TIDMVOD
RNS Number : 0171H
Vodafone Group Plc
02 June 2017
Vodafone Group Plc ("Vodafone" or the "Company")
Publication of the 2017 Annual Report and 2017 Annual General
Meeting Notice
Vodafone will today publish on the Company's website its Annual
Report for the year ended 31 March 2017 (the 'Annual Report'),
together with its 2017 Annual General Meeting Notice (the 'AGM
Notice'). The Annual Report is available at vodafone.com/ar2017 and
the AGM Notice is available at vodafone.com/agm.
In compliance with Listing Rule 9.6.1 of the UK Financial
Conduct Authority ('FCA'), the 2017 Annual Report and AGM Notice
will in due course be available for inspection at
www.morningstar.co.uk/uk/NSM
In accordance with FCA's Disclosure and Transparency Rule 6.3.5,
the Appendix to this announcement contains a description of the
principal risks and uncertainties affecting the Group, related
party transactions and a responsibility statement.
A condensed set of Vodafone's financial statements and
information on important events that have occurred during the
financial year ended 31 March 2017 and their impact on the
financial statements were included in Vodafone's final results
announcement released on 16 May 2017. That information, together
with the information set out below, which is extracted from the
2017 Annual Report, constitute the material required by Disclosure
and Transparency Rule 6.3.5 which is required to be communicated to
the media in full unedited text through a Regulatory Information
Service. This announcement is not a substitute for reading the full
2017 Annual Report. Page and note references in the text below
refer to page numbers in the 2017 Annual Report and notes to the
financial statements.
APPIX
PRINCIPAL RISK FACTORS AND UNCERTAINTIES
A description of the principal risks and uncertainties that the
Company faces is extracted from pages 28 to 34 of the 2017 Annual
Report.
Identifying and managing our risks
We have a global framework for identifying and managing risk
within our defined tolerance, both at an operational and strategic
level. The framework has been designed to provide the Executive
Committee and Board with a clear line of sight over risk and to
enable informed decision making.
Our risk management framework
Our external operating environment is subject to constant and
sometimes rapid change. We must be able to take appropriate levels
of risk to protect our market position and take advantage of
opportunities. Equally, failure to manage risk could have an
adverse impact on the achievement of our strategic goals.
To understand our risk profile and align it with our objectives
and decision making processes, we operate a global framework that
ensures we identify risk, set tolerance levels and consistently
manage risk across our business. This also allows us to consolidate
our view on risk looking across all local markets, functions and
specialist areas. This line of sight gives management the
information they need to make the right decisions for our
business.
Identify
- Risks identified in each Vodafone local market and entity
- Strategic risk reviews with senior leadership
- Group principal risks reviewed and agreed by Executive Committee and the Board
Measure
- Risk tolerance set by Executive Committee and the Board for all principal risks
- Consolidation and escalation across the Group using standardised scoring and categorisation
Manage
- Controls set to manage the risk within tolerance and ownership defined
- Risk action plans created to manage risks within tolerance
Monitor
- Co-ordinated assurance across the "three lines of defence"
assesses the effectiveness of controls
Report
- Inform the Executive Committee and Board on how effectively
risks are being managed within tolerance
- Risk management information used to inform strategy, capex and resourcing decisions
Assurance and oversight of risks
In order to provide the Executive Committee, Audit & Risk
Committee and Board with a clear view on how we mitigate our
principal risks and whether the mitigations are effective, we apply
a model of co-ordinated assurance. Our Risk, Compliance and
Internal Audit communities work together on planning, executing and
reporting assurance activities to ensure that there is adequate
coverage across the control environment with a robust level of
independent testing.
Information gathered through our coordinated assurance process
is provided to the relevant committees to help drive informed
decision making. It also helps senior management to understand our
overall risk profile, current levels of control and the culture of
our business.
Strengthening our framework
We constantly strive to improve risk management and have made
the following enhancements over the last 12 months:
A consistent reporting and oversight methodology has been
extended across all local markets and group entities;
We have increased our engagement with risk owners to increase
monitoring of key risks, actions and indicators;
We have invested in a global risk tool, which allows us to
standardise the data stored on all risks and to share information
across the Group;
We have worked to develop our risk community through best
practice sharing, training and our annual Global Risk Forum.
Our principal risks
We undertake a two stage process to identify our principal
risks. All local markets and entities identify their priority risks
which are consolidated into a Group wide view. We then conduct
interviews with over 40 senior leaders to gain their insights. The
results of both exercises are consolidated to produce our principal
risks, as reported here.
Key changes in the year
Our risk profile remains stable relative to last year, with the
following updates:
-- The two technology risks are now considered separately, as
the causes for these are different (now risks 5 and 7).
-- The Customer Experience Excellence risk now focusses on digital capability (risk 8)
-- The adverse political measures risk now includes upcoming 5G auctions (risk 3).
1. Cyber threat and information security - External or internal
attack resulting in service unavailability or data breach.
2. Market disruption - Disruptive technology, changes in
competitor business models, lack of agility
3. Adverse political and regulatory measures - Excessive pricing
of 5G licences, tax authority challenges, changing national
politics
4. Failure to converge and integrate acquisitions - Incumbent
re-monopolisation, failure to access critical content, inability to
integrate acquisitions
5. IT transformation failure - IT transformation failures impacting NPS
6. Unstable economic conditions / inadequate liquidity - Global
financial crisis reducing consumer spending and ability to
refinance
7. Technology failure - Failure of critical IT, fixed or mobile assets causing service disruption
8. Failure to deliver on digital transformation and CXX -
Failure to create a differentiated, digital customer experience
9. Non-compliance with legal and regulatory requirements -
Non-compliance with laws, regulations, network licence
requirements
10. Failure to deliver major Enterprise contracts profitably -
Failure to meet commitments and/or deliver at appropriate
profitability levels
11. EMF health related risks - EMF found to pose health risks
causing reduction in mobile usage or litigation
Cyber threat and information security
Executive Committee risk owners: Johan Wibergh / Matthew
Kirk
Risk movement: Stable
Risk category: Operational
Link(s) to the strategic programmes: Network leadership /
Customer eXperience eXcellence / People and culture
What is the risk?
A successful cyber-attack or internal event could result in us
not being able to deliver service to our customers and/or failing
to protect their data.
What is the impact?
Failing to protect our customer information and service
availability could have major customer, financial, reputational and
regulatory impact in all markets in which we operate.
What is our target tolerance position?
We aim for a secure digital future for our customers. Security
underpins our commitment to protecting our customers with reliable
connections and keeping their data safe.
This corresponds to strong preventative, detective and
responsive controls to minimise the risk of a successful
attack.
How do we manage it?
We have a risk based security strategy that is delivered by a
leading cyber defence team who implement customer-focused security
controls centrally and in local markets, and we have embarked on a
continuous improvement programme to mitigate the changing threats
we face.
Key risk indicators
We monitor multiple trends including:
Privileged user access levels
Confirmed security incidents
Critical vulnerabilities
Changes since last report
Organisations in all sectors are targeted by an increasing
volume and sophistication of cyber attacks. We have continued to:
improve our cyber defences; upgrade our internal controls; and
educate our people, suppliers and customers on how to protect our
customers' information and communications, networks and assets.
Market disruption
Executive Committee risk owner: Serpil Timuray
Risk movement: Increased
Risk category: Strategic
Link(s) to the strategic programmes: Network leadership /
Customer eXperience eXcellence
What is the risk?
We face increased competition from a variety of new technology
providers, new market entrants and competitor consolidation. We
must be able to keep pace with new technology and to compete in
changing markets.
What is the impact?
Our market position and revenues could be damaged by failing to
provide the services that our customers want at a fair price.
What is our target tolerance position?
We aim for a fair and competitive environment in all of our
markets, and adopt strategies to deliver this through the use of
innovative products, services and pricing models. We also work with
regulators and governments to ensure a fair and competitive
environment.
How do we manage it?
We aim to offer a superior customer experience and continually
improve our offering through a wide set of innovative products and
services, including fixed and mobile content, IoT and voice over
LTE.
We monitor the competitor landscape in all markets, and react
appropriately; working to make sure each market has a fair and
competitive environment.
Key risk indicators:
Trends in competitor behaviour and new technologies
Level of customers actively using our new products and
services
Changes since last report
This risk has increased due to a growing use of OTT voice apps,
changing competitor business models and new entrants in some of our
markets. In the case of new competitors, we have responded by
changing our approach such as entering into a joint venture in
India, to ensure that we remain in the best possible position to
compete.
Adverse political and regulatory measures
Executive Committee risk owners: Nick Read / Matthew Kirk
Risk movement: Increased
Risk category: Financial
Link(s) to the strategic programmes: Network leadership / Fit
for Growth
What is the risk?
We operate under licence in most markets and face regular
changes in regulation, law and operating environments. Significant
adverse changes, for example to tax laws, spectrum pricing or an
unfavourable regulatory landscape for multi-national companies,
could impact our ability to do business in our preferred
manner.
What is the impact?
If the cost of operations were to significantly increase,
directly or indirectly, this would impact our profitability and
returns to shareholders.
What is our target tolerance position?
We seek actively to engage with governments and tax authorities
to encourage good working relationships and to help shape potential
impacts of legislative change on the Group.
We look for spectrum auctions to be fair for all participants
both in terms of ability to access auctions and pricing of
spectrum.
How do we manage it?
We maintain constructive but robust engagement with tax
authorities, relevant government representatives and
non-governmental organisations, as well as active engagement with a
wide range of international companies and business organisations
with similar issues.
We plan our approach to spectrum auctions to ensure we achieve
fair access at sustainable prices.
Key risk indicators
We monitor
- Public sentiment, changes to laws and regulations, number and
value of disputes across the Group
- Benchmarking of spectrum cost between countries
Changes since last report
This risk has increased due to the evolution of national
politics, which could have an impact on multinational companies,
the potential for government spectrum auctions to push pricing for
5G beyond reasonable levels, and increasing instability in some of
our markets.
Failure to converge and integrate acquisitions
Executive Committee risk owner: Serpil Timuray
Risk movement: Decreased
Risk category: Strategic
Link(s) to the strategic programmes: Network leadership /
Customer eXperience eXcellence / Fit for Growth
What is the risk?
We face competition in key markets from providers who have the
ability to sell converged services on their existing
infrastructure, with regulation that often fails to deliver a level
playing field across fixed and content markets.
What is the impact?
If we fail to deliver converged services, either through not
being able to access infrastructure or content at a reasonable
price, or through ineffective integration of acquired fixed assets,
this could lead to higher customer churn and / or significant
downward pressure on prices.
What is our target tolerance position?
We seek a sustainable competitive position to protect our mobile
market share and grow our fixed, broadband and TV activities in
markets with increasing convergence.
How do we manage it?
We actively look for opportunities, in all markets, to provide
services beyond mobile through organic investment, acquisitions,
partnerships, or joint ventures.
We carefully manage the integration of acquired business and
joint ventures through the alignment of policies, processes and
systems to ensure maximum benefit is delivered.
Key risk indicators
We track various metrics around:
Achievement of synergies
Next Generation Network (NGN) reach
Available assets
Number of converged accounts
Changes since last report
This risk has decreased overall due to successful merger
activities, improved access to assets and an increased number of
converged customers. However, we need to continue to focus on
ensuring our mobile our fixed customer bases are fully converged,
and that we successfully integrate and manage our acquired
assets.
IT Transformation failure
Executive Committee risk owner: Johan Wibergh
Risk movement: Stable
Risk category: Operational
Link(s) to the strategic programmes: Network leadership /
Customer eXperience eXcellence / Fit for Growth
What is the risk?
As we undertake major IT change programmes in a number of
markets, there is a risk that these projects disrupt services or do
not provide the benefits that they should in a timely manner.
What is the impact?
A significant implementation and migration failure resulting in
a major impact on our customers, revenues, costs and
reputation.
What is our target tolerance position?
We seek successful IT Transformation initiatives as the vehicle
for delivering a great customer experience, high quality reliable
systems, improving our time to market and enabling best in class
digital capabilities.
How do we manage it?
We use a standardised programme methodology across all major IT
transformation programmes to ensure a high quality start up process
and increase the certainty of the outcome.
We ensure careful testing of all new developments, particularly
customer-facing solutions, prior to go-live.
Key risk indicators
We consider trends in -
Customer disruption
Unplanned spend
Return on capital employed
Changes since last report
We have launched a new global approach to IT transformation
programmes. The process was designed to ensure that lessons learnt
from previous transformation projects are fed into new projects to
encourage consistency and strengthen governance.
Unstable economic conditions / inadequate liquidity
Executive Committee risk owner: Nick Read
Risk movement: Stable
Risk category: Financial
Link(s) to the strategic programmes: Fit for Growth
What is the risk?
As a multinational business, we operate in many countries and
currencies so changes to global economic conditions can impact us.
This could be because another global crisis results in reduced
spending power for customers or because a relative strengthening or
weakening of the major currencies in which we transact could impact
our profitability and cash flow.
What is the impact?
The potential for another global financial crisis may lead to
further economic instability and subsequent reductions in corporate
and consumer spending or an impact on capital markets that could
restrict our refinancing requirements.
What is our target tolerance position?
We take a conservative approach to financial risks which
reflects our diverse business.
We carefully manage our liquidity and access to capital markets
to limit our exposure to unstable economic conditions.
How do we manage it?
We maintain access to long and short term capital markets
through diversified sources of funding.
We forecast with contingencies in our business plans to cater
for negative operational impacts that could occur from a variety of
drivers including the impact from lower economic growth than is
generally expected.
Key risk indicators
Current credit rating
Average life and cost of debt
Currency and interest rate exposures
Monitoring of economic and financial market drivers
Changes since last report
We have taken action to increase the average life of our bond
debt and interest rate fixing, thereby respectively reducing our
refinancing risk and interest rate risk to material inflationary
impacts.
Technology failure
Executive Committee risk owner: Johan Wibergh
Risk movement: Stable
Risk category: Operational
Link(s) to the strategic programmes: Network leadership /
Customer eXperience eXcellence
What is the risk?
If our network or IT systems fail, voice, video or data
transmissions may be significantly interrupted. We need to ensure
that our critical assets are protected and our systems are
resilient, so that the impact on our customers is avoided or
minimised.
What is the impact?
Major incidents caused by suppliers, natural disasters or an
extreme technology failure, although rare, could result in the
complete loss of a key technology site causing severe impact on our
customers, revenues and reputation.
What is our target tolerance position?
Our customer promise is based on reliable availability of our
network, therefore the recovery of critical mobile, fixed and IT
services must be fast and robust.
How do we manage it?
Unique recovery targets are set for critical sites to limit the
impact of service outages. A global policy supports these targets
with minimum controls to ensure effective resilience.
We monitor the lifespan of critical assets and maintain back up
where necessary
Key risk indicators
Number of critical sites able to meet the recovery targets
Levels of incidents / near misses
Changes since last report
This risk is considered stable as we continue to implement
improvements to the resilience capabilities of our critical mobile,
fixed and IT sites.
Failure to deliver on digital transformation and CXX
Executive Committee risk owner: Serpil Timuray
Risk movement: Increased
Risk category: Operational
Link(s) to the strategic programmes: Network leadership /
Customer eXperience eXcellence / People and culture
What is the risk?
Failure to deliver a digital, differentiated and superior
experience to our customers in store, online and by phone, could
diminish our brand and reputation. To do this we need to be agile
with strong digital capabilities.
What is the impact?
This risk is relevant to all our markets, in both our consumer
and Enterprise businesses.
Failure to deliver on our digital and customer experience
objectives could result in lack of differentiation leading to
increased customer churn and eventual loss of market share.
What is our target tolerance level?
The Customer Experience Excellence (CXX) programme is designed
to ensure the customer is always at the heart of everything we
do.
We have a customer experience framework and facilitate best
practice sharing and support to local markets.
How do we manage it?
We have central and local CXX teams in place
Minimum standards and implementation plans have been developed
for each local market. We link our senior leader's remuneration to
customer appreciation KPIs. Benchmarking is underway on digital
capabilities in each market.
Key risk indicators
Measurement of NPS
Implementation and monitoring of minimum CXX standards
Changes since last report
This risk has been expanded to include a focus on delivering a
differentiated digital experience for our customers. For this
reason, the risk is considered increased, despite the continued
success of our CXX programme.
Non compliance with legal and regulatory requirements
Executive Committee risk owners: Rosemary Martin / Matthew
Kirk
Risk movement: Stable
Risk category: Legal and Regulatory
Link(s) to the strategic programmes: Customer eXperience
eXcellence / People and culture
What is the risk?
Vodafone must comply with a multitude of local and international
laws as well as more specific regulations. These include licence
requirements, customer registration, data privacy, anti-money
laundering, competition law, anti-bribery law and economic
sanctions.
What is the impact?
Non-compliance with legislation or regulatory requirements could
lead to reputational damage, financial penalties and/or suspension
of our license to operate.
What is our target tolerance level?
We seek to comply with all applicable laws and regulations in
all of our markets.
We seek to process personal data honestly, ethically, with
integrity, and always consistent with applicable laws and our
values.
How do we manage it?
We have subject matter experts in legal and regulatory teams at
a local and global level, and a robust policy compliance
framework.
We train our employees in 'Doing what's right', our training and
awareness programme which sets our ethical culture across the
organisation and ensures employees understand their role in
ensuring compliance.
Key risk indicators
Results of the annual compliance testing programme
Number of Speak Up cases in each market
Changes to applicable legal and regulatory requirements
Changes since last report
With mature compliance programmes in place, this risk remains
stable. We actively seek to improve these programmes and this year
will see a focus on ensuring compliance with the EU General Data
Protection Regulation.
Failure to deliver major Enterprise contracts profitably
Executive Committee risk owner: Brian Humphries
Risk movement: Decreased
Risk category: Operational
Link(s) to the strategic programmes: Fit for Growth / People and
culture
What is the risk?
If we do not understand the needs of our Enterprise customers
and contract on the correct basis to account for the complexity of
requirements, we will not be able to profitably deliver
services.
What is the impact?
Failure to deliver these Enterprise services profitably may lead
to a reduction in our expected revenue and could impact our
credibility to deliver on large, complex deals.
What is our target tolerance level?
We pursue, win and deliver new Enterprise business
profitably.
We deliver against the commitments made to the customer and will
manage change throughout.
We will deliver the best customer experience at every
interaction with Vodafone
How do we manage it?
We manage the commercial and reputational risks through strict
new product development, deal governance, customer solution
delivery and service management processes.
Key risk indicators
We track trends in
NPS
Revenue and major contract profitability
Order completion rates
Cumulative deal risk
Changes since last report
Due to the successful implementation of a number of process
improvements, this risk has decreased. We have improved deal
governance and now have stronger in-life contractual management
processes.
Electro-magnetic fields related health risks
Executive Committee risk owner: Matthew Kirk
Risk movement: Stable
Risk category: Operational
Link(s) to the strategic programmes: Network leadership /
Customer eXperience eXcellence / People and culture
What is the risk?
Electromagnetic signals emitted by mobile devices and base
stations may be found to pose health risks, with potential impacts
including: changes to national legislation, a reduction in mobile
phone usage or litigation.
What is the impact?
This is an unlikely risk; however, it would have a major impact
on services used by our customers in all our markets - particularly
in countries that have a very low tolerance for environmental and
health related risks.
What is our target tolerance position?
Vodafone does not want to expose anyone to levels of EMF above
those mandated by regulators.
We comply with national standards, where existing, and with our
own EMF policy, based on international science guidelines. Our
vision is to lead within the industry in responding to public
concern about mobiles, masts and health.
How do we manage it?
Our Group EMF Board manages potential risks through cross sector
initiatives and oversees a global programme to respond to public
concern.
We monitor scientific developments and engage with relevant
bodies to support the delivery and transparent communication of the
scientific research agenda set by the World Health
Organisation.
Key risk indicators
We monitor:
Scientific research
International standards and guidelines
Public perception
Compliance with EMF policies
Changes since last report
There are no material changes to the risk.
Brexit implications
The Board continues to keep the possible implications of Brexit
for Vodafone's operations under review.
A cross-functional team, led by two Executive Committee members,
has identified ways in which Brexit might affect the Group's
operations. Despite the Article 50 Notice having been served, there
remains insufficient information about the likely terms of the
post-Brexit arrangements between the UK and the EU, as well as
about any possible transitional arrangements, to draw any
conclusions about the probable impact.
Although we are a UK headquartered company, a very large
majority of our customers are in other countries, accounting for
most of our revenue and cash flow. Each of our national operating
companies is a standalone business, incorporated and licensed in
the jurisdiction in which it operates, and able to adapt to a wide
range of local developments. As such, our ability to provide
services to our customers in the countries in which we operate,
inside or outside the EU, is very unlikely to be affected by
Brexit. We are not a major international trading company, and do
not use passporting for any of our major services or processes.
Depending on the arrangements agreed between the UK and the EU,
two issues that could directly affect our operations, in both cases
potentially causing us to incur additional cost, are:
- creation of a data frontier between the UK and the EU: the
inability to move data freely between the UK and EU countries might
cause us to have to move some technical facilities, and affect
future network design.
- inability to access the talent we need to run a multinational
Group operation from the UK: increased controls over or
restrictions to our ability to employ leading talent from non UK
markets could cause us to have to adjust our operating model to
ensure that we attract and retain the best people for the roles we
have.
A further, indirect, issue that could affect our future
performance would arise if the Brexit process caused significant
revisions to macro-economic performance in our major European
markets including the UK, thus affecting the economic climate in
which we operate, and in turn impacting the performance of the
operating companies in those markets.
Long-Term Viability Statement
In accordance with the UK Corporate Governance Code, the
Directors have assessed the prospects of the Group over a period
significantly longer than 12 months from the approval of the
financial statements. The Board has concluded that the most
relevant time period for this assessment should be three years to
align with the Group's normal business forecasting cycle and the
long range plan to 31 March 2020, as well as taking into
consideration the pace of ongoing change in the telecoms industry.
The assessment for this three year period includes consideration of
the forecast cash flows and obligations of Vodafone India.
The plans and projections prepared as part of this forecasting
cycle include the Group's cash flows, committed and required
funding and other key financial ratios. They were drawn up on the
basis that debt refinance will be available in all plausible market
conditions and that there will be no material changes to the
business structure over the review period. As of 31 March 2017, the
Group had sources of liquidity (primarily comprised of certain cash
and cash equivalent balances) and available facilities, of EUR18.8
billion, which includes undrawn Revolving Credit Facilities
expiring in FY2020/21.
The Risk Management Framework on page 28 outlines the approach
the Board has taken to identifying and managing risk. In making
this statement, the Board carried out a robust assessment of the
principal risks facing the Group, detailed on pages 30 to 33,
including those that would threaten its business model, future
performance, solvency or liquidity.
Against this background, the output of the long-range plan has
been used to perform central debt profile and cash headroom
analysis, including a review of sensitivity to "business as usual"
risks to revenue and profit growth. In addition, severe but
plausible scenarios in the event of each of the principal risks
materialising individually and where multiple risks occur in
parallel, were also tested. This combined scenario included the
impact of failing to execute key elements of our strategy and
respond to market disruption resulting in a significant loss of
market share to converged and OTT players. This was considered
together with a major cyber-attack and a subsequent GDPR fine, as
well as the macro political uncertainty resulting in restricted
access to capital markets and devaluation of emerging market
currencies.
To assess viability, the headroom position under these scenarios
has been calculated using the cash and facilities available to the
Group. The assessment took into account the availability and likely
effectiveness of the mitigating actions that could be taken to
reduce the impact of the identified underlying risks. The headroom
remained positive in all scenarios tested.
Having considered the principal risks that the Group may face,
the Directors consider that this stress-testing based assessment of
the Group's prospects is reasonable in the circumstances, taking
into account the inherent uncertainty involved. Although this
review has considered severe but plausible scenarios relevant to
the Group, any such review cannot consider all risks which may
occur, therefore an overall view of the total level of risk
required to impede our viability was also considered. The cash and
available facilities at year end, along with the mitigating actions
available to reduce cash outgoings, provides a sufficient level of
headroom.
Based on the results of their analysis, the Directors confirm
that they have a reasonable expectation that the Group will be able
to continue in operation and meet its liabilities as they fall due
over the three-year period ending 31 March 2020.
RELATED PARTY TRANSACTIONS
The Group has a number of related parties including joint
arrangements and associates, pension schemes and Directors and
Executive Committee members (see note 12 "Investments in associates
and joint arrangements", note 26 "Post employment benefits" and
note 24 "Directors and key management compensation" to the
consolidated statements in the 2017 Annual Report).
Transactions with joint arrangements and associates
Related party transactions with the Group's joint arrangements
and associates primarily comprise fees for the use of products and
services including network airtime and access charges, fees for the
provision of network infrastructure and cash pooling
arrangements.
No related party transactions have been entered into during the
year which might reasonably affect any decisions made by the users
of these consolidated financial statements except as disclosed
below.
2017 Restated Restated
EURm 2016 2015
EURm EURm
------------------------------------- -------- --------- ---------
Sales of goods and services to
associates 37 39 44
Purchase of goods and services
from associates 90 118 118
Sales of goods and services to
joint arrangements 19 21 7
Purchase of goods and services
from joint arrangements 183 92 96
Net interest income receivable
from joint arrangements (1) 87 92 100
------------------------------------- -------- --------- ---------
Trade balances owed:
by associates - 1 4
to associates 1 4 5
by joint arrangements 158 232 253
to joint arrangements 15 71 65
Other balances owed by joint
arrangements(1) 1,209 108 85
Other balances owed to joint
arrangements (1) 127 106 75
------------------------------------- -------- --------- ---------
Note:
1 Amounts arise primarily through VodafoneZiggo, Vodafone
Hutchison Australia, Indus Towers Limited and Cornerstone
Telecommunications Infrastructure Limited. Interest is paid in line
with market rates.
Dividends received from associates and joint ventures are
disclosed in the consolidated statement of cash flows.
Transactions with Directors other than compensation
During the three years ended 31 March 2017, and as of 16 May
2017, no Director nor any other executive officer, nor any
associate of any Director or any other executive officer, was
indebted to the Company.
During the three years ended 31 March 2017 and as of 16 May
2017, the Company has not been a party to any other material
transaction, or proposed transactions, in which any member of the
key management personnel (including Directors, any other executive
officer, senior manager, any spouse or relative of any of the
foregoing or any relative of such spouse) had or was to have a
direct or indirect material interest.
DIRECTORS' RESPONSIBILITY STATEMENT
As set out above, this statement is repeated here solely for the
purposes of complying with Disclosure and Transparency Rule 6.3.5.
This statement relates to and is extracted from the 2017 Annual
Report.
Responsibility is for the full 2017 Annual Report not the
extracted information presented in this announcement and the final
results announcement.
Each of the Directors, whose names and functions are listed on
pages 48 and 49 confirm that, to the best of their knowledge:
- the consolidated financial statements, prepared in accordance
with IFRS as issued by the IASB and IFRS as adopted by the EU, give
a true and fair view of the assets, liabilities, financial position
and profit of the Group;
- the parent company financial statements, prepared in
accordance with United Kingdom generally accepted accounting
practice, give a true and fair view of the assets, liabilities,
financial position and profit of the Company; and
- the Strategic Report includes a fair review of the development
and performance of the business and the position of the Group
together with a description and carried out a robust assessment of
the principal risks and uncertainties that it faces.
The Directors confirm that they have carried out a robust
assessment of the principal risks of the Group.
The Directors are also responsible under section 172 of the
Companies Act 2006 to promote the success of the Company for the
benefit of its members as a whole and in doing so have regard for
the needs of wider society and stakeholders, including customers,
consistent with the Group's core and sustainable business
objectives. Having taken advice from the Audit and Risk Committee,
the Board considers the report and accounts, taken as a whole, is
fair, balanced and understandable and that it provides the
information necessary for shareholders to assess the Company's
position and performance, business model and strategy.
Neither the Company nor the Directors accept any liability to
any person in relation to the Annual Report except to the extent
that such liability could arise under English law. Accordingly, any
liability to a person who has demonstrated reliance on any untrue
or misleading statement or omission shall be determined in
accordance with section 90A and schedule 10A of the Financial
Services and Markets Act 2000.
By Order of the Board
Rosemary Martin
Group General Counsel and Company Secretary
16 May 2017
This document contains "forward-looking statements" within the
meaning of the US Private Securities Litigation Reform Act of 1995
with respect to the Group's financial condition, results of
operations and businesses and certain of the Group's plans and
objectives. Forward-looking statements are sometimes, but not
always, identified by their use of a date in the future or such
words as "will", "anticipates", "aims", "could", "may", "should",
"expects", "believes", "intends", "plans" or "targets". By their
nature, forward-looking statements are inherently predictive,
speculative and involve risk and uncertainty because they relate to
events and depend on circumstances that will occur in the future.
There are a number of factors that could cause actual results and
developments to differ materially from those expressed or implied
by these forward-looking statements. A review of the reasons why
actual results and developments may differ materially from the
expectations disclosed or implied within forward-looking statements
can be found under "Forward-looking statements" on page 217 of the
2017 Annual Report. All subsequent written or oral
forward-looking statements attributable to the Company or any
member of the Group or any persons acting on their behalf are
expressly qualified in their entirety by the factors referred to
above. No assurances can be given that the forward-looking
statements in this document will be realised. Subject to compliance
with applicable law and regulations, Vodafone does not intend to
update these forward-looking statements and does not undertake any
obligation to do so.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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