Shareholders' Letter

Since going public in 1998 Swisscom has distributed a total of CHF 22.8 billion to shareholders:
CHF 10.8 billion in dividend payments, CHF 1.6 billion in capital reductions and CHF 10.4 billion
in share buybacks. Since the initial public offering Swisscom has paid out CHF 214 per share.
Together with the overall increase in share price of CHF 71 per share, this corresponds to an average
annual total return of 5.1%.
Analysts’ recommendations
Some 20 analysts regularly publish studies on Swisscom. At the end of 2010, 46% of the analysts
recommended a buy rating for the Swisscom share, 42% a hold rating and 12% a sell rating. The
average price target at 31 December 2010 according to the analysts’ estimates was CHF 422.
Indebtedness
Credit ratings and financing
With an A (stable) and A2 (stable) respectively, Swisscom enjoys good ratings with the Standard
& Poor’s and Moody’s rating agencies. Swisscom’s solid financial standing enabled unrestricted
access to money and capital markets also in 2010. As a result, Swisscom issued debenture bonds
and raised long-term bank loans and private placements totalling around CHF 2.2 billion, all of
which were used to pay back existing bank loans. At 31 December 2010 net debt amounted to
CHF 8.8 billion and had been reduced by CHF 0.3 billion during the reporting period. Around 90%
of financial liabilities have a term to maturity of more than one year. At 31 December 2010 financial
liabilities with a term of one year or less amounted to CHF 0.7 billion.
Ongoing dialogue with the capital market
Swisscom pursues an open and ongoing information policy vis-à-vis the general public and the
capital markets. It publishes comprehensive financial information on a quarterly basis. Swisscom
also meets investors regularly throughout the year, presents its financial results at analysts’ meetings
and road shows, attends expert conferences for financial analysts and investors, and keeps
its shareholders regularly informed about its business through press releases and shareholder
letters.