Slide 1: Analyst meeting Annual results 2002
Analyst meeting Annual results 2002 “rock-solid-return(s)” 26 March 2003, Zurich 1
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements ”This communication contains statements that constitute "forward-looking statements". In this communication, such forward-looking statements include, without limitation, statements relating to our financial condition, results of operations an
Slide 3: Agenda Analyst meeting, 26 March 2003
Agenda Analyst meeting, 26 March 2003 Starts Subject Speaker on Slide The Overview Jens Alder, CEO 4 Domestic wireline business Adrian Bult, • highlights 2002 CEO Swisscom 13 • the key questions & answers Fixnet Domestic wireless business Carsten Schloter, • highlights 2002 CEO Swisscom 22 • the key
Slide 4: The Overview
The Overview Jens Alder, CEO Swisscom 4
Slide 5: 2002 in review
2002 in review Key financials Key achievements in CHF mm 2002 change 1. leading telco in CH Net revenue 14,526 2.5% § Successfully defended strong market position § Launched several new products and price packages EBITDA 4,413 0.1% in wireline and wireless markets EBIT 1 2,408 7.7% § On track with o
Slide 6: Swisscom introduces new Return Policy to shareholders
Swisscom introduces new Return Policy to shareholders from “dividend policy” to “return policy” returning the full annual equity free cash paying approx. half of adjusted net flow (EFCF) to shareholders, through: income + opportunistic return of • dividends funds through share buy back • par value r
Slide 7: New Return Policy - reflects strategy
a New Return Policy - reflects strategy Strategy Implication Return policy 2002 (definition of EFCF) 1 + EBITDA + 4,413 - CAPEX - 1,222 Leading multi service Optimise cash flow +/- working cap. D + 2 telco in Switzerland from current business - tax (cash) - 537 - net interest - 78 - minorities - 304
Slide 8: New Return Policy - ties in strategic flexibility and capital structure
b New Return Policy - ties in considerations of strategic flexibility and capital structure 1. leading telco in CH: optimise cash from current business § Return Policy takes it from cash flow perspective. Current business cash flows are higher than profits mainly due to fact that depreciation charge
Slide 9: New Return Policy and financial year 2002: better yield than dividends
c New Return Policy and financial year 2002: offers better yield than dividends only can do Return policy 2002 Remarks EFCF available to + 1,182 shareholders in t+1 CHF 12/share compares to CHF 11 for 2001, and represents 60% of adjusted net income. Higher Proposed to AGM to Size: dividend also poss
Slide 10: New Return Policy - builds on strong outlook
d New Return Policy - builds on strong outlook Return Policy 2002 Outlook 2003 Remarks + EBITDA + 4,413 + 4.4 - CAPEX - 1,222 - 1.2 Taxes payable in 2003 are expected to be +/- working cap. D + 2 + positive substantially lower due to loss-carry- - tax (cash) - 537 - lower forward and timing effects.
Slide 11: Update on the quest for acquisitions
Update on the “quest for acquisitions” Criteria Explanation Rationale Focus on sustainable cash flow What is the uniqueness of sustainability generation and accretion the constellation? to group cash flows what makes Swisscom a better investor than a financial Potential synergies, and ability invest
Slide 12: In summary: Your bets when investing in Swisscom
In summary Your 3 “bets” when investing in Swisscom 1. leading telco in CH Swisscom is able to sustain strong annual equity free cash flows - through continued strong operational performance 2. intelligent investor Swisscom doesn’t have a long term strategic (scale) problem if it doesn’t acquire, an
Slide 13: Domestic wireline business
Domestic wireline business Adrian Bult, CEO Swisscom Fixnet 13
Slide 14: Highlights 2002
Highlights 2002 Key financials Fixnet Key achievements FX in CHF mm 2002 change § Stabilised overall market share after Net revenue 1 6,443 (2.2%) renumbering at 59% EBITDA 1,903 (4.3%) § Reduced FTE’s by 7%, costs by 1% and EBITDA margin 29.5% (2.3%) CAPEX by 2% while increasing EBIT 848 (6.7%) inv
Slide 15: Significant retail traffic reduction through renumbering and market reduction
Q1. Overall volume development? Significant retail traffic reduction through renumbering and market reduction Change in retail traffic volumes of FX+ES (in mm minutes) § Decline in local and DLD traffic – New renumbering introduced 25,178 - 10% in April 2002 - one off effect -2’067 (1,000mm) +661) -
Slide 16: Overall mobile impact on wireline revenues neutral
Q2. Fixed-to-Mobile substitution? Overall mobile impact on wireline revenues neutral Estimated impact of Mobile on FX + ES national retail traffic 1 National traffic volumes (in mm minutes) § Loss of ca. 1.5% access lines due 73 (7) to hard mobile substitution (largely (72) line cancellation) – Esti
Slide 17: Cablecom's recent Voice offer appears quite attractive
Q3. Voice over Cable? Cablecom’s recent Voice offer appears quite attractive as first line offer Strong growth of broadband in 2002 Comparison of Cablecom to FX offers 2 Registered broadband HH One Line Two Lines 197% 455 k Add-on to existing § -18% § -23% Other Cable Cable BB-offer 125 ISPs 1 Combi
Slide 18: ADSL expected to be cash flow positive from 2004/2005
Q4. ADSL business case? ADSL expected to be cash flow positive from 2004/2005 Background Business case characteristics § Recurrent ARPU/Subs1) (CHF/month): § Swiss market characterised by aggressive growth in broadband market. Swisscom – around CHF 49 on a standalone basis – around CHF 31 on a net b
Slide 19: Swisscom and regulation: general overview
Q5. Swisscom and regulation? A. General overview New regulatory obligations in 2002 Important legal proceedings in 2002 § USO ‘03-’07; price ceiling access/traffic § Cost-orientation of IC-charges § Numbering plan and local CPS § ADSL WS-pricing and cross subsidies § Lawful interception § Mobile ter
Slide 20: Swisscom's position on Swiss regulation
Q5. Swisscom and regulation? B. Where does Swiss regulation differ from the rest of Europe? Ex-post type of regulation instead of ex-ante regulation as in Europe No ULL in Switzerland Swiss regulator wanted to have ex-ante Situation Regulator wants to introduce all forms of regulation introduced. Sw
Slide 21: Outlook Swisscom Fixnet
Q6. Outlook Swisscom Fixnet? § Increasing regulatory pressure Key § Increasing mobile substitution Trends § Continued Broadband growth § Secure leading position in voice § Continued cost reductions: Strategy platforms and products § Continued broadband push § EBITDA-Margin at 30% Targets § Improved
Slide 22: Domestic wireless business
Domestic wireless business Carsten Schloter, CEO Swisscom Mobile 22
Slide 23: Key financials and achievements
Key financials and achievements Key financials Key achievements in CHF mm 2002 change § Grew revenues by 3.2% to CHF 4,1bln Total subscribers (mm) 3.6 6.9% while Swisscom Mobile market share ARPU (CHF/month) 86 -4.4% remained constant at 65% 1 Net revenue 4,112 3.2% § Increased EBITDA by 5.2% to alm
Slide 24: Operational development: ARPU
Q7. Operational development? ARPU development Comments § Market penetration in CH reached 77.5% at 180 Total Postpaid Prepaid YE 2002 154 160 § Market gross adds reduced to 1.6mm, of 140 130 126 which Swisscom Mobile achieved over 50% 121 CHF per month 120 105 § Swisscom Mobile’s successful retentio
Slide 25: Update on partnership with Vodafone
Q8. Update on partnership with Vodafone? § Enlarged operative co-operation and collaboration – active use of global purchasing agreements – complete integration into operative and financial benchmarks – extensive management and specialist training and development – governance through Supervisory Boa
Slide 26: UMTS roll out advancing faster than competition
Q9. Update on roll out UMTS / WLAN? Comments Investments § UMTS network rollout on track § CHF 113mm cumulative investment by end § Rollout based on an aggressive site of 2002 - license inclusive acquisition § CHF 350 mm further capital expenditure – Original license obligation of 20% planned until
Slide 27: Outlook Swisscom Mobile
Q10. Outlook Swisscom Mobile? Key § On-going pressure on voice ARPU, continued growth in Data trends § Emphasis on go to market for new products (e.g. MMS, Mobile Office solutions, WLAN, third parties B2B2C) § Key regulatory issues: mobile termination costs and NISV § Extend USP’s (Network Quality,
Slide 28: Other businesses
Other businesses Mike Shipton, CSO Swisscom 28
Slide 29: Key financials and achievements - debitel
Key financials and achievements - debitel Key financials - debitel Key achievements in CHF mm 2002 change § Robust performance Total subscribers (mm) 10.1 0.6% – 8%-revenue2 increase (driven by all 1 ARPU (€/month) 17 2.8% countries) 2 Net revenue 4,111 8.0% – further cost savings realised EBITDA 2
Slide 30: Swisscom and Debitel
Q 11: Swisscom and Debitel? 1999 - Swisscom acquires majority in 2003 - Swisscom holds majority in Debitel - Debitel - for strategic reasons as important financial stake Rationale: Implications (2): § acquire UMTS license in Germany § Swisscom has to treat Debitel as any other § turn Debitel into an
Slide 31: Key financials and achievements - segment Other
Key financials and achievements - segment Other Key financials - segment Other Key achievements in CHF mm 2002 change Swisscom IT Services: External revenue 833 12.3% § Completed PMI process with AGI § Successfully positioned IT Services brand of which Systems 406 (14.7%) in the Swiss IT Market of w
Slide 32: Impact of general economic development on business
Q12. How is the general economic development impacting your business? Overall economic environment Impact and outlook for Swisscom § Slow economic recovery with modest § Residential Market: Revenues in fixed- but robust GDP growth - small line and mobile more protected against improvement for 2003 a
Slide 33: Outlook Swisscom IT Services and Swisscom Systems
Q13. Outlook Swisscom IT Services and Swisscom Systems? Swisscom IT Services and Swisscom Systems § Decline in demand for network and telephony equipment § Delay of new investment in telecom and IT systems due to economic climate Key trends § Market growth below expectations mainly due to pricing pr
Slide 34: Options for product bundling
Q14. How do you look at options for product bundling? Residential: price bundles Corporate: solution bundles § Swisscom well positioned to provide § Corporate customers demand for bundles as market leader in fixed and integrated solutions including e.g. voice, mobile telephony but considers bundles
Slide 35: CAPEX profile
Q15. How does your CAPEX-profile look? CAPEX development Background Other Swisscom Mobile § 80% of CAPEX in the Fixnet and Mobile segment 1500 Swisscom Fixnet § Fixnet: CHF 585mm (-2% YOY) – CAPEX in new businesses and capacity (in CHF mm) 1000 322 245 extension represent 60-65% of total with 315 39
Slide 36: Group financials 2002
Group financials 2002 Ueli Dietiker, CFO Swisscom 36
Slide 37: Key figures and financial highlights
Key figures and financial highlights Key figures Financial highlights in CHF mm 2002 change § Revenue development inline with expectations Net revenue 14,526 2,5% § Solid EBITDA performance: CHF 4,4bln EBITDA 4,413 0.1% § EBIT grew by 7.7% mainly due to lower 1 depreciation and amortisation EBIT 2,4
Slide 38: External revenue development
External revenue development (in CHF mm) net revenue ´02 14,526 debitel Other 14,500 303 Corporate net revenue ´01 91 Mobile ES (16) 14,174 128 (121) 14,000 Fixnet (33) 13,500 +352 [+2.5%] 0 in CHF mm Fixnet Mobile ES debitel Other Corporate Net revenue 2001 4,921 3,127 1,486 3,808 742 90 14,174 200
Slide 39: Cost overview
Cost overview 2001 2002 (in CHF mm) Goods and services 4,959 purchased 4,513 2,593 Personnel expenses 2,461 Other operating 2,827 expenses 3,004 1,578 Depreciation 1,702 427 Amortisation 472 0,000 1,000 2,000 3,000 4,000 5,000 Compared to 2001, almost unchanged level of total OPEX 39
Slide 40: Group EBITDA development
Group EBITDA development (in CHF mm) 4,500 EBITDA ´01 Mobile ES EBITDA ´02 98 (46) debitel Other 4,413 4,409 4,400 (28) (25) Fixnet Corporate 4,300 (86) 91 +4 [+0.1%] 0 in CHF mm Fixnet Mobile ES debitel Other Corporate EBITDA 2001 1,989 1,876 114 187 136 107 4,409 2002 1,903 1,974 68 159 111 198 4,
Slide 41: Reported net income
Reported net income (in CHF mm) 2001 2002 EBIT excluding exceptional items 2,235 2,408 Exceptional items 1 3,275 (702) EBIT including exceptional items 5,510 1,706 Net financial result (355) (311) Income before income taxes, equity in net income of affiliated companies and minority interest 5,155 1,
Slide 42: Adjusted net income
Adjusted net income (in CHF mm) 2001 2002 Net income 4,964 824 Impairment of debitel goodwill 1,130 702 Gain on sale of real estate portfolios (568) Gain on partial sale of Swisscom Mobile (3,837) Tax effect on exceptional items, net (515) (207) Adjusted net income 1,174 1,319 Number of shares (in m
Slide 43: Reconciliation: loss under US GAAP from new impairment rule
Reconciliation: loss under US GAAP resulting from new rule on impairment accounting under IAS under US GAAP P+L impact (in CHF mm) Goodwill Goodwill Customer list delta US GAAP to IAS Balance at YE '01 2,085 2,648 174 Impairment because of new US GAAP standard (1,636) (1,636) Additions (28) 4 8 Amor
Slide 44: Group capital structure
Group capital structure (in CHF mm) 31.12.2001 31.12.2002 Short term debt 1,757 1,016 Long term debt 2,413 1,505 Interest bearing debt excl. finance lease 4,170 2,521 Long term net finance lease obligation 1,330 1,192 Less: financial assets from lease-and-leaseback transactions (1,295) (1,104) Less:
Slide 45: Effective distributable reserves increased
Q16. What’s the situation with your distributable reserves? Shareholders' non- distri- Share (in CHF mm) equity distributable butable capital Swisscom AG reserves reserves 31.12.2001 8,013 1,250 250 6,513 Dividend, PVR and SBB paid in 2002 (5,521) (654) (131) (4,736) Net income under Swiss GAAP 1,59
Slide 46: Pension fund: facts at YE 2002
Q17a. Pension fund: facts at YE 2002? comPlan The pension fund under IAS the pension fund of SCM Inflation-linked Unrecognized rises, PKB actuarial losses Other effects Inflation-linked Unrecognized rises, comPlan Early prior service Future retirements cost salary Balance increases sheet under-fundi
Slide 47: Pension fund: implications
Q17b. Pension fund: implications? § From the difference under IAS between the PV of funded obligations and the fair value of plan assets, legally only the under-funding of CHF 304mm determined by Swiss pension regime requires further financing measures § There are different ways to finance the under
Slide 48: Overall outlook
Q18. Overall outlook? Revenues¹ EBITDA¹ issues/remarks issues/remarks n Unified tariffs & avg. market n Cost control (incl. restructuring) share development Fixnet - n Local CPS as of 1.4.02 - follows at slower pace than revenue decline n F2M, ADSL n Stabilise margin as % n Data and VAS n Retention
Slide 49: Thank you for your attention! Questions & Answers
Thank you for your attention! (Other) Questions & Answers For further information, please contact: Swisscom - Investor Relations phone +41 31 342 2538 fax +41 31 342 6411 or visit our homepage: www.swisscom.com/ir 49
Slide 50: Analyst meeting Annual results 2002 back-up slides
Analyst meeting Annual results 2002 “back-up slides” handout at analyst meeting 26 March 2003, Zurich 1
Slide 51: Back-up slides contents
Subject Page 1. Swisscom Fixnet 3 2. Swisscom Mobile 12 3. debitel 16 4. Other 23 5. Group Financials 26 2
Slide 52: 1. Swisscom Fixnet
swirScPry, 1. Swisscom Fixnet
Slide 53: Stabilized decline in Fixnet revenues
Stabilized decline in Fixnet revenues 6,588 - 2% 6,443 Access § Price increase ISDN light 1,441 1,473 +2 % § Hard mobile substitution FX, incl. intersegment revenues § Increased F2M traffic Traffic 1,435 -6 % 1,354 § Introduction renumbering plan § Market share losses, surf effect 1 and mobile subs.
Slide 54: Penetration still very high, access substitution due to mobile
Penetration still very high, but access substitution due to mobile starting to become visible Access Lines (Voice) Comments § Overall penetration still at over 98% 4,097 - 0.6% 4,074 households ISDN+ § Loss of ca. 1.5% access lines due to hard 857 + 6.3% 911 Primary mobile substitution 1 § Estimated
Slide 55: Stabilized traffic market shares
Stabilized traffic market shares Overall market share stabilized Substantial additional win-backs achieved, at 59% 1 net-churn reduced Number of winbacks/quarter (in ‘000) Market Share (%) of Swisscom Fixnet Total 103 209 80 77 Local 74 DLD 67 F2M 47 48 Ø 52 46 Int. Overall Ø26 67 65 62 60 60 60 Ø 2
Slide 56: Improved service to the customer
Improved Service to the customer Substantial improvements in Customer Care 2001 2002 § First resolution rate – fulfillment N.A. 90% – assurance 60% 80% § Response time high 90 secs1) <20 sec's for 80% value customers Customer satisfaction high, stable and comparable to competition § Trust, brand and
Slide 57: Tight OPEX control
Tight OPEX control: OPEX reduced, despite increased restructuring costs Top changes Description (in CHF mm) - 1.3% 5000 4,599 4,540 Personnel: § Headcount reduction (>600 FTE’s) 4000 +6 % § Increased restructuring charges (CHF 1,751 1,668 50mm higher than in 2001) 3000 733 700 Termination to § Reduc
Slide 58: Reduced CAPEX while growing in new businesses
Reduced CAPEX while growing in new businesses CAPEX Investing in the future (in CHF mm) § ADSL equipment 597 - 2% 585 § SDH equipment New business 336 + 9% + new capacity 367 § High capacity bandwidth for Existing metro services 261 -16% installations 218 2001 2002 § Optical cable, transport network
Slide 59: Strong ADSL growth
Strong ADSL growth, surpassed the inflection point of maximum cash exposure ADSL growing faster Aggressive growth last months of 2002 to than cable exceed 215 k contracts signed 1 Market share of registered broadband HH Number of new ADSL contracts/month (in ‘000) Total 40 k 215 k 100% = 153K + 197%
Slide 60: Bluewin secured leadership
Bluewin secured leadership Despite aggressive broadband growth sustained narrowband leadership Narrowband users Registered broadband HH 197% 455k 1,5mm 7% 1,6mm Other Cable 125 ISPs 1 Other 53% 53% 135 Cablecom 1 ISP’s 153k 101% Other ADSL 86 53 ISP’s Bluewin 47% 47% 15 67 109 Bluewin 18 500% 2001 2
Slide 61: 2. Swisscom Mobile
swirScPry, 2. Swisscom Mobile
Slide 62: Strong operational performance 2002
Strong operational performance 2002 Subscriber development Comments § Market penetration in Switzerland reaches Postpaid Prepaid 4000 77.5% at year-end 3,605 3,373 3500 § Market gross adds reduced to 1.6mm, of which 3,024 3000 1,307 Swisscom Mobile achieves over 50% 1,221 (in thousand) 2500 2,200 1,
Slide 63: High management attention to improve cost efficiencies
High management attention to improve cost efficiencies Breakdown of costs Comments (in CHF mm) 2001 2002 § Network and interconnection cost stable 700 626 627 616 595 although traffic increased 600 § SAC at CHF 212mm reduced by 15%, 500 SRC doubled to CHF 141mm 400 353 324 325 321 300 269 § Total CO
Slide 64: Strict customer focus to provide superior quality
Strict customer focus to provide superior quality 0 2 4 6 8 10 Swisscom Mobile: 8.35 § USP network quality: Best competitor: 7.60 – We offer to our customers all state-of-the-art technologies on mobile communication such as GSM, GPRS, UMTS, WLAN at the best coverage within Switzerland and abroad. 0
Slide 65: 3. debitel
swirScPry, 3. debitel
Slide 66: debitel operational performance 2002
debitel operational performance 2002 Germany International Group 12'000'000 § Customer growth despite deactivation of 10'000'000 Subscriber 8'000'000 sleeping customers (Germany: 1.4mm, 6'000'000 international: 0.3mm) and saturated 4'000'000 markets 2'000'000 0 § International contribution increased
Slide 67: Strengthening of distribution power
Strengthening of distribution power through attractive distribution program § Extension of the exclusive distribution contract with EP: for five more years (Germany); EP: took a 2%-stake in debitel; 2% retention programme open for 93% debitel further sales partners stake shares § Co-operation with a
Slide 68: Current status - ESP implementation
3G Current status - ESP implementation § Implementation of ESP model in Germany on track – First company to offer content billing – Specified access to network operators' infrastructure ensured by ESP-contracts – Advanced product and service development of Jamba! – Technical ability of hosting platf
Slide 69: ESP model - general conditions for further implementation
3G ESP model - general conditions for further implementation Secure debitel's positioning regarding the German regulatory framework for UMTS - debitel is actively involved to review German telecommunication law § Ability of billing various services and contents - implementation of new billing system
Slide 70: Product / service development
Product / service development § Extension of debitel mobile service offerings: – Multi-Media Messaging Services (MMS) – in addition to own portal (Jamba!) access to network operator portals such as i-Mode, Vodafone Life! – launch of "partner card" (2 SIM-cards, 1 monthly fee) across different networ
Slide 71: Strategic direction 2003
Strategic direction 2003 § Further consolidation of the telecommunication market, especially in Germany - will be closely examined by debitel § Additional expansion to be evaluated § Target setting 2003 and onwards: Ê Ongoing transformation of the service provider model into the enhanced service pro
Slide 72: 4. Other
swirScPry, 4. Other
Slide 73: Operational performance 2002
Operational performance 2002 Swisscom Systems Swisscom IT Services § Operational performance § Completed PMI process below assumed – approx. 3,000 PBX sold and 90,000 rent costs and maintain contracts § Market growth below expectations generated high price pressure § Market development – Swisscom Sy
Slide 74: Product-/service development
Product-/service development Swisscom Systems Swisscom IT Services § Successfully introduced IP-based systems § Redefined existing solution sets to meet and system extensions of major suppliers market requirements and demand (Siemens, Nortel, Ascom) to serve those § Defined portfolio across 3 key tr
Slide 75: 5. Group Financials
swirScPry, 5. Group Financials
Slide 76: Solid operating performance
Solid operating performance ... EBITDA and margins Per employee ratios 1 35% 4,950 31.1% 1000 250 30.4% 28.7% 212 216 4,750 30% 900 225 in CHF thousand 196 in CHF thousand in CHF mm 4,550 800 200 4,409 4,413 25% 710 682 665 4,350 700 175 20% 4,150 600 150 4,034 15% 500 125 3,950 3,750 10% 400 100 20
Slide 77: Ongoing healthy balance sheet
... and ongoing healthy balance sheet Net debt and net debt/EBITDA Book leverage and equity ratio 2,891 3000 1.50 70% 49.6% 55.0% 60% 43.0% 38.9% 2000 0.72 1.00 50% 40.0% 642 40% 33.7% 1000 in CHF mm 0.50 30% 25.0% 0.15 0 20% 8.8% 2000 2001 2002 0.00 10% 10.0% -1000 0% -0.66 -0.50 -10% 2000 2001 200
Slide 78: Headcount development
Headcount development 21,777 1 21,946 20,604 21,328 20,470 20000 19,254 1 17,459 17,785 17,171 15000 10000 5000 0 1998 1999 2000 2001 2002 Swisscom incl. debitel Swisscom excl. debitel * All numbers exclude employees of WorkLink 1 The number of FTE employees at the year end 2001 includes 493 employe
Slide 79: Cost breakdown
Cost breakdown Goods and services purchased Other operating expenses (in CHF mm) 1,500 2,500 2001 2002 2001 2002 +164 (18) 1,250 2,000 1,000 1,500 +17 +267 (67) 0,750 1,000 (37) 0,500 (55) 0,500 (2) 0,250 0,000 Equipment Traffic fees Network Other 0,000 purchased fees for Rent, repairs Advertising C
Slide 80: Impairment of debitel goodwill, under IAS
Impairment of debitel goodwill, under IAS (in CHF mm) Goodwill Book value of debitel as per 31.12.2001, € 18 2,084 Amortisation of goodwill (265) Impairment of goodwill (702) Other adjustments, net (64) Book value of debitel [93%] as per 31.12.2002, € 10 1,053 Future amortisation p.a. 156 31
Slide 81: Drivers of financial result
Drivers of financial result Financial expense 2002 Financial income 2002 (in CHF mm) (in CHF mm) Interest on debt and finance lease 246 Interest 168 PV adjustment on accrued liabilities 25 Dividends 8 Impairment charge on Infonet 111 Gain on CB tax lease transactions 28 Impairment charge on Swiss 41
Slide 82: Overview of income tax payments
Overview of income tax payments 1998 1999 2000 2001 2002 P+L Statement Current income tax expense 409 317 439 499 123 Deferred income tax (benefit) expense (90) 218 201 (514) 238 Total income tax expense 319 535 640 (15) 361 CF Statement Income taxes paid 26 135 398 678 537 Balance Sheet Current tax
Slide 83: Tax calculation 2002
Tax calculation 2002 (in CHF m m ) EBT 1 Incom e tax expense Tax rate current deferred total reported num bers 1,395 123 238 361 25.9% Result of the transition from a parent company to a holding company, net (115) (115) Impairment of debitel goodw ill 702 127 80 207 adjusted num bers 2,097 240 213 4
Slide 84: Group cash flow statement (I)
Group cash flow statement (I) (in CHF mm) 2001 2002 EBITDA 4,409 4,413 Change in working capital, net 275 2 Payments for early retirements (225) (43) Special contribution to pension fund (440) Net interests 48 (78) Income taxes paid (678) (537) Gain from cross-border tax lease transactions 28 Net ca
Slide 85: Group cash flow statement (II)
Group cash flow statement (II) (in CHF mm) 2001 2002 Net cash provided by operating activities 3,389 3,785 CAPEX (1,234) (1,222) Proceeds from sale of real estate 1,734 Proceeds from partial sale of Swisscom Mobile 4,282 Proceeds from sale of affiliated companies 73 42 Investments, net (894) (92) Pu
Slide 86: CAPEX analysis
CAPEX analysis Group CAPEX development Capital expenditures 2002 3000 13.3% 15% 12.6% 1400 1,222 14% 2500 13% 1,154 1200 12.0% 12.0% 10.3% in CHF mm 1000 11.1% 12% in CHF mm 2000 8.7% 8.4% 10% 800 1,468 1,450 585 1500 1,305 8% 10% 1,234 1,222 600 8.4% 392 400 1000 5% 8% 200 500 3% 0 6% totalgroup Fi
Slide 87: Change of net debts
Change of net debts Net cash provided by operating activities 3,785 (1,222) Net cash CAPEX 31.12.2001 2,899 Dividends paid Dividends (728) paid to (4,264) minorities Share (304) (in CHF mm) buyback (530) Capital (278) (642) Reduction Other Net debt 30.12.2002 38