Vodafone 2011 Annual Report Download - page 9

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1 Apr 10 1 Jun 10 1 Aug 10 1 Oct 10 1 Dec 10 1 Apr 111 Feb 11
Vodafone (share price in pence) FTSE 100 index
Vodafone share price vs FTSE 100
+23%
Vodafone total
shareholder return
(2011 financial year)
+8%
FTSE 100 total
shareholder return
(2011 financial year)
Across the Group we continue to promote text giving, enabling
our customers to give money simply and free of charge
to support charitable appeals following disasters. Using this
platform we raised over NZ$1.3 million for the Red Cross to
support the people of Christchurch.
The Board
During the year the Board appointed Renee James as a
non-executive director. Renee is Senior Vice President and
General Manager of the Software and Services Group for
Intel Corporation. She joined the Board in January 2011 and it
is clear that her industry knowledge and expertise will make
a strong contribution to the Group through another period
of rapid technological change.
The Board welcomed the publication in February of the
Davies Review on Women on Boards and, in line with its
recommendations, it is our aspiration to have a minimum
of 25% female representation on the Board by 2015. The
Financial Reporting Council is currently consulting on
changes to the UK Corporate Governance Code including
a recommendation that companies adopt a boardroom
diversity policy; we expect to comply with any such
recommendation. The Board recognises the importance of
gender balance throughout the Group and continues to
support our CEO, Vittorio Colao, in his efforts to build a
diverse organisation. Further information can be found in the
Corporate Governance section of this report.
After ve years as Chairman I am retiring from the Board at
the AGM in July. It has been a privilege to chair a Board of such
diverse and rich experience, and to help steer the Group
through the challenges of a dynamic industry and an uncertain
economic environment.
As a Board, our goal has always been to make the right
decisions based on the long-term opportunities for the
business. As a result, we now have an established presence in
a number of emerging markets that offer attractive potential
for sustained growth; and our commitment to maintaining
investment throughout the economic cycle means we have
mobile networks that lead the industry for speed and reliability.
This will be crucial as customers’ expectations grow in line with
their data usage.
Furthermore, we have continually assessed the risks and
opportunities of having capital deployed in some of our
non-controlled interests. This is particularly true of Verizon
Wireless, from which we have not received a dividend (other
than tax related dividend receipts) for six years. It would
arguably have been easier to sell our stake along the way, but
our decision to remain invested has been strongly vindicated
by its exceptional operating performance and strong cash
generation, which have led to a signicant increase in the value
of the asset.
Our approach has led to strong returns to shareholders over
the last ve years. Total shareholder return since July 2006
has been 85%, compared to 22% for the FTSE 100.
I am delighted to welcome Gerard Kleisterlee as Vodafone’s
new Chairman. As CEO of Philips, Gerard spent ten successful
years at the helm of an international consumer technology
business, and the Group is certain to make continued good
progress under his stewardship. I wish him, and the Group, all
the best for the future.
Sir John Bond
Chairman
Vodafone Group Plc Annual Report 2011 7
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