General information and changes in accounting policies

General disclosures

The Swisscom Group (hereinafter referred to as Swisscom) provides telecommunications services. It operates mainly in Switzerland and Italy. The consolidated financial statements for the year ended 31 December 2025 comprise Swisscom Ltd, as the holding company, and its subsidiaries. Swisscom Ltd is a public limited company with special status under Swiss law and has its registered office in Ittigen (Berne). Its address is: Swisscom Ltd, Alte Tiefenaustrasse 6, 3048 Worblaufen. Swisscom is listed on the SIX Swiss Exchange. The number of issued shares is unchanged from the prior year and totals 51,801,943. The shares have a nominal value of CHF 1 and are fully paid-up. Each share entitles the holder to one vote. The majority shareholder of Swisscom Ltd remains, as in the prior year, the Swiss Confederation (’the Confederation’). The Confederation is obligated by current law to hold the majority of the capital and voting rights. The Board of Directors of Swisscom approved the issuance of these consolidated financial statements on 11 February 2026. No material events after the reporting date have occurred to date. The consolidated financial statements are subject to approval by the shareholders of Swisscom Ltd at its Annual General Meeting to be held on 25 March 2026.

Acquisition of Vodafone Italia

Swisscom acquired Vodafone Italia at the end of 2024. In the consolidated financial statements as at 31 December 2024, the business combination was provisionally recognised, since not all the information required to determine the fair values of the acquired assets and liabilities was available when Swisscom’s consolidated financial statements were prepared. The purchase price allocation was finalised as at 31 December 2025. Following the acquisition of Vodafone Italia, Swisscom changed its segment reporting and goodwill was reallocated accordingly. See Notes 1.1, 3.4 and 5.3.

Basis of preparation

The consolidated financial statements of Swisscom have been prepared in accordance with the IFRS Accounting Standards, and in compliance with the provisions of Swiss law. The reporting period covers twelve months. The consolidated financial statements are presented in Swiss francs (CHF), which is the functional currency of Swisscom Ltd. Unless otherwise noted, all amounts are stated in millions of Swiss francs. The consolidated financial statements have been prepared on a historical cost basis, except where a standard or interpretation requires a different measurement basis for specific items, as disclosed in the related accounting policies. Material accounting policies relevant for understanding the consolidated financial statements are described in the respective notes to the financial statements.

Significant judgements, estimates and assumptions in applying the accounting policies

The preparation of consolidated financial statements is dependent upon assumptions and estimates being made in applying the accounting policies, for which management can exercise a certain degree of judgement. In particular, this concerns the following positions:

New and amended IFRS Accounting Standards and Interpretations

For the first time, Swisscom applied the amendments to IAS 21 (’The Effects of Changes in Foreign Exchange Rates’: lack of exchangeability), which are effective for annual periods beginning on or after 1 January 2025. These amendments had no material impact on the results or financial position of Swisscom. Further information regarding the changes to IFRS Accounting Standards which must be applied in 2026 or later are set out in Note 6.4.

Voluntary changes in accounting policies

Swisscom purchases various access lines from other network operators and uses these lines to connect its end customers. Until 31 December 2024, Swisscom classified some of these access lines as leases in accordance with IFRS 16 ’Leases’, with the exemption for low-value assets applied. Accordingly, no right-of-use assets or lease liabilities were recognised for these access lines, and the related costs were recognised as indirect costs within operating expenses. Following the acquisition of Vodafone Italia at the end of 2024, Swisscom changed its lease accounting policy across the Group. As a result, the exemption for low-value assets is no longer to be applied. This change results in a more relevant and better presentation of access line leases in the consolidated financial statements and increases comparability with the peer group from the telecommunications sector. The prior year’s comparatives have been restated accordingly. For the financial year 2024, this change reduced direct costs by CHF 412 million and increased depreciation of right-of-use assets by CHF 410 million and interest expense on lease liabilities by CHF 2 million.

Based on recent changes in accounting standards, Swisscom has reviewed its revenue recognition policy for streaming services with a minimum purchase commitment. Until 31 December 2024, the minimum purchase commitment was considered as an indicator in assessing whether Swisscom acts as principal or agent. Accordingly, certain streaming service contracts were presented on a gross basis. Following the review, all streaming service contracts are recognised on a net basis from 2025 onwards. The prior year’s comparatives have been restated accordingly. This change reduced both revenue and direct costs for the 2024 financial year by CHF 19 million each.

In addition, Swisscom has reviewed the classification and presentation of direct and indirect costs. The review primarily resulted in changes to the classification of allowances for receivables and contract assets. Starting from 2025, these allowances are presented as direct costs. Previously, these costs were reported within indirect costs. The change improves the presentation of Swisscom’s cost structure and supports management and planning of direct and indirect costs. The prior year’s comparatives have been restated accordingly. The reclassification increased direct costs and reduced indirect costs for the 2024 financial year by CHF 53 million each.

Effects of changes in accounting policies