Case study Centralised services in Switzerland
Shell has centralised insurance, trademark management and some currency hedging services in Switzerland. We have around 300 branded retail sites in the country, which serve around 80,000 customers every day, and a lubricants blending plant. We employ around 120 people in Switzerland.
Switzerland had a low-tax regime that was the subject of public scrutiny. On January 1, 2020, Switzerland implemented tax reforms to replace certain preferential tax regimes with internationally accepted measures. The new measures have resulted in a combined regional and federal tax rate of 12% from 2020. Here we provide more information about Shell’s activities in Switzerland and the essential role they play in supporting our business activities.
The Shell Group is exposed to material risks which are predominantly insured by Solen Versicherungen AG, a Shell entity in Switzerland. We maintain capital and reserves in the event of a claim and we employ professionals with finance and specialist insurance knowledge, including in-house actuarial expertise. Shell’s insurance operation is licensed and regulated by the Swiss Financial Market Supervisory Authority (FINMA).
Shell has a number of trademarks used by both Shell companies and third parties including those that own and operate some of our retail sites. Most Shell trademarks are owned by Shell Brands International AG (SBI), which is based in Switzerland.
SBI owns, licenses, enhances and protects the value of Shell trademarks. SBI receives royalty payments from Shell operating companies and third-party licensees. The royalty payments are determined using the same methodology. Revenues from third-party licensees account for more than 50% of the total trademark royalty revenues.
Shell trademarks are registered with the relevant government agencies in many jurisdictions. SBI owns and manages a portfolio of about 15,000 registered trademarks.
Currency hedging services
Shell, like any other multinational company, is exposed to movements in the value of different currencies as part of normal business operations. Sometimes these currency movements create gains and sometimes losses. Shell substantially reduced its hedging activities in Switzerland at the end of 2019.