Alternative performance measures
Swisscom uses key indicators defined in the IFRS Accounting Standards (IFRS) throughout its entire financial reporting, as well as selected alternative performance measures (APMs). These alternative measures provide useful information on the Group’s financial situation and are used for financial management and control purposes. As these measures are not defined under IFRS, the calculation may differ from the published APMs of other companies. For this reason, comparability across companies may be limited.
The key alternative performance indicators used by Swisscom in its 2023 annual financial reporting are defined as follows:
| Key performance indicator | Swisscom definition | |
|---|---|---|
| Adjustments | Significant items that, due to their exceptional nature, cannot be considered part of the Swisscom Group’s ongoing performance, such as termination benefits and significant positions in connection with legal cases or other non-recurring items. In addition, the application of changes in the IFRS accounting principles and standards can have an impact on comparability with the previous year if these principles are not applied retrospectively. The same definitions and calculation bases are applied for the adjustments in the financial year and in the previous year. In the financial reporting, the change in the adjusted operating result before depreciation and amortisation (EBITDA adjusted) is commented ‘on a comparable basis’. | |
| At constant exchange rates | Key performance measures considering currency effects (figures for 2023 are translated at the 2022 exchange rate to calculate the currency effect). | |
| Operating income before depreciation and amortisation (EBITDA) | Operating income before depreciation, amortisation and impairment losses of property, intangible assets and right-of-use assets, financial expense and financial income, result of equity-accounted investees and income tax expense. | |
| Operating income (EBIT) | Operating income before financial expense and financial income, result of equity-accounted investees and income tax expense. | |
| Capital expenditure | Purchase of property, plant and equipment and intangible assets and payments for indefeasible rights of use (IRU) which are classified as leases under IFRS 16. In general, IRUs are paid in full at the beginning of use. | |
| Operating free cash flow proxy | Operating income before depreciation and amortisation (EBITDA) less investments in property, plant and equipment and intangible assets as well as payments for network access rights (IRU) and leasing expenses. Leasing expenses include interest expenses on leasing liabilities and depreciation of rights of use excluding depreciation of rights of use for network access (IRU) as well as impairments of rights of use. | |
| Free cash flow | Cash flows from operating and investing activities excl. cash flows from the acquisition and sale of subsidiaries as well as income and expenses for equity-accounted investments and other financial assets. | |
| Net debt | Financial liabilities and lease liabilities less cash and cash equivalents, listed debt instruments and derivative financial instruments. |