Shareholders' Letter

31.12.2009
In CHF million 31.12.2010 restated
Fixed interest-bearing financial liabilities 6,141 6,404
Variable interest-bearing financial liabilities 3,247 3,528
Total interest-bearing financial liabilities 9,388 9,932
Fixed interest-bearing financial assets (331) (300)
Variable interest-bearing financial assets (633) (734)
Total interest-bearing financial assets (964) (1,034)
Total interest-bearing financial assets and liabilities, net 8,424 8,898
Variable interest-bearing 2,614 2,794
Fixed through interest rate swaps (150) (1,148)
Variable through interest rate swaps 59 113
Variable interest-bearing, net 2,523 1,759
Fixed interest-bearing 5,810 6,104
Fixed through interest rate swaps 150 1,148
Variable through interest rate swaps (59) (113)
Fixed interest-bearing, net 5,901 7,139
Total interest-bearing financial assets and liabilities, net 8,424 8,898
Sensitivity analysis
The following sensitivity analysis shows the effects on the income statement and equity if CHF
interest rates move by 100 base points.
Income statement Equity
Increase Decrease Increase Decrease
In CHF million 100 base points 100 base points 100 base points 100 base points
31 December 2010
Variable financing (26) 26 – –
Interest rate swaps 1 (1) 7 (8)
Cash flow sensitivity, net (25) 25 7 (8)
31 December 2009
Variable financing (28) 28 – –
Interest rate swaps 10 (10) 20 (19)
Cash flow sensitivity, net (18) 18 20 (19)
Credit risks
Credit risks from operating activities
Swisscom is exposed to credit risks arising from its operating activities. Swisscom has no significant
concentrations of credit risk. The Group has policies in place to ensure that products and services
are only sold to creditworthy customers. Furthermore, outstanding accounts are continually
monitored as part of its operating activities. Credit risks are taken into account through individual
and general allowances. In addition, the danger of risk concentrations is minimised by the large
number of customers. As regards financial assets which are neither impaired nor in default as of
the balance sheet date, there are no indications that the debtors will not be capable of meeting
their payment obligations. Further information on financial assets is set out in Notes 17, 18 and 19.
Credit risks from financial transactions
Swisscom is exposed to the risk of counterparty default through the use of derivative financial
instruments and financial investments. In business rules governing derivative financial instruments
and financial investments, requirements to be fulfilled by counterparties are defined. Furthermore,
individual limits by counterparty have been set. These limits and counterparty credit
assessments are reviewed regularly. Swisscom signs netting agreements issued by ISDA (Interna-