Vodafone 2005 Annual Report Download - page 26

24 |Business
This document contains “forward-looking statements”within the meaning of the US
Private Securities Litigation Reform Act of 1995 with respect to the Group’s financial
condition, results of operations and businesses and certain of the Group’s plans and
objectives. In particular, such forward-looking statements include statements with
respect to Vodafone’s expectations as to launch and roll-out dates for products,
services or technologies offered by Vodafone; intentions regarding the development of
products and services introduced by Vodafone or by Vodafone in conjunction with
initiatives with third parties; the ability to integrate our operations throughout the Group
in the same format and on the same technical platform and the ability to be
operationally efficient; the development and impact of new mobile technology;
anticipated benefits to the Group of the One Vodafone programme; the results of
Vodafone’s brand awareness and brand preference campaigns; growth in customers
and usage, including improvements in customer mix; future performance, including
turnover, average revenue per user (“ARPU”), cash flows, costs, capital expenditures
and margins, non-voice services and their revenue contribution; share purchases; the
rate of dividend growth by the Group or its existing investments; expectations regarding
the Group’s access to adequate funding for its working capital requirements; expected
effective tax rates and expected tax payments; the ability to realise synergies through
cost savings, revenue generating services, benchmarking and operational experience;
future acquisitions, including increases in ownership in existing investments and
pending offers for investments; future disposals; contractual obligations; mobile
penetration and coverage rates; the impact of regulatory and legal proceedings
involving Vodafone; expectations with respect to long-term shareholder value growth;
Vodafone’s ability to be the mobile market leader, overall market trends and other trend
projections.
Forward-looking statements are sometimes, but not always, identified by their use of a
date in the future or such words as “anticipates”, “aims”, “could”, “may”, “should”,
“expects”, “believes”, “intends”, “plans”or “targets”. By their nature, forward-looking
statements are inherently predictive, speculative and involve risk and uncertainty
because they relate to events and depend on circumstances that will occur in the
future. There are a number of factors that could cause actual results and
developments to differ materially from those expressed or implied by these forward-
looking statements. These factors include, but are not limited to, the following:
•changes in economic or political conditions in markets served by operations of the
Group that would adversely affect the level of demand for mobile services;
•greater than anticipated competitive activity requiring changes in pricing models
and/or new product offerings or resulting in higher costs of acquiring new
customers or providing new services;
•the impact on capital spending from investment in network capacity and the
deployment of new technologies, or the rapid obsolescence of existing technology;
•slower customer growth or reduced customer retention;
•the possibility that technologies, including mobile Internet platforms, and services,
including 3G services, will not perform according to expectations or that vendors’
performance will not meet the Group’s requirements;
•changes in the projected growth rates of the mobile telecommunications industry;
•the Group’s ability to realise expected synergies and benefits associated with 3G
technologies and the integration of our operations and those of acquired companies;
•future revenue contributions of both voice and non-voice services offered by the
Group;
•lower than expected impact of GPRS, 3G and Vodafone live! and other new or
existing products, services or technologies on the Group’s future revenue, cost
structure and capital expenditure outlays;
Cautionary Statement Regarding Forward-Looking Statements
•the ability of the Group to harmonise mobile platforms and any delays, impediments
or other problems associated with the roll-out and scope of 3G technology and
services and Vodafone live! and other new or existing products, services or
technologies in new markets;
•the ability of the Group to offer new services and secure the timely delivery of high-
quality, reliable GPRS and 3G handsets, network equipment and other key products
from suppliers;
•greater than anticipated prices of new mobile handsets;
•the ability to realise benefits from entering into partnerships for developing data and
Internet services and entering into service franchising and brand licensing;
•the possibility that the pursuit of new, unexpected strategic opportunities may have
a negative impact on one or more of the measurements of our financial
performance and may affect the level of dividends;
•any unfavourable conditions, regulatory or otherwise, imposed in connection with
pending or future acquisitions or dispositions;
•changes in the regulatory framework in which the Group operates, including
possible action by regulators in markets in which the Group operates or by the
European Commission regulating rates the Group is permitted to charge;
•the Group’s ability to develop competitive data content and services which will
attract new customers and increase average usage;
•the impact of legal or other proceedings against the Group or other companies in
the mobile telecommunications industry;
•the possibility that new marketing campaigns or efforts are not an effective
expenditure;
•the possibility that the Group’s integration efforts do not increase the speed to
market for new products or improve the Group’s cost position;
•changes in exchange rates, including particularly the exchange rate of pounds
sterling to the euro, US dollar and the Japanese yen;
•the risk that, upon obtaining control of certain investments, the Group discovers
additional information relating to the businesses of that investment leading to
restructuring charges or write-offs or with other negative implications;
•changes in statutory tax rates and profit mix which would impact the weighted
average tax rate;
•changes in tax legislation in the jurisdictions in which the Group operates;
•final resolution of open issues which might impact the effective tax rate;
•timing of tax payments relating to the resolution of open issues; and,
•loss of suppliers or disruption of supply chains.
Furthermore, a review of the reasons why actual results and developments may differ
materially from the expectations disclosed or implied within forward-looking statements
can be found under “Risk Factors and Legal Proceedings – Risk Factors”.All
subsequent written or oral forward-looking statements attributable to the Company or
any member of the Group or any persons acting on their behalf are expressly qualified
in their entirety by the factors referred to above. No assurances can be given that the
forward-looking statements in this document will be realised. Neither Vodafone nor any
of its affiliates intends to update these forward-looking statements.