Vodafone 2009 Annual Report Download - page 5

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May 2009April 2008
― Vodafone Group ― FTSE 100 index
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6600
Vodafone Group Plc Annual Report 2009 3
We have engaged with governments and policy-makers to urge them
not to lose sight of the benefits in terms of investment, innovation and
customer service which competition brings, of which the mobile
industry is a leading example. We believe that a descent into
protectionism and national preference would damage the prospects
for the industry and for our ability to serve our customers’ needs.
Regulation and taxation of the telecommunications sector continues
to have a significant impact on our business, our customers and our
shareholders. We have worked to ensure that legislators and regulators
appreciate the need to maintain a balance between the short term
benefit to the consumer and the long term interest of the consumer
in investment and innovation.
Your Board refreshed the Company’s strategy in November 2008 and
set strategic priorities which it believes will help your Company come
through the economic crisis. The review did not lead to any radical
change of direction but put renewed emphasis on operational
performance, tight control of costs, free cash flow generation and a
cautious approach to further footprint expansion. The past year has
seen us expand into two new markets (Ghana and Qatar), slightly
increase our shareholding in Polkomtel in Poland and attain majority
control of our long-standing joint venture Vodacom in South Africa.
An important step towards in-market consolidation came with the
agreement to merge our operation in Australia with the fourth largest
operator, Hutchison 3G Australia, underlining the value creation which
such consolidation can bring.
The past year has seen our new Chief Executive, Vittorio Colao, who
succeeded Arun Sarin at last year’s AGM, put his deep knowledge of
the mobile industry to good effect in steering your Company through
economic recession. I am delighted that your Board has also been
joined by a leading African businessman, Samuel Jonah. As we
increase our interest in Africa, with the integration of Ghana
Telecommunications into Vodafone, and our increased shareholding
in Vodacom, Sam will bring invaluable insights to our work. Since
the end of the financial year, Michel Combes, the Chief Executive of
the Group’s Europe Region, and Steve Pusey, the Group Chief
Technology Officer, have been appointed to the Board with effect
from 1 June. Their appointments will help ensure that there is a good
balance on the Board of both executive and non-executive directors
and I am confident that they will be major contributors to the future
of your Company.
Finally, your Board has continued to fund the work of The Vodafone
Foundation, which is an important way of supporting the communities
and societies where we make our profits. We invested £48 million in
The Vodafone Foundation programmes during the 2009 financial year.
The Vodafone Foundation and the network of national affiliates in our
markets continue to achieve high recognition for the contribution
they make. Highlights from The Vodafone Foundation programme
over the past year include World of Difference, which helped
individuals from 12 of our markets to take a year to work for the charity
of their choice; a public health mobile data gathering system
(“episurveyor”) helping to prevent the spread of disease in 22 African
countries; and the mHealth Alliance, announced in February 2009
with the Rockefeller Foundation, which will promote the use of mobile
technology in finding solutions to healthcare challenges.
On behalf of the Board, I would like to thank all Vodafone staff around
the world for their tremendous work and commitment against a
difficult economic background.
Your Board is pleased with the resilience of the Company and confident
that the Company will be well positioned for economic recovery when
it comes.
Sir John Bond
Chairman
Executive summary
Vodafone –13% FTSE 100 –20%
Total shareholder return April 2008 to May 2009
Vodafone share price +7 % vs FTSE 100