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Statement of added value

Operating added value is equivalent to net revenue less goods and services purchased, other operating expenses and depreciation and amortisation. Personnel expense is treated as use of added value rather than as an intermediate input. Swisscom generates the bulk of its added value in Switzerland. In the year under review, international activities accounted for 5% of the Group’s added value from operations (prior year: 6%).

  2013   2012
In CHF million   Switzerland   Abroad   Total   Switzerland   Abroad   Total
                         
Added value                        
Net revenue   9,358   2,076   11,434   9,268   2,116   11,384
Capitalised self-constructed assets and other income   (229)   (159)   (388)   (245)   (128)   (373)
Goods and services purchased   1,712   626   2,338   1,678   721   2,399
Other operating expenses 1   1,736   723   2,459   1,750   635   2,385
Depreciation 2   1,281   607   1,888   1,222   577   1,799
Intermediate inputs   4,500   1,797   6,297   4,405   1,805   6,210
Operating added value   4,858   279   5,137   4,863   311   5,174
Other non-operating result 3           (83)           (158)
Total added value           5,054           5,016
           
                         
Allocation of added value                        
Employees 4   2,460   266   2,726   2,396   269   2,665
Authorities 5   322   (3)   319   315   33   348
Shareholders (dividends)           1,154           1,154
External investors (net interest expense)           251           249
Company (retained earnings) 6           604           600
Total added value           5,054           5,016
1 Other operating expense: excluding taxes on capital and other taxes not based on income.
2 Depreciation and amortisation: excluding depreciation and amortisation of acquisition-related assets such as brands or customer relations.
3 Other non-operating result: financial result excluding net interest expense, share of profits of investments in associates, and depreciation and amortisation of acquisition-related intangible assets.
4 Employees: employer contributions are reported as pension cost, rather than as expenses according to IFRS.
5 Public sector: current income taxes, taxes on capital and other taxes not based on income.
6 Companies: including changes in deferred income taxes and defined benefit obligations.

Operating added value amounted to CHF 5,137 million in 2013, a drop of 0.7% compared with the previous year. Some 95% of total operating added value was generated in Switzerland. Added value from international operations declined by CHF 32 million to CHF 279 million on account of higher depreciation and amortisation costs.

Although operating added value in Switzerland was virtually unchanged year-on-year at CHF 4,858 million, added value from operations per FTE was 3.0% lower at CHF 287,000 (prior year: CHF 296,000).