Vodafone 2003 Annual Report Download - page 49

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Vodafone Group Plc Annual Report & Accounts and Form 20-F 2003 47
The research and development programme is shared with all subsidiaries of the
Company and Group functions. They are able to influence the programme
through the governance mechanism, management processes and working
interfaces that are designed to allow delivery of the results of the programme
directly into the business units where they are needed. An important aspect of
the delivery process is the transfer of staff from the Group R&D function into
other Group functions and the operating companies. This process has continued
over the last year. The research and development programme provides the Group
with long term technical policy, strategy and leadership, as well as providing
technical underpinning for the Group’s public policies and government relations.
The Group spent £164 million in the 2003 financial year on research and
development, compared with £110 million in 2002 and £72 million in 2001. This
expenditure was incurred principally on developing new products and services,
billing systems and on network development.
Trend Information and Outlook
This section contains certain management estimates and other forward-looking
statements. See “Cautionary Statement Regarding Forward-Looking Statements”.
In the coming year, the Group anticipates growth of over 10% in average
proportionate customers leading to growth in statutory revenues in the 2004
financial year compared with the 2003 financial year. The Group currently
expects the loss per share in the 2004 financial year to be reduced compared
with the loss per share for the 2003 financial year.
For the 2004 financial year, capitalised tangible fixed asset additions are
anticipated to be approximately £5.0 billion, slightly higher than the £4.8 billion
for the year ended 31 March 2003, mainly due to deferred investment from that
year. The Group also expects to achieve a continued increase in net cash inflows
from its operating activities.