Swisscom Ag · SIX:SCMN
Swisscom — Swisscom Capital Markets Event 2004
8 slides from Swisscom's conference presentation, Apr 2, 2004
Slide 1: Mechanics share buyback 2004
Mechanics share buyback 2004 Beat Grossenbacher, Group Treasurer 1-2 April 2004 Swisscom Capital Markets Event Interlaken, Switzerland 1
Slide 2: Different share buyback mechanics possible
Share buyback - mechanics Different share buyback mechanics possible ... Goals Accretion Speed Flexibility Transparency Put 2nd trading line Fix price Bilateral deal ... our goals are best achieved with 2nd line 2
Slide 3: Put option structure versus 2nd trading line
Share buyback - mechanics Put option structure versus 2nd trading line Put 2nd trading line § Premium delivers cash yield § No cash component but higher § But cash yield in hindsight accretion generally not reflected § Flexible structure in terms of § A smaller SBB volume (in % of pricing, timing, v
Slide 4: Mechanics of 2nd trading line
Share buyback - mechanics Mechanics of 2nd trading line Share buybacks (with cancellation) are considered as “partial liquidation” by tax authorities in Switzerland § Swiss withholding tax needs to be deducted § sellers need to be identified § therefore separate trading line necessary 2nd trading li
Slide 5: Share buyback - taxes
Share buyback - mechanics Share buyback - taxes Swiss Swiss Foreign institutional private investor investor investor § 35% of buyback § 35% of buyback § 35% of buyback Swiss price minus nominal price minus nominal price minus nominal value of CHF value of CHF value of CHF 1/share Withholding 1/share
Slide 6: A tax example for different types of investors
Share buyback - mechanics A tax example for different types of investors Swiss Swiss Foreign private (in CHF) investor institutional investor investor Initial purchase price / book value 380 380 380 Buyback price 420 420 420 Capital gain 40 40 40 privileged Inst. Corporations UK and US other Tax 1st
Slide 7: Accretion effect
Share buyback - mechanics Accretion effect - Assuming Government participates proportionately with current stake of 62.7% - Assuming an average buyback price of (in CHF) 420 before SBB after SBB SBB 2004 2004 2004 Number of shares (in mm) 66.2 -4.8 61.4 of which Freefloat 24.7 -1.8 22.9 of which Gov
Slide 8: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements ”This communication contains statements that constitute "forward-looking statements". In this communication, such forward-looking statements include, without limitation, statements relating to our financial condition, results of operations an