Group structure and organisation

Management structure

From 1 January 2016 onwards, Swisscom further increased the level of digitisation within its organisational structure in order to strengthen areas with close customer proximity and boost the company’s effectiveness in the highly competitive ICT market. In doing so, the company has combined distribution and service for Residential Customers and Small and Medium-Sized Enterprises of Swisscom Switzerland in the Sales & Services unit as well as the digital business in the Digital Business unit. To exploit synergies and accommodate the increasing level of convergence, Swisscom is also combining product development and product provision for Residential Customers and SME into one. The focus placed on corporate business will remain of central importance, and the organisational structure of Enterprise Customers will be further simplified. Through these adjustments Swisscom wants to improve the customer experience from a single source, simplify processes and increase efficiency in order to create greater scope for innovation. The restructuring has resulted in changes in the Group Executive Board.

The Group organisation is based on the following management structure: The Board of Directors of Swisscom Ltd is responsible for overall management and for determining the Group’s strategic, organisational and financial principles. It delegates day-to-day business management to the CEO of Swisscom Ltd. Together with the CEO, the heads of the Group divisions Group Business Steering (CFO) and Group Human Resources (CPO) as well as the heads of the Sales & Services, Products & Marketing, Enterprise Customers and IT, Network & Infrastructure of Swisscom Switzerland form the Group Executive Board. The Board of Directors of Italian subsidiary Fastweb is presided over by the CEO of Swisscom Ltd. The management of Fastweb has been transferred to the Delegate of the Board of Directors of Fastweb.


Group structure

The holding company Swisscom Ltd is responsible for overall management as well as the strategic and financial management of the Group. By law, the Swiss Confederation must hold the majority of shares in Swisscom Ltd. As at 31 December 2016, the Confederation held 51.0% of the shares in Swisscom Ltd, which remains unchanged from the previous year.

27 Swiss subsidiaries (prior year: 33) and 14 foreign subsidiaries (prior year: 15) were fully consolidated in Swisscom’s financial statements as at 31 December 2016, while 15 associated companies (prior year: 15) were included according to the equity method. Swisscom also holds various non-­controlling interests in growth companies.

Swisscom Ltd mainly holds direct majority interests in Swisscom (Switzerland) Ltd, Swisscom Broadcast Ltd and Swisscom Directories Ltd. Fastweb S.p.A. (Fastweb) is held indirectly via Swisscom (Switzerland) Ltd and an intermediate company in Italy. Swisscom Re Ltd in Liechtenstein is the Group’s own reinsurance company.

The main associates of Swisscom are Belgacom International Carrier Services Ltd (international data traffic), siroop Ltd (online marketplace), Admeira Ltd (marketing of media offerings and advertisement platforms) as well as Flash Fiber S.r.l. (optical fibre expansion in Italy).

Key changes to the Group structure in the year under review

At the start of 2016, Swisscom acquired a 50% stake in Geneva-based Open Web Technology SA, which was renamed Swisscom Digital Technology SA after the takeover. The acquired company is a specialist in the digital transformation of companies. The acquisition allows Swisscom to further expand its digitisation expertise with corporate customers.

As a result of organisational changes and in order to simplify processes, a number of companies in the Swiss core business were merged with Swisscom (Switzerland) Ltd in 2016, namely Swisscom Banking Provider Ltd, Wingo Ltd as well as all Veltigroup companies.

In Italy, Swisscom sold its 10.6% minority shareholding in Metroweb S.p.A. at the end of 2016. Its Italian subsidiary Fastweb and Telecom Italia (TIM) intend to cooperate on the rollout of Fibre to the Home (FTTH), and for this purpose have founded Flash Fiber S.r.l., in which Fastweb holds a 20% stake.

Segment reporting

For financial reporting purposes, the business divisions of Swisscom are allocated to individual segments based on the management structure. For practical reasons, segment reporting for 2016 has not been changed in comparison with the previous year. Segment reporting in 2016 thus continues to comprise the following: Swisscom Switzerland, Fastweb and Other Operating Segments. Swisscom Switzerland covers the segments Residential Customers, Small and Medium-Sized Enterprises, Enterprise Customers, Wholesale and IT, Network & Innovation.

Starting in 2017, segment reporting will be adapted to the management structure. The main change concerns segmental reporting for the Swisscom Directories unit (localsearch), which was previously reported as part of the Small and Medium-Sized Enterprises segment. The unit is now reported in the Digital Business unit under “Other Operating Segments”. The new segment reporting is shown below and is broken down as follows: Swisscom Switzerland, Fastweb and Other Operating Segments. Swisscom Switzerland covers the segments Residential Customers, Enterprise Customers, Wholesale and IT, Network & Infrastructure. Group Headquarters, which primarily includes the Group divisions Group Business Steering, Group Human Resources, Group Communi­cations & Responsibility, Group Strategy & Board Services and Group Security, continues to be reported separately: