Vodafone 2011 Annual Report Download - page 3

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Contents
Business review#
2 About us
4 Vodafone at a glance
6 Chairman’s statement
8 Mobile telecommunications
industry
10 Chief Executive’s review
12 Strategy in action
28 Key market review
30 Sustainable business
32 People
Performance#
34 Operating results
44 Guidance
45 Principal risk factors
and uncertainties
47 Financial position
and resources
Governance#
52 Board of directors
and Group management
55 Corporate governance
62 Directors’ remuneration
Financials
74 Contents
75 Directors’ statement
of responsibility#
76 Audit report
on internal controls
77 Critical accounting estimates
79 Audit report on the
consolidated financial
statements
80 Consolidated financial
statements
125 Audit report on the Company
financial statements
126 Company financial
statements
Additional information
132 Shareholder information#
139 History and development#
140 Regulation#
143 Non-GAAP information#
146 Form 20-F cross
reference guide
148 Forward-looking statements
149 Definition of terms
151 Selected financial data
# These sections make up the directors’ report.
The terms ‘Vodafone’, the ‘Group’, ‘we’, ‘our’ and
‘us’ refer to the Company and, as applicable, its
subsidiaries and/or interests in joint ventures
and associates.
Unless otherwise stated references: to ‘year’ or
‘2011’ mean the financial year ended 31 March
2011; to ‘2010’ or ‘previous year’ mean the
financial year ended 31 March 2010; to the
‘third quarter’, ‘previous quarter’ or ‘Q3’ are to
the quarter ended 31 December 2010; and to
the ‘fourth quarter’ or ‘Q4’ are to the quarter
ended 31 March 2011.
All amounts marked with an ‘(*)’ represent
organic growth which presents performance on
a comparable basis, both in terms of merger and
acquisition activity and foreign exchange rates.
Definitions of terms used throughout the report
can be found on page 149.
This report is dated 17 May 2011.
Highlights of the year
■Group revenue increased 3.2% to £45.9 billion with a strong result
from emerging markets and signs of renewed growth in some parts
of Europe.
■Adjusted operating profit rose 3.1% to £11.8 billion, supported
by a good performance from our US associate, Verizon Wireless.
■Free cash flow of £7.0 billion, reflecting consistent levels of capital
expenditure and strong working capital performance.
■£14.2 billion expected to be raised from agreed disposals of interests
in China Mobile (China), SoftBank (Japan) and, after year end,
SFR (France).
■Total dividends per share of 8.90 pence, up 7.1% in line with our dividend
per share growth target. £6.8 billion committed to share buybacks.
Our new strategy
In November 2010 we unveiled an updated strategy to move
us from ‘A Stronger Vodafone’ to ‘A More Valuable Vodafone’.
The new strategy is composed of four main elements:
Focus on key areas of growth potential
Mobile data, emerging markets, enterprise, total
communications and new services.
Deliver value and efficiency from scale
Using our size and scale to drive cost efficiencies
and operational effectiveness.
Generate liquidity or free cash flow from non-controlled interests
Releasing liquidity and free cash flow from minority stakes
and investments.
Apply rigorous capital discipline to investment decisions
Allocating capital to maximise shareholder value.
Find out more on pages 12 to 27
You can visit our online annual report at:
www.vodafone.com/investor
Vodafone Group Plc Annual Report 2011 1