Vodafone Group Plc
2022 Summary
Welcome to our 2022 Summary
We have adopted a digital first approach to our reporting reflecting how we operate as a business. Whilst the Annual Report continues to be a core part of our reporting suite, we use a simplified format and include links to interactive online content, such as videos. This online material brings to life what we do and how we do it, and provides you with a better overall understanding of our business.
We have also introduced new summaries at the start of each key section in the Annual Report. This document (the '2022 Summary)' is comprised of these summaries only and should be read in conjunction with our complete Annual Report.
We continue to publish a separate report that summarises our progress towards meeting the recommendations of the Task Force on Climate-related Financial Disclosures ('TCFD'), as well as a comprehensive addendum that includes data on Environmental, Social and Governance ('ESG') topics.
ESG reporting
We have also reported against a number of voluntary reporting frameworks to help our stakeholders understand our sustainable business performance. Disclosures prepared in accordance with the Global Reporting Initiative ('GRI') or Sustainability Accounting Standards Board ('SASB') guidance can be found in our ESG Addendum or on investors.vodafone.com.
vodafone.com | investors.vodafone.com/sasb | investors.vodafone.com/ |
esgaddendum | ||
investors.vodafone.com/tcfd | investors.vodafone.com | investors.vodafone.com/ESG |
References
The Annual Report and this 2021 Summary has been designed to aid navigation. We have cross-referenced relevant material and included navigation buttons that are 'clickable' when using the digital version of the Annual Report. Online content can be accessed by clicking links on the digital version of this Annual Report, copying the website address into an internet browser, or scanning the QR code on a mobile device.
Read more | Click to see related | Scan or click to watch | |||||||||
page reference | content online | related video content online | |||||||||
Contents | Contact details | ||||||||||
01 | Our strategic framework | Shareholder helpline | Media Relations | ||||||||
02 | About Vodafone | Telephone | vodafone.com/media/contact | ||||||||
+44 (0)371 384 2532 | |||||||||||
04 | Financial and non-financial performance | Sustainability | |||||||||
06 | Market and strategy | Investor Relations | vodafone.com/sustainability | ||||||||
08 | Business model | ir@vodafone.co.uk | Online Annual Report | ||||||||
10 | Purpose, sustainability and responsible | vodafone.com/investor | |||||||||
vodafone.com/ar2022 | |||||||||||
business | |||||||||||
12 Governance at a glance
Watch our video content
Our performance | Purpose pillars | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FY22 results | FY22 results | FY22 financial | Digital inclusion | Net zero | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
summary: | detail: | results: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nick Read, | Nick Read, | Margherita | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Chief Executive | Chief Executive | Della Valle, Chief | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Officer | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Our digital investor briefings | Responsible business | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vodafone Business | Digital Services | Vodafone | Data privacy | Cyber security | Human rights | Responsible | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
& Experiences | Technology | taxation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Our governance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jean-François | Valerie Gooding, | David Nish, | Amparo Moraleda, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
van Boxmeer, | Senior Independent | Chair of the Audit | Chair of the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Chairman | Director, Workforce | and Risk Committee | ESG Committee | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Engagement Lead | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
and Chair of the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remuneration | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Committee |
- Vodafone Group Plc Annual Report Summary 2022
Our strategic framework
Our strategy is focused on sustainable growth to drive returns
Our purpose: We connect for a better future
Inclusion for All | Planet | Digital Society | ||
Ensuring everyone has | Reducing our | Connecting | ||
access to the benefits | environmental | people and things | ||
of a digital society | impacts and helping | and digitalising | ||
society decarbonise | critical sectors | |||
Read more in | Read more in | Read more in | ||
our Annual | our Annual | our Annual | ||
Report on | Report on | Report on | ||
pages 36 to 40 | pages 41 to 44 | pages 44 to 45 | ||
Our vision: A new generation connectivity and digital services provider for Europe & Africa
Our strategy: Customer commitments
Best connectivity | Leading innovation | Outstanding digital |
products and services | in digital services | experiences |
Our strategy: Enabling strategies | ||
Simplified and most | Social contract | Leading gigabit |
efficient operator | shaping the | networks |
digital society |
Our advantage: Leading connectivity provider
Our people | Europe | Governance and |
and culture | & Africa | risk management |
The 'Spirit of | Two attractive regions | Strong frameworks |
Vodafone' | with scale | in place |
Read more in | Read more in | Read more in |
our Annual | our Annual | our Annual |
Report on | Report on | Report on |
pages 21 to 23 | pages 16 to 20 | pages 59 to 115 |
FY22 highlights
Our financial performance demonstrates our sustainable growth, despite broader macroeconomic challenges. Our results are in line with our expectations for the year and our medium-term ambitions.
Organic service revenue growth
- Good growth throughout FY22 in both Europe and Africa
- Improving YoY trend in 10 out of 11 European markets
FY22 +2.6% | ||||
3.3% | ||||
2.4% | 2.7% | |||
2.0% | ||||
0.8% | ||||
Q4 FY21 | Q1 FY22 | Q2 FY22 | Q3 FY22 | Q4 FY22 |
Adjusted EBITDAaL growth
- Our highest EBITDAaL margin of last decade
- Good improvement on pre-pandemic levels
+5.0%1 | ||||
€13.9bn | €14.9bn | €14.4bn | €15.2bn | |
33.1% | 33.4% | |||
32.8% | ||||
31.9% | ||||
FY19 | FY20 | FY21 | FY22 | |
Note: |
1. Organic growth. See page 223 of our Annual Report for more information.
ROCE inflection
- Significant ROCE step-up on pre-pandemic level
- EBITDAaL growth driving sustainable ROCE improvement
+170bps | |||
6.3% | 7.2% | ||
5.5% | |||
5.1% | |||
H1 FY21 | H2 FY21 | H1 FY22 | H2 FY22 |
Pre-tax ROCE (LTM)
FY22 Adjusted FCF | Full year dividend |
ahead of guidance | per share |
€5.4bn 9.0
eurocents
Read more in our Annual Report on pages 24 to 33
2 | Vodafone Group Plc |
Annual Report Summary 2022 |
About Vodafone
A new generation connectivity and digital services provider
How we are structured
We recognise the importance of local, in-market scale and capabilities, but also drive further value from our Group scale and breadth of our footprint.
Infrastructure assets
Passive mobile | Active mobile | Fixed network |
€16.2bn | >180,000 | 1.6m |
market capitalisation1 | radios2 | kilometres of fibre |
and coaxial3 |
Shared operations
Supplier | Network & digital | Inter-network |
management | operations | operations |
>€600m | >€400m | >€250m |
savings p.a. | savings p.a. | revenue and |
savings p.a. |
Growth platforms
Digital services | Internet of Things | Financial services |
>50m | 150m | 52.4m |
Customers subscribed | IoT SIM connections | M-Pesa customers4 |
to a digital service | (FY21: 123 million) | (FY21: 48.3 million) |
Retail & service
Where we operate and what we sell
Our retail and service operations are split across three broad business lines: Europe Consumer, Vodafone Business and Africa Consumer.
Our biggest market is Germany.
Share of service revenue | ||
Europe | Vodafone | African |
Consumer | Business | Consumer |
52% | 27% | 16% |
Europe Consumer
We provide a range of market leading mobile and fixed-line connectivity services in all of our European markets, enabling customers to reliably call, text and access data on their mobile devices, or access broadband, TV and voice services at home.
Our converged plans combine these offerings, providing simplicity and better value for our customers. Other value added services include our Consumer IoT propositions, as well as security and insurance products.
Vodafone Business
We serve private and public sector customers of all sizes with a broad range of connectivity services, supported by our dedicated global network.
We have unique scale and capabilities, and are expanding our portfolio of products and services into growth areas such as unified communications, cloud & security, and IoT.
African Consumer
We provide a range of mobile services, enabling customers to call, text and access data. The demand for mobile data is growing rapidly driven by the lack of fixed broadband access and by increased smartphone penetration.
Together with Vodacom's VodaPay super-app and the M-Pesa payment platform, we are the leading provider of financial services, as well as business and merchant services in Africa.
Our products and services
Core connectivity products and services in fixed and mobile account for the majority of our revenue. However, we are constantly expanding our portfolio into high return growth areas, such as digital services, the Internet of Things ('IoT') and financial services, that leverage and complement our core connectivity business.
Europe | Vodafone | Africa |
Consumer | Business | Consumer |
€20bn | €10bn | €6bn |
service revenue | service revenue | service revenue |
Notes:
- Market capitalisation at 31 March 2022.
- Group including VodafoneZiggo and Safaricom.
- Group including Safaricom.
- Africa including 100% Safaricom.
Service revenue
Core connectivity | 87% | |||
Growth platforms | 13% | |||
Digital services | 10% | |||
IoT | 2% | |||
Financial services | 1% | |||
Service revenue |
€38.2bn |
3 | Vodafone Group Plc | |
Annual Report Summary 2022 | ||
How we govern | How we measure success | |
Our business model is underpinned by our strong | We track a range of measures that reflect our financial, | |
governance and risk management framework. | operational and strategic progress and performance. | |
Governance
The Board held seven scheduled meetings this year to discuss key strategic matters, our purpose and culture, our people and stakeholder interests.
The Nominations and Governance Committee evaluates the composition and performance of the Board and ensures an appropriate balance of independence, skills, knowledge, experience and diversity.
The Audit and Risk Committee provides effective governance over the appropriateness of financial reporting of the Group, including
the adequacy of related disclosures, the performance of the internal audit function and the external auditor and oversight of the Group's systems of internal control, risk management framework and compliance activities.
The Remuneration Committee advises the Board on policies for executive remuneration and reward packages for individual Executive Directors. The Committee also oversees general pay practices across the Group.
The Environmental, Social and Governance ('ESG') Committee oversees our ESG programme, including our purpose pillars, sustainability and responsible business practices, and our contribution to the societies we operate in under our social contract.
Read more in our Annual Report on pages 80 to 92
Click or scan to watch our Chairman andNon-ExecutiveDirectors speak about their roles in short video interviews: investors.vodafone.com/videos
Financial targets
The Group provides guidance on Adjusted EBITDAaL1 and Adjusted free cash flow1.
Senior management incentive plans include the following measures: organic service revenue; adjusted EBIT; adjusted free cash flow; customer appreciation metrics; relative total shareholder return; and ESG measures.
Read more in our Annual Report on pages 110 to 112
Return on capital employed ('ROCE')
This is a key focus for the Group and reflects how efficiently we are generating profit with the capital we deploy. Our goal is for ROCE to exceed our cost of capital through consistent revenue growth, ongoing margin expansion, strong cash flow conversion, and disciplined allocation of capital.
Read more in our Annual Report on page 32
Operational metrics
We have a number of commercial metrics that are used to monitor our progress against our key strategic priorities and reflect the strong underlying momentum across the business.
Read more in our Annual Report on page 16
Risk management
Risks are not static and as the environment changes, so do risks - some diminish or increase, while new risks appear. We continuously review and improve our risk processes in order to ensure that the Company has the appropriate level of support in meeting its strategic objectives.
Our risk framework clearly defines roles and responsibilities, and sets out a consistent end-to-end process for identifying and managing risks. We have embedded the risk framework across the Group as this allows us to take a holistic approach and to make meaningful comparisons.
Our approach is continuously enhanced, enabling more dynamic risk detection, modelling of risk interconnectedness and the use of data, all of which are improving our risk visibility and our responses.
Our Board oversees principal and emerging risks, which are reported to the various management committees and the Board throughout the year. Additionally, risk owners are invited to present in-depthreviews to ensure that risks are managed within the defined tolerance levels.
Social contract
We monitor the success we have in shaping a healthier industry structure that is pro-investment, supportive of returns, and helps build a resilient, inclusive and sustainable digital society.
Read more in our Annual Report on pages 6 and 9
Sustainability metrics
Our metrics are aligned to the three pillars of our purpose and the individual initiatives that underpin each pillar.
- Inclusion for All: Rural connectivity, our commercial propositions for equality, and workplace equality.
- Planet: Our carbon footprint across our full value chain, enabling our customers to reduce their own emissions, and e-waste.
- Digital Society: Supporting SME and the digitalisation of critical sectors, such as agriculture and healthcare.
Read more in our Annual Report on pages 59 to 67
Click or scan to watch our privacy and cyber experts explain how we protect customer data and our networks: investors.vodafone.com/videos
Note:
Read more in our Annual Report on pages 34 to 45
Click or scan to watch short videos showing how we help improve digital inclusion and how we plan to reach net zero by 2040: investors.vodafone.com/videos
1. Adjusted EBITDAaL and Adjusted free cash flow are non-GAAP measures. See 'Non-GAAP measures' on page 223 of our Annual Report for more information.
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Vodafone Group plc published this content on 22 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 June 2022 17:14:03 UTC.