Corporate strategy and objectives
The market environment in which Swisscom operates has already changed radically in recent years. Connectivity is ever-present and will increase further. Countless people, applications and devices will be in permanent communication with each other in future. The digitalisation of society will lead to a fourth industrial revolution (“Industry 4.0”), and production processes and contact with customers will be revolutionised in all sectors. In addition competition between global and local providers will intensify and new competitors – often with disruptive business models – will attempt to gain a foothold in the ICT markets. In response to the far-reaching developments in the market environment and heightened market dynamics, Swisscom periodically re-evaluates its strategy and sets priorities and formulates concrete objectives accordingly.
The vision of Swisscom: the best in the networked world – always and everywhere
At Swisscom, people and their relationships are at the heart of all our activities. Customer focus, sustainability, passion, curiosity and reliability are the values that guide our employees’ actions. To always offer the best in the networked world, Swisscom must consistently meet the highest expectations in terms of infrastructure, customer experience and growth.
Building the best infrastructure
Swisscom will increase its efficiency through a scalable infrastructure, increasingly virtualised services and infrastructure, and continual improvement processes. The Swisscom Cloud infrastructure offers a high level of quality and security and is the basis for new scalable offerings that are produced in Switzerland. The transfer of internal platforms to the Swisscom Cloud increases scalability, flexibility and cost efficiency. By providing simple programming interfaces the open cloud gives partners flexible access to infrastructure and provides the basis of an ecosystem for developers. Swisscom is continuing to drive forward the technological transformation from traditional to IP-based solutions. This enables Swisscom to bring new services to market faster, operations and processes become more flexible, and residential customers can access their data from any location and on any device.
Creating the best experiences
When optimising processes and creating new digital services and experiences, Swisscom always takes a customer-centric approach and aims to improve customer perception. In doing so Swisscom aims to further boost customer loyalty and strengthen its brand. Current examples of new services and improved experiences are the personalisation options in Swisscom TV 2.0; the launch of Voice over LTE and WiFi Calling, which further improve the telephony experience; “Smart Enterprise Services”, which assist companies in achieving digital transformation; and the newly launched express delivery service for online purchases.
Realising the best growth opportunities
In addition to pursuing these strategic goals, Swisscom is also implementing measures that will have a transversal impact on the Group. This is designed to transform the company and create structures fit for the future. Careful use of resources, lean structures and a clear strategy will ensure that Swisscom remains competitive in future on both the product and cost side.
Forerunner in corporate responsibility
Swisscom’s corporate responsibility activities focus on issues which have high relevance for stakeholder groups and at the same time are closely linked to the company’s core business and thus entail market opportunities. Swisscom’s vision is of a modern, forward-looking Switzerland: a country of great opportunities, particularly in the field of sustainability. Specifically, Swisscom focuses on the following six areas as strategic priorities. For each of these it has formulated a long-term target for 2020:
Energy efficiency and climate protection
Together with its customers, Swisscom is aiming to save twice as much CO2 as it emits through its operations and supply chain by 2020. Green ICT enables companies to massively reduce energy consumption and CO2 emissions. Video conferencing and home office solutions generate savings in travel time and costs, and ICT services from the cloud allow business customers to operate their IT operations more efficiently than if they were to use a server of their own. Buildings, vehicles and networks can be managed in an energy-efficient manner thanks to ICT solutions. Swisscom also offers residential customers numerous ways to reduce their carbon footprint, from online billing to a recycling service for mobile phones. Swisscom is committed to reducing its own CO2 emissions from its operations and supply chain and also requires its suppliers to reduce their carbon footprint.
By 2020, Swisscom wants to be serving one million customers with its offerings in the healthcare sector, such as the Swisscom health platform and fitness sensors, electronic patient dossiers and products from its subsidiary Datasport. Swisscom also wants to give one million customers the opportunity to take advantage of mobile working models by 2020. To this end, it has included Work Smart services in its portfolio and supports mobile working methods through activities such as the Home Office Day.
Media skills and security
Swisscom aims to be the market leader in data security by 2020, helping one million people to use the media safely and responsibly. To date, Swisscom has provided free Internet access to schools and introduced first-time users to the digital world through media training courses. In doing so, Swisscom aims to protect young people in the use of online media by means of technical solutions and offerings that promote media skills.
Swisscom wants to be one of the most attractive employers in Switzerland by 2020. It offers employees opportunities for personal development and promotes work-life balance. Fair terms and conditions of employment are as important to Swisscom as an active social partnership and an above-average commitment to vocational training. Swisscom employees also have the chance to get involved in social and community projects, for example, by participating in the Corporate Volunteering Programme.
Fair supply chain
In the interests of a fair supply chain, Swisscom is committed to improving employment conditions for more than two million people by 2020. To this end, Swisscom has forged international partnerships that will ensure the implementation of relevant measures in close collaboration with suppliers. The company also commissions annual audits to review whether working conditions at its suppliers are improving.
Swisscom is aiming to supply 85% of all households and businesses with ultra-fast broadband (speeds in excess of 100 Mbps) by the end of 2020. Furthermore, by the end of 2016, 99% of the population will be able to benefit from the fourth-generation mobile network incorporating 4G/LTE technology. As a result, Swisscom is indirectly contributing around CHF 30 billion to the country’s GDP and helping to create and maintain some 100,000 jobs.
Based on its strategy, Swisscom has set itself various short- and long-term targets that take economic, ecological and social factors into consideration.
|Financial targets 1|
|Net revenue||Group revenue for 2015 of more than CHF 11.4 billion||CHF 11,678 million|
|Operating income before depreciation and amortisation (EBITDA)||EBITDA for 2015 of around CHF 4.2 billion||CHF 4,098 million|
|Capital expenditure in property, plant and equipment and other intangible assets||Capital expenditure for 2015 of CHF 2.3 billion||CHF 2,409 million|
|Ultra–fast broadband in Switzerland 2||Coverage of 85% by the end of 2020||67% or around 2.9 million in excess of 50 Mbps|
|Ultra–fast broadband in Italy||Coverage of 30% by the end of 2016||25% or 6.3 million|
|Mobile network in Switzerland||Coverage of 99% with 4G/LTE by the end of 2016||98%|
|Energy efficiency in Switzerland||+25% by the end of 2015 compared to 1 January 2010||+29.6%|
|CO2–emissions in Switzerland||–12% by the end of 2015 compared to 1 January 2010||–23.5%|
1 As communicated over the course of the year, the financial targets for 2015 were adjusted as a result of the change in the assumed CHF/EUR exchange rate and the creation of a provision for legal proceedings as follows: Group revenue of more than CHF 11.5 billion, EBITDA in excess of CHF 4.0 billion and capital expenditure of more than CHF 2.3 billion.
2 Basis: 3.6 million households and 0.7 million businesses (Swiss Federal Statistical Office – SFSO).