Shareholders' Letter

Other reserves
Cumulative
foreign
currency Total
Hedging Fair-value translation other
In CHF million reserve reserve adjustments reserves
Balance at 31 December 2008 (158) – (749) (907)
Foreign currency translation adjustments of foreign subsidiaries – – (12) (12)
Change in fair value of available-for-sale financial assets
Gains and losses from available-for-sale financial assets
– 4 – 4
transferred to income statement – (4) – (4)
Change in fair value of cash flow hedges
Ineffective portion of cash flow hedges
(6) – – (6)
transferred to income statement 101 – – 101
Income taxes (6) – – (6)
Balance at 31 December 2009 (69) – (761) (830)
Foreign currency translation adjustments of foreign subsidiaries – – (993) (993)
Purchase of minority interests – – (66) (66)
Change in fair value of available-for-sale financial assets – 2 – 2
Change in fair value of cash flow hedges
Fair value losses of cash flow hedges
(9) – – (9)
transferred to income statement 39 – – 39
Income taxes 1 – 270 271
Balance at 31 December 2010 (38) 2 (1,550) (1,586)
The hedging reserves comprise the changes in the fair value of hedging instruments which were
designated as cash flow hedges. Under the fair value reserves are reflected the changes in the fair
value of available-for-sale financial assets. Reserves arising from cumulative foreign currency
translation adjustments comprise the differences from the foreign currency translation of the
financial statements of subsidiaries and associated companies from the functional currency into
Swiss francs. On 31 December 2010, cumulative foreign currency translation losses at Fastweb
amounted to CHF 1,815 million (prior year: CHF 745 million).
32 Dividends
Distributable reserves are determined based on equity as reported in the statutory financial statements
of the parent company, Swisscom Ltd, and not on the equity as reported in the consolidated
financial statements. At 31 December 2010, Swisscom Ltd’s distributable reserves amounted to
CHF 5,086 million. The dividend is proposed by the Board of Directors and approved by the Annual
General Meeting of Shareholders. The dividend proposed for the 2010 financial year is not recorded
as a liability in these consolidated financial statements. Treasury shares are not entitled to a dividend.
Swisscom paid the following dividends in 2009 and 2010:
In CHF million, except where indicated 2010 2009
Number of registered shares eligible for dividend (in thousands of shares) 51.798 51.801
Ordinary dividend per share (in CHF) 20.00 19.00
Dividends paid 1,036 984
The Board of Directors proposes to the Annual Shareholders’ Meeting to be held on 20 April 2011
the payment of an ordinary dividend of CHF 21 per share in respect of the 2010 financial year thus
equating a total dividend distribution of CHF 1,088 million. The dividend payment is foreseen on
29 April 2011.
Consolidated financial statements 192 | 193
Notes to the consolidated financial statements