Letter from the Chair of the Compensation Committee

Dear shareholders,

The Swisscom Group achieved solid financial results in 2025, with the acquisition of Vodafone Italia leading to a significant increase in revenue. With revenue of CHF 15,048 million and an operating result (EBITDAaL) of CHF 4,984 million, net income totalled CHF 1,270 million. The challenging process of integrating Vodafone Italia is progressing according to plan, allowing us to realise the first expected synergy effects. As a result of this development, Swisscom will propose an increase in the dividend from the current CHF 22 per share to CHF 26 per share for the 2025 financial year at the Annual General Meeting in March 2026.

As ‘Innovators of Trust’, we focus on secure, transparent solutions that empower individuals, businesses and society to leverage the opportunities of new technology. Our innovative new ‘beem’ offering, for instance, is ushering in a new era of cybersecurity for business customers in Switzerland. By directly integrating cybersecurity into its network, Swisscom is setting a new standard. In 2025, we also launched ‘myAI’, the AI assistant developed in Switzerland, for Switzerland with features ranging from text and image generation to data analysis.

Despite our stronger foothold in Italy, our commitment to Switzerland and its people remains unchanged. We are pressing ahead with the expansion of the network. The country will continue to enjoy one of the world’s best network infrastructures.

The Compensation Committee reviewed the Group Executive Committee’s remuneration system in 2025, looking for ways to bring it more in line with market standards, with greater orientation towards long-term performance management and value generation for shareholders. While the market relevance of long-term incentive components is proven, Swisscom's current remuneration framework and governance does not presently provide the flexibility required to introduce such elements. Nonetheless, the minimum shareholding requirement supports the long-term focus of remuneration, and the Compensation Committee proposed to the Board of Directors that the existing remuneration model be retained for 2026. In addition to financial performance – a key determinant of overall target achievement – the current model also includes targets related to business transformation. Group Executive Committee members will continue to receive a variable performance component, paid out in cash and blocked shares. This approach brings remuneration of the Group Executive Committee in line with strategy execution and allows for compensation of sustainable performance while also reflecting Swisscom’s responsibility to the positive development of society and the protection of the environment.

Swisscom can look back on a successful 2025. Not only did it secure a good financial result, it also achieved strong progress in business transformation, as the Board of Directors found in their assessment. This resulted in an overall target achievement of 112% for the members of the Group Executive Committee. In the reporting year, the Board of Directors also approved an extraordinary RSU grant for the members of the Group Executive Committee to support long-term retention and acknowledge the leadership team’s significant additional efforts in connection with the integration of Vodafone Italia. The Board believes strong, stable management is essential for the successful execution of Swisscom’s strategic priorities and for realising the value creation potential of this major acquisition. Despite this grant, the total remuneration of the Group CEO and the members of the Group Executive Committee remains substantially below the first quartile of the market benchmark for comparable positions. The total remuneration for the members of the Board of Directors and the Group Executive Committee for the 2025 financial year is within the range approved by the 2025 Annual General Meeting.

Once again this year, you, the shareholders, will have an opportunity to decide on Swisscom’s remuneration principles and system in the consultative vote on the Remuneration Report at the Annual General Meeting in March 2026. You will also be voting on the maximum total remuneration for the Board of Directors and the Group Executive Committee for the 2027 financial year. The proposed maximum remuneration for 2027 amounts to CHF 2.6 million for the Board of Directors and CHF 5.9 million for the Group Executive Committee.

The Compensation Committee will continue to fulfil its responsibilities by conducting further reviews of the remuneration strategy and system in the coming year. Our goal is to align Swisscom’s principles with the interests of shareholders and other stakeholders and reward performance both appropriately and sustainably. We look forward to your support and thank you for your trust.

Kind regards,

Monique Bourquin, Chair of the Compensation Committee