Vodafone 2006 Annual Report Download - page 3

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Highlights for the Year
Board of Directors
and Group Management 50
Corporate Governance 53
Employees 58
Corporate Responsibility
and Environmental Issues 59
Board’s Report to Shareholders
on Directors’ Remuneration 61
Directors’ Statement of Responsibility 70
Business Overview 12
Regulation 21
Financial Highlights 2
Group at a Glance 4
Chairman’s Statement 6
Chief Executive’s Review 8
Consolidated Financial Statements 71
Report of Independent Registered
Public Accounting Firm on the
Consolidated Financial Statements 131
Company Financial Statements
of Vodafone Group Plc 132
Report of Independent Registered
Public Accounting Firm on the
Company Financial Statements 139
Investor Information 140
Form 20-F Cross Reference Guide 146
Introduction 25
Critical Accounting Estimates 26
Key Performance Indicators 29
Operating Results 30
Financial Position and Resources 38
Risk Factors, Trends and Outlook 43
Cautionary Statement Regarding
Forward-Looking Statements 46
Non-GAAP Information 47
Definition of Terms 49
HighlightsStrategyBusinessPerformanceGovernanceFinancialsShareholder information
Financial performance:
• Group revenue of £29.4 billion from continuing operations. Mobile
telecommunications revenue increased to £28.1 billion, representing
growth of 9.3%
• Loss before taxation for the year was £14.9 billion after impairment losses
of £23.5 billion
• Free cash flow of £6.4 billion, and net cash inflow from operating activities,
after net taxation paid of £1.7 billion, up 10.3% to £10.2 billion from
continuing operations
Operational highlights:
• Net proportionate customer additions of 21.5 million in the year
• Closing proportionate customer base of 170.6 million, with organic growth
of 14.9% in the year
• Non-messaging data revenue grew by 61.2% to £0.8 billion, with organic
growth of 60.4%
• Mobile voice usage increased by 24.6% to 178.3 billion minutes, with
organic growth of 18.9%
Increasing returns to shareholders:
• Total dividends per share increased by 49%, to 6.07 pence, with a final
dividend per share of 3.87 pence, giving a dividend pay out ratio of 60% on
underlying earnings per share and a total pay out of £3.7 billion for the
financial year
• £6.5 billion expended on the share purchase programme in the 2006
financial year, reducing shares in issue by 7.5%
• £9.0 billion to be returned to shareholders in the 2007 financial year via
“B” share arrangement, including an additional £3 billion announced on
30 May 2006
• Total returns to shareholders announced over the year of £19.2 billion