Page 15 - vodafone

Business Additional Vodafone Group Plc
Overview review Performance Governance Financials information 13 Annual Report 2013

Vodafone share price vs STOXX Europe 600 Index Cash returns to shareholders
1 April 2010 to 20 May 2013, in €, rebased to 100 Strong cash returns to shareholders are an established
140 priority for Vodafone. The ordinary dividend is the
core element of shareholder remuneration, with any
130 surplus capital distributed via special dividend or share
buybacks.
120
110
100 2010 £4.1bn
90
80 2011 £6.6bn
70 2012 £10.2bn
April 2010 April 2011 April 2012 April 2013
Vodafone share price STOXX Europe 600 Index 2013 £6.4bn
For legal reasons it should be noted that past performance cannot be relied on as a guide to future performance.

You can ind more information on our
remuneration policies on pages 67 to 82

You can ind more information on our
sustainability programmes on pages 36 and 37

with him a depth of insight into internet revised UK Corporate Governance Code a year Aligning management’s interests
businesses built up over nearly 20 years earlier than required. These include the Board’s to shareholders’
as a pioneer in the industry. conirmation that the report presents a fair, Our incentive schemes have a bias towards
Sir John Buchanan stepped down from balanced and understandable assessment long-term, share-based plans, which
his role as Deputy Chairman and Senior of Vodafone’s position and prospects, and an incentivise our leaders to prioritise multi-year
Independent Director in July 2012, after nine enhanced audit report. We have also adopted investment decisions and align their interests
years of dedicated service to the Vodafone some of the new disclosure requirements on closely with those of institutional shareholders.
Board. His experience was invaluable directors’ remuneration a year early. We deepened this alignment last year
to me personally in my irst year as Chairman, by introducing shareholding requirements
and I would like to thank him for his wisdom Strong capital discipline throughout the senior leadership team.
and commitment. I am delighted that The Board considers the ordinary dividend The Executive Committee owns Vodafone
Luc Vandevelde agreed to become Senior to be the core element of shareholder shares worth around 500% of their combined
Independent Director in Sir John’s place. remuneration, and something on which salaries in total.
Luc has also served on the Board for nine shareholders should be able to depend. This You can ind more information on our
year we raised our ordinary dividend per share
years, and has therefore reached the by 7% for the third year in a row, and remain remuneration policies on pages 67 to 82.
milestone after which the UK Corporate focused on at least maintaining the dividend
Governance Code recommends Boards per share at this level in the future. Vodafone’s role in society
take account of a director’s period of service
when considering whether or not he remains In addition, during the year we completed Mobile technology is a massive driver
independent. The Board considers that a £6.8 billion share buyback programme, of economic and social improvement.
it is not in the best interests of shareholders funded by the disposal of non-controlling Our vision is to unleash the power of Vodafone
to lose the experience of two such interests, and committed an additional to help transform societies and enable
distinguished international business leaders £1.5 billion to share buybacks on receipt sustainable living for all. Whether through
in close succession. of a further dividend from VZW in December low cost mobile banking services, mobile
agriculture solutions or mobile health
My medium-term ambitions for the 2012. We have demonstrated a highly initiatives, we are making a real difference
disciplined approach to capital allocation,
composition of the Board are to bring in further and will continue to manage our portfolio to people’s lives. We have also stepped
marketing expertise, and achieve a greater of assets in the best interest of shareholders. up our commitment to responsible and
gender balance towards our ambition of 25% ethical business practices in our new Code
of Board members being women by 2015. Taking ordinary and special dividends, of Conduct, published during the year.
and the buyback programmes, total cash
Take a lead in inancial reporting returns to shareholders have been equivalent You can ind more information on our
sustainability programme on pages 36 and 37.
This year’s annual report incorporates a to approximately 34% of our average market
number of new features to make our strategy capitalisation over the last four years.
and performance easier to understand, such Furthermore, in the period from 1 April
as our innovative move to incorporate a high 2010 to 20 May 2013, our share price has
level business review with our primary inancial outperformed the STOXX Europe 600 Index
statements (pages 90 to 97). In addition, we by 20.9%.
have adopted a number of aspects of the Gerard Kleisterlee
Chairman