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facts figures chf in millions except where indicated 2008 2007 change net revenue and results net revenue operating income ebitda ebitda as of net revenue 1 12,198 4,789 39.3 2,640 1,751 1,756 chf 11,089 4,501 40.6 2,515 2,071 2,068 39.92 10.0 6.4 5.0 15.5 15.1 15.1 operating income ebit 2 net income net income attributable to equity holders of swisscom ltd earnings per share balance sheet and cash flow equity at end of period equity ratio at end of period 3 operating free cash flow 4 capital expenditure in tangible and other intangible assets net debt at end of period 5 employees number of full-time equivalent employees at end of period 6 average number of full-time equivalent employees net revenue per employee ebitda per employee 7 33.90 5,763 25.3 2,476 2,050 9,860 6,004 25.4 2,077 2,025 10,337 4.0 19.2 1.2 4.6 fte fte chf in thousands chf in thousands 19,943 19,801 616 242 19,844 18,755 591 240 0.5 5.6 4.2 0.8 operational data wireline access lines pstn/isdn in switzerland broadband access lines in switzerland mobile subscribers in switzerland bluewin tv customers in switzerland subscribers in italy swisscom share par value per share at end of period number of issued shares average number of outstanding shares closing price at end of period price per share high price per share low market capitalisation at end of period 8 ordinary dividend extraordinary dividend payout ratio 10 in thousands in thousands in thousands in thousands in thousands 3,623 1,756 5,370 118 1,483 3,686 1,602 5,007 59 1,263 1.7 9.6 7.2 100.0 17.4 chf 1.00 53.441 51.793 339.50 442.75 292.00 17,587 19.00 56.04 9 9 1.00 56.719 51.802 442.00 486.00 402.50 22,896 18.00 2.00 45.09 9 9 5.8 23.2 in mio in mio chf chf chf chf chf 23.2 5.6 24.3 1 defintion operating income ebitda operating income before depreciation amortisation and impairment on tangible and intangible assets gain on sale of subsidiaries net financial result share of profit of investments in associates and income tax expense 2 defintion operating income ebit operating income before gain on sale of subsidiaries net financial result share of profit of investments in associates and income tax expense 3 equity in of total assets 4 definition operating free cash flow operating income ebitda change in operating assets and liabilities less net capital expenditure in tangible and other intangible assets and dividends paid to minority interests 5 definition net debt financial liabilities less cash and cash equivalents current-financial assets financial assets from cross-border lease agreements and non-current derivative financial instruments 6 excluding 178 previous year 275 full-time equivalent employees of worklink at december 31 2008 7 excluding 145 and 352 full-time equivalent employees of worklink in 2008 and 2007 respectively 8 closing price at end of period multiplied with number of outstanding shares at end of period 9 in accordance with the proposal of the board of directors to the annual general meeting 10 representing gross dividend in of earnings per share.[close]
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table of contents page introduction editorial the year of view of the group executive board highlights 2008 management commentary economic environment strategy and organisation resources regulatory environment risk factors financial review outlook share information corporate governance and remuneration report corporate governance remuneration report annual financial statements consolidated financial statements financial statements of swisscom ltd sustainability report other information glossary index of keywords five-year review publishing details 234 239 240 241 119 202 211 93 112 35 38 45 50 52 56 86 90 3 11 34[close]
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we re there for you dear reader swisscom ended 2008 on a successful footing and so far unscathed by the financial crisis however economic conditions may start to slow down performance as we progress into 2009 last year was an important year for swisscom as far as implementing the new strategy was concerned many segments reported renewed gains in market share while fastweb showed very encouraging performance and it services successfully consolidated its market position the year under review was punctuated by a series of changes including the creation of a new customer-centric organisation in these challenging times our customers will continue to take centre stage their interests come first and they are the yardstick by which we measure ourselves amid all these changes our promise to our customers remains a constant we re there for you.[close]
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from new organisation to new brand identity a logical and necessary consequence of the reorganisation was the renewal of our brand identity at the beginning of 2008 swisscom still had four individual brands and four individual brand identities a new identity was adopted in a conscious move to strengthen the swisscom brand the new visual identity is more emotional younger and encapsulates swisscom s customer-centric approach with on-screen communication becoming increasingly popular our new animated logo as at its most effective on this medium successful finish to a challenging year our swiss business posted stable performance revenue and operating income held steady year-on-year despite price falls of around half a billion francs while only net income was negatively impacted by one-off events notably the early termination of long-term leasing agreements infrastructure for the benefit of our customers and switzerland according to the renowned uk publication «the economist» switzerland has one of the best telecoms infrastructures in the world at the same time swisscom commands an impressive market share by international comparison this is because swisscom invested early on in new technologies and was quick to set things in motion to achieve comprehensive umts and vdsl coverage for example there is a direct correlation here between our early adoption of new technologies and our position in the marketplace with an eye to the future swisscom is also investing in expanding the fibreoptic network we want to remain competitive over the next five to fifteen years and make sure that switzerland continues to enjoy one of the best infrastructures in the world at a time when state economic stimulus packages are prevalent there is a further important aspect to our investments some 6,000 jobs outside swisscom closely depend on the chf 1.5 billion that we invest every year in the swiss economy consistent customer focus «we re there for you» is the guiding principle that dictates the way swisscom thinks and acts true to our promise we transformed swisscom s organisational structure in 2008 so that we are now equipped to offer our customers everything from a single source customer feedback has shown that we are on the right track we also made further headway in strengthening our customer service organisation despite these initiatives our efforts will remain focused on improving customer service even more in 2009 implementation of the telecommunications act faster than any other country in europe the new telecommunications act has been in force since april 2007 no other european country unbundled the local loop faster than switzerland swisscom worked flat out to implement the provisions of the act and invested over chf 70 million in opening up the last mile in a dedicated effort to carry out the legislator s bidding and make our infrastructure available to competitors customers are reaping the benefits of increasingly lower prices new product offerings and innovations against this background there is no reason at present to revise the telecommunications act since this would only serve to trigger legal uncertainty this at a time when other countries are sinking billions into economic stimulus packages or deliberating over how to spur private-sector investment in next-generation fibre-optic networks.[close]
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«no other european country unbundled the local loop faster than switzerland.» residential customers iphone and bluewin tv as highlights swisscom also continued to expand its portfolio of offerings for residential customers during the year under review two products proved an instant hit the first of these was the iphone which sold close to 181,000 units in just over six months while subsidisation of the device resulted in a one-off charge to operating income on the credit side third-quarter sales of the iphone increased the mobile customer base by 25 compared with the average for the two prior quarters the iphone is helping to democratise the mobile internet while driving up revenue from mobile data traffic added to this iphone is providing an innovative boost to handhelds in general the second hit was bluewin tv which by the end of 2008 had attracted some 118,000 customers we also succeeded in massively reducing installation costs per customer in 2009 customers can look forward to an expanded range of services as swisscom continues to add customer value corporate business expands market position given the challenging market environment we were particularly encouraged by our successful bid to boost market shares in the corporate business segment moreover mindful of the growing importance of global business we concluded an international partnership agreement with verizon in 2008 which will allow us to offer cross-border services to our customers a further highlight of the year came when credit suisse named us «strategic supplier of the year 2008» in 2009 we aim to further expand our market shares while generating aboveaverage growth in mobile communications and mobile data business it services achieves turnaround swisscom it services is going from strength to strength external revenue and profitability are both up important new customers have been added to the portfolio and the company s image has been enhanced swisscom it services is a leading provider of integrated systems for the banking sector and a leading player in the market for infrastructure outsourcing solutions in switzerland priorities for 2009 include gaining further market shares while extending contracts and expanding activities among existing customers fastweb encouraging news from italy our italian subsidiary accounted for chf 179 million of swisscom s operating free cash flow and is therefore making a significant contribution to this year s dividend payout to shareholders corporate business is particularly important to fastweb and accounted for 70 of growth in 2008 while fastweb commands only an 13 share of the corporate business market it already controls over 16 of the promising data business market the future will see a large number of corporate customers implementing voice-over-ip services based on services currently offered by fastweb competition in the corporate customer segment will also offer greater scope for growth than the residential segment.[close]
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sustainability as a basic principle swisscom has long prescribed that natural resources be treated in a sustainable manner not surprisingly swisscom became the first telecoms company worldwide to be awarded iso 14001 certification our customers demand for ever-higher network and computing power will continue to push up energy consumption in this context we employ a variety of measures designed to minimise the increase in consumption for example our mistral project came up with the idea of deploying an efficient ventilation system to harness the waste heat from the telephone exchanges and thereby save on energy indeed the mistral project was accorded the european innovation prize in recognition of this achievement swisscom is also the biggest purchaser of eco-power in switzerland sustainability and our close ties with switzerland also lie at the heart of our long-standing partnership as lead sponsor of the swiss ski association after a long spell with few victories we can once again celebrate the achievements of our winter sports athletes along with the rest of switzerland reliable partnerships commitment and trust yield results in both the sporting and business world.[close]
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«fastweb is making a significant contribution to this year s dividend payout to shareholders.» swisscom share posts good performance in 2008 the swisscom share was among the top smi performers in 2008 despite suffering a fall in value triggered by capital market predictions of higher investment activity across the sector the swisscom share together with the shares of netherlands-based kpn fared best in the european telecoms sector which goes to show the sector s defensive qualities payment of an ordinary dividend of chf 19 previous year chf 18 will be proposed to the annual general meeting of shareholders in light of the current difficult conditions on capital markets and in order to reduce net debt faster than planned there will be no special dividend payout or share buy-back in 2009 outlook for 2009 the financial outlook for 2009 is based on the assumption that the worsened economic climate will only have a limited impact on customer demand for telecoms services excluding fastweb swisscom expects net revenue for 2009 of between chf 9.2 billion and chf 9.3 billion ebitda of between chf 3.8 billion and chf 3.9 billion and capital expenditure of around chf 1.35 billion fastweb is expected to report revenue of around eur 1.8 billion ebitda of around eur 560 million and capital expenditure in the region of eur 415 million group operating free cash flow including fastweb will lie between chf 2.6 billion and chf 2.7 billion a warm thank you all told we can look back on a successful and eventful year we owe our achievements in 2008 to the trust of our customers to the loyalty of our shareholders and to the untiring dedication and commitment of our employees a warm thankyou to you all yours sincerely dr anton scherrer chairman of the board of directors of swisscom ltd carsten schloter ceo swisscom ltd[close]
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christian petit head of residential custommers swisscom switzerland 12 «our customers should be able to say swisscom knows what i need.» christian petit looking back on 2008 what do you see as the highlights we managed to maintain and in some cases even increase our market share in 2008 i attribute this primarily to the loyalty of our customers towards swisscom our good customer service and of course to the quality of our products and networks what is the focus of the residential customers segment in 2009 we must continue to build on our strengths and will be focusing more strongly on two areas proximity and relevant experiences what do we mean by that proximity means that customers can say «swisscom knows what i need swisscom understands me.» this sentiment must be conveyed in everything we do at customer touch points in the way products are designed and obviously also in marketing campaigns this is also about providing our customers with relevant offerings and excellent service which together form a coherent experience and lasting impression in which areas can your division continue to grow this year we have identified two areas for growth on which we will be focusing our attention firstly growth in the digital tv business the number of bluewin tv customers almost doubled in 2008 and the potential is far from exhausted secondly mobile internet also harbours major potential for growth due in part to good userfriendly devices such as the iphone and various netbooks and notebooks more and more residential customers want to be online while on the move in the first half of 2009 residential customers will also be able to surf the internet via the ultra-highspeed fibre-optic network for the first time.[close]
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