Management structure in the 2013 financial year
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 Swisscom Ltd, who, together with the Heads of the Group divisions Group Business Steering, Group Strategy & Innovation and Group Human Resources as well as the CEO of Swisscom IT Services and the Head of Swisscom Switzerland, make up the Group Executive Board. Swisscom’s financial reporting focuses on three operating divisions: Swisscom Switzerland, Fastweb and Other operating segments. Swisscom Switzerland is subdivided into the Residential Customers, Small and Medium-Sized Enterprises, Corporate Business, Wholesale and Network & IT operating segments. Swisscom Switzerland is the contact partner for telecoms and data services in Switzerland and Fastweb in Italy. Swisscom IT Services supports corporate customers in all IT-related matters.
Swisscom Ltd comprises the following five Group divisions: Group Business Steering, Group Strategy & Innovation, Group Communications & Responsibility, Group Human Resources and Group Participation Management. These together with the subsidiaries make up the Swisscom Group. The shares of Swisscom Ltd are listed on the SIX Swiss Exchange in Zurich and are also traded over the counter (OTC) in the form of American Depositary Receipts (ADR) Level 1. As at 31 December 2013, the Swiss Confederation as majority shareholder held 51.2% of the voting rights and issued capital.
As at 31 December 2013, 27 Swiss subsidiaries (prior year: 22) and 33 foreign subsidiaries (prior year: 32) are fully consolidated in Swisscom’s consolidated financial statements. In addition, 7 associates (prior year: 9) are accounted for according to the equity method.
In February 2013, Hospitality Services acquired the business operations of Deuromedia, a global provider of IP-based infotainment solutions for the hospitality market. At the end of March 2013, Datasport AG acquired 100% of the shares in Abavent GmbH, a German provider of services for sport events. In April 2013, Swisscom IT Services assumed control of the Entris Banking business platform and also acquired Entris Integrator Ltd. The business platform of Entris Integrator Ltd is used by banks to process their banking transactions, from payment transactions and credit business to securities trading and e-banking. Following the takeover, Swisscom IT Services changed the name of Entris Integrator Ltd to Swisscom Banking Provider Ltd. In addition, in June 2013, Swisscom IT Services took over Entris Operations AG, which specialises in the processing of payment transactions and securities trading for around 50 banks. After the takeover, Entris Operations AG was merged with Swisscom Banking Provider Ltd. In April 2013, Swisscom increased its stake in CT Cinetrade AG (Cinetrade) from 49% to 75%. Cinetrade offer TV-services, Pay-TV, broadcast of sport events and Video-on-Demand (VOD). Cinetrade also operates one of Switzerland’s leading cinema chains. In December 2013, Swisscom Switzerland also purchased a 67% stake in DL-Groupe GMG AG, a provider of IP-based managed unified communication and collaboration services.
Swisscom Ltd holds direct shareholdings in Swisscom (Switzerland) Ltd, Swisscom IT Services Ltd, Swisscom Broadcast Ltd and Swisscom Real Estate Ltd. Fastweb S.p.A. (Fastweb) is held indirectly via Swisscom (Switzerland) Ltd and intermediate companies in Belgium and Italy. Group Related Businesses (formerly Swisscom Participations) is not a legal entity but is responsible for managing a portfolio of small and medium-sized enterprises. Swisscom and PubliGroupe have reciprocal interests of 49% each in LTV Yellow Pages Ltd and Swisscom Directories Ltd. Swisscom Re AG in Liechtenstein is the Group’s own reinsurance company.