Statement of added value

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, with activities abroad accounting for 4% of the Group’s added value from operations in the year under review (prior year: 5%).

In CHF millionSwitzerlandAbroadTotalSwitzerlandAbroadTotal
Added value
Net revenue9,5862,11711,7039,3582,07611,434
Capitalised self-constructed assets and other income(290)(80)(370)(229)(159)(388)
Goods and services purchased1,7895802,3691,7126262,338
Other operating expenses 11,7837382,5211,7367232,459
Depreciation 21,3226461,9681,2816071,888
Intermediate inputs4,6041,8846,4884,5001,7976,297
Operating added value4,9822335,2154,8582795,137
Other non-operating result 3(139)(83)
Total added value5,0765,054
Allocation of added value
Employees 42,5202532,7732,4602662,726
Public sector 53908398322(3)319
Shareholders (dividends)1,1561,154
External investors (net interest expense)218251
Company (retained earnings) 6531604
Total added value5,0765,054
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 Company: including changes in deferred income taxes and defined benefit obligations.

Operating added value amounted to CHF 5,076 million in 2014, an increase of 0.4% compared with the previous year. As in the prior year, some 95% of operating added value was generated in Switzerland. Added value from international operations declined by CHF 46 million to CHF 233 million on account of higher depreciation and amortisation costs.

Although operating added value in Switzerland was virtually unchanged year-on-year at CHF 4,982 million, added value from operations per FTE was 1.4% lower at CHF 283,000 (prior year: CHF 287,000).