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8
Vodafone Group Plc
Annual Report & Accounts
for the year ended
31 March 2001
DIRECTORS’ REPORT
Review of th e Grou p’s busin ess
The Company and its subsidiary, joint venture and associated undertakings are involved principally in the provision of mobile telecommunications
services. A review of the development of the business of the Company and its subsidiary, joint venture and associated undertakings is contained
in the Company’s Annual Review and Summary Financial Statement for the year ended 31 March 2001 (“the Annual Review”) and, in particular,
the Chairman’s Statement on pages 3 to 5, the Chief Executive’s Statement on pages 6 to 9, the Group Chief Operating Officer’s Statement on
pages 10 to 23, the Corporate Social Responsibility Statement on pages 24 to 25 of the Annual Review and in the financial review on pages 4 to
7 of this Report. Details of the Company’s principal subsidiary undertakings, joint ventures, associated undertakings and investments can be
found on pages 59 and 60 of this Report.
Fu tu re developm ents
The Group is currently involved in the expansion and development of its cellular telecommunications and related businesses as described in the
Annual Review and, in particular, the Chairman’s Statement on pages 3 to 5, the Chief Executive’s Statement on pages 6 to 9, the Group Chief
Operating Officer’s Statement on pages 10 to 23 and in the financial review on pages 4 to 7 of this Report.
Corporate govern ance
The directors are committed to business integrity and professionalism. As an essential part of this commitment the Board supports high
standards of corporate governance and its statement on corporate governance is set out on pages 11 to 13 of this Report. The remuneration
policy contained in the Board’s Report to Shareholders on Directors’ Remuneration on pages 14 to 22 of this Report will be proposed for approval
at the Company’s Annual General Meeting on 25 July 2001.
Sh are cap ital
A statement of changes in the share capital of the Company is set out in note 19 on pages 45 and 46 of the financial statements.
Purch ase by th e Company of its own sh ares
At the Annual General Meeting of the Company held on 27 July 2000, shareholders gave the Company permission, until the conclusion of the
Annual General Meeting to be held in 2001 or on 27 October 2001, whichever is the earlier, to purchase up to 3,000,000,000 ordinary shares of
the Company. A resolution for permission for the Company to renew its authority to purchase its own shares will be proposed at the Annual
General Meeting of the Company to be held on 25 July 2001.
Results an d dividen ds
The consolidated profit and loss account is set out on page 25 of the financial statements.
The directors have proposed a final dividend for the year of 0.714p per ordinary share, payable on 10 August 2001 to shareholders on the
register of members at close of business on 8 June 2001. An interim dividend of 0.688p per ordinary share was paid during the year, producing a
total for the year of 1.402p per ordinary share, a total of approximately £887m. A scrip dividend alternative to the cash dividend is available for
this dividend and further details of the Company’s Scrip Dividend Scheme can be found on pages 46 and 47 of the Annual Review.
Subsequen t even ts
Details of material subsequent events are included in the Chairman’s statement on pages 3 to 5 of the Annual Review and in note 31 on page 55
of the financial statements.
Ch aritable con tributions
During the year, charitable donations amounting to £820,000, principally through the Vodafone Group Charitable Trust, were made in the UK.
The Trust makes contributions primarily to medical research, the disabled, the socially disadvantaged, education, the arts and environmental
causes. Professor Sir Alec Broers has been the Chairman of the trustees since 31 March 1998. Further details of the Group’s charitable activities
are contained in the separate report on corporate social responsibility, Vodafone future.
Political don ation s
No political donations were made during the year.
Creditor p aym en t term s
It is the Group’s policy to agree terms of transactions, including payment terms, with suppliers and, provided suppliers perform in accordance
with the agreed terms, it is the Group’s normal practice that payment is made accordingly.
The number of days outstanding between receipt of invoices and date of payment, calculated by reference to the amount owed to trade creditors
at the year end as a proportion of the amounts invoiced by suppliers during the year, was 40 days in aggregate for the Group. The Company did
not have any trade creditors at 31 March 2001.
Research an d develop m ent
The Group continues an active research and development programme for the enhancement of mobile telecommunications.