Shareholders' Letter

In 2009 and 2010, further cross-border lease agreements were terminated and repaid. At 31
December 2010, the financial liabilities including accrued interest arising from cross-border lease
agreements aggregated USD 104 million (CHF 98 million) and assets USD 104 million (CHF 98 million),
respectively, which, in compliance with SIC 27, were not recognised in the balance sheet.
Future minimum payments under the cross-border lease agreements as of 31 December 2009 are
due as follows:
In CHF million 31.12.2009
Within 1 year 10
Within 1 to 2 years 2
Within 2 to 3 years –
Within 3 to 4 years 3
Within 4 to 5 years 2
After 5 years –
Total future minimum lease payments 17
Less future finance costs (2)
Total financial liabilities from cross-border lease agreements 15
Thereof current financial liabilities from cross-border lease agreements 9
Thereof non-current financial liabilities from cross-border lease agreements 6
Liabilities arising from finance leases
In addition to the cross-border lease agreements described above, Swisscom concluded two agreements
in 2001 for the sale of real estate. At the same time, Swisscom entered into long-term agreements
to lease back part of the real estate sold which, in part, qualify as finance leases. The gain
of CHF 196 million realised on the sale of those properties and classified as being subject to finance
leases is deferred and released to income over the individual lease terms as other income. In 2010,
CHF 6 million (prior year: CHF 3 million) of the deferred gain was released. The effective interest
rate of the finance lease liabilities was 6.55%. The minimum lease payments relating to these
leaseback agreements are included in the table below. The remaining real estate has been leased
back under operating leases over periods ranging from 5 to 20 years. See Note 35. In 2010, contingent
rental payments of CHF 4 million (prior year: CHF 4 million) were recorded as rental expense.
As of the balance sheet date, future minimum lease payments and financial liabilities aggregated:
31.12.2009
In CHF million 31.12.2010 restated
Within 1 year 56 62
Within 1 to 2 years 65 57
Within 2 to 3 years 48 63
Within 3 to 4 years 46 48
Within 4 to 5 years 46 46
After 5 years 1,704 1,750
Total future minimum lease payments 1,965 2,026
Less future finance costs (1,290) (1,331)
Total finance lease liabilities 675 695
Thereof current finance lease liabilities 14 17
Thereof non-current finance lease liabilities 661 678