Value-oriented business management
Key performance indicators for planning and managing business operations are revenue, operating income before depreciation and amortisation (EBITDA) and capital expenditure. The enterprise value/EBITDA ratio also permits comparisons of Swisscom’s enterprise value derived from the share price on the balance sheet date with that of similar companies (European telecommunications companies) as well as with the prior year. The members of the Board of Directors and Group Executive Board are paid a portion of their remuneration in the form of Swisscom shares, which are blocked for a period of three years. They are also subject to a minimum shareholding requirement. Variable remuneration based on financial and non-financial targets, the partial settlement of remuneration in shares and the minimum shareholding requirement ensure that the financial interests of management are aligned with the interests of shareholders.
|In CHF million, except where indicated||31.12.2020||31.12.2019|
|Net debt incl. lease liabilities||8,206||8,785|
|Defined benefit obligations||795||1,058|
|Income tax assets and liabilities, net||643||607|
|Equity-accounted investees and other non-current financial assets||(320)||(339)|
|Enterprise value (EV)||34,040||36,668|
|Operating income before depreciation and amortisation (EBITDA)||4,382||4,358|
|Ratio enterprise value/EBITDA||7.8||8.4|
Swisscom’s enterprise value fell by 7.3% or CHF 2.7 billion to CHF 34.0 billion in 2020. The main reason for this was the decline of CHF 2.4 billion in the company’s market capitalisation to CHF 24.7 billion. With EBITDA remaining stable, the ratio of enterprise value to EBITDA fell to 7.8 (prior year: 8.4). Swisscom’s relative market valuation is therefore well above the average for comparable companies in Europe’s telecoms sector. The higher relative valuation is supported by Swisscom’s solid market position and attractive dividend. In addition, the lower interest rates and lower income tax rates in Switzerland compared with other European countries have a positive effect.