Group structure and organisation


Group structure and organisation

Management structure

Swisscom has merged the corporate customer activities of its Corporate Business, Network & IT and ­Swisscom IT Services divisions so it is able to provide business customers with one-stop offerings and speed up the delivery of cloud-based solutions. Since 1 January 2014, all corporate customers have been served by the new Enterprise Customers division, making it one of the biggest integrated ICT providers for large companies in Switzerland. The IT, Network & Innovation division is now responsible for the operation of all IT systems, including the IT platforms previously managed by ­Swisscom IT Services, and for the development and production of standardised IT and network services for the entire ­Swisscom Group. ­Swisscom IT Services will be integrated into ­Swisscom Switzerland, which will result in a simplified Group structure and shorter decision-making paths.

The Group organisation is based on the following management structure: the Board of Directors of ­Swisscom Ltd is responsible for overall management and for determining the Group’s strategic, organisational and budgetary principles. It delegates day-to-day business management to the CEO of ­Swisscom Ltd, Urs Schaeppi. The heads of the business divisions Residential Customers, Small and Medium-Sized Enterprises, Enterprise Customers and IT, Network & Innovation, along with the heads of the Group divisions, report directly to the CEO of ­Swisscom Ltd. ­Swisscom’s Italian subsidiary, ­Fastweb, is managed via the Board of Directors chaired by ­Swisscom’s CEO.


Group structure

The holding company ­Swisscom Ltd is responsible for overall management as well as the strategic and financial management of the ­Swisscom Group. By law, the Swiss Confederation must hold the majority of shares in ­Swisscom Ltd. At 31 December 2014, the Confederation held 51.0% of the shares in ­Swisscom Ltd.

At 31 December 2014, 28 Swiss subsidiaries (prior year: 27) and 32 foreign subsidiaries (prior year: 33)were fully consolidated in ­Swisscom’s consolidated financial statements, while 7 associates (prior year: 7) were accounted for according to the equity method. ­Swisscom also holds various non-­controlling interests in growth companies active in the IT, communications and entertainment ­markets. Swisscom Ltd mainly holds direct shareholdings in ­Swisscom (Switzerland) Ltd, ­Swisscom Broadcast Ltd and ­Swisscom Directories Ltd. Fastweb S.p.A. (Fastweb) is held indirectly via ­Swisscom (Switzerland) Ltd and intermediate companies in Belgium and Italy. ­Swisscom Re Ltd in Liechtenstein is the Group’s own reinsurance company.

In September 2014, ­Swisscom acquired PubliGroupe Ltd for a purchase price of CHF 474 million. PubliGroupe Ltd mainly operates in the Swiss directory market. Prior to the takeover, it held half of the Local Group (Swisscom Directories Ltd, LTV Yellow Pages Ltd and Ltd), with ­Swisscom holding the other half. The main objective behind the acquisition of PubliGroupe is to gain full control over the Local Group and to develop it further. Following the takeover, LTV Yellow Pages Ltd and Ltd were merged with ­Swisscom Directories Ltd. ­Swisscom and Tamedia now intend to merge their directories business. The planned partnership between ­Swisscom and Tamedia is subject to the approval of the Competition Commission. ­Swisscom will hold 69% of the joint subsidiary and fully consolidate the company. PubliGroupe holds other interests in media companies and providers of media services. ­Swisscom is planning to sell the interests in the media companies and will evaluate all options for the other interests.

In January 2015, ­Swisscom acquired Veltigroup, thus expanding its ICT portfolio for business ­customers and its presence in western Switzerland. Veltigroup is domiciled in Lausanne and is a leading ICT service provider in western Switzerland. Veltigroup has around 480 employees in ­Switzerland and offers companies a comprehensive ICT range, from infrastructure to end-client services and solutions.

Segment reporting

For financial reporting purposes, the business divisions of ­Swisscom are allocated to individual segments based on the management structure. For practical reasons, segment reporting has not been changed for the 2014 financial year. Consequently, as in the past, the 2014 consolidated financial statements refer to the segments “Residential Customers”, “Small and Medium-Sized Enterprises”, “Corporate Business”, “Wholesale” and “Network & IT”, which are grouped together as “Swisscom Switzerland”. ­Swisscom IT Services is accounted for under “Other Operating Segments”. Segment reporting will be adjusted in line with the management structure from 2015. It will comprise the following: ­Swisscom Switzerland, Fastweb and Other Operating Segments. ­Swisscom Switzerland covers the segments Residential Customers, Small and Medium-Sized Enterprises, Enterprise Customers, Wholesale and IT, Network & Innovation. Group Headquarters, which primarily includes the Group divisions as well as the employment company Worklink AG, will continue to be reported separately.

Structure of 2015 segment reporting