Shareholders' Letter

Development of value added per
employee in Switzerland in CHF thousand
400
300
200
100
0
296
2008
Added value calculation
Added value is equivalent to revenue less goods and services purchased, other operating expense,
and depreciation and amortisation. Personnel expense is presented as use of added value rather
than goods and services purchased. The bulk of added value is generated in Switzerland, with activities
abroad accounting for only around 3% of the Group’s added value from operations in the year
under review (2009: around 7%).
307 310
2009
2010
2010 2009
In CHF million Switzerland Abroad Total Switzerland Abroad Total
Added value
Net revenue 9,340 2,648 11,988 9,119 2,882 12,001
Capitalised self-constructed assets and other income (203) (101) (304) (250) (167) (417)
Goods and services purchased 1,670 995 2,665 1,629 1,019 2,648
Other operating expenses 1,691 819 2,510 1,671 838 2,509
Depreciation, amortisation and impairment losses 1,205 767 1,972 1,163 832 1,995
Indermediate inputs 4,363 2,480 6,843 4,213 2,522 6,735
Operating added value 4,977 168 5,145 4,906 360 5,266
Equity in net income of affiliated companies 28 43
Other financial result (104) (68)
Total added value 5,069 5,241
Allocation of added value
Employees (personnel cost) 2,184 336 2,520 2,209 368 2,577
Authorities (income taxes) 502 460
Shareholders (dividends) 1,044 1,039
External investors (net interest expense) 261 281
Company (retained earnings) 742 884
Total added value 5,069 5,241
In 2010, added value from operations amounted to around CHF 5.1 billion, 2.3% less than in 2009.
Added value in Switzerland increased by 1.4% to CHF 4,977 million. The lower added value from
activities abroad is primarily attributable to provisions made by Fastweb. Added value from operations
in Switzerland amounts to around 53% of net revenue.
A significant number of activities along the value chain in Switzerland are performed by
Swisscom’s 16,000 employees. In 2010 added value from operations amounted to CHF 310,000
per full-time position (2009: CHF 307,000). Personnel expense in relation to added value in Switzerland
decreased slightly by 1.1% to 43.9%.