Vodafone 2011 Annual Report Download - page 29
Download and view the complete annual report
Please find page 29 of the 2011 Vodafone annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19 -
20 -
21 -
22 -
23 -
24 -
25 -
26 -
27 -
28 -
29 -
30 -
31 -
32 -
33 -
34 -
35 -
36 -
37 -
38 -
39 -
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
 |
 |
Business review
Vodafone Group Plc Annual Report 2011 27
Business review
Creating value for shareholders
We aim to increase shareholder returns through
regular dividends and one-off returns. In 2009 we
established a target to grow total dividends per share
by at least 7% per annum until the financial year
ending 31 March 2013, and consistent with this,
total dividends per share increased by 7.1% in 2011
to 8.90 pence per share. In addition, we have
committed £6.8 billion to buying back our shares,
of which £2.6 billion has been returned to date.
Apply rigorous capital discipline
to investment decisions
Discipline of regular business reviews
We are focused on enhancing returns to our shareholders and
are therefore careful how we invest shareholders’ money. We
regularly review the cash needs of each of our businesses
across the globe, taking into account their performance and
competitive position.
How we invest your money
Organic investment
We make capital investments, such as for new equipment
or spectrum, in our existing businesses to improve their
performance and drive organic growth.
Returns to shareholders
We thoroughly review the best ways to provide returns to our
shareholders. We have a target of increasing total dividends
per share by at least 7% a year until the nancial year ending
31 March 2013. When we have surplus funds we consider
additional returns to shareholders through special dividends
or share buyback programmes.
Selective acquisitions
When managing capital we also consider whether to
strengthen the Group by acquiring other companies to
increase our operations in a particular market. All potential
acquisitions are judged on strict nancial and commercial
criteria, especially whether they would provide meaningful
scale in a particular segment, the cost of the acquisition and
the ability to enhance the Group’s free cash ow. For example,
in March 2011 we announced our intention to acquire
BelCompany BV, the Netherlands’ largest independent
telecom retailer, which will expand our Dutch stores from
86 to 296.
Investment principles
All of our investments, whether in existing businesses
or acquisitions, are subject to rigorous commercial analysis
and demanding hurdle rates (the minimum rate of return on an
investment) to ensure they enhance shareholder returns. We
remain committed to our target credit rating of low single A for
long-term debt as this provides us with a low cost of debt and
good access to liquidity from nancial institutions.
Low
single A
Target long-term
credit rating
7%
Target annual
increase in total
dividends per share
until March 2013