The dividend policy, which was adjusted in 2007, stipulated that Swisscom would pay out up to half of the OpFCF to its shareholders, with however the previous year's dividend as a minimum amount. Neither dividends nor nominal value repayments are paid out on shares acquired by Swisscom as part of its share buybacks.
In each of the years 2004, 2005 and 2006, Swisscom paid out 100% of the Equity Free Cash Flow (EFCF) with the difference between EFCF and dividend in the form of share buybacks. You can find all the information on Swisscom share buybacks here.
Share buyback 2006
The 2006 share buyback is based on the dividend policy communicated in 2003. The key element of this dividend policy is that all the Equity Free Cash Flow (EFCF) is made available to the shareholders and not just a portion of the clear profit. Swisscom defines the EFCF as follows: net earnings from operative business less net investments in fixed assets and remaining intangible assets (CAPEX), acquisitions and disposal of shareholdings, debt redemption (without leasing liabilities) and profit distribution to minority shareholders.
The Equity Free Cash Flow earned in the 2005 financial year was CHF 2.2 billion. The dividend payout of CHF 16 per share, corresponding to a distribution of profits of CHF 907 million, was based on the shareholding on 28 April 2006. The remaining part of the Equity Free Cash Flow of CHF 1.25 billion is paid out to the shareholders through share buybacks in accordance with dividend policy. As announced on 16 February 2006, the share buyback is increased by a special distribution of funds amounting to CHF 1 billion.
The share buyback in 2006, amounting to approximately CHF 2.2 billion, was based on the allocation of free put options. Swisscom acquired 8.0 per cent of the registered shares, thus restoring shareholder liquidity. One put option per share was allocated to the shareholders. Two shares were sold to Swisscom for every 23 put options at the strike price of CHF 450. The options were traded on the Swiss Stock Exchange SWX on ten trading days.
In 2006 the shareholders benefited from dividends amounting to CHF 3.16 billion. Click here for more on the results of the 2006 share buy-back.
Additional information
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Share buyback 2006
Briefing Note Aktienrückkauf 2006
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Share buyback 2005
The Equity Free Cash Flow earned in the 2004 financial year amounted to CHF 2.9 billion (2003: likewise CHF 2.9 billion). The Swisscom Ltd AGM approved a dividend of CHF 14 per share on 26 April 2005, which corresponds to a profit distribution of CHF 861 million. The remaining amount of the Equity Free Cash Flow was paid out to the shareholders in the form of a share buyback of CHF 2 billlion in accordance with dividend policy. On 19 December 2005, Swisscom successfully completed the share buyback of CHF 2 billion that commenced on 20 May 2005 as part of its dividend policy. A total of 4,764,200 nominal shares were bought back, corresponding to 7.75% of the share capital. The buyback was performed using a second trading line specially set up for the share buyback on the stock exchange virt-x.
| Security details | 1st trading line | 2nd trading line |
|---|---|---|
| Security number | 874 251 | 2 146 428 |
| ISIN | CH 000 874 251 9 | CH 002 146 428 1 |
| Ticker Symbol | SCMN (Bloomberg) SCMN (Telekurs) SCMN.VX (Reuters) |
SCMN (Bloomberg) SCMN (Telekurs) SCMN.VX (Reuters) |
The average purchase price per share was CHF 419.80. The overview of shares acquired shows additional information for each week.
The AGM of 25.4.2006 approved the capital reduction. This was completed in the second half of 2006.
Additional information
Zeitungsinserat Aktienrückkauf 2005
Übersicht erworbener Aktien
Share buyback 2004
The share buyback is based on the new dividend policy announced in 2003. The key element of this dividend policy is that all the Equity Free Cash Flow (EFCF) is made available to the shareholders in future, and not just a portion of the clear profit. Swisscom’s Free Cash Flow is higher than its clear profit as the company is currently writing off considerably more than it is investing. Swisscom defines the EFCF as follows: net earnings from operative business less net investments in fixed assets and remaining intangible assets (CAPEX), acquisitions and amortisations of equity holdings, debt redemption (without leasing liabilities) and profit distribution to minority shareholders. The Equity Free Cash Flow earned in the 2003 financial year was CHF 2,913 million (previous year CHF 1,119 million). On 27 April 2004 the AGM of Swisscom Ltd AG approved a dividend of CHF 13 per share, corresponding to a distribution of profits of CHF 861 million. In accordance with the dividend policy, the remaining part of the Equity Free Cash Flow is paid out to shareholders through share buybacks of up to CHF 2 billion.
On 22 December 2004, Swisscom successfully completed the share buyback of CHF 2 billion that commenced on 24 May 2004 as part of its dividend payout policy. A total of 4,720 nominal shares were bought back, corresponding to 7.13% of the share capital. The buyback took place using the second trading line specially set up for the share buyback on the stock exchange virt-x. The average purchase price per share was CHF 423.68.
The capital reduction proposed by the supervisory board at the AGM of 26 April 2005 corresponding to the number of nominal share buybacks was completed on 20 July 2005. Following this capital reduction Swisscom has a total 61,482,761 nominal shares.
| Security details | 1st trading line | 2nd trading line |
|---|---|---|
| Security number | 874 251 | 1 828 309 |
| ISIN | CH 000 874 251 9 | CH 001 828 309 0 |
| Ticker Symbol | SCMN (Bloomberg) SCMN (Telekurs) SCMN.VX (Reuters) |
SCMN (Bloomberg) SCMN (Telekurs) SCMN.VX (Reuters) |
Additional information
Share buyback 2002
Swisscom first launched a share buyback programme in 2002. Swisscom bought its own shares back, amounting to CHF 4.3 billion. The buyback of 10% of outstanding share capital was performed over a put option structure.
Additional information