Vodafone 2005 Annual Report Download - page 7

Strategy |5
Responsible behaviour
Mobile telecommunications brings many positive social, environmental and economic
benefits, although for some it also brings concerns about possible health effects. Our
approach is to continue to support research aligned with the World Health
Organisation’s priorities and to provide customers and local communities everywhere
we operate with up to date, reliable information in plain language. We are committed
to communicating clearly to ensure people have the information they want to make
decisions on mobile telecommunications.
For Vodafone, corporate responsibility is about understanding the expectations of our
stakeholders and taking appropriate action to meet those expectations. We are,
therefore, integrating corporate responsibility into the business and this is reflected in
our strategic goals, our values and our Business Principles.
During the year, Vodafone and its operating companies made charitable contributions of
£33 million to The Vodafone Group Foundation, local Vodafone Foundations and social
projects. To support the humanitarian rescue operation following the Asia Tsunami
disaster, Vodafone, its employees and Foundations committed total funds of
£2.5 million, including the provision of free calls to and from the affected region as well
as employee matched donations in a number of countries. A summary of our
corporate responsibility activity in the year is set out later in this report, with full details
available in our Corporate Responsibility report, which I believe you will be pleased to
read.
Delivering value to shareholders
Your Board believes that with the continuing financial strength of your Company it is
possible to increase returns to shareholders through enhanced dividend payments and
share purchases. In November, the interim dividend was increased by 100% and the
directors are now recommending that the final dividend is also increased by 100%.
We have also continued with our share purchase programme and in the year to
31 March 2005 purchased approximately 3 billion shares at a cost of £4 billion. We
shall be seeking shareholder approval at the Annual General Meeting (“AGM”) for the
purchase of up to a further £4.5 billion of shares during the current financial year and I
look forward to your support.
Effective leadership
As part of a new organisational structure designed to assist in the delivery of the
Group’s strategic goals, Sir Julian Horn-Smith was appointed Deputy Chief Executive on
1 January this year. In this role, Sir Julian leads a new function, Global Business
Development, which is responsible for delivering Vodafone’s products and services
portfolio into the Group’s affiliates and Partner Networks. The Global Business
Development team has also assumed responsibility for expanding and consolidating our
footprint through our Partner Network programme and any acquisition activities. It was
a great pleasure for us all that the Queen awarded Julian a Knighthood in her last
birthday honours list. The honour was very much deserved and is appropriate
recognition of the outstanding contribution he has made to the success of your
Company.
At the conclusion of the AGM to be held in July, our Financial Director, Ken Hydon, will
retire. Ken was one of the first directors of your Company and he has done a superb
job in helping to guide the Company from its origins to the world leader it is today. His
financial discipline and acumen has enabled Vodafone to invest significantly in
customers, infrastructure and acquisitions whilst maintaining financial strength and
flexibility at all times. He will be missed by his colleagues and we wish him a very
happy and well deserved retirement.
Also retiring at the AGM will be Sir David Scholey, a non-executive director since 1998.
David’s wise counsel will also be missed and we thank him for his service and
contribution to the Board over many years.
We have announced that Andy Halford, who, until the end of December, was Chief
Financial Officer at our US affiliate, Verizon Wireless, will succeed Ken Hydon. Andy
Halford joined Vodafone in 1999 as Financial Director, Vodafone UK. In 2001 he was
given regional responsibility as Financial Director for the UK, Northern Europe, Middle
East and Africa before moving to his position with Verizon Wireless in 2002.
On 1 January, I was delighted to welcome Sir John Bond to the Board as a non-
executive director. Sir John, who is Group Chairman of HSBC Holdings plc, one of the
world’s largest banks, brings with him many years experience and a track record of
success in international markets, particularly in Asia and the Americas. His skills will be
of great benefit to the Board.
For the first time, all the directors are retiring and seeking re-election this year. This is
a responsible step forward as we seek to maintain the highest standards of corporate
governance.
It is only with the support and commitment of all employees, at all levels, that we are
able to continue the growth of Vodafone. In thanking them all, I look forward to their
ongoing contribution to achieving further progress in the current year.
Lord MacLaurin of Knebworth, DL
Chairman