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Alternative per­for­mance mea­sures

Swisscom uses key indicators defined in the In­ter­na­tional Financial Reporting Standards (IFRS) through­out its entire financial reporting, as well as selected alternative per­for­mance 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 mea­sures used at Swisscom for 2020 financial reporting are defined as follows:

Key per­for­mance measure   Swisscom definition
Adjustments   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.
At constant exchange rates   Key per­for­mance mea­sures considering currency effects (figures for 2020 are translated at the 2019 exchange rate to calculate the currency effect).
Operating income before de­pre­ci­a­tion and amor­ti­sa­tion (EBITDA)   Operating income before de­pre­ci­a­tion, amor­ti­sa­tion and impairment losses of property, plant and equipment, intangible assets and right-of-use assets, financial expense and financial income, result of equity-accounted investees and income tax expense.
Operating income (EBIT)   Operating income before de­pre­ci­a­tion and amor­ti­sa­tion of property, plant and equipment, intangible assets and right-of-use assets, financial expense and financial income, result of equity-accounted investees and income tax expense.
Capital ex­pen­di­ture   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 free cash flow proxy   Operating income before de­pre­ci­a­tion and amor­ti­sa­tion (EBITDA) minus capital ex­pen­di­ture in property, plant and equipment, intangible assets and payments for indefeasible rights of use (IRU) and lease expense. Lease expense includes interest expenses on lease liabilities and de­pre­ci­a­tion of rights of use excluding de­pre­ci­a­tion of indefeasible rights of use (IRU) and impairment losses on right-of-use assets.
Free cash flow   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.
Net debt   Financial liabilities less cash and cash equivalents, listed debt instruments, certificates of deposit, derivative financial instruments held for hedging financial liabilities and other current financial assets.
Net debt incl. lease liabilities   Net debt and lease liabilities.