Shareholders' Letter

Due to the early termination of cross-border lease agreements, financial assets of around CHF 800
million were sold and financial liabilities of around CHF 1.1 billion were repaid in 2009. Other cash
flows from financing activities in 2009 also include payments totalling CHF 258 million in respect
of provisions related to the early termination of cross-border lease agreements. The issuance and
repayment of financial liabilities resulted in a net cash outflow in 2010 of CHF 544 million. Dividend
payments to equity holders of Swisscom Ltd in 2010 amounted to CHF 1,036 million (prior
year: CHF 984 million). In 2010, a takeover offer of EUR 18 per share was made to the minority
shareholders of Fastweb. An additional stake in Fastweb of 12.9% was acquired in 2010 for a purchase
price of EUR 185 million (CHF 246 million). Buyout proceedings for the remaining 5.1% Fastweb
stake were initiated. Acquisition of the outstanding minority shares is expected to be completed
in the first quarter of 2011.
Net asset position
Balance sheet
In CHF million 31.12.2010 31.12.2009 Change
Assets
Cash and cash equivalents and current financial assets 605 710 –14.8%
Trade and other receivables 2,742 2,926 –6.3%
Property, plant and equipment 7,899 8,176 –3.4%
Goodwill 6,261 6,664 –6.0%
Other intangible assets 2,023 2,358 –14.2%
Associated companies and non-current financial assets 646 652 –0.9%
Income tax assets 101 105 –3.8%
Defined benefit assets 263 38 592.1%
Other current and non-current assets 790 553 42.9%
Total assets 21,067 22,144 –4.9%
Liabilities and equity
Financial liabilities 9,772 10,219 –4.4%
Trade and other payables 2,215 2,314 –4.3%
Defined benefit obligations 341 351 –2.8%
Provisions 862 877 –1.7%
Income tax liabilities 588 742 –20.8%
Other current and non-current liabilities 1,005 1,031 –2.5%
Total liabilities 14,783 15,534 –4.8%
Share of equity attributable to equity holders of Swisscom Ltd 6,256 6,291 –0.6%
Share of equity attributable to minority interests 28 319 –91.2%
Total equity 6,284 6,610 –4.9%
Total liabilities and equity 21,067 22,144 –4.9%
Equity ratio at end of year 29.8% 29.9%
The decrease in total assets of 4.9% to CHF 21,067 million is primarily attributable to the strength
of the Swiss franc. Compared to the end of 2009, the CHF/EUR exchange rate fell by 15.8% from
1.484 to 1.25. As a result of fluctuations in the exchange rates, currency losses after taxes of CHF
752 million were recognised in other comprehensive income in 2010. At 31 December, cumulative
unrealised currency translation losses from foreign Group companies recognised in equity
Management Commentary 62 | 63
Group financial position