Shareholders' Letter

37 Related parties
Majority shareholder
Pursuant to the Swiss Federal Telecommunication Enterprises Act (“Telekommunikationsunternehmungsgesetz,
TUG”), the Swiss Confederation (“the Confederation”) is obligated to hold a
majority of the share capital and voting rights of Swisscom. On 31 December 2010, the Confederation
as majority shareholder held 56.9% of the issued shares of Swisscom Ltd. Any reduction of
the Confederation’s holding below a majority would require a change in law which would need to
be voted upon the Federal Assembly, which in certain circumstances may also be subject to a referendum
by Swiss voters. As the majority shareholder, the Confederation has the power to control
any decisions taken at general meetings including the approval of dividend distributions and the
election of the members of the Board of Directors. Swisscom supplies telecommunication services
to and procures services from the Confederation, the majority shareholder in Swisscom. The Confederation
comprises the various departments and administrative bodies of the Confederation,
governmental agencies and other companies controlled by the Confederation (primarily the Post,
Swiss Federal Railways, RUAG, and Skyguide) and the Swiss Broadcasting Corporation, SRG-SSR. All
transactions are conducted on the basis of normal relationships with customers and suppliers and
on conditions applicable to unrelated third parties. In addition, financing transactions were
entered into with the Swiss Post on normal commercial terms.
Associated companies
Services provided to/from associated companies are based upon market prices. The associated
companies are listed in Note 41.
Minority interests
Publigroup and Swisscom Directories are the main related parties amongst minority shareholders.
Services provided to/from these related parties are based upon market prices.
Post-employment benefits funds
Transactions between Swisscom and the various pension funds are detailed in Note 10.
Transactions and balances
Transactions and year-end balances with related parties in 2009 and 2010 are as follows:
In CHF million Income Expense Receivables Liabilities
Confederation 371 149 198 723
Associated companies 67 163 8 12
Other minority shareholders 28 14 2 2
Total in 2010 / balance at 31 December 2010 466 326 208 737
In CHF million Income Expense Receivables Liabilities
Confederation 470 166 238 271
Associated companies 168 197 43 12
Other minority shareholders 20 3 2 –
Total in 2009 / balance at 31 December 2009 658 366 283 283