Vodafone 2013 Annual Report Download - page 146

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A5. Post employment benets (continued)
Actual return on pension assets
2013 20122011
£m £m £m
Actual return on pension assets 3356997
Analysis of pension assets at 31 March is as follows: % % %
Equities 43.0 60.161.6
Bonds 33.8 37.136.5
Property 1.0 0.3 0.3
Annuity policies 13.9 – –
Other 8.3 2.5 1.6
100.0 100.0 100.0
The schemes have no direct investments in the Group’s equity securities or in property currently used by the Group.
History of experience adjustments
2013 2012201120102009
£m £m £m £m £m
Experience adjustments on pension liabilities:
Amount (7) (21) 23 8 6
Percentage of pension liabilities –(1%) 1%– –
Experience adjustments on pension assets:
Amount 189 (30) (6) 286(381)
Percentage of pension assets 5% (2%) – 19%(35%)
A6. Capital and nancial risk management
This note details our treasury management and nancial risk management objectives and policies, as well
as theexposure and sensitivity of the Group to credit, liquidity, interest and foreign exchange risk, and the
policies in place to monitor and manage these risks.
Capital management
The following table summarises the capital of the Group:
2013 2012
£m £m
Financial assets:
Cash and cash equivalents (7,623) (7,138)
Fair value through the income statement (held for trading) (6,803) (2,629)
Derivative instruments in designated hedge relationships (1,117) (1,317)
Financial liabilities:
Fair value through the income statements (held for trading) 1,060 889
Derivative instruments in designated hedge relationships 44 –
Financial liabilities held at amortised cost 41,397 34,620
Net debt 26,958 24,425
Equity 72,488 78,202
Capital 99,446 102,627
The Group’s policy is to borrow centrally using a mixture of long-term and short-term capital market issues and borrowing facilities to meet
anticipated funding requirements. These borrowings, together with cash generated from operations, are loaned internally or contributed as equity
to certain subsidiaries. The Board has approved three internal debt protection ratios being: net interest to operating cash ow (plus dividends from
associates); retained cash ow (operating cash ow plus dividends from associates less interest, tax, dividends to non-controlling shareholders and
equity dividends) to net debt; and operating cash ow (plus dividends from associates) to net debt. These internal ratios establish levels of debt that
the Group should not exceed other than for relatively short periods of time and are shared with the Group’s debt rating agencies being Moody’s,
FitchRatings and Standard & Poor’s. The Group complied with these ratios throughout the nancial year.
Notes to the consolidated nancial statements (continued)
144 Vodafone Group Plc
Annual Report 2013