522)
472
481
418
1,007
83
(26)
–
–
–
(12)
1,052
128
(64)
1
–
–
(12)
1,105
(342)
(113)
–
26
–
–
3
(426)
(130)
–
64
–
4
(488)
617
626
665
460
–
(67)
–
29
–
(13)
409
–
(21)
–
45
–
(13)
420
(415)
(21)
–
67
–
–
12
(357)
(25)
–
21
–
12
(349)
71
52
45
295
78
(35)
(118)
2
(1)
(2)
219
117
(40)
(82)
–
–
(1)
213
(121)
(9)
–
35
–
–
1
(94)
(9)
–
37
–
1
(65)
148
125
174
Total
5,709
565
(249)
–
31
(14)
(115)
5,927
643
(157)
(2)
45
(1)
(119)
6,336
(3,964)
(593)
(1)
248
–
6
91
(4,213)
(632)
(1)
154
–
97
(4,595)
1,741
1,714
1,745
As at 31 December 2022, other intangible assets include advance payments made and uncompleted development
projects of CHF 133 million (prior year: CHF 107 million).
Commitments for future capital expenditures
As at 31 December 2022, firm contractual commitments for future capital investments in intangible assets
aggregated CHF 76 million (prior year: CHF 63 million).
Significant judgements or estimates
Management estimates the useful economic lifes and residual values of intangible assets on the basis of the
anticipated period over which economic benefits will accrue to the company from the use of the assets. Useful
economic lifes are reviewed annually on the basis of historical and forecast expectations concerning future tech-
nological developments, economic and legal changes as well as further external factors.
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Accounting policies
Mobile-phone licences, self-developed software as well as other intangible assets are recorded at historical cost less
accumulated amortisation. Intangible assets resulting from business combinations, such as brands and customer
relationships, are recognised at cost less accumulated amortisation, which equates to fair market value as at the
date of acquisition. Mobile-phone licences are amortised based on the term of the licence. It begins as soon as the
related network is ready for operation, unless other information is at hand which would suggest the need to modify
the useful lives. The impact from adjusting useful economic lives and residual values is recognised on a prospective
basis. Amortisation is computed on a straight-line basis over the following estimated useful economic lives.
Category
Software internally generated and purchased
Brands and customer relationships
Licenses
Other intangible assets
Years
3 to 7
5 to 10
2 to 16
3 to 10
Whenever indications exist that the value of an asset may be impaired, the recoverable amount of the asset is
determined. If the recoverable amount of the asset, which is the greater of the fair value less costs to sell and the
value in use, is less than its carrying amount, the carrying amount is written down to the recoverable amount.
3.4 Goodwill
Goodwill is allocated to the cash-generating units of Swisscom based upon their business activities. Goodwill
arising in a business combination is allocated to each cash-generating unit which can derive synergies from the
business combination. The goodwill allocated to the cash-generating units may be analysed as follows:
In CHF million
At cost
Residential
Customers
Swisscom
Switzerland
Business
Customers
Swisscom
Switzerland
Fastweb
Other cash-
generating
units
1
Balance at 1 January 2021
2,769
1,453
1,915
Additions
Foreign currency translation adjustments
–
–
9
–
–
(83)
Balance at 31 December 2021
2,769
1,462
1,832
Additions
Foreign currency translation adjustments
–
(2)
39
–
2
(85)
Balance at 31 December 2022
2,767
1,501
1,749
Accumulated impairment losses
Balance at 1 January 2021
Foreign currency translation adjustments
Balance at 31 December 2021
Foreign currency translation adjustments
Balance at 31 December 2022
Net carrying amount
Net carrying amount at 31 December 2022
Net carrying amount at 31 December 2021
Net carrying amount at 1 January 2021
–
–
–
–
–
–
–
–
–
–
2,767
2,769
2,769
1,501
1,462
1,453
(1,378)
60
(1,318)
61
(1,257)
492
514
537
1 Comprises the cash-generating units Wholesale Swisscom Switzerland and
Swisscom Directories.
403
9
–
412
–
–
412
–
–
–
–
–
412
412
403
Total
6,540
18
(83)
6,475
41
(87)
6,429
(1,378)
60
(1,318)
61
(1,257)
5,172
5,157
5,162
Impairment testing
In the fourth quarter of 2022 and after the conclusion of business planning, individual goodwill amounts were
subjected to impairment tests. The recoverable amount of a cash-generating unit is determined based on its
value in use, applying the discounted cash flow (DCF) method. The projected free cash flows were estimated on
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the basis of the business plans approved by management, which as a rule cover a three-year period. A planning
horizon of five years was used for the Fastweb impairment test. For free cash flows extending beyond the
detailed planning period, a terminal value was computed by capitalising the normalised cash flows. A steady
long-term growth rate that corresponds to the growth rates customary in the country or market was assumed.
The projected cash flows and management assumptions are corroborated by external sources of information.
The discount rate is derived from the Capital Asset Pricing Model (CAPM). This latter comprises the weighted
value of own equity and external borrowing costs. For the risk-free interest rate which forms the basis of the
discount rate, the yield from Swiss government bonds is taken (abroad: Germany) with a maturity of ten years and
a zero-interest rate, subject to minimum interest rates of 1.5% (Switzerland) and 2.0% (abroad). For cash-gener-
ating units abroad, a risk premium for the country risk is then added.
Discount rates and long-term growth rates
Cash-generating unit
Residential Customers Swisscom Switzerland
Business Customers Swisscom Switzerland
Fastweb
Other cash-generating units
WACC
pre-tax
5 .13%
5 .13%
7 .42%
5,14–
9,66%
2022
WACC
post-tax
Long-term
growth rate
4 .20%
4 .20%
5 .90%
4,20–
8,56%
0%
0%
2 .0%
0–
1 .0%
WACC
pre-tax
5 .01%
4 .99%
7 .21%
5 .01–
9 .64%
2021
WACC
post-tax
Long-term
growth rate
4 .09%
4 .09%
5 .36%
4 .09–
8 .28%
0%
0%
0 .8%
0–
1 .0%
Results and sensitivity of impairment tests
Residential Customers and Business Customers Swisscom Switzerland
As at the measurement date, the recoverable amount at all cash-generating units, based on their value in use, is
higher than the carrying amount relevant for the impairment test. Swisscom believes none of the anticipated
changes in key assumptions which can rationally be expected would cause the carrying amount of the cash-
generating units to exceed the recoverable amount.
Fastweb
As at the date of the impairment test, no impairment of goodwill resulted. The recoverable amount exceeded
the net carrying amount by EUR 1,028 million (CHF 1,021 million). In the prior year, the difference amounted to
EUR 641 million (CHF 680 million). The following changes in material assumptions would lead to a situation
where the value in use would equate to the net carrying amount.
Average annual revenue growth until 2027 (2026)
with EBITDA margin unchanged compared to business plan
Normalised EBITDA margin
Normalised capital expenditure rate
WACC post-tax
Long-term growth rate
2022
2021
Assumptions
Sensitivity
Assumptions
Sensitivity
7 .2%
28%
20%
5 .90%
2 .0%
5 .9%
26%
22%
7 .17%
0 .5%
6 .6%
31%
21%
5 .36%
0 .8%
5 .6%
30%
22%
6 .27%
–0 .4%
Significant judgements or estimates
The allocation of goodwill to the cash-generating units as well as the computation of the recoverable amount is
subject to the judgement of Management. This encompasses the estimation of future cash flows as well as the
determination of the discounting rate and the growth rate on the basis of historic data and current forecasts.
Accounting policies
For the purposes of the impairment test, goodwill is allocated to the cash-generating units. The impairment test is
performed annually on a mandatory basis. Whenever there is any indication during the year that goodwill may
be impaired, the cash-generating unit is tested for impairment at that time. An impairment loss is recognised if
the recoverable amount of a cash-generating unit is lower than its carrying amount. The recoverable amount is the
greater of the fair value less costs to sell and the value in use.
3.5 Provisions and contingent liabilities
Provisions
In CHF million
Balance at 1 January 2022
Additions to provisions
Dismantlement
and restoration
costs
Regulatory and
competition law
proceedings
Termination
1
benefits
712
–
176
164
–
15
–
(72)
–
283
–
283
55
13
–
–
(18)
(19)
–
31
25
6
Other
206
40
–
(4)
(13)
(41)
(1)
187
63
124
Total
1,149
217
(39)
18
(31)
(154)
(1)
1,159
88
1,071
Adjustments recorded under property, plant and equipment (39)
Interest and present-value adjustments
Release of unused provisions
Use of provisions
Foreign currency
Balance at 31 December 2022
Thereof current provisions
Thereof non-current provisions
1 See Note 4.1.
7
–
(22)
–
658
–
658
Provisions for dismantling and restoration costs
The provisions are computed by reference to estimates of future anticipated dismantling costs and are discounted
using an average interest rate of 2.02% (prior year: 0.91%). Adjustments as a result of reassessments in the amount
of CHF –39 million were recognised under property, plant and equipment with no impact on the income state-
ment in 2022. Of this amount, CHF –145 million resulted from the use of different interest rates, CHF 87 million
from the adjustment of the cost index used to calculate dismantling costs and CHF 19 million from other effects.
An increase of estimated costs by 10% would result in an increase of CHF 63 million in the amount of the provi-
sion. A delay of another ten years in the timing of the dismantling would lead to a reduction of CHF 30 million in
the provisions.
Provisions for regulatory and competition law proceedings
In accordance with the revised Telecommunications Act, Swisscom provides access services (incl. interconnection)
to other telecommunications service providers in Switzerland. In previous years, several telecommunications
service providers demanded ComCom reduce the prices charged to them by Swisscom. The procedures for set-
ting access prices for 2013 onwards are still pending before ComCom. In its ruling of 19 December 2022, the
Federal Administrative Court upheld ComCom’s decision that interest on recovery claims from access-related
proceedings must now be calculated based on the weighted average cost of capital (WACC).
The Competition Commission (COMCO) has launched various investigations against Swisscom in the past. In
April 2013, COMCO launched an investigation against Swisscom under the Federal Cartel Act concerning the
broadcasting of sporting events on pay TV. In May 2016, COMCO imposed a penalty of CHF 72 million on Swisscom
in these proceedings. Swisscom filed an appeal against this ruling with the Federal Administrative Court. In
June 2022, the Federal Administrative Court largely confirmed COMCO’s ruling and ordered Swisscom to pay a fine
of CHF 72 million. The fine was paid by Swisscom in the third quarter of 2022. Swisscom has lodged an appeal with
the Federal Court against the Federal Administrative Court’s decision. In the event of a legally binding finding of
abuse of a market-dominant position, claims could be asserted against Swisscom under civil law.
In its investigation as to the invitation to tender for the corporate network of the Swiss Post in 2008, the Compe-
tition Commission (COMCO) reached the conclusion in November 2015 that Swisscom has a dominant position
on the market for broadband access for business clients. As a result of this conduct, which was judged to be
unlawful under competition law, COMCO imposed a penalty of CHF 8 million. Swisscom challenged COMCO’s
ruling concerning the invitation to tender for the corporate network of Swiss Post in the Federal Administrative
Court. In June 2021, the Federal Administrative Court largely confirmed COMCO’s ruling and ordered Swisscom
to pay a fine of CHF 7 million. Swisscom has filed an appeal against this decision with the Federal Court. In the
event of a legally binding finding of abuse of a market-dominant position, claims could be asserted against
Swisscom under civil law.
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On 17 December 2020, COMCO opened an investigation into Swisscom’s optical fibre network and ordered pre-
cautionary measures. Swisscom has filed an appeal against these precautionary measures. In its ruling of
2 November 2022, the Federal Court found that the precautionary measures ordered by the Competition
Commission (which had previously been confirmed by the Federal Administrative Court) were not arbitrary and
confirmed them as well. The principal proceedings are still pending.
On 25 August 2020, COMCO launched an investigation against Swisscom into allegations that it abused its
market- dominant position for broadband connections that served to interconnect company sites. In the event of
a legally binding finding of abuse of a market-dominant position, claims could be asserted against Swisscom
under civil law.
In the past, Swisscom recognised provisions for regulatory and antitrust proceedings on the basis of legal assess-
ments. As a result of the reassessment of these proceedings, provisions of CHF 164 million were made in 2022 and
interest of CHF 15 million was recorded. Any payments to be made will depend upon the date on which legally bind-
ing decrees and decisions are issued, and could probably occur within five years.
Other provisions
Other provisions mainly include provisions for contractual risks. Any necessary payments of the non-current portion
of the provisions could likely occur within three years.
Contingent liabilities for regulatory and competition law proceedings
The Competition Commission (COMCO) is conducting several proceedings against Swisscom. In the event that a
legally enforceable finding of market abuse is reached, COMCO might impose a penalty on Swisscom. In addition,
claims under civil law might be asserted against Swisscom. In view of the previous proceedings conducted by
COMCO, further proceedings against Swisscom might be initiated.
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Significant judgements or estimates
The provisions for dismantling and restoration costs relate to the dismantling of telecommunications installa-
tions and transmitter stations as well as the restoration to its original state of land held by third-party owners.
The level of the provisions is determined to a significant degree by the estimation of future dismantling and
restoration costs, as well as the timing of dismantlement. The provisions and contingent liabilities for regulatory
and antitrust proceedings relate to proceedings in connection with regulated access services provided by Swisscom
and proceedings initiated by COMCO. The legal and accounting assessment of these proceedings is associated
with significant uncertainties in estimation and scope for discretion with regard to the probability of occurrence
and the amount of a possible cash outflow. The provisions recognised in this way constitute the best estimate of
the liability. Possible liabilities whose occurrence as at the balance-sheet date cannot be assessed, or liabilities
for which the level cannot be reliably estimated, are disclosed as contingent liabilities.
Accounting policies
Provisions are recognised whenever a legal or constructive obligation arises from past events, the outflow of
resources to settle this liability is probable, and the amount of the liability can be estimated reliably. Provisions
are discounted if the effect is material.
Provisions for dismantling and restoration costs
Swisscom is legally obligated to dismantle transmitter stations and telecommunications installations located on
land belonging to third parties following decommissioning, and to restore to its original state the property
owned by third parties in the locations where these installations are erected. The costs of dismantling are capitalised
as part of the acquisition costs of the installations, and are amortised over their useful lives. The provisions are
measured at the present value of the aggregate future costs, and are reported under non-current provisions.
Whenever the provision is re-measured, the present value of the changes in the liability is either added to or
deducted from the cost of the related capitalised item of property, plant and equipment. The amount deducted
from the cost of the related asset must not exceed its net carrying amount. Any excess is taken directly to income.
Provisions for termination benefits
Costs in connection with the implementation of restructuring programmes are first expensed when management
commits itself to a restructuring plan, it is probable that a liability has been incurred, the amount thereof can be
reliably estimated and the implementation of the programme has commenced, or the individuals involved have
been advised in sufficient detail as to the main terms of the restructuring programme. A public announcement
and/or communication to personnel associations are deemed to be equivalent to commencing the implementation
of the programme.
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4 Employees
Swisscom currently has over 19,000 full-time equivalent employees, of whom
almost 16,000 are in Switzerland . This chapter contains information on employee
headcount and personnel expense, the compensation paid to key management
personnel as well as retirement benefit obligations .
4.1 Employee headcount and personnel expense
Employee headcount
In full-time equivalent
Residential Customers
Business Customers
Wholesale
Infrastructure & Support Functions
Swisscom Switzerland
Fastweb
Other Operating Segments
Total headcount
Thereof Switzerland
Thereof other countries
31.12.2022
31 .12 .2021
2,676
5,177
73
4,896
12,822
3,039
3,296
19,157
15,750
3,407
2,882
5,044
74
4,889
12,889
2,753
3,263
18,905
15,882
3,023
Average number of employees
19,046
19,099
Personnel expense
In CHF million
Salary and wage costs
Social security expenses
Expense of defined benefit plans 1
Expense of defined contribution plans
Expense for share-based payments
Termination benefits
Other personnel expense
Total personnel expense
Thereof Switzerland
Thereof other countries
1 See Note 4.3.
2022
2,049
250
326
11
1
(5)
73
2,705
2,449
256
Change
–7 .1%
2 .6%
–1 .4%
0 .1%
–0.5%
10 .4%
1 .0%
1.3%
–0 .8%
12 .7%
–0 .3%
2021
2,060
248
260
11
1
13
74
2,667
2,399
268
Termination benefits
Swisscom supports employees affected by restructuring through a social plan. In addition to other benefits, the
social plan benefits include continued salary payments beyond the contractual notice period for a maximum period
of time, which depends on the seniority and age of the employee concerned. Under certain conditions, older
employees affected by job cuts can transfer to the subsidiary Worklink AG at reduced guaranteed continued salary
payments. Worklink AG aims to place participants with third-parties for temporary work assignments, whereby the
participants are paid a share of the turnover as a wage supplement. Net expenditure for personnel reduction was
CHF –5 million (prior year: expenditure of CHF 13 million). This is comprised of newly established provisions of
CHF 13 million, less the release of unused provisions to the value of CHF 18 million. These personnel downsizing
measures are connected with Swisscom’s aim to reduce the cost base in the telecommunications business in
Switzerland.
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4.2 Key management compensation
In CHF thousand
Current compensation
Share-based payments
Pension contributions
Social security contributions
Total compensation to members of the Board of Directors
Current compensation
Share-based payments
Benefits paid following retirement from Group Executive Board
Pension contributions
Social security contributions
2022
1,357
812
141
143
2,453
4,637
867
1,053
666
480
2021
1,400
761
137
124
2,422
5,199
853
1,026
766
526
Total compensation to members of the Group Executive Board
Total compensation to members of the Board of Directors and of the Group Executive Board
7,703
10,156
8,370
10,792
Swisscom’s key management personnel are the members of the Board of Directors and Group Executive Board of
Swisscom Ltd. Compensation paid to members of the Board of Directors consists of a base salary plus functional
allowances. One third of the entire compensation of the Board of Directors is settled in the form of equity shares.
Compensation paid to the members of the Group Executive Board consists of a fixed basic salary paid in cash, a
variable performance-related component settled in cash and shares, payments in kind and non-cash benefits, as
well as pension and social insurance contributions. 25% of the variable performance-related share of the members
of the Group Executive Board is settled in shares. The Group Executive Board members may elect to increase this
share to 50%. The disclosures required by the Swiss Ordinance against Excessive Compensation in Listed Companies
(OaEC) are set out in the chapter Remuneration Report. Shares in Swisscom Ltd held by the members of the Board
of Directors and Group Executive Board are set out in the notes to the separate financial statements of Swisscom Ltd.
4.3 Defined benefit plans
Pension plans
comPlan
The majority of employees in Switzerland are insured under the Swisscom pension plan against the risks of old
age, death and disability. The pension plan is implemented by the comPlan foundation. The supreme governing
body of the pension fund is the Foundation Council, which is made up of an equal number of representatives
from the employees and the employer. The pension fund rules, together with the legal provisions concerning
occupational pension plans, constitute the formal regulatory framework of the pension plan. Individual retirement
savings accounts are maintained for all insured persons. Amounts are credited to these individual savings accounts
on an annual basis and interest is accrued. The rate of interest to be applied to the retirement savings accounts
is set each year by the Foundation Council, having regard to the financial situation of the pension fund as well as
the statutory minimum interest rate. The amounts credited to the individual savings accounts are funded by
savings contributions from both the employer and employees that vary based on salary and age. In addition, the
employer pays risk contributions to fund death and disability benefits.
The standard retirement age is 65. Employees are entitled to early retirement with a reduced old-age pension. The
amount of the old-age pension is the result of multiplying the individual retirement savings account at the time
of retirement by a conversion rate set out in the pension fund rules. The retirement benefits can also be paid out
in the form of a capital payment either in full or in part. In case of early retirement, the employer also finances an
OASI bridging pension until the standard retirement age. The amount of disability pensions is determined as a
percentage of the insured salary and is independent of the number of years of service.
The formal regulatory framework contains various provisions concerning risk sharing between the employees and
the employer. In the event of a funding shortfall, computed in accordance with Swiss accounting standards for
pension funds (Swiss GAAP FER 26), the Foundation Council lays down measures which shall lead to the elimination
of this funding deficit and the restoration of financial equilibrium within a timeframe of five to seven years. Such
measures may include a reduced or zero interest rate on retirement savings accounts, a reduction in future
149
benefits, the levying of restructuring contributions or a combination of these measures. Should a structural
funding shortfall exist as a result of interest-induced insufficient current funding, the top priority is to remedy
this situation by adapting future benefits. Employer’s restructuring contributions must, at a minimum, be equal
to the sum of employee restructuring contributions. Under the formal regulatory framework, the employer has
no legal obligation to pay additional contributions to eliminate more than 50% of a funding shortfall. From past
common business practice, Swisscom has a de facto obligation over and above the legal minimum to pay addi-
tional or restructuring contributions in the case of funding shortfalls and structural funding deficits. The upper
limit of the employer’s share of future benefit costs in accordance with IAS 19.87(c) is assumed to be at the level
of the de facto obligation.
The comPlan Foundation Council adopted measures in the second quarter of 2021 to strengthen intergenera-
tional equity. The measures contain a reduction in the conversion rate in monthly steps from 1 January 2023 to
1 May 2024 and an increase in savings contributions. In order to cushion the reduction in the conversion rate, the
individual retirement savings of the employees are credited with special monthly contributions during the reduc-
tion period. The special contributions are fully financed from comPlan’s reserves. In addition, the vested or future
spouse’s or partner’s pensions will be standardised at 60% of the old age pension from 2023. The plan amendment
resulted in a net decrease of CHF 45 million in the defined benefit obligation in the second quarter of 2021. An
amount of CHF 60 million was recognised as negative past service cost in the income statement and an amount
of CHF 15 million was recognised as actuarial loss from changes in assumptions in other comprehensive income.
This is based on a remeasurement of the net defined benefit obligation using the current fair values of plan assets
at the inception of the plan amendment and current actuarial assumptions, taking into account the risk-sharing
characteristics. The past service cost is the difference between the valuation with the previous regulatory benefits
and contributions and the valuation with the amended regulatory benefits and contributions.
In accordance with the relevant Swiss accounting standards (Swiss GAAP FER 26), comPlan’s estimated funding
ratio amounted to 108% as at 31 December 2022 (prior year: 120%). The main reasons for the difference com-
pared with IFRS are the use of a different discount rate as well as a different actuarial measurement method with
the deferred recognition of the costs of future retirement benefits.
Other pension plans
Other pension plans exist for individual Swiss subsidiary companies which are not affiliated to comPlan and for
Fastweb. Employees of the Italian subsidiary Fastweb have acquired entitlements to future pension benefits up to
the end of 2006, which are recorded in the balance sheet as defined benefit obligations. The discount rate used
was 3.77% (prior year: 0.34%).
Pension cost
In CHF million
Current service cost
Plan amendments
Administration expense
Total recognised in personnel expense
Interest expense on net defined benefit obligations
Total recognised in financial expense
Total expense of defined benefit plans recognised
in income statement
comPlan Other plans
2022
comPlan Other plans
316
–
3
319
(1)
(1)
318
6
–
1
7
–
–
7
322
–
4
326
(1)
(1)
312
(60)
3
255
1
1
325
256
4
–
1
5
–
–
5
2021
316
(60)
4
260
1
1
261
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In CHF million
Actuarial gains and losses from
Change of the demographical assumptions
Change of the financial assumptions
Experience adjustments to defined benefit obligations
Change in share of employee contribution (risk sharing)
Return on plan assets excluding the part
recognised in financial result
Asset ceiling
Total (income) expense of defined benefit plans recognised
in other comprehensive income
Status of pension plans
comPlan Other plans
2022
comPlan Other plans
2021
(39)
(2,504)
80
628
1,161
628
–
–
(4)
–
2
–
(39)
(250)
(2,504)
76
628
23
127
455
1,163
(1,161)
628
30
–
–
(1)
–
–
–
(250)
23
126
455
(1,161)
30
(46)
(2)
(48)
(776)
(1)
(777)
In CHF million
comPlan Other plans
2022
comPlan Other plans
2021
Defined benefit obligations
Balance at 1 January
Current service cost
Interest cost on defined benefit obligations
Employee contributions
Benefits paid
Actuarial losses (gains)
Change in scope of consolidation
Plan amendments
Foreign currency translation adjustments
Transfer of pension plans
Balance at 31 December
Plan assets
Balance at 1 January
Interest income on plan assets
Employer contributions
Employee contributions
Benefits paid
Return (expense) on plan assets excluding the part recognised
in financial result
Administration expense
Balance at 31 December
Net defined benefit obligations (assets)
Net defined benefit obligations (assets) before asset ceiling
Asset ceiling
39
272
174
(610)
(1,161)
(3)
11,805
(669)
658
Net defined benefit obligations (assets) recognised at 31 December
(11)
Thereof defined benefit asset
Thereof defined benefit obligations
(11)
–
13,053
47
13,100
12,740
42
12,782
316
38
174
(610)
(1,835)
–
–
–
6
–
–
1
(4)
(1)
–
(1)
–
322
38
174
(609)
(1,839)
(1)
–
(1)
–
312
39
175
(509)
355
–
(60)
–
1
11,136
48
11,184
13,053
4
–
–
–
(1)
3
–
–
(1)
47
316
39
175
(509)
354
3
(60)
–
–
13,100
13,094
23
13,117
11,968
19
11,987
–
6
–
–
(2)
(1)
26
22
–
22
–
22
39
278
174
38
264
175
(610)
(509)
(1,163)
1,161
(4)
(3)
11,831
13,094
(647)
658
11
(11)
22
(41)
30
(11)
(11)
–
–
5
–
–
–
(1)
23
24
–
24
–
24
38
269
175
(509)
1,161
(4)
13,117
(17)
30
13
(11)
24
151
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Movements in recognised defined benefit obligations (assets) are to be analysed as follows:
In CHF million
Balance at 1 January
Pension cost, net
Employer contributions and benefits paid
Change in scope of consolidation
(Income) expense of defined benefit plans,
recognised in other comprehensive income
Foreign currency translation adjustments
Transfer of pension plans
Balance at 31 December
comPlan Other plans
2022
comPlan Other plans
(11)
318
(272)
–
(46)
–
–
(11)
24
7
(5)
(1)
(2)
(1)
–
22
13
325
(277)
(1)
(48)
(1)
–
11
772
256
(264)
–
(776)
–
1
(11)
23
5
(5)
3
(1)
–
(1)
24
2021
795
261
(269)
3
(777)
–
–
13
The weighted average duration of the cash value of the defined benefit obligations for comPlan is 13 years (prior
year: 16 years).
Breakdown of comPlan pension plan assets
31.12.2022
31 .12 .2021
Investment
strategy
Quoted
Not
quoted
Total
Quoted
Not
quoted
Total
4 .9%
5 .5%
4 .6%
9 .8%
7 .7%
4 .8%
37.3%
7 .5%
14 .3%
5 .3%
27.1%
14 .5%
7 .4%
2 .9%
0 .0%
0 .0%
0 .0%
0 .0%
4 .8%
7.7%
0 .0%
0 .0%
0 .0%
0.0%
7 .6%
6 .7%
14.3%
21.9%
1 .9%
9 .3%
1 .0%
3 .4%
9 .3%
1 .0%
Category
Government bonds Switzerland
Corporate bonds Switzerland
Government bonds developed markets, World
Corporate bonds developed markets, World
Government bonds emerging markets, World
Private debt
Third-party debt instruments
Equity shares Switzerland
5 .0%
7 .0%
5 .0%
10 .0%
8 .0%
5 .0%
2 .0%
7 .1%
4 .0%
9 .5%
7 .8%
0 .0%
40.0%
30.4%
7 .0%
6 .7%
Equity shares developed markets, World
13 .5%
13 .2%
Equity shares emerging markets, World
4 .5%
4 .3%
2 .6%
0 .0%
0 .0%
0 .0%
0 .0%
5 .3%
7.9%
0 .0%
0 .0%
0 .0%
0.0%
4 .6%
7 .1%
4 .0%
9 .5%
7 .8%
5 .3%
2 .0%
5 .5%
4 .6%
9 .8%
7 .7%
0 .0%
38.3%
29.6%
6 .7%
7 .5%
13 .2%
14 .3%
4 .3%
5 .3%
24.2%
27.1%
Equity instruments
Real estate Switzerland
Real estate World
Real estate
Commodities
Private markets
Cash and cash equivalents and other investments
Cash and cash equivalents and
alternative investments
25.0%
24.2%
15 .0%
8 .0%
23.0%
2 .0%
9 .0%
1 .0%
5 .9%
0 .0%
5.9%
0 .0%
0 .0%
0 .0%
10 .1%
16 .0%
8 .8%
8 .8%
18.9%
24.8%
2 .0%
2 .0%
10 .6%
10 .6%
0 .1%
0 .1%
6 .9%
0 .7%
7.6%
1 .5%
0 .0%
0 .0%
12.0%
0.0%
12.7%
12.7%
1.5%
12.2%
13.7%
Total plan assets
100.0%
60.5%
39.5%
100.0%
65.8%
34.2%
100.0%
The Foundation Council determines the investment strategy and tactical bandwidths within the framework of
the legal provisions. Within its terms of reference, the Investment Commission undertakes the asset allocation,
and is the central steering, coordination and monitoring body for the management of the pension plan assets.
The investment strategy pursues the goal of achieving the highest possible return on assets within the frame-
work of its risk tolerance, and thus of generating income on a long-term basis to meet all financial obligations.
This is achieved through a broad diversification of risks over various investment categories, markets, currencies
and industry segments in both developed and emerging markets. The interest rate duration of interest-bearing
assets is 6.5 years (prior year: 7.9 years), and the average rating of these assets is A- (prior year: BBB+). Within the
overall portfolio, all foreign currency positions are hedged against the Swiss franc following a currency strategy
to the extent necessary to meet a pre-determined ratio of 84% (CHF or CHF-hedged). Following this investment
strategy, comPlan expects its results prepared in accordance with Swiss GAAP FER to show a target value for the
value fluctuation reserve of 16.4% of total assets.
Additional information on plan assets
As at 31 December 2022, plan assets include Swisscom Ltd shares and bonds with a fair value of CHF 11 million
(prior year: CHF 12 million). The effective income from plan assets was minus CHF 1,123 million in 2022 (prior
year: income of CHF 1,199 million). In 2023, Swisscom expects to make payments to the pension funds for statutory
employer contributions totalling CHF 263 million.
Assumptions underlying comPlan actuarial computations
Assumptions
Discount rate
Expected rate of salary increases
Expected rate of pension increases
Capital withdrawal ratio
Interest on old age savings accounts up to 5 years
Interest on old age savings accounts after 5 years
Share of employee contribution to funding shortfall
Share of employee contribution to surplus
Life expectancy at age of 65 – men (number of years)
Life expectancy at age of 65 – women (number of years)
2022
2 .19%
1 .83%
–%
26%
2 .19%
2 .19%
40%
50%
22 .16
23 .92
2021
0 .30%
1 .23%
–%
24%
1 .54%
0 .54%
40%
50%
22 .09
23 .83
The discount rate is based upon CHF-denominated corporate bonds with an AA rating of domestic and foreign
issuers and listed on the Swiss Exchange SIX. The assumption regarding the rate of salary increases is based on
past values from recent years and takes long-term inflation expectations into account. No future pension
increases are expected because comPlan does not have sufficient fluctuation reserves for this under pension law.
The interest rate on the individual savings balances has been determined taking into account the BVG minimum
interest rate for the mandatory BVG portion. Life-expectancy assumptions are arrived at through a projection of
future mortality improvements in accordance with the Continuous Mortality Investigation Model (CMI) and are
based on improvements in mortality actually observed in Switzerland in the past. The computations are made
with a future long-term rate of mortality improvement of 1.75%. The change of the financial estimates resulted
in a net actuarial gain of CHF 2,504 million in 2022. The increase in the discount rate resulted in a gain of
CHF 2,865 million whereas adjustments to other financial assumptions, in particular the rate of salary increases
and the rate of interest to be applied to the retirement savings accounts, resulted in a loss of CHF 361 million. In
the prior year, the actuarial gain of CHF 250 million resulting from changes in demographical assumptions was
mainly due to the application of new mortality tables.
For the event of an interest-induced funding shortfall, the risk-sharing attributes contained in the formal regula-
tory framework relating to the handling of funding shortfalls are taken into account in the financial assumptions
in two steps. As a first step, it is assumed that a gradual lowering of future pensions over a period of ten years
will take place in order to close the funding gap. This is based upon a projection of the future conversion rate
using a mixed rate for the mandatory and extra-mandatory portions. The current legal conversion rate is applied
for the mandatory portion. In the extra-mandatory portion, the conversion rate is computed using the discount rate
applied for the valuation. As a second step, the present value of the remaining funding gap between the regula-
tory contributions and the benefits adjusted in the first step is shared between the employer and the employees.
The legal and de facto obligation of the employer to pay additional contributions is unchanged and assumed to
be limited to 60% of the funding gap. This is based on the legal and regulatory provisions concerning the elimi-
nation of funding shortfalls as well as the measures actually decided upon by the Foundation Council and the
employer in the past. If there is a surplus under IFRS, no limit is placed on the employer’s share of a funding
shortfall in the second step. Instead, the gross surplus is reduced by an employee contribution of 50%.
There was no interest-induced funding shortfall as at 31 December 2022, meaning that there is no assumption
that pensions will be reduced. There was an interest-induced funding shortfall as at 31 December 2021, meaning
that a gradual reduction in future pensions of 3.0% was assumed. Gross surpluses arose as at 31 December 2022
and 31 December 2021; these have been reduced by the employee contribution of CHF 679 million (prior year:
CHF 31 million). The change in the share of the employee contribution to the funding shortfall or surplus is rec-
ognised in other comprehensive income.
153
Sensitivity analysis comPlan
Sensitivity analysis 2022
In CHF million
Discount rate (change +/–0 .5%)
Expected rate of salary increases (change +/–0 .5%)
Expected rate of pension increases (change +0 .5%; –0 .0%)
Capital withdrawal ratio (change +/–5 .0%)
Interest on old age savings accounts (change +/–0 .5%)
Share of employee contribution to funding shortfall (change +/–10%)
Share of employee contribution to surplus (change +/–10%)
Life expectancy at age of 65 (change +/–0 .5 year)
Sensitivity analysis 2021
Defined benefit obligations
Current service cost
Increase
assumption
Decrease
assumption
Increase
assumption
Decrease
assumption
(555)
29
506
2
66
–
136
129
627
(28)
–
(2)
(63)
–
(136)
(131)
(19)
3
14
–
5
–
–
2
23
(3)
–
–
(5)
–
–
(2)
In CHF million
Discount rate (change +/–0 .5%)
Expected rate of salary increases (change +/–0 .5%)
Expected rate of pension increases (change +0 .5%; –0 .0%)
Interest on old age savings accounts (change +/–0 .5%)
Share of employee contribution to funding shortfall (change +/–10%)
Share of employee contribution to surplus (Change +/–10%)
Life expectancy at age of 65 (change +/–0 .5 year)
Defined benefit obligations
Current service cost
Increase
assumption
Decrease
assumption
Increase
assumption
Decrease
assumption
(431)
32
368
53
–
6
108
467
(25)
–
(46)
–
(6)
(103)
(34)
6
6
7
–
–
5
41
(6)
–
(7)
–
–
(5)
The sensitivity analysis takes into consideration the movement in defined benefit obligations as well as current
service costs in adjusting the actuarial assumptions by half a percentage point and half a year, respectively. In the
process only one of the assumptions is adjusted each time, the other parameters remaining unchanged. In the
sensitivity analysis, no change was made in view of a negative movement in pension increases as it is not possi-
ble to reduce current pensions. The assumed gradual reduction in conversion rates is left unchanged in the sen-
sitivities of the discount rate shown. Due to the limitation of the assets, an increase in the discount rate of 0.5%
in the calculation of the conversion rate reduction does not lead to an increase in the pension obligation.
Significant judgements or estimates
The determination of post-employment retirement benefit obligations requires an estimation of the future ser-
vice periods, the development of future salaries and pensions, interest accruing on the employee savings
accounts, the timing of contractual pension benefit payments and the employees’ share of the funding shortfall.
This evaluation is made on the basis of prior experience and anticipated future trends. Anticipated future pay-
ments are discounted with the yields of Swiss franc-denominated corporate bonds from domestic and foreign
issuers quoted on the Swiss Exchange with an AA rating. The discount rates match the anticipated payment
maturities of the liabilities.
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Accounting policies
Actuarial computations of pension expenses and the related defined benefit obligations are carried out using the
projected unit credit method. Current service costs, past service costs arising from pension plan amendments and
plan settlements as well as administrative costs are reported in the income statement under personnel expense
and interest accruing on net obligations as a finance expense. Actuarial gains and losses and the return on plan
assets, excluding the amounts reflected in net interest income, are reported under other comprehensive income.
The assumptions regarding net future benefits are made in compliance with the formal set of regulations gov-
erning the pension plan. As regards the Swiss pension plans, the relevant formal regulations comprise the rules
of the pension fund as well as the relevant laws, ordinances and directives concerning occupational benefit plans,
in particular the provisions contained therein related to funding and measures to be taken to eliminate funding
shortfalls. Risk-sharing features in the formal regulatory framework are taken into account when arriving at
financial assumptions; these limit the employer’s share of the costs of future benefits as well as involving
employees in any necessary payment of additional contributions in order to eliminate funding deficits. Should
the level of committed long-term disability benefits (disability pensions), irrespective of the number of years of
service, be the same for all insured employees, the costs for these benefits are recognised on the date on which
the event causing the disability occurs. Any net asset value from a defined benefit plan is recognised at the lower
of the surplus and the present value of any economic benefit in the form of refunds or reductions in future con-
tributions, provided that the value fluctuation reserve set as a target by the Board of Trustees is exceeded.
155
5 Scope of consolidation
The following chapter sets out details of the Group structure of Swisscom and
includes disclosures concerning subsidiaries, joint ventures and associates . In
addition, it outlines material changes in Group structure and the corresponding
impact on the consolidated financial statements .
5.1 Group structure
Swisscom Ltd is the holding company of the Group. It essentially holds direct majority shareholdings in Swisscom
(Switzerland) Ltd, blue Entertainment Ltd, Swisscom Broadcast Ltd and Swisscom Directories Ltd. Fastweb S.p.A.
(Fastweb) is held indirectly via Swisscom (Switzerland) Ltd as well as an intermediate company in Italy. Swisscom
Re Ltd is the Group’s in-house reinsurance company. Swisscom raises finance in EUR through Swisscom Finance
B.V. in the Netherlands.
5.2 Changes in the scope of consolidation
Net cash flows from the acquisition and disposal of participations may be analysed as follows:
In CHF million
Expenses for business combinations net of cash and cash equivalents acquired
Expenses for deferred consideration arising on business combinations
Proceeds from sale of subsidiaries, net of cash and cash equivalents sold
Expenses for shareholdings accounted for using the equity method
Proceeds from sale of equity-accounted investees 1
Acquisition of non-controlling interests
Total cash flow from the purchase and sale of shareholdings, net
1 See Note 5.3.
2022
(65)
(2)
–
(2)
–
(14)
(83)
2021
(32)
(10)
1
(3)
149
–
105
Acquisitions and disposals of subsidiaries in 2022 are not individually material. The business combinations in
2022 include the full acquisition of MTF Solutions AG and Audio Video G + M Holding AG. Swisscom also acquired
the remaining 25% share in Swisscom Digital Technology AG in 2022.
Business combinations in 2021 include the full acquisition of Webtiser AG and JLS Digital as well as acquisition of
a 90% stake in the Innovative Web Group. Following its acquisition, Webtiser AG was merged with Swisscom
(Switzerland) Ltd. Swisscom also sold all its shares in local.fr SA in 2021 and relinquished control of Custodigit AG.
In addition, Swisscom sold its shares in the following equity-accounted investees in 2021: Belgacom Interna-
tional Carrier Services SA, Medgate AG, SEC Consult (Switzerland) AG, SmartLife Care AG, SwissSign Group AG
and tiko Energy Solutions AG. For further information, see Note 5.3.
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Accounting policies
Consolidation
Subsidiaries are all companies in respect of which Swisscom Ltd has the effective ability to control the financial
and business policies. Control is generally assumed where Swisscom Ltd directly or indirectly holds the majority
of the voting rights or potential voting rights of the company. Companies acquired and sold are included in con-
solidation from the date on which they are acquired and deconsolidated from the date they are disposed of,
respectively. Intragroup balances and transactions, income and expenses, shareholdings and dividends as well as
unrealised gains and losses are fully eliminated. Non-controlling interests in subsidiaries are reported within
equity in the consolidated balance sheet, but separately from equity attributable to the shareholders of
Swisscom Ltd. The non-controlling interests in net income or loss are shown in the consolidated income state-
ment as a component of the consolidated net income or loss. Changes in shareholdings of subsidiary companies
are reported as transactions within equity insofar as control existed previously and continues to exist. Put options
granted to owners of non-controlling interests are disclosed as financial liabilities. The balance sheet date for all
consolidated subsidiaries is 31 December. There are no material restrictions on the transfer of funds from the
subsidiaries to the parent company.
Shareholdings over which Swisscom exercises significant influence but does not have control are accounted for
using the equity method. A significant influence is generally assumed to exist whenever between 20% and 50%
of the voting rights are held.
Business combinations
Business combinations are accounted for using the acquisition method. Acquisition costs are recognised at fair
value as at the date of the business combination. The purchase consideration includes the amount of cash paid
and the fair value of the assets ceded, liabilities incurred or assumed, and own equity instruments ceded. Liabil-
ities depending on future events based on contractual agreements are recognised at fair value. All identifiable
assets and liabilities that satisfy the recognition criteria are recognised at their fair values at the time of acquisi-
tion. The difference between the cost of acquisition and the fair value of the identifiable assets and liabilities
acquired or assumed is accounted for as goodwill, after taking into account any non-controlling interests.
5.3 Equity-accounted investees
In CHF million
Balance at 1 January
Additions
Disposals
Dividends
Share of net results
Share of other comprehensive income
Impairment losses
Foreign currency translation adjustments
Balance at 31 December
2022
30
5
(3)
(2)
(3)
1
(2)
–
26
2021
155
18
(131)
(1)
(5)
(2)
(5)
1
30
157
In 2021, as part of its strategic partnership with TIM, Fastweb transferred its stake in Flash Fiber as a capital
contribution to the newly established fibre-optic company FiberCop. For contributing its 20% stake to Flash Fiber,
Fastweb has received a 4.5% stake in FiberCop. The transaction was completed in March 2021. The fair value of the
FiberCop investment is EUR 210 million (CHF 232 million). The transaction resulted in a gain on the Flash Fiber
participation of CHF 169 million, which was recognised in the income statement in the first quarter of 2021. In
addition, in the first quarter of 2021, Swisscom sold its share in Belgacom International Carrier Services SA (BICS) for
a sale price of EUR 115 million (CHF 126 million). Swisscom realised a gain of CHF 38 million from the sale of BICS.
Selected key performance indicators for equity-accounted investees
In CHF million
Income statement
Net revenue
Operating expense
Operating income
Net income
Other comprehensive income
Balance sheet at 31 December
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Equity
2022
2021
197
(191)
6
2
8
146
20
(53)
(30)
83
368
(369)
(1)
(34)
(9)
158
19
(69)
(30)
78
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5.4 Group companies
Group companies in Switzerland
Registered name
Registered office
31.12.2022
Capital and
voting rights
share in %
31 .12 .2021
Capital and
voting rights
share in %
Share capital
in million Currency Segment
4
Switzerland
AdUnit Ltd 2
Ajila AG 2
Artificialy SA 2,3
Audio-Video G+M AG 1
autoSense Ltd 2,3
Billag Ltd in liquidation 1
Blue Entertainment Ltd 1
cablex Ltd 2
Credit Exchange Ltd 2,3
Custodigit Ltd 2,3
daura Ltd 2,3
ecmt AG 2,3
Entertainment Programm AG 2,3
finnova ltd bankware 2,3
Global IP Action Ltd 2
Innovative Government Ltd 1
Innovative Web Ltd 1
Innovative We Marketing & Service Ltd 1
itnetX (Switzerland) AG 2
JLS Digital AG 2
Mona Lisa Capital AG in liquidation 2
MTF Solutions AG 2
SportPass (Switzerland) AG 2,3
Swisscom Broadcast Ltd 1
Swisscom Digital Technology SA 1
Swisscom Directories Ltd 1
Swisscom eHealth Invest GmbH 2
Swisscom Real Estate Ltd 1
Swisscom IT Services
Finance Custom Solutions Ltd 2
Swisscom RE Ltd 1
Swisscom (Switzerland) Ltd 1
Swisscom Services Ltd 2
Swisscom Trust Services Ltd 2
Swisscom Ventures Ltd 2
United Security Provider Ltd 2
Worklink AG 1
1 Participation directly held by Swisscom Ltd.
2 Participation indirectly held by Swisscom Ltd.
Zurich
Sursee
Lugano
St . Gallen
Zurich
Fribourg
Zurich
Muri near Berne
Zurich
Zurich
Zurich
Embrach
Zurich
Lenzburg
Freienbach
Freienbach
Freienbach
Zurich
Rümlang
Lucerne
Ittigen
Ittigen
Zurich
Berne
Lausanne
Zurich
Ittigen
Ittigen
Olten
Ittigen
Ittigen
Ittigen
Zurich
Ittigen
Berne
Berne
100
60
18
100
33
–
100
100
25
–
26
20
33
9
68
90
90
90
100
100
–
100
25
100
100
100
–
100
100
100
100
100
100
100
100
100
100
60
18
–
33
100
100
100
25
41
26
20
33
9
68
90
90
90
100
100
100
–
25
100
75
100
100
100
100
–
100
100
100
100
100
100
0 .1 CHF
0 .1 CHF
1 .1 CHF
0 .1 CHF
0 .3 CHF
0 .1 CHF
0 .5 CHF
5 .0 CHF
0 .1 CHF
1 .8 CHF
0 .4 CHF
0 .1 CHF
0 .6 CHF
0 .5 CHF
0 .2 CHF
0 .1 CHF
0 .1 CHF
0 .1 CHF
0 .1 CHF
1 .0 CHF
5 .0 CHF
0 .1 CHF
0 .1 CHF
25 .0 CHF
0 .1 CHF
2 .2 CHF
1 .4 CHF
100 .0 CHF
0 .1 CHF
10 .0 CHF
1,000 .0 CHF
0 .1 CHF
1 .0 CHF
2 .0 CHF
0 .5 CHF
0 .5 CHF
OTH
OTH
OTH
OTH
OTH
OTH
SCS
OTH
OTH
OTH
OTH
OTH
SCS
SCS
OTH
OTH
OTH
OTH
SCS
SCS
OTH
SCS
OTH
OTH
SCS
OTH
OTH
SCS
SCS
SCS
SCS
SCS
OTH
OTH
SCS
SCS
3 Investment is accounted for using the equity method. Through its representa-
tion on the Board of Directors of the company, Swisscom can exercise a signifi-
cant influence.
4 SCS = Swisscom Switzerland, FWB = Fastweb, OTH = Other
159
Group companies in other countries
Registered name
Registered office
31.12.2022
Capital and
voting rights
share in %
31 .12 .2021
Capital and
voting rights
share in %
Share capital
in million Currency Segment
4
Germany
Swisscom Telco GmbH 2
France
SoftAtHome SA 2,3
Great Britain
Ajila UK Ltd 2
Italy
7Layers S .r .l . 2
Fastweb S .p .A . 2
Fastweb Air S .r .l . 2
Swisscom Italia S .r .l . 2
Latvia
Swisscom DevOps Latvia SIA 2
Liechtenstein
Swisscom Re Ltd 1
Luxembourg
DTF GP S .A .R .L 2
DTF GP II S .A .R .L . 2
Digital Transformation Fund
Carried Partner SCSp 2
Digital Transformation Fund
Initial Limited Partner SCSp 2
Netherlands
NGT International B .V . 2
Swisscom Finance B .V . 1
Austria
Swisscom IT Services Finance SE 2
Singapore
Swisscom IT Services Finance Pte Ltd 2
Spain
Webtiser Spain SA 2
USA
Swisscom Cloud Lab Ltd 2
1 Participation directly held by Swisscom Ltd.
2 Participation indirectly held by Swisscom Ltd.
Leipzig
100
100
– EUR
OTH
Colombes
London
Florence
Milan
Milan
Milan
Riga
Vaduz
10
60
70
100
100
100
10
60
70
100
100
100
6 .5 EUR
SCS
– GBP
OTH
0 .2 EUR
41 .3 EUR
– EUR
505 .8 EUR
FWB
FWB
FWB
SCS
100
100
– EUR
SCS
100
100
5 .0 CHF
SCS
Luxembourg
Luxembourg
Luxembourg
Luxembourg
Capelle a/d IJssel
Rotterdam
100
100
100
100
100
100
100
100
100
100
100
100
– EUR
– EUR
– EUR
– EUR
– EUR
0 .1 EUR
OTH
OTH
OTH
OTH
SCS
OTH
Vienna
100
100
3 .3 EUR
SCS
Singapore
–
100
0 .1 SGD
SCS
Madrid
100
100
0 .1 EUR
SCS
Delaware
100
100
– USD
OTH
3 Investment is accounted for using the equity method. Through its representa-
tion on the Board of Directors of the company, Swisscom can exercise a signifi-
cant influence.
4 SCS = Swisscom Switzerland, FWB = Fastweb, OTH = Other
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6 Other disclosures
This chapter details information which is not already disclosed in the other
parts of the report . For instance, it includes disclosures regarding income taxes
and related parties .
6.1 Income taxes
Income tax expense
In CHF million
Current income tax expense
Adjustments recognised for current tax of prior periods
Deferred income tax expense
Total income tax expense recognised in income statement
Thereof Switzerland
Thereof other countries
2022
365
(14)
9
360
316
44
2021
337
(3)
(15)
319
339
(20)
In addition, other comprehensive income includes current and deferred income taxes, which may be analysed as
follows:
In CHF million
Foreign currency translation adjustments of foreign subsidiaries
Actuarial gains and losses from defined benefit pension plans
Change to the fair value of equity instruments
Change in cash flow hedges
Total income tax expense recognised in other comprehensive income
2022
(7)
7
1
(1)
–
2021
(7)
139
13
(1)
144
Analysis of income taxes
The applicable income tax rate which serves to prepare the following analysis of income tax expense is the
weighted average income tax rate calculated on the basis of the Group’s operating subsidiaries in Switzerland.
The applicable income tax rate is 18.0% (prior year: 18.3%). The decline in the applicable income tax rate can be
attributed to a reduction in the tax rates in various Swiss cantons.
In CHF million
Income before income taxes in Switzerland
Income before income taxes other countries
lncome before income taxes
Applicable income tax rate
Income tax expense at the applicable income tax rate
Reconciliation to reported income tax expense
Effect from result of shareholdings accounted for using the equity method
Effect of changes in tax law in Switzerland
Effect of changes in tax law in other countries
Effect of use of different income tax rates in Switzerland
Effect of use of different income tax rates in other countries
Effect of non-recognition of tax loss carry-forwards
Effect of exclusively tax-deductible expenses and income
Effect of exclusively non-tax-deductible expenses and income
Effect of income tax of prior periods
Total income tax expense
Effective income tax rate
2022
1,779
184
1,963
18 .0%
353
–
(7)
–
3
11
1
(14)
27
(14)
360
2021
1,827
325
2,152
18 .3%
394
2
5
(57)
1
6
1
(30)
–
(3)
319
18 .3%
14 .8%
161
As a result of a change in tax law in Italy, Fastweb revalued its own goodwill to the carrying amount for tax
purposes in the third quarter of 2021. The revaluation resulted in a positive tax effect of CHF 57 million.
Current income tax assets and liabilities
In CHF million
Current income tax liabilities at 1 January, net
Recognised in income statement
Recognised in other comprehensive income
Income taxes paid in Switzerland
Income taxes paid in other countries
Current income tax liabilities at 31 December, net
Thereof current income tax assets
Thereof current income tax liabilities
Thereof Switzerland
Thereof other countries
Deferred income tax assets and liabilities
In CHF million
Property, plant and equipment
Intangible assets
Provisions
Defined benefit obligations
Tax loss carry-forwards
Other
Total tax assets (tax liabilities)
Thereof deferred tax assets
Thereof deferred tax liabilities
Thereof Switzerland
Thereof other countries
2022
228
351
(9)
(361)
(17)
192
(2)
194
140
52
2021
182
334
(9)
(264)
(15)
228
(2)
230
222
6
Assets
Liabilities
54
5
85
–
–
145
289
(597)
(100)
(73)
(23)
–
(133)
(926)
31.12.2022
Net
amount
(543)
(95)
12
(23)
–
12
(637)
194
(831)
(675)
38
Assets
Liabilities
31 .12 .2021
Net
amount
50
12
102
–
12
140
316
(611)
(62)
(93)
(24)
–
(133)
(923)
(561)
(50)
9
(24)
12
7
(607)
204
(811)
(629)
22
Tax loss carry-forwards for which no deferred tax assets were recognised expire as follows:
In CHF million
Expiring within 1 year
Expiring within 2 to 7 years
No expiration
Total unrecognised tax loss carry-forwards
Thereof Switzerland
Thereof other countries
31.12.2022
31 .12 .2021
–
19
7
26
20
6
–
18
5
23
18
5
Other disclosures
No deferred tax liabilities were recognised on the undistributed earnings of subsidiaries as at 31 December 2022
(prior year: CHF 6 million). Temporary differences of subsidiaries and equity-accounted investees for which no
deferred tax liabilities are recognised as at 31 December 2022 amounted to CHF 3,211 million (prior year:
CHF 2,838 million).
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Accounting policies
Income taxes encompass all current and deferred taxes which are based on income. Taxes which are not based
on income, such as taxes on real estate and on capital, are recorded as other operating expenses. Deferred taxes
are computed using the balance sheet liability method, whereby as a general rule deferred taxes are recognised
on all temporary differences. Temporary differences arise from differences between the carrying amount of a
balance sheet position in the consolidated financial statements and its value as reported for tax purposes, which
will reverse in future periods. Deferred tax assets are only recognised as assets to the extent that it is probable
that they can be offset against future taxable income. Income tax liabilities on distributions of undistributed prof-
its of Group companies are only recognised if the distribution of profits is to be made in the foreseeable future.
If it is probable that the tax authority will accept the chosen tax treatment, the tax amount in the consolidated
financial statements is the same as that entered in the tax return submitted. However, if this is not probable, the
amounts will be different. The uncertainty is taken into account in the measurement, which requires a best-possible
estimate of the expected cash outflow. If there are few possible outcomes of the tax treatment, the most likely
outcome is used to determine the tax liability. If there are a large number of possible tax consequences, an
expected value is determined on the basis of a probability calculation. Current and deferred tax assets and liabil-
ities are offset whenever they relate to the same taxing authority and taxable entity.
163
6.2 Related parties
Majority shareholder and equity-accounted investees
Majority shareholder
Pursuant to the Swiss Federal Telecommunications Enterprises Act (TEA), the Swiss Confederation (‘the Confed-
eration’) is obligated to hold a majority of the share capital and voting rights of Swisscom. On 31 December 2022,
the Confederation, as majority shareholder, continued to hold 51% of the issued shares. Any reduction of the
Confederation’s holding below a majority shareholding would require a change in law, which would need to be
voted upon by the Swiss Parliament and would also be subject to the right of optional referendum by Swiss voters.
As the majority shareholder, the Confederation has the power to control the decisions of the annual general
meetings of shareholders which are taken by the absolute majority of validly cast votes. This relates primarily to
resolutions concerning dividend distributions and the election of the members of the Board of Directors.
Swisscom supplies telecommunications services to, and also procures services from, the Confederation. The
Confederation comprises the various ministries and administrative bodies of the Confederation and the other
companies controlled by the Confederation (primarily the Swiss Post, Swiss Federal Railways, RUAG and Skyguide).
All transactions are conducted on the basis of normal customer/supplier relationships and on conditions applicable
to unrelated third parties. In addition, financing transactions are entered into with the Swiss Post under market
conditions.
Equity-accounted investees
Services provided to/by equity-accounted investees are based upon market prices. Such participations are listed
in Note 5.3.
Transactions and balances
In CHF million
Income
Expense
Receivables
Liabilities
2022 financial year
Confederation
Equity-accounted investees
Total 2022 / balance at 31 December 2022
185
2
187
80
41
121
32
7
39
329
2
331
In CHF million
Income
Expense
Receivables
Liabilities
2021 financial year
Confederation
Equity-accounted investees
Total 2021 / balance at 31 December 2021
186
18
204
69
50
119
278
6
284
159
4
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Occupational pension schemes and compensation payable to individuals in key positions
Transactions between Swisscom and the various pension funds are detailed in Note 4.3. Compensation paid to
individuals in key positions is disclosed in Note 4.2.
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6.3 Other accounting policies
Foreign currency translation
Foreign currency transactions which are not denominated in the functional currency are translated into the
functional currency using the exchange rate prevailing at the dates of the transactions. Monetary items as at the
balance sheet date are translated into the functional currency at the exchange rate prevailing on the balance
sheet date, while non-monetary items are translated using the exchange rate on the date of the transaction.
Translation differences are recognised in the income statement. Assets and liabilities of subsidiaries and equity-
accounted investees reporting in a different functional currency are translated at the exchange rates prevailing
on the balance sheet date, whereas the income statement and the cash flow statement are translated at the
average exchange rate. Translation differences arising from the translation of net assets and income statements
are recorded in other comprehensive income.
Significant foreign currency translation rates
Currency
1 EUR
1 USD
31.12.2022
31 .12 .2021
0 .985
0 .923
1 .033
0 .912
Closing rate
31 .12 .2020
1 .080
0 .880
2022
1 .004
0 .952
Average rate
2021
1 .080
0 .912
Amended International Financial Reporting Standards and Interpretations,
whose application is not yet mandatory
The following International Financial Reporting Standards and Interpretations published up to the end of 2022
are mandatory for annual periods beginning on or after 1 January 2023.
Standard
Name
IFRS 17
Amendments to IAS 1
Amendments to IAS 8
Amendments to IAS 12
Amendments to IFRS 10 and IAS 28 Sale or deposit of assets between an investor and an associated company
Insurance contracts
Disclosure of accounting policies
Definition of accounting estimates
Deferred taxes related to assets and li a bil i ties arising from a single trans ac tion
or joint venture
Effective from
1 January 2023
1 January 2023
1 January 2023
1 January 2023
still open
Swisscom will review its financial reporting for the impact of those new and amended standards which take
effect on or after 1 January 2023 and which Swisscom did not choose to adopt earlier than required. At present,
Swisscom anticipates no material impact on the consolidated financial statements.
165
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Report of the statutory auditor
to the General Meeting of Swisscom Ltd
Ittigen
Report on the audit of the consolidated financial statements
Opinion
We have audited the consolidated financial statements of Swisscom Ltd and its subsidiaries (the Group), which comprise
the consolidated statement of comprehensive income for the year ended 31 December 2022, the consolidated balance
sheet as at 31 December 2022, the consolidated statement of cash flows and the consolidated statement of changes in
equity for the year then ended as well as notes to the consolidated financial statements, including a summary of signifi-
cant accounting policies.
In our opinion, the accompanying consolidated financial statements (pages 106 to 165) give a true and fair view of the
consolidated financial position of the Group as at 31 December 2022 and its consolidated financial performance and its
consolidated cash flows for the year then ended in accordance with the International Financial Reporting Standards
(IFRS) and comply with Swiss law.
Basis for opinion
We conducted our audit in accordance with Swiss law, International Standards on Auditing (ISAs) and the Swiss Stand-
ards on Auditing (SA-CH). Our responsibilities under these regulations and standards are further described in the 'Audi-
tor’s responsibilities for the audit of the consolidated financial statements' section of our report.
We are independent of the Group in accordance with the provisions of Swiss law and the requirements of the Swiss au-
dit profession, as well as the International Code of Ethics for Professional Accountants (including International Independ-
ence Standards) of the International Ethics Standards Board for Accountants (IESBA Code), and we have fulfilled our
other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Our audit approach
Overview
Overall materiality for the consolidated financial statements: CHF 90 Mio.
We conducted full scope audit work at three Group companies in two countries.
These Group companies represent over 90% of the Group’s revenue. In addi-
tion, specified procedures were performed on selected balance sheet and in-
come statement line items for one additional Group company located in Swit-
zerland.
As key audit matters the following areas of focus have been identified:
Recoverability of Fastweb goodwill
Revenue recognition – Solutions business with Business Customers
Recoverability of technical installations and intangible assets
Assessment of litigation arising from regulatory and competition law pro-
ceedings
PricewaterhouseCoopers AG, Birchstrasse 160, Postfach, 8050 Zürich, Switzerland
Telefon: +41 58 792 44 00, www.pwc.ch
PricewaterhouseCoopers AG is a member of the global PricewaterhouseCoopers network of firms, each of which is a separate and independent legal entity.
Materiality
The scope of our audit was influenced by our application of materiality. Our audit opinion aims to provide reasonable
assurance that the consolidated financial statements are free from material misstatement. Misstatements may arise due
to fraud or error. They are considered material if, individually or in aggregate, they could reasonably be expected to influ-
ence the economic decisions of users taken on the basis of the consolidated financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall
Group materiality for the consolidated financial statements as a whole as set out in the table below. These, together with
qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit
procedures and to evaluate the effect of misstatements, both individually and in aggregate, on the consolidated financial
statements as a whole.
Overall Group materiality
CHF 90 Mio.
Benchmark applied
Profit before tax
Rationale for the materiality bench-
mark applied
We chose profit before tax as the benchmark because, in our view, it is the
benchmark against which the performance of the Group is most commonly
measured, and it is a generally accepted benchmark.
We agreed with the Audit Committee & ESG Reporting that we would report to them misstatements with impacts on the
income statement above CHF 4,5 million identified during our audit as well as any misstatements below that amount
which, in our view, warranted reporting for qualitative reasons.
Audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the consoli-
dated financial statements as a whole, taking into account the structure of the Group, the accounting processes and con-
trols, and the industry in which the Group operates.
The Group consists of three operating segments (Swisscom Switzerland, Fastweb and other Operating Segments) and
operates mainly in Switzerland and Italy. Swisscom (Schweiz) Ltd generates most of the revenue. Another company that
we identified as significant is Fastweb S.p.A. (Fastweb).
The audits of Swisscom (Schweiz) Ltd and Swisscom Ltd were performed by the Group audit team. The audit of Fast-
web was performed by the PwC component auditor in Italy, to whom we provided instructions and with whom we are in
regular contact to discuss the treatment of transactions that are material to the consolidated financial statements as well
as questions regarding valuation and disclosure. In addition, we participate in important discussions with Fastweb’s man-
agement. The audit of these three companies addresses the major part of the consolidated financial statements. Finally,
we identified an additional subsidiary with significant balance sheet and income statement items, which is audited by the
Group audit team. Group-wide topics, such as treasury, taxes, pension obligations, investments including goodwill and
the implementation of new accounting requirements are addressed by the Group audit team.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
consolidated financial statements of the current period. These matters were addressed in the context of our audit of the
consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
Recoverability of Fastweb goodwill
Key audit matter
How our audit addressed the key audit matter
The impairment testing of goodwill relating to Fastweb was
deemed a key audit matter for the following reasons:
During our audit, we assessed the design of the controls
implemented to assess the recoverability of the Fastweb
goodwill. We assessed with regard to the impairment test
Swisscom Ltd | Report of the statutory auditor to the General Meeting
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As at 31 December 2022, the goodwill relating to the Fast-
web operating segment amounted to CHF 492 million
(2021: CHF 514 million), which is a significant amount.
whether a correct valuation method was used, the calcula-
tion was coherent and the assumptions made were appro-
priate.
In performing the annual impairment test of the Fastweb
goodwill, management has considerable scope for judge-
ment regarding the expected future cash flows, the dis-
count rate (WACC) used and the forecasted growth.
Please refer to note 3.4 ‘Goodwill’ (page 143) in the notes
to the consolidated financial statements.
In doing so, we challenged the input data and assump-
tions relating to the underlying cash flows of the impair-
ment test. In addition, we compared the results of the cur-
rent year with the forecasts made in the previous year in
order to assess the appropriateness of the previous year’s
assumptions.
With regard to the discount rate used, we analyzed to-
gether with our own valuation specialists how it was de-
rived and compared it with our own calculation.
We examined whether the information on impairment test-
ing in the notes to the consolidated financial statements
was disclosed correctly and whether the sensitivity anal-
yses presented indicate appropriately the risks of impair-
ment.
We consider the valuation method and the assumptions
used by management to test for the impairment of the Fast-
web goodwill to be appropriate.
Swisscom Ltd | Report of the statutory auditor to the General Meeting
Revenue recognition – Solutions business with Business Customers
Key audit matter
How our audit addressed the key audit matter
For the 2022 financial year, Swisscom reports net revenue
of CHF 11,112 million (2022: CHF 11,183 million). Of this
amount, CHF 1,181 million (2021: CHF 1,111 million) is
generated by the Solutions business with Business Cus-
tomers. The Solutions business with Business Customers
comprises integrated communications solutions (e.g. IT
outsourcing) for large enterprises in Switzerland.
We consider revenue recognition in the Solutions business
with Business Customers to be a key audit matter for the
following reasons:
• The specific projects within the Solutions business are
based on complex individual contracts that may include
multiple performance obligations. The accounting treatment
of these contracts requires management to estimate the
expected transaction price and the timing of revenue
recognition of the individual performance obligations.
• The projects typically last between three and seven
years. To ensure a loss-free valuation of ongoing projects,
management has significant scope for judgement in its as-
sessment of the future costs of each project.
Please refer to note 1.1 ‘Segment information’ (page 112)
in the notes to the consolidated financial statements.
During our audit, we assessed the design and effective-
ness of the controls implemented to ensure the correct
recognition of revenue in the Solutions business with Busi-
ness Customers and evaluated whether management’s es-
timates are reasonable.
We performed analytical audit procedures. On the basis of
internal and external reports, we defined our expectations
and critically assessed deviations from them.
For a sample of contracts entered into in the 2022 finan-
cial year, we assessed the accounting treatment applied by
Swisscom. In doing so, we assessed whether manage-
ment’s estimate of the expected transaction price and of
the timing of revenue recognition relating to individual per-
formance obligations is appropriate.
To address the significant scope for judgement when as-
sessing future costs to ensure a loss-free valuation, we
performed the following audit procedures:
•
We gained an understanding of the process imple-
mented by management to assess future developments in
the Solutions business and critically assessed that process.
We discussed with Swisscom their expectations re-
•
garding the future development of individual projects and
critically assessed those expectations on the basis of cur-
rent developments.
Using a sample of projects, we compared
•
Swisscom’s forecasts from the previous year with actual
developments in the current financial year and analysed
any variances.
Finally, on the basis of a sample, we assessed whether the
revenue in the Solutions business with Business Custom-
ers was recorded correctly. To do so, we checked cash re-
ceipts for individual revenue transactions and obtained ex-
ternal balance confirmations from Swisscom customers.
We consider management’s estimates relating to the
recognition of revenue in the Solutions business with Busi-
ness Customers to be appropriate.
Swisscom Ltd | Report of the statutory auditor to the General Meeting
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Recoverability of technical installations and intangible assets
Key audit matter
How our audit addressed the key audit matter
We consider the impairment testing of technical facilities
and intangible assets to be a key audit matter for the fol-
lowing reasons:
We assessed the design and effectiveness of the controls
implemented to ensure the correct impairment testing of
technical installations and intangible assets.
Swisscom recognises as of 31 December 2022 technical
installations with a net book value of CHF 8,399 million
(2021: CHF 8,491 million) and intangible as-sets with a net
book value of CHF 1,741 million (2021: CHF 1,714 million).
Both represent significant amounts.
We also discussed with management the estimates of the
future useful lives of existing technologies and critically as-
sessed these on the basis of current developments at
Swisscom and other telecommunications companies.
Management has significant scope for judgement when as-
sessing and determining the useful life of technologies that
are in use.
Please refer to note 3.2 ‘Property, plant and equipment’
(page 140) and note 3.3 ‘Intangible assets’ (page 142) in
the notes to the consolidated financial statements.
In addition, we assessed the completeness and appropri-
ateness of changes in useful lives and actual impairments
in the 2022 financial year.
We consider management's assessment of the expected
period over which Swisscom derives economic benefits
from the use of existing technologies to be appropriate.
Swisscom Ltd | Report of the statutory auditor to the General Meeting
Assessment of litigation arising from regulatory and competition law proceedings
Key audit matter
How our audit addressed the key audit matter
Swisscom recorded as at 31 December 2022 provisions
amounting to CHF 1,159 million (2021: CHF 1,149 million).
Of this amount, CHF 283 million (2021: CHF 176 million)
relates to provisions for litigation arising from regulatory
and competition law proceedings.
To address the significant scope for judgement in estimat-
ing the probability, the timing and the amount of a potential
cash outflow due to litigation, we performed together with
an internal legal expert the following audit procedures:
Swisscom provides regulated access services to other tele-
communications service providers in accordance with the
Telecommunications Act. The prices charged by Swisscom
are subject to reviews by the Federal Communications
Commission (ComCom). If the Commission issues a ruling
against Swisscom, the prices charged must be reduced
with retroactive effect.
Swisscom is also a party to proceedings conducted by the
Federal Competition Commission (COMCO). In the event
of a final verdict establishing market abuse by Swisscom,
COMCO may impose sanctions. A final verdict establishing
market abuse issued by COMCO could lead to civil claims
against Swisscom.
We consider the assessment of the financial implications of
litigation arising from regulatory and competition law pro-
ceedings to be a key audit matter because management
has significant scope for judgement in estimating the prob-
ability, the timing and the amount of a potential cash out-
flow due to litigation.
Please refer to note 3.5 ‘Provisions, contingent liabilities
and contingent assets’ (page 145) in the notes to the con-
solidated financial statements.
We discussed pending litigation with management
•
and Swisscom’s internal and external legal counsel.
We obtained written statements from Swisscom’s
•
external and internal legal counsel.
•
We gained an understanding of the process and
controls implemented by management to identify, assess
and recognise pending litigation, and critically assessed it.
To assess the amount of the provisions established, we
considered whether the underlying data were adequately
factored into the calculation of the provisions.
Finally, we assessed the recognition and disclosure in the
consolidated financial statements of litigation arising from
regulatory and competition law proceedings.
We consider management’s approach to the treatment in
the consolidated financial statements of litigation arising
from regulatory and competition law proceedings to be ap-
propriate.
Other information
The Board of Directors is responsible for the other information. The other information comprises all information included
in the annual report, but does not include the financial statements, the consolidated financial statements, the remunera-
tion report and our auditor’s reports thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial state-
ments or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we
are required to report that fact. We have nothing to report in this regard.
Swisscom Ltd | Report of the statutory auditor to the General Meeting
171
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Board of Directors' responsibilities for the consolidated financial statements
The Board of Directors is responsible for the preparation of the consolidated financial statements that give a true and fair
view in accordance with IFRS and the provisions of Swiss law, and for such internal control as the Board of Directors
determines is necessary to enable the preparation of consolidated financial statements that are free from material mis-
statement, whether due to fraud or error.
In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the Group's ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease operations, or has no
realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
Swiss law, ISAs and SA-CH will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influ-
ence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with Swiss law, ISAs and SA-CH, we exercise professional judgment and maintain pro-
fessional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrep-
resentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropri-
ate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal
control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and re-
lated disclosures made.
Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty ex-
ists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evi-
dence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to
cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclo-
sures, and whether the consolidated financial statements represent the underlying transactions and events in a man-
ner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the Board of Directors or its relevant committee regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that
we identify during our audit.
We also provide the Board of Directors or its relevant committee with a statement that we have complied with relevant
ethical requirements regarding independence, and communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safe-
guards applied.
Swisscom Ltd | Report of the statutory auditor to the General Meeting
From the matters communicated with the Board of Directors or its relevant committee, we determine those matters that
were of most significance in the audit of the consolidated financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in
our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on other legal and regulatory requirements
In accordance with article 728a paragraph 1 item 3 CO and PS-CH 890, we confirm that an internal control system exists
which has been designed for the preparation of consolidated financial statements according to the instructions of the
Board of Directors.
We recommend that the consolidated financial statements submitted to you be approved.
PricewaterhouseCoopers AG
Peter Kartscher
Audit expert
Auditor in charge
Zürich, 8 February 2023
Petra Schwick
Audit expert
Swisscom Ltd | Report of the statutory auditor to the General Meeting
173
Further Information
Further Information
Further Information ___________ Financial statements of Swisscom Ltd
General disclosures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
Income statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
Balance sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
Further disclosures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
Proposed appropriation of retained earnings . . . . . . . . 177
Glossary
Technical terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178
Other terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180
Five-year review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181
175
Financial statements
of Swisscom Ltd
General disclosures
This is a condensed version of the financial statements of Swisscom Ltd. The full version and the auditors’ report
can be viewed on the Swisscom website.
N See www.swisscom.ch/financialstatements2022
Swisscom Ltd is a holding company under Swiss law. As at 31 December 2022, the Swiss Confederation, as majority
shareholder, continued to hold 51.0% of the issued shares of Swisscom Ltd as in the prior year. The Telecommuni-
cations Enterprise Act (TEA) provides that the Swiss Confederation shall hold the majority of the share capital
and voting rights of Swisscom Ltd.
The financial statements of Swisscom Ltd have been prepared in accordance with statutory requirements and the
Articles of Incorporation. Distributable reserves are not determined on the basis of the equity as reported in the con-
solidated financial statements, but rather on the basis of equity as reported in the separate financial statements of
Swisscom Ltd. The equity totalled CHF 7,908 million in the 2022 annual financial statements of Swisscom Ltd.
Under Swiss company law, share capital and that part of the general reserves representing 20% of the share capital
may not be distributed. On 31 December 2022, Swisscom Ltd held distributable reserves of CHF 7,846 million. The
dividend is proposed by the Board of Directors and must be approved by Swisscom Ltd’s Annual General Meeting
of Shareholders on 28 March 2023. Treasury shares are not entitled to a dividend.
Income statement
In CHF million
Net revenue from the sale of goods and services
Other income
Total operating income
Personnel expense
Other operating expense
Total operating expenses
Operating income
Financial expense
Financial income
Income from participations
Income before taxes
Income tax expense
Net income
2022
–
5
5
(10)
(5)
(15)
(10)
(1)
37
4,281
4,307
(12)
4,295
2021
19
16
35
(33)
(12)
(45)
(10)
(37)
73
163
189
(4)
185
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176
Balance sheet
In CHF million
Assets
Cash and cash equivalents
Financial assets
Participations
Accrued dividends receivable from subsidiaries
Other assets
Total assets
Liabilities and equity
Interest-bearing liabilities
Other liabilities
Total liabilities
Share capital
Legal capital reserves/capital surplus reserves
Voluntary retained earnings
Total equity
Total liabilities and equity
Further disclosures
31 .12 .2022
31 .12 .2021
55
3,092
8,356
3,700
29
337
4,217
8,222
–
56
15,232
12,832
7,190
134
7,324
52
21
7,835
7,908
15,232
7,944
135
8,079
52
21
4,680
4,753
12,832
Information on the participation rights held by the members of the Board of Directors and the Group Executive
Board is disclosed in the Remuneration Report (sections 2.5 and 3.5).
As at 31 December 2022, guarantee obligations existed for Group companies in favour of third parties totalling
CHF 340 million (prior year: CHF 269 million), and financial assets totalling CHF 153 million (prior year: CHF 155 mil-
lion) were not freely available. These assets serve to secure commitments arising from bank loans.
Proposed appropriation of retained earnings
The Board of Directors proposes to the Annual General Meeting of Shareholders to be held on 28 March 2023 that
the available retained earnings of CHF 7,835 million for the financial year ending on 31 December 2022 be appro-
priated as follows:
In CHF million
Appropriation of retained earnings
Retained earnings from previous year
Ordinary dividend
Balance carried forward from prior year
Net income for the year
Retained earnings available to the Annual General Meeting
Ordinary dividend of CHF 22 .00 per share
Balance to be carried forward
If the proposal is approved, a dividend of CHF 22 per share will be paid to shareholders on 4 April 2023.
31 .12 .2022
4,680
(1,140)
3,540
4,295
7,835
(1,140)
6,695
177
Glossary
Technical terms
3G: 3G is the third generation of mobile technology with
a transfer rate of up to 42 Mbps. Swisscom intends to
decommission 3G by the end of 2025 and use the
freed-up resources for more efficient and modern tech-
nologies.
4G: 4G is the fourth generation of mobile technology. It
enables theoretical broadband data speeds of up to
700 Mbps via the mobile network. To do so, it bundles 4G
frequencies to achieve the required capacity.
5G: 5G is the latest generation in mobile network tech-
nology. Compared to 3G and 4G, it provides even more
capacity, very short response times, and higher band-
widths. 5G plays a major role in supporting the digitisa-
tion of the Swiss economy and industry. It is used in two
variants: 5G (also known as 5G-wide) and 5G+ (also
known as 5G-fast). Both variants are more efficient than
their predecessor technologies with respect to energy
consumption and use of electromagnetic fields.
All IP: All IP means that all services such as television, the
Internet and fixed-line telephone run over the same
IT network. Swisscom has switched all existing commu-
nication networks to Internet Protocol (IP). This means
IP services within Switzerland operate on
that
Swisscom’s own network. This results in a high degree of
security and availability compared with other voice ser-
vices on the World Wide Web.
Bandwidth: Bandwidth refers to the transmission capac-
ity of a medium, also known as the data transmission
rate. The higher the bandwidth, the more information
units (bits) can be transmitted per unit of time (second).
It is defined in bps, kbps or Mbps.
Cloud: Cloud computing makes it possible for IT infra-
structures such as computing capacity, data storage,
ready-to-use software and platforms to be accessed
dynamically via the Internet as needed. The data cen-
tres, along with the resources and databases, are distrib-
uted via the cloud. The term ‘cloud’ refers to such hard-
ware which is not precisely locatable.
Connectivity: Connectivity is the generic term used in IP
services to denote the connection to the Internet and
the ability to exchange data with any partner on the net-
work.
Convergence (bonding technology): In the telecommu-
nications sector, the term convergence usually denotes
an interplay of mobile and fixed-network technologies
or products that include both mobile and fixed-network
services.
FTTH (Fibre to the Home): FTTH refers to the end-to-end
connection of homes and businesses using fibre-optic
cables instead of traditional copper cables.
FTTH topologies (P2P and P2MP): Two different topo-
logies (network structures) are possible when expand-
(P2P) or
ing fibre-optic networks: point-to-point
point-to-multipoint (P2MP). With P2P, a separate optical
fibre is laid between each apartment and the nearest
node (usually a local exchange): if ten apartments are
connected in a neighbourhood, ten optical fibres are
available at the node. By contrast, with P2MP there is
only a single optical fibre running from the node to the
vicinity of the apartments. A ‘splitter’ subsequently
breaks up the light signal and distributes it to several
optical fibres, which then lead to the apartments.
FTTS (Fibre to the Street)/FTTB (Fibre to the Building)/
FTTC (Fibre to the Curb): FTTS, FTTB and FTTC refer to
hybrid broadband connection technologies (optical fibre
and copper). With these technologies, optical fibre is
brought as near as possible to buildings and in the case
of FTTB right to the building’s basement; the existing
copper cables are used for the remaining stretch.
FWA (Fixed Wireless Access): FWA is a broadband tech-
nology based on 5G. With FWA, data is received via the
mobile network, which means that no fixed-line connec-
tions are required. The user only needs a receiving
device, a mobile router and a WLAN access point.
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Hyperscaler: A hyperscaler provides IT resources based
on cloud computing. Cloud computing resources can be
scaled largely horizontally, often with thousands of
servers and storage systems
interconnected via
high-performance networks. Currently, the most signifi-
cant hyperscalers include Amazon Web Services (AWS),
Microsoft Azure, Google Cloud Platform (GCP) and IBM.
ICT (Information and Communication Technology): A
term coined in the 1980s, bringing together the terms to
denote the convergence of information technology
(information and data processing and the related hard-
ware) and communication technology (technically-sup-
ported communications).
IoT (Internet of Things): The IoT connects things, devices
and machines to enable recording of status and environ-
mental data. These data provide the basis for optimising
processes, such as early identification of failing machine
components. IoT facilitates new business models based
on these data or opens up new opportunities for inter-
acting with customers.
LAN (Local Area Network): A LAN is a local network for
interconnecting computers, usually based on Ethernet.
MVNO (Mobile Virtual Network Operator): MVNO
denotes a business model for mobile communications.
In this case, the corresponding provider (the MVNO) has
either a limited network infrastructure or no network
infrastructure at all. It therefore uses the infrastructure
of other mobile communications providers.
Network convergence: Network convergence refers to
the dissolution and reconstitution of previously sepa-
rate networks into one large convergent network, such
as in the case of the fixed and mobile networks of
Swisscom.
Optical fibre: Optical fibre is a transport medium for
optical data transmission – in contrast to copper cables,
which transmit data through electrical signals.
OTT (Over the Top): OTT refers to content distributed by
service providers over an existing network infrastructure
that they do not themselves operate. OTT companies
offer proprietary services on the basis of the infrastruc-
tures of other companies in order to reach a broad range
of users quickly and cost-efficiently.
Petabyte: The petabyte is the unit of measurement for a
given amount of data. 1 petabyte is equivalent to
approximately 1,000 terabytes, 1,000,000 gigabytes or
1,000,000,000 megabytes.
Roaming: Roaming is when a mobile user makes calls,
uses other mobile services or participates in data traffic
outside his or her home network, i.e. usually abroad. This
requires that the mobile device in question is compati-
ble with the roaming network.
Router: A router is a device for connecting or separating
several computer networks. The router analyses incom-
ing data packets according to their destination address
and either blocks them or forwards them accordingly
(routing). Routers come in different types, ranging from
large machines in a network to the small devices used by
residential customers.
Streaming: Streaming is the transmission of audio and
video signals over a network or the Internet without the
data having to be stored on a local device.
Terabyte: The terabyte is the unit of measurement for a
given amount of data. 1 terabyte is equivalent to approx-
imately 1,000 gigabytes or 1,000,000 megabytes.
Ultra-fast broadband: Ultra-fast broadband denotes
broadband speeds of more than 50 Mbps – on both the
fixed-line and mobile networks.
179
Other terms
ComCom (Federal Communications Commission): Com-
Com is the decision-making authority for telecommuni-
cations. Its primary responsibilities include issuing con-
cessions for use of the radio frequency spectrum as well
as basic service licences. It also provides access (unbun-
dling, interconnection, leased lines, etc.), approves
national numbering plans and regulates the conditions
governing number portability and freedom of choice of
service provider.
Competition Commission (COMCO): COMCO applies the
Federal Act on Cartels and other Restraints of Competi-
tion (CartA). The aim of the CartA is to protect against
the harmful economic or social impact of cartels and
other constraints on competition and by so doing foster
competition. COMCO combats harmful cartels and mon-
itors market-dominant companies for signs of anti-com-
petitive conduct. It is also responsible for examining
mergers and issuing statements on official decrees that
affect competition.
Federal Office of Communications (OFCOM): OFCOM
deals with issues related to telecommunications and
broadcasting (radio and television) and performs official
and regulatory tasks in these areas. It prepares the deci-
sions of the Swiss Federal Council, the Federal Depart-
ment of the Environment, Transport, Energy and Com-
munications (DETEC) and the Federal Communications
Commission (ComCom).
FTEs: FTEs are understood to be full-time equivalents
throughout this report.
Interconnection: Interconnection means linking up the
systems and services of two TSPs so as to enable the logi-
cal interaction of the connected telecommunications
components and services and to provide access to third-
party services. Interconnection allows the customer of
one provider to communicate with the subscribers of
another provider. Under the terms of the Federal Tele-
communications Act, market-dominant telecommunica-
tions service providers are required to allow their compet-
itors interconnection at cost-based prices.
Unbundling: Unbundling of the last mile enables fixed-
line-network competitors without their own access
infrastructure to access customers directly at non-dis-
criminatory conditions based on original cost. The pre-
requisite for unbundling is the presence of a mar-
ket-dominant provider. There are two forms of
unbundling: unbundling at the level of the telephone
exchange (Unbundling of the Local Loop (ULL) or Local
Loop Unbundling (LLU), known as TAL in Switzerland)
with currently around 600 unbundled locations; and
unbundling at distribution box level (sub-loop unbundling,
known as T-TAL in Switzerland), in which no competitor
has yet shown any interest.
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Five-year review
In CHF million, except where indicated
2018
2019
1
2020
2021
2022
Net revenue and results
Net revenue
11,714
11,453
11,100
11,183
11,112
Operating income before depreciation and amortisation (EBITDA)
4,213
4,358
4,382
4,478
EBITDA as % of net revenue
Operating income (EBIT)
Net income
Earnings per share
Balance sheet and cash flows
Equity
Equity ratio
Cash flow from operating activities
Capital expenditure
Free cash flow
Net debt
Employees
36 .0
2,069
1,521
29 .48
38 .1
1,910
1,669
32 .28
39 .5
1,947
1,528
29 .54
40 .0
2,066
1,833
35 .37
4,406
39 .7
2,040
1,603
30 .93
8,208
8,875
9,491
10,813
11,171
36 .3
3,720
2,404
1,319
8,631
36 .6
4,019
2,438
1,345
8,785
39 .1
4,169
2,229
1,706
8,206
43 .6
4,044
2,286
1,513
7,706
45 .4
3,876
2,309
1,349
7,374
Full-time equivalent employees
19,845
19,317
19,062
18,905
19,157
Average number of full-time equivalent employees
20,083
19,561
19,095
19,099
19,046
Operational data
Fixed telephony access lines in Switzerland
Broadband access lines retail in Switzerland
Mobile access lines in Switzerland
TV access lines in Switzerland
Access lines wholesale Switzerland
Broadband access lines in Italy
Mobile access lines in Italy
Swisscom share
Number of issued shares
Market capitalisation
Closing price at end of period
Closing price highest
Closing price lowest
Ordinary dividend per share
Ratio payout/earnings per share
Information Switzerland
Net revenue
Operating income before depreciation and amortisation (EBITDA)
Capital expenditure
Full-time equivalent employees
1,788
2,033
6,370
1,519
568
2,547
1,432
1,594
2,058
6,333
1,555
585
2,637
1,746
1,523
2,043
6,224
1,588
611
2,747
1,961
1,424
2,037
6,177
1,592
698
2,750
2,472
1,322
2,027
6,173
1,571
679
2,683
3,087
51 .802
51 .802
51 .802
51 .802
51 .802
24,331
26,554
24,715
26,657
26,243
469 .70
512 .60
477 .10
514 .60
506 .60
530 .60
523 .40
577 .80
562 .40
590 .40
427 .00
441 .10
446 .70
456 .30
443 .40
22 .00
74 .63
22 .00
68 .16
22 .00
74 .48
22 .00
62 .20
22 .00
2
71 .13
9,274
3,419
1,645
8,969
3,508
1,770
8,614
3,522
1,596
8,579
3,569
1,634
8,627
3,534
1,688
17,147
16,628
16,048
15,882
15,750
1 Swisscom has been applying IFRS 16 ‘Leases’ since 1 January 2019.
2 In accordance with the proposal of the Board of Directors to the Annual
The prior year’s figures have not been adjusted.
General Meeting.
181
Forward-looking statements
This Annual Report contains forward-looking statements. In this Annual Report, such forward-looking
statements include, without limitation, statements relating to our financial condition, results of operations and
business and certain of our strategic plans and objectives.
Because these forward-looking statements are subject to risks and uncertainties, actual future results may
differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties
relate to factors which are beyond Swisscom’s ability to control or estimate precisely, such as future market
conditions, currency fluctuations, the behaviour of other market participants, the actions of governmental
regulators and other risk factors detailed in Swisscom’s and Fastweb’s past and future filings and reports, including
those filed with the U.S. Securities and Exchange Commission and in past and future filings, press releases,
reports and other information posted on Swisscom Group Companies’ websites.
Readers are cautioned not to put undue reliance on forward-looking statements, which speak only of the date
of this communication.
Swisscom disclaims any intention or obligation to update and revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
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Publishing details
Key dates
● 9 February 2023
Publication of 2022 Annual Results and
Annual Report
● 28 March 2023
Annual General Meeting
● 30 March 2023
Ex dividend date
● 3 April 2023
Dividend payment
● 4 May 2023
2023 First-Quarter Results
● 3 August 2023
2023 Second-Quarter Results
● 2 November 2023
2023 Third-Quarter Results
● 8 February 2024
Publication of 2023 Annual Results and
Annual Report
Published and produced by
Swisscom Ltd, Berne
Translation
Lionbridge Switzerland Ltd, Basel
Production
MDD Management Digital Data AG, Zurich
Printing
Ast & Fischer AG, Berne
Photography
Manuel Rickenbacher, Zurich
Johannes Diboky, Zurich
Alida Ruf (apprentice Swisscom)
Printed on chlorine-free bleached paper
© Swisscom Ltd, Berne
The Annual Report is published in
English, French and German.
Online versions of the Annual Report
German:
English:
French:
www.swisscom.ch/bericht2022
www.swisscom.ch/report2022
www.swisscom.ch/rapport2022
A condensed version of the
2022 Annual Report is also available
in English, French, German and Italian
at www.swisscom.ch/ataglance2022.
The Sustainability Report 2022
is published online at
www.swisscom.ch/cr-report2022.
General information
Swisscom Ltd
Head Office
3050 Berne
Tel.:
+ 41 58 221 99 11
Financial information
Swisscom Ltd
Investor Relations
3050 Berne
Tel.:
E-mail:
Website: www.swisscom.ch/investor
+ 41 58 221 99 11
investor.relations@swisscom.com
Social and environmental information
Swisscom Ltd
Group Communications & Responsibility
3050 Berne
E-mail:
Website: www.swisscom.ch/responsibility
corporate.responsibility@swisscom.com
For the latest information,
visit our website
www.swisscom.ch
swisscom.ch/report2022