Swisscom AG Annual Report 2023

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FY2023 Annual Report · Swisscom AG

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Annual Report

2023

Annual reporting

Annual Report

2023

Sustainability
Impact Report

2023

in accordance with GRI, SASB and
ISO 14064

The Annual Report and the Sustainability Impact Report make up Swisscom’s reporting on 2023.
The two publications are available online at: swisscom.ch/report2023.

Adjustments in 2023
The Swisscom Annual Report now includes the report on non-financial matters. This is Swisscom’s way of
meeting the new requirements set out in the Swiss Code of Obligations, which establishes this sort of reporting
as a mandatory requirement from 2023 onwards. The Sustainability Impact Report includes Swisscom’s
sus tainability reporting in Switzerland and now also the climate report, which used to be published separately.

The majority of the images on the cover pages and in the reports are taken from the various Swisscom
campaigns conducted during the 2023 reporting year. The pictures of the Board of Directors and the Group
Executive Board were taken by Manuel Rickenbacher.

Table of contents

Introduction

Management Commentary

Report on Non-financial Matters

1 – 11

12 – 57

58 – 81

Corporate Governance and Remuneration Report

82 – 127

Consolidated Financial Statements

Further Information

128 – 197

198 – 208

2023 in review

Revenue

billion CHF

EBITDA

billion CHF

11.1

p 0.2%

4.6

4.9%p

Net income

billion CHF

Net debt to EBITDA ratio

1.7

6.7%p

1.5

– 0.2q

Total shareholder return
Swisscom share

Capital expenditure

billion CHF

4.2

1.7 PP

2.3

– 0.7%

Dividend per share

CHF

Equity ratio

47.0

1.6 PP

Employees (full-time equivalent)

19,729

3.0%p

‘My first
mobile phone’

Swisscom launches the
‘My first mobile phone’ guide for parents,
which features tips, checklists and
an online parents’ evening
with almost 40,000 viewers.

Viva Italia!

Fastweb has grown continuously
for over 10 years, increasing its customers,
revenue and EBITDA.

Net zero
2035

As a Group, Swisscom has committed itself to an ambitious
net zero target for 2035 in accordance with SBTi.

The best
network

Swisscom is at the top tier
of the podium in all
mobile network tests and impresses
with the best broadband network.

Friendly
Work Space

Swisscom is awarded the
‘Friendly Work Space’ label
by Health Promotion Switzerland.

Viva Italia!

Fastweb has grown continuously

for over 10 years, increasing its customers,

revenue and EBITDA.

Small but mighty

Half the size, more energy-efficient and largely
made of recycled plastic: The possibilities of the
new Swisscom TV-Box – with additional streaming
partners and subscriber packages – are huge.

Customer
focus

Thanks to efficient cost management, Swisscom
is keeping the prices of blue subscriptions stable.

Acclaimed

World Finance magazine rates
Swisscom the world’s most sustainable
telecoms company
for the third time in a row.

Top
service

Whether it’s in the shop or in the
My Swisscom app, Swisscom’s
service scores points with its
customers and wins service tests.

KPIs

In CHF million, except where indicated

Revenue and results 1

Revenue

Operating income before depreciation and amortisation (EBITDA)

EBITDA as % of revenue

EBITDA after lease expense (EBITDAaL)

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

Dividend per share

Employees

Full-time equivalent employees

Average number of full-time equivalent employees

2023

2022

Change

11,072

11,051

4,622

41.7

4,334

2,205

1,711

33.03

4,406

39.9

4,120

2,040

1,603

30.93

11,622

11,171

47.0

2,292

2,042

1,480

7,071

1,226

2,006

1,537

6,202

692

2,601

648

3,509

51,802

26,212

506.00

22.00

19,729

19,461

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

22.00

19,157

19,046

CHF

in thousand

CHF

number

0.2%

4.9%

5.2%

8.1%

6.7%

6.8%

4.0%

–0.7%

12.8%

9.7%

–4.1%

–7.3%

–1.0%

–2.2%

0.5%

1.9%

–3.1%

41.5%

13.7%

–

–0.1%

–

3.0%

2.2%

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 broadcast
services (Swisscom Broadcast Ltd),
Swisscom is supplementing its core
business in related areas. Other
Operating Segments also include
the business with online directories
(localsearch), as well as the Trust
Services area, which encompasses
the business with trust services such
as the electronic signature and
digital certificates.

Swisscom
Switzerland

Fastweb

Fastweb provides broadband and
mobile phone services to residential,
business and wholesale customers
in Italy. The offering includes
telephony, broadband and mobile
offerings. 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 telecom-
munications services and overall
communications solutions for large
corporations 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 providers
to use the Swisscom fixed and
mobile network.

Infrastructure & Support Functions
The Infrastructure & Support
Functions area plans, operates
and maintains the network and
IT infrastructure in Switzerland.

Revenue

CHF 8.1 billion

EUR 2.6 billion

CHF 1.1 billion

EBITDA

CHF 3.7 billion

EUR 0.8 billion

CHF 0.2 billion

From left: Michael Rechsteiner, Chairman of the Board of Directors, Christoph Aeschlimann, CEO Swisscom Ltd.

Shareholders’ letter
Trustworthy –
sustainable

Dear Shareholders

We are pleased to inform you of Swisscom’s positive performance in
what was a challenging year. 2023 was marred by uncertainties, such as
the volatile macroeconomic environment with rising interest rates and
inflation, as well as mounting geopolitical risks. This makes our annual
figures all the more encouraging. Swisscom achieved a stable set of
financial results in a challenging market. It won over its customers with an
attractive offering, first-rate service and excellent network infrastructure.
World Finance magazine has rated Swisscom the world’s most sustainable
telecommunications service provider for the third time in a row.

The foundation for this success is our committed employees, who give their very best day in, day out.
We are on track to achieve our Group targets for 2025: market leader in Switzerland, leading challenger in
Italy, solid financial results, forward-looking services provided in secure networks, and all of this combined
with a strong focus on sustainability.

From left: Michael Rechsteiner, Chairman of the Board of Directors, Christoph Aeschlimann, CEO Swisscom Ltd.

Number 1 in Switzerland
In Switzerland, Swisscom seeks to inspire its customers with the best networks, first-rate service and the
most state-of-the-art products and services. This is something we have managed to achieve. Our
employees once again delivered convincing performance in Swisscom shops and on our mobile hotline in
independent tests. What’s more, the My Swisscom App received the best rating of all service apps offered
by Swiss telecommunications providers for the third time running. Swisscom is also once again on the top
tier of the podium in recognised network tests – for both mobile and fixed networks.

Swisscom also provides security. Despite ongoing inflation, and unlike our peers, we are not implementing
any general price increases and will maintain stable prices for mobile communications, internet, TV and
fixed network subscriptions until the end of 2024 at the earliest. Our new TV-Box 5 is impressive. It offers
attractive new features and is only half the size of, and more energy-efficient than, its predecessor models.
Swisscom is also the first provider in Switzerland to offer its customers a subscription package including
several streaming providers at a special price. Independent market researchers also name Swisscom as a
leading cybersecurity solutions provider. With its new IT security services, Swisscom is offering small and
medium-sized enterprises even greater security and reliable protection against cyber risks. The acquisition
of Axept Business Software Ltd allowed it to expand its expertise in the area of business software.
Swisscom is the first provider in Switzerland to combine the mobile network and Microsoft Teams in a
single app in the form of Teams Telephony Mobile. Swisscom has a strong position among its business
customers as a full-service provider, and customer satisfaction is high as a result. Consequently, demand
for cloud, security, IoT and SAP solutions, and business applications, continued to grow.

The best networks – the expansion work continues
Switzerland receives top marks internationally for its mobile communications and fibre-optic networks.
By way of example, it yet again won the renowned fixed and mobile network test organised by the industry
magazine connect. In the mobile phone test, Swisscom actually achieved the highest score ever awarded
by connect. As our customers are making increasingly intensive use of our networks, Swisscom is constantly
investing in their performance. Expanding the mobile network remains a challenge. The search for new
locations is no mean feat, and around 3,000 building applications for mobile communications systems are
pending nationwide. In the autumn of 2023, the national government sent out a crucial signal to improve
the overall conditions for a rapid 5G network expansion.

Swisscom is working on the expansion of its optical fibre-based infrastructure and is slightly raising
its targets: it is aiming to achieve fibre-optic coverage of 57% throughout Switzerland by the end of 2025,
and of 75% to 80% by the end of 2030. After 2030, Swisscom plans to complete the fibre-optic network in
every municipality. In parallel with the ongoing optical fibre expansion, it is now decommissioning the
copper access network wherever high-speed internet is already available.

contribution as a climate protection
pioneer. Our focus is on

‘ We are making a significant
reducing our CO2 emissions. ’

on the top tier of the podium
in network tests – for both

‘ Swisscom is also once again
mobile and fixed networks. ’

Fastweb is growing
Fastweb has been building its position as a high-quality provider in Italy for years now. It is now the
leading challenger in Europe’s fourth-largest broadband market. Fastweb reported growth in customers,
revenue and operating income (EBITDA) in 2023. Its revenue came to EUR 2,633 million (+6.1%), with
EBITDA up by 2.1% on a like-for-like basis.

Healthy finances create confidence
We handle the funds entrusted to us with respect and care. Healthy finances are the result of prudent
management and are essential for our continued success going forward.

Swisscom recorded another solid set of financial results in 2023. With slightly higher revenue of
CHF 11,072 million (+0.2%) and higher operating income before depreciation and amortisation (EBITDA)
of CHF 4,622 million (+4.9%), it generated net income of CHF 1,711 million (+6.7%). Revenue (+0.9%) and
EBITDA (+2.3%) were both up on a like-for-like basis and at constant exchange rates.

In order to secure our long-term profitability, we are promoting collaboration within our company,
developing new business activities and continuously working on our efficiency. For example, we once
again reduced our cost base in Swiss telecommunications in 2023 – by around CHF 60 million.

Responsibility for the environment and society
Swisscom has set itself ambitious goals for the environment and society. We promote media skills, both
for young people within schools and for the population at large. As a pioneer, we also make a key
contribution to climate protection, with an emphasis on reducing our CO2 emissions. We also invest in
carefully selected climate protection projects. World Finance magazine, for example, once again rated
Swisscom the world’s most sustainable telecommunications company in the reporting year. The topic of
sustainability has been included in the ‘Report on non-financial matters’ chapter for the very first time,
and both Swisscom (for Switzerland) and Fastweb publish a sustainability report.

Most trusted tech innovator
In the reporting year, we firmly established our vision for 2030 within the company: we are aiming to be
the most trusted tech innovator in Switzerland and create unique customer experiences. To safeguard our
long-term success, we work closely with the pacesetters of the digital transformation, be they universities,
start-ups or established technology companies. In 2023, Swisscom supported what are known as deeptech
start-ups through its StartUp Challenge programme: young companies that are developing solutions based
on highly developed technologies such as robotics, cleantech or fintech. The winners also get the chance to
partner with Swisscom. Swisscom has also launched the Swisscom Sign service, which allows contracts
to be signed digitally in a legally effective manner. The service is free of charge for private users and is
conveniently integrated into the My Swisscom App.

Shareholder return and outlook
Swisscom’s share price remained virtually stable during the year under review at CHF 506 (–0.1%). The
total shareholder return (TSR) based on the increase in the share price and distributions over the last five
years was positive at 33%.

Looking ahead to 2024, Swisscom expects revenue of around CHF 11.0 billion, EBITDA of between CHF 4.5
and 4.6 billion and capital expenditure of around CHF 2.3 billion (around CHF 1.7 billion of which will be
in Switzerland). Subject to achieving its targets, Swisscom plans to propose payment of an unchanged
dividend of CHF 22 per share for the 2024 financial year at the 2025 Annual General Meeting.

Many thanks
We would like to thank our employees for the passion they show in doing their best for our customers
every day. We would also like to thank you, our valued shareholders, for the trust you have placed in us.

We have set ourselves new, ambitious goals and look forward to embarking on a successful new year
with you. There is one thing we can assure you of: exactly 25 years after its IPO, Swisscom is in an excellent
market position and can face the future with confidence.

Kind regards

Michael Rechsteiner
Chairman of the Board of Directors
Swisscom Ltd

Christoph Aeschlimann
CEO of Swisscom Ltd

Strategy and environment _______ Financial targets and achievement

of targets in 2023. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Market environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

Legal environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

Market for telecommunications and IT. . . . . . . . . . . . . . . 17

Group goals and strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . .19

Infrastructure _________________ Infrastructure in Switzerland . . . . . . . . . . . . . . . . . . . . . . . .21
Infrastructure in Italy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24

Employees ___________________ Employees in Switzerland . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
Employees in Italy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28

Brands, products and services _____ Swisscom brands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29
Products and services in Switzerland . . . . . . . . . . . . . . . .30

Products and services in Italy . . . . . . . . . . . . . . . . . . . . . . . .33

Customer satisfaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34

Innovation and development _____ Innovation as a key driver of business performance . .35
Innovation focused on specific topics . . . . . . . . . . . . . . . .36

Financial review _______________ Alternative performance measures . . . . . . . . . . . . . . . . . .39
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41

Segment results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42

Depreciation and amortisation,
non-operating results . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46

Cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47

Capital expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48

Net asset position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49

Statement of added value . . . . . . . . . . . . . . . . . . . . . . . . . . .51

Financial outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52

Capital market ________________ Swisscom share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54
Dividend policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54

Credit ratings and financing . . . . . . . . . . . . . . . . . . . . . . . . .54

Value-oriented business management . . . . . . . . . . . . . . .55

Risks ________________________ Risk situation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56
Risk factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56

Strategy and
environment

Swiss business
Number 1

Swisscom is number 1 in the Swiss
telecoms market.

Revenue
CHF 11.1 billion

in revenue was generated by
Swisscom in 2023, 77% of which
in Switzerland and 23% in Italy.

Business in Italy
Leading
challenger

Fastweb is the leading challenger
in Italy.

Financial targets and achievement of targets in 2023

Financial targets

Revenue 1

Operating income before depreciation and amortisation (EBITDA)

Capital expenditure

Targets 2023

Achievement of
targets in 2023

around CHF 11.1 billion

CHF 11,072 million

CHF 4.6–4.7 billion

CHF 4,622 million

around CHF 2.3 billion

CHF 2,292 million

1 As already communicated during the course of 2023, the financial 2023 financial

targets have been adjusted as follows as a result of the strong Swiss franc

and lower hardware sales: revenue from CHF 11.1–11.2 billion to around
CHF 11.1 billion.

Market environment

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.

Unit

in %

in CHF

2 Forecast Istat.

2021

3.5

6.3

1.5

3.9

(0.13)

1.03

0.91

2022

2.0

3.9

2.8

11.6

1.57

0.99

0.92

2023

1.3

0.7

2.1

0.6

0.66

0.93

0.84

Economy
Economic development in Switzerland slowed in the
reporting year, and the outlook is characterised by
considerable uncertainty caused
in part by the
geopolitical situation and monetary policy aimed at
curbing inflation. The rate of inflation, as measured by
the national consumer price index, has dipped slightly
due to the appreciation of the Swiss franc.

Interest rates
The interest rate level has an impact on funding costs
and, in the context of the consolidated financial
statements, the balance sheet value of individual items
such as non-current provisions and pension liabilities,
as well as the impairment assessment of goodwill.
(excluding
Swisscom’s average
leasing) amounts to 1.1% at the end of 2023. Swisscom’s
financing structure offers considerable protection

interest expense

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against further interest rate increases thanks to a 82%
share of fixed-interest finan cial debt.

Exchange rates
Currency effects impact the consolidated financial
statements both through transactions made in foreign
currencies and the translation of the annual financial
statements of foreign subsidiaries. Transaction 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 corresponding
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
statements. Among the foreign subsidiaries, a currency
translation risk primarily exists at Fastweb, whose net
assets amounted to EUR 3.4 billion at the end of 2023.
Currency translation differences of the balance sheet are
recognised directly in equity. A portion of the financial
liabilities in EUR serves as a currency hedge of Fastweb’s
net assets for IFRS accounting purposes.

Legal environment

Swisscom’s legal framework
Swisscom is a public limited company with special status
under Swiss law. In addition to company law, corporate
governance is primarily governed by the Tele commu-
nications 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.

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 Confede r a-
tion 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 while also attaching special
importance to the reduction of greenhouse gas emis-
sions.
Y See www.swisscom.ch/ziele_2022-2025

Telecommunications Act (TCA)
The Telecommunications Act and the associated
ordinances primarily
access,
international roaming, the open internet, basic service
provision, the use of radio frequencies, and the security
of installations and operations.
Y See www.admin.ch

regulate network

Network access
Cost-based and non-discriminatory network access
regulation is limited to fixed network 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
Basic service provision means ensuring that fixed network
telephony and broadband internet are available through-
out Switzerland. The minimum data transfer rates for
broad band internet access are 10 Mbit/s for downloads
and 1 Mbit/s for uploads. From 2024 onwards, basic
service provision will include a new data transfer rate of
80 Mbit/s for downloads. Swisscom has been responsible
for basic service provision for many years. In the reporting
year, the Federal Communications Commission (ComCom)
once again awarded Swisscom the universal service licence
for the period from 2024 to 2031. Swisscom is committed
to ensuring reliable basic service provision within
Switzerland and has done so since 1999 without receiving
any compensation from the public sector.

Swisscom pursues an open
internet policy.

Open internet
Swisscom pursues an open internet policy. It is convinced
of its customers’ desire to freely choose content 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

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offers that exclude access to selected web services from
the data volume.

Non-ionising radiation (NIR)
The Ordinance on Non-Ionising Radiation
(ONIR)
regulates exposure and thus the transmission power of
mobile antennas. Swiss precautionary values as defined
by the Environmental Protection Act (installation limit
value) are much stricter than the exposure limit values
recommended 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. In September 2023,
Parliament submitted a motion to the Federal Council
calling for the rapid expansion of the 5G network within
the existing limits. Implementation of this motion
would allow outdated regulations for calculating
transmission power to be adapted to reflect develop-
ments and findings over the last 20 years and building
permit procedures to be simplified. Around 3,000
applications for building permits for mobile commu-
nications systems are currently still pending with the
relevant authorities.

Federal Cartel Act (CartA)
Competition law (Federal Cartel Act) is highly relevant,
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 compliance measures and corresponding
processes to prevent violations of the law. With regard
to its compliance-related 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 context 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 consolidated financial statements.
H See report pages 169–170

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 consid-
eration. 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 copyright tariffs. These apply to the distrib-
ution of television programmes and to the use of time-
delayed television viewing (Replay TV).

Federal Radio and Television Act (FRTA)
Switzerland’s Radio and Television Act governs the
production, 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 offerings.
The various privileges (known as the ‘must carry’ provi-
sions) applicable to certain broadcasters are relevant to
Swisscom.

Federal Act on Data Protection (FADP)
The Swiss Federal Act on Data Protection regulates the
treatment of personal data. A revised version of the Act
came into force on 1 September 2023. As part of a
project, Swisscom has intensively analysed the new pro-
vi sions and taken the necessary measures to comply
with the revised Federal Act on Data Protection.

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 resi-
dential customers in the EU as well as within the Euro-
pean Economic Area (EEA) and its provision of IT services
to business customers directly subject to the GDPR. To
the extent that the GDPR affects Swisscom’s activities,
Swisscom has implemented measures to comply with
the relevant requirements.

Legal and regulatory environment in Italy
Fastweb’s business activities are governed by Italian and
EU telecommunications legislation. The Italian regula-
tory authority AGCOM generally sets the prices for
Telecom Italia’s (TIM) wholesale access on the basis of a
market analysis. A new market analysis was planned for
2022. Due to the uncertainty surrounding the project on
the merger of the TIM/FiberCop and Open Fiber fixed
networks (‘rete unica’), AGCOM set the prices for 2022
and 2023 without carrying out a market analysis. The
prices for the period from 2024 to 2028 are set to be
published in the first quarter of 2024.

The new EU Foreign Subsidies Regulation (FSR) entered
into force at the beginning of 2023. The FSR may have an
impact on Swiss companies that generate revenue in the
EU, carry out M&A transactions or participate in public

tenders. The FSR introduces new reporting obligations and
grants the European Commission investigative powers
with regard to subsidies granted by non-EU countries.

Market for telecommunications and IT

Swiss market trends
The Swiss telecoms market is characterised by a wide
range of products and services for data and voice
communications.
In addition to the established
regional and national telecoms companies, inter-
nationally active companies are also participating in
the Swiss telecoms market. These companies provide
internet-based free and paid services worldwide,
includ ing telephony, messaging, TV and streaming.

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 a modern, highly effective
foundation.
network
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
mobile and fixed networks were once again the winners
in independent network tests.

infrastructure providing the

The Swiss telecoms market is broken down into the
mobile communications and fixed network submarkets.
It generates total revenue estimated at CHF 11 billion.

Competition on this market remains intense. Saturation
in all markets is intensifying the cut-throat competition.
The individual submarkets are characterised by a high
level of promotional activity on the part of the individual
market participants. 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 network
telephony. Swisscom – as well as some competitors –
offers products and services from the core business
using secondary and third-party brands.

Mobile communications market
Switzerland has three separate, wide-area mobile
networks 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 proprietary products and services to their
customers via the Swisscom network. The number of
mobile lines (SIM cards) in Switzerland has increased by
around 2% within the year and stands at around
12 million. Mobile access line penetration is estimated
at around 130%. As in the previous year, the number of
postpaid subscriptions increased, while the number of
prepaid customers fell. The proportion of mobile users
with postpaid subscriptions stands at 85% (prior year:
83%). Swisscom’s postpaid market share is 53%. This
represents a decrease of two percentage points
compared to the previous year, which is due to the
continuing competitive pressure.

Market share Swisscom
Swiss telecommunications market

55%

53%

50% 49%

39%

38%

2022

2023

2022

2023

2022

2023

Mobile

Broadband retail

Fixed-line market
Close to 100% of Switzerland is covered by fixed
broadband networks. In addition to the fixed networks
of telecoms companies, there are also networks provided
by cable network operators. Moreover, market players
such as utilities operating in particular cities and
municipalities 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 market participants for product offerings and
the provision of services. Broadband connections lay the
basis for a comprehensive product offering from both
national and global competitors. The broadband market
grew by around 1% year over year. There were around
4 million retail broadband access lines in Switzerland at
the end of 2023. Swisscom’s market share decreased by
one percentage point to 49% due to the ongoing intense
competition.

In Switzerland, TV signals are transmitted via cable,
broadband, satellite and mobile. The Swiss TV market is
characterised by a diverse range of offerings provided by
established national market participants. Offerings from
other national and international companies are also
available, including TV and streaming services that can
be used over an existing broadband or mobile connec-
tion, regardless of the internet provider. Competitive
dynamics remain high, driven by the large number of dif-
fer ent offerings.

IT services market in Switzerland
In 2023, the IT services market (IT services and software)
generated revenue of just under CHF 21 billion. This
represented a continuation of the market’s prior-year
growth trend, albeit on a less steep trajectory. For the
coming years, Swisscom assumes that the market will
continue to exhibit moderate growth due to increasing
digitalisation. The areas in which Swisscom expects the
most growth are the cloud, security, the Internet of
Things (IoT) and business applications, while business
with legacy systems is set to decline. This growth is a
result of the increasing number of business-driven ICT
projects as well as the demand for digital business
models and new working models. Swisscom has noticed
companies’ growing willingness to procure external
services in order to cope with a high level of complexity
as well as the transformation into a hybrid cloud in an
environment characterised by limited availability of
qualified specialists. 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.
Swisscom has maintained its market position in a
fiercely competitive, changing market environment. This
was mainly due to positive trends in the growth areas of
security, cloud and business applications. Market
revenues at Swisscom increased in each of those areas,
although certain revenues shifted to the big global cloud
providers (hyperscalers). The acquisition of Axept
Business Software Ltd in the year under review (inte-
gration and operations partner of the Swiss SME ERP
software Abacus) provided a further boost to Swisscom’s
market position.

Italian market trends

Italian broadband market
Generating estimated revenue of around EUR 15 billion
including wholesale, the Italian broadband market is the
fourth-largest in Europe. The market for fixed broadband
has shrunk slightly in recent years. Growth was only
witnessed in the area of mobile broadband connections
(fixed wireless access, FWA). The fixed broadband market
comprises more than 17 million connections distributed
between four major competitors and other smaller
providers. Around 66% of Italian homes and businesses
are covered by fixed broadband services, putting market
penetration below the European average of 75%. This is
due in part to a lower level of digital literacy and less
developed online services and applications. In addition,
customers in Italy are increasingly using mobile internet
for large volumes of data due to the low prices and at
times better performance compared with the fixed
network. Fastweb is one of the biggest providers of fixed
broadband connections thanks to a market share of
around 16% in the residential customer segment and
35% in the business customer segment.

Italian mobile communications market
With a volume of over 78 million active SIM cards, a
market penetration rate corresponding to around 133%
of the population and total revenue estimated at EUR 12
billion, the Italian mobile telephony market is one of the
most competitive in Europe. There is fierce price
competition that has intensified further following the
market entry of Iliad and the launch of secondary brands
by mobile network operators. Fastweb’s mobile
customer base grew by around 14% year-on-year to
more than 3.5 million customers. Fastweb’s market
share among residential and business customers
increased to 5%.

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Group goals and strategy

General conditions
Swisscom operates in a dynamic environment. Recent
years have seen greater changes in the geopolitical and
economic environment than in the past. Causes include

the supply chain bottlenecks, rising
inflation and
heightened geopolitical risks due to tense trade relations
between the US and China, the war in Ukraine and the
conflict
in the Middle East. Swisscom constantly
monitors global developments in order to identify and
act on relevant trends in good time.

The Swisscom Group Customer Proposition

Digital Business

BEST
NETWORK

Digital Life

Trust and Inn o v a t

i o

• Effective digital transformations

• Leading IT solutions

• Reliable & secure services

• Unique entertainment offers

• Value added digital services

• Best connectivity experience

The digital transformation is making inroads into more
and more areas of our lives, leading to lasting changes in
customer behaviour. Swisscom offers its customers the
best possible support across the board thanks to a wide
range of products and services and its fast, reliable and
sustainable network. This applies to both residential
customers in their ‘digital life’ and business customers in
their ‘digital business’.

Customers’ expectations regarding customer-oriented
offerings, high-performance and stable networks, a
seamless and personalised customer experience and
transparent sustainability efforts will continue to rise.
Business customers are increasingly driving the digital
transformation
initiatives).
(business-oriented
Security and compliance are also becoming more and
more important as critical business enablers for
business customers. Hybrid ICT environments are
increasingly becoming the standard, and globally
standardised technologies with delivery as a service

(DaaS) models are becoming ever more dominant in
the IT market.

Long-term megatrends, demographic change and new
forms of work are fundamentally changing society and
the economy, and influencing Swisscom’s activities.
Technological advances at the company are also driving
constant change. For example, Swisscom is using the
latest technologies to expand its network. Progress in
the field of artificial
intelligence offers attractive
opportunities for optimising customer service. Other
technologies such as quantum computing will only
unleash their full potential in the future.

Swisscom’s core business is characterised by competition
with strong price pressure. The overall market for
connectivity services in Switzerland is continuing to
decline slightly, while market revenues in Italy are
stabilising. The market for IT services in Switzerland
continues to grow moderately.

Group goals and strategy
To ensure that Swisscom continues to develop
successfully in a challenging market environment and
opens up the opportunities of the digital transformation
to its customers, it continues to pursue the purpose of
‘Empowering the Digital Future’ and the vision of
‘Innovators of Trust. The most trusted Swiss tech innova-

tor creating unique customer experiences with positive
impact for society’. Because innovation and trust are
core values of Swisscom and central to successful
technological and social development. Swisscom is
already addressing relevant, promising future topics and
has set the following Group strategy and the following
Group goals.

The Swisscom Group Strategy

Delight customers

Innovate for growth

Achieve more with less

Perform together

Create unique customer
experiences every day

Deliver digital products
and services
of the future

Drive transformation at
pace with AI, digitalisa-
tion and simplification

Develop ourselves
and our collaboration
relentlessly

Group goals
In the reporting year, Swisscom redefined some of its
strategic Group goals that it intends to pursue in the
coming years.

As Swisscom is characterised by enormous stability, it
lives up to its goal of having ‘rock-solid financials’.
Safeguarding profitability and cash flow is essential to
its ability to continue distributing an attractive dividend.
As a leading digital company, Swisscom launches pro-
gres sive products and services that are based on
resilient, secure networks and that meet the goal of
being ‘outstanding in innovation & reliability’. It devel-
ops growth areas in its Digital Business division, such as
trust services, in a targeted manner. As a ‘trusted leader
in digital life & business’, Swisscom wants to consolidate
its position as market leader in Switzerland and create
growth in the area of IT services and in Italy as a ‘leading
challenger’. As a ‘pioneer in sustainability’, Swisscom
continues to pursue ambitious goals with regard to its
responsibility towards the environment and society.
Swisscom’s main priorities are to reduce or avoid CO2
emissions, to fulfil its responsibility as a corporate citizen
with outstanding governance and compliance and to
work towards a digital society in which everyone in
Switzerland can participate. Through its goal of ‘high-
performing teams’, Swisscom intends to focus more

strongly on the further development of its corporate
culture and the challenges posed by the shortage of
skilled labour. It wants employees to consciously develop
and experience a positive, motivating corporate culture.
An inspiring management culture is key to this. Swisscom
wants employees to perceive it as a ‘great place to work’
and an attractive employer.

Group strategy
In the reporting year, Swisscom adjusted its Group
strategy in parallel with the Group goals. The strategy is
based on four pillars. Through ‘Delight customers’,
Swisscom aims to inspire its customers with unique
experiences every day. Through new, digital products and
services, it wants to help its customers take advantage of
the full potential of the digital transformation via
‘Innovate for growth’. Through targeted digitalisation, the
use of artificial intelligence and the simplification of
processes, Swisscom aims to optimise and automate its
operations in order to ‘Achieve more with less’. Swisscom
is aware that its success depends to a large extent on its
employees and on creating the best conditions for
‘Perform together’, Swisscom
collaboration. Under
therefore attaches particular importance to the conti-
nuous development and optimal cooperation of its
employees and focuses on topics such as performance
culture, further training and diversity.

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Infrastructure

Capital expenditure
CHF 2.3 billion

was invested by Swisscom in 2023,
CHF 1.7 billion of which in Switzerland
and CHF 0.6 billion in Italy.

Optical fibre expansion
57%

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
ultra-fast broadband in Italy –
and the company aims to cover 39%
of homes and businesses by 2024.

Infrastructure in Switzerland

Broadband coverage1

Network infrastructure
Swisscom aims to provide its customers with the best
network and the latest innovations for both the fixed
and mobile networks. To do this, it relies on a smart
combination of different network technologies.

Leading international position
thanks to continuous 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. According to the
Broadband Coverage in Europe 2021 study by Omdia/IHS
Markit – commissioned by the EU Commission and
Glasfasernetz Schweiz – the availability of broadband
with at least 30 Mbit/s in rural regions of Switzerland is
96.4%, well above the EU average of 69.8%.

The Broadband Network Test Switzerland 2023,
conducted by the trade magazine connect, awarded first
place with the distinction ‘outstanding’ to Swisscom’s
fixed network, with the company winning in the
nationwide provider category. Similarly, Swisscom’s
mobile network is one of the best networks in the world,
as confirmed by independent 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 network infrastructure.

Coverage >80 Mbit/s

Coverage >200 Mbit/s

Coverage with 10 Gbit/s

1 Built access lines.

92%

83%

46%

Swisscom will increase fibre-optic coverage (FTTH) to
around 57% by the end of 2025, and to 75 to 80% by
2030. The fibre-optic network should be completed in all
municipalities after 2030. At the same time, Swisscom is
continuously modernising its existing network and
combining the performance of the fixed network in
selected regions with that of the mobile phone network.
The ongoing fibre-optic expansion will also allow
Swisscom to gradually decommission the copper
network in the coming years wherever fibre optic is
available. In the long term, the copper network is to be
decommissioned completely. Apart from a reduction in
IT and networks, the
complexity
elimination of the copper network will lead to energy
savings of around 95% in the regional access network
(compared to requirements in 2023).

in the area of

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 10,200 antenna sites with
them. At the end of 2023, Swisscom had around 6,800
exterior units and 3,800 mobile communication antennas
in buildings. With around 6,500 hotspots in Switzerland,
it is also the country’s leading provider of public wireless
local area networks (WLAN).

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The 5G and 5G+ mobile communication standards not
only enable new functions, but also bring a much-
needed reduction in the load on the network, increase
capacity and maintain the accustomed quality of the
mobile network. 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 5G and 5G+. Swisscom announced
in 2022 that it would be decommissioning its 3G
technology, now more than 20 years old, at the end of
2025 in order to use the freed-up capacity for modern
and efficient technologies.
Y See www.swisscom.ch/networkcoverage

in operation

Swisscom currently covers 99% of the Swiss population
with a basic version of 5G and around 81% with 5G+.
According to the industry association asut, 5.5 million
5G-enabled devices were already
in
Switzerland by the end of 2023. The 5G expansion will
gradually 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 people’s health. In order to improve the level of
information within the population, Swisscom provides
information on its channels and supports the joint
information platform Chance5G established by the
industry association asut.
Y See www.chance5g.ch

The Internet of Things (IoT)
The concept of IoT is now considered to be the most
significant initiator for innovative approaches and the
digital transformation. Thanks to strong partnerships,
Swisscom is already the leading provider of IoT system
solutions required for cloud and analytics imple men-
tations and their operation. ‘Data as a Service (DaaS)’
rounds off Swisscom’s portfolio and, thanks to plug and
play, makes it even easier for 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
Communications Commission (ComCom) allocated the
frequencies 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, primarily 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 Switzerland are ten times stricter than those
recommended by the World Health Organization (WHO)
in sensitive areas such as homes, schools, hospitals and
permanent workplaces.

IT infrastructure and platforms
Swisscom operates six data centres in Switzerland. Its
IT infrastructure comprises over 80,000 virtual machines
and around 6,000 servers. The central telecoms
functions for the operation of the fixed and mobile
networks converge in four of the six data centres.
Swisscom largely relies on virtualisation and container-
isation of 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
applications. These include all business applications in
connection with Swisscom services for residential and
business customers. The entire infrastructure is designed
for redundant operation and high availability. Swisscom
attaches the very highest priority to both stability and
resilience, and reviews and improves them on an
ongoing basis. Based on an established quality and
security culture, including the associated governance
processes, Swisscom takes every possible precaution to
reduce the likelihood that major disruptions will occur.

The Swisscom Clouds form a key basis for the operation
of numerous customer applications as well as the
company’s own applications. Swisscom follows the
latest technical trends and is constantly developing its
state-of-the-art solutions such as Infrastructure as a
Service (IaaS), Platform as a Service (PaaS) and Container
as a Service (CaaS). As part of its cloud strategy, Swisscom
also makes use of public cloud services, relying on close
partnerships with Amazon Web Services (AWS) or
Microsoft Azure. In addition to its extensive multi-cloud
service offering for business customers, Swisscom wants
to increasingly make use of AWS services to operate its
internal applications over the next few years.

As well as IT applications, Swisscom uses its cloud
platforms to provide communication services. These
include an ever broader connectivity offering featuring
advanced services such as Software Defined Wide Area
Network (SD-WAN), Managed Security and Managed
LAN. Swisscom is also focussing increasingly on state-of-
the-art approaches such as Secure Access Service Edge
(SASE) and Zero Trust Network Access (ZTNA). The

Trusted leader
in digital life
and business

As the number 1 telecommunications provider in
Switzerland, Swisscom sets the bar high with the best
network and the best customer experience. Much like
its subsidiary Fastweb in Italy, which is making a
significant contribution to Swisscom’s growth and is
constantly expanding its ultra-fast broadband network.

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constant state of change on the market backs up its
efforts to use the latest technologies both internally and
externally for the benefit of its customers. Instead of
developing its own infrastructure, Swisscom is making
use of the standardised systems created by its partners.
The focus on the development of market-specific, value-
adding services based on established infrastructure has
proven sound.

Swisscom is ready for the future thanks to its cost-
efficient, automated and stable IT infrastructure. It gives
its customers the best possible support as they make
their way into the digital world, with state-of-the-art
services, extensive knowledge and long-standing expe-
rience.

Infrastructure in Italy

Network infrastructure
Fastweb has captured a leading position in Italy by
continuously investing in its own network and in
FiberCop, in which it holds a 4.5% stake. At the end of
2023, 90% of Fastweb customers had a connection with
a performance of over 100 Mbit/s. 10.6 million homes
and businesses were connected to Fastweb’s ultra-fast
broadband network via FTTx (Fibre to the Home/Street)
technologies by the end of 2023. In addition, the 5G
mobile network set up in collaboration with WindTre
achieved coverage of 72% of the Italian population.

In the coming years, Fastweb is aiming to make further
investments in fixed and mobile network infrastructure
in order to achieve ultra-fast broadband coverage of
90% of homes and businesses by 2026 and exploit the
advantages of FTTx and 5G mobile communications.

IT infrastructure
Fastweb is positioning itself as a digital partner for large
corporations, and offers a vast range of connectivity and
(cloud, cybersecurity and
infrastructure services
customised 5G mobile communications solutions). It
currently uses five large data centres. Two data centres
operate based on a model in which Fastweb assumes
responsibility for end-to-end governance of the data
space and ICT services. Two other data centres are
mainly used for the business customer segment, includ-
ing for colocation and server housing, cloud services and
other ICT-managed services. The fifth data centre is
dedicated to the operation of internal IT systems and
processes.

In light of the growth of the ICT market for cloud-based
solutions and the business opportunities in the cloud
edge area, Fastweb is planning to further expand its
centralised and local computing capacities, primarily
through the use of additional white space and
proprietary solutions. Fastweb is aiming to develop
pro gressive services such as edge computing with
around 40 nodes by 2025, in order to supply the whole
of Italy via an extensive network of mini data centres.

Capital expenditure
In CHF million

2,438

2,229

2,286

2,309

2,292

668

633

652

621

607

1,770

1,596

1,634

1,688

1,685

2019

2020

2021

2022

2023

Switzerland

Other countries

Employees

Employees
19,729

Part-time
21%

Women
23%

employees (FTEs) work at Swisscom,
16,050 of which in Switzerland (81%)
and 3,157 in Italy (16%).

of employees have part-time
workloads at Swisscom.

of the company’s workforce is
comprised of women; the figure
for management is 14%.

Employees in Switzerland

transformation presents numerous
The digital
opportunities as well as great challenges for employees
and companies. As a result, Swisscom helps 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 2023, Swisscom employees spent an average
of 4.2 days per person on learning, training and devel-
opment.

Overview employees

Employees (FTEs)

16,050

Subordination to CEA

Permanent work contracts

Part-time employees

Fluctuation rate

79%

99%

21%

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 for
managers, while the other employees are subject to
Swisscom’s Collective Employment Agreement (CEA).
Y See www.swisscom.ch/sir2023

Swisscom plays a pioneering role in flexible and hybrid
working throughout Switzerland and is expanding the
availability of this type of working model. Employees

appreciate this flexibility, whether through not having
to commute to work or through having 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)
is committed to fostering constructive
Swisscom
dialogue with its social partners – syndicom and
transfair – as well as the employee associations that are
granted rights of co-determination of varying degrees.
The Collective Employment Agreement (CEA) and the
social plan are negotiated by Swisscom Ltd and its social
partners and applicable to Swisscom Ltd’s employees.
Group companies, such as Swisscom (Switzerland) Ltd,
adopt the CEA by means of an affiliation agreement,
possibly with business or sector-specific adjustments. In
2023, a new CEA was negotiated (effective from 1
January 2024) to further improve working conditions.
The subsidiaries cablex Ltd and Swisscom Directories Ltd
(localsearch) negotiate their own CEA with the social
partners. Under the Telecommunications Enterprise Act
(TEA), Swisscom is obliged to draw up a collective
in consultation with the
employment agreement
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.

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 2023,
86% of those affected by personnel reduction measures
had found a new job before the social plan pro-
gramme ended (prior year: 88%). For employees with

management 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
variable performance-related component and bonuses.
The basic salary is determined based on function,
individual performance and the job market. The variable
performance-related salary component is measured by
the achievement of overriding objectives such as finan-
cial parameters as well as business transformation
topics that fall into the areas of operating performance,
customers, growth and sustainability. Details on remu-
ne ration paid to members of the Group Executive Board
are provided in the Remuneration Report.

With effect from April 2023, Swisscom and its social
partners agreed to increase salaries for employees subject
to the CEA by 2.6% 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. 2.6% of the total payroll was also 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 competi-
tiveness in the long term. It is Swisscom’s declared goal
to fill as many positions as possible intern ally. 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
502 employees (FTEs) in both Riga and Rotterdam. It
does this primarily to provide access to international
talent outside the Swiss labour market, if needed.

Apprenticeships and internships
Swisscom trains 856 apprentices in a variety of profes-
sions in Switzerland; with more than 535 ICT apprentices,
it is the largest provider of ICT apprentice ships in Switzer-
land. In the year under review, it introduced the new
‘Digital Business Developer with Swiss Federal Certificate
of Competence (EFZ)’ occupational profile and launched
the ‘Putting people before paper’ pilot project in German-
speaking Switzerland. Under this project, school reports
are only consulted in the final stage of the apprenticeship
appli cation process.

Furthermore, Swisscom launched the ‘Learnvolution’
project with the Baden Vocational School to make the
training concept of vocational schools more flexible. The
project, which received the ICT Education & Training
Award at ICT Award Night in 2022, enables graduates of
technical colleges and universities to gain their first prac-
tical experience at Swisscom as part of a step-in intern-
ship or as a trainee.

Employee satisfaction
The Pulse survey gives Swisscom employees an
opportunity 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
culture 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 76% in 2023
(previous year: 71%). More than 90% of the employees
participating
in the survey said they recommend
Swisscom as an employer.

More than 90% of the employees
recommend Swisscom as an employer.

Diversity
Swisscom takes its social responsibility seriously and is
committed to strengthening equality and equal
treatment for all employees. It is convinced that the
diversity of its workforce is what makes Swisscom a
successful and innovative company. Relationships based
on trust and respect, where employees meet each other
on an equal footing, are crucial factors in this. Further
information on diversity can be found in the report on
non-financial matters.
H See report pages 70–71

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Outstanding in
terms of innovation
and reliability

Swisscom invests heavily in new technologies
to consistently offer all of its customers
the best in the networked world.

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Employees in Italy

The working conditions that apply in Italy are based on
the national collective employment agreement for the
telecoms sector (CCNL). This agreement sets out the
provisions governing working conditions for employees,
such as weekly working hours, annual leave entitlement,
and maternity and paternity leave. The collective
employment agreement also contains provisions
governing the relationship between Fastweb and trade
unions. Fastweb maintains dialogue with trade unions
and employee representatives and involves them in
major operational changes at an early stage.

Fastweb offers competitive salaries to attract highly
qualified specialists and managerial staff and ensure
they remain with the company. Its salary system
comprises a basic salary, a collective variable profit-
sharing component for non-managerial staff and a
variable performance component for managerial staff
that is contingent on meeting individual and company
goals. The basic salary is determined based on function,
individual performance and the situation on the job
market. The variable profit-sharing bonus is based on
the model agreed with the unions. Fastweb complies
with the legal minimum salary.

General terms of employment

Weekly working time in hours

Weeks of holiday entitlement

Weeks of maternity leave

Fastweb is always interested in attracting new talent.
With this goal in mind, the company offers young people
the opportunity to complete internships at the company
throughout the year and takes part in a programme to
introduce school pupils to the working world through
internships. Fastweb also participates
in career
conferences and recruitment events organised by
universities and educational institutions in order to
meet young candidates.

The terms and conditions of employment enable
employees to strike a healthy balance between their
work demands and personal life. In 2020, Fastweb
introduced an agreement on a new working concept
(Smart Working). This agreement offers all employees of
the company, including customer advisors, full flexibility
and autonomy when it comes to choosing a working
model. It gives Fastweb employees the option of using
the smart working model on all working days or deciding
on a day-to-day basis, in consultation with their manager,
whether they want to work in the office or from home.

it views

Fastweb strives to create a safe workplace where
employees are proud to express their individuality
and value diversity within the organisation. As a
individual differences between
result,
employees as something that enriches the company.
For Fastweb, inclusion is not only an ethical concern
but should also serve as a driving force for the per for-
mance of the company as a whole. Further infor-
mation on diversity can be found in the report on
non- financial matters.
H See report pages 70–71

Development of headcount
In full-time equivalents

19,317

19,062

18,905

19,157

19,729

2,689

3,014

3,023

3,407

3,679

16,628

16,048

15,882

15,750

16,050

2019
Switzerland

2020
Other countries

2021

2022

2023

Brands, products
and services

Swisscom brand
CHF 6 billion

Swisscom blue
2.1 million

is the value of the Swisscom brand.

customers use blue subscriptions.

Fastweb
35%

is 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 products and services
from its core business under the main Swisscom brand,
as well as under the Wingo secondary brand 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 Switzer-
land, 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.

Purpose, vision, values and the Swisscom promise
determine the positioning of the Swisscom brand.
Swisscom revamped its positioning in the year under
review. Its new vision is: ‘Innovators of Trust: The most
trusted Swiss tech innovator creating unique customer
experiences with positive impact for society’. In addition,
the scopes of validity of the individual elements of the
company’s positioning are now even more transparent:
the purpose, vision and values apply to all companies in
the Group. Swisscom also expects all employees to
demonstrate trustworthiness, commitment and curios-
ity in everything they do. Individual promises serve to
differentiate the individual brands and make them
relevant to specific customers. No changes have been
made to the Swisscom brand. As it has done up to now,
Swisscom is preparing its customers so they can make
even easier use of the opportunities presented by the
networked future. The ‘ready’ brand platform expresses
this positioning to the outside world, which has a
positive effect on the brand perception.

Main brand

Product family

Secondary brand
and tertiary brands

Other brands
(excerpt)

Swisscom brand portfolio

In terms of 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, service and network quality 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.

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Swisscom is part of a modern Switzerland, always
remains recognisable as a Swiss company and positions
itself clearly and credibly through
its stance on
responsibility. The targeted sustainability campaigns
have had an impact and strengthened the brand overall.
This is one reason why the reputation values achieved by
Swisscom are exceptionally high for a company in the
telecoms sector by global standards.

According to the Telecoms 150 2023
report, Swisscom is the strongest
telecoms brand worldwide.

largest fibre-optic network

network and the
in
Switzerland to provide its customers with fast and
secure internet, top-quality entertainment and free-
dom while on the move. Customers who combine
mobile communications and internet subscriptions
benefit from a monthly loyalty discount starting from
the very lowest subscription level.

Swisscom offers three different blue internet and mobile
communications subscriptions. Kids, basic and prepaid
mobile communications tariffs are also available. The
subscriptions differ primarily in terms of speed (internet)
or the units included in roaming (mobile communications).
Each offering includes numerous free extras such as surf
protection (Internet Guard) or call blocking (call filter).

The Brand Finance Switzerland 50 2023 study rated
Swisscom as the strongest brand in Switzerland in the
year under review – ahead of Lindt and Rolex. According
to the Telecoms 150 2023 study, Swisscom is also the
only telecoms brand in the world with an AAA+ rating. It
increased its brand value by 8.2% to CHF 6.0 billion
(previous year CHF 5.6 billion), making it one of the ten
most valuable Swiss brands.

Swisscom blue offers a comprehensive entertainment
experience comprising TV, streaming and cinema. blue
TV is available via the Swisscom Box, a smartphone and
tablet app, a web player at blue.ch and smart TVs. The app
is also available with the complete blue+ offering on the
TV boxes of other providers such as UPC TV or Quickline.
Apple TV 4K has been available as an alternative to the
Swisscom TV-Box since 2022.

Products and services in Switzerland

Residential Customers
Swisscom offers residential customers internet, TV,
telephony and mobile communications under its main
Swisscom blue brand. 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 customers straightforward attractive
mobile, internet and fixed network telephony services.
Coop Mobile is exclusively a mobile subscription.

Although Swisscom is affected by inflation just like any
other company, it is able to absorb a large part of the
additional costs by introducing cost-cutting measures at
an early stage. As a result, Swisscom will be keeping the
prices of mobile, internet, TV and fixed network
telephony subscriptions for its residential customers
stable and will not implement any general price
increases until late 2024 at the latest.

Swisscom enhanced the blue portfolio in the reporting
year, making the subscription more flexible and
attractive for new and existing customers and offering
them a range with even more benefits. The sub-
scriptions are available in flexible combinations and
offer numerous free extras, maximum security and
first-rate service. Swisscom uses the best mobile

blue TV offers up to 2,000 hours of recording capacity. The
blue Play media library offers up to 10,000 films and series
episodes depending on the language region.

2023 saw Swisscom launch the TV-Box 5,
which combines streaming and TV.

The year under review saw Swisscom launch the TV-Box
5, which combines streaming and TV. The new TV-Box is
based on Android TV and integrates the Google universe.
With blue SuperMax, Swisscom has launched a new
(Disney+,
offering
Paramount+, Sky Cinema and blue Max) at a discounted
price. In addition, the TV-Box offers access to the
MySports channels, which broadcast matches from the
top Swiss ice hockey leagues, among other things.

that combines

four providers

The easiest way to control Swisscom blue is via the My
Swisscom App. Customers can use the app to customise
their subscriptions, manage devices, order services, or
contact customer support. The trade magazine connect
rated the My Swisscom App as the best tele communi-
cations app in Switzerland for the third time in succession.
Swisscom offers its customers a Swiss solution via
myCloud for securely managing and sharing their
personal data such as photos, videos and documents. In
addition to the standard communications channels such
as hotlines, chats and contact forms, customers get in

Rock-solid
financials

Swisscom is financially stable, its stock value is solid
and the dividend is attractive. Prudent management,
constant simplification and increasing efficiency form
the basis for a successful future.

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touch with Swisscom via WhatsApp, Facebook, X
(formerly Twitter) and Google Business Messenger.
When it comes to service, Swisscom continues to rely on
a regional, on-site presence. Employees address cus-
tomers’ concerns in more than one hundred Swisscom
shops. Swisscom earned top scores to win the shop test
organised by the trade magazine connect for the third
time in a row in the reporting year.

Business Customers
Swisscom makes use of its many years of experience as
an integrated telecoms and IT company to support its
business customers with their digital transformation
efforts and works together with them to develop
forward-looking solutions.
ICT
portfolio comprises cloud, outsourcing, workplace and IoT
solutions, as well as mobile phone solutions for mobile
working and communication, networking solutions,
location networking, business process optimisation, SAP
solutions, security and authentication solutions, data
and AI consulting, and services tailored to the banking
industry.

Its comprehensive

Swisscom also helps drive the digital transformation of
the healthcare 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 inter-
connects service providers through digitised solutions.
In the world of industry, Swisscom is driving a smart
manufacturing vision, bringing people, systems, machin-
ery, products and companies together efficiently along
the entire value chain.

Swisscom has created a new standardised mobile
communications offering for business customers to
serve as a foundation for digital transformation within
companies. Enterprise Mobile is aimed both at customers
who do not make many calls and at users of unlimited
roaming offers. It offers services that are tailored
specifically to the needs of business customers and
increase security and productivity, for example.

Swisscom has standardised and customisable
ICT
solutions in its portfolio for SME customers. inOne SME
office covers an SME’s basic internet and telephony
needs, while Smart Business Connect, a scalable
communication solution with collaboration and net-
working features, is ideal for SMEs with more complex
needs. Both bundled offerings
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

include

market and company changes at any time. The Smart ICT
complete IT outsourcing package includes a modular
integrated solution for SMEs. For this, Swisscom works
together with regional IT partners to operate the IT and
takes care of both security and professional data
backups. Mobile subscriptions geared to the needs of
small and medium-sized enterprises, IT security services,
IoT solutions and cloud-based software for mobile
working round off Swisscom’s SME portfolio.

The acquisition of Axept Business
Software Ltd in June 2023 strengthens
its ERP offering for SMEs.

The acquisition of Axept Business Software Ltd in the
reporting year enabled Swisscom to strengthen its ERP
offering (Abacus) for SMEs. Moreover, thanks to Secure
Internet Traffic and Mail Security, smaller SMEs can now
reduce their risk of falling victim to a cyberattack.

Through its localsearch product portfolio, Swisscom
helps companies to be found online, to acquire new
customers and to retain them in the long term. As a
company with roots in the printed telephone directory,
localsearch 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 directory
and booking platforms with the widest reach in
Switzerland. localsearch’s brand portfolio also includes
renovero, the largest Swiss platform for tradespeople,
Localcities, a platform for communities and associations,
and Vergleich CH, an industry comparison service.

The subsidiary Swisscom Broadcast Ltd provides radio
networks for broadcasting, security and professional
mobile radio and makes around 450 transmitter sites
available for co-use. It also supports its customers with
telecommunications,
IT, streaming media, content
delivery and event management services. The safety
and security solutions range from video surveillance,
drone detection and drone piloting to the early detection
of flooding or the prediction of people density at events.

Furthermore, Swisscom takes over the planning,
construction, maintenance and operation of high-
performance ICT and network infrastructure solutions
through cablex Ltd, Switzerland’s leading network
infrastructure and service company. cablex also offers
modern smart
infrastructure solutions aimed at
boosting energy efficiency. These include the installation
of smart heating solutions, the planning and retrofitting

of buildings that are self-sufficient in terms of energy,
the construction and maintenance of photovoltaic
plants and the introduction of smart energy meters.

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
telecoms service providers transparent connections on
an as-needed basis with a wide range of different
bandwidths and interfaces and/or a flexible Ethernet
service allowing tailored bandwidths and qualities of
service. Swisscom Wholesale also provides basic
(interconnection) of
offerings for the connection
telecoms systems and services, and supplies
its
customers with infrastructure products such as the
shared use of cable ducts and the mobile network.

Products and services in Italy

Fastweb is positioning itself as a premium provider in
the residential customer segment, thanks in part to the
high quality of its services and its sustainability efforts.
For example, Fastweb is offering its customers the first
‘Internet at Zero CO2 Emissions’ subscriptions in Italy.
It has also introduced the eSIM and a sustainable,
certified ecoSIM developed by its partner company
Thales. Finally, the Fastweb portfolio includes a range of
digital solutions such as digital invoices, FASTGate and
FASTHealth for environmental protection. These solu-
tions enable customers to make sustainability an even
more established component of their everyday lives by
saving energy and going paperless. The Fastweb Digital
Academy is an integral component of the offering
structure. It strengthens Fastweb’s commitment to
promoting digital literacy within the country and devel-
oping talent.

Fastweb has retained its multi-level offering structure in
the fixed-network segment. It offers various internet

subscriptions and additional services to round off its
offering. These include the innovative NeXXt Internet-
Box and the WiFi booster with the integrated Alexa
speech assistant, home and pet insurance offered as
part of the partnership with Quixa (Axa Group), the
Assistenza Plus customer service solution, which puts
customers in direct contact with a customer advisor, and
the FastwebUp Plus premium loyalty programme, which
offers exclusive benefits every month. In the mobile
communications sector, Fastweb is pursuing a go-to-
market strategy aimed at attracting new customers by
offering the best value for money on the market.

Fastweb has a strong market position in the business
customers segment, particularly for fixed network and
ICT services. In the area of public administration, Fastweb
increased its market share thanks in part to the conclusion
of public-sector national agreements for fixed-network
and ICT services. The mobile phone sector is also becoming
increasingly important for Fastweb. The Fastweb 5G
Mobile service offering enabled Fastweb to acquire addi-
tional corporate customers in the report ing year.

ICT/security services are increasingly becoming a focal
point for Fastweb. Acquisitions permitted Fastweb to
expand its expertise and portfolio in the cloud and
security segments. In the public cloud segment, Fastweb
is looking for further opportunities to offer its customers
an even more comprehensive range of multi-cloud
solutions following the partnership entered into with
Amazon Web Services (AWS). Fastweb launched its
proprietary Edge platform for companies in the year
under review: FASTedge is the first platform on the
Italian market to offer cloud resources and services that
are in close proximity to companies and facilitate the
development of advanced solutions, particularly in areas
of application relating to artificial intelligence, the
Internet of Things (IoT) and big data. Thanks to its own
ultra-broadband infrastructure and digital platform,
Fastweb offers wholesale customers integrated access
to the entire market presence and to state-of-the-art
technologies, including 5G.

Customer satisfaction

Swisscom measures the satisfaction of residential and
business customers twice a year, and that of wholesale
customers once a year. The metrics used are 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 ‘promot-
ers’
(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
friendliness. Product studies also continuously survey
buyers and users to determine product satisfaction,
service and quality.

• The Business Customers segment conducts surveys
among customers to measure satisfaction along the
customer experience chain. Feedback tools are
implemented 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 highly competitive market, 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
com ponent of remuneration for employees and
management.

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Innovation and
development

Trend scouting
Since 1998

Swisscom has had a branch office
in Silicon Valley since 1998.

Promoting innovation
StartUp
Challenge 2023

Swisscom Ventures
More than
80 investments

attracted more than 240 participants
from 27 countries.

in technology companies made
by Swisscom to date.

Innovation as a key driver
of business performance

The digital transformation represents a huge oppor tu-
nity for Switzerland. However, the population will only
accept the advance of digitalisation within society if
trust in secure services and the correct handling of
sensitive data is assured. The way in which Swisscom
brings trustworthy innovations to the market for its
customers will play a key role in both its own success
and that of its customers. Trust in new technologies will
become even more important going forward, which is
why Swisscom aims to become ‘Innovators of Trust’ for
Switzerland and its customers. Innovative strength and
trust are core values of Swisscom and central to
successful technological and social development. With
this in mind, Swisscom is already addressing relevant
and promising future topics intensively. Swisscom
strives every day to delight its customers with the best
products and services (‘Delight customers’). Swisscom is
driving its growth by developing advanced products and
services (‘Innovate for growth’). It also supports forward-
looking solutions to make its own processes even more
efficient, for example through process digitalisation
(‘Achieve more with less’). Finally, Swisscom is focusing
on innovation to help position itself as the best ICT
employer, attract the best talent and retain it (‘Perform
together’). In order to achieve this, Swisscom works
closely with partners, universities, start-ups and
established technology companies.

In its Silicon Valley office in California, Swisscom has
been engaged in trend and technology scouting since
1998. The office comprises an innovation lab with its
own data centre and serves Swisscom as a source of

information on technology developments in the Silicon
Valley ecosystem. It also maintains local partnerships
with promising start-ups and leading US technology
companies whose products and business models are
then launched in Switzerland.

investments

Swisscom Ventures 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
in existing holdings. These
follow-up
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, discounts on IT and
cloud services, expert know-how, coaching programmes,
financing and community events.

The year under review featured the
eleventh Swisscom StartUp Challenge,
which was all about deep tech.

Over 240 start-ups from 27 countries have applied for a
funding programme as part of the Swisscom StartUp
Challenge. The three winners of the StartUp Challenge
secured an opportunity to take part in a customised
acceleration programme at the Swisscom office in
Silicon Valley. They also gained access to the Swisscom
ecosystem. They can now access workshops, coaching
and a network that includes companies from the deep
tech segment as well as investors. Swisscom Kickbox is
an employee-driven intrapreneurship and innovation

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programme with a clear process, tools and resources for
innovation projects. It promotes a culture of innovation
within the company and works at various strategic
levels: for example, in the development of sophisticated
customer-centric products and services and in employer
branding to help Swisscom attract the best talent.
Swisscom Kickbox is also available to other companies
via the spin-off rready AG.
Y See www.swisscom.ch/innovation

Innovation focused on specific topics

important

Fixed network
Demand for bandwidth has increased more than tenfold
over the last ten years and will continue to grow going
forward, making
for Swisscom to
continuously invest in its network, further expand it and
implement the latest technologies. Last year saw
Swisscom become the first company in the world to
successfully test the state-of-the-art generation of fibre-
optic technology (50G-PON) in a Zurich metropolitan
area. This is the next standard for Passive Optical
Networks (PON) after XGS-PON and is intended to
increase bandwidth from 10 Gbit/s to 50 Gbit/s. In
addition to the increased bandwidth, 50G-PON offers
features such as synchronisation for the transmission of
5G mobile communications and quality of service (QoS)
mechanisms for service-level agreements (SLAs) for
high-end access services aimed at business customers.

In the IP transport network, Swisscom is edging ever
closer towards the limits of conventional technologies
such as MPLS (Multiprotocol Label Switching). This is
why Swisscom has become one of the first telecoms
providers in the world to switch to the successor
technology, segment routing via IPv6 (SRv6). This
technology simplifies the IP protocol stack significantly,
which brings benefits for operations and contributes to
greater network stability. It has been consistently
focusing on cloud technologies (software-defined net-
working (SDN/SD-WAN) and virtual network functions
(VNF) in connectivity development for busi ness cus-
tomers for several years now. Customers set up their
own configurations in full and without any delay with
the aid of user interfaces or programming interfaces
(APIs). Full automation based on declarative models
enables complex, instant adjustments to be made to
various systems (service chaining), ensuring a high
degree of customer interaction.

Mobile communications
Swisscom is continuously improving its mobile network
through the fine-tuning of a variety of parameters
(antenna alignment, etc.). In the past, these adjustments

were made manually. Today, innovative self-organising
network (SON) algorithms automate and improve the
mobile network,
for example by automatically
optimising parameters, antenna tilt and power in line
with requirements. These algorithms minimise the
number of manual interventions during installation and
operation. In the 4G network, all adjustments are
already automated. Thanks to the service management
platform, which was developed in-house, a 5G network
can be made available in just 43 minutes. A great deal of
expert knowledge is still required to program the SON
algorithms correctly.

Cloud and applications
Cloud solutions promise, among other things, lower
costs and higher scalability – but also greater simplicity
and better functionality for application development.
High bandwidths and increasing connectivity are driving
the penetration of cloud solutions. Swisscom offers
numerous solutions in this area. Its extensive hybrid
cloud portfolio provides customers with scalable
services from the Swisscom Private Cloud, as well as
Amazon Web Services (AWS) and Azure, from a single
source. Standardised blueprints automatically set up
cloud landing zones and solutions for the ongoing
optimisation of public cloud architectures. In this way,
Swisscom supports its customers in complying with
cloud governance and making sustainable improvements
to their operations. Working hand-in-hand with
NETSCOUT and Ericsson, Swisscom is also strengthening
network transparency with the world’s first solution for
cloud-based processing of 5G packet data – increasing
the security of network services, analyses and
cybersecurity.

Artificial intelligence (AI) and automation
Swisscom uses artificial intelligence (AI) to offer its
customers even better service and optimise processes. It
uses AI in its customer service, in new products and
services 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. 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 three years
now. This makes it possible for customer concerns to be
identified via an automated process, classified more
quickly and for customers to be forwarded directly to
the agent best qualified to assist them. Ongoing training
of the AI application and the use of large language
models is improving the service continuously, so that
certain customer enquiries can be resolved entirely via
automated voice dialogue. Following the launch of
ChatGPT, Swisscom has witnessed brisk demand for AI

Pioneer
in sustainability

Sustainable action in favour of reducing CO2 emissions,
as well as fair and climate-friendly supply chains, are
of central importance to Swisscom. The same applies to
supporting the population in the use of digital media.

consultancy and software services related to AI. It has
organised AI strategy workshops with renowned
customers from a range of industries, implemented
chatbots and voice recognition solutions and trained
customer-specific AI models.

Security
Threats from the internet are constantly growing in
number. Many processes and business models in today’s
IT-based, making them
companies are completely
targets for attackers. In addition, the use of multi-cloud
and hybrid cloud solutions are making IT landscapes
increasingly complex and vulnerable. Swisscom added
further managed services to its security portfolio in the
reporting year, including in the area of Extended
Detection and Response (XDR). These new security
solutions pick up on sophisticated attacks or anomalies
and enhance protection against cyber threats. Swisscom
has expanded the relevant capacities in the Security
Operations Centre (SOC) to ensure that its cybersecurity
experts can take effective defensive measures to protect
customers. This means that attacks can be identified
earlier and stopped before they cause damage.

Entertainment and immersive reality
Swisscom further expanded its Swisscom blue offering
in 2022 and enabled customers to use Apple TV 4K as a
TV box. Swisscom launched the new TV-Box 5 in the year
under review. The box is based on Android TV and
integrates the entire Google world. Thanks to the new
streaming partners Paramount+ and Disney+, Swisscom
has curated a NextGen streaming offering and allows
customers to benefit from attractive discounts if they
sign up for combined packages. Streaming subscriptions
can be added and managed in the online Customer
Center. Customers are billed centrally via Swisscom. The
Swisscom Studio uses augmented reality to digitally
display 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
its entertainment
offerings and collaborated with Radio Energy to organise
the first virtual live concerts in the metaverse in the
previous year.

into

Trust
Swisscom has positioned itself in Switzerland as a pio-
neer and market leader for trust services such as
electronic signatures and digital certificates. In the
reporting year, Swisscom incorporated an electronic
signature solution directly into the My Swisscom App.
The Swisscom Sign service has been available to all users –
regardless of whether or not they are Swisscom cus-
tomers – since autumn 2023. All functions are fully
digital, from AI-based identification to qualified elec-
tronic signatures.

Swisscom Sign is available to all users –
regardless of whether or not they are
Swisscom customers.

In addition, Swisscom subsidiary Ajila Ltd is helping
numerous Swiss companies and administrations
completely digitise their document-based business
processes. Customer identification and onboarding as
well as contract signings often pose bottlenecks in the
customer journey. Fully digital processes call for tools
that avoid media discontinuity and integrate seamlessly
into companies’ offerings. This is ensured by two
subsidiaries: Innovative Web Ltd, the leading provider
of eGovernment services to municipalities and cities in
Switzerland, and Swisscom Trust Services Ltd, which is
a leading provider in Switzerland and Europe of legally
valid electronic signature and identity solutions in
accordance with the EU’s eIDAS Regulation and the
Swiss Federal Act on Electronic Signatures (ESigA).

Other technologies of tomorrow
In addition to its areas of innovation, Swisscom is
following developments in fields that will be relevant in
the long term, such as LEO satellites, quantum computing,
digital twins, Web 3.0, spatial computing and digital
health. Among other things, it is monitoring advances in
the quantum key distribution method, which guarantees
secure data communication and could be used in
quantum computers. With regard to other examples of
future topics, Swisscom was one of the first Swiss
companies to implement immersive applications in the
metaverse last year. It organised the first virtual live
concerts, and presented the winners of the Hero League
with a virtual trophy in the form of an NFT (non-fungible
token) as part of Swisscom’s commitment to e-sports.

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Financial review

Alternative performance measures

Swisscom uses key indicators defined in the IFRS
Accounting 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
situation 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 indicators used by
Swisscom in its 2023 annual financial reporting are
defined as follows:

Key performance indicator

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 2023 are translated at the
2022 exchange rate to calculate the currency effect).

Operating income before depreciation and amortisation (EBITDA) Operating income before depreciation, amortisation and impairment losses of property,
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) less investments in property,
plant and equipment and intangible assets as well as payments for network access rights
(IRU) and leasing expenses. Leasing expenses include interest expenses on leasing liabilities
and depreciation of rights of use excluding depreciation of rights of use for network access
(IRU) as well as impairments of rights of use.

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
and derivative financial instruments.

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Reconciliation of alternative performance measures

In CHF million

Revenue

Operating income before depreciation and amortisation (EBITDA)

EBITDA

Termination benefits

(Release) additions of provisions
for legal proceedings in Switzerland, net

Additions of provisions for legal proceedings in Italy

Expense for fixed wireless access Strategy adjustment

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

Purchase of other financial assets

Proceeds from other financial assets

Free cash flow

2023

2022

Change
reported

Change at
constant
currencies

11,072

11,051

0.2%

0.9%

4.9%

5.5%

4,622

(64)

4,406

(5)

157

–

4,638

4,558

1.8%

2.3%

2,272

2,292

2,289

2,309

–0.7%

0.0%

–0.7%

0.1%

2023

2022

Change

4,029

(2,292)

(291)

(108)

124

(1)

108

(7)

(9)

313

2,042

4,029

(2,322)

(270)

(2)

(33)

1,480

3,876

(2,309)

(262)

–

(106)

(31)

(49)

(3)

(1)

134

(2)

378

1,811

3,876

(2,430)

(240)

–

142

(68)

1,349

153

(29)

(2)

(6)

(80)

155

(5)

–

(26)

(5)

(7)

(65)

231

153

108

(30)

(5)

(2)

(129)

131

Summary

In CHF million, except where indicated

Revenue

Operating income before depreciation and amortisation (EBITDA)

EBITDA as % of 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

2023

11,072

4,622

41.7

2,205

1,711

2,042

1,480

2,292

7,071

11,622

47.0

19,729

2022

11,051

4,406

39.9

2,040

1,603

1,811

1,349

2,309

7,374

11,171

45.4

19,157

Change

216

1.8

165

108

231

131

(17)

(303)

451

1.6

572

in %

0.2%

4.9%

8.1%

6.7%

12.8%

9.7%

–0.7%

–4.1%

4.0%

3.0%

The main contributors to Group revenue for 2023 of
CHF 11.1 billion are the Swisscom Switzerland (73%) and
Fastweb
(23%) segments. Swisscom Switzerland
accounts for 80% of the operating income before
depreciation and amortisation (EBITDA) of CHF 4.6
billion, with Fastweb accounting for a share of 17%.

Compared with the previous year, group revenue rose by
0.2% to CHF 11,072 million and operating income before
depreciation and amortisation (EBITDA) by 4.9% to
CHF 4,622 million. The reported revenue and EBITDA
devel opment was influenced by the performance of the
euro (EUR) as a result of Fastweb’s substantial share. The
average EUR exchange rate decreased by 3.1% year-on-
year in 2023. This resulted in negative exchange differ-
ences on Group revenue of CHF 83 million and on EBITDA
of CHF 27 million. Based on a constant EUR exchange
rate, revenue in 2023 rose by 0.9% or CHF 104 million.
Swisscom Switzerland’s revenue fell by 0.8% and
Fastweb achieved growth in revenue of 6.1% (in EUR). In
Other Operating Segments, revenue increased by 3.6%.

EBITDA development is influenced not only by currency
effects, but also primarily by non-recurring items of
CHF 16 million net (prior year: CHF –152 million). The
non-recurring items include the reversal of provisions
for legal proceedings in the net amount of CHF 51 million
(prior year: recognition of provisions of CHF 157 million),
termination benefits of CHF 7 million (prior year: income
of CHF 5 million) and costs of CHF 60 million at Fastweb
as a result of an adjustment to the fixed wireless access
(FWA) strategy. Without these non-recurring items and
with a constant EUR exchange rate, this resulted in an

increase in EBITDA of CHF 107 million (+2.3%). Fastweb
contributes CHF 18 million (+2.1%) to this figure. The
EBITDA reported by Swisscom Switzerland remained
virtually stable (CHF +8 million or +0.2%). The largest
effect on Group EBITDA results from the reconciliation of
pension costs. Because the interest rate relevant for IFRS
measurement increased, the IFRS pension costs for the
full year 2023 decreased by CHF 90 million compared to
the previous year.

Net income increased by 6.7% year-on-year to CHF 1,711
million. The higher operating income before depreciation
and amortisation (EBITDA) is offset by higher depre cia tion
and amortisation and a deterioration in the financial result.

Capital expenditure was again substantial at CHF 2,292
million. This is 0.7% lower than in the previous year and
relates primarily to network infrastructure in the Swiss
core business and at the Italian subsidiary Fastweb. The
generated free cash flow of CHF 1,480 million finances
the total dividend of CHF 1,140 million and further
reduced net debt. Net debt improved in relation to EBITDA
to 1.5x (previous year: 1.7x). The single-A credit rating
confirmed by both rating agencies (Moody’s and Standard
& Poor’s A) and the further increase in the equity ratio to
47% underline Swisscom’s solid financial position.

Swisscom expects revenue of around CHF 11.0 billion,
EBITDA of CHF 4.5–4.6 billion and capital expenditure of
around CHF 2.3 billion for 2024. Subject to achieving its
targets, Swisscom plans to propose payment of an
unchanged attractive dividend of CHF 22 per share for the
2024 financial year at the 2025 Annual General Meeting.

Segment results

In CHF million, except where indicated

2023

2022

Change

in %

Revenue 1

Residential Customers

Business Customers

Wholesale

Infrastructure & Support Functions

Intersegment elimination

Swisscom Switzerland

Fastweb

Other Operating Segments

Intersegment elimination

Total revenue

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

Total (EBITDA)

4,502

3,098

542

(69)

8,146

2,561

1,075

(710)

4,527

3,129

551

(69)

8,209

2,493

1,038

(689)

11,072

11,051

2,979

1,358

326

(963)

3,701

776

153

(45)

2,979

1,381

289

(1,165)

(1)

3,483

857

160

(53)

(41)

4,622

4,406

(25)

(31)

(9)

–

(63)

(21)

–

(23)

202

218

(81)

(7)

(4)

216

–0.6%

–1.0%

–1.6%

2.8%

0.0%

–0.8%

2.7%

3.6%

3.0%

0.2%

0.0%

–1.7%

12.8%

–17.3%

6.3%

–9.5%

–4.4%

9.8%

4.9%

1 Swisscom has changed the revenue recognition for roaming contracts with

2 Operating income of segments includes ordinary employer contributions as

minimum guarantees as of 1 January 2023 and made adjustments to the financial
management. The previous year’s figures have been adjusted accordingly. For
further information, see note 1.1 to the financial
statements.

Swisscom’s reporting focuses on the operating divisions
Swisscom Switzerland and Fastweb. The other business
divisions are grouped together under Other Operating
Segments.

the

comprises

customer
Swisscom Switzerland
segments Residential Customers, Business Customers
and Wholesale, 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

pension fund expense. The difference to the pension cost according to IAS 19 is
recognised as a reconciliation item.

Residential Customers, Business Customers and
Wholesale correspond to a contribution margin before
net work costs.

Fastweb operates in Italy and consists of the Residential
Customers, Business Customers and Wholesale
segments.

Other Operating Segments primarily comprises Swisscom
Directories Ltd (localsearch), Swisscom Broadcast Ltd
(radio transmitters) and cablex Ltd (network construction
and maintenance).

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Swisscom Switzerland

In CHF million, except where indicated

2023

2022

Change

in %

Revenue and operating income before depreciation
and amortisation (EBITDA)

Telecom services

IT services

Merchandise

Wholesale

Revenue other

External revenue

Intersegment revenue

Revenue

Direct costs

Indirect costs

Operating expense

EBITDA

Margin as % of revenue

Operating free cash flow proxy

EBITDA

Lease expense

EBITDA after lease expense (EBITDAaL)

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

5,377

1,184

835

530

160

8,086

8,146

(1,707)

(2,738)

(4,445)

3,701

45.4

3,701

(225)

3,476

(1,690)

1,786

1,226

2,006

1,537

6,202

692

5,449

1,152

860

540

148

8,149

8,209

(1,738)

(2,988)

(4,726)

3,483

42.4

3,483

(218)

3,265

(1,698)

1,567

1,322

2,027

1,571

6,173

679

13,256

12,822

(72)

(25)

(10)

(63)

–

(63)

250

281

218

(7)

211

219

(96)

(21)

(34)

434

–1.3%

2.8%

–2.9%

–1.9%

8.1%

–0.8%

0.0%

–0.8%

–1.8%

–8.4%

–5.9%

6.3%

3.2%

6.5%

–0.5%

14.0%

–7.3%

–1.0%

–2.2%

0.5%

1.9%

3.4%

Swisscom Switzerland’s revenue fell slightly by 0.8%.
Telecoms services account for the largest share of revenue
(66%). The other main revenue items are IT services (15%),
merchandise (10%) and wholesale business (7%).

Competitive and price pressure drove down revenue
from telecom services. This revenue fell by CHF 72 million
or 1.3%, meaning that the drop is less pronounced for the
second year in a row now. In the Residential Customers
segment, Swisscom virtually stabilised its revenue (2023:
–0.5%; 2022: +0.2%). This is due primarily to the following
measures: the successful launch of a new product
portfolio (Swisscom blue) in 2022, reduced promotions
and strong customer growth for the secondary brand
Wingo. Revenue from merchandise dipped by 2.9%.
Compared with the previous year, Swisscom sold fewer
smartphones in the Residential Customers segment and
realised fewer customer projects
in the Business
Customers segment. In a market environment that

remains very intensive and in which Swisscom’s market
shares are on the decline in the areas of mobile
communications, broadband and in the highly saturated
TV market, the number of connections for broadband
(–1.0%) and TV (–2.2%) dropped, while the number of
connections for mobile telephony increased slightly
In mobile communications, the customer
(+0.5%).
structure changed due to an increase in postpaid lines
(+129,000) and a similarly pronounced decrease in
prepaid lines (–100,000). In the Residential Customers
segment, the share of secondary and third-party brands
rose from 28% to 31%. The number of connections for
fixed network telephony dropped (–7.3%) as a result of its
substitution with mobile telephony.

Revenue from IT services rose by CHF 32 million (+2.8%).
Just over one-third of this figure can be attributed to the
takeover of Axept Business Software AG. Swisscom has
a strong position as a full-service provider and customer

satisfaction is high. Demand for cloud, security, IoT and
SAP solutions and business applications continued to
grow. The decline in wholesale revenue by CHF 10 million
(–1.9%) resulted in part from the loss of MVNO revenue
due to the loss of a customer and in part from lower
income for the termination of calls.

Operating expense fell by 5.9%. Direct costs dropped by
CHF 31 million (–1.8%) due primarily to the decline in
revenue from merchandise. The drop in indirect costs by
CHF 250 million (–8.4%) was influenced by non-recurring
items. In the year under review, provisions for legal
proceedings amounting to CHF 64 million were reversed,
whereas in the prior year, provisions amounting to CHF
157 million had been recognised. Provisions for
termination benefits of CHF 6 million were also set up
(previous year: reversal of CHF 5 million). Excluding these
non-recurring items, indirect costs fell by CHF 40 million
(–1.4%). In telecommunications, cost savings of CHF 60
million were realised through efficiency improvement
measures and optimised network maintenance. By
contrast, indirect costs in the solutions business rose by
CHF 20 million due to the growth in business. Headcount
in full-time equivalents increased by 434 full-time equiv-

Fastweb

alents (+3.4%). In the Business Customers segment, the
headcount increased due to business growth and the
acquisition of Axept Business Software AG, whereas in
Infrastructure & Support Functions, it rose due to
additional resources and insourcing efforts in IT. Operating
income before depreciation and amortisation (EBITDA)
improved by 6.3%. After adjustments to reflect non-
recurring items, EBITDA remained virtually stable (+0.2%).

Capital expenditure came to CHF 1,690 million in the
reporting year, putting it at a high level yet again. A large
part of the capital expenditure was once again directed
towards the expansion and upgrading of transport
networks, the aim being to improve network stability,
reduce complexity and enable further cost savings in the
future. Swisscom continued to expand the fibre-optic
network. Thanks to FTTH technology, 46% of homes
were connected to the fibre-optic network at the end of
2023. 83% of the population have 200 Mbit/s
connections. The expansion of FTTS technology, which
reaches 92% of the population with 80 Mbit/s was
concluded in the prior year. Swisscom’s mobile phone
network covers 81% of the population thanks to the 5G+
expansion.

In EUR million, except where indicated

2023

2022

Change

in %

Revenue and operating income before depreciation
and amortisation (EBITDA)

Residential Customers

Corporate customers

Wholesale

External revenue

Intersegment revenue

Revenue

Operating expense

EBITDA

Margin as % of revenue

Operating free cash flow proxy

EBITDA

Lease expense

EBITDA after lease expense (EBITDAaL)

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

1,163

1,134

330

2,627

2,633

(1,835)

798

30.3

798

(55)

743

(623)

120

2,601

648

3,509

3,157

1,145

1,015

315

2,475

2,482

(1,628)

854

34.4

854

(57)

797

(616)

181

2,683

458

3,087

3,039

119

152

(1)

151

(207)

(56)

(54)

(7)

(61)

(82)

190

422

118

1.6%

11.7%

4.8%

6.1%

–14.3%

6.1%

12.7%

–6.6%

–3.5%

–6.8%

1.1%

–33.7%

–3.1%

41.5%

13.7%

3.9%

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Fastweb’s revenue rose year-on-year by 6.1% or EUR 151
million to EUR 2,633 million. Competition remained
fierce. The customer base in the fixed-network business
(retail and wholesale) grew by 3.4% overall to 3.25
million. While the customer base in the retail segment
fell by 3.1% to 2.60 million due to the challenging market
environment, the number of ultra-fast broadband
connections provided by Fastweb to other operators
(wholesale business) rose by 41.5% to 648,000. Among
end customers, the share of ultra-fast broadband
connections increased by 3 percentage points to 89.5%.
The number of mobile access lines increased by 422,000
(+13.7%) to 3.51 million, with bundled offerings contin-
uing to play an important role here. 42,5% of broadband
customers used a bundled offering combining fixed
network and mobile. Revenue from residential customers
increased by 1.6% or EUR 18 million to EUR 1,163 million
as a result of the greater mobile customer base. Revenue
from business customers increased by 11.7% or EUR 119
million to EUR 1,134 million driven by the strong market

Other Operating Segments

position in the area of public administration in particular.
Revenue from wholesale business increased by 4.8% or
EUR 15 million to EUR 330 million due to the higher
number of subscribers.

income before
Operating expense and operating
depreciation and amortisation (EBITDA) were hit by the
recognition of provisions for legal proceedings in the
amount of EUR 13 million in 2023 and costs of EUR 61
million in connection with a change in the fixed wireless
access (FWA) strategy. After adjustments to reflect this
effect, operating expense increased by EUR 133 million
(+8.2%) and EBITDA by EUR 18 million (+2.1%), largely
due to revenue growth. Capital expenditure was once
again at a high level in the reporting year. This was
aimed primarily at further developing the company’s
own high-performance networks and at cloud and
cybersecurity services. Headcount increased by 3.9% or
118 FTEs to 3,157 FTEs as the growth created a need for
more personnel.

In CHF million, except where indicated

2023

2022

Change

in %

Revenue and operating income before depreciation
and amortisation (EBITDA)

External revenue

Intersegment revenue

Revenue

Operating expense

EBITDA

Margin as % of revenue

Operating free cash flow proxy

EBITDA

Lease expense

EBITDA after lease expense (EBITDAaL)

Capital expenditure

Operating free cash flow proxy

Full-time equivalent employees

Headcount

430

645

1,075

(922)

153

14.2

153

(11)

142

(40)

102

417

621

1,038

(878)

160

15.4

160

(10)

150

(34)

116

(44)

(7)

(1)

(7)

(1)

(8)

(6)

3.1%

3.9%

3.6%

5.0%

–4.4%

–7.7%

–4.4%

10.0%

–5.3%

17.6%

(14)

–12.1%

3,316

3,296

0.6%

Revenue in Other Operating Segments was up by 3.6%
or CHF 37 million year-on-year to CHF 1,075 million, due
primarily to higher revenue for cablex construction
services. Operating income before depreciation and
amortisation (EBITDA) fell by 4.4% or CHF 7 million to
CHF 153 million due to a lower earnings contribution
made by localsearch (advertising and directory platform
business for Swiss SMEs). Accordingly, the profit margin
fell to 14.2% (prior year: 15.4%). Headcount was at 3,316
full-time equivalents, almost on a par with the previous
year (+0.6%).

Reconciliation of pension cost
and intersegment elimination
The reconciliation 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.
Because the interest rate relevant for IFRS measurement
has increased, the reconciliation item for pension cost
produced a positive EBITDA contribution of CHF 37 million
in 2023 (prior year: CHF –53 million).

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)

2023

4,622

(2,126)

(291)

2,205

(67)

(44)

(19)

–

2,075

(364)

1,711

33.03

2022

4,406

(2,104)

(262)

2,040

(58)

(44)

(5)

1,963

(360)

1,603

30.93

Change

216

(22)

(29)

165

(9)

–

(49)

112

(4)

108

2.10

in %

4.9%

1.0%

11.1%

8.1%

15.5%

0.0%

–100.0%

5.7%

1.1%

6.7%

6.8%

Net income rose by CHF 108 million or 6.7% year-on-year
to CHF 1,711 million. The higher operating income before
depreciation and amortisation (EBITDA) (CHF +216 mil-

lion) was partly offset by higher depreciation and amor-
ti sation (CHF –51 million) and a poorer financial result
(CHF –58 million).

Income taxes

In CHF million, except where indicated

Switzerland

Italy

Other

Total

2023 financial year

Income before income taxes

Income tax expense

Effective income tax rate

Income taxes paid

2022 financial year

Income before income taxes

Income tax expense

Effective income tax rate

Income taxes paid

2,040

346

17.0%

226

1,779

316

17.8%

361

(1)

63.3%

–20.0%

168

25.0%

12.5%

–

2,075

364

17.5%

313

1,963

360

18.3%

378

The effective income tax rate is 17.5% (prior year: 18.3%).
Swisscom anticipates a future effective consolid ated tax
rate of 19%. The CHF 65 million drop in income taxes

paid to CHF 313 million was attrib utable to back pay-
ments made in the prior year for previous financial years.

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Cash flows

In CHF million

Operating income before depreciation and amortisation (EBITDA)

Lease expense

EBITDA after lease expense (EBITDAaL)

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

Net expenditures for company acquisitions and disposals

Other changes 1

Decrease in net debt

1 Includes foreign currency effects, fair value adjustments and non-cash changes in

net debt positions.

2023

4,622

(288)

4,334

(2,292)

2,042

(133)

(31)

(77)

(313)

(8)

1,480

(1,140)

(63)

303

2022

4,406

(286)

4,120

(2,309)

1,811

(64)

(60)

(378)

(9)

1,349

(1,140)

(69)

192

332

Change

216

(2)

214

231

(69)

(80)

(17)

131

–

(166)

(29)

The operating free cash flow proxy rose by CHF 231
million year-on-year to CHF 2,042 million, mainly due to
the improved operating income before depreciation and
amortisation (EBITDA). Free cash flow rose by CHF 131

million, mainly due to the lower income taxes paid. The
free cash flow of CHF 1,480 million financed the dividend
totalling CHF 1,140 million, the business acquisitions
and the 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 revenue

2023

571

466

271

382

2022

564

475

277

382

1,690

1,698

606

(44)

2,292

1,685

607

20.7

619

(42)

2,309

1,688

621

20.8

Change

(9)

(6)

–

(8)

(13)

(2)

(17)

(3)

(14)

(0.1)

in %

1.2%

–1.9%

–2.2%

0.0%

–0.5%

–2.1%

17.6%

4.8%

–0.7%

–0.2%

–2.3%

The capital expenditure of CHF 2,292 million or 21% of
revenue once again reached a substantial amount in the
reporting year. The share of investments in Switzerland
came to 74% thanks to an amount of CHF 1,685 million.

Swisscom Switzerland’s investments were virtually on
a par with the previous year (–0.5%) at CHF 1,690 mil-
lion. A large part was again used for neighbourhood
connections and for the expansion and upgrade of
transport networks. While investments in the expan-

sion of the fibre-optic network remained virtually
stable overall, their composition changed. The expan-
sion of FTTH technology moved up a gear, meaning
that more was invested in this area, whereas the
expansion of FTTS technology had already been
concluded in the prior year.

The investments made by Fastweb came to EUR 623 mil-
lion in local currency terms and are therefore virtually at
the same level as the previous year (+1.1%).

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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 in %

Operating assets
Net operating assets were almost unchanged at CHF 19.1
billion (+0.8%). The lion’s share of the goodwill totalling
CHF 5.2 billion is attributable to Swisscom Switzerland
(CHF 4.3 billion). 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 valu-
ation risk of this goodwill item is very low. The carrying
amount of goodwill for Fastweb is CHF 0.5 billion. In total,
the carrying amount of Fastweb’s net assets amounts to
EUR 3.4 billion (CHF 3.1 billion).

Post-employment benefits
The net defined benefit obligations in accordance with
IFRS provisions amount to CHF 10 million (previous year:
CHF 11 million). According to Swiss accounting standards
(Swiss GAAP FER), the Swisscom pension fund has a
funding surplus of CHF 1.5 billion and a funding ratio of
114.5% as per the provisional financial statements for
2023 (previous year: 108.2%). Due to different assump-
tions and methods, the valuation according to IFRS
results in a surplus of only CHF 0.4 billion. Due to specific
IFRS regulations, most of the surplus was not capitalised.

31.12.2023

31.12.2022

11,059

10,811

Change

248

1,737

5,172

1,972

2,143

130

(1,611)

(1,263)

(81)

(141)

19,117

(7,071)

(10)

(875)

461

1,741

5,172

1,992

2,255

131

(1,674)

(1,159)

(85)

(218)

18,966

(7,374)

(11)

(829)

419

11,622

11,171

47.0

45.4

(4)

–

(20)

(112)

(1)

(104)

151

303

(46)

451

1.6

The pension cost in accordance with IFRS in 2023 was
CHF 36 million lower than regulatory employer contrib-
utions. Because the interest rate relevant for IFRS mea-
sure ment has increased significantly, the IFRS provision
expense in 2023 decreased by CHF 94 million compared
with 2022.

Equity
Swisscom has equity of CHF 11.6 billion and an equity
ratio of 47.0%. Equity increased year-on-year by CHF 0.5
retained earnings. The
billion, mainly due
determination of distributable reserves is based on the
financial statements of Swisscom Ltd (separate financial
statements in accordance with the Swiss Code of
Obligations) and not on the consolidated financial state-
ments in accordance with IFRS. The equity of Swisscom
Ltd in the 2023 financial statements is CHF 7.0 billion.
The difference as compared to the equity reported in the
consolidated balance sheet is largely due to earnings
retained by subsidiaries and different accounting
methods.

Net debt

In CHF million

Debenture bonds

Bank loans

Private placements

Other financial liabilities

Lease liabilities

Total financial liabilities

Cash and cash equivalents

Listed debt instruments

Other financial assets

Net debt

Debt ratio

Net debt

EBITDA

Ratio net debt/EBITDA

31.12.2023

31.12.2022

4,789

4,886

267

322

287

1,915

7,580

(148)

(258)

(103)

7,071

4,622

1.5

512

322

282

1,911

7,913

(121)

(285)

(133)

7,374

4,406

1.7

Change

(97)

(245)

–

(333)

(27)

(303)

216

(0.2)

The ratio of net debt to EBITDA had improved to 1.5x
at the end of 2023 (previous year: 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 2023, the proportion of fixed-interest-
bearing financial liabilities was 82%, the average interest
cost of all financial liabilities was 1.1% and the average
remaining term to maturity was 5.0 years. Swisscom also
has two lines of credit totalling CHF 2.2 billion, which have
not been used. In 2024, bank loans and bonds totalling
CHF 0.7 billion will become due for repayment.

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Statement of added value

In CHF million

Added value

Revenue

Switzer-
land

Other
countries

2023

Total

Switzer-
land

Other
countries

2022

Total

8,516

2,556

11,072

8,566

2,485

11,051

Capitalised self-constructed assets and other income

Direct costs

Other operating expense 1

Lease expense

596

(1,730)

(1,005)

(234)

(995)

(709)

(54)

692

513

(2,725)

(1,753)

(1,714)

(1,144)

(288)

(229)

Depreciation and amortisation 2

(1,486)

(585)

(2,071)

(1,483)

155

(873)

(679)

(57)

(594)

668

(2,626)

(1,823)

(286)

(2,077)

(6,144)

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

(3,859)

(2,247)

(6,106)

(4,096)

(2,048)

4,657

309

4,966

4,470

437

4,907

2,411

283

306

(181)

4,785

2,717

2,396

290

330

1,141

530

4,785

256

(218)

4,689

2,652

359

1,141

479

4,689

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. impairment losses and amortisation of

5 Public sector: current income tax expense, capital taxes and other taxes not based

acquisition-related intangible assets such as customer relations.

on income. Excl. payments for VAT and mobile communication frequencies.

3 Other non-operating result: financial result excl. net interest expense, result of

6 Company: including changes in deferred income taxes and defined benefit obliga-

equity-accounted investees, impairment losses and amortisation of acquisition-re-
lated intangible assets.

tions.

Thanks to a modern, high-performance network infra-
struc ture and a comprehensive, needs-driven service
offer ing, Swisscom makes an important contrib ution to
Switzerland’s competitiveness and economic success.

Of the consolidated operating added value of CHF 5.0 bil-
lion, Swisscom generated 94% or CHF 4.7 billion in Switzer-
land. Compared to the previous year, operating added

value in Switzerland rose by CHF 0.2 billion or 4.2%. The
added value per FTE in Switzerland was CHF 293,000
(previous year: CHF 271,000).
capital
expenditure, the purchasing volume in the Swiss business
was around CHF 4.3 billion in the reporting year (previous
year: CHF 4.5 billion). In addition to direct added value,
purchases from suppliers created significant indirect
added value for Switzerland’s economy.

Including

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Financial outlook

Key figures or as noted

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

2023
reported

2024
outlook

CHF 11,072 million

~ CHF 11.0 billion

CHF 8,511 million

~ CHF 8.5 billion

EUR 2,633 million

EUR 2.6–2.7 billion

CHF 4,622 million

CHF 4.5–4.6 billion

CHF 3,846 million

~ CHF 3.7 billion

EUR 798 million

~ EUR 0.9 billion

CHF 2,292 million

~ CHF 2.3 billion

CHF 1,686 million

~ CHF 1.7 billion

EUR 623 million

~ EUR 0.6 billion

1 EBITDA after lease expense (EBITDAaL) 2023: CHF 4,334 million; EBITDaL guidance

2024: CHF 4.2–4.3 billion.

2 Swisscom w/o Fastweb.
3 Exchange rate CHF/EUR 0.93 (2023: CHF/EUR 0.973).

Subject to achieving its targets, Swisscom will propose
payment of an unchanged, attractive dividend of CHF 22
per share for the 2024 financial year at the 2025 Annual
General Meeting.

Revenue and EBITDA Switzerland and Fastweb
In million

8,600

8,619

8,511

3,586

2,392

3,549

2,482

3,846

2,633

826

854

798

Revenue

EBITDA

Revenue

EBITDA

Revenue

EBITDA

2021

2022

2023

Switzerland w/o Fastweb in CHF

Fastweb in EUR

High-performing
teams

Swisscom focuses on continuous development,
fosters collaboration and creates an inspiring work
environment so that employees can surpass
themselves and perform to the best of their ability.

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Capital market

Market value
CHF 26.2 billion

Swisscom market capitalisation
at the end of 2023.

Total shareholder return
+4.2%

Credit rating
Single-A rating

Total shareholder returns achieved
by the Swisscom share in 2023.

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

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 on Swisscom shares over the last five years

Total shareholder return SMI

Total shareholder return SMI over the last five years

Total shareholder return STOXX Europe Telco 600 (in EUR)

Total shareholder return STOXX Europe Telco 600 (in EUR) over the last five years

31.12.2023

31.12.2022

51.802

506.00

619.40

501.20

26,212

22.00

4.3

(0.1)

3.8

4.2

32.9

6.1

54.1

8.9

1.1

51.802

506.60

590.40

443.40

26,243

22.00

4.3

(1.6)

(16.7)

(17.7)

2.5

21.7

(14.3)

33.8

(14.0)

(14.8)

CHF

At the end of 2023, the Swisscom share price was
virtually unchanged against the closing price at the end
of the previous year. The benchmark indices showed
better performance in 2023. Both the SMI and the
STOXX Europe Telco 600 (EUR) rose by 3.8%. The
Swisscom share offers an attractive dividend yield of
4.3%. The total shareholder return (TSR) based on the
increase in the share price and distributions over the last
five years was also positive at 33%.
Y 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 2023, 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 77% of the free cash flow for the reporting

year. Since the initial public offering in 1998, the total
amount distributed has equated to CHF 38 billion and
the average annual total shareholder return (TSR) has
equated to 6.2% (including reinvestment).

Credit ratings and financing

Swisscom has good credit ratings with rating agencies
Standard & Poor’s and Moody’s. Moody’s increased
Swisscom’s rating to ‘A1’ (previously ‘A2’) in 2023. Moody’s
referred to the company’s conservative and reliable
financial policy as the motivation for the upgrade.
Standard & Poor’s confirmed the previous ‘A’ rating in 2023.
Swisscom aims to maintain its single-A credit ratings.
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 2023.

Value-oriented business management

Key performance indicators for planning and managing
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 companies)
and with its own figure for the prior year. The members

of the Board of Directors and Group Executive Board
are paid a portion of their remuneration in the form of
Swisscom shares. They are also subject to a minimum
shareholding requirement. Variable remuneration
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

31.12.2023

31.12.2022

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

26,212

7,071

875

(461)

33,710

4,622

7.3

26,243

7,374

829

(419)

34,041

4,406

7.7

(31)

(303)

(1)

(42)

–

(331)

216

(0.4)

Swisscom’s enterprise value fell by CHF 0.3 billion (–9.7%)
to CHF 33.7 billion in 2023. Market capitalisation
remained unchanged year-on-year and net debt fell by
CHF 0.3 billion. The enterprise value/EBITDA ratio of 7.3x
is lower than the prior-year figure of 7.7x. This is due to
the increase in EBITDA. Measured against this ratio,
Swisscom’s relative valuation is well above the average

for comparable companies in Europe’s telecoms sector.
This high relative valuation is supported by Swisscom’s
In
solid market position and attractive dividend.
addition, the lower interest rates and lower corporate
income tax rates in Switzerland compared with other
European countries have a positive effect on
its
enterprise value.

Share performance 2023
in CHF

630

570

510

450

2
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1

3
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3
2
9
0

3
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1

3
2
1
1

3
2
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1

Swisscom

SMI (indexed)

STOXX Europe 600 Telcos (in CHF, indexed)

CHF 506
Closing price
Swisscom share
31.12.2023

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Risks

Competitive dynamics
Revenue
development 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
digitalisation and IT services, such as cloud and IT security
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. Further
information on risks can be found in the report on non-
financial matters.
H See report pages 58–81

Risk factors

infrastructure. Swisscom

Competitive dynamics in the telecoms market
Competitive dynamics are currently being driven by
infrastructure providers and service providers without
their own network
is
countering this pressure and the development of
revenue from the traditional telecoms business by
transforming the company, as well as through constant
innovation. Megatrends such as increasing connectivity,
customisation 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 compre-
hensive 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 categorise new, potentially disruptive devel-

op ments and to model possible scenarios in a timely
manner. Swisscom also produces regular analyses of the
economic and regulatory environment. It also examines
the activities of global internet corporations in greater
depth to identify relevant changes and respond with
appropriate measures. To respond to changes in the
market, Swisscom consistently focuses on customer
needs when transforming its own company and opti-
mises or adapts its processes and its 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 Commission
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 regula tions, calls
for an effective compliance manage ment 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 in general. Changes in the geopolitical
situation have brought the need to protect critical
infrastructure to policymakers’ attention. A new motion
is calling for the foundations to be laid for a potential
ban on equipment from countries where the state exerts
influence over industry. To enable it to respond appropri-

ately to geopolitical developments, Swisscom reviews
and implements measures on an ongoing basis. It also
pursues a successful hedging strategy, thereby minimis-
ing the risk of losses that can arise as a result of fluctuat-
ing foreign exchange rates.

IP-based

(Internet Protocol-based)

Increasing bandwidth in the access network
Customer demand for broadband access is growing
rapidly, as is the growing popularity of mobile devices
services
and
(smartphones, IPTV, OTTs, etc.). Swisscom faces tough
competition from cable companies and other network
operators 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 population 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 network 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
jeopardise projected revenue growth as a result. In
particular, risks may arise in connection with the entry of
new competitors in the market or market consolidation.
Fastweb is countering this pressure by constantly adapt-
ing its services, organisation, processes and partner-
ships. Changes in the legal and regulatory environment
can have a negative impact on business 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

the

and

complexity

viruses, hacking activities), power outages, power short-
and
ever-growing
ages
interdependence of modern technologies can cause
damage or interruption to operations. Built-in redundancy,
contingency plans, deputising arrange ments, alternative
locations, careful selection of suppliers and other mea-
sures are designed to ensure that Swisscom can deliver
the level of service that customers expect at all times. As
a systemically important company, Swisscom also wants
to do its part to minimise the risk of a power shortage.

in additional costs and

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
services, result
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
oppor tu nities they bring lead not only to opportunities,
but also to new risks. Despite the fact that preventing
cyber-attacks is becoming 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
principle and introduced limits for base stations in sensi-
tive areas such as homes, schools, hospitals and perma-
nent workplaces that are ten times stricter than those
prescribed by the WHO. The public’s wary attitude
towards 5G, particularly if questions arise concerning
locations for mobile communication antennas, is imped-
ing Swisscom’s network 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.

General information ____________ About this report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Sustainability strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

Business model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Identification of material non-financial matters . . . . . . 62

Environmental matters _________ Climate protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Energy efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

Circular economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

Employee matters _____________ Labour market skills and training . . . . . . . . . . . . . . . . . . . . .69
Diversity and equal opportunities . . . . . . . . . . . . . . . . . . . 70

Social matters ________________ Data protection and data security . . . . . . . . . . . . . . . . . . . 72
Network access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

Youth media protection and media skills . . . . . . . . . . . . . . 74

Respect for human rights ________ Fair supply chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

Anti-corruption _______________ Ethical behaviour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

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General information

About this report

Reporting on non-financial matters
In accordance with Article 964b of the Swiss Code of
Obligations (CO), Swisscom has to report on non-
financial matters for the first time in the 2023 financial
year. This report contains information on environmental
matters (especially the CO2 targets), social matters,
employee contributions, human rights and anti-corrup-
tion matters, which are required to understand business
performance, operating results, the company’s position
and the impact that the company’s activities has on
these non-financial matters.

The Board of Directors of Swisscom Ltd approved this
report on 7 February 2024. The report is subject to
approval by the shareholders of Swisscom Ltd at its
Annual General Meeting to be held on 27 March 2024. It
is published electronically on the Swisscom website.
Y See www.swisscom.ch/report2023

fully consolidated companies as

The report on non-financial matters covers all controlled
domestic and foreign companies. Its reporting includes
the same
the
consolidated financial statements in accordance with
IFRS. The list of Group companies is shown in Note 5.4 of
the notes to the consolidated financial statements.
H See report pages 183–184

In addition to the report on non-financial matters,
Swisscom’s sustainability reporting also includes a
Sustain ability Impact Report on Swisscom’s business
activities in Switzerland. The Italian subsidiary Fastweb
also prepares and publishes a sustainability report. Both
sustainability reports have been prepared in accordance
with the international GRI (Global Reporting Initiative)
framework. The requirements set out by the Sustain-
ability Accounting Standards Board (SASB) have also
been applied to reporting in Switzerland. The two
sustain ability reports are verified by independent audit-
ing companies.
Y See www.swisscom.ch/sir2023

Y See www.fastweb.it/corporate

Reporting on climate issues
The Swiss Ordinance on Climate Disclosures (Verordnung
über die Berichterstattung über Klimabelange) entered
into force on 1 January 2024. It provides for the imple-
mentation of the internationally recognised recommen-
dations of the Task Force on Climate-related Financial
Disclosures (TCFD) as a binding requirement for major

Swiss companies. The reporting covers the impact of
climate change on the corporate sector and the impact
of companies’ activities on climate change.

Reporting on compliance with due diligence
requirements regarding conflict minerals and
child labour
In accordance with Article 964j of the Swiss Code of
Obligations, companies have to report on compliance with
due diligence requirements regarding conflict minerals
and child labour for the first time in the 2023 financial year.
The Swiss Ordinance on Due Diligence and Transparency in
relation to Minerals and Metals from Conflict-Affected
Areas and Child Labour (DDTrO), which came into force on
1 January 2022, governs the due diligence and reporting
obligations to be met by the company. Swisscom does not
import or process any conflict minerals or metals defined
in the Act and the Ordinance and is therefore exempt from
the reporting obligations regarding minerals and metals.
Reporting on compliance with due diligence requirements
regarding child labour is integrated into the ‘Fair supply
chain’ chapter.
H See report pages 76–79

Sustainability strategy

Swisscom has formulated its sustainability strategy for
the period up to 2025, which is entitled ‘Responsibility
means moving forward – now not someday’. It wants to
play a leading role as a sustainable company and address
the challenges, however large and complex they may be,
not only with a long-term strategy, but also directly. In
addition to the expectations of stakeholders and Swiss
legislation, the United Nations Agenda 2030 with its
17 Sustainable Development Goals (SDGs) defines the
framework of the Swisscom Sustainability Strategy.

Governance

Swisscom relies on governance that is heavily based on
the specifications of the Telecommunications Enterprises
Act (TEA) and on its own ESG (Environmental, Social and
Governance) strategy.

Corporate responsibility governance
Strategic goals of the Federal Council
Based on the Telecommunications Enterprise Act (TEA),
the Federal Council defines the goals which the
Confederation, as principal shareholder of Swisscom,

aims to achieve in the next four years. During the current
target period, which runs until 2025, the Confederation
expects Swisscom to pursue a corporate strategy that is,
to the extent economically possible, committed to
sustainable and ethical principles. In this context, the
reduction of greenhouse gas emissions is of particular
importance. In addition, the strategy should take into
account the concerns of the different parts of the
country, where operationally appropriate.
Y See www.swisscom.ch/ziele_2022-2025

Incorporation in the Group strategy
The Articles of Incorporation set out the principle that
Swisscom Ltd aims for sustainable value creation in its
activities. As a result, the Board of Directors is committed
to pursuing a Group strategy geared towards sustain ability.
Y See www.swisscom.ch/basicprinciples

indicators).

Organisation and responsibility
Board of Directors of Swisscom Ltd
The Board of Directors of Swisscom Ltd approves the ESG
strategy (environmental, social and governance strategy)
in accordance with the Organisational Rules and defines
the material non-financial matters for the Group (which
includes defining the performance
It
monitors the implementation of the measures and the
risks. It is also responsible for the supply chain policy. The
Board of Directors has delegated some reporting and
monitoring duties to the Audit & ESG Reporting
Committee. This committee formulates positions on
business matters which lie within the decision-making
authority of the Board of Directors and has the final say
on those business matters for which it has the decision-
making authority. The Board of Directors and the Audit &
ESG Reporting Committee are periodically informed
about the key performance indicators from the focus
areas of the sustainability strategy.

Details on the other activities and responsibilities of the
Board of Directors and the Audit & ESG Reporting
Committee relating to ESG matters are provided in the
Organisational Rules and in Annex 1.2, the rules of
procedure of the Audit & ESG Reporting Committee.
Y See www.swisscom.ch/basicprinciples

CEO of Swisscom Ltd
The Board of Directors of Swisscom Ltd has delegated
responsibility for implementing the Group strategy to the
CEO. The latter can delegate tasks and competences to
subordinate bodies. The CEO defines the targets and
measures for implementing the sustainability strategy.
He is supported in this task by the members of the Group
Executive Board, primarily by the Head of Group
Communications & Responsibility. If necessary, a working
group consisting of members of the Group Executive

Board is convened for specific ESG issues. In the ethics
working group, the CEO – together with the Head of
Group Communications & Responsibility, as the individual
responsible for ethics, and the Head of Group Human
Resources – deals with corporate ethics issues as required.

Group Executive Board
Swisscom’s Group Executive Board has defined the
main goals for the company and sub-goals per division
as part of the sustainability strategy. It also convenes
at least twice a year to discuss the further development
and implementation of the defined measures. Each
November, the Group Executive Board adopts the
roadmap and sub-goals (benchmarks) for the coming
year. Members of the Group Executive Board, as well
as the Head of Group Communications & Responsibility,
are sponsors for the strategic action areas for their
divisions. Together with their division management,
they are responsible for implementing the sustain-
ability strategy in the line units and for deciding on
measures. This ensures that the action areas of the
sustainability strategy are binding and firmly
embedded in the company.

Business model

Swisscom is the market leader in the Swiss telecoms
sector. It employs a total of around 19,700 employees in
full-time positions and in 2023 generated revenue of CHF
11.1 billion, along with an operating income before
depreciation and amortisation (EBITDA) of CHF 4.6
billion. Swisscom achieves over 75% of revenue through
its business activities in Switzerland. Since the acqui-
sition of Fastweb in 2007, Swisscom has had operations
abroad, particularly in Italy.
Fastweb is a leading
alternative provider of broadband and mobile phone
services for residential, business and wholesale cus-
tomers in Italy. In Switzerland, Swisscom provides its
customers with modern, convergent mobile communi-
cations and fixed telephone network infrastructure. For
residential customers, Swisscom offers all products and
services for mobile communications, internet, TV and
fixed network telephony nationwide. On behalf of the
Confederation, it also ensures basic service provision
and provides all sections of the population across
Switzerland with a basic range of telecommunications
services. Swisscom offers its business customers a
comprehensive range of IT services. The portfolio
comprises cloud, outsourcing, workplace and
IoT
solutions, as well as mobile phone solutions for mobile
working and communication, networking solutions,
location networking, business process optimisation, SAP
solutions, security and authentication solutions, data
and AI consulting, and services tailored to the banking,

insurance and healthcare industries. Further information
on Swisscom’s business activities can be found in the
introduction.
H See report pages 1–11

spec tive. Fastweb’s sustain ability reporting for its business
activities in Italy includes other non-financial matters
identified as material that are not included in Swisscom’s
consolidated non-financial report.

Identification of material non-
financial matters

The material non-financial matters presented in the report
are identified based on the principle of dual materiality.
According to the outside-in perspective, matters considered
to be material are those that are necessary to arrive at an
understanding of the company’s business performance,
operating results and position (financial materiality). In
accordance with the inside-out perspective, the report
presents the material impact of business activities on the
environment and people (impact matters). A large number
of issues are considered material from both perspectives.
The materiality analysis is carried out from a Group per-

When developing its sustainability strategy and sustain-
ability reporting in accordance with the GRI framework,
Swisscom conducts regular trend analyses, bench mark-
ing compa ri sons and materiality analyses. It involves the
rele vant stakeholder groups in the process and engages
in structured dialogue with them. Further information
on the identification of material matters can be found in
the sustainability reports of Swisscom in Switzerland
and Fastweb.
Y See www.swisscom.ch/sir2023

Y See www.fastweb.it/corporate

t The material topics for Swisscom and their allocation
to the non-financial matters are as follows, divided
into business activities in Switzerland and Italy:

Matter

Environmental matters

Employee matters

Social matters

Material topics

Climate protection

Energy efficiency

Circular economy

Labour market skills and training

Diversity and equal opportunities

Data protection

Data security

Network access

Youth media protection and media skills

Respect for human rights

Combating corruption and bribery

Fair supply chain

Ethical behaviour

Switzerland

Italy

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Environmental matters

Climate protection

Concept including due diligence applied
Swisscom makes its contribution to help limit the
global temperature increase to 1.5°C and to achieve the
Paris climate targets. Swisscom is aiming for the net-
zero target across the entire Group (including the
Italian subsidiary Fastweb) by 2035 in accordance with
the Science Based Targets initiative (SBTi). As an interim
step, Swisscom wants to achieve full climate neutrality
across the entire value chain of its Swiss business and
in Italy by 2025.

To this end, Swisscom has defined an ambitious
climate strategy and a comprehensive raft of measures
covering the entire value chain. Swisscom’s climate
strategy is based on the reports published by the
Intergovernmental Panel on Climate Change (IPCC),
which call for a tightening of the Paris climate target

Key performance measures

SBTi targets Swisscom Group

Reduction of greenhouse gas emissions Scope 1 and 2

Reduction of greenhouse gas emissions Scope 3

Reduction of greenhouse gas emissions Scope 1–3

1 Interim target 2030; final target 2035.

According to the GHG Protocol (Greenhouse Gas
Protocol), Scope 1 comprises direct emissions
resulting from the consumption of fuel during
operation, transportation and fugitive emissions (e.g.
fuel for heating or vehicles). Scope 2 includes the
indirect emissions that result from the use of
purchased electricity, steam, heat or cooling (e.g.
electrical energy consumption
for operations).
Scope 3 includes all other indirect emissions caused
by a company’s activities in its value chain (e.g.
emissions from the supply chain).

Implementation of concept/
assessment of effectiveness

Swisscom in Switzerland
As an interim step towards the net-zero target, Swisscom
wants to achieve full climate neutrality across the entire
value chain of its Swiss business by 2025. To reach this
goal, Swisscom is aiming to reduce its Scope 1, Scope 2
and Scope 3 emissions by 25% from 2020 to 2025. High-

and recommend adherence to a maximum tempe ra-
ture increase of 1.5°C.

Reducing its own emissions is a top priority for Swisscom.
Swisscom pays attention not just to the quantity of
energy consumed, but also to the way it is produced and
therefore to its carbon footprint. Through the net-zero
target in accordance with the SBTi Corporate Net-Zero
Standard, Swisscom is committed to reducing its Scope
1, Scope 2 and Scope 3 emissions by 90% across the
entire value chain compared to the base year of 2018.
This includes the Italian subsidiary Fastweb. Residual
emissions are offset through climate protection projects
for CO2 avoidance or removal. Swisscom bases its due
diligence of the greenhouse gas inventory in 2023
around the current GHG standards (Greenhouse Gas
Protocol standards) and verifies this annually through an
independent audit in accordance with ISO 14064
‘Greenhouse balance sheet’.

Start year

Target year

Target

2018

2030

2035

80%

60%

90%

2023

35%

18%

2 Residual emissions are offset through climate protection projects for CO2

avoidance or removal.

quality carbon credits from selected climate protection
projects will be used in a complementary manner to
offset the residual emissions that remain unavoidable
despite intensive measures to reduce them. Swisscom is
also taking measures to boost its energy efficiency (see
‘Energy efficiency’).

Scope 1
Energy consumption is the most important internal
lever when it comes to reducing CO2 emissions. Swisscom
primarily requires electricity to operate its network
infrastructure and, to a much lesser extent, requires fuel
for operational mobility and to heat its buildings. The
switch from fossil fuels to renewable energy sources is
the main factor contributing to the reduction in Scope 1
emissions. Since 2016, Swisscom has been systematically
switching from fossil fuel heating systems to heat
pumps or using district heating and, where possible,
heat recovery from its own operations to heat its
buildings. It has also set itself the goal of electrifying its
fleet by 2030. In doing so, it wants to reduce the direct

emissions of the vehicle fleet by half between 2020 and
2025, and to zero by 2030.

Scope 2
The use of certified electricity and district heating
reduces CO2 emissions from electricity to the indirect
emissions (provision of electricity and district heating).
The efficiency measures
for electrical energy
consumption outlined in the ‘Energy efficiency’ chapter
also prevent Scope 2 emissions from arising. In addition,
further measures help to keep Scope 2 emissions to a
minimum. for example, Swisscom covers 100% of its
electricity needs with a mix of renewable energy
sources, mostly hydroelectricity and a blend of other
renewable sources, such as wind and solar power. It has
also been purchasing renewable district heating since
2019 and looks into new connections to the local district
heating network wherever possible. Swisscom is also
having photovoltaic plants
its own
properties. The electricity produced
is consumed
primarily by the company itself, with any surplus being
channelled into the grid. In the reporting year, Swisscom
made the decision to step up the construction of
photovoltaic plants at its sites between now and 2026.

installed on

Scope 3
More than 95% of Swisscom’s emissions are attributable
to indirect emissions in the value chain. The reduction of
emissions in the upstream and downstream value chain
is an essential element of Swisscom’s climate strategy.
The main measures aimed at reducing indirect emissions
can be split into three main areas: the supply chain, the
company’s own products and employee mobility.

infrastructure,

indirect
More than three quarters of Swisscom’s
emissions arise in the upstream value chain and relate to
purchased network
IT, purchased
merchandise and services. Swisscom is pursuing various
approaches to reduce these emissions. It is a member of
the JAC (Joint Alliance for CSR) – an association of
telecoms providers that monitors and promotes
compliance with environmental and social standards
among IT suppliers. Swisscom also requires its key
strategic suppliers to document their carbon footprint
via the Carbon Disclosure Project (CDP). It is also seeking
to significantly reduce CO2 emissions through intensive
cooperation with suppliers and subcontractors as part
of joint carbon reduction programmes. One example is
the cooperation with Arcadyan Technology Corporation
in the production of the new TV-Box 5. This box is the
first Swisscom product whose product carbon footprint
has been verified externally by the German technical

inspection agency TÜV Rheinland. The TV-Box 5 requires
35% less energy and, due to the 53% reduction in volume,
less material than its predecessor models. It also consists
of 65% recycled plastic and uses completely plastic-free
packaging.

Swisscom sells its own products such as boxes for TV,
WLAN and internet (routers). It applies targeted circular
economy practices to these products (see chapter on the
circular economy) and reduces material consumption
during production and electrical energy consumption
during use. Swisscom is also reducing the need for new
devices by recycling its own products and using devices
that are no longer in use as replacements. Finally, the
demand for smartphones is falling thanks to availability
on the second-hand market and buyback and resale
solutions.

Swisscom endeavours to avoid unnecessary commuting.
It offers its employees the option of working from home
and flexibility with regard to where they work. It also
supports the use of public transport and is reducing the
number of company car parking spaces. Swisscom has a
stringent authorisation policy for flights.

CO2 offsetting
Since 2020, Swisscom has been using offsetting as a
complementary measure in its quest to reduce CO2
emissions. It has been offsetting all residual emissions
from its services since 2022. To offset its residual
emissions, Swisscom uses CO2 certificates from carefully
selected climate protection projects that meet high
quality and integrity standards in accordance with the
Gold Standard, the Verified Carbon Standard (VCS) and
the Plan Vivo Standard. To ensure the quality and
integrity of the CO2 certificates, Swisscom follows the
current recommendations set out
in the Oxford
Principles for Net Zero Aligned Carbon Offsetting and
the recommendations of the Integrity Council for the
Voluntary Carbon Market (ICVCM). It has also defined
clear criteria for certificate purchasing to ensure that
each certificate most effectively avoids one tonne of
CO2eq or removes this amount from the atmosphere.
When compiling its offsetting portfolio, Swisscom aims
for geographical and methodological diversification and
mainly supports offsetting projects in developing and
emerging countries. In collaboration with the external
partners myclimate, South Pole and First Climate,
Swisscom has purchased CO2 certificates from a total of
seven offsetting projects that it will use to offset
emissions over the coming years.
Y See www.swisscom.ch/sir2023

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Swisscom in Italy
Fastweb has committed itself to a net-zero target by
2035 in accordance with the Science Based Targets
initiative (SBTi). It has taken various measures to achieve
this goal. This includes reducing direct and indirect
emissions, improving the energy efficiency of network
infrastructure and offsetting all remaining emissions. In
addition, Fastweb is changing the composition of its
vehicle fleet, replacing gas-driven heating systems and
reducing detrimental effects on the respective locations
when
lines. Supported by
consulting company AzzeroCO2, Fastweb is offsetting
residual emissions by purchasing CO2 certificates from
environmental projects around the world.

installing optical fibre

Fastweb already achieved climate neutrality in 2022
with regard to direct (Scope 1) and indirect emissions
(Scope 2), as well as upstream and downstream
emissions (Scope 3). In September 2022, Fastweb began
offsetting emissions accrued by its customers through
the use of its services.

Direct emissions (Scope 1) amount to 1% of total
emissions. Fastweb is endeavouring to achieve the
targets for reducing Scope 1 emissions by replacing gas-
powered heating systems and switching 75% of its
vehicle fleet to hybrid/electric vehicles and 25% to diesel
vehicles by 2025. By 2030, it aims to use 70% pure electric
vehicles and 30% hybrid vehicles. The Scope 2 emissions
recorded have been zero since 2021, as 100% of the
electricity that Fastweb purchases comes directly from
renewable sources. Indirect emissions (Scope 3), which
account for 99% of total emissions, have fallen by 3%
year-on-year from 219 to 213 thousand tonnes of CO2eq
as a result of the measures taken.

Risks
The following risks related to environmental issues
could arise.
• Supply chains: Supply chains are not only the largest
source of emissions, but also one of the most
complex. Volatile CO2 reporting from key suppliers or
changes in procurement can have a negative impact
on the indicators.

• Climate change: Ongoing climate change is accelerating
the intensity and frequency of extreme weather events
such as rising average temperatures and prolonged
heatwaves. This can lead to natural disasters that could
damage Swisscom’s network infrastructure.

Energy efficiency

Concept including due diligence applied
In its role as a major consumer of energy, Swisscom has
been working to increase its energy efficiency for years
now. The company maintains considerable network and
IT infrastructure in Switzerland and Italy. A broad range
of measures are being implemented throughout the
company to increase energy efficiency. Due diligence
employs an energy management system in both Switzer-
land and Italy.

Swisscom in Switzerland
Swisscom operates one of the largest fleets of company
and commercial vehicles in Switzerland. Added to this
are office and operations buildings, shops and data
centres. In order to boost its own energy efficiency,
Swisscom has introduced an energy management
system based on ISO 50001. This system serves as a key
instrument for ensuring the transition to becoming a
CO2-free company and achieving the net-zero target.

Swisscom in Italy
Energy accounts for a significant proportion of telecoms
companies’ operating expenditure and has an impact on
their carbon footprint. In addition to procuring 100%
renewable energy, increasing the energy efficiency of
the network and IT infrastructure is a top priority for
Fastweb. A dedicated energy management team is
responsible for identifying activities to improve and
increase the energy efficiency of the network and
IT infrastructure. Since 2015, the team has implemented
numerous measures both in the data centres and at key
operating sites. These include continuous monitoring,
the generation of renewable energy on site, operational
optimisation and the decommissioning of obsolete net-
work elements.

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Key performance measures

Energy targets of Swisscom in Switzerland

Reference

Targets and target agreements

Start year

Target year

Target

2023

Energy efficiency through savings measures over total energy consumption 1

Swisscom

EnAW 2

EEC 3

Not weighted

Weighted

Not weighted

2020

2013

2020

2025

2030

2024

2030

+20%

+43%

+36%

+18%

1 The reference value and calculation of efficiency is based on guidelines from the
Swiss Federal Office of Energy (SFOE), namely the ‘Target agreement with the
federal government to boost energy efficiency’ dated 5 May 2022.

2 Energie-Agentur der Wirtschaft (EnAW); target path of 3% per year.
3 Exemplary Energy and Climate (EEC), an initiative of the Confederation.
4 Values from the previous year.

Energy targets of Swisscom in Italy

Measures energy savings

Decommissioning of network and IT infrastructure

Own production of renewable energy

Operational and building optimisation

Total energy savings

Implementation of concept/
assessment of effectiveness
Swisscom in Switzerland
The following measures make the greatest contribution
to increasing Swisscom’s energy efficiency in its Swiss
business. The electrification of heating systems and
vehicles is not included. While this also plays a part in
boosting efficiency, it primarily serves to reduce CO2
emissions. As a result, it is described in the chapter on
climate protection.

Electricity
Optimising technology and replacing outdated network
components and platforms allowed Swisscom to make
further progress in the efficiency of telecoms networks
and IT platforms in the reporting year. Its modernisation
measures not only improved network service, but also
reduced electrical energy consumption. The fixed and
mobile networks consume the most electricity in
Swisscom’s operations. These two networks account for
around two thirds of total electrical energy consumption.
Despite reduction measures, Swisscom’s electricity con-
sump tion increased slightly in the reporting year due to
the constant expansion of its network infrastructure.
Thanks to the measures implemented, around 15 GWh
of electricity was saved in 2023.

+12%

+64%

+3%

In %
target

–

Target
annual savings
in KWh

–

Effective
annual savings
in KWh

12,074,319

128,000

814,912

5,000,000

13,017,231

260%

Fuels
Despite efficiency measures, fuel consumption increased
in the reporting year, as Swisscom had an increased
contract volume and therefore travelled more kilo-
metres, particularly with
its commercial vehicles.
Swisscom continues to focus on electric drives and
energy- efficient vehicle models when procuring new
vehicles and aims to electrify its entire fleet by 2030.

Heating fuel
In the year under review, Swisscom upgraded several
heating systems in its operation buildings and installed
modern heat pumps. Energy consumption was reduced
significantly by replacing outdated heating systems
such as oil or gas systems. As a result, thermal energy
consumption was further reduced in the reporting year.

Swisscom in Italy
Fastweb’s energy consumption is made up of electricity
(96%) and, to a lesser extent, natural gas, petrol and
diesel (4%). In 2023, Fastweb maintained its commitment
to procure energy from renewable sources. 100% of the
electricity purchased by Fastweb comes from renewable
sources.

In recent years, Fastweb has concluded numerous
longer-term contracts for renewable energy. In 2022,
Fastweb signed an energy purchase agreement for the
supply of electricity from renewable energy sources. The
12-year contract provides for the development of a new

photovoltaic plant in the Lazio region, which will cover a
requirements with
portion of Fastweb’s energy
renewable energies. The new photovoltaic plant with a
capacity of 11.25 megawatts will generate 19 GWh of
electricity per year, which will be used exclusively by
Fastweb. The plant will be in operation from 2023 and
will cover around 13% of Fastweb’s energy requirements.
This measure is part of the decarbonisation path that
Fastweb has been on since 2015 with the purchase of
100% renewable energy with certification of origin. In
2023, Fastweb signed a further location-independent
energy purchase agreement for a photovoltaic plant in
Piedmont with a production of 19 GWh, which will be
commissioned in 2024. Thanks to the photovoltaic
systems installed at Fastweb sites since 2016, a total of
182,639 KWh was produced and used for Fastweb’s own
consumption in 2023, an increase on the previous year.

Another measure is the decommissioning of obsolete
network elements at each individual site in order to
reduce energy consumption. Due to the energy crisis
and higher procurement costs, Fastweb
increased
efficiency and reduced energy consumption in 2023.
Projects such as the decommissioning of network
elements and temperature optimisation in buildings
were accelerated.

Risks
The implementation of energy efficiency measures gives
rise to the following risks.
• Measurability and monitoring: The precise measure-
ment and monitoring of energy efficiency is complex;
it requires suitable systems and technologies.

• Legal and regulatory risks: Changes in environmental
or energy regulations can have an impact on the
profitability of energy efficiency measures.

Circular economy

Concept including due diligence applied
The resources used by Swisscom and its suppliers are
finite and in some cases scarce. The longer a resource is
used, the more environmentally friendly it is. Swisscom
intends to reduce or stabilise consumption of resources
in its operations. Its aim is to move gradually towards a
circular economy spanning the entire value chain. The
selection of materials and the manner in which they are
used play a central role in procurement and operation,
as well as in their use by customers.

Swisscom is not only a network operator, but also a retailer
and supplier of merchandise (e.g. mobile phones) and self-
developed devices (e.g. Internet- and TV-Boxes). In this
capacity, it plays a relevant role in the circular economy on
the Swiss market. Recycling programmes for communication
devices support the implementation of its sustainability
strategy. Swisscom is continuously developing its opera-
tional environmental compatibility and sustainable use of
resources in accordance with ISO 14001 ‘Environ mental
management systems’. Swisscom performs due diligence in
accordance with the ISO 14001 and ISO 14064 standards
‘Greenhouse balance sheet’.

Key performance measures

KPI

Number of devices collected

Implementation of concept/
assessment of effectiveness

A second life for smartphones
When it comes to smartphones, Swisscom, in its capacity as
a retailer, can have a direct impact on the circular economy
primarily by extending the useful life of these devices. Its
efforts within this context focus on its buyback, repair and
second-hand offers, and it aims to process a quarter of a
million devices via these Swisscom programmes every year
by 2025. As part of the Swisscom Mobile Aid programme,
Swisscom donates the proceeds from the resale and
recycling of donated mobile phones to the SOS Children’s
Villages organisation. It also offers the Mobile Bonus buy-
back programme and repair options for smartphones, with
the work being carried out by an external partner. Swisscom
also sells ‘refreshed smartphones’, allowing it to extend the
service life of existing devices.

Sustainable Swisscom products
Swisscom has enhanced potential to exert influence and
faces corresponding challenges when it comes to
designing its proprietary products such as Internet- and

2023

Target 2025

192,000

250,000

TV-Boxes to suit the circular economy. Together with its
suppliers, it has set itself the goal of improving the
material consumption, energy consumption and
durability of the devices with each new product gene-
ration and of reducing their environmental impact.

Dismantling of network infrastructure
Swisscom not only creates new networks, but also takes
down outdated networks. When dismantling networks,
Swisscom looks into the options available for selling
valuable, fully functional components to other network
operators as spare parts. What can neither be reused
nor sold is recycled. In 2023, a total of 1,373 tonnes of
recyclable materials were recovered.

Risks
Having customers return devices they are no longer
using is fundamental to a functioning circular economy.
Ensuring that customers do their bit is a challenge. To
increase customer participation, Swisscom is focusing
on direct customer information throughout the year and
on raising public awareness.
Y See www.swisscom.ch/rethink

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Employee matters

Labour market skills and training

Concept including due diligence applied
To take advantage of the opportunities presented by
the digital change and to master its challenges, it is
essential that employees continuously expand their
skills. With ‘Level Up’, Swisscom is shaping the trans-
formation process, promoting the digital skills of its

employees and fostering its culture of collaboration.
Swisscom is establishing a skills management system
that covers skills that will be relevant in the future. Its
concept includes continuous professional development,
the adaptation of training programmes to reflect the
needs of the labour market and the promotion of
lifelong learning. Its due diligence takes place via the
skills management system.

Key performance measures

KPI

Number of training days per employee

Implementation of concept/
assessment of effectiveness
Career starters
in seven vocational
Swisscom trains apprentices
disciplines using a progressive, skills-based training
model. The apprentices arrange their apprenticeship as
part of a modular system where they can apply for
different practical placements within the company
using an online marketplace. This enables them to
quickly learn to take on responsibility. In the year under
review, 20 apprentices started the newly created ‘Digital
Business Developer Federal VET Diploma’ apprenticeship.
This apprenticeship is a world first and is essential for
the digital transformation in Switzerland. It strengthens
the interface between technology and practice, and
serves to make digital products and processes as
practical as possible. Swisscom also enables young
professionals to enter the world of work through its
trainee programme and internships.

Training and education
Employees can take advantage of the five training and
development days set out in the collective employment
agreement (CEA) by choosing from a wide range of
in-house training courses, on-the-job development
opportunities and external training courses. The
internal digital learning platform SKILLup offers time-
and location-independent study and gives employees
access to programmes based on their skills and
interests. Swisscom aims to establish an inspiring
learn ing culture where employees have plenty of
freedom and assume personal responsibility for their
professional training. In the year under review, an

2023

4 .2

Target 2025

4 .5

internal leadership training and development course
was mandatory for all managers in order to establish a
common understanding of leadership.

Talent development
Attracting, developing and retaining talent is one of
Swisscom’s objectives in a highly competitive labour
market. Participants of the internal talent programme
are identified using clear criteria such as motivation and
potential every year. They can choose from a range of
further development modules tailored to suit their own
situation and take advantage of coaching sessions. In
the ‘Talent’ app, they can save their personal profile and
aspired-to roles, making them visible to managers across
the different divisions.

Risks
Measures to boost employability and provide further
training to employees are associated with the following
risks:
• Lack of relevance: If the further training programmes
are not tailored to suit the needs of the labour market
or the company, participants who complete them
may find it difficult to gain a foothold in their
occupational field.

• Overqualification: Intensive further training can
result in employees being overqualified for their
current position, which could affect their
job
satisfaction.

• Technological change: Rapid technological change
can lead to certain skills becoming obsolete before
training is completed.

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Diversity and equal opportunities

Concept including due diligence applied
Swisscom in Switzerland
Swisscom represents a culture that values differences
and has no room for discrimination and marginalisation.
It promotes diversity with regard to gender, age, origin,
language, sexual orientation and the inclusion of
employees with a physical or intellectual disability.
innovation and makes Swisscom
Diversity drives
success ful as a company, which is why Swisscom makes
sure its recruitment, development, talent management
and leadership culture processes are designed in such a
way that they counteract these stereotypes and enable
equal opportunities. Swisscom performs due diligence
by regularly measuring the Group-wide targets in the
different dimensions of diversity.

Swisscom in Italy
Fastweb’s principles for managing and remunerating
employees emphasise equal conditions, non-discri mi-
nation, performance orientation and trans parency.
Fastweb aims to be a safe, inclusive place where
people can proudly express their uniqueness. The
inclusion@Fastweb
strategy promotes diversity,
equality and inclusion. It is monitored by the Corporate
Culture & Inclusion department and is available on the
Fastweb website and on the Agorà intranet, which is
accessible to all Fastweb employees. The Inclusion@
Fastweb strategy covers the areas of gender diversity,
disability, sexual orientation, multiculturalism and age
discrimination. It emphasises intersectionality, the
promotion of equal opportunities and connections
and the intensification of internal and external initia-
tives in various areas: from gender equality to the
development of women’s STEM skills; from disabilities
to support for caregivers; and from the intention to
spread a culture of inclusive language to the focus on
creating awareness of issues such as diversity, equality
and inclusion in Fastweb’s workforce.

Key performance measures

Swisscom in Switzerland

KPI

Proportion of women in management

Proportion of employees under 40 years of age

Proportion of employees with health impairments (inclusion)

Swisscom in Italy

KPI

Proportion of women in employment

Proportion of employees trained in diversity and inclusion

2023

Target 2025

14 .4%

43 .9%

1 .1%

15 .7%

45 .0%

1 .0%

2023

59%

80%

Target 2023

50%

Implementation of concept/
assessment of effectiveness
Swisscom in Switzerland
To promote diversity, Swisscom focuses in its Swiss
business on the factors of gender, inclusion, generations
and language regions.

Gender
Swisscom
relies on various programmes and
initiatives to attract more women to IT professions
and positions
in management. Flexible working
models give employees the support they need in
diffe rent life situations. Swisscom therefore adver-
tises the majority of its positions with workloads
ranging from 60 to 100% and also offers job sharing,

holiday purchasing, part-time work on a trial basis,
contributions to extra-familial childcare and pro-
grammes such as Work & Care.

Inclusion
Swisscom is committed to making jobs available to
people with physical or psychological impairments in
order to (re)integrate them into the workforce. It tries to
offer at least 1% of jobs for inclusion-related employment
solutions. To achieve this, it is working with organisations
such as Compasso and Powercoders.

Generations
In order to counteract the loss of knowledge 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 mentoring and junior programmes.

Language regions
Swisscom attaches importance to ensuring that the
different
languages are appropriately represented
throughout the company and therefore offers appren-
tice ships, internships and talent programmes in all
language regions. Language course offerings support
employees with learning the national languages and
English or improving their language skills.

(Prassi UNI/PdR125:2022).

Swisscom in Italy
In October 2023, Fastweb received certification for gender
equality
It received the
certification thanks to its measures taken to close the
gender gap. With the new certification, Fastweb will
receive additional points in future public tenders and can
thus increase its competitiveness in the corporate business
segment. Fastweb has drawn up a medium- to long-term
action plan for gender equality, which is reviewed annually
by the certification body.

On 31 December 2023, women made up 40% of the
workforce. The gender ratio among managers who
report directly to the CEO has increased. 31% of those
reporting directly to the CEO are women. Two out of six
members of Fastweb’s Board of Directors were women
as of September 2023. The number of women responsible
for the expenditure budgets has also been increased.
They make up 29% of all budget managers. The internal
programme to promote female talent, Your Evolution,
was launched in July 2023 to identify internal female
talent and accelerate the increased share of women in
management positions. In accordance with the require-

ments of the gender equality certification, the gender
pay gap analysis shows that the percentage pay gap for
the same job by gender and for the same qualification
level was less than or equal to 10% in September 2023. In
2023, new measures were introduced to better support
women on maternity leave. These include a new
objective policy, an accompaniment on return from
maternity leave, an increase in funding for paternity
leave and financial measures to facilitate voluntary
maternity leave.

The diversity, equality and inclusion strategy needs to be
spread not only as a driver of ethical values, but also
because it is a factor in the company’s performance. In
2023, diversity and inclusion training reached 80% of
employees. 100 top managers took part in Break the Bias
sessions to develop skills to understand and deal with
unconscious bias, remove invisible barriers and promote
inclusive leadership. A team of 30 Fastweb employees
were formed as ‘Inclusive Agents’ to influence their net-
work and those around them with the aim of accelerating
and facilitating the spread of an inclusive culture within
the company. In addition, Fastweb promotes the use of
inclusive language throughout the organisation, both in
internal and external communication.

Risks
Efforts to increase diversity and equal opportunities are
associated with the following risks:
• Resistance to change: Some employees may resist
diversity initiatives out of fear of change or uncer-
tainty.

• Discrimination and prejudice: Discrimination and
prejudice can persist in the workplace environment in
spite of diversity efforts.

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Social matters

Data protection and data security

Concept including due diligence applied
As ‘Innovators of Trust’, Swisscom ensures that data
protection and data security are firmly established in its
organisation, meaning that the trust customers place in

it remains justified. As a result, data protection is a
central component of Swisscom’s digital strategy and its
responsibility towards society. The data protection and
data security concept aims to protect personal and
business data from unauthorised access, misuse and
data breaches.

Key performance measures

KPI

Percentage of employees trained in cybersecurity

Implementation of concept/
assessment of effectiveness
The new Federal Act on Data Protection (FADP) has
been in force since 1 September 2023. Swisscom has
implemented the necessary adjustments to protect
personal data. When the revised FADP came into force,
it also took the opportunity to introduce a new
standard of customer information and expand the
options available to customers. This means that
Swisscom customers can not only opt out of specific
types of data processing via My Swisscom – an option
already available to them in the past – but can now
automatically request information regarding how their
data is used.

Swisscom attaches great importance to the legally
compliant and responsible processing of personal data
and protected information. As a result, Swisscom
operates a management system for data protection and
confidentiality, to which
internationally
recognised standards and norms. Swisscom also main-
tains a data ethics framework that is designed to clarify
ethical issues connected to the processing of data and
the use of new technologies.

it applies

in order to provide

Among other things, Swisscom processes personal
data
its customers with
individualised, targeted advertising or offers that are
even better suited to their needs. It creates customer
segments or customer profiles to that end. Customers’
is made available to advertising
personal data
marketing companies in aggregated form for the
purpose of target group-based advertising. Cus-
tomers may object to the receipt of advertising 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.

2023

87%

Target 2025

85%

In the year under review, Swisscom did not conduct any
legal or administrative proceedings in the area of
customer data protection or confidentiality. Swisscom
complies with its legal obligations with regard to the
surveillance of postal and telecommunications traffic.
Y See www.swisscom.ch/dataprotection

In addition to stringent compliance with data protection
requirements, Swisscom strives in particular to ensure
It relies on secure, state-of-the-art
data security.
infrastructure and highly qualified security experts to
ensure the best possible protection for employees,
customers, partners and the company as a whole.
Swisscom’s security concept is based on the three pillars
of prevention, detection and response.

In view of the increasing threats posed by cybercrime,
Swisscom uses automation technologies and artificial
intelligence (AI) to detect risks and attacks at an early
stage and initiate appropriate countermeasures. The cyber
specialists in the Swisscom Security Operation Center
monitor the entire IT infrastructure around the clock. In
addition to technical security solutions, Swisscom is taking
measures to continuously enhance the security culture
within the company. For example, targeted awareness
measures are used to raise awareness among employees
about the conscious and secure handling of data. The new
security awareness campaign #bethestrongestlink
is
being used by Swisscom to motivate all employees to do
their bit to ensure the company’s security.

Swisscom offers effective security solutions for resi den-
tial and business customers. These range from call filters
and virus protection to security assessments, managed
security services and immediate assistance in the event
of a hacker attack. Security is thus an integral part of
Swisscom’s values and culture.
Y See www.swisscom.ch/dataprotection

Risks
Cyber attacks are increasing rapidly. The speed of digital
transformation, machine learning and computing power
is rising at an exponential rate. At the same time, attacks
are becoming increasingly specific and efficient, and are
always able to stay one step ahead of security optimisa-
tion measures. This inevitably increases the number of
vulnerabilities within the company that are susceptible
to cyberattacks. The corresponding risks can have the
following effects.
• Swisscom may have weak points when it comes to
protecting its infrastructure and customer data from
cyberattacks.

• A lack of employee knowledge or overly complex
infrastructure can make it more difficult to prevent
cyberattacks, some of which are triggered by artificial
intelligence.

• Compliance with increasingly complex statutory
requirements for data storage and data protection
can affect Swisscom’s strategy or business models.
• Blackmail attempts, which are becoming increasingly
common in connection with cyberattacks, can result
in financial losses.

Network access

Concept including due diligence applied
High-performance network infrastructure is becoming
more and more relevant. Mobile communications play
a key role in new applications such as the Internet of
Things (IoT). What is more, an increasing number of
processes whereby security is critical will be carried out

Key performance measures

KPI

Coverage of homes and businesses with fibre optics 1

Coverage of the Swiss population with 5G+

1 Built access lines.

is constantly developing

via mobile communications
in the future. The
continuous expansion and modernisation of networks
is therefore a must in order to enable innovation.
Swisscom
its network
infrastructure to keep pace with the increasing demand
for broadband in the fixed and mobile networks. It is
investing around CHF 1.7 billion per year in its infra-
structure in Switzerland. Through the provision of
high-performance networks and an optimal technology
mix, Swisscom makes a significant contribution to the
attractiveness of the Swiss business community. It also
aims to provide its customers with the best network in
Switzerland at all times, regardless of their location.
Swisscom has set itself ambitious expansion targets.
By the end of 2025, fibre-optic coverage (FTTH) in
Switzerland is to increase to around 57%, and total
between 75% and 80% by 2030. The fibre-optic network
should be completed in all municipalities by 2030.

The 5G+ mobile generation is to cover around 90% of the
population in Switzerland in the medium term. New
mobile generations are more energy efficient, reduce
exposure and make better use of the limited radio
spectrum available than previous generations. This means
that from Swisscom’s perspective, it is in the general
interest to focus on the latest mobile generation wherever
possible and replace older generations. The Ordinance on
Non-Ionising Radiation (ONIR) regulates exposure by
mobile antennas. Swisscom takes education and providing
information on mobile communications seriously. Its team
of specialists answers enquiries from the public, and
Swisscom also supports the Chance5G
information
platform established by the industry association asut.

2023

46%

81%

Target 2025

57%

90%

Implementation of concept/
assessment of effectiveness
Network expansion made further progress
in the
reporting year. At the end of 2023, optical fibre coverage
came to 46% and 5G+ coverage to 81%. Total 5G coverage
stands at 99%.

The Federal Supreme Court provided clarity in several
judgements on 5G in 2023 and confirmed existing regu-
lations regarding the precautionary principle, mea sure-
ment recommendation and quality assurance sys tem.
However, the decisions are based on the legal basis prior
to the ONIR revision (2022). They therefore do not offer

any legal clarification regarding a correction factor for
adaptive antennas. In the year under review, the NIR
monitoring report from the Federal Office for the
Environment (FOEN) attested to very low exposure
values, some of which are well below the limit. The
Confederation also launched an information platform
for 5G and mobile communications in the reporting year:
www.5g-info.ch.

In September 2023, Parliament submitted a motion to the
Federal Council calling for the rapid expansion of the 5G
network within the existing limits. The motion calls for
measures to simplify and accelerate the expansion of the

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5G network. Implementation of this motion would allow
outdated regulations for calculating transmission power to
be adapted to reflect developments and findings over the
last 20 years and building permit procedures to be simplified.
Around 3,000 applications for building permits for mobile
communications systems are currently still pending with
the relevant authorities.

Risks
The following risks related to network access could arise.
• Authorisations and regulatory hurdles: Obtaining
autho risations and complying with
regulatory
requirements can be time-consuming and complex,
delaying the expansion of the network.

• Technological advances: The rapid pace of techno-
logical advances may lead to investments that have
already been made becoming obsolete.

• Supply gaps: Despite every effort to expand the
network nationwide, some areas are still difficult to
reach, which can leda to supply gaps.

Key performance measures

KPI

Promotion of media skills

Media usage training

Technical measures for youth media protection

Digital shift

Total number of contacts

Youth media protection and media skills

Concept including due diligence applied
Swisscom wants to help shape the information society
within Switzerland. High levels of internet availability
alone are not enough to ensure a functioning
information society. Rather, use of the internet also has
to add value and be autonomous. With this in mind,
Swisscom takes targeted measures to promote youth
media protection and competent media usage. Its
services impart know ledge, classify the phenomena of
digital
reflection
processes that lead to healthy media use. Swisscom
performs due diligence by measuring the effectiveness
of the measures or using the number of high-quality
contacts with the population. Swisscom has set itself
the goal of reaching around 2 million people with infor-
mation, tips and support by 2025.

transformation and promote

2023

Target 2025

653,618

350,000

1,100,148

1,273,000

144,185

131,140

158,000

230,000

2,031,114

2,011,000

Implementation of concept/
assessment of effectiveness
Different user groups with specific requirements
The challenges associated with meaningful, low-risk media
usage change depending on age and form of use. Swisscom
has summarised the challenges in three areas of action.

Digital inclusion
Swisscom makes the opportunities associated with the
digital transformation accessible to everyone, supports
equal opportunities in the labour market (employability),
provides education and promotes social relationships in
individuals’ leisure time. These measures are primarily
aimed at older people who are at risk of losing touch
with the rapid pace of technological development.

Youth media protection
Swisscom is supporting children, young people, parents,
legal guardians and teachers in the safe and responsible
use of smartphones, the internet and television.

Data and internet security
Swisscom provides information about the dangers of
the internet, promotes responsible and reflective work,

and protects personal data. The focus is primarily on
adults in the private and business environment.

Swisscom Campus
Swisscom Campus brings together the educational
opportunities of Swisscom for all target groups under
one umbrella. The opportunities are divided into the
areas of home, school, work and leisure.
Y See www.swisscom.com/campus

In the year under review, Swisscom launched blue Kids
Mobile, a mobile phone subscription for the under-16s.
Swisscom provides parents with a wide range of content,
tips, courses and technical aids to support and guide
them in their parenting. Swisscom also offers teaching
aids for various school levels.

considers

Youth media protection
Swisscom
the promotion of media
competency to be the ideal way to enshrine the digital
transformation in society. In addition, technical protec-
tive measures are designed to protect young people
from inappropriate content such as porno graphic and
violent content. When developing new products and

services, Swisscom checks whether the mechanisms
for youth media protection are being used effectively.
The parental control function or age verification makes
certain content inaccessible to young people. blue TV
also has a blocking function that enables content and
commercial restrictions on video-on-demand content
(VoD content). Swisscom also blocks all value-added
services with erotic content (0906 numbers route and
value-added services) for young people and gives
parents the option of setting surfing times for their
children via the Internet-Box.

Child protection
With regard to the use of its products and services,
Swisscom goes beyond the law and protects children from
debt, unsuitable content and the risks associated with the
use of digital media (e.g. addiction, privacy, hate speech
and cyberbullying). Swisscom ensures its products have
parental control features and limits access to offerings with
content that is potentially harmful to minors using suitable
mechanisms. In order to actively protect the physical and
mental innocence of children and young people, it is crucial
that the measures are not restricted solely to the media
interactions of children and young people. Even before the
Tele communications Act (TCA Article 46a) made it a legal
obligation, Swisscom was already committed to blocking
on its networks child pornography sites reported by the
Swiss Federal Police as part of the industry Initiative of the
Swiss Association of Telecommunications (asut) for
improved Youth Media Protection and the Promotion of
Media Skills in Society. An electric interface between the
Swiss Federal Police and Swisscom automatically tracks all
changes. Swisscom also supports the anonymous reporting
centre www.clickandstop.ch and provides communi cation
support.
Y See www.clickandstop.ch

Data and internet security
Swisscom offers information about the dangers of the
internet, about responsible and reflective work, and
the protection of personal data. Its measures focus
primarily on adults in the private and business environ-
ment, for whom the Swisscom Campus offers the
‘Cyber security’ campus guide and includes online
courses such as ‘Staying safe on the internet’ and
‘Privacy on the internet’.

Risks
The following risks related to the protection of minors
and media protection could arise:
• Excessive restrictions: Excessively stringent measures
for the protection of minors could restrict the free
expression of opinion and creative development of
young people.

• Technological complexity: The rapid development of
digital media is making it more difficult for parents
and teachers to keep up with the latest technologies
and applications.

• Lack of supervision: In some cases, children and
young people can access unsuitable content despite
measures for the protection of minors if there is
insufficient parental supervision.

• Distorted perception: Excessive media consumption
can lead to a distorted perception of reality, especially
among young people.

• Mental health: Uncontrolled media use can lead to
mental health problems, such as addictive behaviour
and depression.

Respect for
human rights

Fair supply chain

Concept including due diligence applied
Due to the legal provisions on due diligence and reporting
obligations in relation to conflict minerals and child
labour (Article 964j of the Swiss Code of Obligations) and
the associated ordinance (DDTrO) coming into force,
starting from the year under review, Swisscom is obligated
to conduct due diligence in relation to child labour,
implement a comprehensive management system and
issue an annual report. This obligation covers the entire
upstream supply chain and includes the company’s own
business activities and all players – from the extraction
of raw materials to the processing of the end product.
Swisscom does not introduce or process any conflict
minerals in Switzerland. The reporting obligation on
compliance with due diligence requirements in relation
to conflict minerals is waived.

Swisscom uses a large proportion of purchases of goods
and services to operate and expand the network infra-
structure. In addition, end devices such as mobile phones,
routers and TV-Boxes account for a considerable propor-
tion of the purchasing volume. When it comes to pur-
chasing goods and services, respecting and protecting
human rights are a key element of Swisscom’s corporate
responsibility. Swisscom focuses here on core human
rights risks with a high probability of occurrence and a
potentially significant impact on those affected and local
communities.

Key performance measures

KPI

These include:
• Child labour
• Forced labour, especially the exploitation and discri-

•

mi nation of ethnic minorities
Insufficient working conditions in the manufacture of
electronics devices, e.g. when handling hazardous
substances

• Reasonable limits on working hours
• Fair remuneration

The aforementioned risks are often hidden in the lower
levels of the value chain, in which Swisscom only has
little insight and influence on the processes thereof.
Swisscom therefore considers
it essential for the
performance of its corporate due diligence to collaborate
in joint solutions within the ICT sector. It takes the
relevant ILO, OECD and SA8000 standards as a basis. It
also relies on a holistic risk management system, which
it uses to systematically check its supplier relationships
for risks. Swisscom attaches great importance here to
maintaining a fair, effective partnership with suppliers
who share its social and environmental goals and its
values. Where risk hotspots are identified, Swisscom
takes targeted development and corrective measures
with suppliers. Swisscom’s purchasing department
handles all procurement transactions and ensures com-
pliance with governance requirements. The main basis
for purchasing transactions is the Code of Conduct for
Procurement. It contains binding rules for Swisscom
suppliers and employees.

Number of employees at suppliers in the audited factories in the year in question in the JAC network

2023

Target 2025

194,000

150,000

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Implementation of concept/
assessment of effectiveness
Swisscom in Switzerland
Risk management system
Swisscom’s Supply Chain Risk Management follows a
holistic approach in carrying out due diligence checks.
The aim is to identify, assess, prioritise and reduce risks
not only in ethical, social and environmental terms, but
also with regard to finance, logistics, quality and security
of supply. It also captures the overall purchasing volume
in terms of human rights risks and their corresponding
impact. Swisscom’s measures have enabled it to achieve
a fair procurement score of 90/100 on EcoVadis. The
following instructions form the core pillars of Swisscom’s
due diligence on human rights.

Supply chain policy
As part of its due diligence, Swisscom takes a stand for
children’s rights. In doing so, Swisscom is guided by the
International Labour Organization’s (ILO) definition of
abusive child labour. The ESG Supplier Code of Conduct
attached to the purchasing contract sets out the
ecological, social and ethical conditions in the supply
chains. Swisscom commits to specific standards for child
labour and conflict minerals and obliges its supply
partners to report to it any suspected cases.

Risk and impact analysis
As part of its participation in the Business & Human
Rights Accelerator of the United Nations Global Compact
from February to August 2023, Swisscom conducted a
risk analysis of its entire value chain with regard to
compliance with human rights. It identified core risks
according to their severity and probability of occurrence
and created a plan of action for expanding the existing
management system, which assigns each supply partner
to a category on the risk traffic light (green to red).
Suppliers are assigned in relation to the commodity
group risk of the service or product provided (in
accordance with the internationally recognised score
system from the EcoVadis platform) and contract
volume. Swisscom pays particular attention to suppliers
who are involved in the supply chain of their proprietary
products. Since 2023, Swisscom has implemented the
risk concept in the procurement process via the SAP
Ariba digital platform.

Transparency is the key to fair supply chains. Swisscom
pays particular attention to monitoring purchasing
transactions with elevated risks (around 30%) and
procurements with its top 100 suppliers. As a result, it
receives ongoing information about events in the supply
chains relating to over 86% of its spend. Swisscom’s risk
assessment is conducted using the EcoVadis and sphera
platforms, which specialise in sustainability ratings.

Swisscom is now using sphera to monitor the country
risk for child labour via the UNICEF Children’s Rights in
the Workplace Index. It is also working with suppliers of
its own products on the gradual disclosure and
presentation of the relevant supply chains within the
tool. This helps Swisscom to better trace the origin of the
materials and metals used.

Measures to prevent, eliminate or minimise
negative impacts
Since 2023, Swisscom has been a member of the Global
Child Forum non-profit organisation, which campaigns
worldwide for the respect of children’s rights by the
private sector. It achieved a score of 8.2 in the Children’s
Rights Benchmark, putting it in the top 9% (or among the
‘Leaders’) of the companies evaluated. The industry
average is 5.7 points.

Audit programme in the Joint Alliance for CSR (JAC)
Swisscom is a member of the Joint Alliance for CSR (JAC).
JAC is an association of telecoms providers with global
operations that join forces to monitor social responsibil-
ity in the production centres of major multinational ICT
suppliers. By conducting on-site audits, Swisscom can
identify poor corporate practices that pose a potential
risk to people and the environment. It then helps its sup-
pliers and sub-suppliers to implement prioritised and
scheduled corrective measures. On-site audits examine
the following risk categories.
• Health and safety: e.g. blocked emergency exits,
emergency lighting, and the handling and storage of
hazardous substances

• Working hours: working hours, overtime and rest days
• Salaries and benefits: social security, minimum wages

and deductions

• Environmental protection: greenhouse gas emis-
sions (measurement, reduction targets, involvement
of
implementation of
en viron mental issues along the supply chain

suppliers/sub-suppliers),

• Child labour and young workers: overtime, night

shifts and no child labour

• Forced labour: lack of employment contracts

In the year under review, the JAC network carried out 149
(previous year: 83) audits. The audited suppliers included
mostly Asian producers from the areas of IT hardware,
software and services and network infrastructure. The
audits uncovered a total of 883 (previous year: 549)
vulnerabilities.

In the areas of its supply chain where Swisscom considers
there to be an increased risk to people and the
environment, it takes development measures with its
strategically important suppliers/their sub-suppliers as
part of the Supplier Development Programme (SDP).

Over the last few years, Swisscom has worked with
suppliers participating in the SDP to develop solutions in
relation to issues such as environmental protection,
working time regulations and safety at work. The
suppliers concerned continue developing their measures
independently after the first year. After they have
successfully completed the development programme
over three years, they use their experience independently
in their own supply chains.

Swisscom has been organising training sessions in the
form of workshops and webinars for its strategic
procurement department on the topic of ESG in supplier
management since 2023. It will be gradually expanding
these sessions further and specifically addressing the
topics of child labour and conflict minerals. Beyond
know ledge transfer and the development of internal
capacities, the training and awareness-raising pro-
gramme aims to even better enshrine the long-term ESG
governance in the procurement departments and, at the
same time, facilitate cross-divisional cooperation on
human rights issues.

In addition to its existing whistle-blowing channel for
the company’s stakeholders, Swisscom established a
complaints mechanism covering the supply chain and a
remediation process in the year under review. Those
affected should report human rights abuses and related
complaints affecting procurement processes relevant
for Swisscom directly to Swisscom. This should allow
Swisscom to more directly identify and eliminate human
rights abuses. This whistle-blowing channel is based on
the UN Guiding Principles on Business and Human Rights
(UNGP No. 29). It is a space that guarantees anonymous,
transparent and legally compliant whistle-blowing in
accordance with the principles of non-discrimination
and non-retaliation. Swisscom categorises complaints
according to the extent, resolvability and severity of the
impact on those affected. Remediation and development
measures are then taken in exchange and dialogue with
relevant suppliers and the whistle-blowers. No reports
have been submitted to Swisscom since the system was
activated in October 2023.

Swisscom in Italy
Fastweb is committed to pursuing its objectives with
transparency and integrity and to conducting itself in an
ethical and responsible manner. The protection of
human rights and labour rights is a guiding principle for
Fastweb, one which is guaranteed by its SA8000
certification for social responsibility. It endeavours to
ensure that its suppliers and business partners work

with it according to the same principles. For this reason,
Fastweb introduced a concept to ensure compliance
with human rights in the supply chain long before the
adoption of the European Commission’s proposal for a
directive on corporate due diligence in the area of
sustain ability (February 2022). The aim for 2023 is to
implement the onboarding phase of the Sustainable
Supply Chain Programme. The targets for 2024 were
defined at the end of 2023 as part of the programme’s
onboarding phase.

Fastweb worked with around 1,500 suppliers in 2023
(including 232 suppliers newly registered during that
year). 138 of these new suppliers were assessed accord-
ing to social and environmental criteria. In addition,
Fastweb sourced 95% of its goods purchases (by value)
from Italian suppliers. The supplier qualification process
is an integral part of the procure ment model. In it, each
supplier is assigned a risk level based on the supplier’s
product sector and on labour, safety, social and environ-
mental factors.

In order to successfully complete the accreditation
process, all suppliers must sign specific clauses on
environ mental and social responsibility issues, in
which they undertake to comply with all applicable
legislation, in particular Model 231, labour law, health
and safety regulations, environmental regulations and
the principles of social responsibility with regard to
respect for human rights. Together with the Code of
Ethics, Model 231 sets out rules of conduct and is
updated at periodic intervals. All suppliers are also
obliged to act in accordance with the principles set out
in Fastweb’s Code of Ethics. The documents submitted
are checked by the procurement department and
compliance is monitored annually. Safety and environ-
mental checks are carried out on suppliers operating
on site.

In July 2023, Fastweb launched its Sustainable Supply
Chain Programme to develop a structured supplier
assessment system based on ESG criteria that creates
added value for the company and gradually expands the
culture of sustainability throughout the chain. Fastweb
began assessing the sustainability perfor mance of its
suppliers with the support of EcoVadis, a global provider
of ESG risk assessments. In 2023, 145 suppliers were
assessed on their ESG performance. The results of the
assessment are gradually being integrated into the pro-
cure ment processes and will increasingly be a decisive
factor in partner selection.

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Risks
Implementing a fair supply chain is essential in order to
ensure that products are manufactured under ethical
conditions. It involves the following risks.
• Lack of transparency: The greatest risks to people
and the environment lies at lower levels of the supply
chain. Swisscom often has no insight into these areas
or the companies operating there or their production
methods due to a lack of contractual relationships.
Obtain ing information and monitoring the relevant
supply partners is particularly challenging due to
legal obstacles, the large number of suppliers and
practices such as outsourcing and subcontracting.

• Reliance on suppliers: Swisscom may become reliant
on key suppliers, reducing its potential to influence
fair production processes in the supply chain.

• Complexity of the supply chain: Electronic devices
and other IT products, as well as Swisscom’s own
prod ucts, consist of a number of different sub-
components, each with their own supply and value
chains. Monitoring and controlling ethical standards
in complex global supply chains and manufacturing
processes can prove difficult and require effective
collaboration with a large number of different suppli-
ers and partners.

Anti-corruption

Ethical behaviour

Concept including due diligence applied
Swisscom conducts its business fairly, honestly and
transparently and is opposed to any form of corruption. In
its Code of Conduct, it has set out clear rules for legally
compliant behaviour in the spirit of integrity. The Group-
wide anti-corruption directive specifies which behaviour
is permissible or impermissible in the context of work-
related activities. The directive includes a strict ban on all
forms of bribery and corruption, as well as detailed
regulations on conflicts of interest, lobbying, donations
and sponsorship. This means that Swisscom’s compliance
management system is also geared towards preventing
corruption. As a trustworthy partner, Swisscom meets
stakeholders’ high expectations in terms of its integrity. It
works in line with values and ethical principles and trains
its employees in lawful and value-oriented conduct.

Code of Conduct
Swisscom’s principles and rules on corporate governance
are set out primarily in the company’s Articles of
Incorporation, 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’.
Y See www.swisscom.ch/basicprinciples

Anti-corruption directive
Swisscom rejects corruption in all its forms. Swisscom’s
business is conducted fairly, honestly and transparently.
Swisscom has put numerous organisational safeguards
in place to avoid corruption. An anti-corruption directive
and various guidelines define correct and incorrect

behaviour. Exposed employees undergo special training
in this regard. The central compliance unit (Group
Compliance) monitors the
implementation of the
require ments.

Anonymous reporting channel (whistleblowing)
An anonymous reporting channel is available to all
employees of Swisscom and Fastweb
report
questionable events or practices, such as corruption, fraud,
violations of laws and guidelines, or problematic account-
ing. A certified reporting system features technical mecha-
nisms to ensure that the reports remain confidential.
Reports are processed by Internal Audit in accordance with
a defined process. As a unit assigned to the Board of
Directors, Internal Audit guarantees the greatest possible
levels of objectivity and impartiality. To simplify processing
and receive a reply, the person submitting a report can set
up a mailbox while remaining anonymous.

Swisscom in Italy
Fastweb pursues an ethical corporate culture based on
anti-corruption guidelines, a Code of Ethics and Model
231. Together with the Code of Ethics, Model 231 sets
out rules of conduct and is updated at periodic
intervals. The subsidiaries Fastweb Air and 7Layers
each have their own Model 231. Individuals acting on
Fastweb’s behalf must comply with the applicable
regulations and prevent offences under the Italian
Legislative Decree No. 231/2001. In 2023, Fastweb
implemented the provisions of Swisscom’s anti-
corruption directive in an anti-corruption directive of
its own. The fight against corruption is embedded in
Fastweb’s control, risk management and compliance
management system. The anti-bribery system
is
designed in accordance with the standards of ISO 37001
‘Compliance management systems (CMS)’. Compliance
with ISO 37001 is reviewed and confirmed by an
external auditor. The design and effectiveness of the
system is monitored by Fastweb’s Internal Control
Committee (ICC).

Key performance measures
Swisscom aims to have all employees trained in ethics
by 2024.

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Implementation of concept/
assessment of effectiveness
Swisscom in Switzerland and Fastweb in Italy organise
targeted training sessions on all areas of compliance (anti-
corruption/bribery, conflicts of interest, anti-trust law,
data protection and data security, capital market
compliance and human rights) for employees every year
in order to firmly anchor the concept of integrity in the
company in the long term. There is an internal training
cycle that starts with the trainer committee and reaches
all employees via the management.

Risks
Ethical behaviour can give rise to the following risks.
• Damage to reputation: Unethical behaviour can lead
to significant damage to Swisscom’s reputation with
a negative impact on the trust placed in the company
by customers, business partners and the general
public.

• Lack of understanding or training: A lack of training
on, and awareness of, ethical principles can lead to
unintentional violations.

Corporate Governance _______ 1 General principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
2 Group structure and shareholders . . . . . . . . . . . . . . . . . . . 84

3 Capital structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86

4 Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

5 Group Executive Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102

6 Remuneration, shareholdings and loans . . . . . . . . . . . . 108

7 Shareholders’ participation rights . . . . . . . . . . . . . . . . . . . 108

8 Change of control and defensive measures . . . . . . . . . 109

9 Auditor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109

10 Information policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110

11 Financial calendar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

12 Trading blackout periods . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

Remuneration Report ________ 1 Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
2 Remuneration of the Board of Directors . . . . . . . . . . . . 115

3 Remuneration of the Group Executive Board . . . . . . . 119

4 Other remuneration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125

5 Activities at other companies . . . . . . . . . . . . . . . . . . . . . . . 125

6 Gender representation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125

Report of the statutory auditor . . . . . . . . . . . . . . . . . . . . . . . . . 126

Corporate Governance

Majority shareholder
51%

of the shares are held by the Swiss
Confederation (‘Confederation’).

Organisation
Christoph
Aeschlimann

has been Swisscom CEO
since June 2022.

Board of Directors
33%

is the proportion of women
at the end of 2023.

1 General 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,
customers, employees and other interest groups into
their decisions and strive to achieve economic, social and
environmental objectives as part of a holistic approach.
To this end, the Board of Directors practises effective,
trans parent corporate governance, which is characterised
by clearly assigned responsibilities and based on recog
nised standards. In this endeavour, Swisscom is guided by
the recommendations of the 2023 Swiss Code of Best
Practice for Corporate Governance issued by economie
suisse, the umbrella organisation representing Swiss
business.

The dialogue between investors, proxy advisors and
other stakeholder groups with the respective specialist
divisions at Swisscom allows the Board of Directors to
identify trends at an early stage and to adjust its
corpo rate 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
Incorporation and Organisational Rules. The Annual
General Meeting held on 28 March 2023 revised the
Articles of Incorporation to bring them into line with the
company law that entered into force on 1 January 2023.
As a result of these changes, the Board of Directors made
changes to a number of aspects of the Organisational
Rules. The revised rules came into force on 1 April 2023.
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’.
Y 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 2023, the Group comprised the five Group
divisions of Group Business Steering, Group Human
Resources, Group Strategy & Business Development,
Group Communications & Responsibility and Group
Security & Corporate Affairs, which have staff functions,
as well as the business divisions Residential Customers,
Business Customers and IT, Network & Infrastructure.
These are joined by several Group companies, including
Fastweb S.p.A. Società in Italy.

The Board of Directors of Swisscom Ltd delegates dayto
day business management to the CEO of Swisscom Ltd.
The Group Executive Board is comprised of the CEO of
Swisscom Ltd together with the heads of the Group
divisions and the heads of the business divisions.

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t The operational Group structure as at 31 December 2023

is shown in the organisational chart below.

Our customers

Residential
Customers

Business
Customers

IT, Network
& Infrastructure

Fastweb

Group Business
Steering

Group Strategy
& Business Development

Group Security
& Corporate Affairs

Group Human
Resources

Group Communications
& Responsibility

CEO Swisscom AG

Internal Audit

Board of Directors

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
Business Customers. The CEO of Swisscom Ltd is respon
sible 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 and Head of Group
Strategy & Business Development at Swisscom Ltd as well
as one representative 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 purposes. 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 consolidated financial statements.
H See report pages 183–184

For financial reporting purposes, Swisscom’s business
divisions and Group companies are allocated to individual
segments. Further information on segment reporting can
be found in the Management Commentary.
H See report page 39

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Listed company
Swisscom Ltd is a company governed by Swiss law and has
its registered office in Ittigen (Canton of Bern, Switzerland).
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
counter (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 Mellon Corporation issues the American
Deposi tary Shares (ADS). ADS are American securities
that represent Swisscom shares. Ten ADS correspond to
one share. The ADS are evidenced by American Deposi
tary Receipts (ADR).

As at 31 December 2023, the stock market capitalisation
of Swisscom Ltd was CHF 26,212 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 are defined in the FINMA Financial Market
Infrastructure Ordinance (FinMIOFINMA). Under the
FinMIOFINMA, nominee companies unable to inde
pendently decide how voting rights are exercised are not
subject to disclosure requirements. Since a notification
requirement only exists if a shareholding reaches, falls
below or exceeds one of the limits indicated above, the
current percentage of shares actually held by significant
shareholders may at any time differ from the percentage
most recently disclosed.

The shareholding notifications can be viewed on the
website of the SIX Exchange Regulation at https://www.
serag.com/en/resources/notif icationsmarket
participants/significantshareholders.html#/. In the 2023
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

notification requirements (3% and 5%, respectively)
since that time.

As majority shareholder, the Swiss Confederation
(‘Confederation’) held 50.95% of the issued share capital
of Swisscom Ltd on 31 December 2023, which was
unchanged from the previous year. The Telecommu
nications Enterprise Act (TEA) provides that the Swiss
Confederation 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
Chairman 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 Group Security & Corporate
Affairs also take part. During these talks, the participants
examine the status of target achievement. After the
close of the business year, target achievement is assessed
by the Federal Council.
Y See www.swisscom.ch/ziele_2022-2025 (in German)

2.3 Crossshareholdings
No crossshareholdings 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 capital band and no authorised or conditional share
capital. Information concerning equity can be found in
the annual financial statements of Swisscom Ltd.
H See report page 201

3.2 Shares, participation certificates and

profitsharing certificates

All of the shares issued by Swisscom Ltd are fully paidup
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
dividend. There are no preferential rights.

Registered shares of Swisscom Ltd are not issued in certifi
cate form but are held as bookentry 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
dividends). The Bank of New York Mellon Corporation,
which acts as the ADR depositary, is listed as the share
holder in the share register. ADR holders are therefore
unable to directly enforce or exercise share holder 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 profit
sharing certificates.

Further information on the shares is available in Section 7
‘Shareholders’ participation rights’ and in the Management
Report.
H See report pages 108–109

H See report pages 54–55

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 4.5.1 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
restrictions and proxies’.
Y See www.swisscom.ch/basicprinciples

H See report page 108

Swisscom has issued special regulations governing the
registration of trustees and nominees in the share
register. To facilitate the tradability of the company’s
shares on the stock exchange, the Articles of
Incorporation (Article 4.6) 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 necessary 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 resolution of the Annual General Meeting,
for which a majority of the voting shares represented is
required. In accordance with this provision, the Board of
Directors has issued regulations governing the entry of
trustees and nominees in the Swisscom Ltd share
register.
Y See www.swisscom.ch/basicprinciples

The entry of trustees and nominees as shareholders
with voting rights is subject to application and the
conclusion of an agreement by which the trustee or
nominee acknowledges the applicable entry restrictions
and disclosure obligations as binding. Trustees and
nominees related in terms of capital or voting rights
either contractually 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
consol id ated financial statements.
H See report pages 147–149

Swisscom does not issue options on registered shares of
Swisscom Ltd to its employees.

4 Board of Directors

4.1 Members of the Board of Directors
Barbara Frei left the Board of Directors on 28 March
2023. On the very same day, the Annual General Meeting
appointed Monique Bourquin as a new member and
reelected all other members to be elected by the Annual
General Meeting. The Federal Council has appointed

Fritz Zurbrügg to the Board of Directors. He replaces the
previous representative of the Confederation, Renzo
Simoni. As of 31 December 2023, the Board of Directors
comprised the following nonexecutive members.

Name

Michael Rechsteiner 1

Roland Abt

Monique Bourquin

Alain Carrupt

Guus Dekkers

Frank Esser

Sandra Lathion-Zweifel

Anna Mossberg

Fritz Zurbrügg 2

Nationality

Switzerland

Netherlands

Germany

Switzerland

Sweden

Switzerland

Year of birth

Function

Taking office at the
Annual General Meeting

1963

1957

1966

1955

1965

1958

1976

1972

1960

Chairman

Member

Member, representative of the employees

Member

Deputy Chairman

Member, representative of the employees

Member

Member, representative of the Confederation

2019

2016

2023

2016

2021

2014

2019

2018

2023

1 Chairman since 31 March 2021.

2 Designated by the Swiss Confederation.

4.2 Education, professional activities

and affiliations

Key details of the career and qualifications of each
member of the Board of Directors are provided in the
summary below, along with the mandates held outside
the Group and other significant activities. The Board
members 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
professional lives. If the Chairman is concerned, he shall
consult 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. Awareness of dealing with
affiliations is raised in the Board of Directors as part of
the annual internal training session that focuses on
stock exchange regulations, as well as in the annual
further training sessions. Details on the regulation of
in particular the number of
external mandates,
permissible external mandates and the definition of the
term ‘mandate’, are set out in Article 9.3 of the Articles
of Incorporation. On 28 March 2023, the Annual General
Meeting consented to an increase in the number of
permissible external mandates in listed companies from
three to four. No member exceeds the limits set for
external mandates.
Y 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 matter
that could potentially affect specific interests, or 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. If the member of
the Board of Directors is subject to conflicting interests
or has to safeguard such interests (conflict of interest),
the Board of Directors makes a decision that is
commensurate with the intensity of the conflict of
interest in order to ensure that the interests of the
company are safeguarded independently. It looks, first
and foremost, at whether the member of the Board of
Directors concerned has to abstain or whether a double
resolution with and without the member affected by
the conflict is sufficient. In the event of an abstention,
the Board of Directors decides whether this abstention
– depending on the intensity of the conflict – applies
only to the resolution or also to the consultation session
before the resolution is passed.

Michael Rechsteiner
Master of Science in Mechanical Engineering, ETH
Zurich; Executive 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 COO, 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;
April 2021–April 2022 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 and
has broad international experience in business and
management. In particular, he contributes his expertise
and experience
innovation and
in the areas of
technology, business customers, mergers & acquisitions,
resources, and
strategy,
environmental, social & governance (ESG) to the Board
of Directors.

transformation, human

Mandates in companies
–

Mandates in interest groups, associations,
institutions and foundations, and employee
retirement-benefit foundations
–

Mandates by order of Swisscom
Member of the Board of Directors and the Board
Committee of economiesuisse

Other significant activities
–

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Roland Abt
Doctorate in Business Administration (Dr. oec.)
University of St. Gallen (HSG)

Monique Bourquin
Degree in Business Administration (lic. oec.)
University of St.Gallen (HSG)

Career history
1985–1987 CFO of a group of companies with operations
in the areas of IT and real estate; 1987–1996 Eternit Group
(later Nueva Group): 1987–1991 Head of Controlling,
1991–1993 CEO, Industrias Plycem, Venezuela, 1993–1996
Division Manager, Fibre Cement Activities; 1996–2016
Georg Fischer Group: 1996–1997 CFO, GF Piping Systems,
1997–2004 CFO, Agie Charmilles Group (currently GF
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, law 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 Eisenbergwerk
Gonzen AG, Sargans; member of the Board of Directors of
Raiffeisenbank Zufikon; until June 2023 Chairman of the
Board of Directors of Conzzeta Management AG, Zurich

Mandates in interest groups, associations,
institutions and foundations, and employee
retirement-benefit foundations
President of the Board of Trustees of Fürsorgestiftung
Conzzeta, Zurich; President of the Board of Trustees of
Pensionskasse Conzzeta, Zurich

Switzerland;

Career history
1990–1994 Strategy and Corporate Finance Consultant,
PricewaterhouseCoopers
1994–1997
Marketing and Sales, Unilever AG (formerly Knorr Nährmittel
AG); 1997–1999 Head of Key Account Management (Sales),
Rivella AG; 1999–2002 Country Manager (Marketing &
Sales), Mövenpick Schweiz AG; 2002–2007 Head of Sales,
Executive Board Member, Unilever Schweiz GmbH; 2008–
2012 CEO, Executive Board Member, Unilever Schweiz
GmbH incl. Oswald GmbH; 2012–2016 CFO DACH Region,
Executive Board Member, Unilever Deutschland GmbH

Key competencies
international
Monique Bourquin has
experience in business and management in the private
customer segment. In particular, she contributes expertise in
matters relating to strategy, brand management, marketing,
sales, finance and human resources to the Board of Directors.

longstanding

Mandates in listed companies
Member of the Board of Directors, the Market
Committee, the Compensation Committee and the
Agricultural Council at Emmi AG, Lucerne; since April
2023, member of the Board of Directors and Chair of the
Compensation Committee Chocoladefabriken Lindt &
Sprüngli AG, Kilchberg

Mandates in non-listed companies
Member of the Board of Directors of Kambly Holding AG,
Trubschachen; member of the Board of Directors of W.
Kündig & Cie AG, Zurich; President of the Board of the Swiss
branded goods association Promarca, Bern; until May 2023
member of the Board of Directors of Weleda AG; since May
2023 member of the Board of Directors of Rivella AG, Rothrist

Other significant activities
Member of the Advisory Board of Fondation Swiss Board
Institute, Geneva; member of the Foundation Board of
for Technical Cooperation
the Swiss Foundation
Swisscontact, Zurich

Other significant activities
–

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 Telecommunications
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 association,
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,
Martigny

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
functions, mainly in the area of business process
optimisations; 2002–2005 Head of
Information
Technology Europe & International and Vice President,
Johnson Controls Automotive; 2005–2007 CIO and Vice
President, Siemens VDO Automotive AG, Germany;
2008–2016 CIO, Airbus Group, France; since April 2018
CTO and member of the Executive Committee, Tesco
PLC, London

knowledge

contributes

Key competencies
Guus Dekkers has gained broad international experience
in business and management from various sectors. He
especially
the
telecommunications and IT sectors to the Board of
Directors. Furthermore, he complements the Board of
Directors with his expertise and experience in the areas
of innovation, technology and digitalisation as well as
mergers & acquisitions, strategy, transformation and
human resources, in both business and private customer
segments.

Mandates in listed companies
CTO and member of the Executive Committee, Tesco
PLC, London

Mandates in non-listed companies
–

Other significant activities
Member of the Advisory Board of the Fraunhofer
Institute
Information Technology SIT,
Darmstadt; member of the Advisory Board of the
National Research Center for Cybersecurity ATHENE,
Darmstadt

for Secure

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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
Mannesmann Eurokom; 2000–2012 Société française du
radiotéléphone (SFR): 2000–2002 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 in the telecommunications
industry. In particular, he brings to the Board of Directors
his expertise in the business and private customer
segments, and his experience in the areas of technology,
mergers & acquisitions, strategy and human resources.

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 Mergers & acquisitions lawyer, Lenz &
Staehelin law firm, Zurich; 2010–2014 Head of Legal &
Compliance Financial Products, Credit Suisse AG, Zurich;
2014–2018 Head of department
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 LathionZweifel brings her legal expertise to the
Board of Directors as well as experience in the areas of
mergers & acquisitions, banking and finance, asset
management, strategy, human resources and ESG.

Mandates in listed companies
Chairman of the Board of Directors of SES S.A.,
Luxembourg

Mandates in listed companies
–

Mandates in non-listed companies
–

Other significant activities
–

Mandates in non-listed companies
Member of the Board of Directors and the Audit
Committee and president of the Nomination and
Remuneration Committee of the Raiffeisen Switzerland
cooperative, St. Gallen

Other significant activities
Member of the Advisory Board of the CMTA – The Capital
Markets and Technology Association, Geneva; member
of the Executive Board of swissVR, Rotkreuz; since June
2023, member of the Advisory Board of the association
Lucerne Dialogue, Lucerne

Fritz Zurbrügg
Doctorate in Economics (Dr. rer. pol.)

Career history
1992–1994 Economist, International Monetary Fund
(IMF); 1994–1998 Head of IMF and International Financing
Section, Swiss Federal Finance Administration (FFA);
1998–2006 Senior Advisor and Executive Director of the
Swiss Constituency, IMF Washington, D.C.; 2006–2012
FFA: 2006–2010 Head of the Fiscal Policy, Fiscal
Equalisation and Financial Statistics Division, 2010–2012
Director of the FFA; 2012–2022 Swiss National Bank (SNB):
2012–2015 Member of the Governing Board, 20152022
Vice–Chair of the Governing Board, SNB

Key competencies
Fritz Zurbrügg contributes his broad
international
experience and expertise in the fields of finance and risk
management, as well as his management experience, to
the Board of Directors.

Mandates in listed companies
–

Mandates in non-listed companies
–

Other significant activities
–

Anna Mossberg
Executive MBA for Growing Companies,
Stanford Business School, Palo Alto;
Executive MBA, IE University, Madrid;
Master of Science, Industrial Engineering and
Management, Luleå University of Technology

Career history
1996–2010 Telia: in various roles, including Vice President
and Head of Business & Product Management, Head of
Internet, Consumer Segment, Director Data Services,
Product & Services; 2010 CEO, Bahnhof AB, Stockholm;
2012– 2014 Senior Vice President Strategy and Portfolio
Management, Deutsche Telekom; 2015–2018 member of
the Management Team, Google Ltd, Sweden; 2021–2022
Managing Director, Silo AI, Sweden

Key competencies
Anna Mossberg has international business and leadership
experience
in the telecommunications, media and
entertainment sector. In particular, she brings to the
Board of Directors her expertise and experience in the
areas of telecommunications, innovation, digitalisation,
finance, mergers & acquisitions, human resources and
strategy in the private and business customer segments.

Mandates in listed companies
Member of the Board of Directors, Remuneration &
Sustainability Committee and Audit Committee of
Swedbank AB, Stockholm; member of the Board of
Directors of Orkla ASA, Oslo; member of the Board of
Directors of Volvo Cars AB, Gothenburg

Mandates in non-listed companies
Since March 2023, member of the Board of Directors, the
Nomination and Compensation Committee and the AI
Advisory Board of Ringier AG

Other significant activities
Member of the Advisory Board of Axcel Management
A/S, Copenhagen; member of the Strategic Advisory
Board of the Boards Impact Forum

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4.3 Composition of the Board of Directors
its
regularly examines
The Board of Directors
composition and plans the appointments to the
committee positions 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 2023

Telecommunications,
IT, Media and/or
entertainment

Innovation, technology
and/or digitalisation

Residential Customers
(B2C)

Business Customers
(B2B)

International
business experience

44%
(4)

56%
(5)

67%
(6)

Finance, Risk Management
and/or M&A

100%
(9)

Strategy and/or Transfor-
mation

Human Resources

Legal

Environmental, Social
& Governance

Leadership position in
top management

Member of the Board
of Directors in stock ex-
change listed companies

89%
(8)

22%
(2)

33%
(3)

89%
(8)

56%
(5)

Role

Specialization

Sector

Board of Directors by length of term of office
In % and (number of members) as of 31 December 2023

56%
(5)

33%
(3)

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 2023

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
directors of listed companies.

Independent members are

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.
thus
understood to mean nonexecutive 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,
who were never a member of the external audit team as
auditorincharge or who have not been a member of the
external audit team as auditorincharge for at least two
years, or 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. All members of
the Board of Directors are considered to be independent
based on these criteria. The Swiss Confederation,
represented on the Board by Fritz Zurbrügg, 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.
H See report page 188

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
for their employee
entitled to make proposals
representatives. Alain Carrupt was nominated as
employee representative by the syndicom trade union
and Sandra LathionZweifel was nominated as employee
representative by the transfair staff association. The
employee representatives are elected by the share
holders 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 representative 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.
Reelection 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
member(s) of the Compensation Committee to serve
until the conclusion of the next Annual General Meeting.
Otherwise, 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 .

it possible for
The flexible arrangement makes
shareholders to extend the maximum term of office in
exceptional 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 Confed
eration are determined 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 welldiversified and can
nominate new members as needed in the future. As a
guide for the adhoc 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
evaluates potential candidates and makes recommen
dations 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 Meeting 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 Directors
and its individual committees generally assess their own
performance and efficiency once a year in December or
January on the basis of a survey sent out in advance. This
selfevaluation asks them to assess both the work of the
respective body as well as the performance of the Board
or Committee Chairman. The evaluation 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 Committees meet to
discuss the results of the survey and formulate goals and
measures for the following/current year. In 2022, 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.
It developed measures based on this
assessment in January 2023 and then implemented
them in the reporting year. The measures include
expanding the authorities granted to the Compensation
and Finance Committees
(renamed Strategy &
Investments), making the schedule more flexible (by
convening brief adhoc meetings online and reducing
the number of ordinary meetings from 2024 onwards)
and further developing the members’ competencies.
The Chairman also conducts a oneonone annual
discussion with each member in which possibilities for
further individual development are addressed.

Once a year, a oneday mandatory training course is held,
most recently in January 2023 and 2024. Occasional study
trips are organised, allowing members of the Board of

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Directors to familiarise themselves with a range of
companies, upandcoming new technologies, innovations
and emerging business trends first hand. In October 2023,
the Board of Directors organised a oneweek study trip to
South Korea and Japan. Three to four times per year, the
members of the Board of Directors 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 addition, all the members of the Board of
Directors attend the Swisscom Group’s annual management
meeting whenever possible. New Board members are given
a taskspecific introduction to their duties. At a twoday
introduction, they are provided with an overview of Group
management, the business and the current operational
challenges. In addition, they are introduced to topics related
to the Italian subsidiary Fastweb S.p.A. and attend function
related induction and 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 function 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 ViceChairman, Frank Esser, takes over the Chair
man’s tasks.
Y 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
to ring the company’s executive management. As the
supreme governing body of the company, it has
decisionmaking authority unless such authority is
granted to the Annual General Meeting by virtue
of law.

Total
Average duration (in hours)
Participation:
Michael Rechsteiner, Chairman
Roland Abt
Monique Bourquin 1
Alain Carrupt
Guus Dekkers
Frank Esser, Deputy Chairman
Barbara Frei 2
Sandra Lathion-Zweifel
Anna Mossberg
Renzo Simoni 2
Fritz Zurbrügg 1

The Board of Directors is usually convened once per
month by the Chairman (except in May, July and
November, as of 2024 also March and September) for a
onetotwoday meeting.
Further meetings are
convened as business requires (adhoc meetings). In the
event that the Chairman is hindered, the meeting is
convened by the ViceChairman. The Chairman sets the
agenda. Any Board member may request the inclusion of
further items on the agenda. The Board members receive
the agenda and documentation approximately ten days
prior to the meetings, so that they can prepare. The CEO,
the CFO and the Head of Group Security & Corporate
Affairs always attend the Board meetings as well. At
every ordinary meeting, the Chairman of the Board and
the CEO report on particular events, on the general
course of business and major business transactions, and
on any measures that have been implemented. In
addition, the Board of Directors can invite 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 meetings as
dictated by the specific issues being addressed. This
ensures appropriate reporting to the members of the
Board of Directors. During the year under review, the
Board of Directors did not call on any external
consultants. The final meeting on the external assess
ment of the Board of Directors held in January 2023 was
attended by the consultants called upon in 2022.

The duties, responsibilities and modus operandi of the
Board of Directors and its conduct with respect to
conflicts of interest are defined in the Organisational
Rules and
in the rules governing the standing
committees.
Y See www.swisscom.ch/basicprinciples

t The following table gives an overview of the Board of
Directors’ meetings and circular resolutions in 2023.
Individual meetings were held by video conference.

Meeting days

Ad-hoc meetings

Circular resolutions

12
05:10

6
01:05

12
12
8
12
12
12
3
12
12
3
9

6
6
6
6
5
6
0
6
6
0
6

–
–

–
–
–
–
–
–
–
–
–
–
–

1 Elected to the Board of Directors on 28 March 2023.

2 Left the Board of Directors on 28 March 2023.

4.10 Committees of the Board of Directors
The Board of Directors has delegated individual tasks to
committees. The standing committees of the Board of

Directors of Swisscom Ltd were constituted as follows as
at 31 December 2023.

Board of Directors

Strategy & Investments
Committee
Frank Esser 1
Alain Carrupt
Guus Dekkers
Anna Mossberg
Michael Rechsteiner

Audit & ESG
Reporting Committee
Roland Abt 1
Sandra Lathion-Zweifel
Fritz Zurbrügg
Michael Rechsteiner

Compensation Committee
Monique Bourquin 1
Roland Abt
Frank Esser
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,
Strategy & Investments (until 31 March 2023: Finance
Committee), Audit & ESG Reporting and Compensation,
as well as one adhoc committee (Nomination) tasked
with carrying out detailed examinations of matters of
importance. It may appoint further ad hoc committees
as required. In accordance with the rules governing the
standing 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 latest committee meetings at the
next meeting of the Board of Directors. All members of
the Board of Directors also receive copies of all meeting
minutes from the Strategy & Investments Committee as
well as the Audit & ESG Reporting Committee. The
minutes of the Compensation Committee and the
Nomination Committees are sent to the other members
of the Board of Directors upon request.

Strategy & Investments Committee
The Finance Committee was renamed Strategy &
Investments as of 1 April 2023 and has also been
assigned a wider range of responsibilities. It prepares
information relating to corporate policy, strategy and
transactions for the Board of Directors. These matters
include, by way of example, the Group strategy and the

strategies pursued by key strategic Group companies,
setting up or dissolving significant Group companies,
acquiring or disposing of significant shareholdings, and
entering into or terminating strategic alliances. The
Committee also acts in an advisory capacity on matters
relating to major investments and divestments and
examines specific current issues in depth. The Strategy
& Investments Committee has the ultimate decision
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 Strategy &
Investments Committee rules of
procedure.
Y See www.swisscom.ch/basicprinciples

The Strategy & Investments Committee is convened
by the Chairman or at the request of a Committee
member as often as business requires, but as a rule
once per quarter within the framework of a halfday
meeting. The CEO, the CFO, the Head of Group Strategy
& Business Development and the Head of Group
Security & Corporate Affairs always participate in the
committee meetings. In 2023, all the meetings 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 Strategy &
Investments Committee did not call on any external
consultants during the reporting year.

t The following table gives an overview of the Strategy &
Investments Committee’s (until 31 March 2023,
Finance Committee’s) meetings and circular resolu
tions in 2023.

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
business relating to financial management
(for
example, accounting, financial controlling, financial
planning, tax strategy and financing), assurance (risk
management, the internal control system, compliance,
internal audit, data protection and security), external
audit and both financial and nonfinancial reporting. It
also handles matters dealt with by the Board of
Directors that call for specific financial expertise
(dividend policy, for example) and performs ESG
(Environmental, Social and Governance) monitoring
tasks. The Committee is the Board of Directors’ most
important controlling instrument and is responsible for
formulates
monitoring Groupwide assurance.
positions on business matters which lie within the
decisionmaking authority of the Board of Directors
and has the final say on those business matters for
which it has the decisionmaking authority. Details of
the Committee’s activities and responsibilities are set
out in the rules of procedure of the Audit & ESG
Reporting Committee.
Y See www.swisscom.ch/basicprinciples

Meetings

Ad-hoc meetings

Circular resolutions

03:35

–

The Audit & ESG Reporting Committee is composed of
four independent members. The Chairman of the
Committee is an expert in the financial field, and the
majority 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
Committee member as often as business requires, but
at least once per quarter and one additional time in
December. The meetings usually last between three
and six hours. The CEO, CFO, Head of Group Security &
Corporate Affairs, Head of Accounting, Head of Internal
Audit and the external auditors always attend the
meetings. In 2023, 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 independent third parties such as lawyers,
public accountants 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 members of the Committee also meet with
the persons responsible 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 2023.

Total

Average duration (in hours)

Participation:

Roland Abt, Chairman 1

Sandra Lathion-Zweifel

Renzo Simoni 2

Michael Rechsteiner

Fritz Zurbrügg 3

Meetings

Ad-hoc meetings

Circular resolutions

03:50

–

1 Financial expert.
2 Left the Board of Directors on 28 March 2023.

3 Elected to the Board of Directors on 28 March 2023.

Compensation Committee
For information on the Compensation Committee, refer
to the section ‘Remuneration Report’.
H See report page 113

Nomination Committee
The Nomination Committee is formed on an adhoc
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 casebycase
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 decisionmaking 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
election and approval of members of the Board of
Directors. The Nomination Committee is convened by
the Chairman or at the request of a Committee member
as often as business requires. In the 2023 financial year,
the topic of succession was addressed by two adhoc
Nomination Committees, one each for the Executive
Committee and for the Board of Directors.

The following four members of the adhoc Nomination
Committee for the Executive Committee met once for
two hours and five minutes:
• Michael Rechsteiner (Chair)
• Monique Bourquin
• Sandra LathionZweifel
• Fritz Zurbrügg

The following members of the adhoc Nomination Com
mittee for the Board of Directors met once for one hour:
• Michael Rechsteiner (Chair)
• Sandra LathionZweifel
• Fritz Zurbrügg

All committee 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
transferable 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 strategies, taking into account the goals that
the Swiss Confederation, as majority shareholder, aims
to achieve. The Federal Council formulates these goals
for a fouryear period in accordance with the provisions
of the TEA. The Federal Council defined the goals for the
period from 2022 to 2025 in 2021.
Y See www.swisscom.ch/ziele_2022-2025 (in German)

The Board of Directors has delegated daytoday
business 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
Directors decides on business transactions of major
importance to the Group, including, for example, the
acquisition or disposal of companies with a financial
exposure in excess of CHF 20 million and capital
investments or divestments with a financial exposure in
excess of CHF 50 million. Since 2022, the Board of
Directors has also assumed overall responsibility for ESG
(environmental, social, governance) issues, approved the

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100

sustainability strategy as part of the corporate strategy
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). ESG gover
nance is described in the Section Report on nonfinancial
matters.
Y See www.swisscom.ch/basicprinciples

H See report page 60

4.12 Information and controlling

instruments of the Board of Directors
visàvis 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 indepth 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
indicators 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 operations and risk position of the Group and
the segments. It also receives projections for operational
and financial developments for the current financial
year. The management reporting is carried out in
accordance with the same financial statement reporting
policies as for external financial reporting. It also
includes key nonfinancial information that is important
for controlling and steering purposes. The Board of
Directors is informed in writing about other current or
material issues on an ongoing and timely basis. Every
member of the Board of Directors 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 recusal 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 Groupwide assurance functions of
risk management, internal control system, compliance
and internal audit.

value

through

enterprise

company’s

Risk management
The Board of Directors has set the objective of protecting
the
the
implementation of Groupwide risk management. A
corporate culture that promotes the conscious handling
of risks facilitates the achievement of this objective.
Accordingly, Swisscom has implemented a Groupwide,
central risk management system that is based on ISO
Standard 31000 and takes account of both external and
internal events. Swisscom engages in levelappropriate,
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 the Head of Group Security & Corporate
Affairs, works closely with the Controlling and Strategy
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, the potential effects and
the status of the corresponding measures. In urgent
cases, the Chairman of the Audit & ESG Reporting
informed without delay about any
Committee
significant new risks. Once a year, the Head of Risk
Management consults with the Audit & ESG Reporting
Committee (without management involvement).

The risk factors are described in the Risks section of the
Management Commentary.
H See report pages 56–57

Internal control system for financial reporting
The internal control system (ICS) ensures the reliability of
financial reporting with an appropriate degree of
assurance. It acts to prevent, uncover and correct
substantial errors
the consolidated financial
statements, the financial statements of the Group
companies and the Remuneration Report. The ICS
encompasses the following internal control components:
control environment, assessment of accounting risks,
control activities, monitoring 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 monitoring 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. Appropriate 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.

The internal control system for nonfinancial reporting is
currently being set up. The 2023 Sustainability Impact
Report was audited by SGS and compliance with the
Global Reporting Initiative (GRI) was confirmed. In the
reporting year, Internal Audit also conducted an audit in
connection with the new statutory requirements.

Compliance management
The Groupwide central Compliance Management System
(CMS) is designed to prevent compliance violations in
order to protect the Swisscom Group, its executive bodies
and employees from legal sanctions, financial losses and
reputational damage.

The CMS covers the following legal areas:
• Anticorruption
• Antimoney laundering
• Data protection and confidentiality
• Competition law
• Telecommunications law
• Stock exchange law

Swisscom enhanced its CMS in line with the ISO 37301
standard in 2023. The Group’s central compliance
functions as well as the compliance officers and
managers of the business 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,
external auditors will continue to conduct a specific
audit in the area of money laundering law on an annual
or biennial basis.

Twice a year, Group Compliance reports directly to the
Board of Directors Audit & ESG Reporting 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.

Further
information on governance regarding the
handling of data can be found in the 2023 Sustainability
Impact Report.
Y See www.swisscom.ch/basicprinciples

Y See www.swisscom.ch/sir2023

Internal auditing
Internal auditing is carried out by the Internal Audit unit.
Internal Audit supports the Swisscom Ltd Board of
Directors and its Audit & ESG Reporting Committee in
fulfilling their statutory and regulatory supervisory and
controlling obligations. Internal Audit also supports
management by highlighting opportunities
for
improving business processes and controls as well as the
assurance functions. It documents the audit findings
and monitors the implementation of measures.

is responsible for planning and
Internal Audit
performing audits throughout the Group in compliance
with professional auditing standards and possesses
maximum 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 administrative level, Internal Audit provides reports
to the Head of Group Security & Corporate Affairs.
Once a year, the Head of Internal Audit consults with
the Audit & ESG Reporting Committee (without man
age ment involvement).

liaises

Internal Audit
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 coordination with the external auditors,
Internal Audit prepares 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 whistleblowing 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 whistleblowing platform
and the implementation status of the audit plan. The
Head of Internal Audit took part in all five meetings of
the Audit & ESG Reporting Committee in 2023.

101

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. On 1 March 2023,
Gerd Niehage was appointed Head of IT, Network &
Infrastructure, which had been managed on an interim
basis by the CEO since 1 June 2022. The Board of Directors
expanded the Group Executive Board from six to nine

members as of 1 April 2023. The Head of Group Security
& Corporate Affairs and the Head of Group Communi
cations & Responsibility started in their new roles
immediately, while the new Head of Group Strategy &
Business Development appointed by the Board of
Directors started on 1 June 2023. The Head of Group
Commu ni cations & Responsibility, Stefan Nünlist, will
be leaving the Group Executive Board on 31 May 2024.
The Board of Directors appointed Myriam Käser as his
successor effective 1 June 2024.
H See report page 84

Y See www.swisscom.ch/change_myriam_kaeser

t An overview of the composition of the Group Executive
Board as at 31 December 2023 is given in the table below.

Name

Nationality

Year of birth

Function

Appointed to the Group
Executive Board as of

Christoph Aeschlimann 1
Urs Lehner
Isa Müller-Wegner
Gerd Niehage
Stefan Nünlist
Klementina Pejic
Eugen Stermetz
Martin Vögeli
Dirk Wierzbitzki

1 Since June 2022 CEO.

102

Switzerland
Switzerland
Switzerland, Germany
Germany
Switzerland
Germany
Austria
Switzerland
Germany

1977
1968
1977
1970
1961
1974
1972
1969
1965

CEO Swisscom Ltd
Head of Business Customers
Head of Group Strategy & Business Development
Head of IT, Network & Infrastructure, CTIO
Head of Communications & Responsiblity
Head of Group Human Resources, CPO
Head of Group Business Steering, CFO
Head of Group Security & Corporate Affairs
Head of Residential Customers

February 2019
June 2017
June 2023
March 2023
April 2023
February 2021
March 2021
April 2023
January 2016

5.2 Education, professional activities

and affiliations

Key details of the careers and qualifications of the
members of the Group Executive Board are provided
below along with a summary of the mandates they hold
outside 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
Chairman of the Board of Directors. Details on the
regulation of external mandates, in particular the
number of permissible external mandates and the defi
ni tion of the term ‘mandate’, are set out in Article 9.3 of
the Articles of Incorporation. None of the members of
the Group Executive Board exceeds the set limits for
mandates. The members of the Group Executive Board
perform their other significant activities by order of
Swisscom.
Y 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
conflicts of interest are avoided as far as possible. Should
a matter that could potentially affect specific interests,
or a conflict of interest, nevertheless arise, the member
concerned must inform the CEO and/or Chairman of the
Board of Directors immediately. If the member of the
Group Executive Board is subject to conflicting interests
or has to safeguard such interests (conflict of interest),
the CEO/Chairman of the Board makes a decision that is
commensurate with the intensity of the conflict of
interest in order to ensure that the interests of the
company are safeguarded independently. The latter
looks, first and foremost, at whether the member of the
Group Executive Board concerned has to abstain or
whether a double resolution with and without the
member affected by the conflict is sufficient.

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
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 DACH & CIS, BSB;
2012–2018 ERNI Group: 2012–2014 Business Area
Manager, 2014–2017 Managing Director Switzerland,
2017–2018 CEO; since February 2019 Swisscom Ltd:
2019–June 2023 Head of IT, Network & Infrastructure
and member of the Swisscom Group Executive Board,
since June 2022 CEO and Chairman of the Group
Executive Board

Mandates by order of Swisscom
Member of the Executive Board, Association Suisse des
Télécommunications (asut), Bern; member of the Board
of Trustees of the Swiss Entrepreneurs Foundation, Bern;
member of the international Advisory Committee of the
ZHAW School of Management and Law, Winterthur;
member of the Board of IMD Foundation, Lausanne

Other significant activities
Member of the Executive Board, Glasfasernetz Schweiz,
Bern; member of
the Steering Committee of
digitalswitzerland Zurich; since May 2023 member of
the Swiss Academy of Engineering Sciences (SATW),
Zurich; since May 2023 member of the Advisory Board of
the Geneva School of Economics and Management at
the University of Geneva; since November 2023 member
of the Board of the Economic Society of the Canton of
Bern (VWG Bern); since June member of the Board of
Directors of the SwissAmerican Chamber of Commerce,
Zurich

103

Urs Lehner
Degree in IT Engineering, Executive MBA in
Business Engineering, University of St. Gallen (HSG)

Isa Müller-Wegner
MBA, Harvard Business School
MA PPE, Oxford University

Career history
1997–2013 Trivadis Group: 2004–2008 Solution
Portfolio Manager, member of the Executive Board of
Trivadis Group, 2008–2011 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 Enterprise 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 Executive Board

London;

Career history
1999–2002 Consultant, Arthur D. Little, London; 2002–
for Television, British
2003 Business Strategist
Broadcasting
2005–2007
Corporation,
Consultant, Bain & Company, London; 2007–2014
Principal, Bain & Company, Zurich; 2014–2019 ebay
International Inc., Zurich: 2014–2015 Head of EMEA
Strategy, 2015–2017 COO Emerging European Countries,
2017–2019 General Manager Emerging European
Markets; 2019–2023 Executive Vice President, Bain
Capital Private Equity, London; since June 2023 Swisscom
Ltd: Head of Group Strategy & Business Development
and member of the Group Executive Board

Mandates by order of Swisscom
–

Other significant activities
–

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Gerd Niehage
Degree in Business Information Technology
(Dipl.-Inform. (FH), 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 Managing Partner, Niehage Lippstädter
Softwarehaus GmbH; 2001–2002 Senior Consultant and
Project Manager, INFORA GmbH, IT consulting company
for public administration; 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
CIO, B. Braun Group, Melsungen; 2021–2022 ZF Group:
Global Head of Data/AI, IT Innovation & EAM and
Regional CIO APAC, Shanghai; since March 2023
Swisscom Ltd: CTIO and member of the Group Executive
Board

Mandates by order of Swisscom
–

Other significant activities
–

Stefan Nünlist
Degree in law, lawyer and notary

Career history
1988–1991 lawyer and notary, office of Dr Rudolf
Steiner; 1991–1996 Diplomat, FDFA; 1996–1998
Personal Assistant to Federal Councillors Delamuraz and
Couchepin, FDEA; 1998–2000 Head of Communications
and Energy Policy, Atel; 2001–2010 CCO and member of
the Group Executive Board Swisscom Ltd; 2010–2012
CCO, SBB; 2012–2013 Head of Communications, UBS
Switzerland; since 2013 Swisscom Ltd: Head of Group
Communications & Responsibility, and since April 2023
member of the Group Executive Board

Mandates in non-listed companies
Since April 2023 member of the Board of Directors of
TONET AG, Dulliken

Mandates by order of Swisscom
Member of the Board of Directors of Cargo sous terrain AG,
Basel

Other significant activities
President of the Liberal Democrats (FDP) Canton
Solothurn; Delegate at UNICEF Switzerland; President
of the SGK Foundation; member of the Solothurn
Cantonal Council

105

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Klementina Pejic
Dortmund University of Applied Sciences;
École Supérieure des Sciences Économique
et Commerciales ESSEC, Cergy-Pontoise,
International Business MA

Career history
2001–2002 Consultant, Watson Wyatt AG, Zurich;
International AG: 2003–2004
2003–2020 Clariant
Divisional HR Manager, 2005–2007 Global HR Business
Partner, 2008–2009 Head Management Development
Europe, 2010–2011 Head Global Talent Management,
2012–2013 Head Senior Management Development,
2014–2017 Head SMD & People Excellence, 2018–
January 2021 Head Human Resources; since February
2021 Swisscom Ltd: CPO and member of the Group
Executive Board

Mandates by order of Swisscom
Member of the Board of Trustees of the comPlan pension
fund, Bern

Other significant activities
Member of the Institute Council of the international
institute of management in technology (iimt) at the
University of Fribourg

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

Career history
1996–2000 Boston Consulting Group, Munich and
Vienna; 2001–2005 CFO, Igeneon AG, Vienna; 2006–
2008 CFO and Managing Director, Fstar 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 CFO
and member of the Swisscom Group Executive Board

Mandates by order of Swisscom
Until December 2022 Vice President, since January 2023
President of the Board of Trustees of the comPlan
pension fund, Bern

Other significant activities
–

Martin Vögeli
Licentiate in Economics from the University
of Bern/Master of Advanced Studies in Business
Psychology from the University of Applied
Sciences and Arts Northwestern Switzerland

Career history
Swisscom Ltd: 1998–2000 Head of Wholesale Regulatory,
2001–2005 Head of Risk Management, 2006 Head of the
Related Business growth initiative project/designated
Secretary of the Board of Directors, since 2007, Secretary
of the Board of Directors, November 2013–2022 Head of
Group Strategy & Board Services, since January 2023
Head of Group Security & Corporate Affairs, since April
2023 member of the Group Executive Board

Mandates by order of Swisscom
Member of the Board of Directors of Creaholic SA, Biel

Other significant activities
–

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
Commercial Terminals, 2006–2008 Director of Consumer
Internet Services and Platforms, 2008–2010 Director of
Communications
Swisscom
(Switzerland) Ltd: member of the Management Board
for Residential Customers, 2010–2012 Head of Customer
Experience Design for Residential Customers, 2013–
2015 Head of Fixednetwork Business & 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

Services; 2010–2015

Mandates by order of Swisscom
Member of the Board of Directors of SoftAtHome, Paris

Other significant activities
–

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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.
H See report page 113

7 Shareholders’ participation rights

7.1 Voting right restrictions and proxies
Each registered share entitles the holder to one vote.
Voting 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
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. 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 4.5.1 of the
Articles of Incorporation.
Y 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 Article 4.5 of the Articles of Incorporation.
Y 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 a majority of the
votes represented 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.

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 votes represented. In addition to the

special quorum requirements under the Swiss Code of
Obligations, a twothirds majority of the voting shares
represented is required in the following cases:
•
• change in the Articles of Incorporation concerning

introduction of restrictions on voting rights

special quorums for resolutions

7.3 Convocation of the Annual General

Meeting and agenda items

The Board of Directors can order that the Annual General
Meeting be held either with a meeting venue or
electronically without any physical venue (virtual event).
The Board of Directors can also allow shareholders who
are not present at the venue to exercise their rights
electronically (hybrid event).

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 letter or by way of an electronic notice to the share
holders registered in the share register. One or more
shareholders who together represent at least 5% of the
share capital can demand in writing that an extraordinary
general meeting be convened, 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 6.4.3 of the Articles of
Incorporation).
Y See www.swisscom.ch/basicprinciples

7.4 Representation at the

Annual General Meeting

Shareholders may be represented at the Annual General
Meeting by their legal representative, a representative
of their choosing 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 2024.

A power of attorney may be granted in writing or
electronically via the shareholder portal operated by
Computershare Switzerland Ltd. Shareholders who are
issue
represented by the
instructions for each agenda item and also for all
unannounced agenda items and motions using the forms
prepared by the Board of Directors and indicate whether

independent proxy may

they wish to vote for or against a motion in line with the
Board of Directors, or to abstain. The independent proxy
must cast the votes entrusted to it by shareholders
according to the shareholders’ instructions. If it does not
receive instructions, it will abstain (Article 6.7.4 of the
Articles of Incorporation).
Y See www.swisscom.ch/basicprinciples

7.5 Entries in the share register
Shareholders entered in the share register with voting
rights are entitled to vote at the Annual General Meeting.
To ensure due procedure, the Board of Directors defines
a cutoff date at its own discretion for determining
voting entitlements, which is normally three business
days before the respective Annual General Meeting.
Entries in and deletions from the share register can be
made at any time, regardless of the cutoff date. The cut
off date is announced with the invitation to the Annual
General Meeting and also published in the financial
calendar on the Swisscom website. Shareholders entered
in the share register with voting rights as of 5 p.m. on
23 March 2023 were entitled to vote at the Annual
General Meeting of 28 March 2023. Shareholders
entered in the share register with voting rights as of
5 p.m. on 21 March 2024 will be entitled to vote at the
Annual General Meeting of 27 March 2024.

8 Change of control

and defensive measures

Under the terms of the Telecommunications Enterprise Act
(TEA), the Swiss Confederation must hold the majority of

9.2 Audit fees and supplementary fees

In CHF thousand

Audit fees

Additional fees

Fees to auditors

Additional fees in % of audit fees

The supplementary fees include services related to
transaction consultancy, consultancy related to trans
formation, reviews related to IT outsourcing orders from
business customers, review of the reporting on financial
infor mation, review of financial information compi la
tions, equal pay analyses and mergers, reporting require
ments for the outstanding green bonds and tax consul
tancy.

the capital and voting rights in Swisscom Ltd. This
requirement is also set out in the Articles of Incorporation.
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
section ‘Remuneration Report’.
H See report page 113

9 Auditor

9.1 Selection process, duration of mandate

and term of office of the auditorincharge
The statutory auditor is appointed annually by the
Annual General Meeting following a proposal submitted
by the Board of Directors. Reelection is permitted. The
policies for appointing the statutory auditor have been
set forth in a policy by the Audit & ESG Reporting
Committee. A new invitation to tender is issued for the
statutory 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 auditorincharge may only perform the mandate
for a maximum of seven years. PricewaterhouseCoopers
(PwC), Zurich, has performed the mandate since the
2019 financial year. The auditorincharge has been
Petra Schwick since 2023.

2023

3,281

1,895

5,176

58%

2022

3,316

861

4,177

26%

9.3 Supervision and controlling instruments

visàvis the auditors

The Audit & ESG Reporting Committee verifies the
qualifications and independence of the statutory auditors
as a statesupervised auditing firm on behalf of the Board
of Directors. It also assesses the performance and remu
neration of the auditors. Assessment criteria are the com
pe tence and availability of the audit team, the audit pro
cess, and reporting and communication. The Audit & ESG
Reporting Committee is also responsible for observing the
statutory rotation principle for the auditorincharge and
for reviewing and issuing the new invitations to tender for

109

the audit mandate. It approves the integrated strategic
audit plan, which includes the annual audit plan of both
the internal and external auditors, and the annual fee for
the auditing services provided 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 inde pen
dence of the auditors, additional service mandates must
be approved by the Audit & ESG Reporting Commit tee
where the fee exceeds CHF 300,000. It 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 services, auditrelated
services and nonaudit services, and on their inde
pendence.

The statutory auditors, represented by the auditorin
charge and his deputy, usually attend all Audit & ESG
Reporting Committee meetings. They
inform the
Commit tee in detail on the performance and results of
their work, in particular regarding the annual financial
statement audit. They further submit a written report

Information

Notifications to shareholders

Website Swisscom

Interim reports and annual report (incl . management report,
corporate Governance Report, Remuneration Report,
Report on non-financial report, consolidated financial statements,
condensed financial statements of Swisscom Ltd)

Complete financial statements Swisscom Ltd

Sustainability Impact Report in accordance with the Global Reporting
Initiative (GRI) and Sustainability Accounting Standards Board (SASB)

annually to the Board of Directors and the Audit & ESG
Reporting Committee on the performance 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. Once a year, the auditorincharge consults
with the Audit & ESG Reporting Committee (without
management involvement). Finally, the Chairman of the
Audit & ESG Reporting Committee liaises closely with the
auditorincharge beyond the meetings of the Committee
and regularly reports to the Board of Directors. Repre
sentatives of PwC, the statutory auditors, attended all
meetings of the Audit & ESG Reporting Committee in
2023. 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 2023.

10 Information policy

Swisscom pursues an open, active information policy
visàvis shareholders, the general public and the capital
markets. It uses the following media for this purpose:

Rhythm

Source

If required

Swiss Official Gazette of Commerce www .shab .ch or by letter
or electronically (at the discretion of the Board of Directors)

continuously www .swisscom .ch

quarterly

www .swisscom .ch/adhoc

yearly

www .swisscom .ch/adhoc

www .swisscom .ch/sir2023

Analyst presentations on financial statements

quarterly

www .swisscom .ch/adhoc

press releases

Ad-hoc press releases (push link)

Subscribe ad-hoc news (pull link)

Minutes of the General Meetings

If required

www .swisscom .ch/adhoc

If required

www .swisscom .ch/adhoc

www .swisscom .com/adhoc-subscribe

yearly

www .swisscom .ch/generalmeeting

Those employees at Swisscom responsible for investor
relations can be contacted 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.
H See report page 209

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110

11 Financial calendar

Event

Date

Annual General Meeting for the 2023 financial year in Zurich Oerlikon

27 March 2024

Publication of results and interim report 1st quarter 2024

Publication of results and interim report 2nd quarter 2024

Publication of results and interim report 3rd quarter 2024

Publication of annual results and annual report 2024

Annual results press conference 2024

2 May 2024

31 July 2024

31 October 2024

6 February 2025

The detailed financial calendar is published on the
Swisscom website under ‘Investors’ and is updated on a
regular basis.
Y See www.swisscom.ch/financialcalendar

12 Trading blackout periods

Swisscom defines ordinary and, if need be, extraordinary
trading blackout periods for trading in Swisscom securities
by the Board of Directors, Group Executive Board and
(hereinafter collectively referred to as
employees
‘employees’). This is the responsibility of the internal
clearing unit, which is made up of the CFO, the Head of
Investor Relations and a specialist from Group Legal
Services. The four ordinary trading blackout periods prior
to the announcement of the company’s figures are aimed
at all employees who become aware of the unpublished
company figures. The clearing unit maintains a corre
spond ing insider list. Unless the clearing unit issues
instructions to the contrary, the ordinary blackout periods
last around four weeks and end 24 hours after the com

pany figures are made public. The clearing unit informs
the individuals affected of upcoming trading blackout
periods in an email sent out every year before the start of
each trading blackout period. The details are also available
on the intranet.

Extraordinary trading blackout periods are imposed by
the clearing unit on an adhoc basis if other unpublished
pricesensitive
information arises. These apply to
individuals with the relevant insider knowledge. The
clearing unit maintains corresponding insider lists. The
trading blackout periods last for the period specified by
the clearing unit. They end 24 hours after the price
sensitive information is made public or when specified by
the clearing unit. The clearing unit informs employees of
any trading blackout periods imposed by email.

The clearing unit makes decisions on any exceptions to
the ordinary and extraordinary trading blackout periods
on a casebycase basis in the event of special circums
tances. No exceptions were granted in the year under
review.

111

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112

Letter from the Chair of the
Compensation Committee

Dear Shareholders

Swisscom posted solid 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. This was achieved in a challenging
year: 2023 was marred by uncertainties, such as the
volatile economic environment with rising interest rates
and inflation, as well as ongoing geopolitical risks.
Revenue was down slightly in the Swiss core business
and increased at Fastweb. The Group’s financial develop
ment as presented in the financial reporting was charac
ter ised by nonrecurring items and foreign currency
translation. At constant exchange rates and after adjust
ment for nonrecurring items, revenue and EBITDA
increased. Net income also rose.

Swisscom once again 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, by the mobile
hotline and digitally via the My Swisscom App. Despite
inflation and, unlike its peers, Swisscom will not
implement any general price increases and will maintain
stable prices for mobile, internet, TV and fixed network
subscriptions until the end of 2024 at the earliest.
Independent market researchers also name Swisscom as
a leading cyber security provider. With its new IT security
services, Swisscom is also offering small and medium
sized enter prises even greater security and reliable
protection against cyber risks. When it comes to
sustainability, Swisscom has set itself ambitious goals for
the environ ment and society. We are promoting media
skills in schools and for the general public, and are making
a key contribution as a pioneer in climate protection. Our
focus is on reducing our CO2 emissions. World Finance
magazine once again rated Swisscom the world’s most
sustainable telecommunications company in 2023. In the
year under review, the Compensation Committee
reviewed the remuneration system of the Group
Executive Board and proposed to the Board of Directors
that it keep the variable remuneration model that had
been revised in the previous year. In addition to financial
performance, which is a key determinant of overall target
achievement, this model also takes performance on
issues related to business transformation into account.
The variable per formancerelated 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 imple mentation and makes it possible
to
reward perfor mance both appropriately and
sustainably while taking into account Swisscom’s respon
s ibility 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
performed exceptionally well in terms of customer
satisfaction and sustainability. Within the scope of its
overall assessment, the Board of Directors weighed these
successes against the company’s operational performance.
This results in overall target achievement of between 105%
and 110% for the members of the Group Executive Board,
depending on their function. Overall, the total remuneration
for the members of the Board of Directors and the Group
Executive Board for the 2023 reporting year is within the
range approved by the 2022 and 2023 Annual General
Meetings (due to the increase in the number of members
of the Group Executive Board in the reporting year).

Like every year, you, dear shareholders, will have an
opportunity at the 2024 Annual General Meeting to cast
your vote on Swisscom’s remuneration principles and the
remuneration system as part of the consultative vote on the
Remuneration Report. In addition, you will vote on the
maximum total remuneration paid to the Board of Directors
and the Group Executive Board for the 2025 financial year.
The proposed amount for the Board of Directors remains
unchanged over the prior year. Regarding the remuneration
of the Group Executive Board in 2025, a proposal to keep the
maximum amount unchanged at CHF 10.9 million will be
submitted for approval. To meet our responsibilities, the
Compensation Committee will conduct reviews of the
remuneration strategy and system again in the coming
year to ensure that our principles are aligned with the
interests of shareholders 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

Monique Bourquin, Chair of the Compensation Committee

Remuneration Report

Remuneration
Incentive

Group Executive Board
CHF 8.7 million

Board of Directors
CHF 2.4 million

for sustainable corporate success.

in remuneration for 2023.

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 734–734f of
the Federal Act on the Amendment of the Swiss Civil Code
(Swiss Code of Obligations). Swisscom is also guided by
the recommendations of the Swiss Code of Best Practice
for Corporate Governance issued by economiesuisse, the
umbrella organisation represent ing 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
Regulations of the Compensation Committee. 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’.
Y See www.swisscom.ch/basicprinciples

Y See www.swisscom.com/amendment_cc

As in previous years, the Remuneration Report will be
put to a consultative vote at the Annual General Meeting
on 27 March 2024.

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 Gen
eral Meeting are set out in Articles 6.7.13 and 6.7.14 of
the Articles of Incorporation. Article 8.2.2 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 7.4

and 9.1)

• Compensation Committee (Article 7.5)
• Remuneration of the Group Executive Board (Articles

8.2 and 9.1)

• Contracts of the Board of Directors and the Group

Executive Board (Article 9.2)

• Number of external mandates for the Board of
Directors and Group Executive Board (Article 9.3)

The Board of Directors approves, inter alia, the personnel
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
remuneration of the Board of Directors and decides on
the remuneration of the CEO as well as the total
remuneration 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 remu
neration, 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). In addition, it
has addressed succession planning at the level of the
Board of Directors, Group Executive Board and upper
management, as well as talent management. 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 decisionmaking powers are governed by the
Articles of Incorporation, the Organisational Rules of the
Board of Directors and the Regulations of the
Compensation Committee.
Y See www.swisscom.ch/basicprinciples

113

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

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

5, 6

–

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 Committee, which
constitutes itself. If the Annual General Meeting 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 Security
& Corporate Affairs 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, the CPO and the Head of Group Security & Corporate
Affairs, the CEO and CPO may not be present. Other
members of the Board of Directors, auditors or internal and
external 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 7.5 of the Articles of
Incorporation, the Organisational Rules of the Board of
Directors and the Regulations of the Compensation
Committee.
Y 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 bet
ween the Swiss Confederation and Swisscom. Details of
these are provided in Note 6.2 to the consolidated finan
cial statements.
H See report page 188

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114

t The following table gives an overview of the composi
tion of the Committee, the Committee meetings and
circular resolutions in 2023.

Total

Average duration (in hours)

Participation:

Monique Bourquin, Chairwoman 1

Barbara Frei, Chairwoman 2

Roland Abt

Frank Esser

Renzo Simoni 2

Michael Rechsteiner 3

Meetings

Ad-hoc meetings Circular resolutions

01:50

–

1 Elected to the Board of Directors on 28 March 2023.
2 Left the Board of Directors on 28 March 2023.

3 Participation without voting rights.

2 Remuneration of

the Board of Directors

2.1 General principles
The remuneration system for the members of the Board
of Directors is designed to attract and retain experienced
and motivated individuals for the Board of Directors’
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 7.4 and 9.1 of the Articles of
Incorporation.
Y 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
emolument plus functional allowances), statutory and
regulatory employer contributions to social security and
to the occupational pension, as well as any additional
benefits. Additional remuneration is not given for

attend ance at meetings. No variable performance
related emoluments are paid. The members of the Board
of Directors are obligated to draw a portion of their fee
in the form of equity shares and to comply with the
require ments 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. The
Board of Directors bases its comparison on companies
listed in the Swiss Market Index (SMI), but excluding
companies with revenue in excess of CHF 20 billion and
companies in the pharmaceuticals and financial sector.
Consequently, in December 2022, the comparison was
based on the remuneration paid by Compagnie Financière
Richemont, Geberit, Givaudan, Logitech, Sonova and
Sika. This revealed that the remuneration paid to the
Chairman and members of the Board of Directors at
Swisscom was in the lowest peer group quartile. The
Board of Directors did not call on any external consul
tants with regard to the determination of the remu ne
ration nor to review its appropriateness.

115

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 functions.
The following amounts are paid per year.

in CHF

Base salary per member

Functional allowances 1

Presidium

Vice presidium

Representative of the Confederation 2

Audit Committee & ESG Reporting, Chair

Audit Committee & ESG Reporting, Member

Audit Strategy & Investments, Chair

Audit Strategy & Investments, Member

Remuneration Committee, Chair

Remuneration Committee, Member

2023
gross

2022
gross

146,000

308,000

25,000

–

61,000

17,000

25,000

17,000

25,000

15,000

308,000

25,000

48,000

61,000

17,000

25,000

17,000

25,000

15,000

1 No functional allowance is paid for participation in adhoc committees

2 The function allowance of CHF 48 thousand was cancelled per 28 March 2023.

appointed on a casebycase 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 restriction on disposal also applies if members
leave the company 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 sharebased remuneration is
aug mented by a factor of 1.19 in order to take account
of the difference bet ween the tax value and the market
value. In March and December 2023, a total of 1,446
shares were allocated to the members of the Board of
Directors (prior year: 1,544 shares) with a tax value of
CHF 495 (March) and CHF 428 (December) (prior year:
CHF 468/December CHF 434), respectively, per share.
Their market value was CHF 590 (March) and CHF 510
(December) (prior year: March CHF 557/December
CHF 517), respectively, per share.

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
pension on the fee. The contributions are disclosed
separately 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.pkcomplan.ch for the regulations) and
their functional allowances are covered as part of a
1e plan with VZ Joint Foundation. The reported pension
benefits cover all savings, guarantee and risk contrib
utions paid by the employer to the pension plan.

The disclosure of servicerelated and noncash benefits
and expenses relies on a taxbased point of view.
Swisscom does not offer any significant servicerelated
or noncash benefits. Outofpocket expenses are reim
bursed on a lumpsum 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.

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116

2.3 Total remuneration (audited)
The total remuneration paid to the individual members
of the Board of Directors for the 2022 and 2023 financial
years is presented in the tables below, broken down into
individual components. The lower total remuneration in
2023 is due primarily to the functional allowance for the

representative of the Confederation being abolished
effective 28 March 2023. Total remuneration paid is
within the maximum total amount approved by the
2022 Annual General Meeting (AGM) for 2023 of
CHF 2.5 million.

Total remuneration to members of the Board of Directors

1,368

758

1 Elected to the Board of Directors on 28 March 2023.
2 Guus Dekkers is subject to social security contributions in Great Britain since

4 Left the Board of Directors on 28 March 2023. In the year of departure,

the remuneration is paid out in full in cash.

2022.

3 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.

The employer contributions to SI include an additional payment for the years
2018 to 2022.

2023, in CHF thousand

Michael Rechsteiner, Chairman

Monique Bourquin 1

Roland Abt

Alain Carrupt

Guus Dekkers 2

Frank Esser 3

Barbara Frei 4

Sandra Lathion-Zweifel

Anna Mossberg 5

Renzo Simoni 4

Fritz Zurbrügg 1

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

Base salary and functional allowances

Cash
remuneration

Share-based
payment

Employer
contributions to
pension plan

Employer
contributions
to social security

Total 2023

335

159

109

152

109

200

–

136

–

627

180

267

182

195

243

206

218

172

146

2,408

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

152

124

109

151

200

–

141

–

628

291

182

197

243

211

206

289

143

2,453

Total remuneration to members of the Board of Directors

1,357

812

1 Guus Dekkers is subject to social security contributions in Great Britain since

2 Frank Esser is subject to social security contributions in Germany. No employer

2022.

contributions are paid.

3 Anna Mossberg is subject to social security contributions in Sweden.

117

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 function to
acquire the prescribed shareholding in the form of the
blocked shares paid as part of remuneration and, if neces
sary, through share purchases on the open market,
restrictions.
observing
Compliance with the shareholding requirement
is
reviewed annually by the Compensation Committee. If a
member’s shareholding falls below the minimum require

internal and

trading

legal

Number

Michael Rechsteiner

Roland Abt

Monique Bourquin 1

Alain Carrupt

Guus Dekkers

Frank Esser

Barbara Frei 2

Sandra Lathion-Zweifel

Anna Mossberg

Renzo Simoni 2

Fritz Zurbrügg 1

ment due to a drop in the share price, 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 oblig
ations, the Chairman of the Board of Directors can
approve individual exceptions at his discretion.

2.5 Shareholdings of the members

of the Board of Directors (audited)

Blocked and nonblocked shares held by members of the
Board of Directors and/or related parties as at 31 December
2022 and 2023 are shown in the table below. None of the
individuals required to make notification holds voting
shares exceeding 0.1% of the share capital.

31.12.2023

31 .12 .2022

1,324

1,277

191

940

396

1,498

–

615

723

–

106

7,070

945

1,096

–

816

272

1,325

1,478

491

599

1,003

–

8,025

Total shares held by the members of the Board of Directors

1 Elected to the Board of Directors on 28 March 2023.

2 Left the Board of Directors on 28 March 2023.

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3 Remuneration of the

Group Executive Board

3.1 General 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
sys tem atic, transparent and longtermoriented, 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 per for
mance of the Swisscom share, the interests of man
age ment are aligned with the interests of share
holders.

Remuneration system
Remuneration components and determining factors

The remuneration of the Group Executive Board is a
balanced combination of fixed and variable salary
components. The fixed component is made up of a base
salary, fringe benefits (mainly a car allowance) and
retire ment benefits. The variable remuneration includes
a performancerelated 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 mediumterm
performance of the Swisscom share and thus aligns their
interests with those of shareholders. To facilitate
compliance with the minimum shareholding require
ment, Group Executive Board members have the possibi
lity of drawing up to 50% of the variable performance
related component of their salary in shares.

The basic principles regarding the performancerelated
remuneration and the profit and equity participation
plans of the Group Executive Board are set out in Article 9.1
of the Articles of Incorporation.
Y 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

119

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 the market value of individual
functions, Swisscom relies on crosssector 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 comparative study conducted by the
consultancy firm Willis Towers Watson (WTW). The
national study conducted in 2022 covers 13 major com pa
nies 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
study from 2020 covers telecommunications companies
from eight western European countries with median
revenue of CHF 7.5 billion and a median workforce of
19,500 employees. The evaluation of the two comparative
studies takes into account the comparability of the extent
of responsibility
in terms of revenue, number of
em ployees and international scope. The studies show
that the remuneration package for Group Executive Board
functions is in the lowest quartile in a national comparison
and is largely below the median value for the relevant
peer groups in an international comparison, too. The
Compensation Committee did not call on any external
consultants during the reporting year.

As a rule, the Compensation Committee reviews the
individual remuneration paid to members of the Group
Executive Board every three years of employment.
Taking the comparative studies into account, the Board
of Directors adjusted the salary paid to two members of
the Group Executive Board in the year under review to
reflect the experience and performance of these
members and ensure remuneration in line with market
standards.

3.2 Remuneration components
Base salary
The base salary is the remuneration paid according to
the function, qualifications and performance of the
individual member of the Group Executive Board. It is
determined based on a discretionary decision taking
into account the external market value of the function
and the salary structure for the Group’s executive
management. The base salary is paid in cash.

Variable performance-related salary component
The members of the Group Executive Board are entitled to
a variable performancerelated salary component which
represents 70% of the base salary if objectives are achieved
in full (performancerelated bonus). The amount of the
performancerelated component paid out depends on the
extent to which the targets are achieved, as set by the
into account the
Compensation Committee, taking
performance evaluation by the CEO. If targets are exceeded,
the performancerelated bonus may amount to no more
than 130% of the target bonus. The maximum per
formancerelated 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 anchors longterm, strategic considerations
such as strengthening the core business by offering the
best customer experiences and the best infrastructure,
realising new growth opportunities, and continuously
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 the evaluation of performance in topics related
to business transformation (0130%). If the EBITDA
thresh old is not reached, overall target achievement
for the members of the Group Executive Board is 0%
and no variable performancerelated salary component
is paid out.

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Determination of target achievement
As the decisive basis for the payment of the performancerelated component

1. Financial targets

2. Business transformation

3. Overall target achievement

Revenue

Operating performance

(Depending on the achievement

EBITDA margin

+/-

Customers

Operating free cash flow proxy

Growth

Fastweb financial targets

Sustainability

of the ‘EBITDA threshold’)

between 0% and 130%

the

a) Financial targets
The financial
variable
targets underlying
performancerelated salary component are adopted
annually in December for the following year by the
Board of Directors following a proposal submitted by
the Compensation Committee. The targets relevant to
the reporting year remain unchanged from the previous
year, in line with the Group’s continuing corporate
strategy. The targets are based on the budget figures for
the respective year under review. The financial targets
include revenue, operating income before interest,
taxes, depreciation and amortisation as a percentage of
revenue (EBITDA margin), and operating free cash flow

proxy. The Group Executive Board members delegated
by Swisscom to the Board of Directors of the Italian
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
achievement of the financial targets
is determined
according to the weighting of the individual targets and
cannot exceed 200% overall.

Weighting of financial targets

Financial targets

Weighting of CEO and CFO

Weighting of other members
of Group Executive Board

Revenue

EBITDA margin

Operating free cash flow proxy

Fastweb financial targets

24%

32%

20%

30%

40%

b) Business transformation
The topics relevant to Swisscom’s longterm success are
summarised under the term ‘business transformation’.
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. Operating perform
ance is assessed based on indicators related to network
and service stability, as well as reputation. Unlike in the
previous year, market share is no longer taken into account.
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 implementation of
strategic projects, while the new topic of sustainability
includes indicators on employee satisfaction, diversity and
Swisscom’s contribution toward protecting the environ
ment (CO2 reduction; ESG criterion). This therefore
incorporates Swisscom’s responsibility to help promote
society’s positive development and to protect the environ
ment into the remuneration system. Further information
on customer satisfaction can be found in the Management
Commentary. Further information on Swisscom’s contrib
ution to the environment and society can be found in the
Sustainability Impact Report 2023.
H See report page 34

Y See www.swisscom.ch/sir2023

121

The Compensation Committee uses key figures and
deviations from the multiyear 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.

Business transformation topics
Securing longterm 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
• Multiyear
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 longterm value
creation, the Compensation Committee may, in excep
tional 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. currency
fluctuations, extraordinary financial effects or unforeseen
industry and market developments. The overall achieve
ment of targets is limited to a maximum of 130%. Based
on the overall achievement of targets, the Compen sation
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%

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Lower threshold
(EBITDA minimum requirement)

Upper threshold
(Cap at 130 % target achievement)

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Payment of the variable performancerelated
salary component
The variable performancerelated salary component for a
given financial year is paid in March or April of the
following 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 performancerelated compen
sation. The remaining portion of the performancerelated
component 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 performancerelated component
for the current year is generally made in cash only. The
decision as to what percentage of the variable per for
mancerelated 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
following the publication of the thirdquarter results. 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 during the blocking period. The sharebased
remuneration disclosed in the year under review is
augmented by a factor 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 allocation of shares for the year under
review will be made in March 2024.

In March 2023, a total of 1,476 shares (prior year: 1,536
shares) with a tax value of CHF 495 (prior year: CHF 468)
per share and a market value of CHF 590 (prior year:
CHF 557) per share were allocated for the 2022 financial
year to the five members of the Group Executive Board
at that time.

Pension fund and fringe benefits
The members of the Group Executive Board, like all
eligible 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.pkcomplan.ch). The reported
pension benefits cover all savings, guarantee and risk
contributions paid by the employer to the pension plan.
They also include the prorata 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.
H See report pages 173–179

A taxbased point of view is taken in reporting service
related and noncash benefits and expenses. The members
of the Group Executive Board are entitled to a car allowance.
Outofpocket expenses are reimbursed on a lumpsum
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
2022 and 2023 financial years, broken down into
individual components and including the highest
amount paid to one member. All in all, the Swisscom
Group slightly exceeded its financial targets in the
reporting year. Fastweb did not meet its financial
target in full. Expectations in the context of the
business
transformation were exceeded overall,
particularly with respect to customers and sustain
ability. The EBITDA threshold was reached. The
resulting overall target achievement of the perfor
mancerelated component is 105% for the CEO and
between 105% and 110% for the other members of the
Group Executive Board, depending on their function. In
the year under review, the variable performance
related salary component for members of the Group
Executive Board (CHF 3,067 thousand in total) was
around 79% of the base salary (CHF 3,865 thousand in
total). The highest remuneration amount is attributable
to the CEO, Christoph Aeschlimann. It is 2.7% higher
than the highest remuneration amount in the previous
year due to the fact that 100% of the performance
related component for the previous CEO, Urs Schaeppi,
was paid out, and payment effected entirely in cash
due to his resignation. The increase in the total amount
of remuneration paid to the Group Executive Board is
mainly attributable to the increase in the number of
members of the Group Executive Board from six to
nine. What is more, the comparative figure for the
previous year was lower because the role of Head of IT,
Network & Infrastructure was vacant and was not filled
until the reporting year. Total remuneration paid is
within the maximum total amount approved by the
2023 Annual General Meeting (AGM) for 2023 of CHF
10.4 million.

123

Remuneration of the Group Executive Board

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.

3.4 Minimum shareholding requirement
The members of the Group Executive Board are required
to hold a minimum number of Swisscom shares. The
minimum 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 share
holding over four allocation periods The members of the
Group Executive Board build up the prescribed share
holding 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 shareholding requirement is reviewed annually by the

Number

Christoph Aeschlimann (CEO) 1

Urs Lehner

Isa Müller-Wegner 2

Gerd Niehage 3

Stefan Nünlist 4

Klementina Pejic

Eugen Stermetz

Martin Vögeli 4

Dirk Wierzbitzki

Total shares held by the members of the Group Executive Board

Total Group
Executive Board
2023

Total Group
Executive Board
2022

Thereof
Christoph
Aeschlimann
2023

3,865

2,196

871

190

636

951

8,709

–

2,878

1,638

867

121

480

666

6,650

1,053

882

486

193

139

130

1,854

–

Thereof
Urs
Schaeppi
2022

368

257

–

753

1,053

8,709

7,703

1,854

1,806

3 Contractual compensation payments made during the notice period to Group
Executive Board members who resigned from Board during the financial year
or in 2022.

Compensation 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
obligations, 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 nonblocked shares held by members of the
Group Executive Board and/or related parties as at
31 December 2022 and 2023 are shown in the table below.
None of the individuals required to make notification
holds voting shares exceeding 0.1% of the share capital.

31.12.2023

31 .12 .2022

1,318

1,431

–

346

487

375

660

1,775

6,392

713

1,231

–

256

175

–

1,535

3,910

1 CEO since June 2022.
2 Elected to the Group Executive Board on 1 June 2023.

3 Elected to the Group Executive Board on 1 March 2023.
4 Elected to the Group Executive Board on 1 April 2023.

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3.6 Employment contracts
The employment contracts of the members of the Group
Executive Board are subject to a twelvemonth 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 noncompetition clause
or a clause on change of control.

4 Other remuneration

4.1 Additional remuneration (audited)
Swisscom may pay remuneration to members of the
Board of Directors for assignments in Group companies
and assignments performed by order of Swisscom
(Article 8.2 of the Articles of Incorporation). No such
remuneration was paid in the year under review.
Y See www.swisscom.ch/basicprinciples

The members of the Group Executive Board are not
entitled 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 their related parties (audited)
In the year under review, no remuneration that was not
at arm’s length was paid to former members of the
Board of Directors in connection with earlier activities as
a member of a governing body of the company. Similarly,
no such remuneration was paid to former members 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 2023 financial year, Swisscom did not grant any
collateral, 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 therefore no corresponding receivables out
standing.

5 Activities at other companies

The activities performed by the members of the Board of
Directors and the Group Executive Board at other
companies are listed in the Corporate Governance report.
H See report pages 89–93 (Board of Directors)

H See report pages 103–107 (Group Executive Board)

6 Gender representation

As at 31 December 2023, Swisscom complies with the
legal requirements regarding the representation of both
genders on the Board of Directors and the Group
Executive Board.

125

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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 2023. The
audit was limited to the information pursuant to article 734a-734f CO in the tables marked ‘audited’ (sections 2.3, 2.5,
3.3, 3.5 and 4.1 to 4.3) on pages 113 to 125 of the remuneration report.

In our opinion, the information pursuant to article 734a-734f CO in the remuneration report (pages 113 to 125) complies
with Swiss law and the Company’s articles of incorporation.

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. It is also responsible for designing the remuneration system and defining individual remuneration pack-
ages.

Auditor’s responsibilities for the audit of the remuneration report

Our objectives are to obtain reasonable assurance about whether the information pursuant to article 734a-734f CO is
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 and SA-CH will always detect a material misstatement when it exists. Misstatements can arise from fraud or

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.

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 report.

As part of an audit in accordance with Swiss law and SA-CH, we exercise professional judegment 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

Petra Schwick

Licensed audit expert
Auditor in charge

Zürich, 7 February 2024

Peter Kartscher

Licensed audit expert

Swisscom Ltd | Report of the statutory auditor to the General Meeting

127

Consolidated Financial
Statements ________________

Consolidated statement of comprehensive income . . . . . 130

Consolidated balance sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131

Consolidated statement of cash flows . . . . . . . . . . . . . . . . . . 132

Consolidated statement of changes in equity . . . . . . . . . . . 133

Notes to the consolidated
financial statements _________

1 Operating performance

1 .1 Segment information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136

1 .2 Operating expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143

2 Capital and financial risk management

2 .1 Capital management and equity . . . . . . . . . . . . . . . . . . . 145

2 .2 Financial liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147

2 .3 Leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

149

2 .4 Financial result . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153

2 .5 Financial risk management . . . . . . . . . . . . . . . . . . . . . . . . . 153

3 Operating assets and liabilities

3 .1 Net current operating assets . . . . . . . . . . . . . . . . . . . . . . . 161

3 .2 Property, plant and equipment . . . . . . . . . . . . . . . . . . . .

164

3 .3 Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

166

3 .4 Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167

3 .5 Provisions and contingent liabilities . . . . . . . . . . . . . . . . . 169

4 Employees

4 .1 Employee headcount and personnel expense . . . . . . . 172

4 .2 Key management compensation . . . . . . . . . . . . . . . . . . . 173

4 .3 Defined benefit plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173

5 Scope of consolidation

5 .1 Group structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

180

5 .2 Changes in the scope of consolidation . . . . . . . . . . . . . 180

5 .3 Equity-accounted investees . . . . . . . . . . . . . . . . . . . . . . . . 181

5 .4 Group companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183

6 Other disclosures

6 .1 Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

185

6 .2 Related parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

188

6 .3 Other accounting policies . . . . . . . . . . . . . . . . . . . . . . . . .

189

Report of the statutory auditor . . . . . . . . . . . . . . . . . . . . . . . .

190

Consolidated Financial Statements
Consolidated statement
of comprehensive income

In CHF million, except for per share amounts

Note

2023

2022

Income statement

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

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

3 .2, 3 .3

2 .3

2 .4

5 .3

6 .1

2 .1

11,072

11,051

(2,725)

(2,680)

(1,811)

766

4,622

(2,126)

(291)

2,205

(160)

–

2,075

(364)

1,711

(28)

(126)

(10)

(136)

(121)

1,711

(121)

1,590

1,711

–

1,711

1,590

–

1,590

(2,626)

(2,705)

(1,982)

668

4,406

(2,104)

(262)

2,040

(148)

(5)

1,963

(360)

1,603

(38)

(96)

(4)

(100)

(97)

1,603

(97)

1,506

1,602

1,603

1,505

1,506

Basic and diluted earnings per share (in CHF)

2 .1

33.03

30.93

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130

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

Non-current assets held for sale

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

31.12.2023

31 .12 .2022

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 .5

6 .1

2 .2

2 .3

4 .3

3 .5

2 .3

6 .1

2 .1

148

2,143

1,323

3,718

11,059

1,737

5,172

1,972

745

225

21,032

24,750

718

227

1,611

1,471

115

203

4,345

4,947

1,688

1,148

898

8,783

13,128

136

13,529

(2,086)

(12)

11,619

11,622

24,750

121

2,255

1,353

–

3,848

10,811

1,741

5,172

1,992

747

194

20,772

24,620

547

232

1,674

1,571

194

4,306

5,455

1,679

1,071

831

9,143

13,449

136

12,942

(1,960)

(2)

11,168

11,171

24,620

131

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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

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

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 increase (net decrease) 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

2 .2

2 .3

2 .1

5 .2

2023

1,711

364

–

(30)

160

2,126

291

(6)

(108)

108

(4)

(5)

(124)

(31)

(84)

(44)

(313)

4,029

(2,272)

(62)

(3)

(13)

(17)

2022

1,603

360

(76)

148

2,104

262

(11)

(134)

106

(10)

(85)

(62)

(44)

(378)

3,876

(2,289)

(67)

–

(2)

(142)

(13)

(2,322)

(2,430)

223

(471)

(270)

209

(535)

(240)

(1,140)

(1)

–

(12)

(1)

(14)

–

(1,671)

(1,721)

121

(9)

148

(275)

401

(5)

121

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 2022

136

12,485

(1,864)

Net income

Other comprehensive income

Comprehensive income

Dividends paid

Other changes

–

1,602

1,605

(1,140)

(8)

–

(96)

–

Balance at 31 December 2022

136

12,942

(1,960)

Net income

Other comprehensive income

Comprehensive income

Dividends paid

Other changes

–

1,711

1,726

(1,140)

–

(126)

–

(4)

–

(2)

–

(10)

–

10,811

1,602

(97)

1,505

(1,140)

(8)

11,168

1,711

(121)

1,590

(1,140)

Balance at 31 December 2023

136

13,529

(2,086)

(12)

11,619

Total
equity

10,813

1,603

(97)

1,506

–

(1)

(1,141)

–

(1)

(7)

11,171

1,711

(121)

1,590

(1,141)

11,622

133

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 2023
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 7 February 2024. 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 27 March 2024.

Basis of preparation
The consolidated financial statements of Swisscom have been prepared in accordance with IFRS Accounting
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 interpretation
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
particular, 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 4 .3

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134

Amendments to IFRS Accounting Standards and Interpretations which are to be applied
for the first time in the financial year

Standard

IFRS 17

Name

Insurance contracts

Amendments to IAS 1

Disclosure of accounting policies

Amendements to IAS 8

Definition of accounting estimates

Amendments to IAS 12

Deferred taxes related to assets and liabilities arising from a single transaction

Amendments to IAS 12

International tax reform – pillar 2 model rules

As of 1 January 2023, Swisscom adopted new IFRS Accounting Standards and Interpretations and amendments to
existing ones, which have no material impact on the results or financial position of the Group. Further information
regarding the changes to the IFRS Accounting Standards which must be applied in 2024 or later are set out in
Note 6.3.

135

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 2023. 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 2023. The prior year’s figures have been restated as
follows:

In CHF million

Reported

Adjustment

Restated

Operating income before depreciation and amortisation (EBITDA) Swisscom Switzerland

2022 financial year

Residential Customers

Business Customers

Wholesale

Infrastructure & Support Functions

Intersegment elimination

EBITDA Swisscom Switzerland

2,975

1,384

291

(1,166)

(1)

3,483

(3)

(2)

–

2,979

1,381

289

(1,165)

(1)

3,483

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136

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
Switzerland, such as telephony, broadband, TV and mobile offerings . The segment also includes the sale of terminal
equipment .

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
service 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
offering includes telephony, broadband and mobile offerings . For business customers, Fastweb offers comprehensive
ICT solutions .

Other Operating Segments mainly comprises Swisscom Directories Ltd (localsearch), which operates in the
field of online directories, cablex Ltd, which provides services in the building, maintenance and operation of of
high-performing ICT and network infrastructure solutions, and Swisscom Broadcast Ltd, which 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 management
fees whatsoever to other segments. The remaining 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
operating 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 column in the segment
result, which totals CHF –8 million (prior year: CHF –94 million), includes income of CHF 37 million (prior year:
expense of CHF 53 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 excluding depreciation
of prepaid indefeasible rights of use (IRU) of CHF 18 million (prior year: CHF 20 million), impairment losses on right-
of-use assets of CHF 29 million (prior year: none) and the accounting for the rental of buildings between segments.
The lease expense of assets of low value is presented as direct costs.

137

Capital expenditure consists of the purchase of property, plant and equipment and intangible assets and
payments for indefeasible rights of use (IRU). In general, IRU are paid in full at the beginning of the usage period.
If 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 2023 amounted to CHF 20
million (prior year: CHF 20 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. In addition, as of 2023, Swisscom will now also take into account other factors such as
market conditions and other company-specific factors in addition to the contractually agreed prices when
determining the fair value for the recognition of revenue and costs for individual roaming contracts that contain
minimum guarantees. The change reduced sales and direct costs for 2023 by CHF 59 million each and for 2022 by
CHF 61 million each. The previous year was adjusted accordingly.

Fastweb reviewed its strategy for the establishment of a fixed wireless access (FWA) network and made the
decision to adjust it at the end of 2023. FWA expansion going forward will use the company’s own 5G network
infrastructure based on an agreement with WindTre. By contrast, the previous strategy of establishing a
dedicated FWA network outside of those areas with optical fibre access (FTTH) is being abandoned. The strategic
adjustment resulted in expenses of EUR 61 million (CHF 60 million) being recognised in Fastweb’s operating
income before depreciation and amortisation in 2023. Impairment losses were also recognised on property,
plant and equipment and on right-of-use assets. See Notes 2.3 and 3.2.

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Segment information 2023

2023, in CHF million

Residential customers

Corporate customers

Wholesale customers

External revenue

Intersegment revenue

Revenue

Direct costs

Indirect costs

Operating income before depreciation and amortisation (EBITDA)

Depreciation and amortisation of property, plant and equipment
and intangible assets

Swisscom
Switzerland

4,487

3,069

530

8,086

8,146

(1,707)

(2,738)

3,701

Other
Operating
Segments

–

430

–

430

645

1,075

(84)

(838)

153

Fastweb

1,132

1,103

321

2,556

2,561

(1,002)

(783)

776

Elimi-
nation

–

(710)

634

(8)

Depreciation of right-of-use assets

Operating income (EBIT)

Financial income

Financial expense

Result of equity-accounted investees

Income before income taxes

Income tax expense

Net income

EBITDA

Lease expense

EBITDA after lease expense (EBITDAaL)

Capital expenditure

Operating free cash flow proxy

Segment information Swisscom Switzerland 2023

3,701

(225)

3,476

(1,690)

1,786

776

(54)

722

(606)

116

153

(11)

142

(40)

102

(8)

(6)

Total

5,619

4,602

851

11,072

–

11,072

(2,725)

(3,725)

4,622

(2,126)

(291)

2,205

(160)

–

2,075

(364)

1,711

4,622

(288)

4,334

(2,292)

2,042

Residential
Customers

Business
Customers

Whole-
sale

Infrastructure
& Support
Functions

Elimi-
nation

Total
Swisscom
Switzerland

2023, in CHF million

Fixed-line

Mobile

Telecom services

IT services

Merchandise

Wholesale

Revenue other

External revenue

Intersegment revenue

Revenue

Direct costs

Indirect costs

1,991

1,852

3,843

–

503

–

141

808

726

1,534

1,184

332

–

4,487

3,054

4,502

3,098

(877)

(646)

(742)

(998)

–

530

–

530

542

(239)

–

(8)

(1,028)

Operating income before depreciation
and amortisation (EBITDA)

2,979

1,358

326

(963)

Capital expenditure

(49)

(50)

–

(1,591)

–

(69)

159

(89)

–

2,799

2,578

5,377

1,184

835

530

160

8,086

8,146

(1,707)

(2,738)

3,701

(1,690)

139

Segment information 2022

2022, in CHF million, restated

Residential customers

Corporate customers

Wholesale customers

External revenue

Intersegment revenue

Revenue

Direct costs

Indirect costs

Operating income before depreciation and amortisation (EBITDA)

Depreciation and amortisation of property, plant and equipment
and intangible assets

Swisscom
Switzerland

4,511

3,098

540

8,149

8,209

(1,738)

(2,988)

3,483

Other
Operating
Segments

–

417

–

417

621

Fastweb

1,150

1,019

316

2,485

2,493

1,038

(879)

(757)

857

(76)

(802)

160

Elimi-
nation

–

(689)

528

(94)

Depreciation of right-of-use assets

Operating income (EBIT)

Financial income

Financial expense

Result of equity-accounted investees

Income before income taxes

Income tax expense

Net income

EBITDA

Lease expense

EBITDA after lease expense (EBITDAaL)

Capital expenditure

Operating free cash flow proxy

Segment information Swisscom Switzerland 2022

3,483

(218)

3,265

(1,698)

1,567

857

(57)

800

(619)

181

160

(10)

150

(34)

116

(94)

(1)

(95)

(53)

Total

5,661

4,534

856

11,051

–

11,051

(2,626)

(4,019)

4,406

(2,104)

(262)

2,040

(148)

(5)

1,963

(360)

1,603

4,406

(286)

4,120

(2,309)

1,811

Residential
Customers

Business
Customers

Whole-
sale

Infrastructure
& Support
Functions

Elimi-
nation

Total
Swisscom
Switzerland

2022, in CHF million, restated

Fixed-line

Mobile

Telecom services

IT services

Merchandise

Wholesale

Revenue other

External revenue

Intersegment revenue

Revenue

Direct costs

Indirect costs

2,006

1,855

3,861

–

518

–

132

841

747

1,588

1,152

342

–

(1)

4,511

3,081

4,527

3,129

(878)

(670)

(765)

(983)

–

540

–

540

551

(247)

(15)

–

(8)

(1,228)

–

(69)

160

(92)

(1)

–

2,847

2,602

5,449

1,152

860

540

148

8,149

8,209

(1,738)

(2,988)

3,483

(1,698)

Operating income before depreciation
and amortisation (EBITDA)

2,979

1,381

289

(1,165)

Capital expenditure

(55)

(47)

–

(1,596)

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Disclosure by geographical regions

In CHF million

Switzerland

Italy

Other countries

Not allocated

Total

Disclosure by products and services

In CHF million

Telecom services

IT services

Merchandise

Wholesale

Revenue other

Total revenue

2023

Non-current
assets

16,576

3,382

1,065

21,032

Revenue

8,516

2,556

–

11,072

2022

Non-current
assets

16,103

3,629

1,030

20,772

2022

7,538

1,153

923

855

582

Revenue

8,566

2,485

–

11,051

2023

7,500

1,184

930

851

607

11,072

11,051

141

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. 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 constitute 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 principally comprise the basic charges for fixed telephony,
broadband and TV connections, as well as the domestic and international telephony traffic of individuals and
business customers. In addition, Swisscom makes bundled 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.

IT services
The service area of communications and IT solutions (IT services) 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. Revenue 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 contracts is generally between three and seven years. Transition projects in connection with an
outsourcing contract 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
telecommunications 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
telecommunications 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, taking market conditions and
other entity-specific factors into account. Roaming services charged to other telecommunications service
providers are reported on a gross basis.

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1.2 Operating expense

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.

2023

1,007

732

229

240

431

2022

977

705

222

247

389

2,725

2,626

2023

2,613

2,680

269

277

157

172

102

117

605

1,811

(541)

(49)

(6)

(170)

(766)

2022

2,637

2,705

267

303

152

193

117

129

730

1,982

(485)

(54)

(11)

(118)

(668)

3,725

4,019

Other operating expenses and other income include, among other items, additions and releases of provisions for
regulatory and competition law proceedings. See Note 3.5.

Capitalised self-constructed tangible and intangible assets include personnel costs accrued in the manufacturing
of technical installations, the construction of network infrastructure and the development of software for
internal use.

143

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 can only be used 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 business
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.

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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. The Federal Council
has set the limit for net debt at 2.4x EBITDA. Swisscom also has an A credit rating with rating agency Standard &
Poor’s and an A1 credit rating with Moody’s. It aims to keep its ratings in the single A range.

Net debt consists of financial liabilities and lease liabilities less cash and cash equivalents, listed debt instruments
and derivative financial instruments. 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

31.12.2023

31 .12 .2022

7,071

4,622

1.5

7,374

4,406

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 %

31.12.2023

31 .12 .2022

11,622

24,750

47.0

11,171

24,620

45.4

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 2023, Swisscom Ltd’s distributable reserves amounted to
CHF 6,977 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 2022 and 2023.

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

2023

51 .802

22 .00

1,140

2022

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 2023
financial year to the Annual General Meeting of Shareholders of Swisscom Ltd on 27 March 2024. This results in
a total dividend payment of CHF 1,140 million. The dividend payment is scheduled for 4 April 2024.

145

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)

2023

1,711

2022

1,602

51,801,652

51,800,968

33.03

30.93

Supplementary information on equity
Development of retained earnings and other reserves as well as comprehensive income 2023

Foreign
currency
Retained
translation
earnings adjustments

Hedging
reserves

Equity
holders of
Swisscom

Non-
controlling
interests

12,942

(1,960)

(2)

10,980

1,711

In CHF million

Balance at 1 January 2023

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

Income tax expense

Items that may be reclassified to income statement

(35)

–

Other comprehensive income

Comprehensive income

Dividends paid

Other changes

1,726

(1,140)

–

(135)

–

(126)

–

(10)

–

(10)

–

1,711

(35)

(135)

(10)

(136)

(121)

1,590

(1,140)

Balance at 31 December 2023

13,529

(2,086)

(12)

11,431

–

(1)

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

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

(37)

(8)

–

1,605

(1,140)

(8)

–

(103)

–

(96)

–

Hedging
reserves

Equity
holders of
Swisscom

Non-
controlling
interests

–

(5)

(4)

–

(2)

10,623

1,602

(37)

(8)

(103)

(5)

(100)

(97)

1,505

(1,140)

(8)

10,980

–

(1)

Balance at 31 December 2022

12,942

(1,960)

Total

10,983

1,711

(35)

(135)

(10)

(136)

(121)

1,590

(1,141)

11,434

Total

10,625

1,603

(37)

(8)

(103)

(5)

(100)

(97)

1,506

(1,141)

(7)

10,983

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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

2023

6,002

2022

6,445

200

–

223

(221)

(250)

–

(471)

(84)

(129)

(13)

–

170

209

–

(500)

(35)

(535)

(62)

(64)

(38)

(2)

(31)

5,665

6,002

267

4,789

322

136

151

5,665

718

4,947

512

4,886

322

129

153

6,002

547

5,455

1 Reported in the cash flow statement as cash flow used in investing activities.

2 See Note 2.5.

See Note 5.2.

Credit lines
Swisscom has two confirmed lines of credit amounting to CHF 1,000 million maturing in 2028 and CHF 1,200 mil-
lion 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 December 2023, 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

31.12.2023

31 .12 .2022

Carrying amount

Bank loans in EUR 1, 3

Bank loans in USD 1

Bank loans in EUR 2, 3

Bank loans in EUR 1

Bank loans in USD 2

Total bank loans

1 Variable interest-bearing.
2 Fixed interest-bearing.

2021–2023

2022–2023

2017–2024

2023–2024

2009–2028

200 Euribor +0 .63%

150

4 .65%

4 .75%

0 .67%

4 .27%

8 .30%

7 .65%

2 .47%

–0 .63%

–0 .94%

0 .67%

2 .23%

4 .62%

4 .63%

–

139

267

198

148

–

512

3 Designated for hedge accounting of net investments in foreign operations.

As of 31 December 2023, Swisscom had taken out short-term bank loans on a weekly and monthly basis amounting
to EUR 13 million or CHF 12 million (prior year: USD 41 million or CHF 38 million). In the third quarter of 2023,
Swisscom repaid a bank loan of EUR 200 million (CHF 195 million) upon maturity. Bank loans to the value of EUR 150
million (CHF 139 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.

147

Debenture bonds

In CHF million

Maturity years

Par value
in currency

Nominal
interest rate

Effective
interest rate

31.12.2023

31 .12 .2022

Carrying amount

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: CH1248666930 )

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)

Debenture bond in CHF
(ISIN: CH1254751907)

Total debenture bonds

2015–2023

2012–2024

2015–2025

2014–2026

2018–2026

2016–2027

2017–2027

2016–2028

2018–2028

2020–2028

2014–2029

2019–2029

2023–2030

2020–2031

2016–2032

2017/
2019–2033

2021–2033

2020–2034

2015/
2018–2035

2019–2044

250

500

200

500

200

350

200

150

500

160

200

150

100

300

230

100

300

125

0 .25%

1 .02%

1 .75%

1 .77%

1 .75%

2 .36%

1 .50%

1 .47%

1 .13%

1 .25%

0 .38%

2 .03%

0 .38%

0 .39%

0 .38%

0 .30%

0 .75%

0 .72%

0 .38%

0 .53%

1 .50%

1 .47%

0 .50%

0 .43%

1 .88%

1 .91%

0 .13%

0 .15%

0 .13%

0 .14%

0 .75%

0 .66%

0 .25%

0 .27%

0 .25%

0 .27%

1 .00%

1 .47%

0 .00%

–

504

450

202

463

193

350

201

150

460

161

201

151

100

300

232

100

296

125

251

504

465

201

491

184

350

201

150

488

161

201

–

100

300

233

100

281

125

2023–2053

2 .19%

2 .21%

4,789

–

4,886

1 Designated for hedge accounting of net investments in foreign operations.
2 Thereof CHF 350 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

consideration.

In the first quarter of 2023, Swisscom raised a green bond of CHF 150 million with a coupon of 1.875% and a
maturity of 7.5 years. The funds raised were used within the Green Bond Framework. In addition, Swisscom raised
a privately placed bond of CHF 50 million with a coupon of 2.19% and a maturity of 30 years in the first quarter of
2023. This was used to repay existing debt. Swisscom repaid a CHF 250 million bond upon maturity in the second
quarter of 2023. Swisscom repaid a CHF 500 million bond upon maturity in the third quarter of 2022.

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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

31.12.2023

31 .12 .2022

Carrying amount

170

150

1 .71%

0 .56%

1 .71%

0 .56%

171

151

322

171

151

322

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 one third, or if another shareholder can
exercise control over Swisscom.

Other financial liabilities
As at 31 December 2023, the carrying amount of other financial liabilities was CHF 151 million (prior year:
CHF 153 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 2023, the carrying amount of
the deferred gains was CHF 81 million (prior year: CHF 85 million). The deferred gains are released to other
income over the term of the individual leases.

149

Right-of-use assets

In CHF million

At cost

Balance at 1 January 2022

Additions

Disposals

Business combinations

Foreign currency translation adjustments

Balance at 31 December 2022

Additions

Disposals

Business combinations

Foreign currency translation adjustments

Balance at 31 December 2023

Accumulated depreciation and impairment losses

Balance at 1 January 2022

Depreciation

Disposals

Foreign currency translation adjustments

Balance at 31 December 2022

Depreciation

Impairment losses

Disposals

Foreign currency translation adjustments

Balance at 31 December 2023

Net carrying amount

Net carrying amount at 1 January 2022

Net carrying amount at 31 December 2022

Net carrying amount at 31 December 2023

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.

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150

Land
and buildings

Technical
installations

Other
right-of-use assets

2,341

203

(129)

(12)

2,410

234

(127)

(12)

2,509

(751)

(206)

(930)

(204)

(29)

121

(1,038)

1,590

1,480

1,471

1,038

(10)

–

(44)

1,021

(19)

–

(58)

1,006

(505)

(50)

(523)

(50)

–

(524)

533

498

482

Total

3,397

249

(141)

(56)

3,456

309

(147)

(70)

3,552

(1,263)

(262)

(1,464)

(262)

(29)

141

(2)

–

(1)

–

(7)

(6)

–

(11)

(8)

–

(18)

(1,580)

2023

1,911

309

(314)

(8)

(31)

2,134

1,992

1,972

2022

2,017

249

(284)

(98)

(24)

1,915

1,911

1,567

326

1,915

227

1,688

1,565

329

1,911

232

1,679

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

2023

182

2022

202

(88)

(94)

(262)

(29)

(262)

–

(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 2022 and 2023 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

31.12.2023

31 .12 .2022

130

–

130

132

(1)

131

Future lease payments in respect of operating leases are as follows as at 31 December 2022 and 2023.

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

31.12.2023

31 .12 .2022

Total future payments from operating leases

269

242

151

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
In particular, Swisscom leases comprise the rental of operation and office buildings, antenna sites, and 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 separation 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 connection 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 1

Change in fair value of interest rate swaps 2

Other financial income

Total financial income

Interest expense on financial liabilities

Interest expense on lease liabilities

Foreign exchange losses

Change in fair value of interest rate swaps 2

Interest and present-value adjustments on provisions 3

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

2023

2022

–

(75)

(44)

(8)

(5)

(12)

(16)

(160)

(130)

(44)

(67)

(62)

(44)

(9)

–

(18)

(15)

(148)

(72)

(44)

(58)

1 See Note 4.3.
2 See Note 2.5.

3 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
management 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

totalling CHF 2,200 million

153

Currency risks
As regards financial instruments, the following currency risks and hedging contracts existed for foreign currencies
as of 31 December 2022 and 2023.

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

31.12.2023

31 .12 .2022

EUR

(1,621)

(27)

(1,604)

(143)

(1,747)

240

463

781

(966)

USD

397

(216)

(38)

158

(259)

(101)

248

(35)

–

213

112

EUR

(1,872)

(57)

(1,871)

(210)

(2,081)

314

103

493

910

(1,171)

USD

425

(270)

(46)

130

(242)

(112)

242

(5)

–

237

125

As at 31 December 2023, Swisscom had outstanding financial liabilities with a nominal value totalling EUR 1,150 mil-
lion (CHF 1,061 million, prior year: EUR 1,350 million, CHF 1,330 million), which are designated for hedge
accounting of net investments in foreign operations. In 2023, income of CHF 70 million (prior year: CHF 64 million)
arising from the measurement of financial liabilities was recognised in other comprehensive income in the foreign
currency translation of foreign Group companies item. As at 31 December 2023, the cumulative positive amount
of foreign currency translation differences in equity resulting from financial liabilities which are designated for
hedge accounting of net investments in foreign operations totalled CHF 438 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

31.12.2023

EUR volatility 5 .90%

USD volatility 7 .39%

31.12.2022

EUR volatility 6 .15%

USD volatility 8 .12%

Income impact
on balance sheet
items

Hedges for
balance sheet
1
items

Planned
cash flows

Hedges for
planned
cash flows

(12)

115

(11)

(46)

(56)

–

(18)

–

(20)

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

31.12.2023

31 .12 .2022

5,482

5,494

(243)

(422)

(665)

4,829

(410)

813

403

5,239

(813)

4,426

4,829

5,648

235

5,883

(274)

(406)

(680)

5,203

(171)

1,068

897

5,374

(1,068)

4,306

5,203

Interest rate sensitivity analysis
A shift in interest rates by 100 basis points has an impact of CHF 4 million on the income statement (prior year:
CHF 9 million). It has no impact on equity as at 31 December 2022 and 2023.

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

31.12.2023

31 .12 .2022

148

375

527

121

419

549

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

31.12.2023

31 .12 .2022

324

156

527

293

160

549

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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

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

31.12.2023

31 .12 .2022

936

571

147

1,659

612

169

2,440

(55)

(10)

(3)

–

(68)

(31)

(25)

905

572

201

1,700

671

182

2,553

(52)

(10)

(2)

–

(64)

(35)

(23)

(124)

(122)

2,316

2,431

As at 31 December 2023, 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 .47%

4 .63%

22 .39%

44 .90%

73 .61%

5.08%

Par value

1,691

561

31.12.2023

Allowances

(8)

(26)

(15)

(22)

(53)

2,440

(124)

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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%

31 .12 .2022

Par value

Allowances

1,627

755

(8)

(28)

(16)

(22)

(48)

2,553

(122)

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

Foreign currency translation adjustments

Balance at 31 December

Liquidity risk
Contractual maturities including estimated interest payable

2023

122

(66)

(10)

(2)

124

2022

151

(69)

(21)

(2)

122

In CHF million

31.12.2023

Bank loans

Debenture bonds

Private placements

Derivative financial instruments

Other financial liabilities

Lease liabilities

Trade payables

Total

In CHF million

31.12.2022

Bank loans

Debenture bonds

Private placements

Derivative financial instruments

Other financial liabilities

Lease liabilities

Trade payables

Total

Carrying
amount

Contractual
payments

Due within
1 year

Due within
1 to 2 years

Due within
3 to 5 years

Due after
5 years

267

288

4,789

5,018

322

136

151

1,915

1,611

338

126

151

2,504

1,611

9,191

10,036

157

544

273

1,517

2,544

126

498

2,089

241

878

178

581

–

1,887

152

1,409

–

3,078

3,536

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

274

1,588

2,439

155

541

231

971

1,806

181

541

132

2,509

153

1,221

–

2,709

4,121

157

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

31.12.2023

31 .12 .2022

31.12.2023

31 .12 .2022

31.12.2023

31 .12 .2022

350

463

813

180

178

358

153

354

575

493

1,068

153

247

400

120

194

111

581

–

(14)

(98)

(39)

(79)

(112)

(118)

(8)

(7)

(15)

(2)

–

(2)

(3)

(2)

(9)

(136)

(25)

(111)

(7)

–

(7)

–

(4)

–

(4)

(129)

(11)

(118)

Total derivative financial instruments

1,525

2,049

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 instruments
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.

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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

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

Quoted debt instruments

Other financial assets

At amortised cost

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

31.12.2023

Level

258

117

375

408

416

227

117

344

408

416

795

764

267

4,789

322

136

151

265

4,609

317

136

144

5,665

5,471

Carrying amount

Fair value

Level

31 .12 .2022

285

134

419

379

383

245

134

379

383

811

771

512

4,886

322

129

153

508

4,497

300

129

145

6,002

5,579

Financial assets amounting to CHF 263 million (prior year: CHF 291 million) are not freely available as they serve
as security for liabilities.

159

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 instruments
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
quotations 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

2023 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

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.

Trade receivables

In CHF million

Billed revenue

Accrued revenue

Allowances

Total trade receivables 1

1 Credit risks. See Note 2.5.

01 .01 .2023

Operational
changes

Other
1
changes

31.12.2023

2,255

1,353

(1,674)

(1,571)

363

(79)

(7)

(33)

(23)

2,143

1,323

(1,611)

(1,471)

384

01 .01 .2022

Operational
changes

Other
1
changes

31 .12 .2022

2,315

1,179

(1,600)

(1,617)

277

(33)

187

(103)

(27)

(13)

2,255

1,353

(1,674)

(1,571)

363

31.12.2023

31 .12 .2022

2,173

(123)

2,143

2,236

139

(120)

2,255

161

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

31.12.2023

31 .12 .2022

174

268

161

528

178

278

162

514

1,323

1,353

961

146

222

1,471

1,084

149

203

1,571

31.12.2023

31 .12 .2022

132

174

570

323

961

119

178

650

358

1,084

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 2023, an amount of CHF 359 million was recorded as
revenue which had been recognised as a contract liability as at 31 December 2022. 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
subsidised mobile handset and a minimum contract term. These contracts incorporate revenue of CHF 653 million
(2024: CHF 502 million; 2025: CHF 151 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

31.12.2023

31 .12 .2022

166

102

268

158

120

278

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
valuation 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.

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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 2022

Additions

Disposals

Adjustment to dismantlement and restoration costs

Reclassifications

Business combinations

Foreign currency translation adjustments

Balance at 31 December 2022

Additions

Disposals

Adjustment to dismantlement and restoration costs

Reclassifications to non-current assets held for sale

Reclassifications

Business combinations

Foreign currency translation adjustments

28,316

1,017

(1,370)

(23)

170

–

(259)

27,851

1,067

(285)

185

–

150

–

(350)

1,675

(8)

–

(4)

4,614

205

(219)

(16)

(1)

1,673

4,657

(2)

–

(19)

–

(5)

196

(281)

–

107

(2)

Balance at 31 December 2023

28,618

1,666

4,712

Accumulated depreciation and impairment losses

Balance at 1 January 2022

Depreciation

Impairment losses

Disposals

Foreign currency translation adjustments

Balance at 31 December 2022

Depreciation

Impairment losses

Disposals

Reclassifications to non-current assets held for sale

Reclassifications

Foreign currency translation adjustments

Balance at 31 December 2023

Net carrying amount

Net carrying amount at 1 January 2022

Net carrying amount at 31 December 2022

Net carrying amount at 31 December 2023

(19,825)

(1,138)

(23)

1,368

166

(19,452)

(1,084)

(49)

285

–

234

(20,062)

8,491

8,399

8,556

(1,401)

(16)

–

(1,409)

(16)

–

(4)

(3,333)

(293)

(1)

215

–

(3,412)

(296)

(1)

275

–

(1,412)

(3,433)

274

264

254

1,281

1,245

1,279

725

903

970

725

424

–

(243)

–

(3)

903

338

–

(267)

–

(4)

970

–

Total

35,330

1,651

(1,597)

(39)

(267)

35,084

1,609

(568)

219

(19)

(361)

35,966

(24,559)

(1,447)

(24)

1,589

168

(24,273)

(1,396)

(50)

562

–

238

(24,907)

10,771

10,811

11,059

Commitments for future capital expenditures
Firm contractual commitments for future capital investments in property, plant and equipment as at 31 Decem-
ber 2023 aggregated CHF 1,162 million (prior year: CHF 1,019 million).

Non-cash investing and financing transactions
As a result of changes in the assumptions made in estimating dismantling and restoration costs, an increase
in the corresponding provisions of CHF 219 million (prior year: decrease of CHF 39 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 lives 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 lives 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 lives for the main categories of property, plant
and equipment are as follows: