General terms and conditions of employment

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Annual Report 2018

Annual Report 2018

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Annual Report 2018

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Index
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Shareholders' letterIntroduction

Key events 2018 KPIs of Swisscom Group Business overview

Management Commentary

Strategy and environment

Corporate strategy Objectives and achievement of targets General conditions Data protection

Infrastructure in Switzerland Infrastructure in Italy

Employees in Switzerland Employees in Italy

Brands, products and services

Swisscom brands Products and services in Switzerland Products and services in Italy Customer satisfaction

Innovation and development

Innovation as an important driver Innovation focused on specific topics

Financial review

Summary Segment results Depreciation and amortisation, non-operating results Cash flows Capital expenditure Net asset position Value-oriented business management Statement of added value Financial outlook

Swisscom share Dividend policy Credit ratings and financing

Risk situation Risk factors

Swisscom Group five-year review

Corporate Governance and Remuneration Report

Corporate Governance

1 Principles 2 Group structure and shareholders 3 Capital structure 4 Board of Directors 5 Group Executive Board 6 Remuneration, shareholdings and loans 7 Shareholders’ participation rights 8 Change of control and defensive measures 9 Auditor 10 Information policy 11 Financial calendar

Remuneration Report

1 Governance 2 Remuneration of the Board of Directors 3 Remuneration of the Group Executive Board 4 Other remuneration Statutory Auditor’s Report

Consolidated Financial Statements

Consolidated statement of comprehensive income Consolidated balance sheet Consolidated statement of cash flows Consolidated statement of changes in equityNotes to the consolidated financial statements

General information and changes in accounting policies 1 Operating performance 2 Capital and financial risk management 3 Operating assets and liabilities 4 Employees 5 Scope of consolidation 6 Other disclosures

Statutory Auditor’s Report

Financial statements of Swisscom Ltd

Income statement Balance sheetNotes to the financial statements

1 General information 2 Summary of significant accounting policies 3 Disclosures on balance sheet and income statement positions 4 Further information

Proposed appropriation of retained earnings Statutory Auditor’s Report

Sustainability Report

Stakeholders’ letter Sustainable environment Material issues

Corporate Responsibility strategy

Priorities and objectives up until 2020 Priorities and objectives up until 2025 Swisscom’s contribution to the SDGs CR targets Corporate responsibility – governance and implementation Ethics in the digital world Management approaches

Responsibility towards the public

Swisscom’s commitment Actor in public debates Accessibility

Energy efficiency and climate protection

Management approach Energy efficiency: energy consumption and savings at Swisscom The 2:1 climate protection target in detail Portfolio: offers for CO₂ savings Carbon footprint Other environmental aspects in the company Environmental key figures in Switzerland

Management approach Portfolio: offers in the healthcare sector Low-radiation communications technologies

Media skills and security

Management approach Data protection Media protection for minors and promoting media skills Internet for Schools initiative

Responsible employer

Management approach General terms and conditions of employment Training and education Diversity and equal opportunities Occupational health and safety

Fair supply chain

Management approach Supplier risk management Circular economy

Networked Switzerland

Management approach Basic service provision Net neutrality Internet of Things

Innovation and development

Management approach Innovation focused on specific topics

About this report

Scope of the report Reporting: procedure and organisation SGS verification GRI Index

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General terms and conditions of employment

Swisscom employees benefit from generous employment conditions that considerably exceed the statutory minimum requirements. These include:

Goal 8 DECENT WORK AND ECONOMIC GROWTH