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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 20-F
(Mark One)
REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
_ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2020
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of event requiring this shell company report . . . . . . . . . . . . . . . . . . .
For the transition period from
to
Commission file number 001-10086
VODAFONE GROUP PUBLIC LIMITED COMPANY
(Exact name of Registrant as specified in its charter)
(Translation of Registrant's name into English)
England (Jurisdiction of incorporation or organization)
Vodafone House, The Connection, Newbury, Berkshire RG14 2FN, England (Address of principal executive offices)
Rosemary Martin (Group General Counsel and Company Secretary) tel +44 (0) 1635 33251 email ir@vodafone.co.uk
Vodafone House, The Connection, Newbury, Berkshire RG14 2FN, England
(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)
Securities registered or to be registered pursuant to Section 12(b) of the Act.
Title of each class
Ordinary shares of 20 20/21 US cents each American Depositary Shares (evidenced by American Depositary Receipts) each representing ten ordinary shares 2.500% Notes due September 2022 2.950% Notes due February 2023 3.750% Notes due 16 January 2024 US$1,000,000,000 Floating Rate Notes due 16 January 2024 4.125% Notes due 30 May 2025 4.375% Notes due 30 May 2028 6.250% Notes due February 2032 6.150% Notes due February 2037 5.000% Notes due 30 May 2038 4.375% Notes due February 2043 5.250% Notes due 30 May 2048 4.875% Notes due 19 June 2049 4.250% Notes due 17 September 2050 5.125% Notes due 19 June 2059 Capital Securities due April 2079
Trading symbols
VOD
VOD VOD22 VOD23 VOD24
VOD24A VOD25 VOD28 VOD32 VOD37 VOD38 VOD43 VOD48 VOD49 VOD50 VOD59 VOD79
Name of each exchange on which registered
NASDAQ Global Select Market*
NASDAQ Global Select Market The NASDAQ Stock Market The NASDAQ Stock Market The NASDAQ Stock Market
The NASDAQ Stock Market The NASDAQ Stock Market The NASDAQ Stock Market The NASDAQ Stock Market The NASDAQ Stock Market The NASDAQ Stock Market The NASDAQ Stock Market The NASDAQ Stock Market The NASDAQ Stock Market The NASDAQ Stock Market The NASDAQ Stock Market The NASDAQ Stock Market
Securities registered or to be registered pursuant to Section 12(g) of the Act.
None (Title of Class)
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.
None (Title of Class)
Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period
covered by the annual report.
Ordinary Shares of 20 20/21 US cents each
27,230,375,568
7% Cumulative Fixed Rate Shares of £1 each
50,000
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. _ Yes No
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
Yes _ No
Note -- Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
_ Yes No
Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.
_ Yes No
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the
preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). _ Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of "large accelerated filer," "accelerated filer," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer _
Accelerated filer
Non-accelerated filer
Emerging growth company
If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the
registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
The term "new or revised financial accounting standard" refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
U.S. GAAP
International Financial Reporting Standards as issued
by the International Accounting Standards Board _
Other
If "Other" has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.
Item 17 Item 18
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes _ No
Common Stock 00
Vodafone Group Plc Annual Report on Form 20-F 2020 We connect for a be ter future
Weilncfoomrmeatotioonur232092A0lAtenrnnautaivleRpeeprofrotrOmvanercveiemwea0s1urOeusr2s4t8raStehgaircehfroalmdeerwionfrkor0m2aHtioignh2li5g5htHsiosftotrhyeaynedard0ev4eClohpamirmenatn2'5s6stRateegmuelanttioSntr2at6e5gFicoRrmep2o0r-tF06crOosusrrbeufesrinenescseagtuaidgela2n6c8e F0o8rKwearydt-rleonodksinsghasptaintegmoeunrtsin2d6u9stDryef1i0niOtiounr boufstienremsss 2m7o2dSelel1e2ctOedurfisntaaknecihaollddaetras T14hiCs hcioenfsEtixtuetceustitvhee'sanrnevuiaelwre1p6orOt ounr pFuorrpmos2e02-F0 OofuVr sotdraatfeognye 2G6roOuuprPklecy(tpheerf`oCrmomanpcaenyin')diicnaatoccrsor2d8anCcheiewfiFthintahnecriaeql uOifrfeimceern'stsroevf itehwe U30SOSeucrufrinitaiensciaanldpEerxfochrmanagneceC4o0mSmuisstsaiionnab(tlheeb`uSsEinCe's)sf5o2r tDheevyeeloarpienngdeadn3ew1 M`saorccihal'20c2o0ntarancdt i5s6daOteudr p2eJoupllye 2a0n2d0c.uTlthuirsed6o2cuPmriennctipcaolnrtiasiknsfaccetrotrasinanindfournmcearttiaoinntsieetsoGuotvweirtnhainnctehe72CComhapiarmnya'ns'asngnouvaelrrneapnocret isntaatecmcoerndtan74ceBwoiatrhdIlnetaedrnearstihoinpaalnFdinCaonmcipaalnRyeppourrtpionsgeS7t5anDdiavridssio(n`IFofRrSe's)paosnsisibsuileidtiebsy7t6heBIonatredrnoaftiDoniraelcAtocrcso7u8nEtixngecSuttaivnedaCrodms Bmoiattrede (8`0IABSoBa'r)d. Tachteivciotineste8n2t oEfntghaegGinrgouwpi'tsh wouerbssittaek(ewhowldwe.rvso8d4afIonndeu.ccotimon),odreavneylooptmheerntwaenbdsietevarelufeartieonnce8d7iNnothmisindaoticounms eanntdisGnoovteirnncaonrcpeoCraotemdminitttoeeth9i0s dAoucduimt aenndt aRnidskshCooumldmniottteebe96coRnesimdeurneedrattoiofnorCmopmamrtiottfeteh1is00anEnxueaclurteipvoerpt aoynaFtoarmgla2n0c-eF.1W02eRheamveuninecrlautdioendPaonlyicwye1b0s8iteAansnuanaliRnaecptoivrteotenxRtueaml urenfeerraetniocne o12nl1yO. AulrlUamS oliustnitnsgmrearqkueirdewmietnhtsan12"2*"Drierpercetosersn't roerpgoarntiFc ignraonwctihalsw1h2ic4hRperpeosertnitnsgpoeurfrofrimnaanncciealopnearfcoormmapnacraeb1le25baDsiirse, cbtootrhs'insttaetremmseontf omferregseproannsdibailcitqyui1s2it7ioRnisakctmiviittiygaatnidonm1o3v6emReepnotsrtisnofforIenidgenpeenxcdhenant gReergaitsetesr.eOdrPgaunbilcicgArocwcothunistianng aFlitremrnsa1ti4v1e Cpeornfsoorlmidaantceedmfienaasnucriea.l Ssteaete"mAeltnetrsnaantidvenopteersfo2r3m1aTnhceismpaegaseuirseisn"teonntipoangaell2y3l9eftfobrlafunrkthOetrher details and reconciliations to the respective closest equivalent GAAP measure. Exhibit 2.3 Exhibit 2.7 Exhibit 2.8 Exhibit 4.5 Exhibit 4.6 Exhibit 4.8 Exhibit 4.28 Exhibit 4.29 Exhibit 4.30 Exhibit 4.31 Exhibit 4.32 Exhibit 4.33 Exhibit 4.34 Exhibit 4.35 Exhibit 4.37 Exhibit 12 Exhibit 13 Exhibit 15.1 Exhibit 15.2 Who we are: A leading technology communications company keeping society connected and building a digital future for everyone. Sustainability is at the core of our purpose: `We connect for a better future' We are optimistic about how technology and connectivity can enhance the future and improve people's lives. Through our business, we aim to build a digital society that enhances socio-economic progress, embraces everyone and does not come at the cost of our planet. That is why we have committed to improve one billion lives and halve our environmental impact by 2025.
Overview Strategic Report Governance Our strategic framework Financials Other information Focused on two scaled and differentiated regional platforms the ...enabling us to earn a fair return on our investments factors and and culture How we do it: Our approach Sustainable business 40 Read more Developing a new `social' contract 52 Read more The `Spirit of Vodafone' our people 56 Read more Principal risk uncertainties 62 Read more Governance 72 Read more Optimising portfolio to strengthen our market positions, simplify the Group and reduce our financial leverage 25 Read more Improving asset utilisation through network sharing, capturing synergies and tower monetisation 24 Read more Accelerating digital transformation by being Digital `First' and leveraging our Group scale 23 Read more Deepening customer engagement improving loyalty and driving revenue growth across our customer segments 20 Read more What we do: Our strategy A technology communications leader, enabling an inclusive and sustainable digital society Supported by our leading Gigabit networks and scaled platforms Our priorities: Europe A converged leader Africa Mobile data and payments leader Why we exist: Our purpose We connect for a better future We aim to improve one billion lives and halve our environmental impact 01 Vodafone Group Plc Annual Report on Form 20-F 2020
Annual Report on Form 20-F 2020 Highlights of the year 2020 IFRS 15/16 2019 IFRS 15/IAS 17 2018 IAS 18/IAS 17 2017 IAS 18/IAS 17 Financial results summary1 Alternative performance measures1,2 Strategic progress summary 2020 2019 2018 2017 Deepening customer engagement Accelerating digital transformation Improving asset utilisation Sustainable business metrics 2020 2019 2018 2017 Notes: 1 IFRS 16 "Leases" was adopted on 1 April 2019 for our statutory reporting, without restating prior period figures. As a result, 4 5 6 7 8 Including VodafoneZiggo. the Group's statutory results for the year ended 31 March 2020 are on an IFRS 16 basis, whereas the comparative periods for the years ended 31 March 2019, 2018 and 2017 are on an IAS 17 basis. Note 1 "Basis of preparation" of the consolidated financial statements explains the key differences for the Group's accounting for leases following the adoption of IFRS 16 and the financial impact on the Africa including Safaricom. Europe and common function operating costs. Excludes Egypt. Group's consolidated statement of financial position at 1 April 2019. Excluding the impact of inactive data only SIM losses in Italy during Q3 and Q4 FY20. 2 Alternative performance measures are non-GAAP measures that are presented to provide readers with additional financial information that is regularly reviewed by managemmoebnitleancdonsthroacutldcunsottobmeevrsi4ewmeidlliionnis6o4la.4tio6n3.o2r62as.4a6n1.a7ltEerunraotpiveebtrooathdebaenqduicvuaslteonmt eGrAs4AmPilmlieoansu2r5e.s0.1S8e.e81"A7.8lte1r3n.a4tiEveurpoeprefoornm-annetceGmigeaabsiutrceasp"aobnlepcaognen2e3c9tiofnosr4fumrtihlleironde3t1ai.l9s.231.A91d0ju.5s6te.8d tEoueroxpceluCdeondseurmiveatrivcoengvaeirngseidn ccuassthomfloewrs4hemdiglleiornes7e.r2ve6s.,6c5o.3rr3e.s7poEnudrionpgelmososbeislefocrownthriaccht caurestnoomterreccohgunrnis%ed1o4n.6t8he15b.o5n1d5s.9w1i5th.6inAnferitcdaedbattaanudsewrhs5icmh iallrieosnig8n2i.f6ic7a5n.t6ly72in.4c6re4a.6seMd -dPueesatotrCanOsVacIDtio-n19vorelulamteed5mbailrlkioent c1o2n.2di1ti1o.n0s8..9M6-P.4esBaucsuinsetossmfeirxse5dm-liilnlieosnesrv4i1c.e5 r3e7v.e1n3u3e.0g2ro9w.5thW%o3m.e3n3i.n82m.4a4n.a4gIeomTeSnItMancdolnenadecetrisohnisp mroilleliso%n 13012.39183402.996A8d.4d5it2i.o1nGalrofeumpasleervcuicsetormeveernsuine Amfri3c7a,8an7d1 T36u,r4k5e8y451,7,0m66il4li2o,n9s879.A3 d9j.u4s4te.d8 3E.B2IYToDuAngmpeo14pl,8e8s1up1p3o,9rt1e8d1t4o,7a3c7c1es4s,1d4ig9iAtadl jsuksitlelsd, eleaarrnnininggs apnedr sehmapreloycm5e.n6t0o6p.p2o71rt1u.n5i9ti8e.s0t4hFoureseancdassh70fl8o.w2 5(3pr3e.7-specGtrruemen)hmou5se,7g0a0s5e,m44i3ss5i,o4n1s7(4S,0c5op6eF1reaencda2sh)mflotownnems C4,O9429e 41,.4814124.,001424.037,32.1063NPeutrcdheabstedme(l4e2ct,1ri6c8it)y3f(r2o7m,0r3e3n)ew(2a9b,6le31so)(u2r9c,e3s3%8) 2N5e.9t d1e5b.6t 1to5.a4d1j3u.s3teNdeEtwBoITrkDwAarsatteiore2u.s8e3d1o.9r r2e.c0y2c.l1edP%re-9t9a.x9returnAovnercaagpeitEaul reomppelmoyoendth(lcyonmtrooblilleedd)a%ta6u.s1ag5.e3per cGursotuopmreervGenBu5e.7m3.4742,9.6741.473E,6u6r6op4e6,T57o1w4e7r,6si3te1sO(ppreorpatoirntgiopnraotefi)t/t(hloosuss)anmd 4c.,06909(951E)u4ro,2p9e9o3n,7-n25etPNroGfNit/(blroosas)dbfoarndthpeeyneeatrratmion(445%5)3(70,624842)822,678E8u(r6o,p0e79n)etBoapseicx esaarvniinngg6s/(blonss0).4pe0r.4s0h.a3reEcu(r3o.p1e3)di(g2i9ta.0l5c)h8a.n7n8e(l2s2a.l5e1s)mTioxta%l d2i1vi1d7e1n1d9s pFerreqsuhaenrecycof9.c0u0st9o.m00er1c5o.0n7ta1c4t.s7c7o0n2taVctosdpaefronyeeaGr r1o.u4p1P.5lc1.7 1.8 MyVodafone app penetration % 65 626055 Europe
Overview Strategic Report Governance Financials Other information Strategic highlights quarter of improved customer loyaltyData users Fixed-line service revenue growth in mobile contract 2.0GB103 million NGN broadband net additions +4.4 million+23% year-on-year (44% of mobile customers using M-Pesa)first mover for mobile edge computing Converged consumer customers in Europe sales now in digital channels consumer customers on simplifiedEurope net opex saving achieved 65% data plans new Europe net opex saving target reduction in frequency reducing our total European opex base Signed a memorandumdifferentiated regional platforms on potential Egypt sale for Optimising the portfolio Successfully acquired Unitymedia & CEE cable assets, as well as Abcom in Albania Completed the sale of New Zealand and Malta Australia merger with TPGSimplification of the Group on-track to complete now largely complete Focused on two scaled and of understanding with stc Europe and Africa 2.2 billion 25 Read more Improving asset utilisation Mobile network sharing European TowerCo agreements in place in all operational as of May, major European markets aiming to drive efficiencies and increase tenancy ratios across our tower portfolio Merger of Vodafone ItalyFast start made Towers and INWIT complete in capturing synergies 2.35 billion of cash received from the recently acquired 24 Read moreUnitymedia & CEE cable assets Accelerating digital transformation0230 Read more Leveraging newRadical Delivering a best-in-class digital technologies:simplification:cost structure: 21%4.0 million0.4 billion speed-tiered unlimited mobilein FY20 MyVodafone app penetration>1.0 billion 9%announced for FY2123 of customer contact by 20% over five years Deepening customer engagement20 Read more 6th consecutive +7.0 million+3.3% churn down 1pp year-on-year +1.4 millionAverage smartphone data usage IoT SIMs 7.2 millionM-Pesa customers Amazon Web Services agreement Business Africa Europe 03 Vodafone Group Plc Annual Report on Form 20-F 2020
Annual Report on Form 20-F 2020 Chairman's statement Enabling a digital society The outbreak and spread of COVID-19 has impacted all of our lives in ways we could not have imagined when I wrote to you this time last year. I am immensely proud of our 104,000 strong team of dedicated people across all of the markets in which we operate. The determination, delivery and devotion from the whole Vodafone team is enabling our digital society to function and succeed during this intense period of need. Our customers have relied on the critical connectivity we provide more than ever before. The services and solutions we provide have helped businesses to continue to operate, children to continue schooling, healthcare to be provided and ensured governments can lead the response effectively. Also during periods of physical isolation, we have enabled families, friends and loved ones to remain connected. We connect for a better future Given the situation we have all experienced over the last few months, Vodafone's purpose to connect for a better future has become even more central in our decision-making process and response. In November 2019, we held an event for institutional investors to further set out our purpose, which we framed across three core areas: Digital Society We believe in a connected digital society, where data flows at speed, connecting people, communities and things to the internet like never before. Inclusion for All We believe that the opportunities and promise of a better digital future should be accessible to all, and we are committed to ensuring that the more vulnerable are not left behind on the journey to that future. Planet We believe that urgent and sustained action is required to address climate change and that business success should not come at a cost to the environment. During the year, we have made strong progress against each of these areas, which is set out later in thbiussrienpeossrte.sT, hhaerddwigaitrael msoacniuetfyachtuasrenres,vteercbheneonlosgoyimfirpmorst,asnetrtvhiacne ipnrothviedlearsstafnewd rmegounltahtsorasntdhrwoeugwhiolluct oonutrineuceostyoswteomrktowditrhivpeoilnicnyovmaatikoenrsanandddreelgivuelrattohresdinigaitaclosnosctriuetcyti.v0e4mVaondnaefrotnoeeGnsrouurepwPelccan continue to invest in the critical infrastructure and digital services our society deserves. We also expanded upon our proposal of a `social' contract between the communications services and technology providers, our customers and the industry regulators. The `social' contract comprises three broad commitments: 1. Trust: earning and retaining customer trust through quality networks and fair pricing, whilst avoiding micro-regulation; 2. Fairness: enabling us to deliver quality infrastructure for all, whilst earning a fair return; and 3. Leadership: partnership between small
Overview Strategic Report Governance Financials Other information Strong strategic progress Following the evolution of our strategy under Nick Read, we have delivered significant progress over the last year. With the completion of the acquisition of Liberty Global's assets in Germany and Central and Eastern Europe in July 2019, we have completed our transformation into Europe's leading converged operator. Furthermore, during the year we delivered strong progress against our key strategic objectives: In the UK, we returned to service revenue growth supported by our strong commercial momentum in both mobile and fixed line. In both Italy and Spain, trends improved throughout the year despite the significant low-end price competition, and in Africa we continued to grow despite regulatory and macro pressures. This strong commercial momentum was supported by further progress on our ambitious cost saving programme. During the year, we delivered a further 0.4 billion of savings. Over the last two years, we have worked hard to strengthen our financial position. This has ensured we have longer tenure debt, no significant short-term refinancing needs and good liquidity headroom. The good financial performance, strong commercial momentum and robust financial position mean that the Board have confidence to declare aimtoptarlodvievdidtheendqupaelritsyhaarnedoefx9p.e0r0ieenucreocoefnstesrvfoicrethfoeryoeuarr,ciumsptolyminergsainfibnoatlhdEivuidroepned apnedr sAhfarriecao,ffo4r.5beouthrobcuesnitnsewsshaicnhdwcoilnlsbuempearisd. Aoncc7elAeruagtuinsgt 2d0ig2i0t.alJetraann-sFfroarnmçaotiisovnaWn Be ohxamveeefurrwthiellr sstterpendgotwhenneasd CouhriedfigEixtaelccuhtiavnenoefl cHaepianbeiklietnieisn, wJuhniech20d2el0ivaefrtesra1b5eytteearresxipnerroielencaendfo3r6ouyreacrusswtoimthetrhs,ewcohimlsptaanlsyo. Irnedthuactinpgeroiourd,cJoesatsn.-IFmrapnrçooviisngtraansssfeotrumtielidsaHtieoinneWkeenhianvtoe caotmruplylegtelodbaalnuormgbanerisoaftinoentwthorrokugshhaaribnaglaanrcraenogfemstreanttesgaicndtraimnsparcotvioendsoaunrdreotrugrannoicngcraopwittahl. aTnhdelseuvcecraegsseothfrhoiusgshtraatseugcycreesssufultledinifnraastnruecatrulyretharseseeftosladleinicnrIetaaslye.inBoHaeridneckoemnp'sossihtiaorne AprsicIeaanntidcihpeatiesdcriendmiteydlewttiethr tcoreyaotuinignsliagsntiyfiecaarn'st sAhnanreuhaollRdeerpovratl,usei.nJceeaInh-Farvaennçooiws icsoammpleemtebdenr ionfethyeeaSrshaornehthoeldBerosaCrdoamsmeaitrtcehe owfaHs ecnoknedluacnteddadnuorinn-gextheceupteivreioddirceocvteorreodfbMy othnidseRleezpIonrttetronafitniodnmaly. HsuecwceilslsjoorinasHCehinaeirkmenanH. oVladlienrgieaGs aooNdoinng-E, oxuercuSteivneioDr IirnedcetpoernindeJnutnDe i2r0ec2t0o.rH, leedisaVsiucbec-oCmhamirimtteaenoofftthheeNEoumroipneaatinonRso&unGdtoabvelernoafnIcnedCusotmriamliistttseean(edxicnluthdiisngromleeh)ains ltehdisdwisocruks.sFiounrsthweritihntfhoermEautrioopneoann tChoemsemaricsshiopnroaccersosssisadreasncgriebeodf iosnsupeasg. eJe8a8n.-FTrhaençseoaisrcbhriwngass tshuicsceexsspfeurlieanncdeI, taomgepthleearswedithtohains nleoaudnecreshthipe sakpipllosinantmdeenxtcoefllaenntenwetNwoonrk-EtxoeVcuotdivafeoDneir'escBtoora,rJde.aJne-aFnr-aFnrçaoniçsovisa'nbBioogxrmapeheric, awlhdoe,tasiulsbjaercet ptorohviisdeeldecotniopnaagteo7u7r.2I0a2m0 cAoGnfMid,ewntiltlhsautchceeewdilml ebeasefCfehcatiirvme ainn loefatdhiengByooarudr wBoitahrdef,fdercitvfinrogmVcoldoasfeoonfebfousrwinaersds ionnt3heNeoxveecmutbioenr 2o0f2it0s. sTtrhaeteygeyaraanhdeeandgTaghienBg owairtdh aonudr kIereymstaaiknefhoocludseerds.oDnedeepleivnienrgincguosntoomuerrpeunrgpaogseemoefnctoWnneechtainvge cfoornasibsteetntetlry
future. A digital future that will drive further improvements in commercial performance and return on capital, making Vodafone the best value proposition in our industry for customers, shareholders and wider stakeholders. /s/ Gerard Kleisterlee Gerard KleisterlceoesCt ohaf iormurapnlaOnpetti.mWiseinhgavtheempaodrtefostliroonFgopllroowgrinesgssaugcacienssstfuolurdifsopuorssatlrsaotefgNicewpriZoeriatliaens:d1a.nDdeMepaelntainagndcuosntogmoienrgeancgtaivgietymienntE2g.yAptcacnelderAautisntgradliiag,itwalethraanvsefonromwatsiuobns3ta.nItmiapllryovcionmgpalsesteetdutthileisraetsihoanp4in. gOopftiomuirsibnugsithneespsotrotffoolciousWoen htwavoesdceallievperlaetdfoarmgosoidn fEinuaroncpiealanpderAfofrrmicaan. cGeoiondFfYin2a0n,crieafllpecetrifnogrmthaenucendIneralycinhgallimenpgrionvgeimndeunsttirny oaunrdcaogmaimnsetrcaiablamckodmroepntoufmu.nEpnreacbeldinegntuesdtgolodbelailvuerncoenrtoauinrtpyu, rwpeosdeealinvdereendsugroeowd efinacant creiaslpopenrsfiobrlmy aanndcew, iinth-liinnteegwriitthyowuhregruevidearnwcee.oTpoetraaltere. vWeneuaeregrceowmbmyit3te.0d%totdooi4n5g.0oubrilulitomno, satdtjousstuepdpEorBtIsToDciAetygrdeuwrinbgy t2h.6is%p*ertiood1o4f.u9nbciellritoaninatyndanfrdeesoccaisahl cfhloawng(ep.rAe-sspaercetsruumlt )wgereawnnboyun4c.7ed%atorap5id.7, cboilmliporne.hTehnissivgeoaonddficnoaonrcdiianlapteerdfofirvmea-pnocienwt palsandrtiovehnelbpythsterocnogmcmoumnmitieersciianlwmhoimchenwteumopienraetaec.h3o0fRoeuardmmaorkreetRs.eIandGmeormrea4n0y,1o6uRr elaardgemsot rmea2r0keRt,ewademdeolrieve5r4edRseoaldidmroetraeil05grVowodthafaonnderGecroorudpcPalbcleAnnentucaul sRtoempoerrtaodndFitioornms2in0-HF22.0O2u0r purpose Our strategy Our performance Our sustainable business Our response to COVID-19 We connect for a better future. We are working hard to build a connected society that enhances socio-economic progress, embraces everyone and does not come at the
Annual Report on Form 20-F 2020 Our business at a glance Where we operate We manage our business across two scaled and differentiated regional platforms Europe and Africa. Tanzania Germany Italy Turkey Greece Portugal UK Mozambique Vodacom Germany 10.7bn 77% 16% 1.6bn Other Italy 4.8bn Proportionate sites European TowerCo c. 60,000 includes partner markets and common functions partner countries 5G cities reach beyond the named us as a global in over 100 cities we have partnership services, including our markets. local operators Wide Area Networking we can currently Notes: 1 Based on our financial reporting segmentation which excludes Turkey. 2 As at December 2019. 3 % of consumer broadband customer base that is converged. 4 Due to the converged nature of the Spanish market only total communications market shares are reported. 5 Including eliminations. 6 Includes Turkey. 7 Effective ownership in Safaricom, with Vodacom owning 34.94% and Vodafone, owning 4.99% directly. 8 Following the sale of 4.3% of INWIT's share capital in April 2020. 9 Effective ownership in Indus Towers, with Vodafone directly owning 42% and Vodafone Idea owning 11.5%. Worldwide reach 43182>100 markets with SD-WAN We have To extend ourIn 2020, Gartnerlaunched 5G companies we own,leader in network across 11 of agreements withSoftware Defined in 43 countries.(`SD-WAN') where service 182 countries. Joint ventures and associates Mobile FixedFixed Consumer Mobile revenue broadband revenue converged Convergence customers market share customers market share customers penetration (m)(%)2 (m)(%)2 (m)(%)3 VodafoneZiggo 5.128.03.440.41.4 41.0 (50% owned) Vodafone Idea 297.028.00.3 (44.4% owned) Vodafone5.417.1 0.1 Hutchison (50% owned) Safaricom 35.60.1 46.(6206..112%1.o9wnnmedI)ta7lyS1it9e.s2I3N2W.32I.T9 (1303..621%.0o4w3.n8eEdg)8ypct. 4202.,200309.I0nd0u.7s1T8o.8w1e.0rsU(4K71%8.0o2w0n.e5d0).89 6c..9120.74,05050.4COothnetrroAllferdicoap4e7r.a4tinomns0.A1 2co2n.2v1e5r.g6edSpleaainde1r3M.5o1b6i.l2e4d3a.t2a1a6n.d24p2a.y3m9e1n.6tsOletahdeerrEAulrboapnei2a9H.5unngma4ry.0Rnomm0a.6ni1aV6.o8d7a%coomf GGrroouupp:sEergvyipcteCrezveecnhuRee6pOubthliecr IAreflraicnadESupraoinpeSo0u6thVAodfraifcoanGe hGarnoaupDPemlcocratic Republic of Congo Lesotho 4.5bn Other markets5 of Group of Group service revenue1 service revenue Europe5 4.8bn UK 5.0bnSpain 3.9bn Mobile FixedFixed Consumer Mobile Fixed Mobile revenue broadband revenue converged ConvergenceMobile revenue broadband DataM-Pesa customers market share customers market share customers penetration customers market share customers customers customers (m)(%)2 (m)(%)2 (m)(%)3 (m)(%)2 (m)(m)(m) Germany 30.130.510.834.9 1.513.4South Africa45.1
Overview Strategic Report Governance Financials Other information What we offer We offer a range of communication services to both consumers and businesses. of service revenue1 of service revenue of service revenue of service revenue6 Business28% Other 8% We offer mobile, fixed and a suite of converged communicationWe rent capacity to mobile virtual network operators (`MVNOs'), services to support the growing needs of our business customers,who use this to provide mobile services. We also offer a variety who range from small home offices to large multinational companies.of services to operators outside our footprint through our partner Internet of Things (`IoT') market agreements. Cloud & Security Carrier services Other Business Our wide range of products and services Europe 52% Africa12% MobileMobile We provide a range of mobile services, enabling customers toWe provide a range of mobile services, enabling customers to call, call, text and access data whether at home or travelling abroad.text and access data. The demand for mobile data is growing rapidly As Europe moves towards 5G, our ambition is to maintain adriven by the lack of fixed broadband access and by increased co-leading network position in each of our markets.smartphone penetration. Fixed broadband, TV and voice M-Pesa Our fixed line services include broadband, TV and voice.M-Pesa is our African payment platform, which has moved beyond We offer high-speed connectivity through our next generation its origins as a money transfer service and now provides financial network (`NGN').services, together with business and merchant payment services. Convergence Our converged plans, which combine mobile, fixed and TV services, provide simplicity and better value for customers. Other value added services These include our Consumer IoT proposition "V by Vodafone", as well as security and insurance products. Consumer 07 Vodafone Group Plc Annual Report on Form 20-F 2020
Annual Report on Form 20-F 2020 Key trends shaping our industry Operating in a rapidly changing industry Rising global smartphone penetration, ubiquitous superfast internet access, increasingly converged solutions and remarkable new technologies are rapidly transforming the way that we live and work, while simultaneously creating a range of new commercial, regulatory and societal challenges. These long-term opportunities and risks are reflected in our strategy. Fixed line The demand for high-speed NGN broadband services over cable or fibre is growing rapidly. Over the next five years, Analysys Mason estimates that 35 million households will move to NGN services within Vodafone's Europe footprint. This represents a significant window of opportunity for operators with access to high quality Gigabit capable infrastructure. Fixed revenues in Europe grew by 1.1%1 over the last year, supported by this shift to NGN services. Convergence Consumers are increasingly buying converged bundles, which are a combination of mobile, voice, broadband and TV services. Note: 1 Source: Analysys Mason. For the consumer this provides the benefit of simplicity one provider of multiple services and better value. For operators this increases customer loyalty, improves customer retention and drives operational efficiencies. Demadaonpdtifoonr ocfosnmvearrgtpedhosneervs.icTehseisGeSxMpeActeedstitmo actoenstitnhuaet stmo arirstpehaocnroespseanlel tmraatrioknetws iinll Eriusreofpreo,mal4th5o%ugtoh 6th7e%pabceetwoefeand2o0pt1i8onanwdil2l0v2a5ry. Tbhyismgarrokwett.hMinobsmilearDtpehmoannedpfeonremtraotbioilne pdraotavicdoenstoinpueersattoorsgrwoiwthrtahpeidolpyp. oOrvtuenritthyetolagstofbiveeyoynedarcso, nmnoebcitlievidtyataantdraofffifcerpeanr uesxeprainndcirnegasreadngbeyoofvderig5it5a%l s1erpveircaesnntoumcoannsdumgreorws ftohrotvheerftihrset ntiemxte,thsruecehyaesairnstiesrneaxtpioecntaeldmtoonreeymtariannsstfreorsn,gl.oTanhes,chhaanldlesnegtefifnoarnocipnegr,ationrssurisanhcoewantodmreocneenttilsyeetvhiesnsmtroenrcghvanotlupmayemgeronwtst.hN. oEtuer:o2peSaonurtoceta: lAmnoablyilseysseMrvaicsoenrevSenuube-SsawhearreanflaAt1friicna2d0a1t9a., FduixeetdolsinuebsatnadntciaolnuvneirtgaeryncperiBceusdineeflsasteiosna,rdercivuerrnenbtylytetcrahnnsoiltoiognicinagl ifmropmrotvreamdietinotns,alreWguidlaetiAonreaanNdeatwhiogrhksle(v`eWl AofNc'o)mtopeStoitfitowna.rWe De ehfaivneedlaNunetcwhoedrkssp(e`eSdD-tNie'r)eidnuonrldimerittoedsidmatpalipflyatnhse, iwr ohpicehraptrioonvsid, einscurseawseiththaenirospppeoerdtuonfietyxetocuutpiosne,llacuutostmomateertshteoirhnigethwerorskpseeadndplsaanvse, wcohsitlse. cFuosrtoompeerrastobresn,ewfihtofrhoamve"wthoereryx-pferretei"sedtaotataukseagaed.vTahnteagroello-fouthtios,fi5tGresperrevsiecnetss,awshigicnhifbiceagnatnolpapstoyrteuanri,tya.lsTohreepdreemseanntds faonrocpopnovreturgneidtysfeorrviocpeesriastoarlssotogsriogwniinfigc,asnitmlyilraerdtuoctehethCe ocnossut mofecrasrergyminegndt,awtaitohnotpheeriartnoertswborirnkg. i5nGg twoiglletphreorvcidoemamruannigceatoiof nnetowolrsevfoenr ubeusoipnpesosretusntihtaietswoovrekr athcreomsseadlilufmixetedrmanbdymeonbaiblelinegndoppeorianttos.rsTthoeoIfnfteerrinnentoovfaTtihviengnsew(`IporTo'd)uTcthseadnedmsearnvdicfeosr tIooTcuisstgormoewrsin. gInraApfirdilcya,wmitohbailveadsattaarirsaygroofwuisnegcraaspeisd,lwy,hwicihthradnagtaetfrraofmficsienncsroerassiunsgedontoacvoenratrgoel binyd7u0s%tri2alpmeracahninnuemryoavnedr tchoeunlatssttfoicvke lyeevaerlss. tTohaiusttormenadteids esexlpfe-dcrtievdintog cvoenhtiicnluese., TdrhieveGnSbMyAa leasctkimoaftefisxtehdatlitnheeinnufrmasbterurcotfubreusainndestsheIorTapid
connections will triple from 2019 to reach over 13 billion by 2025. Mobile Business demand for mobile services has remained strong, enabling employees from large corporates to Small and Medium sized Enterprises (`SMEs') safe and secure access to voice and data services. However, there continues to be significant price competition, which operators try to offset by cross-selling additional products and services. 5G is a significant medium-term growth opportunity for businesses, as it enables new technologies such as mobile edge computing and mobile private networks. Business 22 See page 22 of this report for further insights Africa Consumer 20 Seepages20and21ofthisreportforfurtherinsights Europe Consumer 20 Seepages20and21ofthisreportforfurtherinsights 08 Vodafone Group Plc
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Hcoomwpeevteitri,vtehewChooldeesaallesoacincetrsosdtuecrmessnoefwferreedgublyatiinocnuimnbreelnattsioanndtothineteslronwatipoancael cofalNlsGwNithininfrathsetrEucUtu. rWe eroallw-oauitt thhaesismepenlemtheenetmateiorgneonfctehoefCaoltdeernaattiavneaftiiborneabl uleivldeelr.sO, vwehroalal,reGloovoekrinnmgetnotcsaapnidtapliosleicoynmthaekgerrsowhainvge creucsotogmniesreddetmhaatnGdifgoarbGitingeatbwitosrpkesewdisllbuynodfefrepriinngthaettrdaicgtiitvael cwohmopleestaitlieveancecsesssoftetrhmesetnotirreeseeclloenrso.mTye.cWhneoltohgeyreafonrdeceoxnpneeccttaivniteyncaabnlincgrepaoteliacymeonrveirpoonsmitievnet ftuotuenresuforer sthoactieintiveessatroorsunindntheetwwoorkrlsda. rEevaebryledtaoye,awrneawfoarikr rteotuhrenlpoonutrhceiursitnovmeesrtsm, epnatrst,neenrssuarnidngotthheart stakeholders understand how new technology can enhance their business and contribute to socio-economic progress. Howeveritisimportanttorecognisethatthebenefits of a connected society need to be accessible to all and cannot come at the cost of the future of our planet. Society expects companies to find ways to minimise their impact on the environment while continuing to grow. They also expect organisations to help to bridge the divides that exist and find ways to address inequalities. We believe that our technology can give marginalised communities access to the transformative power that connectivity delivers, as it democratises access to better health information, education resources and financial services for people around the world. We are also doing our utmost to support society during the COVID-19 outbreak providing critical connectivity and communications services to help the communities in which we operate. Changing customer and societal expectations40 Seepages40 to 50 of this report for further insights Highly competitive markets Regulatory intervention Digital transformation opportunity23 See page 23 of this report for further insights Rapid technological change 09 Vodafone Group Plc Annual Report on Form 20-F 2020
Annual Report on Form 20-F 2020 Our business model Using our leading scale and superior Gigabit infrastructure to create value assets A converged leader strength Our business model is underpinned by our... governance Strong framework 72 Read more Principal risk factors and uncertainties 62 Read more People and our culture 56 Read more `Social' contract 52 Read more Sustainable business focus 40 Read more Balance sheet Free cash flow Cost Revenue Financial Business Unique global footprint Africa Consumer Mobile data and payments leader Europe Consumer Growth opportunities Our brand The `Spirit of Vodafone' Our people Unique platforms Leading scale Differentiated 10 Vodafone Group Plc
Overview Strategic Report Governance Financials Other information Leading scale Unique platforms Our people Europe's largest fixed NGN footprint covering 136 million households, providing customers with Gigabit capable speeds. One of Europe's leading TV platforms with 22 million active viewers. We have 93,000 employees whose passion, commitment and expertise are key to our success. The `Spirit of Vodafone' MyVodafone app driving loyalty and Leading/co-leading mobile networks and deep spectrum positions. customer engagement. Creating a culture that inspires employees to earn customer loyalty, experiment and learn fast, and create the future by getting things done together. Our brand A market leading IoT platform. Unique global footprint and scale in Vodafone Business, with our SD-WAN coverage extending to 182 markets. M-Pesa Africa's leading mobile payment platform. Vodafone Intelligent Solutions (`_VOIS') our scaled shared service centres. Europe's largest tower company with 60,000 sites is now operational. We are one of the world's most recognised brands. We have Europe's largest NGN footprint, providing us with a unique opportunity to gain substantial market share in fixed line, and the ability to drive convergence across our fixed/mobile customer base. In mobile, we have the opportunity to upsell through our speed-tiered unlimited data offers and 5G. We are also expanding our range of products and services, such as security and handset insurance. We have a significant opportunity to drive mobile data growth given the lack of fixed line infrastrufocctuursee,daonnd iemxppraonvdinMg-oPuersaastsoectaupttiluirseatdioigni,taiml apnrdovfiinnganocuiarlreseturvrnicoens ocpappiotratlutnhirtoieusg. hWneethwaovrekasuhnariqinuge, gclaopbtaulrifnogotMpr&inAt tosymneeregtitehseannededdrsivoifnmguelftfiincaietinocniaelscthorropuorgahteas.ceWnetraalrleyamlsaonaagcehdalOleunrgaevretroaginectuemnubreentosfidnefbitxeisd1, c2aynelaervs,erwageehoavneonuor lseiagdneifrischainptpsohsoirtti-otnerimn IroefTin, aanncdinargenaeeddigsiatanldenhaabvleegr ofoordSlioqHuoidaitnydhSeMadEroso. mRe. vEeunruoepeCaonstTDowrievriCngo.fr...eeccreaasthinfglovwalgueenfeorratsioocnietyWaendgerneeturarntesrfeovreonuuresphrairmehaorilldyetrhsrNouogteh:m1oBnatshelyd orencuourrrinthgircdonGtrloacbtasloPruslusebsScurripvteiyo.nOs.ur WpeeophlaevCe Oa VnuIDm-b1e9r pofulospepsourrtvuenyitireessutoltss:tr8u4c%turoaflleymtrpalnosyfeoersmfeaenldwfeulnldcaomnnenetcatleldytroesthhaepireteoaumr c.1osStobcaiseetybIym: pOruorvcinlegaornfoecbuisllioonnrleivveens uaendgrhoawlvthin,gcoosutrseanvvinirgonanmdeinmtaplriomvpedacat.ssSehtaurteihliosladtieorns TsuoptaplodritvsidoeunrdfpreeerschaasrheifnlFowY2g0e:n9e.r0a0tieounr.oFcreenetsc.aBshusfilnoewss(`AFfCriFc'a)Cporen-ssupmecetrruEmurwopaes C5o.n7sbuimlleiorn11inVFoYd2a0fo(nuepG4r.7o%upyPelacr-Aonnn-yueaalrR).eTphoirst osunpFpoorrmts 2ou0r-Fab2i0li2t0y to invest in critical infrastructure, maintain a robust balance sheet and pay dividends to shareholders. Our balance sheet is robust being Digital `First' This provides us with robust and resilient revenue streams. being radically simpler leveraging our Group scale We are also
Annual Report on Form 20-F 2020 Our stakeholders Stakeholder engagement Engaging regularly with our stakeholders is fundamental to the way we do business. This ensures we operate in a balanced and responsible way, both in the short and longer-term. We are committed to maintaining good communications and building positive relationships with all our stakeholders, as we see this as essential to strengthening our sustainable business. The table below summarises our interactions with key stakeholders during the year. For more details on stakeholder activities specifically undertaken by the Board 80 How did we engage with them? Via our Branded retail stores Digital channels: MyVodafone app TOBi chatbots Social media interaction Vodafone website Our customers We are focused on deepening our engagement with our customers to develop long-term valuable and sustainable relationships. In total we have 334 million customers across Europe and Africa, ranging from individual consumers to large multinational corporates. Call centres Regular meetings with managers Executive Committee discussions European Employee Consultative Committee Newsletters and electronic communication Our people Our people are critical to the successful delivery of our strategy. It is essential that they are engaged and embrace our purpose and values. Throughout the year we focused on a number of areas to ensure that our people are highly motivated at both Group and local marrkeegtulleavtoelr.sNMaetieotninagl sCwonitshumltaitniivseteCrso,melmecittteeder(eSporuesthenAtaftriivceas),pEolmicpylooyffeieciSaplseaankdUrpegCuhlaatnonrselGoGvelornbmalePnutslsaenSdurrevgeuylaintorressOpounrsreeltaotiConOsVhiIpDw-1i9thgIonvteerrnnmalewntesbasintde reEguvleantotsrsanisdicmopnofertraenntcteosenTsuernedperosliacniedsraerqeudeestvsefloorpeadudinitstheSinafteerteysftosroufmosur cSuusptopmlieerrsauandidtsthaendinadsussetsrsym, wenhtisleOaulrsosuepnpalbileirnsgOthuermbutsoinbeeststeirsuhnedlpeersdtabnydmoourreimthpaanc1t 1o,n00th0escuopmplmieursniwtyhaonpdarthtneeernwviitrhonums.eTnht.esePraarntigceipfartoimonsitnarpt-uubpliscafnodrusmmsall bHuossintiensgsewsotroklsahrogpesmtoulitminpartoiovneasleccotomrpuanndieesrs.tOanudrisnugpplAietrtsenpdroinvgidienduusswtriythmteheetipnrgosducPtsaratnicdipsaetrivoinceisnwpaernlieaemdetnotadreylipvreorcoeussresstratPeagrytnaenrdincgoonnnevcatroiouurscsuosctoiamleprrso.graOmnmgoeisng PsietersvoinsaitlsmeTethinrogusg, hrooaudrshporowdsu,cctosnafnedresnecrevsicesInveVsotodrarfeolnaetiFoonsunwdeabtisoitne/ coAmnmnuuanlitGyepnaerrtanlerMsheieptsingC(`oAmGmMu'n)ityCinatpeirtaacltmioanrkoentsprdoajyesctOs ruerlaintivnegsttoorsedOuucratiinovne,shtoerasltihn,calgudriecuinltduirveidaunadlianncdluisnisvteitufitnioannacleshaWreehowlodrekrswaisthwdeilflfearsednetbNt GinOvessatororsu.nWd tehme waionrtaldinOaunralcotciavlecdoimalmoguuneitwieisthanodurnionnv-egsotvoersrnthmreonutgahl oorugraenxistaetnisoinvse(i`nNvGesOtosr')reWlaetiobnesliepvroegtrhaamt tmhee.lonAgn-tneurmal sauncdceinstseroifmourerpbourstsinesSstoisckcloEsxeclhyatniegde tNoetwhes sSuecrcveiscse o(`fStEheNcSo'm) amnunnoiutinecseimnewnthsic1h2wVeoodapfeornatee.GWroeupinPtelrcact with local communities and NGOs seeking to be a force for good wherever we operate. Participation in company and industry meetings with government and
Overview Strategic Report Governance Financials Other information What were the key topics raised? How did we respond? Key topics raised through focus groups: Launched speed-tiered worry-free unlimited data offers in six markets Better value offerings Launched 5G in 11 markets and significantly expanded our 4G and 4G+ coverage Faster data networks and wider coverage Launched a new MyVodafone app, making it easier to manage accounts Making it simple and quick to deal with us Introduced integrated packages offering internet, TV and mobile Managing the challenge of data-usage transparency Extended our range of V by Vodafone Consumer IoT products Converged solutions for consumer and business customers Launched innovative apps and services in gaming, augmented reality and virtual reality Prompt feedback/resolution on service-related issues Facilitated working from home and increased data allowances during the COVID-19 crisis Opportunities for personal and career development We have created a new culture called the `Spirit of Vodafone' Communication and knowledge sharing across the Group Training courses included developing new skills such as digital marketing, e-commerce, coding, big data and analytics Enhancing leadership coaching capacity Internal Recfoumgemeu'snilcaargtieosnt tcoorsptaofrfaotenptharetnimerpfaocrtsCoofnnCeOcVteIdDE-d19ucaantidonBrexRiet spoDnedeepdentoinCgOdiVgIiDta-l1s9kipllrsoviPdeinogplfereseuravcecyesascttoiovnistailnchleuadltehhcaarveinlgindesivaisnidonwaelb"simitepslemDeanttaatpiorontecchtaimonpaionnds"p,riavnadcymonHiteoldrinwgoprkroshgorepssswatitEhxEeucurotipveeanCoamndmUitSteGe olevveerlnmIemntpsaacstswoefllCaOsVthIeDE-1u9roapnedanBrCeoxmitm iPsseioopnlesSuervceuryitaycatinodnssupIpmlyprcohvaiinngrehseialilethncaend sInafcerteyassetadncdoamrdms unHicealtdiosnafoentythfoeriummpsaicnt odfifefelerecntrtocmoaugnntreiteisc efiveelrdys q(`uEaMrteFr') PrEonmsuortiinngg tdhivatersspietyctarunmd iinscmluasinoangedHaeslda satnraetvegenict rteoseonucroceuragEenagdaogpetdioonnonfeUtwNorGkldoebsailgLnGanBdTd+esptlaonydmarednst e.gP.arOtnpeerninRgAoNn enOvipropnomrtuennittailessoflourtijoonbscreEantiroonllaenddosvoecrio3-,5e0co0nsoumppicliedresvteoloapcmceesnstsupEpnlgyacgheadinonfinisasnuceisnsgufcahcialsititehse aanlldocfraeteioen-ionfvsopieccintrgutmooalnsdtTheimperolytepcatiyomneonftcaonndsufamirertesrmRs egHuloasttoerdyacotemcphlnioanlocgey(ee.vge.nmt otobielenctoerumraigneatoiounr srautpepsl,ieprrsicteo, esxecpulorirtey,thseafleattye,sthteeaclhthnoalnodgeiensviroSnumppelnietarl/ppreordfourcmt iannncoev)atiMoneasFuarsetmerenpatsyomfeEnMt tFeremmsitsosisounpspforrotmsmsiatlelserbDuissicnuessssieosndounrinagn tehnevCirOonVmIeDn-t1t9hactrifsaicsilitAatcecseisnsvteostmmoebnitleinvtoeicchenaonldogdyataSsetrravtiecgeys toLeanusnucrehesdusCtaoinnneedcftiUnainncSiaolugtrhoAwfthricaW ea h"efrledemtoeeutsine"gspowrittahl mpraojvoirdiinnsgtietusstieonntaiallshsearrveihcoelsdteorsc,uisntdoimviedrusal sFhraeree-htoo-ludseer sgorcoiuaplsmaenddiaf,ineadnucciaatlioannaalnydstsjoabnsditaetstendEendsusreevdertahlact oonufretreecnhcneosldougryincgonwtihniucheswtoe badedcroemsspeldiaknetywtiotphicnsatriaoinsaeldregIumlaptaioctnosfaCndOiVntIeDrn-1a9tionRalegspuoidnesliibnleesalloRceastpioonnsoifblceapinitvaelstmTehnetsienwinefrreasattrtuecntduerde byDtehleivaeprpyroofprgilaotebaml iaxndofnDatiiroencatol rdseavnedlospemnieonrtmgoaanlasgemVeondta, fionncleubdeincgamoeurthCehUainrmiteadn,NCahtiioenfsEHxeigcuhtCivoem, CmhiisesfioFnineranfocrial Officer, and senior leaders Sound corporate governance practices ESG strategy and targets Dividend policy We hosted a "Meet the Board" and Digital investor open office Deleveraging strategy We expanded disclosure to include return on capital employed (`ROCE'). See page 39. 13 Vodafone Group Plc Annual Report on Form 20-F 2020
Annual Report on Form 20-F 2020 Chief Executive's review Accelerating our strategic priorities to support a societal recovery Vodafone has delivered a good financial performance growing revenue, adjusted EBITDA and free cash flow whilst building strong commercial momentum through the year and executing at pace on our strategic priorities. We have also continued to invest in our fixed and mobile Gigabit network infrastructure and digital services, to provide faster speeds for our customers, as well as successfully managing the recent surges in demand. The services Vodafone provides are more important than ever and we are committed to playing a key role in society's recovery to the "new normal". I am pleased with the rapid, comprehensive and coordinated way we responded to the COVID-19 crisis. I want to give my personal thanks to the entire Vodafone team, who through their dedication, expertise and professionalism, have kept families, friends and communities connected, enabled students to continue their education, helped businesses operate and proactively supported governments to deliver critical services. COVID-19 response: Rapid, comprehensive and coordinated response to support the digital society We are committed to doing our utmost to support society during this period of uncertainty and change. As a provider of critical connectivity and communications services enabling our digital society, we announced a five-point plan to help the communities in which we operate. Our plan is to: maintain network service quality; provide network capacity and services for critical government functions; improve dissemination of information to the public; facilitate working from home and help small and micro businesses within our supply chain; and improve governments' insights in affected areas. Teams throughout our markets have worked tirelessly to deliver our five-point plan and to support all the communities in which we operate. So far, the actions we have taken have totalled donations of goods and services of approximately 100 million, reaching 78 million customers. 14 Vodafone Group Plc
Overview Strategic Report Governance Financials Other information Our purpose: We connect for a better future We work hard to build a digital future that works for everyone. It is our ambition to improve one billion lives and halve our environmental impact by 2025. We are driving progress towards the delivery of our 2025 targets across three pillars: Digital Society; Inclusion for All; and Planet. We also remain dedicated to ensuring that Vodafone operates responsibly and ethically. To demonstrate our commitment to delivering on our purpose, we will be introducing a number of purpose-led ambitions into our Executive global long-term incentive plan. Subject to shareholder approval at our 2020 AGM, these ambitions will be included from the FY21 grant onward, and will be directly linked to the progress made across our three pillars. Further details on this can be found in this year's Remuneration Report. Our strategy: Strong progress on all four strategic priorities At the start of the financial year, we set out four strategic priorities that would guide our actions and ambitions: Outlook: Accelerating strategic priorities to support societal recovery Whilst we are not immune to the pressures facing the economies in which we operate, we have a relatively resilient operating model and we are accelerating key aspects of our strategic prithoeristeiepsrtioorsiutipeps.oPrtasroticciueltaarl hreigcholviegrhyt.sTdhuerinevgetnhtes yoefatrheinlcalsutdfee:wmsuocnctehsssfhualvlye lraeuanffcihrmeded5Gtheseirmvipcoerstainnc1e1thmaatrgkoevtse,rtnomgeenthtse,rbwuistihnenseswesuannlidmsiotcedieptileasnps;laOcueropnehrfioghrmqaunacleit:yG, roeolidabfilneaanncdiaalfpfoerrdfoarbmleatneccehGnorolougpyraenvdencuoennineccrteivasiteyd. Tbyhi3s.0is%prtoovid4i5n.g0 ubsillwioitnh, raenfolepcptionrgtutnhietyuntodearclcyeinlegraitmepthroevpeamceenattiwn hciocmhmweercciaanl ppreorfvoirdme annecwe parnodduthcetscaonndtrisbeurvtiiocnesfrtoommteheet tahcequinircerdeaLsiinbgerctyonGnleocbtaivl iatyssdeetsm, wanhdischofwoeurre ccuosntsoomliedrast,eadcfrorosms aAlluogfuosut r20m1a9r,kpetasr.tiWalleyaorfefstreatnbsyfotrhmeidnigspoousraclhoafnVneoldmafioxnaenNdedwigZiteaallcaunsdt.oGmreorucparoergteaanmicssaetrvpiacceeraenvdenauree rinadcriceaalsleydsbimy p0l.i8f%yin*gtoour37co.9stbsitllriuocntuarneds tahdrjouusgtehdtEheBuITseDoAf tiencchrneaosleodgyb.yW2.e6a%re* dtorivi1n4g.9dobwillniotnhedrciovsetns abnydoeunrvcioromnmmeernctiaall immopmacetnotufmouarnndestwtroonrkgsdtehlriovuegryhonfetowuor rmkuslhtia-ryineagracrorasnt gsaevminengtspraongdraomurmEeu. rForpeeeacnastohwfleorwco(mprpea-snpyeicstrnuomw) fiunlclryeaospeedrabtyio4n.a7l%. Otuorf5o.c7ubsiwlliiollnr.eAmsaianroesnueltxoecfuthtienggoooudr fsitnraatnecgiiacl apgeernfodramaatnpcaec,er,ombuasntafgininagncthiael sphoosritteior-ntearnmd cohuarlllieqnugiedsittyhaptoasriteiounn,dIoaumbtepdlelyasperdesthenatt,thwehBilsotacrodnhtiansudinecglatorecdotnontaelctdfivoirdaenbdestteprefrusthuarree. fodretehpeeyneinargocfu9st.o0m0 eerureoncgeangtesm(FeYnt1;9: a9c.0c0eleeruartoincgendtsig).itAalfturartnhsefrorrmevaiteiwono;foiumrpfrionvanincgiaalspseertfuotrimliasantcioeni;s adnedtaileodptoimn ipsainggesth3e0 ptoor3tf9o.liod. eTlhivroeruignhgoautsitxhtehyceoanrsweceuhtiavveeqeuxaercteurteodf iamt pparocveeamcreonstsianllcufostuormperirolroityieaslt.yW; hialdstdimnugcmhowreortkharnem1.a4inmsitloliobne ancehwieNveGdNinfitxheedy-leinarescauhsetoadm, ewrse; hadveelidveelrivinegretdwao-stihginrdifsicoafnotusrteapm-cbhiatinogues,inmpurlotig-yreesasr adgigaiitnaslttoraunrstfroarnmsfaotriomnatsitoranteaggyen, wdai.thPaagceusm2u0latotiv2e5d0e.t8aibliolluiornproofgnreestsoapgearaintisntgeaccohstof savings in Europe generated so far; Chairman succession I would like to thank Gerard personally for his substantial contribution to the Company since he became our Chairman nine years ago. We have all benefited considerably from his leadership, experience and wise counsel during a period of significant strategic transformation. I look forward to welcoming Jean-FroafnpçooirstfvoalinoBsiomxpmleifeircatotiothneaBctoivairtdy. tHoeehnaasblpergesriedaetedrofvoecrusa ohnigohulyr tswucocreesgsfiounl aplepriloadtfoorfmtrsaninsfEourmroapteioannadnAdfvriaclau.eOcureraptiuornpoasteHOeiunreskterant,ehgaysWexetecnosnivneecitntfeorrnaatbioetntaerl efuxptuerreie. nWcee ainredrWiveinhgavgeromwathde, asntrdonisghpigrohglyre-sresgaagradiendstaws oonrkeinogf thhaerdlotnogbeustilsdtaancdoinngneacntdedmsoosctiestuyccoeusrsffoulurCsEtrOasteignicEpurrioopreit.i/ess/: NthiactkeRnheaandcNesicskocRioea-edcConhoiemf iEcxpercougtrievses, 1b.eDcoemepiennginthgecfuirssttomteelerceonmgmaguenmiceanttioenmsborpaecreastoerveinryEounreoapnedtodoreeascnhoat ncoamgreee2m. AenctcwelietrhatAinmgadziognitaWl etrbanSsefrovrimceasti(o`nAaWt tSh'e) ctoosstuopfpoourtr uplltarna-elto.w3.lIamtepnrcoyvminogbaisleseetdugteilicsoamtiopnut1in6gRseeardvimceosr;e4.cOonpctilumdiisninggatrhaenpgoerotffonlieotw20orRkesahdarminogrepa1r5tnVerosdhaifposnaecGrorsosuEpuPrlocpAe innnculualdRinegpworitthonDFeuotrsmch2e0T-Fel2e0k2o0m in Germany, Telecom Italia in Italy, Orange in Spain and Romania, Telefonica in the UK, and Wind in Greece; completing the merger of our passive tower infrastructure in Italy with INWIT, which generated 2.35 billion in cash and a 37.5% shareholding in INWIT (which we subsequently sold down to 33.2% in April 2020); and completing a significant amount
Annual Report on Form 20-F 2020 Our purpose We connect for a better future We are a communications technology company connecting over 334 million people, and organisations of all sizes, to the digital society. We are optimistic about how technology and connectivity can enhance the future and improve people's lives. Through our business, we aim to build a digital society that enhances socio-economic progress, embraces everyone and does not come at the cost of our planet. That is why we have committed to improve one billion lives and halve our environmental impact by 2025, by taking concrete action in three areas: | | Digital Society Inclusion for AllPlanet 16 Vodafone Group Plc
Overview Strategic Report Governance Financials Other information We believe in a connected digital society, where data flows at speed, connecting people, communities and things to the internet like never before. Gigabit networks, IoT and mobile financial services enable incredible innovation and technologies to be developed to help make our lives easier, healthier, smarter and more fulfilling. Citizens will access an ever-growing range of services in real-time and businesses can develop new products and services to meet the needs of future generations Connecting over 250m people to our next generation networks by 2025 Connecting over 150m vehicles to the IoT by 2025 We will create more efficient, safer and smarter transport With a mobile phone and an M-Pesa account, people on low incomes can send, receive and store money safely and securely, giving them more control over their financial affairs. Connecting over 50m people and their families to mobile money services by 2025 41 Read more Digital Society 17 Vodafone Group Plc Annual Report on Form 20-F 2020
Annual Report on Form 20-F 2020 Our purpose (continued) Inclusion for All We believe that the opportunities and promise of a better digital future should be accessible to all and are committed to ensuring that the more vulnerable are not left behind on the journey towards that future. Through our technology, we will work to bridge the divides that exist and help people to contribute equally and fully to society. Connecting an additional Through specially designed products and services, we will help to improve health and wellbeing, create financial inclusion and increase safety and security, so women can reach their full potential 20m women in Africa1 and Turkey to mobile by 2025 #1 We will help thousands of women to progress their careers, stimulating lost economic activity for the benefit of all becoming the world's best employer for women by 2025 Supporting We will help to upskill the next generation and support them to succeed in the digital economy 10m young people to access digital skills, learning and employment opportunities by 2022 Improving the lives of 400m people through our Foundation programmes by 2025 We aim to support the more vulnerable people in society, enabling free access to healthcare and educational resources and creating opportunities for them to improve their lives and livelihoods Note: 1 Excludes Egypt. 44 Read more 18 Vodafone Group Plc
Overview Strategic Report Governance Financials Other information 50% 100% 100% by our business and will 2 Excluding hazardous waste. Planet We believe that urgent and sustained action is required to address climate change and that business success should not come at a cost to the environment. Through our commitment to halve our environmental impact, we will help to ensure a sustainable future for all. Our focus on energy efficiency, renewable energy supply and network waste reduction will help us to mitigate the growth of our business and our customers' increasing demand for data. We will significantly reduce our impact on the environment, while ensuring we can continue to grow profitablyReducing our greenhouse gas emissions by by 20251 Purchasing of our electricity from renewable sources by 2025 We will reduce our reliance on fossil fuels, future-proof our energy supply and help to create a healthier planet for everyone Reusing, reselling We will reduce the amount or recycling of electronic waste produced support the move towards a more circular economy of our redundant network equipment2 46 Read moreNotes: 1 Against a 2017 baseline. 19 Vodafone Group Plc Annual Report on Form 20-F 2020 Annual Report on Form 20-F 2020 Our strategy Deepening customer engagement Our ambition We aim to deepen the relationship we have with our customers by selling additional products and services, particularly fixed and converged products in Europe and mobile data and financial services in Africa. This will drive revenue growth and improve customer loyalty. Our strategy in the Business segment is to drive growth and deepen engagement with our existing mobile customers by cross-selling additional total communications products including next generation (`NGN') fixed, IoT and Cloud services. Business Africa Europe Consumer 20 Vodafone Group Plc
Overview Strategic Report Governance Financials Other information Our progress We have made strong progress on our strategy and delivered a more consistent commercial performance across both Europe and Africa this year. This has driven six consecutive quarters of improved customer loyalty, with mobile contract churn in Europe down 1 percentage point year-on-year (see chart below). Based on Consumer net promoter scores, at the end of the period the Group was a leader or co-leader in 12 out of 18 markets. We also maintained our good momentum in mobile and NGN net additions. Our subscription-based television distribution business in Europe, which now has over 22 million active customer subscriptions. During the year we launched a number of specific commercial initiatives. These included: In the UK, we began a new campaign, the "Great British Broadband Switch", to coincide with new regulation relating to out-of-contract broadband customer notifications. This campaign contributed to a record number of new Consumer fixed customers added in the fourth quarter. Fixed-line broadband connections now total 751,000. Launching new speed-tiered unlimited mobile data plans across six markets, meeting customers' demand for "worry-free" data usage and creating opportunities for revenue growth. Our unlimited data customer base totalled 4 million connestuwmoerkr SthIaMt ssubbyscthriebeentdo oofurFYN2G0N. Wbreoaadlsboanladusnecrhveicde5wGasse3rv3i%ceisninFY9720c,itrieefsleacctrionsgstehieghsitgEnuifriocpaenatnopmpaorrkteutnsi.tyInwAefsritcilal,hdaevmeatondinfcorremasoeboiluerdmataarkreetmsahianrsesaignndifuipcsaenltlgciuvsetonmtheerslatcokhoigfhfeixresdpeliendepinacfrkaasgtreusc. tIunreQ. 4T,hwereeliasunalcshoeadsaunbeswtan"tGiailgoapCpaobrlteunMitayxt"ocgarmowpaMign-Paesspaa(rotuorfmthoebrilee-bpraaynmdienngtsopflUatnfoitrymm)eadniad teoxpVaonddafitoinnetownheicwhfhinigahnlcigiahltaenddoduirgniteatlwsoerrkviacdevs.anDtuargien.gTthhiesyceaamr,pwaiegnsahwascboenetinnuheigdhglryoswutchceinsstfhuel adnedmhaenldpfeodrdmriovbeilreecdoartda.cMabolnetnhelyt aadvdeirtaiognesdoaftamuosraegethianncr2e5a0s,e0d0t0oi2n.0HG2B. (FDYri1v9in:g1.c4oGnBve)ragnednctheeactorotaslsnouumr bceurstoofmdeartabaussee.rsWgerebwelbieyve7.t0hemreilliisoan stotro8n2g.6omppilolirotunn.iWtyetoariencthreealsaergtheestnmumobbieler aonf dcufsixtoemd eorpsewrahtoorsiunbEscurriobpeet,osucopnpvoertregdedbyo:rmOulutri-NprGodNucfitxseedr-vliicneesn. eTthwisoraklswohhieclhpsisimthperolavregecsutsitnomEuerrolopyeaalntyd. cwohvoelress1al3e6Emuirlolipoen'shloaurgseehsot fldixse(dseNeGchNarftoboetploriwn)t.(TMhairskpertoavbildeehsouussewhiothldas sigmniilfliicoann)t1o3p6poNrGtuNnit7y5toStcraatpetguircepmaartrnkeertsshhiparse5g5aOinws naendd oinnc-rneeatsNe GavNer3a2geOrwevneenduoena-snectusGtoigmaberist HmoouvseehfroolmdslwegitahcyGDigiagbitiatlcSapuabbsclericboenr nLeicnteio(n`Ds oSnL'o)utronGetiwgaobrikt (cmapilalbiolen)teFcYhn1o9lFoYgi2e0s.FBYy2F3Ye 2223,3w2ecw.5i0llEbueroabpelemtoobdielleivceornGtriagcatbciht usrpnee(d%s)tQo 4ap1p9rQox1im20aQte2ly2500Qm3i2ll0ioQn4h2o0mNesotaec:r1osEsxEculurdopinegotnheouimr opawcnt onfetiwnaocrktiv(esedeactahaorntlbyeSloIMw)l.ossIensGinerImtaalynyd,ufroinllgowQi3nganthdeQa4cqFuYis2it0i.on15o.2f U14n.i6ty-m1.e1dpipa,1w4e.5a1re5.t0h1e 1le4a.d1i1ngEuprroopveidAerfroicfaGCigoanbsiutmseerrv2ic1esVwoditahfoanseigGnrifoiucpanPtlscpAeendnuadalvRanetpaogret oovneFr othrme i2n0cu-Fm2b0e2n0t operator. The percentage of homes passed on our
Annual Report on Form 20-F 2020 Our strategy (continued) Deepening customer engagement (continued) Our progress Vodafone Business has increased its pace of strategic execution following the appointment, in September 2019, of Vinod Kumar to lead our cross-geography activities. Business customers, ranging from entrepreneurial sole traders through to large global organisations, contribute 28% to our total service revenue. We continue to see a significant opportunity to win market share in the evolving wide area networking (`WAN') market. With businesses more reliant on remote working and multi-site operations than ever before, we are seeing larger enterprise customers investing in more reliable software defined networking (`SDN') and moving away from legacy solutions which are both less reliable and more expensive to maintain. Our leading global Internet of Things (`IoT') platform continues to resonate with Business customers and we added 19.5 million new SIM connections during the year. Our IoT connections support a range of industries including car manufacturers, logistics, energy and healthcare. In December, we were the first telecommunications operator in Europe to announce an agreement with Amazon Web Services (`AWS') to support ultra-low latency mobile edge computing services by deprleomyainrkgaAblWe sSuWcceasvselsetongryth, dseolliuvteiorinnsgastigthneifeicdagnet osof cViaoldaanfodnfein'san5cGianlevtawluoerkasn, dasdpeeaprteonfoouurrrmeluatlitoi-ncslohuipdwstirtahtecguys.toWmietrhs.loVwodlaatfeonnceyT, tahnezanneiwa issernvoiwcesmwovililnhgealpwsauypfproormt atrhteifpicrieavlainiltienlgligpeenrcceep, taioungmtheanttMed-aPnedsaviisrtounallyreaaltoitoyl, tvoidseeondanaanldytrieccse, iavuetomnoonmeoyu. sItviesheivcloelsv,inrogbtootibcescaonmdedaropnleatcfoornmtroflo,rarnodllwiniglloguetnfeirnaatneciinaclrseemrveincteasl trheavteandudersefsosrththeefGinraonucpia. lnOeeudrsBoufsTinaenszsacnuiasntosm. Teor adcattiev,itoiuesr pcoarnttninerusehtiopsgwaiinthtrcaocmtiomneirnciSaloubathnkAsfrinicTa,awnzitahniraevheanvueedferloivmerBeudssinerevsiscceusstthoamt aedrsdnreosws kceoyntfriinbaunticniagl2n0e%edso.fEtoxtaaml spelrevsicinecrleuvdeenouvee.rDdrealfivt esreirnvgicfeins atnhcroiaulgihnc"lSuosinognesinhaT"a, nazpaanritanerMsh-ipPewsaith6.T7mPBMB-aPneks;alcouasntsomanedrssa(5v8in%g osefrmviocbesiletocsumstaolml eenrstruespirnegneMur-sPewsiat)h5".M3m-PMaw-Pae",saa cpuasrttonmeresrhsipuswinitgh"thSeonCgoemshma"er3c5ia.0l %BaMnk-PoefsAafrreivcae,naunedcoonutrrSibhuatrioian-ctoomseprlviaicnet "rHevaelnaul-ePes1a.6"binn pvaalrutneeorsfhMip-Pweistha AtramnasnaactBioannskp. rIoncepsasretndemrsohnipthwlyithWTePhBavBeaankv,iswioenptroovtaikdeedTcaonmzamniuaniintyto-btahseeddidgiigtailtaalgfein, awnhceiarel sooulrutmioonbsiltehrmouognhey"sMer-vKiocebaM".-PMeosastwsmillaallllbouwsitnheessceosuinntrAyftroicgarnadmuaarlklyetrseldiukceeTiatsnzrealniaiancaereornuncabsyh wtraonmsaenct,ioofntsenanbdefpoarveedtehveelwoapyinfgorbudsiginiteaslsaknndomwolebdigleepianyclmudenintsg. bToaonkzkaeneiapihnags oarparcecdooumnitninagn.tlByyruerqaulippoppinuglawtioonm,ewnhwicihthmmaokbeisleacficneasnsctioaltrtaodoiltsioannadl efinnaabnlciniagl tsheervmicteosacchcaelslseningfionrgmbauttiocnre, awteeseamnpoopwpeorrttuhneimtytfooirmdpigroitvael stohleuitrifoinnsa.nMcioabl illietemraocyneaynadgheenltps thhaevme plelaarynedneawfuwnadyams oefndtaolinroglebuinsisnteressn.gItnhetnuirnng, tfhiinsainmciparloivnecslutshieoinr obvyehraelllpwineglltboeeinxgteannddatchceesescotonothmeicunwbealnfkareedopfotphueliartfiaomn.ilOievse, rwtihtehlaasstigdneicfaicdaen,tMef-fPeecstaohnaws ibdeeern a
society, the economy and the country as a whole. 43 Read more on how Vodafone is improving lives through M-Pesa on page 43 Business Business global footprint Markets with SD-WAN coverage 22 Vodafone Group Plc
Overview Strategic Report Governance Financials Other information Our progress In FY19, we began our multi-year programme to generate at least 1.2 billion of net savings from operating expenses in Europe and Group common functions. At the end of the financial year we had successfully achieved 0.8 billion of our original target and we remain on track to achieve the remaining 0.4 billion in the financial year ahead. Highlights of activity in the financial year include the following: This incurred an annual cost of over 1.2 billion. Through a targeted programme of technology deployment, including our Artificial Intelligence (`AI') assistant "TOBi", we reduced the number of customer calls by 20% over the last two years. Our teams have continued to identify further cost saving and efficiency opportunities in addition to this initial target in a number of areas. As a result, we are extending our cost transformation programme. We are now targeting to deliver at least 1 billion of net operating expense savings during FY21-23, in addition to the 0.8 billion delivered in FY19-20. Moreover, we expect to deliver a net reduction in commissions paid to distribution channels. Every year, we spend approximately 2.5 billion in commissions to third parties. As we move our sales towards digital direct channels we expect these costs to reduce over time and contribute to our margin expansion. In FY19, we had almoGstro7u,7p0-w0 irdeetaDilisgtiotraelsbeaccoromssesthoeuGr ororguapn, iwsahtiiochnadlrdoevseign8e0x0emcuitliloionntoofdaenlinvuearlaoppriemraatrinygchexanpnenesl essu.pWerieosrtiolpl esreaetiancgemntordalelroCleVfMorernetaabillesdtobryesbiing douatraf1utDuirgeitcahlacnhnaenlnmelisx,shbaurtewoef asraeleesvmolivxi2ngMtyoVaomdaofroenientaepgprapteedneatnradtihoonl1isCtichaatpbportosa(c%h toof cchoanntancetlsm)1aFnraegqeumenecnty. oBfyctohnetaecntds1o,3f tNheotfeisn:a1ncIinacllyuedaerswalel hEaudrorpedeauncemdaorukretsst.o2reMfooboitlpericnotnbtyra7ct%a.nd Wfixeehdaavceqiunicsirteiaosnesdatnhde ruesteenotfiotnecshinnoGloegrymatonyc,oImtamlyu,nUicKat,eSwpaitihn.e3xiFstOinCgrceuqsutoirminegrsh.uWmeanarientmerivgernattiinogn fpreormyeleasrs. 1e.f8fic1i.e4n0t.m9 a0n%ua2l9m%od6e0l%s a5n5d%ca6l5l %cen9t5re%s,9to%"2a1lw%ay>s4-0o%n"1d5ig%ita8l2m%ar1k0e0t%ingA. mAtbithtieonenFdulolfytdhiegfitianlaonpciearlaytienagr,m1o1doefl oAucrc1el3erEautirnogpedaignitmalartrkaentssfworemreatuisoinngOtuhreasme nbeitwionsyWsteemhsa.ve Aa ccrloeasrs athmebGitrioonupt,owsterehnagvteheonveoru2r0d,i0f0fe0retenatimatimonemanbderlseawditthhienionudrusshtrayreind cseaprvtuicreinsg, utnhedebretnheefibtsanonfedrig"i_tValO. AISs"a. Trehsiuslti,swa ediagrietaslyospteemraatitiocnasllcyetnrtarnesofofremxicneglleonucreo.pOevraetrinthgemlaosdtetlwboyybeeairnsg, wDeighitaavle`Fcirresat'tedd3e,5li0v0erFinTgEarofulendeaffmiceinetnaclilyesimthprorouvgehdrocubosttoicms,eraretixfpiceirailenincteelwlihgeilnstcealasnodstprruocctuesraslolyptliomwiesaritniogno. urAcosssitsbtiansge.oWurecsuhsatoremdeorsuwr aitmhbriotiuotninseaqt uaenriiensveisstaorceenvternatl ipnarSteopfteomurbeorpe2r0a1ti9o,nws.hIenreFwYe19d,iswceuscsoenddtuhcreteedporvimerar4y2amreiallsioonf afossciusste:ddicgoitnavlecrusasttoiomnesrthmroanuaggheomuerncto, ndtiagcittacletnetcrhensoelvoegryymmaonnatghe. mOeunrtdaingidtadligjoituarlnoepye:rtaotwioanrsd.s2a3fVulolydadfiognitealGorpoeurpatPinlcgAmnondueallMRaerpcohrt2o0n17FMoramrc2h02-0F2200M20arch 2021+ `Digital Vodafone' Digital `First' Building the foundations/Systematic
Annual Report on Form 20-F 2020 Our strategy (continued) Our progress We employ significant capital resources across both our fixed line and mobile communications infrastructure. The quality of our network is of paramount importance in delivering an overall compelling experience for our customers. Over the past year we have explored a number of routes to improve both the capacity and coverage of our networks, whilst also improving the utilisation of these valuable assets. These initiatives include: During the year, we made strong progress in each of these areas, with the following highlights: We have now secured a range of network sharing partnerships across Europe including: Deutsche Telekom in Germany, Telecom Italia in Italy, Orange in Spain and Romania, Telefonica in the UK and Wind in Greece. These network sharing agreements support improved mobile coverage in rural areas, reduce our environmental impact, increase the pace of 5G network deployment and generate significant cost savings. In July 2019, we announced our intention to separate our European tower infrastructure and to explore a variety of monetisation alternatives. We have now completed the operational separation, with the full management team in place. We are preparing for a potential IPO in early calendar 2021, and we are targeting to provide financial information at our interim results in November 2020. "Passive" sharing: reciprocal access wiitnhfroatshtreurcctoumremshuanriicnagti:ornescipprroovciadlearscctoestshwe ipthhyostihcearl cmoombmileunsiitceasti(oin.es. ptorwoveirdsearnsdtorobooftthotphse) tpohyinssictaalll mraodbioileeqsiutiepsmaenndt;radWioeeqhuaivpemmenadt,eoautfsaisdtestoafrtmoanjoirntuergbraantinargeathse; arnecdentAlyssaectq"umireodneLtiisbaetritoynG":lomboanleatsissientsgionuGr einrmfraasntyruacntudrCe EasEseatns,dhriegmhlaiginhtcionngfitdheenvtatlhuaattiwoen wgaipllsdbeelitvweeretnheinf5ra3s5trumcitluliroenaosfsetatsrgaentdedlisatnendutaelleccoosmt amnudnciacpaetixonssavpirnogvsidbeyrsth. eNfGifNthffiuxleldy-elianrepnoesttw-coormk pMleotiboinle. nWetewhoarvkeslhaaurninchgeadncdosncvaelergdefdixoefdfeirnsfriansatrlul cfotuurremVaordkaeftso,naen4dGarceoevnecraogueraogfepdobpyultahteiounpitnakEeu. roIpneMMaarrckhet2a0b2le0,hwome ecsomwpitlhet3emd t3hme m25ermge9r6o%f o9u8r%pa2s3simve9t6o%we1rmin9fr8a%str9u9c%tur3emin3Imta1ly36wmith8I4N%W9I7T%. T9h7i%s m3e6rmge2rmha9s6c%rea2tmed9I9t%aly2'9s mlea7dmin9g6t%ow1e0r0c%om1p0a0n%y wMiothbiolevenre2tw2,o0r0k0sthoawrienrgs.aVgroedeamfoennetsriencepilvaecde in2.a1llbmillaijoonr minacraksehtsa:n5dGai3n79.57%citsiheasraechroolsdsinegigihnt tmhearckoemtsb1in3e6dmeinlltiiotyn. mInaArkpertialb2le02N0G, wNehroemceeisv:e3d2spmeiclliiaolndoivni-dneentdGs iogfabi0t.2cabpiallbiolen2f3olmloiwlliinong tohne-nINetWNIGTNre2c0apmitiallliisoantisotnraatengdicsupbasretnqeuresnhtilpyss6o1ldmdiollwionn4w.3h%oleosfaoleuracshceasreshToalrdginetginrgeacl.i5si0ngmaillfiuornthoenr-n0e.t4Gbiiglaliboint hoofmpreoscbeyedFsY. O23urImcuprrroevnitnsghaarseshetouldtiinligsaitnioInNOWuIrTamisb3i3ti.o2n%WanedaiwmetiontiemnpdrotoveretthaeinujtoiliinstatcioonntrooflaallloonfgtshiedeGTroeulepc'osmasIsteatlsiaa.sp"aDrteoefpopuarsfsoivceu"s ionnfriamstprurocvtuinregsthhaerGinrgo:uaps'sabreotvuer,nbount aclaspoitianlc.l2u4diVngodraefcoipnreoGcarloaucpcePslcs with other communications providers to the high-speed fixed infrastructure connecting mobile sites; "Active"
Overview Strategic Report Governance Financials Other information Our progress Over the last two years, we have executed a significant amount of portfolio activity, in order to reposition the Group as a converged communications technology provider across our two scaled geographic platforms in Europe and Africa. The optimisation of our portfolio is now substantially complete. The table on the right hand side summarises our activity. Acquisitions Germany & CEE Acquisition and integration of Liberty Global's assets for 18.5 billion in July 2019 Greece Acquisition of CYTA Telecommunications Hellas for 118 million in July 2018 Albania Acquisition of AbCom for an undisclosed amount in March 2020 Disposals New Zealand Sale of 100% holding to Infratil and Brookfield for 2.0 billion in July 2019 Malta Sale of 100% holding to Monaco Telecom for 242 million in March 2020 Qatar Sale of 51% holding to Qatar Foundation for 301 million in March 2018 Egypt MoU signed with Saudi Telecom in January 2020 to pursue sale of 55% holding for 2.2 billion Mergers Italy Merger of Vodafone Italy's towers into INWIT for 2.35 billion and 37.5% holding in INWIT in March 2020 India Merger of Vodafone India and Idea Cellular in July 2018 India Agreement on proposed merger of Indus Towers with Bharti Infratel in April 2018 Australia Merger of our existing Vodafone Hutchison joint-venture with TPG Telecom received competition approval in March 2020 Africa Consolidated our holdings in Safaricom and M-Pesa to be primarily held through Vodacom in April 2020 2019 2020 12 6 7 Legal separation in Germany and Spain 13 2020 NovPublishing financial information 3 Physical tower, masts and pole TowerCo 10 Outdoor cabinet Vodafone 2021 7 Cooling system TowerCo 14 Mounting equipment TowerCo Creating Europe's largest tower company 14July Separation programme announced 1 FebManagement team appointedr8ed3uc1e11o0uTr ofiwneanrCcioalolpeevreartaiognea. l295MVaoydafMonaenaGgreomuepnPtltceaAmnninuapllaRceep5or4toFnoFcoursmno2w0-oFn2f0i2n0ancials and operations AssetOwner AssetOwner 1 Active radio transmission equipmentVodafone 8 Surveillance systemsTowerCo 2 Antennae and cables (fibre/feeders)Vodafone9 Access facilities TowerCo2020 4 Foundation and fencingTowerCo 11 Shelter/service rooms TowerCo 5 Contractual right to occupy site areaTowerCo 12 Emergency equipmentTowerCo 6 Power equipmentTowerCo 13 Cable routing (duct) TowerCoEarly Targeted window for monetisation 2 Optimising the portfolio Our ambition Our aim has been to actively manage our portfolio in order to strengthen our market positions, simplify the Group and
Annual Report on Form 20-F 2020 Our key performance indicators Turning our strategic priorities into tangible performance indicators We measure our success by tracking key performance indicators that reflect our strategic, operational and financial progress and performance. These drive internal management of the business and our remuneration. customer base through market across our fixed and mobile customer 0.6 million broadband customers, and 0.5 million converged customers. 14.62 the relationship we have with our growth and improve customer customer loyalty, with mobile point year-on-year. continued to face ARPU pressure 30 As a result, we are seeking to diversify to offset this pressure. In fixed, we see market share as the market moves revenue growth (iPhone and Android only) service revenue range of services to our Business IoT connectivity, automotive and and health solutions. This year by 23.3% to 102.9 million. 11 On-net Gigabit capable On-net NGN Notes: 1 Includes VodafoneZiggo. 2 Excluding the impact of inactive data only SIM losses in Italy during Q3 and Q4 FY20. 3 Excluding the impact of one-off settlements. 4 IAS 18 basis excluding the impact of UK handset financing. 5 Includes Safaricom. Business Organic fixed-line service revenue growth % Our core Europe mobile business 3234 reflecting ongoing price competition. into fixed and business related services a signisfihcaarnet goapipnos,rtaunnditdyrtiovetackoen3v.e3rfgreonmceW1A7.N8 1to8.S8DbNas.eF. iDxeudri-nlignethseeryveiacre, wFiexeadddaesdain%cloufdBinugsi1n.e4sms 2il0li1o8n2N01G9N20c2u0stIoomTeSrsIM, 7.g2roBwrothadmbialnlidonCoWnevearrgeeadmcoanrksuetmleeradceurstionmtheersraApciqdulyir1e0d2.L9ibgerortwyiGngloIboaTl csuegstmomenetros f2f0er1i8n2g0a19d2iv0e2r0seM8o4b.9ilecucsotonmtraecrts cinhculrund%ingWmeaanraegfeodc6u8se.4d ionnsudreaenpceensinergv1ic5e.9s, 1s5m.5arct umsteotemrienrgs, wineogrrdeewr tIooTdrSivIeMrsevoennouuerlonyetawltoyr.kIn20F1Y82200,1w92e0f2u0rth3e.8r i2m.4prLoevaeddincgonGtrigacatbicthnuertnwdoorwksnM1opbeirlceednatatagegr2o0w1t8h2a0n1d92n0e2tw0o1r9k.3qu5a.3lit6y.6MAbfpriscWa De actoanatinndu4edGtdoasteaeussterrosn5gmdielmlioannd669%19o08f 7oufor rAmfroicbailceudsatotamoevrseruoseur8n2e.6twdoartka wseirtvhicthees tmodajaoyr.itTyoomf doanteatisseessoiuorn7s2d.4e7li5v.e6rendetawtohrikghin-dveefsitnmiteinotn, w(`He Dai'm) qtouaglritoyw(it.hee.6n3uemxbceeredosf 3cMusbtopms)e.r%s udsaintagg4rGow, wthh%ichdastuapspeosrstisondast>a3uMsabgpes, 2w0i1th824G019pe2n02et0raEtiuornopneowowant e2d2%N.GDNatcaouvseerrasge4Gancdussttroamteegrisc2p0a1rt8n2e0r1sh9i2p0s210mMil-liPoensam5aNrkoe.taobflceuhsotoumseehrosl(dms ipllaisosne)d/trTaonsmaceteitotnhveoglruomwein(gbidlleiomna)nMd -foPre7s5a,NoGurNAffirxiceadnapnadycmoennvtesrg4e1d.5spelravtifcoersm63, cwonetainimuetsotocosnetein3u7a.l1lyraoppitdimadisoepotiuornNwGitNh creuastcohmaenrds p3e3n.0etgrarotiwonin. gWbeyn1o2w%cionvtehre1l3a6stmyielaliro. nAmddairtkioentaablllye houorusceuhsotoldmse.4r3reTlahtiisocnoshmipprcisoenstionfu5e5s tmoidlleieopnehnowusiethhonledws osner-vniecte, s20sumchillaisonbuthsirnoeusgsh1s2t.r2atpeagyicmpeanrttsn,efrisnhainpcsi,aalnsderavifcuersthaenrd6m1 ombiillleiocnovmiamwerhcoel.eNsaol.eoafcccuesstsotmeremrss.TSrtarnastaecgtiiconpavrotnluermsheip20s128021081290210922002101.50585.943372.122263.67 5117.4292E6uVroopdeafBornoeadGbraonudp aPnlcd converged consumer customers1 million We aim to grow our fixed broadband 25.0
Overview Strategic Report Governance Financials Other information Financial performance The Group performed well this year, growing organic service revenue by 0.8%* to 37.9 billion, adjusted EBITDA by 2.6%* to 14.9 billion and delivered free cash flow (pre-spectrum) of 5.7 billion. As a result we achieved our financial targets for FY20. See "Alternative performance measures" on page 239 for details and reconciliations to the respective closest equivalent GAAP measure. Paying for performance The incentive plans used to reward the performance of our Directors and senior managers, with some local variances, include measures linked to our KPIs. This year performance under the financial metrics was broadly at or above the mid-point of the target range with performance under the customer appreciation KPIs metrics being below the mid-point of the range. Further details can be found in our Directors' Remuneration Report. Read more on rewards and performance in the Remuneration Report 96 ability to grow our customer base to grow revenue as commercial markets. Overall, we delivered organic 0.8 in the year. 0.33,4 6.27 of new Mandatory Convertible bonds the Group's adjusted EBITDA margin of long-term shareholder returns. of free cash flow pre-spectrum, how efficiently we generate profit both pre and posttax ROCE increased Pre-tax Post-tax Return on capital employed % Return on capital employed measures with the capital we employ. In FY20 driven by our improved service revenue performance, digital transformation and improving asset utilisation. 2019 20202019 2020 6.1 3.5th4is.0ye5a.3r aNnedt cdoenbstetqouaednjtulsyte3d.1E2B.6ITimDpArorvaetidobWy e0.a7impetrocemntaaignteapinoionutrs ftion3an3c.1ia%l2..29021.882l0e1v9er2a0g2e0wOirthgainniacrsaenrgveicoefr2ev.5en3u.e0xgrnoewt tdheb%t tGoraodwjuthsteindrEevBeInTuDeAdeamndonasrteratatersgeotuinr2g.0to3,m4oavned/toortAheRlPoUw.erTehnisdy2.e0arowf tehecornantigneueodvemrothmeennetuxmt feimwpyroeavresd. RacerpoosrsteodurPGrorofourpmsaerfvoirctehreeLveibneuretygGrolwobthalotfra0n.8s%ac*tio2n0128021081290210922002E0ur1o.9peFnreeet ocapsehraftlionwg epxrpe-esnpseecrtreudmuctibonnCbanshOgveenretrhaetiolanstistwa okeyyeadrrsivweer 5h.a4v5e.40.54.70.4IngFeYne2r0a,tewdeodveelrive0r.e8dbil5l.i7onbiolflionnetaonpienxcrseaavsiengosfa4g.7a%insyt eoaurr-oFnY-y2e1a>r.210.218b2il0l1io9n200.230oDpeixvipdleannd.sApserwsehaacreceeluerroacteenotusrTdhigeitoarldtirnaanrsyfodrimviadteionnd,pweer shhaavreee1n5l.a0r7gecdonatnindueexsptaonbdeedaokueryccoosmt rpeodnuecntitoonftsahragreethaonlddenrorwetuerxnp.e9c.t0t0o9d.0e0liv2e0r1a8t2l0e1a9st20120biAlldiojunsotefdneeat ronpinexgssapveirnsghsadreureiunrgocFeYn2ts1A2d3juisnteadddeiatironnintgostpheers0h.a8rebidlleicolninaeldre1a1d.5y9d3e,4livbeyre1d0..270%18, 2p0ri1n9c2ip0a2l0ly2d7riVvoendabfyoninecGreraosuepdPfilncaAnncinnugalcoRsetpsoarntdoan hFiogrhmer2a0v-Fera2g0e20share count following the issuance in March 2019.5.60 201820192020 Organic adjusted EBITDA growth % Growth in adjusted EBITDA supports 6.53,4 our free cash flow which helps fund investment and shareholder returns. Our adjusted EBITDA grew organically 3,4 by 2.6%*
Annual Report on Form 20-F 2020 Chief Financial Officer's review Commercial performance: Accelerating momentum across Europe and Africa Our commercial momentum has been improving in all of our major European markets. Group organic service revenue increased by 0.8%* to 37.9 billion in FY20. We exited the year with service revenue growth of 1.6%* in Q4. Good financial performance and relatively resilient operating model It has been a busy year and I'm pleased with the progress we have made on our three key financial priorities. These were to deliver a more consistent commercial performance in Europe, transform our cost base by leveraging new digital technologies, and to optimise our capital allocation to improve our return on capital and balance sheet strength. In FY20 we performed well, growing organic adjusted EBITDA by 2.6%* to 14.9 billion and delivering free cash flow (pre-spectrum) of 5.7 billion, which was ahead of our "around" 5.4 billion guidance. Our German business now represents a third of Group adjusted EBITDA and around 40% of free cash flow, following the acquisition and integration of Unitymedia's cable and TV assets. Service revenue was flat* at 10.7 billion as solid retail growth was offset by declining wholesale revenues and the impact of international call rate regulation. Excluding these impacts, retail revenue grew by 1.7%* (including Unitymedia), supported by our improved commercial momentum and record cable net customer additions in H2. In Italy, service revenue declined by 3.9%* to 4.8 billion. Mobile customer trends improved throughout the year despite significant low-end price competition, and in the fixed business we continued to maintain good growth. In the UK, we returned to service revenue growth reflecting our strong commercial momentum during the year. This was supported by obuurssinuecscse,sVsfoudl alacuonmc,hpoefrfsopremeedd-tiwereeldl wunitlhimseitrevdicdearteavpelnaunessingrmowobinilge,3o.3u%r c*ot-obes4t.n5ebtwilloiorkn.pTorseitniodns,inanSdoruetchoArdfrcicoansimumpreorvfeixdeddebsrpoitaedbreagnudlaatdodryitiaonnds minaQcr4o. pSreersvsiucererse, vaennduVe ogdreawcobmy's0.I5n%te*rntaotio5n.a0l boiplleiroanti.onsTchoenmtianrukeedt tino Sgrpoawinshtraosnbgeleyn. 2c8haVlloednagfionngefGorrosoump ePltcime following the entrant of a new competitor. Our service revenue declined by 6.7%* to 3.9 billion. However, the commercial actions we have taken have stabilised our customer base and improved the rate of our service revenue decline to 2.7%* in Q4. In our other Europe markets, we continued to perform well with service revenue growing by 3%* to 4.9 billion. Customer growth remained robust across both mobile and fixed line, and we exited the year with single digit mobile contract churn in four out of seven markets. Our African
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Annual Report on Form 20-F 2020 Our financial performance Good results with improved commercial momentum Group revenue grew by 3.0% to 45.0 billion, driven by improving commercial momentum in Europe Total net operating cost savings of 0.4 billion in the year, facilitated by continued digital transformation Adjusted EBITDA grew by 2.6%* to 14.9 billion, reflecting commercial momentum and cost savings progress Free cash flow (pre-spectrum) grew by 4.7% to 5.7 billion, driven by revenue and adjusted EBITDA growth and capital discipline Dividends per share of 9.00 eurocents All amounts in this document marked with an "*" represent organic growth, which presents performance on a comparable basis, both in terms of merger and acquisition activity (notably by excluding the disposal of Vodafone New Zealand and the acquired Liberty Global assets), movements in foreign exchange rates and the impact from the implementation of IFRS 16 "Leases". Organic growth is an alternative performance measure. See "Alternative performance measures" on page 239 for further details and page 241 for the location of the reconciliation to the respective closest equivalent GAAP measure. Group1,2 Notes: 1 IFRS 16 "Leases" was adopted on 1 April 2019 for our statutory reporting, without restating prior oppeerriaotidngfigpurroefsit.,A-s2a5rmesiulllito, nth(e20G1r9o:u-p's26stmatiultloiorny, r2e0su1l8t:s-fo9r tmheillyioenar) einncdleudde3d1 wMitahricnhR2e0s2t0ruacrteuroinngancoIsFtRs,S-1261b5amsisil,liwonhe(r2e0a1s9t:he-c4o2m0pmairlalitiovne, p2e0r1i8o:d-fo4r3t9hemyiellaior ne)ndinecdlu3d1edMwaricthhin20A1m9 oarrteisoantioann IoAf Sac1q7uibraesdisc.uNstootme e1robfatsheedcaonndsoblriadnadteidntfainnagnibcliealasstsaettesmaenndts-e2x,p0l2a4inms itlhlieoinmwphacicthofisthperiandcoippatliloynroeflaItFeRdSto1V6oodnafthoneecoIdnesaolLidimateitdedfi(n2a0n1c9ia:l-po1s1i4tiomnilalito1n,A2p0r1il82:01n9il.)2inTchlued2e0d2w0 irtehsiunltOstrheefrleacdtjauvsteerdagiencfoormeeig/(nexexpcehnasen)g.e5rIamtepsaoifrm1en:£t0lo.8s7se, s1re:IlNatRe t7o8S.7p8a,in1(:Z8A40Rm1i6ll.i4o2n,), 1Ir:TelRanYd6(.5623a0nmdill1io: nE)G, RPo1m8.a1n8i.a3(S1e1r0vimceilrleiovne)nuane,daVdjoudsatefodnEeBAITutDomAo, taidvjeus(te1d05EBmIiTlliaonnd).aTdhjuestperdioorpyeeraartiinmgppariormfiteanrteloaslsterrenlaattievsetpoeSrfpoarimn a(nc2.e9mbeilalisounre),sRwohmicahniaare(n0o.n3-bGiAlliAonP)manedasVuroedsatfhoanteaIrdeepare(se0n.3tebdiltloiopnr)o.v6idReerveeardsearlsowf iinthteardesdtitoionnlaelafsienlainacbiialiltiiensfoinrmclautdioend twhaitthiisnraedgjuulsatreldy EreBvIiTewDeAd ubnydmeratnhaegeGmroeunpt 'asnddesfhinoiutilodnnooft tbheatvmieewtreidc,infoirsorela-ptiroenseonrtaatsioann ianltnerentaftiinvaentcointghecoeqstusi.vFaYle2n0t 1G,2AAmP FmYe1as9urem. CFhoar nthgee yReeavreennudee4d43,917M4 a4r3c,h6626032.00,Saerrevviicseedredveefniuneit3io3n7o,8f7a1dj3u6s,t4e5d8E3B.9ITODthAerhraesvebneuene 7ap,1p0l3ied7.,2T0h8i(s1r.e5s)trAicdtjsutshteedpEerBioITd-DoAn-3pe1r4io,8d8c1o1m3p,9a1ra8b6i.l9ityDoepfrceecritaatiinonofanthdeaGmroorutpis'astiaoltner(n1a0t,i0v8e5p)e(r9f,o6r6m5a)n(c4e.3m) eAadsjuursetse.dSEeeBI"TA3lt4er,7n9at6iv4e,2p5e3r1fo2r.m8 aSnhcaeremoefaasudjruesst"edonrepsaugltes2in39asfsoorcmiaoteres iannfdorjmoianttiovne.n4tuSrehsa4re(2o4f1r)es(3ul4t8s)o3f0e.7quAitdyjuasctceoduonpteedraatisnsgocpiraotefist3an4d,5j5o5in3t,v9e0n5t1u6re.6s Aprdejsuesntmtedenwtsitfhoirn: tIhmepCaiornmseonlitdlaotsesd5i(n1c,o6m85e)s(t3a,t5e2m5e)nRt iensctrluucdteusri-ng24c1osmtsil(l7io2n0)(2(408169): A-m34o8rtmisailtliioonn,o2f 0a1cq8u: ir3e8d9cumsitlolmioenr) binacsleusdaenddwbirtahnind Aindtajunsgtiebdle
assets (638) (583) Adjusted other income and expense4 2,257 (262) Interest on lease liabilities6 330 Operating profit /(loss) 4,099 (951) Non-operating income and expense (3) (7) Net financing costs (3,301) (1,655) Income tax expense (1,250) (1,496) Loss for the financial year from continuing operations (455) (4,109) Loss for the financial year from discontinued operations (3,535) Loss for the financial year (455) (7,644) Attributable to: Owners of the parent (920) (8,020) Non-controlled interests 465 376 Loss for the financial year (455) (7,644) 30 Vodafone Group Plc
Overview Strategic Report Governance Financials Other information Total Europe: 77% of Group adjusted EBITDA Germany: 34% of Group adjusted EBITDA FY20 m FY19 Organic Change* FY20 m FY19 Organic Change* m % m % Europe revenue increased by 5.1% and organic service revenue decreased by 1.2%*, reflecting competitive pressure in Italy and Spain offset by good growth in the UK and Other Europe, and retail growth in Germany. Europe adjusted EBITDA increased by 10.7%. On an organic basis adjusted EBITDA increased by 1.6%* as service revenue declines were offset by a 0.4 billion reduction in operating expenses. Europe adjusted EBIT grew by 26.3%, reflecting the contribution of the acquired Liberty Global assets. The following table sets out the progression of organic service revenue growth during the year. FY20 (organic service revenue growth %) Service revenue excluding Unitymedia was flat* (Q3: flat*, Q4: -0.1%*) as solid retail growth was offset by declining wholesale revenue and the impact of international call rate regulation. Retail revenue grew 1.1%* (Q3: 1.0%*, Q4: 0.9%*). Fixed service revenue increased by 2.4%* (Q3: 2.8%*, Q4: 2.2%*) as good retail growth was partially offset by wholesale declines. DSL migrations to the Unitymedia footprint are excluded from our Q4 oourrgbarnaincdgerdowcothnsruamtee.rObuarsecoamndmBerucsiianlemsso.mAednjtuusmtedacEcBelIeTrDatAediwncirthea3s8e1d,b00y02.n5e%t c*aabnledcthusetoomrgearnaicddaidtjiuosntsedinEtBheITyDeaAr (minacrlguidninwgasU0n.i8ty*mpeedrciaenftraogme pAouignutssth2ig0h1e9r),,dsruipvpenorbteydobuyr 1fo1c0u,0s0o0nmmiogrreatpioronfsitfarbolme dDirSeLctacnhdatnhneelssuacncedsesfofefcotiuvre"cGoisgtamCaanbalegeMmaexn"t.cTamhepaadigjunsftoeldloEwBiInTgDthAe mreabrrgainndwinagso4f2U%n.iQty1mQed2iaHi1n QFe3bQru4arHy22F02Y02;0wEeuardodpeed(12.176),(010.04)b(r1o.a6d)b(a1n.4d)c(u0s.t4o)m(0e.r9s). (W1.e2)mRaiensttaoinfeWd ooruldr g5o.3od8.m9o7m.7e9n.t1um7.9in8c.5on8v.1erTgeontacleGsuropuppor(t0e.d2)by0.7ou0r.3"G0.i8ga1K.6om1.b2i"0.p8rRopeostsiotifoWn,oardlddirnegve2n5u9e,0d0e0crCeoansesudmbyer3c.8on%vearngdedorcguasntiocmseerrsviicnethreevyeenaure, winhcircehasteodokbyou8r.1t%ota*l, CreoflnescutminegrgcooondvegrrgoewdtchuisntoTmuerkrebyasaendtoE1g.5ypmt ialnlidonc.oOntuinruTeVd gcuroswtotmheart bVaosedadceocmlin. Aeddbjuyst2e4d5E,0B0I0T(DinAcludedcinregaUsenditbyym2e.d0i%a f.rOomn aAnuogrugsatn2ic01b9a)sirsefaldejcutisntegdthEeBlIoTsDs oAfipnrcirmeaasrieldy bloyw6e.8r %AR*,PdUrivbeansicbyTVsersvuibcescrreibveenrsuiengtrhoewKthabaehleDadeuotfsicnhfllaantidonAaGnd("gKoDodG"c)osfot ocotpnrtirnotl.aAnddjcuusstteodmEeBr IloTssgersewinbthye3U.2n%it,yrmefeldeciatinfogootppreirnatt.iMonoablipleersfeorrvmicaenrceevaennduecodsetcclionnetdrobl.yT1h.8e%C*O(VQI3D:--129.2p%an*d, eQm4i:c-h1a.9d%a*r)eldartiivveenlybmy idneocrliinmepsaicntwonhoFlYes2a0lepaenrdfoarmdarangcef.roHmowreegvuelra,tfioonll.oRweintagiltrheeveenndueofexthcelufdininagncrieagluylaeator,rywiemhpaavcetssgeerenwgr0e.a7t%er*r(eQsi3li:e0n.c4e%o*f ,oQur4b: u0s.4in%e*ss).iWn Geeardmdaendy5a4n2d,0a00mcoorentsriagcnticfiucsatnotmimerps,ascut popnoprteerdfoirnmpaanrctebyinthSepasiuncicnespsaortficouulrar".GTihgeaCimubmee"dpiarotepoimsiptiaocntsaosfwCeOllVasIDby-1o9uhracvoenbtieneunedongoinotdercnoamtiomnearlcrioaal mmionmg,enutsuamgeinlevberalsnadnedd tchheanranteelss.oCf conutsrtaocmt ecrhcuhrnurinmapnrdovaedddbityio0n.s8. IpnerAcepnritla,gweephoainvtes syeeeanr-roona-myeinargiinnQE4urtoop1e2f.a3l%l b,ydr6i5v%entboy7i5m%p.roMvoedbilloeydaalttay hinas increased by 15% and fixed line usage has increased by as much as 70% in some of our markets. We have seen the rates of customer churn reduce by 4-5 percentage points and the rates of new gross consumer additions reduce by around 40%. With our business customers, we have seen SMEs requesting deferrals for payments and have been contacted by some EnterpriseEcuursotpoem1eVrosdsaeceokmingOttohedreGlaryopurpo1jecmts. mTotmalrmevemnume 1m2,07m61m0,Y39ea0rSeenrdveicde3r1evMenaurceh1200,62906T9o,t1a4l5revOenthueer(remve)n1u2e,017,36850,512,9264,548A4d4j,u2s9t6ed5,E54B1I3T3D,7A9355,0,5737144,,03789624.45,9A7d4juSsetrevdicEeBrIeTvDenAuem(armgi)n1402,6.09%643,893.33%5,0D2e0p3r,9ec0i4a4ti,o8n90a2n9d,2a1m3o4r,t4is7a0t3io,7n9(633,377,867)1(3A,0d0ju9s)teAddEjuBstIeTdDEAB(ITm1),750,01717,20,70068S1h,a5r0e0o1f,0a0d9ju1s,7te3d81re1s,u3l9ts22in,0a8s8s1o,c4i0a0te1s4a,8n8d1joAindtjuvsetnedtuEreBsITD AAdmjuasrtgeidno(%pe)ra4t2in.0g3p7r.o4f2i3t .11,2730.15311,0.47303T.7o3ta7l.8re3v1e.9n3u3e.133A,7d9ju3s3te2d,1E4B4ISTer(vimce) 1re,7v0e1nu81e32(91,3221)3(2279,46)8500(11.22,)58O9t1h,e3r2r1e9v0e2n4u,e749,658A0d4ju,4st6e4d AopdejurasttiendgEpBroITfiDt/(Alo1ss1),3(9m2 )101,,27809118.163A(1d3j2u)st(e2d94E)B6I1T9D2A,70m7a1r,g5i6n93239.774%,55352.301%VDoedparfeocnieatGiornouanpdPalcmAorntnisuaatiloRne(p8o,8rt0o3n) (F8o,2rm392)0A-Fdj2u0st2e0d EBIT 2,589 2,050 Share of adjusted results in associates and joint ventures 118 150 Adjusted operating profit 2,707 2,200 Geographic performance summary: improving commercial momentum Note: 1 For a full disaggregation of our financial results by geography, including intersegment eliminations, see pages 242 and 243. Germany Italy UKSpainOther Europe Total
Annual Report on Form 20-F 2020 Our financial performance (continued) Italy: 14% of Group adjusted EBITDA UK: 10% of Group adjusted EBITDA FY20 m FY19 Organic Change* FY20 m FY19 Organic Change* m % m % Service revenue declined by 3.9%* (Q3: -5.0%*, Q4: -3.7%*) with good growth in fixed offset by declines in mobile. Mobile service revenue declined by 7.4%* (Q3: -7.7%*, Q4: -8.0%*). Market mobile number portability (`MNP') volumes were down 23% year-on-year in FY20 and were down 17% quarter-on-quarter in Q4. MNP further improved in March, reducing by 37% month-on-month, as COVID-19 impacted commercial activity market wide. Our customer outflows also moderated during the year. However, competition in the low-value segment of the pre-paid market remained intense, and our second brand "ho". continued to grow strongly, reaching 1.8 million active customers at the end of the year. Fixed service revenue increased by 8.2%* (Q3: 4.2%*, Q4: 10.4%*) and we added 121,000 broadband customers in the year. Our total Consumer converged customer base is now 1.0 million (representing 36% of our broadband base), an increase of 92,000 in the year. Through our owned NGN footprint and strategic partnership with Open Fiber we now pass 7.5 million households. The saedqdueednt4i7al5Q,0400impprerpovaiedmceunsttoinmseerrsv, iscueprpeovretneduebyproimurardiilgyitraelflseucbt-ebdrahnigdh"eVr pOrXojIe"c.tFriexveednuseersviinceBruesvienneusse. iAncdrjeuassteedd bEyB1IT.7D%A*d(eQc3li:n0e.d5%by*6, Q.64%:*3.i7n%cl*u)d.inCgonat2in.7uepdergcoeondtacguestpoominetrngergoawtitvheinimCpoancst ufmroemr baroonade-boafnfdr,egsuuplaptoorrtyedprboyvitshieonla,uanncdhthoef oaudrju"sVteoddEafBoInTeDTAogmetahregri"n cdoencvlienregdenbtyp0la.4n*s,paenrdcegnrtoawgethpioninBtsu.sSineervssicwearsevpeanrutiealdlyecolfifnseest wbyerleowpaerrtiwalhlyoloefsfasleetrbeyvetinguhetsc. oWnteroaldodfedop1e7r6a,t0in0g0ebxrpoeandsbeasn,dwchuiscthomfeellrsbyin7t.h6e%y*eayreianrc-olund-yinegar6,4to,0g0e0thienrQw4it.hTshiegnsiefqicuaennttliyalloQw4eirmcpormovmeemrceinatl pcroismtsa.rTilhyereafdljeucsteteddaEsBtaIbTiDlisAatmioanrgininwwhaosle3s7al.4e%re.vSeenruvei.ceArdejvuestneudeEinBcIrTeDasAedin0c.5r%ea*se(dQb3y: 01.06.%5%*,*Qa4n:d1t.h2e%a*d)j.uGsteododEfBixITedDaAndmmarogbinilewcauss1to.6m*eprebracseentgargoewpthoiwntasshpigarhteiar.llTyhoifsfsimetpbryovloemweerntwwhaosledsrailveernevbeynsueervaincde rae0v.e4npueergcreonwtatghe, apo9i.n9t%d*rargedfruocmtioinntienrnoaptieornatailncgaellxrpaetnesreesgaunladtiaon2..0Mpoebrcileenstaegrveicpeoirnetvnenetubeewneasfitfltaot*gr(oQw3t:h0f.r6o%m*,oQne4-:o0ff.3l%ice*n),sebufetegrseewttlewmheenntsexacnldudainregalthloeciamtiopnacotfocfoisnttserfnroamtiocnaaplecxaltlorcatoestreogfuslaalteios nfo, wlloitwhianghioguhrenrecwusctolomuedrpbaarstenearnsdhiRpPwI-itlihnIkBedMp. rTicheeiandcjruesatseedsEbBeiInTgDoAffsmetabrgyinlowwaesr2o3u.t1-o%f-. bTuontdallererevveennuuee6a,4s8a4r6e,s2u7lt2oSfesrpveinced rceavpepniuneg.5W,02e0ad4d,9e5d2304.58,O00th0ecrornevtreancut ecu1s,4to6m4e1r,s3i2n0tAhedyjuesatre,dcoEmBpITarDeAd t1o,520604,10,03064la1s0t.y5eAard,jsuusptepdorEtBedITbDy Aoumr naregwinra2n3g.1e%of2c1o.7m%meDrcepiarlepcilaatniso,ninacnldudaimngorstpiseaetido-ntie(r1e,d63"2V)o(d1,a6fo38ne) AUdnjluimstietdedE"BmITob(i1le32d)a(ta27p4r)opSohsairteioonfsaadnjdusoteurd5rGesulaltusnicnhaisnsoJcuilayt.eCs oanndtrajoctincthvuernntuwraess stabAledyjueasrte-odno-pyeearartiantg14p.r2o%fiti(n1Q324),(d2e7s4p)itTeothtael irmevpeancuteof5,t5ex2t9-t5o,-8s5w7itSchervreigceulraetvioenn.uWe 4e,8a3ls3o
5,030(3.9) Other revenue 696 827 Adjusted EBITDA 2,068 2,202(6.6) Adjusted EBITDA margin 37.4% 37.6% Depreciation and amortisation (1,255) (1,268) Adjusted EBIT 813 934 Share of adjusted results in associates and joint ventures Adjusted operating profit 813 934 32 Vodafone Group Plc
Overview Strategic Report Governance Financials Other information Spain: 7% of Group adjusted EBITDA Other Europe: 12% of Group adjusted EBITDA FY20 m FY19 Organic Change* FY20 m FY19 Organic Change* m % m % Service revenue declined by 6.7%* (Q3: -6.5%*, Q4: -2.7%*), reflecting a shift in overall market demand towards the value segment and our decision not to renew unprofitable football distribution rights. The improvement in quarterly trends reflected the benefit of a December price increase for legacy customers, the stabilisation of our customer base in recent quarters and customer migrations to speed-tiered unlimited plans. Our commercial performance stabilised during the year, supported in part by the good performance of our "Lowi" second brand. We returned to positive customer growth in mobile contract, broadband and TV in Q3 for the first time since Q3 FY18 and maintained our commercial momentum in Q4, adding 51,000 mobile contract customers and keeping our broadband customer base stable. We added 41,000 TV customers in Q4, supported by our new movies and series offers and despite our decision last year not to renew football content rights. The overall pricing environment remains highly competitive, but we continue to see good uptake of our new speed-tiered unlimited p7l.a5n%s w*)i,thdr2iv.4enmbilylicounsctoumsteormgerroswatththine efinxdedofanQd4.mOonbialev,earnagdeA, tRhPe UARgrPoUwtohf iunnfliixmeidte.dIncuIrsetloamnder,sseisrvhiicgehreervpeonsutemdiegcrlaitninedg btoyt0h.e9%ne*w(Qpl3a:n0s..1A%d*ju, sQte4d: E-3B.6IT%D*A), wdeitchlitnheedsbloyw1d.7o%w*n ianndquthaerteorrlgyatnriecnaddsjruesftleedctEinBgITinDcrAeamseadrgcionmwpaesti1ti.o5n* ipnebrcoetnhtamgoebpiloeinatnsdhfiigxheedr.. ITnhGisrweeacsep, rsienrcviipcaellryevdernivueengbreywthbeyre3d.0u%ct*ion(Qi3n:A1R.9P%U*a, nQd4:a1lo.9w%e*r)c,uwstiothmgeorobdasper,eppaaridtiaAllRyPoUffsgertobwythlopwaerrtiafolloytboaflflsectobnyteAntRcPoUstsparensdsuar3e.8in%f*ixreedd.uGctiivoennitnheopcehraaltliennggeinxgpeencsoenso.mTihcecaodnjduisttieodnsEBanIdTDinAcremaasergdincowmapse2ti3t.i5o%n i.nAIdrejulasnteddaEnBdIRToDmAanreiatu, rmnaendatgoegmroenwtthhaisnrHea2s,suespse8d.2e%x*peycetaerd-ofun-tuyreearb,ussuipnpesosrtpeedrfboyrmloawnecre.cFonotlelonwt ainngd tchoims rmeaesrsceiasslmcoesntts,.pGroivjeecntethdeccahsahlflelonwgisnagrceulrorwenetr tarnadditnhgisahndaselceodntoomimicpcaoinrmdietinotncsh,amrgaensagoef m0e.n6t bhialsliorenaassnedsse0d.1thbeilelixopneicnterdelfauttiuornetboutshieneGsrsopuepr'fsorimnvaensctme ienntSipnaIinre. lFaonldloawndinRgothmisanreiaasrseesspsemcteinvet,lyprfoojrecthteedyceaasrhenfldoewds3a1reMloawrcehr2a0n2d0t.hVisohdaasfolendeZtoigagnoijmopinatirvmenentutrcehTarhgeereosful0ts.8ofbVilloiodnaffoonretZheigygeoa(rinenwdehdic3h1VModaarcfohn2e0o2w0.nSsearv5i0c%e rsetvaekneu) eariencrreepaosretdedbhye3r.e0u%n*de(Qr U3:S3G.0A%A*P, ,Qw4h: i3c.h4%is*b)r.oRaedvlyencuoensgirsetewntinwPitohrtVugoadla,fGonreee'sceIF, tRhSe bCazseicshoRf reeppuobrltiicn,gR. TomotaanliraevanenduHeugnregwary2,.1b%ut (dQec3l:in2e.9d%in, QIre4l:a3n.d3%an)d. TAhlibsarneifal.ecAteddjugstreodwEthBiInTDfixAedgrleinwe,bpya4rt.i7a%lly*oafnfdsetthbeyocrgoanntiincuaeddjupsrtiecde EcoBmITpDetAitiomnairngimnoinbcilree,apseadrtibcyul0a.r6ly* ipnerthceenBta2gBe speogimntes,ndt.riRveevnebnyueggoroedwre3v.3e%nueingQro4wpthrimanadrislytrodnuge tcoosctucsotonmtreorl.bTahsee gadrojuwstthe,dinEcBrIeTasDeAd fmixaerdgiAnRwPaUs 3a1n.d4%in.crIenaPseodrtuhganald,sseetrsvaiclees.reOvveenru4e0g%rewofbbyro5a.5db%a*nd(Qc3us: t5o.m9%er*s,aQnd4: 70% of all B2C mobile customers are now converged, delivering significant NPS and churn benefits. Adjusted EBITDA grew by 4.7% during the year supported by strong growth in the second half of the year (Q3: 9.6%, Q4: 4.9%), driven by top line growth and lower operating and direct costs. In February, we finalised the 3G shutdown program, with all customers transitioned to 4G. We continued to make good progress on integrating the businesses and expect to reach our 210 million cost and capital expenditure synergy targets by the end of the 2020 calendar year, one yeAadrjauhsteeaddEoBf tIhTe(o2r9i4g)in(a2l2p0l)aSn.hDarueroinfgadthjuesyteedarr,eVsuoldtsafionnaesrseocceiaivteesdan1d4j8oimnitlvlieonntuinredsivideAnddjsufsrtoemd othpeerjaotiinntgvpernotfuirte(,2a9s4)w(e2l2l 0as) 3344VmodilalfioonneinGirnotueprePstlcpaAynmneunatlsRaenpdort1o0n0 Fmoirllmion20i-nFp2ri0n2c0ipal repayments on the shareholder loan. Total revenue 5,541 5,072 Service revenue 4,890 4,4603.0 Other revenue 651 612 Adjusted EBITDA 1,738 1,6064.7 Adjusted EBITDA margin 31.4% 31.7% Depreciation and amortisation (1,237) (1,066) Adjusted EBIT 501 540 Share of adjusted results in associates and joint ventures 118 150 Adjusted operating profit 619 690 Total revenue 4,296 4,669 Service revenue 3,904 4,203(6.7) Other revenue 392 466 Adjusted EBITDA 1,009 1,038(1.7) Adjusted EBITDA margin 23.5% 22.2% Depreciation and amortisation (1,303) (1,258)
Annual Report on Form 20-F 2020 Our financial performance (continued) Vodacom: 14% of Group adjusted EBITDA Other: 9% of Group adjusted EBITDA Turkey Service revenues increased by 17.6%* (Q3: 17.3%*, Q4: 16.0%*) supported by strong customer contract ARPU growth, increased mobile data revenue, and fixed line customer base growth. Adjusted EBITDA grew 27%* and the organic adjusted EBITDA margin increased by 4.1* percentage points driven by strong revenue growth ahead of inflation and lower commercial costs. The adjusted EBITDA margin was 26.5%. Egypt Egypt service revenue grew 14.5%* (Q3: 13.9%*, Q4: 14.8%*), supported by strong customer base growth and increased data usage. Adjusted EBITDA grew 14.2%* and the organic adjusted EBITDA margin decreased by 0.3* percentage points driven by revenue growth ahead of inflation. The adjusted EBITDA margin was 45.9%. On 29 January 2020, we announced a Memorandum of Understanding (`MoU') with Saudi Telecom Company (`stc') in relation to the sale of Vodafone's 55% shareholding in Vodafone Egypt to stc for a cash consideration of US$2,392 million (2,180 million), implying a September FY20 LTM multiple of 7.0x Adjusted EBITDA and 11.2x Adjusted OpFCF. On 13 April 2020, the MoU with stc was extended by Co9m0pdeatiytisotnoCaollmowmiasdsdiointioinnarletliamtioenfotrotthheecDoamtaplSeetirovnicoefsdMueardkielitgIennqcueiroynaVndodoanfo1nAepErgilyrpetdbuycesdtcm. Wonethinlytednadtatobuenntdelreipnrtioceasdbeyfinuiptitvoe4a0g%re.eTmheinstffuorltlhoewriancgcethleeractoemdpoluertipornoo-afctthiveedeufefodritlsigteontcreanpsrfoocremssd.aFtaYp2r0icimngFwYh1i9chOarlgraeandicyCdhelainvgeere*dam5%0%VroeddauccotimonGirnoouupts-oerf-vbicuendreleverantuees ginreMwa3r.c3h%2*01(Q9 3a:s5w.2e%ll *as, Qre4d:u3c.t2io%n*s)inwaithnutrmenbders oinf dSaotuathbuAnfdrliecaprsitcaebsiltihsirnogu,gdheosuptittehereygeualra.toVroydaancdomm'ascirnoteprrneastsiuorneasl, oapnedrcatoinotnins uoeudtssidtreonogf SgorouwththAifnricVaogdraecwomb'ys7I.n5t%er*na(tQio3n:a7l.o4p%e*ra,tQio4n:s.4I.4n%S*o)u.thGrAofwritcha,wsaesrvsitcroenrgevaecnruoessinalclreoafsoeudr2m.2a%rk*et(sQ, s3u:p4p.6o%rte*d, Qby4:th3e.7g%ro*w) ionrg2d.8e%m*anedxcfolurdminogbialeondaet-aofafnbdeMne-fPiteisnatsheervpircieosr.yTehaer.sTehqiusegnrtoiawl tshlowwadsoawcnhiienvQed4apmriimdaariwlyearekflmecatcerdoenceownocmusitcomenevrirroengmisternatt,ioinn wrehqiucihrecmuestnotms ienrsTaarnezoanpitaim. Wisienghathveeirbesepnenrdeq, aunirdeddetospbitaer nseerwvirceegsutloat2io.9n minitlrloiodnucceudstionmMerasrcshin2c0e1J9anauffaercyti2n0g20o,uto-uotf-obfuandtoltealchcaursgtoems, eror lbloasveerofan1d5.t5hemtirlalinosnfe, rinoflidneatwa.iDtheaspgiotevethrnesmeehnetabdiwominedtsr,icdraetagitsrtarfaftiicongrdeewad6l6in%e.yAeasro-ofn3-1yeMararacshc2u0s2to0m, aenrsabdednietifoitneadl f2r.o5mmiimllipornovceudstpormiceirnSg,IMwhsircehm, acionmubnirneegdiswteirthedthaes fthuell Ttraannzsaitnioiannoafuathnoerwitiewshdoelelasyaeledraonaymfiunrgthaegrreseermveicnet boanrtroinogurinneretwspoornks, esutoppthoerteCdOaVnIaDc-c1e9lepraatnidoenminics.eWrveiceexrpeevcetntuoeregcroowvetrhadusuribnsgtatnhteiayleparro.pWoretiaodndoefdth24es6e,0c0u0stcoomnterrascot vceursttohme ecrosminintghequyaeratre,rsb.uVt olodsatc1o.m9 'msialldijounstperdepEaBidITcDusAtoimncerrseaassedwebyfo1c.1u%se*d oanndctuhsetoomrgearnliifceatidmjuesvteadluEeB, tIaTkDinAg omuarrgtointawl masob0.i8le*cpuesrtcoemnetargbeaspeoitnots45lo.1wmerilrleioflne.cItinngMsaurbchdu2e0d2r0e,vweneureeagcrhoewdthaninagSroeuetmheAnftrwiciathanthdethe tihmispaarcrtaonfghemigehnetr,rVoaomdaifnognceoGstrso.uOppiesroatbinliggecdostotsmalaskoeinpcaryemaseendt,s btoutVgoredwafomnoerIedselaowwlhyertheaanmroevunentsupe.aiOdtphuerrsausasnotctiaotethseacnodnjtoiningtevnet nlitaubrielsitVieosdoaffVonoedaIdfoenaeLIinmdiitaedex(cInedeida)thIonsOe octfoIbdeera2C0e1l9l,ulthare. ITnhdeiaGnrSouuppr'esmpoetCenotuiartl gexavpeosiutsrejuudngdeemr ethnitsimn tehceha"nUisnmionisocfaIpnpdeida avtAINssRoc8i4atbioilnlioofnU(n1if.0iedbiTlleiolenc)oamndSaenrvyicceasPhropvaiydmeresnotsfoInr dciaas"hcraesceeirpetgsarredliantgintghetointhteersperectoantitoinngoenf taldijaubsitleitdiegsraonssdrpeovteennutieal(`rAefGuRnd')s,maucsotnhcaevpet ubseeedn imnathdee ocarlrceucleaitvioend obfycVerotdaianforneeguIldaetaorbyeffoeeres.aAnsytahmeoGurnotubpehcoasmneos dobuleigfraotimonotroofwuendd tVootdhaefGonreouIdpe. aHLaviminigtecdo(n`sVidoedraefdontheeIdpaeya'm) elonstssems,atdheeaGnrdoruepfuhnadssrreeccoeginviesdedbyitsVsohdaarfeoonfeeIsdteima ainterdeVlatoidonaftoontehIedseeamloasttseerss,airniscilnugdifnrogmthboosethreitlsatoinpgertaotitnhgeaActGivRiticeassean, adntdhothsee isnigrneilfaitciaonnttuontcheertAaiGntRiejsuidngreemlaetniotntotoanVaILm'osuanbtiltihtayttios sliemttileteadlltoliathbeilriteimesarienliantgincgartorytihnegAvaGluRejoufdgVeomdaefnot,ntehIedGear,owuphihcahsiasstsheesrseefdoraecraesdhucoeudtfltoownoifl.I2f3th5emciallriroyninugnvdaelrutehehaadgbreeeemnehnitghtoebneoupgrohbnaobtletoatrethstirsictitmtheeaGndropurpo'vsidsheadrefoorfthloisssaems,otuhnetnatth3e1reMcoargcnhis2e0d2s0h.aOreno2f2loAsspersilw20o2u0ld, thhaevGe broeuepn asunnbsotuannctieadlltyhhatigithehra.dTmheadGeraonupadhvaasnacpeoptaeynmtiaelnetxopfoUsuSr$e2t0o0cmeritlaliinoncotontVinogdeanftolniaebIidlietaiefsoarnadmpooutnetnstitahlarteafruenldiskerleylattoinbgetdouVeoindaSfoenpteeImnbdeiar 2a0nd20IduenadCeretlhluelaterramt sthoefttihmisemofecthheanmisemrg.eSr,eeinncolutedsin1g2thanodse2r9eliantitnhge tcoonthseolAidGatRedjufdingaenmcieanlt,stwatheemreebnytsVfoordfaufortnheerGdreotuapilsa.nTdoVtaoldraefvoenneueId5e,a53w1o5ul,4d4r3eiSmebrvuircsee reeavcehnoutehe4r,4o7n0s4e,t3d9a1t3e.s3fOoltlhoewrinregvaennyuecr1y,0st6a1lli1s,a0t5io2nAodfjtuhsetesedpErBe-ImTDerAge2r,l0i8ab8il2it,1ie5s7a1n.1d Aasdsjeutss.teUdnEdBerITthDeAtemrmasrgoifn 37.8% 39.6% Depreciation and amortisation (767) (735) Adjusted EBIT 1,321 1,422 Share of adjusted results in associates and joint ventures 248 214 Adjusted operating profit 1,569 1,636 34 Vodafone Group Plc
Overview Strategic Report Governance Financials Other information Taxation Indus Towers (India) We have extended the long stop date on our agreement to merge Indus Towers and Bharti Infratel to 24 June 2020, subject to an agreement on closing adjustments and other conditions precedent for closing, with each party retaining the right to terminate and withdraw the merger scheme on or prior to 24 June 2020. Indus Towers did not declare, or pay, a dividend during the FY20 financial year. Vodafone Hutchison Australia In February 2020, the Federal Court of Australia approved the proposed merger of Vodafone Hutchison Australia (`VHA') and TPG Telecom Limited (`TPG'), ruling that it would not substantially lessen competition. The Australian Competition and Consumer Commission (`ACCC') subsequently announced it would not appeal the Court decision. The combination is subject to the approval of TPG shareholders, and completion is expected in the first half of FY21. Safaricom Safaricom service revenue grew by 4.8% (Q3: 5.3%, Q4: 3.2%) supported by growth in M-Pesa and in mobile and fixed data. Adjusted EBITDA grew 7.4% supported by strong revenue growth and cost discipline. During the financial year we received dividends of 269 million from Safaricom. FY20 m FY19 m The Group's statutory eeffqeucitvivaeletnatxorfaateggforergthateeydeiavrideennddesdp3a1idMfraormchA20u2g0uswt 2as01-165t7o%Fecbormuaprayre2d01to9.5T7h%e fPorrotghreamlamstefisntaarntceidalinyeFaerb. rTuhaeryef2f0e1ct9ivaendtawx arastceofmorpbleottehdybeyar2s0inMclauyd2es01th9e. Dfoeltlaoiwlsinogf tihteemssh;aarersedpuucrctihoanseind tuhneddeerftehrerePdrotagxraamssmetes, iinncLluudxienmgbtohuorsge opfurc8h8a1semdiullniodnerfoirlrleovwoicnagbalereindsutcruticotnioinns,thaereLsuhxoewmnbboeulrogwc.oNrpeotrfaitneatnacxinrgatce,ost3s4F8Ym2i0lliomn F(2Y01199:m32C0hmaniglleio%n)Nreoltaetsin: g1 tAodLjuusxteemd bnoeutrfginlaonscsiensg; c3o4st6smisiallnioanlt(e2r0n1at9i:ve4p4e8rfmorimlliaonnc)eamriseiansgurfero. mAlaterrenvaatilvueatpioernfoorfminavnecsetmmeenatssubreasseadreunpoonn-tGhAe AloPcaml GeaAsuArPesftihnaatnacriaelpsrteasteemnteendtstoapnrdotvaixdererteuardnesr.sTwheithfinadandcitiiaolnyaelafrineanndceidal3i1nfMormarachtio2n01th9aitnicslruedgeuslathrleydree-vrieecwogednibtiyonmoafnaagdeemfeernretdantdaxshasosueltdonfot1b,e16v6iemwielldioinn idsuoelaatiroenviosreadsoauntlaolotekrnfoartiovuertoSpthaeniesqhubiuvsailneenstsG. SAhAarPembueaysbuarcek.sSOeen"2A8ltJearnnuaatirvye2p0e1r9fo, rVmoadnacfeonmeeaansnuoreusn"coedn tphaegceo2m39mfeonrcfeumrtehnetrodfeatanilesw. 2irPrerivmoacraiblylecaonmdpnroisne-sdfioscrereigtinoneaxrcyhsahnagreedbiuffyebreacnkcepsrroegfrlaemctmedein(ththee`PInrocgomraemSmtaet'e).mTehnet isnolreelpautiropnostoe ostfetrhliengPraongdraUmSmdeowllaarsbtoalraendcuecse. Tthoetailssnuuemdbsehraoref schaaprietaslpoufrVchoadsaefdonuendaenrdptuhbelriecblyy aanvnooidunanceydcshhaanrgeebiunyVbaocdkafpornoeg'rsaimssmuee2d 0sh0a0rseMcaapxiitmaluams anuremsbuletroofftshheamreastuthraintgmoafythyeetsbeecopnudrcthraanscedheuonfdethrethmeapnrdoagtroarmy mcoen3v0e0rt0ibslAe vbeornadge(`pMriCceBp')aiidn fFoerbsrhuaarrey i2n0c1lu9s. iIvneoorfdterratnosascattiiosfnyctohsetssePceonncde tNraentcfhineaonfcitnhge McoCstBs ,in7c9r9e.a1semdilbliyon1s.h6abreilsliwone,reprriemisasruileyddfuroemtotrtehaesurercyosghnairtieosnoonf2m5aFrkebtroumarayrk2e0t1l9oassteas.cTonhveesreswioenreprdicrievoenf £b1y.8th0e21lo. wTehrissrheafrleecptreidcet,hceacuosninvgerasimonarpkritcoematariksseutelo(s£s2o.1n7t3h0e)oapdtjiuosntsedrefloartitnhgetpootuhned mandatory convertible bonds and lower long-term yields, which led to mark to market losses on certain economic hedging instruments. Adjusted net financing costs include increased interest costs as part of the financing for the Liberty Global transaction as well as adverse interest rate movements on borrowings in foreign operations. Excluding these, underlying financing costs remained stable, reflecting consistent average net debt balances and weighted average borrowing costs for both periods. Number of shares purchased1 000s Date of share purchase February 2019 14,529 1(33,53.0117)1(41,,562595)7(8949,.553)9InMcoamrceht2ax01e9xp3e0n5s,0e9(91,124500.)5(613,41996,6) 2P8ro4fi7t9/(,l4o4s0s)Abperfoilr2e0ta1x9 729950,(527,061134)2E.2f0fe6ct1i0v,e1t9a8x1r8at8e,8(71057M)%ay5270%193518V8o,8d7a0fo1n3e4G.7r7ou7p99P,0lc6A8 nnTuoaltaRl4ep7o9r9t,0o6n8F1o3rm9.6290-7F992,002608 Notes: 1 2 3 4 The nominal value of shares purchased is 2020/21 US cents each. No shares were purchased outside the publicly announced share buyback programme. In accordance with shareholder authority granted at the 2018 Annual General Meeting. The total number of shares purchased represented 3% of our issued share capital, excluding treasury shares, at 30 June 2020. Adjusted net financing costs1 (1,638) (1,042)(57.2) Adjustments for: Mark to market losses (1,128) (423) Foreign exchange losses2 (205) (190) Interest on lease liabilities (330) Net financing costs
Annual Report on Form 20-F 2020 Our financial performance (continued) Earnings per share Section 219 SEC filings of interest Vodafone Group Plc (`Vodafone') does not have any subsidiaries, other equity investments, assets, facilities or employees located in Iran, and Vodafone has made no capital investment in Iran. To the best of its knowledge, no U.S. persons, including any U.S. affiliates of Vodafone, are involved in the activities described below. Except as specified below, to the best of Vodafone's knowledge, neither it, its subsidiaries, nor its affiliates have engaged in any conduct needing to be disclosed under Section 13(r) of the Securities Exchange Act of 1934. Vodafone has wholesale roaming and interconnect arrangements (including voice and data) with mobile and fixed line operators in Iran. Vodafone has, or has had, relationships with telecommunications operators in Iran in connection with such roaming and interconnect arrangements, some of which it believes are or may be government-controlled entities. The approximate gross revenue and costs attributable to the roaming and interconnect arrangements were 1,148,000 and 782,000 respectively, for the financial year ended 31 March 2020. During the financial year ended 31 March 2020, Vodafone provided telecommunications services to six Iranian national transeamctbioasnssieosr lpoucractheadsgeloofbcalalpyaacnitdyftoouorkIrpalanciaendmuraijnogritthye-gfoinvaenrncimaleynet-aorwenneddeden3t1itiMesairnchG2e0rm20anfoyr. wThheicahpVproodxaifmonateewgraossdsureevaennyureeavtetnriubeust.aNbleetttiongthaersreanregleamtioenntsshiaprse winapsla5ce7,f9o0r0t.hIensaedttdleitmioenn,taowf ahnoyllysuocwhnteradnVsaocdtiaofnosnewshuicbhsidariaisrey. bVaosdedafionnGe,etrhmroaungyhpornoveiodfeditsbsausibcsitdeliaecrioems,malusnoicmaatikoenssssoemrveicinessitgonEifuicraonptapisacyhm-IeranntsistcohIeraHnainndoerlsdbearntko AreGgisatnedr aInridslrEenuerowpceeGrtmaibnhd(obmoathinennatimtieess banlodcckeerdtapiunrtsruaadnetmtoarEksx,eacnudtivperoOtercdterit1s 3b8ra8n2d),ggleonbearlalyti.nTghreevceonsutseooffraepgpisrtoexriinmgaatenldy re2n,e1w00inagnddom5a5i0n, nreasmpeecstfiovreltyh.eTfeinleacnocmiaml yuenaircaetnidonedse3r1viMceasrcwhe2re02a0lsoweprreovaipdperdoxtoimBaatnelkySa1d8e0rapta(iadnveinatBityoublltoWckaeddepTuernsunaanntttLoLEPxaencudtiv1e,2O3r0deprai1d3v2i2a4A),lgTeanmeriamtiin&g rCevoemnpuaenoyf. V2o7d5a.fTonhiescroenlattiinounesshtiop mhaasinntoawincIreaanseiadnatnraddVemodaarkfosniendIroaens bnuott ninoterenndetwoaplrfoeveisdewfeurerthdeuresteorvthiceeIsr.aDniuarnintgratdheemfainrkanscoifaflicyeeadruerinndgedth3e1fiMnaanrccihal2y0e2a0r, eVnoddeadfo3n1eMGalrocbhal2N02e0tw. FoYrk2L0immiteFdY(1V9GNm) Ccohnatnigneue%d tMo iblleioanmMemillbioenr oefuraoccoennstsoretuiuromcemnatsdeNuopteos:f 1thAe dTjeulsetceodmompeurnaiticnagtiopnroIfnitf,raasdtjruusctteudreprCoofimt aptatnriybuotfaIbrlaent(o`TowICn'e)rs(aonfetnhetitpyacreonnttraonldledadbjuysttheedgeoarvneirnngmsepnetrosfhIarraena),reRaolstteerlneactoivmeapnedrfOormmaanntceel,mtheaatshuaressb. uAillttearnhaigtihv-esppeeerfdocrmabalnecneemtweoarskurferosmarea nlaonnd-iGngApAoPinmt einasOurmesanthtaot Gareermpraensye.nEteadcthompreomvbideer orefatdheercsownistohratidudmitiiosnraelspfionnasnicbilaelfionrfofurmndaitniogn, bthuailtdiisnrgeganudlamrlyairnetvaiienwinegditbsysmecatnioangeomf tehnet caanbdlesh, wouilthd nVoGt Nbeovwienwinegdainndisboeliantgiornesoproanssaibnlealftoerrntahteivseegtomtehnet efqroumivathleenUt GkrAaiAniPanmbeoarsduerersw. SiteheR"uAssltiearntoatFivraenpkefrufrotr,mGaenrmceamnye.aNsuorecso"nosonrptiaugme 239
for further details. The 2019 adjusted earnings per share haims bpeaeirnmaelingtncehdartogetshein2t0h2e0yperaersoefnta1ti.o7nbwillhioicnh(e2x0c1l9u:de3s.m5 abrikllitoonm),agrakientsaansdsofcoiraetiegdnwexitchhathnegedilsopsosseasl.sTohfeVnoedtaimfopnaecNt oefwthZiesadlaencrdea(se1d.1thbeillaiodjnu)satenddlIotassliaanttrtiobwutearbalessteotsth(e3o.w4 nbeilrlsioonf)t,hteogpeatrheenrt wbyith3a153m.4ilbliilolnioannldosisncorneathseeddaisdpjuosstaeldoefaVrnoidnagfsopneerInshdaiarerebcyo1g.n0i1seeduirnocFeYnt1s9. .SBeeas"iTc aloxsastipoenr".shoanrepa(g3e.1335)cP(r2im9.a0r5il)yc 8re9l.a2teAs dtojutshteedloesasrnoinngdsisppeorsashl oarfeV1,o2d5a.f6o0nce 6In.2d7iac(a1n0d.7a)lsWo eiingchluteddesavtheeraogpeenrautminbgerreosfulsthsa, rfeinsaonuctisntagn, dtaixngandboatshice5r g2a9i,n4s22an2d7,l6o0ss7es6.o6fAVdojduasfteodneopInedraiati,npgriporrotfoit1be4c,o5m55in3g,9a0j5o1in6t.6veAndtjuurset,erdecnoegt nfiinseadnciinngthceopsrtiso(r1y,6e3ar8.)W(1e,0ig4h2t)edAadvjuesrtaegdeinnucmombeertaoxf sehxapreenssoeuftosrtacnadlicnuglaitninclguaddejsuastwedeitgahxteradteim(7p9a9c)t o(7f521,6) 2A9dmjuisltleiodnnsohna-rceosn(t2ro0l1li9n:g8i3n6temreislltiso(n47sh1a)r(e3s8)1f)olAlodwjuisntgedthperoisfsiut eatitnribMuatarcbhle2t0o1o9wonfe£rs1.o7f2thbeillpioarnemnta1n1d,a6t4o7ry1c,7o3n1v(e4r.t9ib)lAe dbjounsdtms ewnittsh:aIm2pyaeiarmr menattuloristsy(d1a,6te85in) (230,25125a)nAd m£1o.r7t2isbatiilolinonofwaicthquair3edyecaursmtomatuerribtyasdeataenidnb2r0a2n2d ainntdan£g1i.b4lebiallsisoentso(f6m38a)n(d5a8to3r)yRceosntrvuecrttuibrilnegboconsdtss i(s7s2u0e)d(i4n8F6e)bArudajuryste2d01o6th, ewrhiincchommaetuanreddeixnpFenebseru2a,r2y5720(1296.22) N3o4n5-oApedrjautsitnegd ienacronminegsanpderesxhpaernes,ew(h3i)c(h7e) xMclaurdketsoimmparakiremt genaitnlso/s(sloesss, ews)a2s (51.6,102e8u)r(o4c2e3n)tsFcooremigpnareexdchtoan6g.2e7loesusreosc2en(2ts0f5o)r(1th9e0y) e(a2r,1e2n2d)e(d53,417M6)6ar1c.h2 T20a1x9a,tiaond3ec(r4e5a1s)e(o7f4150).I7n%di.aB4asi(c3l,5o3ss5)peNrosnh-acroenwtraosll3in.1g3inetuerroecsetsn6ts,5cLoomspsaartetrdibtoutaablolesstopeorwsnhearrseoofft2h9e.0p5areeunrto(c9e2n0t)s (f8o,r0t2h0e)8y8e.a5r 3e6ndVedod3a1foMnearGchro2u0p1P9l.cThe decrease in the loss per share is primarily due to lower
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Working capital movements include 0.3 billion in relation to handset purchases and the associated sale of customer receivablebsu.yRbaeccekisv3a(b1le,0s9a4r)e(s6o0l6d)toComnivtiegratitbeltehiessaudev4erse3,w84or8kFinogreciagpniteaxlcihmapnagcet 3fr0o9m25h9anOdstheet rs5al1e,s2t5o0c(u1s,4to3m2)erNs,ewt dheebret icnacsrheaosuetf(l1o1w,3s3a6r)e2p,a5i9d8u(5p3fr6o.3nt) tOopseunpipnlgienrestbduetbint f(l2o7w,0s3a3r)e(r2e9c,e6i3v1ed) Cfrloomsincgusnteotmdeerbsto(v3e8r,3t6h9e)le(2n7g,t0h3o3f)(th4e1.c9o)nLtreascst.mAadrkjutsotemdaErkBeItTgDaiAn1s i1n4h,8e8d1gi1n3g,9r1es8e6r.v9eCs6ap(3it,a7l9a9d)dNiteiot ndse2bt(7a,d4j1u1s)te(d7,f2o2r7m) aWrkotrokimngarckaeptigtaalin(1s2i7n)h1e8d8giDngispreossearlvoefs p(4ro2p,1e6rt8y), (p2l7a,n0t3a3n)d(5e6q.u0i)p3m7eVnto4d1af4o5neOGthreoru3p3P7lc14A7nOnupaelraRtienpgorftreoencFaosrhmfl2o0w-1F72,072201 7,0719.2 Taxation (930) (1,040) Dividends received from associates and investments 417 498 Dividends paid to non-controlling shareholders in subsidiaries (348) (584) Interest received and paid3 (1,160) (502) Free cash flow (pre-spectrum)1 5,700 5,4434.7 Licence and spectrum payments (181) (837) Restructuring payments (570) (195) Free cash flow1 4,949 4,41112.2 Acquisitions and disposals (14,454) 182 Equity dividends paid (2,296) (4,064) Share
Annual Report on Form 20-F 2020 Our financial performance (continued) Free cash flow (pre-spectrum) was 5.7 billion, an increase of 0.3 billion, as the increase in operating free cash flow and reduced dividend payments to minorities outweighed higher interest payments. Acquisitions and disposals include 2.0 billion received on completion of the sale of Vodafone New Zealand on 31 July 2019, together with 2.1 billion received on completion of the sale of Italian tower assets on 31 March. It also includes an amount of 10.3 billion paid on completion of the acquisition of the Liberty Global assets on 31 July 2019 and acquired net debt of 8.2 billion. Closing net debt adjusted for mark to market gains deferred in hedging reserves at 31 March 2020 was 42.2 billion (31 March 2019: 27.0 billion) and excludes the £3.44 billion (31 March 2019: £3.44 billion) mandatory convertible bond issued in February 2019, which will be settled in equity shares, 12.1 billion (31 March 2019: nil) of lease liabilities recognised under IFRS 16, a 1.3 billion (31 March 2019: nil) loan specifically secured against Indian assets and 0.7 billion (31 March 2019: 0.8 billion) of shareholder loans receivable from VodafoneZiggo. The Group's gross and net debt includes certain bonds which have been designated in hedge relationships, which arinefcloarwriefrdomat o1p.e5rabtiilnlgioanchtiivgihtieers.(321OMpaerrcathin2g01fr9e:ec1a.s6hbfilloliwon, fhreigehcears)hthfalonwth(epirree-suproecetqruumiv)aalenndt frreedeemcapshtiofnlovwalauree.aIlnteardndaittiivoen,pwerhfoerrme abnocnedsmaeraesuisrseuse. dAilntecrnuarrteivnecipeesrofothrmeratnhcaenmeueraossu,rtehseaGreronuopn-hGaAs AenPtemreedasinutroesfothreaitganrecuprrreesnecnytesdwtaoppsrtoovfiidxetrheeadeeurrsowcaitshhaodudtiftlioownaslofninraendceimalpitniofonr.mTahteioinmtphaacttisofrethgeuslaerslywraepvsieawreendobtyremflaenctaegdeminegnrtoasnsddsehbotualnddnwoot buledvdieewcreedasien tihseoleautirooneoqruaivsaalennatltreerdneamtipvteioton tvhaelueequoifvtahleenbtoGndAsAbPy m1e.a3sbuirlel.ioSnee(3"1AMltearrncahti2v0e1p9e:rfo1r.m0 bainlclieonm)e. aAsnuraelys"siosnofpafrgeee2c3a9shfoflrofwurCthaepridtaeltainilvs.es1tmThenist tFaYbl2e0incmluFdYes1o9blimgaCtihoannsgtoe %payFudnivdiidnegnpdosstiotionnonF-Yco2n0tromllinFgYs1h9aremhoCldhearnsg(ese%e "FDYi2v0idemndFsYfr1o9mamssCochiaantegsea%nd5toCononntr-accotuntarloollbinliggasthioanreshaonlddecros"momnitpmagenet1s9A5)s.uTmhme atarybloefeoxucrlupdreinscciuparrlecnotnatnradcdtueafelrfriendantacxiallioabbilliigtaietisoannsdaonbdlcigoamtimonitsmuenndtesrapto3s1t-Memaprclohy2m0e2n0tibsesneetfoitustcbheelmowes.,Pdaeytmailesnotsfdwuheicbhyapreeripordov(idmed) Cinonntortaec6tu"aTl oaxbalitgioanti"onasndan2d5c"oPmomst-ietmmepnlotsy1mTeonttabl e<n1efyietsa"r r1es3peycetaivrsel3y.5Tyheeatrasb>le5aylseoaresxFcilnuadnecsiathl elicaobniltirtaiecst2ua1l1o4b,l0i9g3at2io9n,1s3o7f 1a6ss,7o3ci3at1e4s,6a4nd8 5jo3i,n5t7v5eLnteuarsees.liSaebeilintoietse32123",C59a1pi3ta,1l 7a2nd3,f5in2a1n2c,i4a5l 5ris4k,4m43anCaagpeimtaelncto".mSmeeitmnoetnets2403",L14ea9se1s,8"3. 3Se9e5n9o2te392811"8CoPmurmchiatmseencotsm".mPirtimmeanrtisly5 r1e0l,a2te0d8 t5o,4s3p4ec2tr,3u7m4a1n,0d9n1et1w,3o0r9k Tinoftraalst1r4u1c,t0u4re1. 3P9ri,5m7a6ri2ly3,r5e8la7te1d8,t4o3d3e5v9ic,e44p5urNchoatesse:oNbolitgeas:ti1onPsr.e2do3m4in5aInntflylorwelfartoems toopleearasteinpgayamcteivnittsiefsor17th,3e7y9ea1r2,e9n8d0e3d33.91NMeatrtcahx2p0a2id0,9a3f0te1r,t1h3e1aCdoasphtioflnowoffIrFoRmSd1is6c.oLnetainsueepdayopmeernattsiofnosr th7e1yCeaarshengdeender3a1teMd abrycohp2e0r1a9tioanres i1n8c,l3u0d9ed14w,1it8h2in2c9a.1sh Capital additions (7,411) (7,227) Working capital movement in respect of capital additions (11) (89) Disposal of property, plant and equipment 41 45 Restructuring payments 570 195 Other1 (3,777) (35) Operating free cash flow2 7,721 7,0719.2 Taxation (930) (1,040) Dividends received from associates and investments 417 498 Dividends paid to non-controlling shareholders in subsidiaries (348) (584) Interest received and paid (1,160) (502) Free cash flow (pre-spaescstertusm(1)2,354,67)00 B5,o4r4ro3w4.i7ngLsiceexnccleudaenddfsrpoemctrnuemt dpeabytm(1e3n,4ts0(91)81)A(d8j3u7s)teRdeEstBruITctDurAin1g4p,8a8y1m1en3t,9s 1(58760.9) N(1e9t5d)eFbrteteocaadsjhusftleodwE2B4I,9T4D9A4,24.181x112..92xBn/omndMs a(4in9t,e4n1a2n)c(e414,,845902)1C,8o7m4mCearpcaiaciltypa1p,e2r4131(,088713)NBeawnkcolovaenrasg(e2,875238)56(37,0P0r0o)duCcatsshacnodllsaetrevriaclelsia2b,i2l2it9ie2s ,218(55,T29ra2n)s(f2o,r0m11at)ioOnthaenrdbootrhreorw1in,2g3s6(31,,587270)T(o2t,a5l7c9a)pBitoarlraodwdiintigosnisn7c,l4u1d1ed7i,n22n7e2t.d5eTbot t(a6l1c,3a0p9it)al(5in2v,9e5st5m)(e1n5t.8to) Ctoatashl raenvdencuaesh16eq.5u%iva1l6e.n6t%s 1338,2V84od1a3f,o6n3e7GOrtohuepr fPinlcancial instruments: Mark to market derivative financial instruments3 4,409 1,190 Short term investments4 5,247 11,095 Total cash and cash equivalents and other financial instruments 22,940 25,922(11.5) Net debt (38,369) (27,033)(41.9) Less mark to market gains deferred in hedging reserves5 (3,799) Net debt adjusted for mark to market gains deferred in hedging reserves (42,168) (27,033)(56.0) Lease liabilities (12,063) Bank borrowings secured against Indian
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TanhaegSetdraitnevgeisctmReepnot rftuwndass oafpp2ro,4v5e1d mChilileiof nE(x2e0c1u9ti:ve5C,5h1ie3fmFiilnlaionnc)iatlhOatfafirceeirnThhiigshylyearra'tsedreapnodrtlciqounitdaimnsotnheeySmtraartkegeticinRveepsotmrteonntspwagitehsl6iqtuoid7i1ty, aofreuvpietwo 9o0f tdhaeybs.uFsiYne2s0shdausribnegenthaedyjuesatre,dantodeoxuctlluindeesdtheerivparitnivceipgaalibnys itnhecaBsohafrldowanhdesdiggneerdesoenrvietss,btehheaclforbryestphoenCdhiniegflEosxseecsuftoivrewahnidchCahrieefnFoitnraenccoiganl iOsefdficoenr.th/se/ bNoincdksRweiatdhi/ns/nMetadrgebhteraintad DwehlilcahVaarlelesiNgnicikficRaenatldyMinacrgrehaesreitdadDueelltao VCaOllVeI2DJ-u1l9yr2e0la2t0ed2 Jmualyrk2e0t 2c0onAdditjiuosntse.dNEeBt IdTe1bt4i,n79F6Y42,025is3a1d2j.u8s%teAd ctoqueixrecldubdreand and customer relationships amortisation (638) (583)9.4% Net operating profit (controlled operations) 4,158 3,67013.3% Share of adjusted results in equity accounted associates & joint ventures (241) (348)(30.7)% Net operating profit (controlled & associates/JVs) 3,917 3,32217.9% Notionaltaxatadjustedeffectivetaxrate (991) (777) 27.5% Net operating profit after tax 2,926 2,54515.0% Property, plant and equipment (incl. Right-of-Use lease assets and lease liabilities) 27,134 27,432(1.1)% Intangible assets (including goodwill) 53,523C4e1n,0tr0a5l3E0a.s5t%ernOEpuerraotpineg1w8,o5r0k6inDgivceasptiutarelsan(4d,4H2e7l)d-Dfoivr-iSdeanledapsasyetmse(nextscla.nddesrihvaarteivbeusy)b(3ac,3k4s23),3(39,070G5e)rm(9a.8n)%spePcrtoruvmisiopnusrcahnadseo1th,5er10iteOmthse(r2m,49ov8)em(2e,n4t0s21)4,1.00%5 FNreeet ocpasehraftlionwg a(s4s,e9t4s9()c3o1ntMroallrecdh)27042,801574622,1,3638022.08.x06%3A9 vVeoradgaifnogneadGjruosutmpePnltc(A6,n2n4u5a)l6R,6e9p2orAt ovenrFagoermne2t0o-pFe2ra0t2in0g assets (controlled) 68,572 69,022 (0.7)% Associates and joint ventures (incl. Held-for-Sale) 5,419 3,721 45.6% Net operating assets (controlled and associates/JVs) 80,236 66,05121.5% Averaging adjustment (7,094) 6,213 Average net operating assets (controlled and associates/JVs) 73,142 72,2641.2% Pre-tax Return on Capital Employed (controlled)1 6.1% 5.3% 80 bps Post-tax Return on Capital Employed (controlled and associates/JVs)1 4.0% 3.5% 50 bps 31 March 2019 27,033 1.9x Acquisition of Liberty assets in Germany and
Annual Report on Form 20-F 2020 Sustainable business Delivering on our purpose Our sustainable business strategy helps us deliver on our purpose and ensure we act responsibly and with integrity wherever we operate. Our contribution to the UN Sustainable Development Goals This year marks the beginning of the "decade of delivery" to achieve the UN Sustainable Development Goals (`SDGs'). The SDGs provide a clear roadmap and call to action for business to contribute towards creating a better future. Vodafone is committed to playing our role through leveraging the power of our technology, networks and services to contribute. Through the impact of our extensive global network, our wide range of products and services (such as our IoT and M-Pesa platforms) and the work of the Vodafone Foundations, we believe we can increase the speed and scale of delivery across a wide number of the SDGs. Our sustainable business strategy We believe that Vodafone has a significant role to play in contributing to the societies in which we operate. Last year, we articulated our purpose with the ambition to improve one billion lives and halve our environmental impact by 2025, building on a decade of initiatives, efforts and products from our business. Our sustainable business strategy helps the delivery of our 2025 targets across three pillars: Digital Society; Inclusion for All; and Planet. We aspire to enable an inclusive and sustainable digital society. In parallel, we remain dedicated to ensuring that Vodafone operates responsibly and ethically, supported by our corporate disclosure programme. This is an area which we believe is more important than ever, given the ongoing COVID-19 crisis and the role business plays in supporting society during this period of uncertainty and change. contribution Responsible business practices and corruption Anti-bribery Tax and economic Human rights Mobile, masts and health Responsible supply chain Digital SocietyInclusion for AllPlanet Our purpose We connect for a better future 40 Vodafone Group Plc
Overview Strategic Report Governance Financials Other information Connectivity, communications services and digital solutions have become even more crucial during the COVID-19 crisis. They have become a lifeline for many citizens, companies and public authorities. In some markets, fixed broadband usage increased by more than 50%, as people work and study from home to an unprecedented degree. Around a fifth of the world's internet traffic travels across Vodafone networks. Our core focus has been on maintaining the quality of service and our five-point plan to support societies and assist governments in their response has guided all of our actions. We support our customers, both individuals and businesses, to realise these benefits. We are future-proofing our fixed line infrastructure by upgrading our cable network to the latest DOCSIS 3.1 technology and deploying fibre deep into the network. Our fixed Gigabit networks will deliver a significant improvement in the maximum user speeds and network capacity; speeds of 30Mbps will directly improve the lives of millions of people. We are now Europe's largest fixed next-generation network provider by footprint, with 25 million broadband customers and 136 million marketable households in Europe. This year, 144 million customers were connected to our nextgeexnpearnadtiionngnbertowaodrbkasn1d. Obyu1r 0n%etwwooruklsdaylsioeldsuapp2o.5r%t aiwncidreeavseariinetGy DofPspoelurtcioanpsitato. Amleseot, sitohciaestyb'esenneeesdtsim. Wateed'rethwato8r4ki%ngowf aitlhl IbouTsianpepssliecsaotifoanlsl ssuizpepsotrot tmheakUeNthSeDdiGgsit.aNl osotecsi:et1yDaerfeianleitdya. sFr4oGm/5eGnsmuroibniglemnielltiwonosrkosfaenmdpoloveyree3s0aMcrbopsssftihxeedwnoertldwocarknsw. 2orUkKefDfeecptiavretmlyefnrtofmorhDomigeitadlu,rCinuglttuhree,CMOeVdIiDa -a1n9dcSrpisoirst, (to`DdCeMsigSn'i)n,g20n1e8w. RIoeTa-dcomnonreecotendVporoddaufocntsew'sitfhivaen-pdofionrt opularnctuosthoemlpercso,uwnete'rrethceomimmpiattcetdotfoChOeVlpIinDg-1e9veornyopnaegege5t4th5e4bBeusitldfrionmg ateGchignaobloitgnye.tIwnohrkeaWlthecaarree,ifnovreesxtianmg psileg,n5ifGicawnitlllybienaorueraml dordievrenr oneftiwnnoorkvaintiforna,sthreulcptiunrge iamndprcoovveesrtaagfef etoffdiceileinvecyr awhhiigleh-aqlusoaliimtypsreorvviincge pthaatiteanltlocwarse.inTdhirvoiduugahlsouarndcobnunseincetisvsietys,towceocnanneecnt acbolnefirdeemnotltye asnurygwehrye,rereahnadbialtitaantiyontimroeb.oBtiecnseafnitds wtheaat rhaibglhe-ssepneesodrisn, tteornneatm(esujcuhstaas f5eGw). cDaingihtaavl eSofociretthyeWeceobneolmieyveinicnluadceopnrnoedcutecdtivdiitgyitgaal isnosc,iseutychthaastfhaesltpesr dimowprnolvoeadpetiompeles'asnlidvtehse, wabhielirteydtaotawfolrokwisnattrasnpseiet;d,inccornenaseecdtincgonpseuompleer, vcaolmuembuynietnieasbalinndg tihninnogvsattoivteheapinptserannedt sleikrveinceevs;ear nbdefroerdeu.cWedithcaorbuor nneexmt-igsseinoenrsa,titohnronuegthwsourkpps,ocrtiitinzgenthsewlailrlgaec-cscesasleadneepvloery-mgreonwt ionfgIoraTntgeecohnfoselorvgiiceessaicnrorsesals-eticmtoersa2n.dTbaucskilninegssleosncealinndesesvewloitph nteecwh pInro2d0u1c9ts, VanoddsaeforvnieceUsKtolamuenecthtehdeaneneedws roefpfourttufroecguesneedraotniohnosw. Dteigcihtnalosloegrvyicceasn, bliekehathrneeosnseeds wtoetapcroklveidloe,nearlienqesusiciknlypeboepcloemoivnegr t5h0eannedwaelsnogihniegshloifghgtrsotwhtaht ianstihgenigfilcoabnatl nraucmebfeorroefcoonldoemr ipceporpolsepaerreitnyoatncdonsufisdtaeinntaubsliendgetveeclhonpomloegnyt.. FAotrthexeasmampleetiinmAe,frthiceaf,itnhaenUciNal BimropalidcbaatinodnsCoofmlmoniessliinoensfsoirnSthuestoaivnearb5le0sDwevaeslroepvmeaelnetdetsoticmoamteesatthaat
cost of £1.8 billion per year to the UK economy. In response, Vodafone UK launched a nationwide programme of tech masterclasses, helping participants set up their phones, use social media and learn more about wearable tech and connected home devices. Recommendations for both policy makers and businesses made in the report include introducing prescribing schemes so that GPs and health service practitioners are able to prescribe technology such as wearableedceovniocemsicancdonmtroinbiutotiroinngatsyasnteamtiosn, adlelveevloelp,imngakteicngh taosoilgknitisfitcoanstupecpoonrtoimndice,pseoncdiealntanlidvifningaanncdiaolfifmerpiancgtfaicnraonscsiathl esucpopuonrttryin. cNluodtein: g1fVunoddianfgonteh'est2a0ke1-9uGp iogfatbeicthHnuoblorgeypoinrttahneahlyosmese.sGixighaubbist HinuIbrselgaenndelroacteateecdoinnoDmuicndgarolkw, tDhriongIhreedlaan,dKAilkccenorndyi,nCgatrolonwew, Kdeartrayfaronmd Creosreka.rGchoaclo:nTdoucctoendntehcitsoyveearr12,5V0omdailfloionnepheaosphleelptoedougrenneexrat-tgeen2e7r.a4timonilnlieotnwoofrkloscbayl e2c0o2n5o1m4i1c VcoondtarifbounteioGnroinupIrePllacnAd nthnruoaulgRhetphoertcroenatFioonrmof2s0i-xFG2i0g2a0bit Hubs in remote communities, which in turn have helped create hundreds of jobs and businesses. Fifteen hubs are now benefiting from free 1 Gigabit broadband through Vodafone Ireland's Gigabit Hub initiative, transforming employment and business opportunities for residents. By applying an average of the findings to a scenario where one hub is located in each of the 26 counties in the Republic of Ireland, the study found the potential to generate 312 million of
Annual Report on Form 20-F 2020 Sustainable business (continued) Supporting small businesses and entrepreneurs Through Vodafone Business, we provide products and services which are specifically tailored for small and medium-sized (`SME') and small-office home-office (`SOHO') businesses, helping guide them through technology choices that are moving at an unprecedented pace and improve their digital readiness. This support is more crucial than ever in the current climate (see case study below). Connectivity is vital for businesses around the world to thrive. For example, research commissioned by Vodafone found that 70% of micro-entrepreneurs in Ghana would face difficulties continuing their business without a smartphone. Constant connectivity allows entrepreneurs to connect with customers, search for new business ideas and adapt to changing market conditions. Smart transport solutions Creating smarter cities Our IoT platform and technology are also supporting cities to become smarter to adapt to the demands of urban growth, as well as improve the lives of the citizens within them. With 55% of the world's population living in cities, digitisation can play a key role in tackling many of our cities' most pressing challenges, from air quality, public transport and energy efficiency, to waste management and improved building standards. The IoT-enablesdesrvmeafrrtocmity2c5amn irleliroonutteot3ra1ffmicilaliroonu.nSducpopnogretisntigonouirnbrueasiln-teimssec,uasutotommeartsicdaulrlyinsgcthheedCulOe VreIpDa-ir1s9focrrisfaisilWedeinafrreasctormucmtuirteteldiktoe shterlepeitnlgigohutirnbguosirnbersisdganesd, paunbdliicntseelclitgoernctulystmomanearsgemeintiegragtey tuhsee eacnodnpoomlliuctiimonparicgthstoafctrhoesshethaelthbucirlitsiesn.vIinromnamneynct.aIstecs,atnhpisrohtaesctincvitoizlveends haneldpibnugsicnuesstsoems efrrosmtocdriigmitealmisoeretheefifreocwtivneclyo,mapnadnsieasfeagtuaarrdapviudlnpaecraeb. lWe ceiteiszteimnsaitne tthhaetirwheomhaevse. VenoadbalfeodneasSmpaainnywaisll2b.5e mthiellipornovpiedoeprloefttohwe o"Srkevfrilolma ShmoamrteCfoitrythPelaftifrostrmtim",ew. hInicthhewUillKe,ntaobsluepthpeormt huonmiciepwaolirtkyetros,mwoerecreefafticedienatnlyewmoflneixtoibrlaen"dVmodaanfaogneesEermviecregsenacnyd Hfaocmilietiwesorskuecrh"apslawnafsoter omuarneaxgiesmtinegntm, sotbreileet lciugshttoinmgerasn.dTahiirsqguivaleistye.mOpulroyeleeecstrwonhoicms aanydntoetlehmavaeticascpormodpuanctys mcroebaitleemacocreesesfftoiciuennlti,msiatfeedr vaonidces,mteaxrttearntrdandasptaorftorfoar rpeedoupcleed, cfioxmedmaumniotiuenstafnodr tbhurseienemssoenst.hBs.eWneefiatsreinaclsluodoef:ferTinrganlasprgoerrt fblueseitnaensds clougstiostmicesrs aimddpirtoiovneadl vmeohbicillee dmaatanapgaecmkaegnetsantodmmeoentitthoerinnegefdosr obfuesminpesloseyseeinscwluodriknigngsufrpopmorht oanmde.dIiangAnofrsitcicas,,Vaosdwaeclolmashdarsivsipnegcisftiyclaellmy ofoncituosreindgonwhsuicphpoimrtpinrgovSeMs eEfsfidcuiernincgy tahnedpraendduecmesicc.aFrboornexeammispslieo,nisn. SoAutuhtoAmfroitciva,eVosdtoalceonmvhehasicelextreencdoevderlyo,ancrsatsohSaMlerEtss, taouatossmisattethdebmrewakitdhocwanshcfallolswanchdamlleonbgilees.apApsnufomrbsemr aorfteorutrramnasrpkoertts. inItnhseurraengcioenhianv-ecaarlsteoleinmtraotidcuscteodmadodniittoiorndarlivdeartabaelhloavciaotuiorn, susaangdew-boarske-dfrionmsu-rhaonmceefpoarcmkaogreesafcocruernatteeripnrsiusreacnucsetopmreemrsiu. mGos,acl:raTsohcroenconnecsttrouvcteiro1n/5a0lemrtisllainond avuehtoicmleastetdo ethmeeIrogTenbcyy 2ca0l2l5in4g2. TVhoisdayfeoanrewGergoruepwPtlhce number of connected vehicles we
Overview Strategic Report Governance Financials Other information Working in collaboration with the municipality of Tirana, Vodafone Albania has implemented a system to monitor and transmit air quality in the capital city to the public, using a monitoring system to gather real-time data through the "Tirana Ime" application. By monitoring air pollution in this way, the municipality is better able to understand traffic-related air pollution factors and identify appropriate measures for tackling such pollution. This simple, secure, cheap and convenient solution is now offered to customers across seven markets in Africa: the Democratic Republic of Congo, Egypt, Ghana, Kenya, Lesotho, Mozambique and Tanzania. With a mobile phone and an M-Pesa account, people on low incomes can send, receive and store money safely and securely, giving them more control over their financial affairs. It also reduces the associated risks of a cash-based society, including robbery and corruption. As of March 2020, 41.5 million customers were using M-Pesa, with over 12.2 billion transactions made through a network of more than 431,500 agents. Thanks to the development of additional services built on the M-Pesa offering, such as M-Shwari, M-Pawa and KCB M-Pesa, our customers can also save money through interest-bearing accounts and can arrange micro-loans to help fund their businesses. In addition, M-Pesa is widely used to manage business transactions and to pay salaries, pensions, agricultural subsidies and government grants. In Kenya, Safaricom's M-TIBA service allows anyone to send, save and spend funds specifically for medical treatment using their mobile phone. This is helping streamline the management of large-scale health financing schemes from insurers, the government andthdeoirnporrismaanrdyioschceulppaintigonto1.mInakaedhdeitaioltnh,cathree rmeoserearacchcaelsssoibfloe.unTdhethreataMre-nPoewsamhaosrehtehlpaendfoliufrt 1m9i4ll,i0o0n0uhsoeursseohfoMld-sT, IoBrA2%. NoofteK: e3nWyaonrlhdouBsaenhko,ld2s0,1o7u. tSoufpppoovrteinrtgy.fiWnaenecsiatilminactelutshiaotn1A7pmpirlolixoinmwatoelmye1n.7wbeirlelioacntipveeolypluesiinngthMe w-Poersladtshtiilslyheaavre, ancocaocucnetisnsgtofobra4n1k%ingoffaocuilritMie-sP, easnaiscsuusetotmhaetrabfafescet.sGsoiganl:ifTicoancotlnynmecotr5e0wmomilleionnthpaenopmleena3n.dInth2e0ir0f7a,mtoilgieetshteormwoitbhiloeufrinKaenncyiaalnseasrvsoicceiastbey, S2a0f2a5ric4o3mV, owdeafdoenveelGorpoeudpthPelcfiArsntnmuoabl Rileepmoortnoeyn tFroarnmsfe2r0s-eFrv2i0c2e0, M-Pesa. 1 "The long-run poverty and gender impacts particularly the case for women. For example, in Kenya, research estimated that with mobile money access through M-Pesa, 185,000 women have been able to switch from subsistence farming to business Improving lives through M-Pesa With M-Pesa, customers can take greater control over their own and their family's finances. This is Note: of mobile money", Suri and Jack, Science, 2016. or sales as
Annual Report on Form 20-F 2020 Sustainable business (continued) The COVID-19 crisis, especially its economic ramifications, may worsen the inequalities that exist in society. Women and young people are disproportionately affected, economically and socially. Low-wage workers, small enterprises, the informal sector and vulnerable groups, in part due to more limited access and ability to use digital solutions, are at greater risk of negative socio-economic impacts of the crisis, showing that digital inclusion and literacy are even more important. We aim to contribute to building an inclusive digital society where no one is left behind, across all ages and socio-economic groups, from those in rural settings to our growing cities making technology relevant and accessible to everyone. To reflect recent changes in Vodafone's direct geographic footprint, this year we amended our previous goal to connect women in emerging markets, to be focused on Africa4 and Turkey. Research from GSMA shows that Sub-Saharan Africa has one of the widest mobile gender gaps of any region, as women are 13% less likely to own a mobile phone than men5. In addition, it is estimated that there is a 37% gender gap in mobile internet use. Owning even the most basic mobile enables a woman to communicate, access information, learn, manage her (afammoiblyil'es-)ofpintiamnicseesd, sweet buspitaen. dThruensaerbvuicseinheasss haenldpeedveonvgeret1h.8elmpiilflifoenelpinagretnhtrseaantedncedar.eNgiovteerss: tIonctlaukseiopnosfoitrivAelal cWtioenbsetloieivmepthroavt ethteheoiprpcohritludnreitnie'ss haneadltphrosminicseeiotsf laaubnetctherindi2g0it1a7l.fuAtnuriensdheopuenlddebnetasctucedsysitboleastsoesasllt.hAessodcigioit-iescatoinoonmdircamcoantitcriablluytiionncroefatshees tsheervriacteefoofucnhdatnhgaet 9an5d%poafcethoefminontohevrastiaonnd, upnrelegsnsainttiswionmcleunsisvuer,viet yceadn swaiiddetnhaetxtihsetiningfodirvmisaitoionns rinecoeuivresdocinieftliueesn. cOeudrthgeoiarldtheecirseifoonretoisbarlesaosttfoeedde.mInocardatdiisteiodni,g9it6is%atiaognr,eemdatkhiantgthsuerienefovremryaotinoencraencebievneedfihteflrpoemd twecithhntohleoigryd.eSciimsioilnartloy,vwacecnineaetde ttohefiorccuhsilodn. Itfhethhisumwaenrearseppercetsseonftadtiivgeitaolfcaolnl nMeuctmiv&ityBaanbdycsounbtescnrtibanerds,hoitwwtohuelyd ismugpgaectstotuhratlitvhees.sGerevnicdeermeaqyuahlaivtyeainnfdluceonncneedcttihnegvwacocmineantiBoyn demecpisoiwonesrifnogrwthoemcehnildanrednporfoampoptrionxgimgeantdeleyr 6eq5u0a,0li0t0y,iwndeivciadnueanlsabinleScooumthmAufnriitciae.s,Reecaodnmomoireesaatnvdodbaufsoinnees.csoesm/minucmluadnidnbgaobuyrToawcnklintgodpormosepsetric. 4vi5olEexnccleuadnindgaEbugsyeptS.aGfeStMy iAs ,o2n0e2o0f.tfhuelfbililginggestthseoircipaol tbeanrtriaiel.rsIntoMwaorcmhe2n0F1o9utnhdeaVtioondaafnonnoeuAncsepdirathnet,ianntedrnTahtiaomneasl eVxaplalenysiPoanrtonfeBrsrhigiphtthSaktyo,falifmreieteadpmp odbevileitlyo.pAedgawinitsht HWeosmtiae,nparonvdidGeisrlssu, p2p0o2r0t. aInndcrienafsoinrmgaatciocenstsotoanhyeoanlethwahdovimceaiynbSeoiunthanAafbriucsaivIne rSeolauttihonAsfhriipca, ,oVr ocodnacceormne'sdMabuomut&soBmaeboynesetrhveiycekinsoawf.reSei-ntcoe-uBsreig(nhot Sdkaytawcahsarcgreesa)temd,obthieleahpepalhtahssbeerveincedowwhniclohagdievdesovcuerst4o1m,0e0rs0mtimateersnianl,thneeoUnKat.aWl aonrdkcinhgildwihtehaTlthhaimnfeosrmVaatliloeyn.PTahrtenienrfsohrimp,aVtioodnaifsosnheaFreodunthdraotuiognh hwaeseakllsyo sltaaugnec-hbeadsetdheSMseSrvmiceesisnagIreesl.aAndddanitdiotnhael Chezaelcthh-Rreelpautebdlicco. nBtyenMt, asrucchh2a0s2a1r,tioculersa, mvibdietioosnainsdfoturTtohreiarlos,lli-soauvtabiulailbdlse othnroovugerh
ten years of "Apps Against Bright Sky to be live in 12 countries. In the wake Abuse" by Vodafone Foundation that connect over of COVID-19, the app has seen a 75% increase one million people affected by domestic abuse in downloads, and has been credited by UN Women1 to help and advice. as a key tool in supporting survivors during this periodNote: 1 UN Women, COVID-19 and Ending Violence Progress towards our 20 million women goal Estimated number of female customers in Africa4 and Turkey (millions) FY16 FY17 FY18 FY19 FY20 36.8 40.0 41.6 46.3 46.2 Goal: To connect an additional 20 million women living in Africa4 and Turkey to mobile by 2025 44 Vodafone Group Plc
Overview Strategic Report Governance Financials Other information Youth skills and jobs Mobile technology also enhances many public and commercial services, from accessing vaccinations and maternal healthcare, to mobile banking and online support for smallholder farmers. We are using our mobile technologies to enhance the quality of women's lives t hrough commercial programmes that: On completing the tests, users also receive a summary of their skills and interests that can be used on their C.V. or in a job application. As part of our #ChangeTheFace campaign (see below), version 2.0 of the service was launched this year and it has now helped over 539,000 people globally, matching users to the top five digital jobs that match their interests and their skills. Since April 2018, we have provided 168,899 digital learning experiences to young people at Vodafone, thereby exceeding our target. This has been through a range of initiatives including work experience, apprenticeships, intern and graduate schemes and coding programmes. Read more about our progress against our target on page 59. Recently, as part of Vodafone's commitment to support society during the COVID-19 crisis, we made a new range of online educational and training support available to customers and employees for free. This included online egolaealrwniansgsectoiunrs2e0s1f6ro(mseeUcdheamrtyoannpdaegxete4n4d)e. dRaecadcemssotroePoenrloeugroa'sppornolainceh ltiobrsaurpypoofrtaincagdgeemnidcetreexqt ubaoloitkysiannodupruwbolirckaftoiorcnes,. iNncoltued: i6ngOoEuCrDn,ew20g1l9o.balSpuaprpeonrttael dleuacvaetiopno,lisckyi,lllsauanncdhjeodbsth; is Iymeaprr,oovnephaegaelth5,8w5e8llobuerincgomanmdistmafeentyt;toangdenYdoeurthdiuvneresmitpylwoyimthetnhtercermeaatiends hbyigVh oindamfoanneyaonfdousurpoppoerrtaetdinbgycNouonktiraieasn:d57a%croisnsSthoeutthecAhfnroicloag, 3y5s%ectionrGarseeemcep,lo33ye%rsinplSedpgaienvaancdan2c9i%es ifnorItIaClyT6p. rAotfethsseiosanmales itnimEeu,rdoepme,aannddfoarddeicgliitnailnsgk#ilClshaalnregaedTyheoFuatscteripOsnthInetesurnpaptliyonoaflaWvaoilmabenle'staDleanyt.2A02s0a,gwloebfaulrtthecehrendolloaugyncbhuosifn#eCssh,aVnogdeTafhoenFeawcea.nTtshitsogaldodbraelsisntihtiias.tivIne,2E01ri8c,sswoen,laauimncshteodbaoofrsetedsivmearrstephreopnreesaenndtawtieobn-btoasmedakseertvhieceseccatollredmFouretuirnecJluosbisveF.inTdheerredeasrieganlerdeatdoyhheulpndyroeudnsgopfethopoulesafinnddsjoofbuonpfpilolerdtunnuitmiebseinr othf ewdoimgietanlfeilcloinngomthyesaenrdoflerese. RdeigsietaarlcshkiflrlosmtrathineinEgu.rTopheroaungChotmhemtiososli,opnsiync2h0o1m8etarliscoteshstoswidsetnhtaitfywionmdievnidrueaplrse'saepnttiotundlyes2a1n.5d%inotefraeslltsw, morakpeprsinign dthigesitealtojotbhse. mToosht ealpppardodprreiastsetdhiigs,itwalejhobavceateexgpoarnyd;eads twheelslearsvjiocebsoopfpfeorretudnoitnieosuirnftrheeeirFuchtuorseenJolboscaFtiinodneorrtowoilthtoineVmopdoawfoernem. oreEnwaobmleeenc.oOnuormuipcdeamtepdotwoeorlmweinllt.hWelpe malosorehwavoemsepnecaicfcicesisnitteicahtinvoelsotgoyscuaprpeoerrts,feemveanleifenthtreeyphreanveeunrso, einxcpleurdieinngceBoursqinueaslsifWicaotmioenns CinotnhneescetcitnoTr.aAntzathneiasaamndeMtimozea,mwbeiqhuaveeancdomVmoditatefodnteoTwuorrkkeywFitohugnldoabtaiol snu'sppWlioemr deinveFrisristtyinleEadnetrre, pWreEnCeuornsnheipctpIrnotgerrnamatimone.aWl, teohbaovoestmdaivdeerpsirtoygarensdsitnocwluasridosnoiunroguorasluapnpdlyhacvheaiannaensdtimcoantnedec4t6w.2ithmmilloiorenwacotmiveenf-eomwanleedcubsutsoimneesrsseisnwAofrrlidcwa4idaen.dRTeaudrkmeyo,re9.a3t mchilalniogne-mthoer-efascien.cceomouSr uopripgoinrtailng digital skills through Vodafone Foundation Through our local foundations, Vodafone has launched a number of programmes that help young adults develop their skills, including digital ones, and support the development of young entrepreneurs. "Coding For Tomorrow" in Germany, supported by Germany's State Minister for Digitisation, has helped over 85,000 children and young people since 20t1h7attocolmeabrninceoVdoindga,faosnew'selclhaasrbituabillde ogtihveinr gskainllds tseucchhnaoslocgryeattoivdeeplirvoebrlepmubslioclvbiennge.fTitoansudpipmoprtrosvuestpaienoapbllee'schliavnegs.e,Tohviserin1c,l3u0d0esteaacfhoecrussforonmdraivcirnogssg1e5n0desrcheoqoulaslihtya,vaenrdecdeiisvaesdterspreecspifoicnstera.iTnhinegtototadlealmivoeur ntht edopnroagterdamtomVeoadnadfocnoentFeonut nhdaastaiolsnoinre2c0en2t0lywbaeseonvcerreat4e6dmtoilblieonu.seGdobayls:liSburaprpieosrtatnedn mmuilsleiounmys.oIunngSopuetohpAleftroicaac, c"e#scsoddiegliitkaelasgkiirlll"s,hlaesarnnoiwngreanacdheemd p7l0o0ymgiernlst aocprpoosrstualnlintiiensebpyro2v0i2n2cePsrosivnicdee l1a0u0n,c0h0i0ngopinpo2r0t1un7i,tpiersovfoidriynogutnhgempewopitlhe atowreecekei'vsecoaudrisgeitianl cleoadrinnign,gSeTxEpMerieanncdeliafteVskoidllasfotrnaeinbiyng20as22w4e5ll VasoidnaffoornmeaGtioronuapbPoluct AcynbneurabluRllyepinogr,t ionnteFronermt s2af0e-tFy 2a0n2d0entrepreneurship. In Greece, the Foundation runs "Generation Next", helping students aged 1218 to discover and learn more about STEM topics, while creating their own innovative projects that bring solutions to social problems. More than 78,500 students and teachers have benefited to date. Beyond digital training, the Vodafone Foundation designs and implements programmes around the world
Annual Report on Form 20-F 2020 Sustainable business (continued) Notwithstanding ever-growing use of data and expansion of our networks, this year our total GHG emissions decreased by 9% to 1.84 million tonnes of CO2e (carbon dioxide equivalent), predominantly due to an increase in the proportion of renewable electricity purchased. We continued to improve our overall energy efficiency during the year and achieved a 38.5% reduction in the amount of GHG emissions per petabyte (`PB') of mobile data carried, to reach an average of 230 tonnes CO2e per PB (2019: 374) (see charts below). During the year 25.9% of our electricity used was from renewable sources (2019: 15.6%). This year we launched sourcing activities for Power Purchase Agreement (`PPA') contracts, notably in the UK and Spain. In addition, Germany, Romania, Greece and Hungary all sourced Renewable Energy Certificates (`RECs') or tariffs for the first time during the year. In July 2019, Vodafone committed to setting a Science Based Target over the next year which is aligned to limiting global temperature rise to below 1.5°C and reaching net-zero emissions no later than 2050. This will require a significant reduction in our direct carbon emissions as well as setting targets for indirect emissions (including suppliers and joint ventures). We are also part of a GaSndMoAurtacsuksftoormceertsh'aitnhcarseadseifnigneddemthaenedmfiosrsidoantar.eIdnuacdtidointiopant,hownaeyoffoorutrhemtoesletcimomposritnadnut sctoryn.trIinbureticoongsniistitohnrooufgohuur sgiongveorunarnteccehonnolGogHiGeseamndissseiorvnisc,etshitsoyperaorvVidoedoaufornceusmtoomveedrstowaitnh Ath-efrmomeaansBtoinacthheielvaeteastrCedDuPctiroantining.thOeuirr gPrleaenneht opurosegrgaamsm(`eG, HinGcl'u)deimngisosuiornosb. jRecetdiuvceinofghcaalrvbionng eomurisesniovnirsonRmeaedntmaloirme poancVt, oisdaaflsoonea'lsiganpepdrotoacohutroricslkimmaitteigcahtaionngeprroisckesasl.igWneedhtaovtehiedeTnCtiFfDie,dspeoetepnatgieal6c9li6m9aOtepcthimanisgiengrioskusr tehnreoruggyhcaonTsausmkfpotricoenoWneCalrime catoem-rmeliattteedd Ftoinimanpcrioavl iDngiscthloeseunreer(g`yTCefFfDic'ie)nsccyenoafrioou-rbabsaesde rsitsaktioanndsiotepspoanrtduninityouarssteescshmnoelnotg. yTh(disathaaasnhdelspweidtcthoinspge)cciefinctarlelsy, iwdheincthifytotgraetnhseitrioancc, opuhnytsifcoarl,9r5e%guolaftoouryr taontdalrgeploubtaatlioennearlgryisckos.nIsnum20p1ti8o,nw. De eusritnabgli2s0h2e0d,awgereinevnebsotenddf7ra7mmeiwlloiornk,cuanpditearl wexhpicehndVitoudreafionneeniesrsguyedefiftiscfieirnsct y7a5n0d mreinlleiwonabglreeepnrobjeocntds aincrMosasyo2u0r1b9ustoinfeisnsa,nwcehiocrhrheafisnlaendcetoparnonjeucatlsetonehreglypsuasvminegestoofu1r8e6nGviWrohn.mOeunrtaelnoebrgjeycetifvfeicsi.eTnhcye finraitmiaetwivoerskaarendfoscuubsseedquoenntthrreepeokret ydeafrienaes:whsicohurpcrionjgecatnsdariemeplliegmibelnetuinngdemrothree eufsfeicoiefnptrnoectewedosrkaneqduhiopwmethnte;yarreedsuecliencgteedn.ePrlgaynedteWmaenbdebliyevinestthaalltinugrgleonwt earn-denseursgtayinpeodwaecrtaionnd icsoroelqinugiretedcthonaodlodgreiesss;tahnedclimcuattteinegmeenregregnycyusaendbythdaetcboumsimneissssiosnuicncgesasnsdhroeuplldacniontgcloemgaecayteaqcuoipsmt teontth. eNeontve:ir7onAmgeanint.stWae2h0a1v7ebcaosmelminiet.tefdrotmo hreanlveiwngaboluerseonuvrcireosnPmeercnetanltaimgepaocftpbuyrc2h0a2se5d. Oeluerctfroiccuitsyo%n eFnYe1rg8yFeYff1i9ciFenYc2y0, r1e5n.e4w1a5b.l6e2e5n.e9rgVyosduapfopnlye aenndereglyimuisnea(tiGnigganwetawttohrkouwrsa)stBeaissehsetlaptiinogn usistetos OmfiftiigcaesteFtYhe18en3v,i6r2o7nFmYe1n8ta3l 0im1pFaYct19of3t,h6e65gFroYw1t9h 2o7f7ouFrYb2u0siness
3,810FY20 256 Technology centres Retail stores FY181,538 FY1855 FY191,540 FY1946 FY20 1,430FY20 45 Total FY18 5,521 FY19 5,528 FY20 5,541 GHG emissions million tonnes of CO2e 2.072.01 1.84 FY18 FY19 FY20 Scope 1 emissions (over which we have direct control) Scope 2 emissions (from purchased electricity) Note: Calculated using local market actual or estimated data sources from invoices, purchasing requisitions, direct data measurement and estimations. Carbon emissions calculated in line with GHG Protocol standards. Scope 2 emissions are reported using the market-based methodology. For full methodology see our Sustainable Business Addendum 2020. 1.78 1.76 1.56 0.26 0.29 0.28 GHG emissions per petabyte of mobile data carried by our networks tonnes of CO2e FY18 FY19 FY20 591 374 230 Goals: Reduce our GHG emissions by 50%7 by 2025 Purchase 100% of the electricity we use from renewable sources by 2025 46 Vodafone Group Plc
Overview Strategic Report Governance Financials Other information Working together with eSight Energy, Vodafone has implemented an energy data management system using data feeds from our electricity suppliers and from smart meters across 58,000 sites in Europe. To support our energy reduction programme, we have established an employee engagement initiative, "#RedLovesGreen". This aims to raise awareness of the individual actions that employees can take to reduce energy use and encourages changes in behaviour that collectively could have a significant impact. More than 16,000 colleagues are currently members of the RedLovesGreen community and over 3,000 have completed a dedicated energy awareness e-learning course. Scope 3 emissions Scope 3 emissions are indirect GHG emissions over which we have no direct control but may be able to influence. This year, our estimated Scope 3 emissions were 11.9 million tonnes of CO2e (see chart below). We have worked with the Carbon Trust to analyse our Scope 3 emissions and prioritise where we have the greatest opportunity to influence reductions. Enabling customers to reduce emissions Our biggest contribution to mitigating climate change is the way our products and services are helping our customers to reduce the environmental impact. Through our IoT sleorwviecreism, wpaecatraeltheernlpaitnivgeosuarccroussstoamlleorsurtoremtaainl astgoereesnearngdyomffoicreese.fTfihciisenintlcyluadneddrendoulcoengtheeriur seimngisdsiiospnos.saWbleeepsltaimstiactebathgastionvreerta3i0l %stoorfesth, easmwoerlel tahsarnem10o3vimniglloiornreIsotTricctoinngnepcltaisotnics mwaerokpeetirnagteadnidrepcrtolymeontiaobnlaelcmusattoemriaelrss, troepreladcuicneg tthheeimr ewmiitshsiaolntesr,naantidvweseweixthpeactlothweesreecnovninroencmtioennstatloiminpcraecat.seIno2ve0r19ti,mwee. 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In some markets, we are now offering Fairphone 3 as an option for employees' work phones. Vodafone and Fairphone will also collaborate on best practice and share knowledge on key industry sustainability issues including the circular economy, electronic waste and resspeorvniscieblteospoaurrtncienrgm. Warkoertksi.nGg otoalw: aTrodsreouusren, eretwseollrkowr raescteyctlaerg1e0t0T%hiosfyoeuarr,nwetewloaurkncwhaesdteAbsyse2t0M25ar4k7etVploadcaef,oanbeuGsirnoeusps-Ptolc-bAunsinnueaslsRsoelpuotirot nonwFitohrimn V20o-dFaf2o0n2e0that allows us to re-sell and repurpose large decommissioned electrical items like masts and antennae, helping us reduce carbon emissions by not needing to purchase new items. The solution also helps save an average of 63% of expenditure versus buying new equipment. Within two months of launching Asset Marketplace, shipments including radio equipment were sent from Germany to Portugal and from the UK and the Netherlands to several markets in Africa. Over the next year, we plan to expand the scope of Asset Marketplace to include IT and terminals, whilst also opening up the
Annual Report on Form 20-F 2020 Sustainable business (continued) Operating responsibly We are committed to ensuring that our business operates ethically, lawfully and with integrity, as this is critical to our long-term success. This section addresses some of our key responsible business practices and details the activities we put in place to ensure our operating practices meet our own and our stakeholders' expectations. In 2019, we launched our new Group human rights policy, setting out the minimum requirements that everyone working for and with Vodafone must comply with across all human rights topics. We manage human rights risks through our human rights due diligence approach, which is aligned with the United Nations Guiding Principles on Business and Human Rights. We believe that any contact tracing apps should fulfil four conditions to adhere to human rights. These apps must be a) independent of operators and other private companies; b) developed and controlled by national health authorities; c) still require consent; and d) it must be for the state institutions to justify why contact tracing is necessary and in line with existing laws and regulations. It is especially in times of crisis that there is a critical need to stay true to our values and to ensure that the measures we take as a company, and as an industry, are based woneaelnthsuarnindgdtehveelporpomteecntitoonfocfohuunmtriaens,drieggniiotynsananddthleocaadlhceormenmceuntoitifeusnidnaamwenatyalthriagthatds.vIannctheisstchoenpteroxtte,ctrtiaonnspaanrdenpcryomhaostinoenvoefrabeneunmabserimopfofurtnadnatmasenittaisl hnuomwa, nanrdigwhteswanildl cfroenetdinoumestoansdhasureppasormtsutchheafsulwl reecaalins.aRtioenadofmsoorceioa-tevcoodnaofmonice.dceovme/lohpummeanntr.iOghutrspmoolisctyssataliteenmtehnutmEannsurirginhgtshruismksanrerliagthetstoatrheeuipnhdeivldidduuarli'nsgritghhetCtoOpVrIivDa-c1y9acnrdisifsreOeduor mfocoufsexonprheussmioann. rOiguhrtcsoismemveitnmmenotrteoimouprocrutasntot mduerrisn'gptrhiveaCcOy VgoIeDs-b1e9ycornisdisl,egwahlicchomhpalsiaanscieg.niWficeaanrtesfoocciuos-eecdoonnombuicildiminpgaactc,uplaturtriecuthlaartlyreaspcreocstss ctheertraiignhgt rtooupprsi.vWacey hinavoerdaernutomjbuesrtiofyf pthroegtrruamstmtheast tpoemopilteigpaltaectehiisniums,paacntd, walhwiacyhssstreeetkchtoacrerospssecotuarnwdosrekefkortcoep, rsoutpepctlioerusr, ccuussttoommeerrss'alnawd fvuullnriegrhatbsletoghroouldpsa.nTdheexcprriessiss ohpasinailosnoshaingdhlsighahrteedinthfoermtenatsiioonnabnedtwideeeanspwriivthaocyutainndteprfeerrseonncael.fAretetdhoems,amonetthime oe,naeshaanlidc,eannseddpnuabtliiocnsaalfoetpye,roatnotrh, ewoethareer.oAblsigpeadrttoofcooumr pClOy VwIiDth-l1a9wrfeuslpoorndseer,swfreohmavneatpioronvaildaeudthteocrihtnieiscaalnsdupthpeojrutdtoicgiaorvye,rinnmcleundtisn,gfolarwexeanmfoprlceetmhreonutg. Rh ecsrpeaotninsigblheesaut pmpalypscshhaoinwWinge shpoewndcoanptparionxmimenattemlyeas2u4rebsiallfifoenctapyoepaurlwatiitohnamroouvnedm1e1n,t0s0i0n daigrgecretgsautpepdliaenrds aarnoounnydmtihseedwfoorrlmd ,toanmdegeitvoinugr baudsviinceesosens'thaenddecvuesltoopmmeerns't noefepdrisv. aEcvye-rpyressueprpvliinegr tchoanttawcotrtkrascfionrgVaopdpas.foWneheisnrdeoqiunigresdo,towaebdidoenboyt opurorvCidoederaowf Ecuthsticoaml ePrudrachtaastoinggo. vTehrensmeecnotms,manitdmweniltlsneexvteerndvodlouwntnartihlyrooufgfehrtoheursucupsptloymcehradinatsaoftohraat naysuinpiptilaietirvwesitthhawt hreicmhowvee thhaevreeaqudiirreemctecnotnftorracctounaslernetl.aHtiounmsahnipri(gThietsr A1 tsVupopdlaiefro)nien, wtuernbieslireevqeutirheadt wtoheenresuvreer cwoemoppleiarnatcee, awcerocsosnittrsibouwten tdoirtehcet
supply chain (Tier 2 supplier from Vodafone's perspective) and beyond. The Code of Ethical Purchasing is based on international standards including the Universal Declaration of Human Rights and the International Labour Organization's Fundamental Conventions on Labour Standards. It stipulates a range of ethical, labour and environmental standards that we expect to be followed across our supply chain, including areas such as child labour, health and safety, working hours, discriminaatinodneamndbrdaicsecdipbliynaseryniporrolceeasdseerss. iNnuamnbuemr boefrsiotfekaesyseasrsemaesnotfstchoenbduuscitneedss(eainthderthbayt tVheodCaofomnpeaonrytuhsroesugtehchJAnoCl)ogFyYa1n8dFeYx1is9tiFngYc2o0m9p8li8a5nc7e4sUysntdeemrgsotoinegmobuerdfihrsutmGaNnIriagshsetsssimntoenetvIenry2d0a1y7,cwome pjoainnyedprtohceeGdulorebsalanNdetpwroocrkesIsneist.i"atFivoer (m`GorNeIi'n)faosrma aBtiooanrdonmtehmebGeNr. ITchoemGpNanIyisaassmesuslmti-esnttaskvehisoitl:dwerwfowr.ugmlobfoaclnuestewdoornkipnriotimatoivtien.goragn/cdoamdpvaannyci-nagssefrsesemdeonmtso4f8eVxpordesasfioonne aGnrdotuhpePrligcht to privacy worldwide. As part of our ongoing commitment as a member, we underwent our first independent GNI principles implementation assessment in 2019. The GNI Board concluded Vodafone is "making best faith efforts to implement the GNI Principles with improvement over time" this is the formal wording adopted by the Board for companies' successful completion of the assessment. Our independent assessor noted, for example, that "the GNI principles are well understood
Odvuerrevsiseiws mStardatee,gthiceRinecpiodretnGt omvuesrtnbaencreepFoinrtaendctioaltshOe tchoemr pinlifaonrmceatteioanmTahsossoeorneqausipreomsseibnltes aarfetebrwacakredds.uOpnbeyorfisthkeawssaeysssmtoenhtesl,patuhdeitfsigahntdaogpaeinrsattiConOaVl iImDp-1ro9viesmthernotupgrhoccehsasreitsa,bwlehidcohnwateiosnusmamndarciosentbrieblouwtioannsd, ewithhiecrhmaroeneatlasoryuonrdienrpkiinnnde.dWbeyabriendpirnogudcotnothraacvteuableceonmamblietmtoenprtso.vWidee deovnalautaiotensouforrstuhpopsleieirns'nceoemd.pWliaenhcaevweiitshsuoeudr gCuoiddeanocfeEttohiaclallmPaurrkcehtassainngd tFhoruonugdahtiaodnesttaoilaedssaisststehsesmmeinntththeaitr masasyesisnmvoenlvteoafndiofnfe-sreitnetaiunditiita.tiSvoems,etosietensauurdeitdsoanraeticoonnsdaurcetegdivuenndienr ltihneeJwoiintht AouurdpitoCliocioepse, raantidonto(s`JtiApuCl'a)teincilteiaatrivsete,pasnfaosrssoeceikatiniogneoxfcteeplteicoonms mtoutnhiecaptoiolincsieospwerhaetroerstheessteabalrieshdeedemtoeidmnpercoevsesaerthyi.cGalo,vlearbnoaunrcaenadnednrviisrkonamsseensstamlesntat nOduarrdCshiinefthEexIeCcuTtisvuepapnlydcGhraoiun,poEfxwehcuictihvVe oCdoamfomniettiesea(`pEaxrtCicoip')aotivnegrsmeeemobuerref(fsoeretschtoarptroenvepnatgberi4b8e)r.yT.hTehteoypatrheresuepapreoartseodfbnyonlo-ccaolmmpaliraknecteCwhieerfe:EOxeucruatnivtie-sb,rwibheoryapreolriecsypoisncsiobnlseisftoernetnwsiutrhinthgethUaKt oBurriabnetriy-bAricbtearyndprthoegrUamSmFoeriesigimn pCloermruepnttePdraecfftieccetisvAelcyt,inantdhepirrolvoicdaelsmgaurikdeatn. cTehaebyoiunt twurhnatarceonsustpitpuotretseda bbyribloecaanldsppercoihailbisittss agnivdinbgy oardreedcieciavtiendgGanroyuepxtceeasmsivtheaotrisimsoplreolpyefrogciufstsedanodnhaonstpi-ibtarliibteyr.yApnoylipcoylaicnydbcroemacphleiasnccaen. lVeoaddatfoondeis'ms Risissakl oanr dteCrmominpatliioanncoefCcoomntmraicttt.eFeaacsisliistatstitohnepEaxyCmoentotsfuarlfeilstirtsicatlcycopuronhtaibbiitleitdiebsywoituhr rpeoglaicrydsatnodroisukr memanpalogyeemeesnatraenpdropvoildiceyd cwoimthppliraancctiec.aTl hgeuikdeayncaectoionnhsofworttoherepsrpoognrdamtomdeemfoarntdhse fcoormfaincigliytaetaior narpeadyomceunmtse.nTtehdeionntlhyeebxrciebpetriyonrisisk wlinheenofansiegmhtprleopyoeret',swpheircshonisalresgaufelatyrlyisuapt driastke.dIbnysuocuhr GciercnuemrasltCanocuenss,ewl.hAens paaprat yomf oeunrt uanntdie-r binriboeurryseplreocgtriaomn mofes,uepvpelriyerVs.oDduafroinnge tbhuesCinOesVsImDu-1st9acdrhiseirse, ttoo masisnisimt buumsingelosbseasl mstaonsdt aartdrsis,kwwhiicthhininocluurdseu:ppelynscuhraiinng, Vthoerdeafiosnaediuseednsiluigrienngcethpartoaclel snsefworosrudpeprsliiesrssuaenddtobuosuirnemsiscproaratnnderssmatatllhesusptaprltieorfs tphreobviudsiinngesgsoroedlastiaonndshseiprv;iceHsetaoltVho&dasfaofneety'smEautrtoerpseraenlaotpederatotinonosn-acroemppaliidanint b1u5ilddaiynsg, sinasfetetyad; ofEtnhveircounsmtoemnatarlym30attteors60redlaatyesd. Ttohneobnr-icboemryprliisaknst wcheefmaciceaalrsetocroangsetaanntdlylaecvkolovfincga.rbTohnerteadbulectbioenlopwrosgurmammmareisse; santhdepcrionmcipplaeltiroisnkocfattheegogrlioebsaalned-lethaernminegasturariensinwgeftoarkaellinemmpitliogyaetieosn,.aRs iwskelRl aessptoainlosereOdpteraraintiinngg ifnorhhigighh-reirskrimskatrekaemtssW; aendundEerxtcaeksesibvieenwnoiarlkrinisgkhaosusersssdmueenttos nineeedaicnhgobfeottuerr ldoecmalaonpdemraatinnaggecmomenpta.nieussianngdVatoGdarfoounpe'lesvgello,bsaol wonelcinaenguinftdaenrsdtahnodspaintadllitimy riet goiusrtreaxtipoonsuprlaettfoorrmis,ka.sBwuseilnl eassseancsquuriisnigtiothnearendisinatpergorcaetisosnfoArnatip-pbrroibveinryg cloocnaslidseproantisoonrsshairpestaankdenchinatroitaabccleoucontntwrihbeunticoanrsr.ySinugppoluietrdsutehadtidliogennoctemoeneat otaurrgsettacnodmarpdasnayr.eRperdovfildageds iwdeitnhtiaficeodrrdeucrtiinvge tahcetidounepdlailnigteonacdedarreessreavniyewareedasanfodraismsepsrsoevde.mFeonlltoawnidngaraecrqeuqiusiirtieodnt,owseubimmpitleemviednetnocuertahnatti-tbhirsibhearsybpereongrcaommmpele.tSedpe. cOtruurmsulpicpelniesrinpgerTfoorrmeadnucceemthaenraigskemofenatttpermopgtreadmbmriebecoryv,earssepnevciiarolinsmt sepnetcatlrufamctpoorsl,icayndtesaumppolvieerrss'eeGsHoGurppearrftoicrmipaanticoeniisnoanlel noefgtohetiaftaicotnosrsanevdaaluuactteiodnisn. Wouer panronvuiadleaasspepsrsompreinatteprtroaciensisn.gWanedalgsuoidaasnkcseelfeocrteedmspulopypelieesrswthoopirnotveirdaectdwetiathilsgoofvethrneimr eGnHt oGffeicmiaislssioonnsspaencdtrmumanamgaetmteersn.tBpruoilgdrianmgmaneds tuhprgoruagdhinCgDnPe.twWoerkhsaOveuralasnotic-hbarinbgeerdy tphoeliwcyeimghatkinesgiitncoleuarrptrhoactuwreemneenvte,rgoivffienrgamnyorfeoremmpohfainsidsutcoepmuernptotsoe
secure a permit, lease or access to a site. We regularly remind all employees and contractors in network roles of this prohibition, through tailored training sessions and communications. Working with third parties Suppliers and other relevant third parties working for or on behalf of Vodafone, must comply with the principles set out in our Code of Conduct and Code of Ethical Purchasing. Third party due diligence is completed at the start of our business relationship with suppliers, other third parties and partners. Throutagrhgethteedirtrcaoinntirnagctfsowr oituhruVs,ooduafrosnuepBpluiesrisn,epssaratnnderPsaarntndeortMhearrtkheitrsdspaalertsietseammask.eInaacdodmitmiointm, wenetatlosoimmpaleinmtaeinntaanndd mmoaninittoairnapgrloopboarltiroengaistetearnodf egfiffetsctainvde haonstip-ibtrailbiteyrytoceonmspulrieanthcaetmineaapspurroeps.riWatee orefgfeurlsaralryerneomt iancdcecuptrerednotrsuexptpelniedresdobfyouorupr oelmicpyloryeqeeusir.e4m9eVntosdaanfodnceoGmrpoluetpePdlectaAilnenducaol mRpeplioarntcoenaFssoersmsm2e0n-tFs 2a0cr2o0ss a sample of higher-risk and higher-value suppliers. Select high-risk third parties are trained to ensure awareness of our zero-tolerance policy. Anti-bribery and corruption At Vodafone, we support and foster a culture of zero tolerance towards bribery or corruption in all our activities. Our anti-bribery policy Our policy on this issue is summarised in our Code of Conduct and states that employees or others working on our behalf must never offer or accept any kind of bribe. Winning and retaining business We provide
Annual Report on Form 20-F 2020 Sustainable business (continued) Mobiles, masts and health The health and safety of our people, customers and the wider public is a priority for Vodafone. We always operate our mobile networks strictly within national regulations, which are typically based on, or go beyond, international guidelines set by the independent scientific body the International Commission for Non-Ionizing Radiation Protection (`ICNIRP'). There has been scientific research on mobile frequencies (including those used by 5G) for decades, and 5G is covered by international and national exposure guidelines and regulations. Following an extensive review of scientific studies published during the last 20 years, in March 2020 ICNIRP confirmed that there are no adverse effects on human health from 5G frequencies if exposure is within their guidelines. In addition, the majority of Vodafone's markets that have rolled out 5G have implemented a "Smart PowerLock" feature which guarantees compliance with electromagnetic field (`EMF') regulations under all possible operating conditions for all 5G sites by reducing the energy radiated when certain network conditions are met. There is no credible scientific evidence linking the spread of COVID-19 to 5G or to mobile technologies. It is regrettable that unproven, ruanisseubaswtaanretinaetesds athnedourinedsecrisrtcaunldaitninggopfrtihmeaproillyicoyn. Tsohceia"lDmoeindgiaWhahvaet'sinRciitgehdt"inpdriovgidraumalms etoadlsaomfaegaetumreassets-laenadrnbinagsetrsataintiionngs, winhaicnhuimncbleurdoefscaosupnetrciiefisc, athnetri-ebbryibjeeroypmarodidsuinleg. pTeoodpalete's, ocvoenrn9ec0t%iviotyf,aicntcivluedeimngpldoiygeiteasl aarcocuenssdttohehewaoltrhldsehravviceecso. mWpelehtaevdethbeeeen-leenarcnoiunrgagtreadinbiyngt.he`SrpeesapkonUspe'frAolml Vthoedascfoiennetiefmicpalnodyeteeschanreiceanl ccooumramguendittyo irnepreojretcatninygstuhsepseeccteladimbrse,aacnhdeswoef aopuprrCecoidaeteotfheCownodrukcctaarsriseodonouatsbpyofsascibt-lceh, eucskininggoourrg`aSnpiseaatkioUnps,'gporovcerensms. eSnetnsiaonrdexheecaultthivaegsernecviieeswineveenrsyurSinpgeatkhaUt pthreepesotratbalnisdhethdespcrieongtriafmicmpoesiistiroenviieswcoedmbmyutnhiecaGterdoutop tRhieskpuabnldicC. IommpplleimanecnetaCtioomnmofitttheee.aSnptie-abkriUbepryoppeorlaicteysius nmdoenriatonroend-rreegtaulliaartloyryinpaolllicloyc: aelvmerayrokneetswahsoparartisoefstahecoanncneuranl iGnrgoouopdPfoaliitchyisCtormeaptelidanfaceirlRyewviiethwnaosnsuergaantciveepcrooncseessq,uwenhcicesh froervitehweisr keemypalonytim-bernibt ewryithcoVnotrdoalfso. nVei,sritesgtaordlolecsasl omfathrkeeotsu,tcoonmaerootfatainnyg sbuabsisse,qeuneanbtlienuvessttoigaastsioesns. tThheisimypealerm, 6e0n2tasteiopnaroaftethceonancteir-nbsriwbeerrye prerpoogrrtaemdmuseiningmSporeeakdeUtapilo,ntharowuigdheorann-tghee-ogfriosusundesre(tvhioeuwgsh. Tonhliys yaevaer,ryresvmieawllsfrwacertieocnowmeprleetreedlaitnedVtoodbarfiobneeryEagnydptcoanrrdupVtoiodna)f.oWneeBhuasvienersosb.uTsht egorevveirenwanscdeemmeocnhsatrnaitsemdsgionopdlaimceplaenmdecnotnadtiuocntoref gthuelaarnctoi-mbrpilbiaernycepraosgserassmmmeen.tsStoomeensaureraesthfoatr oimurprmoavsetms aenndt rdeelavtiicnegs tmo ethetiradllpraergtyulraitsikonms.anWageermeveinetwwaelrlepiudbelnistihfeieddsacniedntairfeicbreeisnegaracdhd.rWesseeadl.sEonpgearfgoinrmg enmetpwlooyrkeems etoasruariesemaewntasreanndescsaorfrybroiubtercyalrciusklaWtioensruannda amsuseltsis-mcheanntnseolfheixgphopsruorfeilferogmlobthael cnoemtwmourknimcaatsiotsn,sapnrdorgervaimewmeth, eDtoeisntgreWpohratts'swReirgehcte,itvoeeonngaEgMe Fwtiethsteinmgpolonydeeevsiacnesd. Read more at vodafone.com/mmh Tax and economic contribution As a major investor, taxpayer and employer, we make a significant contribution to the economies of all the countries in which we operate. In addition to direct and indirect taxation, our financial contributions to governments also include other areas such as radio spectrum fees and auction proceeds. Our tax report sets out our total contribution to public finances on a cash-paid basis. The information we share aims to help our stakeholders understand our approach, policies and princoiuprledse.taWileeddiisncfolorsmeaotiuornf,ininacnlcuidailncgonontriobuurtGioennsdteor gPoavyeGrnampeRnetspaotrta: ScouustnatirnyalbelveeBl,uassinweessbgeoliveverentahnicseisparonciemsspeosr,tathnet swcaoypetoadnedmmoentshtoradtoelothgayt oitfiosuprorsespibolretitnogaacnhdieavleigannmeefnfetctotivGeRbIaSlatnacnedabredtws. eReenaad cmoomrepaantRy'esardesopuornlasitbeisltitrieepsotrotssoatci5e0tyVaosdaafwohnoelGe,rtohurpouPglhc the payment of taxes (and other government revenue-raising mechanisms), and its obligations to its shareholders. We also share our views on key topics of relevance, including the latest on the taxation of the digital economy. We continue to include our OECD BEPS country-by-country disclosure, as submitted to HMRC. Read more at vodafone.com/tax vodafone.com/sbreporting vodafone.com/ESG2020 Find out more Our ESG Addendum 2020 provides moreOur latest reports can be found online, including our Modern Slavery Statement and
Overview Strategic Report Governance Financials Other information Inclusion for All 44 Principal risk factors and uncertainties 62 Vodafone UK) Vodafone UK reducing carbon emissions on page 46 UK Streamlined Energy and Carbon Reporting (`SECR')Global (excluding In accordance with SECR requirements, this provides a summary GHG emissions (Scope 1 and 2) 1.75 0.09 of GHG emissions and energy data for Vodafone UK, in comparison (m tonnes CO2e) with global performance.GHG emissions per petabyte (`PB') of mobile242120 data carried (tonnes of CO2e) Read more on Vodafone's approach toTotal energy consumption (GWh) 4,832709 Non-financial information statement The table below outlines where the key contents requirements of the Non-Financial Statement can be found within this document (as required by sections 414CA and 414CB of the Companies Act 2006). Vodafone's sustainable business reporting also follows other international reporting frameworks, including the Global Reporting Initiative, CDP and GHG Reporting Protocol. Reporting requirementVodafone policies and approach Section within Annual Report Environmental mattersPlanet performancePlanet46 Climate change risk Principal risk factors and uncertainties 69 Employees Code of Conduct Anti-bribery and corruption49 Occupational health and safety Employee experience60 Diversity and inclusion Diverse talent and skills 58 Social andDriving positive societal Digital Society 41 community matters transformation performance Stakeholder engagementStakeholder engagement12 Mobiles, masts and health Mobiles, masts and health 50 Human rights Human rights approach Human rights 48 Code of Ethical Purchasing Responsible supply chain 48 Modern Slavery StatementFind out more50 Anti-bribery and corruption Code of Conduct Anti-bribery and corruption49 Anti-bribery policyAnti-bribery and corruption49 Speak Up process Anti-bribery and corruption50 Policy embedding, Sustainable business 40 due diligence and outcomes Description of principal risks Principal risk factors and uncertainties 62 and impact of business activity Description of business modelOur strategy 20 Non-financial keySustainable business 40 performance indicators 51 Vodafone Group Plc Annual Report on Form 20-F 2020
Annual Report on Form 20-F 2020 Developing a new `social' contract At Vodafone we connect for a better future. We know that connectivity is transforming how we live and work and we are working to build a digital future that works for everyone. Keeping with Vodafone's commitment to play a critical role in a resilient digital society, we introduced our `social' contract which represents the partnership we want to develop. We have formulated a `social' contract to represent the partnership that we want to develop with governments, policy makers and civil society. It is based on three pillars; Trust, Fairness and Leadership. These pillars represent our offer to society and the conditions that need to be in place for the connectivity sector to thrive. We believe the formulation of this contract is an important step in creating a digital society that works for citizens and businesses alike. The pillars: Simplified and transparent pricing Closing the rural divide Leader in convergence, IoT and mobile financial services Investment in network quality and resilience Security of our networks and customer data Industry leader on network sharing Fair competition across entire ecosystem Customer-orientated approach to new technologies Digitisation of other Sustainable market structure industries Digital inclusion especially youth and women Partnerships with tech companies to enhance service delivery Network sharing enabled Deployment costs lowered Reducing planetary impact Transitioning to vendor diversity through OpenRAN Non-discriminatory spectrum auctions Common European framework for security Vodafone Foundation pushing tech innovation for societal benefit Leadership Fairness Trust 52 Vodafone Group Plc
Overview Strategic Report Governance Financials Other information Examples of `social' contract in action OpenRAN Vodafone has been advocating for more diversity in the supply chain for network equipment. Part of the solution is OpenRAN which standardises the design and functionality of the hardware and software in the Radio Access Network (`RAN') the infrastructure, masts and antennae that operators use to carry mobile traffic. In a complex technical process, the RAN gets deconstructed and reassembled into a set of fully open and interoperable sub systems that improves supplier diversity and healthy competition in the supply chain. Vodafone has opened its EU footprint for RAN tenders (>100k sites across 14 countries) and embarked on pilots in seven markets, aiming to bring strategic scale to OpenRAN. As chair the Telecom Infrastructure Project (`TIP') and member of the O-RAN Alliance Vodafone is leading on technical and policy work to agree common global standards, encourage global scale and help ensure the benefits of OpenRAN are realised. Network sharing/rural coverage Network sharing agreements have been finalised in a number of countries in order to make rural network coverage more cost efficient. In some cases such as Italy and Spain this has been done on a bilateral basis. In the UK, Vodafone has entered into a unique partnership with government and other mobile operators to provide a Shared Rural Network solution to deliver connectivity to deep rural locations that were previously uneconomic to serve. This large scale initiative will provide a connectivity boost for some of the most remote communities of the UK, bringing connectivity benefits where they live,iwn oefrfkecatnidvetrparviecle. fTohredSathaairnedthReulraaslt Ntweotwyoerakrss,eVesoVdaocdoamfoinnetraondducitesdpfaurrttnheerrs pinrivceestriendguicntioannse(twuportko 4of0%ne)wacarnodssexalilstiitnsgmpohnotnhelymbausntsdl(eosv, earnsdeetnhrboyugahjoitisntClyononwencetUd cpolmatfpoarnmy)ptroovgiudaersanfrteeee accocveesrsagtoe btoas2ic80in,0te0r0npetr,eemsisseenstiaanldse1r6v,i0c0e0s,kamndofchroeaadpse.rTphriicsignrgotuontdh-ebrpeoaokriensgt icnoimtiamtiuvneitisiesse. tTthoistrarannsgfoeromf rinuritailatciovnens ewctililvirteyduincethteheUcKosotvteorctohme mneuxntifceawteyweiatrhs.RD2a.7tabdilelmioonc(r~atis1a4ti4omn illSioonu)thinAafdrdiciatinonaaglresaevminengtswtoitchuCstoommpeerstitthioisn yAeuatrh;oprriotymFootelldoiwgiintagl tihneclCusoimonp;eatintdioansCsiostmsmociisestiaolnp'sroDbaletamMs ianrkeedtuIcnaqtiuoinry, hReeapltohrctairneD, aencdemunbeemr 2p0lo1y9m, Venotd. a5c3oVmoednagfaogneedGcroonusptrPulcctiAvenlnyuaanldRreepaocrhteodnaFnoargmre2e0m-Fen2t0w2i0th the Commission. This was done on the understanding that action will be taken by the Communications Regulator and Government to auction high demand spectrum. The delays in assigning spectrum and completing the digital migration has curbed the pace at which data prices could fall. From 1 April 2020 , continuing Vodacom's price transformation which had seen 50% reduction
Annual Report on Form 20-F 2020 Developing a new `social' contract (continued) COVID-19: Our rapid, comprehensive and coordinated response to support society... Vodafone is committed to doing its utmost to support society during this period of uncertainty and change. As a provider of critical connectivity and communications services enabling our digital society, we announced a five-point plan to help the communities in which we operate. 2 Provide network capacity and services for critical government functions We are offering hospitals additional network capacity and services such as video conferencing and unlimited, fast connectivity for healthcare workers. This allows remote consultations, removing the need for non-essential travel to hospitals and has allowed updates and best practices to be shared between hospitals and clinical staff. In Italy, Vodafone has provisioned vital connectivity for new hospitals in Cuasso, Varese and the new Fiera Milano hospital in Milan. 1 Maintain network service quality In assisting governments and citizens, it is essential that we are able to maintain a minimum level of resilience and quality of service on our networks. This ensures essential connectivity and communications services, enabling citizens who are staying at home to continue to work, learn, socialise and be entertained. This was our first priority. Vodafone UK has providceudsetommeergrsentocymcaokveeirmagmeefdoiratteemapppoorainrytmneenwtshaonsdpirteadlsucinecdlutrdaivnegl tthime e4s,0. 00TboegduNariagnhtteinegcaolennHeocstipviittayl faotrLpoantdieonnt'ss, VExocdealfoCneenStrpeaainndhsaismpirloavr ifdaecdili3ti0e,s00in0MSIaMncshwesitther6, 0CGarBdiofff danadtaGtolahsogsopwit.alsIannrdescpaorenscee,nwtreesbfroorugthhet efoldrweralyrdpelannsnueridngnetthwatoprkeoupplgerwadheos,aardedaifnfegcftoeudrbTyeCraObiVtsIDpe-r19seicnonnudrsoifnagdhdoitmioensa, lrecsaipdaecnictyestoorosumr naelltwhoosrpkistadlusrcinagn sMtaayrcchonannedcAtepdritlo. Ithneoirurfacmabillieesa.ndOfivbereranlle,tmwoobrkilse, wdaetaupugsargadeeidncthreeansuedmbbyeraarondunsdiz1e5o%f iancterorcsosnEnuercotpioen, ppeoaiknitnsgwaitth3o0t%heirnoSppearaintoarnsdanItdalbyy. IthneAefnridcao,fwAhperriel hthaderienicsreliamseitdedoufrixceadpabcroitaydbbyan6d0,%m.obiVleoddaatfaonuesaRgoeminacnrieaahseads ibnystaarloleudndne2w0%m,orbeialcehsiintegs4f0o%r teamt iptsorpaeraykminiliStaoruythhoAsfpriitcaal.s inInBuItcahlya,reVstodanafdoCneonhsatsandtoan.ateIdn mSoourtehthAafnri1ca,2a0n0dsLmeasrotpthhoo,nVesoadnadcotmablheatss ptorohvoisdpeidta2ls0,,0fo0u0nadnadtio1n,0s0a0nddenvoicne-psrroefsipteocrtgivaneliysattoioMnsintoisternieasbloefpHaetiaelnthtsdteopraermtmaeinntisnftoorufcihelwd iwthorrekleartsiveensg. agIendtihneteUsKtin, gVaonddafroenlaetehdasdaantanocounllceecdtiothna.t1A25s,c0u0s0toNmHeSrswwoorrkkerfsrowmhohoamreeetxoisatninugncpurestcoemdeenrstewd idllebgereneefuistifnrgomvid3e0odcaoyn'sfefrreenecuinnglimoviteerdfimxeodbiblerodaadtba.andV, oudpalifnoknedaGtaer(mfroanmytahnedcCusotroemvaesr thoavoeurrenpeutwrpoorske)dinacnrdeaosfefedrbedy faosrmfruecehthaesi1r 0E0m%erignesnocmyEeymeatrekcehtns.oDloogwy nwlohaicdhtrwafafsicprheavsioinucsrleyausseeddbtyo4p4r%oviidneadgegtraeigleadtev. irtOuaulrheenagltihneaesrssescsomnteinntusevtioapslmayaratpnheosnseentiraelmroolveinwghtehneenqeueidpmfoernptaattiepnrtesmtioselesanveeetdhseahtoteunsteioann.dInloGweerrminagnyth, eourirsk5,o0f00incfeucsttioomnseraesnagrienseuelrts. 5m4anVaogdeadfotonedeGcrroeuapsePrlecpair times by around 40%, aided by the ability of
Overview Strategic Report Governance Financials Other information 4 Facilitate working from home and help small and micro businesses within our supply chain The economic repercussions of this pandemic could be significant and long lasting. To mitigate these effects, we need to help those that can to work from home. For businesses of all sizes, but particularly SMEs, we are providing remote working solutions, advice and best practice information on how to use those services in the most 5 Improve governments' insights in affected areas Data insights are essential to understand the effectiveness of lockdowns and the spread of the virus. Wherever technically and lawfully possible, we are assisting governments in developing insights based on large anonymised data sets. This work falls into three broad categories: mobility `insights', data and AI-driven modelling and contact tracing apps: In Kenya, Safaricom Foundation's Safari Smart mobile service is helping to disseminate information on infectious diseases, including COVID-19, providing more than 275,000 users with information on the signs and symptoms of the virus. Vodafone's Foundations in the Czech Republic and Hungary are working with their respective health ministries to provide official COVID-19 information in real-time through additional features on their oLfiffeer-iSngavailnlggaopvper.nTmheenatpspthheaasbaillrietyadtoy dreisascehmedin1a.t3e mcriiltliicoanl iCnzfoercmh autsioernsvainadtemxot raeletrhtasnan5d00p,r0o0v0iduisnegrsfrieneHauccnegsasryto. heMalothbialintyd `eidnusicgahtitos'n: switeesa.rae spr2o.v5idmiinlgliognoveemrnpmloeynetessatnodwpourbklifcroamdminDiasttraa&tioAnsI-wdritihveanccmesosdetollitnhge:mWoebihliatvyedlaesvhebroaagreddso(ulirveexipneSripeanicne, Iotfaltyra, cGkrienegctehaensdprPeoardtuogfailn).feTchtiiosumsodbisieliatysedsa, tlaikies mpaarltaicriualainrlyAufrsiecfau,lutsoinsgeebiifgqduaataraanntidnearatinfdiclioacl kindtoewllingemnecaesutercehsnhiqavueesb.eWeneedfefevcetliovpeeadnadnaerepibdeeimngioolobgseisrtvmedo.dIenl,Itianlyc,owllaebuosreadtioonurwVitohdaacfaodneemAicnsalfyrotimcstphleatUfonrimvetrosiptyroovfidSeouLtohmambaprtdoyn'asnrdegIimonpaelrigaol vCeorlnlmegeen.thwoimthe,hmeaatnmyafpors tshheowfirinstgtihmoew. poWpuelahtaiovne amnonvoeumnceendtsfcahstaenrgseudppbleifeorrpeaaynmdeanfttetrercmosnttaoinmmicernot.aenfdfescmtivaell wenatye.rpFraicsielsitawtihnogmEa-yleharanviengliqfouridsittuydpernotsblWemitsh. scWhoeolhsaavlesoprnoovwidbedeinspgeschiault,rewmeoatreewooffrekriinngg sforeluetaiocncessfsortobguosivneersnsmeseannt dedSuMcaEtiso,nianlpraerstoicuurclaers:,anVdoadnayfoonteheHr uendguacraytiaornealofrfeesroinurgcebsustihnaetsasreparcekcaogmems teondmeidcrboyatnhde SnMatiEonbaulseindeuscsatciuosntaolmaeurtshowriittiheosuatnadnyaclaodyeamltyiccionnsttritauctti.onsV. odVafoodnaefomnaerekmetpslionyceluesdianlgonSep,afionr, eIxtaalmy,pSleo,uathreAhforisctianagn4d0K,0e0n0yvairatrueaol fvfiedreinogmueneltiimngitsedanddatgaeannedrastipnegcioavl eorffseixrsmtoilSliMonEcsaflol rmainluimteisteedvpereyriosidn.gleIndathyethUaKnk, swteo haarvaepizdereox-praantesdiotnheofcocsatpfaocritmyotobialell uosfetrhsetodivgiistaitltthoeolnshws.eukusdeo.maWineaanrdeesquupipvoarlteinntgpVagoedsafionnSecBotulasinnde,sWs caulestsoamnedrsNtoordthigeritnalIirseelatnhdeifroorwthnecdoumraptainonieosfrathpeidclyri.sWis.ehCavoenteanctabtrlaecdinags mapapnsy: W3 Iemaprreoavsesidsitsisnegmgionvaetironnmoefnitnsfaosrmthaetyiolnootok ttoheexpuitbqliucaRraenctoingen/isloincgkdthoewinmmpoeartsaunrcees,otfhtriomueglhytahneddaecvceuloraptme einnftoorfmcaotinotnacttotrtahceinpgubslmica,rwtpehoarnee apps. We are a member of the pan-European research consortia the Pan-European Privacy-Preserving Proximity Tracing (`PEPP-PT') that has created an open-source technology standard and Software Developer Kit to develop a contact-tracing app that works in a privacy-protected manner. In South Africa, our ConnectU Platform provides free services on health, jobs, education, safety and security, and Government services to the public. In Germany, we have zero-rated digital education web pages and the official COVID-19 virus website of Robert Koch Institute and hospitals. Additional actitorannss...acetinosnurainndgbvaitlaalncceonlinmecittsi,viatnydtoflekxeiebplefacmusiltioems ecronrengeicstterdat,iotoneannadbolenb-buosainrdesinsegs. 5to5oVpoedraatfeo,nsetuGdreonutsptPolcleAarnnn, uhaelaRlthecpaorret otonbFeodrmeli2v0e-rFed2a0n2d0Governments to provide critical services. In response to COVID-19 Vodafone has given direct contributions and services in-kind totalling approximately 100 million, reaching 78 million customers. The Vodafone Foundation has also donated 9 million in cash grants, gifts in-kind and from employee donations via the community fund. DuringtheCOVID-19crisis,M-Pesaisastrong alternativetocash,offeringano-contact paymentsolution.Workingwithregulators, M-Pesahasimplementedanumberofmeasures across our African markets including enabling freepersontopersontransactions,increasing
Annual Report on Form 20-F 2020 Our people and culture Engaging and inspiring our employees with `The Spirit of Vodafone' People and culture are central to our purpose to connect for a better future and to our commitment to improve one billion lives and halve Vodafone's environmental impact by 2025. Purpose and Spirit To fulfil our purpose and deliver our strategy, we have identified the need for a shift in our culture, defined as the `The Spirit of Vodafone'. The Spirit engages and inspires employees to drive behavioural change at all levels in the organisation and is underpinned by the ambition to establish ourselves as a trusted partner to connect for a better future. To get there we must be restless and passionate about improving the lives of our customers, colleagues and communities. We are always open to new things and curious to create solutions that our customers will love. It starts with us. No matter where we work in Vodafone, we act as one. Together, we create a place where everyone can truly be themselves and belong. We have identified the four Spirit behaviours which will help us to do this: Earn customer loyalty Create the future Experiment, learn fast Get it done, together In December 2019 we launched the Spirit of Vodafone through a global broadcast and articulated the connection between our purpose, strategy and Spirit. Globally 37,850 people joined the event either virtually or in person. This launch, known as the Big Conversation, was followed by local market sessions on Spirit and team conversations on beliefs and behaviours. The aim was to deepen understanding and encourage individuals to commit to action. We then carried out an impact analysis, which showed how instrumental the Big Caolln.avnedrsoatuior nbuhsaisnebsese.nwihnaitgonuitrincgustthoims bereshwavainotuaranldcnheaendg,ee.vSeirnycedathye. nW, aecgtievteitsdteopnseh, atovgeebtheeenr Wtakeeenxtpoereimmbeendt, oleuarrSnpfiarsitt aWcreocsrseoauter tchoerefubtuusrienWesse aenadrnpceuosptloemperrocloeyssaeltsy, cSounpcpeorrntiendgboyuor uorrgleaandisinatgioGni,gtaableitntnaetnwdosrkkisllas,nrdecscruailtemdepnltatpfroorcmesssWesitahndourrewpeaordplaenadnrdeccuolgtnuriteioton.sTuchceeSepdirOitpotifmVisoidnagfothneepIot rsttfaorltisoaInmdpernodvsinWg eastsheitnkutbiliigs,attiaokninAgcWceelearraetinalgwdaiygsitWal etragnivsefoarnmdawtioitnhDtheeepceunstionmg ecru.srtioskmsetroebnrgeaagkenmeewnlteVarondinagfo.nWe eBtursyitnaeksesoAwfrniecrashEiuprWopee aWspeirceotnonebcetafgorroaubndet.teWrefuatsukrtehPinlagns,etmIenacsluurseiotno fmorakaelltDheigmitaolstsobcraientdy t5h6eyVloodvaef,o"nwehGatriofu"ptoPlbcuildour success,of our many talents. by earning theiramazing products keeping the best We trust each trust and providing and services forand learning fromother to get things brilliant experiences.our customers.the rest. This is howdone. It's up to each We work hard toWe are courageous we move rapidly of us to make simplify things forin creating a betterto grow ourselvesit happen. them and deliver future for
Overview Strategic Report Governance Financials Other information Organisation The execution of our strategy requires an effective operating model and in the last year we have made substantive progress in reshaping our organisation. One important strategic change was the decision to focus on two differentiated geographical regions (Europe and Africa), dissolving the Africa, Middle East and Asia Pacific (`AMAP') region. As of 1 April 2020 Vodacom Group now reports directly to the Vodafone Group Chief Executive, whilst Vodafone Ghana moves under the Vodacom CEO. We also completed the acquisition and organisational integration of Liberty Global's cable assets in Germany and our Central and Eastern Europe (`CEE') markets, enabling us to earn customer loyalty by becoming Europe's leading converged operator and further strengthening our capabilities in these markets. Wehavealsocontinuedourplansforimplementing our "Tech 2025" vision, which outlines our five-year strategy for our Technology function, in which we have driven key changes such as implementing both IT and network platforms. Finally we set up our European tower business "TowerCo" to centrally manage our tower assets, in order to generate operational efficiencies and increase tenancy ratios across our portfolio. We are also considering potential toepatmionefsfteoctmivoenneetsisseacthtievsietietosw. Ienrtsegwrhatileedpsreensieorrvlienagdneresthwioprhkadsifpflearyeendtiaatvioisnibalnedrololnega-ntedrmthesrterahteagsibcefelnexainbielimtyp.hAasniys oorngmanaiksaintigoneaml pclhoaynegees wfreomcoUndPuCcteinstiitniecsofmeeplli"aantcheowmieth" lionctahleleVgoisdlaaftoionne aenndviirnoncmonesnutl,tawtiiothnawsiptheceimficplfooyceues roenpraecsceenlteartaivteeds,cwo-olorkcsatcioonunocfiltseaamnds florocmal buontihonesn.tWitieesc, oonfftiicneuetotuorisnovfestht einpsretrmenisgetsh,eCniEnOg otouurrosp, ebria-wtinegekmlyod"eopl teon"dehloivuerrwoiuthr sDtriaretecgtoyr,sa,nedtct.oEcmrepaltoeyaene osepnetni,mdeinvterinsebaonthd ionrcglaunsiisvaetioennvsihroansmbeeennt fmoreaosuurrpedeotphlreo.uWghelrceogmulianrgPouulsrenSewurvceoyllse,aagnudesapwpirtohptrhiaetSepaicrtiitoonfsVhoavdeafboeneenCtauklteunrailnirnetespgroantsioe.nTtohebrsiunbgsetoqgueetnhterreesmulptslohyaeveesdferommonbsotrthatVedodthaaftotnheesaendmtehaesuacreqsuwireedreewnteitlilersehceaisvbeedebnyaenmopnlgooyienegs.aTndhecolanusniscthenotfa`rTehaeoSf pfoirciut sofanVdoedfaffoornt.eI'ninGDeremceamnyb,eprr2io0r1t9ohthasepcroomvpidleetdiofnurothfetrhesuapcpqouritsittoiotnh,eacucultluturarlalindtieaggrnaotisotincsbowthasincoGnedrumctaendybaynda CthEirEd mpaarrtkyeptsro. Evimdeprloaynedeas fcroommpLreihbeenrtsyivaend"DUaPyC1eWnteitliceosmpelaEyxkpeeyrireonlcees"infoermobuerdndeiwngctohleleSapgiureitsowfaVsocdreafaotendebinastehde ocnomthbeininesdigohrgtsa.nTishaistioinncalunddecdotnotwinnuehatollsp4r,oavlild-ehavnidsisbmleeaentidngens,gaangdedalpeaerdseornshaliips.eNd omtee:ss4aAgenfororgmanoiuzratGioenr-mwaindye CbuEsOinetossemveereytinnegwthcaotlgleiavgeusea.nInopopuorrCtuEnEitymfaorrkeemtsp, tlhoeyekeesytothaesmkeqfuoerstciuolntusrtaol sinenteigorralteioadnehrsa.sObueernpe"oBpeltete: rkteoygientfhoerrm";atthioeninBvyolcvoenmtreanctt oBfyemgepnldoeyre1eBsyatloacllalteiovnel9s2o,8f 6th6e53ac,7q1u1ir1e4d%en5t%iti1e4s%in5in%te2g2r%atiEomn apclotiyveiteisesMhaalseb(e6e1n%k)eGyetromeamnybIetdadlyinOgththeirsEcournocpeepVt.oEdmacpolomyeSeosuothf UAPfrCicaenStihtaiersedhasevrevbiceeesn1a1c,2o6re93p4a,r9t4o1f1t0e%am4e%v1en2%ts f6ro%m8%leaCdoenrsthraipctoofrfs-sFietemsa, lceo(m3p9a%n)yUalKl-ShpaanidnsOanthdefrunctional
MarketsVodacomGroup(others) Others The headcount figures are an average of our monthly headcount excluding Qatar and joint ventures in India, the Netherlands, Australia and Safaricom. The increase in headcount is primarily accounted for by the completion of the integration of the Liberty Global assets in Germany and CEE. Notes: 1 Due to the recent integration, Liberty data is excluded from the gender split due to the lack 2 Percentage of senior women in our top 173 leadership positions. of data availability.3 Percentage of women in our 6,372 management and leadership roles. 2020 (with Liberty) 20192018 Average number of employees 92,866 92,00591,980 Employee turnover rate 19% 17% 17% Women on the Board 42% 42% 33% Women in senior leadership positions2 29% 28% 26% Women in management and leadership roles3 31% 31% 30% 57 Vodafone Group Plc Annual Report on Form 20-F 2020
Annual Report on Form 20-F 2020 Our people and culture (continued) Diverse talent and skills Inclusion is a key pillar of our purpose and creating a place where everyone feels they belong is core to our Spirit. At Vodafone we are proud of our commitment and we continue to focus on creating a place where people can be themselves. In light of this commitment, in the period covered by this report, we employed 92,866 full-time equivalent colleagues and 11,269 contractors, across 21 markets. Within this we had employees from 126 different nationalities. Our commitment is embraced at every level, from senior leadership in the Vodafone Group Plc Board, to each employee and embedded in the `Spirit of Vodafone', the "Code of Conduct" and our "Business Principles". Diversity & Inclusion Our Diversity & Inclusion agenda continues to be one of our key priorities focusing mainly on gender balance, LGBT+, disability and ethnicity. Our ambition is for Vodafone to become the world's best employer for women by 2025. As part of this ambition, last year we set a revised target for women to hold 40% of our management and leadership roles by 2030. This year, we met our target of 30% of management and leadership roles being held by women across our local markets and professional functions. As of 31 March 2020, women held 3b1e%opoefnoaubromuat nthaegiermseexnut aalnodrlieeandtaetrisohnipanrodlgese.nWdeer aidreenptritoyu.dTtooshuapvpeoirnt ccroelalseeadguoeusrwsuitphpaordtifsoarbiflaimtyi,liiensaidndaitlilotnhetoiroduivredrisgeitfaolrpmlast,fboyrminwtrohdicuhciwngas1l6auwnecehkesd'lfausltlyyepaaridtopsaurepnptoarltlaecacvees.sAibnilyiteym, wpleoypreoevwidheodsienpcalurtsniveer idsehsiagvnintgraainbinabgyt,oaudsoeprtsexapcehriieldn,coerabnedcotemchensoalopgayretnetatmhrso. uWghe hsuarvreogexacpya,ncdaendtsaukpepuoprttfoo1r 6rewcreueiktesrspaainddlelianveemataannagyetrismtehrdouurginhgwtheebifniarsrts1to8 imncornetahsse. Ounudreermstapnlodyinegesowf tilhleanlseoedbseoafblneeutoropdhiavseersteheciorllreeatugrunesfraonmd pcaarnednitdaaltleesa.vDeibgyitawl o`Frkirisntg' Tthoeseuqpupivoartlethnteodfigait3a0l throanursfworemekataiotnfuollf poauyr bfoursianfeusrsthweer rseixalmiseonththesn. eAendoftohreradaorepatiwngenheawvewfoacyussoefdwoonrkisindgomanedstdicevveiololepnincge,dwighietarel twaleenint tarnoddusckeildlsa, wnehwichpowliecyre, foefrfetorinags Dteingidtaalys`Foifrspta'.idT"osdafeeli"vleeraavtesacnaldesaunpdpopratcfeo,rweemspeltouypeeasnwehwoaagrieleexoppeerriaetnincginmgoadbeulsfeoicnuasendy oonf douigrimtalarmkeartsk.eWtinegaalsnodpsraolevsi,dmedotdrearinnitnegchfonrolHoRgyteaarcmhsitaecntdulrienienmmaanrakgeetsr,s afoncduasuintogmoantitohne a"nRdecaortgifniicsiea,lRinetseplloingden, cReef(`eAr"I'm) oindeclu.sAtotmooerlkoipt eforartieomnpslaonydersshwarheod wsearnvticteosl.aAunscohf sMimarilcahr 2p0o2li0c,iewsehhasavbeee6n0sthriabreesd, p3u93blsicqluyatdoseanncdoumroargeetohtahner3,o7r0g0anpiesoatpiloenws toorkdienvgeilonpanthaegiriloewwnaaypapcrrooascsh1. 1Tmhraorukgehtso,uatntdhewyeesaer,ewgeoocdonmtionmueedntsuumppionritminpgleomureLntGinBgTa+gicleomwmayusnoitfyw, aonrdkionugraccormosms iatlml menatrwkeatss.reWcoeghnaivseedalbsyo tihnetrSodtounceewdaallnTeowptaGlelonbt aml aEnmagpelomyeenrtaanpdptrhoeacGhlofobralthAelsleydPirgoitgarlatmeammesAtowhaerdlp. 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Itingphatlryalcleolo,radnindarteesdualtnsdshtoowsuepdptohrattlionuermpeaonpalgeefreseinl smupapnoargtiendgnthetewirotrekaminsfrtaostpruricotruitries,ecaonllyabaodrdaittiioonnatol osulspdpeoprtlonyeeeddecdri.sbisy, twhee hBauvseinreespsriCoorintitsineduiatyndPlsainmpprloifgieradmomurepeeffoepclteivtehleyyihnardemalolttehewsourkppinogrtctohnedyitnieoends.Tathtehsisurtvimeye)r,acnonevsiesrtyenttwlyorweceeeikvsedinpAospirtiilvaenfdeeMdbaayc.kalfmroomst o1u0r0o,0f0t0heocfroiusirs,pweoeprleesakcilrloesds raeltlamilasrtkafeftstogueindaabnlceethaeromuntodshuepapltohr,t spaefoeptyleamndowstealflfbeecitnegd,ebmyptlhoeypeaensdpeamrtiiccivpiastiebdili(t6y2o%f oreusrploenasdeerrsahteip) oteragmandisuartiinongatlheisfftoimrt,ee. ninabsleeldecbteydomuratrekcehtsn.oAlotgtyheansadmtoe ctirmeaetewceawpaecrietya fnoerwtheemtepalmoyseteoffuoncdursaiosnintgheintoitidaotivtheetihrajot bwsil(l4d9i%recotflyrecsupsotonmdeenrtscainredicceantterdesatbsyceanlea,bHlinRgpooulircaigesenatnsdcdriisgiist.aAl tlrlamineinmgb.perroscoefstshees,GinrcoluupdiEnxgeacutive prioritisation of recruiting efforts,are adapting to the new environment and feel a sense We have not made any organisation change the streamlining of the end of year performance cycleof pride, engagement and connection to Vodafone, or redundancies relating to the COVID-19 crisis,and a simpler process for 2020/21 goal setting.linked to Vodafone's response to the crisis and our during the medical emergency. In the early stagesBased on requests from employees to do morefocus on employees, customers and society. We have to operate as call centre agents from their homes we have also introduced a Global Giving Scheme,employceoenstroibnuotuiornisn.tceornmaml citommemntusnaincdatsiotrnasteagnidc tghoeaalsb.l5e8toVmodaainfotanien GfurloluoppePrlactional continuity in thesupport local charities in our communities during this As we start looking at the post-crisis scenarios, to work from home. Medical and wellbeing support have contributed, with the Group Chief Executiveas they plan for return from lockdown. We are focused to our employees globally.the way by donating 25% of their salaries for April,to retain some of the learnings and practices we have May and June. Vodafone and the Vodafone Foundation developed and implemented during the crisis, as they will match all contribution on a 1:1 basis, doublingcan help us to accelerate the delivery of our purpose employees'
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Overview StrategicbeRtteeproprrteGpaorveedrninantchee Ffuintuarnec.iaKlseyO:EthxetrerinnafolIrnmteartnioanl Btoidtihreemct:ioDniaslruUpntiidoinreccatuiosnedalbCy DgloAbaJlHFaIilBurFe Gto EdeOliuvrerpbriunsciinpeaslsraisnkdsFWCeycbaetregthorreiasetdanodurparinsdkesminitcos,ftohuartdimiffpearcetnstoaureraasntdoepfrfoicviiednet tmheananpeprroEpxrtieartnealleovrelinotfergnoavleartntaanckcereagnudlaotvoeryrsimgehat stuoreefsfeocrtdivaetlaybmreaancahgreegthuelsaetorriyskms.eSastruarteesgiimc FpaincatnocuiarlFTaielcuhrenotolodgeicliavleOr pexerpaetciotendalpTohrtefoilnifol,uaenndcenoewf satackqeuhiroelddearsssOetus,rFfianialunrceiaolfsctarittuics,alstsaenrdviincgesTahnednBetGweoork-paonlidtiIcTalsryisstkeminsththeadt iTsrhuepatiboinlitGyltoobaacl htrieadvee wouarrsanadndinsdeucsutrriytypJlaLyeegrsaloannodulraawnsdacnodnrteinguueladtigornoswNthe:wsutpepleocrotmouorpbeurasitnoersssriasnkdEthegoloptbiamlaelcbounsoimneiscsdmisorudpelti:obnu)swinheiscshacnoduoldurleraedsproisnksse, EasGwloebsaeleekctoonloemarinc fdriosmrupthtieoncudraretantthceryisihsoslod:thHatDwignitaFligtruarnesf2o:rOmuartiporninAciApadlvreisrskes paonlditiincatelradnedpeenxdteernncailesevWenetsc,osnutcinhuaestioncfoornmsiadteiornrissekcsubroittyhIiTndtrivanidsufoalrlmyaatniodnctoalrlgeecttsivienlya itnimoerldyerPtooliftuicllayl purnedsesrusrteasndanodunr erwiskfinlaanndcsiaclappee.rfBoyrmaannaclyerseinsgultthinegcionrrseelravtiicoen ubneatwvaeielnabriilsiktys,IwSetrcaatengiidcetnratinfsyfothromsaetitohnatshtraavteegtyheorpoptreonftiitaalbtiolitcyaGusTee,cimhnpoalcotg, yorfainilcurreeabsuesianneostshevralruisekfraonmd tohuart tehxeissteinagreswupepiglyhtcehdaainpapprpolpirciaattieolnys. Tcahuissienxgesrecirsveicienofor rjmoisntovuernstcuerneasrcioonacnearlnyssiism, ppaarctticouulrarsluyptphleyccohmaibninreegduslcateonrayricooumspeldiainncteheCLMonagrk-TetedrmisrVupiatiboinlitNyoSnt-acteommepnlita(npcaegew7it1h)a. pWpleichaabvlee ceonntesriidnegretdheCmOaVrkIDet-/1p9ric(ea kweayrselreemduecnet mofatrogianlsoDngD-tiesrimntegrlmobeadliarteicoenssLioonssaonfdcoutshteormoeprerrealteivnagnccoentsotrtahientbsigthtaetcmhnaoylhogavyepalakyneorsckth-oronuegfhfeecmt oenrgsinevgetreaclhonfoolougrypr6in3cVipoadlarfiosknse. GArdoduiptioPnlcalAlyn, nwuealaRddeepdorhteoanlthFopramnd2e0m-Fic2t0o2o0ur watchlist we are
Annual Report on Form 20-F 2020 Principal risk factors and uncertainties (continued) Global economic disruption Risk owner: Margherita Della Valle What is the risk: Any major economic disruption could result in reduced demand for our services and lower spending power for our consumers, affecting our profitability anMdacragshherfiltoawDgeellnaerVaatilolen.WEhcaotniosmthice driisskru:pOtipoenractainngaalscoroismspmacatnfyinmanarckiaeltsmaanrdkejutsr,isindiccltuidoinnsgmcuearrnesnwcieesd,eianltewreitsht raavteasr,iebtoyrroofwcoinmgpcloexstspoanlidticthaleaanvdairleagbuilliatytooryf dlaenbdtsfcianpanesc.inIng.a.llCoyfbtehretshereeantvairnodnminefonrtsm,awtieoncasnecfuacrietychRainsgkeoswinnetar:xJaotihoann, pWoilbiteicrgalhiWntehravteinstithone rainsdk:pAotnenextitaelrcnoaml cpyebtietri-vaettdaicska,divnasnidtaegreth. Trehaitsoarlssoupinpclileurdberseoaucrhpcaorutildcipcaatuisoensienrvspiceectirnutmerrauupctitoionnos.rTtheechlonsosloogfycofanifliudreenRtiaislkdoawtan. eCry: bJoerhathnreWatisbceroguhldWlehaadt tiso tmheajroirskc:uMstoamjoerri,nfcinidaennctisalc,aruespeudtabtyionnaatluarnadl dreisgausltaetros,rydeimlibpearcattseaactrtoacskssalolroafnoeuxrtlroecmael mteacrhkneotslo. gGyeofa-iploulriet,icaallthroisukgihnrsaurep,pclyouclhdarinesRulitskinotwhenecro:mJopalektiemloRsesitoefrkWeyhastiteisstihneeriitshke:rWouerodpaetaracteenatnredsdoervoeulorpmsoobpihleis/tfiicxaetdedneintwfroarsktrsuccatuurseinign athme acjoourndtrisieruspintiownhtiochouwresearrveipcere.s6e4ntV. OoduarfnoentewGorrkouapndPlscystems are dependent on a wide range of suppliers internationally. If there was a disruption to the supply chain, we might be unable to execute our plans and we, the industry, would face potential delays to network improvements and increased costs. Adverse political and regulatory measures Risk owners: Joakim Reiter and
Overview Strategic Report Governance Financials Other information Risk category: FintahnactiaaflfSecctentraardioe:aAndsesvueprpelycocnhtariancst.ioEnmienrgeicnognothmriecatasc:tWivietyolpeeardastetoinloawgelorbcaalshenfvloirwongmeneenrtawtihonerfeoprothlieticGarloluapndasncdapdeiscrhupantigoensicnogullodbhaalvfienaannceifaflemctaornkeotsurimoppearcattsioonusr.aRbiisliktycatotergeofriyn:anSctreatdeegbitcoSbcleignaatriioon:sEaxsptohseuyrefatlol addudei.tEiomnaelrgliianbgiltihtireesatbsy: Breegcualuasteortyhiasuitshaonriteixetseornrailfltyaxdrliavwens rwisekr,etthoeatdhvreearst eelnyvcirhoannmgeenint itshceomntairnkueatlslyincwhahnigcihnwg.eEoxpteerrantael.fEamctoerrgsisnugchtharesatthse: TChOeVreIDis-a19rispkanthdaetmriecgaurleatciounrrwenitlllybcerceoamtiengmaorseevdeirveercsoen(tarancdtitohnerienfoerceomnoomreicdaifcftiicvuitltytaocmroasnsaaglle)oausr dmiaffrekreetnst. Tcohuenftirnieasn,caianldmaavrakreitestyaroefcruergruelnattloyrsexwpietrhiiennccionugnthriigehs, lienvtreolsduocfevonleawtilrietygualnadtiothnes afvoarielambeilrigtyinagntdecchonsot loofgfyinsauncchinags mAIa,yIocThaanngde nseigtnnifeiuctarnaltiltyy..RRisiskkccaatteeggoorryy::TTeecchhnnoolologgicicaallSScceennaarrioio::STcheenalorisossocfocurlidticinacl lausdseetasttiancokusronneitnwdoirvkidsuoarlImTairnkferatss,trpuacrttusroefcoauursinnegtwa osrekrvoirceladrgiser-uspctaiolensinitmrupsaiocntisngspoaunrnainbgilimtyutlotipplreomviadrekseetsrv. iEcaecthoyoeuarrcwusetommoedresl.aEdmifefregrienngt sthevreeartes:bWuteplcaouuslidblbeesicmenpaarcitoe.dEbmyearngiinngcrteharseeatisn: eCxytbreemr reiswkeiasthcoernsetvaenntltys ceavuoslevdinbgyinclliimneatwe icthhatnegchenwohloicghicmalaaydvinacnrceeasseanthdegleikoe-pliohloitoidcaolfdaevteeclohpnmoleongtys.fWaileuraen.tNiceipwataestshertseaitnshweriiltlecdofnrtoinmueacfqroumireedxbisutsiningessoseusrcmesa,ybnuottablseoaelvigonlvede iton oarueratsasrguecthraessiIloieTn,cseulpepvleyl cwhhaiicnh, qmuaayntiunmcrecaosme pthuetinligkealnihdotohde oufsea otefcAhInoalnodgymafacihluinree.l6ea5rVniondga.fRoinsekGcaroteugpoPrylc: SAtrnanteugailcRSecpeonrat roion:FTohremre2i0s-Fdis2r0u2p0tion to our supply chain due to unilateral decisions affecting vendor-choices or decisions
Annual Report on Form 20-F 2020 Principal risk factors and uncertainties (continued) Risk owners: Dr Hannes Ametsreiter and Vivek Badrinath Strategic transformation What is the risk: We are undertaking a large-scale integration of new assets across multciopmlepmetaitrikoentsf.roIfmwae vdaorineotyt coofmnpewletteecthhinsoilnogaytipmlaetlfyoarmndsewffhiiccihenatimmatnonbeuri,lwd ealwteornualdtivneotcsoememthuenfiucalltiboennseefirtvoicfepslaonrndeifdfesryennetrtgoiueschanpdoicnotus,ldwfhaiccehacdoduiltdiopnoatlecnotisatlslyoradffeelcatyosutor ccuosmtopmleetriorne.laTtihoenssuhcipcse.sWsfuelminutesgt braetiaobnlealtsookreeeqpuipraecsethwaitthanthimespeonretawntdneuvmelboeprmoefnttescahnndolcoogmyppeltaittfoorrsmwsh/sielervmicaeisntaarienimngighraigtehdleovnetlismoef bceufsotoremtehreetnegrmaginematieonnt aonfdthaenteraxncseiltlieonntaclussetrovmiceerseaxgpreereimenecnets. .LWegeaal lasnodhraevgeulaatnourmybceormopfljioainnctevRenistkuroews ninero:pReorasteiomnarayndMmarutisnt eWnshuarteisthtahtethriesske: oVpoedraafteoneeffmecutsivt ecloym. MplayrwkeitthdiasrmuuplttiiotnudReisokf olowcnalera:nAdhinmteerdnEatsisoanmalWlawhastainsdthaeprpislikc:aNbleewinednutsrtarnytsrewguitlhatlieoanns.mTohdeesles icnocululddecrperaitveapcyri,cainngti-pmreosnseuyrel.aAunsdmeroirneg,cocmompepteittiotriosnla, uannctih-burnibliemryitaedndbeucnodnleosmthicerseanccotuioldnsb.eFpariilucereetrooscioomn.pOlyuwr mithartkheetspeolsaiwtisonanadndrergeuvleantiuoenssccoouullddbleeaddatmoargeepdutbaytiofanialilndgamtoapgreo,vfiidneanthceiasleprevnicaeltsietshaatnodu/orrcusustsopmenesrisown aonfto. uDrilgiicteanl ctreatnosfooprmeraattieo. n66RViskodoawfonneersG: ArohumpePdlcEssam and Johan Wibergh What is the risk: Failure in digital or IT transformation projects could result in loss business, a poorer customer experience and reputational damage. Disintermediation Risk owner: Ahmed Essam What is the risk: We face increased
Overview Strategic Report Governance Financials Other information Risk category: Operational Scenario: Delay in the integration of a major acquisition means we cannot realise the benefits as quickly as planned. Emerging threats: As we increase the pace at which we transform our business there is an emerging risk that unless managed carefully different transformation initiatives could negatively impact each other. Risk category: Strategic Scenario: Aggressive pricing, accelerated rMepVuNtaOtiolnoaslsedsamanadged,isirnuvpetsitvieganteiownmcoasrktsetanedntfriannetss. iEnmkeerygEinugrothpreeaantsm: Carhkaentsgirnegsuwltoirnkgplraecaetedr ycnuasmtoimcse,rdcihguitranl atrnadnspfroircminagtiporne,sassusreets iinmtepgarcattiinognsouarndfinaacnhcainalgpeoisnitoiounr .eEmmpelorgyeinegdtehmreoagtrsa:pBheiccasumseigthhtisdiesgarandeexoteurrncaollnytrdorliveennvirriosnkm, tehnettshorewateeanrveiuropndmateinngt iosucroCntoindueaollfyCcohnadnugcint gan. dRivsakricoautesgpoorlyi:ciOespetoramtioitnigaaltSectehnisa.ri6o7: FVaoidluarfeontoe dGerloivueprPblucsiAnnesnsubalenReefpitosrct aounsFesorcmos2t 0es-Fca2la0t2io0n, budget overruns and increased customer churn which could negatively impact our financial performance. Emerging threats: The digital transformation strategy considers emerging threats and factors. Risk category: Strategic Scenario: Emerging technology impacts our market share. Emerging threats: Emerging risks include the development of new connectivity systems that compete with our networks. Risk category: Operational Scenario: Breaches of legal compliance could lead to
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reduce global emissions Severe policy changes required to compensate Global warming is ultimately limited to well below 2°C Business as usual Governments fail to introduce further policies to address climate change beyond those already known and in place Global temperatures increase to above 3°C Business impacts Key financial metrics Service revenue EBITDACash flow Strategic response Legal & regulation Operations Customers Brand Risks Physical:Transition: Acute;Policy & Legal; Technology; Chronic Market; Reputation Opportunities Energy source; Resource efficiency; Products/Services; Markets; Resilience Scenarios Late, disruptive transition Significant transition risks, higher physical risks Business as usual Limited transition risks, significant physical risks Early, smooth transition Higher transition risks, higher physical risks 69 Vodafone Group Plc Annual Report on Form 20-F 2020
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stakeholders in all our geographies, so that we can react and adapt to any changes in circumstances and minimise the risk to Vodafone and our customers, employees and other stakeholders. There are a number of ongoing business reviews at both Group and local market level to evaluate different courses of action in response to the crisis. Looking ahead, we will review the lessons learned during this crisis as part of future updates to our risk management framework, specifically when it comes to our approach to prepare for similar types of events. 70 Vodafone Group Plc
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may influence the Group's long-term prospects Articulation of the main levers in the Group's strategy and business model ensuring the sustainability of value creation 71 Vodafone Group Plc Annual Report on Form 20-F 2020
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that we continue to make good progress on our strategic priorities whilst we respond to the changing needs of our stakeholders, delivering value to our customers and protecting the health, safety and wellbeing of our people. 72 Vodafone Group Plc
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fulfilling its accountabilities with regard to risk management and Reputation and Committee Committee on reputational risks and policy matters. 74 Vodafone Group Plc
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AstraZeneca PLC, non-executive director Louis Dreyfus Company Holdings BV, non-executive director IMD Business School in Lausanne, vice chairman of supervisory board External appointments: HSBC UK, non-executive chairman Amadeus IT Group SA, non-executive director, chair of audit committee and member of nomination committee and remuneration committee External appointments: Hasbro Inc., non-executive director and member of compensation committee and nominating, governance & social responsibility committee External appointments: Tillman Global Holding LLC, chairman JCDecaux Small Cells Limited, director 76 Vodafone Group Plc
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DtoaevxidecNuitsivheNroolne-sE.xSekciulltsivaendDeirxepcetorireDncaeviadreTfhuordtheeyrNbroonad-EenxeedcuatnivdeeDxtiernecdteodr bAyTtheeniurreex: t4eryneaalraspTpeoniunrtem:e<n1tsy. eInaraSgkgirlelsgaatned, eeaxcpherDieirneccet:oDr caovnidtrhibaustewsidsue-brsatnagnitniagl oskpielrlsa,tikonnoawl alenddgsetraantedgeicxpeexrpieenriceentcoetahseaBsoeanrido.rElexatderenraalnadphpaosinatmsteronntsgliusntedderasrteanodnilnygthoofsfeinraenqcuiiarleadntdocbaepditiaslcmloaserkdeptsutrhsuroaungt htohLisisptrinevgiRouusled9ir.e6catonrdshoitphserwrheilcehvainnct lkuedyeecxhtieerfneaxl eacpuptoivinetmofefnictes.r Saneed pcahgieef8f8infaonrcaianl eoxffpilcaenraotifoSntaonfdtharedNLoimfeipnlactiaonnds acnhdieGf foinvearnncaianlcoefCfiocemrmofitSteceo'tstiasshsePsoswmeernpt locf. tShkeilelxstaenrndaelxcpoemrimenitcme:eDntasvoidf Dhairseecxtotersn.sEivxeteternleacloamppmouinntimcaetniotsn:sanRdamtescahynoHloeaglytheCxpaererieLntcde,,nhoanv-ienxgecbueteivnechdiierefcetxoer cuTtivyerooPffaiycmereonftsTLeltsdt.r,anCono-repxoeractuitoinvebedtiwreecetonr200X9eraondLi2m01it5eda,ncdh,apirrmioarntothCaotm, hmooldniwngeaslethveSracliesnetnifiiocr &exIencduutisvteriaploRsietisoenasrcaht IOBrMga,niinscatluiodni,ncghcahiriemfaenxBecouatridveanodffiCceormomf iItBteMe mAeuesttirnagliaatatennddNanecwe NZeoamlainnda.tiHoneswAausdrietcaongdnRisiesdkafonrdhGisosveerrvniacnecsetoRbeumsuinneesrsataionnd BetohaicrdalCboumsimneitstseeleCadomersmhiitpteweiCthomanmOitrtdeeerGoefrAarudstKraleliiastienrlJeaen7u/a7ry24/0417.NEicxkteRrneaalda7p/p7ointmMenatrsg: heHritSaBDCeHllaolVdainllges7p/l7c,indeSpaennjidveAnthduijrae1c7to/7r,4c/h4air oSfirthCeriasupdinit Dcoamvims i7t/t7ee5a/5nd4/m4emMbiecrhoelf Demaré2 7/7 4/45/5 Dame Clara Furse dbe36/7 1/1 3/3 Valerie Gooding cbe7/7 4/45/5 Renee James4 5/7 4/45/5 Samuel Jonah kbe52/2 2/2 Amparo Moraleda 7/7 5/5 David Nish 7/7 5/5 David Thodey6 5/5 Notes: The maximum number of scheduled meetings held during the year that each Director could attend is shown next to the number attended. Additional meetings were held as required. 1 Sanjiv Ahuja was appointed to the Audit and Risk Committee on 23 July 2019. 2 Michel Demaré was appointed to the Audit and Risk Committee on 23 July 2019. 3 Dame Clara Furse was unable to attend one Board meeting due to a prior business commitment. On 23 July 2019, she stepped down from the Audit and Risk Committee and joined the Remuneration Committee. 4 Renee James was unable to attend two Board meetings due to prior business commitments. 5 Sam Jonah stepped down from the Board on 23 July 2019. 6 David Thodey was appointed to the Board on 1 September 2019. 77 Vodafone Group Plc Annual Report on Form 20-F 2020
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OCvheierfviEexwecSutrtiavteegOicffRiceeprortVGoodvaefronnaenScepaFiinnaRnecsipaolsnOsibthileirtiiensfoArnmtoantiioonisRroessepmonarsyibMleafrotrindeGfrinoiunpgGVeondearfaol nCeo'sunsstrealtaengyd aCnodmoppaenryatiSnegcrmetoadryelRinesSppoanisni,bdileitliievserRinogsetmhearsytraistergeiscpvoinssiiobnle, efxoercmutainnaggcinogmVmoedrcaifaolnpel'asnlsegaanldreisnksuarnidngfodreplirvoevriydianggailnesgtaKl, PcIosm. Lpleiaannncee aWnodocdomChpiaenfyHsuemcraentaRriaetsosuerrvceicseOs ftoficthereRGersopuopn.sSibhieliatidevsiLseesanthneeBisoraersdpoonnsciobrlpeofroartelegaodvinegrnVanocdeafmonatet'esrspeaonpdlme aanndagoersgaVnoisdaatfioonnes'tsraretelagtyiownshhiciph winictlhudthees Cdeovmeploapniyn'gs rsetrgoinstgratra.leAnht maneddlEeassdaemrshCiphi,eefffCeocmtivmeeorrcgiaalnOisapteiroantiso, nsstraatnedgiSctrcaatpeagbyilOitfifeiscearndReasnpeonngsaibgiilnitgiecsuAltuhrmeeadndiswreosrpkoennsvibirleonfomreVnto,dthafeorenbe'ysbguloilbdainlgcosmtromnegrcciaaplaobpielirtaietisoinnsVanoddasftoranteegtoy,daesliwveerllgaros wintnho. vJaothioann WanidbetrragnhsfGorromuaptiTonecphrnoojelocgtsy, iOnfcfliucdeirnRgetshpeoCnsoimbipliatnieys'sJodhiganitailstrreasnpsofonrsmibaletiofonrpleroagdrianmg mVeo.dDafroHnea'nsngelsoAbaml teetcsrheniotelor gCyhioerfgEanxiescautitoivne. HOifsfircoelreisVinotdeagfroanletoGdeervmealonypiRngesVpoondasifboinliet'iesscHonavnenregseinscreesstproantesgibyleonfoar gdleofbinailnsgcaVleo.dSaeforpniel'Ts ismtruatreagyyCihnieGfeErmxeacnuyt,ivpeosOitfifoicneinrgVEoudroapfoenCelGusetremr aRneyspaosnasiGbiilgiatibeist Scoermppilaonvye,rdseeleisveVroindgaftohnees'tsraotpeegriactvioisnisoinn, tehxeecNuetitnhgerclaonmdms,eProciratul gpalal,nIsrealnadndd,eGlivreeerycea,gRaionmstanKiPa,IsC. zHeechisRaelspoubreliscp,oHnusinbglaerfyo,rAshlbaapniniag, aVnoddTafuornkee'ys.lTeahdiserisnhcilpudroelsedienfidniignigtaslttreacthegnyolaongdietsh.eAolpdeoraBtiisnigomChodieefl,EdxeelcivuetirvinegOtfhfeicsetrrateVgiocdvafisoinoen,IteaxlyecRuetisnpgoncosimbimlietirecsiaAl lpdloaniss raensdpoennssuibrlinegfodredlievfeinryinaggVaiondsat fKoPneIs'.sVstirnaotedgKyuamndaroCpehriaetfinEgxmecoudtievleinOIftfaiclye,rdeVlivoedrainfognteheBustsrianteesgsicRveisspioonn,siebxielictiuetsinVgicnoomd miserrecsipaol npslaibnlseafondr Venosduarfionnged'seleivneterryparigsaeinbsutsKinPeIsss. gAlonbtóanlliyo, Cdeofiimnibnrga Vodafone's strategy and operating model, delivering the strategic vision, executing commercial plans and ensuring delivery against KPIs. Joakim Reiter Group External Affairs Director Responsibilities Joakim is responsible for leading Vodafone's engagement with external stakeholders, defining Vodafone's strategy, execution and delivery on policy and regulation, campaigns, communications, security, Vodafone Foundation, and issues important to the communities in which we operate, thereby driving Vodafone strategic positioning and `social' contract. Nick Jeffery Chief Executive Officer Vodafone UK Responsibilities Nick is responsible for Vodafone's operations in the UK, defining Vodafone's strategy and operating model, delivering the strategic vision, executing commercial plans and ensuring delivery against KPIs. Shameel Joosub Chief Executive Officer Vodacom Group Responsibilities Shameel joined the Executive Committee on 1 April 2020. He is responsible for the Vodacom Group, defining Vodacom's strategy and operating model, delivering the strategic vision, executing commercial plans and ensuring delivery against KPIs. 79 Vodafone Group Plc Annual Report on Form 20-F 2020
AnnuaalgRileepaonrdt ocnulFtuorremT2h0e-BFo2a0r2d0reBcoeaivrdedacdteivdiitciaetseWd uhpadt athteesBonoatrhdedsitdrattheigsyyfeoarr, Banodarpdaaccetiovfi,tciehsaanrgeeswtriutchtiunrtehdetobudseinveeslospasthweeGdrioguitpa'lsissetroautergpyroancedstsoeseannadblpertohme oBtoeaardcutoltusrueptphoarttiesxpeacsustiiovneamteaanbaoguetmtehnetdoingitthalesdoecliievteyr.y2o3fRitewaditmhionrae tarbaonuspt aDreignittaglo`vFeirrnsat'nocne fpraagmee2w3oSrku.stTahineatbaiblilteybTeoloewnssuertse olountgth-teerkmeysuarsetaaisnoabflfeocsuucscfeosrsthFeocBuosaordn'tswaoctsicvaitlieeds palnadtftoorpmicssdEisucruospseedanddurAinfgricthaeAysepara.rSt otrfaoteugryreTvoisperdovstirdaeteegnytrteoprfeoncueusroianl cleoaredemrsahrikpetPsu, rtphoesBeoTaordersetagbulliasrhlyCroemcepiavneydpinufropromseat5ioGnafurocmtiotnhseirnesGpeornmsaibnlye,EHxuencguatirvyeaCndomCmzeicttheeRmepeumbbliecrsTthoeuBnodaerrdst,ainndbianlagnrceiantgerthdeepctahptihtael rdieskmsaanndds oopf pthoertubunistiineesstso, csoetnsstirdaetreegdietshefoarptphreopgrrioawtethreosfoucorcree tmoabrekemtsadanedavfoariltahbelemfaonratgheemseecnotraenadssdeivtseastnmdesnettoafccneopnt-acbolreethmraerskheotlsd.s2f5oRr aeuadctimonorceoasbt.o2u5t4ouRredaidvemsotmreeanbtsoount 5pGagsep2ec5tr`uSmocaiaulc'tcioonnstroanctpTahgeesB2o5a4rdtodi2s5c7usAselidgtnhmeednetvTelhoepBmoeanrtdoafsasenseswed`tshoeciPaul'rpcoosnetrpaciltl.aTrshaisndinhitoiawtivPeurbpyosVeo, dSatrfoatneeg,yinancdol`lTabhoeraStpioirnitwofithVoodthaefronteel'ecaoremamliugnniecdattioonfosrcmomanpainntieegs,raretepdrepsleanntsfothr ethpeaCrtonemrpshainpyw. Reewadanmt otoredeabveoluotpowuritphugrpoovseernpmilelanrtss,opnopliacgyems 1a6ketros1a9ndancdivtihlesoScpiiertiyt oton cpraegaete5a6d1i6giEtaulrsoopceiaentytothwaetrws oTrhkesdfoecricsiitoinzetnoscarnedatbeuEsuinreospsee'ssalalirkgee.s5t 2toRweeardbmusoinreesasbfooultloowuerd`saocpiearli'ocdoonftriancttenosnivpeagreevsi5e2wtoan5d5cNonestwidoerrkatsiohanrbinygthTeheBBoaoradr,dsurepvpioewrtiendgaounur mstbraetregoyf ntoetiwmoprrkovsheaarisnsgetaurtrialinsgaetimonenatnsdacarlososseoxuprlomreajmoroEneutriosapteioann mopaprkorettusn. i2t4ieRs feoardomurorteowaberouatssoeutrs.n2e4twRoerakdsmhaorirnegaboonuptaoguer2E4uMropeeetanthteoBwoearsrdonDpaaygIen2N4oDveigmitbaelr`,First': representatives from the Board had the opportunity to meet investors to discuss sustainability challenges and goals, improving our understanding of the expectations of investors. 82 Read more about our Meet the Board Day on page 82 Internet of Things The Board considered customer needs when reviewing strategies for the development of V by Vodafone products and network operations to support the growing demand for Internet of Things (`IoT'). 8 Read more about our work on IoT on page 8 Culture To promote the desired culture . The Spirit of Vodafone Progress with our newly launched cultural programme, `The Spirit of Vodafone', was reported to, and monitored by, the Board. It was important for the Board to capture the sentiment of the workforce and measure the success of the programme. 56 Read more about `The Spirit of Vodafone' 56 to 61 Speak Up The Board received updates on material issues raised through our Speak Up channel and reviewed the output of investigations, including any remedial action taken. 50 Read more about Speak Up on page 50 80 Vodafone Group Plc
dOivviedrevnidewpoSlitrcayteognicpaRgeep1o7rt4GRoevaedrnmaoncree aFbinoaunt coiualrsriOskthteorleinrafonrcme aatniodnmCaanpaigtaelmTeonteonnsupraegneesc1e2ss7atroy 1re3s1ou6r2ceCsOaVreIDin-1p9laTceheRCisOk VanIDd -c1o9ntgrloolbs aTlopeannsduermeiac fhraasmcerweaotrekdoafnpurnupdreencteadnednteefdfecchtiavlleencognetrfoorlsthiseignlopblaacleeGcorneoenmyb,onanddInthleinBeowaritdhwthaes Ianptperraniasteiodnoafl tCheapciotanlsMidearrakteitonAsssaoncdiaatcitoino,ntshteakaepnprboyvaml aonfatgheemisesnutatnocperooftegcrtetehnebhoenadltshinan2d0s1a9feetnyaobfleoducrappeiotaplleinwvehsitlmstewnet scpoenctiifniucaeltloy ptorofvuinddeocurirtigcraelesneprvroicjeescttsotohuatr scuupsptoomrteorus ragndoaelmtoerrgeednuccye soeurrveicnevsi.ro5n4mReenatdalmimorpeaacbt obuyt5o0u%r rbesyp2o0n2s5e.to46CROeVadIDm-1o9reoanbpoaugteosu5r4graenedn5b5onUdSfbraomndews Aorskpoanrtpoafgiets4o6vSeyrssitgehmt ooff oinutrerbnuaslinceosnst'rolol nDge-ttaeirlms offunthdeinogpereraqtuioirnemofenotusr, itnhteerBnoaalrrdisrkecaenidvecsomanpnluiaanlcueppdraotecsesosnesaicntifvoirtmy eredlathteedBtooaorudr'stwdioscbuosnsdiopnrsoognracmumltuerse; athnedUoSpesrhaetilofnparlomgraatmtemrse. RlisetaeddmonorNe AabSoDuAt oQurasnydsttheme EoMf iTnNterpnraolgcroanmtrmoel olinstpeadgiensb9o4thanLdon9d5o9n4aRndiskDtuoblelirna,ntcoeeannsdurreisckomstaenfafigceimenetnatnTdhdeeBpeonadrdabrelevifeinwaendcimalarneasgoeumrceenst'asreidaevnatiilfaicbaletiotontahnedbausssiensessms.e1n9t3ofRtehaedtompotreenapbroinuct iopuarl UrisSkbsoannddsthpreoirgirmampamcet oonn sptaragteeg1y93anSdtackoemhomldeerrcsiaEl ningiatigaetmiveens.t DanidvipdaerntdicTiphaetioBnoawrdithessttaabkleishhoelddearspProrginrceispsaivlesudpivpildieernsdNpioclkicRye. aItdchaerledfuallmyeceotninsigdwerietdh tohuerakpepyrosuvpalploifertsheininCtearliifmordniivaidtoenddiscanusdsimts artetceorsmomf emnudtautiaolninftoerrethsterfeignaarlddiinvgidthenedi,ntdauksitnryg ienntvoiraocncmouenntt oaunrdcgaepoit-aploaliltlioccaaltdioenveplroipomriteienstst.o8s3uRppeoadrt minovreestamboeuntt Ninicckri'tsicmaleientfinragstwruitchtuoruer, rkeedyucsueplpelvieerrasgoentopawgaerd8s3thOethleorwBerreexnidt Tohf eouBrotaarrdgectornasnigdee,readndthme aliiknetaliihnoroedtuarnnds tpoostehnatrieahloimldperasc.t1o7f4aRneoa-ddemaloBrereaxbiotuotnotuhre Company and its stakeholders, with particular focus on Vodafone UK and Business. 68 Read more about our assessment of Brexit on page 68 Vodafone Foundation The charitable work of the Vodafone Foundation undertaken in 2019, and proposals for 2020, were reported to the Board to inform decisions on funding and the strategic direction of the Foundation's work. 40 Read more about our Vodafone Foundation on pages 40 to 51 Health and safety rTohlee oBfocaurdlturreeceaisvaeddirfefpeorertnstioantohrealTthheanodpisnaifoentys oinfietimatpivloeys,eecosnsPidlearnisngfotrheemwpellolbyeeienegnogfatgheempeenotpalnedwroorlkl-ionugtforTahnedrowliethofusretwhraorudghoCuutlttuhreeGasroaunp.enTahbeleBrooafrdounropteudrpwoisteharnedgrsettrathteegdyeTathhesBofoathrdreleooemkspflooryweeasrdwtiothminoVniotodrainfogntehBe ususicnceessss doufriitnsglatuhencyhe,aarnadnditsrecqounetrsitbeudtidoentatiolewdarrdepsodrrtisvoinngthoeurosntgraotienggyw, uosrikngbeainvgaruientdyeortfakmeentrtiocseliinmcliundatiengthteherirseksuolftsfaotaflpiteireisoadnicdawllo-erkm-prelolayteeed ssuarfveteyysin. c8i1deVnotsd.a6fo0nReeGadromuporPelcabAonunt uhaelalRthepaonrdt osanfeFtoyrmon2p0a-gFe2s06200and 61 . Ensuring our culture is aligned with purpose and strategy The Board played a key role in the launch of the Spirit of Vodafone, which captures the beliefs and behaviours of our people, being mindful of the considerations noted below. Whether a new cultural programme was important for our people to support them in executing our strategy What lessons could be learnt from our past experiences and the experiences of other companies The
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well established at Vodafone, including Speak Up, business leader Q&A sessions, the Vodafone News app and Workplace, our internal digital communications platform. These enable timely and tailored communications to employees on topics most relevant to their role and which they are most interested in, in recognition of the geographical and operational diversity of our workforce. We are aware that our global workforce also includes contractors and others, so we also assess appropriate mechanisms for engaging with those groups. In response to COVID-19 changing the way we work, we quickly introduced a global pulse survey which regularly seeks the views of our employees. It was encouraging to see strong levels of engagement and positive themes highlighted. These themes were communicated back to employees and fed into Board updates on our COVID-19 response. During the year, high potential individuals were invited to Board dinners to give them an opportunity to interact directly with the Directors and discuss industry developments and key challenges and opportunities in the technology and telecommunications sectors. 82 Vodafone Group Plc
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Fanodr ocuornvvearlugeedntcporloledaugcutsesawndoprkroinpgoswitiitohnosucrotuolwdebreadsseeptlso,ytehdisfporretsheentbeednebfoitthoaf oduaruncutisntgomchearsn.gTehaendBoaahrudguenodpeprsotrotoudnitthya. tTahfefepcatendEuropean nature of the new European TowerCo afforded an opportunity to improve working relationships across Europe by sharing best practice and working closely together. The dedicated time and resource of a central management team would allow greater focus on strategic development of the towers assets, and management teams in our local markets would be able to focus on other strategic initiatives. In respect of our suppliers, there was also an opportunity to strengthen relationships by dealing with the new European TowerCo for all service and hardware support for our tower infrastructure across Europe. The Board considered the overall impact of organisational change and believed that an accelerated process of demerging assets and operations would reduce disruption and generate benefits faster. What happened: In July 2019, we announced the creation of Europe's largest tower business, placing all our towers assets across Europe into a European tower company (`European TowerCo'). 83 Vodafone Group Plc Annual Report on Form 20-F 2020
mAonrneuoafl oRuerploorctaolnmFaorrkmets2.0-FM2o0r2e0seInndiourctmioann,adgeevrseltoopbmeepnrteasnendteavtaBluoaatridonmEefefteicntgisvetouesengoafgoeudrisrkeciltllsyawndithexthpeerBieonacred.aEndvaimlupatrioovninpgroocuersspeArftoarimloarnedceBTohaerdBqouaersdtiroencnoaginreisewsatshcaot mitpnieleeddstotogcaothnetirnaunadllydimstiolnfieteodrbaancdki.mTphreoovbejietcstpiveersfoorfmtahnecree.vTiehwiswisearcehtioevperodvtihdreoaugnhastsheessamnneunatlopfeVrfoodrmafaonnceeGervoaulupa'stioBno,afrudlleifnfedcutcivtieonnesosf annedwgBoovaerrdnamnecem,binercsluadnidngonthgeoienfgfeBctoivaerdnedsesvoefloitpsmCeonmt.mTihteteceos.nLcliunstsiotoncskocfothlliasteydeathr'es rreesvpioewnsehsavfreobmeeDnirpeocstiotrivseaannddpcreosnefnirtmededretphoarttsthteo BthoeaBrdoarerdmaanindsietsffCecotmivme.itPtreoecseosns uthnedeinrptaukternecfoeirvoeudriinnttehreneavl aelvuaaltuioanti.oEnvInalaucactioorndafinncdeinwgisthTthheeB2o01ar8dU'sKanCdoirnpdoirvaitdeuGaloDveirrencatnocres'CeondgeagaenmdeonutrwthitrheethyeeaErxceycculteiv, ethCeo2m02m0itBteoea,rsdenevioarlumaatinoangwerass, hcoignhdpucotteedntiinatleermnapllloyyweeitshhtahde iamsspirsotavnecde, wofitLhinmtsotroecokp. pLoinrttustnoictikesisfocrondsisicduersesdiofnuwllyithinedxetpeernndalenbtuasisnietsdsoleesadneorts.hMavoerae rteimlaetiodnevshoitpedwtiothdtihsceuBssoiaorndaorrouannyd Dstriraetecgtoicr. mBaetltoewrsiasnadnsouvcecrevsiseiwonopflhaonnwintgheweavsapluoastiitoivnewlyasreccoenivdeudc.tebde.fSoturundctbureeloTwh.e2C01h9ai2rm02a0n 2an02d1COomurptahnryeeSyeecarertBaroyarwdoervkaelduatotigoenthceyrcwleitEhxLteirnntsatloecvkatlouadteiovnis:Ienatesrtnraulcetuvraelufoatriothne:Iinntteerrnnaalleevvaalluuaattiioonn: pfarcoicleitsastetod ebnyaRblaeyamroigndorDouinskrienvfiaecwiliotafttehdebByoLairndtsatsoackw,fhuortlhe,eritds eCtaoimlsmwiitltleebseapnrdoviniddeidviodfuaCloDnsirielicutmor,sw' choicnhtrihbaustinoonsotthoeBrwoharicdhdhisacsunssoioonthsearnind ndeexctisyioeanr-'ms arekpinogrt..Icnopnanretcictiuolnarw, tihthe rVeovdieawfownea.scodnensiegcntieodntowisteheVifotdhaefofonlel.owFuinrtghetwr ionfaocrtmioantsioidnecnatnifiSetdepfr1omSttehpe220S1te9pe3xtBeronaarldeivnasliugahttisoPnrhoagdrebseseangtaaiknestn2: 01M9 oacretioonppsoInrtuthneiti2e0s1f9orBNoaornd-EefxfeeccutitviveeneDssirreecvtoierws t,oitvwisaits agreed that more opportunities for Non-Executive Directors to visit local market would be developed. After each visit Directors would provide feedback to the Chief Executive and, as appropriate, the Board. Going forward, it was agreed that more senior managers would present at Board meetings to enable direct engagement with the Board. This year's finding In total the Directors visited five local markets in FY20: Valerie Gooding joined Nick Read on his visit to Vodafone Spain. Sanjiv Ahuja, Michel Demaré and Amparo Moraleda together visited Vodafone Italy. The Board visited Vodafone Spain and Vodafone's UK Digital Centre. Twelve executives and 18 senior managers presented to the Board during the year on a diverse range of topics. See page 82 for details on the Non-82 Executive Directors' visits to our local markets during the year Action for 2021 Developing the Board's understanding of the Company's regulators and further attention on customers will be in focus for FY21. 84 Vodafone Group Plc
OTrvaenrvsfioerwmSattrioatneganicdRPerpofoerstsGorovoefrInnannocveaFtiionnanacnidalSstrOatthegeryiantfoIMrmDat,ifornomPrVogordeassfoangeaUinKst d2u0r1i9ngacthtieonBsoiatrwd'assvaigsriet etodVthoadt,awfohneenUdKec'isdDiniggitthael CtheenCtreh.aicrumsatonmaenrdinCshigiehftsEaxnedcuttoivdeetvoegloepthoerf tVhoatdasufoffnieciBenutstinimeses.isSaelelopcaagteed86tofiotermdestatoilsalolofwthetimBeoafrodr'sde8e6pterradinisincgusasniodnd. eavnedloinpfmoermntadtiuvreinmgattheeriyaleaornAdcetvieolnofpomre2n0t2s1TThehe20B2o0arBdowaradntrsevtoiebwetwtearsupnodseirtisvtaenadbiotsutumndaettresrtsanindiBngoaarnddmoeveetrisniggsh.tBBooaarrddicnotmhepoyseiatiroanrePsrohgorwenssoangpaiangset 82001. 9praecsteinotnesdItnotthhee2B0o1a9rdBoanarddceoflfleecatgivueens e8s0s Breovaierdw',s iatcwtiavsitaiegsredeudritnhgatththeeyBeaoraSrdtrwatoeguyldIcnotnhtein2u0e1t9oBuosearodpepfofertcutniviteineessisnrietsvineawtu, raaglelnifdeacyfoclreBtooaardddmreesestiindgenstdifuireidngsktihllesygeaaprs, wtoitehntshuereCtohmatptahneyBSoeacrrde'tsarcyomwpoouslditieonnsuisrealrieglnaetidngwtiothththeeeCxeocmuptiaonnyo'sf tshtreatsetrgaitceggyoaTlsh,iisnyceluadr'isngfintodifnugrtthheer isntrcernegatsheeinn tthime etedleecvoomtemdutonisctartaitoengsyeTxhpeerkieenycsetroantetghiec Biteomarsd.pTrehsiesnyteedart'ostfhinedTinhge TsthraeteagpypopirnotcmeessnthoafsDbeaevnidpTrehpoadreaytioanssafDori,raecntdorcoinnvFeYrs2a0tibonroiung,hStefeurpthagereste8le0caonmdm8u1nfiocratdioetnasilsskoilflsthaenAdcetxiopnerfioenr c2e02to1trheevbieowareddrtoooemn.hFaunrctehethr edethtaeilBsooafrdD'asvSidtr'asteagpypominetemtienngt. aBnodairnddturacitnioinngisapndredseenvteeldopomnepnatgPer8o8g.reJsesana-gFariannstço2i0s1v9aancBtiooxnsmIenerthmee2t0t1h9e BcroitaerrdiaesfefetcftoirvethneesCshreavirimewan, irtowleaws ahgicreheidnctoluidnevdit:easfpoeramkeerrsCfEroOmoof tahelarrtgeechmnuolltoingayticoonmalpbanusieinsetsosm; aenetafwfiinthitythfeoBr toeacrhdn,oalnodgyfo; rbirmoapdroinvteedrneaftfioorntsaltoexbpeemrieadnceet;oaepnrsouvreenDlieraedcetorrdsraivreinpgrotovpidaenddwbiothttotimm-ellinyeimgrpoawcttihn;gaVstordoanfgonreep'sutoaptieornatwinigthetnhveirionnvmesetmntednutrcinomg mthuenyietya;r.thTehisstayteuarer'tsofirnepdirnegseMntiVchoadealfWonaedwe,eClliasctoseCnhioarirpionliDticigailt,arleBguulsaitnoersys and business levels; with the intellect, judgement and insight to bring strategic challenge; and the temperament to be an effective Chairman able to create and leverage a collegial and high-performing Board. See page 88 for details of David Thodey's 88 appointment process Action for 2021 The focus for FY21 will be Jean-François van Boxmeer's induction and the transfer to him of the Chairman role. 85 Vodafone Group Plc Annual Report on Form 20-F 2020
Aonunr upaeloRpleep,orretmounnFeorartmio2n0, -eFxt2e0rn2a0l Ianfdfauicrsti,ofnin, adnecvee,lolepgmalenant dangdoevvearnluaantcioenm(actotenrtsin. uFeudr)thBeroaarcdtivinitdiuesctaionnd avnisditdsetvoelloocpaml menatrWkeetsbaerleiepvleangnoeoddfdoerctihseiocno-mmiankginygeaisr.eFnuarbtlheedr bdyetaaidlseeopf Dunadveidrs'tsaanpdpinoginotmf oeunrt aonpderiantidouncstiaonndapreeopprolev.iAdeldl oounr pDaigreec8to8r.sAcocmommpitrethheenirsitivme,etatoilocroemdpilnedteucatnioinndpuroctgiroanmamnde ofonrgJoeinang-tFrarainniçnogispvroagnrBamoxmmee. eBroiasrbdeiinndgupcltaionnneWd eanhdavfuerathceormdeptraeihlsenosfivtheisinwdiullctbioenprporvogidreadmimnethien 2p0la2c1eAfonrnouuarl Rneewpolyrt.apLpoocianltemdaDrkieretsctTohrse aanndnueaalcshtrnaetwegDy idraeyctiosraissipgrnoivfiidcaendtwevitehnat wtaiitlhoirnedthiendauncntuioalncparloegnrdaamr.mTehitsoyseuaitr tthheeirBionadridvihdeuladlintseestdrsa.teTghyisdianyvoinlvMesamdreide,tiwnghsewreitmheomthbeerrsmoefmthbeersseonfiothr emBanoaagrdem, EexnetctueatimveaCndomhimghittpeoetmenetimalbeemrspalnodyeseesnimoretmwainthagtehme eBnot,aritdatlosodicsocvuesrssthteecShnpiacnailsbhreiecfoinngoms aynadnsditpeovliistiictsa.lDscuernineg, VthoedianfdouncetSiopna,iena'schbuDsiirneecstsoranisdeonucroSupraagneisdhtocoildleenatgiufyesa'rveiaeswwshoinchththeeGyrwouopu'lsdslitkraeteagdydiatniodnhaloiwnfiotrims abteiionngoinm,polremfuernthteedr mbyeeVtiondgasf,ownheiSchpaairne. tDheirnecatrorarsngareedablsyothgeivCenomthpeaonyppSoercturentiatyryt.oOvniscitoomthpelertilooncaol fmthaerkientdsuinctdioivnidpuraolglyra.mDmurei,nagllthneewyeDari,resictteovrsishitasvwe esureffmicaiednetbkynoBwolaerddgmeeamndbeurnsdteorsthtaenfdoilnlgowoifntghelobcuaslinmeasrskteotse:nIatabllye,tShpeamintoanedffethcetivUeKly. cTohnetsreibvuitseittsohsetlrpatteogiicmdpirsocvuesstihoenbsraenaddtohvaenrsdigdhetpothf othfethGerior ukpn.oOwnlejdogineionfgVthoedBafooanred,anDdavenidgaTgheomdeeyntwoansapnroinvdidiveiddwuailthleavnelinwdiuthctsioenniporromgraanmagmeemwenhticahndhaesmbpeleonyedeessiingntehde troesepnescutriveehme garakinestsa. LfuolclaulnmdearrskteatnfdoicnugsosfesthsieoGnsrowuepr,einaclsloudhienlgdddiusrciunsgsiBonosarwdimtheseetinniogrs mcoavnearginegrstohne Gstreartmegayn,, bSroauntdh aAnfdriicnanno, vSaptaionnis,ho,pTeurartkiiosnhs,, and Europe Cluster markets. Operating environment Board meetings included sessions on Vodafone's competitive landscape and political and regulatory trends and developments and their implications for Vodafone in addition to the regular updates provided on business development. As the COVID-19 pandemic impacts our operations globally, the Board has received, and will continue to receive, detailed reports ounnadcetritoankibneginitgstraeksepnonbsyibtihleitiCeso,mopnagnoyintgo trreasipnoinngd itsopcrhoavnidgeindgfoarndalnl eDwireocptpoorsrtuanndititersaiannindgrinsekesd. sTahreeBaossaersdsewdilal scopnartitnoufethtoe rBeoceairvdeerveagluulaatriodneepprodcievdeusrien.tTohkeeyBoloacradlpmroagrkraemtsmanedinucplduadteessroenguoluarr gplroebseanl teantitoernpsrfisroembumsianneasgs.eLmeegnatl, asinted vgiosvitesrnaanndcienfuoprdmaatelsmTeheetinGgrso,utpo GbueinldertahleCirouunndseerlsatannddCinogmopfatnhyeSbeucsrienteasrsyapnrdovseidcetodr.upDduartiensgotnhecuprarsetnytelaerg,aDl airnedctgoorsverrencaenivceedisrseugeusl.aTr htreasineiinngcloundoedurulpodcaatlems oanrktehtse,Goruoruopp'esrcaotimngpleinanvcireonwmithentthaen2d0r1e8ceUnKt lCegoarlpaonradtegoGvoevrnearnnacnecdeeCveoldoepmanedntTshiemCpaocmtipnagnVieosd(Mafoisncee.l8la6neVooudsaRfoenpeorGtirnogu)pRPelgculations 2018 (the `Regulation'). All Directors have access to the advice and services of the Group General Counsel and Company Secretary. Directors may take independent legal and/or financial advice at the Company's expense when it is judged necessary in order to discharge their responsibilities effectively. No such independent advice was sought in FY20. Board training and development To assist the Board in
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all or part of the meetings as appropriate. A summary of highlights of the Committee's work during the year and key areas for its focus in the coming year are set out below. Highlights from the year: Dedicated Chair succession planning by a sub-committee led by Valerie Gooding which resulted in the appointment of Jean-François van Boxmeer with effect from 28 July 2020, subject to shareholder approval. Appointment of David Thodey to the Board with induction programme currently underway. Overseeing the changes to the Executive Committee. Key areas of focus for the next year: Jean-François van Boxmeer's induction and the handover of the Chairman role. Board and Executive Committee succession planning in order to maintain their necessary balance of skills, knowledge and experience to remain effective. Continuing to monitor compliance with the Code and future regulatory updates. Chairman: Gerard Kleisterlee Chairman of the Board Members: Sir Crispin Davis Valerie Gooding Renee James 87 Vodafone Group Plc Annual Report on Form 20-F 2020
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under the Enhanced Code of Conduct for Executive Search Firms. Following his appointment, David is undertaking a thorough induction which we expect to complete within the first year of his appointment. An overview of the steps leading to David's election as a Director and induction process can be found below: Step Step Step Step 1234 Engage with searchShortlisting Interview process Recommendation consultancy andof candidates bywith Committee to the Board provide them Committee.members and Chief on the chosen with a search Executive.candidate. specification. Step Step Step Step 8765 Site visits Election byFace-to-faceAppointment terms to local markets &shareholdersmeetings with drafted and agreed operations.at AGM.the executive and with the selected senior managers.candidate. David Thodey Appointed as a Non-Executive Director on 1 September 2019 88 Vodafone Group Plc
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Matters Reserved for the Board and the Terms of Reference of the Nominations and Governance Committee, the Audit and Risk Committee and the Remuneration Committee were reviewed in March 2020 but no changes were required since they had been updated in 2019 to take into account the new provisions of the Code. During the course of the next financial year, the Committee will continue to monitor its compliance with the Regulations and the Code, review succession plans for Non-Executive Director roles. The Committee will continue to ensure that adequate succession planning is in place for the Executive Directors and senior management. /s/ Gerard Kleisterlee Gerard Kleisterlee On behalf of the Nominations and Governance Committee 2 July 2020 Vodafone's gender diversity against review recommendations Board Hampton-Alexander Review Davies Report Vodafone(2019: 41.7%) Executive Committee Hampton-Alexander Review Vodafone(2019: 30.8%) Senior Leadership Team Hampton-Alexander Review Vodafone(2019: 27.9%) 28.9% 33% 28.6% 33% 41.7% 25% 33% 89 Vodafone Group Plc Annual Report on Form 20-F 2020
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internal control, business risks and related compliance activities. Responsibilities The Committee's terms of reference are available on vodafone.com/ governance. Responsibilities of the Committee are to: Review the integrity of the financial and narrative statements, including the review of significant financial reporting judgements; Review and monitor the external auditor's independence and objectivity and the effectiveness of the external audit; Review the system of internal financial control and compliance with section 404 of the US Sarbanes-Oxley Act; Monitor the activities and review the effectiveness of the Internal Audit function; Monitor the Group's risk management system, review of the principal and emerging risks and the management of those risks; and Provide advice to the Board on whether the Annual Report is fair, balanced and understandable and on the appropriateness of the long-term viability statement. Chairman and financial expert: David Nish Members: Sir Crispin Davis Amparo Moraleda Sanjiv Ahuja Michel Demaré 90 Vodafone Group Plc
Overview Strategic Report Governance Financials Other information COVID-19 The COVID-19 crisis has had a range of implications on risk management and corporate reporting in the period. The key considerations are summarised below. Principal and emerging risks The impact of COVID-19 on the Group's principal and emerging risks and uncertainties has been reviewed in depth together with related mitigations. This work is summarised on page 70. Corporate governance The financial close process and external audit In response to governmental advice and restrictions regarding social distancing and travel, essentially all of the Group's employees involved in the preparation of ongoing management information, financial reporting and supporting the external audit have been working from home, as are EY's audit teams. This has required a different way of working during the year-end financial close process. Remote user access to our financial systems for these employees, software collaboration tools for the collation of audit evidence and regular status meetings have proved invaluable during the preparation of the financial results and execution of the external audit. We extended our reporting timetable by two weeks, resulting in the Annual Report being approved on 28 May 2020. Internal controls systems We have reviewed choaulrlefningaendcmiaalncaognetmroelsntanodn hitasvfeincaonnccialuldriesdktahsasteesxsmceepnttfaosr paalritmoifteidtsncuomnsbiedreroaftciohnanogfetsherelqounigr-etderams aviraebsiulilttyosftraetemmoetentw. Torhkiisnign,cpluridmeadrsilcyruintinryeloatfiofonrteocathstelfioqrumidiotfy,pbhaylsaincacel esvhiedeetnsctrinegssotfesatpsp, rthoevaalv, athileaboinligtyoionfgcoapsehraatnidoncaosfhoeuqrufiivnaalnecnitasl tchornoturgohlsnisewsuobrsteaxnitsitailnlgy ufinnaafnfceicntgedfabcyilCitiOesVaInDd-1a9rerevsiterwictoiof ncso.uTnhteisr-ipsairntyprairstkatofuanscsteisosntohfetlhikeetloiholosoadnodfpthroircdespsaerstitehsant ohtabveeianlgloawbeledtroemmeoteet caoccnetrsascwtuoarlkoinbgligfoatriofinnsa.nCceertteaainmesl.eWmeenatlssoofptehrifsoermxeerdciaseres-uapspselesmsmeenntetdofthtehenoInrmtearnl aalnAnuuadlitprpolacnesfsoarnFdYa2s1setsosmenesnutroefptrhioerGitireosuwp'esreprroes-apleicgtnsemd waditehbayremasanoafgheimgheenrt,riasnkdinintchleudceudr:rentTCheOmVoIDde-1ll9inigmopfatchteedfionpaenrcaitailnigmepnavcitroonfmceerntat.inFionfatnhceiaGl rroeupopr'tsinpgrinScigipnaiflirciasnktsfminaatnecriiaallisrienpgorutsininggjusedvgeerme ebnuttspTlahuesiimblpeasccteonfaCrioOsV; aIDnd-19Ehnassubrienegn cflaecatorrdeidscilnotsoucreesrtianinthoef AounrnsuiaglnRifeicpaonrtt faisnatoncwiahlyrethpeoratsisnegssjumdegnetmpeenritos,dnsoetlaebcltyedimwpaasiramppenrotpterisattinegto. Stheee sGigronuifpi,cawnhtaftinqaunacliiafilcraetpioonrstinangdjuadsgsuemmepntitosnosnwpeargeem9a2d. eInanadddhiotiwont,haelluonfdeorulryimngarakneatslyhsaisvewraesvpieewrfeodrmtheed,acmoonusnisttsepnrtowviitdhedFRagCaipnrsotnroeucneicveambelenstsa.nEdxcpoanntdraedctdaisssceltossuforre einxpreeclatetidoncrteodtiht eloGssreosu,pta'skilniqguiindtiotyahcacsoubnetenthperpoovtiednetdiailnfothreinficnraenacseiadl lsotsasteems denutest.oSetheeneoctoen2o2m"iCcaimpiptaalcatnodf fCinOaVncIDia-l1r9is.kLmonagn-atgeermmevnita"b.iElitxytesrtnaatelmauednittTThheeCCoommmmiitttteeeephraosvpidreims aadryvirceesptoontshiebiBliotyarfdoronovtheresefoerinmgatnhde rbealsaitsioonfschoipncwluitshiotnhseuenxdteerrnlyailnagutdhietolro. nTgh-itserimnclvuidabesilimtyakstiantgemtheenrteacsosmemt oeuntdoantiopnagoen7t1heanapdptohiengtmoienngt,croenacpeproninatsmseesnstmaenndt.reInmroevsaploonfsethteoeCxOteVrnIaDl-a1u9d,itthoer,Caossmesmsiinttgeeits
inbydetpheenCdeonmcme iottneea.nTohnegoidinegntbifaicsiastiaonndoafpkperyovaiundgitthriesksstaitsutcorrityicaauldiint tfheee,otvheersaclloepfefeocftitvheensetsastuotforthyeaeuxdtiet rannadl athuediatppprooicnetsmse. nTthoefCthoemlmeaidtteaeudailtsoenregcaegievmesenret ppoarrttinnegr.frAopmpoEiYntmonenittsoafsEseYssFmoellnotwoifntghea afcocrmouanlttienngdaenrdprdoicseclsossiunrethseinprtehveifoiunsanficniaanl csitaalteymeeanr tasnadntdhefinCaonmcimalitctoeen'tsrorlesc.oTmhme Cenodmamtioitnteteo wthiellBcoonartidn,usehatorerheovlideewrsthaeppaouidnitteodr aEprnpostin&tmYeonutnagndLaLnPti(c`iEpaYte')satshatht ethGe raouudpi'tsweixlltebrenapluatuoduittotor itnenJduelyr a2t0l1e9a.stEeYverreypltaecneydeParrisc.eTwhaeteCrhoomupsaenCyohopasercsoLmLpPlie(d`PwwiCth')t.hTehSetalteuatdorayudAiut dpiatrStneerrviicseAslOisrodnerD2u0n1c4anfowr hthoehfaisnahnecldialthyeeraorluensdinerceretvhieeawp.pIonidnetpmeenndteonfceEYan.dItowbjaescativkietyy oInbjietsctaivsseeossfmtheentCoofmthmeititnedeetpoeenndseunrceetohfatthEeYaubdeictaomr,eanfudlliyn faacmcoilridaar nwciethwailthl atshpeeUctSs oPfutbhleicGCroomuppathnayt AwcecreournelteinvganOt vtoertshieghetxBteoranradl'asu(d`iPtCpAroOceBs's)asstapnadrat rodf oitns ianuddeipt epnladnennicneg,.thTehiCsowmams pitatertelyreaccehivieevseddettharilosuogfhaEllYre"lashtiaodnoswhiipnsgb"ePtwweCenduthrienCg othmep3a1nyMaanrcdhE2Y01th9ayt emaar-yenhdavaeudaibt eparroicnegssonatittsheinmdeapjoerndmeanrckeetasnadnrdeacetiGverosucpo.nTfihrmisaitnicolnudfreodmatEteYndthanatceittios ionbdseeprvenedaetnGt roofutpheACudoimt panadnyRiinskacCcoomrdmanitcteeewmiteheUtin.Sg.sfbedefeorrael sfeocrmuraitliaespplaowintamndentth.eSaupbpsleiqcuabelnetlryu,lEesYapnderrfeogrmuleadtiodnestaoilfetdheplSaencnuinrigtieasctaivnidtiEesxachnadnrgeeviCewomedmPiswsiConau(`dSitEfCil'e)s.anFdoltlhoewPinCgAtOhiBs .wTohrke,CEoYmpmrietsteeentaenddtoEYtheagCroemedmaitnteuemibtserdeotfasilteedpsatuodietnpsluarnefEoYr thweas20in2d0efpiennadnecniatlfyoeratrh,ewphuircphooseutolifnceodnidtsucatuidngit tshceopaeu,dpitlaonfnthineg2m02a0terfiianlaintyciaanldiTtshaesassessessmsmenetnotfokfetyheauredvitierwiskpse. rTiohde aanuddiatlpiglannmwenatswaiktheythoeuGtpruotufpro'sminttheerntraalnlsointigo-nteprmrocfeosrsecaansdtsw; asTrheeviaeswseesdsminednettoafil the capacity of the Group to remain viable after consideration of future cash flows, expected debt service requirements, undrawn facilities and access to capital markets; 91 Vodafone Group Plc Annual Report on Form 20-F 2020
Annual Report on Form 20-F 2020 Audit and Risk Committee (continued) Significant financial reporting matters and judgements The areas considered and actions taken by the Committee in relation to the 2020 Annual Report are outlined below. For each area, the Committee was satisfied with the accounting and disclosures in the financial statements. management information and financial controls. The accounting policy for, management on the systems and processes implemented for reporting. principally the availability of future taxable profits and utilisation period. of managements' assessment of the impact of COVID-19 on the forecast cash flows, accounting judgements and disclosures made by management in both the half-year Area of focus Actions taken/conclusion Revenue recognition Revenue is a risk area given the inherent complexity of IFRS 15 accounting requirements and the underlying billing and related IT systems. See note 1 "Basis of preparation". The Committee received an update in September 2019, in relation to the IFRS 15 revenue reporting and accounting processes. Key areas of focus and challenge from the Committee were in relation to the period end closing process, data management, and related disclosure requirements of IFRS 15 that have been presented in the Annual report were reviewed in March saunbdjeMctatyo2a0r2a0n.gLeeoafsecllaiaimbisliatineds lTehgealimacptiloemnsefnrtoamtioannoufmIFbRerSo1f6soreuprcreesse, nintsclaudsiignngifciocmanptecthitaonrsg,ereingufilnaatonrcsi,acl ursetpoomrteinrsg,,siunpppaliretircsualanrd,thoenroecccoagsnioitnio,nfeolfloswignshifairceahnotllydemrsorine lGearoseuplisaubbilsiitdieisa.riSeese. Sneoeten1ot"eB1a6si"sPorfovpirseipoanrsa"tiaonnd" naontden2o9te"C20on"tLinegaesnest"l.iaTbhileitiCeosmanmditlteegeahl apsrorecceeeidviendgso"n.gTohinegCuopmdmatietsteoenmtheet wimitphlethmeeGntraotuiopn'soGf IeFnRerSal1C6.oTunhsiselinacnldudCeosmthpeannyewSeaccrceotaurnytianngdptohleicDyirfeocr,toarnodfrLeliatitgedatidoisncilnosbuortehrNeqouvieremmbeenrt2s0o1f9, IaFnRdSM1a6yth2a0t2h0a. vTehbeeCenomprmesitetneeterdeivnietwheedAannnduaclhRalelepnogrte.dTmheanCaogmemmeinttte'es cahssaellsesnmgeendtToafxthateiocnurTrehnetGstraotuups oisf sthuebjmecotsttosiagrnainfigceanotfctlaaximclsa,itmosgeatnhderrewlaitthedrelleegvaalnatclteiognals aadcvroicses arencueimvebderboyftjhueriGsdriocutipo,ntsowfohremreaitvoiepweroatnesth. eFuarptphreorp, rthiaeteGlreovuepl ohfaspreoxvteisnisoinviengacacnudmeuxltaetnedt otafxrelloastseedsdainsdcloaskueryesm. VanoadgaefmoneentIdjuedagDeimscelnotsuisrewahnedthaecrcaoudnefteinrrgejdudtagxemasesnettsshproiumldarbileyriencoreglnaitsioedn tino trheespiemcpt aocfttshoonsethloesasdejsu. sSteede ngorotess6re"vTeanxuaetio(`nA"GaRnd')nroutlein2g9i"nCInondtiian.gTehnitsliinabcliulidtieeds tahnedildeegnatlifpicroatcieoendoinfgtsh"e. aTmhoeuGnrtsouopf lToasxseDs itroecbteorrepcroegsennisteedd,oanssbeottihmtphaeirpmroevnitsiaonndinthgeaanpdpdroispcrlioastuerleevoefltaoxf pcroonvtiinsigoennicnigesreaqnudirdeedfeinrrreedlatatixonastsoetthreeccoognntiintigoennattlitahbeilNitoyvaedmjubsetrm2e0n1t9maencdhaMniasym2.0S2e0e Cnootmem29itt"eCeomnetientginegnst.lTiahbeiliCtioems amnidtteleegcahl aplrleoncegeeddinthges"ju. dTgheemCeonmtsmuintdteeerpcihnanlilnegngbeodthmtahneapgreomveisnitoonivnegr tahnedddiisscclloossuurreesanaddoreppteodrtfiongr tihmepmliocasttisoingsnioffictahnetacdovmerpsoenjeundtgseomf ecnotnitnintgheenAt tGaxRatciaosneliinabIinlidtiiaesaatnthdethNeouvnedmebrleyri2ng01a9s,suJamnputaioryns2f0o2r0thanedreMcoagyn2it0io2n0 oCfodmefmeirtrteede tmaxeeatsisnegtss., TLhiaisbisluitpypplermoveinstioedniangraTnhgee GofroBuoparisd deliberations on this topic in the period. Impairments Judgements in relation to impairment testing relate primarily to the assumptions underlying the calculation of the value in use of the Group's businesses, being the achievability of the long-term business plans aCnzdecthheRmepaucrboleicc,oHnoumngicaraynadnrdelRatoemdamnoiad.eTllhinisggaasvseumripsetiotonscoumndpelerlxyiancgcothuentvinagluaantidondipsrcolocesussre. Sreeqeunioretem4en"tIsm, ppaarirtimcuelnatrllyosisnesre".laTtihoenCtoomthme ivtateluearteivoniewofeadcaqnudireddisctaunsgseibdledeatnadileindtarenpgoibrtlienagswseittsh. ImnaMnaagrecmh e2n0t2a0n,dthcehGalrloenugpecdotmheplaeptepdrotphreiactoemnebsisnaotfiothneoafsVsuomdapftoionnesImtaalyd'es, ttohwe ecronasssisettesnwt aitphpIlNicWatiIoTn'sofpamsasnivaegnemetwenot'rks mineftrhaostdroulcotugryea. nTdhitshereascuhltieedvainbialitgyaoinf othnetbhuesdinisepsosspallaonfs.ItTahlye'sCtoomwmeristtweehfiochcuwseads ritesstartitcetnetdiodnueontoththeeulpedaasteesbamcakdoefttoheassesutmowpteirosn. sTahsisaarlessourletsthuletecdasihn gaenneeqruatiitnygauccnoitusnmteodsitnivmepsatmcteendtainndINthWe eITxtwenhtiocfhswenassiptiavrittyofdtihscelocsounrseisdetorabtieonprroevciedievde.d.TSheeeimnoptaeir2m7e"nAt caqssuuismitpiotinosnasnwdedreisrpeovsiaelws"e.dMaanndaugpedmaetendt owuhtleirneerdetqhueirkeedyfaocrctohuenptointegnatinadl idmispcalocst uorfetihme pcaucrtrsenint CreOlaVtiIoDn-t1o9thcreisseist.rTanhseacGtiroonusp. HTheeadCoofmPmlainttneienrgepcreeivseendteddettahileedourteppuotrotifntghefroimmpEaiYrmoenntitesxaesrsceisssemaetntht eoneatrhley-aMndayan2n0u2a0l mfineaenticniga.l Dstuarteinmgetnhtes.y9e2arV, othdeafGornoeuGp rhoausprePclocrded impairments in respect of its investments in Vodafone Ireland, Vodafone Spain, Vodafone Romania and Vodafone Automotive. Acquisitions and disposals In July 2019, the Group completed the acquisition of Liberty Global's operations in Germany and the
Overview Strategic Report Governance Financials Other information year. The primary elements of this were that all existing EY services ceased by 31 March 2019 with the exception of a small number of permissible non-audit services that were subject to a specific exemption from this requirement and all proposed EY services from 1 April 2019 were immediately subject to the Group's non-audit services policy. For the 2021 financial year, the Group's non-audit services policy has been updated and approved by the Committee. The updated policy incorporates the requirements of the FRC's revised Ethical Standard that was published in December 2019. The previous policy contained a list of prohibited non-audit services. This is replaced by a "whitelist" of permitted non-audit services, which mirrors the revised Ethical Standard. Effectiveness of the external audit process The Committee reviewed the quality of the external audit throughout the year and considered the performance of EY, taking into account the Committee's own assessment, feedback, and the results of a detailed survey of senior finance personnel across the Group. Based on these reviews, the Committee concluded that there had been appropriate focus and challenge by EY on the primary areas of the audit and that EY had applied robust challenge and scepticism throusugbhjoeuctt tthoethaeudpiot.liEcYiesasuedtitouant dabnoovne-,aaundditsfuebesjeTctottoal: faepepsropvaeydabulnedteorEthYefGorroauupd'ist nanodn-naound-itausderitvisceersvipcoelsiciny,tbhuetyweahreerenditewd a3s1dMeeamrcehd2s0ig2n0ifaimcaonutnlyteaddtvoant2a7gemoiullsiofon.r Cthoemsepravraictievteofbigeucroems pprleesteedn,tewdebreelaolwlowareedintorecsopneticntuoef ianmtootuhnets2p0a2i0dftionathneciparleyveiaoru.sFeexetserfnoarlthaeusdeittohrr,ePewseCr,viincetshowseereyea5rsm. Ailluiodnit.fEeaeschTwheasCaompemrmittietteedresveirevwiceeduannddedriasucdusitseredgtuhleatfieoenspraonpdoesaacl hdusreirnvgictehewtaesndcoemr pprloecteesesaralnydirnetcheeivfeindaanscsiuarlaynecaer.thFaint athneciparlorpeopsoerdtinfegeTs hweeCreoampmpriottperei'asteprfiomr athrye rsecsoppoenosifbwiloitrykirnerqeuliarteiod.nStoubthseeqGueronut pto'sthfienaaundciiat lternepdoerrtpinrgociesstso, arelvimiewite,dwnituhmmbearnaogfermeceunrtrianngdatnhde nexotne-rrneacluraruindigtosrc,otphee cahpapnrogpersiawteerneesasgorefetdh.eThhaelf-Cyoemarmaintdteeananguraeeldfinananacuiadlitsftaeteemofen2ts0. mThileliConom(2m01it9te:e1fo7cmusiellsioonn): forTshteatquutoarlyityauadnidt saecrcveipcteasbiinlittyheofyaecacr.oNunotnin-agupdoitlifceieess Tanodpproratecctitctehse; inMdeapteenridaelnacreeaasnidnowbhjeicchtivsiitgynoifficthaentejxutdegrneamleanutdsihtoarv,ethbeeeCnoampmpliitetedeohraws haepreolsiicgynfiofirctahnet eisnsguaegsehmaevnetboefetnhdeiesxcutesrsneadl wauitdhittohretoexptreorvnaidleaundoint-oaru; ditAsneravsisceesss.mTehnist opfowlichyetphreorhtihbeitsAEnYnuafrloRmeppolaryt,intagkaennyaspaarwt ihnomlea, nisagfaemir,ebnatloarncdeedciasniodnu-mndaekrisntgan, dparobvleid; ingThceerctalainritsyerovficthees dsuiscchloassuvreasluaantidocnowmoprlkiaanncde twheithprfoinvaisnicoinalorfeapcocrotiunngtisntgansdearvrdicseasn. dTrheilsepvoalnitcyfinaalsnocisaeltsanadpgreosvuemrnpatniocne trheaptoErtYingshroeuqludiroenmlyenbtes;engParogevdidfionrgpaedrvmicisestiobltehneoBno-aaurddiotnsetrhveicfoesrmwahnedrebtahseirseuinsdneorllyeignagl tohreplroancgti-ctealrmaltveiranbaitliivtye sstuaptepmlieernat;nadnidncluAdneys caocrarepsopnonthdeenlceveeflroomf nroeng-ualuadtoitrsfeiensr.eTlahteioCnotmo mouirttfeienahnacsipalrer-eappoprrtionvge.dAthccaot uEnYtincganpboeliceinegsaagneddpbraycmticaensaTgehme ent, bCenoemfimt oitfteitesrmeceemivbeedrsreapsowrtesllfraosmcomnasnidaegreimngenthteininrteelraetsiotsnotfo:othTerhsetaidkeenhtoifldiceartsiownhoicfhcrwitiilclahlaavcecoaunnitminpgajcutdognemtheenCtsoamnpdakneyy'ssloounrgc-etseromf essutcimceastsioonf uthneceerntatiitnyt.yT; heSCigonmifmiciatntetearcecvoiuenwtiendgapnoeliacrileys;draTfthoefitmheplAemnneunatlatRioenpoorftItFoReSna1b6leineatrhleyyineapru;taannddcoPmrompoenset.dTdhisecCloosmurmesitotefethaelssoe rinevtiheew2e0d2t0heAfninnuanacl iRalepreosrut.ltFsoalnlonwouinngcedmisecnutsss,isounpspwoirtthedmbaynathgeemweonrkt aonfdththeeGerxotueprn'aslDaiusdciltoosru,rteheCComommmittiettee,ewahpipcrhovreevdiethwesdainsdcloasssuersesseosfththeeAancncouualntRinegpoprotlaicnidesinavnedstporracctoimcems usenticoauttioinnsn.oteA1"6B0a,0s0is0offeperleimpairtaftoiornin"dtiovithdeuacloennsgoaligdeamteednftsin;anAcial5s0ta0t,e0m00entotst,awl fheiechliminictlfuodresderevtaicilessowf htheereimthpearcetissonfoaldeogpatlinaglteIFrnRaStiv1e6;.aFnadir, bAala5n0c0e,d00an0dtoutnadl efersetalinmdiatbfloerTsheervCicoems mwihteteree tahsesreessiesdnwo hpreathcetircathlealAtenrnnuaatilvRe espuoprpt,liteark. eFnorasthaowsehpoelerm, iisttfeadirs,ebravliacnecsetdhaatnedxucnededertshtaensedasbpleeciafnieddpfreoevliidmesitsth, ethienfCohrmaiarmtioann nperec-easpsaprryovfoers tshhearseehrvolicdeer. sIntomaisds-eMssatrhcehC2o0m20p,atnhyis'spopolisciytiownasanudpdpaetrefdortmoaanlicgen, bwuisthintehses nmeowdeFlRaCndresqtruaitreegmy.enTthsesuCcohmthmaitttoenelyrecveiertwaiendetxhperpersoslcyespseersmainttdedconnotnro-alsudthitasteurnvdiceerspiwnoitusldprbeepapreartmioinss, iebnlseu. rNinogn-tahuadt iatllfeceosnwtriebrueto7rsm, tihlleiocnor(e20re1p9o:rti2ngmtiellaimona)nadndserneiporresmeannteadge3m5%entoafraeufduiltlfyeaews aforer tohfeth2e02re0qfuiniraenmceianltsyeaanrd(2th0e1i9r :re1s2p%on, s2i0b1il8it:ie2s4.%T)h.iSs einecnluodteed3 t"hOepuesreatainngd dpirsocfliot/s(uloresso)"f afoltrefrnuratthiveer dpeetrafoilrsm. Tanhceelemveeal soufrfeese(soirn"tnhoenc-GurAreAntPy"emareaissuhriegsh)earnthdatnheinfipnraenvciioaulsreypeoarrtsi.nTghriessipsobnescibaiulsiteieEsYofhtihsetoDriicraelclytoprsrouvniddeerdstehcetiGonro1u7p2woifththae rCaongmepoafniseesrvAiccets20p0ri6ortotoptrhoemiroateppthoeinstumcecnest sasofexthteerCnaolmapuadnityorf.oTr hthreee
pre-existing EY service arrangements, which would not ordinarily have been 93 Vodafone Group Plc Annual Report on Form 20-F 2020
Annual Report on Form 20-F 2020 Audit and Risk Committee (continued) This work enabled the Committee to provide positive assurance to the Board to assist them in making the statement required by the 2018 UK Corporate Governance Code. Regulators and our financial reporting The FRC publishes thematic reviews to help companies improve the quality of corporate reporting around new accounting standards. The FRC also issued a range of guidance and performed a number of detailed reviews related to the year-end reporting process across public companies. The Group has reviewed the output of these reviews and their impacts on the Group's reporting with the most relevant being: The Committee reviews the progress against the approved audit plan and the results of audit activities, with a focus on unsatisfactory audit results and "cross-entity audits", being audits performed across multiple markets with the same scope. Audit results are analysed by risk, process and geography to highlight movements in the control environment and areas that require attention. During the year, Internal Audit coverage focused on principal risks, which include "cyber threat and information security", "digital transformation and simplification", and "market disruption". Relevant audit results are reported at the same time as the Committee's inydeeaprt.hTrheivsieinwclwuditehdthmeorniistkoroiwngnethr,ewphroicghreaslsloawnds tohuetcCoommemoifttweeortko phaarvteicaunlairnlytefgorcautesdedvioenwteosntitnhgeawndayththene reivsikdiesnmcianngatgheedc. oAmsspuleratennceesws aansdalascocuprroacvyidoefdraecproorstsinagrfarnogme soyfsateremass,uisnecdluidninthgecoypbeerrastieocnuroiftyc:ehrtyaginiecnoen&troelsss.eTnhtiiaslsis, soufptepnlireerfser&retdhitrodapsa"rtIiPeEs "a,nodro"fIfnffooormtparitniotnsePcruordiutyc;eIdTbryesthileieEncneti;tyo"p.eArastitnhgeeGxrpoeunpseevmoalnvaegs,eimncelnutd; innognb-couthrrefrnotmastsheetsoancgcooiunngticnegn;trcahluisrantimonanoafgpermoceenst;secsoanntrdacctomntarnoalsgienmtoenittsasnhdartehde VseorvdaicfeonceenFtoreusnadnadtiofrno.mThberoaacdtievritciheasnpgeerfsoirnmtehde bcoymthpeosshitaiorendosfetrhveicGeroorugpa,nwiseatcioonntainlsuoerteoccehivaeldleantgteenmtiaonnadgueme teontthoeniresnisgunriifnicgatnhtebneaartuinreg aonndthsceoepfefeocfticvoenntersosloafctgivloitbiaelspcrhoacnegsesesst.oMenasnuargeekmeeynrtiisskrsecsopnotninsiubeletofobreeandsueqriunagtetlhyatmiistsiugaesterda.isTehdebdyeeInpteerrnuatilliAsautdioitnaoref aaudtdormesasteeddwcoitnhtirnolasneamgbreeedddetidmweitathbilne,oaunrdsythseteCmosmismpiattreteorfetvhiieswosngthoeiinrgtiemvoellyutcioonmipnletthieonc.oCntormolpelniavnicroenwmiethnts.eTchtieonCo40m4moifttteheeaUlsSo Stoaorbkaannesa-cOtixvleeyroAlecitnOmveornsiitgohritnogftthheeGGrroouupp''ssccoommpplliiaanncceeaaccttiivviittiieessiinncrlueldaitniognretocesievcintigonre4p0o4rtosffrtohme UmSanSaagrbeamneens-tOinxltheye Ayecatracnodvpeorilnicgypcroogmrpamliamnec-elerevveliecwhsanaglseos,ftahllewscitohpien othfecoCmomplmiainttceee'wsorrekmpiet.rfMoramnaegdeamnedntthies rreessuplotns soifblceonfotrroelsstatebsltiisnhgi.ngAasnidgnmifaicinatnatinarineag oafdefoqcuuastewinasteornnatlhceoanstsroeslssmoveenrt ofifntahnecicaolnrterpoolsrtoinvgeratnhdewGerohuapv'es rwesoproknisnibpielirtfyorfmorinegnsausriinggnitfhiceaenftfeucptgivraedneestsooitfstGhersoeupcowntidroelsf.inTahneciCaloEmRmPitsteyestreemceiinvethdeuypedaart.eTs hoen CthoemGmroitutepe'salwsoorrkecineirveeldatiroengutloarseucptdioante4s0o4ncaomproplgiraanmcemaentdotdheeliGvreorugpr'esatberrocaodnesrifsitneannccyiaolfccoonmtrpolliaenncveirroenlamteedntaacttievaitcihesmineerteinlagtidounrtiongritshkes outhtesidFeRFCi'nsaLncaeb apnrdojIeTct.sT, hneoteaxbtleyrnparelpaaurdaittioornaslsfoorrtehpeoErtusrtohpeesatnatSuisnogfleitEs lwecotrrkoninicreFloartmioant t(o`EcSoEntFro')lsreinguiltsatrieopnosrtthsattoctohme eCionmtomeiftfteeec.t Afosrstehsesm20en21t offinGanrocuiapl'syesayrs.teTmheoref ihnatesrbneaelnconnotrcoolr,rienscplounddinegnctehefrroimsk rmegaunlaagtoemrse, nintcflruadminegwothrek FTRheC'GsrCouoprp'sorraistek RasespeosrstminegntRpervoiceewssTaenadmth(`eCwRaRyTin'),wchoimchmseignntiinfgicaonntobuursfiinneasnscriiaslkrseaproermtinagnaingerdesipseacnt oarfetaheofGfroocuups'sfoFrYth1e9CoormFYm2it0teree.pTohrteinCgo.mInmteirtnteael'csoancttriovlitaynhderrieskwmasanleadgepmrimenatriTlhy,ebCuot mnomt istoteleelhya, sbtyhtehperGimroaruyp'rsesapsosensssimbielintyt ofof rittshperoinvceirpsaigl hant dofetmheerGgirnogupri'sskssyastnedmunofceirnttaeirnntaielsc,oanstrsoelt, oinuctloundipnaggethse6r2istkom71anaangdema reanntgferaomfemwiotirgka,titohnescfoomr prilsiaknscaesfsreatmoeuwt oornkpaangdesth1e2w7 otork1o39f .thCeyIbnetrersneacluArituydirtemfuanicntsi,onan. dInwteirlnlacloanutdinitueThtoebIne,tearnmaal jAoruadriet afuonfcftoiocnusprfoovr itdheesCinodmempeinttdeeengtiavnedn tohbejeocntigvoeinagssruirsaknscien othviesratrheea.desYigenara-nedndopaedrvaitcinegtoefAfeucdtiitvCenoemssmoifttetheeCshyasitersmanodf iCnFteOrnsa;lcTonhtermola,ttihcrroeuvgihewa roinskexbiassteindgadpipsrcolaocshu.reTrheequfuirnecmtieonntsrefpoorrItFs RinSto9t,hIeFRCSom15maitntedethanedi,mapdamirimniesntrtaotifvneolyn,-tfointahneciGalroauspseCtsh;iaenfdFinTanhceimalaOticffriceevri.ewThoenfudniscctlioosnuirsescoremlaptoinsegdtoofthteeaamdsopatciroonssofGIrFoRupS f1u6n.cWtiohnislsat nthdeloGcraolumpaarlkreeatsd.yTchoims epnliaebdlewsiathcctehsesmtoasjopreictyiaolifstthsekirlelscothmromuegnhdcaetinotnrse,stohfee2x0c2e0lleAnncneuaanldReenpsourrtehsalsobcaelenknuopwdlaetdedgetoansedeekxtpoeraideonpcte.beTshtepfruanctcitcieonwhhaesreaahpigphliclaebvleel.oIfnqMuaalricfihed20p2e0rs, othneneFlRwCitahnadwthiedeSrEaCngiessoufeddigffueirdeannt cperofoferscsoiomnaplanqiueaslidfiucraintigonthseaCndOeVxIpDe-r1ie9ncceri.sAis.cToh-seoGurrcoiunpg hagasrereemvieenwtewditthhias pgruoidfeasnscioenaanldfiurmpdhataesdednissucrleodsuarcecseascsctoordaidndgitliyo.nTahl espGercoiaulpisat lsskoilfloslalonwds
an advanced knowledge base. Internal Audit activities are based on a robust methodology and subject to ongoing internal quality assurance reviews to ensure compliance with the standards of the Institute of Internal Auditors. The function has invested in several initiatives to improve continuously its effectiveness, particularly in the adoption of new technologies. The increased use of data analytics has provided deeper audit testing and driven increased insights. The Committee has a permanent agenda item to cover Internal Audit related topics. Prior to the start of each financial year, the Committee reviews and approves the annual audit plan, assesses the adequacy of the budget and resources and reviews the operational initiatives for the continuous improvement of the function's effectiveness. 94 Vodafone Group Plc
Overview Strategic Report Governance Financials Other information The Group has an internal control environment designed to protect the business from the material risks which have been identified. Management is responsible for establishing and maintaining adequate internal controls and the Committee has responsibility for ensuring the effectiveness of these controls. The Committee reviewed the process by which Group management assessed the control environment, in accordance with the requirements of the Guidance on Risk Management, Internal Control and related Financial and Business Reporting published by the FRC. Activity here was driven primarily by reports from the Group Audit Director on the effectiveness of internal controls. Although not relevant in the financial period, this would include any identified incident and fraud, including those involving management or employees with a significant role in internal controls. The Committee has completed its review of the effectiveness of the Group's system of internal control, including risk management, during the year and up to the date of this Annual Report. The review covered all material controls including financial, operating and compliance controls. The Committee confirms that the system of internal control operated effectively for the 2020 financial year. WdehfeenrecespfreocmificthaereGarsofuopr CimhiperfoTveemchennotlwogeyreOidffeincteirfiaendd, mthietigGartoinugp aCltheirenfaItnivfoercmoanttiroonlsSaencdurpitryocOefsfsiecserw. eTrheeinGprolaucpe'.sTfihniasnacllioalwcsounstrtool penrovviridonempoesnittiavnedatshseursatantcuestooftShearBbaonaerds-OtoxalsesyiLsteigtsaloabnlidgraetigounlsatuonrydecrotmhepl2ia0n1c8eU. SKecCtioornpo4r0a4tecGomovpelirannacnecefrComodteh.eInG-rdoeuppthFrienvainecwiaslTChoenCtroolmlinmgitatenedrOeqpueersatteiodnms aDniaregcetmore.nItmtopapcrtosvoidf ethien-addevpetrhserejvuidegwesmaesnptairnt tohfethadejmuseteetdinggroasgsernedvae.nTuhee(s"eArGevRie"w) csaasreeisnuImnmdiaarLiseegdalbealnodwr,etgougleatthoeryr wcoitmhpthlieanGcreo.uapn'ds tphreinicmippaalcrtsisokntothwehVicohdathfoenreevIdieewa jroeilnattevse.nStuubreje. cTthoefriins-kdeapntdhcroenvtireowl Pernivnicriopnaml reinstki(nseVeopdaagfeosne62Sptoai7n1f)roBmustihneeslsocriaslkCimEOpaacntdofCtFhOe .CLOegVaIlDan-1d9recgriuslias,tocroyncsiodmerpilnigantchee. gTlhoebarilsekcoanndomcoicntdrioslruepnvtiiornonGmloebnat laet cthoenofimnaicncdeissruhpartieodns.errisvkic,einccelnutdreinsgfrtohme itmhepaSchtaornedoLtheegralhaignhd-rriesgkualaretoarsy. Tcohmispwliaasnucen.dSeretravkiceneswCitehnttrheeDGirroecutporC. FTOhearnidskGs raoruopunHdepaodteonf tCiaolmglpolbiaanlceec.oFnionmanicciadlisrriuskptiimonpaacntdotfhtehpeoCteOnVtiaIDl i-m19plcicriastiiso,nisncolfuGdlionbgaal erecovnieowmoicf dthiseruLpotniognT. ethrmis,VinicalbuidliitnygGolnogboailnegcoandoeqmuiactedilsirquupidtiiotyn..MStaartkeemt ednitsraunpdtigoon.inIgmcpolinccaetironn, sliqfouridBitrye,xicto, uinnctelurpdainrtgyorpisekraatniodnBalamlanatcteersshaenedt srtirsekssmtaenstasg.eTmheisntw.GasloubnadleerctoakneonmwicitdhistrhuepGtioronu. pMCaFrkOe,t GdirsoruupptFioinn.anAcniatil-mCoonnteryolllaeurn, Gderroiungp TinrietiaastuivryesDainrdecMto-rP, GesraougopvIenrvneasntocer RupedlaattieonfrsoDmirtehcetoRre, gthioenGalroLuepgaFlinaanndcrieagl uCloatnotrryolclionmgpalnidanOcep.eCraEtiOonosfDthireeRcteosrt aonfdththeeWGorroludpreHgeioand.oTfhPelatrnannisnfgo.rmCyabtieornsoefcuthrietyGarnodupin'sfoarsmsuartaionnceseacnudrictoym, ipnlcilaundciengacutisveirtiseesctuoriftuyr,tshueprLpleigear lsaencudrrietyguClyabtoerrythcroematplainadncien.foernmhaanticoentsheecurirsiktya.nadndcocnytbroerl
environment and a fully integrated framework. The Group Policy Compliance Review assurance process and alignment with theLegal and regulatory compliance. Group's principal risks from the Group's Risk and Compliance Director. The management of fraud risk from the Group Corporate Security Director. Legal and regulatory compliance. Mid-year update on risk, including the review and approval of risk tolerance fromLegal and regulatory compliance. the Group Secretary and General Counsel. Report on the Rest of World region and European Cluster from their respective Regional Legal and regulatory compliance. Finance Directors, including an update on local audit and risk committee activities and joint venture entities. Update from the `Speak up' channel that enables employees to raise concerns Legal and regulatory compliance. about possible irregularities in financial reporting or other issues and the outputs of any resulting investigations. 95 Vodafone Group Plc Annual Report on Form 20-F 2020
Annual Report on Form 20-F 2020 Remuneration Committee Letter from the Remuneration Committee Chairman On behalf of the Board, I present our 2020 Directors' Remuneration Report. This report includes both our proposed Remuneration Policy (which will be submitted for shareholder approval at the 2020 AGM), and our 2020 Annual Report on Remuneration, which sets out how our current policy was implemented during the year under review, and how, subject to its approval, our revised policy will be applied for the year ahead. Impact of COVID-19 Our coordinated response I would like to start this year's letter by addressing the global impact of the recent, and at the time of writing ongoing, COVID-19 situation. Our priority as a business throughout this period has been, and will continue to be, the safety and welfare of our colleagues and customers. It has been heartening to see our people work together during recent weeks and months to ensure this priority is met. It is in times of volatility that embracing our purpose and values is most important, and the Board has seen colleagues from across the business live the Vodafone Spirit during these testing times. As a provider of critical connectivity and communications services which enable our digital society, we have announced a five-point plan to help the communities in wFhoiucnhdwateioonp.eWraitteh. Mregoarerddsettoaitlhsiosfytehairs'scasnalbaeryforeuvnideww,itwhhinilostuoru`srowciidale'rcaolln-termacptlroeypeoertpoayn rpeavgieesw5h4aasnadls5o5c. oEnxteincuuetidveaspnayoramnadl,owuritchopmemrfiotrmmeanntcset-oreoluartecdolrleemaguuneesraTtihoenrescihseadnuelecdontoombeicdiemlipvaecrtedfroasmpClaOnnVeIdD, -n1o9,saalnadrybointhcrtehaeseCsofmormeiitttheeerathnde EthxeewcuitdievreBDoiarerdctaorres aocrusteenliyorawmaarneaogfemtheenitmtepaamctsthwisillunbfeoarwesaerednedevthenist yheaasrh. aBdoothnEoxurecsuhtairveepDriicreec, taosrsitwhialsl aolnsothboesetaokfinagll1li0s0te%d bouf stihneeirss2e0s2a0ronuentdbothneusw, owrhldic. hUwnliilklebempaaniydbinusJiunneess2e0s,2t0h,einTethcehnfoorlmogoyfCsohmarmesuannicdahtiaovnes aingdreuesdtrytohhaosldre1m0a0i%nedofrethlaetiirvneleyt srhesairleiesnftrodmuritnhge uthpicsopmeriinogd.AAugt uthset 2ti0m2e0ovfewstr(iit.ien.g2, 0w1e8hGavLeTnI oatwhaardd,togrfaunrtleoduginh Aanuyguemstp2l0o1y7e)esfoarnadfouullr towpoeryaetiaornsspaorset-cvoenstt.inTuhinisglawttitehroduetctihsieonnereedprfeosresnttasteaaviod.luAnstasreyteoaurtlyinadthoipstAionnnoufalouRrenpeowrt,swtreucatruerealwsoheinreabypolsointigo-ntetrompianyceanytievaer aewndarddisviwdeilnl db.eInsutbejremctstoofacothmremeitymeaerntpsetrofoorumracnoclelepaegruioesd, awnedhaanvaedednitaibolneadl htwomo eyewaor rhkoinldginfogrptehreiovdas(ti.em.atjhoeri"t3y+o2f"omuropdeeol)p.lSe,ubbejeecnt ftloexshibalreehwoiltdheoruarplperaovvealanodf owuorrRkienmguhnoeurrastipoonliPcoielisc,ypraotvthidee2d0h2e0alAthGaMnd, twhiesllsbtreuincgtusruepwpiolrltaapcprloysstooauwr amrdarskgertasn, atenddferonambltehdisdyigeiatralonlewaarnrdinsg. CfoornoteunrtscoolflethageuReesmanudnethraetiirofnamReilpioesr.t A1 s00paSrut mofmaawryidoefrpermoppolosyeedeRcehmaruitnyergaitvioinngPionliitciayticvhea, nEgxeesc1u0ti1veACt aomglmanitcteeem2e0m20becrosmhpaavreedaltsoo 2b0e2en1 m10a2kiRnegmpuenrseornatailodnoPnoaltiicoyns10to3CTOheVRIDem-1u9nreerlaattieodncPhoalriictyietsa,bwleit1h0b7oCthhEaixremcauntivaendDNiroecnt-oErxsedcountiavteinDg i2re5c%toorsf'trheemirusnaelararytioonve1r0a8tAhrneneumaloRntehpopretroiondR, wemhiucnhewraitlilobne1m08atRcheemdubnyerthateiobnusCinoemsms iintteceon1j0u9nc2t0io2n0 wreimthutnheeraVtioodna1fo1n8e
2021 remuneration 120 Further remuneration information During the year the Committee engaged in a comprehensive consultation with shareholders in respect of revisions to our executive remuneration arrangements. The new Remuneration Policy will be submitted for shareholder approval at our 2020 AGM. Key objectives: To assess and make recommendations to the Board on the policies for executive remuneration and reward packages for the individual Executive Directors. Responsibilities: Determining, on behalf of the Board, the policy on the remuneration of the Chairman of the Board, the Executive Directors and the senior management team; Determining the total remuneration packages for these individuals including any compensation on termination of office; Operating within recognised principles of good governance; and Preparing an Annual Report on Directors' remuneration. The Committee met five times during the year and each meeting had full attendance. The terms of reference of the Committee are available on vodafone.com/governance. Chairman: Valerie Gooding Members: Dame Clara Furse Renee James Michel Demaré 96 Vodafone Group Plc
Overview Strategic Report Governance Financials Other information Next steps The Committee is aware that the COVID-19 situation is constantly evolving and we will continue to keep executive remuneration arrangements and decisions under review between the publication of this report and our AGM, and beyond. In particular, the Committee is conscious of the potential impact the current market uncertainty could have on the size, in terms of the number of shares granted, of the planned awards later this year. The Committee has reviewed its processes in light of the June 2019 grant (i.e. 2020 GLTI award) where an unexpected share price drop led to the actual number of shares granted being higher than what was originally expected when the Committee had approved the awards. As disclosed to the market last year and set out on page 112 of this report, the Executive Directors voluntarily forfeited 20% of the shares awarded in this case to reflect the unexpected share price movement. This year the Committee has agreed to delay the date of the 2021 award grant to November 2020. This will provide a longer period for the market to potentially settle and also assists with the difficulty in setting a three year free cash flow target range in the current uncertain conditions. The Committee will meet shortly before the grant to review all surcehleinvfaonrtminaftoiornmiastiiomnpaonrdtaangt rieneptrhoeviFdCinFgttarragnestp. aTrheinscoypopnorotuurnittayrgwetilslaaslseoarbleyuassepdotsosicbolensidpearrotitchuelrarmlyatitnerrsesinpercetlaotfiothnetonethweEgSraGntminecalsuudrien.gW, beuret nitont olitmfoitredthteo,utnhceerwtaeiingthyticnagusseodf tbhyeCpOerVfoIrDm-a1n9c,ethmeneatshuereFsCaFntdawrgheettwheorutlhdehnauvme ablesroobfesehnardeisscglroasnetdedinsthhoiuslrdepbeordt eatheermadinoefdthbeygarnanatv,earsahgeasshbaereenporuicreporarctthiceenionrmpraiol rspyoetaprsr.icTehaepCporomamchi.ttFeuelilsdaewtaairlse othfadtetchiesicounrsremnatdlaenidnsrceasppeecist cohfatrhaecNteorivseemd bbeyru2n0c2e0rtgairnatnyt,ainndclwudililncgotnhteinFuCeFtotawrgoerkt riannager,epspeorfnosrimblaenmceanmneearstuoreenwseuirgehtthinegms,oasnt dapthpreogprraianttepdriecceisuiosends faorer amwaadredicnallicguhltatoifonalpl uthrpeolasetess,twinilflobrme daitsiocnloasendd itnhattheexreecleuvtiavnet pstaoycdkoeexscnhoatngbeenaenfnitofurnocmemtheenct,uarnrednpt umbalriskheetdvoinlantielixttyy. eOaur'rsprreinpcoirpt.leTshIenCbootmhmdietstiegenbinelgietvheesrethviisseadppproolaiccyh,iasnndeicmespslaermyetnoteinngsuthreetchuerr2e0n2t1paowlicayrdd,uarnindgththeeasyseoacri,attheedCFoCmFmtairttgeeet wraansggeu, iids eadppbryopitrsiaptreinacnidplneostoufn: dEunlsyuirninflgueonucreRdebmyutnheeraimtiomnePdoialtiecya,nadnudntphreemceadnenneterdinexwthericnhalitmisarikmept lceomnednittieodn,sd. rNivoetws tihthesbtaenhdaivnigouthrsisthdaetlasyuptopothrteogurransttrdataetgey, tahnedpberufsoirnmesasnocebjpeecrtiivoedsf.oMr tahinet2a0in2i1ngawa a"rpdaywfilolrcpoenrtfionrumeatoncreu"naopnpraofaicnhantociraelmyeuanretroatfiionnanwchiaiclhyeeanrsubraessisoausr innocremnatilveipnlathnissocnalsyedferolimve1r sAigpnriilfi2c0a2nt0rteow3a1rdMs aifrcahnd20w2h3e.nAtshesyucahrethjeusCtiofimedmbitytebeuhsainseasgsrpeeerdfothrmataint cise.aAlreliagdnyinign tahpeoinsitteiorensttsoodfeoteurrmsienneioarppmraonpargiaetme eRnetltaetaivme TwoitthalthSohsaereohfoslhdaerreRhoetludrenrs(`bTySdRe'v)ealonpdinEgnvainroanpmpreonatcahl, tSooschiaalr,eaonwdnGerosvheirpntahnacteh(e`lEpSsGto')mtaaringteatisnfocromthmisiatmweanrdt,oavnedr tthheesleonagretesermt o. uOtfofnerpinaggecsom11p9etaintidve12a0n.dTfahier Craotemsmoifttpeaeybaenldievbeens edfiistcsltoosianlgl of our people, in line with our Fair Pay principles (further details of which can be found on pages 114 and 115). Remuneration Policy review Remuneration structures Over the last year the Committee has been reviewing our current remuneration structures in the context of our refreshed strategy and purpose. During this period the Committee had regular updates and discussions on external emerging trends in respect of both corporate governance developments and the increapsoedlicdyis, cituwssaiosnreocnog"anlitseerdnathtievree LwTaIs asrcroapnegetomiemntpsl"e.mOevnetraalnlutmhebCeroomfmbeitstet eprcaocnticcleudfeeadtuthraetsowuhriccuhrhreanvtereemmeurngeerdatsioinncestrthuectRureems u(innecrlautdioinngPtohleicuyswe aosf plaesrtfoaprmpraonvceeds,haanrdest)oairnecaolripgonreadtewsihtharoeuhor lpdreinr cfeipeldebsaacnkdwrehmicahinhabsesbtepenosrieticoeniveeddtodusruipnpgotrhtiosupresrtioradt.eFgya,irmpeaeyt Sthhearcerhitoicldael rnaeleidgnomf eatnttraPcatyinfgoarnpderrfeotraminainngcekSeyuptaploernttoiunrastcroamtegpyet,iptiuvrepgolsoebaanl dmsaprikreittp9l7acVe,odanadfodneeliGvreoruvpalPulec fAornnouuarlsRhaerpeohrotlodnerFs.oDrmel2iv0e-rFin2g0o2n0 these points is particularly important as we make the transition to a converged technology communications leader, and the Committee is confident the structures set out in our revised Remuneration Policy are the right arrangements at this time. The Committee will continue to review developing external trends and will remain open-minded about the nature of any future changes. Whilst the Committee was satisfied with the current core structures in place under our current
Annual Report on Form 20-F 2020 Remuneration Committee (continued) Shareholder consultation It was from this starting position that the Committee developed its original proposals and initiated an external consultation on these with our shareholders. During the year the Committee worked to facilitate genuine two-way dialogue when consulting on the proposed revisions to our current Remuneration Policy. This spirit is illustrated through how we launched our initial conversation with our largest shareholders in November 2019. As a March year end company, this ensured that the Committee was able to fully discuss all of the feedback received, and ensure inputs were properly considered prior to a final Remuneration Policy needing to be submitted in this year's Annual Report and Accounts. The level of engagement from shareholders during the consultation was high, and the Committee would like to thank everyone who took the time to provide feedback throughout the consultation period. As I have stated in these pages in previous years, the Committee is committed to maintaining a transparent and strong relationship with its shareholders, and this year's consultation exemplified the mutual benefits of such an approach. At the time of writing the final key proposed changes to our Remuneration Policy have been met with wfiodremsperdeapadrstuopfpoourrt wfroidmerthinoisteiaitinvveesstoonrseanngdagsitnagkethheoledmerpsltohyaeteevnogiacgee,dfuinrththeer dceotnasiulsltoaftiwonh,icPhrocpaonsableCfohuanndgeo2n:pGagLeT1I 1p5e.rfTohrmesaenmceeectoinndgistiwonerwe ehiigghhtliyngpsroIdnulcigtihvteoafntdhealplorowpeodseedmipnltoroydeuecrteipornesoefnatnatEivSeGs tmo edaisscuuressuandvearrioetuyr oGfLtoTpI,icasrwe-iwthemigehtwinhgicohf itnhcelupderefdortmheanimcepaccotnodfitBiornesxiwt aosnroeuqrubiruesdi.nBesass,etdheonlinfekebdebtawcekefnroGmrosuhparaenhdolldoecrasl imnaprrkeevtiso, uasndyeFaarisrrPeagya.rdTihnigs tlhaetteimr tpoopritcaniscepaorftifcruelearclayshimflpoowrtaunntdteor moueraisncCehnatiivrme aanrraonf gtheme Renetms,utnheeraCtoiomnmCiottmeemdiettceiedeadndthiat twthase eonricgoiunraalgpirnogptoosahlawveousuldchinaclpuodseitaivneoarnmdallivweeliyghdtiisncgusosfio7n0%onothnefrweeorckaswhefalorwe ,do2i0n%g ionntThiSsRa,reaan.dT1h0e%Coomn mESitGte.eDisucrionmgmthiettecdontosumltaatkioinngidt ebceicsaiomnescolneaerxtehcauttsivhearpeahyolidnetrhpercefoenrteenxcteowf paasyfoarrrtahnegTemSRenatnsdinfrteheecbausshinfelosws, awnedigfhutritnhgesr tdoetbaeilrseo-bf ahloawnctehdi.sTwhaesCuondmemrtiatkteeenddiusrciunsgsethdethyiesafreecdanbabcekfaonudndsuobnsepqaugeen1tl1y4aognreweadrdths.atAirtrwanagseamppernotsprfioarte20to21reSvaislaertyhefrpeerozpesosfeodr onuorrmexaelcwuetiivgehstiFnoglsloawcrionsgsathMe aafrochrermevenietwionoefdthpeerefxoercmuatinvceermemeausnuerreastitoon6a0r%ra,n3g0e%meanntds, 1th0e%Croemspmecitttieveelayg.rNeeedxtthsatetptsheAres willouusltdrabteednaobionvcer,eathsiestroevbiasseedsRaleamryufnoerraetiitohnerPtohleicCyhiisetfhEexpercoudtuivcet oofr cthoemCprheiheef nFsiinvaenecniaglaOgeffmiceenrtabnedtwaseesnucshhathreehirolsdaelarrsieasndwtihllerCemomainmiutntecehaanngdewdiflol rbethseuybemairttaehdeafodr. sThhairseihsotlhdeerseacpopnrodvcaolnasteocuurtiv20e2y0eaArGthMat.tEhemCploomyemeitetnegeahgaesmdeenctidAesdsneot totuot ainwlaarsdt ayesaarl'asryreipnocrret,adseurtiongeitthheeryoefarthIeheaxdetchuetiovpeps,oartnudniitlylutsotraattetesntdheboCtohmomuritEteuer'ospceoamn manidtmSeonuttthoAofnrliycaanweamrdpiloncyreeeafsoersuwmhseirnemapypcroappraicaitteyianslSigehntioorf IbnodtehpienntedrennatlDainrdecetxotre.rTnahlis
conditions. Annual bonus (R`GemSTuInPe'r)aFtioolnloPwoilnicgytwhehiccohncclaunsiboenfoofunoudropnopliacgyecso1n0s2ulttoat1io0n7,. tThheeCCoommmmititteteeedteatkeerms sinheadrethhoaltdbeor tchotnhseulotpatpioorntsunseitryioaunsdlys,trauncdtuinrethoef sppeirrfiotromfatnracnespcoanrednictiyonhsasunbdrieerfltyheseatnonuutatlhbeotnwuos skheoyucldharnegmeasinwhuincchhawnegreedm. Aadtethtoe Mthearocrhig2i0n2a0l pmroepeotisnagl,stfhoellCowominmgisthteaereahgorledeedrtfheaetdtbhaecpke: rPfroorpmoasnacleCchoanndgietio1n: sPoanstdetmhepilroryemspeencttisvhearwe eoiwghnteinrsghsipforre2q0u2ir1emsheonutlUd nredmeratihneuonrcihgainnaglepdrofrpoomsa2ls0,2t0h.eHcouwrreevnet rp,oisnt leigmhptloofymtheenutnschearrteaionwtyncerasuhsiepdrbeyquCirOemVeIDnt-s1w9 oaunlddthhaevseubbeseeqnusetnretndgitfhfiecnueltdysion tsheatttianlgl laenavaeprpsrowporuialtdehsaevrveihceadretvoecnounetitnaurgeetto, ihtowldas1a0g0r%eeodfatthtehier gMoaayl f2o0r2o0nemyeeeatirnpgofsotretmhipslocoynmdeintito,nantod b5e0%remfoorvaedfufrrtohmer tsheeco2n0d21yesahro.rWt-therilmstiancmeanjtoivriet.yTohfeshtharreeehoreldmearisnwinegrecosnudpiptoiortnisveofoffrteheiscaesvholfulotiwon, EfrBoImT,oaunrdcuCrurestnotmtrearnAchpepsrtercuicattuiorne,KanPdIsawppilrlescuiabtseedqutheenthlyigbheleevqeulaollfyhwolediignhgtesdreaqtu1i/r3edeafrcohm. aonudraerxeescuumtimveasr,itsheed Casomfomlloitwtese: recFoogrmniaselidsatthioerneowf apsenaspiorenfearliegnncme efonrt twhiitshptrhoepwosiadletroUbKe ewxoterkndfoerdceto. 10In0t%rodouf cthtieonreoqfuairnenmueanl tbfoonrubsodthefyereraarls..TRheedCuocmtiomnititneeGdLiTscIuosspepdortthuenfiteye.dbaIcnkclounsiothnisotfoapnicEaSnGd mdeecaisduerdetuhnadt,egriovuernGouLrTtIr.ackInretrcoodrudcotifoanimofinagfutollb"e3+a2m"avreksettinlega/hdeorldiinngthpeearrieoadoufnedxeercouutrivGeLshTaIr.ehoSltdreinnggtrheeqnuiinrgemofenptossatnedmtphleoydmeveenltopshinagrevhioelwdinogf trheequimirepmoretanntsc.eoEf xppoasnt seimonploofycmuerrnetnsthcalraewhobladcikngasr,raitnwgeams eanptpsr.oFpurlilatdeettoailasmoefntdhethfeinfailnaplropproopseodsaclhtaon1g0e0s%tooofutrhRe ermequunireermateionnt fPoorlitcwyoayreeaprrsopvoidstedemonplpoaygmee1n0t.09, 8wVithodthafeosneechGarnoguepsPthlcen embedded in our revised
inOfovrmeravtiieown SontrathteegfiocrRweaprdor-tloGookvinegrnaarnracnegFeimnaennctsiaflosrOotuhrerBionafrodrmcaantiobne Afosunsedtoonutpiangtehse1r1e8viasnedd 1R1e9moufntehreatAionnnPuaolliRcye,pforrotmon20R2e1m2u5n%eraotfioann.yPneerftobromnaunscwe iollutaclosombees ddeufreinrrged20in2t0oGshSaTrIePs pfoerrftowromayenacresAunnnleusasltbhoeneuxsepcuetrifvoermhaans caelrdeuadriyngmtehtethyeeiarrswhaarseaoswsensesresdhiapgareinqsutirbeomthenfitn. aGnlcoibalalanlodnsgt-rtaetremgiicnmceenatsivuere(s`.GTLhTeIf'o)uSrommeeasoufrtehsewmeorestesqigunalilfyicwanetigphrotepdosaetd25c%hanegaecsh,towoituhrfRineamncuinaelrmateiotrnicPsocloicnystaitruetiinngresseprevcicteofretvheensuteru, catdujruestoefdoEuBr GITLaTnId. Tadhejussetecdhafnregeescaasrhe fsleotwouwt hoinlspt athgee s1t0ra0teagnidc imncelausduereawreadsulcintikoendintoacwuasrtodmsiezreas,papnreicnicartieoanseKiPnIhs.olTdhinegKpPeIrsiotdh,emansdeltvheesicnotrvoedruedctimonetorifcsaninEcSluGdimngeacshuurren.,Trheveelnautteermoafrtkheetssehcahrea,nagneds insept aprrtoicmuolaterlrysicmorpeo(rftuanrtthteortdheetaCilosmomf wittheiec,hilclaunstbraetifnogunasdiotndopeasgeou1r1d0e).siFroertotheenyseuarer uthnadteorurreveixeewcu, ptievrefopramyaanrcraenugnedmeernthtseefminbarnacciealthmeetthrircesewpailslabrsrooafdolyurapt uorrpaobsoev. eTthheemmeitdr-icpsoiunsteodfuthnedetrartgheist EraSnGgemweiathsupreeraforermqaunacnetituantidveer, tlhinekceudsttoomoeurr aepxptererncaialltyiodnisKcPloIssemd eatmricbsitbioeninsginbtehloiswartehae,manidd-aproeindteotafilthede rfuanrtghee.rTohnepcaogme b1i2n0e.dLpienrkfionrgmpaanyceanudndpeerrfaolrlmofanthceeseThmeeCasoumremsidttuereinhgasthaelwyaeyars rbeeseunltecodminmaintteodvetorarlol bpuaystotuatrgoeft5s1e.t9ti%ngopfrmocaexsismeusmw.hAicshseentsouurteapbaoyvaen, dboptehrfEoxrmecauntciveeaDreirleincktoerds.wTihlilsvcoolunntitnaurielsytboebuessinhgowthneitrhrfoululgnheot ubronhuisstotoricpuinrccheanstievsehpaareysouintso, uthrebluesvinelessso.fFwuhrtihcehridlleutsatirlasteonhoowuropuerrfvoarrmiaabnlecepuayndterurleyaicshvmareiaabsulere, wcaitnhbietsfroeuanlidsaotniopnasguebsje1c0t9toangden1u1i0neolfythstereAtcnhniunagltRaregpeotrst. AonfRulelmbruenaekrdatoiwonn. oGfLoTuIr pteenrfyoermarahnicsetoTryheca2n01b8e GfoLuTndI aownapradg(eg1ra1n7t.eFduArtuhgeurst 2017) was subject to free cash flow (2/3 of total award) and TSR (1/3 of total award) performance, both of which were measured over the three year period ending 31 March 2020. Final FCF performance finished above the midpointfoofunthdeitnaroguertArannnguea,lrReseuplotirntgoninR5e8m.6u%neorfattihoenFoCnFpealgeem1e0n9t.vLeosotiknign.gInahreeasdpeActsothf iTsSleRtt,eorusrurgeglaetsitvse, tpheirsfyoremarahnacseboeveenr othneepcehraioradcwtearisse3d.6b%y cpo.an.tainbuoovuesthenegpaegeermgreonut,pcmomedpiraenh.eTnhsiivseredsiuscltuesdsiionn3s3a.9n%d, toofwtharedTsSthReeelnedm,eannt uvnepstriencge.dOenvteerdalgl,lothbealcsailtcuualtaitoend. pTahyeoduetdfoicratthioenaawnadrdquwaalisty50o.f4o%urocfomllaexaigmueusmandfucruthsteormdeertasihlsasofrethmiasicnaeldcucloantisoisntecnatnlybheifgohutnhdrooungphaoguet t1h1i1s.pBeroitohdEaxnedc,udteivspeiDteirthecetournscehartvaeinveoxlutenrtnaarlilbyaacgkrdereodpt,owheorledmalalinofinthaeisrtrnoentgshpaorseistifornomtotchoisntvinesutefdoerlaivfeurlilntgwoonyoeuarr ppuerrpioodsep,ossttr-avteegsty(ia.ned. asnpieraitr.lyThaedoCpotimonmoitfteoeurbenleiewve"3s +th2a"t mthoedreelvwisheidchpoilsicseyt, oasutseint ofuurttihnerthdeetfaoillloownitnhgepfoalgleosw, iwngillphaegleps)d.rCivoentshiidseprartoigornesosfadnisdcrIewtioounlTdhoencCeoamgmaiinttleiekeretvoiethwaendkiynocuen, toiuvresohuatrceohmoledsearst,thfoerMthaeyle2v0e2l0amndeeqtuinalgitaynodfdyeotuerrmeinngeadgethmeemnttoovbeeratphpisrolapsrtiayteeairn. /lsig/ hVtaolefrbieusGinoeosdsipnegrfVoarlmerainecGe oaocrdoinssgtCheharierlmevaannot fptehrefoRrmemanucneerpaetriioondsC.oTmhemCittoeme m2 iJtuteley f2u0r2th0e9r9acVkondoawfolendegGedrothuaptPthlceAbunsniunaelssRheapsorctoonntinFuoermd t2o0p-eFrf2o0r2m0well even against an uncertain external backdrop, and it was subsequently agreed that no adjustments were required to either incentive outcome this year. Further details of the matters considered when coming to this decision can be
Annual Report on Form 20-F 2020 Executive pay at a glance The components of remuneration Long-term incentive Share-based Three year vest Additional two year holding period Fixed pay Base salary Benefits Pension Annual bonus Cash Deferred shares Total remuneration Remuneration Policy summary of changes required to drive our strategic agenda, (Threshold: 94.5%). (Threshold 90%). Fixed pay (comprising Base salary, Benefits and Pension) FeatureCurrent policyProposed policyRationale PensionCurrent practice is 10% The Policy will be updated to formally Both Executive Directors are based in the of salary for executives,reflect the latest executive pensionUK and these arrangements are aligned with although the legacy policyarrangements which took effectthe employer contributions available to our allows up to 24%.in July 2018 (10% of salary).UK workforce. Annual bonus Global Short-Term Incentive Plan `GSTIP' FeatureCurrent policyProposed policyRationale Annual bonus No annual bonus deferral.Mandatory annual bonus deferral (25% Bonus deferral will act as an additional measure deferralinto shares for two years) will be applied to ensure shareholder alignment in situations to all executives who have not met theirwhere an executive is working towards their share ownership requirement.share ownership requirement. Long-term incentive Global Long-Term Incentive Plan `GLTI' FeatureCurrent policyProposed policyRationale MaximumChief Executive: 575% Chief Executive: 500% Thoepseeraptreopinostoedouchrainnvgeesstoairms. OtothbearlaFnecaetuorpepCourrturennittyp(oTlhicryesPhroolpdo:s1e0d3p.5o%lic)y.(RTahtrieosnhaolledS: h1a0r0e%o)w.tnheernsheiepd,CahsieofnEextheceuUtiKve's(5la0r0g%es)t,R(%eqoufirseamlaernyt)lOevtheelsr rEeDmsa:in52R5e%coOgnthiseersEtDhes:g4ro5w0%inglisstheadrechoomldpearncieosn,steonastutrsarcetqtuhieretmaleennttswOitthhetrheEDnese(d4t0o0a%c)c.ouunncthfaonrgtehde wvihewilsstApowsat-redms wpliolyl mveesnttoonnathstirsamigahttt-elri,nwe hbailssitsfoufrtohuerr ssttarekneghtohledneirnsgoRn ethqeuimreamtteenr tbseatpwpeleynptohsrte-schoonldditainodnsmwaixllimnouwm.aopfplloyngto-taelrlmleianvceernstiavliegsn. mVeensttinbge/twhoeledninegxTechurteieveyepaaryvaensdt ptheerioemd,pwloiythmTehnrteeunyteial ralvleGstLinTgIpfoerriaodpewriitohdaollf Ttwhoe Cyeoamrsm. sithtaereerheoclodgenriesxepsethriaetnmcea.ttaewrsarpdesrihoadvsesvheasrteesdd. eMliavleursedan5d0T%rigatgevresetv,esnhtasreinscsluubdjeeIcntctoorpaonraadtediatiroenpaultatwtioonofalqduaamntaugme,Esxipmapnldicsittyhe, apnrdotsehcatiroenhoolfdfeerreadlibgnymcelanwt b2a5c%k colnawthbeafcikrstmaantenriivaelrmsairsystyaeteamr henolt,dtirnigggpeerreiovden(ti..eI.n"c3lu+d2e"dmisocdreetli)o.anrefuorfthheirghthiamnpjoursttatnhcee"ttoraoduitriostnaaklethhorelde"ertsriagngdeor fmvaetsetriinagl ,mainsdca2lc5u%laotinonth,teotheexsteenpdrocplaowsebdacckhaenxgeersciasiempetoriofudretvheenr trseiannfdorecnesuserecsonthdeatnimnievsecraslaersy.foourracpopmlyminigtmaenndtginrotshsismairsecao.nPdeurcfto.irfmaanncinevAesdtijugastteiodnFiCs Fon(2g/o3i)nAg.dsjuucshtepdoFwCeFrs(a6r0e%su),ffRiceileantitv. e10T0SRVoIdnatrfoodnuecGinrgouapn PElScG element under the GLTI also conditions and Relative TSR (1/3).(30%), and ESG (10%).underlines management's commitment to our purpose, and the importance of our impact on the societies we
Overview Strategic Report Governance Financials Other information Total remuneration at a glance 2020 compared to 2021 The below table illustrates the arrangements in place during the year under review (2020) compared to those which will be in place for 2021 (subject to shareholder approval of the Remuneration Policy at the 2020 AGM). Component 2020 (year ending 31 March 2020) 2021 (year ending 31 March 2021) Fixed pay Base salary Effective 1 July 2019:Effective 1 July 2020: Chief Executive: £1,050,000 (no increase).Chief Executive: £1,050,000 (no increase). Chief Financial Officer: £700,000 (no increase).Chief Financial Officer: £700,000 (no increase). Benefits Travel related benefits and private medical cover.Travel related benefits and private medical cover. PensionPension contribution of 10% of salary forPension contribution of 10% of salary for all Executive Directors.all Executive Directors. Annual bonus GSTIP Opportunity (% of salary):Opportunity (% of salary): Target: 100% Target: 100% Maximum: 200% Maximum: 200% Measures:Measures: Service revenue (25%), adjusted EBIT (25%), adjusted Adjusted EBIT (1/3), adjusted FCF (25%), and customer appreciation KPIs (25%).FCF (1/3), and customer appreciation KPIs (1/3). Long-term incentive GLTI Opportunity (% of salary):Opportunity (% of salary): Maximum:Maximum: Chief Executive: 575% Chief Executive: 500% Other Executive Directors: 525% Other Executive Directors: 450% Measures:Measures: Adjusted free cash flow (2/3 of total award) Adjusted free cash flow, TSR, and ESG. Weightings will and TSR (1/3 of total award).be determined prior to grant (see page 119). Other Share ownership Chief Executive 500% of salary Chief Executive 500% of salary requirements Chief Financial Officer 400% of salary Chief Financial Officer 400% of salary Include poshsat reemsp(4lo9y5m%enotf hsaolladriyn)gCrehqieufirFeimnaennctsia(lleOafvfeicrserIn(McluadrgehpeorsittaeDmepllloayVmaellnet):hCohldieinfgFirneaqnucirieaml Oenfftisc(earll(Mreaqrugihreedrittao DmealilnataVinaltlhee):l8o4w6e,3r 0o2f tshheairreosw(1n8e0rs%hiopflesaalvaerrys)r1e,q0u3i9r,e5d2t0osmhaariensta(i2n1t9h%e loofwsearlaorfyt)h1e0ir1oVwondearsfohniperGeqrouuirpemPlecnAt/hnonludailngReapt odretpoanrtFuroermun2ti0l-aFll2o0u2t0standing requirement/holding at departure for two years from GLTI awards have vested).the date of departure). Shareholding Share ownership (as at 31 March 2019)Share ownership (as at 31 March 2020) informationThe share ownership values reflect an average share priceThe share ownership values reflect an average share price over the six months to 31 March 2019 of 149.27 pence:over the six months to 31 March 2020 of 147.73 pence: Chief Executive (Nick Read):Chief Executive (Nick Read): 2,825,550 shares (402% of salary) 3,516,841
Annual Report on Form 20-F 2020 Remuneration Policy Remuneration Policy In this forward-looking section we describe our Remuneration Policy for the Board. This includes our considerations when determining policy, a description of the elements of the reward package, including an indication of the potential future value of this package for each of the Executive Directors, and the policy applied to the Chairman and Non-Executive Directors. We will be seeking shareholder approval for our Remuneration Policy at the 2020 AGM and we intend to implement it at that point. A summary and explanation of the proposed changes to the current Remuneration Policy is provided on page 100. Subject to approval, we will review our policy each year to ensure that it continues to support our company strategy and if it is necessary to make a change to our policy within the next three years, we will seek shareholder approval. Considerations when determining our Remuneration Policy Our remuneration principles which are outlined on page 97 guide the Remuneration Committee when making decisions on our policy and its implementation. A critical consideration for the Remuneration Committee when determining our Remuneration Policy is to ensure that it supports our company purpose, strategy, and business objectives. A variety of stiankcelhuodlidnegrovuierwansnauraeltpakeoenplientsouravcecyouwnhticwhhaenttrdaecttesrvmeirnyinhgigehxelecvuetilvseopf apya,rtiinccipluadtiionngathnodseenogfaoguemr sehnatr, erheogludlearrsb, ucsoilnleeassguleeasd, earnQd e&xAtersneaslsiboondsi,easn. dFuarnthuemr bdeertaoilfsinotnerhnoawl dwigeiteanlgcaogmemwuitnhi,caatnidoncopnlastifdoerrmths.eOvuierwSsenoifo, reaIncdheopfetnhdeesnetsDtaikreechtoolrdaerlssoaurendseetrtoauktesonanpaagnenu1a1l5a.tItnenaddavnacnecaetoofusruEbmuriottpienagnoeumr pploolyiceye ffoorrushma,raenhdoladesrimapilparrobvoadlywienrSanouaththAofrroiucgah, wcoitnhsaunltyatqiounesetixoenrscioser cwointhceorunrsmraaisjoerdsbhyartehheoelmdeprlso. yWeeerienpvrietesdenotautrivtoeps f2e0dsbhaacrkehdoilrdeecrtlsyatnodthaenBumoabredrfoofrkceoynsgiodveerarntiaonnceansdtadkieshcoulsdseiorsn.toWceomdomneonttfoonrmreamllyunceornastiuolnt daitreVcotldyafwointhe aenmdptlooypereosvoidnetfheeeedxbeaccuktiovnetRheempruonpeorsaetidonchPaonlgiceys tnootrhies caunryrefinxtepdorleicmyuwnehricahtiownacsoamppparorivseodnamt ethaesu2r0e1m7eAntGuMse.dA. 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granted, since the 2017 AGM. 102 Vodafone Group Plc
Overview Strategic Report Governance Financials Other information The Remuneration Policy table The table below summarises the main components of the reward package for Executive Directors. to strategy to strategy to strategy Fixed pay: Base salary Purpose and linkTo attract and retain the best talent Operation Salaries are usually reviewed annually and fixed for 12 months commencing 1 July. Decision is influenced by: level of skill, experience and scope of responsibilities of individual; business performance, scarcity of talent, economic climate and market conditions; increases elsewhere within the Group; and external comparator groups (which are used for reference purposes only) made up of companies of similar size and complexity to Vodafone. Opportunity Average salary increases for existing Executive Committee members (including Executive Directors) will not normally exceed average increases for employees in other appropriate parts of the Group. Increases above this level may be made in specific situations. These situations could include (but are not limited to) internal promotions, changes to role, material changes to the business and exceptional company performance. Performance metrics None. Fixed pay: Pension Purpose and linkTo remain competitive within the marketplace Operation Executive Directors may choose to participate in the defined contribution pension scheme or to receive a cash allowance in lieu of pension. Opportunity The pension contribution or cash payment is equal to the maximum employer contribution available to our UK employees under our Defined Contribution scheme (currently 10% of annual gross salary). Performance metrics None. Fixed pay: Benefits Purpose and linkTo aid retention and remain competitive within the marketplace Operation Travel related benefits. This mthaey cinoculnutdrey (obfuetmispnlooytmlimenitt.ed tWo)eceoxmppecatntyocmaraoinrtacianshbeanlleofwitsanacteth, feuceulrarnedntalcecveeslsbtuotathderivvaelruewohferbeenapepfirtompraiyatfel.uctPuaritveadteepmeenddiicnagl,odne,aatmh oanngdsdtiostahbeilrittyhiinngssu,rpanercseoannadl saintunautaiol nh,eianlsthurcahneccekps.remIinutmhes aenvdenottthheartewxetearnskalafnacintodrisv.iPdeuraflotromraenlocceamteewtriecswNouolnde.of1f0e3r tVheomdasfuopnpeoGrtroinuplinPelcwAitnhnVuaoldRafeopnoer'tsornelFoocramtio2n0o-Fr i2n0te2r0national assignment policies. This may cover (but is not limited to) relocation, cost of living allowance, housing, home leave, education support, tax equalisation and advice. Legal fees if appropriate. Other benefits are also offered in line with the benefits offered to other employees, for example, our all-employee share plan, mobile phone discounts, maternity/paternity benefits, sick leave, paid holiday, etc. Opportunity Benefits will be provided in line with appropriate levels indicated by local market practice in
Annual Report on Form 20-F 2020 Remuneration Policy (continued) to strategy to strategy Annual bonus Global Short-Term Incentive Plan (`GSTIP') Purpose and linkTo drive behaviour and communicate the key priorities for the year. To motivate employees and incentivise delivery of performance over the one year operating cycle. The financial metrics drive our growth strategies whilst also focusing on improving operating efficiencies. The strategic measures aim to ensure a great customer experience remains at the heart of what we do. Operation Bonus levels and the appropriateness of measures and weightings are reviewed annually to ensure they continue to support our strategy. Performance over the financial year is measured against stretching financial and non-financial performance targets set at the start of the financial year. The annual bonus is usually paid in cash in June each year for performance over the previous year. A mandatory deferral of 25% of post-tax bonus earned into shares for two years will normally apply except where an executive has met or exceeded their share ownership requirement. Opportunity Bonuses can range from 0200% of base salary, with 100% paid for on-target performance. Maximum is only paid out for exceptional performance. Performance metrics Performance over each finaagnaciinasltytehaerpiesrmfoeramsaunrecde amgeatirnicsst sstertetocuhtinbgeltoawrg.eItns esextceapt ttihoenbalegciirncnuinmgstoafntchees,yseuacrh. asTbhuetpneortfolirmmiatnedcetomweahseurreeas ndoelramyatlolythceomgrparnistedaatme iisxroefqfuiniraendc, itahleaCndomstmraittetgeeicmmaeyassuetreas.vFesintianngcpiaelrmiodeaosfurleesssmthaayninthcrleuedeye(baurst,aarlethnooutglhimaiwteadrdtos)wpirlol fciot,nrteinvueenutoe abnedsucbajsehcftltoowawpeitrhfoarmwaenigchetipnegrioofdnoof laetslsetahsat nth5r0ee%y.eSatrrsa.tegAicllmpeoasstu-traexssmhaayreisnacrleudseub(jbeucttatoreanmotalnimdaittoedrytotw) ocuysetoamr heorladpinpgrefcrioamtiotnheKdPaItsesoufcvheasst pchriuorrnt,orerevleenausee.maDrkiveitdsehnadree,qaunidvaNlePnSts. Laroenpg-atiedrminicnacsehntaifvteerthGelovbeastlinLgondga-tTe.eOrmppIonrcteunntiitvyePMlanax(i`mGuLmTIl'o)nPgu-rtepromseinacnednltiinvkeTfoacme ovtailvuaeteatanadwianrdceonfti5v0is0e%deolfivbearsyeosaf lsaursytafionretdhepeCrhfoiermf Eanxceecuotviveer tahnedl4o5n0g%terfmor. oTtohesruEppxoecrtuatinvdeeDnicroecurtoargse. grTeahtreershshoaldrelhoonlgd-etreramliginnmceennttivtherfoaucgehvaalhuiegahtlaewvealrdofispe2r0s%onoalf smhaaxreimouwmneorpshpiopr.tuTnhietyu.sMe ionfimfreuemcvasehstfinlogwisa0s%theofpmrinacxiipmaul mperofpoprmoratunncietym. eAawsuarredsenvseusrteosnwaesatrpapiglyhtp-rluindeenbtasciassbhemtwaeneangethmreensht oalnddarnigdomroauxsimcaupmit.al dTishceipClionmemtoitoteuer hinavsetshtemdeinstcrdeetcioisniotnosr.eTdhueceulsoenogf-tTeSrmR ianlcoenngtiwveithgraanptelrefovremlsafnocreDpierreicotdorosfwnhoot lheassvethnaenitthherreemyeetatrhseimr esahnasrethhoaltdwinegagreuifdoecluinseednoornitnhcereloasnegd-ttehremirisnhtearreeshtoslodfinogurbysh1a0r0eh%olodferssa.laOrypedruartiionng thAe wyeaarrd. levTehles aawndartdhse tfhraatmveewstoarkccfrouredceateshrmdiinviindgenvdesetqinugivaarleenrtesvoievweredthaentnhuraelelyy.earLvoensgti-ntegrpmeriinocde.ntivAewaawrdasrdvsecsot ntositshteoef xstheanrtespesrufbojremctantocepecrofnodrmitiaonncseacreonsdatitiisofinesdw. PheicrfhoramreagnrcaenmteedtreiaccshyPeearrf.ormAawnacredisswmilelansuorremdaallgyavinesstt sntorettlcehsisntghatanrgthertseeseyteaatrsthaeftteirmteheofregsrpaenct.tiveVaewstainrdggisradnettedramteinbeadsebdasoendGornouthpepfeorlfloowrminagnce
measures: adjusted free cash flow as our operational performance measure, relative TSR against a peer group of companies as our external performance measure, ESG as a measure of our external impact and commitment to our purpose. Weightings will be determined each year and will normally constitute 60% on adjusted free cash flow, 30% on relative total shareholder return, and 10% on ESG. The Committee will determine the actual weighting of an award prior to grant, taking into account all relevant information. 104 Vodafone Group Plc
Overview Strategic Report Governance Financials Other information Notes to the Remuneration Policy table Existing arrangements We will honour existing awards, incentives, benefits and contractual arrangements made to individuals prior to their promotion to the Board and/ or prior to the approval and implementation of this policy. For the avoidance of doubt this includes payments in respect of any award granted under any previous Remuneration Policy. This will last until the existing incentives vest (or lapse) or the benefits or contractual arrangements no longer apply. Long-term incentive (`GLTI') When referring to our long-term incentive awards we use the financial year end in which the award was made. For example, the "2020 award" was made in the financial year ending 31 March 2020. The awards are usually made in the first half of the financial year. The extent to which awards vest depends on three performance conditions: underlying operational performance as measured by adjusted free cash flow; relative Total Shareholder Return (`TSR') against a peer group median; and performance against our Environmental, Social, and Governance (`ESG') targets. Adjusted free cash flow The free cash flow performance is based on the cumulative adjusted free cash flow figure over the performance period. The detailed t(awrgitehtslianneadrthinetedrepfoinlaittiioonn obfetawdejuesntepdoifnretse):caVsehsftilongwpaerrecdenetteargme i(n%edoefaTcShRyeealermasenapt)pBroeploriwatem. eTdhiaenta0r%getMaeddjuiasnted20f%reePcearcshenftlaogwe loeuvtepleirsfosremt bayncreefoefrethnecepteoerogurroluopngm-readnigaen pelqaunivaanldenmt atork8e0ttehxppeerccteantitoilnes.1W00e%coInnsoirddeerrthtoedtaertgeremtsintoebtheecrpietirccaelnttoagthesefCoor mthpeaenqyu'sivlaolnegnt-toerumtpesrufcocremsasnacnedleitvsealbsialibtoyvteo mmeadxiiamni,stehsehRareemhuonldeerratvioanluCe,oamndmtiottebeesienelkisneinwdeitphetnhdeesnttraetxetgeircnagloaadlsviocfet.hEeSCGompeprafonyrm. TanhceeROemuruEnSerGattiaorngeCtos mwmillitbteeesesettosnthaenseantanrugaeltsbatosisbe(assupffeircitehnetlayppdreomaacnhdfionrgowuritohthsiegrnpifeircfaonrtmsatrnectechmweahseurreeos)n,lyanoduwtstiallnbdeinaglipgenrefdortmo aonucreewxtielrlnbaellryewcoamrdmedunwicitahteadmamaxbiimtiuomnspinaytohuist.aTrehae. cWuhmeurelaptievrefoardmjuasntcede ifsrebeecloawshtfhleowagvreeesdtinagmlbeivtieolsn,atshae pCeormcemntiattgeeeowfitlhl eusaewiatrsddsisucbrjeetciot ntotothaissspeesrsfovremstainngcebeasleemd eonntpaerrefoshrmowanncienatghaeintasbtltehebesltoawted(wamithbiltiinoenaranindtearnpyoloatthieornrbeeletwvaenetninpfooinrmtsa):tiVone.stRinegmpuenrecreantitoagnep(o%licoyffFoCr Fotehleermeemnpt)loPyeerefos rWmhanilceeoBurelroewmuthnreersahtioolnd 0po%licTyhrfeosllhoowlds 2th0e%saMmaexfiumnudmam1e0n0t%al pTrSinRcoipultepsearfcorormssatnhceeGofroaupp,eepracgkroaugpesmoefdfeiraendWtoeehmapvleoayeliems irteefdlencut mdibffeerroefncaepspirnopmriaartkeepteperrascatincde tihnisthme adkifefsertehnetmcoeausnutrrieems,ernotloefaandresleantiivoerirtayn. kFionrgesxyasmtepmlev, othlaetirleem. Aunsesruactiho,nthpeacokuatpgeerefloermmeanntcsefoofr othuermExeedciauntivoef aCpoememr gitrtoeuepairse feeslstetnotibaelltyhtehme osasmt aepapsrofporritahtee TExSeRcumtievaesuDreir.eTcthoerspeweirthgrsooumpefomrinthoer pdeifrffeorremnacnecs,efcoornedxiatimonpliessrmevailelewreldeveealcshoyfesahraarendawamarednsdaenddalsocaaplpvroaprirainatcee.sTwhheeTreSRapvpersotpinrigatlee.vTelhsearseampuenrecreantitoagnefoorftthheenaewxatrldevsuelbojefcmt taontahgiesmpeenrfto, romuransceenieolremleeandterasrheipshtoewamn,iangtahientfaobllleowbeslothwe
same principles with local and individual performance aspects in the annual bonus targets and performance share awards. They also receive lower levels of share awards which are partly delivered in conditional share awards without performance conditions. 105 Vodafone Group Plc Annual Report on Form 20-F 2020
Annual Report on Form 20-F 2020 Remuneration Policy (continued) Estimates of total future potential remuneration from 2021 pay packages The tables below provide estimates of the potential future remuneration for each of the Executive Directors based on the remuneration opportunity to be granted in the 2021 financial year. Potential outcomes based on different performance scenarios are provided for each Executive Director. The assumptions underlying each scenario are described below1. Fixed Consists of base salary, benefits and pension. Base salary is at 1 July 2020. Benefits are valued using the figures in the total remuneration for the 2020 financial year table on page 109 (of the 2020 report). Pensions are valued by applying cash allowance rate of 10% of base salary at 1 July 2020. Base (£'000) Benefits (£'000) Pension (£'000) Total fixed (£'000) Chief Executive 1,050 42 105 1,197 Chief Financial Officer 700 22 70 792 Mid-point Based on what a Director would receive if performance was in line with plan. The opportunity for the annual bonus (`GSTIP') is 100% of base salary under this scenario. The opportunity for the long-term incentive (`GLTI') reflects assumed achievement mid-way between threshold and maximum performance. Maximum The maximum award opportunity for the GSTIP is 200% of base salary. 20T0h%e mofaxbiamseumsalGarLyTaInodplpoonrgtu-tneirtmy rienfcleencttsivfeulml vaxeismtinugmbfaasceedvoanluteheofmoapxpimorutumniatywaartdawleavredlsosfe5t0o0u%t inofthbiassRe esamlaurnye.rWatihoennPcoolnicsyid(eir.ein. g50th0e%reomf ubanseerastaiolanryarfroarntgheemCenhtisefoEf xinedciuvtiivdueaalnsdre4c5r0u%itedoffrboamseesxatlearrnyaflorrotlhesetCohtiheef BFionaarndc,iwaleOwffililcetar)k.eAinlltoscaecncaoruionst Lthoenrge-mteurmnerinatcieonntipvaecskcaognesoisfttohfatshinadreivaidwuaarldisnotnhleyirwphriiochr raorlee.mWeaesuorneldy aptrofavciedevaadludeitii.oen. anlocaosmsupmenpstaiotinonfotrociansdhivdiidvuiadlesnfdoreqauwivaradlesnftosrpegayoanbel.eI.f£n5e,c3e9s7sa£r5y,3w4e2w£i3l,l3s8e2ek26to%re2p0l%ica2te0,%as(afassruams ipnrgac5ti0c%abNleo, tteh:e1leIvnellinaendwtiitmh iUngKorfepsuocrthinrgemreuqnueirraetmioenn,ttsa,kthinegfoinutrothacbcaoruinnteaalcsho cahnayrtrermefaleincitsngthpeesrfaomrme aansscuemrepqtiuoinresmasenptesratphpelyMinagxitmouitm. Tshciesnawriilol bbeutawchitihevaendabsysugmraendtisnhgaraewparridcse oinfccraesahseorofsh5a0r%es(twhahticvhesstuobvseerquaetnimtlyefirnacmreeassiemsitlhaer thoypthootsheetfiocraflevitaeldueanodf tihf eaplopnrogp-treiarmte ibnacseendtiovne puenrdfeorrmthainscsececnoanrdioitiboynst.heAscaommempeerncseunratateger)e.dRucetcirounitimneqnutarnetmumunwerialltiboen aOpuprliaepdpwrohaecrhe tiot irsecdreuteitrmmeinntedretmhautntehreatnioenwiaswtoarpdasyanreo emitohreer tnhoatnsiusbnjeecctestosapryerafonrdmaapnpcreopcorinadteittioonasttorarcstutbhjeecrtigthotptearlfeonrtmtoanthcee rcoolned. iTtihoensRtehmatuanreerantoiotnasPsotlriectychtainbglea(sptahgoesse1o0f3thaendaw10ar4d)ssfeotsrfoeuittetdh.eSvearvriiocuesccoonmtrapcotnseonftsEwxehciuchtivweoDulidrebcetocrsonEsxideecuretidvfeoDr iinrecclutosriso'ncionntthraecrtesmhuavneerraotliloinngpatecrkmagseanfodratrheetaeprmpoininatbmleenotnonfoanmoErxeecthuatniv1e2Dmiroecnttohrs.'Annotyicnee.wThDeirkeecytoerl'esmreemntusnoefrathtieosneprvaicckeagcoenwtroaucltdfoinrcelxuedceutthiveessarmeleateeletmo erenmts,unanedrabtieons,upbajeycmt etonttsheonsalomses coofnosftfriacient(ss,eaesbtehlooswe)o, fanthdereexstirsitcintigonDsidreucrtionrgs apcetrifvoermeminpglosyimmielanrt r(oanleds.foTrh1is2mmeoanntshas tphoetreenatfitaelrm). aTxhimesuemrebstornicutisoonpspionrctluundietynoofn-
competition, non-solicitation of customers and employees etc. Treatment of corporate events All of the Company's share plans contain provisions relating to a change of control. Outstanding awards and options would normally vest and become exercisable on a change of control to the extent that any performance condition has been satisfied and pro-rated to reflect the acceleration of vesting, unless the Committee determines otherwise. In the event of a demerger, distribution (other than an ordinary dividend) or other transaction which would affect the current or future value of any award, the Committee may allow awards to vest on the same basis as for a cVhaondgaefoonfecGonrotruopl Pdelcscribed above. Alternatively, an adjustment may be made to the number of shares if considered appropriate. Margherita Della Valle Chief Financial Ofcer£'000 12,000 10,000 8,000 68% £6,917 6,000 59% 4,000 56% 2,000 £792 12% 21% 23% 15% 0Fixed Mid-pointMaximumMaximum Salary, Benets, and Pension Annual Bonus Long-Term Incentiveshare price growth) Nick Read Chief Executive £'000 12,000 70% £11,172 10,000 61% £8,547 8,000 6,000 58% 4,000 25% 19% 2,000 £1,197 22% 14% 11% 0Fixed Mid-pointMaximumMaximum (assuming 50% Salary, Benets, and Pension Annual Bonus Long-Term Incentiveshare price growth) 106
Overview Strategic Report Governance Financials Other information Payments for departing Executive Directors In the table below we summarise the key elements of our policy on payment for loss of office. We will of course, always comply both with the relevant plan rules and local employment legislation. Provision Policy Notice period and compensation for loss of office in service contracts 12 months' notice from the Company to the Executive Director. Up to 12 months' base salary (in line with the notice period). Notice period payments will either be made as normal (if the executive continues to work during the notice period or is on gardening leave) or they will be made as monthly payments in lieu of notice (subject to mitigation if alternative employment is obtained). Treatment of annual bonus (`GSTIP') on termination under plan rules The annual bonus will be pro-rated for the period of service during the financial year and will reflect the extent to which Company performance has been achieved. The Remuneration Committee has discretion to reduce the entitlement to an annual bonus to reflect the individual's performance and the circumstances of the termination. Treatment of unvested long-term incentive awards (`GLTI') on termination under plan rules An Executive Director's award will vest in accordance witthotbhee itnertmhes boefstthienptelraenstasnodfssahtiasrfeahcotilodnerosf. CpehrafoirrmmaannacendcoNnodni-tiEoxnescmuteiavseuDreidreacttothrse'nroemrmuanlecroatmiopnleOtiuornpooflitchye ipsefroforrtmheanCcheapiremriaond,towritehvitehwe athwearredmpuron-erraatteiodnfoorftNheonp-rEopxoecrtuiotinveofDtihreecvtoesrstinagnnpuearliloydftohlalotwhaindgeclaopnsseudltaattitohne wdaitthe tohfecResesmatuionneroaftioemn pCloomymmeinttte.eCThhaeirRmeamn.uFneeerastfioonr tChoemCmhaiittremeahnaasrdeisscertebtiyonthteoRveamryutnheeraletivoenl Cofomvemstiitntegea.sEdleememenetdPaoplpicroypFreiaetse,aWndeinaimpartoticpualyarctoomdpeetetirtmivienley tfhoarttahwe arordles isnhcoluulddinngotcovnesstidfeorrarteioansoonfsthwehtiicmhemcaoymimnciltumdeen, tartetqhueiirreadb.sWoleutbeednicshcrmeatiroknt,hdeefpeaerstuargeaiinnsctaasne aopfpproooprripaetrefoerxmtearnncael ,cdoemppaartruartoerwgirtohuopu.t Wthee apgaryeaemfeeenttoofouthreCBhoaiarrmd,aonrwdheitcrihmiennctlauldceosmfepeestiftoivrechaacitrivmiatyn.sPheipnsoifoannayncdobmenmeiftitteses.GWeenepraayllya fpeeentsoioenacanhdobfeonuerfiotthperorvNisoino-nEsxwecilultcivoentDiniureecttooraspapnlyd uthnetiyl trheceetievremainnaatdiodnitidoantea.l feWe ihfetrheeyapcphraoiprraiactoemotmheitrtebeenanefdi/tosrmhaoyldbtehreepceoisvitaibolne,osfuScehnaiosr(bInudtenpoetnldimenitteDditroe)ctpoary. mNeonnt-sexinecliuetuivoeffaececlreuveedlshaorleidsaeyt wanidthliengtahlefemeasxoirmtuamx aldevveicleacsoasptpsrionvreedlabtiyonshtaorethheoltdeermrsinasatpioarnt. ofBoeunreAfirttsicolfesreolfatAivsesoscmiaatlilovna.lWueemraevyiceowntthineusetraufctetur rteeromfifneaetsiofnrowmhteirmeeatpoprtiomperiaatned, smucayh,aass(abpuptrnooptriliamtei,temdatkoe) cmhoabnigleespthootnheepmroavninseiornin. Iwnheixcchetpottioalnfaelecsiracruemstsrtuacntcuerse,da,ninacrlruadnignegmbeunttnmoat ylimbeiteesdtatoblaisnhyedadsdpieticoinfiaclacllhyatior ofarcmileitmatbeetrhsehiepxfiteeosf. aAplalortwicaunlcaersindUivniddueralaallebgeaitcythaartraannygesmucehnta,rarnanaglleomweanntcwe oisulpdabyaebmleadeaecwhittihmine tcheertcaoinntneoxnt -oEfumroinpiem-bisaisnegdtNheonc-oEstxetocuthtieveGDroiurepc.tWorse awreillreoqnulyiretadkteosturacvheal tcoouarttseenodfBaoctairodnainndecxocmepmtiiotnteael mcierceutimngstsatnoceresfalencdt wthheeardediittiisoncaolntsiimdeered
commitment involved. Incentives Non-Executive Directors do not participate in any incentive plans. Benefits Non-Executive Directors do not participate in any benefit plans. The Company does not provide any contribution to their pension arrangements. The Chairman is entitled to the use of a car and a driver whenever and wherever he is providing his services to or representing the Company. We have been advised that for Non-Executive Directors, certain travel and accommodation expenses in relation to attending Board meetings should be treated as a taxable benefit therefore we also cover the tax liability for these expenses. Non-Executive Director letters of appointment Non-Executive Directors are engaged on letters of appointment that set out their duties and responsibilities. The appointment of Non-Executive Directors may be terminated without compensation. Non-Executive Directors are generally not expected to serve for a period exceeding nine years. For further information refer to the Nominations and Governance Committee section of the Annual Report. 107 Vodafone Group Plc Annual Report on Form 20-F 2020
Annual Report on Form 20-F 2020 Annual Report on Remuneration Remuneration Committee In this section we give details of the composition of the Remuneration Committee and activities undertaken during the 2019 financial year. The Committee is comprised to exercise independent judgement and consists only of the following independent Non-Executive Directors: Chairman: Valerie Gooding Committee members: Michel Demaré, Dame Clara Furse, Renee James and Samuel Jonah (until 23 July 2019) The Committee regularly consults with Nick Read, the Chief Executive, and Leanne Wood, the Chief Human Resources Officer, on various matters relating to the appropriateness of awards for Executive Directors and senior executives, though they are not present when their own compensation is discussed. In addition, Adrian Jackson, the Group Reward and Policy Director, provides a perspective on information provided to the Committee, and requests information and analysis from external advisers as required. Rosemary Martin, the Group General Counsel and Company Secretary, advises the Committee on corporate governance guidelines and acts as secretary to the Committee. External advisers The Remuneration Committee seeks and considers advice from independent remuneration advisers where appropriate. The aopfpCoionntdeducatdivsiasverasi,laWbliellaist TreomwuenrserWatiaotsnocno,nwsuelrtaensteslgercotuedp.tchormou.gFheeasthfoorroseurgvhicpersopcreosvsildeeddbtyo tthhee CChoamirmmiattneeof£t'h0e00R1eAmduvniesreartiAonppCooinmtemditbteyeSaetrtvhiecetsimperoavniddewdetroetahpepCooinmtemdibttyeethOetCheormsmerivtitceeesinpr2o0v0id7e. dTthoe tChehaCirommapnaonyf tWheilRliesmTuonweerarstioWnaCtsoomn mRietmteuenhearsatdioirnecCtoamccmesisttetoe tinhe2a0d0v7isAerdsvaicseaonnd mwahreknertepqruaicrteidce, ;agnodvtehrenCanocme;mpirtoteveisdioetneromf imneasrktehtedpartoatoocnoelsxebcyuwtivheicrhewthaerda;drveiwsearrsdinctoenrasuctltwanitchy;maanndagpeermfoernmt ianncseupapnoarlyt osifs.th8e8CRoemwmaridtteaen.dTbheeneadfivtsicceoannsdulrteancocym;mpreonvdiastiioonnsofofbethnechemxtaerrknadlaatad;voisuetrssoaurreceudsepdenassioangaudidme,inbiusttrdatoionno;tasnedrviensausraanscuebsctoitnustueltfaonrctyhosreorvugichesc.oNnsoitdee:r1atFioenesoafrtehedeistesurmesinbeydeoancha Ctimomemspitetnetebmaesims.b2e0r.1A7 davninsuearsl gaettneenrdalCmomeemtinitgtee RmeemetuinngesraoticocnasPioonliaclylyv,oatsinagndrewsuhletsnAretqthuiere2d01b7y athnenuCaolmgemnietrteael.mWeeiltliinsgTtohwereerswWasaatsboinndisinagmveomteboenr oofurthReeRmeumnuernaetriaotnioPnoClicoyn.suDletatanitlss' oGfrtohuepvaontidn,gasoustuccohm, veoslaurnetaprriolyviodpeedriantetsheuntadbelrethbeelRowem. uVnoetreastifoonr %CoVnsouteltsanatgsa'iGnsrto%upTCootadlevoofteCsoWndituhchteilndrReleamtiounnetoraetixoencuPtoilviecyre1m7,u5n8e1r,a2t4io5n,4c8o8ns9u7l.t1in9g5i0n7t,7h0e4U,3K6.7T2h.8is1is18b,a0s8e8d,9u4p9o,n85p5rin5c5i,p3l1e2s,7o0f 3tra2n0s1p9aarennncuya,lignetengerriatlym, oebejteinctgivitRy,ecmoumnpeeratetinocne,Rdeupeorctavreotainndg creosnuflitdseAnttiathliety2b0y19exaencnuutaivl egerenmeruanl emraeetitoinngcothnesrueltwanatss.aWn aildlvisisToorywveorsteWoantsoounr hRaesmcuonnefirramtioedn tRheaptoitrta.dDheetraeislstoofththaet CvoodtiengofoCutocnodmuecst tahrreopurgohvoidutedthienytheaertfaobrlealblerleomwu.nVeoratetisofnorse%rvVicoestepsraogvaidinesdt t%o VTootdaalfvoonteeasnWd itthhehreelfdorReetmheunCeormatmionittReeepisorstat1i5sf,1ie0d4t,h8a5t4i,t05is9in8d7e.6p4en2d,1en3t0,a7n6d9o,3b4je0c1ti2v.e3.6T1h7e,2R3e5m,6u2n3e,r3a9ti9o2n8C8,o2n9s9u,l4ta1n2tsM' GeertoinugpsCTohdee
Remuneration Committee had five formal meetings and one additional formal conference call during the year. In addition, informal conference calls can also take place. The principal agenda items at the formal meetings were as follows: Meeting Agenda items May 2019 2019 annual bonus achievement and 2020 targets/ranges 2017 long-term incentive award vesting and 2020 targets/ranges Shareholder update 2019 Directors' Remuneration Report July 2019 Shareholder & media communications update Review of Remuneration Policy Corporate governance matters October 2019 Corporate governance matters Review of Remuneration Policy November 2019 Review of Remuneration Policy 2019/20 shareholder consultation January 2020 Shareholder consultation update Gender Pay Gap Reporting 2021 short-term incentive structure March 2020 Shareholder consultation update Remuneration arrangements across Vodafone Committee's terms of reference Chairman and Non-Executive Director fee levels 2021 reward packages for the Executive Committee Remuneration Committee performance review 108 Vodafone Group Plc
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128.70 pence. The value shown in the 2020 column is the award which vests on 4 August 2020 in respect of Nick Read and 26 June 2020 in respect of Margherita Della Valle, and is valued using an average closing share price over the last quarter of the 2020 financial year of 139.99 pence. 5 Nick Read receives a cash award, equivalent in value to the dividends that would have been paid during the vesting period on any shares that vest . The dividend value shown in 2020 relates to awards vesting on 4 August 2020. Margherita Della Valle's figure reflects the value of dividend equivalent awards accrued during the performance period in respect of the award vesting on 30 June 2020. 6 Reflects the value of the SAYE benefit which is calculated as £375 x 12 months x 20% to reflect the discount applied based on savings made during the year. 7 In line with our SEC reporting requirements, total remuneration received by Margherita Della Valle in respect of the period 1 April 2018 to 31 March 2019, inclusive of payments received whilst Deputy Chief Financial Officer, was £1,467k. 109 Vodafone Group Plc Annual Report on Form 20-F 2020
perAfonrnmuaanlcReerpeomrtaionnedFosrtambl2e0o-Fr i2m0p2r0ovAendnaugaaliRnsetpaorntuomnbReermofunmeertartiicosnin(ccoenrttianiunemd)arFkinetasn,ctihael CmoemtrimcsitAtese saegtroeeudt itnhatht ea tfainbalel paabyoovue,t fbreeleowcatshheflmowid-apnodinEt BofITthfeintaisrhgeedt raabnogveewthaes mapidpproopinritastoe.fGthreourepspcheuctrinvepetarfrogremt raanncgeeesnrdefeldecthtiengyesatrrosnliggphetlryfodromwann,caeltihnomugarhkuentsdienrclyluindginpgeGrfoerrmmaannyce, twheasUmKo, rEegfyapvot uanradbTleu.rIkneEy.uSroeprveicweerseavwenrueelaftiinvieslhyedstasblilgehptleyrfboerlmowantcheeinmoidu-rpmoianitnoEf uoruorpteaarngemt ararkngetes, omfaGinelrymdarnivye, nItbalyy,peSrpfaoirnm, aanncdethineoUuKr ,lawrgitehstbEouthroIptaelaynamndarSkpeatsin. CimusptroomvienrgapthperiercriealtaiotinveKpPoIssiAtionnainssgecsosmmepnatreodf ptoerofuorrmpeaenrcse. uOnvdeerraltlhtehcisupsteormfoerrmaapnpcreecwiaatsioonffKsePtIbsymuenafsauvroeuwraabslecopnedrfuocrtmedanocneainmTarukrektebyy, wmhaerrkeetprbicaseisc.oEmapcehtimtioarnkneet gwaatisvaeslyseismsepdacatgeadincshtuarnnuramtebseirnotfhdisifmfearerkntetm. Oeturricrsewvehniuceh minacrlukdetedsh: areCrheumrnaiinseddefrienlaetdivaeslytosttaalbglreodssurciungstothmeeyredairs,cwonitnhescltiigohntsiinncrtheaespeesrrioecdodrdiveiddeind Gbyertmheanayve, rIatagley,toatnadl cthuestUomKearsccionmthpeanpieerdiobdy. anRiemvpenrouveemmaernkteitnsthhaeregiaspbtaosethdeomnaorukrettolteaaldseerr,vaincde arenviemnuperoavnedmtehnatt ionfpoousritcioomn pinetIittaolrys ainndthtehemUarKk.etLsewssefoapvoeruartaebilne.perNfoertmParonmceowtearsSrceocroer(d`eNdPiSn'S)pfoarinb,owthheCroenosuurmmearraknedt pVoosditaifoonnaelsBoufseilnleasnsdtdheefignaepdtoasththeemeaxrtkenett lteoawdehricinhcoruearsceuds.tEomlseerwshweroeulind rEeucroompemoeunrdoupse. rAatlilomnseafasuceredscuotmilipseetidtaivtae fprroemssouruer ilnocRaol mmaanrkiae,tsCwzehcihchRiespcuobllliecctaenddaTnudrkvaelyi,daaltledoffowrhqicuhalrietycoarnddedcoanfsaisllteinncmy abrykeint dpeopsietniodne,nat ltthhiordugpharthtyisawgeanscaiecscowmhpearenipeodsbsiyblpeo.sOituivreopveerrfaollrmCaunstcoeminerthAepfporremciaotfionnarKroPwIionugtcthoemgearpeftloecthtse amcaormkeptelteiatidveereinnvtihreoncmaseenstoinf RaonmumanbiearaonfdoCuzremcahrRkeetpsu. bWlihci.lsNtPS performance during the year saw a number of markets slightly fall in their Consumer NPS market position, including in Italy, the UK and Turkey. Notwithstanding this, we recorded positive performance in our European markets of Portugal and Albania, and African markets of Egypt and Ghana, where our position as market leader was extended. Market position movement was less prevalent in respect of Business NPS where we maintained our market position in the vast majority of markets where this measure is monitored. NotabletemrmovienmceennttisveinicnlusdheadreasnAesxtseent soiuotnininthouerLleetatdeerrfsrhoimp pthoesiRtieomn uinneIrtaaltyioannCdoamn munitftaeveoCurhaabirlemmano,vbeomthenEtxiencouutirvgeaDpitroectthoersmhaarvkeetvloelaudnetrarinilythaegUreKedatnodreScoeuitvheAthferiicraf.uIltl i2s0w20ithshinortth-itsercmonitnecxetntthiavteoivneVraoldl apfeornfoersmhaanrecse aasgaaisnisgtnoourf cCounsftiodmenecreAipnporeucribautisoinneKssP.I1s1m0eVtroicdsadfounriengGrtoheupyePalcr was judged to be below target. The aggregated performance for the regions and the Group is calculated on a revenue-weighted average to give an overall achievement: Customer appreciation KPIs Achievement (% of maximum) Europe 43.3% Africa 54.0% Group 44.0% Base salary £'000 Maximum bonus % of base salary 2020 payout % of maximum Actual payment £'000 2020 annual bonus (`GSTIP') amounts Nick Read 1,050 200% 51.9% 1,090 Margherita Della Valle 700 200% 51.9% 727 Voluntary decision to receive short-
Overview Strategic Report Governance Financials Other information Long-term incentive (`GLTI') award vesting in August 2020 Vesting outcome The 2018 long-term incentive (`GLTI') awards which were made to executives in August 2017 will vest at 50.4% of maximum in August 2020. The performance conditions for the three year period ending in the 2020 financial year are as follows: Adjusted FCF performance 2/3 of total award (bn) TSR outperformance 1/3 of total award TSR peer group Bharti Orange Below threshold <14.75 Below threshold Below median BT Group Telecom Italia Threshold 14.75 Threshold Median Liberty Global Royal KPN Maximum 18.45 Maximum 10.0% p.a. Deutsche Telekom Telefónica MTN The adjusted free cash flow for the three year period ended on 31 March 2020 was 17.2 billion and equates to vesting under the FCF element of 58.6% of maximum. The chart to the right shows that our TSR performance over the three year period ended on 31 March 2020 was above that of the median of our comparator group and equates to vesting under the TSR element of 33.9% of maximum. When the weighting of each condition is applied to the respective performance outcomes, this results in a calculated payout of 50.4% of overall maximum. The vesting impact of this outcome when applied tointhreesnpuecmtboefrthoef sahwaarerds gmraadnetetdoiMs saertgohuetriitnatDheeltlaabVleablleel)oawn.d1b1o2th10E7xe1c0u8ti9v2e1D0i0re1c0to1r8s9haMveaxciommummitnteudmtboevroolfusnhtaarrielsyAhodljdusatleldnferteveecsateshd sflhoawrepsefrofroarmfualnlctewpoayyeoaurt p%eroiofdmpaoxsitmthuemvResetladtaivtee. TLSoRngp-teerrfmorminacnecnetivpeay(o`GutL%TIo')f amwaaxridmeudmduVrianlguethoef ysehaarreTshveeisntidnegp(e'n0d0e0n)t2p0e1rf8orGmLaTnIceshcaornedaiwtioanrdssfosurbthjeec2t 0to20pelorfnogr-mtearnmceinccoenndtiitvioenaswvaersdtsinmgaidneJiunneJu/Aneug2u0s1t92,0a2n0dWsuebijgehcttetdopaetrhforeremyaenacreppearyfoorumt %ancoef mpearxioimd eunmdiNngum31beMr oafrcshha2r0e2s2v,easrteinagdNjuisctkedRferaede c1a,6s7h3f,l4o3w7a5n8d.6T%SR33p.9er%fo5rm0.a4n%ce8a4s3,f4o1ll2ow£1s,:1A8d1juMsaterdghFeCriFtapDereflolarmVaanlclee1(23/038,o0f5t0ot6a5l .a5w%arNd/)AA6d5ju.5st%ed2F0C1,F89p5er£fo28rm2aNnocete(:1bTn)hVeseestsihnagrepearwceanrdtasgseub(%jecotftoFCpFerfeolermmaennct)eBcoelnodwititohnrsesrheoflledc<t a1n5.a8w5 a0r%d gTrharnetsehdotlodM15a.r8g5he1r8i%ta DMealxlaimVuamlle1i9n.5J5un1e0200%17TSprRiopretrofohremr aanpcpeoi(n1t/m3 eonfttototatlhaewBaordar)dV(einstcilnugdipnegrcdeinvtiadgeend(%eqoufivTaSleRntelsehmareenst)). TTSheRaowuatprderwfoarsmsaunbcjeecBtetoloawdjtuhsretesdhofrledeBcealsohwflmowedpiaenrf0o%rmTanhcreesihnollidneMweditihanth1e8r%anMgeasxoiumtluimned8.5ab0o%vep.aan.d(8w0itlhl vpeesrct einntJilueneeq2u0iv2a0l.eSnpt)ec1i0f0ie%d pTrSoRcepdeuerersgraoreuppeBrTfoGrmroedupbyDeouutrsicnhteerTnealleakuodmit LteiabmertoyvGerlothbealaMdjuTsNtedOfrarenegecaRshoyfalolwKPtoNaTsseilsetcwoimthItthaleiaCToemlemfóitnteicea'sTahsesetsasbmleebnteloofwpesreftosromuatnthcee.oTrhigeinpaelrfaonrdmraenvcieseadssceosnsdmietinotnianl raewsapredcst ooff sthhearTeSs RmamdeeatsourteheisEuxnedceurttiavkeeDn ibryecWtoirlsliisnTJouwneer2s0W19a.t2so0n1.8DGeLtaTilIsaowfahrodw: TthSeRpplaernfowromraknscceaGn rboewftohunindtihnetvhaeluReemofuanehryaptiootnhePtoiclaiclyUtSh$a1t 0w0ashoalpdpirnogvoevdearttthheep2e0r1fo7rmAaGnMce. pVeorliuondt,asriyxemxotenntshioanveorfaghoinldgi1n4g0p1er3i0o1d1T7h1e2s2e1s1h6a1r1e9a1w2a0r1d1s3w1i1ll8v1e0s8t o1n1041A00u1g1u2st923092008(62861Ju8n0e80207200
6003/1709/1703/1809/1803/1909/1903/20 Vodafone Group Median of peer groupOutperformance of median of 10% p.a. 111 Vodafone Group Plc Annual Report on Form 20-F 2020
Annual Report on Form 20-F 2020 Annual Report on Remuneration (continued) Following the decrease in share price between the date of the Remuneration Committee's decision in respect of the grant of the awards and the date of grant itself, Nick Read and Margherita Della Valle voluntarily requested, and the Committee approved, that their 2020 long-term incentive conditional award be reduced by 20%. The impact of this decision is reflected in the table below. As set out in the Letter from the Remuneration Committee Chairman on page 97, in light of this experience and the current market volatility, the Committee is delaying the grant of the 2021 award until November 2020. This will allow the Committee to set an appropriate FCF target range and ensure the current exceptional market conditions do not inappropriately impact the grant conditions. Prior to the grant the Committee will consider a range of matters including, but not limited to, whether it is appropriate to use an average share price for the purpose of determining the number of shares subject to award granted. Further information will be provided in the market announcement following grant and disclosed in the 2021 Directors' Remuneration Report. Proportion of maximum award vesting at minimum performance Original maximum vesting level (number of shares) Origintaol ma 2ax0i%mudmiscvoeusntitntgolmevaerlkeSthvaarelusev.oEluxnetcaurtiilvyeRDeivriescetdorms'apxaimrtiucmipavteisotninigs ilnevcleuld(enduminbtehreoofpsthioarnetsa)bMleaoxnimpuamgev1e1s4ti.nPgelnesvieoln(sfaDcuerivnagluteh1e)22002200fGinLanTcIiapleyrfeoarrmthanecEexsehcaurteivaewDaridrescmtoardsereicneJivuende 2a0c1a9shPaelrlfoowrmanacneceofpe1r0i%odoefnbda(sfeacsealvaraylu. eM1)arfgohrfeeriitteadDNeilclakVRaelaled a4c,8c5ru9e,5d4b6en£e6f,i0t3s7o,f5£090,92909%.936,8u8n7d,e6r3t6he£4d,e8f3in0e,0d0c0o1n/t5ritbhu3ti1oMn paern2s0io2n2 pMlaanrgihnerreistapeDcetlolaf Vthaellpeer2i,o9d57sh,9e8s4e£rv3e,6d7o5n,0t0h0e B20o%ard2,d3u6r6in,3g8t7he£2y,e9a4r0. ,N00e0ith1e/r5tNhi3c1k RMeaard2o0r22MNarogthee: r1itFaaDceelvlaalVuaelclealpcaurltaicteipdabteadseidnoandtehfeinceldosbienngesfhitasrcehpermiceewonhi2ls5t JaunnEex2e0c1u9tiv(deaDyiirmecmtoerd.iTatheelyEpxreeccuetdivinegDthireecdtaotresoafregrparnotv)iodfed12b4e.n2epfietnscine.tDheiveivdeenntdoefqdueiavtahleinntsseornvitchee. sThhaeryesatlhsoathvaevset aanreepnatiitdleimn ecnatshunadfteerrathleonvge-stteirnmg ddaistea.bOiliutytstpalnandifnrgomawwarhdicshT2h/e3sotrfubcatuseresafolarrayw, uaprdtsomaamdeaxiinmAuumgubsetn2e0fi1t8de(vteersmtiinngedAbuygutshte2i0n2su1r)earn, wd oJuunlde b2e01p9ro(vviedsetdinugnJtuilntehe20s2ta2t)eipsesnestioountaogne.thIne prersepveiocut sofptahgee.EFxuerctuhteirvedeCtaoimlsmointtteheemstermucbteurrse, othfethGesroeuapwhaarsdsm, aandde areglgerveagnattetacrgoenttsr,ibcuatniobnesfoofu£n2d7i3n,7th7e1 A(2n0n1u9a:l£R2e6p4o,8rt1o8n) iRnetomduenfeinraetdiocnoonftrtihbeutrieolnevpaenntsyioenars.cAhellm-eems.pAlolyigenemsheanrtetoplsahnasrDehuorlidnegr tihneteyreesatrstCheurErexnetculetivveelsDoifreocwtonresrswheirpebeylitghieblEextoecpuatrivtieciDpairteecitnortsh,eaVndodthaefodnaeteGbroyuwphSihchartehseavgeoaPllashnowulhdicbheiosrospheonutlod ahlalvUeKbeeemnpalcohyieeevse.dT, haereVsohdoawfnonbeeSlohwar.eTshaveevPalluaensisaraencHalMculRateevdenuusien&g aCnuasvtoermags e(`sHhMareRCpr'i)ceapopvreorvtehdesscihxemmoenothpsentoto31alMl satarcffhp2e0r2m0aonfen1t4ly7.e7m3ppleonyceed. BbyasaedVoondatfhoinsevacloumatpioannypirnicteh,ebUotKh EasxeocfutthieveelDigiirbeicltiotyrsdaartee.cOurprteinotnlsy ubnedloewr ththeepirlasnhaarreehgorldanintegd at up requirements. In respect of Nick Read, this reflects an increase in the valuation of his holding from 402% of salary, as stated in the 2019 report, to 495% as stated in the table below. The number of shares Nick has beneficial ownership of has also increased from 2,825,550 to 3,516,841 over the same period. Margherita Della Valle joined the Board on 27 July 2018 and will continue to work towards achieving her goal prior to July 2023. Requirement as a % of salary Csucrerneanrti%oJuolfys2a0la2r3y 4h.e0lmd %60o0f%re4q.u0imrem60e0n%t a3ch.5imev3e.d5mNu3m.0bmerinocfrsehaasree3s.0omwn4e0d0%Va4lu0e0%of 2s.h0amreh3o0l0d%ing2.D0mate30fo0r%re1q.u5imrem1.e5nmt t1o.0bme a1c.h0mieviendcrAeats3e11M00a%rch10200%200N.0imck0R%e0ad.05m000%% 43915/0%3 3991/%033G,5o1a6l,A84c1tu£a5l .A2cmtuJaullyIll2u0s2tr3atMivaerIglhluesrtirtaatiDveell3a1V/0a3ll3e14/0030G%o2a1l 9A%ctu55al%A1c,t0u3a9l ,I5ll2u0st£ra1t.i5vme IJlululystr2a0ti2v3eR2e0q2u0i2re0m19endtedcreeaadsleinien:cRreeaqsueir2e0m20e2n0t 1d9eaddelcinreea: s5e0i0n%cre5a0s0e%232%.5m5924.%5m520000%%42905%0%4002.5%m309.56m% 22042%0 1210219V3o1d/a0f3on3e1/G03ro2u0p%PlScP 20% SP 2020 2019 31/03 31/03 20% SP 20% SP The shareholding requirements include a post employment condition whereby the Executive Directors will need to continue to hold shares equivalent to the value of their requirement at the date of departure (or actual holding on departure if the requirement has not been reached during 400% 219% 180% 176% 263% Nick Read Margherita Della Valle Actual holdingHolding scenarioJuly 2023Actual holdingHolding
Overview Strategic Report Governance Financials Other information employment) for a further two years post employment. The Committee has a number of processes in place to ensure this condition is met, including executives agreeing to these terms prior to receiving an award, executives holding the majority of their shares (and at least up to the value of their requirement) in a nominee rather than a personal account, and the Committee having the ability to lapse any unvested GLTI awards if the condition is not met. Collectively the Executive Committee including the Executive Directors owned 20,595,294 Vodafone shares at 31 March 2020, with a value of over £30.4 million. None of the Executive Committee members' shareholdings amounts to more than 1% of the issued shares in that class of share, excluding treasury shares. Directors' interests in the shares of the Company A summary of interests in shares and scheme interests of the Directors who served during the year is given below. Margherita Della Valle's outstanding GLTR share award was granted prior to her appointment to the Board. More details of the outstanding shares subject to award and options are set out in the table below and on page 114. Share Plans Share options Unvested without Total numberperformance conditions of interests in shares (granted prior to Gapropuopin'stmEexnetcUutnivveesCteodmwmiitthtepeearfto3rm1 Manacrechco2n0d2i0tiohnasd(aant taagrggeret)gaUtenvbeesnteedficwiaitlhinpteerrfeosrtminan1c6e,0c3o8n,d9i3ti3onorsd(iantamryaxshimaruems o)fStAheYCEo(munpvaensyt.eAd tw3it0hJouuntepe2r0f2o0rm, tahnecDe icroenctdoirtisohnasd) Aant 3a1ggMreagracthe 2b0e2n0ef(iactiaml ainxtiemreusmt i)n1 6to,5t1h4e,6B9o7arodrd)inEaxreycushtiavreesDoirfetchteorCsoNmicpkanRyeaandd1t2h,e36E9x,e2c4u9tive3,C5o3m5,m64i5tte8e,8m39em,1b1e6r1s 3h,a2d92anMaagrggrheegraittea bDeenlelaficViaalllien5te,7re8s6t,2in99177,75,9051,22410,8o9r8d,i7n1a1ry4s,6h6a9re,7s6o7f thTe oCtoalm1p8a,n15y.5T,5h4e8c7h7a,n0g1e2i5n,4th3e4,n3u5m6b1e3r,5o0f8s,h8a8r3es1h3e,2ld92reNfloetcet:s 1a TchhaisnginecilnudmesembobtehrsohwipniendtshheaErexseacnudtivtheeCmoamxmimituteme nduumrinbgerthoifsupnevreiosdte,dasshwaerell aaws asrhdasr.eTphuercthotaaslens uamndbearvoefstinbteetrwesetesninthsehayreeasr-ienncdluadneds i3n0teJruensets2o0f2c0o.nNneocnteedofptehresoDnisr,eucntovresstoerdthsheaErexeacwuatirvdes Canodmsmhaitrteeeopmteiomnbs.erTsohtaaldnaunminbedrivoifduinatlebreesntesfiincisahl ainretesrAestt3a1mMouanrctihng20to20grNeaotne-rEtxheacnu1ti%veoDf tirheecCtoorsmSpaannjyiv'sAohrduijnaa1ry4,s0h0a0re(sA. DTRhes)D1iSreirctCorriss'ptiontaDl anvuims b34er,5o0f0inMteircehsetsl Dinemshaarrées1d00id,0n0o0t DchaamnegeCdlaurrainFgutrhsee p7e5r,i0o0d0fVroamle1rieAGproiol d2i0n2g02t8o,93700JuRneene2e02Ja0m. Peesr2fo7r,2m7a2ncSeamshuaerleJaownaarhd(spTohsietimonaxuipmounmrentiuremmbeenrto)f3s0h,1ar9e0sGsuebrajerdctKtoleoisuttesrtalened2in2g0,a0w0a0rdMsatrhiaatAhmavpeabroeeMnogrraalnetdeadMtoaDrtiinreeczto3r0s,0u0n0deDrathveidloNnigsh-te1r0m7,i0n1c8enDtiavveid(`TGhLoTdIe'y) p30la3n,6a5re3 cNuorrtee:n1tlyOansefAolDloRwiss: e2q0u1i8vaalwenartdtoAtwenarodreddin: aAryugsuhsatre2s0.1A7t13P0erJfuonrem2a0n2c0e,paenrdiodduernindgintgh:eMpearricohd2f0ro2m0 V1 eAstpirnigl 2d0a2te0: tAou3g0usJut n2e02200120S,hnaoreDpirrieccetoart gharadnat:n2y2i4n.t0erpeesnt cine1th2e0s1h9araewsaorfdaAnwy asrudbesdid: iJaurnyec2o0m1p8aPnyer.fOortmhearntcheanpetrhioosdeeinnddiinvgid:uMalasricnhc2lu0d2e1dVinestthiengtadbaletes:aJbuonvee2w02h1o SwhearreeBporiacredamt egmrabnet:rs18at43.21pMenacrech20220200a,wmaermd2beArws oarfdtehde: June 2019 Performance period ending: March 2022 Vesting date: June 2022 Share price at grant: 124.2 pence GLTI performance share awards Nick Read 1,673,437 3,278,043 3,887,636 Margherita Della Valle2 260,764 1,995,330 2,366,387 Notes: 1 Margherita Della Valle's 2018 award was granted in June 2017 at a price of 223.7 pence and will subsequently vest in June 2020. 2 Reflects shares subject to outstanding awards following voluntary reduction as set out on page 112. Details of the performance conditions for the awards can be found on page 111 or in the Remuneration Report from the relevant year. Margherita Della Valle's 2018 award was granted prior to her appointment to the Board and is subject to adjusted free cash flow only. 113 Vodafone Group Plc Annual Report on Form 20-F 2020
Annual Report on Form 20-F 2020 Annual Report on Remuneration (continued) Share options The following information summarises the Executive Directors' options under the HMRC approved Vodafone Group 2008 Sharesave Plan (`SAYE'). No other Directors have options under any schemes and, other than under the SAYE, no options have been granted since 2007. Options under the SAYE were granted at a discount of 20% to the market value of the shares at the time of the grant. No other options may be granted at a discount. Options granted during the 2020 financial year Options exercised during the 2020 financial year Options lapsed during the 2020 financial year At 1 April 2019 or date of appointment Options held at 31 March 2020 Market price on exercise Option price Date from which exercisable Number of shares Number of shares Number of shares Number of shares Number of shares Gain on exercise Grant date Pence1 Expiry date Pence Note: 1 The closing trade share price on 31 March 2020 was 113.00 pence. The highest trade share price during the year was 165.24 pence and the lowest price was 98.02 pence. At 30 June 2020 there had been no change to the Directors' interests in share options from 31 March 2020. Other than those individuals included in the table above, at 30 June 2020 members of the CGernotruipc'aspElcxeucnuttiilv1e2CMomaym2i0tt1e9e hwehledroepsthioenrsetfaoirn5e2d,f2e4e2s oorfd£in1a1r,y27s0ha(r2e0s1a9t: p£r6ic6e,6s5r1a)n.gPinagy ifnrotmhe1w02id.6erpceonncteextot F18ai9r.2papyenatceVpoedraofordneinAarsypsahratroef, iwtsitrhevaiweweigohf teexdeacuvetirvaegereemxuernceirsaetipornicaerroafn1g4e0m.7enptes,ntcheepCeromormdiinttaereytsahkaerseaecxceorucnistaobflethaet pdaaytepsoralincgieisnginfrpolmace1aScerpotsesmthbeerw2i0d2er0btous1inMesasr.cThh2is02in5c. lMudaersghcoernistiadDereinllga tVhaelsletr,uHcatunrneeosfAremmetusnreeirtaetrio, nAlodfofeBriinsgios,aAt enatócnhiolevCeoliomfbtrhae, AbuhsmineedssEtsosaemns,uSrheatmheereel iJsoaossutrbo,nVgirnaotdioKnaulme faor,r RhoowsempaacrkyaMgeasrteivno, lJvoeakacimroRssetihteer,daifnfderSenertpleilvTelismoufrathyehoerlgdannoisoaptitoionn. sDautri3n0gJtuhneey2e0a2r 0th. eLCososmomf oitftefiecewpaasyumpednattesdOothnehrothwanreammuonuenratstioalnreaardrayndgiesmcleonstesdwinerperiboerinygearrevreiepworetds,ancorolsosssthoef bouffsiicneespsatyomeennstusrwe ethreeymfaudlleydaulriginngedthwe iytheaoru. rPsatyrmateegnyts, tsoupppasotrtDedireocutroprsurDpuorsien,gatnhdec2e0le2b0rfaitneadnocuiarlsypeirairt.LTohred CMoamcLmaiuttreien wreacseiavlseod ibnefnoermfitepdaoyfmreecnetsntinstreepsspetackt eonf tsoeceunrhitayncceosotsurasglpoebrahl iasncnounatlrafactiruaplaayrrreavnigeewm,einntcsl.uTdhinegsehocowstcsoenxdcietieodnesdaonudrpdaeympoinsiimtioisntsharcersohsosldouorf o£p5e,0ra0t0iopn.sa.haanddb, einecnluredviinegwtehde.tTaxhepaCiodm, wmeirtete£e2w3a,5s1i3nf(o2r0m1e9d: £w2h3e,1re86th).eFkeeeysfroectauisnaerdefaosrweexrteerannadl nwohna-teaxcetciuotnivs ehaddirebceteonrsahgirpeseEd xloeccaultliyvetoDiimrepclteomrsenmtaaynyhorledqupiorseidtioandjsuisntmotehnetrs.cIonmapdadniiteiosnastonboeni-negxeaccuotirveepdriinrecciptolersoafntdhereCtaoimn mthiettfeeee,st.hDerueriinsga tchleeayrecaurletunrdeedin3o1uMr baurscihne2s0s2o0fNenicskurRinegadwseeorvffeedracsoma npoenti-teivxeecauntdivfeaidripreacytotrooanll tehmepblooayredeos.fOBuoroakpinpgroHacohld,iancgrsosIsnco.uwr hbeurseinheessr,eitasignueiddefedebsyofoUurSs$ix29p4r,i4n2c4ip(le2s01w9h:iUchSa$r3e3s5e,0t 0o0u)t.oMvearrlgehafe.riNtaicDkeRlleaaVdaSlAleYseErvMedara2s0a1n7o4n,8-e5x4ecuti4v,e85d4ire1c5t4o.r5o1nAthper 2b0o2ar2dSoefp
2022 SAYE Jul 20178,438 8,438 177.75 Sep 2022 Feb 2023 Total13,292 13,292 114 Vodafone Group Plc
Overview Strategic Report Governance Financials Other information Free from discrimination Ensure a good standard of living committed to providing a good standard Provide b Open and their pay. Stakeholder engagement The Committee considers all stakeholder groups when setting executive pay including: decisions on executive pay are made within our wider business context. We engage and fully considers all feedback as part of the review process. This year we started our when they issue consultations on proposed changes to legislation/reporting guidelines. pay in the wider market. The Committee believes that through transparent reporting and UK Gender Pay Gap reporting For the last three years, we have published our UK Gender Pay Gap in line with the statutory UK methodology. We are aware that the nature of the statutory calculation means our UK Gender Pay Gap will fluctuate year-on-year, influenced by changes in our business structure and the percentage of men and women at all levels and positions. Notwithstanding this, through our commitment to embed diversity into our culture, with Inclusion for All being a key pillar of our purpose, we aim to reduce the gap over time. Our initiatives aim to support all women across different roles, areas, and geographies of our business and will, over time, reduce our spoeucriefixceUcuKtivGeesn),dgelroPbaayl aGnanpua(wl pheiochpltehsisuryveeayr wanadsdciaglictuallapteladtfaosrm10s.9%alloaf dwehcircehasgeivfreoomuropuer opprlioerthyeeacrhfaingcueretoofvo1i6c.e1%th)e.irTohpeienxioisnteonnceanoyf aarUeaKofgeinntdeerresptay ignacpluidninogurexbuesciunteivses ipsapyr.i6mtarrainlyspaacreonntsWequitehnaceseorfiems oorfeumseernfrtiheanndwlyogmueidnehsoalnddinagnsaennniouraol Rr sepweacridalSistta,taenmdetnhte,rwefhoircehhhieglhpeer-xppaliadin, rooulersp. eWopelere'scopganyispeacthkeagpersogarnedssowutelinareethmeavkainlugebouft tahpepirreccoiareteptahyerpeaicskmagoer,ewtoe benesduorneet.haFtuortuhrepredoeptaleilsunodfeorusrtainnditiIantiavdedsitiinonthtihs eayreaal,socarseecestiuvdeimesofnrtohmlyoourrwcoeellkelaygupeasy,slainpds kanedy sataptaiystmicesnctasnchbeedfuoluen. d5 oenneofuitrsdfoerdiaclaltOedurUgKloGbaelnsdtearndPaarydGisaptowoeffbepraaglel oounrwpweowp.lveoldifaefoinnseu.craonmc/euakn-gdeancdceers-spatoy-egiathpe. rWCiodmerpsaoncyieotrySTthateeCporomvmidiettdeeheisalftuhlclayraewanardeptehnastisooncipertoyvhisaisogn.roGwlonbianlclyre,aastinVgolydacfoonnece, ranlel dneawbomutoethxeercsuatirveeoafcfetirveed eantgleaagsetm16enwt ienekesxpfulalliynipnagidbomthattehreniotypelreaatvioenaondf, caannd rreattuiornnatolewfoorr,kefxoercufotiuvredpaayys daewcieseiokn, sp,atirdusfitviendthaiyssafroerathcaenfibrestrseibxumilto.nGthosv.eArnllmneonnt-TbihrethCinogmpmaritttneeersacatrieveolfyfeernegdaagtelseawstitthweoxtwereneaklspfruolflyespsiaoidnaplabroendtiaels/lgeoavveer. nomurensut cdceepsasretms AenlltsoSurhapreeohpolledeshrsouTlhdehCavoemtmheittoepepvoartluunesitythteoaschtaivree ipnarotuicripsuacticoenssofbyoubresinhgareelhigoilbdleerstodurercinegivoeusrocmonesfuolrtmatioofnspecrofnosrmulatantcioenreilnaNteodvpeamy,bee.rg2. 0a1b9o(nfuosr,tshheaJrueslyo2r0s2al0esAiGncMen)ttiovee.n3suWreeawlloprakrtwieisthhathdeaidnedqeupaetnedteimnteofrogranenisgaatgioenm, eFnati.rCWoallgeeagNueetswTohrke,Ctoomasmseitstseehoiswfuolulyr pbaryiecfeodmopnarpeasytoartrhaeng"leimvienngtswaacgreo"ssintheeacbhusoinf eosusrtmo aernkseutrseaasnwyewairthe oouf rliveminpglofoyreeosurthpreooupglhe aanvdartiheetiyr ofafmmielya.n2s iOnculrupdainygshEomupldlonyoetebFeoaruffmecst,eTdobwyngHenadllerm, aeegtei,ndgissa(ibnicliltuyd,ignegnwdeitrh
identity and expression, sexual orientation, race, cultural background or belief. We annually compare the average position of our males and females against their market benchmark, grade and function to identify and understand the differences. competitive The pay of our people is reflective of their skills, role and function and also the market data. We annually review the pay of each person and actively manage any who fall below the market competitive range. 115 Vodafone Group Plc Annual Report on Form 20-F 2020
Annual Report on Form 20-F 2020 Annual Report on Remuneration (continued) Relative spend on pay The chart below shows both the dividends distributed in the year and the total cost of remuneration in the Group. For more details on dividends and expenditure on remuneration for all employees, please see pages 174 and 204 respectively. CEO pay ratio The following table sets out our CEO pay ratio figures in respect of 2020 and 2019: Year CEO Single Figure Method 25th percentile pay ratio Median pay ratio 75th percentile pay ratio 2020 £3,714k Option B 118:1 73:1 47:1 20191 £4,359k Option B 154:1 107:1 56:1 Note: 1 The CEO single figure used in the calculation of the 2019 ratios reflects a blended figure for Vittorio Colao and Nick Read, recognising the change in incumbency for the role during this year. Year Supporting information 25th percentile pay ratio Median pay ratio 75th percentile pay ratio 2020 Salary £28.0k £42.8k £65.0k Total pay and benefits £31.3k £51.1k £78.6k 2019 Salary £23.1k £36.4k £65.0k Total pay and benefits £28.3k £40.8k £78.2k The calculation methodology used reflects Option B as defined under the relevant regulations. In line with the relevant regulations this utilises the most recently collected and disclosed data analysed within our Gender Pay Gap report, with employees at the three mquoarretialpespriodpenritaitfeietdhafrnotmo athlliseamnpalloyyseisesa.nIdntlhienier wreisthpetchteivreegsuinlagtlieonfisg,utrheevtaalbuleesbceallocwulcaatelcdu. lTaoteesnthsuerpeetrhciesndtaagtaeacchcaunrgateeliny rthefeleCchtsieifnEdixveicduutailvsea'st sruemchunqueraarttiiolens,btyhecosminpgalerinfigguNreicvkaRlueeasdf'osr2i0n2d0ivriedmuaulnseirmatmioendiwatitehlyhaisbo2v0e19anredmbuelnoewrattihoenidetnhteifliaetdteermopf lwoyheicehapt aeratclyh rqeufalerctitlsehwisitahrirnanthgeemGeenndt ears PCahyieGf aFpinaannacliyaslisOwffeicreeraplsroiorretvoiehwiseadp. pTohiinstmyeeanrtoausrCrahtiieofsEdxeeccruetaisveedownh1enOvctioebweerd2o0n18a.yDeuare-oton-thyeeatrimbiansgiso. Tf thhiisswcahsanpgaertilyn rdorlive,etnhibsyytehaer'mseftihgourdeoslosghyowrehquigihreedr cfohranoguers2t0h1a9nrnaotirom, walhiinchrewspaescat obflethnederdolfeigoufrCe hoifefouErxceucrurteinvet C(ahsieitf iEsxneoctuativliekea-nfdorh-liiskperecdomecpeasrsiosro.nI)n. Tnohrims iaslsyimeairlsarwteoehxopwecttheth2e0r1a9tiofisgtuorebsesphroimwaerdilaysdigrinviefnicabnyttdheecvreaalusaet,idouneotfothheowlonNgi-ctke'rms 2i0n1c9enftiigvuereth(awt hisicihncalsudsteadteidn athbeovCehiinecflEuxdeescuatniveel'esmseinngtloeffpigauyreinforerstpheectyeoafrh. iCshparnevgieoiunstrhoeleC)hwieafsEbxeeincgutcivoem'spareremdutnoeara2ti0o1n8bfeigtwureeenw2h0ic1h9raenfldec2t0e2d0aIfnultlh-eyetaabrlCehbieelfoEwxweceustihvoewfigthuerepeinrcreenstpaegcet cohfahnigseprinedtehceeCsshoire.fNEixcekc'ustsiavlea'rsyrehmasunnoetracthioanng(esadlasirnyc,etahxiasbalpepboeinnetmfitesnatntdo athnenuroalleboofnCushpieafyEmxeenctu)tbiveetw. Peeerncethneta2g0e1c9haanndge20fr2o0mfi2n0a1n9citaol 2y0ea2r0sOcothmepraVreoddatofotnheeGavreoruapgeemfoprlooytheeers VemodpalofoyneedGinrothuepUemKpIltoeymeeCshwiehfoEaxreecmuteivaesuBreadseosnaclaormy p1a0r.a9b%le5b.u1s%inTesasxaobbljeecbteivneesfiatsnd44w.8h%o h0a.1v%e bAeennnueamlpbloonyuesd 1in8.t2h%e U30K.8s%incRee2la0t1iv9e(pimerpcoartpaintac)e. Vofosdpaefnodneonhapsaeymmplo6y,0e0e0s b5a,2se6d7 a5l,l4a6r2ou5n,0d0t0he4,w02o2rld4,a0n0d0 s3o,0m0e0o2f,3th1e7se2,i0n0d0iv1id,0u0a0ls0w20o1rk92in02c0o2u0n1tr9i2es02w0itDh ivsetrriybuhtiegdhbinyflwataiyono;ftdhievriedfeonredsaOcvoemraplalreixsopnentdoitVuoredaofnonreem'suUnKer-abtiaosnedfoGrraolul pememplpolyoeyeese1s1is6
Vodafone Group Plc
Overview Strategic Report Governance Financials Other information Assessing pay and performance In the table below we summarise the Chief Executive's single figure remuneration over the past ten years, as well as how our variable pay plans have paid out in relation to the maximum opportunity. This can be compared with the historic TSR performance over the same period. The chart below shows the performance of the Company relative to the STOXX Europe 600 Index over a ten year period. The STOXX Europe 600 Index was selected as this is a broad-based index that includes many of our closest competitors. It should be noted that the payout from the long-term incentive plan is based on the TSR performance shown in the chart on page 111 and not this chart. ce Europe 600 Annual Bonus TI average 45% Notes: 1 Reflects the single figure in respect of Vittorio Colao for the period to 30 September 2018. 2 Reflects the single figure in respect of Nick Read for the period from 1 October 2018. 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Ten year historical TSR performan Growth in the value of a hypothetical 100 holding over ten years Vodafone Group STOXX index 250 235 226 225 195 208 201 196 200 124 108 139 107 157 124 147 180 158 185 185 159 172 132 175 150 125 100 100 75 Financial year remun for Chief Executive a L eration verage 51% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Single figure of total remuneration £'000 7,022 15,767 11,099 8,014 2,810 5,224 6,332 7,389 2,7401 /1,6192 3,714 Annual Bonus (actual award versus max opportunity) 62% 47% 33% 44% 56% 58% 47% 64% 44% 52% Long-Term Incentive (vesting versus max opportunity) 31% 100% 57% 37% 0% 23% 44% 67% 40% 50% 117 Vodafone Group Plc Annual Report on Form 20-F 2020
Annual Report on Form 20-F 2020 Annual Report on Remuneration (continued) 2020 remuneration for the Chairman and Non-Executive Directors Salary/fees Benefits1 Total 2020 £'000 2019 £'000 2020 £'000 2019 £'000 2020 £'000 2019 £'000 Notes: 1 We have been advised that for Non-Executive Directors, certain travel and accommodation expenses in relation to attending Board meetings should be treated as a taxable benefit. The table above includes these travel expenses and the corresponding tax contribution. 2 Salary/fees include an additional allowance of £6,000 per meeting for Directors based outside of Europe. 2021 remuneration Details of how the Remuneration Policy will be implemented for the 2021 financial year are set out below. Prior to reviewing executive remuneration arrangements the Committee was fully briefed on remuneration arrangements elsewhere in the business. This included a detailed discussion on the structure of remuneration offerings at each level of the business and how pay at these levels is determined. The Committee also considered the wider external context in light of the developing COVID-19 situation, and the commitments made to our wider employee population. The cumulative effect of these discussions was that the Committee was able to make decisions in respect of executive remuneration within the context of how, and appreciating the rationale for why, remuneration arrangements evolve across the different levels within the organisation. 2021 base salaries In March 2020 the Committee reviewed executive remuneration arrangements against the following comparator groups: 1) A EuroTop peer group constituting the top 50 European companies (excluding financial services companies) and a few other select com1p1a5n1i1es5r2e3le1v1a3n8t 1to16thMe tieclhceol sDeecmtoarr;éan(adp2p)oTinhteedF1TSFEeb3ru0a(reyx2cl0u1d8i)ng11f5in1a1n5ci1a1l1s7er1v2ic6e1s3c2oDmapmaneieCsl)a.rFaoFlulorwsein1g15th1i1s5re3v2ie1w18, t1h1e7CRoemnemeitJtaeme easg2re1e3d3t1h3a9t t1h1e1s7al1a4ri4e1s5f6orMbaortihatAhemCpharieofMExoeracluetdivaeManardtiCnehzie1f1F5in11an5c1ia4l1O8 f1f2ic9e1r3w3oDuladvirdemNaisinh u1n4c0h1a4n0g3e1d3a7t:171C1h7ie7fDEaxveicduTtihvoe:deNyic(kapRpeoaidnt£ed1,105S0e,p0t0e0m; baenrd201C9h)ie6f7Fin1a9nc8ia6lOFfofircmere:rMNaorng-hEexreitcauDtiveellaDViraelclteo£rs70S0a,m00J0o.nTahh2e C(roetmirmeditt2e3eJfuulryth2e0r1d9e)te5r0m1i5n1ed61th5a5t6s1al6a6riTesotfaolr1E,x7e8c0u1t,i7v4e4C1o7m92m0i0tte1e,9m59e1m,b94er4s1w1i8llVaolsdoarfeomneaiGnruonucphPanlcged. Pension Pension arrangements for both the Chief Executive and the Chief Financial Officer will remain unchanged at 10% of salary, in line with the maximum employer contribution level for the wider UK population. Chairman Gerard Kleisterlee 650644 5386 703730 Senior Independent Director Valerie Gooding 165165 57 170172 Non-Executive Directors Sanjiv Ahuja (appointed 9 November 2018) 11545 3 11845 Sir Crispin Davis
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Toihnigs pinrfoocremssatfioorniidseinntcifoyripnogr,aetevdaliunattointghiasnDdirmecatnoargs'inrgepthoertCboymrepfaenreyn'scep.riRnecsippaolnrsiisbkilsit(ywshtiacthemcaenntbAe sforueqnudiroendpuangdeesr6t2hetoD7T1R).s,CaorsptaotreamteeGntomveardneanbcyethSetaBteomaredntreTghaerdCinogrptohreatpereGpoavraetrinoannocfetShteatfeinmaennctiasletsttiantgemouent thsoiws stehteoCuot monpapnaygecso1m2p5liaensdw1i2th6twhehiCchodaelsaonpdrwovhiidcehsidnectlauidlsesreagdaerdscinrigpttihoendoisfctlhoesumreaionffienaftourrmesaotifonoutroitnhteerCnaolmcpoanntyro'sl aanuddirtiosrkamndanmaganemageenmt eanrrta'sngreepmoernt tosnininrteelrantaiol ncotonttrhoel ofivnearnfciinaalnrceipaolritninfogrmpraotcieosns. iGsosientgocuot nocneprnagTehse7g2otiong12c0o.nTcehrenisntfaotremmaetniot nrerqeuqiureirdedbybythDeTLRist7in.2g.6RRulceasnabnedftohuenUdKinCthoerp"oSrhataereGhoovldeerrnainnfcoermCoatdioen("thsee`cCtioodneo'n) ipsasgeetso2u4t 8intoth2e5"4D. iAredcetosrcsr'ipsttiaotnemofenthteofcoremsppoonsistiiboinlitayn"doonpepraagteio1n2o6f. tShyesBteomarodfarnisdkimtsaCnoamgemmiettneteasnidncilnutderinngaltchoenBtrooalrTdhDeiBveorasritdyiPs oreliscpyoinsssibelteofuotromnapiangtaeisni8n7gtoa r8i9sk. TmhaenCagoedmeecnatn tbheeivr ioefwfiecde.iInnfaudlldaittiofrnc,.owrge.muka.inSttarainteegdica RDeirpeocrttoTrsh'eanSdtraotfefgicicerRs'elpiaobrtiliistyseitnosuurtaonncepapgoeliscy6 ttohr7o1ugahnoduitstihnecoyerpaor.raNteedithinetrootuhrisinDdiermecntiotrys'norerptohretibnysurreafnerceenpcreo.vDidireesctcoorvsearnidn tthheeirevinetnetrethsatst Ta hDeirDecirteocrtiosrsproofvtehne tCoohmavpeanayctwedhodissehrovneedsdtluyroinrgfrtahuedfuinleanntclyia.lDyiesacrloesnudreeds r3e1quMiraerdchun2d0e2r0LainsdtinugpRtoutlehe9.d8a.t4eTohfesiignnfionrgmtahteiofninoanncthiaelasmtaoteumnteonftsinatreeraesstfcoallpoiwtasli:sGederaanrdd tKhleeitsreteartlmeee,nNt oicfktaRxeraedli,eMf caargnhbeeriftoauDnedllianVnoatleles,5Saanndjiv6Atohtuhjea,cSoinrsCorliidspaitnedDfainvaisn,cMiailcshtaetleDmeemntasrére, sDpaemcteivCellya.raTFheurrseem, VaianlienrgiedGisocloodsiunrge,sRreenqueeireJadmbeysL, AistminpgarRouMleo9r.a8l.e4daa,reDnaovtidapNpilsihca, bSlaemtoueVl oJodanfaohn(es.teCpappeidtaldostwrunctounre23anJdulryig2h0ts19a)ttaanchdinDgavtoidshTahroedseAyll(aipnpfoorimntaetdioonnr1elaSteinpgtemtobtehre2C0o1m9)p.aAnys'usmcmapairtaylosftrtuhcetururele, srirgehltastiantgtatcohtihneg atoppsohianrtems,ednitvaidnednrdesp,ltahceempoelnitcyoftoDrierepcutrocrhsaasnedthDeirCeocmtoprsa'npyo'swoewrsncsahnabreesfaonudnddeotnaiplsagoef o2t5h0e.rDsheatarielhsoolfdeDriirnecfotormrsa' tiinotneriessctsonintatihneedCoonmppaagneys's2o4r8dtiona2r5y4s.hCarheasn,goeptoifoncos nhterlodl oDveetar iolsrdoifncarhyanshgearoefs,cionntetrroelstpsroinvisshioarnesoinpttihoensCaonmdplaonnyg'-sterremvoilnvcienngticvreedpiltafnascailrietiessetaoreutseotnopuatgiensn9o6teto2212"0C.aDpiitrealctaonrds'ficnoannfcliicatlsroisfkinmtearneasgt eEmsteanbtl"i.shInefdowrmitahtiinonthoenCaogmrepeamneynitssabeptrwoceeendutrheefCorommapnanagyinangdanitds Dmiornecittoorrisngprcoovnidfliincgtsfoofr icnotmerpeestnfsoartiDonirfeocrtolorss.sDoeftoafiflsicoefotfhiesmpprloocyemduernet a(irnecsleutdoinugt odnetpaialgseo8f 8c.hDanigreecotofrcs'onintrdoelmpnroitvieissioInnsacincosrhdaarnecsechweimtheos)urisAsretticoluetsoonf Apasgseosci1a0ti6onanadnd10to7.thSeubejxetcetnttoptehramt,itttheedrebyarleawno, Dagirreecetmoresnatsrebegtrwaneteendtahne iCnodmempnaintyy afrnodmittsheemCpolmoypeaensypirnovreidsipnegctfoorf clioambiplietnysiantciounrrfeodralossasroefsuolftfiocfe of employment that occurs because of a takeover bid. Dividends Full details of the Company's dividend policy and proposed final dividend payment for the year ended 31 March 2020 are set out on page 39 and note 9 to the consolidated financial statements. Sustainability Information about the Company's approach to sustainability risks and opportunities is set out on pages 40 to 51. Also included on these pages are details of our greenhouse gas emissions. Political donations No political donations or contributions to political parties under the Companies Act 2006 have been made during the financial year. The Group policyciosntthaaint snodeptaoillisticoafllidkoenlyatfiountusrbeedmevaedloepomr epnotlsitwiciatlheinxptheendGitruoruepi.n1c2u2rrVedo.dFaifnoanneciGalroriuspk Pmlcanagement objectives and policies Disclosures relating to financial risk management objectives and policies, including our policy for hedging are set out in note 22 to the consolidated financial statements and disclosures relating to exposure to price risk, credit risk, liquidity risk and cash flow risk are outlined in note 22. Important events since the end of the financial year Details of those important events affecting the Group which have occurred since the end of the financial year are set out in the Strategic Report and note 31 to the consolidated financial statements. Future developments within the Group The Strategic Report
Overview Strategic Report Governance Financials Other information Group policy compliance Each Group policy is owned by a member of the Executive Committee so that there is clear accountability and authority for ensuring the associated business risk is adequately managed. Regional Chief Executives and the Senior Leadership Team member responsible for each Group function have ppreimrsaornysaacncdouthnetacboilnittiynufoerdeenmsuprlionygmceonmt polfiaanncyeonweitihncaullrrGinrgouapdpiosalibciileitsybwyhaillleoeumr pmloarykeedtsbyanuds.enTtriatiiensi.ngO,ucraGrereorudpecvoemlopplmiaenncteatnedamproamndoptioolnicoypcphoarmtupniiotiness saureppeoqrutatlhlye papoplilcieydofwonrearlsl oaundr elomcpallomyeaersk,ertesgianridmlepslsemofednitsinabgilpiotyli.cOieusradnidscmloosnuirteosrirneglactionmgptoliathnecee.mAplllooyfmtheentkoefywGormouepnpionlsiceineisorhamvaenbaegeenmceonntsroolliedsa,tdeidvienrtsoityth,eemVpoldoayfeoeneenCgoadgeemofeCntoanndducptowlichiiecshaarpepsleietsotuot aolnl epmagpelsoy5e6etsoa6n1d.tBhoysOe rwdheroowf othrke fBooraorrdo/ns/bReohsaelfmoafryVModaarftoinneR.oItsesmetasroyuMt tahretisntaGnrdoaurdpsGoefnbeerhalavCioouunrseexlpaencdteCdoinmrpealnaytioSnectoreatareryas2sJuuclhya2s0i2n0si1d2e3r dVeoadlianfgo,nberiGberoryupanPdlcraAisninnugacloRnecpeornrtsotnhrFoourgmh t2h0e-Fw2h0is2tl0e blowing process (known internally as Speak Up). Branches The Group, through various subsidiaries, has branches in a number of different jurisdictions in which the business operates. Further details are included in note 33. Employee disclosures Vodafone is an inclusive employer and diversity is important to us. We give full and fair consideration to applications for employment by disabled
AnthneuayleRarepwoerrteo: n"BFaosrims o2f0p-Fre2p0ar2a0tiRone"porertliantginogutroftihneanimciaplapcterffinoarmncainacl eyeleafrtabnladnikn cnaosthe f2l0ow"Lferoasmeso"pwerhaitcinhg1R25eDpoirretsctoofrsI'ndsteapteemndeenntt114356N1o5t4es2t.oRtheveecnounesodliisdaagtgerdegfiantaionncilaelfsttbaltaenmkeAntcs:c2o3u1nTtihnigs Fpairgmesis18in8te1n9t.ioCnaaslhlyaonfdrceaspshonesqibuiilviatyle1n4t5s11.5B8a3s.isOopfepraretipnagraptrioonfitC/(aloshssf)lloewftsblleafnt kblsatnakte1m2e7nRtsi:sk19m2it1i9ga4ti2o1n.IBncoorrmoewsintagtsem23e3ntT18h8is1p8a. gReecisoinnctielniattioionnalolyf n1e4t123C1oTnhsioslpidaagteedisininctoemnteiosntaatlelymRenetgfisintearnecdinPgucbolisctasn2d2s. eCgampeitnatlaalnadnaflinysainscaicatlivriistikesm2a3n2aTghemisepnatg1e6i7s 1in7t2en6t.ioTnaaxllaytio1n417C. oDnissocolindtaitneudefdinoapnecriaatli1o5n9s4l.eIftmbplaainrkmoefntcolomssperseh1e8n9s2iv0e. Linecaosemse223336ThTihsispapgaegeisisinitnetnetniotinoanlalylly1616452.CInovnessotlmideanttedinsctoamteemaenndt oleffftinblaannckia1l4p1oCsiotinosnolhideladtefdorstsaatleemmenantEamgepmloeynetecoremmpuennesraattiioonn123754T1h7i4s 8p.agEearinsiinngtsenpteiornsahlalryea9n.dEaqsusiettys dainvdidleianbdislitlieefst b2l0a3n2k3o. fDcihreacntgoerss ianndeqkueiytyleFfitnbalnacnikal1p4o3sCitoionnso2li3d6aTtehdisstpaategme eisnti2n0te4n2t4io.nEamllypl1o4y4eeCso2n3s6oTlihdiastpedagsetaitseminetennttoiofncaalslyh f2l0o5w2s5b. ePnoesftietsm1p7l5oy1m77en1t0l.eIfnt tbalnagnikbl2e3a7sTshetiss 2pa0g9e2i6s.iSnhteanrtei-obnaaslelyd epqauyimpmenetns t1117.9P1r2op. eInrtvye,sptmlaennt tasnidn Aasdsdoictiiaotneasl2d1i1s2c7lo. sAurceqsuliesfittibonlasnaknldefdtibsplaonskalasn2d3j7oTinhtisarpraagnegeismienntetns t2io1n4a2ll8y. 1C8o3m13m.iOtmtheenrtsinlevfetsbtmlaennkts232815T2h9i.sCpoagnetinisgeinnttelniatiboinliatlileys r2e3c7eTivhaibslpeasg2e1i9s3in0t.eRnteiloanteadllypa1r8ty41tr4a.nTsraacdtieonansdFoocthuesroanndclleeagra,lepfrfoeccetievdeinagnsdlceoftnbcilsaenkre1p8o5rt1i5n.gTWraedecoanntdinoutehetor preavyiaebwletsh2e1f9or3m1a.tSoufbosueqruceonntseovliednattsed23fi8nTahnicsiaplasgteatiesminetnetnstwiointhalltyhe18ai6m16o.fPmroavkiisnigonthse2m20c3l2ea. rIeArSan1d8ebaassiiesrptorimfoallroywle.ftTbolahneklp1y8o7u17n.aCviagllaetde tuopisnhfoarremcaatipointatlhsattatmemigehnttbse2i3m8pTohritsanptagtoe yisoiun,ttehnrteioenkaelylym2a2t1te3r3s.in Related undertakingsleft blank 23034. Subsidiaries exempt from audit Adoption of IFRS 16 We include detailed disclosures in note 1 of adopting IFRS 16 "Leases" in the current details our lease accounting policy. 145 For more information of impairment Impairment We include details of the 1.7 billion impairment charge recorded in respect of the Group's investments in Spain, Ireland, Romania and Vodafone Automotive in note 4 "Impairment losses". 159 For more information 1.7 billion losses Acquisitions and disposals On 31 July 2019, the Group completed the acquisition of Liberty Global's operations in Germany, the Czech Republic, Hungary and Romania. On the same day, the Group completed the sale of 100% of Vodafone New Zealand Limited. On 31 March 2020, Vodafone Italy merged its passive network infrastructure with Infrastrutture Wireless Italiane S.p.A. See note 27 "Acquisitions and disposals" for further details. 211 For more information 124 Vodafone Group Plc
bOavlaenrvceiedwanSdtrautnedgeicrsRtaenpdoarbtlGe aonvdertnhaantciet pDroirveicdteosrst'hsetaintefomremnattoiofnrensepcoensssiabriyliftyorFsihnaarnechiaollsdeOrtshteorainssfeosrsmtahteioCnoTmhpeaDnyir'escptoorssitaioren raensdpopnesrfibolremfaonrcper,ebpuasriinnegstshme ofidnealnacniadl ssttraatteemgye.ntNseiinthaecrctohredaCnocme pwainthyanpoprlitchaebDleirleacwtoarnsdacrecegputlaatnioynlsiaabnidlitkyeteopianngyppreorpseornaicncroeulnattiinong rtoectohredAs.nDneutaalilRedepboerltoewxcaerpetsttoattehmeeenxttsenmtatdheatbsyucthhelDiaibrielicttyorcsoiunldrealraitsieonuntodethr eEinr grelisspholnaswib.iAlitciecos,rddiinscglloys,uarneyolfiainbfiloirtymtaotioanpetorstohnewChoomhpaasndye'smaoundsittroart,egdorienlgiacnocnecoenrnaannydumntaruneagoermmeinstl'esadreinpgorsttoatneminetenrtnoarl ocmonitsrsoiol novsehrafllinbaendcieatlerrmepionretdinign.aFcicnoarndcainalcsetawteitmh esnectstiaonnd9a0cAcoaunndtisncgheredcuolerd1s0CAoomfptahneyFlianwanocfiaElnSgelravnidceasnadnWd MaleasrkreetqsuAircets 2th0e00D. irescetloercsttsoupitraebplaeraecfcionuannctiinagl sptoatleicmieesnatsndfoarpepalcyhthfienmanccoianlsyisetaerntwlyh;ichmgaivkee ajutdrugeemanedntfsaairnvdieewstiomfatthees sthtaatteaoref areffaasiorsnaobfltehaenCdopmrupdaennyt;andporefstehnet Ginrfoourmp aattiothne, einncdluodfitnhgeafcincaonucnitainl gyepaorlaicnideso, finthaempraonfniteor rthloatssproofvtihdeesGrreoluepvafnotr, trhealitapbeleri,ocdo.mInpaprraebplaerianngdtuhnodseerfsitnaanndcaiballestiantfeomrmenattsiotnh;eDsitraetcetowrhseatrheerretqhueirceodnstoo:liTdahteedDfiirneactnocrisalasretaatelsmoernetssphoanvseibbleeeunndpererpsaercetdioinn1a7c2coorfdtahneceCowmitphaInniteesrnAactito2n0a0l 6FitnoapnrcoimaloRteepthoertisnugccSetsasnodfartdhse (C`IoFmRpSa'n)yasfoardtohpetebdenfeofritusoef iitnstmheemEUbearsndasAartwichleol4e oanf dthienEdUoinIAg SsoRheagvuelarteigoanrsd. TfohretDheirneecetodrssoaflswoiednersusroecitehtayt athnedcsotankseohliodladteerds,fiinnacnlucdiainl gstcautesmtoemnetsrsh,acvoenbsiesetennptrwepitahrethdeinGarcocuopr'dsacnocreewanitdhsIuFsRtaSinaasbilsesubeudsinbeystshoebIjnetcetrinvaetsi.oHnaalvAincgcotauknetninagdSvitacnedfarordms tBhoeaArdud(`iItAanSdB'R);isDkiCscolmosmurietteoef,itnhfeorBmoaatridoncotonstihdeerasudthiteorrespHoartvainngd macacdoeutnhtes,rteaqkueinsiates eanwquhiorliee,s,issofafira,r gaosvethrneinDgirtehcetoprrseapraeraatwioanrea,ntdhedriessiesmnoinraetlieovnaonft faiundaintciinaflosrtmataetmioenn(tsasmdaeyfidniefdfebryfrsoemctiloegni4sl1a8ti(o3n) ionf oththeeCr ojumripsadnicietisoAnsc.tG20o0in6g) coofnwchericnhTthhee GCoromuppa'snyb'ussianuedsistoarcitsivuitniaews,apreerafonrdmtahnecDe,irpeocstoitrisonh,apvreintackipeanl arlislkthseanstdepusnctheertyaionutgiehstatondhtahveeDtaikreecntotorsm' aaskseesthsmemensetlovfesitsawloanrge-otefrmanyviraeblielvitaynatraeusdeitt oinuftoirnmtahteioSntraantdegtioceRsteapbolritshonthpaatgthee7C1.oAmpraanngye'soafumdiittoigraitsioanwsafroerorfistkhsatfaincefodrmbyattihoenG. rosutaptearfeorinthcleuCdeodmopnanpya'gsefsin1a2n7ctioal1s3ta1t.eImneandtdsiwtiohne,ththere afuppnldiicnagblpeoUsiKtioanccoof uthnetinGgrosutapndinacrldusdheadvienb"eBeonrrfoowlloinwgesd";aanndd"Cparpeiptaalreanthdefifninaanncciaial lrisstkatmemaneangtsemonenatg"oiinnngoctoensc2e1rnanbdas2i2s,urnelsepsescittiviseliyn,atpoprthopercioatnesotolidparetesudmfienathnactiatlhsetaCteommepnantsy. Nanodtetsh2e1Garnodup22wiinllccluodnetinduiseclinosbuurseininesrse.laTtihoenDtoirtehcetoGrsroaurep'rsesopbojencstiibvleesf,oproklieceipeisnagnpdropproecreascsceosufnotrinmgarneacgoirndgsawshwicehlldaisscdleotsaeilws ritehgarerdaisnognaitbslecaapcictualr,aictys faitnaannycitailmreistkhemfainnaagnecmiaelnptoosibtjieocntiovfetsh; edeCtaoimlspoafniytsafnidnaonfctihael iGnrsotruupmaenndtseannadblheetdhgeimngtoacetnivsiutrieesthaantdthites feixnpaonscuiarlessttaotecmreednittsricsokmapnldylwiqiuthidtihtye Crisokm. pAasnnieosteAdcot n20p0a6gean1d93f,otrhteheGcroonupsohliadsaatecdcefsinsatoncsiuabl ssttaantetimalencatss,hAarntidclfein4anocfitnhgefEacUilIitAieSs.RTehgeulGatrioounp. Talhseoybaerleieavlessoirteasdpeoqnusaibtelelyfomratnhaegseyssotermmoitfigiantteersniatsl scoolnvteronlc,yfoarnsdalfieqguuiadridtyinrgistkhsetharsoseutgshotfwthoepCriommapryanpyroacnedsstehse, Gdersocurpibaenddb, ehleonwc.eB, fuosrintaeksisnpglarenansionngapbrloecsetsespasnfodrptehrefoprrmevaenncteiomnaannadgedmeteencttiTonheofGfrroauupd'sanfodroetchaesrtiinrgreagnudlapriltainesn.inTghceyDcilereccotonrssisatrseorfetshproenesiinb-leyefaorrftohreecmaasitns,teanbaundcegeatnadnidntaeglornitgy-roafntgheepClaonm. pTahneys'esgweenbesriattee. iLnecgoimsleatsitoanteimn ethnet,UcansihtedfloKwinagnddonmet
debt projections for assessment by Group management and the Board. Each forecast is compared with prior forecasts and actual results so as to identify variances and understand the drivers of the changes and their future impact so as to allow management to take action where appropriate. Additional analysis is undertaken to review and sense check the key assumptions underpinning the forecasts. Directors' responsibility statement Each of the Directors, whose names and functions are listed on pages 76 and 77 confirms that, to the best of his or her 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; 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 robust assessment of the principal risks and uncertainties that it faces. 125 Vodafone Group Plc Annual Report on Form 20-F 2020
Annual Report on Form 20-F 2020 Directors' statement of responsibility (continued) Cash flow and liquidity reviews The business planning process provides outputs for detailed cash flow and liquidity reviews, to ensure that the Group maintains adequate liquidity throughout the forecast periods. The prime output is a one year liquidity forecast which is prepared and updated on a daily basis which highlights the extent of the Group's liquidity based on controlled cash flows and the headroom under the Group's undrawn revolving credit facility (`RCF').The key inputs into this forecast are: Management's report on internal control over financial reporting As required by section 404 of the US Sarbanes-Oxley Act, management is responsible for establishing and maintaining adequate internal control over financial reporting for the Group. The Group's internal control over financial reporting includes policies and procedures that: pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of assets; free cash flow forecasts, with the first three months' inputs being sourced directly from the operating companies (analysed on a daily basis), with information beyond this taken from the latest forecast/ budget cycle; are designed to provide reasonable assurance that transactions ariemrpeaccotrdoefdCaOsVnIeDce-s1s9aroynttorapdeirnmg.itTthhee DprierepcatroartisohnaovfefainlsaonccioanlssitdaetreemdesnetnssiintivacitcieosrdinanrceespweictthoIfFpRoSte, natsiaalddoopwtendsbidyethsceeEnUariaonsdinIFcRonScalusdisinsugetdhabtyththeeGIrAoSuBp ,isanadbltehtaot creocnetiipntuseainndoepxepreantidointufroersaapreerbieoidngofmaatdleeaosnt ltywienlvaeccmoordnathnscefrwomiththaeudthaoterisoaftaiopnproofvminagntahgeemcoennstoalinddattehde fDiniraencctioarlssotaftethmeeCnotsm. Tpahnoyse; asnednsitibvointidesainndcloutdheeraddeobwt mnsaidtueristcieesn;aarniodforeCxpOeVctIaDti-o1n9s ofonrtsrhadairneghopledrefrorremtuarnncse,,sepxeccltursuimonaoufctciaosnhs caonldlaMter&alAreaccetiivvietdy.undperorvthideeGrreoausopn'sabcloellaastesuraralnsuceppreogrtaradgirnegempreenvtes,natinodnnoornt-irmeefilnyadnectiencgtioofndoefbut nmaauttuhroirtiiesesdinacthqeuiassistieosns,muesnetopredriiosdp.oIsnitiaodndoitfiothnetoGtrhoeupli'qsuaidssiteytsfothreact acsotuslpdrhepaavreead,mthaeteDriiarleecftfoerc'st ocnonthsiedefirneadntchiealasvtaaitleambielnittys.oTfhbeotlihqtuhiediGtyrofourpe'csas7t s.7hobwilsliotwn oresvcoelnvairnigoscraesdsuitmfainciglietiieths,erunmdartauwrinngascaotm3m1eMrcairaclhpa2p0e2r0i,sarnedfinmainticgeadtinorgnaoctnioenws csohmoumldertchieayl pbaepreerqiusisrueadn. cIen.rTeahcehliinqguiidtsitycofnocrleucsaisotnisonretvhieewgoeidnbgycothneceGrrnoauspseCshsmieefnFti,ntahnecDiailrOecftfoicrseralasnodcionncsliuddeerdedintheeacfihnodifnhgesrorfepthoertws toorkthpeeBrfooarmrde. dIntoadsudpitpioonrt, tthhee Gstaroteumpecnotnotinnuthees ltoonmg-atnearmgeviitsabfoilriteyigonf ethxechGarnoguepa.nAdsinnotetreedstornatpeargiessks70waitnhdin7t1h,ethfriasminecwluodrekdokfepyoclihcaiensgaens dtogtuhiedeplrininecsipaaulthroisrkisserdelaenvdanret vtoietwheedsubsytatihneabBioliatyrdo, fwoiuthr oovpeerrasitgiohntspirnovliigdhetdobfyththeeCTOreVaIsDu-r1y9RpisakndCeommicm, istetenes.itCivOitVyIaDna-1ly9sTish, escpeontaernitoiaalsismespsamcet notfs,CaOnVd IcDom-1b9inoantitohnesGthroeurepohf,aisnbceluednincgontshiadteorefda alosnpgaertr-otefrtmheggloobinagl rceocnecsesironnawssietshsmlikeenlty. TimhpeaDctisrebcetoyrosnhda2v0e2r0e.vCieownecdlutshieonliBquaisdeidtyofnortehcearsetvsifeowr tthheeGDrioreucpt,owrshhicavhehaavreeabseoennabulpedeaxtepdecftoartitohne tehxaptetchteed
ComdepsacnryibaenddinthneoGtero2u7p"hAacvqeuaisdietiqounasteanredsdoiusrpcoessatlos"c.oTnhtiensueesiunbosipdeiarariteiosnwalilelxbiestiennccleudfoedr tihnethfoereGsreoeuapb'lseafusstuesresm. Aenctcaotrd3i1ngMlya,rtchhe2D0i2r1e.ctKoersycaomnotiunnutes tcooandsoolpitdtahteedgfooirngthceosencaecrqnubiraesdiscionmppreapnaiersinagt t3h1eMAanrncuha2l 0R2e0powrteraentdoataclcaosusnettss. oAfny21in,9te4r4naml iclolinotnr,onl efrtaamsseewtsoorkf,n1o1,m78at6temr ihlloiwonwaenldl dreevseignnueeda, nhdasloinssheforerntthleimfiintaanticoinasl yinecalruodfing1t,9h9e3pomsislilbioilnitaynodfh2u0m9amn ielrliroonr,arnedspthecetcivireclyu.mDvuenritniognthoer poevreirordidcinogveorfedthbeyctohnistrodloscaunmdepnrto, ctheedruerewse, raendnomcahyanngoetsprinevthenetGorroduepte'sctinmteirsnstaaltcemonetnrotsl.oAvlesrof,ipnraonjceicatliorenpsoorftianngytheavtahluaavteiomnaotfereifaflelcytaivffeencetsesdtoorfuartuerreeapseorinoadbslyarleikseulbyjetoctmtoattehreiarlilsykatfhfeact tctohnetreoflfsecmtiavyenbeescsomofethineaidnetqerunaatel cboenctaruoslseoovfecrhfainngaensciianl creopnodrittiinogn.sTohr ebGecraouuspe'sthientdeergnraelecoofntcrooml opvliearnfcienawnicthialthreeppoorltiicnigesaot r3p1rMocaerdcuhre2s02m0ahyadsebteereinoraauted.itMedanbaygEemrnesnt t&haYsoausnsgesLseLdPt,haeneifnfdecetpievnedneesnst roefgtihseteirnetderpnuabllciconatcrcooluonvteinr gfifniarmnciwalhroepalosrotianugdaitt t3h1eMGarorcuhp'2s0c2o0nbsoalsieddatoendtfhineaunpcdiaaltesdtaItnetmerennatsl.CTohnetirroal udIint treegproarttedonFrinatmerenwaol rcko,nitsrsouleodvbeyr ftihneanCcoimalmreipttoeretionfgSipsoonnsopraigneg1O4r0g.aBnyizOatriodners ooff tthhee BToreaarddwCaoynCtroomlsmovisesriofinna(`nCciOalSrOe'p)oirntin2g01D3i.sBclaosseudreoncomnatrnoalgseamndenptr'oscaesdsuesresms Tenhte, Dmiarneacgtoerms,etnhtehCashiceofnEcxluedceudtivtheaatnindttehrenaCl hcioenftFroinl aonvceirafliOnafnficciearl hreapvoeretivnagluwaatesdetfhfeecetifvfeecatitv3e1neMssarocfhth2e02d0is.cTlohseuaressceosnsmtroelnstaenxdclpurdoecdedthuereisn,teinrnclauldcionngtrtohlossoevdeerffinineadnicniatlhreeUponrittiendgSrtealtaetsinSgetcoucrietrietasinExsuchbasindgiearAiecstionfG1e9r3m4a, nRyu,leCz1e3cah1R5e(peu),balincd,,HbuansegdaroynatnhdatReovmalaunaitaiotnh,athawveerecoanccqluuidreedd ftrhoamt thLeibdeirstcyloGsulorbeacloinntrthoelsyaenadr, as procedures were effective at the end of the period covered by this report. /s/ Rosemary Martin Rosemary Martin Group General Counsel and Company Secretary 2 July 2020 126 Vodafone Group Plc
Overview Strategic Report Governance Risk mitigation Financials Other information Mitigations for risks faced by the Group include: Managing our risks Each principal risk is assigned an executive owner who is accountable for setting the target tolerance level. The executive owner is responsible for confirming adequate controls are in place and that the necessary action plans are implemented to bring the risk profile within an acceptable tolerance. To provide adequate oversight, we report throughout the year on principal and emerging risks, and hold in-depth reviews of all principal risks at different oversight committees. Figure 1 on page 62 presents an overview of our process and governance structures, including the Audit and Risk Committee and Board. We develop severe but plausible scenarios for all risks. These scenarios not only provide insights into possible threats and points of failure, allowing us to react and adjust our strategy accordingly, but are also used for the purpose of assessing our viability (page 71). Strengthening our framework Over the course of the year, we have: Key improvement projects underway consist of: Further enhanced and driven adoption of our global risk tool, allowing us to have a single source of risk and assurance data; Enhancing our approach to assessing the impact of emerging risks by evaluating long-term scenarios; Continued to develop the link between risk and budgeting to inform the capital allocation reviews in a timely manner; Improving the way we collect and treat early signals in the internal and external environment by embedding the use of risk indicators; Implemented a process for tracking action plans to manage our principal risks; and Continuing to align with TCFD by assessing the impact of the climate -related risks and opportunities to meet future requirements; and Continued with our engagement programme to develop our global risk community. Further enhancing our risk processes reflecting lessons learned from the COVID-19 pandemic to be better prepared in the future. 127 Vodafone Group Plc Annual Report on Form 20-F 2020
Annual Report on Form 20-F 2020 Risk mitigation (continued) Global economic disruption Risk owner: Margherita Della Valle How we manage it: We have a long average life of debt which minimises re-financing requirements, and the vast majority of our interests costs are fixed. We maintain sufficient liquidity resources so that we can cope for a prolonged period of time without accessing the capital markets. Cyber threat and information security Risk owner: Johan Wibergh How we manage it: We protect Vodafone and our customers from cyber threats by continuing to strengthen global and local security controls. Geo-political risk in supply chain Risk owner: Joakim Reiter How we manage it: We are closely monitoring the political situation around our key suppliers. We are also engaging with governments, experts and suppliers to remain fully informed so that we can respond accordingly and comply with the latest regulations, economic sanctions and trade rulings. Adverse political and regulatory measures Risk owners: Joakim Reiter and Margherita Della Valle How we manage it: We address issues openly with policy makers and regulatory authorities to find mutually acceptable ways forward. Technology failure Risk owner: Johan Wibergh How we manage it: Unique recovery targets are set for essential assets to limit the impact of service outages. A global policy supports these targets with requisite controls to provide effective resilience. 128 Vodafone Group Plc
Overview Strategic Report Governance Financials Other information Year-on-year risk movement: Increased Risk category: Financial Our target tolerance: We need to take a conservative approach to managing financial risks. Year-on-year risk movement: Stable Risk category: Technological Our target tolerance: Our risk tolerance is to avoid a material cyber breach, loss of data or reputational impact. Security underpins our commitment to protecting our customers with reliable connections and keeping their data safe. Year-on-year risk movement: Stable Risk category: Strategic Our target tolerance: Werehcaovveearydoivfekreseyrmanogbeileo,f fsiuxpedplaienrdreITlatsieornvsihciepssmanudstwbee fmasatnaangde trhoebsuestc.lo12se9lyVwoditahfoonuer GprroocuuprePmlcenAtnsnpueacliaRliesptso.rWt oenhFaovrema2m0-uFlti2-0v2en0dor strategy in place across our markets to mitigate against supply chain disruption. Year-on-year risk movement: Stable Risk category: Strategic Our target tolerance: We aim to have strategies that are based on common objectives with political, policy and regulatory stakeholders so as to reduce the risk that our business will be undermined by unpredictable and disproportionate political and regulatory environments and interventions. Year-on-year risk movement: Stable Risk category: Technological Our target tolerance: Our customer promise is based on reliable availability of our network, therefore the
Annual Report on Form 20-F 2020 Risk mitigation (continued) Risk owners: Dr Hannes Ametsreiter and Vivek Badrinath Strategic transformation How we manage it: Integration specialists and local teams are implementing the many projects and activities that constitute the integration plan. We have robust governance in place to manage our joint ventures effectively. Market disruption Risk owner: Ahmed Essam How we manage it: We closely monitor the competitive environment in all markets, and react appropriately. Digital transformation Risk owners: Ahmed Essam and Johan Wibergh How we manage it: We track individual programmes against our clearly defined objectives and target KPIs throughout the lifecycle of our projects. The aim is to identify new threats then manage and mitigate them. Disintermediation Risk owner: Ahmed Essam How we manage it: We continually strive to introduce innovative propositions and services while evolving our customer experience to deepen the relationship with our customers. Our strategy focuses on simplifying our offer portfolios and accelerating our digital transformation, for a better customer experience. Legal and regulatory compliance Risk owner: Rosemary Martin How we manage it: We have subject matter experts in legal teams and a robust policy compliance framework. We train our employees in "Doing what's right". These training and awareness programmes set out our ethical culture across the organisation and assist employees to understand their role in ensuring compliance. 130 Vodafone Group Plc
Overview Strategic Report Governance Financials Other information Year-on-year risk movement: Increase Risk category: Operational Our target tolerance: Since strategic transformation is critical to our future, our tolerance for this risk is low. Year-on-year risk movement: Decreased Risk category: Strategic Our target tolerance: We aim to continue to be competitive in our markets. We are evolving our offers and adopting agile commercial models to mitigate competitive risks using simple, targeted offers, smart pricing models and differentiated customer experience. Year-on-year risk movement:WDeecsreeeaksetoRcioskmcpalytegwoirthy:aOllpaeprpaltiicoanballeOlauwr staarngdetrteogluerlaanticoen:sWineanlleoedf otourdmelaivrkeerttsh.e1s3e1trVanosdfaofromnaetiGornosupproPglcraAmnmneusalwRitehptohret oconrFreocrtmm2i0x-oFf2e0ff2i0cient systems, relevant skills and digital expertise in alignment with the original planned spend and business benefits. Year-on-year risk movement: Stable Risk category: Strategic Our target tolerance: We offer a superior customer experience and continually improve our offering through a wide set of innovative products and services. We also develop innovative new products and explore new growth areas such as 5G, IoT, convergence, digital services and security so that we continue to meet our customers' needs. Year-on-year risk movement: Stable Risk category: Operational Our target tolerance:
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Overview Strategic Report Governance Financials Other information This page is intentionally left blank 135 Vodafone Group Plc Annual Report on Form 20-F 2020
Annual Report on Form 20-F 2020 Report of Independent Registered Public Accounting Firm To the Board of Directors and Shareholders of Vodafone Group Plc Opinion on the Financial Statements We have audited the Consolidated statement of financial position of Vodafone Group Plc and its subsidiaries (the "Company") as at 31 March 2019 and the related Consolidated income statement and Consolidated statement of comprehensive income, the Consolidated statement of cash flows and the Consolidated statement of changes in equity for each of the two years in the period ended 31 March 2019, including the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of 31 March 2019 and the results of operations and cash flows of the Company for each of the two years in the period ended 31 March 2019 in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board and in conformity with International Financial Reporting Standards as adopted by the European Union. Basis for Opinion These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards requrieraesothnaatbwleebpalsains faonrdopuerrfooprimniothne. /asu/dPirtsicteowoabtetarihnouresaesCoonoapbelersaLssLuPraPnrcieceawboautetrwhohuestehCerotohpeecrsonLsLoPlidLaotenddofinn,aUncniiateldstKatienmgdenomts a7reJufnreee2o0f1m9aWteerisaelrmveisdstaastethmeeCnto,mwphaenthye'sr dauudeittoorefrrroomr o2r0f1ra4utdo. 2O0u1r9a.u1d3i6tsVinocdlaufdoendepGerrfoourpmPinlcg procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a
Overview Strategic Report Governance Report of Independent Registered Public Accounting Firm Financials Other information To the Shareholders and the Board of Directors of Vodafone Group Plc Opinion on the Financial Statements We have audited the accompanying consolidated statement of financial position of Vodafone Group Plc (the Group) as of 31 March 2020, the related consolidated statements of income, comprehensive income, changes in equity and cash flows for the year ended 31 March 2020 and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Group at 31 March 2020, and the results of its operations and its cash flows for the year ended 31 March 2020, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Group's internal control over financial reporting as of 31 March 2020, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organisations of the Treadway Commission (2013 framework) and our report dated 2 July 2020 expressed an unqualified opinion thereon. Adoption of New Accounting Standard As discussed in Note 1 to the consolidated financaiuadlisttaaltseomiennctlsu,dtehde eGvraoluupatcinhganthgeedacitcsomunettihnogdporfinaccicpoleusnutisnegdfaonrdlesaisgensifiinca2n0t1e9stdimueatteosthmeaaddeobpytimonanoafgIFemReSn1t,6a,sLweaeslel sa.sBeavsailsufaotirnOgpthineioonveTrhalelsperfeisneanntcaitaiolnstoaftetmheenfitnsaanrceitahlestraetsepmoennstisb.ilWityeobfelthieevGe rthoautpo'surmaaundaigtepmroevnitd.eOsuarrreeasspoonnasbibleilbitaysiiss ftooreoxuprreospsinainoonp. iCnriiotnicaolnAthuediGtirnogupM'satftienrasnTcihael csrtaittiecmaleanutsdibtamseadttoernsocuormamuduinti.cWateedarbeelaopwubarliecmacacttoeursntairnigsinfigrmfroremgitshteerceudrwreintht pthereioPdCaAuOdiBt oafntdhaerfeinraenqcuiiareldsttaotebmeeinntdsetpheantdweenrtewciothmrmesupneiccat tteodthoer rGerqouuirpeidntaocbceorcdoamncmeuwniicthattehdetUo .tSh.efaeudderitalcosemcmuriitttieees alanwdsthaantd: (t1h)eraeplaptleictaobaleccruoulenstsanodr dreisgculloastuiorenss tohfatthaereSemcautreirtiieasl taontdheExficnhaanncgiaelCstoamtemmiesnsitosnanadnd(2th) einPvColAvOedBo.uWr eescpoencdiaulclytecdhoaullrenagudinitg,insuabcjceocrtdivaencoer wcoitmhpthleexsjtuadngdmarednstso.fTthheePcComAOmBun. iTcahtoiosen sotfancdriatircdaslraeuqduiitremtahtatetrws edopelasnnoant dalpteerrfionramnythweaayudoiutrtoopoibntiaoinn orenatshoenacobnlesoaslisduartaendcefinaabnocuitawl shtaettehmeretnhtes,fitankanenciaasl satawtehmoleen, tasnadrewfereaereofnomt,atbeyricaol mmmissutnaitceamtienngt,thwehcerthiteicradluaeudtoitemrraotrteorrsfbrealuodw. ,Opurroavuiddiintginscelpuadreadtepoerpfionrimonins gonprtohceecdruitriecsaltoauadssitesmsatthteerrsisokrsoonftmheataecricaolumntisssotartdeimscelnotsuorfetshteofiwnhanicchiatlhsetyatreemlaeten.ts1,3w7hVetohdearfodunee tGoreorurporPolcr fAranundu,aalnRdeppeorrftoormn iFnogrmpro2c0e-dFu2r0e2s0that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our
Annual Report on Form 20-F 2020 Report of Independent Registered Public Accounting Firm (continued) Carrying value of goodwill Description of the matter As more fully described in Note 4 to the consolidated financial statements, the Group calculates the value in use (`VIU') for cash generating units (`CGU') to determine whether an adjustment to the carrying value of the CGU, and therefore, goodwill, is required. As of 31 March 2020, the Group has recorded 31,271 million of goodwill and recognised impairment losses in the year of 1,685 million, primarily in respect of its Spain and Ireland CGUs. The Group's assessment of the VIU of its CGUs involves estimation about the future performance of the local market businesses. In particular, the determination of the VIUs was sensitive to the significant assumptions of projected adjusted EBITDA growth, long-term growth rates, and discount rates. The estimation uncertainty increased at the end of the year as a result of the effects of COVID-19 on the macroeconomic factors used in developing the assumptions. Auditing the Group's annual impairment test was complex, given the significant judgment related to the assumptions described above and data used in the VIU models and the sensitivity of the VIU models to fluctuations in assumptions, particularly as it relates to the siSgpnaifiincaanntdaIsrseulamnpdtiCoGnsUtso. eHvoawluawteetahdedsreensssietdivtihtye omfatthteerVinIUoumr oaduedlist tWo efloucbttuaaintieodnasninutnhdeerasstsaunmdipntgio,nesv.aFluoarteeadcthheCdGeUsi,gwn eancdomtepsatereddththeeopcaesrahtifnlogwefpfreocjteivcetinoensssuosfecdoinntrtohlesVovIUermthoedGelrsotuopt'hsegionofodwrmilaltiimonpaaiprpmroenvtedrebvyietwhepGrorcoeusps.'sTBhiosairndcolufdDediretecstotirnsgamndaneavgaelumaetendt'tshceohnitsrtoolrsicoavlearctchueriarcryevoifewmaonfatgheemsiegnnt'ifsicbaunstinaessssumplpantiso,nws huiscehduinnddeertpeirnmtihneinVgItUhemVoIdUelos.fWthee CalGsoUass,sienscsleuddtihneg apdrojujestcmteednatsdjaupsptelidedEbByITmDaAnaggreomwetnht, tloonrgef-tleercmt thgeroewsttihmraatteeds,imanpdacdtisocfotuhnetCraOteVs.IDTo-1t9esptatnhdeedmeitce,rmbyinraetfieornenocfethtoe VthIeUnaotfutrheeoGf rthoeupr'esvegnouoedwstirlela, mwse ipneerfaocrhmmedarakuedtiatnpdrothceedCuOreVs IthDa-t1i9ncreluladteedd, raemstorincgtioonthseirns,pelvacaelutaotitnhgetehceoCnoGmUisc ifdoernectiafsietsdfaonrdeatecshtimngartkheetaalnlodcoattihoenr oexf taesrsneatls daantda laiasbaitli3ti1esMtoartchhe2c0a2rr0y.iInngavdadluiteioonf, ewaechpeCrGfoUrm. WededaolwsonsteidsteesdetnhseitmiveittyhoadnoalloygseysaopnplmieadniangethmeeVntI'Us CmOoVdeIlDs,-1as9 caodmjupstamreednttos. tWheerienqvuoirlvemedenatvsaolfuaIAtioSn3s6p,eIcmiaplaisitrminenout rofteAamssetots,aisnscisltuudsinwgitthhecmeratathinemofattihceasleaacucduirtacayctiovfitmieasn.aWgeemaelsnot'assmseosdseedl. tWheeapdeerqfouramcyedofauthdeitrpelraotceeddduirsecslotosutreesst apnrodvaisdseedssinthNeostiegn4ifoifcathnet acsosnusmolpidtiaotnesdufsineadnicniathl estVatIeUmemnotsd,eilns,pianrctliucudlianrgtphreosjeecntseitdivaidtyjudstisecdloEsBuIreTsDaAndgrthoewethst,imloantge-dteirmmpgacrot wofthCrOatVesI,Da-n1d9 doinsctohuenGt rroatueps',sfoforreexcaamstpclaesbhyflcoowms.pRareinvgentuheemRetocoegxnteitrinoanlDdaetsacrsiupctihoansoefctohneommaitctearnAdsinmduosrteryfuflolyredceassctsrifboerdtihneNreolteev2anttomthaerkceotsn.sFoloirdamteadnafgineamnecniatl'sstaastseemssemntesn, tthoef Gimropulipedrerpeocortveedrarebvleenvuaeluoef, w4e4c,9o7m4pmarielldioCnG, cUonEtBraIcTt DasAsemtsuoltfip3le,s56to3mmairllkioetnlaisntdedcopneetrrasc. tWliaebpileirtfieosrmofed2a,n60a3namlyislliisoonfatthe31
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of underlying data and evaluating the Group's use of valuation methodologies. Our procedures to assess the prospective financial information used in the valuation models, included evaluating the key assumptions discussed above, by comparison to current industry, market and economic trends and historical results of the acquired business. We performed sensitivity analyses to evaluate the impact of changes in key assumptions to the valuation of the acquired identifiable intangible assets. We assessed the appropriateness of the disclosures in Note 27 in the consolidated financial statements. /s/ Ernst & Young LLP We have served as the Group's auditor since April 2019. London, United Kingdom 2 July 2020 139 Vodafone Group Plc Annual Report on Form 20-F 2020
cAonntnruoalloRveeprofirnt aonnciFaolrrmep2o0rt-iFng20o2f0thReeCpoormt poafnIyndaelspoenddidenntoRt eingcislutedreedanPuebvalilcuaAticocnouonfttihnegiFnitremrnTaloctohnetrSohl aorveehrofldinearnscainadl rtehpeoBrtoinagrdooffthDeirLeicbteorrtsyoGf lVoboadlaafosnseetsG. rWouepaPlsloc hOapvieniaoundoitnedI,nitnerancacloCrdoanntrcoel wOivtherthFeinsatnancidaalrRdsepoof rtthinegPWubelichaCvoemapuadnityedAVccooduanfotinnegGOrvoeurpsigPhlct'Bs o(tahred G(Uronuitpe)dinStteartneas)l (cPoCntAroOl Bov),etrhfeincaonncsioallidreapteodrtisntagteams eofnt3o1fMfinaracnhci2a0l 2p0o,sbitaiosendoof nVcorditaefroianeesGtarboluipshPeldc i(nthIentGerrnoaulpC) oans torof l3--1 IMntaergcrhat2e0d2F0r,atmheewreolartkedisscuoendsoblyidtahteedCsotmatemmitetenetsooffSipnoconmsoer,icnogmOprrgeahneinssaitvioenisncoofmthee, TchreaandgwesayinCeoqmuimtyisasnidonca(2sh01f3lofwrasmfoerwtohreky)e(athreenCdOedSO31crMitearricah).2I0n2o0uarnodptihneiorne,lathteedGnrootuesp amnadinotuarinreedp,oirnt daalltemda2teJruialyl r2e0sp20ec,tesx, perfefescsetidveaninutenrqnuaallcifoiendtroolpoinvieornftinhearnecoianl. rBeapsoirstifnogr Oaspoinfi3o1n MThaercGhr2o0u2p0's, bmaasneadgoenmtehnetCisOrSesOpocnristiebrliea.foArsminadinictaaitnedinignetfhfeecatcivceominptearnnyailncgoMntaronlagoevmerefnitn'asnrceipaolrrteopnorItnintegrnaanldcfoonrtirtoslaosvseerssfmineanntcoiafltrheepoefrftiencgtivoennpeassgeof12in6t,emrnaanl acgoenmtroenl to'vsearssfiensasnmceinalt roefpaonrdtincgonincclulusidoendoinn Mtheaneaffgeecmtievnetn'essrseopforitntoenrninaltecronnatlrocolnotvroelr ofivnearnfciinaalnrceipaolrrteinpgordtiidngnootnipnacglued1e2t6h.eOinutrerrensaplocnosnitbriollistyoifscteorteaxinprseusbssaindioapriiensioinn GonertmheanGyr,oCuzpe'schinRteerpnuabl lcioc,nHtroulnogvareyr fainndanRcoiaml arenpiaortthiantgwbearseedacoqnuoiruerdafurodmit. LWibeeartrye Ga lpoubballicinacthceouynetairng(thfiermLirbeegritsyteGrelodbwalitahsstheets)P,CwAhOicBh aarnedianrcelurdeeqduiirnedthteo2b0e2i0ndceopnesnodliednattewditfhinraenscpieacltsttoattehmeeGnrtsouopf tihneaCccoomrdpaanncyeawnidthcothnestUitu.Ste.dfe1d3e%ralasnedcu1r9i%tiesoflatwotsalaannddthneetaapspsleictsa,brleesrpuelcetsivaenldy,reasguolfat3i1onMs aorfcthhe20S2e0cuarnitdie4s%anodf Erexvcehnaunegse, fCoormthmeiysesaiornthaenndetnhdeePdC. AOOurBa.uWditeocfoinndteurcnteadl our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting wpasermmaiitnptareinpeadraitnioanllomf faitnearniacliarelssptaetcetms.eOnutsrianuadcitcoinrcdlaundceedwoibtthaigneinnegraalnlyuancdceerspttaenddainccgooufnitnintegrnparilnccoipnlteros,l aonvderthfiantarneccieailprtespaonrdtinexgp, eanssdeistusirnegs othfethreiskcotmhaptaanymaarteerbiaelinwgemakandeessonelxyisitns,atcecsotirndganancedwevitahluaauttihnogrtihsaetidoenssigonf amnadnoapgeermateinntgaenfdfedcitrievcetnoersssooffthinetecronmalpcaonnyt;raonl dba(s3e)dporonvtihdeearsesaessosneadbrlieskas,saunrdanpceerfroergmarindginsgupchreovtehnetriopnroocretdimureelsyadsewteectcioonnsoifdeurneaduntheocreissseadryacinquthiseitcioirnc,uumses,taonrcdeiss.pWoseitiboenlieovfethtehactoomupraanuyd'ist pasrosevtisdtehsaat creoauslodnhaabvlee abamsiasteforiralouerffoepctinoinont.heDfeifninanitcioianl astnadteLmimenittsa.tiBonecsaoufsIenotefrintsalinChoenrternotllOimvietratFioinnasn, ciniatel rRneapl ocrotnintrgolAocvoemr fpinananyc'siailnrteeprnoarlticnognmtroayl onvoetrpfrienvaennctiaolrrdeeptoercttinmgiissstaatpermoceenstss.dAeslsigon, epdrotjoecptrioovnisdoefraenasyoenvaabllueaatisosnuroafnecfeferecgtiavredniensgstthoefruetluiarebiplietryioodfsfianraenscuibaljercetptoorttihnegraisnkdtthhaet pcroenptaroralstimonayofbfeicnoamnceiailnsatdaetqemuaetnetbsefcoaruesxeteorfncahl apnugrepsosinescionnadcitcioorndsa,nocrethwaitththgeedneegrraelleyoafcccoemptpedliaanccceouwnittihngthperpinocliipcileess.oAr pcroomcepdaunrye'ssminatyerndealtecroionrtarotel.o/sv/eEr rfninsatn&ciaYloruenpgorLtiLngP iLnoclnuddoens, tUhonsiteedpoKliicnigesdoamnd2pJrouclyed2u0r2e0s 1th4a0t V(1o)dpaefrotanienGtorotuhpe mPlacintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to
Overview Strategic Report Overview Governance Strategic Report Financials Governance Other information Consolidated income statement Financials fCorothne yseaorsleinded 3t1eMdarcihncome statement for the years ended 31 March Other information 2020 m 2019 m 2018 m Note Conssoollididaateteddstsattaetmemenetnotf ocof mcopmrephreenhseivnesiinvceoimnceome for the years ended 31 March for the years ended 31 March 2020 m 2019 m 2018 m Note Notes: 1 2 3 For further information on the amount for the year ended 31 March 2019 see note 27 "Acquisitions and disposals". Information relating to the year ended 31 March 2018 is presented under the Group's IAS 39 accounting policies. Principally includes the impact of the Group's cash flow hedges deferred to other comprehensive income during the year. Further details on items in the Consolidated statement of comprehensive income can be found in the consolidated statement of changes in equity on page 143. (Loss)/profit for the financial year: (455) (7,644)2,788 Other comprehensive income/(expense): Items that may be reclassified to the income statement in subsequent years: Gains on revaluation of available-for-sale investments, net of tax2 9 Foreign exchange translation differences, net of tax (982) (533) (1,909) Foreign exchange translation differences transferred to the income statement1 (36) 2,079 (80) Other, net of tax3 3,066 243(339) Total items that may be reclassified to the income statement in subsequent years 2,048 1,789(2,319) Items that will not be reclassified to the income statement in subsequent years: Net actuarial gains/(loss(e2s,)6o1n3)d3e,8fi7n8edInbceonmefeittapxen(esixopnenscseh)e/mcreesd,int e6t(o1f,2ta5x02)5(15,24966()3837)9(7(L0)osTso)/tparloitfeitmfsorththatewfiinllanncoitabl eyeraecrlfarsosmificeodnttointuhienignocopmereatsiotantsem(4e5n5t)in(4s,u1b0s9e)q4u,7e5n7t yLeoasrssf5o2r6th(e33fi)n(7a0n)ciOalthyeeracrofrmopmredhiesncosinvteiniunecdomopee/(reaxtipoennss7e)2(,537,54315,)7(15,69(629,3)8(9L)oTsso)t/aplrocfoimt fporrethheensfiinvaenicnicaol myeea/(re(x4p5e5n)s(e7),6fo4r4t)h2e,7f8in8aAncttirailbyuetaabrl2e,1to1:9(5O,8w8n8e)r3s9o9fAthtetripbauretanbtl(e9t2o0:)(O8,w02n0e)r2s,4o3f9the Npaorne-ncto1n,t6ro9l6li(n6g,3in33te)r1e8s7ts46N5on37-c6o3n4t9ro(lLlionsgs)in/pterorefsittsfo4r2t3he44fi5n2a1n2ci2a,l1y1e9a(r5(,485858))(379,694R4)e2v,e7n8u8e(2L4o4s,s9)7/e4ar4n3i,n6g6s6p4e6r,5s7h1arCeoFsrtoomf scaolnetsin(3u0in,6g8o2p)e(r3a0ti,o1n6s0:)(3B2a,7si7c1()3G.1r3o)scs(p1r6o.f2it5)1c4,1259.2871c3,5D06i1lu3t,e8d0(03S.1e3ll)icng(1a6n.2d5d)icst1r5ib.8u2ticonToetxapleGnrsoeusp(3: ,81B4a)si(c38,8(931.1)(34),c01(219).A05d)mc i8n.i7s8trcativDeileuxtpeedn8s(e3s.1(53,)8c1(02)9(.50,54)1c08)(.756,1c1164)1N1e4t1crVedoidtalfoosnseesGornofuipnaPnlcciAalnansusaetlsR22ep(o6r6t02)0(25075V)o(d5a2f8o)nSehGarreouopf PrelscuAltnsnoufaelqRueitpyoarct coonuFnoterdma2s0so-Fcia2t0e2s0and joint ventures 12 (2,505) (908) (59) Impairment loss4 (1,685) (3,525) Other income/(expense) 3 4,281 (148) 213 Operating profit/(loss)3 4,099 (951)4,299 Non-operating expense (3) (7) (32) Investment income5 248 433685 Financing costs5 (3,549) (2,088)(1,074) Profit/(loss) before taxation 795
Annual Report 2020 Vodafone Group Plc Consolidated statement of financial position aCt 3o1 Mnarscholidated statement of financial position at 31 March 31 March 2020 m 31 March 20191 m Note Note: 1 The comparative period results have not been restaAtecdcufomruIlFaRteSd 1lo6s"seLsea(1se2s0",.3S49ee) (n1o1t6e,71.2T5)heAcccounmsoulildataetdedofthinearnccoiamlpsrteahteemnseinvtes ionncopmagee3s21,41135to2293,501w9eTroetaapl patrtorvibeudtabbylethteoBowoanredrsofofDtihreecptoarresnatn6d1a,4u1th0o6ri2s,e2d1f8oNr iosnsu-ceoonntro2llJiunlgyi2n0te2r0esatnsd1w,2e1r5e1s,i2g2n7edToontailtesqbueihtyal6f 2b,y6:2/5s/6N3,i4c4k5RNeaodn-/csu/ rMreanrtglhiaebriitlaitDieeslLlaoVnga-ltleerNmicbkorRroewadinCghs2ie1f 6E2x,e8c9u2ti4v8e,6M8a5rgDheefreirtraeDd etallxalViaablilleitCiehsi6ef2F,0in4a3n4ci7a8l OPoffsitceemr Nploony-mcuernrtebnet naesfsiettss2G5o4o3d8w5il5l110Pr3o1v,i2s7io1n2s31,63513,4O7t4h1er,2i4n2taTngraibdleeaansdseottsh1e0r2p2a,y2a5b2le1s71,65552,1P8ro9p2e,r9ty3,8p7l2an,0t3a6nd53e,q8u9i4pmCeunrrte1n1t3li9a,b1i9li7ti2es7,S4h3o2rtI-ntveremstmboenrrtoswininagsss2o1ci1at1e,s82a6nd4,j2o7in0t Fviennatnucreiasl1li2ab5i,l8i3ti1es3u,9n5d2erOptuhteor pintivoenstamrreanntgse1m3e7n9ts2282701,D85e0fe1rr,8ed44taTxaaxsasteiotsn6l2ia3b,6il0it6ie2s46,7751359P6osPt reomvipsliooynms e1n6t1b,e0n2e4fi1ts,12650 5T9r0ad9e4aTnrdadoethaenrdpaoythaebrlersec1e5iv1a7b,l0e8s511471,605,3373825,4,157602153,532,931L7i1a0b3il,i2ti7e6s hCeulrdrefnotr asasslee7ts1I,n0v5e1ntoTryo5ta8l5eq7u1i4tyTaanxdatliioanbirleitcioesve1r6a8b,l1e6287154226,846T2r1a4de2 a1n4d2oVthoedrafroecneeivGarbolueps 1P4lc1A1,n4n1u1a1l 2R,e1p9o0rtOotnheFroinrmve2s0tm-Fen2t0s2103 7,089 13,012 Cash and cash equivalents 19 13,284 13,637 32,644 39,817 Assets held for sale 7 1,607 (231) Total assets 168,168 142,862 Equity Called up share capital 17 4,797 4,796 Additional paid-in capital 152,629 152,503 Treasury shares (7,802) (7,875)
ApOrvile2rv0i1e8wbSrotruagtehgtifcoRrweaprodrt4O,7v9e6rv1i5e0w,1G97ov(e8r,n4a6n3c)e(1S0tr4a,4te6g2i)c 2R7e,p8o0r7t (F1i,n1a7n2c)ia1l,s22G7ov(3e0rn)a6n9c,e90C0o1n,s0o4li3da7t0e,d94s3taItessmueenot rorfecishsaunegoesf sinhaerqeus6ityf(C1o,7r4o1th)n1e,8y3s4ea(o9r2s)leinded31t1eM1 Sdharacrseh-btaasteemd penatymofecnhtsa7nge1s9in9 equityforth1e99ye3a4rs2e3n3dIesdsu3e1oMf maracnhdOattohreyr cinofnovremrtaitbiloenbFoinndasn1c0ials3O,8th4e8rinform ation3,A84d8ditio3,n8a4l8paTirda-ninsaccatipoitnasl2wOiththNerCcIoimnpsruebhseindisaivrieesincome(1E2q9u)ity attribu(1ta2b9l)e3t0o7o1w7n8erDsiNviodne-ncdosntrollin(g4,i0n2te2r)ests Shar(e4,c0a2p2it)a(l610T2r)e(a4s,u6r2y4s)hCaoremspRreethaeinnseidveloesxsepsenCsuerrency(r8e,s0e2r0v)e31,P47en7s(io33n)s Re2v4a3lu(6at,3io3n3)T4o4ta5l (e5q,u88it8y)rPesuerrcvheasseuropflutrse4asOutrhyesr5harmes11mm(1,m246m) mm(m1,2m46) m (1m,2416A) p3r1ilM20ar1c7h42,079196 a1s51re,8p0o8rte(8d,641,709)6(110552,,855013)(279,8,67559) ((111,160,722) 51),22297,228743(712,2,20050) 11,,252179 27133,76129,2Is1s8ue1,o2r2r7ei6s3s,u4e45ofNshoaterse:s61 2 (S1e,7e4n1o)te1,18782"C(1al2l7ed) up shar1e4cap1it4alS"h. aInrec-lbuadseesdsphaaryempernetms7ium1,3c0apitalreserve1,3c0apit1a3l0reTdreamnspatciotinornesswerivthe,nmone-rgcoerntrreoslelirnvge ianntdersehsatsre(-"bNaCseId")pianysmuebnsitdrieasreiervse. The8m05erger rese8r0v5e w31a1s 1d,e1r1iv6edDifsrpoomsaalcoqfusisuibtisoindsiamrieasdepriorto 31M arc(7h6290)0(476a9n)dDsuivbisdeeqnudesntlyall(o3c,9at6e1d)to additi(o3n,9al61p)ai(d3-0in6)ca(4p,i2ta6l7o)nCaodmopprteiohnenosfivIFeRinSc.oTmhee curren2c,4y3r9es(e1r,v8e52is) (u7s0e)dto(3re3c0o)r1d8c7u2m1u2la3t9iv9ePtruarncshlaasteioonfdtirfefaesruernycesshaornest8heass(e1t,s7a3n5d) liabilities(o1f,7f3o5re)ign(1o,p7e3r5a)ti3o1nsM. Tahrcehc2u0m1u8laatsivreeptorarntesdla4ti,o7n96di1ff5e0r,e1n9c7es(8a,r4e6r3e)c(y1c0le6d,6t9o5t)h2e7i,n8c0o7m(e1,s1t7a2te)m1e,2n2t7on(5d7i)sp6o7s,6al4o0f9t6h7e 6fo8r,e6i0g7nAopdeorpattiioonn.oTf hIFeRrSev9a9luation (s2u2rp4l)us deri2v7es(1fr9o7m) (a5c)q(u2i0s2it)ioAnsdoopftsiounbsoidfiIaFrRieSs m15a9debefo2re,4t5h7e Group's2,a4d5o7p8ti1on2,o5f3I8F1RS 3A(pRrielv2i0se1d9). Sonee1nAopteri1l 2"B01a0siasnodf cporempparriasteiosnth"efoarmdoeutanitlssaornistihneg ifmropmacrteocof gIFnRisSing16t.h3e 4Gr5o6up7's8p9re1-0exInisctilungdeesqtuhietyeqinutietryecstoimnptoheneanctqoufirtehdessuubbsoirddiainryateatdfmaiarnvdaaltuoer.yPcrionncviperatlilbyleinbcolunddesswthheicihmwpaecret ocfomthpeoGurnoduipn'sstrcuamshenfltoswisshueeddgeins twhiethyea4r,1e1n3demdil3l1ioMn naerct hga2i0n1d9e.f1e1rrRedeptoreostehnetrs cthoemiprrreehveoncsaibvlee ianncdomnoend-duirsicnrgettihoenayreyarsh(2a0re19b:uy1ba,5c5k5pmroigllriaomn mneet agnanino;u2n0c1e8d:on1,28811Jamnuilalriyon20n1et9l.oAssd)oapntidon4o0f8IFmRilSlio1n69netga(2in61(2)019:(21,6217)94m(2i5ll7io) n1 nAeptrgilai2n0;1290b18ro:ug1h,4t 6fo0rmwailrldio4n,7n9e6t 1lo5s2s,)5r0e3c(y7c,8le7d5)to(1t1h6e,9in8c6o)m2e9,s2t8a4te(m1,e2n0t5.)T1h,e2s2e72h1ed3g6e1s,9p5r7im1,a2r3il1y6r3e,l1a8te8 tIossfuoereoirgnreeisxscuheaongf esheaxrpeoss1u1r7e3o(n68fi)xedbo7rr7owSihnagrse,-bwaisthedinptaeyremset nctass7hf1lo2w5sunwin1d2in5g11t1o3t6heTirnacnosmacetisotnastewmiethntNoCveIrinthseulbisfeidoiafrtihees hedg(5e8s)andan(y58fo)r(e1i0g2n)e(x1c6h0a)nDgeivoidnennodms inal(b2a,3la1n7c)esimp(2ac,3ti1n7g)(i3n4c8o)m(e2,s6ta6t5e)mCeonmt aptrmehaetnusriivtye (iunpcotmo 2e059)(.9S2e0e) n(o97te62) 252"6Ca3p,i0t6al61an,6d9f6i4n2an32ci,a1l1r9is(kLmosasn)/apgreomfitent"f(o9r20fu)rtherd(9et2a0i)ls4. 6M5o(4v5e5m)eOntCsIin-cbleufdoerethteaxre-issu(e9o5f1)72694.01m3,i7l7li1o3n,4sh6a0re(4s6()31,,471442OmCilIli-otna)xiensAugu1st9(2101147)an(d70759)9(.810m0)ill(i4o)n(8s0h4a)reTsr(an1s,f7e4r 2tomthilelioinnc)oimn eFestbartueamryen2t019to(4s4at)isfy(t4h4e)t8w(3o6t)ra3n1cMheasrochf t2h0e2M0 a4n,7d9a7to1r5y2C,6o2n9v(e7r,8ti0b2le)(B12o0n,d34is9s)u2ed8,i3n0F8(e6b7ru9a) r1y,22207136,.2I7n9c6lu1d,4e1s01n,2il1m56il2li,o6n25ta(xLocrsesd)/iptr(o2f0it19:(48,m02i0ll)ioncre(d8i,t0;2200)1387:6(87,m64il4li)oOn CchIa-rbgeef)o. rReetparxesents(t5h9e4i)rr(e3v3o)ca2b9le0(a3n3d7n)o7n3-(d2i6s4cr)eOtiConIa-rytasxheasrebuy(b8a)ckp(4ro7g)r(a5m5)m(e4)a(n5n9o)uTnrcaendsfoenr t2o5thAeuignucsotm20e1s7ta.tIemmpeancttonad2o,0p7ti9ono2f ,I0F7R9S29,0a7n9d PIFroRfSit 15o2n,413A9 pril 220,14839an3d49IF2R,7S8816OoCnI1before tax (1,641) (94) (342) (2,077)(140) (2,217) OCI - taxes (131) 2412(95) 3(92) Transfer to the income statement (80) (80) (80) 143 143 Vodafone Group Plc Annual Report 2020 Vodafone Group Plc Annual Report on Form 20-F 2020
Annual Report 2020 Vodafone Group Plc Consolidated statement of cash flows fCor tohenyesaros elniddeda3t1eMadrchstatement of cash flows for the years ended 31 March 2020 m 2019 m 2018 m Note Notes: 1 See note 21 "Borrowings" for further details. 2 Amount for 2020 includes 273 million (2019: 131 million) of cash outflow on derivative financial instruments for the share buyback related to the second tranche of the mandatory convertible bond that matured during the year. Inflow from operating activities 18 17,379 12,98013,600 Cash flows from investing activities Purchase of interests in subsidiaries, net of cash acquired 27 (10,295) (87) (9) Purchase of interests in associates and joint ventures 12 (1,424) (33) Purchase of intangible assets (2,423) (3,098)(3,246) Purchase of property, plant and equipment (5,182) (5,053)(4,917) Purchase of investments 13 (1,832) (3,629)(3,901) Disposal of interests in subsidiaries, net of cash disposed27 4,427 (412) 239 Disposal of interests in associates and joint ventures 115 Disposal of property, plant and equipment and intangible assets 61 4541 Disposal of investments 7,792 2,269 1,250 Dividends received from associates and joint ventures 417 498489 Interest received 371 622378 Cash flows from discontinued operations (372) (247) Outflow from investing activities (8,088) (9,217)(9,841) Cash flows from financing activities Issue of ordinary share capital and reissue of treasury shares17 7 720 Net movement in short-term borrowings 2,586 (541) (534) Proceeds from issue of long-term borrowings 9,933 14,681 4,440 Repayment of borrowings (16,028) (6,180)(4,664) Purchase of treasury shares (821) (475) (1,766) Issue of subordinated mandatory convertible bonds1 3,848 Equity dividends paid9 (2,296) (4,064)(3,920) Dividends paid to non-controlling shareholders in subsidiaries (348) (584) (310) Other transactions with non-controlling shareholders in subsidiaries (160) (221) 1,097 Other movements in loans with associates and joint ventures 59 42(194) Interest paid2 (2,284) (1,297)(991) Cash flows from discontinued operations (779) (302) Tax on financing activities (110) (Outflow)/inflow from financing activities (9,352) 4,437(7,234) Net cash (outflow)/inflow (61) 8,200(3,475) Cash and cash equivalents at beginning of the financial year 19 13,605 5,394 9,302 Exchange (loss)/gain on cash and cash equivalents (256) 11(433) Cash and cash equivalents at end of the financial year19 13,288 13,6055,394 144 144 Vodafone Group Plc Annual Report on Form 20-F 2020
Overview Vodafone Group Plc Ov Strategic Report erview Strategic Report Governance Governance Financials NNootteessttooththeeccoonnsosloidlaidteadtefidnafinncaianlcsitaaltesmtaetnetms ents Financials Other information Other information This section describes the critical accounting judgements and estimates that management has identified as having a potentially material impact on the Group's consolidated financial statements and sets out our significant accounting policies that relate to the financial statements as a whole. Where an accounting policy is generally applicable to a specific note to the financial statements, the policy is described within that note. We have also detailed below the new accounting pronouncements that we will adopt in future years and our current view of the impact they will have on our financial reporting. The consolidated financial statements are prepared in accordance with International Financial Reporting Standards (`IFRS') as issued by the International Accounting Standards Board (`IASB') and are also prepared in accordance with IFRS adopted by the European Union (`EU'), the Companies Act 2006 and Article 4 of the EU IAS Regulations. The consolidated financial statements are prepared on a going concern basis (see page 126). Vodafone Group Plc is incorporated and domiciled in peErniogdlasn. dMaanndagWemaleenst(rreegguisltarraltyiornevniuemwsb,earn1d83re3v6i7se9s).aTshneecreegssiastreyr,etdheadadcrceosusnotfintghejuCdogmempaennytsitshVatosdigafnoifniecaHnotluysiem, TpahcetCthoennaemcotiuonnt,sNreecwogbunriyse,dBienrkthsheifrien,aRnGci1al4s2taFtNem, Eenntgslaanndd.tIhFeReSstriemqautiersesthtahteaDreirceocntosridsetroeaddtoopbteac"ccoriutinctainl gesptiomliactieess"thdauteatroetthheeirmpoosttenaptiparlotoprgiaivteetroistehetoGmroautepr'isalcairdcjuumstsmtaennctessi.nTthheesGerhoauvpe'sbefiennanapcipalliesdtacteomnseinsttesnintlythteoyaellatrhteoy3e1aMrs aprrcehse2n0te2d1,. uAnsleasts3o1thMerawrcihse2s0t2at0e,dm. Iannadgeetemrmenitnihnags aidnednatipfpielydicnrgitaiccaclojuundtginegmpeonltisciinesr,eDspiereccttoofrsreavnednmueanreacgoegmneitnitonar,eleraesqeuaircecdotuonmtinagk,evjaulduginegmaesnstestsanadndesltiiambialtietisesinacreqsupierecdt oinf ibteumsisnewshsecroemthbeincahtoioinces,otfhespaeccciofiucnptionlgicfyo,ratcacxoduinstpinugtejsuidngIenmdeian,t,theestcimlaassteifiocraatisosnumofpjtoioinnttaorrbaenfgoelmloewnetsdacnodulwdhmetahteerriatollyreacfofgenctisteheprGovroisuipo'nssroepr otorteddiscfilnoasneccioalnptionsgietinotnl,iarbeisluitlitesso. rIncaasdhdfitlioowns, manadnadgisecmloesnutrheaosficdoennttiinfigeednctraitsisceatlsaocrcloiaubnitliintigesesdtiumriantgesthine rreeplaotritoinngtopethrieorde;ciotvmearyyolaftderefbeerrdeedtetarmx iansesedtsth, aptoastdeimffeprleonytmchenoticbeenmeafiytshaanvde bimeepnaimrmoerentasp; persotipmriaattees. ThahveeGarlsooupb'esencriidtiecnatlifaicecdotuhnattinagrejundogt ecmonesnitdsearnedd tkoeybesocurirtciceasloifnersetsimpeacttioonf tuhnecearlltoaicnattyioanreofderetavielenduebetologwo.oAdsctaunadl oseurtvciocmese,sthcoeuulsdedfuiflfeecrofnroommitcholisveesesotifmfiantietse. lTivheedeisnttiamnagtiebsleasndanudndpreorlpyeirntgy,apslsaunmt patnidonesqauriepmreevnite.wTehdeomnaajonroitnygoofinthgebGasriosu. pR'esvpisrioovnissitoonsacacreouenittihnegr leosntigm-taetrems airnenraetcuorgen(issuecdhinasthaesspeetrrieotdireinmwenhticohbltihgeateisotnims)aoter irselraetveistoedshiforthteer-rteevrmisiolinabaiflfieticetss (osnulcyhthasatthpoesrieorde;lathtienygatroerreesctrougcntuisreidnginanthdeppreorpioerdtyo)fwthheerreevtihseioreniasnndoftuctounresipdeerrieoddstoifbtehae sreigvniisfiiocnanatffreicsktsobfomthatceurriraelnatdajnusdtmfuetnurtein
the next financial year. Critical judgements are exercised in respect of tax disputSecseinnaIrniodsiar,eiqnucilruindignjgudthgeemcaesnetstroeldaetitnergmtoinoeuwr haceqthueirsitthioenGorfoHuputicshaisporninEcsipsaalr oLrimaniteagde(nVt oindcalfuodnee, Ifnodrieax).aTmhpelsee, tchroitsiecawl haecrceouthnetiGngrojuudpgdeemlievnetrss,tehsitridm-paatertsyabnrdarnedleadtesdedrvisicceloss(usruecshhaasveprbeemeniudmismcuusssiecdowr iTthVthcoenGternotu)pt'oscAuustdoimt aenrds.RAilslkocCaotimonmoitfteree.vCenruiteictaol gaococodusnatnindgsejurvdgiceems epnrotsviadneddkteoycsuosutorcmeesrosfReesvtiemnauteioins ruenccoegrntaisinetdywRheevnenguoeodrescaongdnisteiorvnicReesvaerneudeerleivceorgendittiooncuusntodmereIrFsR(sSee15nonteec2e)s.siGtaotoesdsthaendcoslelarvtiiocnesanmdayprboecedsesliinvgeroefdvteorya claursgteomameroautndtsifofefrdeanttat,iumseesoufnmdearnathgeemsaemnet jcuodngteramcet,nhtsenanced ietsitsimneacteessstoarpyrtoodaulcleocfainteanthceiaalminofournmt paatiyoanb. lTehbeymthoestcusisgtonmifiecrabnet tawcceeonungtoinogdsjuadngdesmeervnitcseasnodnsoau`rrceelaotifveesstitamnadtaiolonnuensceelrltinaigntpyriacreebdaissicsl'o;stehdisbreelqouwi.reGsrtohsesivdeernstuifsicnaettiopnreosfenpteartfioornmIafnthcee oGbrloiguaptihoanssc(o`onbtrloigl aotfiognoso'd)sanodr stehrevdiceetserwmhineantitohneyofarsetadnedlaivloenreedsteollaincgupstroicmeserf,otrhtehnetihdeenGtrifoiuepd iosbtlhigeaptiroinncsi.pTahl eindtehteersmailenatotiothneocfuosbtolimgaetri;oontshiesr,wfoisreththeepGrimrouarpyigsoaocdtisnagnadssaenrvaigceensts. oWldhbetyhtehrethGeroGurpo,unpoitsccoonnssiiddeerreeddttoobbeeathceriptircianlciapcacloournatinngagjuedngt einmtehnet;trtahnesGacrtoiounp'dseppoelnicdys oonn aidneanlytisfiysinbgy ombalingaagteiomnesnitsodfisbcoltohsethdeinlengoatlefo2r.mThaenddestuebrmstainnacteioonf othfestaagnrdeaelmoneentsbeleltiwngeepnritcheesGforroiudpenantidfieitds obbulsiignaetsios npsaristndeirssc;ussuscehd jbuedlgoewm. e1n. tBs aimsispaocftptrheepaamraotiuonnt 1o1f4r4ep55orVteoddraefvoenneuGe raonudpoPplecraAtinnngueaxl pReenpsoerst(2s0e2e0noAtnen2u"aRl ReveepnourteodnisFaoggrmreg2a0t-iFon20a2nd0 segmental analysis") but do not impact reported assets, liabilities or cash flows.
AnnuuaallRReeppoorrtto2n0F2o0rm 20-F 2020 NNootteessttootthheeccoonnsosolidliadtaetdedfinfiannacniacliastlastteamteemntesn(tcso(nctoinnuteindu)ed) It is necessary to estimate the standalone price when the Group does not sell equivalent goods or services in similar circumstances on a standalone basis. When estimating the standalone price the Group maximises the use of external inputs; methods for estimating standalone prices include determining the standalone price of similar goods and services sold by the Group, observing the standalone prices for similar goods and services, when sold by third parties or using a cost-plus reasonable margin approach (which is sometimes the case for handsets and other equipment). Where it is not possible to reliably estimate standalone prices due to a lack of observable standalone sales or highly variable pricing, which is sometimes the case for services, the standalone price of an obligation may be determined as the transaction price less the standalone prices of other obligations in the contract. The standalone price determined for obligations materially impacts the allocation of revenue between obligations and impacts the timing of revenue when obligations are provided to customers at different times for example, the allocation of revenue between handsets, which are usually delivered suubps-tiftruotnet.,Tahned ssceervniacreisoswrheiqcuhirainregttyhpeicgarlelaytedsetlijvuedrgeedmoevnetritnhcelucdoenttrhaocstepwerhioerde. Hthoewarervaenrg, ethmeernetiissnfootrcthoensuidseeroefdftiobrbeeoar ositghneirfifcixanedt rtieslkecoofmmmatuenriiaclataidojnulsitnmeesn. tGteontehrealclayr,rwyihnegrevathlueeGorfocuopnhtraascet-xrcelluatseivdeaussseetsofoar lpiahbyisliictiaelsliinnethitei1s2demteornmthinseadfttehratthtehebaGlarnocuepschaenetaldsaotediirfetchtetsheeeusstiemoaftethsewleinree raenvdistehde.reLfeoarseeleaacsceosuwntiilnl gbeLreeacsoegancicsoeudn. tWinhgeurendtheer IGFrRoSup16priosvsiidgensifaicccaenstslytomfoibrerecoomr optlheexrtfhixaendutnedleecropmremviuonuiscarteipoonrtliinnegsrteoquainroetmheerntospaenradtonrecoenssaitwatheosltehsealceobllaastiisonthaenadrrparnogceemsseinngt wofillvegreynelararglleyabmeoiduenntstiofifeddaatsa aanledatshee, iwnhcreereasaesdwuhseenotfhme aGnraoguepmpernotvjiuddegsefmixeendtlsinaendseersvtiicmeastteos aton pernodd-uucseerf,ignaenneciraallliynfcoornmtraotlioonv.eTr hseucmholsint essiginsinfioctanpatsascecdoutonttihnegejnudd-guesmereanntsdaareledaissecliossneodtbideelonwtif. iLede.asTehiedeimntpifaicctaotifodneWterhmetihneinr gthwehaerrthanergeamn eangtreisemcoennstiidseareldeaaseleoarseaosreravsiceervdiceepecnodnstroanctwdheeptehnedrsthoen Gthreouapnailsyasispobtyenmtiaanlalegsesmeeenotrolfesbsootrhitnhtehleegararlafnogremmaenndt asnubds, twanhceereotfhteheGarorruapngisema elenstsboer,twweheenthtehretGheroaurpraanngdemtheenct oisuncltaesrs-pifaiertdyatsoadnetoeprmerianteinigf ocor nfitnroalnocef alenaisdee.nTtihfeieidmapsascettshfaosr beeaecnh pscaessneadriboeatrweedeenscthriebpedarbtieelso;wif wnohte,rtehethaerrGarnoguepmiesnptoisteantsiearlvlyic: e- aArrlaenssgeeem. eTnht.eCjuodngteromleenxtisimtspifacthtsetGheronuaptuorebtaanindstsimubinstganotfiablolythaclloostfsthanedecreopnoormteidc basesneetfsitafnrdomliatbhielituieses.oAf tlheeasaessreets,ualtnsdinhaasntahsesaebt ialnitdy atolidaibreilcittyitbseuinseg, rfeoproartpeedriaonddodfetpimreec.iaAtinonidaenndtifinietedraessstebteeinxigstrsecwohgenrieseadn; athgereienmteernetstecxhpalircgietlwy iolrl dimecprleicaistelyoivdeerntthifeielsifeanofasthseet loerasaep. hAyssiecravlilcyedciostnintrcatcpt orertsiuolntsoifnaonpaesrasetitnwgheixcphetnhseeslebsesionrghraescnoognsiusbesdtaenvteivnleyriogvhetrttohe
alisfseeot.fWthheecroenatrlaecatseadndasnsoetaisssehtisgholrylicaubsitloitmieissebdei(negitrheecrowrdheedn(iontihtiearlltyhapnrotrvaiddeedpaoyraabsleasr,epsruelpt aoyfmleeansteshaonldd iamccprruoavlesm). e-nAtsn) oopr eirtaitsinimg plersascotirc.aTlhoer juundegceomnoemnticimtoparcetpslathcee tnhaetunrteheofGinrocuopmiesrmecoorgenliikseedly. Atonjuodpegreatthinagt lleeaassee erexsteunltssioinnloepatsieoninscaorme erebaesionngabrelycocgenrtiaseindtwohbielsetxaesrecrisveicde. Tcohnetvraaclut ereosfultthseinrigsehrtv-oicf-eurseevaesnsueet.aBndotlheaasree lrieacboiglintyiswedilel vbeenglyreoavteerrwthheenlifeexotefnthsieoncoonpttriaocnt.s-aArefiinncalnucdeedleisnsothr.eTlehaesjeutdegremm. eTnhteimnopramctasl tahpepnroaatucrhe aadnodpttiemdifnogr olefabsoettherinmcobmy easasnedt crelapsosritseddeasscsreitbse. dAbfeinloawnc.eTlheeasleearseesuteltrsmisnctahne vleaarsyesiingcnoifmiceabnteliyngbyretcyopgenaisnedduastecoofmamsseentcaenmdegnetoogfrathpehyle.aIsneaadndditaionna,stsheet e(txhaectnleetaisnevteesrtmmeisntsiunbjtehcetlteoasthe)e bneoinn-gcarneccoerlldaebdle. Lpeearisoedtearnmd Wrighhetrsealnedasoepstiinocnlsuidneeaadcdhitcioonntarlaocpt.tiGonenael rpaelrliyo,dlseaasfetetreramnsinairteiajluldeagseed tteormbe, sthigenliofincgaenrtojufdthgeemmeinntimisurmeqlueiarseedtienrmdeatenrdm: i-nBinegtwweheenth5earntdhe1s0e yoepatirosnfaolrplearnidodasndshbouuillddibnegsin(celxucdleuddiwnghernetdaielt)e,rwmiitnhintegrmthsealet athsee tteorpme.nTdhoefitmhipsarcatnogfetihfisthjeudlegaesmeernetlaitsessigtoniafsicseatnstltyhagtraeraetecrownshiedreerethdetoGbroeudpififsicaulletstsoeee.xAit ssoaolneesrsefeo,roepctoinonomalipce, rpiroadcstiacrael ionrcrleupduetdatiinotnhael lreeaasseontesr;m- TifoththeeGnreoxutpcoisntrreaacstounaalblelyasceebrtraeiankitdwatiellfoexrerrectaisiel parnemexitseenss(ieoxncolupdtiionngobrrewakilsl nwoittheixnetrhceisneeaxtte1rm2 minoatniothns)o;p-tiWonh;etrheisledaespeesnadrse ounseadntoanparloyvsiids ebyinmtearnnaalgceomnennetcotifvaitlyl rtehleevleaanstefatecrtms afnodr cthirecucomnsntaencctievsitiyncisluadliignngetdhetoletahseeldeaassesette'rsmnaotruureseafnudl epcuornpoomsei,cthliefeecoofnthoemaicssaentsdcpornancteicctaeldp;oatnednt-iaTlhfeorcruesptolamcienrgsethrveicaessaegt raenedmaennyt lpelnangsththfoatr tlheeasGesrooufplohcaasl ilnoopplaccoenfnoerctthioenfsutourroetuhseer aosfstehtes required to provide fixed line services to individual customers. In most instances the Group has options to renew or extend leases for additional periods after the end of the lease term which are assessed using the criteria above. 1. Basis of preparation (continued) 1466 Vodaffone GrroouuppPPllcc
OveOrvveiervwiew Annual Report on Form 20-F 2020 Strategic Report Strategic Report GovGeorvnearnncaence FinFainncainaclsials OthOetrhienrfoinrmfoarmtioantion Taxation The Group's tax charge on ordinary activities is the sum of the total current and deferred tax charges. The calculation of the Group's total tax charge involves estimation and judgement in respect of certain matters, being principally: Recognition of deferred tax assets Significant items on which the Group has exercised accounting estimation and judgement include the recognition of deferred tax assets in respect of losses in Luxembourg, Germany and Spain as well as capital allowances in the United Kingdom. The recognition of deferred tax assets, particularly in respect of tax losses, is based upon whether management judge that it is probable that there will be sufficient and suitable taxable profits in the relevant legal entity or tax group against which to utilise the assets in the future. The Group assesses the availability of future taxable profits using the same undiscounted five year forecasts for the Group's operations as are used in the Group's value in use calculations (see note 4 "Impairment losses"). Where tax losses are forecast to be recovered beyond the five year period, the availability of taxable profits is assessed using the cash flows and long-term reglraotwintghtroattehseuGserodufpo'rstahceqvuailsuiteioinn oufseHcuatlcchuilsaotnioEnss.saTrhLeiemsittiemda(teVdodcaasfohnfeloIwndsiian)haenredntthienitmhepsaectfoorfetchaestEsuinrocpluedaen tChoemunmsiyssstieomn'asticchrailslkensgoef otopethraetUinKg 'isnCthoenttreolellceodmFmorueniigcnatCioonms pbaunsyinreuslsesin. cFluurdtihnegr tdheetapiolsteonftithaleitmaxpadcitsspouftecshiannIgnedsiianatrheeinmcalurkdeetdsitnruncotutere2,9tr"enCdosnitnincguesnttolmiaebrilpirtiiecsinagn,dthleegcaolsptsroacseseodciinagtesd" wanitdhftuhrethaecrqiunifsoirtimonataionndornetethnetioEnuroofpceuasntoCmoemrsm, ifsustiuorne'stecchhanlolelonggiecaalreevinoclulutidoenisnannodtepo6te"nTtaiaxlarteiognu"lattoortyhechcoannsgoelsi,dsautecdh faisnaonucriaabl isltiatytetmoeanctqs.uBireusainnde/sosrcroemnebwinasptieocntsruamndligcoeondcwesi.llCWhahnegnesthien GthreouepsticmomatepslewtehsicahbuunsidneerspsincothmebGinraotuiopn's, tfhoerefcaairstvsacloueusldohf athvee iadnenimtipfiaacbtleonastsheetsamanodulniatboifliftuietusraectqauxiarbedle, ipnrcolfuitdsinagndinctoaungldibhlaevaessaestsig, narifeicraencot gimnipsaecdt. oTnhethdeepteerrmioidnaotvioenr wofhtihceh ftahier dveafleurersedoftaaxcqausisreetdwaosusledtsbaenrdeclioavbeilrietide.sTishebaGsreodu, ptooanlcyocnosindseidraebrsleseuxbtsetnant,tiovnelmyaennaagcetemdetnatx'slajuwdsgwemheennta. sIsfethsseinpgurtchheaasme ocounnstiadnedraativoanilaexbicleiteydsofthtaexfaloirssveaslutoe ooffftsheet angeat ianssstetthseacfuqtuuirreedtatxhaebnlethperoinfictrse.mSeenetnalotaem6o"uTntaxpaatiidonis"rteocothgencisoendsoaslidgaotoeddwfiinlla. nIfcitahlesptautrecmhaesnetsp. rUicnecceortnasinidtearxatpioonsiitisolnoswTehr ethtaanx tihmepfaacitr ovfalauteraonfstahcetiaosnseotrs iatecqmuicraendbtheeunntcheertdaiifnfeurnetnicl ea icsorneccloursdioedn aissraeagcahinedinwtihteh itnhceormeleevsatanttetmaxenatu. tAhollroictyatoiornthorfotuhgehpaulrecghaalseprporciceessb. eTtwheeeGnrofiunpiteusleivseidn-ahsosuestse (tdaixsceuxspseerdtsbwelhoewn)aasnsedsisnindgefuinnicteerltiaviendtaaxsspeotssistuiocnhsaasngdosoedewksillthaeffaedcvtsicteheofsuebxsteerqnuaelnptrroefseuslstisoonfalthaedvGirsoourspwashefirneitaeplpirvoepdriianttea.nTghibelemaossstestsiganriefiacmanotrjtuisdegde,mwehnetreinasthinisdaerfeinaitreellaitveesdtointthaengGibroleupas'ssettasx, idnicslpuudtiensgingoInoddiwa,ililn, calruedninogt athmeocrtaisseesd.
See note 27 "Acquisitions and disposals" to the consolidated financial statements for further details. 114477 VoVdoadfaofnoeneGrGoruopuPplPclc Annual Report 2020
AnnuuaallRReeppoorrtto2n0F2o0rm 20-F 2020 NNootteessttootthheeccoonnsosolidliadtaetdedfinfiannacniacliastlastteamteemntesn(tcso(nctoinnuteindu)ed) Joint arrangements The Group participates in a number of joint arrangements where control of the arrangement is shared with one or more other parties. Judgement is required to classify joint arrangements in a separate legal entity as either a joint operation or as a joint venture, which depends on management's assessment of the legal form and substance of the arrangement taking into account relevant facts and circumstances such as whether the owners have rights to substantially all the economic outputs and, in substance, settle the liabilities of the entity. The classification can have a material impact on the consolidated financial statements. The Group's share of assets, liabilities, revenue, expenses and cash flows of joint operations are included in the consolidated financial statements on a line-by-line basis, whereas the Group's investment and share of results of joint ventures are shown within single line items in the consolidated statement of financial position and consolidated income statement respectively. See note 12 "Investments in associates and joint arrangements" to the consolidated financial statements. Finite lived intangible assets Other intangible assets include amounts cspuesntotmbeyrthcheuGrnroruapteas.cqAuniriinncgreliacseenicneschaunrdnsrpaetcetsrummay, clueastdomtoear rbeadsuesctaionnd itnhethceoestsstiomfapteudrcuhsaesfiunlgliafnedadnedvaenloipnicnrgeacsoeminputhteerasmofotwrtiasraet.ioWnhcehraerginet.aCnagipbitlaelaissesdetssoafrtwe aarcequFiorerdcothmrpouugtehr bsousftiwneasrse,ctohmebeisntiamtioatnesdaunsdefnuol alicfteivise bmaasrekdeot nfomr tahneagasesmeetsnet'xsisvtise,wth,ecofanisridvearluinegohfisthtoersiecaalsseextpseirsiednecteerwmiitnhedsimbyildarispcrooudnutcintsgaesstwimelaltaesdafunttuicriepanteiot cnaosfhffulotuwres egveennetrsatwedhibcyh tmheayasimsept.aEctsttihmeiartelisferesluactihngastochthaengfuetsuirnetceacshhnoflloowgys.aTnhdeduissceofuunl tlirfaetewsilulsneodtmexacyehedavteheadmuartaetrioianl oefffaeclticoenncthee. Preroppoertretyd,apmlaonutnatnsdofeqfiuniiptemleinvtedPrionptaenrgtyi,bplelaanstsaentsd. Eeqstuimipamteionnt orefpurseesfeunltslif2e3.T3h%e u(2s0e1fu9l:l1if9e.2o%ve)rowf hthicehGinrotaunpg'isbtloetaalssaestssetasr;eeasmtimorattiessedanddepaesnsudms opntiomnasnmagaedme emnat'ysheastviemaatme aotfetrhiael pimerpioadctoovnerthweihriccharercyoinngomvailcubeeannedfirtewlaitleldbededperreivceiadtifornomchtahregea.ssSeete. Unosetefu1l1li"vPersoapreertpye,rpioladnictaalnlyd reeqvuieipwmeedntto" etonstuhreectohnastothliedyatreedmfaininanacpiparlosptaritaetme.eMntsanfoagr efumrethnet'rsdeesttaiimlsa. tEesstoimf uatsieofnulolfifueshefauvleliafemTahteeridaelpirmepciaacttioonncthhaergame foournatnofasasmetoristisdaetriiovnedreucsoirndgedesitnimthaeteyseoafr,itbsuetxtpheecreteids unsoetfcuol nlisfiedearneddetxopbeectaedsigrensiifdicuaanltvrailsukeo, fwmhiactheraiarel ardevjuiestwmeednatntonutahlelyc.aMrryainnaggvemaleunest'sofesintitmanagteibsloefaussseeftsulinliftheehayveearatom3at1erMiaalricmhp2a0c2t1oniftthheesaemeosutinmt aotfeds ewperereciraetvioisnerde.cTohrdeebdaisnisthfoerydeeatre,rmbuitnithngertehiesunsoetfucol nlisfiedfeorredthteombeosatssiiggnniiffiiccaannttrciasktegoformieasteorfiainl taadnjguisbtmleeanststeotsthaerecdairsrcyuinssgevdablueeloswo.f Cpruosptoemrtye,rpblaasnetsaTnhdeeeqsutiipmmateendt uinsethfuelyliefaerptorin3c1ipMalalyrcrhe2fl0e2c1tsimf tahneasgeeemsteinmt'astevsiewweroefrtehveisaevde.rMagaeneacgoenmoemnitcdleifteeromfitnheescthusetoumseefrulblaisveesanadndisreasssideussaeldvablyueresffeorrenacsseettos when they are acquired, based on experience with similar assets and taking into account other relevant factors such as any expected changes in technology. 1. Basis of preparation (continued) 1488 Vodaffone GrroouuppPPllcc
OevveeOnrtvsvoeriecrhvawngieews iSntrcairtecguimcsRtaenpcoerst iSntdraicteagteicthRaetptohretirGcoavrrGyeinogrvanmeaorunnntcsamenacyenFoitnbFeairnenccoavienraacbllseia. lIsmOptahirOmeetrnhtietensrtfionignrrmeqfuoiarrems tmioaannatgioenmePnotsttoemjupdlgoeymwhenetthbeerntehfeitcsaMrrayninaggevmaleunet oufseassseesttsimcaantebsewshuepnpodretteedrmbyintihneg ntheet pGrreosuenpt'svalilaubeiloitfiefsutaunrde ceaxsphenflsoews sartihsaint gthfeoyr gdeenfienreadteb. eCnaelfciut lpaetinnsgiotnhescnheetmpreess.eMntavnaalgueemoefntthies fruetquureirecdastho felsotwimsarteeqtuhierefsuetusrtiemraatteess toof bineflmataidoen,insarleasrpyeicntcorefahsiegsh,ldyisucnocuenrttariantemsaatntedrsloinngceluvditiyngofmmaneamgbeemrse,net'aschexopfewcthaitciohnms oayf:hgarvoewathmianteardiajul simtedpaEcBt oITnDthAe,dceaflicnueldatbeednaesfiatdojbulsitgeadtioopnesrtahtaintgarperorefictobrdefeodr.eFduerpthreecridateitoanilsa,nidncalmudoirntigsaatisoenn;sittiimviitnygaannadlyasims,oaurnetionfclfuudtuerdeicnanpoittael 2e5xp"ePnodsittuemrep, lloicyemnceentabnednsepfeitcst"rutomthpeaycmonesnotsli;dalotendg-ftienramncgiarolwsttahtermateens;tsa.nCdonatpipnrgoepnrtialitaebdiliistcieosuTnthreaGtersotuopreefxleercctitshees rjiusdkgseimnveonltvteodd. eMtearnmaigneemwehnettphreerptaorersecfoogrmniaslefpivroevyiesiaornfsoraencdasthtsefeoxrptohesuGrersoutop'csoonptienrgaetinotnlsia, bwilhiitciehsarreelautseeddtotopeesntdiminagtelitthigeairtivoanlsuoerinotuhseer;oaultostnagn-dteinrmg cglraoimwsthsurabtjeecint ttoo pneergpoettiuaitteydhsaesttbleemenendte,tmeremdiinaetidona,satrhbeitlroawtioernoofr: gtohveenronmmeinnatlrGegDuPlatgiroonw, aths wraetellsafsorotthheerccoounnttirnygoenftolpiaerbaitliitoine;s a(nsede nthoetelo2n9g"-tCeormnticnogmenptoluinabdilaintineusaalngdrolewgtahl rpartoecienedaidnjguss"tetdoEthBeITcoDnAsoilnidyaeteadrsfsinixantocitaelns,taatseemsetinmtsa)t.eJdubdygemmaennatgiesmneencet.sCsahrayntgoinagsstehses athsseulmikpetliiohnosodsetlheactteadpbeyndminagnacglaeimmenwti,llinsupcacretiecdu,laorrtaheliaabdjiluistytewd iEllBaIrTisDe.AImanpdaigrmroewntthreravtieewasssuIFmRpStiorenqsuuirseesdminanthaegecmasehnftltoowpperrfoojermctiiomnps,aciromueldntsitgesntisfiacnannutlayllayfffeocrtitnhdeeGfinroituepl'isveimd apsasiremtse, nfot revfianliuteatliiovnedanadssheetsncaendrefpoorreteqduiatsysaetcscoanudntpedroifnitvseostrmloesnstess,.if Further details, including a sensitivity analysis, are included in note 4 "Impairment losses" to the consolidated financial statements. For operations that are classified as held for sale, impairment testing requires management to determine whether the carrying value of the discontinued operation can be supported by the fair value less costs to sell. Where not observable in a quoted market, management have determined fair value less costs to sell by reference to the outcomes from the application of a number of potential valuation techniques, determined from inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. 114499 VVooddaafofonneeGGroruopupPlPclc AAnnuualaRl eRpeoprotrotn2F0o2r0m 20-F 2020
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timing of settlement is uncertain, amounts are classified as non-current where settlement is expected more than 12 months from the reporting date. In addition, deferred tax liabilities and post-employment benefits are reported as non-current. Inventory Inventory is stated at the lower of cost and net realisable value. Cost is determined on the basis of weighted average costs and comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. 1. Basis of preparation (continued) 1500 Vodaffone GrroouuppPPllcc
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bn Operating lease commitments at 31 March 2019 10.8 Less effect of discounting on payments included in the operating lease commitment (1.6) Plus lease liabilities in respect of additional 'reasonably certain' lease extensions assumed under IFRS 16 0.8 Plus finance lease liabilities already reported under IAS 17 0.3 Lease liability opening balance reported at 1 April 2019 10.3 The Group applied the lease identification requirements of IFRS 16 at the date of adoption and no material changes to the Group's lease portfolio were identified. 1. Basis of preparation (continued) 152 Vodafone GroVupodPalcfone Group PlcOverview on Form 20-F 2020
OveOrvveiervwiew Annual Report on Form 20-F 2020 Strategic Report Strategic Report GovGeorvnearnncaence FinFainncainaclsials OthOetrhienrfoinrmfoarmtioantion Impact of the adoption of IFRS 16 on the opening(b7a,8la7n5c)es(h7e,e8t7a5t)1AAccpuriml u20la1te9dTlhoessiemsp(a1c1t6o,7f2th5e) (a2d6o1p)ti(o1n16o,f9I8F6R)SA1c6cuomnutlhaetecdoonsthoelirdcaotemdpsrteahteemnseinvet oinf cfoinmanec2ia9l,5p1o9sitio2n9,a5t119ATpotraill 2a0tt1ri9buistasbelteotuot obwelnoewrs: Iomf pthaectpoafreandto6p2ti,o2n1831(2M61a)rc6h1,2905179NoofnI-FcRonStr1o6ll1inAgpinritle2re0s1ts91C,2o2n7so4lid1,a2te3d1 sTtaotteaml neonnt -ocfofnintraonllciinagl pinotseirteiostns1m,227m41m,2N31onT-octuarlreenqtuaitsyse6t3s,4G4o5od(2w5i7ll) 2633,,315838N2o3n,-3c5u3rrOentht elirabiniltaitniegsibLloenags-steetrsm17b,o6r5r2owi1n7g,s64582,6P8ro5p7e,r3t9y4, p5l6an,0t7a9ndDeeqfeurirpemdetanxt 2li7a,b4i3li2tie1s0,427286374,76858PoInstveemstmpleonytms einntabsseonceifaittses5a5n1djo5i5n1t vPernovtuisreiosn3s,915,224(227(90)) 13,,263832TOrtahdeer ainnvdeosttmheernptsay8a7b0les827,903D8e(f3e7rr)e2d,9t0ax1a5s3s,e8t9s4247,,735438 612,42,47253CuProrsetnetmliapbloilyitmieesnSt hboernte-fteitrsm94borr9o4wTinragdse4,a2n7d0o2th,6e4r6re6c,e9i1v6abFliensan5,c1ia7l0li2a1bi5li,1ti9es1 uOnfdwerhpicuht:oNpteitoinnavrersatnmgeenmtseinntsle1a,8se4s43113,384143T6a1x0a3t,i2o7n6li9a,b9i7li7ti1es135,92653 C59u6rrePnrot vaisssieotnssIn1v,1e6n0to(r7y67)114,08471T4raTdaexaantidonotrheecropveayraabbllees26147,652364(2T3r)a1d7e,6a3n0d 2o5th,5e2r 3re2c,e5i4v7ab2l8es,01720,1T9o0ta(l3e3q9u)i1ty1,a8n5d1lOiafbwilihtiiecsh:14N2e,t8i6n2ve9s,6tm38en1t5s2in,50le0as1e1s5153139 V20oVOdthaeorfdinovaensfetmoneGntesro1G3,u0r1p2ouP1p3l,c0P1l2c CAansnhuaanl dRceapsohrte2q0u2iv0alents 13,637 13,637 39,817 (339) 39,478 Assets held for sale (231) (231) Total assets 142,862 9,638 152,500 Equity Called up share capital 4,796 4,796 Additional paid-in capital 152,503 152,503 Treasury shares
AinninsuoulaatailolnR,Rpereevpepnototrhrtotsoe2ng0oFo2dos0orrmse2r0v-iFce2s0f2ro0mNbNeoinogtteaessssetstoseodtthasheseecpcaoraotnenosbolsioglaidtiloiands.taTehtdeeGdfrionufipandnetaecrnmiaincelisasthtleastrttaenasmacteteiomnnptreiscne(ttcosow(hniccthoiintneuxtpeeincdtsut)oedb)eTehnetitGlerdouinp'rsetbuursninfeosrspersoavriedimngantahgeepdroomn iasegdeoogbrlaigpahtiicoanlsbtaositsh.eSceulesctotemdefrinbaansecdialondatthaeicsopmremseintteteddcoonnttrhaicstbuaalsiasmboeluonwts., Anectcooufnsatilnegs tpaoxleicsiaesndRdevisecnouuentWs.hWenhethree iGndroiruepctecnhtearnsnienltodeaanleargsr,eseumchenatswreitthailaecrsu,satocmqueirr,egcouosdtosmanedr csoernvtriacectssdoenlivbeerhaablfleoufnthdeerGthroeucpoanntrdacrtecaereiviedecnotmifmieidssaisonse,paanryatceopmemrfiosrsmioannsctehoatbltihgeatdieoanlser(`iosbcloigmaptieolnlesd')ttoouthsee teoxfteunntdthdaistctohuenctussotor motehrercainncbeenntievfeitsftroomthethceugsotoomdseroarrseetrrveiacteesdoans tphaeyirmoewntnsatondthtehactutshteomseeprawrahteengodoetdesrmanindisnegrvthiceetsraanresaccotinosnidperriecde dainsdtinccotnfsreoqmueontthlyeragreoondost ainncdlusdeervdicinescionnttrhaectagarceqeumiseitnito.nWcohsetrse. iTnhdeivtirdaunaslacgtoioondsparincde siesravlilcoecsatdeodnboettwmeeeent tthhee cidrietnertiifaietod bobeliidgeantitoifnisedacacsosredpinagrattoe othbelirgealtaitoinvse tshteanydaarleonaeggsreelgliantgedprwicieths ootfhtehregooboldigsaatinodn/so.rTsehrevsictaensdinalothneeasgerlleienmgepnritcuenotifl eaascehpaobralitegaotbiolingdateiloivneirsaibdleenitniftihede.cTohnetraocbtliigsadtieotnersmidineendtifaicecdowrdiilnl gdetpoetnhde opnricthees tnhaattutrheeoGf irnoduipviwduoaulldcuascthoimeveer bcoynsterlalcintsg, bthuet smaimghetgtoyopdicsaallnydb/oersseepravriacteeslyinicdleundteifdieind fthoer mobolbigilaetihoanntdoseatss,imotihlaerrceuqsutiopmmeernotnsuacshtaansdsaelto-tnoepbbaosixse;swahnedrerosutatenrdsaploronveisdeeldlintogcpursictoems aerres nanodt dsierrevcitclyesopbrsoevrivdaebdlet,oecsutismtoamtioenrstseucchhniaqsumesoabrieleuasnedd fmixaexdimliinseincgotmhemuusneicoaftieoxntesrenravlicinesp.uWts.hSeeree "gCooridtsicaanl dacsceorvuincteinsghajuvdegaemfuenncttsioannadl kdeeypesnoduerncecsyo(ffoersteixmaamtipolne,uancfiexretadinlitnye"rionunteorteca1nfoornldyebtaeilus.seRdevweinthuethies Grercoougpn'issesderwvihceens)tthheisredsopeesctnivote, obsluigpaptlioienrsainndthreeccoognntirsaecdt raerveedneuleivreerperdestoentthsethcuesmtoamrgeirnaenadrnpeadymbyentthereGmraoiunps.pSroeeba"bCleri.tiRceavl eancucoeufnotrinthgejupdrogveimsieonntsoafnsderkveicyesso, suurccehsaosfmesotbimileataioirntimunecaenrtdaifnitxye"dilninneobtero1afdobradnedt,aiislsr.eCcougstnoimseedrswthyepnictahlelyGpraoyupinpardovvaidnecsetfhoer rperleapteady smerovbiiclee dseurrvinicgetshaenadgmreoendtshelyrvfiocreoptehreior dc.oRmemveunnuiceaftioorndseevrivciecesas.leCsutsotoemndercsutsytopmicaerllsyispagyenfoerrahllayndresceotsgnanisdedotwhehreenqtuhiepmdeevnitceeiitshedreluipve-frreodnttoatththeeentidmceuosftosmaleer.oFr oovr edrevthiceetesramlesofmthadeeretolaitnetdersmerevdiciaeriaegsresuemchenast.iWndhireenctrecvheannuneelredceoaglenriss,edreivnenreusepiescrteocfoagnciussetdomifecrocnotrnotrlaocft tehxecdeeevdsicaemhoausntrtsanrsefceerirveeddtoorthreecienitvearbmleedfiraormy aancdusthtoeminetrearmt tehdaitatriymheaas ncoonrtirgahctt taossreettuirsnrethceogdneivsiecde; tcoonretrcaecivt easaseretsfuwnidll; toytphiecrawlliysebreerveecnougenriesecdogfnoirtihoanndissedtesfeorrroedthuenr teiql usaiplemoefntthperodvevidiceed ttoo acnusetnodmceursstwomheerrebpyaythmeeinntteirsmreecdoiavreyreodr bthyetheexpGirryouopf avniayfruigtuhrteosferrevtiucrenf.eWesh. eIrfeamreofuunndtss raerceeiisvseudedortoreccuesivtoambleersfrtohmeyaacreusdtoedmuecrteedxcfreoemd rreevveennuueeriencothgenirseeledvfaonrtasecrovnitcreacpte,rfioorde. xWamhepnlethife tGheroGurpohuapsrceocenitvroelsoafngaodovdasnocre spearyvmiceenstpfrrioomr tao cdueslitvoemryert,oaacocunstrtaocmt elira,bthileitnytihserGecroogunpisiesdth. eWphreinnccipoanltrianctthaessseatlse otor ltihaebicluitsiteosmareer.rAecsoagnpirsiendci,paafl,inraenceciipntgs cforommp,oannedntpmayamyeenxtissttoin, stuhpepcloienrtsraacrte; rtehpisoirstetdypoincaallgyrothsse bcaassieswinhreenvaenhuaendasnedt oopreortahteinrgeqcuoisptms. eIfntainsopthroervipdaerdtytohaasccuosntotrmoleor fugpo-forodsntobrusterpvaiycmesenptriiosrrteocetriavnesdfeorvteor athceutsetrommeorf,tthheenretlhaeteGd rsoeurvpiciseaacgtirnegemasenatn, iangwenhticfohrctahseeotthheercupsatrotmy aenr disrdeveeemnueeditnorheasvpeecrteocefitvheedrfeilneavnacnitnogb. lIifgaatsioignnsifiiscraenctofginnaisnecdinngetcoomf apnoynerenltaitsedprpoavyimdeednttsottohethe customer, the transaction price is reduced and interest revenue is recognised over the customer's payment period using an interest rate reflecting the relevant central bank rates and customer credit risk. Contract-related costs When costs directly relating to a specific contract are incurred prior to recognising revenue for a related obligation, and those costs enhance the ability of the Group to deliver an obligation and are expected to be recovered, then those costs are recognised on the statement of financial position as fulfilment costs and are recognised as expenses in line with the recognition of revenue when the related obligation is delivered. The direct and incGrermroeonutaulpcpoPsPtsllcocf acquiring a contract including, for example, certain commissions payable to staff or agents for acquiring customers on behalf of the Group, are recognised as contract acquisition cost assets in the statement of financial position when the related payment obligation is recorded. Costs are recognised as an expense in line with the recognition of the related revenue that is expected to be earned by the Group; typically this is over the customer contract period as new commissions are payable on contract renewal. Certain amounts payable to agents are deducted from revenue recognised (see above). 2. Revenue disaggregation and segmental analysis 1544 Vodaffone
OveRrveisetwofOtvheerWvieowrldA8n,n4u0a2l1R,6e8po9r1t 0o,n09F1or2m00201-6F1200,32007S3tr,5S6t1raCteogmicmRoenpoFrutnactteigoincsR2 e4p7o7rt3G7 o5v1e4r1na,0n0c3e G1o,v5e1r7na6n8ceEFliminiannactiiaolnssF(i1n0a1n)ci(a1l)s(O10th2e)r(i2n0f0o)rma(t3io02n)OthGerroiunpfo3r6m,4a5ti8on5,R65ev2e4n2u,e11d0is1ag,4g0re8g1a4ti8on43R,6e6v6en1u3e,9r1ep8oNrtoetdesf:o1r tOhethyeerarreivnecnluuedeins crleuvdeensuleeafrsoemrecvoenntureacrtescwogitnhisceudstuonmdeerrsI,AcoSm1p7r"isLinegasseesr"vifcoer tahnedyeeqauripemndeendt 3re1vMenaurec,ha2s0w1e9llaansdoIFthRerSr1e6ve"nLueeasiteesm"sfoinrcthluedyinegarreenvednedue3f1roMmarlceahs2e0s2a0nd(sienetenroestet r2e0v)e.n2uCe oamrispirnigsefsrocmenttrraalnsteaacmtiosnasnwd ibthusainseigssniffuincacntitofnisn.aTnchiengtoctaolmfuptounreenrte.vTehneuetafbrloembethloewGdroisuapg'gsrceognatterasctthsewGitrhoucups'stormeveerns uweitbhypreerpfoorrtminagncseegombelingta.tRioenvsennoutesfartoimsfiecdonattra3c1tsMwairtchhc2u0s2to0misers20m,33T6otmalilsleiognm(e2n0t1r9e:ven1u8e,44m7 mSeilrlvioicne);reovf ewnhuiechm1E3q,4u5ip6mmeinlltiorenv(e2n0u1e9: m1O2,t5h6e6r rmevilelinoune)1isemxpInetcetreedsttorebveenreuceogmnisAeddjwusittehdinEtBheITnDexAt yemar3a1nMd athrcehm2a0jo2r0itRyeovfetnhueerfermomaincionngtraamctosuwntitihn Tthoetafloslelogwmienngt1S2ermviocnethEsq. uGipemrmeanntyO1th0e,6r9In6t1er,0e5st5A1d1j,u7s5t1ed30re0v2e5n1u2e,0r7ev6e5n,u0e77cuIstatolym4e,r8s3r3ev5e8n3u5e,141r6ev1e0n1u1e2r5e,v5e2n9u2e,0E6B8ITUDKA53,012M0 1a,r3c3h3260,315936m368m6,4m841m,50m0 Spmainm3,G90e4rm31a8n4y,292,12455112,3047,729160,12,2020913O9th2e9r 1E0u,r3o9p0e44,,087990I5ta3l9y55,4,02390974212855,,574512 19,773885E,8l5im7i2n,a2t0io2nUs K(1340,9)5(21)1(1,23017) 6(2,1)5(915363)57 E6u,2r7o2pe1,2396,421S3p3a,8in2743,230,034309620741,54965335,879136141,,6369921V,0o3d8acOotmhe4r ,E47u0ro8p6e445,,436304159209745,,958391621,028285O,0th7e2r1M,6a0r6keEtslim3,i7n9a6ti5o5n2s4(,131408)362(141,308)6(61),40(011R6e)stoEfutrhoepWe 2o7rl,d6880,236,69217,431169,6,0678242025619932,93127,31,4448810C,o2m89mVonodFaucnocmtio4n,3s2914984753355,427614,012701 815,5,4647312E,1l5im7 iOnathtieornMs (a1r0k2et)s(41),0(110138)1(62040,8)27(32093)84,G86ro4u1p,404 37,8715,29543,1661,65315544,97414,881 155 155 Vodafone Group Plc Vodafone Group Plc Annual Report 2020
AannnduuthaealrleRgRuleaetpopryooernrvttior2onn0mFe2not.0Irnmth2e0-cFas2e0o2f0tNheNEouorttoepeessrtetgoiootnththheiesclcaorgoenlnysroesfolelicdtlsiamdteametbdeerdsfhiinpfioafntnhaecnEiuarcolipaesatlnasUttneiaomnt,ewemhinletefsonr(tthcseoR(necsttooifnnthueteWinodurl)dedre)gSioegnmtheinstlaalragnealylyisnisclTudheesGermouerpg'isnogpaenradtidnegveselogpminegntescaorneoemstiaebsltihshaetdaroeninthtehebapsrioscoefssthoofsreacpoidmgproonwetnhtsaondf tihneduGsrtoriuaplitshaatitoanr.eCeevrataluinatfeidnarnegciuallarilnyfobrymtahteiocnhiisefporopveirdaetidngsedpeacraistieolyn mwiatkheinr itnhedeEcuidroinpge hreogwiotnofaolrloGcaetremraensyo,uIrtcaelsy,atnhdeiUnKasasensdsiSnpgapine,rfaonrdmwanitchei.nTthhee RGersotuopfhthase dWetoerrlmdirneegdiotnhefocrhVieof doapceoramti,nags dtheecsiseioonpemraatkinegr tsoegbme eitnstCs ahrieefinEdxievciudutiavlelyOmffaicteerri.aTl hfoerGthreouGprohuasp.aTshinegsleeggmroeunptaol fresvimeniluaer asenrdvpicreosfiatnodf Ipnrdoidaucatrse, ibnecilnugdethdeinsudpipsclyonotfincuoemdmoupnericaatitoionnssfoserravlilcyeesaarnsdrepproordteudctus.nRtilev3e1nAueugisusattt2r0ib1u8t,edthteodaatceoounf tdriyspoorsraelg, iaonndbsaesgemdeonntathl easlsoectastiaonndocfasthheflGorwosuparceoimncplaundyedreipnoarstisnegtstahnedrelivaebniulieti.eTsrhaenlsdafcotirosnaslebeattw3e1eMn oaprcehra2ti0n1g8s. eSgemeennottsea7re"Dchiascrgoendtinaut eadrmo'pse-rleantigotnhsparnicdeass. sSeetsgmanedntliianbfiolirtmieastihoenldisfoprrismalaer"ilyanpdronvoitdee2d7o"nAthcequbiassitiisoonfs gaenodgdriaspphoiscaalrse"afso,rwdietthaitlhse. SexecgempetinotnaloifnfVoormdaactoiomn wusheidchfoernicnotmerpnaasl sdeescSisoiounthmAafkriicnag adnudricnegrttahienyoetahresresnmdaeldle3r1AMfriacracnh m20a1rk8eatsn,db2e0in1g9twheasboasnisanonIAwShi1c8h (tphreeG-IFroRuSp 1m5a)nbaagseiss.iItns wthoerlydewairdeendinetder3e1stMs. Tarhceha2g0g2r0eginattieornnaolfdoepceisriaotinnsgwseergembeanstesdinutpootnheIFERuSro1p5efainnadnRcieasltionffothrme aWtioornldanredgaioccnosrrdeifnlegclytsc, oinmtphaeroatpiivneioinnfoofrmmaatnioangefomretnhte, tyheearsiemnidlaerde3c1onMoamricchc2h0a1ra9cwtearsisrtiec-sprwesitehnitnede.acChonosfetqhuoesentrleyg, isoengsmaesnwtaellilnafsorthmeastiiomnilfaorrpthroedyuecatsr eannddesder3v1icMesaorcffhe2re0d18anids psruepspelnietedd, colnasasnesIAofSc1u8st(opmree-rs IFRS 15) basis and information for years ended 31 March 2020 and 2019 is presented on an IFRS 15 basis in accordance with the above revenue recognition policy. See note 32 "IAS 18 basis primary statements" fmorildlieotnai,ls20o1f8th-e4IA39Sm18illrieovne)niuneclruedceodgnwitiithoninpAolmicoyr.tiTsahteioGnroofuapc'squmireeadsucruestoofmseegr mbaesnetdparonfditb, raadnjdusitnetdanEgBibIlTeDaAss,eetsxcalnudde-s2d,e0p2r4ecmiailtliioonn, wamhiocrhtisisatpiorinn,ciimpaplalyirmreelantteldotsos,VreosdtraufoctnueriIndgeacoLsitms,iltoedss(o2n01d9is:p-os1a1l4omf fiilxlieodn,a2ss0e1t8s,thneilGmriolluiopn's) sinhcarluedoefdrewsiuthltisninOathsesrociniactoems aen/(dexjopienntsvee).nAtudrejussatendd EotBhIeTrDinAco1m4e,8a8n1d13e,x9p1e8n1se4.,7A37reDcoenpcreilciaiatitoionno, famadojrutsisteadtioEnBaInTdDlAostsooonpdeirsaptionsgalporofffiitxiesdshasoswentsb(1el0o,w08.5F)o(r9a,6r6e5c)on(9c,i9li1a0ti)oSnhoafreopoefraadtijnugstperdorfeitsutoltpsrionfeitqfuoirtythaeccfionuanntceidalaysseoacr,iasteees tahnedCjooinnstovliednattuerdesi2nc(o2m41e)s(t3a4te8m) e3n8t9oAndpjaugsete1d4o1p.e2r0a2ti0ng20p1ro9f(itre4-,p5r5e5s3e,n9t0ed5)51,21m62I0m1p8airmmenmt lNososteess:(11,6T8h5e)(r3es,5u2lt5s)refRleecstterducintutrhinisgtcaobsletsf2o(r7t2h0e)y(e4a8r6e)n(d1e5d6)31AmMoarrtcihsa2ti0o1n9owf earcequpirreevdiocuussltyomdiesrclboasseeddoanndanbIrAanSd1in8tabnagsiisblien athsseeAtsn2n(u6a3l8R) e(5p8or3t)f(o9r7t4h)eOytehaerreinndceodm3e1/(eMxparecnhse2)02129,2a5nd7 (h2a6v2e)b2e1e3nIrnet-eprreessteonnteldeainsethlieabtailbitlieeasb3o3v0eonOanpeIrFaRtinSg1p5rboafisti/s(.lo2ssS)h4a,r0e9o9f(9re5s1u)lt4s,2o9f9eq2u. iRtyevaeccnouuendteisdagagssroegciaattioesnaannddjsoeignmt veennttaulraensaplyressisen(cteodntwinituheidn)t1h5e6C6oVnsoodlaidffaotende iGnrcroomoueusptaptPePmlelcnct includes -241m (2019: -348 million, 2018 389 million) included within Adjusted operating profit, -25m (2019: -26 million, 2018 -9 million) included within Restructuring costs, -215 million (2019: -420
Ov Overview erview Str Strategic Report ategic Report Go Governance vernance Financials Financials O Other information ther information Segmental a7s,s3e2ts1 an7d4c7as1h0,f4lo0w9 O7th,0e0r1RNigohtte-so:f-1u2se3eCxpoemnpdritiuseres goonoadswseitlsl,inottahnegriibnlteanasgsiebtlseDasespertescainatdiopnroapnedrtaym, porlatinstatainodn eNqounip-cmuerrnetn. tInacslsuedtse1s Cadadpiittiaolnesxtpoenprdoitpuerret2y,Opplaenrat tainngd efrqeueipcmasehnftl(oewx3clIumdipnagirrmigehntt-olof-sussemassmets)mandmcommpumtersmof3tw1aMrea,rrcehpo2r0t2ed0 3w1itMhinaricnhta2n0g1ib9leGse. rEmxacnluyd2e4s,l5i2ce9n1c,e8s1a6nd2sp3e,c0t1r7um 2ad,4d2it5ioIntasl.yT1h1e,0G3r1ou7p8'4sm2e,a2s1u9re1o,3f3s7egm1e,5n5t2caUshKf7lo,4w05is8r0ec4onc4i0le8d1t,o61th2ec6lo8s9esStpeaqinui7v,a4le3n8t8G1A3 A P21m6e1a,s3u1r8e,(c2a,s9h30g)e4n4er3atOedthberyEoupreorpateio7n,0s,9o3n7p7a5ge 422401.,0G7e3rm(3a1n0y) 4886,126E6ur2o,2p7e85791,42916,641,39942,8025,882,79887,3I5t7al(y31,214,101) 95,6997701V,6o4d5a2co4m1,955,580318,31505U9K1 77,57890 715,3377933Ot2h,e1r6M0 ar9k3e0tsS3p,a4i2n976,2226973641368763(12,5756)37(68940R)e3s2t 4ofOththeeWr Eourlrdop8e,993,21318,4832632918225911,,473061 ((725450)) 12,,104798 CEuormompeo8n3F,5u4n2c5ti,o3n1s223,,09079417,9696612,739(23(01),5(18,00)467,6)7G5roVuopd6ac8o,4m375,74,0202780231,704152599,379951(,33,45125O)th7,e0r7M1 a3r1keMtsa1rc,5h621051887G29er0m55a6n7y2258,14244R1e,s6t7o3f th2e4W3,o0r9ld5 6,926,11417,3I8t9al4y649,1213021,76917126,129531,C4o7m9 m o1n,6F07unUctKio7n,s426,52187898211515,601071(410085)S(p1a,1in071)0,G5r7o6u8p6932,72017,3,572124,6529831O,7th7e6r1E4,u1r7o4p(e1,76,8454)177,7120119135517,079V2od7af8o8nEe uGroropuep6P0l,c15V8o4d,a9f3o2ne G74ro6u8p,6P3lc7 A n5n,5u7a8l RVeopdoarctoomn F5,o8r4m1 2706-3F21027076Ann1u,a4l5R3 eOptohretr2M02a0rkets 3,607 729 923 725 Rest of the World 9,448 1,492 1 1,699 2,178 Common Functions 1,976 897 73 (755) Group (IAS 18 basis) 71,582
VAwoenredneaffuefcatoilvenRfoerptGheofriorrsttut2imp0ePf2olr0tchAe nyenaurasleRnedpeodrt3o1nMFaorrcmh 2200-1F9 2a0n2d03N1 NMoaortcthee2s0st2t0oortetshpheecetcivcoeloyn.nAsomsooulindtlsiafdotratehtdeeydefainrsfieanndneadcn3ia1cMliaasrtclhas2tt0e2a0matenedm3n1teMsna(rtcchso2(0n1c9torienlnautetetiondfuee)esdf)oDr tehteaiilnetderbiemlorwevaierewthaendkestyaatumtooruynatsndrerceoggunliasteodryinfialirnrgivsindguraitngouthr eopyeeraart.inTghepraomfiot/u(nlotsfso)r2t0h2e0yeamr 2en0d1e9d3m12M01ar8chm20N1o8tien:c1luTdhees yneoanr-reencduerdrin3g1 fMeeasrcthha2t 0w2e0reinicnlcuudrereddd3u7rminiglltihoen pcrreepdaitra(2ti0o1n9s:fonrial,p2o0t1en8t:ia8l 0IPmOilolifoVnocdraefdoitn)erNepeowrteZdeainlaontdhearnidntchoemmeearngderexofpeVnosdeaifnontheeICndoinasaonliddaIdteedaiCnceollmulears.taAtet mtheentti.m2eInofcltuhdeeBdoinarOd tdheecrisiniocnomtoeraencdomexmpeenndseEirnnstht e&CYoonsuonlgidLaLtePd ainscthome setasttuattoemryeanut.dTithoer ftoortatlhreemyeuanreernadtieodn3o1f tMhearGchro2u0p2's0ainudFiteobrr,uEarryns2t0&19Y, oEurnngstL&LYP oaunndgoLthLePr mweemrebperrofvirimdisngofaErrannsgte&ofYsoeurvnigceGsltoobathleLGimroituepd., Afolrl sseerrvviicceess pthraotvwideerdetportohheibGitreodupbyduthreinFginthaencyieaalrReenpdoerdtin31g CMoaurcnhci2l 0(`2F0RiCs'a)noarlySseecdubrietlioews a. nEdrnEsxtc&haYngoeunCgoLmLmPiswsiaosna(p`pSoEiCnt'e)dfoars athsetaGturtoourpy'asuaduidtoitrotrofoprrothviedyeecaeraesneddebdy3311MMaarcrchh22002109. .AAclcloerndginaggleym, cenomts pthaarattwiveerefignuortepsroinhitbhietetdabblye btheeloFwRfCorotrhSeEyCe,arbsuetnwdeerde3n1otMinaracchco2r0d1a9ncaendw3it1hMthaercGhro2u0p1'8s aorwenininretesrpneacltaopfprreomvaulnperoaltiicoynfpoar indotno-athuediGt sreoruvpi'cseps,recveaiosuesd aeuardliytoirn, Pthreic2ew3aftienrahnocuiaselCyeoaorpteorsenLaLbPleaandsmoothoetrhmtreamnsbiteirofnirtmosalotefrPnraitcievwe asuteprphloiuersse,CwohoepreersreIqnuteirrenda.tiTohnaels.e2s0e2r0vicems 2h0ad19avmalu2e01o8f apmprNoxoitmesa:t1elFyee5s.2inmreillalitoionnthtorotuhgehimtopcleommepnletatitoionnaonfdnaerwe ianccclouudendtining tshtaentdaabrldesa,bnoovtea.blAy dIFeRscSrip1t5io"nRoefvethneuewforrokmpeCrofonrtrmaectdsbwyitthheCAusutdoimt aenrsd"RanisdkICFoRmSm16itt"eLeeiansoesrd"ewr htoich safeguard auditor independence when non-audit services are provided is set out in the Audit and Risk Committee report on pages 90 to 95. Parent company 3 22 Subsidiaries 16 1414 Subsidiaries - new accounting standards1 1 15 Audit fees 20 1721 Audit-related2 1 25 Corporate finance3 1 Other3 5 Non-audit fees 7 25 Total fees 27 1926 Net foreign exchange losses/(gains)1 (24) 1(65) Depreciation of property, plant and equipment (note 11): Owned assets 5,995 5,795 5,963 Leased assets 3,720 5947 Amortisation of intangible assets (note 10) 4,459 3,9414,399 Impairment of goodwill in subsidiaries, associates and joint arrangements (note 4) 1,685 3,525 Staff costs (note 24) 5,462 5,267 5,295 Amounts related to inventory included in cost of sales 5,699 5,886 6,045 Operating lease rentals payable 3,8263,788 Loss on disposal of property, plant and equipment and intangible assets 51 3336 Own costs capitalised attributable to the construction or acquisition of property, plant and equipment (902) (844) (829) Net gain on disposal of Vodafone New Zealand2 (note 27) (1,078) Net gain on disposal of tower infrastructure in Italy2 (note 27) (3,356) Net gain on disposal of Vodafone Malta2 (note 27) (170) 3. Operating profit/(loss) 1588 Vodafone Group Plc
OivdeenrvtiifeiwedSwtriathOitnvteheagtricvocuinRteryw.eIpfothrteArencnouvaelrRabelpeoartmoonuFntoromf th20e-cFas2h0-2g0enAenrantuinagl Ruenpitoirst l2e0s2s0th1a5n9thSetrcaatergryicinRgeapmorotuGntoovfertnhaenucneitF,itnhGe aimnopcaviiremaerlnntslaonscseisOatlhlFoceainterdaifnirnsftctooiarremdulsceattihoencOatrhryerinignfaomrmouantitoonfIamnpyagiromoednwtiollcaclulorscawtehdentoththeecaurnriytianngdvtahleune toof tahseseottshiesrgarsesaettesrotfhathnethueniptrpersoe-nrtatvaalounetohfetbhaesniseot cfathshe cflaorwrysinthgeaymaoreunetxopfecetaecdhtaosgseetnienratthee. uWneit.reImvipewairtmheenctalrorysisnegs rveaclouegnoifseadssfeotrs gfoorodewacihllcaoreunntoryt rienvwerhsiicbhlewine soupbesreaqteueant tlepaesrtioandsn.uTalhlye.rFecoorvfuerrathbeler dametaoiulsntoifsotuhreihmigphaierrmoefnftairrevviaelwueplreoscsecsossstseeof"Cdirsitpiocasal laacncoduvnatliuneg ijnudugseem. Iennatsssaensdsiknegyvsaoluuerciensuosfee, sthtiemeasttioimnautendcefrutatuinretyc"aisnh nflootwe s1a"rBeadsiisscoofupnrteedpatroattihoenir"ptoretsheentcovnalsuoeliduasitnedg fainparne-ctiaaxl dstiastceomuennt trsa.teAtchcaoturnetfilnegctpsocluicrrieesntGmoaordkwetilal sGseososdmweinlltsisonf otht esutibmjeectvatoluaemoofrmtisoantieoynabnudt tihsetersistekds fsoprecimifipcatiormtheentaassnentufaolrlywohricwhhtehneeevsetrimthaetrees iosfafnutiunrdeiccaatsihonfltohwatsthhaevaessneottmbeaeynbaedijmusptaeidr.eMd. aFnoargtehme epnutrpproespeaorfesimfopramiraml efinvteteysetainrgm, aanssaegtesmaerentgprolaunpsedfoarttthheeGlorwoueps'tslecvaeslhs-gfoernewrhaiticnhgthuenrietsa, rwehsiecphaararetetlhyeidbeanstisififaobrltehecavsahlufleoiwnsu, skenocawlcnualastcioanshs.-gPernoeprearttiyn,gpulannittsa.nTdheeqdueitpemrmenintaatniodnfionfittehelivGerdouinpt'asncgaisbhle-gaesnseertsatAintgeuanchitsreispoprrtiimngarpileyriboadseddatoen, ththeeGcroouunptrryevwiheewrse tthhee cGarroryuipngsuapmploiuens tcsoomfmitsunpircoapteiortnys, spelravnitcaensdanedqupirpomduecntts,.fiInficteaslhivfeldowinstafrnogmiblaessaestssewtsiathnidneoqnueitjyu-raicsdciocutinotnedarinevleasrgtmeleynitnsdteopdeentderemntinoef twhheectahsehr fthloewresifsroamnyoitnhdeircaatsisoentsthinatththaotsseamasesejutsrihsadvicetisounffaenreddmaanniamgpemairemntenmtolnoistso.rIsfpaenryfosrumcahnicnedisceaptaioranteelxyi,smts,utlhtieplreeccoavsher-agbelneearamtionugnutnoiftsthaere asset is estimated in order to determine the extent, if any, of the impairment loss. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to2w0h1i9chmthe20a1ss8et mbelCoansghs-.gIefntehreatriencgovuenritabRleepaomrtoaubnlet soefgamneansst eFtoorrthcaesyhe-gareneenrdaetidn3g1uMnitarisches2ti0m19at,etdhetoGbreoulepssretchoarndeitds acalrorsysinogn admisopuonsat,l tohfeVcoardrayfionngeaImndouianot fof3th,4e2a0ssmetilolirocna, sihn-cgluedneinragtianlgosusniotnisdrisepdouscaeldotfoi1ts,2r7e6comvielrlaiobnleaanmdoaufnotreaingdnaenxcimhapnagiremloensst loofss2is,0r7e9comginlilsioend iwmhmicehdiisatienlcyluindethdeinindciosmcoenstitnauteemdeonpte. rWathioenrse.tSheeerenhoatse b27ee"nAaccqhuaisnigtieonins tahnededsitismpoastaelss"usfeodr tfourdtheeterrdmeitnaeilsr.ecFoovretrhaebyleeaarmeonudnetda3n1d Manairmchpa2i0rm18e,ntthleoGssrosuubpsereqcuoerndtelyd raenvoenrs-ecsa,sthhechcaarrgryeionfga3m,1o7u0ntmoiflltihoen a(ss2e,t2o4r5cmasilhli-ognenneertaotifngtaxu)n,itinicsliundcerdeaisnedditsocothnetinreuveidseodpeesrtaitmioantse, oafsiatsrerescuoltvoefrathbleeraem-moeuanstu, rneomt etonteoxfceVeoddtahfeoncaerIrnydiniag'samfaoirunvtaltuheatlewsosuclodsthsaovfedbiesepnosdael.teSrpmaiinneSdphaaidn n8o40im2,p9a3ir0meInrtelloasnsdbOeethnerreEcougronpisee6d3f0orthRe oasmseatnioarOctahsehr-gEeunreorpaetin1g10un3i1t0in VproiodrafyoenaersAauntdomanotiimvepaCirommemntolnosFsurnecvtieornsasl1i0s5re3c0ognVisoeddafiomnmeeIddieaatOeltyheinr Mtheariknectosme2s5t5ate1m,6en8t5. 3Im,5p2a5irm4e.nImt lpoassirems eFnotllloowssiensg1o5u9r Vanonduaafol nime pGariormupenPtlcreVvioedwa,fothneeiGmrpoauiprmPelcnt charges recognised in the consolidated income statement within operating profit are stated below. Further detail on the events and circumstances that led to the recognition of the impairment charges is included later in this note. 2020 m
1 AAnnnnuuaallRReeppoorrtto2n0F2o0rm 20-F 2020 NNootteessttootthheeccoonnsosolidliadtaetdedfinfiannacniacliastlastteamteemntesn(tcso(nctoinnuteindu)ed) Goodwill The remaining carrying value of goodwill at 31 March was as follows: 2020 m 2019 m Key assumptions used in the value in use calculations The key assumptions used in determining the value in use are: Assumption How determined Projected adjusted EBITDA Projected adjusted EBITDA has been based on past experience adjusted for the following: - In Europe, mobile revenue is expected to benefit from increased usage as customers transition to higher data bundles, and new products and services are introduced. Fixed revenue is expected to continue to grow as penetration is increased and more products and services are sold to customers; - In the Rest of the World, revenue is expected to continue to grow as the penetration of faster data-enabled devices rises along with higher data bundle attachment rates, and new products and services are introduced. The segment is also expected to benefit from increased usage and penetration of M-Pesa in Africa; and - Margins are expected to be impacted by negative factors such as the cost of acquiring and retaining customers in increasingly competitive markets and by positive factors such as the efficiencies expected fromntohmeiinmapl lGemDePngtarotiwonthorfaGterofourpecinaisttisatfiovretsh.ePcroojuencttreydocfapopitearlaetxiopne;nadnitdur-ethTehleocnags-htefrlmowcofmorpeocuasntds afonrncuaapligtarol wextphernadteituinreadarjuesbteadseEdBoInTpDaAst aesxpeestriimenacteedanbdy imncalnuadgeemtheenot.nLgooinngg-tcearpmitaclomexppoeunnddituarnenureaqlugirroewd ttho rinatcerseadseetecrampianceidtyb, ymmeeatntahgeepmoepnutlamtiaoynbceovloewraegrethreaqnufioreremceansttsnoofmcienratlaiGnDoPf tghreoGwrthourpat'esslidcueenctoesthaendfoflalcoiwliitnatgemthaerkceotn-stipneuceidficgrfoawcttohrsi:ncroemvepneutietiavnedinatdejnussitteydleEvBeIlTs,DmAatduirsictyusosfebduasbinoevses.,IrnegEuulraotoprey, ceanpviitraolnemxpenent doirtuserectiosrr-espqueciriefidctionfrloaltlioonutecxappeacctaittyio-bnus.ilPdrien-gtanxexritsgkeandejruasttieodn d5iGscaonudntgriagtaebTithneedtwisocrokusn.tInrattheeaRppelsitedoftothteheWcoarslhd,flcoawpistaolfeexapcehnodfittuhree Gwriollubpe'srecqaushir-egdenfoerratthinegcounntiitnsuisedgeronlelroaultlyofbacsuerdreonnt athned rnieskxtfrgeeeneraratetiofonrmteonbyileeanr ebtownodrsksisisnueedmbeyrgtihneggmovarekrnetms.eCntapinittahleexrepsepnedcittiuvreeminacrlkuedte. sWchasehreoguotfvleorwnsmfeonrttbhoenpdurrcahteassecoonftparinopaemrtya,teprliaanl tcaonmdpeoqnueinptmoefnctreandidt criosmk,phuitgehr-sqoufatwlitayrel.ocParlojceocrtpeodralitceebnocendanradtespsemctaryumbepuasyemd.eTnthseTseoreanteasblaerethaedcjuosntteidnufeodr aprroisvkispiorenmoifupmrotodurcetfsleacntdbsoethrvtihceesi,ntchreeacsaesdhrfilsokwoffoinrevceassttins gfoirnleicqeunictieesanadndsptheectsryumstepmaaytmicernistskfoofr tehaechspreecliefvicanctacshas-ghe-gneenraetriantginugnuitn.iItninmclaukdinegamthoisunadtsjufostrmeexnpte,citnepdurtsenreewquailrsedanadrentehwelyeqauviatyilambalerkseptercitsrkumpr.eBmeiyuomnd(ththaet ifsivteheyereaqrufiorreedcaresttuprenrioovde,raalnodnagb-rouvnecaosrtisokffsrpeeecrtartuembyisaanssiunmveesdto. rLwonhgo-tiesrimnvgersotiwntghinrattheeFmoratrhkeetpausrpaowsehsoolef)tahnedGtrhoeurpi'sskvaadljuuestimn eunset, cbaeltcau, laaptipolniesd, atolornefglteecrtmthgeroriwskthorfattheeinsptoecpiefircpectausihty-giesnaeprpaltiinedg iumnmit eredliaattievley taot tthhee menadrkoefttahseafiwvehoyleea.rIfnodreectearsmt pineirniogdthaendrisiskbaadsjeudstoend tdhiescloouwnetrraotfe:,- the management has applied an adjustment for the systematic risk to each of the Group's cash-generating companies determined using an average of the betas of comparable listed telecommunications companies and, where available and appropriate, across a specific territory. Management has used a forward-looking equity market risk premium that takes into consideration both studies by independent economists, the long-term average equity market risk premium and the market risk premiums typically used by valuations practitioners. The risk adjusted discount rate is also based on typical leverage ratios of telecommunications companies in each cash-generating unit's respective market or region. Germany 22,900 12,479 Italy 2,480 3,654 25,380 16,133 Other 5,891 7,220 31,271 23,353 4. Impairment losses (continued) 16600 VVooddaaffoonneeGGrroouuppPPllcc
aOddvietirovnieawl aVdjoudstamfoennetsGtorotuhpe PfilvceOyveaSrtrbautesigniecsRs epplaonrtseursveidewinStthreatGegroicuRp'espiomrtpGaiormveernntatnecsteinGgoivneornrdanercetoFrienfalnecctiatlhseFeisntaimncaitaelds Oimthpearcti.nfTohremiamtipoanirOmthenetr cinhfaorrgmesatrieocnogYneiasredenadneddd3is1cMusasrecdhim20m2e0dFiaotreltyhebyeleoawr e, nardeedba3s1edMoanrcehxp2e0c2t0e,dthceasGhrfolouwp sreacfoterdr eadppimlypinagirtmheesnet cahdajurgstems eonfts.0C.8hbailllleinongi,ng0.t6rabdiilnlgioann, d0e.c1obniollmioicn caonnddit0i.o1nbs iilnlioSnpawinithmraetseprieacltisteodthinetGheropurpio'sr ifninvaensctmiaelnytesairnaSnpdamina,nIaregleamnde,nRt roemcoagnniaisaenddaVnoimdapfaoinrme Aenuttochmaorgtieveforlelospweicntgivaelrye.dTuchteioimn pinaiprrmoejencttcehdacragsehs frleolwatse.sDoluerliyngtothgeooydewarilelnadnedda3r1e Mrecaorcghni2s0e2d0inthtehreechoanssobeliednataend oinbcsoermveabslteatreempoensittiwonitihnign toopwearardtisnglopwr-ocfoits/(tlborsasn).dTshaendreccoomvepreatbitlieveaminotuennstsityfowr Sitphainint,hIeremlaunldti,-bRroamndaendiamaanrdkeVtoisdaefxopneectAeduttoomreomtivaeinaerelev5a.t6edbiilnliothne, m1e.d2iubmillitoenrm, .0T.9hebsiellfiaocntoarnsdha0v.e0lbeidllitoonmraenspagecetmiveenlty,praonjdecbtainsegdloownevracluasehinfluoswescaanlcdurleactioognnsi.sTinhgeaCnOimVpIDai-r1m9eonut tcbhraeragkehwasithderveseploepcetdtorathpeidGlyroinupe'asrliynv2e0s2tm0.eMntainnyScpoauinn.trTiehsehiamvpeariermqueinretdchbaursgienersesceosgtnoisleimd iwt iotrhsruessppeencdt toopIerrealtainodnsisaantdtriimbuptlaebmleentoteidnctrraevaesledrecsotrmicptieotnitsioanndanqduathreanatfionreemmeenastiuornees.dTinhceremaesaesduerecsontaokmeinctuonccoenrttaaiinnttyh.eAvsiraucsohnasveeqaudevnecres,eglyroawfftehcatendd eAcRonPoUmsiacraecetixvpietyctaenddtodibserulpotwederm. Manaynabguesmineensstehsa.sArseftlheectoeudtbthreesaek acsosnutminputeios ntos ipnroegxrpeescsteadndcaesvholfvloew, ist.iTs hexetirmempaeilrymcehnatllcehnagrignegs troecporgedniicset dthwe iftuhllreesxpteecntt taondRodmuraantiioanaonfdiVtsoidmapfaocnteoAnuVtoomdaoftoivnee'rsefbleucstinmesasneasgaenmdetnhte'scloautensttriaesssewshsmereenVt oofdalifkoenleyotrpaedriantgesa. nBdaseecdonoonminicfocromnadtiitoionnasvianiltahbelefiaves ayte3a1r bMusairncehs2s0p2la0n, .mMananagagememenent th'assvmieawdeof the long-term potential in these markets remains unchanged. The European Liberty Global assets acquired in July 2019 (see notei2n7u)sheacvaelcbueleantiosunbVsuomdaefdonweitAhiuntoemxiosttiinvge Gcaesrhm-gaennyeIrtaatliyngSpuaniintsIirnelGanedrmRaonmya, nCizae%ch%Re%pu%bli%c, %HuPnrgea-rtayxarnidskRaodmjuasnteiad. dTihsecopurnimt raartye r7e.a5so10n.f3o9r .a2cq7u.6ir1in0g.2th9e.1bLusoinnge-stseersmwgarsotwothcrreaattee0a.5co0n.5ve0r.g5e0d.5na1t.io0n1a.l9pPrroovjiedceter dofaddijguisttaeldinEfBraIsTtrDuAct1ur3e.8in0G.2e8rm.2a3n.y0, 8to.0ge3t1h.e3rPwriotjhecctreedatcinagpictaolnevxeprgeneddictuorme2m2u0n.i1c-a2t0io.7ns1o2p.5e-r1a3to.4rs1i6n.2th-1e8C.1ze1c0h.7R-1ep5u.2bl1i3c,.7H-1u8n.g5a1ry4.a1n-d23R.4omSeannsiait.ivFiotylloawnailnygsitsheThineteegstriamtiaotnedofrethceovaecrqaubilreedambousuinnteossfetsh,emGarnoaugpe'ms eonptecraotniosnidseirns GtheermcaasnhyflaonwdsIwtailtyheinxctheeesdethcaesirhc-gaerrnyeirnagtinvagluuensitsbytob6e.6labriglleiloynianntedrde1p.8enbdilelniot nanrdesmpeocntiivtoerlsy.pIefrftohremaassnucme optnioancsouusnetdryi-nletvheelibmapsaisi.rmOenn3t1reMviaerwchw2e0re20c,htahnegGedrotoupamgreeragteedr ietxstpenaststihvaentoaswperreisnefnrtaesdtruincttuhreefionllIotawlyinwg ittahbIleN,WthIeTch(saenegnesotwe o2u7l)d. ,Oinn itshoeladtaioten,olfetahdetmo earngiemr,pmaiarnmaegnetmloensst mbeoinngitorreecdogpneirsfeodrmfoarntcheeoyfeiatsr eonpdeeradti3o1nsMinarIcthal2y0o2n0.aCcohaunngtrey-rweqiudierebdasfiosracnadrrcyoinngsidvearluede tVooedqaufaolnereIctoavlye,rainbcleluadminogunittsGpaesrmsivaenytoIwtaelryipnpfrsapstprsucPtruer-et,atxorbisekoandejucsatsehd-gdeisnceoruantitnrgatuen1it.1fo1r.7thLeopnugrp-toesrme ogfriomwptahirrmateen(t1t.e0s)ti(n2g.0a)sParto3je1ctMedaracdhju2s0te2d0.ENBoITimDpAa1ir(m3e.2n)t (i3n.1re)lPatrioojnecttoedVocadpaiftoanleexItpaelyndwitouureld2 b1e1.n4e7c.e9ss1a1ry66if11imVpoadiramfoennet tGesrotiunpg PwlacsApnenrfuoarlmReedpoonrta20p2o0st-Amnenrugaelr Rbaepsiosratto3n1FMoramrc2h02-F02200.2V0alue in use assumptions The table below shows key assumptions used in the value in use calculations. Assumptions used in value
diAscnlnousueadablleRloRwe.epRpeocoorvrettroa2bnle0Fam2oo0urnmt l2e0s-sFca2r0r2y0inNgNvaoloutete(epsrsitotor ototthrehceoegcncoitoionnnsoofsiomlipdaliiarmdteanettdcehdafrignefisa)nGneacrmniaancyliaIstatllaystStpeaaminteIreemlanntdesRn(otmcsaon(inactobinnnubtneinbdnu)ebdn) MbannBagaesme cenastecoasnsaitd3er1eMd tahrechfo2l0lo2w0i6n.g6r1e.a8so(0n.a8b)ly(0p.6o)ss(i0b.l1e)cChhaannggees iinn pthreojkeecyteaddajudjsutesdteEdBEIBTIDTAD1Aa1nDdelcornega-steerbmy g5rpopwst(h3.r3a)te(1a.s0s)u(m2p.3ti)o(n1s.,1l)e(a0v.i3n)gInacllreoathseerbayss5upmpspt1i8o.n4s5u.n1c0h.a9nge0d..1DCuheantogeinicnreloansegd-tuernmcegrtraoiwnttyh froaltleowDiencgretahseeCbOy V1pIDps-109.2o0u.t8br(e1a.5k), m(0a.8n)ag(0e.m2)enInt chraesasweidbeyn1epdptshe15r.a8ng3e.0of r(0ea.4s)onaTblhyepcoasrsryibinlegcvhaalnugesesfoinr VthoedkaefyonaedUjuKst,edPoErBtuIgTaDl,ACzgercohwRtherpautbelaicssaunmdpHtiounngtaorpyliunscolurdmeignouosd5wpiellrcaerinstianggefproomintasc(q2u0i1si9ti:o2nspearncde/notratgheeppouirncths)a.sTehoef soepnesriatitvinitgyliacneanlcyesissoprrsepseenctterudmisrpigrehptsa.rWedhoilnetthheebraesciosvtehraatbtlheearmeaosuonntasbfloyr pthoessseibolepecrhaatninggecionmeapcahnikeesyaraessnuomt pmtiaotenrwiaolluyldgrneoattehratvheana tchoenirsecqaurreynitniaglvimalupea,cteaocnhohthaesraalsoswumerprtiisoknsofusgeivdiinngtrhieseimtopaanirmimepnatirremveienwt t.hTaht ewaosuslodcbiaetemdaitmerpiaacl ttoonthteheGirmouppaigrmiveennttahsesiersrsemlaetinvteissipzreesoernttheedcionmthpeotsaitbiolenboeflothwe,irwciathrrtyhiengexvcaelupeti.oInf othfeVaosdsuamfopnteioAnustuosmedotiinvet,hwe ihmerpeaniromreenatsorenvaibelwy wpoesrseibclheacnhgaendgteoian gthreeakteeryeaxstseunmt tphtaionnasswporeuslednmteadteinriathlleyfcohlalonwgeintghetaibmlep,atihrme cehnat ncgheasrgweoruelcdo,ginnisiseodl.aMtioann,algeeamd etontabneilmiepvaeisrmtheant tnloosresabseoinnagbrleycpoogsnsiisbelde ionrtfhoereyseeaerabenledecdha3n1geMianrcthhe2p0r2e0-t.aCxhaadnjguseteredqduiisrceodufnotrrcaaterryorinpgrovjaelcuteedtoceaqpuitaall reexcpoevnedriatbulree2amwoouunldt UcaKusPeotrhtuegdailffCerzeenccheRbeeptwubeleinc HthuencgaarrryyipnpgsvpaplusepapnsdpprescPorvee-rtaabxlerisakmaodujnutstfeodr adnisycocuansht-rgaetene1r.a1ti1n.g5 u1n.7it1t.o9bLeomngat-eteriramllygrdoiwfftehrernatteto(1th.3e) b(1as.6e)c(a1s.e8) (2.2) Projected adjusted EBITDA1 (2.3) (3.4) (4.0) (3.9) Projected capital expenditure2 4.5 7.1 12.5 9.1 Notes: 1 Projected adjusted EBITDA is expressed as the compound annual growth rates in the initial five years for all cash-generating units of the plans used for impairment testing. 2 Projected capital expenditure, which excludes licences and spectrum, is expressed as capital expenditure as a percentage of revenue in the initial five years for all cash-generating units of the plans used for impairment testing. VodafoneZiggo The recoverable amount for VodafoneZiggo is not materially greater than its carrying value. If adverse impacts of economic, competitive, regulatory or other factors were to cause significant deterioration in the operations of VodafoneZiggo and the entity's expected future cash flows, this may lead to an impairment loss being recognised. 4. Impairment losses (continued) 1622 Vodaffone GrroouuppPPllcc
SOpvaeinO.rTvvheeieimrvpwaiiermweSnttractheagrigceRweipthorrteSsptreactet gtoicthReepGorrotuGpo'sviGnevoersvtmneeanrtninncRaeonmceanFiianwFaaisnndrciaviennacblysiaalnsiOncthreOaesterhinietnhrefoyiinerlmdfoonarRmotmioaannitaionngYoveearrnemnednetdb3o1ndMsawrchhic2h0i1n9crTehaeseddistchleodsuisrceosubnetlorawtefaonr dthme ayneaagr eemndeendt's31reMasasrecshsm2e0n1t9oafrtehaeslopnregv-itoerumslygrdoiwsctlhosreadteianptphleie3d1bMeyaornchd 2th0e1f9ivAenyneuaarlbRuespinoerts.sFpolranth. eVyoedaarfoennedeIdde3a1LMimaritcehd2T0h1e9,GtrhoeuGp'rsouinpvreesctmorednetdinimVpoadiramfoennet Icdheaargwesasotfest2e.d9 bfoilrliiomnp,ai0rm.3ebnitllaito3n,1aMndarc0h.320b1il9lioinnainccroersdpaenccteofwtihthe aGprpoluicpa'bslienvIFeRstSm.eInmtspainirSmpeanitnt,eRstoinmganwiaasacnodnVsioddearefodnaepIpdreoaprrieastpeeacstiaverelysu. Tlthoef immaprakiertmceonntdcihtiaorngsesanwdidthecrelisnpeesctintothSepqauinotaenddsRhaorme apnriiacereolfattehesocloemlyptaongyodoudrwiniglltahnedptehreioidm. pTahiermmeanrtkcehtaerngveirwointmh reenstpiencItntdoiaVroedmafaoinnse hIdigehalryeclahtaelsletongtihnegjowiintthvseingtnuirfeic'asnctaprrryicininggvparleuses.uArel,l wimhpicahirmhaesnltecdhtaorginesduasrteryreccoongsnoilsieddatiinonthbeuctoanssioglnidifaitceadnitnlycolomweesrtaletevmeleonftpwroitfhiitanboilpietyraatnindgg(rleoastse)/rpprroefsits.uTrehoenrefcinoavnecrainbgle. MamaonuagnetsmfeonrtScpoanintinaunedsRtoomcoannsiiadearreitr7e.a1sobnilalibolne atondass0u.m7ebialnlioonvereraslplemctaivrkeelyt aannddparriecibnagseredcoonvevrayl,uheoiwn euvseerctahlecutilmatiiongnsa. nTdhme raegcnoivtuedraebrleemaaminosuhntigfholrythuencGerrotauipn'.sAsctackoerdiinngVloyd, athfoernee aIrdeeaa iwsid1e.6rabniglleioonf panodtenistibaalsoeudtcoonmitessfianirdvearilvuienlgesasccuorsrtesnot fvdieiswpoosfaflu. tFuorellobwusiinngescshaplelrefnogrminagnccuer,rceansthtrfaldoiwngs aanndddeecbotnfoimnaicnccionngdrietiqounisr,emmeanntasgfeomr evnatluheasinreuassesepsusrepdotshees.eMxpaencatgeedmfuetnutrheabsucsoinnecslsudpeedrftohramt athnecefaiinr Svpalauine.lFesosllcoowstins gofthdiisspreoassaslebsasmseednot,nparnojoebctseedrvcaabslhefslhoawres aprreicleowisetrheanadppthriosphriaastelebdatsoisatno idmetpearimrmineentthcehraercgoevweritahblreesapmecotutnot tohfethGeroGurpo'uspi'nsviensvtemsetmnteinnt iinn VVooddaaffoonnee IIddeeaa fworasthdeetpeurrmpionseedotfoimbepIaNirRm1e2n3t tbeisltliinogn f(or1.t6hebiyleliaorne)nadseadt3311MMaarrcchh22001199..WVohderaefotnhee Irdeceoa'vsersahbalree apmricoeunist iosblseesrsvtahbalne itnheaiqnuvoestetmd emnat'rksectaarrnydinisgcaomnosuidnetr,etdheaclaervreylin1ginapmuotuunntdiesrrtehdeuIcFeRdSto1t3hefariercvoavleureabhlieeraamrcohuyn. tAasndmaannaigmepmaeirnmt ehnatsiaslsreoccoognnsiisdeedr.eTdhtheeinovbessetrmveanblteinanVdoudnaqfounoeteIddeinapwuatssraellsaotetdesttoedthfeornuimmpbaeirrmanedntcaosstaot f3t0hSe enpetwemsbhearre2s0t1o8b. eThisesusehdaruenpdreicr ethoefrIiNghRt3s8is.5su5ei,mthpelireedcaovreercaobvleeraabmloeuanmt oquunotteodf aINboRv1e5i2s bcoilnlisoinde(re1d.8tobiblelioanl)evwehli2chvawluasatlioown eurntdhearnththeeIFcaRrSry1in3gfaviarluvealoufethhieerinarvcehsytm. Tehnteartetchoevesarambeledaamteo. uAnnt iismp0a.i2rmbeilnlitocnhhariggheeorftha0n.3thbeillciaornrywinags rveaclougenoisfetdhetoinrveedsutcmeetnhteacsaartry3i1ngMvaarlcuhe2o0f1t9heanjodinntovfeunrttuhreer icnhtahnegGesrotoupth'se ccoarnrsyoilnidgavteadlusetaotremimepnatiormf feinntacnhcaiarlgeporseictoiognn.isFeodlloinwSinegpttehmebfoerrm20a1l 8ananreournecqeumireedn.t Tohf ethceatreryrminsgovfaVluoedoaffoVnoedIadfeoan'es rIdigehatsthisastuheasonbe2e0nMteastrecdh f2o0r1i9m, pthaeirmVeondtafisondeepIdeenadesnhtaroenpariwceidwe ernant g`eexo-rfiagshstus'mopnti2o9nsM, ianrcclhud2i0n1g9thaendlecvleolsoefdmataIrNkeRt 1p8ri.c2i5n.gBaansdedthoenrienafloisramtiaotnioonfaavnatiilcaibplaetetdo mmaerngaegre-mreelanttedono3p1erMatianrgchex2p0e1n9s,etshaenrdeccoavpeitraalbelexpaemnoduitnutroefstyhneeGrgrioeus.pS'shionuvldesatmnyenotf itnheVaosdsaufmonpetiIodnesanwotams daeteteriramliisnee,dinbawsheodloenorkeiny paasrstu,mthpetsieonwsirlel liamtipnagcttothteheenntuitmy'bseerxopfencetwedsfhuaturerse tcoaswhhfilcohwms aannadgmemayenrtesinutletnindeadftuotusruebismcrpibaierm(8e.8ntb. iTllhioenc)aarrnydintghevaaslusoeciisaatelsdocdoestpeunnddeenrtthoen ttehremasboilfittyheofritghhetsenististuyeto(INreRfi1n2a.n5cepeirtsslhiaabreil)i.tiAesfteasr ttahkeiyngfailnl tdouaec. cSohuonutldthtehsies kneoyt basesaucmhpietvioanbslea,ntdhitshwe iqlluiomtepdacshtathreeplirqicuei,dithtyeorfecVoovdearafobnleeaImdeoauanntdofwtihllerGesruolutpin'sainftuetruerset
impairment, in whole or in part, of the Group's investment. Based solely on the closing share price of Vodafone Idea on 13 May 2019, the recoverable amount of the Group's 45.2% interest would be 0.6 billion lower than the recoverable amount as at 31 March 2019. No adjustment has been made to the carrying value of the Vodafone Idea joint venture as this is considered a non-adjusting event. Value in use assumptions The table below shows key assumptions used in the value in use calculations. Assumptions used in value in use calculation Germany Italy Spain Romania % % % % Pre-tax adjusted discount rate 8.3 10.5 9.3 11.1 Long-term growth rate 0.5 1.0 0.5 1.0 Projected adjusted EBITDA1 2.9 (0.1) 9.2 3.8 Projected capital expenditure2 16.919.9 12.212.5 17.118.4 12.112.7 Notes: 1 Projected adjusted EBITDA is expressed as the compound annual growth rates in the initial five years for all cash-generating units of the plans used for impairment testing. 2 Projected capital expenditure, which excludes licences and spectrum, is expressed as capital expenditure as a percentage of revenue in the initial five years for all cash-generating units of the plans used for impairment testing. 116633 VoVdaofdoanfeonGeroGurpouPplcPlc AnAnunanluRaelpRoerpt onrtF2o0rm2020-F 2020
co1nsAidAenrendnnthueuafoalllloRwRienegprpeoaosrornttaob2lny0pFo2sos0ibrmle c2h0a-Fng2e0s2i0n NthNe okoetyteaedsjsuttsoteodtthEhBeIeTcDcoAo1nnassossuomlipdtliioandtwaehtidleedlefianvfiinangnaalcl noitahcelriaasstslausmttpetaimonteseumnnctheasnng(etcds.oT(nhcetoaisnsnoucitaetiendduim)epda)cSteonnsitthiveitimy apnaairlmyseinstTahseseessstmimeantteids rperceosevnetreadblienatmheotuanbtleofbtehloewG.rMouapn'asgoepmereanttiobnesliienveGsetrhmatannyo,rIetaaslyo,nSabplayinpaonsdsibRloemoranfoiareesxeceeaebdlethcehiarncgaerriyninagnyvaolfutehseboythe7r.4asbsiullmiopnt,ion2s.7inbcillulidoend, in0.t5hebitallbiolenaabnodve0w.1obulildlicoanurseestpheectciavrerlyyi.nIgf vthaeluaessoufmanpytiocnasshu-sgeedneinratthinegimunpiatirtommenattererivailelwy ewxecreeedchitasnrgeecdovtoeraabglreeaatmeroeuxntte.nRtethcoavnearsabplreesaemnoteudntinletshsecfaorlrlyoiwnginvgatlaubeleD, ethcerecahsaenbgyes2pwposuBlda,sienciassoelaItniocnre,alseeadbyto2apnpsimpbanirmbenntblonsGs ebreminagnyre4c.o2g7n.i4se1d0f.8orIttahleyy1e.a5r2e.n7d4e.d13S1paMinar(c0h.32)001.95.1C.4haRnogme arenqiauire0d.1fo0r.2caNrroytien:g1vParloujeectoteedqaudajlursetceodvEeBraIbTlDe AamisouenxtpGreesrsmedanays IthtaelycoSmpapionuRndomanannuiaalpgprsopwptshpraptsepspins Pthree-itnaixtiaadl jfuivseteydedairsscfoournatlrlactaes2h.-1ge2n.5er0a.t5in1g.2unLiotsngof-ttehrempglaronws uthserdatfeo(r2i.m2)pa(2ir.m9)e(n0t.7te)s(t1in.5g). TPrhoejeccatrerdyiandgjuvsatleudesEfBoIrTVDoAd1af(o4n.e9)U(K4.,6P) o(1rt.u3g)a(l2a.0n)dPIrroejleacntdedinccalpuidtealgeoxopdewnidliltuarries2in1g5f.4ro1m1.t2he2i.r7a3c.q3uNisoittieosn: b1yPtrhoejeGctreoduapdajnudst/eodr tEhBeIpTuDrcAhaisseeoxfproepsesreadtiansgtlhiececnocmespoour nsdpeacntrnuumalrgigrohwtst.hWrahtielse itnhethreecinoivteiarlabfilveeaymeoaursntfsorfoarllthceasseh-ogpeenreartaintigngcoumniptsanoifetshaereplnaontsmusaetedrifaolrlyimgpreaairtemretnhtatnesthtienigr.c2arPryroinjegcvteadlucea,peiataclhehxapsenadliotwureer, rwishkicohf egxivcilnugdersisleicteonicmespaainrmd espnet cthtrautmw,oius ledxbperemssaetderaiaslctaoptihtael Gexrpoeunpdgitiuvreenatsheairpererclaetnivtaegseizoef orervtehneuceominptohseitiinointiaolfftihveeiryecaarrsryfionrgavllacluaes.hT-gheencehraatninggesuninittshoefftohlelopwlainngs tuasbelde ftooraismsupmaiprmtioennst tuessetdinign. tMheanimagpeamiremnetnt review would have, in isolation, led to an impairment loss being recognised in the year ended 31 March 2019. Change required for carrying value to equal recoverable amount UK Ireland Portugal pps pps pps Pre-tax risk adjusted discount rate 0.7 1.2 0.7 Long-term growth rate (0.9) (1.4) (0.7) Projected adjusted EBITDA1 (1.9) (2.7) (1.4) Projected capital expenditure2 3.3 8.4 3.4 Notes: 1 Projected adjusted EBITDA is expressed as the compound annual growth rates in the initial five years for all cash-generating units of the plans used for impairment testing. 2 Projected capital expenditure, which excludes licences and spectrum, is expressed as capital expenditure as a percentage of revenue in the initial five years for all cash-generating units of the plans used for impairment testing. VodafoneZiggo Following the merger, the recoverable amount for VodafoneZiggo is not materially greater than its carrying value. If adverse impacts of economic, competitive, regulatory or other factors were to cause significant deterioration in the operations of VodafoneZiggo and the entity's expected future cash flows, this may lead to an impairment loss being recognised. 4. Impairment losses (continued) 16644 VVooddaaffoonneeGGrroouuppPPllcc
esOtivmeaOterdvvreeiceorvvewraiebwleSatmraoteugnitcoRf ethpeorGt rSoturapt'esgoicpeRreaptioorntsGinovGGeeromravnnye,arSnpnacianeanncde RFionmFaainnianceaxicneaecdlsithalesirOctahrOryeitnrghivenalrufoeisnbrmy fo7a.7rmbtiiloliaonnt,ion0Y.3ebairlleionndeadnd31nMilarrecshp2ec0t1iv8eTlyh.eTdhisecclohsaunrgeessbienlothwe ffoorlltohweiynegatraebnledetoda3s1suMmaprtcihon2s01us8eadreinatshperiemvipoauirsmlyepnut brelivsiheewd winotuhled,3i1nMisoarlacthio2n0,1l9eaAdntonuaanl Rimeppaoirrtm. Venatluloesisnbuesiengasrseucmogpntiiosends Tfohrethtaebyleeabreelonwdesdh3o1wMs kaerychas2s0u1m8p. tCiohnasngueserdeqinuitrheedvfaolruceairnryuinseg cvaallcuuelatotioenqsu.aAl rsescuomvpetriaobnlseuasmedouinntvGaleuremiannuysSepcaailncuRloatmioanniGaeprpmsapnpysSpppasinPrIeta-tlayxRroismkaandijaus%te%d d%isc%ouPnrter-atatex2a.d0ju0s.2te0d.1diLscoonugn-tterramte g8r.o3w9t.h7 r1a0t.e4(92..83)L(o0n.2g)-t(e0r.m1)gPrroowjethcteradtead0j.u5s1te.5d 1E.B0I1T.5DAPr1oj(e3c.3te)d(0a.d3j)u(s0te.d1)EPBroITjeDctAed1 c3a.7pi5ta.9l e(x2p.6e)n2d.i6tuPrero2je1c6t.e3d1c.4ap0i.t4alNeoxtpeesn:d1itPurroej2ec1t6e.d6a1d8ju.8st1ed6.E8B1I7T.D4 A12i.s1ex1p3r.3es1se1d.9as14th.6e Ncoomtepso:u1nPdraonjencutaeldgardojwusthterdaEteBs IiTnDthAe iins ietixaplrfeisvseeydeaasrsthfeorcaolml cpaosuhn-dgeannenruaatilnggrouwnitths oraftethseinpltahnesiunisteidalffoivr eimypeaarirsmfoerntaltlesctainshg-.g2enPerorajeticntgeducnaitpsitoafltehxeppelnadnistuursee,dwfhoirchimepxacilrumdeenstlitceesnticnegs. a2nPdrospjeecctterdumca, pisitaelxepxrepsesnedditausrec,awpihtaicl hexepxecnludditeusrelicaesnacpeesracnedntsapgeecotrfurmev, eisnuexepirnetshseedinaisticalapfiivtael yeexapresnfdoirtuarlel caassah-pgeernceernattaignegoufnritesvoenf utheeinpltahnesiunsiteidalffoirveimypeaarirsmfoerntaltlesctainshg-.gTehneercaatirnryginugnivtsaloufetshfeopr lVanosduafsoendefoUrKim, Ppoairrtmugeanlt, Iterestlainngd. aSnednsCitzievcithyRaneapulybsliiscOintchleurdtehagnooadswdiilslclaorsiseidngbeflroowm, tmheainraagceqmuiesnittiobnelbieyvethsethGartonuopraenadso/onratbhley ppuorscshibalseecohfaonpgeeraintinagnyliocefnthceesaobrovspeekcetryuamssruigmhptsti.oWnshwileouthlde creacuosevetrhaebcleararmyionugnvtsalfuoer othfeasneyocpaesrha-tginegnecroamtinpganuinesitatroemnoattemriaatlelyriaelxlcyegerdeaittserretchoavnetrhaebilrecaamrroyuinngt.vTahluee, each has a lower risk of giving rise to impairment that would be material to the Group given their relative size or the composition of their carrying value. The changes in the following table to assumptions used in the impairment review would have, in isolation, led to an impairment loss being recognised in the year ended 31 March 2018. Change required for carrying value to equal recoverable amount UK Ireland Portugal Czech Republic pps pps pps pps Pre-tax adjusted discount rate 0.5 0.6 1.0 3.1 Long-term growth rate (0.6) (0.7) (1.1) (4.0) Projected adjusted EBITDA1 (0.8) (1.0) (1.5) (4.0) Projected capital expenditure2 3.2 4.2 6.4 16.9 Notes: 1 Projected adjusted EBITDA is expressed as the compound annual growth rates in the initial five years for all cash-generating units of the plans used for impairment testing. 2 Projected capital expenditure, which excludes licences and spectrum, is expressed as capital expenditure as a percentage of revenue in the initial five years for all cash-generating units of the plans used for impairment testing. 116655 VoVdaofdoanfeonGeroGurpouPplcPlc AnAnunanluRaelpRoerpt onrtF2o0rm2020-F 2020
166 Vodaffone GrroouuppPPllcc NNootteessttootthheeccoonnsosolidliadtaetdedfinfiannacniacliastlastteamteemntesn(tcso(nctoinnuteindu)ed) Investment income comprises interest received from short-term investments and other receivables. Financing costs mainly arise from interest due on bonds and commercial paper issued, bank loans and the results of hedging transactions used to manage foreign exchange and interest rate movements. 2020 m 2019 m 2018 m Notes: 1 Includes 269 million (2019: 3(1015)mFaililriovna;lu2e01th8r:ou1g8h7pmroifllitioann)dolfoisnst:eDreesrtivoantifvoerseignopetxiochnas,ngfoerwdearridvasttiavretisn.g2sIwncalpusdaensdmfaurtkurteosm2 a1r,1k2et9l3o9ss1(o7n5t)hFeoorpeitigonnesxrcehlaatningge t2o0t5he19m0anIdnatteorreystcoonnvleearstiebllieabboilnitdiessd3ri3v0en by2t,h0e88lo1w,0e7r4s3h,a5r4e9pNriceet fainndanmcianrgkctoosmtsa3rk,3e0t1lo1s,s6e5s5o3n8c9e5rt.aIinnveecsotmnoemnticinhceodmgeinagnidnfsitnruamnceinntgscdorsivtsen16b6yAlonwnuerualoanllgR-tReeremppyoieolrdrst.toI2nnv0esFt2moe0nrmt in2c0o-mFe2:0A20mortised cost 157 286339 Fair value through profit and loss 91 14724 Foreign exchange 322 248 433685 Financing costs: Items in hedge relationships: Other loans 1774 Interest rate and cross-currency interest rate swaps (583) (414) (128) Fair value hedging instrument (14) (8) 48 Fair value of hedged item 6 10(36) Other financial liabilities held at amortised cost: Bank loans and overdrafts 586 336317 Bonds and other liabilities1 1,850 1,567 885 Interest charge/(credit) on settlement of tax issues 40 (1)
OvertvhiaetwwOe vopSetrraatteegeiicthReerpuosritngermviaenwagAenmneunatl'sReesptoimrtaoten oFfotrhme 2m0o-sFt 2li0k2e0lySotruattceogmiceRwehpeorret GthoeviessrnuaenscaereGboivnearrnya, nocrethFeineaxnpceicatlesdFvinaaluneciaaplspOrotahcehr winhfeorremtahtieoinssOuethsehraivnefoarmraantgioenoTf hpiossnsiobtleeeoxuptlcaoimnsehs.owThoeuGr rGoruopurpectaoxgcnhisaersgeinaterirseesst.oTnhleatdeepfearirdedtaxtaexs saescptiaornt ooff ftihneanncoitnegalcsoostpsr,oavniddeasniynfpoernmalattiieosn, iofnapopulriceaxbpleec,taesdpfuartut oref ttahxe cinhcaorgmees taanxdesxeptsenosuet.tDheeftearxreadssteatxsihsetlhdeatcarxosesxptheectGedrotuopbteogpaetyhaebrlewoitrhroecuorvveierawbloeninwthheethfuertuorre naoritswinegefxropmecttetmo pboeraabryledtioffmeraekneceussebeotfwteheensethine cthaerrfyuitnugrea.mAocucnotusnotfinagsspeotslicaineds lIinacboilmiteietsaixnethxpeefninseanrceiparlessteantetsmtehnetssuamndotfhtehecocrurerrsepnotnadnidngdetafxerbreadsetsaxuesse.dCinurtrheentctoamxppuatyaatibolne oofr rtaexcaobvleerapbrloefiits. Ibtaissedacocnoutanxteadblfeorpruosfiintgfothrethsetayteemare. nTtaoxfabfilneapnrcoifailtpdoifsfietirosnfrloiambiplirtoyfimt eatshroedp.oDrteefderinretdhteaixnclioambielitsiteasteamreegntenbeercaalulyserescoomgeniisteedmsfoorfailnl ctoaxmaebloerteexmppeonrsaeryardeiftafexraebnlceeosradneddduecfteibrrleedintadxifafsesreetnstayreearrescoorgmniaseydnteovethrebeexttaexnatbtlheaot ritdiesdpurcotbibalbel.eTthhaetGtermouppo'rsalriyabdiilfifteyrefonrcecsurorrentatxtaabxleispcraolfciutslawteidll ubseinagvatialxabraleteasgaanindsltawwhsicthhadt ehdauvcetibbeleenteemnapcotreadryordisfufbersetanncteisveclaynebneacutteidlisbeyd.thSeucrehpaosrsteintsgapnedriloiadbdilaitteie. sTahree GnoroturepcroegcnoigsnediseifstphreotveimsiponorsafroyrduinffceerretnaicnetaarxispeossfirtoiomnsthwehiennititahlerGecroogunpithioasn a(opthreesretnhtaonbilnigaatbiuonsinasesasrceosmulbt ionfaatiopna)stoefvaesnstetasnadnmd alinaabgileimtieesntinjuadtgreanthsaacttiitoins tphraotbaafbfelecttshanteitthheerretwheiltlabxeabalfeupturorefiot untofrlotwheoafceccoounnotimngicpbreonfietf.iDtseffreormredthteaxGlrioaubpilittoiesseattrlee nthoet roebcloiggantiisoend. tUontcheeretaxitnentatxthpeoysiatrioisnesfaroremasthseesisneidtiaalnrdecmoegansiutiroend oofnnaonni-stsauxedbeyduiscstuibelebagsoiosdwwitihlli.nDthefeejrureridsdtaicxtions liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and interests in joint arrangements, except where the Group is able to cionnctormolethoer rineveeqrusaitlyo. f2t0h2e0temmp2o0ra1r9ydmiff2e0re1n8cemanIdncitoimseprtoaxbaebxlpeetnhsaet tUhKe teompeproartianrgy pdrifoffeitrsenacree mwiolrlentohtarnevoefrfsseetinbythsetaftourteosreyeaalblolewfauntuceres.fTohr ecacpairtrayliinngvaesmtmouenntt oinf dtheefeUrrKednteatxwaosrsketasnidssryevstieemwsedplautseoancghorienpgorintitnegrepset rcioosdtsdianteclaunddinagdtjhuostseedatroisrienfglefcrot cmhathneges1i0n.7thbeilGlioronuopf'sspaescstersusmmepnatytmhaetntssuftoficthieenUt tKaxgaobvleerpnrmofeitnstwinil2l0b0e0a,v2a0il1a3blaentdo2a0l1lo8w. UalnlitoerdpKaritnogfdtohme acsosreptotroatbieonretcaoxveexrpeden. sDee/(fcerrereddit)t:axCuisrrceanlct uyleaatred42at2t1h7e0taAxdrjautsetsmtehnattsairnereexsppeecctteodftopraioprpylyeairnst(h6e)p(e9r)io(5d)w36he1n2t6h5eOlivabeirlsietyasiscuserrtetlnetdtaoxr tehxepaesnsseet/(rceraeldisiet)d:,Cbuasrreednot nyetaarx9r0at0es1,t0h9a8t h1a,v05e5beAednjuesntamcetendtsoirnsruebsspteacnttiovfelpyrieonrayceteadrsb8y0t(h4e8r)e(p1o0r2ti)n9g8p0er1i,o0d50d9a5te3. TTaoxtaal scsuertrseannt dtalxiaebxilpietinessea1re,0o1f6fs1e,t0w62h1en,01th8erDeeifserareledgtaalxlyoennoforrigcienaabtlieonriganhtdtroevseetrsoaflfocfutreremnptotaraxryasdsieftfseraegnacienss:t Ucunrirteendt Ktaixnglidaobmilitdieefsearnreddwtahxen(3t1h8e)y(e2i3th2e)r3r9elOatveetroseianscodmefeertraexdestalxev5i5e2d 6b6y6t(h1e,9s3am6)eTtoaxtaaltidoenfearurethdotraitxyeoxnpeenitshee/r(cthreedsita)m2e34ta4x3a4b(le1,e8n9t7it)yToortaolnindcifofmereenttaxtaexxapbelenseen/t(ictrieesdiwt)h1ic,2h5i0nt1e,n4d96to(8s7e9tt)le6.thTeaxcuatriroennt1t1a6x6a7s7seVtsoadnadfolniaebGilritoieuspoPnlcaVneotdbafaosnise. GTaroxuips cPhlcarAgendnuoarlcRreedpioterdt 2to02t0he income statement, except when it relates to items charged or credited to other comprehensive income or directly to equity, in which case the tax is recognised in other comprehensive
eAffencntu3u3a2al8lR0R7eeDpipsopoorsratltoo2fnG0Fro2uop0rimnv2es0t-mFe2n0ts20(1N,1N13oo) tte5e5sEstftfoeocttthohfeteacxcaotioonnnosof saoslsiodcliiaadtetaseatnddedjfoiinnftiavnennatucnreias,clrieapsotlratsetdtewamithteinemprnotefistnb(etcfsoor(entcatxoi7n2n8ut2e6in2d9u0)e(Rd)ecToagxnoitniodni)s/cdoenreticnougenditoiopneroaftidoenfse2rr0e2d0taxma2ss0e1t9s fomr l2o0ss1e8sinmLNuoxteem: 1bo2u0r1g8ainndclSupdaeisna1 912,518m6il(l1io,5n8c3r)eDdietfreerlraetdintgaxtofothlleowiminpgairremveanlutaotfioVnoodfaifnovneesItmndeinat.sTianxLcuhxaermgebdo/u(crgre1d(it3e4d8))d(i4re8c8t)ly(3t3o0o)thPerrevcioomusplryehuennrescivoegninisceodmteem20p2o0rarymd2i0ff1e9renmces20w1e8exmpeTcat xtocuhsaerginedt/h(ecrfeudtiutreed)(1d4ir)ectlyPrteoveioquuistlyy2u0n2re0comgn2is0e1d9temmp2o0ra1r8ydmiffFearcentocressauftfielicsteindginthtehetayxeeaxrpens(2e9f)orCtuhrereynetayreTahretetmabploerbaerylodwifefexrpelnaciness t(hinecdluifdfienregnlcoesssebse)twtheaetnwtehecuerxrpenectltyeddotanxoetxepxepnescet,tboeuinsge t3h5e2a7g8g2r0egAatdejuosftmtheenGtsroinupre'sspgeecotgorfapphriiocralysepalrittaoxf lpiraobfiiltistiemsu2lt(i8p6li)e(d9b4)y(t2h4e4r)eIlemvpaancttloocfatal xtacxreradtietss aanndd itrhreecGorvoeurpa'bsletotataxletsax52ex7p9e9n3seDfeofer reraecdhtayxeaorn. 2o0v2e0rseams 2e0ar1n9ingms 320(1389)2m4 NEfofteecst: o1fSceuerrneontteybeealrocwharenggaersdiinngstdateufteorrreydtatxaxraatsesseot rnedcoefgenrirteidontaixn bLaulxanemcebso3u7rg57an(2d)S(p44ai)nFoinnapnacginegs 1co70stsanndot1d7e1d.u2c2ti0b1le8fionrctluaxdepsutrhpeosimesp1a7ct4o6f7c2l3osEinxgpetanxseasundoittsdaecdruocstsibthlee (Ginrcooump edunroint gtatxhaeblyee)afro, rintacxlupduinrpgoisneGs 1er8m7a9n7y6a1nIdncRoommeatnaixa.e3xp2e0n2s0e/i(nccrleuddiet)s1t,h2e50im1p,4ac9t6o(8f7a9l)oDweefrecrorerdpotaraxtet4a9x TraotetailntaLxucxheamrgbeodu/r(gcraendditethde) dimirpecactltyotfotheqeuriettyenti4o9nCouf rtrheent19ta%x (c2o6r)po3r2a2teDtaexferrraeteditnaxth8e3U0 K56C7o0nTtiontuailntgaxpcrohfairt/g(elods/(sc)rbeedfioterde)tadxireacstslyhotownotihnerthceocmopnrseohleidnastievde iinnccoommee s8t0a4te5m9e9n2t T79a5x (c2re,6d1it3o)3n,8p7ro8fAitgfrgormegaotreddineaxrpyeacctetidviitniecsomofedtiasxcoenxtpineunseed/(ocpreedraitti)o2n2s61 (4(5576))9(68157I)m6p.aTiramxaetniot nlo(scsoenstwiniuthedn)o1t6a8x8 Vodaffone GrroouuppPPllcc
Overview Strategic Report Overview StraGtoevgeicrnRaenpcoert GovFeinrnanancicaels FinOanthcieabrlailsannfcoermshaetieotn, aOfttehreor fifnsfeotromfabtiaolannDceesfewrriethdintaxcoAunntarliyessi,saosf: mmovDeemfeernrtesdintatxheasnseettd2e4f,e7r5re3dDteaxfebrraeldantacxe ldiuarbiinligtyth(e47y8e)ar3:1MmaDrcehfe2rr0e1d9t1ax24a,s2s7e5tsNaondte:li1abTilhietieGs,robuepfodreoeosffnsoett doifsbcoaluanntcietss dweiftherinrecdotuanxtraisesse,tas.reTahsisfoisllionwasc:cAormdaonucnet cwreitdhittehde/r(eeqxupiernemseedn)tsinoinncIAomSe12st.aDteemfeernrtedmtaxNaest sreetc2o3g,n6i0se6dDdeeffeerrrreeddttaaxxl(ilaibaibliiltiyty()2/,0as4s3e)t 31mMGarrocshs 2d0e2fe0r1re2d1t,a5x63asAsectcelmerGatreodsstadxedfeerprreedcitaatxiolnia9b6il4it1y,58m1 L(1e,s8s0a7m)1o3u(n2t1s3u)nIrnetcaonggnibisleedassmetsA(n7a1l9y)se3d81in(1t,h9e4b8)a1la4n(1ce,5s5h3e)eTt,aaxftleorsoseffsse(9t2o6f)b3a2la,1n2c1esw(8i,t7h2in5)c2o3u,n3t9ri6esT,raesa:surmy Aretla3t1edMitaermchs 21041495,3d0e(7fe7r0re)d(3t0ax1)a(s5s4et1s)aTnedmlipaobrialirtyieds,ifbfeerfeonreceosffrseeltatoinfgbatolarnecveesnwueithreincocgonuintitorines1,8w73er(e55a9s)fol(l5o5w6s):TAemmopuonratrcyreddififteedre/n(cexespernelsaetdin)gintoinlceoamsees 2st0a5te2m61e(n4t1N) et2r2e0coOgtnhiesredtedmepfeorrraerdy tdaixff(elrieabncileitsy()8/9a)s1se,1t8G3r(o3s0s2d)e(f7e1rr)e8d10ta3x1asMseatrcGhro2s0s2d0e1fe(2rr3e4d)3ta6x,0l6ia0b(i5li,4ty27L)e(s9s,0a7m0o)2u1n,t5s6u3n1reAcopgrnilis2e0d19m24,2m75mExcmhanmgeAacncdeoletrhaetredmtoavxedmeepnretsci1a7tioCnha3r5g0ed1,t4o9t5he(1i,n2c0o2m) e8 s3t0a1temInetanntg(icbolnetiansuseintsg3o8pe4r0a6ti(o7n5s4))(21354()3C33h)arTgaexdldoisrseecstl(y81to4)O3C2I,3(89370) (C8h,1a7rg5e)d24d,i2re2c2tlTyrteoaesuqruyitryelatReedciltaesmsisfi(c2a3ti)o1n6651(6A7r)is(i1n6g0o)n(6a2c)quDiesfiteirornesdatnaxd odnisopovsearslsea(s1,e7a2r6n)in3g1sM10a4rch20201Te2m1,p5o6r3ar1y69di1ff6e9reVnocedsafroenlaetiGngrotuoprePvlecnAunenrueacol gRneiptioornt 260220(V76o6d)afon(7e6G6)roOutphePrlcteAmnpnouraalryRdepifofertreonnceFso(rm1521)0-1F,222052(0237) (75) 913 31 March 20191 (434) 35,688 (3,026) (8,387) 24,275 At 31 March 2019, analysed in the
AnnuuaallRReeppoorrtto2n0F2o0rm 20-F 2020 NNootteessttootthheeccoonnsosolidliadtaetdedfinfiannacniacliastlastteamteemntesn(tcso(nctoinnuteindu)ed) Factors affecting the tax charge in future years The Group's future tax charge, and effective tax rate, could be affected by several factors including: tax reform in countries around the world, including any arising from the OECD's or European Commission's work on the taxation of the digital economy and European Commission initiatives such as the proposed tax and financial reporting directive or as a consequence of state aid investigations, future corporate acquisitions and disposals, any restructuring of our businesses and the resolution of open tax issues (see below). On 25 April 2019, the European Commission published its full decision in relation to its investigation into the `group financing exemption' (GFE) in the UK's controlled foreign company rules and whether the GFE constituted unlawful State Aid. They concluded the GFE does not constitute unlawful state aid when the managing of the financing activities is outside the UK. As the Group's Luxembourg financing activities are properly established and operate in accordance with EU and local law as well as the OECD's transfer pricing guidelines, we do not anticipate any significant impact as a result of the Caommomuinstsiaonnds efixnpdirinygdsa.tWeseodfolonsosetsanatviaciilpaabtleeafnoyr csiagrnryififcoarwntairmdpaarcetaosnfoolulorwfust:uErextpaixrincghawrgiteh,ilnia5biyleitaierss omr aEssxeptsir,iansgabereysounltdo6f ytheearUs KmleUavnilnimg ittheedEumroTpoetaanl UmnioAnt o31n M31aJracnhu2a0ry192,0th20e gbruotscsaanmnooturnutleanoduet xthpeirpyodsasitebsiloitfyltohsastesa afavialuilraebltoe froeraccharsraytifsofrawctaorrdywarerraenagsemfoelnlotswfso:rEtxhpeirUinKg'swfiuthtuinre5reyleaatirosnEsxhpipiriwngithbethyeonEdur6opyeeaanrsUUnniloinmiattetdheToetnadl omf themtramnsitmionLpoesrsieosdfoornw31hiDchecaedmebfeerrre2d02ta0x, caossueldt ihsarveecoagnniimsepdac2t0o7n3s7u9c9h,9m6a7tt1e0rs0.,W21e1cLoonstsineusefotor wmhoincihtonroddeevfeelrorpemd etanxtsisinrethciosganriesae.dT6h3e2G7,r0o6u3p 2is2,r6o5u9tin3e0l,y35s4ub8j3ec9t7to,1a0u0d1it2b2,y62ta6x1a3u0th,5o6r5itiDesefinertrheedttearxriatossrieetss ionnwlohsiscehsiitnoLpeurxaetmesb. oTuhregGInrcoluupdecdoninsidtheerstaebalcehaibsosuveeoanreitlsosmseesriotsfan8d2,,3w7h2emreiallpiopnro(p2r0ia1t9e:, h8o2ld,3s7p2romviilsliioonns) itnhartehspaevcetaorfistehne ipnoLteunxtieaml tbaoxulrigabciolimtypathnaiet sm, apyrinacriispea.lAlysaasta3r1eMsulatrcohf r2e0v2a0lu, athtieonGsrooufpthhooseldcsopmropvainsiieosn'sinfovresstumchenptostfeonrtilaolclailabGilAitAiePs opfurp6o3s8esm. iAllidoenfe(2rr0e1d9t:ax4a6s0semt iollfion2)0.,5T4h4esmeipllrioovnis(i2o0n1s9r:ela2t1e,4to25mmulitlilpiolen)ishsausesb,eaecnrorescsothgenijsuerdisidnicrteisopnescitnowf thhiecshethloesGserso, uaps wopeecraotnecsl.uAdse tiht eistapxroibmapbalectthoaftathtreanLsuaxcetimonbocuarngbeentuinticeesrwtaiilnl uconntitlinauceotnoclguesnioenraitse rteaaxcahbeledpwroitfhittshienrtehleevfauntutrteaxagaauitnhsotrwityhiocrhtwhreocuagnh uatilleigsealthperosecelsoss,stehse. TamheoLunutxuelmtibmoautreglycopamidpamnaieys'diinffceormmeatiserdiaelrliyvefrdofmrotmhethaemGouronut pa'cscrinuetedrnaanldficnoaunlcdinthgearenfdorperoacffuercetmthenetGarnodurpo'samovinergaallcptirvoiftiiteasb. iTlihtye aGnrdoucapshhafslorwevsieinwefudtuthree plaetreisotdfso.rSeecaesntsotfeor2t9h"eCLounxteinmgbeonut rlgiacboilmitipeasnainesd, liengcalul dpirnogcetehdeiirngasb"iltiotythtoe ccoonntsionluideattoedgefninearantceiailncsotamteembeenytos.nAdtth3e1fMoraerccahst2p0e2r0io, dthuengdreorss
the tax laws substantively enacted at the balance sheet date. The assessment also considered whether the structure of the Group would continue to allow the generation of taxable income. Based on this, Group's management concludes that it is probable that the Luxembourg companies will continue to generate taxable income in the future. Any future changes in tax law or the structure of the Group could have a significantiemffpeacitrmonenthtsecuasneroefsuloltssinesa, isnigcnluifdiicnagntthcehapnegrieodtooovuerr dwehfeicrrhetdhetalxoasssesestcsaannbdethuetiplieserido.dBoavseerdwohnitchhetchuersreenastsfeotrseccaanstsbethuetilloisseseds. Iwmilplabiremfuelnltys uhtaivlieseadnoavrerorwtheer nimexpta4c0t atos l4o5ssyeesairnsc.uArr5ed%i-n10th%e ycheaanr geexpinirethaeftfeorre1c7asyteainrscoamnde ainreLuusxeedmabftoeurragnwy opureld-ecxhisatningge ltohsespese.riLoodsosevserfowrhwichhicthhealdoesfseersrewdiltlaxbeasfuselltyisutrielcisoegdnbisyed2 5to3151y4e3a9r9s.,8T2h8e1s0h0o,r5te0r2rLecoossveesryfoprewrihodichinntohedcefuerrrreendt tyaexarisisrepcroimgnairsielyd d7r5iv99en,4b0y4 t2h2e,7c7o2ns3e2q,u9e3n5c1e,s2o9f0t9h,5e4a7c1q2u2is,6it0io0n13o3f,U43n7ity6.MTeadxiaatiionnG(ceormntainnuyeadn)d1t7h0e0UVPoCdaefnftointieesGirnroCoeunutpraplPEPullrcocpe. The Group's effective tax rate reconciliation includes 348 million (2019: 488 million) as a result of the revaluation of investments based upon the local GAAP financial statements and tax returns at 31 March 2020. These revaluations of investments for local GAAP purposes, which are based on the Group's value in use calculations, can give rise to impairments or the reversal of previous impairments. The reversal of
peOrivoedObrevyvoeniedrvthweie5wyeSatrrafSotreercaagsttiewcegRhaicveeprReovieerwpteodrttGheopvrGoefiotrsvinnehaerrnennct aienntchee FteinrmFaininanl cpaeirnioacdlsainadlsbOasthedOoetnrhthieensrefoainndrmouforaerxmpteioctaanttiioonnsIfnoratdhdeitGioenrmtoatnhebuasbionveses, w9e,2b4e2limevielliiot nis(p2r0o1b9a:ble7,t0h6e3Gmeirlmlioann)loosfstehsewGirllobuep'fsuLllyuxuetmilibseodu.rgBlaossesdesonexthpierecuarfrteenrt1f4ortoec1a7stsyetahreslaonssdensowdilelfbererefudlltyaxutaislisseetdisorveecrotghneisneedxtas9tthoe1y4wyiellaersx.pAire5%be-f1o0re%wcehacnagneuisne tthheesfeorleocsasests.pTrohfeitsreomfathineinGgelromssaensbduosinnoetssexwpoiruel.dWaletearltshoehuatvileisa9ti,o1n36pemriiolldiobny(210t1o92: ye9a,1r3s.2Dmeiflelriorend) toafxLausxseetms boonulrogssloesssiensSinpaainfoTrmheerGCroaubpleh&asWtaxirelolessssesWoofrld4w,2i8d1e mGriloliuopnc(o2m01p9a:ny3, ,f8o2r1wmhiicllhionno) dinefSerpraeidn twaxhiacshseatrehaasvabieleanblreetcoogonffisseetdaagsaiitnsist uthnecfeurttauirne wprhoeftihtserofthtehseeGlorsuspeos CwoilrlpboerautitviloiseOdN. DOebfuersriendestsa.xTahseselotsssoensldoossneostinexGpierremaanndynTohdeeGferroruedp thaaxs atsasxeltoisssreescoofgni1s7e,d16fo0rmthilelsieonlo(s2s0e1s9d:ue1t7o,4t1he7 tmraidlliinogn)einnviGroenrmmaennyt ianriSspinagino.nOtthheerwtraixtelodosswesnTohfeinGvreostumpehnatss lionsGseesrmamanoyunitnin2g00to0.T7h,5e0l0osmsielslioarne(a2v0a1i9la:bl7e,t6o7u8sme ialgliaoinn)stinborethspGecetrmofanUKfedseurbasliadniadriterasdwehtiacxhlaiarbeiolintileysaavnadilathbeley fdoor noofftseext paigreai.nAstdfeufteurrreedcatpaixtaalsgsaetinosfan2d,6s6in2cme iiltliios nun(c2e0r1t9ai:n2w,h7e0t1hemritlhlieosne)lhoasssebsewenillrebceougtniliisseeddi,nnroesdpeefecrtroedf tthaexseaslsoestshesasasbeweencreocnocglundiseeidt,iisnplrionbeawbliethththatetphreioGreyremaar.nTbhuesirneemssaiwniinllgcloonstsiensureetloatgeetnoearantuemtabxearbolef potrhoefirtsjuirnistdhiectfiuotnusreacargoasisnstht ewGhircohupw.eTchaenreutairliesealtshoese1,l5o1ss4ems.iTllhioenG(2ro0u1p9:ha7s9re8vmieiwllieodnt)hoefluatnersetcfoogrnecisaesdtstefomrptohreaGryedrmifafenrebnucseinserseslawtihnigchtointrceoarspuorryaitetetmhes aunndsyosttheemraitteicmrsis. kNsoofdeofpeerrraetdintgaxinliathbeilitetylehcaosmbmeeunnirceactoiognnsisbeudsiinnersess.pIenctthoef a further 7,130 million (2019: 10,425 million) of unremitted earnings of subsidiaries, associates and joint ventures because the Group is in a position to control the timing of the reversal of the temporary difference and it is probable that such differences will not reverse in the foreseeable future. It is not practicable to estimate the amount of unrecognised deferred tax liabilities in respect of these unremitted earnings. 117711 VoVdaofdoanfeonGeroGurpouPplcPlc AnAnunanluRaelpRoerpt onrtF2o0rm2020-F 2020
seg1m7e2nVt (osdeaeffnoontee 2Gr"rRoeovueunpupePdPilslcacggNrNegoaotitotenesasntdtosoetgthmheenetcacloaonnanlysosisso"l)idalniaddhtaaevtedebdefeinnfdiaisnpnoascendiaocfl,iaosrtlaarsettcelaamsstiefeiemdnatseshne(ltdcsfoo(rnscatloei,ntnhueteGinrdouu)pecdl)aIsnsitfhieespsruiochr foinpaenractiiaolnyseaasr,dfioslcloonwtiinnugetdh.eDaigsrceoenmtiennutetdoocpoemrabtiinoensouarreInedxicalnudoepderfarotimontshwe irtehsuIdltesaoCf eclolnutlianruiinntgo oapjeorianttiloyncsoanntrdoallreedpcroesmepnatendy,aisnaascicnogrldeaanmceouwnitthasIFpRroSfiat cocroluonstsinagftesrtatnadxafrrdosm, thdeiscreosnutlitnsuoefdVoopderaaftoinoensIninditahwe Gerreoiunpclcuodnesdoliindadtiesdcoinntcionmueedsotapteermateinotn.sDuinstciolnthtienutreadnsoapcetrioatniocnosmapreleatelsdooenx3cl1uAdeudgfursotm20s1e8g.mTehnet rGerpoourptincgla. sAsilflieosthneornn-octuersretontthasesfeitnsaanncdiaalsssteattsemanedntlsiaibniclliutidese wamithoiunndtsisfpoor scaolngtrinouuipnsg(`oapsesreattsi'o)nass, huenlldesfsoirnsdailceaitfedthoethaessrewtsisaer.eDaivscaoilnatbilneuiemdmopederiaatteiolynsfoOrnsa2l0e Minathrcehir2p0r1e7se, nVtocdoanfdointieonan, nmoaunnacgeedmtehnetaigsrceoemmemnitttteodctoomabpilnaenittos ssuebllstihdeiaaryss,eVtsodunafdoenreuIsnudailate(remxcsl,uidtiinsghiitgsh4ly2%prostbaakbeleinthIantdtuhseTirocwarerrysi)n,gwaitmhoIudneatsCweillllublaerriencoInvdeirae.dCporinnsceiqpuaellnytltyh,rVouogdhafaosnaeleIntdraianshaacstiboenernatahcecrotuhnatnedthfrooruagshacdoinstcionuntininguuedseoapnedratthioensafoler iasllepxpereicotdesdutop btoe 3c1omApulgeutesdt 2w0i1th8i,nthoenedayteeatrhferotrmantshaectdiaotnecoofmthpeleitneidti,atlhcelaresssiuflitcsaotifown.hAicshseatrseadnedtaliilaebdilbiteieloswc.laIsnscifoimedeasstahteelmdefnotrasnadlesaergempernetseanntaeldyssiespoafradtieslcyoansticnuurerdenotpieteramtisoinns tFhievecomnosonltihdsateenddsetdat3e1mAenutgoufstfi2n0a1n8ciaml pYoseiatiroennadnedda3r1e Mmeaarcshur2e0d2a0t thme lYoewaerreonfdtehdei3r1cMarrayricnhg2a0m1o8unmt aLnodsfsapirervaslhuaerelefsrsomcodstissctoonsteilnlu. ePdrooppeertrya,tipolnasn2t 0a2n0d eeuquroipcemnetsnt2a0n1d9ienutaroncgeibntles 2as0s1e8tseaurreocneonttdseTporetacliactoemd porreahmenosritviseedexopnecneseclfaosrsitfhieedfiansanhceiladlfyoerasraflreo. mWdhiesrceoontpienruaetidoonps ecroantisotintus t2e0a20sepmara2t0e1ly9rempo2rt0a1b8lem Note: 1 Includes the profit on disposal of Vodafone India's standalone towers business to ATC Telecom. Attributable to owners of the parent (3,535)(1,969) Basic (12.80)c (7.09)c Diluted (12.80)c (7.06)c Revenue 1,5614,648 Cost of sales (1,185)(2,995) Gross profit 3761,653 Selling and distribution expenses (92) (237) Administrative expenses (134) (533) Other income and expense1 416 Operating profit 1501,299 Financing costs (321) (715) (Loss)/profit before taxation (171)584 Income tax credit/(charge) 56(308) (Loss)/profit after tax of discontinued operations (115)276 Pre-tax loss on the re-measurement of disposal group (3,170) Income tax credit 925 After tax loss on the re-measurement of disposal group (2,245) Loss on sale of disposal group (3,420) Loss for the financial year from discontinued operations (3,535)(1,969) 7. Discontinued operations and assets and liabilities held for sale 172 AnnuuaallRReeppoorrtto2n0F2o0rm 20-F 2020 2020
OanvdeOliravbvileiiteiervs wheieldwfSortrsaaSlteerAasgsteietscgaRndicleipaRbiolietriepstohretlGdofovrGseaolrevante3a1rnMncaarecnhc2e0F2i0nFcaoimnnpcriasien:a-clAsia2l4s.9O5th%OienttrehrieesntrifnoiVnromdafofoanrme tHiouatncthiiosnonFoArutshterafliivae; amnodn-thTsheenGderdou3p1'sA5u5g%usitn2te0r1e8s,t tihneVGordoaufponreecEogrdyepdt faollolosws oinngdtihsepoasnanlooufnVceomdaefnotnoenI2nd9iJaaonfuar3y,422002m0 itlhliaotnthaesGsertoouupthinasnsoigten2ed7 a"Amceqmuiosriatinodnusmanodf duinsdpeorssatlasn"d.iTnghiws litohssSiasupdrieTseenletecdomwiCthoimn pdaisncyonfotirntuheedsoalpeeoraftiVoonds.aFfoonrethEegyyepat.r Aenssdeetds 3a1ndMliaarbcihlit2i0es18h,etlhdefoGrrosaulpe raetc3o1rdMedarachno2n0-1c9aschocmhparrigsee oaf243.9,157%0 minitlelrieosnt (in2V,2o4d5afmoinlelioHnuntcehtiosof ntaAx)u,sitnrcalluiadeadndinad1i2sc.6o%ntiinnuteerdesotpienraIntidounss,Taoswaerress.uTlthoefhtehledrfeo-rmseaalesucrleamsseifnitcaotfioVnofdoarfo1n2e.6I%ndoiaf'Isnfdauirs vTaolwueerlseswsacsosretsveorfsdeidspdousrainl.gFtahier yveaalureenodf ethde3G1rMouaprc'she2q0u2i0tydiunetetroesetvaetn3ts1tMhaatrochcc2u0rr1e8dwdausriansgsethseseydetaor.bTehIeNsRta2k2e3isbniloliwoneq(2u0it1y7a:cIcNoRun3t7e0d wbiiltlhiotnh)e, ereqmuiavianldeenrt otof th2e.8Gbriolulipo'ns (i2n0te1r7e:sti5n.3InbdilulsioTno) watetrhse(sfeoereniogtnee2x8c)h. aTnhgeerrealteevsapnrteavsasielitnsganadt tlhiaobseilidtiaetsesa.rTe hdeetfaaiilredvailnutehoeftVaboledabfeolnoewI.nAdisaseatts3a1ndMlaiarcbhili2ti0e1s8hweladsfaosrsseaslseed20to20bempri2m01ar9ilymdeNteornm-cinuarrbelnetbayssreetfserGenocoedwtoiltlh1e0I7deaOCtehlelrulianrtaLnigmibitleedaqssueottse3d7s9harePrporpiceertays, patla3n1t aMnadrechqu2i0p1m8enoft 9IN16R7I5n.9vepsetmr sehnatrsei.nTahsissotceicahtensiqaunedwjoaisnct ovnesnitduerreesd(4to12re)s(u2l3t1in) Tarlaedveela2ndvaoltuhaetriorencaesivpaebrleIFs R15S 131,,0a0s5w(h2i3le1)thCeuqrrueontetdasssheatsreInpvriecnetoforyr I1d3ea CTeaxllautliaornLriemcoitveedrawbalseo3bseTrvraadbelea, nfudroththererardejucestimvaebnltess, 3su1c3haCs aasnhaasnsudmcpastihoneqrueigvaarldeinntgs 2th7e3dis6p0o2sal oTfoVtaol daassfeotnsehIenlddiafowr istahlea1c,e6r0ta7in(2l3e1v)elNoofnd-ecbutr,rewnetrleiarbeiqliutiireesdLtoonegs-ttiemrmatebfoarirrovwailnugesle5s7scoDsetsfeorfreddistpaoxslaila.bAilsitsieetss 60 Provisions 5 122 Current liabilities Short-term borrowings 150 Taxation liabilities 116 Provisions 29 Trade and other payables 634 929 Total liabilities held for sale 1,051 117733 VoVdaofdoanfeonGeroGurpouPplcPlc AnAnunanluRaelpRoerpt onrtF2o0rm2020-F 2020
174 Vodaffone GrroouuppPPllcc NNootteessttootthheeccoonnsosolidliadtaetdedfinfiannacniacliastlastteamteemntesn(tcso(nctoinnuteindu)ed) Basic earnings per share is the amount of profit generated for the financial year attributable todeiqscuoitnytisnhuaerdehoopledreartsiodnivside(d12b.y80th)ce(w7.e0i6g)hcteDdialuvteerdag(leonssu)m/ebaernrionfgsshpaerresshinariess(u3e.1d3u)crin(2g9t.h0e5)yce8ar.7. 62c02B0asMicil(llioosnss)/2e0a1rn9inMgisllpioenrssh2a0r1e8frMomillicoonnsti2n0u2in0gompe2r0a1ti9onms (32.01138)c(m16e.u2r5o)cce1n5ts.8e7ucro(Lceonstss)epuerroscheanrtes feruormocdeinstcsoenutirnouceedntospeeurraotcioennstsD(i1v2i.d8e0n)dcs(7ar.0e9o)nceBtayspiec o(lfosshsa)/reeahronlidnegrsrpeeturrsnh,ahriest(o3r.i1c3a)lcly(2p9ai.0d5t)oco8u.7r 8scha(rLeohsosl)d/eerasrnininFgesbfrouraerayrnainndgAs puegrussht.a2r0e2f0rommc2o0n1ti9nuimng2o0p1e8ratmionDse(c9l2ar0e)d(4d,u4r8in5g)4t,h4e08fin(Lanocsisa)lfyoeraera:rFniinnaglsdpiveridsehnadrefofrrotmhedyisecaornetnindueded3o1pMeraartciohn2s019(3:,45.3156)(e1u,r9o6c9e)n(tLs opsesr)s/ehaarrnein(2g0s1f8o:r 1b0a.s2ic3 aenudrodcielunttesdpeerarsnhianrges, 2p0er17sh: a1r0e.0(932e0u)ro(8c,e0n2t0s)p2e,4r3sh9aWree)i1g,h1t1e2d 2av,7e2r9ag2e,6n7u0mIbneter roimf shdiavriedsefnodr fboarsitcheeayrenairngensdpeedr 3sh1aMrea2r9ch,422022207:,640.5702e7u,r7o7c0enEtfsfepcetrosfhdarileu(ti2v0e1p9o: t4e.n8t4iaelusrhoacreenst:srepsetrrischteadres,h2a0r1e8s:a4n.d84sheaurreoocepntitosnpser sh8a7reW) 1ei,2g0h5te1d,a2v9e3ra1g,2e9n1u2m,3b1e7r o4f,0s2h2a3re,9s6f1orPdriolpuotesdedeaarfnteinrgthsepeerndshoafreth2e9y,4e2ar2a2n7d,6n0o7t2r7e,c8o5g7n8is.eEdaarsnianlgisabpielirtys:haFriena1l7d4ivAidnennuduafaolrlRthReeyeepaproeonrdrtetod23n10FM2aor0crhm202200-F: 42.05200eurocents per share (2019: 4.16 eurocents per share, 2018: 10.23 eurocents per share) 1,205 1,1122,729 9. Equity dividends Diluted (loss)/earnings per share from continuing operations (3.13)c (16.25)c 15.82c Diluted loss per share from
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AnnuuaallRReeppoorrtto2n0F2o0rm 20-F 2020 NNootteessttootthheeccoonnsosolidliadtaetdedfinfiannacniacliastlastteamteemntesn(tcso(nctoinnuteindu)ed) LicenocfethaendGsrpoeucpt'rsummofsetessiCgnoimfipcauntetrspsoefcttwruamrelGicoeondcwesilclaOntbheerfoTuontdalonmpamgesm262mandm26C3o.sGt:e1rmAapnryil 22002108/28902,951/3202383,7/290741074,4,2103873,3,344561I4ta3l,y462802E1x/c2h0a2n9g/2e0m37ov3e,m68e3nt3s,9(42227U) K(19230)22(9/230) 2(137/230)3(38/8260)3A8r1is,8in0g1o2n,3a2c0qu31isiMtioanrc7h72021003819,257A11d2d,i0ti0o7n4s,9734,50,0297125,233,522735E,2x4ch8aDngisepmosoavlsem e(7n)ts(2(1,30438))(33(82),3(5151)9)O(t2h6e5r)(82(55)) Im(p5a)i3rm1 eMnatsrc1h,6280519891,,5668353D1i,s6p0o6sa1l7o,2f0s9ub7s,1id8i7ar1ie4s5,5(6659)A(c3c0u5m) (u7la6t)e(d4i5m0)pAaimrmoerntitsalotisosneschanadrgaemfoorrttihseatyioena:r11A,8p3ri3l 220,210836432,13749,41579,3D7i7sp1o2s,a5ls41(77,011) 4(21,30503,2)1(418E) x(2c,h4a7n1g)eTmraonvsefmeretnotsas(s2e3t9s)h(e5l9d)f(o7r0r)es(a1l6e3)((355351)) (I1m2p7a)i(rm8)e(4n9ts03) ,O27th0er 793,277903A1mMoarrtcishat2io02n0ch6a7r,g7e92fo2r0,t0h0e5y1e1a,r61017,,619430120,068,5541763Ex3c,9h4an1gDeimspoovseamlsent(s7)(5(623,3)3(24)79)(2(1,39369))(3O1t0h)er(1,5488)A8ri3s1inMg aorncahc2q0u1is9it6io6n,21110,71592,001481425,,26352671,71,1549210D4i,s5p6o0saNleotfbsouobksivdaialuriee:s3(11,M58a2r)c(h12290)19(42039,)35(7361)(22,,610926)4,A97d7di7ti3on4s1,010,577F6o2r,l2ic7e8n7c4e,s0a6n1dDsipsepcotsrualms a(n8d3o)t(h2e,3r 8in3t)a(n4g7i)b(l2e,5as1s3e)tsT, raamnsofretristaotiaosnseistsinhcelluddfeodr wreistahlien(t1h0e7c)o(s6t7o9f)s(a1l8es4)li(n6e)(w97it6h)inOtthheercons8o5lid8a5te3d1iMncaormche 2st0a2te0m9e9n,0t.6T33he2,n0e1t2b1o6o,5k8v4a1l2u,e41an11d6e0x,p0i7r0y 1d0a.teIsntoafntghieblmeoasstsestigsn(cifoicnatinntuleicde)n1c7e6s6arVeoadsaffofollnoewGs:rr2o0o2u0upmpP2P0ll1c9cm Expiry dates The remaining amortisation period for each of the licences in the table above corresponds to the expiry date of the respective licence. A summary
OveOrvveiervwiew Annual Report on Form 20-F 2020 StraSteragtiecgRicepRoerptort GovGeorvnearnncaence FinFainncainaclsials OthOetrhienrfoinrwmrfitoearomfftitohaenctoiosnt oTfhaessGertos,uopthmearktehsansiglannidfi,cuasnitnignvtheestsmtreanigtshti-nlinneetwmoertkhoedq,uoipvmeretnhteairnedsitnimfraatsetdruucstuerfuellitvheesb, aassefosltalotiwons:sLaannd dteacnhndoblougiyldrienqgusiredFtroeeohpoelrdatbeuoiludrinngestw2o5r-ks50 ytheaatrsformLetahseehmoaljdorpirteymoifsoesurthteantgeribmleoafstsheetsl.eaAslel aEssqeutsipamreednetp,reficxitatuerdesovanerdthfietitriunsgesfulNeceotwnoomrkicinlfirvaesst.ruFcotrurfueratnhedrodtehtearil1s -on35thyeeaersstimDeaptiroencioaftiuosneifsulneoctopnroomviidceldivoens,frseeeeh"oCldriltaicnadl.aRccigohutn-otifn-gusjeudagsseemtsenartsisainngd fkreoymsothuercGersooufpe'sstlimeaasteioanrruanncgeermtaeinnttsy"ariendneoptree1citaotetdheovceorntshoeliidrarteeadsofinnaabnlyciaclersttaaitnemleeanstes.teArmcc,oausndtientgerpmoilniecidesunLdaenrdthanedGbruoiulpd'ins glesahseelsdpfoolricuyse(saereensotattee2d0in"Ltheeassetas"teamnedn"t Corfiftiicnaalnacciaclopuonstiitnigonjuadtgtehmeier nctossat,nldeskseaynsyousurcbesseqoufeensttiamcactuimonuulantecedrdtaeipnrteyc"iaintionnotaen1d faonrydaectaciulsm).uTlahteedgiaminpoarirlmoessntalroissisnegs.oAnmthoeudnitsspfoosrael,qrueitpirmemenetn, tfioxrtugrreasnatinndgfoitftianfgisn,awncheiclheaisnecloundeasnniteetmwoorfkpirnofrpaesrttryu,cptularnetaasnsedtseqaureipsmtaetendt iastdceotsetrmleisnseadccasumthueladtiefdfedreenpcreecbieattwioeneannadnaynpyroaccceuemdsuflraotemdsiamlepaoirrmreecnetivloasbsleess.aArisssinetgsoinntahelecaoseurasnedotfhceocnasrtrryuicntgioanmaoreuncat rorfiethdeaat scsoestt,alnedssisarneycoregcnoisgendisiendtihmepianicrommeentsltoatsesmese.nDt.e1p1re. cPiraotpioenrtoyf, pthlaenset aanssdeetsqcuoipmmmenent c1e1s7w77h7enVtohVe daasosefdtsoaarneferoeandGyefroorGtuhrepior uinPtpelncdPeldc uAsnen. uTahleRceopsotrotf2p0r2o0perty, plant and equipment includes directly attributable incremental costs incurred in their acquisition and installation. Depreciation is charged so as to
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AnnuuaallRReeppoorrtto2n0F2o0rm 20-F 2020 NNootteessttootthheeccoonnsosolidliadtaetdedfinfiannacniacliastlastteamteemntesn(tcso(nctoinnuteindu)ed) Joint ventures and associates 2020 m 2019 m Joint ventures The financial and operating activities of the Group's joint ventures are jointly controlled by the participating shareholders. The participating shareholders have rights to the net assets of the joint ventures through their equity shareholdings. Unless otherwise stated, the Company's principal joint ventures all have share capital consisting solely of ordinary shares and are all indirectly held. The country of incorporation or registration of all joint ventures is also their principal place of operation. Country of incorporation or Percentage Name of joint venture Principal activity registration shareholdings1 Vodafone Idea Limited2,4 Network operator India 44.4 VodafoneZiggo Group Holding B.V. Network operator Netherlands 50.0 Infrastructture Wireless Italiane (INWIT) S.p.A.3 Network infrastructure Italy 37.5 Indus Towers Limited Network infrastructure India 42.0 Vodafone Hutchison Australia Pty Limited Network operator Australia 50.0 Notes: 1 2 Effective ownership percentages of Vodafone Group Plc at 31 March 2020 rounded to the nearest tenth of one percent. At 31 March 2020 the fair value of the Group's ginutaerraenstteinesVaosdtahfeoynfealIlddeuaeL, iimncitleuddiwngasthINosRe r4e0labtiinllgiotno(th4e7A6GmRilljiuodng)e(m20e1n9t.: TINheRv1a2lu3eboilflitohne G(r1o,u5p8'0sm42il%liosnh)a)rbeahsoelddionngtihneIqnduoutseTdoswhaerres pLriimceiteodn (th`IendNuast'i)onisa,liSntpoacrkt,Edxecpheanndgeentoof nIntdhiea.inActo3m1eMgeanrcehra2te0d20bythIendfauisr fvraolmuetoowf tehrereGnrtoaulsp'tos imntaejroersct uinstIoNmWerIsT, iSn.cpl.uAd.iwngasVIL3,.3A45nymiinllaiboinlibtyasoefdthoenstehme qajuoortecdussthoamreerpsrtiocepoayn sthuechMaimlaonuSnttoscikn Ethxecfhuatnugree.mVaoydraefosunlet iIndeaanwimaspafoirrmmeendt oinn t3h1eAcaurgryuisntg20v1al8ufeoollfotwheinGgrtohuepc'osminbviensattmioennot finVIonddaufso(n3e1InMdaiarcLhtd20w2i0th: I0d.e8a bCilellilounl)a.rTLhime fitoeldlo. w3i4ngVtoadbalefopnreovIdideeasTahgegreeqguaitteydafcicnoaunnctieadl irnefsourlmtsaftoiornVfoodratfhoenGe Irodueap'Lsijmoiintetdve(`nVtuILre's) afos ritthreelapteersiotod tinheclaumdeodunantsersetcimoganteisefodrian mthaeteinricaolmcheasrtgaetefmoreanmt, ostuantetsmdeunet foofllcoowmipnrgehtheensrievceenintcSoumpereamned Cstoautermt oefnItnodfiafinjuadngceiaml epnotsiintiothne. (cLaosessU)/npiroonfitoffrIonmdicaovntAinsusioncgiaotipoenraotfioUnnsiOfiethdeTr ecloemcopmrehSeenrsviivcee iPnrcoovmideeTrsootaflIncodmiaparnedheOntshiveers(reexgpaerndsien)g/itnhceomdeefiInnitvieosntmofenatdjiunsjtoeidntgrvoesnsturerevsen2u0e20(`AmGR20')19usemd t2o0c1a8lcumlat2e0r2e0gumlato20ry19feems. F2u0r1t8hermde2t0a2il0ispmro2v0i1d9edmin 2n0o1te829m. T2h0e20Gromup2'0s1r9ecomrd2e0d1s8harme oVfoVdIaLfo'snereIsduelatinLgimloistesdesh1a,s3b9e2en (r2e,s5tr4i6c)te(d90to3)the(a8m) (o1u)nt t(h2a,t55re4d)u(c9e0d4)theVGorodaufpo'nsecZairgrygiongGvroaulupeHinolVdiInLgtoB.Vn.il1a,6t 3300 1S,e8p4t2em2,b1e1r92(06149).(T23he9)G(3ro9u8p)'s c4a1rr(y6i4n)g(2v3al5u)e(3w9a7s)I1N,3W9I2TmSi.lpli.oAn. a3t,33415March2019andinIMndauys2T0o1w9e, rtsheLGimroituepd i7n6v6es6t0e1d8913,411905m51il3li5on7via 2a6ri5g5h1ts35isVsuoed. aSfiognneifHicuatncthuisnocnerAtauinsttriaesliaexPitsyt iLnimreiltaetdio(n4t6o6)V(I4L8'4s)a(b9i7li9ty) (t3o5g)e(n2e3r)at3e2thecas(3h5f)lo(w23t)h3a2t iOt ntheeerd4s8to4s8e6tt4le(,1o2r5r)e(f1in4a)n(c1e5)its liab(i1li2t5ie)s(a1n4d)
(15) Total 5,323 3,3992,097 (2,751) (1,124)(246) (1) 31 (2,752) (1,121)(245) Investment in joint ventures 5,323 3,399 Investment in associates 508 553 31 March 5,831 3,952 12. Investments in associates and joint arrangements (continued) 1800 Vodaffone GrroouuppPPllcc
miOllivoenO, 2rv0v1e8i:erv2w20iemwiSlltiroant)egaincdRaedpiovritdSetnrdatoefgicnRilefproomrt GInodvuGs eToorvwneerasrLninmcaiteendceinFtihneFyaienanrctaoin3a1cMlsiaarlcshO2t0hO20et(r2h0ie1n9r:fo1in4r1mmfoiallrimonti,o2a0n1t8io:nS13u8mmmialrliiosend).fTinhaencreiacloinncfiolriamtiaotnioonffsourmemacahriosfedthfeinGarnocuiapl'sinmfoartmeraiatilojnoipnrtevseenntteudretsootnheac1a0rr0y%inogwanmeorushnitpobfaosuisr iins tseerteostuitnbjeolionwt .vAenstudirsecsliossesedtaobuotvbee,ltohwe:GVrooudpaf'osninevIedsetamLeinmt iintedVIINLWwaITs rSe.dpu.Ace.dVtoodanfiolnaetZ3i0ggSoepGteromubpeHr 2o0ld1i9nganBd.Vth.eVGordoaufopnheasHnuotcthriescoonrdAeudsatrnayliaprPotfyitLoirmloitsesdinInrdeusspeTcotwoferistsLsihmairteedof2V02IL0'smre2su0l1ts9 simnce20th2a0t dmate2.0V2o0damfo2ne01Z9iggmo 2G0r1o8upmHo2l0d2in0gBm.V2.0V19odamfo2n0e1H8 utmch2is0o2n0Aumst2ra0l1ia9 Ptmy L20im18itedmVNoodtaef:o1neTIhdeeGa rLoiumpi'tsedefIfNecWtivITe oSw.pn.Aer.s2h0ip20permcenIntadgues oTfoVwoedrsafLoinmeitIeddea20L2im0 itemd,2V01o9dafmon2e0Z2ig0gomG2ro0u1p9 Hmold2i0n1g8B.mV.2, 0In2w0 itmS.p2.0A1.9, Inmdu2s0T1o8wemrs2L0i2m0itemd 2an0d19Vomda2fo0n1e8 HmutcVhoisdoanfoAnuesItdraelaiaLPimtyitLeidmVitoeddaafroen4eZ4.i4g%go, G50r%ou,p3H7.o5l%di,n4g2B%.Van. Vd o50da%fo, nreesHpeucttcihviesloyn, rAouunstdreadliatoPtthyeLnimeairteesdt ItNenWthITofSo.npe.Ap.eIrncdeunst. TEoqwuietryssLhiamreitheodld2e0r2s'0fumnd1s2(031,4975m) 31,62906208,9m172 32,022600 3m,6824015966m69290(220,04m7)2(021,1944m) In2t0e2r0estmin2jo0i1n9t vemntNuroetse1s:(11,I5n4c3lu)d1e,6s7c1er3ta,3in45am1,o6u3n0ts1,s8u4b2je2c3t 8to2a9n4a(d1j,u0s2t4m)e(n1t,0m7e2c)hIamnpisamirmagernete(d26a1s)p(a2r7t 9o)f the formationGoofoVdowdiallfoneIdea. 5S2e8e 5n6o4te92491"0C6oTntrianngsefenrtrleidabtioliatisessetasnhdelledgfaolrpsraolceeedings"for(m23o6re) 4d1e2tai4l6. 72 IInnvcelusdtmesenbtalparnocpeosrtwiohnicnhoat rreecporogvniissieodn1al,8b0a4sedon fina(l2is1a)ti5o2n1o5f aCparurrycihnagsveaplruiecea1l,l3o9ca2ti3o,n3.4T5h1e,6G3r0o1u,p84re2c7ei6v6ed60a1d(i4v6id6e)n(d48fr4o)m(LVososd)a/pforonfeiZt ifgrogmo GcoronutipnuHinogldoinpgerBat.iVo.nos f(9,184880)m(i1ll,9io9n7)(20(1192:8)2(04078) (795) 44 178322 (141) (75) 64 Share of (loss)/profit1 (4,386) (903) (64) (239) (398) 19 75135 (70) (38) 32 (Loss)/profit proportion not recognised 1,840 (20) 35 15 Share of (loss)/profit (2,546) (903) (64) (239)(398) 19 55135 (35) (23)32 Statement of financial position Non-current assets 21,240 22,577 14,517 17,745 17,665 2,448 1,(521,12322,9)6(25628,)97(310C5u) r(r3e0n3t)a(s5s0e8ts)3(,429345) 3(4,88134) 2O8t8he7r5e2xp8e7n5s5e6(26,764297)7(627533)34 Total(a5s9s2e)ts24,475O26p,e3r9at1in1g4,(8lo0s5s)1/8p,r4o9fi7t (188,,258470)3(,10,210372),2620537,7(331233),(350455)E1q6u9ity48s4h6a9re6h1o1ld1e1rs6'2f2u9n0dsIn(t3e,r4e7s5t )in3c,o6m96e81,49717563,26036,638241516166 649393(2In,0te4r7e)st(2e,x1p4e4n)sNe o(1n,-7c4u0rr)e(n8t1l7ia)bil(it3i4e3s )1(56,80325) (1554,31)37(149,69)0(77192) ,(97744) 1(225,468)9(214,302) 7(243605) 5(L,1o4s6s)4/p,5r9o0fitCbuerfroernet tlaiaxb(i9li,t8ie8s0)12(1,1,919587),55(8869)8(1912,52)6(31,20,8326)7514,111676138,0(9164613) 3(7855)963CIanschoamnedtcaaxsh e1qui(v4a2l)en4t3s7w28it7hi3n9c(u2r3re8n)t(a3s1s6e)ts3210(1L3o8ss4)0/p1ro1f6it2f8r8om16co4n2ti1n9u6in2g43opNeorant-icounrsre(9n,t8l8ia0b)i(li1t,i9es97e)xcl(u1d2in8g) (t4ra7d8e)(a7n9d5)ot4h4er17p8ay3a2b2le(1s4a1n)d(p7r5o)v6i4si1o1n8s81151,7V9o0V1d3a,8o2fd8o4a,n6f8e4on1G2,e5r5o0G1u2rp,0o0u9P1p,l0c9P5lc1A3n3A5n,1u3n7an4l,u5R80aeClpuRrroeenrtpltiaobnirltiFti2eso0erxmcl2u0d2in0g-Ftr2a0d2e0and other payables and provisions 2,979 4,289 218 1,108 1,272 658 590 124 203 Income statement Revenue 5,704 3,379 3,948 3,8683,972 2,365 2,227 2,477 2,108 2,290 2,518 Operating expenses (4,938) (2,999) (2,163) (2,169) (2,285) (1,336) (1,438) (1,478) (1,489) (1,634) (1,745) Depreciation and amortisation (2,426) (1,364) (1,528) (2,012)
AnfninuuanacailalRl pRoeseiptipoono. rIrnttvoe2sntm0Fe2not 0inrmas2so0-cFia2te0s2P0roNfoittefsrotmo tchoenctoinnusionlgidoapteedraftiinoannscOiatlhsetracteommepnrtesh(ecnosnivtienueexdp)enNsoeteTsottoalthcoemcopnreshoelindsaitveedifnicnoanmceia2l0s2ta0temmen20ts1(9conmtin2u02ed0)Tmhe20G1r9oupmh2as02p0rovmide2d01e9xpamnd2e0d20finamnc2i0al1i9nfomrmTaottiaoln5i0n8r5e5sp3e2c4t6o2f1V6odaf2o4n6e2I1d6eaStLaitmemiteend.t oVfofdinafaonnceiaIldpeoasLitiimonitGedoo2d0w20illm7728021O9 thmerAinstsaoncgiaibteles aUsnseletsss1o2t,h4e6r6w1is4e,5s0ta3tePdr,optheertCy,opmlapnatnyan'sdperqinucipipmaelnatss7o,3c5ia1te6s,5a7ll1hIanvveesshtmareenct ainpiataslsoccoinastiesstianngdsjoolienltyvoefnoturdreinsa6r8y7sh73ar4esTraanddeaarnedaloltihnedrirreeccteliyvahbelleds. T65h9e 6c8o7unNtroyno-cfuinrrceonrtpaosrsaettison21o,r2r4e0gi2s2tr,a5t7i7onToafxaatliloanssroeccioavteesraibslaels1o,1t0h6ei1r,p4r4i3ncTipraadl eplaancde ootfhoeprerreacteioivna.bCleosu1n,t7ry54of1i,n36co6rOpothraetrioinnvoerstPmeercnetsnt5a5ge8166NCamasehoafnadsscoacsihateeqPuirvinacleipnatsl a3c2t0iv1it3y8reOgtihsetrratio1nCsuhrarreenhtoalsdsientgss3S,2a3fa5ri3c,o8m14LTimotaitledas2s,e3tsN2e4tw,4o7r5k2o6p,e3r9a1toEr qKueitnyysah4a0re.0hoNldoeterss:' 1fu2nd3sE(f3f,e4c7t5iv)e3o,6w9n6eLrsohnipg-pteerrmcebntoargroeswoinfgVso1d5a,7fo5n7e1G3r,7o9u7p TPlrcadaet 3an1dMoathrcehr p2a0y2a0brloesun4d4e1d9t8o Pthroevniesaiorensst1te1n,t1h1o1fOotnheerpe3r3ce3n1t.NTohne-cGurroreunpt alilasobihliotiledss1tw5,o83n5on1-5v,1ot3i7ngShshoartr-etse.rAmtb3o1rrMowaricnhgs220,29079th4e,2fa8i9r vParlouveisoifonthse6G98ro5u2p1'sTirnatdeereasnt dinoSthaefarrpicaoymabLleism8i,t4ed38w2a,s74K8ECSu4r2re3nbt illilaiboinli(tie3s,61722,1m15ill7io,5n5)8(2T0o1ta9l: eKqEuSity4a4n1dbliilaliboinlit(ie3s,2849,847m5il2li6o,n3)9)1bSastaetdemonentht eofclcoassihngfloqwuosteCdasshhafrleowprsicfreoomn othpeerNataiinrgobaicStitvoictikesE1x,c4h2a2n3g7e.8TChaeshfofllloowwsinfgrotmablienvpersotvinidgeascatgivgirtieegsa(te7d35f)in(a6n3c7i)alCiansfhorfmloawtisonfrfoomr tfhineaGnrcoinugp'ascatisvsioticeisat(e4s7a5s) i(t3r4e2la)tNesettocathseh ainmfloouwn/ts(oruetcfologwni)se2d12in(6th0e1)inCcaosmheanstdatceamshenetq,ustivataelmenetnstaot fbceogminpnrienhgeonfsitvhee ifnincaonmceiaalnydeacro1n2so7lidaCtaesdhsatantdemcaesnht of equivalents on formation 716 Exchange gain (19) 12 Cash and cash equivalents at the end of the financial year 320 127 12. Investments in associates and joint arrangements (continued) 1822 VVooddaaffoonnee GGrroouuppPPllcc
VodOafvoenrevZieiwggOovHSotlrdaitneggiBc.RVe. pCourrtreernvtieowtheArninnvueasltRmeepnotsrtcoonmFporirsme 2th0e-Ffo2ll0o2w0iSngtr:a2te0g2i0c Rmep2o0r1t G9 omverNnoantecse: G1 oItveemrnsaanrceemFeiansaunrceidalastFfianiranvcailaules aOntdhetrheinvfoalrumaatitoionnbOasthiseirsinlefvoerml 2atciolanssTifhiceaGtiroonu,pwhhoicldhscaomnupmribseesr oitfemotshewrhleisrteedfaairndvaulunelisisteddeitnevrmesitnmeednftrso,mmaininpluytscoomthperritshinagn mquaontaegdepdrifcuensdtsh, adteaproesiotbssaenrvdagbolevefronrmtheentasbsoentdosr. lAiacbcioliutyn,tienigthpeor ldicirieesctOlythoerrinindvireesctmtlye.nIttsecmosmaprreisminegasduerbetdaantdameqourittiyseidnsctrousmt aenndtsthareecraercryoginngisaemdoaunndtdaeprpercooxginmisaetedsofnaiar vtraalduee.da1te,1w1h5emreilaliopnur(c2h0a1s9e:or1s,1al8e4omf ailnlioinnv)eisstmmeenatsuisreudndaet rama coortnistreadctcowsht oasnedtreermmasirneiqnugiriteemdesliavreerymoefasthuereidnvaet sftamirevnatlwueit.hFionrthe1,t6im81efmraimllieones(t2a0b1li9s:hed3,b0y11thmeilmlioarnk)etthceovnacleuranteiodn, abnadsiasriesilneivtiealll1ycmlaesassifuicreadtioant ,fawirhvicahluceo,minpcrliusdesinfgintarnancisaalcitniosntrucmosetsn.tsDwebhtesreecfuariirtiveaslutheaitsadreetheremldinfeordcboylluenctaidojnuostfecdoqnutroatcetduaplriccaesshinfloawctsivwehmearerktehtossfeocraisdhenftloicwalsarsespertessoerntlisaoblielliytiepsa.yTmheenrtesmoafipnriinngcibpaallanancediisntleerveeslt2arcelamsseiafiscuarteidona.tIatemmosrtmiseeadscuoresdt uastinfagirthvealeufefeacntidvethientvearleusattmioenthboadsi,sleisssleavneyl i2mcplaasirsmifeicnatt.ioDne.bt1s,e0c1u7rimtieilslitohnat(2d0o1n9o:tm1,e0e9t7thmeicllriiotenr)iaisfomreaamsuorretidseadt fcaoirstvaarleuemaenadsutrheedvaatlufaaitriovnalbuaesitshriosulegvhepl r1o.fTithaenrdemloassin. iEnqguiitteymssecaureritmieesaasruerecdlaastsiafmieodrtainseddmceoasstuarnedd tahtefaciarrvryailnuge athmroouugnht aoptphreorxciommaptersehfaeinrsvivaeluien.c2om3e4, 5thTerheeiGs nroouspuibnsveeqsutesnsturrepclulasssciafsichaptioosnitoiofnfasiarcvraolsuseagpaoinrtsfoalniod loofsssheosrtto-teprrmofiitnovrelsotmssefnotlslotowminagndaegreeclioqguniditiitoynaonfdtchreeidnivt erisstkmwenhti.ls2t0a2c0hiemvin2g01s9uitamblDe erebttusrencsu. rTithieesseinacslsuedtsedo0.n7obtimllieoent t(h2e01d9e:fin0it.i8obniollfiocna)shofanlodancansohteesquisisvuaelednbtsy, but are included in the Group's net debt based on their liquidity. Bonds and debt securities includes 194 million (2019: 941 million) of highly liquid Japanese and nil (2019: 955 million) German government securities; 1,016 million (2019: nil) of German government backed securities; 471 million (2019: 1,115 million) of UK government bonds and 1,115 million (2019: 1,184 million) of other assets paid as collateral on derivative financial instruments. Managed investment funds of 2,451 million (2019: 5,513 million) are in funds with liquidity of up to 90 days. Other investments are excluded from net debt based on their liquidity and primarily consist of restricted debt securities including amounts held in qualifying assets by Group insurance companies to meet regulatory requirements. Included within current assets: Short-term investments: Bonds and debt securities3 2,796 4,690 Managed investment funds4 2,451 6,405 5,247 11,095 Other investments5 1,842 1,917 7,089 13,012 Included within non-current assets: Equity securities1 77 48 Debt securities2 715 822 792 870 13. Other investments 118833 Vodafone Group Plc Vodafone Group Plc Annual Report 2020
receVivAaoblnedsnaaruefareoclonrRdeedpaGtoarmoroturt2ispe0dPc2ol0stc. AThnneucaalrrRyeinpgorvtaolnueFoofrmall2t0ra-Fde20re2c0eiNvaNboloestt,eceosnstttroaoctttahshseeetcscaonodnfnisnoasnocleidlleiaasdetareetcdeeidvfaibnlfeiasnrneacconrdiaecdliaatstalmasottretiasmedteceomsnt tiessrne(dtcuscoe(dncbytoainllnouwteainncdeus)efodr) lTifreatdime aenedstoimthaetrerdeccreeivdaitblloesssmesa.iEnlsyticmoantseidstfuotfuarme ocruendtist olowsesdestoaruesfibrystcruesctoormdeedrsoanntdhaeminoiutinatlsrtehcaotgwnietipoanyotfoaoruercseuivpapblileerasnidn aardevbanacseed. Donertihveataivgeeifningaonfctihael irnescteruivmaebnletsbwaliathncaesp,ohsiisttivoreicmaalrekxeptevraielunecearaendrefpoorrwteadrdwliothoikninthgisconnostiedaesraatrioencso.nItnrdacivtiadsusaeltsb,awlahniccehsraerperewsreinttteannoafsfswethfeonrmacacnraugeedmreevnet ndueeeminsrtehsepmecntootftgooboedscoolrlescetrivbilcee.s20de2l0ivemred20to19cusmtoNmoetressf:o1r Pwrheivcihouasltryaddiescrelocseeivdaabslepadroteosfnporteypeatyemxeinsttsanindtfhineaynecaer leenadseedre3c1eiMvaabrlcehs,2r0e1c9o.g2niIsteedmws hareeremtheeasGurreodupatafcatisr avsalauleesasnodr.thSeeevanloutaeti2o0n "bLaesaisseiss"lefvoerlm2ocrleasinsiffoicrmataiotino,nwohnicthhecoGmropurips'esslietaesminsgwahcetirveitfiaeisr.vAacluceouisntdientgerpmoilniceidesfrTormadienpreuctseiovtahbelresthraenprqeusoetnetdapmroicuenststhoawt aerdeboybcsuersvtoambleerfsowr htheereasthseetroigrhlitatboilpitayy,meeitnhteirsdciorencdtiltyioonrailnodnirleycotlny.thTehpeaGssraoguep'osfttriamdee.rTecraedivearbelceesivanabdlecosnthtraatcatraessreetcsoavreerecdlaisnsiifnisetdalamt eanmtsorftriosmedccuossttoumnelresssovstearteadn oetxhteernwdiesde paenrdioadrearmeedaissucroeudnatefdtear tamlloawrkaentcreastefsoranfudtuinreteerexsptercetveedncureedisitalcocsrseetse,dseoevenrotthee2e2x"pCecatpeidtarleapnadymfineannt cpiearliorids.kOmthaneragtreamdeenrte"cefoivrambloersedionfnoormt caatiroryn aonnycirnetdeirtersitskan. dThaerecsatrartyeidngatatmheoiurnntosmofintraaldvealauned. WothheernrethceeiGvarobuleps,ewstahbiclhishaeres amperaascutriecde aotfasmelolirntgisepdorctofoslti,oaspopfrorxecimeiavtaebtlheesifrrfoamir tvimaleuetoantidmaerethperseedpoomrtifnoalniotlsyanroenr-eicnoterrdeesdt abtefaariirngv.alTuheethGrroouugph'sotchoenrtrcaocmt-prerleahteendscivoestisnccoommper;iasello1th,8e5r5trmadiellion (2019: 1,433 million) relating to costs incurred to obtain customer contracts and 66 million (2019: 74 million) relating to costs incurred to fulfil customer contracts; an amortisation and impairment expense of 1,475 million (2019: 1,506 million) was recognised in operating profit during the year. In February 2020 357m (January and February 2019 57 million and 70 million, respectively) of trade receivables were reclassified from amortised cost to fair value through other comprehensive income following changes toCtohnetrGarcotuaps'ssetbsu2s,i9n8e0ss3m,6o7d1eCl uonndtrearcwt-rheilcahtetdhecobsatlsan1c,2e9s3m1a,y13b2e Asomldoutontastohwireddpbayrtya.ssTohceiaftaeisr avnadlujeosinotfvtheentduererisv3a6ti2ve38fi8naOntchiearl irnescteriuvmabelnetss 8a7re1c8a7l6cuPlaretepdaybmy ednistsco8u5n9ti1n,g22th7eDfuertuivraeticvaeshfifnlaonwcsiatloinnsettrupmreesenntst2v7al5u2es19u5sin11g,a4p1p1r1o2pr,1ia9t0e 1m4a.rTkeratdinetaernedstorthateersraencedivfoarbeliegsn1c8u4r4reVncoydarfaotensepGrerovuaipliPnlgcat 31 March. Included within non-current assets: Trade receivables 68 197 Trade receivables held at fair value through other comprehensive income 261 179 Net investment in leases1 118 Contract assets 583 531 Contract-related costs 628 375 Other receivables 84 78 Prepayments 212 371 Derivative financial instruments2 8,424 3,439 10,378 5,170 Included within current assets: Trade receivables 3,706 4,088 Trade receivables held at fair value through other comprehensive income 556 613 Net investment in leases1 32
OveOrvveiervwiew Annual Report on Form 20-F 2020 Strategic Report Strategic Report GovGeorvnearnncaence FinFainncainaclsials OthOetrhienrfoinrmfoarmtioantion Trade and ointhcelurdpeaya2b9l4esmmilaliionnly(2c0on1s9i:st 2o8f 8ammoilulniotsn)owinerdestopescutpopflitehresrteh-aitnshuarvaencbeeeonf ianvthoiircdepdaorrtyaraennauccitryuepdolaincyd rceolnatteradcttolitahbeilVitioedsarfeolnaetinagndtoCcWonWsidSeercattiioonnsreocfetihveedVofrdoamfocnuesUtoKmeGrsroiunpaPdvenansicoen. TShcheyemales.oTihneclfuadirevtaaxlueessaonfdthsoecdiearlisveactuivreityfinamanocuianltsindsutreuimnernetlsataiorenctaolcthuelaGterdoubpy'sdirsocloeuanstianngetmhepfluotyuerre. Dcaesrhivfalotiwves ftoinnanetciparleisnesnttruvmaleunetssuwsiitnhgaapnpegroaptirviaetemmarkarektevtailnuteeraerset rreatpeosrtaenddwfoitrheiingnthcisurnroetnec.yArcacteosupntrienvgaiplionlgicaiets3T1rMadaercpha.yIanbclleusdaerde wnoitthiinntenroenst--cbuerarerinntgliaanbdiliatrieess:tOattehdeartptahyeaibr lneosm3i4n0al32va7luAec.c2r0u2al0s6m0 1210319ComntrNacottelisa:b1ilIitteiems s6a1r2e5m74eaDsuerreivdaattivfeaifrinvaanluceiaalnindstthruemvaelnutas1tio4n,1b7a7si1s,9is24lev5e,1l829c2la,9s3si8fiIcnactilound,ewd hwiicthhicnocmuprrreisnetsliiatebmilistiwesh:eTrerafdaeirpvaaylaubeleissd6e,5te9r9m6in,5e4d1frAommoiunnptustsowotehdertothaasnsoqcuioatteeds apnridcejositnhtavteanrteuorebsse5r1va2b6leOftohrerthteaxaessseatnodrsloiacbiaillitsye,cueirtihtyerpdaiyraebctlley1o,1r 0in4d1ir,2ec1t8lyO. 2thIenrcplauydaebslensi2l ,(02307191,:418023Acmcirluliaolns2) p4a,7y1a3bl6e,1in20reClaotinotnratcot tlhiaebiirlriteiveosc1a,b9l9e1a1n,d81n8onD-edrisivcaretitvioenfainryanschiaarleinbsutyrubmacekntpsr1og5r9a0m5m2e0a1n7n,0o8u5nc1e7d,6in53Ja1n5u. aTryra2d0e1a9n.dTohtehecraprrayyianbglaesm1o1u8n8ts55ofVtroaVdedaaonfddooathneferopnaGyaebroleGsuarppporuoPxpimlcaPtlectAheninrufaailrRveapluoert. 2M0a2t0erially all of the 1,818 million recorded as current contract liabilities at 1 April 2019 was recognised as revenue during the year. Other payables included within non-current liabilities
decom1m8i6ssVioondinafgf.oTnheeGarsrsooocuiuatpepdPcPalslchcoNutNflooowttseaerseststouobtstthahnetieacllcyooenxnpesocsteodlidtoliaodcctauertdaet dthfienfdiaatnensaocfndiaeccloiamstmlaisststieoanmintegeomfnttheesna(stscestos(tnocwtohinicnhuttehienydure)eladt)eA, anpdroavriesiloonngistaerlmiabinilintyatruerceo. rLdeegdailnatnhdersetgautelamtoernyt oTfhfeinGanrocuiaplipsoisnivtioolnv,ewd hineraenthuemrebeisr uofncleegrtaalinatnydoovthererthdeistpimutiensg, ionrcalumdoinugntntohtaiftiwcaitlilobnespoafipdo, sasnidblies ctlhaeirmefso. rTehoeftDenireecsttoimrsaotefdt.hTehCeommapiannpyr,oavfitseirotnaskwineghleogldalaardeviincere,lhaativoenetsotaabslsiesthreedtipreromveisnitoonbslaigftaetriotnask,inwghiinchtoiancccluoduentththeecofascttosforfeetuarcnhincgasnee. tFwoorrak dinisfcrausstsriuocntuorfecseirtetasintolethgeailriossriugeisnaplocteonntdiaitliloynaafftetchteinegntdhoefGthroeulpeasseee, nanodtec2la9im"Csofnotrinleggeanltalniadbrileigtiuelsataonrdylmegaattleprrso. cAececdoinugnsti"ntgoptholeiccioenssPorloidvaisteiodnfsinaarnecrieaclosgtantiesmedenwtsh.eOn tthheerGprroouvipsihoanssaOptrheesrepnrtoovbisliigoantsiocno(mlepgraisleovracroionustsruamctiovuen)tassinacrleusduilntgotfhaospeasftoervreesnttr,uicttiusrpinrgobcaobsltes tahnadt,thfoerGthreouypeawr iellndbeedre3q1uMireadrctoh 2se0t1tl9e,tuhnauttoilbisliegdatpiroonpaenrtdy.aTrehleiaabslseocesiatitmedatceaschanoubteflmowadsefoorf rthesetraumctouurnint gofcothsetsoabrleigpartiimona.riPlyrolvesissiothnasnaorenemyeeaasru.reAdssaettthreetiDreimreecntotrosb' lbigeasttieosntsimLaetgeaolfatnhdereexgpuelnatdoirtuyrOe trheeqru1irTedottaol semttlemthemoblmiga3t1ioMn aatrcthhe2r0e1p8or5t8in3g5d2a2te85an1d1a,9re56diEscxocuhnantegdetmo opvreesmeennt tvsa(l4u)e (w5)he5re(4t)hAe meffoeucnttisscmapaittearliiasle.dWinhethree tyheeatrim21in0gof 2se1t0tleAmmeonut nistsucnhcaerrgtaeidntaomthoeunintscoamreecslatastseifmieedntas n9o1n6-c4u3r7re3n4t Uwthileirseedseitntlethmeeynetairs -expapeycmteedntms o(3re2)th(5an3)1(225m3o)n(t3h3s8f)roAmmothuenrtseproelretiansgeddatotet.hAe sisnectormeteirsetmateenmt eonbtliga(4ti8o)n(s1I0n8t)h(e15co6u)r3s1e MofatrhcehG2r0o1u9p7's5a7c5ti0v7it1ie,s1,3a8n2u,4m0b2erAodfospittieosnaonfdIoFtRheSr1a6ssets (a8re5)u(ti8l5is)e1d Awphricilh2a0r1e9e7x5p7ec5t0ed7 t1o,0h5a3ve2,c3o1s7tsNaossteo:c1iaOtetdhewritihncludes restructuring provisions of 543 million (2019: 499 million). Exchange movements (16) (2)3(15) Acquisition of subsidiaries 5618104178 Disposal of subsidiaries (69) (6) (75) Amounts capitalised in the year 270270 Amounts charged to the income statement 122712834 Utilised in the year - payments (34) (98) (579) (711) Amounts released to the income statement (9)(45) (212) (266) Transfer to liabilities held for resale (5) (27) (2) (34) 31 March 2020 9504751,0732,498 16. Provisions 186 AnnuuaallRReeppoorrtto2n0F2o0rm 20-F 2020 2020
OveOrvveiervwiew Strategic Report Strategic Report GovGeorvnearnncaence FinFainncainaclsials OthOetrhienrfoinrmfoarmtioantion Provisions have been analysed between current and non-current as follows: 31 March 2020 Asset retiremtheenGt orobulipgaatnionnosuncmedLtehgeapl laancdinrgegouflsautobroyrdimnaOtetdhemr anmdaTtoortyalcomnv3e1rtiMblaerbchon2d0s1t9otAalslsientgr£et1ir.7e2mbeinltlioobnliwgiatthioans2Lyeegaralmaantdurrietygudlaatteoriyn O20th2e1raTnodta£l1.7m2 bmilliomn wmithCau3rreynetarliambailtuitriietsy2d8at2e7d4u8e5i8n12,012620.NTohne-bcuonrrdesnat rleiacboilnitvieesrt7ib2l9e i2n3t3o 2a8to0t1al,2o4f227,658745,506731,7,15398o2rd,4in0a2ryCaslhlaerdesupwsithharaeccoanpvitearlsiiosnthperincuemobf e£r1o.2f8s1h4arpeesrisnhiasrseu.eFaotrtfhueritrhpearrdveataluiles.sAeennuomtebe2r1o"fBsohrarroews iwngerse".aRlloepttreedsednutrsinUgSthsehayreeaarwinarrdeslaatinodnotopteiomnpslochyeeme sehaawrearsdcsh.e2m3esO. rAdcincaoruyntsihnagrepsoloifci2e0s2E0q2u1itUySincsetrnutsmeeancths iaslsluoettdedb,yistshueeGd raonudpfaurlelyrepcaoidrd:1e,d2a1t tAhepraiml 2o8u,n8t1o5f,2t5h8e,1p7ro8c4e,e7d9s6r2e8c,e8i1ve4d,8,0n3e,t3o0f84di,7re9c6t Aisslluoatntecde dcuorsitnsg. 2th02e0ye2a0r1396N56u,m80b0er14m54N,8u7m0be3r1MmaNrcohte2s8: ,181A5t,93114M,97ar8c4h,729072028t,h8e1G5,r2o5u8p,1h7e8ld4,27,906431,77.5C0a,4ll3e4d(u2p01s9ha:r1e,5c8a4p,i8ta8l2C,6u1r0re)nttreliaasbuirlyitisehsa2re3s29w2it7h0a91n,o0m24inNalonva-cluuerroenf tl3ia4b0ilmitiilelsio9n27(21081393:64216,447m4i9ll5io0n4)7.5T1h,0e7m32a,r4k9e8t v1a1l8u8e7o7f VshoaVredsahoefdldoawnafseon2G,6e1r0oGmuilrlpioounP(p2l0c1P9l:cA2n,5A6n6umnailnlliouRn)a.eDlpuRrionegrptht eonyretaFr2, o409r,m62290,2805-1F(22001290: 45,657,750) treasury shares were reissued under Group share schemes. On 25 February 2019, 799,067,749 treasury shares were issued in settlement of tranche 2 of the maturing subordinated mandatory convertible bond. On 5 March 2019
1co88stVapopdraofxfoimneatGesrrtohoeuirupfapiPr Pvlallcuce.NCNaosohttaenedssctatoshotethqhueievcacleonotnsnosfoso1l,i4d6l0iamdtialelitodned(f2i0n1fi9a:nn1ac,3n8i1acmliailsltiloans)tteaaremhteeeldminntecsonu(ntctrsioe(snwctiothinrneustteriicntdioun)esdo)nTrheemtiatbtalnecbeeslobwutswhhowersehthoewboaularn(cleosssc)/opurlodfibtefoursethdetoyeraerpafryomsubcsoindtiianruieins'gtohpiredraptaiortnysltiraabnisliltaiteess. iCnatoshcaast hbaflnokwasngdeinnehraatnedd 1fr,9o4m7o2u,4r 3o4peRreatpiunrgchacatsieviatgierse.e2m0e2n0tsamnd20b1a9nkmde2p0o1si8ts2m,2N02ot2e,s1T96heMmoanjeoyrimtyaorkfetht efuGndrosu1p9',s1c3a5sh9,0is0h7eCldasinh baanndkcdasehpoesqiutsivoarlmenotsneays pmraerskeenttefudnidnsthwehsitcahtehmavenetaomf faitnuarnitcyiaolfptohrseiteiomno1n3t,h2s8o4r1l3e,s6s3t7o Benaanbkleovuesrtdoramftese(t2o6u9r)s(h3o2r)t-Ctearsmh alinqduicdaistyh reeqquuiviraelmenetnstsh.eAldcfcoorusnatlineg27p3olicCieassChaasnhdacnadshcaesqhuievqauleivnatlseanstspcreosmepnrteisdeicnatshheisntahtaenmdeanntdofcaclalsdhefploowsitss,1a3n,2d8o8th1e3r,6s0h5or1t9-t.eCrmashhigahnldyclaiqsuhiedqiunivveasletmntesn(tsLothsast)/aprreofrietafdoirlythceonfivnearnticbialel ytoeaark(n4o5w5)n(7am,6o4u4n)2t,o7f8c8aLshosasnfdorartehesufbinjeacntctiaolayneainrsfirgonmifidciasnctornitsiknuoefdchoapnegraetsioinnsv7alue3.,5A3s5se1t,s9i6n9m(Loonsesy)/mpraorfkiettfofurnthdes,fwinhaonsceiacloynetararcftruoaml ccaosnhtifnlouwinsgdoopenroattiroenpsre(s4e5n5t)s(o4l,e1ly09p)a4y,7m5e7nNtsoonf-ionpteerreatsitnagnedxppreinnsceip3al7,3a2reInmveeasstumreendtaitnfcaoirmvea5lu(e24w8i)th(4g3a3i)ns(6a8n5d)lFoisnsaenscainrigsicnogsftrso5m3,c5h4a9n2g,e0s8i8n 1fa,0ir74vaIlnuceoimncelutadxedexipnennestep/(rcorfeidt iot)r 6lo1ss,2f5o0r t1h,4e9p6er(i8o7d9.)AOllpoetrhaetirncgapshroafintd/(lcoasssh) 4eq,0u9iv9a(l9e5n1ts)4a,r2e9m9 eAadsujuresdtmaetnatms foorrt:isSehdacroe-sbt.a2s0ed20paymm2e0n1ts9anmd oNthoeter:n1oInt-ecmasshacrehamrgeeassu1r4e6d 1a4t 7fa1i2r 8vaDlueepraencdiatthioenvaanludaatimonorbtiassaistioisnl1ev0e, l111 c1l4a,s1s7if4ic9a,t7io9n5,1w0h,4ic0h9 cLoomssproinsedsisfipnoasnaclioalf ipnrsotpruemrtye,nptslawnht earnedfeaqiruvipamlueenitsadnedteirnmtainngedibbleyausnseatdsj3us5t1ed3q33u6otSedhaprreicoefsriensualcttiovfeemquairtkyeatsc.cTohuentceadrraysisnogciaamteosuanntdojfobinatlavnecnetsuraetsa1m2o2rt,i5s0e5d 90859 Impairment losses4 1,685 3,525 Other (income)/expense (4,281) 148(213) Decrease/(increase) in inventory 68 (131) (26) (Increase)/decrease in trade and other receivables14 (38) (31) (1,118) (Decrease)/increase in trade and other payables15 (100) 739286 Cash generated by operations 18,309 14,18213,860 Net tax paid (930) (1,131)(1,118) Cash flows from discontinued operations (71) 858 Net cash flow from operating activities 17,379 12,98013,600 18. Reconciliation of net cash flow from operating activities 188 AnnuuaallRReeppoorrtto2n0F2o0rm 20-F 2020 2020
(sOeevbeervloieww).OTvheStursaetefuglicliRfeeopfortht eeravsiseewt iAs ndentuearlmRineepdoritnoanmFoarnmne2r0c-oFns2i0s2te0nSt ttoratthegaticfoRreopwornteGd opvroerpneartnyc,epGlaonvt earnndanecqeuiFpimnaenncti(aalss dFeinsacrnicbieadlsinOtnhoetrei1n1fo).rmIfartiigohnt-Ootfh-uesreinafsosremtsaatrioencoAnssiddiescrelodsteodbine inmopteai1r,etdh,ethGercoaurpryaipnpgliveadluIeFRisSre1d6uucseidngactchoermdiondgilfyi.eLderaestreolsipaebciltiitvieesaaprperoinaicthiaallnydmtheearseufroerdeatthethceovmapluaeraotfivteheinlfeoarsmeaptaioynmheanstsnoovtebretehnerleesatsaetetderamndthcaotnatrienuneosttpoabide artepthoertceodmumndeenrcIeAmSen1t7daantedaInFdRIaCre4u.sTuhaellydedtiasiclosuonfteadccuosuinntgintghepionlcicrieems eunntdaelrbIoArrSow17inagnrdatIeFsRoIfCth4eaarpepdliicscalbolseeGd rsoeuppareantetiltyy; (ktehye draiftefeirmenpcliecsitbientwtheeenleIaFsRe Sis1u6seadndifIiAt iSs 1re7aadnildy IdFeRteIrCm4inaarbeled)e.sLcreiabseedpianynmoetent1s.iLncelausdeeadcicnotuhnetilnegaspeolliiacbyiulintydeinrcIlFuRdSe b1o6thAfsixaeldespsaeyemWehntesnatnhde iGnr-souubpsltaeansceesfaixneadspseaty, mae`nritgshdt-uorfin-ugstehaestseertm' isofrethcoeglenaisseed. Afofrtetrhienlietiaaslerdecitoegmniatinodn,atlheeasleealsiaebliilaibtyiliitsyreiscoregcnoirsdeeddfoart aanmyolretiasseedpcaoysmt uesnitnsgtothbeeepfafeidctoivveerinttheerelestasmeettehromd.aIttthiserleemaseeascuormedmwenhceenmtheenrtediastea.cThhaengrieghint-fouft-uurseelaesasseet pisayinmiteianltlsyamriesiansgurferdomatacocshta,nbgeeining tahneipnrdeesxenotrvraalteue(eo.fg.thaenlienafsleatpioanymreelanttesdpianidcroearspea)yoarbilfe,thpeluGsraonuypi'nsiatisasledssirmecetnct oosfttshienlceuarsreedteirnmencthearninggest;haenlyeacsheaanngdesleisnstahneylelaesaeseliianbcielinttyivaessarerecseuivlteodf. Rthiegshet-cohfa-unsgeesasaslesotsraerseudltespirnecaicatoerdreosnpoansdtirnagigchht-alningee binastihsefrroemcortdheedcorimghmt-eonfc-eusmeeanstsdeat.teAtsoathleesesaorrlWierhoefrethteheenGdroouf pthies aaslseests'osru,sietfdueltelirfme ionretshaeteinndceopftitohne wlehaesethteerrmth.eTlheaesleeaisseatfeirnmanicsethoer annono-pcearnactienllgableleaspee. rWiohdeonfathleealseeasterapnlsufserasnsyubpestraiondtisalfloyrawllhtihcehrtihseksGarnodupreiws `arredassoofnaobwlynecresrhtaipino'ftotheexuenrcdiesrelyainnyg eaxssteent stihoennothpetiolenasse is a finance lease; otherwise the lease is an operating lease. Where the Group is an intermediate lessor, the interests in the head lease and the sub-lease are accounted for separately and the lease clpaassyimficeanttisoansodfeatesrumbi-nleeadsaetitshdeeitnecrmepitnioedn boyf trheefelreeanscee. Ttohtehceorrirgehstp-oonf-duisnegalisasbetilaitryistiongthferolmesstoher wheaasdinlecalused.eIdnicnotmhee fsrtoatmemoepnetraotfinfignalenacsieasl ipsorseitcioognnaisseadfoinnaancsetrlaeiagshet-olibnleigbaatisoisn.oLveeratsheeplaeyamseentetrsmw.eIrnecaopmpeorftrioomnefdinbaentcweeleenasfeinsainscreeccohganrgiseesdaantdleraedseucctoiomnmoefntcheemleeanstewoibthliginatteiorensstoinacsotmoeacrehcieovgeniasecdonosvtearntthreatleeaosfeintetermre.stLoenasteheinrceommaeiniisnrgecboaglannicseedoafsthreevleianbuielitfyo.rDtreapnrseaccitaitoinosntahnadt afirneapnacret ocfhathrgeeGs rwoeurpe'sreocrodginnaisreydaicntitvhietieinsc(opmrime astrailtyemleeanste.sRoefnhtaalnsdpsaeytsaoblreouthnedreerqoupieprmateinngt tloeacsuesstowmeererscohralregaesde,saonfdwlehaosleesinacleenatcicveesssrteocethiveeGd,rowuepr'escfriebdreiteadndtoctahbeleinnceotwmoersktsa)t.eTmheenGt oronuapsutrsaeisghIFt-RliSne1b5apsriisnocvipelretshteotealrlmocoafteththeerecloenvsaindtelreaatsioen. AinscaolnetsrsaocrtsLbeestsworeeanccaonuynlteinagseaapnpdliendonin-ltehaesecocmompaproantievnetsp.ePrrieovdiowuassaccocnosuisntteinngt wpoitlhictiheastfdoersccormibepdarfaotirvIeFRpeSri1o6dsabuondvee,r eIxAcSep1t7foanr dthIeFlReIaCse4cAlasssaifliecsasteioenL, eaassaesfiwnaenrececloarssoipfeieradtiansgfilneaansec,eolefaasesusbw-lheeanseevwerhitchhe wtearms dseotfertmheinleeadsbeytrraenfsefreernrceed tsoubthsetaunntidaellrylyainllgthaessreits.k2s0a.nLderaeswesar1d1s8o8f9o9wVnoedrsahfoipneofGtrhoeuapssPelct tVo othdeafloensseeGe;roalulpoPthlecrAlenansueaslwReerpeocrlta2ss0i2f0ied as operating leases. Assets held under finance leases were recognised as assets of the Group at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease
AnnuuaallRReeppoorrtto2n0F2o0rm 20-F 2020 NNootteessttootthheeccoonnsosolidliadtaetdedfinfiannacniacliastlastteamteemntesn(tcso(nctoinnuteindu)ed) The Group's leasing activities As a lessee The Group leases buildings for its retail stores, offices and data centres, land on which to construct mobile base stations, space on mobile base stations to place active RAN equipment and network space (primarily rack space or duct space). In addition, the Group leases fibre and other fixed connectivity to provide internal connectivity for the Group's operations and on a wholesale basis from other operators to provide fixed connectivity services to the Group's customers. The Group's general approach to determining lease term by class of asset is described on page 146 under critical accounting judgements and key sources of estimation uncertainty in note 1. Most of the Group's leases include future price increases through fixed percentage increases, indexation to inflation measures on a periodic basis or rent review clauses. Other than fixed percentage increases the lease liability does not reflect the impact of these future increases unless the measurement date has passed. The Group's leases contain no material variable payments clauses other than those related to the number of operators sharing space on third party mobile base stations. ThceasGhroouutpflsouwb-floerasleesaseexscienssthreetyaeilaarnedndoefdfic3e1pMroaprecrhti2es02u0ndwearsbo3th,9o0p2emraitlilniognaannddf,inaabnsecnetlseiagsneisf;icseanetdfiustculoresucrheaonngetsheinGthroeuvpo'slulmeaesionfgthaectGivriotiueps'assaactlievsistoiersboerloswtra.tOegpiecracthioanngaelsletaoseuspeemrioodres Wor hfeerweeprroawctniceadbalesstehtes Gthriosulepvseeleokfsctaosihncoluutdfleowextferonmsiolneaosresbrweaokulodpbtieoenxspineclteeadsetos tcoonptrionvuiedefoorpfeurtautrieonpaelrifoledxsi,bsiulibtyje, ctht etorecfoonretramcatnuaylopfritchee iGncroreuaps'essl.eTahsee cfoutnutrreacctasschofnltoawinsoinpctiloundaeldpweriitohdins.leTahsee Gliarobuilpit'isespoalriecyshoonwanssinestshinegmaantudrrietyasasneaslsyinsigs wbehleotwheornitpisagreea1s9o1n.aTblhyecmerattauinrittyhaatntahleysoisptoinonlyalinpcelruiodedswthilel breeaisnocnlaubdleydcienrttahienlpeaaysemteenrtms tios dbeesmcraibdeed; coanshpaoguetf1lo4w6suinndtehrecsreitfiucatul raecpcoeruinotdisngwjiulldlgikemeleynetxscaeneddktheyesseoaumrcoeusnotfseasstipmayatmioenntusnwceilrltabientmy aindenootneo1p.tAiofntearl ipneirtiioadl srencootgcnoitniosindeorfeadlreeaasseo,ntahbelyGrcoeurtpaionnalyt prereassesnestsaensdthoenlneeawselteearsmeswehnetenrethdeirnetoisiansfiugtnuirfeicpaenrtioedvse.nTt hoer aGsriogunpi'fisclaenatsecshafongr ecuinstocimrceurmcostnanneccetsiv, iwtyhiacrhe wnoarsmnaoltlyanetiitchieprautenddeart trheegutilmateedofacthceespsroervinoeutswaosrskessshmareinntg. oSrigsnimifiiclaarnpt reevfeenretsntoiralsiagcnciefsicsaanrtracnhgaenmgeesnitsn acnirdcuasmastraenscuelst tchoeuGldroinucplundoermmaelrlgyehr aasnsdiganciqfuiciasintitofnleoxribsiilmityilaorvaecrtithveityte,rsmignitifciacnanlet aesxepseuncdhitucroennoenctthioenlseafsoerd; gaesnseetranlloyt athnetincioptaicteedpienritohde rperqeuviiroeudstaoscsaensscmeletnhte, oleradseetaisileledssmtahnaangtehmeennottipcleanpserinioddiciantcinlugdaeddiifnfethreenstecrovniccelucsoionntraocntowpittihonthael peenrdiocdussttoomtheer.pAresvaioruessualst,sethssemGernotu. pWdhoeersenaostihgnavifeicaannyt esivgennitfiocransitgcnaisfihcaenxtpochsuarnegetoinopctiirocnuaml sptearnicoedssdoonecsunsotot mocecrucro, nthneecletiavsietytearsmthaendGtrhoeurpefcoarnecleaansceellitahbeillietyasaenwdhreignhtth-oefs-uersveicaessaegtrveaelmuee,nwt eilnlddse.cIlninseomoveecr itricmuem. sTtahnecGesrothupe's
Group is committed to minimum spend amounts for connectivity leases, which are included within reported lease liabilities. Sale and leaseback The Group sold its Italian mobile base station assets to Infrastrutture Wireless Italiane S.p.A. (`INWIT') (see note 27 "Acquisitions and disposals" for additional details), and entered into an agreement to lease back space on these and other INWIT mobile base station towers to locate network equipment for 8 years (see note 30). The Group de-recognised assets related to the mobile base stations with a net book value of 548 million. A total gain on disposal of 4,100 million will be realised as a result of the disposal; 744 million of this gain, reflecting the gain on the proportion of sold towers that has been retained through the leaseback, has been recorded as a reduction in the value of the right-of-use asset recognised for the leaseback of tower space and will be realised as a reduction in depreciation over the lease term. Other sale and leaseback transactions entered into by the Group were not material, individually or in aggregate. 20. Leases (continued) 1900 Vodaffone GrroouuppPPllcc
inOclvuedOedrvivnetiheervlweaiesewliSatbrailtietyg.icTRheepGorrotuSptrdaoteegsicnoRteappoprltyGeoitvhGereothrevnsehaorrntntecarmenocre lFoiwnFvaailnunecaeixnpaecdlsieianltsoOptthioOnestrinhiIeFnRrfSoi1n6rm. Afosaarmletsiosoanr tTiohne AGmroouupnhtsasreacowgidneiseradnignetohfe lpersismorarayctfiivniatinecsiawl isthtatceomnesunmtseirnarneldateinotnertporilesessceuesttroamnsearcs,tiootnhserRtieglhetc-oomf-umsuenaiscsaettisonThcoemcaprarnyiiensgavnadluoethoefrtchoemGpraonuipe'ss. rWigihtht-ocfo-nussuemaessreatns,ddeenptreercpiraitsieoncucshtoarmgeerfso, rththeeGyreoaurpagnednaedradtietisolnesasdeurinincgomtheefyreoamr athree dpirsocvliossieodn ionfnhoatned1s1et"s,Prrooupteerrtsy,anpldaontthaenrdceoqmumipumneicnat"ti.oLnesaesqeuliipambielintite. sTTheheGGroruopupp'rsolveiadseeslwiahboillietsieasleaareccdeissscltoosethdeinGnrooutep'2s1fi"bBreorarnodwcinagbsle".nTethweomrkastuarnitdylperaosfeisleoouft tshpeacGeroonupth'selGearsoeulpia'sbiolwitineesdismaosbfiolellobwasse: s2t0a2ti0onsmtoWoitthheirntoelneecoymeamr u3,n1i7ca2tiIonnmcoormepthananieso.nIenyaedadribtiuotnl,etshsetGharnoutwposuybe-alresas1e,s99re8taInil mstoorreesthtoanfrtawnochyiseearpsabrutntelresssinthcaenrtathinreme ayrekaertss1a,n5d23leIansemsooruettshuarnpltuhsreaessyeetasr(seb.gu.tvleascsanthtaonfffiocuesr yaneadrsre1ta,3il2s8toIrnesm)otoreotthhaenr fcooumr pyaenairessb. uLtelsessosrtthraannsfaivcteioynesarasre1,c1la2s7sIifniemdoarseotphearnatfiinvge oyerafrins a4n,4ce43le1a3se,5s9b1asEefdfeocnt owfhdeitshceorutnhteinlgea(s1e,5t2ra8n)sLfeerassseulbiasbtailnittiyal(lnyoatell2o1f "thBeorrirsokwsianngds"r)e1w2a,r0d6s3inActid3e1nMtalartochow20n2e0rsthhiepGofrothuep ahsasseet.nLteeraesdesinatroelienadsievcidounatrllayctasswseisthsepda, ybmutegnetnoebrlaigllayt,iothnesGwriothupa'nsulensdsioscrotruanntseadctviaolnuseaorfec6la7ssmifiilelidonast:h-aOt pheardatniontgcloeamsmesewncheedreatth3e1GMroarucphis20le2s0s.oIrnotefrsepsat ceexpoennoswe noendlemasoebillieabbialisteiesstafotirotnhse, pyreoavriidsedsiwschloosleesdailne nacoctees5s "toInivtsesftimbreenatnidnccoambleeannedtwfionraknscoinrgprcoovsitds"e.sTrohuetGerrsoourpshimasilnaor emqautieprmiael nlitatboilfiitxieesducnudsetormreesrisd;uaanldva-Fluineagnucaeralenatseeess wanhdermeatkheesGnrooumpaitesrsiualb-plaeyssmoernotfs hfoarndvsaertiasbolrespimayimlaer nittesmnos tin back-to-back arrangements or where surplus assets are sublet out for all or substantially all of the remaining head lease term. The Group's income as a lessor in the year is as follows: 2020 m Operating leases Lease revenue (note 2 "Revenue disaggregation and segmental analysis") 502 Income from leases not recognised as revenue 203 The Group's net investments in leases are disclosed in note 14 "Trade and other receivables". The committed amounts to be received from the Group's operating leases are as follows: Maturity In one to twoIn two to In three to four Within one year In four to five In more than yearsthree years years years five years Total m m m m m m m Committed operating lease income due to the Group as a lessor 442 211 114 53 44 223 1,087 The Group has no material lease income arising from variable lease payments. 119911 VoVdaofdoanfeonGeroGurpouPplcPlc AnAnunanluRaelpRoerpt onrtF2o0rm2020-F 2020
192bVoorrdoawffionnges GisrrreocoougunpipsPedPlolcvcerNtNheootetrtmeesosftttohoettbhohreroecwcionogn.nWsohseorleidbloianddtsaeitsdseudedfinwfiiathnncaecrtnaiiancclioanstvlaesrsttieoanmritegehmtsnatreesnid(tecnstoif(inecdtoaisncnoumteipnoduun)dedin) sTtrhuemGernotsupth'seysoaurreceinsitoiaf lblyormroewasinugrefdoratfufanidrivnagluaendwliitqhutihdeitynopmurinpaolseasmcooumntesfrreocmoganrisaendgeasofa ccoommmpoitnteedntbiannekqfuaictyiliatnieds tahnedfathirrovuagluhesohforfut-ttuerremcaonudpolonnsgi-ntcelrumdeidssiunanbcoerrsoiwn itnhgesc.aTphiteaslemaarerkseutbssienqculuednitnlygmboenasduarnedd actoammmoerrtcisieadl pcaopset ruissisnugetshaenedffbeacntikveloianntesr.eLsitarbaitleitimesetahroisdin. BgofrroromwtihnegsG2r0ou2p0'smlea2s0e1a9rramngNemoteens:ts1aAret a3l1soMreaprcohrt2e0d2i0n bthoerraomwoinungts;insceleundoetse250,2"9L2emasielsli"o.nW(2e0m19a:na2ge,0t1h1embailsliisono)niwnhreiclahtiwone itonccuarsihntreerceesitveodn udnebdet rbcetowlleaetenrafilxseudpipnotretreasgtreraetmesenatnsd. 2floInactilnugdeinste3re,2s1t 5ramtesilldioepne(n2d0i1n9g:on1,m91a9rkmetilcloionnd)itoiofnsspeucstirnugminltiecreenscteraptaeydaebrlievsaftiovlelosw. TinhgetGherocuopmepnlteetrisoninotof rfeocreenigtnauecxtcihoannsgien cGoenrtmraacntsytoofm1it,i3g7a0temthileliiomnp. aTchteoffaeirxcvhaalunegeofrathteemGoroveump'esnftisnoanncciaelrtaasinsemtsoannedtafriynaintecmiasl.lAiacbciloituinestinhgelpdoalticaimesoIrntitseerdesct-obset aarpinpgrolxoiamnastaentdo ofavierrvdaralufetswariethinthiteiaelxlycempetiaosnuroefdloant gfa-iterrvmalbuoen(dwshwicihthisaecqaurraylitnogcvoasltuaet oinfce4p7t,io50n0), manildliaorne (s2u0b1s9e:que4n4t,l4y3m9 meaisluliroend)awt haimchorhtiasveedacofasti,r uvsailnuge tohfee4f8fe,2c1ti6vemiinltleiornes(t2r0a1te9:me4t3ho,6d1.6Wmhiellrieonth).eyFaairreviadleunetiifsiebdasaesdaohnedlegveedl i1teomf tihneafadiersviganluaetehdiefarairrcvhayluuesihnegdgqeuoreteladtimonarskheipt,pfraicirevs.aTluheeaGdjruosutpm'esnbtosrarorewriencgosginnicseluddiencaecrctaoirndabnocnedswwithhipcholhicayve(sbeeeennodtees2i2gn"aCteadpiitnalhaenddgefinrealnactiioanl srihsikpsm, wanhaigcehmaerentc"a)r.rAiendyadt iff1e.r5ebnicleliobnethwigeehnerththeapnrothceeierdesunroeteoqfutirvaanlesancttrieodnecmopsttsioanndvatlhuee.aImnoaudndtidtiuoen,ownhseerttelebmoenndtsoarrereidsseumepdtiionn of currencies other than euros, the Group has entered into foreign currency swaps to fix the euro cash outflows on redemption. The impact of these swaps are not reflected in gross debt and would decrease the euro equivalent redemption value of the bonds by 1.3 billion. Commercial paper programmes We currently have US and euro commercial paper programmes of US$15 billion and 8 billion respectively which are available to be used to meet short-term liquidity requirements. At 31 March 2020 nil (2019: 873 million) was drawn under the euro commercial paper programme. The US commercial paper programme remained undrawn. The commercial paper facilities were supported by US$4.2 billion (3.8 billion) and 3.9 billion of syndicated committed bank facilities. No amounts had been drawn under these facilities. Short-term borrowings Bonds (1,912) (53) Commercial paper (873) Bank loans (1,228) (1,220) Lease liabilities (2,986) Other short-term borrowings1 (5,700) (2,124) (11,826) (4,270) Long-term borrowings Bonds (47,500) (44,439) Bank loans (1,500) (1,780) Lease liabilities (9,077) Bank borrowings secured against Indian assets (1,346) Other long-term borrowings2 (3,469) (2,466) (62,892) (48,685) Total borrowings (74,718) (52,955) 21. Borrowings 192 AnnuuaallRReeppoorrtto2n0F2o0rm 20-F 2020
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119955 VoVdaofdoanfeonGeroGurpouPplcPlc AnAnunanluRaelpRoerpt onrtF2o0rm2020-F 2020
creAdnitnluousasaelslRarReereepcpoogonrirstetod2. nT0hFis2ocu0srmtom20er-Fre2l0at2e0dNcrNedoiottrteisekssitstogoetntherhaelelyccsohoonrnt steorsmoliidnldiaudrtaateiotdneadnfidnfwiahnilneaCcnOiaVclIiDas-t1l9asitmtepaamctteseomnnoteusrnc(utcsstoo(mnecrtosihnandutneoinmdua)teerdi)alCiOmVpaIDct-o1n9 cTrheedimt laocsrsopercoovnisoimonicinigmapta3c1t oMf athrcehC2O0V20IDth-e1r9epraenmdaeimnsicairsisukncinerrtealiant,ioanndtoctohnitsinmuaetstetrofeovrotlhvee,yewairthenpdoitnegnt3ia1l Mdisarrucphti2o0n21to. CfinreadnictirailskmCarrkeedtist irnisckluidsitnhgetroisckutrhreant caiecso,uinntteerrpeastrtryatwesil,lbnoortromweientgitcsoosbtsliagnadtiothnes auvnadielarbailfiitnyaonfcidaelbatsfsientalnecaidnign.gHtoowaefivnearn, cthiaelGlorsosufpo'rstfhienaGnrcoiaulpr.iTskhemGanroaguepmisenetxpstorsaetedgtioescsreedekit troisrkedfruocme oitusroppoetreantitniagl aecxtpivoistuieres ainndreflraotmionittsofitnhaensecirnigskasc. tTivhietieGsr,otuhpe hGarsouapcocmonbsiindeedrsciatsshmaanxdimcausmh eeqxupiovsaulreenttoancrdesdhitorrtistkeramt 3in1vMesatmrcehnttos boef:21082.50 bimlli2o0n1, 9promvidEixnpgescitgendifcirceadnitt hloesasdrTohoemGorvoeurpshhaosrtfitnearmncliiaqluaisdsietytsrcelqaussiriefimedenatnsd. Amdedaistuiornedalalyt athmeoGrtrioseudpcmoastinatnadinfsauirnvdaraluwenthcroomugmhitotethdefraccoilmitipersehofens7i.v7ebiinlclioomn eeuthroateaqrueivsuablejnect.tAtostahte3e1xMpeacrtcehd 2c0re2d0italnodssafmteordheel drgeqinugir,esmubesnttasnotifaIllFyRaSll9t.hCe aGsrhoautpb'sanbkorarnodwiinnghsanardeahnedldceorntaainfioxtehderinintevreessttmbeansitss,amreitibgoatthincglaesxsipfoiesduraentdominetaesreusret draatet armisko.rtTisheedGcroosut panhdassunbojescigt ntoifitchaenset cimurpreanircmyeenxtproesquurieresmotehnetrs.thHaonwpeovseitri,otnhseiindeencotinfioemd iecxhpeedcgteidngcrreedlaittiloonssshiispsc.oTnshiedeGrerodutpo'sbecriemdmitartieskriauln. dInefrofrimnaanticoinngabaoctuitvietxiepsecistesdprceraeddiatclroossssesa fpoorrttrfaodlieoroefcehiivgahblylersaatendd icnosntittruatciot nasssteotsrecdauncbeecfoouunntderupnadrteyre"xoppoesruartiensgaancdtidveitriievsa"tiovne bpaalgaenc1e9s7.aFreinsaunbcsitnagntaiacltliyviatilel scoTlhlaeteGraroliuspedi.nTvehsetsGirnoUupK's, GopeerrmatainnganadctJivapitaiensesreesguoltvienrncmusetnotmseercucrrietdieitsroisnkt,hfeorbawshisicthhepyrogveinsieornatsefaorfiexxepdercatetedof return and are amongst the most creditworthy of investments available. Money market investments are made in accordance with established internal treasury policies which dictate that an investment's long-term credit rating is no lower than mid BBB. Additionally, the Group invests in AAA unsecured money market mutual funds where the investment is limited to 10% of eachCfuanshd.aTt hbeanGkraonudp ihnahsatnwdo1m,9a4n7ag2e,4d3i4nvReesptmurecnhtafsuenadgsrteheamt ehnotlsdafnixdebdainnkcodmepeoesuitrso2s,e2c0u2ri2t,i1es96wMithoanneyavmearrakgeetcfruenddist q9u,1a3li5ty9o,0f0A7AM. aInnargeespdeicntvoefstfmineanntcfiualndinss2tr,u4m51en6t,s40u5seGd obvyetrhnemGenrot/ugpo'vsetrrnemaseunrtybfaucnkcetidonse, cthueritaigesgr1e,g6a8t1e 3cr,0e1di1t LrioskngthteerGmroduebptmseacyuhriativeesw71it5h 8o2n2e Ccoaushntceorpllaartteyraisl lpilmeditgeeddb1y,1(i1)5re1f,e1r8e4ncReetsotrtihcteeldodnegb-ttesremcucrrietideist r1a,t8i4n2gs1a,7ss1i2gnOetdhefor rinthvaesttcmoeunnttserpa7r0t0y DbyerMivoaotidvye'Fs,inFaitncchiaRl aIntisntgrusmanedntSs t9a,n1d7a6rd3,&63P4oTorra'sd;e(riie)cethivaat bcloeusn4te,5rp9a1rt5y,0's7f7ivCeoynetararcctraesdsiettdseafnadulot tshwearpre(c`CeiDvaSb'l)essp4r,e5a1d8; a5n,1d5(5ii3i)9t,h3e73so4v1e,r3e3i7gn22cr.eCdaitpritaatlinagndoffitnhaant ccioaulnrtieskrpmaratny'asgepmrinecnitp(acloonptienruateidn)g1j9u6ri6sdVicotdioanff.oFnuertGhrerromoouruep,pcPoPlllaltcecral support agreements reduce the Group's exposure to counterparties who must post cash collateral when there is value due to the Group under outstanding derivative contracts that exceeds a contractually agreed threshold amount. When value is due to the counterparty the Group is required to post collateral on identical terms. Such cash collateral is adjusted daily as necessary.
OEvxepOercvtevdeicerrevdwitielowssAensnaurealmReeapsourrteodnuFsionrgmh2is0to-Fric2a0l2c0asShtrcaotelgleicctiRoenpdoarttaSftorartpegericioRdsepoofrattGleoavsGt 2eo4rmvnoenatrhnsnwcaheenrceeveFrinpFoasisnibnlceaainnadclgsrioaulspeOdthinOtoetrvhaireionrufsoicnursmtofmoaerrmsteigomanetniotsnbIanstehdeoenvepnrot douf catnoyrdceufsatuolmt,eorwtnypeers.hTipheofhitshteorciacsahl lcooslslartaetreasl awreoualddjursetveedrtwthoetrheemreascpreocetcivoenohmolidcefraacttotrhsa,tfpoorienxt.aDmeptlaeilcehdabnegleoswinisinthteerevsatluraeteosf othreucnaesmhpcloolylmateenratlr,awtehsi,cohriostrheeprocrotemdmweirthciinalsfhaocrtot-rtseramrebeoxrproewctiendgtso, hhealvdebaysitghneiGficroanutpiamt p3a1cMt wahrcehn:d2e0t2e0rmimnin2g01fu9turme eAxspdeicstceudscsereddiint lnoostser2at9es".CFoonrtitnragdeentrelicaebivilaitbielessatnhde leexgpaelcpterodccereeddiintglso"s,sthperoGvirsoiuopn hisascaclocvuelantaendteudsitnogparopvroidveissieocnumritaytriinx,fainvowuhricohf tthhee tprurosvteiesioonf tihnecrVeaosdeasfoansebGalraonucpesUaKgeP, eannsdiofonrSrcehceemiveabilnesrepsapiedctinofintshtealfmunenditsnganddefcicointtrianctthaessscehtsema we.eTighheteGdrolousps hraatseailssocapllceudlagteeddctaosrhefalnedctdtehbetpseerciuorditoievsearswchoilclhatethraelaamgaoiunnsttsdbeercivoamtievedufienfaonrcipaalyimnsetnrutmbyenthtseacsudstisocmloesre. dTrinadneorteec1e3iv"aObltehseranindvceosntmtreancttsa"s.sOetpseararetinwgriattcetnivoitfifeswCheunsteoamcehrbcurseidnietsrsisukniist dmeatneramgeindebsythtehreeGtorobuepn'sobruesaisnoensasbulenietsxpwehcitcahtioenacohfhreacvoevpeorylicaineds,epnrfoocrecdeumreenstaancdticvoitnytrhoalss rceelaastiendg. Mtoocvuesmtoemnetsr icnretdhiet arilslokwmaanncaegfeomr eexntp.eOctuetdstcarneddiintglotsrasedsedreucreinivgatbhleesyeaanrdwcoernetraasctfoalslsoewtss:arTeraredgeurleacrelyivraebvlieeswheedldtoatmfoainritvoarluaenythcrhoaunggheostihnercrceodmitprrieskhewnistihvecoinnccoemnteraTtiroandseorfeccereivdaitbrleisskhceoldnsaitdaermeodrttoisebde cliomstitCedongtirvaecnt tahsastettshe20G2r0oupm's2c0u1s9tommer20b2as0eims la2r0g1e9anmd u2n0r2e0latemd.2T0h1e91GromupNaoptepsl:ie1s Tthraedseimrepcleifiiveadbalepspwroearcehaallnhderledcaotrdasmloifretitismedeceoxspteactte3d1 cMreadricthlo2s0s1es8 fionratcracdoerdraencceeivwabitlhesIAanSd3c9o.n2trParcitmaasrsieltys. utilisation of the provision. Expected credit losses are presented as net impairment losses within operating profit and subsequent recoveries of amounts previously written off are credited against the same line item. 31 March 2018 as previously reported 1,249 Impact of adoption of IFRS 15 78 Impact of adoption of IFRS 9 56 185 23 1 April 129 134 1,347 1,434 40 23 Exchange movements (2) 1 (26) (19) Amounts charged to credit losses on financial assets 73 54 576 504 11 17 Other2 (63) (60) (531) (572) 31 March 137 129 1,366 1,347 51 40 Cash collateral 5,292 2,011 119977 VoVdaofdoanfeonGeroGurpouPplcPlc Annual Report 2020
mAaninnutauianaslslRubRsetaepntpioalocrratstoh2ann0dFc2aos0hrmeq2u0iv-Fale2n0t2s0wNhNicohoattte3e1ssMttoaorctthhh2e0e2c0coaomnonusnotseodlitdolicaadsthaetd1e3d,2fi8n4fimaninllaiocnni(a2c0li1a9s:tla1st3t,e6a3m7temeimllniotens)na(ntcdsou(nndcrtaowinnncuoteminmdiutt)eedd)faTchileitmieasjoofrity7,o7f4t9hemGillrioounp('2s0tr1a9d:er7e,c8e8i0vambillelsioanr)e, dpuriencfoipramllaytueruirtoy awnidthUinS9d0odllaayrsreavnodllvairnggeclyrecdoimt fparciisleitiaems ooufnt3s.r9ecbeililvioabnleanfdroUmSc$o4n.2submilelirosna(nd3b.8usbiinlleisosnc).uAstollmoefrtsh.eTehueroforlelovwolivnigngtacbrleedpitrefasecniltistiiensfmoramtuartieoinno2n02tr5adeexcreecpet ifvoarble8s0pmasiltlidoune¹wahnidchthmeiartuarsesoincia2t0e2d3eaxnpdecatleldocf rtehdeitUlSosdseosll:aTr rraedveolrveicnegivcarbedleist faatcailmitoiertsismedatcuorestinpa2s0t2d2ueex3c0epdat yfosroUr Sle$s7s5mmi3ll1ion60(d6a8ysmilmlio6n1)w18h0ichdamysatumre1in8020d2a1y.s+ThemG3r1ouMpamrcahna2g0e2s0lCiquurirdeintyt rimskToontallonmg-tTerrmadeborrercoewivinabglsebsyatmaaminotratiinseindgcaosvtapraiesdt dmuaetu3r0itdyapyrsoofirlelewssit3h1a6c0apdaoynsth6e1le1v8e0l doafydse1b8t 0mdaatuyrsi+ty3i1n Manayrcohne20c1al9enCduarrreynetaTr,otthaelremforemminmimimsingmrefminaGnrcoisnsgcrairsrky.iLngonagm-toeurmnt b3,o3rr4o0w4i4n8gs2m53at5u5r0e 1be,0tw41ee5n,6132anEdx3p9ecyteeadrcs.reTdhitelmosastuarliltoywparnocfeile(9o1f)t(h9e4a)n(t6ic4i)p(a2te1d6)fu(8tu8r2e)c(a1s,h34f7lo)wNseitnccalrurdyiinngg ianmteoruesntti3n,2re4l9at3io5n4 t1o89th3e3G4r1o5up9'4s,n2o85n-Ndeortiev:a1tivCeofnitnraancct iaaslsleiatsbrileiltaietes toonaamnouunndtisscnoout nyteetddbuaestiso wcuhsitcohm, tehres.reTfhoeres,edaimffeorusnftrsowmilbl obtehrtehcelacsasrirfyieidngasvatrlaudeearnedcefaivirabvlaelsueb,eifsoraes tfhoellyowbesc:oTmraeddeupea.yTarbaldees raencdeiovtahbelrefsinaatnfaciiralvlailaubeiltihtireosu3ghmotBhearnkcolmoapnrsehaenndsCivoeminmceormciealarpeapneort mmatBeroianldlsy pmastLdeuaes.eLliiaqbuiilditiiteysrOistkheLriqbuoirdroitwyiinsgrse2viTewoteadl bdoarirlyowoinnagtslTeaosttala1m2 mMoantuthritryolplirnogfilbea1sismandmstremssWteisthteidn oonnethyeeaasrs2u,m37p1ti1on,48th6at a2n,y15c5om6,m01e2rc1ia5l,9p4a1pe2r1o,9u5ts3taInndoinnge mtoattwuoreyseaanrds i7s1n4o4t ,r8e2is6sue1d5.8T5h,e6G98ro1u2p5 5,823 In two to three years 568 4,917 96 5,581 5,581 In three to four years 4,558 1,775 6,333 6,333 In four tofivfieveyeyaerasr.sA3l5so0 i7n,c8l7u8des3250,289,254m8illi8o,n54(280I1n9m: o2re,0t1h1anmfiilvlieony)eainrsrel3at7io,5n8t6oca3s3h6r3e7c,e9i2ve2du3n7d,e9r2c2o4ll,a0te0r3al6s1u,2p5p1ort a4g,8re4e0m7e0n,t0s s9h4o1w6n,0w6i6th8in6,11y6e0arE.fIfneccltuodfedsifsicnoaunncti/aflinliaanbciilnitgiersautensd(e1r3p0u)t(o1p6t,i7o5n9a)rra(n2g5e0m) e(1n7ts,1a3n9d) n(o1n2)-d(e1r7iv,1a5ti1v)e3f1inManacricalhli2a0b1il9it3ie,8s p7r3es4e4n,4ted92wit4hi,5n 9tr0ad5e2,an9d5o5th1e6,r0p5ay4a6b9le,0s.0293NWoteitsh:in1 Monaetuyreiatire1s,r3e4f8le3c,t6c1o7n3tr,1a7c2tu5a,l7c5a0sh13f,l8o8w7s1a5p,2p5li0ca2b9l,e13e7xcIenpot nine tthoetwevoeynteaorfsa7c4h6a4n,6g8e2o1f ,c9o9n8tr3o1l 6o7r,e7v4e2n6t7o7f,8de0f9auInlt,twupootno wthhriecehyleeanrdse2rs79h3a,v8e5t2h1e,5r2ig3h3t,,2b7u0t 8n,o9t2t4he8o,b9l2ig4aItniotnh,rteoerteoqfuoeusrt ypeaayrms e3n6t9w8,i2th4i2n13,032d8ay3s9.0T1h0i,s32a9lso1a0p,p3l2ie9sItno fuonudrrtaowfnivceoymemaristt1e8d1f2a,c8il4i5tie1s,.1I2t7sh1o6u6l4d,3b1e9no4te,3d1t9haItnammoaretetrhiaalnafdivveeryseeacrshan4g7e,9c4la7u4s,e44d3oe1s,1n8o5t a5p3p,5ly75wi5th3,t5h7e5e2x,c9e2p3ti7o1n,1o8f51831,m59i1lli1o1n,0o7f7de9b8t,7in76re1la5t,i3o1n7to11th4,e0m93anEdfafetoctriolyf dciosncvoeurntitb/flienabnocnidnsg(rwatheisch(1w9o5)ul(d21a,l7so73a)c(c1e,5le2r8a)t(e5c6o2n)v(e2r4s,i0o5n8o)f(6th)e(2£43,0.464b)il3li1onMparricnhci2p0a2l 0re2c,o7g2n8is4e9d,4i1n2e1q2u,i0ty631s0e,e51n5ot7e42,711"8B1o5r,r3o1w1in9g0s,0"2).9InGcrlousdsecsasrpreycintrgumamloicuenntc2e,4p4ay8a8b1le7s22w3i4th73m1a,t1u7r9ity5,p1r4o0fiElexp3e4ct4edmcilrleidoint (lo20ss19al:low31anmciell(i6o3n)) w(7i4th)(in55o)n(2e1y3e)a(r9, 612)2(71m,3i6l6li)onNe(2t 0c1a9rr:yin1g22ammoilulinotn2),3in85on7e43to16tw82o6y0e2a1r8s,3,717,940252m. Cilalipointa(l2a0n1d9f:in6an7cmiailllriiosnk)minantwagoetmoetnhrte(ecoynetainrsu,ed1)61698m8ilVlioVno(o2d0d1a9a:ffo1o,7nn51eemGilGlirorno)oiunutphprPeePltloccfour years, 166 million (2019: 12 million) in four to five years and 1,185 million (2019: 183 million) in more than
OhuvnedOrrevdvbeaiesrivswpoieiwnt SritsreatiengmicaRrkeeptoirnttSertreasttergaitcesRfeoproarltlGcuorvrGenecoirevsnienarwnhniccahenthcee GFirnoFuapinhnacdabinoarrcolswiainlsgOs athtO31etMrhiaerncrhfo2i0n2rm0 fthoearremwtiooaunldtiobne Tanheinmcraetausreityinpproroffiliet boefftohreeGtarxoubpy's 6fi9n5anmciilalliodner(i2v0a1ti9v:es3(9w9hmicihlliinocnl)uidnecliundteinregstmraartekstowampasr,kcertorsesv-caulurraetinocnysionfteirnetsetrerastterastweaapnsdaontdhefor rdeeigrinvaetxivchesanagned sthweappso)teunstiinagl iunntedriescstoounntceadschaasnhdflsohwosrt, itesrams fionlvleoswtms:e2n0ts2.0T2h0e1re9 wPaoyualdblbeenmoRmeacteeirviaalbilme pmactToontaelqumityP.aFyoarbeliegnmexRchecaenigveabmleanamgeTmoetnalt Ams VPaoydaabfolense'asndprriemcaeriyvalbislteisngaries sotnattehdesLeopnardaotnelyStionctkhEe xtacbhlaenagbeoivtse sahsacraesphrisceettliesmqueontteids ionnsategrrloinsgs.bSaisnics.eMthaerksteetrrliinskg Isnhtaerreesptrricaetermeparnesaegnetms ethnet UvanldueerotfheitsGfruotuupre'sminutletir-ecsutrrraetnecmyacnaasghefmloewnst,pporliinccyi,pianltleyreinsteruartoe,sSoonumthoAneftraicraynarsasentds aanndd sliteabrliilnitgie, sthdeeGnormouinpamteadinintaienusroths,eUcuSrrdeonlclayrsoafnddebsttearnlidnginatereremstacihnatarigneesdinonpraofploorattiionngtroatietsbeaxspisecextecdepfuttfuorrepperriinocdips aulpctaoshsifxloyweasrasnwdhhearseainpteorleicsyt rtaotehefidxginegexhtaesrntoalbfeoruenidgneretaxkcehnaningeacrcisokrsdaonncterawnistahcttiroenassudreynpoomliicnya.teTdhienpootlhiceyr caulsroreanlcloiewssabeourvoesa, UceSrtdaoinlladresmanindismteisrllienvgetlo. Abet 3m1oMveadrctoh a20fi2x0ed14r%ateobfanseist difebinttweraesstdreanteosmainreatsetdatiinsticcuarlrlyenlcoiwes. oWthheerrethaasnseetusraon(d9%liabstielirtliiensga, r3e%deSnooumthinAatferidcainn orathnedr acnudrr2en%cioetshienrt)e.rTehstisraatlelos wmsasytearllsiongb,eSfoixuethd.AInfraicdadnitriaonnd, faixnidngotihseurnddeebrttatokebnefsoerrvloicnegderinpeprrioopdosrwtiohnentoinetxepreesctterdatfeustuarree sctaasthistfilcoawllsyalnodwt.hAerte3f1orMe parrochvi2d0es20aapnadrtiaaflteerchonedogminicg,hseudbgsetaangtaiianllsyt ianlcl oomf oeusrtaotuetmsteanntdtirnagnslilaabtiiolintieexspaoresuhreel,dasoninatefriexsetdcionsttesrwesitllrabtee dbeansoismininaactecdoridnafnocreeiwgnithcutrrereansucireysp. oUlincdye.rFtohreeGarcohuopn'se foreign exchange management policy, foreign exchange transaction exposure in Group companies is generally maintained at the lower of 5 million per currencyinpceormmeoannthdoerxp1e5nsme.ilTlihoenppreinrcciuprarleonpcyeroavtienrgasesgixmmenotntnhotpgeerinoedr.aTtinhge GinrcooumpersecinogenuirsoesisftohreeiVgnodeaxccohmanbguesminoevsse,mwehnotsseinfuenqcutiitoynfaolrctuhreretnracnysliastSioonutohf AneftriicnavnesRtmanedn.tFhiendagnicnigngininstcroummeenatnsdanedxpbeanlsaencinecslturdeaetsefdoraesiginnvceustrmreennctys ginaifnosr/eliogsnseospienrcautirorends.oHnotwheevtrearn,stlhaetrioenisonfobanleatnicmepsahceteot niteemqusitnyoftohreeldxcinhafnugnectriaotneaml couvrermenecnyt.sTohnenseetairnevpersitnmceipnat lhlyedognincgeritnasitnrubmorernotws iansgtsh,edreerwivoautilvdesb,eaanndooftfhseert iinnvtehsetmcuernrtesndcyentoramnisnlaatteiodninofsttherelifnogreaingdn UopSerdaotliolanr.. AWti3th1inMoanrechye2a0r2(02t0h,e51G9r)o2u1p,2h3e9ld72fi0n(a2n3c,i4a6l 9li)a2b3il,6it7ie2s2i0n3aInneotnienvtoesttwmoenyteahresd(g4e,2a1g7a)i4ns,5t8th2e3G65ro(u8p,3's56S)o8u,7th52A3fr9i6caInnrtawnod tooptehrraetieoynes.arSse(n3s,i6ti8v0i)ty4,t1o4f3o4re6i3gn(3e,x7c7h2a)n4g,3e8m6 o6v1e4mInenthtsreoenttohefohuerdygeinargsl(i3a,b7i3li3ti)e4s,,4a2n9a6ly9s6ed(3a,g9a5i9n)s4t,6a2s4tre6n6g5thInenfionugr otof tfhiveeSyoeuatrhsA(2f,r5ic6a2n)3r,a1n0d25b4y011(3%,71(200)419,2:895%5)7w5 oInulmd oreresutlhtainn faivdeecyreeaarsse(3in8,e1q2u6i)ty43o,f9323152,8m07ill(i3o4n,9(28071)93:9,3137544m,3i4ll7io(n7)2w,8h3i7c)h8w1,o4u2l8d8b,5e9f1u(ll7y8o,2f5fs3e)t8b5y,0f5o3r6ei,8g0n0exEcfhfeacntgoefmdiosvceomunetn/ftisnoannctihneghreadtegsed(4n,1e8t 2a)ss(e5t,s6.1I0n)aFdidniatinocnia, lcdasehrivflaotwivehendegterescoefivparibnlceip4a,4ll0y9U1S,1d9o0ll1a1r9b9o9r9roVwoiVngdsawofoduoladnrfeesounlGt ienroaGnuinrpcoreuaPspelcinPlecqAuintyAonfun7an1l3uRmailellipoRn o(2er0p1t9o:nr6tF521om0rilmli2o0n2)0a-gFa2in0s2t0a strengthening of US dollar by 5% (2019: 5%). The Group profit and loss account is exposed to foreign exchange risk within both operating profit and financing
AnnuuaallRReeppoorrtto2n0F2o0rm 20-F 2020 NNootteessttootthheeccoonnsosolidliadtaetdedfinfiannacniacliastlastteamteemntesn(tcso(nctoinnuteindu)ed) The following table details the Group's sensitivity to foreign exchange risk. The percentage movement applied to the currency is based on the average movements in the previous three annual reporting periods. 2020 m 2019 m Note: 1 Operating profit before impairment losses and other income and expense. Equity risk There is no material equity risk relating to the Group's equity investments which are detailed in note 13 "Other investments". The Group has hedged its exposure under the subordinated mandatory convertible bonds to any future movements in its share price by an option strategy designed to hedge the economic impact of share price movements during the term of the bonds. As at 31 March 2020 the Group's sensitivity to a movement of 23% (2019: 8%) in its share price would result in an increase or decrease in profit before tax of 767 million (2019: 319 million). Risk management strategy of hedge relationships The risk strategies of the designated cash flow, fair value, and net investment hedges reflect the above market risk strategies. The objective of the cash flow hedges is principally to convert foreign currency denominated fixed rate borrowings in US instrudmolelanrt,. pFoournhdedsgteerslionfg,foAreuisgtrnalciuarnrednocllyard,eSnwomisisnFatreadncb,oHrroonwginKgosnagnddoilnlavre,sJtmapeanntes,sethyeeGn,rNouoprwuseegsiaanckormonbainaantidoneuorfocarnodssU-cSurdroelnlcayr falnodatfinorgerigatneebxocrhroanwgiengsswianptos teourhoedfigxeeditsraetxepboosurrroewtoinfgosreaingdnheexdcgheanthgeefroisrkeiganndexincthearensgterastpeortirsakteanadndenintetersreisnttorahteedrigsek.reDlaetriiovnastihviepsfiwnahnecreiatlhiensctrriutimcaelnttesrdmessiogfntahteedheindgciansgh ifnlostwruhmeedngtems aartechcrwoistsh-cthureretenrcmysinotfetrheesthreadtegesdwiatpesma.nTdhfeorreefiogrne ethxechGarnoguepsewxappesc.tsTahehsigwhalyp emffaetucrtiivtye dhaetdegsianngdrelilqatuiiodnistyhipprowfiitlhesthoef tshweanpocmoinntaral cctassahnfdlotwhes vmaalutcehotfhtohseecoofrrthesepuonnddeirnlgyihnegdbgoerdroitweminsgsto. Tchhaenogbejescytsivteemoaftitchaellnyetinintvheesotmppeonstihteeddgireesctiisotnoihnerdegsepofonrseeigtonmexocvheamnegnetsrisink tihnefournediegrnlyoipnegraetxiochnasn. gDeerriavteastivanedfiinnatnerceiastl rinatsetrsu. mTheentGs droeuspigtnhaetreedfoinrenpeet rifnovremsstmaeqnutahleitdagtievseaarsesecrsosmsse-cnutrorfenecffyecintitveerensetsrsa. tIef scwhaanpgseasnidnfcoirreciugmnsetxanchceansgaeffeswctatphse. Ttehrme hseodfgtihneghiendstgreudmietenmts saurechrotlhleatdtohne canritoicnaglotienrgmbsansoislaosngdeertemrmaticnhedwbityhtthheencarittuircealotfetrhmesboufsithneeshse. dTghiengobinjesctrtiuvmeeonft,ththeefaGirrovuapluuesheesdthgeeshiysptoothheetdicgaeladperriovpaotrivtieonmoefthtohde Gtoroasuspe'sssfeixffeedctriavteeneeusrso. Hdeendogme iinneaftefedcbtiovrernoewssinmg atoy aocecuurrodfuloeattoin:ga)raTtehebofarirrovwailnuge. oTfhteheswhaepdgminagtuirnistytrudmateesntmoantcthhethhoesdegoefrethlaetiuonndsehrilpyidnegsibgonrartoiwonindgataenidf tthhee nfaoimr vinaalul ecaisshnofltonwils; abr)eCchoannvgeertseidnttohequcaorntetrralyctpuaayl mteermntss.oHr etidmgiengeffoefctthiveepnaeysms iesndtsetoenrmthienehdedagt ethdeitienmce;patniodnco)fAthcehhaendggeeinretlhaetiocrnesdhiitpriasnkdotfhrthoeugGhropuerpioodritchpercoosupnectetrivpearetfyfewcittihvethneeshseadsgsiensgsminesntrtusmtoeennt.suTrheethheatdgaen reactoionofmoricearcehladtieosnisghniaptieoxniswtsilbl ebteweesetnabtlhieshheeddbgyedcoitmempaarnindghtehdegqinugantity
of the hedging instrument and the quantity of the hedged item to determine their relative weighting; for all of the Group's existing hedge relationships the hedge ratio has been determined as 1:1. The fair values of the derivative financial instruments are calculated by discounting the future cash flows to net present values using appropriate market rates and foreign currency rates prevailing at 31 March. The valuation basis is level 2. This classification comprises items where fair value is determined from inputs other than quoted prices that are observable for the asset and liability, either directly or indirectly. Derivative financial assets and liabilities are included within trade and other receivables and trade and other payables in the statement of financial position. ZAR 11% change (2019: 9%) - Increase in operating profit1 126 147 USD 9% change (2019: 10%) - Decrease in profit before taxation (64) (81) GBP 2% change (2019: 4%) - Increase in profit before taxation 63 183 22. Capital and financial risk management (continued) 200 Vodaffone GrroouuppPPllcc
1O3v2e0O2r8vv9e.i0e8rv1w.4i8ewJaSpatrnaetesgeiyceRnebpoonrtdsSt7r8at1egicR(3ep)o5rt2G2o0v3G7 e1o2r8v.n5e3a2rn.4n7caNeonrcwe eFginiaFnakinrnocnaainbaocnldsisa2ls4O1 t2hO14et(r4h)ie5nrfo1i2nr0m26fo9a.r1m5ti1o.a1n2tiCoansThhfleofwolhloewdginegs -tafbolreeirgenprceuserrnetnsctyheancdarirnytienrgesvtarlauteesraisnkd2nCormoisnsa-cluarmreonucnytsswofapdser-ivUaStivdeosllianr aboconndstin9u0e5d3h3edg1e(r4e0l)at5io1n1s2hi2p0a2s3a1t .3117 M1.0ar5cCh a2s0h20fl.oOwthheerdgcoesm-pirnetheernessitvreatiencriosmk2e IWnteeirgehstterdataevsewraagpes A- Et 3u1roMloaarncsh6260820 O17pe1n5in1g(b5a)l1a1nc2e0(2G1ain1)./2G1aFian/ir(Lvoaslus)eChleodsginesg-bianltaenrceest3r1atMe rairsckh32I0n2te0r1estmratCeasrwryaipnsg-vEaluureobAosnsdetss18m6 1C1a7rryingvalu2e0L2i8abilitNieestimnvLesotsms ernectyhceldegdeto- ffoinreaingcninegxcchoasntsgemrisEku4roCrinotsesr-ecsutrrreatnec%y aNndomfoirneailganmeoxuchnatsngems1wAappsri-lSdoeufethrreAdfrtiocaMnartaunrdityinyveeasrtm20en1t91,m95O2 C12I0m3 9F1X8 r(a1t0e8O) th8e1r 0co2m02p0re1h4e.n9s2iv0e.0in8c2o6m,7e8W7 1ei,6gh3t9ed28a1ve1r,a0g9e7A(1t,36163M) a1r,c2h792071193 ONpoetensi:n1g bFaaliarnvcaelu1eAmporvile2m0e1n8t (dGefaeirnr)e/dLionstso doethfeerrrecdomtopOreCheInGsaivine/i(nLcoosms)erienccylculdeedsto1f,i2n7a1ncminigllicoonstlsosCsl(o2s0in1g9:ba7la5n4cem3il1lioMnalrocshs)20an1d91nCialr(r2y0in1g9:va1lume iAllsiosentsgaCina)rroyfinfgorveaiglunecLuirarebnilcityiebsaEsiusroouitnstiedreestht eractaesNhofmloiwnaalnadmnoeutnintsvMesatmtuernittyhyeedagreFrXelaratitoenshmipsmresmpectmivelmy.Fmorcmas%h fCloawshhfeldogwesh,etdhgeems o- vfoemreeignnt icnurthreenhcyyproisthke2tiCcraol sdse-rciuvrarteinvcey(haenddgfeodreitiegmn )exmcihraronrgsethswataopfstUheShdeodlglainrgboinnsdtsru1m8,e4n4t4. H1e,2d7g3e 8in3e1ff3e2ct(i1v,e4n1e0s)s1o,f0t9h9e(s1w7a9p)s2d0e3s2ig1n.1at8ed2.i5n6aAcuassthrafllioawn dhoeldlgarebdounridnsg7t3h6e1p4er2io(d4)w(a2s1) n8il(1(270) 1290:24n1il.)5.6T0h.e92caSrrwyiisnsgfrvaanluceboofntdhse6b2o4nd4in3c1lu6d(e2s5)8351m22ill2io0n26lo1s.s0(82011.296: P8o6unmdislltieornlinlogsbs)oonfdscu2m,7u2l0at7iv6e1f1a2ir8va(3lu9e) a6d9ju3s8tm20e4n2t f0o.r8t5h1e.h9e5dHgeodnginKteorensgt draotlelarrisbko.nNdest2i3n3ef3fe7ct1iv5e(n2e3s)s2o1n the fair value hedges, 8 million gain (2019: 2 million loss) is recognised in the income statement. The carrying value of bonds includes an additional 889 million loss (2019: 749 million loss) in relation to fair value of bonds previously designated in fair value hedge relationships. Hedge ineffectiveness of swaps designated in a net investment hedge during the period was nil (2019: nil). 2 3 4 Cash flow hedges - foreign currency risk2 Cross-currency and foreign exchange swaps US dollar bonds 20,383 5,371 (179) (4,233)490(3,922)20351.18 2.67 Australian dollaribnvonesdtsm7e3n6t26,153(1873)1747(8861)0((12769))206234112.5,06200.91270S.w17is2s9fr,3a7nc25b,o9n14ds32672741317(422,2(9227))430382(832,107216)12.0280011.216VPooVudndaosftdeorlainnfgeobnoGndesro3G,1u8r0p2o9u1P8p6lc3P8l7c9A(2n3A) n9u4n2a0n4l3u0R.8a5el2p.R0o4eHrpotnognrKtFo2nog0dromll2a0r2b0o-Fnd2s0223032213(25) 8(4) 20289.08 1.48 Japanese yen bonds 7812462037 128.532.47 Norwegian krona bonds 24146134(38) (3)20269.15 1.12 Cash flow hedges - foreign currency and interest rate risk2 Cross currency swaps - US dollar bonds 9054612(14) 201820231.17 1.05 Cash flow hedges - interest rate risk2 Interest rate swaps - Euro loans 6681311(4) 720211.21 Fair value hedges - interest rate risk3 Interest rate swaps - Eurobonds 1861312028 Net investment hedge - foreign exchange risk4 Cross-currency and foreign exchange swaps - South African rand
baAlnanncueuasahlelRetRReiegphptooofrsrtettoo2fnf0wFi2toh0dremri2va0t-iFve20co20unNteNrpoaortttieeessCstatoshotcthohlleaetcecraoloAnnt s3o1soMliadrlciahd2ta0e1t9deGdfroinsfsiaanmnoaucnnitaAclmiaostulnasttsteetamoftfeNemetnatemsno(utncst o(mnctominnmuteimndum)ed)mFDaierrvivaalutieveanfdincaanrcriyailnagsvseatlsu3e,i6n3f4orm3a,t6io3n4 T(1h,e54c9a)rr(y2i,n0g11v)al7u4e DanedrivvaatliuvaetifoinnabnacsiiaslolifatbhielitGiersou(2p,'4s4f4in)an(c2ia,4l4a4ss)e1t,s5a4r9e 1se,0t8o1ut1i8n6nTootetasl113,1"9O0the1r,i1n9v0estm(9e3n0t)s"2,6104F"iTnraandceiaalnadssoetthsearnrdecleiaivbailbitlieess"aarnedo1ff9se"tCaansdhtahnedacmaosuhnetqrueipvoarlteendtsi"n. tFhoercaollnsfionlaidnactieadl absasleatnscheesldheaettawmhoerntistheedrecoisstathleegcaalrlyryeinngfovrcaeluaebsleapripgrhotxtiomoaftfesefat itrhvearleuceo.gTnhiseecdaarrmyoinugntvsaaluned atnhedrveailsuaantioinntebnatsiiosnotfothseettGleroounpa'snfeint abnacsiisalolriarbeialliitsieesthaereasseset toauntdinsentotlteesth1e5l"iaTbrialditey asnimduoltthaenrepouayslayb.leDse"raivnadti2v1e f"iBnaonrrcoiawliinngsst"ru. mThenetcsatrhraytindgovnaoltumeseaept pthroexcirmitaetreiafafoirrvoaflfuseetfcoorutlhdebGersoeutptl'esdtrnaedteinpacyeartbalienscainrcduomthsetarnpcaeysaubnledsercaISteDgAori(e`sI.nFteorrnaottihoenraflinSawnacpiaslalniadbDilietrieivsaativcoesmApasrsioscoinatoiofnfa')iravgarelueemaenndtscwarhreyrinegeavcahlupeairstydihsacslothseedoipntinoonteto2s1et"tBleoarrmoowuinntgsso".nNaenteftinbaanscisiailninthsetreuvmeennttosfTdheefataubltlefrboemlotwhesohtohwers.tCheolGlartoeruapl'ms faiynabnecioaflfsaestseatnsdannedt lsiaetbtilleidtieasgtahinatstadreersiuvbatjievcet tfoinoafnfcsieatliinnsthtreumbaelnantsceinsthheeetevaenndttohfe dimefpauacltt boyf eenitfhoerrcepaabrltey.mTahsetearfnoreettminegntoironsiemdiclaorllaagtereraelmbeanlatsn.cReselaarteedreacmoroduendtsinno"totsheetrosfhf oinrt-thteermbailnanvceestmsheenettsA" moro"usnhtosrpt-rteesremntdeedbitn" breaslapneccetivsehleye.tChmanRgiegshtinoafssseettosfafnwdilthiabdielriitiveastiavreiscinogunftreormpafritnieasncCiansghaccotilvlaittieersalCAasth31floMwasrcNho2n0-c2a0shGrcohsasnagmesoNunett pmrocAemedosu/ n(rtespeatyomffenmts)Noeftbaomrroouwnitngms mmInmterResetlaptaeiddammoNunettsmnoovt esemteonftf iinn sthhoerbt-atlearnmceboshrreoewt AinmgsounmtsNpertesFeinntaendciinng costs2 m 1 April 2019 m Other3 m 31 March 2020 m Cash flows Non-cash changes Net proceeds/ (repayments) of borrowings Interest paid Net movement in short-term borrowings Net Financing costs2 1 April 2018 Other3 31 March 2019 m m m m m m m Assets and liabilities arising from finatnhceinregcoacgtnivitiitoienso1f4l3e,a0s1e3b8o,r5ro0w1 i(n1g,2s9, p7)ri(n5c4ip1a)l1ly,9o5n8 t1ra,9n7s5iti5o3n,6to09IFNRoSt1es6: o1nT1hAispbrailla2n0c2e0c;om8p,3r0is2esmgilrloiossnbfoorrrobowrirnogwsinofgs7a4nd,71de8rmivialtliivoens(r2e0c1o9g:nis5e2d,9d5u5rimngill2i0o2n0), onnetthdeeraivcqatuiivseitifoinnaonfciEaul raospseetasnoLf ib4e,r4ty09Gmloibllaiol nas(s2e0ts1i9n: Ju1l,y192001m9i;llio1n,3)8a9ndmfiilnliaonnc(i2al0l1i9ab: ili1t,i9e1s9unmdiellriopnu)t fooprtiloonnga-rtrearnmgesmpeecnttrsupmrelvicieonucselypianycalubdleesd; awnidthriencblaosrsriofwiciantgiosnosfbe1tw,8e5e0nmfiinllainocnia(2l 0li1a9b:ilit1ie,8s4a4ndmoiltlhioenr)i.nTvhesistmbeanlatsn.c2e 3exAclsusdetessanndillioafboiltihtieerspaaryisaibnlgesfrionmrefliantaionncitnogthaectsivhiatireesb1u5y3b,a6c0k9p(r6o,0g9ra5m) (m2e,2(8240)129,:58862(539m4)il2li4o,n9)3, 8w7i2th,1c6a0shDoeruitvflaotiwvse ofifna8n2ci1almaislslieotns 9d,u1r7in6gt9h,e17y6ea(r3,(525061)9(:5,249725)3m2i8llDioenr)i.vTahtiivseafminoaunnctiainl clilaubdielistiienste(r4e,s7t6, 7fa)ir(4v,a7l6u7e)a3n,5d5f6o1r,e1i1gn5 (e9x6c)haTnogtaelit4e,m40s9w4h,i4c0h9im(4p,a1c7t7th)2e3i2nc2o2m. Ceasptaittaelmaenndt foirnaonthceiarlcroismkpmreahneangseivmeeinntc(ocmonet.inFuineadn)c2in0g22coVsotsdoafffon3,e5G49rrmooiluluiopnpP(2P0ll1c9c: 2,088 million) as disclosed in note 5 "Investment income and financing costs" primarily exclude gains on cash flow hedges of 3,703 million (2019: 276 million) and additionally include foreign exchange and other movements on items such as cash and short-term investments. Includes 15,589 million for
Overview Ov Strategic Report erview Strategic Report Governance Governance Financials Financials Other information Other information This note details the total amounts earned by the Company's Directors and members of the Executive Committee. Directors Aggregate emoluments of the Directors of the Company were as follows: 2020 m 2019 m 2018 m Notes: 1 Excludes gains from long-term incentive plans. 2 Includes the value of the cash allowance taken by some individuals in lieu of pension contributions. No Directors serving during the year exercised share options in the year ended 31 March 2020 (2019: None; 2018: One Director, gain 0.1 million). Key management compensation Aggregate compensation for key management, being the Directors and members of the Executive Committee, was as follows: 2020 m 2019 m 2018 m Short-term employee benefits 27 2327 Share-based payments 30 3530 57 5857 Salaries and fees 4 44 Incentive schemes1 2 23 Other benefits2 1 1 7 68 23. Directors and key management compensation 220033 Vodafone Group Plc Vodafone Group Plc Annual Report 2020 Annual Report on Form 20-F 2020
VAondnaufaol nRe pGorortu2p0P2l0c Annual Report on Form 20-F 2020 Notessttootthheeccoonnsosolidliadtaetdedfinfiannacniacliastlastteamteemntesn(tcso(nctoinnuteindu)ed) This note shows the average number of people employed by the Group during the year, in which areas of our business our employees work and where they are based. It also shows total employment costs. 2020 Employees 2019 Employees 2018 Em52p,l5o2y8e5e4s,T01h6e c9o5s,2t 1in9c9u8rr,e9d96in1r0e6s,p1e3c5t Bofythseegsemeemntp:lGoyeermesa(niync1l5u,d1i9n9g 1D3i,r4e1c4to1r3s,)7w18asI:ta2l0y250,98m0 260,513966m,602601S8paimn 4T,h3e16G5ro,1u4p0h5a,0s1d5iaUloKgu1e0w,2i9t5h r1e1c,5og2n51is2e,d37la9bOouthreurnEiounrsopifer1e4q,u6i4re6d1. 2In,4p1a3r1ti1c,u7l6a0r,Ethuerorepear5e0r,e4g3u6la4r9m,0e2e8ti4n9g,s4w78ithIntdhiea V(DoidsacfoonntienEueudrooppeearnatEiomnps)loye4e,5C54o1n1su,0lt8a6tivVeoCdaocuonmcil7(,t7h7e3`7E,E6C95C7',)5.2T4hOe tdheelregMataerskeotfst1h0is,5b1o5dy12a,r8e3l7o1c3a,l6ly06elRecetsetdoVf tohdeaWfonoerldem18pl,2o8y8ee2r5e,p0r8e6se3n2t,a2t1iv6eCs,ommomstoonfFwuhnoctmioanrse2u6n,4io9n5a2n4d,8w8o2r2k4s,4c4o1unTcoiltaml 9em5,2be1r9s.9T8,h9e9r6e h1a0s6,b1e3e5n2n4o. mEmatpelroiayledeissr2u0p4tiVonodtoafoopneeraGtiroonuspaPslac result of union activity during the financial year. Wages and salaries 4,571 4,3334,179 Social security costs 531 579547 Other pension costs (note 25) 226 223222 Share-based payments (note 26) 134 132128 5,462 5,2675,076 India (Discontinued operations) 84219 Total 5,462 5,3515,295 By activity: Operations 14,616 15,87217,094 Selling and distribution 28,133 30,59635,025 Customer care and administration 52,470
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million) surplus for the CWW Section. Defined contribution plans 180 166178 Defined benefit plans 46 5744 Total amount charged to income statement (note 24) 226 223222 25. Post employment benefits 220055 Vodafone Group Plc Vodafone Group Plc Annual Report 2020
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OveOrvveiervwiew Strategic Report Strategic Report GovGeorvnearnncaence FinFainncainatcolsbiealnsefOitthaOccerturahli,eninrftohienrfmorfmoaormf ptioosasnibtiloenreFdauirctviaolnuseinofftuhteuraessceotnstrainbdutpiorensse.nAt nvaallyuseisofofthneetlisaubripliltuiess/(odfeftihceitp):laTnostaTlhfeaiarmvoaluunet oinfcplluadnedasisnettshe6,s9t0a6tem6,9en7t4o6f,6fi9n7an6c,7ia0l9p6o,s2it2io9nParerisseinntgvfarloume othfefuGnrdoeudp'pslaonblliigabatiiloitniessin(6r,e6s4p1e)c(t7o,3f 1it5s)D(7e,0fi2n8e)d(7b,e2n2e2f)i(t6p,4la8n7s)iNs east sfuorllpolwuss/:(dAesfsiceitts)LfoiarbfiulintdieesdNpelatndsef2i6c5it (3m41)m(331m)(15A13p)r(i2l 5280)1P8r6es,6e9n7t v(7a,l1u0e7o)f(u4n1f0u)nSdeerdvipcleancolisatbil(it4i7es) ((4117)3)In(t1e1r6es)t(i7n9c)o(m81e/)((c8o3s)t)N1e6t7su(1rp7l7u)s(/(1d0e)fRiceitt)u1rn52on(4p5l7an)(a4s1s0e)t(s5e9x4c)l(u3d4i1n)gNinettesruersptliunsc/o(dmeefic2i6t)9is a2n6a9lyAscetduaarsi:aAl gssaeintss1/(5lo9s0se9s4)1a1ri0s5in7g22f4roLmiacbhialintigeess(i4n3d8e)m(5o5g1r)ap(5h2ic0)as(6su5m1)p(t5io6n5s)Se5rv5icAecctuoasrtial(3g7a)in(s3/7(l)oIsnsetesr)easrtiisnincogmfreo/m(cocshta)n1g5e4s(1in63fi)n(a9n)cRiaeltausrnsuomnpptiloannsass(e2ts53e)x(c2lu5d3i)nAg cintutearreiaslt ginacinosm/(elo1s0se8s)1a0r8isAincgtufraorimalegxapinesrieanricseinagdfjruosmtmcehnatsnge1s2in12deEmmopglroaypehriccaasshsucmonpttriiobnustio2n5s222752 A27ctMuaermiabl egraicnassharcisoinntgribfruotmioncsha9n(g9e)sinBfeinneafnictsiaplaaisdsu(2m8p0t)io2n8s038E3x3c8h3anAgceturaatreiaml loovsesmeseanrtiss8in7g(f8r7o)meOxtpheerriemncoeveamdjeunsttsm(e2n)ts(48()1(0530))(31103M) aErmchpl2o0y1e9r 6ca,9s7h4co(7n,t4r3ib1u)ti(o4n5s74) 2An42anMaleymsibseorfctahsehnceotnsturribpluutsio/(ndse1fi0c(i1t)0i)sprBoevnidefeidtsbpealiodw(2fo3r7)th2e3G7roEuxpcahsanagwehroatlee.m2o0v20ememnt2s0(11943)m152601183 Omthe2r01m7ovmem2e0n1ts6(2m)(3N8o)t(e4:01) P3e1nMsioanrcahs2se0t2s0ar6e,9d0e6e(m6,e7d5t4o)1b5e2re2c2o0v0e7r7abVleoVanddaothfdeoreanafreeonnoGaedrojuGsutmrpeonutsPipnlcrPelscpeAcnt AofnmuniannimluuRmaeflupnRdoinegrprteoqnuritrFe2moe0nrtms 2as02e0co-Fno2m02ic0benefits are available to the Group either in the form of future refunds or, for plans still open
(Ae.ng.nupruiavaaltleReRqeueiptyp)oaorrertitonc2lnu0dFe2doa0trvmal2u0e-sFp2ro0v20idNedNboyotttheeesfustntodomttahnhaegececr oinonancscoosrodlaindclieadwtaitehtdreedlefvinafnitangnuaidcanniaccel.iaOstthlaesrttseiagmnitfeiceamnnttaesssne(ttscsaor(envcatoluinendubtaeisnedduo)nedo)bAsenrvaanballeysiinspouftsnseutcahssaestsy/(iedledficcuitr)viess.pTrohveidVeoddbaefloonwe UfoKr tphleaVn oandnaufoitnyepUoKlicpielasnf,uwllyhimchaticshatfhuenpdeendspiolanno. bAlisgpaatirotnosfothfethmoseergpeernosfiotnheerVs iondsaufroendeaUndKthplearnefaonred athreesCeat belqeuaanldtoWthiereplersesseWntovrladlwueidoef RtheetirreelmateendtoPbllainga(t`iCoWnsW. InRvPe's)tmpleannt ofunn6dsJuonfe2503134mtihlelioanssaetts3a1nMd lairacbhil2it0ie2s0oifncthluedCeWinWvesStmecetniotsn ianredisveegrrseigfiaetdedalftreormnattihveeVboetdaaffuonnedsSheecltdioninatnhde Vheondcaefoanree rSeepcotriotendosfepthaeraVteoldyabfoelnoewU. CKWplWan.STechteioanctVuaoldraeftounren Soencptiloann 2a0ss2e0tsomve2r0t1h9e ymear20to1831mMa2r0c1h720m202w01a6s amga2in02o0f 2m6220m1i9lliomn 2(2001189: m423061m7illmion2)0.1S6ensmitiFvaitiyr vaanlauleysoifspMlaenasaussreemtse2n0t2o0f thme 2G0r1o9up'ms dNeofitnee:d1bDeenreivfiattrievteisreimncelnutdoebcloigllaattieornalishseeldnsiintitvheetofocrmhanogfecsasinh.cAerstsaeitnskaerey vaassluuemdputisoinngs.`Tlehveesle2n'siintipvuittys aunnadleyrsiIsFbReSlo1w3 s"hFoawirsVhaolwueaMreeaassounreambleynpt"ospsriibnlceipinlecsreaansde colradsseicfireedasaesiunnaqpuaortteidcualcacroarsdsiunmglpyt.ioTnhewfoauirldv,ailnueisoolfaptiloann,arsesseutlst, iwnhainchinhcarveaesbeeoerndmeceraesausreedininthaecpcroersdeanntcveawluiethoIfFtRheSd1e3fi"nFeadirbeVnaelfuiet oMbleiagsautiroenmaesnta"t, 3a1reManaarclyhs2ed02b0y. Rasasteet ocfatiengfloartyioanbRovaeteaonfdianrceresausbediinvisdaeldarbieysaDssiesctsouthnattrhaateveLiafequeoxtpeedctmanacrkyeDt percirceeasine bany 0ac.5ti%veImncarrekaesteabnyd0th.5o%seDtheactredaosenobty, s0u.c5h%asInicnrveeasstembeynt0f.u5%ndsD. eWcrheearseeabvyai0la.5b%le,Itnhcerefaasire vbaylu0e.5s %areInqcuroetaesde pbryic1esye(ea.rgD. leicstreedaseeqbuyity1, ysoeavreremignmdebmt anmd comrpomratembonmds()D. eUcnreliassteed)/iinncvreesatsmeeinntsprwesitehnotuotfqdueoftiendedprbicenesefiint oanblaigcatitvioenm1a(r4k9e2t) 563 (3) 4 717 (617) 205 (206) 1 The sensitivity analysis may not be representative of an actual change in the defined benefit obligation as it is unlikely that changes in assumptions would occur in isolation of one another. In presenting this sensitivity analysis, the change in the present value of the defined benefit obligation has been calculated on the same basis as prior years using the projected unit credit method at theTeontadl o6f,9th06e y6e,9a7r,4wAhnicahlyissisthoef snaemt seuarspltuhsa/t(daepfpilciietd):iTnoctaallcfualiartvinagluteheofdpeflainneadsbseetnse2fi,t8o4b2li2g,8at2i8on2,l7ia6b0il2it,y89re4c2o,g7n6i2se2d,8in73th2e,9s2ta6te2m,7e7n3t 2of,6f5in4a2n,c4i0a8l pPorseisteionnt.vTahlueeroaftepolafninlfialabtiiloitnieasss(2u,m39p3ti)o(n2s,7e3n4si)ti(v2i,t6y5f5a)ct(o2r,8s4in2)th(2e,i5m43p)ac(t2,o7f3c1h)a(n3g,1es57to) (a2ll,9a4s5su) m(2p,9ti6o2n)s(r2e,l5a4ti8n)gNtoetinsuflraptliuosn/(idnecfluicditin) g44th9e9r4a1te05o5f2in2c1r9ea1s4e2in(2s3a1l)a(r1ie7s2,)p(3e0n8si)o(n14i0n)crNeaestessuarpnldusd/e(fdeerfriecdit)reavraeluanaatiloynses.dCAasssheatsnd44c9as9h4e1q0u5i5v2a2le1n9ts14926 65EqLuiiatybiilnitvieesstments: W(i2th31q)u(o1t7ed2)p(r3ic0e8s)i(n14an0)a2c5ti.vPeomstaerkmept l1o,y0m18en1t,4b6e9neWfiitsth(ocuotnqtiunouteedd)p2r0ic8eVs iondaanffoancetivGerrmoaorukueptp1P9P7ll2c5c0 Debt instruments: With quoted prices in an active market 4,446 3,831 Without quoted prices in an active market 513 620 Property: With quoted prices in an active market 18 24 Without quoted prices in an active market 391 282 Derivatives:1 Without quoted prices in an active market (1,110) (986) Investment fund 533 543 Annuity policies With quoted prices in an active market 3 14 Without quoted prices 801 862
poOsvseibrlvei,eowveOrvthSetrpaatesgt ifcivReeypeoarrtse. rTvhieewfaAirnvnaulualeRoefpaowrtarodnsFoofrnmon2-0v-eFst2e0d2s0haSrterastiesgaicn RaveeproargteGcoavlceurnlaatniocen GofotvheerncalonsciengFipnraicnecioaflsthFeinGanrocuiapl'ssOshthaerersinofnortmheatdiaoynsOptrhioerr tionftohremgartaionnt dTahtee,Gadrojuusptehdasfoarnthuempbreersoenftsvhaalrueepolafntsheusdeedlatyo ianwraercdeisvhianrgesditoviEdexnedcsutwivheeDreiraepcptororsprainadte.emThpelomyeaxesimasumpaartgogrfetghaetier rneummubneerraotfioonrdpinacakryagseh.aAreschwahrgicehismraeycobgeniissseudedovinerrtehsepevcetsotifngshpaererioodptiinonthseorcosnhsaorelidpalatends iwniclol mnoet s(twatiethmoeunttsthoarreechoorlddetrheapcporsotvoafl)theexscee,ebda:se1d0%onotfhethfeaiorrvdainluaeryosfhtahreeacwapairtdaloonfththeegCraonmt pdaantey. iAncicssouuentiimngmpeodliiactieelsyTphrieorGtrootuhpeidssauteesoefqguraitnyt-,swethtleend asghgarree-gbaateseddwpiathymtheenttosttaol nceurmtabinereomfpolrodyieneasry. Esqhuariteys-swehttilcehdhsahvaereb-beeanseadllpoacyamteednitns tahree pmreeacseudriendg atet nfayireavraplueeri(oedxculnuddeirngaltlhpelaenffse;catnodf n5o%n-omfatrhkeeot-rbdaisneadryvsehstairnegccaopnitdailtioofntsh)eaCt tohmepdaanteyoinf gisrsaunet.iTmhmeefdaiiartvealyluperdioertetormthineeddaatet tohfeggrarannt,t wdahteenoafgthgereegqauteitdy-wseitthtlethdesthoatrael-nbuamsebdepraoyfmoerdnitnsairsyesxhpaernessewd hoincha hstarvaeigbhete-lninaellboacsaitsedovienrtthheepvreescteidnignpgetreinody,ebaarspeedrioondtuhnedGerroaullpp'slaenssti,motahteerotfhtahneasnhyarpelsanthsawt whiicllheavreenotupaelrlaytevdeostnaanndaaldl-jeumstepdlofyoerethbeaseifsf.eScht aorfenoopnt-imonasrkVeot-dbaafsoendevGersotiunpg ecxoencduittiiovnesp.lAancsoNrroessphoanredionpgtiionncsrehaasveeinbereentaginreadnteeadrntoinagnsyisDailrseoctroercsoogrneismepdl.oSyoemeseusnhdaerer tahweaCrdosmhpaavneya'sndaitstaccrehteiodnmarayrksehtacreonodpittiioonn,pblaansesdinonthteoytaelasrheanrdeehdol3d1erMreatrucrhn,2w02h0ic.hTihsetraekwenerientnooaocpcotiuonntswouhtesntacnadlicnuglautinndgerthtehefaVirovdaalfuoeneofGthloebsahlaIrneceanwtaivrdesP. lTahneavt tahlueaytieoanr-feonrdt.hVe oTdSaRfoinsebSahseadreosanvVeoPdlaafnoUnen'dserranthkeinVgowdaitfhoinnethSehasraemsaevgerPoulapnoUf Kcosmtapfafnmieasy, wachqeuriere shares in the Company through monthly savings of up to £375 over a three and/or five year period, at the end of which they may also receive a tax-free bonus. The savings and bonus may then be used to purchase shares at the option price, which is set at the beginning of the invitation period and usually at a discount of 20% to the then prevailing market price of the Company's shares. Share plans Vodafone Group executive plans Under the Vodafone Global Incentive Plan awards of shares are granted to Directors and certain employees. The release of these shares is conditional upon continued employment and for some awards achievement of certain performance targets measured over a three year period. Vodafone Share Incentive Plan Following a review of the UK all-employee plans it was decided that with effect from 1 April 2017 employees would no longer be able to contribute to the Share Incentive Plan and would therefore no longer receive matching shares. Individuals who hold shares in the plan will continue to receive dividend shares. 26. Share-based payments 220099 Vodafone Group Plc Vodafone Group Plc Annual Report 2020
AnnuuaallRReeppoorrtto2n0F2o0rm 20-F 2020 NNootteessttootthheeccoonnsosolidliadtaetdedfinfiannacniacliastlastteamteemntesn(tcso(nctoinnuteindu)ed) Movements in outstanding ordinary share options Ordinary share options 2020 Millions 2019 Millions 2018 Millions Summary of opGtiroannsteodut1s3ta5n£d1in.0g03818M£1a.8rc2h7240£210.9351VMeastrecdh(24041)9£W2.1e0ig(h3t9ed)£r2e.m21ai(n4i2n)g£1av.7e6raFgoerfceointetdra(c4tu6a)l£l1if.e76M(o3n1t)h£s1.W97ei(g2h8t)e£d1r.5e8m3ai1niMngaracvhe2ra4g5e£c1o.n4t1r2ac0t0u£a1l.l9if2e1M82o£n2t.h0s4WVeoidgahftoendeaGveroraugpeseaxveinrcgissereplraitceedWanedigShhteardeasavveeraPgleane:xe£r1c.i0s1ep£ri2c.e0O0 u53ts£ta1n.1d9in3g0s4h6ar£e1s.4M0i3ll3io1nAs pOruilts4t6an4d0i4n1g GshraarnetsedMdiullriionngstShheayreeaarw3a9rd3s31M1oFvoermfeeintetsdidnunrionng-vtheesteydeasrh(a1r)es(2a)re(2a)sEfoxlelrocwisse:d2d0u2r0in2g01th9e2y0e1a8r W (e2i)gh(5te)dEaxvpeirraedgedfuariirnvgatlhueeyaetagrra(3n1t)d(a2te3)W(5e)ig3h1teMdaarvcehra5g3e4f6a4ir0vWalueiegahttegdraanvtedraatgeeWexeeirgchitseedparviceer:a1gAe fpariirl v£a1l.u4e0 a£t1g.6ra4n£t1d.a6t1e GMriallnitoendsdMuriilnligonthseMyielaliro£n1s.O06th£e1r.i3n0fo£r1m.7a2tioFnorTfehietetdotdaul rfianigr vthaeluyeeoafr s£h1a.3re6s£v1e.s5t2ed£d1u.6r5inEgxtheercyiseeadr denurdiendg3th1eMyeaarcrh£210.5200£w1.a6s7££912.5m7ilElixopnir(e2d01d9u:ri£n8g6tmheilylieoanr;£210.1384:££17.464m£i1ll.i6o5n)3.1TMheacrcohm£p1e.n1s9at£io1n.4c0o£s1t.6in4cl2u6d.eSdhianreth-beacsoednspoaliydmateendtsin(ccoomnteinsuteadte)m21en0t0iVn oredsapfefoctneofGsrhraoroeuoupptpioPnPsllacncd share plans was 134 million (2019: 132 million; 2018: 128 million) which is comprised principally of equity-settled transactions. The average share price for the year ended 31 March 2020 was 135.9 pence (2019: 168.3 pence; 2018: 216.2 pence). 1 April 200 £1.92 182£2.04 178£1.91
tOheveacOqruviiseirtivowniedwateA. nTnhueailnRteerpeostrtoofnthFeonrmon2-c0o-Fnt2ro0l2li0ngStsrhaatereghicoRldeeprsoritnSthtreataecgqiuciRreeepmoratyGionvitGiaelloyrvbneemarenanscuareendceeitFhienrFaatinfanicravinaalulcesoiarlsatOththeOneotnr-hcieonnrtfrooilnlirnmgfsohaarrmehtiooladnetriso'npWroepocrotmiopnleotfetdhae nnuetmfabierrvoafluaceqoufisthiteioindsenatnidfiadbislepoassaslestsduacriqnugirtehde, ylieaabri.liTtihees nanodtecboenltoiwngpenrotvliiadbeislidtieetsaialsssoufmthedes.eTthreancshaocitcioenosfamsewaeslulraesmtehnotsbeaisnisthise mpraidoer yoenaar.nFaocrqfuuirstihtieornd-betya-ialscqsueeisi"tCiornitibcaaslisa.cAcocuqnutiisnigtiojundogfeimnetenrtessatsndfrokmeynsoonu-rccoenstoroflelisntigmsahtaiorenhuonldceerrstaIinnttyra"nisnacntoioten1s w"Bitahsnisoonf-cporneptraorlalitniognp"atrotitehsethcoatndsoolindoatteredsfuilntainncaiaclhsatantgeemiennctso.nAtrcocl,otuhnetidnigffpeorelinccieesbBetuwseineenssthceofmaibrinvaaltuioenosfAthcqeuciosnitsioidnesraotfiosnubpsaididiaorirersecareeivaecdcoanundttehdefaomr uosuinntgbtyhewahciqchuitshiteionnonm-ectohnotdro.lTlihnegcinotsetroefstthiseaadcjquusitseidtioisnriescmogenaissuerdedinaetqthueitya.gTgrheegaagtegroefgtahtee fcaaisrhvaclounessidaetrtahteiodnaitne orefsepxeccht aonfgpeuorcfhaassseestsingisvuebns,idliiaabriileisti,enseitnocfurcraesdhoarcqasusiuremde, disaansdfoeqlluoiwtys:in2s0tr2u0memnt2s0is1s9uedmbEyutrhoepGearnouLpi.bAerctyquGisliotbioanl-arsesleattsedOcno3st1s Jaurelyr2ec0o1g9n, itsheedGinrotuhpe icnocmopmleetsetdattehmeeanctqausisiinticounrroefda. T1h0e0%acqinutierreees'tsinidUenntiitfyiambelediaassGemtsBaHnd(l`iUabniiltiytimesedairae'r)eacnodgnLiisbeedrtayt Gthleoibrafla'isr ovpaleureastioant sth(eexacclquudiisnitgioitnsd`Datier,ewcthHicohmise'thbeudsianteesos)niwnhthicehCczoencthroRl iespturbalnicsfe(`rUrePdCtoCuzse.cGh'o)o, dHwuinllgiasrym(e`UasPuCredHausntghaerye'x)caensds oRfotmheansuiam(`oUfPthCeRcoomnsaidniear'a)tifoonr tarnanasgfgerreregda,tethneeatmcaosuhnctoonfsaidneyrnatoinon-coofntr1o0ll,i3n1g3inmteilrleiosnts. iTnhtehepraicmqauriyrereeaasnodnthfoerfaacirqvuairliunegotfhethbeuGsirnoeuspse'sspwraevsitooucsrleyahteeladceoqnuviteyrginedterneasttioinnatlhperaocvqiudierreoe,fidfiagnitya,loinvferratshtreuncetutraeminouGnetsrmofanidye, ntotigfeiathbleer awsistehtscarecaqtuinirgedcoannvdelrigaebdilictoiemsmasusnuimcaetdioants operators in the Czech Republic, Hungary and Romania. The purchase price allocation is set out in the table below. Fair value m Notes: 1 Identifiable intangible assets of 5,818 million consisted of customer relationships of 5,569 million, brand of 71 million and software of 178 million. 2 Includes Right-of-use assets. 3 The goodwill is attributable to future profits expected to be generated from new customers and the synergies expected to arise after the Group's acquisition of the businesses. 4 Triadnesnaticftiiaobnlecolisatbsioliftie4s6acmquililrioedn (w1e,1re91c)haGrogoeddwtoillO3th1e1r,5i0n4coTmoetaalncdonesxipdeenrasetioinn4th1e0c,3o1n3soCliadsahtecdoinnscidoemraetsiotantepmaiednEt iunrothpeeayneaLribenerdteydG3l1obMalarAcshs2e0ts2100. ,F3r1o3mtOhethdearteacoqfuaicsiqtuioisnistidounr,itnhgetahceqpueirreiodde1n0ti8tie6s1hNaveet ccaosnhtraicbquuteirded1(,192963)m26ill1io0n,2o9f5r8e7ve2n7u.eAacnqduaisilotisosnosfan2d4d7ismpoilslaiolsn2to2w11a1rd1sVthoeVpdraooffidt obaenfofereontaGxeorofGthuerpGoruoPulpp.cIPfltchAe nacnquuailsRitieopnorhta2d0t2a0ken place at the beginning of the financial year, revenue would have been 45,975 million and the profit before tax would have been 822 million. Net assets acquired Identifiable intangible assets1 5,818 Property, plant and equipment2 4,737 Inventory 2 Trade and other receivables 856 Other investments 2 Cash and cash equivalents 109 Current and deferred taxation (1,904) Short and long-term borrowings (9,527) Trade and other payables (1,066) Post employment benefits (40) Provisions (178) Net
OAthnenruiuncaaolmlReRaenedpepxopoernrtstoe2inn0thFe2oc0ornmso2li0d-aFte2d0i2n0coNmNeosottatteeemssetntot.otTthohweeercicnoforansntsruoscotulirdeliiandIttaaelytdOednfi3n1fiaMnanracchni2a0c2li0a,sttlhaestGteraomuptememerngteesdni(ttscspoa(snscivtoeintonwuteerinindfura)esdtr)uOcttuhreeriancIqtualiysitwioinths IDnufrrainstgrutthteuryeeWarierneldeesds I3t1alMianaercSh.p2.0A2.0(`thINeWGrIoTu'p), ccoremaptilnegtetdhceelretaadininagcqtouwiseitrioconms fpoarnayninagIgtarelyga(ttheec`ocnosmidbeirnaatitoionno')f.A2s76pamrtilolifotnh,eocfowmhbiicnhati1o0n8, Vmoidllaiofonnhearsebceeeivnepdapidroicneceadssho.fTh2e,1a4g0grmegilaltieonpraonvdisaio3n7a.5l %fairshvaarleuheosldoifnggoiondtwhiellc,oidmebnitnifeidabelnetaitsys.eAtssaandrelsiuabltiloitfiethseotfrathnesaacctqiounir,ewdeonpoerlaotinognesr wcoenresol2id4a8temthileliotonw, er11a3ssmetsillainond aanccdou8n5t fmorilloiuorn,inrteesrpeescttaivsealyjo. iDntisvpeonstaulrseTuhseindgiftfheereenqcueitbyemtweethenodt.hWe cearhrayvinegalvsaolueentoefretdheinnteot aanssaegtsredeimspeonstetdoolfeaasnedbtahcekfasipravcaeluoen othfecomnosbidileerabtaiosensrteacteioivnesdtoisloreccaoterdneedtwasorakgeaqinuioprmleonsst (osneednisoptoes2a0l. "FLoereaisgens"e)x. cThhaenGgerotruapnsrelactoiognnigseaidnas onretlogsasiensorneltahtiencgotmo bsiunbastiidoinaroifes3th,3at56thme Gillrioounp. hmasNdiostpeos:se1dInofc,luadnedstRhaigt hhta-voef-purseevaiossuestlsy. r2eTcohredefadirinvaoltuheerocfom3,p5r5e9hemnislilvioeninccoommperiosersexanpeinnsvee,satmreeanltsoofrec3o,3g4n5ismedilalisonparretcoofrdtheedgwaiitnhoinr Ilnosvsesotnmdeinstpsoisnaal.ssVoocdiaatfeosnaenNdejwoinZtevaelanntudreOsn(n3o1teJu1l2y)2a0n1d9,atdhievGidreonudpresoceldiviatsbl1e0o0f%2in1t4ermesitlliinonV, oredcaofordneedNweiwthZineaOlathnedr Lreimceiitveadb(l`eVs o(ndoatfeon1e4)N. e3wRZeceoarldanedd'w) fitohrincoOntshideerriantcioonmoefaNndZDexp$e3n.4sebiinllitohne(co2n.s0obliidllaiotend).inTchoemtaebslteabteemloewnts. uVmomdaafroisneesMthaeltnaeOt anss3e1tsMdaisrcphos2e0d2a0n,dthteheGrreosuupltsinogldniettsg1a0i0n%onindtiesrpeosstainl oVfod1a.1fobniellMiona.ltamLiNmoitteesd:(1`VInocdlaufdoenseRMigahltta-o')f-fuosrecaosnsseitdse. r2atIinocnluodfes24529mmililliloionn. Aofnreetcgyaclinedofnodreisigpnoseaxlcohfan1g7e0lomssilelsio. 3n hRaescobredeendrewciothrdined within Other income and expense in the consolidated income statement. Goodwill (1,320) Property, plant and equipment1 (548) Trade and other receivables (164) Current and deferred taxation 44 Short and long-term borrowings 270 Trade and other payables 79 Provisions 40 Net assets contributed into INWIT (1,599) Fair value of investment in INWIT2 3,559 Net cash proceeds arising from the transaction 2,140 Restriction of gain (note 20) (744) Net gain on formation3 3,356 Goodwill (243) Other intangible assets (155) Property, plant and equipment1 (783) Inventory (29) Trade and other receivables (244) Investments in associates and joint ventures (4) Current and deferred taxation (11) Short and long-term borrowings 215 Trade and other payables 261 Provisions 35 Net assets disposed (958) Net cash proceeds arising from the transaction 2,023 Other effects2 13 Net gain on transaction3 1,078 27. Acquisitions and disposals (continued) 2122 Vodaffone GrroouuppPPllcc
OveOrviervwiew Strategic Report Strategic Report GovGeorvnearnncaence FinFainncainalcsials OthOetrhienrfoinrmfoarmtioantion Vodafone Idea On 31 Auagnusett l2o0s1s8o,fthe3,G42ro0ump iclolimonb,ininecdluthdeinogpaerlaotsisonosnodfisiptsossuabl soifdia1r,y2,7V6omdialflioonneaInnddiaa f(oerxecilgundienxgchitasn4g2e%losstsaokfe in2,I0n7d9ums Tiloliwoner. s)m, wNitohteIds:ea1 CInecllluudlaersLi2m,0it7e9dm(`iIldlieoan')o, ftoreccryecalteedVfoodreaifgonneexIdcheaanLgiemliotessde(s`.V2oIdnacfloundeesIdaelao's)s, aofcom60p3anmyiljloioinntlryelcaotendtrtoolltehdebrye-Vmoedasauforenme eanntdotfheouArdriettyaainBeidrliantGerreosutpin(`VAoBdGaf'o).nAesIdaerae.s3ulItn,cthluedGedroiunpDnisoploosnagleorfcionntesroelsidtsatienssiutsbspirdeivarioieuss, innetteorefsct aisnhVdoisdpaofosende wInidthiainwthheicchownsaoslpidraetseedntsetdatwemitehnint odfisccaosnhtifnlouweds.oOpethraetrioinntsaningitbhleecaosmseptsar(a6t,i1v3e8p)ePriroodpe(srteye, npolatent7a"nDdiesqcuoinptmineunetd(o3p,0e9ra1t)ioTnrsadaendanadssoetthsearnrdeclieaibvialbitlieess (h1e,l5d72fo)rOstahlee"r)inavnedsntmowenatscc(6o)unCtassfhoranitds c4a5s.h2%eqiunitvearleesnt tisn3V(7o5d1a)foCnuerIrednetaaansdadjeofienrtrvedenttauxraetiuosnin(g2,t7h9e0e)qSuhitoyrtmaentdholodn. gO-tnerdmispboosrarol,wVinodgsaf7o,n8e96InTdriaadweaasnvdaolutheedrbpaasyeadbolenst1h,e66n9umPbroevriosifosnhsa7re2s0thNeeGt arsosueptshceoldntirnibtuhteedmienrtgoeVd oendatiftoynpeoIsdtecao(m4p,0le6t3io) nFaainrdvtahleueIdoefainsvheasretmpernicteinonV3o1daAfoungeusItde20a2182,(4IN67RN5e1t.5c0as).hTphroecveaelduseawriassinaglsforoamdjuthsetetdrafnosratchteiopnr3oc3e2e0dsOftrhoemr etfhfeecstasl1e (o2f,1th4e4)4.N8%et lsotasskeoninfoVromdaatfioonneoIfdVeaodfraofmonethIedVeao2d(a3fo,4n2e0G) 2ro2u1p13to3 AVBoVGd. aAosfdthoeanpfreiocenGpeerrosGhaurrepaonudPlpprcoPcleceAdsnfAronmuntahnelusRalaeetlopRAoBeGrptaorenrrteFa2doil0yrmob2s0e2r0va-Fbl2e0a2n0d no further adjustments were made, the valuation is considered to be a "level 1" valuation as per IFRS 13. As a result of the transaction, the Group recognised
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purporting to update the interest element of that demand to a total amount of INR142 billion, which included principal and interest as calculated by the Indian tax authority but did not include penalties. On 10 January 2014, VIHBV served an amended trigger notice on the Indian Government under the Netherlands-India Bilateral Investment Treaty (`Dutch BIT'), supplementing a trigger notice filed on 17 April 2012, immediately prior to the Finance Act 2012 becoming effective, to add claims relating to an attempt by the Indian Government to tax aspects of the transaction with HTIL under transfer pricing rules. A trigger notice announces a party's intention to submit a claim to arbitration and triggers a cooling off period during which both parties may seek to resolve the dispute amicably. Notwithstanding their attempts, the parties were unable to amicably resolve the dispute within the cooling off period stipulated in the Dutch BIT. On 17 April 2014, VIHBV served its notice of arbitration under the Dutch BIT, formally commencing the Dutch BIT arbitration proceedings. Performance bonds1 414 337 Other guarantees2 2,908 2,943 29. Contingent liabilities and legal proceedings 221155 VoVdaofdoanfeonGeroGurpouPlpcPlc Annual Report 2020
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The Tax Appeal Tribunal heard the appeal and ruled in the Tax Office's favour. VISPL lodged an appeal (and stay application) in the Bombay High Court which was concluded in early May 2015. 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VfeoodnaGfeornoeGhuarspcoounPtlrpaccPtulcalAinndAenmunniatinelsuRfraoemlpsRuopeprlpietrosnwrthFi2coh0hramv2e0b2e0e-nFi2n0v2o0ked in relation to the alleged patent infringement liability. Spain Vodafone Group Plc has been sued in Spain by TOT Power Control (`TOT'), an affiliate
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Approximately 1.0 billion of the claim was directed exclusively at two former Directors of Vodafone. The balance of the claim (approximately 285.5 million) was sought from Vodafone Greece and Vodafone Group Plc on a joint and several basis. Both cases were adjourned to a hearing in September 2018, at which the plaintiffs withdrew all of their claims against Vodafocnoenacenpdt)it,shDolidreincgtotrhsa. tObnun3d1lDede"ceamll-bine"r 2m0o1b8i,lethseubplsacirniptitfifofnilaegdraeenmewen,tms (ui.ceh. dloewviecrevaallounegcwlaiitmh magoabiinlsetsVerovdiacfeosn)earGerceoencsei,dderroepdpcinongstuhme einrdcirveiddiutaalgDreiermecetonrtss.aAnds aVroedsauflot,nVe oGdraofuopnePZlcigagsod, etofegnedthaenrtsw. Oithnt5heAipnrdiul s2t0ry1,9h, aMsrbPeeanpiwstoasrkwinitghdwriethwtthheisMlainteissttrlyawofsuFiitn, abnucteinanOdctthoebeCro2m01p9etfitiiloedn sAeuvtehroarlintyewonccasoemspalgiaanincset rVeqoudiarfeomneenGtsregeocinegwfiothrwaatrodtaflovrasluucehooffafeprpsr.oTxhime arutelilnyga3l3s0o mhaislliroentr.oVspoedcatfioveneefffileecdt.a29co. uCnotnertinclgaeinmt lainadbialiltliecslaaimndslwegearel phreoacredeidninFgesb(rcuoanrytin2u0e2d0), 2a1lt8h8ouVgVh oModr dPaaapfifsotaosnndeide nGoGt rmroaokueutphpePsPtalmlccp duty payments required by the Court to have his case considered. In June 2020, the Court issued judgment in respect of the first part of Mr Papistas' claims, dismissing them for non-payment of the court stamp duty. Netherlands: Consumer credit/handset case In February 2016, the Dutch Supreme Court ruled on the Dutch implementation of the EU Consumer Credit Directive and "instalment sales agreements" (a Dutch law
OavnoOthveerrvoenwe secrhveedwulSetdraftoergcJuRlyep2o0r2t0S.tTrahteegGcrRoueppohratsGaonGuomvbeerrnaonf creelvaeterdnapnacreteFsnnacnlucadlnsgFjnoanntcaarlrsanOgeOmtheenrtsnfaonrdmaastsooncathteesr,npfeonrmsoantosnchAemneusmabnedr DofresmctoarllscalnadmEs xweecruetvseubCmotmtemd tbteyenmdvedmubaelrcsu(ssteoemneortsen1t2h"ensvmeastlml celnatmssncaosusortcsa. tOesna1n5dFjoenbrtuaarrryan2g0e1m8e, nCtos"n,snuomteen2t5en"bPoonsdt e(ma cpllaomyms aegnetnbceyn)efnttsa"teadndconloletcet2v3e c"Dlarmecptororsceaenddnkgseyagmaannsat gVeomdeanfotnceoZmgpgeon,sTateolne2"),.TT-Mranosbalcetaonnds wnothwjKonPtNar.rAanpgreemlmenntasryanudndasesrostcaantedsngRhelaastebdeepnarrteyactrhaendsawctthontshewcthlatmhes aGgreonucpy'sanjodntthaerrDanugtcehmCenotnssaunmdearsFseodcearteastopnr,mtoarblye fcnoamlsperdseduferensgf2o0r2th0e. Ausseaorfepsuroltd, uthcetscaonldlecsetvrveccelsamncplurdoncegendentgwsoargkaanrsttmVeoadnadfoancecZesgsgcohhaargveesb, efeeneswfothrdtrhaewpnr.oUvsKon: Pohfonneetsw4oUrknnfAradsmtrnuscttruarteonanvdVcaosdhafpoonoelnLgmatrerdanagnedmVeondtsa.fNonoerGelraoteudp pPalcrtyantdraOnstahcetrosnnsDhaevceembebeenr 2e0nt1e8retdhenatodmdunrsntrgattohersyoefafrowrmhcehr UmKghntdrreeacstosnealblelyr Pafhfoenctesan4yUdseucesdonthsemthardeeebmyatnheUuKsemrsoobflethneestewcoornksoolpdeartaetdorfsn(aMncNalOsst)a,tenmcleundtnsgexVcoedpatfaosnde,scalnodsetdhebreploarwe.n2t 0c2o0m2p0a1ne9s2. 0T1h8e amdmnmstramtoSrsaalellseogfegaocoodnssapnradcsyerbvectweseteonatshseoMcaNteOs 3s2to2p7u1l9l tPheurrcbhuassneeossf gfrooomdsPahnodnesser4vUcetshefrroembyacsasouscnagtetss4co3ll1apSsaele. sTohfegvoaoludes oanf dthseecrvlacmesstonojotnptleaarrdaendgbeumtewntesu3n0d5er2s4ta2n1d9t4toPubrechthaesetootfagl vooalduseaonfdthseerbvucesns efsrso,mpojossnbtlayrraarnoguenmd e£n1tsb9ll7on1.9V2o1d9a9-fNoneet 'nstearlelesgt endcosmhaerereocfetvhaebllaebflrtoyms jaolsnot anrortanpgleeamdeendt.sV1o7d1af9o6n1e2f0leTdrtasddeebfeanlacnecoens o1w8 eAdp:rbly20as1s9o,caaltoensg4w1th4 stoevaesrsaolcoattheesr4d3ef2enbdyajnotns,taanrrdatnhgeemAdemntnss1tr5a7to1r9s3fl1e0d7thtoerjoRnetpalerrsanngOecmtoenbetsr32701295. 2A8cOastheemr banalaagnecmesenotwheedarbnygjotonotkarprlaancgeenmMenatrsc1h12,008230,9w97th 1,328 Other balances owed to jont arrangements2 2,017 169 150 Notes: 1 Amounts arse prmarly through VodafoneZggo, Vodafone Hutchson Australa and nwt S.p.A.. nterest s pad n lne wth market rates. 2 Amounts for the year ended 31 March 2020 are prmarly n relaton to leases of tower space from NWT S.p.A. Dvdends receved from assocates and jont ventures are dsclosed n the consoldated statement of cash29flo"wCso.nTtnrganensatclatobnltseswathndDlreegcatol rpsrooctheeerdnthgasn" cfoormfpuertnhseartodnetDalusr.nNgWthTe t-hSreaeleyoefarsshaernedseOd n3127MAaprcrhl 22002200,,tahnedGarsooufp2coJumlypl2e0te2d0,thneosDalreecotfoerqnuotryasnhyaroetshenrnefxraescturtuvtetuoreffWcerr,elneosrs atanlyanaessSo.cpa.tAe.o(f`NanWyTD'r)e, cetqourvoarleanntytoot4h.e3r%exoefcNutWveTo'fsfcsehra,rewcaaspntdael,bftoerdto40t0hemClloomn.pTanhey.GDruorunpgctohnetnthureesetyoehaorslden3d3e.2d%31ofMNaWrchT'2s0e2q0uatyndshaasreosf 2anJdulNyW20T20c,otnhtenuCeosmtopabneyahjaosntnvoet nbteuerne aofptahretyGtoroaunpy. 3o1th. eSrumbsaetqeruaelnttraenvseancttso3n0, .oRr eplraotpeodspeadrttyratnrsaancstaocntso,nns 2w2h1c1h9a9nVyomVedmaboefdr ooafntfheeokneGyemroaGnuargpeomuPenlpt cpPelrcsoAnnnAeln(unncalundlunRgaDelrpeRctooerrsp, taonnyrotFth2eor0ermxe2c0u2tv0e-Fof2f0c2e0r, senor manager, any spouse or relatve of any of the foregong or any relatve of such spouse) had or was to have a drect or ndrect materal nterest. Accelerated payment to Vodafone dea On 22 Aprl 2020, the Group announced that t had accelerated a payment of US $200 mllon to Vodafone dea, whch was due n September 2020 under the terms of the contngent lablty mechansm (`CLM') wth Vodafone dea. See note
VAondnaufaol nRe pGorortu2p0P2l0c Annual Report on Form 20-F 2020 NNootteessttootthheeccoonnsosoldladtaetdedfnfannacnaclastlastteamteemntesn(tcso(nctonnutendu)ed) The Group dd not restate comparatve perods on adopton of FRS 15 on 1 Aprl 2018; therefore, ths note provdes nformaton about the Group's revenue accountng polcy under the prevous accountng rules as appled n the year ended 31 March 2018. Revenue accountng polcy under AS 18 Revenue s recognsed to the extent the Group has delvered goods or rendered servces under an agreement, the amount of revenue can be measured relably and t s probable that the economc benefts assocated wth the transacton wll flow to the Group. Revenue s measured at the far value of the consderaton recevable, exclusve of sales taxes and dscounts. The Group prncpally obtans revenue from provdng moble and fxed telecommuncaton servces ncludng: access charges, voce and vdeo calls, messagng, nterconnect fees, fxed and moble broadband and related servces such as provdng televsual and musc content, connecton fees and equpment sales. Products and servces may be sold separately or n bundled packages. Revenue for access charges, voce and vdeo calls, messagng and fxed and moble broadband provded to contract customers s recognsed as servces are performed, wth unbllteodthreevnetneurme eredsaurlytnagndfrothme snetervrmceesdaalrryeahdays nporogvedneedraalcrcgruhetdtoartetthuernenthdeodfeevaccehtpoerreocdevanedaurnefeuanrnde. df trheevesngunefcfarnotmrsskesrvacreesntoot btreanpsrofevrdreedd,nrefvuetunrueepreercoodgsndtoenfesrrdeedf.eRrreevdeunnutel fsraolme otfhtehseadleevocfeptroepaandecnrdedctusstdoemfeerrrebdy uthnetlnstuecrmh etmdaeryasotrhtehceuesxtopmryeorfuasensytrhgehat rotmf ree,tuorrnt.hne rcerveednt ueexparrerasn. gReemveennutsenfrcolumdnngtemrcoornentehcatnfeoensesdreelcvoegrnabseled, atht ethaerrtamnegethmeesnetrsvacreesdavredepdernftoormseepda.raRteevuenntuseoffoarctchoeupnrtonvgs. oDneolvfeteralebvlessuaalreancdonmsduesrcecdosnetpenartastereucnotgsnosfeadcwcohuenntnogr afsththeefoGllroowupngpetwrfoorcmosndthtoenrselaarteedmseetr:v(c)ethaendd,edlveepreanbdlenghaosnvtahleuenatotutrheeocfutshteomseerrvcoen, as srteacnodg-nasloedneetbhaesrsaatntdhe()gtrhoesrseasmeovudnetnbcelleodf tthoethfearcvuasltuoemoefr tohrethteema.mTohuenatrrreacnegveambleenbt ycothnsedGerraotuopn assaclloomcamtesdsotno feoarcfhacseltpaatnragtethuensteorfvcaec.coCuunsttnogmbearsceodnonnecttsornerlaetvveenfuaer svarelucoe.gTnsheedGtoroguepthgerenwetrhaltlhyedreetleartmedneesquthpemfeanrtvraelvueenoufentdovtdhueaelxetleenmt ethnatts tbhaeseadggornegpartceeseqaut pwmhecnhttahneddceolvnenreacbtloensrreevgeunluaerldyoseosldnootneaxcsteaenddt-haelofnaer vbaasluseafotferthceoenqsdueprmngenatndyelavpeprreodptroattehveocluusmtoemdesrc.oAunntys.cRusetvoemneurecaolnlonceactteodntoredveelnvueeranboltesrescoregsntrscetde,dtotogeththeearmwothunatntyharet lsatreedceevxacbelsesweqthuopumt ethnet rdeevlevneurye,osf daedfdetrornedalagnodordescoorgnsesrevdcoevs.eTr hthserpesetrrocdtonn wtyhpcchalsleyravpcepsleasretoerxepveecntuede rtoecboegnpsroedvdfeodr dtoevthceescpursotovmdeedr.tRo ecvuesntoume eforsr,dnecvlucdensgalhesansdrseectos.gCnsoendtrwachte-rnetlhateeddecvocsetssndteelrvmeereddarteostahreeegnvdencucsatsohmnecreanntvdetshebysgthnefcGanrot urspktsoacnodnrneewcatrndeswofcuoswtonmeresrhspahnadvueptgrarandsefeerrxesdtn. gFocrusdteovmceerssa.lFesormnatderemtoednatreersmwedhaoredso, rneovtepnuurechsarseecopgrondsuedctfstahnedsgsenrfvccaenst frrsokms atshseocGartoeudpw, sthucthhecdasehvcneceanretvterasnasrfeerred
accounted for as an expense. Such cash ncentves to other ntermedares are also accounted for as an expense f: the Group receves an dentfable beneft n exchange for the cash ncentve that s separable from sales transactons to that ntermedary; and the Group can relably estmate the far value of that beneft. Cash ncentves that do not meet these crtera are recognsed as a reducton of the related revenue. Crtcal accountng judgements appled n the recognton of revenue under AS 18 Gross versus net presentaton When the Group sells goods or servces as a prncpal, ncome and payments to supplers are reported on a gross bass n revenue and operatng costs. f the Group sells goods or servces as an agent, revenue and payments to supplers are recorded n revenue on a net bass, representng the margn earned. Whether the Group s consdered to be the prncpal or an agent n the transacton depends on analyss by management of both the legal form and substance of the agreement between the Group and ts busness partners; such judgements mpact the amount of reported revenue and operatng expenses but do not mpact reported assets, labltes or cash flows. 32. AS 18 bass prmary statements 2200 Vodafone Group Plc
usOevdebrvyetwheOGvroSutrpa.teAglcl nRterap-ogrrtoeurpvetwranSstarcattoegnsc,Rbeaplaonrct eGs,onvceornmaencaendGoexvpeernnasnescearFenealnmcnalasteFdnaonnccaolsnsOotlhdeartonnf.oNrmoant-ocnonOtrthoellrnngfnotremreastotsnnAthfeulnl elsttaosfseatlsl ooff coounrssoulbdsadteadressu,bjosdntaraersraanregedmenentftesdasnedpaasrasoteclaytefrdoumndtheertaGkrnogusp'ssdeeqtualteydthbeerleonw. .NAonfu-cllolnsttroolflsnugbnstdearreesst,sjcoonntsasrtroanf gtheemaemntosuanntdoafstshoocsaetendteurensdtesratatkthnegsd(aates doefftnheedonrgtnhaelLbaursgneesasndcoMmebdnuamto-nszaenddCthoemnpoann-ecsonantrdolGlnrgousphsar(eAhcocldoeurn'tsssahnadreRoefpcohrtasn)gResegnuelaqtuotnyss2n0c0e8t)haesdaatte31ofMthaercchom20b2n0atsodne. tTaoletdalbceolomwp.reNhoenssuvbesdnacroems earseaetxtrcbluudteeddtforonmont-hceonGtrrooullpngconntesroelsdtastoevne. nUfnltehsssroesthueltrswnsethsetanteodn-tchoenCtroomllnpgannyte'sressutsbshdaavrnegs aalldehfacvtebsahlaanrecec.a%ptaolfcsohnasrsetncglassoslheleyldobfyorGdnroauryp sChoamrepsaanneds a%reonfdsrheacrtelychlaeslsd.hTelhdebpyerGcreonutapgCeohmelpdabnyesG%rooufpschoamrepcalnaesss rheeflldecbtybGotrhouthpeCporomppoarntoens oCfonmopmannayl ncaamptealSahnadrevcoltansgs rCgohmtspuannlyesnsaomtheeSrwhasreesctalatesds.CSoumbspdaanryesnaAmcceoSuhnatrnegcplaoslcseBseAlgsuumbsCdaayrymsanansleanntdtys cAolnbtarnoalleVdobdyaftohneeCBoemlgpuamnyS. ACo/NnVtro1l0s0a.c0h0eOverddnwarhyersehathreesCCoGmPpannvyeshtamseenxtsst(nHgorlgdhntgsst)hLatmgtveed t1t0h0e.0c0urOrerndtnaabryltyshtaoredrseVctotdhaefoancetvAtelsbtahnaat Safhf.eAct9t9h.e94CoOmrdpnaanryy'sshreartuesrnBsraanzdl CexhpleosAunregoolrarVghotdsatfoonvearEabnlteerrpertsuernCshflreoSm.Ath.e1e0n0t.t0y0. TOhrednraersyulsths aorfessuVbosddaarfeosnaecSqeurrveçdoosrEdmspporesesadroasf dBurransgl Lthtdeay.e1a0r0a.0re0nOcrldundeadrynshthaerecsoVnsoodldacaotemd nBcuosmneessst(aAtenmgeonlat)frLommtathdae e5f5fe9c.t8v9eOdardtenaorfyaschqaursetsonChornaupAtrogethnetneaffCeocbtvrea ddaoteBorafsdlsSpeorsvaçlo, sasdaepTperloepmraàttec.aWltdhea.re(nnepcroescseasrsyo, faddsjussotlmuteonnt)s7a0re.0m0 aOdredtnoartyheshfnaarenscaVlosdtaatfeomneenAtsuotofmsuobtvsdeaTreeschtonoblronggetsh(eBreajcncgo)uCnotn,gLptdol1c0e0s.n00toOlnrdenwatrhytshhoasrees CWGmNmLeuSb.Ale. S1O00C.0A0RO,rBdnoaurlyevsahradredseAlaulsbtrearltae,VAokdwafao,nDeoCuhanlaa, LCmamteedro(Conhnca/o) (Sntoplrtozkceas&s oPfadrstnseorluRtoenc)ht1s0a0n.w00älEteqOutGy,nKteärrensttnsehraRrensgV1o2d, a3f.oSnteoEckm, p1r0e1s0a,BWraesnl,TAeulesctroamRuonocmaç1õ6es03L,t1d6at1h0F0l.o0o0r,O1r2d0n0arPyusdhoanregsATvaelknluaen,dCAhnuastr(Sal,a1P2t0y0LPmutdeodn1g0A0.v0e0nOuer,dFnraerey TshraadreesZVoondea, fSohnaenEghnate,rCprhsneaC1o0mTmsaurnOcastvoonbsoTdeteclhBnclvadl .S,e3rrvdcFe l(oSohra, nSgphraed) eCtos,RLetgdo. nB,eSjongfaB, 1ra0n0c0h, B10u0lg.0a0raBMralnlschOBakullegya,rLaeVvoedl a7f,o1n5e1ECnltaerrepnrcsee ASturesterta,lSayPdtnyeLymNtSedW12000.0000, OArudsntraarlya sLheavreels 1V, o1d7a7foPnaecfEcnHtegrhpwrsaeyB, uNlogratrha SEyOdOneDy1N00S.W00O20rd60n,arAyusshtraarleasAVvodPaafuolnsteaE7n4t-e4rparnsdeaCr,oSmamlau4n2c7a,toBneslaTVecshtan,cCalESPe,r0v1ce31(1Sha9ng02h,a)SCãoo.P,aLutldo.,1B0r0a.z0l0LOevrdenl a9r,yTsohwareers2A, Cushtnraa CCaemnterraoloPnlaCceo,nRgoo,oTmh9e4D0e, mNooc.7ra9tcJaRnegpuuobRlcooadf ,thCehVaooydaanfgonDesEtrnctte, rBpresjengA, u1s0t0ra02G5m, CbHhn1a0C0e.0rr0toO3rd4n8a, r5ytsohBar,eCs 1V0o1d0aAcAomH,BBuusnenesossCAarmese,rAoorgneSnAtn5a6B0.u5l0dnOgrd21na, r1y1,shKaarnegsdBnaghSratn., CBaDnAad, aBVejondga, c1o0m01C76ongCo h(RnaD, CC)hSnaAA3v0.J8o5séORrdoncahray Bshoanrfems ,42C1y4p, rCuosnVdoPdraafçoanCe aEpnttaelrprEsedfBícaohrTaonrWon.tLo,.Lsl.s120208.0/202O9r1d3n0a8ry0-s9h0a0reJsaVrdomdaSfaonnteaCGaennaedbaranc. C10am0.p0n0aCs,oSmãmo oPnauslhoa,rBesraVzol d2a2f2onMerMafloobrlees,OPp.e2r8a,toSnasntLagmot,edM1e0tr0o.p0,09O7-r7d6n3a,ryCshhlearResuaAFl eRrznaaoEfdeenSdoCuasda,dCesoNndoo:3m3n/Ao dOortBaeknögya, ,L1e0fAko,aV, lCayAprlcues,3L2u8a0nBdal,ooArnSgtorleaetAWveensdt,aSCudtead1e14Ja0r,d1m1,F4l0o0o,r,7Cthenatnrde 2T0otwheFrl,oToorsr,oJnatordOmNPaMu8lsXtan2oX,3S,ãCoaPnaaudlao,RBSrMazBl,a0h1r4a5n4, -30r0d0fl1o9o0r FEalglcnoAn vTeonwueer,,GDepolrogme aTtcowAnre, aG,rManadnaCmaya,mPaOn,BKOYX1-191080156, ,CBaayhmraann s2l9a2ndAsvMenaulteadHeoLuaseJ,ursutceeA, Crcohmmmèduene25d,e1l0a0G0oBmrbuexe, lKlenss,hBaesalg, uCmonAguotoPsotrrtaed2a0T1rAan3ee-mDeurEretsa,gRe rEungtar:ee C,
"Pavaresa", Nr 61, Kashar, Trana, Albana 33. Related undertakngs 222211 Vodafone Group Plc Vodafone Group Plc Annual Report 2020 Annual Report on Form 20-F 2020
ReApnunbulcuaAa.lSlR. oRnee1pApoporlrr2tt0o220n)01F020o.00r0mO2rd0n-Far2y0s2h0arNesNVoootdteaefossntetoWotethsht eGemccboHon1n0s0o.s0o0ldOlarddtnaaertydesdhfanrfeasnVnaocdnaafoclnaes-tlPaasnttaefaomntHeeemllenntecs9n9(t.c8s7o(Onrcdtonnanryutsehnadrues)eAd)TKeAleBcoEmLmCOunMcaWtonoslfCsboumrgpaGneyseSl.lAsc.hUaPftCFuRreBalreEtsbtaanted,ksa.br.eol.-K10o0m.0m0uOnkrdantoanryMsht aBreesscThKraSnkTteelreHpoasfttuKngab3e7l-6S.7e6rvOcerdKnaasreyrsslhaaurteesrnCGzemchbHR3ep7u6b.7lc6AOprodlnlaorSyusbhmaraersnVe oCdaabfloenSeyTstoewmerLstdCzeFchreRncehpuBbrlacn1chs2.r.1o0. 01.0000.0B0raOnrcdhnGarhyasnhaaGreesrmVoadnyafoOnsekaTroMweorbsl CS.zRe.cOh.R1e0p0u.0b0lcO2rds.nr.aor.y1s0h0a.r0e0s ONraddnaacreyVshoadraefsonVeoedsakfoánReenpnuobvlkuas 1S0.A0..0909T.8r7usOterednVaorydasfhoanreesCKzeacbhelRDeepuutbslcchAla.nSd. 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Luxembourg Va Astco 41, 21100 Varese, taly ASEM Tower level 37, 517 Yeongdong-daero, Gangnam-gu, Seoul, 135-798, Korea, Republc of SS 33 del Sempone KM 35, 212, 21052 Busto Arszo (VA), taly 3rd Floor, 54 Gongse-ro, Geheung-gu, Yongn-s, Gyeongg-do, Korea, Republc of 201 - 206, Shv Smrt Chambers, 49/A, Dr. Anne Besant Road, Worl, Mumba, Maharashtra, 400018, nda Pazzale Lug Cadorna, 4, 20123, Mlano, taly 6th Floor, ABC Towers, ABC Place, Wayak Way, Narob, 00100, Kenya 10th Floor, Tower A&B, Global Technology Park, (Maple Tree Buldng), Marathahall Outer Rng Road, Devarabeesanahall Vllage, Varthur Hobl, Bengaluru, Karnataka, 560103, nda 223 Vodafone Group Plc Annual Report on Form 20-F 2020
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319 Frere Road, Glenwood, 4001, South Afrca Ffth Floor, Ebene Esplanade, 24 Cybercty, Ebene, Maurtus Zochova 6-8, Bratslava, 811 03, Slovaka Knowledge Oass Muscat, Al-seeb, Muscat, Governorate P.O Box 104 135, Oman Prevozská 6 , Bratslava, 821 09 Vodafone House, The Connecton, Newbury, Berkshre, RG14 2FN, Unted Kngdom c/o EconPartner AS, Dronnng Mauds gate 15, Oslo, 0250, Norway Asa Square Tower 2, 12 Marna Vew, #17-01, Sngapore, 018961, Sngapore 10th Floor, Standard Chartered Towers, 19 Cybercty, Ebene, Maurtus 33. Related undertakngs (contnued) 2244 Vodaffone GrroouuppPPllcc
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2, 8012 EH Zwolle, The Netherlands 33. Related undertakngs (contnued) 2288 Vodaffone GrroouuppPPllcc
OveOrviervwiew Strategic Report Strategic Report GovGeorvnearnncaence FinFainncainalcsials OthOetrhienrfoinrmfoarmtioantion The table below shows selected financial data in respect of subsidiaries that have non-controlling interests that are material to the Group. Vodafone Egypt Vodacom Group Limited Telecommunications S.A.E 2020 m 2019 m 2020 m 2019 m Summary comprehensive income information Revenue 5,531 5,443 1,454 1,116 Profit for the financial year 980 940 287 271 Other comprehensive income 9 14 Total comprehensive income 989 954 287 271 Other financial information Profit/(loss) for the financial year allocated to non-controlling interests 353 331 129 123 Dividends paid to non-controlling interests 322 315 26 269 Summary financial position information Non-current assets 6,155 6,294 1,417 1,138 Current assets 2,444 2,426 602 515 Total assets 8,599 8,720 2,019 1,653 Non-current liabilities (2,807) (1,904) (122) (43) Current liabilities (1,866) (2,320) (929) (1,009) Total assets less total liabilities 3,926 4,496 968 601 Equity shareholders' funds 3,056 3,472 577 370 Non-controlling interests 870 1,024 391 231 Total equity 3,926 4,496 968 601 Statement of cash flows Net cash flow from operating activities 1,992 1,758 477 481 Net cash flow from investing activities (555) (556) (239) (109) Net cash flow from financing activities (1,214) (1,410) (192) (314) Net cash flow 223 (208) 46 58 Cash and cash equivalents brought forward 684 887 226 159 Exchange (loss)/gain on cash and cash equivalents (81) 5 1 9 Cash and cash equivalents 826 684 273 226 222299 VoVdaofdoanfeonGeroGurpouPlpcPlc AnAnunanluRaelpRoerpt onrtF2o0rm2020-F 2020
VWAiroenledsnsaWufaoorlldnwRideepGLiomroitretdu27p002P922l006c VAondnaufaolnReeIpnovretsotmn eFnotrmUK205-7F928032805 NCNaboleot&teeWssitrtoeloetsths hWeeocrcldowonidnesoVsooliicdeliMadetsaseatdgeindgfi1n9fi8a1n4n1a7cnViaocdliaafsotnlaestItnevaemsttmeeemnntsteLsinm(tictesod(1n5ct3o0i5n1nu4tCeianbdlue)&ed)WTihreelefossllNowoimnginUeeKLsimubisteiddia3r2ie4s98w8i4ll VtaokdeaafodvnaenItPagLeicoefntshiengauLdiimt eitxeedm6p8t4io6n23s8etCoeunttwrailthCionmsemctuinoinca4t7io9nAs oGfrtohuepCLoimmpitaendie4s6A25c2t42800V6ofdoarfothneeyMeaarrkeentdinegd U31KM68ar5c8h528502E0n.eNrgaimse(IRreelganisdtr)aLtiiomninteudmNbIe0r3N5a7m93eVRoedgaisftornaetioMnonbuimlebCeor mAmAuAn(icEautrioon) sLLimimiteitded33059642112221VEondearfgoinseCFoimnamncueniLcuatxieomnsbLouimrgitLedim2i6te3d04577154V4o7d9aAfosnpeecMtiovbeilLeimEnitteedrp3r8is6e6s5L4i5mVitoedda3f9o6n1e3F9i0naEnnceergSiws eSdqeunar2e1d3L91im68iteAdst3e0c3C74o4m2mVuondicaaftoinoensMLoimbiilteedNe2t0w2o3r1k9L3iVmoitdeadfo3n9e61F4in8a2nLceonUdKonLHimyidtreadu3li9c2P2o6w20erBCluoemfipsahnCyo(mThmeu)nZiCca0t0io0n0s5L5iVmoitdeadfo5n1e42N6o1m0 iVneoedsafLoinmeitFeidna1n1c7i2a0l 5O1pMeraettiroonHso4l0di1n6g5s5L8imCaitbelde 3&51W11ir2e2leVssoAdasfpoanceHOocldeainngias LLiimmiitteedd 34977035432472 MVoLdaInfotengeraGtiloonbaGl rCoounpteLnitmSiteerdvi3c2e5s2L9i0m3itVedod4a0f6o4n8e7O3 vCearbseleas&FiWnairnecleesLsiCmIiSteSde4r1v7ic1e1s1L5imPiintendac2le96C4e7l7lu4laVroGdraofuopneLHimirieteLdimSCit1e2d32692396V65o3daCfaobnleeO&vWersierealsesHsoElduirnogpseLHimolidteindg2s8L0i9m7i5te8dP4in6n5a9c7l1e9CVeloludlaafroLneimHiotelddiSnCgs1L27u1x3e3mVbooudragfoLniemPitaenda4fo2n00U9K706C32a6b9le1&8 PWroijreeclet sTseGlelcoobmalHBoulsdininegsss LSeimrviitceeds3L8i9m1i8te7d9 3V5o3d7a5f9o1neVPoadratnfoenreSIenrvteicrmesedLiiamteitEednt4e0rp1r2i5se8s2LSiimngitleedpo3i8n6t 9(143U7) CLaimbliete&d 2W79ir5e5le9s7sVGolodbaafol nHeoPldroinpgerLtyimInitveedst3m74en06ts9L4iVmoitdeadfo3n9e03In42te0rnTahtieonEaalstHeronldLinegassiLngimCitoemdp2a7n9y74L2im6 iCteadbl1e6&72W83i2reVleosdsaUfoKneHRoledtainilg(sHLoilmdiitnegds)38L4im08it8e8dV33o8d1af6o5n9eTIhnutesrnGartoiounpaHl OolpdeirnagtsioLnismLiitemditSeCd1297296764638VCodaabfleon&e Retail Limited 1759785 Thus Group Limited SC226738 Vodafone UK Foundation CE019435 Voda Limited 1847509 Vodafone UK Limited 2227940 Vodafone (New Zealand) Hedging Limited 4158469 Vodafone Worldwide Holdings Limited 3294074 Vodafone (Scotland) Limited SC170238 Vodafone Yen Finance Limited 4373166 Vodafone 2. 4083193 Vodaphone Limited 2373469 Vodafone 4 UK 6357658 Vodata Limited 2502373 Vodafone 5 Limited 6688527 Woodend Group Limited SC140935 Vodafone 5 UK 2960479 Your Communications Group Limited 4171876 Vodafone 6 UK 8809444 Vod3a9fo6n1e90A8mVeordicaafson4e6E38u9ro4p5e7anVoPdoartfaolnLeiBmeinteedlu3x9L73im44it2ed344.2S0u0b9s6i0diVaroiedsafeoxneemBput sfirnoemssaSuodliut t2i3o0nsVLoidmaiftoende2G18ro6u5p65PVlcodafone Cellular Limited 896318 Vodafone-Central Limited 1913537 Vodafone Connect Limited 2225919 Vodafone Consolidated Holdings Limited 5754561 Vodafone Corporate Limited 1786055 Vodafone Corporate Secretaries Limited 2357692 Vodafone Distribution Holdings Limited 3357115 Vodafone Enterprise Corporate Secretaries Limited 2303594 Vodafone Enterprise Equipment Limited 1648524 Vodafone Enterprise Europe (UK) Limited 3137479 Vodafone Euro Hedging Limited 3954207 Vodafone Euro Hedging Two 4055111 Vodafone Europe UK 5798451 Vodafone European Investments
Overview Strategic Report Governance Financials Other information This page is intentionally left blank 231 Vodafone Group Plc Annual Report on Form 20-F 2020
Annual Report on Form 20-F 2020 This page is intentionally left blank 232 Vodafone Group Plc
Overview Strategic Report Governance Financials Other information This page is intentionally left blank 233 Vodafone Group Plc Annual Report on Form 20-F 2020
Annual Report on Form 20-F 2020 This page is intentionally left blank 234 Vodafone Group Plc
Overview Strategic Report Governance Financials Other information This page is intentionally left blank 235 Vodafone Group Plc Annual Report on Form 20-F 2020
Annual Report on Form 20-F 2020 This page is intentionally left blank 236 Vodafone Group Plc
Overview Strategic Report Governance Financials Other information This page is intentionally left blank 237 Vodafone Group Plc Annual Report on Form 20-F 2020
Annual Report on Form 20-F 2020 This page is intentionally left blank 238 Vodafone Group Plc
OuvseerdOivnivseeettwinrgviDewireScttroarteagnidc mReapnoagrteSmtreanttergeimc RuneeproarttioGno;vaenGdrnItoaisvunseecfrunleianncceonAnlettceteiornrnwnaiathttidviisvceuesspipoenrewfriothfrtohmerimnvaensatcmneenctmceomemmausneiutayr.sAeudsjruessteFdinEaBnFITcDinAiaaWlnescuisaelsaOdjtuhsetOedr iEtnBhIfTeDorAri,minnfcaoontrjiumncotnioatniownitthioonthInerthGeAdAisPcuasnsdionnoonf-GthAe AGProfuipna'sncreiaplomrteedasoupreesrastuincgh raessuadltjsu,sateltderEnaBtIiTve, apdejrufsotremdaonpceeramtienagsuprreosfiatr,eoppererasetinntgedprtoofpitroavniddneertepardoefrist,wtoithasasdesdsitoiounraolpfeinraatnicnigalpienrffoorrmmaatniocen.tWhaet ibserleiegvuelatrhlaytraedvjiueswteeddEbBy ImTaDnAagiesmanenot.peHroawtinegvepre,rtfhoirsmaadndciteiomneaal siunrfoe,rmnoattiaonliqpureidseitnytemdeiassunoret,uansifiot rimncllyuddeesfinnoedn-bcyasahllcchoamngpeasniineswioncrkluindgincgatphiotasleainndthiserGevroieuwp'esdibnyduthsteryC.hAiecfcEorxdeicnugtliyv,eittomaasysensostibnetecronmalppaerrafbolremwanitchesiinmciloanrjluyntcittlieodnmweitahsuardejsusatnedddEiBscIlToDsuArems bayrgointh, ewrhciocmh pisananiesa.ltAerdndaittiivoenaslallye,scmeratraginininfifgourrmea. tWioen bperleiseevneteitdiissbdoetrhivuesdeffurol manadmnoecuenstssacraylctoulraetpedoritnaadcjucsotreddanEcBeIwTDithAIaFsRaSpbeurftoisrmnaont citesemlfeaasnuerxeparsesitsleynphaernmceitstethdeGcAomApPamraebaisliutyreo. fSpurcohfimt aecarsousrsessesghmouelndtsn.oBt ebceavuiseewaeddjuisnteisdoElaBtiIoTnDoAr adsoaens nalotet rtnakateivinettooatchceoeuqnuticvearlteanint GitAemAsPthmaetaasfuferect. oSperevriacteiornesvaennduepeSrefrovrimceanrecve,eandujeucsotemdpErBisIeTsDalAl rhevaseninuheerreelnatteldimtoitathtieonpsroavsisaiopnerofofromnagnocinegmseearsvuicrees. Tinoclcuodminpge,nbsauttenfootrltihmeisteedlimtoi,tmatioonnths,lywaecacneasslycsheaardgjeuss,taeidrtEimBeITuDsaAgei,nrcooanmjuinngc,tiionncowmitihngotahnedr oGuAtgAoPinganndetnwoonr-kGuAsAagPeobpyernaotinn-gVpoedraffoornmeacnucsetommeearssuarensd. AindtejurcsotendneEcBt IcThDarAgesshfoourlidncnoomt binegcocnalslisd.eWreed bineliiseovleattihoant oitriassbaotshubussteiftuulteafnodr naeGceAssAaPrymtoearseuproertotfhoispemraetaisnugrepeforfrotrhmeafnoclelo.wRienvgisreedasdoenfsin: iIttioisnuosfeaddfjourstiendteErnBaIlTpDerAfoFrmoratnhceeyreeaproertnindged; 3It1is March 2020, a revised definition for adjusted EBITDA has been applied, as follows: operating profit after depreciation on lease-related right of use assets and interest on leases but excluding depreciation, amortisation and gains/losses on dispoesxaplefnosreowanndeodthfiexresdiganssifeitcsaanntdoneex-coluffdiitnegmssh.aAredjoufsrteedsuEltBs IiTn aaslssooceixactelusdaensdthjoeinsthavreentoufreress,uimltspianiramsseonct ilaotsessesa,nrdesjotriunct tvuerinntgurceos.stAs dajruissitnegd fnreotmfindaisnccrientge rceossttrsuectxucrliundgepmlaanrsk, toothmerarokpeetraantidngfoirnecigomn eexacnhdanegxpeegnasiensa/nlodsssiegsnainfidcainntteirteesmtsotnhlaetaasreelniaobticliotinessi.dAerdejdusbtyedmeaanranginegmsepnetrtoshbaerererfelfelcetcitvsethoef tehxecluunsdioenrlsyoinfgadpjeursfoterdmEanBcIeToafntdheadGjurostuepd. nFeotrftihneanyceianrgecnodsetds,3to1gMetahrecrhw2i0th19re, laadtejudsttaedx eEfBfeIcTtsD. AWies boepleieravteintghaptroitfiits ebxocthluudsinefguslhaanrde noefcreesssualrtys itnoaresspoocritattheessaenmdejoasinutrevsefnoturrtehse, fdoelplorewciinagtiorenaasnodnsa:mTohrteisseatmioena,sguarienssa/lroessuessedonfotrheindteisrnpaolsapleorffofrimxeadncaessreetpso, ritminpga;irmTheenstelomsseeass,urreesstraurcetuursiendgicnossettstianrgisiDnigrefcrotomr adnisdcmreatenaregsetmruecntut rrienmgupnlearnast,ioonth;earnodpeTrhaetiyngariencuosemfuelainndceoxnpneencsteioannwdisthigndiifsiccuasnstioitnemwsitthhtahtearinevneosttmcoennsticdoemremd ubnyitmyaannadgedmebetnrtattoinbgeargeeflnecciteisv.eUoUf nthaeuuudnddietrileytdinegidpnefrofionrrmmafnocaertiomf othneaG22ro3u3p9.9GVroouVpdoadadjufsatoefdnoEeBnIGTe,raGdojurustoepduoPppelPractlicngApnrAonfint,uandajuulsateRdlenRetpfeionparntocionrgntc2oFstos0arn2dma0d2ju0s-tFed20e2ar0nings per share Group adjusted EBIT and adjusted operating profit exclude impairment losses, restructuring costs arising from discrete restructuring plans, amortisation of customer bases and brand intangible assets, other operating income and
AnnuuaallRReeppoorrtto2n0F2o0rm 20-F 2020 Altteerrnnaattiviveepperefrofromrmanacnecme emaseuarseusr(ecos n(ctionnuetidn)ued) Cash flow measures In presenting and discussing our reported results, free cash flow (pre-spectrum), free cash flow and operating free cash flow are calculated and presented even though these measures are not recognised within IFRS. We believe that it is both useful and necessary to communicate free cash flow to investors and other interested parties, for the following reasons: Free cash flow (pre-spectrum) and free cash flow allows us and external parties to evaluate our liquidity and the cash generated by our operations. Free cash flow (pre-spectrum) and capital additions do not include payments for licences and spectrum included within intangible assets, items determined independently of the ongoing business, such as the level of dividends, and items which are deemed discretionary, such as cash flows relating to acquisitions and disposals or financing activities. In addition, it does not necessarily reflect the amounts which we have an obligation to incur. However, it does reflect the cash available for such discretionary activities, to strengthen the consolidated statement of financial position or to provide returns to shareholders in the form of dividends or share purchases; Free cash flow facilitates comparability of results with other companies, although our measure of free cash flow may not be directly comparable to similarly titled measures used by other companies; These measures are used by management for planning, reporting and incentive purposes; and These measures are useful in connection with discussion with the investment community and debt rating a4g5e4n1cieRse.sAtrurcectuorninciglipataiyomneonftcsa5s7h0g1e9n5e2ra5t0edObthyeorp(e3r,a7t7io7n)s(,3t5h)eclOopseesrtateiqnugivfraeleenctaGshAfAloPwm7e,7a2su1r7e,,0t7o1o7p,0er0a1tiTngaxfaretieonca(s9h30fl)o(w1,,0fr4e0e)(c1a,s0h10fl)oDwiv(pidree-nsdpsecretrcuemiv)eadnfdrofmreeascsaoschiaftloeswa,nisdpinrovveisdtmedenbteslo4w17. 2409280489mD2i0v1id9enmds2p0a1id8 tomnoOnt-hceornCtreorltlaiinngosfhtahreehsotaldteemrseinntssuwbisthidiniatrhieesS(t3r4a8te)g(i5c8R4e)p(3or1t0c)oInnttaeirnesstforerwceairvde-dloaonkdinpgaiadlt(e1r,n1a6ti0v)e(5p0e2rf)o(r7m5a3n)cFermeeeacasushrefslofowr (wphreic-shpaetctthruismt)im5,e7t0h0er5e,4is43n5o,4c1o7mLpiacreanbclee GanAdAsPpemcterausmurpeaaynmdewnthsic(1h8a1t)t(h8is37ti)m(e1,c1a2n3n)oRt ebsetrquucatunrtiitnagtivpaeylymreenctosn(c5i7le0d) t(o19c5o)m(p2a5r0a)bFlereGeAcAasPh ffilnoawnc4i,a9l4i9nf4o,r4m11at4i,o0n4.4CUerUtaninnaoafuuthdedisittatteeemddenitisnnwfiftohoinrrmthaetisoenct2io4n00titVleodd"aOffuotnleooGkr"rooonupuapgpePP29llcccontain forward-looking non-GAAP financial information which at this time cannot be quantitatively reconciled to comparable GAAP financial information. Cash generated by operations (refer to note 18) 18,309 14,18213,860 Capital additions (7,411) (7,227)(7,321) Working capital movement in respect of capital additions (11) (89) 171 Disposal of property, plant and equipment 41
beOgivnenrivnigewanOdvenedrvoiefwthSetcrautrergeinct Rpeerpioodrt, SwtritahtesguicchRcehpaonrgteGsobveeinrngaenxcpelGaionevderbnyantchee FcoinmamnceinaltsarFyininanthciisaldsoOctuhmerenint.foIfrmcoamtiopnarOattihveersiwnfeorrempartoiovnidOedr,gasingincigfircoawntthseAcltlioanmsooufntthseincothmims deonctaurmy efrnotmmathrkeeddocwuimtheannt f"o*r"prreiporrepseernito"dosrwgaonuilcdgarloswo tnhe"e,dwthoicbhe pinrcesluednetsd,preerdfourcminagnctheeounsaefcuolmnepsasraanbdletrbaanssispainretnecrmy osfotfhmisedrgoceur manednta.cRqeucisointicoinliaatcitoinvsityof(noorgtaabnliyc bgryoewxtchlutodirnegpothrteeddigsproowsatlhoafrVe sohdoawfonnewNheerwe uZseeadlaonrdinantdhethtaebalceqsuoivreedrleEaufr.oRpeecaonnLciilbieartitoynGbleotbwaeleanssaelttse)r,nmatoivveempeernftosrminafnocreeimgneaesxucrheasnagnedrcaltoesseasntdeqthueiviamlepnatcGt oAfAthPemimeapsleumreeTnhtaetilooncaotfioInFRofSt1h6e `reLceoansecisl'i.aWtiohnilbset ttwhiesemn ethaesuarleteirsnnaotitvienpteenrdfoerdmtaonbceeamseuabssutrietusteinfothrirsedpoocrutemdegnrtoawntdh,thneorneisaritesstucpleorsieosrttoeqrueipvoarlteendt gGrAowAtPh,mweeasbuerleieivsesthhoawt tnhbeemloewas.uArelteprrnoavtiidveespuesrefofurml aanndcenemceesassaurrye iCnlfoosremstateiqounitvoaliennvteGstoArAs PanmdeoatshuerreinRteecreosntceidlepdarotniepsafgoer tGhreofuopllsoewrvinicgerereavseonnus:e RItepvreonvuidee"sOaudrdfiitnioannacliainl fpoerrmfoartmioannocne"usnedcetirolynin(pgaggreo3w0t)haonfdthneotbeu2sin"Resesvweniutheoduitstahgegreeffgeacttioonf acnerdtasiengfmaectnotrasl uannarelylastiesd" tOorgitasnoipceGrartoiunpg speerrvfoicremraenvceen;ueItgisrouwsethd RfoervienntuerenPaal gpeer2f4or3mAadnjcuestaendalEyBsiIsT; DanAd OItpefarcatiliintgatepsrocfoitm"pOaurarbfiinliatyncoifalupnedrefrolyrminagngcero"wsethctwiointh(poathgeer3c0o)mapnadnnieoste(a2lt"hRoeuvgehntuheedteisramgg"roerggaatnioicn"ainsdnosetgamdeenfitnael dantearlmysiusn" dOerrgIaFnRicSaadnjdusmteadyEnBoIt,TtDheAregfororwe,tbheOcpoemraptainragbplerowfiitthPasigme i2la4r2lyAtditjluedstemdeEasBuIrTesOrpeperoarttiendgbpyrooftihte"rOcuormfipnaanniceisa).l Wpeerfohramveanncoet"psreocvtiidoend(apacgoem3p0a)raAtidvjeusitnedreosppeecrattoinfgorpgraonfiitcOgproewratthinrgatpesroafsitt"hOeucrurfrinenant craiatel spderefsocrrmibaentchee" csheacntigoen b(petawgeee3n0t)haend note 2 "Revenue disaggregation and segmental analysis" Adjusted net financing costs Net financing costs "Our financial performance" section (page 35) Adjusted income tax expense Income tax expense "Our financial performance" section (page 35) Adjusted profit before tax Profit before tax "Our financial performance" section (page 35) Adjusted profit attributable to owners of the Profit attributable to owners of the parent parent "Our financial performance" section (page 36) Adjusted earnings per share Basic earnings per share "Our financial performance" section (page 36) Adjusted effective tax rate Profit before tax "Our financial performance" section (page 35) Operating free cash flow Cash inflow from operating activities Page 240 Free cash flow (pre-spectrum) Cash inflow from operating activities Page 240 Free cash flow Cash inflow from operating activities Page 240 Net debt Borrowings "Our financial performance" section (page 38) Return on Capital Employed ('ROCE') - "Our financial performance" section (page 39) 224411 Vodafone Group Plc VoAdnanfuoanleRGerpoourpt 2P0lc20 Annual Report on Form 20-F 2020
AnnuuaallRReeppoorrtto2n0F2o0rm 20-F 2020 Altteerrnnaattiviveepperefrofromrmanacnecme emaseuarseusr(ecos n(ctionnuetidn)ued) Note: 1 The comparative results were previously disclosed on an IAS 18 basis in the Annual Report for the year ended 31 Ma6rc8hG2r0o1u9p. T14h,e8s8e1c1o3m,9p1ar8a6t.i9v(e4r.4e)s0u.l1ts2h.6avPeerbceeenntargee-pproesinetnctehdaningethientaadbjluesatebdovEeBoITnDanAImFRarSg1in5Gbeasrmis.an20y24022.001399.O3t2h.7er(a1c.9ti)vi0ty.8FIotarelyig3n7(.r4e-3p7r.e6s(e0n.2te)d()01.2R)ep(o0r.t4e)dU(iKnc2lu3d.1in2g1M.7 &1.A4 )0e.x2ch1a.n6gSeOparigna2n3ic.52m2%.2p1p.s3p0p.s2%1.5mOYtheearr Eenudroepde3311M.4a3rc1h.72(00.230)1R.0ev(0e.n1u)e0.G6eErmuraonpye 1323,.0773621.001,3.79(00.196).20.(815V.7o)da0c.o5mIta3l7y.85,3592.96(51,.885)70.(950.6.1)0(.01.8)(5O.5th)eUrKM6a,r4k8e4ts63,12.792238..493(0.0.90).22.5(0S.9p)a2i.n34R,2e9st6o4f,6th6e9W(8o.0rl)d3(58..20)34O.5th0e.7r E(u0r.o4p)0e.35,G54r1ou5p,03732.193.21(.961.9.2)0(0.4.42)(.70.E1l)i0m.7inAadtijounsste(d13E3B)I(T11E6u)rEopuero2p,e58393,27,90350322,61.434(52.11.(16).01.)4(05.1.6)(R1.e1s)t oVfotdhaecWomor5ld,532,1225,34243,151.163.13.38.23.04.3O6t.h8erOMthaerrk(e1t6s)45,328G6 r4o,u8p644,(799.86)147,2.95311.32.98.(47.R7)e0s.t2o5f.3thAedWjuosrtledd9o,p9e1r7at1in0g,3p0r7o(f3i.t8E)8u.r0o1p.e652.,870O7th2e,2r 010,52637.01,(51197.8E)0li.m4 i3n.a6tiRonesst(o3f0t3h)e(3W0o2r)ldG1ro,8u6p6414,,695734 1423.,966(63.37.0)1(2.1.81)00..330O.5thAerd(ju1s8t)ed52EGBrIoTuDpA4,G55er5m3a,9n0y551,60.767(140,0.97)90.2646..53 (U2U2.n0n)a2a.u5uIdtdailiytt2ee,0d6d8ii2n,2nf0f2oo(6rr.m1)a(0ti.o5n)2(462.62)VUoKda1f,f5o0n0e 1G,3rr6o4o1u0u.p0p1P.P3ll(c0c.8)10.5 Spain 1,009 1,038 (2.8)1.1 (1.7) Other Europe 1,738 1,606 8.2 (3.6)0.1 4.7 Europe 11,392 10,28910.7(9.0)(0.1)1.6 Vodacom 2,088 2,157 (3.2)2.3 2.0 1.1 Other Markets 1,400 1,404 (0.3)19.5 (1.7)17.5 Rest of the World 3,488 3,561(2.0)8.30.56.8 Other 1
OverOviveewrview Strategic Report Strategic Report GoveGrnoavnecrneance FinanFciniaalnscials OtheOr itnhfeorrimnfaotrimonation 2020 2019 (re-presented)14,0m11O(t5h.e4r)1a9c.t9iv0it.y4 (1i4n.c9luOdfinwghMic&h:AT)uprkpesyF1or,8e7ig4n1e,x7c3h6a7n.g9e0p.5ps9R.2e1p7o.r6teOdf%wOhircgha:nEicgy%pt1m,3N94ot1e,:0173Th2e9.c9om(1pa5r.4a)ti1ve4.r5esEullitms iwnaetrieonpsreviouRselsytdoifscthloesWedoornlda8n,2IA66S81,480b2a(s1i.s6i)n8.t8h0e.9A8n.1nuOatlhRerep4o9r4t f4o7r7t3h.e61y.e1ar4en.7dEedlim31inMataiorcnhs 2(100129). (T1h0e1s)eTcootmalpsaerravtiivcee rreevsuelntuseha3v7e,8b7e1en36r,e4-5p8re3s.9en(3te.2d)i0n.1t0h.e8taObtlheearbreovveenoune a7n,1I0F3R7S,21058b(a1s.i5s).(Y0.e5a)r1e.1nd(0e.d9)31ReMvearncuhe24042,907S4e4rv3i,c6e66re3v.0e(n2u.e8)G0.e3r0m.5anOyth1e0r,6g9r6ow9,t1h4m5e1t7ri.c0s(G17e.r0m)anyM-oRbeilteaislerrevviecenureev1e0n,3u1e55,80,864715,1195.00 ((11.73.)9()0.51.)1(G1e.8r)mFainxyed- sMerovbiiclee rreevtaeinlureev5e,n6u1e243,,994995440,8.586(318.3.1()0.26.)4I0ta.7lyex4c,8lu3d3in5g,0r3e0g(u3la.9to)ry(i3m.9p)acMt oItbaillye-seOrvpiecreatrienvgeenxupee3n,s6e2s513,0,941741(7,1.44)08.2(7(.04.)6F)ix7e.6d UseKrv-icOepreervaetninuge e1x,2p0e8ns1e,s1116,687.121,882.24 U8.K4 05.,70200.849,9.952Sp1a.4in(-0O.9p)e0r.a5tinMgoebxilpeesnesrevsic1e,0r9e4ve1n,1u2e732,6.9180.39,5835.80.S9pa(i0n.9-)H2FaidxjeudstseedrvEicBeITreDveAnu5e491,54009271.9,306.732.86.2(0S.o9u)th1.7AfSrpicaain- 3S,e9r0v4ic4e,2re0v3e(n7u.e1)30,.2412(63.,72)23O(t0h.e3r) Eu3.r1o2p.e84e,x8c9l0ud4i,n4g60on9e.6-o(f6f.9be)0n.e3fi3t .i0nOthfewphriiochr :yIeraerlaVnodd8a3f8on8e4B6(u0s.i9n)ess(-0F.9ix)eOdfliwnheiscehr:vPicoertruegvaeln9u8e539,538385.36,4(50.213).95(0.5.5O)(f0w.1h)3ic.3h:2G2r4e4e3c3eV88o4V8d6o0a2d.f8ao0f.n2oe3n.G0eErGlimoriunoatpiuoPnspl(P1c3l0c)A(1n1A0n)nEuunraoupleaR29le,2R1p3eo2p7r,6to8o0r5n.t52(6F.o60)(r02.m1)0(12.02-)FV2o0d2a0com 4,470 4,391 1.81.5 3.3 Of which: South Africa 3,212 3,241(0.9) 3.12.2 Of which: International operations 1,263 1,146 10.2 (2.7) 7.5 Other Markets 3,796
AnnuuaallRReeppoorrtto2n0F2o0rm 20-F 2020 Altteerrnnaattiviveepperefrofromrmanacnecme emaseuarseusr(ecos n(ctionnuetidn)ued) 2020 2019 (re-presented)1 m Other activity (including M&A) pps Foreign exchange pps Reported % Organic % m Note: 1 The comparative results were previously disclosed on an IAS 18 basis in the Annual Report for the year ended(1321.9M)2a6rc.3h 02.081194. .T2hOesfewchoimchp:aTrautrikveeyre4s6u0lts43h2a6v.e5b(e1e.2n)r1e0-.p7re1s6e.n0teOdfiwnhthiceht:aEbgleyapbt o3v6e9o2n79a3n2I.F3R(S171.55)ba1s4i.s8. QEluimaritnerateiondnsed31RMesatrcohf t2h0e2W0 Soerlrdvi1c,e97re2v2en,1u0e8G(6e.5rm)1a2n.y122.,3875.29 2O,t2h6e7r 2153.781(22351.91).4(0.(10).1M) o1b1i.3leEselirmviicneatrieovnesn(u2e2)1,(23642) T1,o2t6al2se(r1v.i9c)er(e1v.e9n)uFeix9e,5d9s4er9v,i0c3e7r6e.v2e(5n.u0e)01.,4519.06 1O,0th0e5r 5re8v.2en(u5e6.10,)6921.21I,t7a8ly3 1(5,1.28)9(01.1,2)314.6((33.6.7)()0R.1e)ve(n3u.7e)1M1,o2b8i5le1s0e,r8v2ic0e4.r3e(v4e.2n)u0e.7807.08 9O4t5h(e7r.9gr)o(w0.t1h)m(e8tr.0ic)sFGixeerdmsaenryvi-cRe eretavielnreuvee3n1u9e228,195180.248.01(027.4.1U)K0.19,228,77612,2G5e7rm2.a4ny(1-.2M) o1b.2ileMroebtaiilel rseevrevnicueer1e,v2e3n1u1e,290039 28.935(11.6.9)(10..34)e0x.c3luFdixinegd rseegruvliacteorreyviemnpuaec3t7U8U3n6n2a4a.4uud(d0i.i7t)te3e.7ddSpiianinnff9o7o2rr1m,0a0ti2on(32.04)404.3Vo(2da.7f)foOntehGerrrEouoruouppep1P,P2l3lc3c1,103 11.8 (9.3)0.9 3.4 Of which: Ireland 205 218(6.0)2.4 (3.6) Of which: Portugal 245 2277.9 (0.4)7.5 Of which: Greece 210 214(1.9)3.8 1.9 Eliminations (26) (23) Europe 7,507 6,8409.8(10.0)(0.2)(0.4) Vodacom 1,091 1,096 (0.5)3.73.2 Of which: South Africa 789 807(2.2) 5.9 3.7 Of which: International operations 305 2876.3 (1.9) 4.4 Other Markets 881 1,012
OverOviveewrview Strategic Report Strategic Report GoveGrnoavnecrneance FinanFciniaalnscials OtheOr itnhfeorrimnfaotrimonation 2019 2018 (re-presented)1 m Other activity (including M&A) pps Foreign exchange pps Reported % Organic % m Note: 1 The comparative results were previously disclosed on an IAS 18 basis in the Ann(1u.a8l)R14e.p5oOrt ffowrhtihceh:yeTaurrkeneyde4d83114M32a1r1c.h3230.1129..9T1h7e.s3eOcofmwphaicraht:ivEegyrepstu3lt5s6h2a7v4e2b9e.e9nr(e1-6p.r0e)se1n3t.e9dEilnimthienatatibolnesabovReeosnt oafntIhFeRWSo1r5ldb2a,s0is5.3Q2u,1ar0t5e(r2e.n5d)1e2d.93(11D.3e)9c.e1mObethre2r011197S1e0r9viEcelimreivneantiuoenGs (e2rm3)a(n1y42),T8o8t3al2s,3e0rv1ic2e5.r3ev(2en5u.3e)9,7M33o9b,i1le53se6r.3vi(c4e.8r)e(v0e.7n)u0e.81O,2t7h3er1r,2e9v9en(u2e.02)(,001.27)1(,284.25) 9F.i3xe1d.3se(0rv.4ic)1e0r.e2vReneuveen1u,6e11011,7,050021600,9.798(65.78.(93).72).(80.I7ta)2ly.41O,2t2h0er1g,2r8ow4 t(h5.m0)etri(c5s.0G)eMrmoabnilye -seMrvoibceilererveetaniulere9v1e6nu9e93e(x7c.l8u)d0i.n1gr(e7g.7u)laFtoixryedimsepravcicte1,r2e4v4en1u,2e336004.269(104.2.5)(00..43)Ge4r.2maUnKy 1-,F2i8x2ed1,r2e3ta5il3r.8eve(3n.u2e) 10,.566M0 o9b5i1le64s.e0rv(i6c0e.9re)v3e.n1uGe e9r2m4a8n9y0-3.R8et(a3i.l2r)ev0.e6nuFeix2e,d79se1r2v,i1ce87re2v7e.n6u(e263.568)314.5032.824(435.53)V0o.5VSdpoaaidnfa9o6f6no1e,0n3G9er(G7.o0r)u0o.5puP(6p.l5P)cOlctAhenrAEnunrounpaeu1l,2aR65le1R,p11eo9p1r3to.0or(n1t02.0F)o03r.20mO0f 2w0h-Fich2:0I2r0eland 209 2090.1 0.1 Of which: Portugal 248 2346.0 (0.1)5.9 Of which: Greece 219 220(0.5)2.4 1.9 Eliminations (30) (25) Europe 7,586 6,9539.1(9.9)(0.6)(1.4) Vodacom 1,162 1,096 6.0(0.8) 5.2 Of which: South Africa 834 7954.9 (0.3) 4.6 Of which: International operations 330 3019.6 (2.2) 7.4 Other Markets 891 1,009 (11.7) 28.0
AnnuuaallRReeppoorrtto2n0F2o0rm 20-F 2020 Altteerrnnaattiviveepperefrofromrmanacnecme emaseuarseusr(ecos n(ctionnuetidn)ued) Other activity Reported (including M&A) Foreign exchange pps 2019 m 2018 m Organic % % pps Year ended 31 March 2019 Service revenue Germany 9,145 9,185 (0.4)0.1 (0.3) Italy 5,030 5,376 (6.4)0.2 (6.2) UK 4,952 4,953 0.3 0.3 Spain 4,203 4,480 (6.2)0.4 (5.8) Other Europe 4,460 4,312 3.4 (1O.1t)h0e.6r 628.9(5E5li)mGinroautipon1s3(,911180)1(41,5473)2(E3u.6ro)5p.e5(217.,76)800.22A8,d1j4u9s(te1d.7E)(B0.I3T)0E.2ur(1op.8e) 2V,0o5d0ac2o,5m134,(31981.44),03.71900.1.3(31.86.23) .R9eOstthoefrthMeaWrkoertlsd42,0,1151142,7,15398(105.6.74).3961.7.2(161..77)O9t.h3erO5f2w(h1i2c9h): GTurorkuepy41,2,7533642,5,12223(5(.198)7.2.5) (323.0.5)((00..46))1A4d.7juEstleidmoinpaetriaotnisng prRofeitstEoufrothpeeW2,2o0rl0d28,,544012(91,31.348)(80..12)2(103.1.2(5).R6)e6s.t4oOf tthheerW47o7rld8917,6(4563.82),48946.4(3(432.8.)07)0(.44.4()33E.l1im)3i.n5aOtiothnesr(51201(1) 3(138) 4G)rSoeurpvi3c,e90re5v4e,n9u0e4(3260,4.45)8403.84,(01080.8(4)1.1.)25U.6U(1n.7n)a(a0u.u2d) dOiitthteeredredvieinnnufefo7o,2rr0m8a7t,i1o4n0241.606(V4.o8d)4a.f3fo0n.e5 GGrrroouopuu4p3p,6P6P6ll4c5c,140(3.3)4.0(0.8)(0.1) Adjusted EBITDA Germany 4,079 4,176 (2.3)(0.2)(2.5) Italy 2,202 2,351 (6.3)0.1 (6.2) UK 1,364 1,257 8.5 (2.8)1.9 7.6 Spain 1,038 1,411 (26.4)0.4 (26.0) Other Europe 1,606 1,499 7.1 0.6 (0.2)7.5 Europe 10,289 10,694(3.8)(0.1)0.1(3.8) Vodacom 2,157 2,225 (3.1)4.0 0.9 Other Markets 1,404 1,568 (10.5)35.9(11.4) 14.0 Of which: Turkey 550 664(17.2) 35.6(1.2) 17.2 Rest of the World 3,561 3,793(6.1)16.0(4.2)5.7
OverOviveewrview Strategic Report Strategic Report GoveGrnoavnecrneance FinanFciniaalnscials OtheOr itnhfeorrimnfaotrimonation 2019 2018 Reported Other activity (including M&A) pps Foreign exchange pps Organic % m m % 2018 2017 Reported Other activity (including M&A) pps Foreign exchange pps Organic % m m % Quarter ended 31 December 2018 Service revenue Germany 2,301 2,289 0.5 0.1 0.6 Italy 1,284 1,342 (4.3)0.1 (4.2) UK 1,235 1,228 0.6((01.21).80).48.S3pOaifnw1h,0ic3h9: 1T,u1r1k7ey(74.03)20.4391((61.27.)0)O2th7e.5r E(0u.r5o)p15e.10,1R1e9st1o,0f 7th8e3W.8(o1r.l5d)21,.01038.32,E2l4im9(i6n.a3t)i1o7n.s7((255.7))(53.76)OEtuhreorp1e263,925537 7E,l0im18i(n0a.t9io)(n0s.4(3)04.)2((518.1))TVootadlasceormvic1e,0r9e6ve1n,0ue909,00.36709.8,5210.(45O.1t)h5e.1r(M1.a8r)k(1e.t8s)1O,0t0h9er1r,e1v7e6n(u1e41.2,7)3863.71(,1729.63)(01.07.)2(6O.7f)5w.h1ic(2h.:3T) uRrekveeyn4u3e21502,822(0171.12,)33146.(04(.04.)53).21(60..37)R(1e.s9t )o2f 2th4e47W7oVrlodV2d,1o0ad5f2a,o2f6n6o(e7n.G1)e1r8G.2o(r5u.o7p)u5P.4pOlPtchlecrA1n0A9 n2n1u4nEaluilmaiRnaletiRopneso(p1r4t)oo(5rn3t) 2TFoota0lr2semrv0i2ce0-rFev2e0n2u0e 9,153 9,445(3.1)5.2(1.8)0.3 Other revenue 1,845 2,003 (7.9)(4.3)3.7 (8.5) Revenue 10,998 11,448(3.9)3.4(0.8)(1.3) Quarter ended 31 March 2019 Service revenue Germany 2,267 2,366 (4.2)0.2 (4.0) Italy 1,234 1,330(7.2)0.2 (7.0) UK 1,257 1,255 0.2 (0.9)0.5 (0.2) Spain 1,002 1,092 (8.2)0.3 (7.9) Other Europe 1,103 1,064 3.7 (2.2)1.0 2.5 Eliminations (23) (35) Europe 6,840 7,072(3.3)(0.5)0.3(3.5) Vodacom 1,096 1,113 (1.5)5.0 3.5 Other Markets 1,012 1,136 (10.9)31.0
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or controlled by any foreign government or any other legal entity. There are no arrangements known to the Company that could result in a change of control of the Company. 249 Vodafone Group Plc Annual Report on Form 20-F 2020
Annual Report on Form 20-F 2020 Shareholder information (continued) Articles of Association and applicable English law The following description summarises certain provisions of the Company's Articles of Association and applicable English law. This summary is qualified in its entirety by reference to the Companies Act 2006 and the Company's Articles of Association. See "Documents on display" on page 251 for information on where copies of the Articles of Association can be obtained. The Company is a public limited company under the laws of England and Wales. The Company is registered in England and Wales under the name Vodafone Group Public Limited Company with the registration number 1833679. All of the Company's ordinary shares are fully paid. Accordingly, no further contribution of capital may be required by the Company from the holders of such shares. English law specifies that any alteration to the Articles of Association must be approved by a special resolution of the Company's shareholders. Articles of Association The Company's Articles of Association do not specifically restrict the objects of the Company. Directors The Directors are empowered under the Articles of Association to exercise all the powers of the Company subject to any restrictions in the Articles of Association, the Companies dAectati2ls00a6re(saestdoeuftinoendpinagtehse1A0r2titcole1s0o7f. 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Trehperehsoelndteartsivoefstohrepfirxoexdiersawteitshharreesspedcot ntootthheavuendanerylyoitnhgerorridgihnat rtyo sshhaarreesinretphreesCeonmtepdabnyy'tshesiurrpAlDusSass. sAetlste. rRniagtihvteslayt,tahcohldinegrstoofthAeDCSosmapreaneyn'tsitlsehdarteosvAotte3b1yMsuaprcphly2i0n2g0t,htehier visostuinegd isnhsatrreucctaiponitsaltoofththeedCepoomsiptaarnyyowraistscnoommpirniseeedwohfo5w0,i0l0l 0vo7t%e thceumorudliantiavrey fsihxaerdesrautnedsehralyreinsgofth£e1i.r0A0DeaScshinanadcc2o6r,d7a7n2c,1e6w4i,t5h44thoeirrdiinnsatrryucshtiaorness. (Hexocldluedrsinogf ttrheeasCuormy pshaanrye'ss) AofD2S0s2a0re/2e1nUtitSlecdetnotsreecaecihv.eAnsotaitc3es1oMf ashrcahre2h0o2ld0,er2s,'0m43e,e7t5in0g,4s3u4nodredritnhaerytesrhmasreosfwtheeredehpeoldsiitnaTgrreeeamsuernyt.
Dividend rights Holders of 7% cumulative fixed rate shares are entitled to be paid in respect of each financial year, or other accounting period of the Company, a fixed cumulative preferential dividend of 7% p.a. on the nominal value of the fixed rate shares. A fixed cumulative preferential dividend may only be paid out of available distributable profits which the Directors have resolved should be distributed. The fixed rate shares do not have any other right to share in the Company's profits. Unaudited information 250 Vodafone Group Plc
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filings, including all those filed on or after 4 November 2002, are available on the SEC's website at sec.gov. Shareholders can also obtain copies of the Company's Articles of Association from our website at vodafone.com/ governance or from the Company's registered office. 251 Vodafone Group Plc Annual Report on Form 20-F 2020
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Exchange controls There are no UK Government laws, decrees or regulations that restrict or affect the export or import of capital including, but not limited to, foreign exchange controls on remittaonrcveaolufed)i;vfiidneanndcsiaolnintshteituotridoinnsa;ryinsshuararensceorcoomn pthaeniceosn; dinudcitvoidf uthael rGetrioreump'esnotpaecrcaotiuonntss.aTnadxaottihoenr Atasx-tdheisfeirsraedcoacmcpoluenxtsa;retaaxi-nevxeesmtoprtsosrhgoaunlidsactoionnsus;ltdtehaelierrsowinnsteacxuraidtiveissoorr rceugrarrednicnigest;hienvUeSstfoerdsetrhaalt, swtailtlehaonldd lsohcaarle,sthoer AUDKSasnadsoptahretrotafxstcraodndseleqsu,ehnecdegsinogf otrwannsinacgtiaonndsdoirspcoosnivnegrsoifonshtarraenssaacntdioAnsDfSosr iUnSthfeeidrepraarltiincucolamr ecitracxumpusrtapnocseess.; Tinhviesssteocrstiohnolddeinscgrisbheasr,esproimr AarDilSysfoinr acoUnSnehcotilodnerw(iatshdaetfriandeed obrelbouwsi)n,eisnsgceonnedraulctteedrmosu,ttshideeporifntchiepaUl SU;SorfeUdSerahloilndceorsmwehtoaxseafnudnUctKiontaaxl ccuornresenqcuyeinscneostotfheowUnSindgololar rd.iUspnoasuindgiteodf isnhfaorrems aotrioAnD2S5s2iVn othdeafCoonemGparnoyuphePlldc as capital assets (for US and UK tax purposes). This section does not, however, cover the tax consequences for members of certain classes of holders subject to special rules including, for example, US expatriates and former long-term residents of the United States; officers and employees of the Company; holders that, directly, indirectly or by attribution, hold 5% or more of the Company's stock (by vote
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Aornonnuathl eRvepalouret oonf sFuocrhms2h0ar-eFs2if02n0otSohnarseahleo.ldSetarminpfodrumtyatrioesne(rcvoenttaixnu(e`SdD) ARdTd'i)t,ioatntahletarxatceoonfsi1d.5er%atioofntshUe aKmionuhnetriotarnvcaelutaexoAf tnheincdoivnisdiduearlawtihoon iosrdtohemvicaillueedoinf tthheesUhnairteesd, cSotautledsa(lfsoorbtheeppayuarpboleseisnothf ethsee cEisrtcautme TstaaxncCeosnbvuetnntoioSn)DaRnTd wisinllobteapUaKyanblaetiiofnsatlawmiplldnuotyt beequsualbtjeocstutcohUSKDRinThelriaitbainlicteytiasxpianidre. sFpoelclotwofinogurruslhinargessoofrtAheDESusroonpetahne CinoduivrtidoufaJlu'sstdiceeatahnodrthoen fairtsrta-ntisefrertaoxfttrhibeusnhaalreins tohreAUDKS,sHdMurRinCg hthaeveincdoivnfidirumale'ds tlhifaettitmhee,1p.5ro%viSdDedRtThacthaanrgyeawppilllicnaobtlebeUlSevfieedderoanl agnifitsosrueesotaftsehtaarxesistopaaidd,eupnolseistasrtyhreescheaipretssyosrtAemDSons athree pbaarstisotfhtahtesbuucshinaecshsaprrgoepiesrtcyonoftraarUyKtopEeUrmlaanwe.nNt oesstatabmlisphdmuetyntsohor puledrtianinptroacaticUeKbefixreeqdubiraesde tuosebde fpoaridthoenpaenrfyotrrmanansfceer ooff ionudreApeDnSdsenptrpoveridsoendatlhsaetrtvhieceAs.DWSshearnedtahneyshsearpeasraotreAinDstSrusmhaevnet obfeetrnanpslafecredarienetxruesctubteydaasnedttrleotratinheeyd mataayllbteimsuesbjoeucttstiodeUtKheiUnhKe.riAtantrcaentsafxeruonfleosusr, swhhaerensthine rterugsisttweraesdcfroeramtedw,itlhl eatstreattcltoar dwvaaslodroemmicsitlaemd pindtuhteyUgenniteerdalSlytaatetsthaendrawteaosfn0o.t5a%UoKf tnhaetipounraclh. aWsehperreictehoefsthhaeresshaorreAs.DTShseraereissnuobjcehctartgoebtoothadUvKalionrheemritsatnacmeptadxutayndontogiUftSs.fSeDdeRraTl igsifgteonreerastlalyteptaayxa,bthleeoenstaanteutnacxocnodnitvieonntaiol naggreeneemraelnltytportorvaindsefseraocurredshitaaregsaiinnsrteUgiSstfeerdeedrafol rtmaxaltia0b.5il%itieosfftohreUamKoiunnhteroirtavnacleuetaoxfpthaiedc. oUnKsidsetarmatipodnuftoyrathned tsrtaanmsfpedr,ubtyutriefs,ewrviethtianxsSixtaymeaprdsuotfythweildl,asteubojfetchtetoagcreeretaminenetx,caenptiniosntrsu,mbeenptatyraabnlsefeornrinagnythienssthruamreesnist terxaencsufeterrdinagndousrtasmhapreeds,taontyheSDcuRsTtodwiahnicohfhtahsebdeeepnospiataidrywaotuthldebraetereopfay1a.5b%le oonr, tihfethaemSoDunRtTorhavsalnuoet obfetehnepcaoinds, itdheeralitaiobniliitfyotno spaalye the tax (but not necessarily interest and penalties) would be cancelled. However, an agreement to transfer our ADSs will not give rise to SDRT. PFIC rules We do not believe that our shares or ADSs will be stock ooff Da iPvFidICenfdosrUUSSfefdeedrearlailnicnocmome etatxaxpautripoons"e. sBfaocrko-uurpcwuirtrhehnotltdaixnagbalendyeianrfoorrmthaetiofonrreespeoeartbinlegfPuatuyrme.eTnthsisofcodnivcilduesniodns iasnadfoatchteuralprdoecteeremdsintaotiaoUn Sthhatoilds emrawdiethanrensupaelclyt taonsdhtahruess iosrsAubDjeScst, tboycahaUnSgep.aIyfinwgeaagreenat PorFIoCth,eUrSUhSoilndteerrsmoefdsiahrayrews iwllobueldrebpeorrteeqduitroedth(ei)IntoteprnaaylaRsepveecniualeUSServadicdeitaionndttoo ttahxe oUnScheortladienrdaisstmriabyutbioenrseqanuidre(dii)uanndyergaapinplriecaalbisleedreognulthateiosnasle. Boracokth-uepr dwisitphohsoitlidoinngofmtahye ashpaprleystoorthAeDseSpsawyomuelndtisnifgtehneerUaSl nhootlbdeertrfeaailtsedtoapsraovcaidpeitaanl gaacicnuurantleestasxapUaySerhiodlednertifeilceacttisotnonbuemtabxeredorancnerutaiflilcyaotinona omfaerxke-tmo-pmt satrakteutsboarsfiasiwlsittoh rceosmpepclyt two itthheasphpalriecsabolreAcDerStisfi.cOattihoenrwreiqseuiareUmSenhtosl.dCererwtaoinulUd Sbehtorledaetresdaarseinfohtesourbjsehcet htoasbraecakl-iusepdwsiuthchhogladiinnga.nUd Scehrtoalidner"sexshcoesuslddicsotrnisbuulttiothnesi"r rtaaxteaabdlvyisoovresratbhoeuhtothldeisnegrpuelersioadndfoarnthyeosthhearrersepoorrAtinDgSosbalnigdawtioonusldthbaet tmaxaeydaaptptlhyetohitghheeostwtnaxerrsahtiepinoredffiespcot sfoitrioenacohf sshuacrhesyeoarrAtoDwShs,icinhctlhuedignaginrewqausiraelmloecnattsedre. lAatnedinttoertehset hcohladrigneginofrceseprteacint offotrheiegtnaxfinaattnricbiualtaabslseettso. eUancahusduictehdpirnefcoerdminatgioynea2r5b4eVgiondnainfognwe iGthrothuep fPirlcst such year in which our shares or ADSs were treated as stock in a PFIC would also apply. In addition, dividends received from us would not be eligible for the reduced rate of tax described above under "Taxation
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July 2012 we acquired the entire share capital of Cable & Wireless Worldwide plc for a cash consideration of £1,050 million (1,340 million). On 31 July 2019 , the Group completed the acquisition of a 100% interest in Unitymedia GmbH in Germany and Liberty Global's operations (excluding its "Direct Home" business) in the Czech Republic, (`UPC Czech'), Hungary (`sUhaPrCehHoludnegrasrrye'c)eaivneddRVoemriaznoian (s`hUarPeCs aRnodmcaansiha't)o.tTalhliinsgcrUeSat$es85a cboilnlivoenrg(ed37nabtiilolinoanl)p. roOvinde3r1oJfudlyig2it0a1l 9in,ftrhaestGrurcotuupresoinldGietsrm10a0n%y ainndtecreosntvienrgVeoddcaofomnme uNneiwcatZioeanlsaonpde. rLaitmoristeidn.tSheeeCnzoetceh2R7e"pAucbqliuci,sHitiuonngsaarnydanddispRoosmalasn".ia. SOene3n1otMe a2r7ch"A2c0q2u0i,stihtieonGsroanudp dmiseprgoesdalist"s. paOssniv3e1toOwcetorbinefrr2as0t1ru2cwtuereaciqnuIitraelyd TweitlhstrIaNCWleIaTr LS.ipm.Aite,dcrienaNtinegwthZeealelaanddinfgortoawcearshcocmonpsaindyeriantiIotanlyo.f SNeZe$n8o4te0 2m7il"liAocnq(ui6si6t0iomnsilalinodn)d.ispOosnal1s3".SepOtenm3b1eMr 2a0rc1h3 2w0e2a0c, qthueirGedroau7p6s.5o7ld%itisn1te0r0e%st iinntKeraebset linDVeuotdscafholannedMHaoltladiLnigmAitGedi.nSGeeernmoateny27fo"rAccaqsuhisciotinosnidsearnadtiodnispofosa5l.s8".b2il5li5onV.odTafhoenecoGmroplueptiPonlcoAnn2n1uFaleRbreupaorryt 2o0n1F4oormf th2e0-aFgr2e0e2m0ent, announced on 2 September 2013, to dispose of our US Group whose principal asset was its 45% interest in Verizon Wireless (`VZW') to Verizon Communications Inc. (`Verizon'), Vodafone's joint venture partner, for a total consideration of US$ 130 billion (95 billion) including the remaining 23.1% minority interest in Vodafone Italy. Following completion, Vodafone
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operators are not defined as being dominant, taking into account the merger between Vodafone and Unitymedia. In November 2019, BNetzA published a decision to lower mobile termination rates (`MTRs') in Germany from 0,95ct/min down to 0,90ct/min effective December 2019 onwards. The glide path reduces the MTR to 0,78ct/min in December 2020, and to 0,70ct/min in December 2021 until December 2022. Italy In March 2017, the national regulatory authority (`AGCOM') imposed a minimum billing period of one month for fixed and convergent offers, effective by the end of June 2017. The operators appealed AGCOM's resolution before the Administrative Court, which was rejected in February 2018. Vodafone Italy filed an appeal before the Council of State which is pending. In January 2019, AGCOM opened a national consultation on the wholesale local and central fixed access market review. The draft proposal modifies the criteria for defining competitive areas and lowers wholesale prices in non-competitive areas. In August 2019, AGCM issued its final decision, which defined the regulatory framework applicable for access to Telecom Italia (`TIM') fixed network from 2018 to 2021. Unaudited information 256 Vodafone Group Plc
relaOtivngertvoietwheStrtraantseigtiiocnRferpoomrtfGouorvwereneakncbeillFiinngan(2c8iadlsayOst)hteor minofonrtmhlaytiboinlliInngJ.uAlyG2C0O1M9, TadIMoptaenddaVdoedcaisfioonnetIotailmyproeasechreedimabnuargseremeemnetsn/trefostri:tu(it)iotnhse fcorreafitxioendoafnadncaocntviveregneenttwcoursktosmhaerrisnfgropmartJnuenresh2i0p1f7oran4Gd Aanpdril52G0;1a8n.dIn(iJi)ulthye2e0x1p9a,nthsieoCn ooufnthcielirofexSitsattiengrepjeacstseivdeVsohdaarifnogneagItraeleym'senapt.pVeaoldoaffothnee AItadlmy ihnaisstaralstiovaegTrreiebduntoalmsetartgeemitesnpt aasnsdivVeotdowafeornienIftraalsytrsutcatrutered itnheItraeliyminbutorsIeNmWenItTtoSpthAe,irwchuiscthomalerersa,dfyulhlodldecsiTsiIoMn'psutbolwisehresd(tihneF`eCborumabryin2a0ti2o0n.')U. nVioteddafKoninegIdtoalmy aTnhdeTnIaMtioinnatlenredgtuolarteotrayinajuotihnotrcitoyn(t`rOolfocofmIN')WhIaTs,pbauutsoedveirtsticmoneswulitlaltcioonnsoindetrhjeoFinixtleydreWduhcoilnegsatlheeTirerleescpoemcstivMeaorkwenteRrsehviipewlevceolvsefrrionmg c3o7n.5su%mteoraanmdinbiumsiunmesosfc2o5nn.0e%ct.ivInityMsaerrcvhic2e0s,20a,ntehwe EdCeadclleinaerefdorthriessmpoenrsgeesr.pVenoddianfgo.nTehIetanlyewanrdegTimIMe hisaivneteonfdfeerdedtococommmmitemnecnetsintoFYsu2p2paonrtdarcucnesfsortofiIvNeWyeIaTr'ss. 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Netherlands In April 2018, the EC commenced an investigation in relation to the acquisition of sports rights at several media companiedseicnisEiounroapned, itnhceluhdeainrginVg oisdsaefot nfoerZMiggayo'2s0s2p0o.rtVsocdhaafnonneel,IZreilgagnod Sisponortt.icTehpeairntvieessttiogathtieosne ipsrooncegeodiningg.sI.nISneMptaeym2b0e1r92,0C18om, tRheegnaptuiobnliaslhreedguitlsatfoinrayladuetchiosrioitny o(`nAtCerMm'i)naptuiobnlisrhateeds twhehifcinhaml doevceidsitohne oMnTthRerWatehotolesa0l.e67Fcix. eTdhiAs crcaetesstomoakrekfefteacnt ainlyJsuislyan2d01it9eanntedrreeddiuncteodfofurcrteheinr Otocto0b.5e5rc20in18Ja. nVuoadryaf2o0n2e0Z.ig2g5o7 aVpopdeaafleodnethGerAouCpMPldceAcinsniounalinRtehpeonrtaotinonFaolrcmou2r0t-aFn2d0a2t0the EU level. The national court delivered its verdict in March 2020, annulling the ACM decision; therefore, VodafoneZiggo is no longer required to provide regulated access to its cable network. Ireland In April 2019, the national regulatory authority (`ComReg') published its final decision on Universal Service funding applications by eircom Ltd (`eir') for 2010 to 2015. ComReg found that the net cost of the USO did not represent an unfair burden on eir. Subsequently, eir have challenged this
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CInzeJcuhlyR2e0p1u9b,litcheInnJaatinounaarlyre2g0u1l9a,tothrye anuatthioonraitlyr'esg(u`ElaEtoTrTy'a)uitshsoureidtya(d`CecTiUsio')nurpedjeactetidngthtehier c5oGmfpralaminetwfoilrekdpboysiVtioodnaffoorntehGe 7re0e0cMe'Hs zagsapiencsttruCmos.mTohtee,auarcgtiuoinngwailblunsoewbyinCclousdmeo3te.4o-3f.i5tsGdHozmsipneacnttrupmos.itIinonJuinneth2e01p9re, pthaeyCmTaUrkecto.nEsEulTteTd'sondetchiesidornafitncroenladtiitoionntsooWf tihnde'5sGcosmpepcltariunmt aaguacintisotnV. IondaMfoanrcehG2r0e2ec0e, tahnedCCToUsmcootnesualltleedgionng athbeusreevoisfeddocmoinndainticoenisn, wreiltahtitohnet5oGcaslplsectotrummobaiulectnioentweoxrpkescitnedAtlobatankiea pislapceenidnintgh.eEseEcToTndrahnalaf poufb2l0ic20co. nInsuJlutalytio2n01fo9,r tthhee EdeCveislsoupemdeantdeocfiasiBonUwLRithICc+ommmodeneltsfoornwthheoltehsraeleeccroitpeprieartaensdt efsibtarbelaischciensgs aprniecwingrealenvdatnhtemmaorkdeelt,litnhgeampopbroilaecwh h&olesale access & origination market. The EC urged the CTU to reconsider its conclusions. CTU ignored the comments and added the wholesale mobile market on the list of relevant markets in December 2020. In August 2019, the EC issued its Statement of Objections to O2 CZ, CETIN and T-Mobile's mobile network sharing agreement in the Czech Republic. The EC reached the preliminary conclusion that agreement restricts competition and thereby harms innovation in breach of EU antitrust rules. In April 2020, the 900MHz band will be srpesehcutrfuflmedatnodp2rxo5vMideHoznoefc2o.1nGtigHuzouspsebcltoruckmtoanedac1hx5900M0MHHzzofh3o.l6dGerH. Hz uspnegcatrryumThien Ethceonreocmenict Cauocmtipoentiftoior n1O0f8fi.c0e2 imnvilelsioting.aTtihoen sipnteocttrhuemneatcwquoirrked&hsapseact1ru5myesahradriunrgataionnd tpoo2ss0i3b5le, wcoitllhusthioenoipntitohne opfreavfiuoruths esrpeficvteruymeatrenexdteernbsyioMn.aUgnyaarudTieteledkionmforamndatTioenle2n5o8r Visoodnagfooinneg.GIrnoNupovPelcmber 2019, the national regulatory authority (`NMHH') published the reference unbundling offer on Layer 2 wholesale access product in Magyar Telekom's network. Magyar Telekom is obliged to launch Layer 2 wholesale access product from June 2020. In March 2020, NMHH published the draft reference unbundling offer on Layer 2 wholesale access product in Invitel's network. Invitel, is obliged to launch Layer 2 wholesale access product from November 2020. In March 2020, Vodafone Hungary acquired 2x10MHz of 700MHz
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regulation that reduced the MTR to INR 0.14 is due for a hearing in May 2020. Vodafone Idea's Petition in Gujarat High Court against this Regulation is pending. Vodafone & Idea's Petition in Bombay High Court challenging TRAI's IUC Regulation reducing International Termination Charges from INR 0.53 to INR 0.30 per minute is pending. In November 2019, TRAI issued a consultation paper for review of International termination charges, and Vodafone Idea recommended an increase to these charges. In August 2018, TRAI submitted its recommendations on "Auction of Spectrum" including reserve prices, bands and block sizes. DoT issued harmonisation instructions for 900MHz, 1800MHz and 2100MHz bands, making the Vodafone and Idea spectrum contiguous in these bands. Sub-judice blocks of 2100MHz have been excluded. In May 2019, the DoT harmonised the of 1800MHz in Assam, North East, Madhya Pradesh, J&K & Orissa service areas. 259 Vodafone Group Plc Annual Report on Form 20-F 2020
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made representations. In February 2020, the Communications Regulator issued a determination that Vodacom Lesotho had failed to satisfy the licence condition accordingly and further directed Vodacom Lesotho to respond within 90 days (i.e. by 10 May 2020) showing cause as to why the communications licence should not be withdrawn. In March 2020, Vodacom Lesotho submitted a comprehensive response against the revocation of its licence. The final decision on the matter iCs opmenmdiunngi.cIantitoenrnsaRtieognuallartooarmininTganinzaAnfiraiciassVueoddaacloemttehratos ccoommpplliyedwwithiththteraSnAspDaCrenreccyormeqmueinredmateinotnsspbryopDoesceedmbbyetrh2e0S1A9D. TCheRMoaimniisntgerPoofliCcyomanmduGniuciadteiolinnseshaisssrueeidssbuyedthEeACComRmoaumniincagtiRoengsuRlaetgiounlastournscAhasnsgoecdiaftiroonmo2f0S1o4u.tIhnerMn aArcfrhic2a0(1`9C,RVAoSdAac'o)minT2a0n1z6a.nIinaLpreosovithdeodacnodmMmoeznatms boinqtuhee, VReogdualcaotmionhsaasnfduritmheprleimmpelnetmatieonntetdhePrheaosfe. U1noafuthdeitegdliidnefopramthatrieocnom26m0eVndoeddafboyneCGRrAoSuAp Pblacsed on requests by their respective Communication Regulators. In June 2018, CRASA conducted a consultative workshop and commissioned a cost model to inform regulation of wholesale and retail roaming rates across the region. CRASA issued data requests to all participating regulatory authorities to support this process. In June 2019, the draft results of the cost modelling exercise were shared, prescribing formulae that will ultimately inform roaming rates. In October 2019, the
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Annual Report on Form 20-F 2020 Regulation (continued) Overview of spectrum licences at 31 March 2020 700MHz 800MHz 900MHz 1400/1500MHz 1800MHz 2.1GHz 2.6GHz 3.5GHz Quantity1 (Expiry date) Quantity1 (Expiry date) Quantity1 (Expiry date) Quantity1 (Expiry date) Quantity1 (Expiry date) Quantity1 (Expiry date) Quantity1 (Expiry date) Quantity1 (Expiry date) Country by region Europe region 2x102 (2020) GermanyC2zxe1ch0 (R2e0p3u3b)li2cxn1/0a(22x01205)(220x2190)(22x01303)(22002(92)0n3/3a)22xx2275((22002393))22xx2200(+220525(2)022x52)09(020(22094)04)02(x250232(2)0H2u5n) g1axr5y22(x210020(2)0I3ta5ly)622xx1100(2(2003279))22xx1100(2(2002292))2nx/1a02(x210529(2)02202()220x2195) (22x01257)(220x2290)+22x51(52+0529(2)06201()220x3145) (22x012(92)08209)(220x357()220x3553)6(250029(2)0U35K)46 nA/alb2axn1ia0n(/2a023x31)02x(21073.44)202x(820(22303) 12)x5n/.a8 22xx914(.280(3210)222x)125x+250(+22052(52)023x32)05+02(02(023083)0S)pna/ian2nx/2a32(x21003(02)023x11)423x(1200(3200)228x)5n3/a(220x2290)(22x04370)(220x2145)+25x(52703(200)224x)220x+5270((22002310))U90na(u2d0i3t8ed) Nineftohremrlaatniodns 2n6/a22Vxo10da(f2o0n2e9G) r2oxu1p0P(2lc030) n/a 2x20 (2030) 2x20 (2020) 2x30 (2030) n/a Ireland n/a 2x10 (2030) 2x10 (2030) n/a 2x25 (2030) 2x15 (2022) n/a 1055 (2032) Portugal n/a 2x10 (2027) 2x5 (2021) n/a 2x6 (2021) 2x20 (2033) 2x20+25 (2027) n/a 2x53 (2027) 2x143 (2027) Romania n/a 2x10 (2029) 2x10 (2029) n/a 2x30 (2029) 2x15 (2031) 15 (2029) 2x20 (2025) Greece n/a 2x10 (2030) 2x15 (2027) n/a 2x10 (2027) 2x20+5 (2021) 2x20+20 (2030) n/a 2x153 (2035)
2xO1v0e(r2v0ie2w9)S1t3ra2txeg1i5c(R20ep2o3r)t1G4 onv/aernn/aanNceotFeisn:a1nc2i3als4O5t6he7r 8in9foSrimngatlieo(no7r0u0nMpaHirzed8)0b0lMocHkzs o9f00spMecHtrzu1m40a0re/1u5s0e0dMfoHrzas1y8m00mMetHrizc2d.a1tGa H(nzo2n.-6vGoiHcez)3u.s5eG; HblzocQkuqaunatintyti1ty(Ehaxspibreyednartoeu) nQdueadnttoityth1e(nEexapriersytdwahteo)leQnuuamntbiteyr1. T(Ehxepailrlyocdaattieo)nQoufa2n.t1iGtyH1z(Ewxipllircyhdanagtee)tQouthanetfiotyll1o(wEixnpgi:riyndJaatneu)aQryua2n0t2it1y1w(iEllxhpaivrye d2axt1e5)MQHuazn(t2it0y410()Eaxnpdir2yxd5a(t2e)02Q5u)a; nintitJya1nu(Earxypi2r0y2d6awtei)llChoauvnetr2yxb2y0MreHgizon(2A04fr0i)c.aB, MlocidkdslewEitahsint atnhed sAasmiae-PspaecciftircumregbiaonndIbnudtiaw8inth/adnif/faer(e2n0t2l1ice2n0c3e6)exnp/air(y2d0a2t1es2a0r3e7s)ep(2a0ra3t0ely20id3e6n)t(if2i0e3d6. )UnK/aVaolldUacKomsp:eScotruuthmAlifcreicnac9esna/arenp/aer2pxe1tu1anl/sao2axn1y2d2axt1es5+g5ivne/naanr/eathVeodoanceosmfr:oDmewmhoiccrhatliicceRnecpeufbeleisc boefcCoomnegopany/aab2lex,1a0n(d20w3h7e)re2xn6o(d2a0t2e8is) ng/iave2nx1th8is(2m0e2a8n)s2txh1a0t +li1c5en(c2e03fe2e)sna/lare2axd1y5a(p2p0l2y6.)IrLeelasondtho 1n0/a5M2xH20z1i0n 2cxit2ie2s1,085nM/aH2xz3i0n1r0eg2ixo1n5s.1H0 u4n0g1a0ry401700801M(2H0z3,62).16G01H1z(a2n0d223).5MGoHzzam bcioqnudeitnio/ana2lxo1p0ti(o2n0s39o)f 2axf8ur(t2h0er39fi)vne/aye2axr8ex(2te0n3s9i)on2xto152+01400.(2A0l3b8a)nina/a2sxp1ec2t.r2u(m20a3c9q)uTiraendzfarnoima 2PxL1U0S('2e0x3i3t)frno/am2mx7a.r5ke(t2.0I3n1d)ian/caom2xp1r0ise(2s02321s)e2pxa1ra5te(2s0e3rv1i)cne/aar2exa7l+ic2exn1c4es(2w0i3th1)aTvuarrkieetyyno/fae2xxp1ir0y(d2a0t2e9s.) V2xo1d1ac(o2m02'3s)Sno/uath2xA1f0ri(c2a0n2s9p)e2cxtr1u5m+5lic(2e0nc2e9s) a2rxe1r5e+n1e0w(e2d0a2n9n)una/laly2.xA1s.4p3a(r2t 0o2f9th) eAmusitgrraaltiiao1n2t2oxa5n(e2w03l0ic)e2nxs1in0g(r8e5g0iMmeHtzh)e(n2a0t2io8n) a2lxr8eg(aunlantuoarlh) ans/ais2sxu3e0d (V2o0d2a8c)o2mx2a5s+e5rv(i2c0e3l2ic)enn/cae3a0n(d20a3n0e)twEogrykptlinc/eannce/aw2hxi1c2h.5w(i2ll0p3e1r)mni/taV2oxd1a0co(2m03to1)o2ffxe2r0m(o2b0i3le1)ann/dafnix/aedSasfearrviiccoems.:TKheensyearvni/cae2axn1d0n(e2t0w2o6r)k2lxic1e7n.5ce(s2h0a2v4e) na/2a02yx2ea0r(d2u0r2a4ti)o2nxa1n0d(w20il2l2e)xnp/iare4i0n(22002284.)1G0hVanoadanc/aom2x's5 L(2e0so3t3h)o2sxp8ec(2tr0u2m9)l1ic3enn/caes are renewed annually. N.B. 40MHz in 2.6GHz column is actually 2.3GHz. 11 3.7GHz spectrum for 5G trial, which was launched during December 2019. 12 Australia table refers to Sydney/Melbourne only. In total VHA has: 700MHz band 2x5MHz across Australia. 850MHz band 2x10MHz in Sydney/Melbourne/Brisbane/Adelaide/Perth and 2x5MHz across the rest of Australia. 900MHz band 2x8MHz across Australia. 1800MHz band 2x30MHz in Sydney/Melbourne, 2x25MHz in Brisbane/Adelaide/Perth/Canberra, 2x15MHz in South-West Western Australia, 2x10MHzliicneVncicetoforriac/NomormthenQtsu,eteonwslahnicdhaVndod2axf5oMneHGzhiannDaasruwbmini/Ttteadsmfeaendiab/aScokuathndQfuineealnslilcaenndc.ei2s.p1eGnHdiznbg.an2d63(eVxcolduadfionngesGhorortu-ptePrmlc2A.1nGnuHazl Rliceepnocret so)n, VFoHrAmh2o0l-dFs220x2205MHz in Sydney/Melbourne, 2x20MHz in Brisbane/Adelaide/Perth, 2x20MHz Darwin/Hobart, 2x10MHz in Canberra and 2x5MHz in regional Australia. 3.5GHz band VHA acquired 60MHz as part of a joint venture. VHA only has access to 30MHz at this point in time. 13 Ghana licence renewed for ten years; however, Vodafone Ghana has petitioned the Ministry of Communications and Ministry of Finance to grant the licence for 15 years. This forms part of the ongoing licence renewal negotiations, for which the deadline has been extended. 14 Ghana NCA submitted a provisional
Annual Report on Form 20-F 2020 Regulation (continued) Mobile Termination Rates (`MTRs') National regulators are required to take utmost account of the Commission's existing recommendation on the regulation of fixed and MTRs. This recommendation requires MTRs to be set using a long run incremental cost methodology(.sOhivlleirntgh)e0l.a9s9t 0th.9re9e0y.9ea9rsGMhaTnRa s(peefsfwecatisv)e4.f0o0r o4u.0r0su4b.0si0dNiaoriteess:w1eArellasMfTolRloswasre: Cbaosuendtroynbeynrdegoifofnin2a0n1c8ia1l 2y0e1a9r 1va2l0u2e0s.121MATpRrilc2h0a2n0g2esEaulrroeapdeyreagninoonuGnceerdmatonybe(imcpenletms)e1n.t0e7d0a.f9te5r01.9A0p0r.i7l 820It2a0lyar(e icnecnltusd)e0d.9a8t 0th.9e0cu0r.7re6n0t .r6a7teUoKr w(GheBre£apgelnidcee)-p0a.t4h9o5r0a.4f8in9a0l .d4e7c9is0io.4n6h8aSspbaeienn(decteenrmtsi)n0e.d70by0.t6h7e 0n.a6t4ioNnaelthreegrlualnadtosr(yacuetnhtosr)it0y..5381IN0.5821001.858M1TIRrelhaansdb(eencecnhtasl)l0en.7g9ed0.i7n9th0e.5B5oPmorbtauygaHli(ghcCenotusr)t0f.o4r2M0.T3R9 0re.3d9uc0t.i3o6n Rfroomma0n.i1a4(toc0e.n6t,s)w0h.i9c6h0is.9p6en0.d7i6ngGfrieneaclehe(arcineng.tsV) o0d.9a5fo8n0e.9a4n6d0Id.6e2a2'sCpzeeticthioRneipnuDbleilchi(CHZigKh)C0o.2u4r8t a0n.2d4G8u0j.a2r4a8t HHiugnhgCaroyur(tHrUesFp)ec1t.i7v1el1y.7a1ga1i.n7s1t ATRlbAanI'ias p(AreLvLio)u1s.4M8T1R.2r2ed1u.1c1tioAnfrfircoam, M0.i2d0dlteoE0a.1st4ainsdpeAnsdiain-PgafcoirfifcinraelghioenarIinndgi.aU(rnuapuedeiste)3d 0in.0fo6rm0.a0t6io0n.0266V4 oVdoadcaofmon: eSGourtohuAp fPrlicca (ZAR) 0.13 0.12 0.10 Vodacom: Democratic Republic of Congo (US$) 2.40 2.00 2.00 Lesotho (LSL/ZAR) 0.20 0.15 0.12 9.00 Mozambique (MZN) 0.48 0.39 0.37 Tanzania (TSH) 15.60 10.40 5.20 2.60 Turkey (lira) 0.03 0.03 0.03 Australia (AUD cents) 1.70 1.70 1.70 Egypt (PTS/Piastres) 11.00 11.00 11.00 Safaricom: Kenya
COovmeprvanieyw4SAtrHatiesgtoicryRaenpdordteGveolvoeprmnaenncteofFtohremC2o0m-FpacnroysHs riestfoerryenacnedgdueivdeeloUpnmauednitte2d55inCfoornmtaacttiodnetFaiinlsanBcaicaklscOovtheerrSinhfaorremhoaltdioenr iTnhfoerimnfaotiromna: tCioonnitanctthdisetdaoilcsufmorenCtotmhaptuitserresfhearreenacnedd AinStThe2f4o9lloShwairneghotalbdeler winiflol rbmeainticolnu:dAedrtiincleosurofAAnnssuoacliRateiopnoratnodnaFpoprlmica2b0l-eFEfnogrl2is0h2l0awfile2d50wCithhiethfeESxEecCut(itvhee's`2s0t2ra0teFgoicrmre2v0ie-wF')1.4Tthoe2i7nfCorhmieaftiFoinnainnctihailsOdfofcicuemr'esnrtewviiellwb2e8upanddat2ed9 aNnodtesu1p"pBleamsiesnotefdpraetptahreattiiomne"o1f4f5ilitnog1w53ithNothtee 2SE"CReovrelnauteerdaimsaegngdreedgaitfionnecaensdsasreyg.mNeonotathl earnainlyfosirsm"a1ti5o4ntion1t5h7isNdoocteum7:e"nDt iisscionnctliundueeddionptehreat2i0o2n0s aFnodrmas2se0t-sFaonrdilnicaobirlpiotireastehdelbdyforerfsearelen"c1e7i2ntaonadn1y7f3iliNngotseb1y1u"sPurnodpeerrttyh,epSlaenctuarintideseqAucipt.mPelenat"se1s7e7ea"nDdo1c7u8mNenottseo2n7d"iAspclqauyi"siotinonpsagaend25d1isfpoorsainlsfo"r2m1a1titoon2o1n3hNoowteto28ac"cCeossmtmheitm20e2n0tsF"o2r1m4240B-FBaussifnileesds wovitehrvthieewSEHCig.hTlihgeht2s0o2f0thFoerymea2r02-Fanhdas3nOoturbebeunsianpepssroavteadgolrandcisea6pparnodv7edKbeyytthreenSdEsCshnaoprinhgasotuhreinSdEuCstpryas8seadndju9dgOeumrebnutsuinpeosns tmheodaedle1q0uaacnydo1r1acCchuireafcEyxoefctuhteiv2e0's20strFaotermgic2r0e-vFi.eIwtem14Ftoor2m72O0u-Fr fcinapanticoinalLpoecraftoiromnainnctehi3s0dtooc3u9mSenutstPaaingaeb1leIdbeunstiniteysosf4D0itroec5t1orNs,osteen2io"rRmevaennagueemdiesnatgagnredgaadtvioinsearsndNsoetgamppenlitcaalbalnealy2siOs"fferSsetgamtisetnictsalarnedveenxupeecatnedd ptirmoefitta1b5le4Ntoo1t 5ap7pRliecgaubllaetion3 2K5e6y tionf2o6r4m4aCtioOnr3gAanSisealteicotneadl fsitnruanctcuiarel dNaotateS3e3le"cRteedlaftiendanucnidalerdtaatkain2g7s2"32B21Ctaop2it2a9lisNatoioten1a2nd"IinnvdeesbtmteednntesssinNaostsoacpipaltiecsabalnedjo3iCnt Rareraasnognesmfoenr ttsh"e1o7f9fetroa1n8d2uNseootef 1p3ro"cOeethdserNinovt easptpmliecnatbsl"e1833D4DRiPsrkofpaecrttoyr,spPlarnintcainpdalerqisukipfmacetnotrsCahniedfuEnxceecrtuatiinvtei'esss6t2rattoeg7i1c r4eIvniefowrm14attioon27onCthhieef Financial Officer's review 28 and 29 Note 11 "Property, plant and equipment" 177 and 178 4A Unresolved staff comments None 265 Vodafone Group Plc Annual Report on Form 20-F 2020
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BthyetGheroirunpa'tsuarses,eftosr,woarrrde-sltoruocktiunrginsgtactehmaregnetss ianrceuirnrheedreasntalyrepsrueldtiocftivane,ascpqeuciusliatitoivneoarnddisipnovsoiltvioenr;iskeaxnpdecutnactieorntasianntydbaescsuaumspetitohneys rreeglaatredtinogevtheentGs raonudpd'sepfuetnudreonrecvierncuume,sotapnecraetsinthgaptrwofililt,oacdcjuurstiendthEeBfIuTtuDrAe.,TahdejuresteadreEaBnIuTmDbAermoafrfgaicnt,ofrrsetehcaatschoufllodwc,aduesperaecctiuaatilornesaunldtsaamndordtiesvaetiloonpmcheanrtgsetso, dfoifrfeeirgnmeaxtecrhiaalnlygefrroamtest,htoasxereaxtepsreasnsdedcaopriitamlpelxiepdenbdyittuhrees;efodrewvealrodp-lmooenkitsnginsttahteemGeronutsp.'Ts hfiensaenfcaicatlocrosnidnictliuodne, ,ebaurntianrgesnaontdl dimistitreibduttoa,btlheefufonldloswanindgo: thecrhfaancgteosrsinthsattattuhteoBryotaarxd rtaatkeessainndtoparoccfiotumnitxi;nadnedtermchinainnggesthreesluevlteinl gofddirievcidtleynodrs;indeirxepcetlcytaftrioomns trheegaCrOdiVngIDth-1e9Gpraonudpe'ms aicc.cAessretvoiaedweqoufathteefruenadsoinngs fworhyitsacwtuoarkl irnegsuclatspaitnadl rdeeqvueilroepmmenentstsanmdayshdairfefebrumybaatecrkiapllryogfrraommmthees,eaxnpdecthtaetiGonrosudpis'cslfousteudreodriivmidpelnieddsworitihtisnefxoirswtinargdi-nlovoekstimngensttas;teamndentsthceanGbroeufpo'usnadbuilnitdyerto"Psartiinscfiypawlorrikskinfgacctaopristaalnrdequunicreermtaeinnttsie; s"cohnanpgaegsesin62fotroei7g1n oefxcthhiasndgoecruamteesn; t. Achllansugbesseiqnutehnetrwegriuttlaentooryr ofrraaml feowrworakrdin-lowohkiicnhgtshteatGemroeunptsoaptetrriabteusta;blethteoitmhepaCcotmofpraengyuolartoarnyyamnedmlebgearlopfrothceeeGdrionugps ionrvaonlvyipngertshoensGarcotuinpgaondn tohfesicrhbeedhuallefd 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. References in this document to information on websites (and/or social media sites) are included as an aid to their location and such information is not incorporated in, and does not form part of, the 2020 Annual Report on Form 20-F. Ernst & Young LLP has neither eaxnadmsienrevdic,ecsowmipthileedx,isntoinrgpnereftowrmorekds,atneychpnroolcoegdiuesre, sprwoidthucrtesspanedctsteorvthiceefso;rUwnaardu-dliotoedkiinngfosrtmateatmioennt2s6. 8AVccoodradfionngelyG, ErorunpstP&lcYoung LLP does not express an opinion or provide any other form of assurance on such information. general economic and political conditions in the jurisdictions in which the Group operates and changes to the associated legal, regulatory and tax environments; increased competition; levels of investment in network capacity and the Group's ability to deploy new technologies, products and services; rapid changes to existing products and services and the inability of new products and services to perform in accordance with expectations; the ability of the Group to integrate new technologies, products
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who receives both fixed and mobile services (also known as unified communications) on a single bill or who receives a discount across both bills. Customer costs Customer costs include acquisition costs, retention costs and expenses related to ongoing commissions. 269 Vodafone Group Plc Annual Report on Form 20-F 2020
Annual Report on Form 20-F 2020 Definition of terms (continued) Customer value management (`CVM') The delivery of perceived value to identifiable customer segments that results in a profitable return for the Company. Depreciation and other amortisation The accounting charge that allocates the cost of a tangible or intangible asset to the income statement over its useful life. This measure includes the profit or loss on disposal of property, plant and equipment and computer software. Direct costs Direct costs include interconnect costs and other direct costs of providing services. Emerging consumer customers Consumers in our Emerging Markets. Emerging Markets Emerging Markets include Turkey, South Africa, Tanzania, the DRC, Mozambique, Lesotho and Egypt. Enterprise The Group's customer segment for businesses. Europe region The Group's region, Europe, which comprises the European operating segments. FCA Financial Conduct Authority. Fixed broadband customer A fixed broadband customer is defined as a customer with a connection or access point to a fixed data network. Fixed service revenue Service revenue relating to provision of fixed line (`fixed') and carrier services. FTTC Fibre-to-the-Cabinet involves running fibre optic cables from the telephone exchange or distribution point to the street cabinets twhehiqcuhatrhteernecnodnende3ct1tMo aarscthan2d0a1r9d.pIAhoSne18linInetetornpartoiovnidael Abrcocaodubnatnindg. FSTtaTnHdaFrdib1r8e-"toR-ethvee-nHuoem". eTphreovpridevesioauns ernevde-tnou-eenadccfoiburnetionpgtisctacnodnanredctthioant athpeplfiueldl dtoistthaencGerforuopm'sthsteateuxtcohryanrgeesutlotsthfoercaulsltroempeorr'tisnpgrepmeriisoedss. FupRCtoFainndaninccialul dRienpgotrhteinqguCarotuenr ceinl.dFedre3e1cMasharfclhow20O18p.erIaCtTingInffroeremcaatsihonflaonwdacfotemrmcausnhicfalotiwonssintercehlantoiolongtyo. tIaFxRaStioInnt,eirnntaetrieosnt,adl iFviindaenncdisalreRceepivoertdinfgroSmtaansdsaorcdisa.teIFs RanSd1i5nvInestetmrneantitos,ndalivFidineanndcsiaplaRidetpoorntoinng-cSotnatnrodallridng15sh"aRreehvoelndueersfrionmsuCbosindtiraarcitess,wrietshtrCuuctsutorimngercso".stTshaeriascincgoufrnotmingdpisoclriectye ardesotprutecdtubryintgheplGanrsouapndonlic1enAcperialn2d0s1p8e.cItFrRumS 1p6ayImnteenrntsa.tFiorneaelcFaisnhafnlcoiwal (Rperep-osrpteincgtruSmta)ndOapredra1t6in"gLferaeseesc"a.shThfleoawccaoftuenrtcinagshpfolloicwysaidnorpetleadtiobnyttohetaGxarotiuopn,oinnt1erAespt,ridl i2v0id1e9n. dInstreercneeitvoefdTfrhoimngsas(s`oIocTia't)esTahnednientwveosrtkmoefntpsh, ydsiivciadleonbdjsepctasidemtobneodnd-ecdonwtirtohlleinlegctsrhoanriechso, lsdoefrtws ianres,usbesnidsoiarrsi,easn, dbuntebtwefoorrkecreosntnrueccttuivriitnyg, icnocsltusdainrigsibnguilftr-oimn mdiosbcirleeteSrIeMstrcuacrdtusr,itnhgatpelannasblaensdthliecseencoebjaencdtsstpoeccotrlulemctpdaaytma eanntds.eGxcbhpasnGgeigcaobmitms (ubnililciaotnios)nsofwbitihtsopneer saencoothnedr. oGrSaMdAataGblaosbea. lIPSyIsntteemrnefot rPMrootobciolel Cisotmhemfuonrmicaattiionnws hAicsshodcaiatatioisnsHenStPfAro+mAonneevcoolmutpiounteorftohiagnho-tshpeeredonpathcekeint taecrcneests. I(P`H-VSPPNA'A). vAinrtueavlopluritvioanteonfetthwirodrkge(n`VerPaNtio')ni(s`3aGne')twteocrhkntohlaotguystehsaat eshnahraendceteslethceomexmisutinnigca3tiGonnseitnwforarkstrwuictthurhei,gshuecrhspaesetdhsefionrtetrhneeet,ntdo upsreorv.iIdAeSre1m7oItneteorfnfiacteiosnoarl iAndcicvoiudnutainl ugsSetrasnwdaitrhds1e7cu"rLeeaacsceess"s. tTohtehepirrevoiroguasnilseaatsioena'cscnoeutnwtionrgk.sMtanadrka-rdtot-hmaat rakpeptlMiedartko-ttoh-emGarrokuetp'osrsftaaitruvtoarluyereascuclotsunfotirnagllrerefeprosrttionagcpceoruiontdisngupfotrotahnedvianlculeudofinagn
asset or liability based on the current market price of the asset or liability. Mbps Megabits (millions) of bits per second. Mobile broadband Mobile broadband allows internet access through a browser or a native application using any portable or mobile device such as smartphone, tablet or laptop connected to a cellular network. Mobile customer A mobile customer is defined as a subscriber identity module (`SIM'), or in territories where SIMs do not exist, a unique mobile telephone number, which has access to the network for any purpose, including data only usage. Mobile customer revenue Represents revenue from mobile customers from bundles that include a specified number of minutes, messages or megabytes of data that can be used for no additional charge (`in-bundle') and revenues from minutes, messages or megabytes of data which are in excess of the amount included in customer bundles (`out-of-bundle'). Mobile in-bundle and out-of-bundle revenues are combined to simplify presentation. Mobile service revenue Service revenue relating to the provision of mobile services. Mobile termination rate (`MTR') A per minute charge paid by a telecommunications network operator when a customer makes a call to another mobile or fixed network operator. Unaudited information 270 Vodafone Group Plc
Overview Strategic Report Governance Financials Other information MVNO Mobile virtual network operators, companies that provide mobile phone services under wholesale contracts with a mobile network operator, but do not have their own licence or spectrum or the infrastructure required to operate a network. Net debt Long-term borrowings, short-term borrowings, short-term investments, mark-to-market adjustments and cash collateral on derivative financial instruments less cash and cash equivalents and excluding lease liabilities and borrowings specifically secured against Indian assets. Next-generation networks (`NGN') Fibre or cable networks typically providing high-speed broadband over 30Mbps. Net promoter score (`NPS') Net promoter score is a customer loyalty metric used to monitor customer satisfaction. Operating expenses (`Opex') Operating expenses comprise primarily sales and distribution costs, network and IT related expenditure and business support costs. Operating free cash flow Cash generated from operations after cash payments for capital additions and lease payments (excludes capital licence and spectrum payments) and cash receipts from the disposal of intangible assets and property, plant and equipment, but before restructuring costs from discrete restructuring plans. Organic growth An alternative psetarftoiornmsainncsetamlleedasounretowwheircshapnrdesreonotfstoppesrfaocrrmoasns ctheeocnoavecroamgepaarraebal,eabnadsilisn, kinedtetromtsheofcomreerngoedr easndtharocuqguihsiatiboancakchtaivuiltyin(fnraosttarbulcytubrye ewxhcilcuhdicnagnVboedoawfonneed,NleewaseZdeaolraandmaixndotfhbeoathc.qRuierteudrnEuornoCpeaapnitaLlibEemrtpyloGyleodba(`lRaOssCetEs)',)mSeoevepmageent3s9infofroaresiugnmmexacrhyaonfgethreatbeassiasndofthcaelcimulpaaticotno.fRtheeguimlaptiloenmIemnptaatciotnofoifnIdFuRsStry16sp"eLceifaiscelsa"w. OatnhderreEguurloatpieonOsthcoevr eEruinrogpteelmecaormkemtsuinnicclautdioenPsoerrtvuigcaels,.ITrehleanimd,pGacret eocfer,eRguomlatainoina,oCnzseecrhviRceepreuvbelincu,eHiunnEguarroyp, eAalnbamnaiarkaentsdcMomalptar.isOetshtehreMefafrekcettosfOcthhaenrgMesairnkeEtsurionpcleuadnemToubrkileeyt,eErmgyinpattiaonndrGatheasnaan.dOcthhearngreevseinnuoeuOt-tohfe-brurenvdelenuroeaimncinlugdreesvceonnuneesclteiossntfheeesin, cerqeuaispemiennvtirseitvoernrueev,einnuteerse.sRt einpcoortmede agnrodwlethasReerpeovretneudeg. rPoawrttnheirsmbaarskeedtsonMaamrkoeutnstisnrwephoircthedthienGeurorouspahsadseetenrtmeriendeidntuondaepraIrFtnReSr.aRgreesetmofenthtewWithoraldlo(c`RalomWo'b)ilreegoipoenraTthoer eGnraobulpin'gs raegraiongne: RofesVt oodfatfhoenWe'sorglldo,bcaolmpproridsuincgtsVanoddasceorvmic, eTsutrokebye amnadrkOettheedriMn athrkatetospoepraetroart'ins gtesrerigtomreynatsn.dReexstternudctiunrginVgocdoasftosnCe'ossrtseainchcuirnrteodsbuychthmeaGrkroeutsp. PfoelnloewtraintigonthNeuimmpbleermoefnStIaMtiosninofadcioscurnettreyraesstarupcetrucreinngtagpleaonsf tthoeimcopurontvrey'osvpeoraplulleaftfioicni.enPceyn.eRtraGtiUosnRcaenvebneuienGeexnceersastionfg1U00n%itsddueesctoribcuessttohmeearvseorawgneinngummboerreothfafnixoedneliSnIeMse.rPveictaebsyttaekeAnpbeytasbuybtsecirsibaerms.eaRsouarme ionfgdAatlalouwsasgceu. sOtonme eprestatobymteakise acamllisl,lisoenngdiagnadbyrteecse.iPvepstePxetrscaenndtadgaetapooinntost.hReAr oNpeRraadtoiorsa'cmceosbsilneentwetowrokriksst,huesupaalrltyowf ahimleotbrailveetlelilnegcoambmrouandi.cSaetirovnicsesyresvteemnuwe hSiecrhvipcreorveivdeesnuceelcluolmarpcriosveesraalgleretvoemnuoebirleelaptheodnteostvhieaparoravdisioioinntoefrfoancgeo, imngansaegrevdicbesyitnhcoluusdainndgs, bouftbnaoset limited to: monthly access charges, airtime usage, roaming, incoming and outgoing network usage by non-Vodafone customers and interconnect charges for incoming calls. Smartphone penetration The number of smartphone devices divided by the number of registered SIMs (excluding data only SIMs) and telemetric applications. SME Small and medium sized enterprises. SoHo Small-office-Home-office customers. Spectrum The radio frequency bands and channels assigned for telecommunication services. Supranational An international organisation, or union, whereby Member States go beyond national boundaries or interests to share in the decision-making and vote on issues pertaining to the wider grouping. Vodafone Business Vodafone Business is part of the Group and partners with businesses of every size to provide a range of business-related services. VoIP Voice over IP is a set of facilities used to manage the delivery of voice information over the internet in digital form via discrete packets rather than by using the traditional public switched telephone network. VZW Verizon Wireless, the Group's former associate in the United States. 271 Vodafone Group Plc Annual Report on Form 20-F 2020
Annual Report on Form 20-F 2020 Selected financial data The selected financial data shown below include the results of Vodafone India as discontinued operations up to 31 August 2018, the date the transaction completed in the prior financial year. In the current financial year, the data includes the results of the acquired European Liberty Global assets after the acquisition completed on 31 July 2019. The results of Vodafone New Zealand are included up to 31 July 2019 when the sale completed. At/for the year ended 31 March 2020 2019 2018 2017 2016 Notes: 1 See note 8 to the consolidated financial statements, "Earnings per share". Earnings and dividends per ADS is calculated by multiplying earnings per ordinary share by ten, the number of ordinary shares per ADS. 2 The final dividend for the year ended 31 March 2020 was proposed by the Directors on 12 May 2020 and is payable on 7 August 2020 to holders on record as of 12 June 2020. The total dividends have been translated into pence and US dollars at 31 March 2020 for the purposes of the above disclosure but the dividends are payable in US cents under the terms of the ADS depositary agreement. Consolidated income statement data (m) Revenue 44,974 43,66646,57147,631 49,810 Operating profit/(loss) 4,099 (951) 4,2993,725 1,320 Profit/(loss) before taxation 795 (2,613)3,8782,792 (190) Profit/loss) for financial year from continuing operations (455) (4,109)4,757 (1,972)(5,127) Loss for the financial year (455) (7,644)2,788 (6,079)(5,122) Consolidated statement of financial position data (m) Total assets 168,168 142,862145,611 154,684169,107 Total equity 62,625 63,44568,607 73,71985,136 Total equity shareholders' funds 61,410 62,21867,64072,20083,325 Earnings per share1 Weighted average number of shares (millions) Basic 29,442 27,607 27,770 27,971 26,692 Diluted 29,442 27,607 27,857 27,971 26,692 Basic (loss)/earnings per ordinary share (3.13)c (29.05)c 8.78c (22.51)c (20.25)c Diluted (loss)/earnings per ordinary share (3.13)c (29.05)c 8.76c (22.51)c (20.25)c Basic (loss)/earnings per share from continuing operations (3.13)c (16.25)c15.87c(7.83)c (20.27)c Cash dividends1,2 Amount per ordinary share (eurocents) 9.00c 9.00c15.07c14.77c14.48c Amount per ADS (eurocents) 90.0c 90.0c 150.7c 147.7c 144.8c Amount per ordinary share (pence) 7.96p 7.95p 13.33p13.00p11.45p Amount per ADS (pence) 79.6p 79.5p 133.3p130.0p114.5p Amount per ordinary share (US cents) 9.86c 10.10c17.93c 18.52c16.49c Amount per ADS (US cents) 98.6c 101.0c179.3c185.2c164.9c Unaudited information 272 Vodafone Group Plc
certifiably reforested via PrintReleaf the world's is made from 50% recycled and 50% virgin fibres. References to Vodafone are to Vodafone Group Plc and references to Vodafone Group are to Vodafone Group Plc and its subsidiaries unless otherwise stated. Vodafone, the Vodafone Speech Mark Devices, Vodacom and The future is exciting. Ready? are trade marks owned by Vodafone. Other product and company names mentioned herein may be the trade marks of their respective owners. The content of our website (vodafone.com) should not be considered to form part of this Annual Report or our Annual Report on Form 20-F. © Vodafone Group 2020 Designed and produced by Radley Yeldar | ry.com Our purpose: Planet The paper content of this publication has been first platform to measure paper consumption and automate reforestation across a global network of reforestation projects. Text pages are printed on Revive 50 silk which The cover is printed on Revive 100 silk, made entirely from de-inked post-consumer waste. Both products are Forest Stewardship Council® (`FSC'®) certified and produced using elemental chlorine free (`ECF') bleaching. The manufacturing mill also holds ISO 14001 accreditation for environmental management TX_AD467EB02263 Certificate of Reforestation PR I N T R E L E A F H E R E B Y C E R T I F I E S T H A T Vodafone has offset 16,940 Kg of paper consumption by reforesting 449 standard trees at the Reforestation Project located in Ireland. ACCOUNT ID ACT B44719E7E15D TRANSACTION ID TX AD467EB02263 TRANSACTION DATE 2020-05-15 REFORESTATION PROJECT Ireland KG OF PAPER 16,940 STANDARD TREES 449 You Printed. We Planted. SGS International, the world's leading inspection, verification, testing and certification company, certifies our Global Forestry Partners and leads field audits across our network of projects to verify 100% net survival of our forests. www.printreleaf.com Software built in Denver, Colorado. Trees planted around the world.
Vodafone Group Plc Registered Office Vodafone House The Connection Newbury Berkshire RG14 2FN England Registered in England No. 1833679 Telephone +44 (0)1635 33251 Website vodafone.com Contact details Shareholder helpline Telephone: +44 (0)370 702 0198 (In Ireland): +353 (0)818 300 999 Investor Relations ir@vodafone.co.uk vodafone.com/investor Media Relations vodafone.com/media/contact Sustainability vodafone.com/sustainability Vodafone Group Plc Annual Report on Form 20-F 2020
Index of Exhibits to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2020
1.1 Articles of Association of the Company, as adopted on June 30, 1999 and including all amendments made on July 25, 2001, July 26, 2005, July 25, 2006, July 24, 2007, July 29, 2008, July 28, 2009, July 27, 2010, January 28, 2014 and July 27, 2018 (incorporated by reference to Exhibit 3.1 to Form 6-K (File No. 001-10086), filed with the Securities and Exchange Commission on March 26, 2019).
2.1 Indenture, dated as of February 10, 2000, between the Company and Citibank, N.A., as Trustee, including forms of debt securities (incorporated by reference to Exhibit 2.1 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2018 (File No. 001-10086), filed with the Securities and Exchange Commission on June 8, 2018).
2.2 Agreement of Resignation, Appointment and Acceptance dated as of July 24, 2007, among the Company, Citibank N.A. and The Bank of New York Mellon (incorporated by reference to Exhibit 2.2 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2008 (File No. 001-10086), filed with the Securities and Exchange Commission on June 9, 2008).
2.3 Fourteenth Supplemental Trust Deed dated 5 July 2019 between the Company and The Law Debenture Trust Corporation p.l.c. further modifying and restating the provisions of the Trust Deed dated 16 July 1999 relating to a Euro 30,000,000,000 Euro Medium Term Note Programme.
2.4 Trust Deed dated March 12, 2019 between the Company and The Law Debenture Trust Corporation p.l.c. in relation to the Group's £1,720,000,000 1.20 per cent Subordinated Mandatory Convertible Bonds due 2021 (incorporated by reference to Exhibit 2.4 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2019 (File No. 00110086), filed with the Securities and Exchange Commission on June 7, 2019).
2.5 Trust Deed dated March 12, 2019 between the Company and The Law Debenture Trust Corporation p.l.c. in relation to the Group's £1,720,000,000 1.50 per cent Subordinated Mandatory Convertible Bonds due 2022 (incorporated by reference to Exhibit 2.5 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2019 (File No. 00110086), filed with the Securities and Exchange Commission on June 7, 2019).
2.6 Deposit Agreement among Vodafone Group Plc, Deutsche Bank Trust Company Americas, as depositary, and the owners and beneficial owners from time to time of American Depositary Receipts, dated as of February 27, 2017 (incorporated by reference to Exhibit 2.6 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2017 (File No. 001-10086), filed with the Securities and Exchange Commission on June 9, 2017).
2.7 Form of American Depositary Receipt (included in Exhibit 2.6).
2.8 Description of Securities Registered under Section 12 of the Exchange Act.
4.1 Facility Agreement in relation to the Group's US$3,935,000,000 revolving credit facility dated 27 February 2015 among the Company and various lenders (incorporated by reference to Exhibit 4.9 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2015 (File No. 001-10086), filed with the Securities and Exchange Commission on June 8, 2015).
B-1
4.2 Lender Accession Agreement between Royal Bank of Canada, the Royal Bank of Scotland plc as agent and Vodafone Group Plc effective as of 15 December 2015 in relation to the Group's US$3,935,000,000 Revolving Credit Facility (incorporated by reference to Exhibit 4.6 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2016 (File No. 001-10086), filed with the Securities and Exchange Commission on June 10, 2016).
4.3 Extension letter dated 10 January 2017 in relation to the US$3,935,000,000 (increased to US$4.09 billion) Revolving Credit Facility dated 27 February 2015 (incorporated by reference to Exhibit 4.7 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2017 (File No. 001-10086), filed with the Securities and Exchange Commission on June 9, 2017).
4.4 Amendment letter dated 11 January 2018 in relation to the US$4.09 billion Revolving Credit Facility dated 27 February 2015 (incorporated by reference to Exhibit 4.9 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2018 (File No. 001-10086), filed with the Securities and Exchange Commission on June 8, 2018).
4.5 Lender Accession Agreement between Raiffeisen Bank International AG, the Royal Bank of Scotland plc as agent and Vodafone Group Plc, effective as of 12 July 2018 in relation to the Group's US$3,935,000,000 (increased to US$4.09 billion) Revolving Credit Facility.
4.6 Novation Certificate between Lloyds Bank Plc, TD Bank, N.A. and The Royal Bank of Scotland plc as agent and Vodafone Group Plc, effective as of 18 December 2019 in relation to the Group's US$3,395,000,000 (increased to US$4.09 billion) Revolving Credit Facility.
4.7 Novation Certificate between Lloyds Bank Plc, CaixaBank, S.A. and The Royal Bank of Scotland plc as agent and Vodafone Group Plc, effective as of 29 April 2019 in relation to the Group's US$3,935,000,000 (increased to US$4.09 billion) Revolving Credit Facility.
4.8 Agreement for 3,860,000,000 five year Revolving Credit Facility dated March 28, 2014 among the Company and various lenders (incorporated by reference to Exhibit 4.6 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2014 (File No. 001-10086), filed with the Securities and Exchange Commission on June 10, 2014).
4.9 Extension letter dated 6 December 2019 in relation to the 3,860,000,000 (increased to 4.01 billion) Revolving Credit Facility dated 28 March 2014.
4.10 Rules of the Vodafone Global Incentive Plan 2014 (incorporated by reference to Exhibit 4.10 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2019 (File No. 001-10086), filed with the Securities and Exchange Commission on June 7, 2019).
4.11 Rules of the Vodafone Sharesave Plan (incorporated by reference to Exhibit 4.11 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2019 (File No. 001-10086), filed with the Securities and Exchange Commission on June 7, 2019).
4.12 Letter of Appointment of Renee James dated 8 October 2010 (incorporated by reference to Exhibit 4.35 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2011 (File No. 001-10086), filed with the Securities and Exchange Commission on June 17, 2011).
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4.13 Letter of Appointment of Gerard Kleisterlee dated 25 January 2011 (incorporated by reference to Exhibit 4.36 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2011 (File No. 001-10086), filed with the Securities and Exchange Commission on June 17, 2011).
4.14 Letter of Appointment of Valerie Gooding dated 25 November 2013 (incorporated by reference to Exhibit 4.30 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2014 (File No. 001-10086), filed with the Securities and Exchange Commission on June 10, 2014).
4.15 Letter of Appointment of Sir Crispin Davis dated 14 April 2014 (incorporated by reference to Exhibit 4.32 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2014 (File No. 001-10086), filed with the Securities and Exchange Commission on June 10, 2014).
4.16 Letter of Appointment of Dame Clara Furse dated 13 May 2014 (incorporated by reference to Exhibit 4.33 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2014 (File No. 001-10086), filed with the Securities and Exchange Commission on June 10, 2014).
4.17 Letter of indemnification for Nicholas Read dated 28 October 2014 (incorporated by reference to Exhibit 4.29 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2015 (File No. 001-10086), filed with the Securities and Exchange Commission on June 8, 2015).
4.18 Letter of Appointment for David Nish dated 23 September 2015 (incorporated by reference to Exhibit 4.32 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2016 (File No. 001-10086), filed with the Securities and Exchange Commission on June 10, 2016).
4.19 Letter of Appointment for Maria Amparo Moraleda Martinez dated 24 January 2017 (incorporated by reference to Exhibit 4.30 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2017 (File No. 00110086), filed with the Securities and Exchange Commission on June 9, 2017).
4.20 Letter of Appointment of Michel Demaré dated 23 January 2018 (incorporated by reference to Exhibit 4.24 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2018 (File No. 001-10086), filed with the Securities and Exchange Commission on June 8, 2018).
4.21 Service Agreement of Nicholas Read dated 26 July 2018 (incorporated by reference to Exhibit 4.25 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2019 (File No. 001-10086), filed with the Securities and Exchange Commission on June 7, 2019).
4.22 Service Agreement of Margherita Della Valle dated July 2018 (incorporated by reference to Exhibit 4.26 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2019 (File No. 001-10086), filed with the Securities and Exchange Commission on June 7, 2019).
4.23 Letter of Appointment of Sanjiv Ahuja dated 8 November 2018 (incorporated by reference to Exhibit 4.27 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2019 (File No. 001-10086), filed with the Securities and Exchange Commission on June 7, 2019).
4.24 Letter of Appointment of David Thodey dated 24 May 2019 (incorporated by reference to Exhibit 4.28 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2019 (File No. 001-10086), filed with the Securities and Exchange Commission on June 7, 2019).
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4.25 Amendment and Restatement of a Contribution and Transfer Agreement dated 31 December 2016 by and among the Company, Liberty Global Europe Holding B.V., Liberty Global Plc, Vodafone International Holdings B.V. and Lynx Global Europe II B.V. relating to the contribution and/or transfer of shares in Ziggo Group Holding B.V. and Vodafone Libertel B.V. to Lynx Global Europe II B.V. and the formation of the Netherlands joint venture (incorporated by reference to Exhibit 4.31 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2017 (File No. 00110086), filed with the Securities and Exchange Commission on June 9, 2017).
4.26 Implementation Agreement dated 20 March 2017 relating to the combination of the Indian mobile telecommunications businesses of Vodafone Group and Idea Group (incorporated by reference to Exhibit 4.32 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2017 (File No. 001-10086), filed with the Securities and Exchange Commission on June 9, 2017).
4.27 First Amendment to the Implementation Agreement dated 20 March 2017, relating to the combination of the Indian mobile telecommunications businesses of Vodafone Group and Idea Group, entered into on 30 August 2018 (incorporated by reference to Exhibit 4.31 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2019 (File No. 001-10086), filed with the Securities and Exchange Commission on June 7, 2019).
4.28 Implementation Agreement dated 25 April 2018 relating to the combination of the businesses of Indus Towers and Bharti Infratel (incorporated by reference to Exhibit 4.27 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2018 (File No. 001-10086), filed with the Securities and Exchange Commission on June 8, 2018).
4.29 Letter Agreement dated 24 October 2019 relating to the extension of the Extended Longstop Date of the Implementation Agreement dated 25 April 2018 relating to the combination of the businesses of Indus Towers and Bharti Infratel.
4.30 Letter Agreement dated 24 December 2019 relating to the extension of the Extended Longstop Date of the Implementation Agreement dated 25 April 2018 relating to the combination of the businesses of Indus Towers and Bharti Infratel.
4.31 Letter Agreement dated 24 February 2020 relating to the extension of the Extended Longstop Date of the Implementation Agreement dated 25 April 2018 relating to the combination of the businesses of Indus Towers and Bharti Infratel.
4.32 Letter Agreement dated 23 April 2020 relating to the extension of the Extended Longstop Date of the Implementation Agreement dated 25 April 2018 relating to the combination of the businesses of Indus Towers and Bharti Infratel.
4.33 Letter Agreement dated 25 June 2020 relating to the extension of the Extended Longstop Date of the Implementation Agreement dated 25 April 2018 relating to the combination of the businesses of Indus Towers and Bharti Infratel.
4.34 Sale and Purchase Agreement dated 9 May 2018 relating to the sale of Liberty Global plc's businesses in Germany, Romania, Hungary and the Czech Republic (incorporated by reference to Exhibit 4.28 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2018 (File No. 001-10086), filed with the Securities and Exchange Commission on June 8, 2018).*
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4.35 Transitional Services Agreement dated 31 July 2019 relating to services and co-operation relating to the Share Purchase Agreement dated 9 May 2018 relating to the sale of Liberty Global plc's businesses in Germany, Romania, Hungary and the Czech Republic.**
4.36 Scheme Implementation Deed dated 30 August 2018 by and among Vodafone Hutchison Australia Pty Limited, Vodafone Oceania Limited, Hutchison Telecommunications (Australia) Limited, Hutchison Whampoa Limited and TPG Telecom Limited relating to the proposed merger between Vodafone Hutchison Australia Pty Limited and TPG Telecom Limited
(incorporated by reference to Exhibit 4.34 to the Company's Annual Report on Form 20-F for the financial year ended March 31, 2019 (File No. 001-10086), filed with the Securities and Exchange Commission on June 7, 2019).
4.37 Deed of Merger dated 31 March 2020 relating to the combination of Vodafone Italy's towers with INWIT's passive network infrastructure.
8.
List of the Company's related undertakings (incorporated by reference to Note 33 to the Consolidated Financial Statements
included in this Annual Report on Form 20-F for the financial year ended March 31, 2020 (File No. 001-10086), filed with
the Securities and Exchange Commission on 2 July, 2020).
12. Rule 13a -- 14(a) Certifications.
13. Rule 13a -- 14(b) Certifications. These certifications are furnished only and are not filed as part of this Annual Report on Form 20-F for the financial year ended March 31, 2020.
15.1 Consent letter of Ernst & Young LLP.
15.2 Consent letter of PricewaterhouseCoopers LLP.
* The schedules to the Sale and Purchase Agreement have been omitted from this filing pursuant to Item 601(b)(2) of Regulation S-K. Copies of such schedules will be furnished to the SEC upon its request; provided, however, that confidential treatment may be requested pursuant to Rule 24b-2 of the Exchange Act for any schedule so furnished.
** The schedules to the Transitional Services Agreement have been omitted from this filing pursuant to Item 601(b)(2) of Regulation S-K. Copies of such schedules will be furnished to the SEC upon its request; provided, however, that confidential treatment may be requested pursuant to Rule 24b-2 of the Exchange Act for any schedule so furnished. Certain identified confidential portions of this exhibit have been omitted because such identified confidential portions (i) are not material and (ii) would be competitively harmful if publicly disclosed.
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SIGNATURE
The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.
VODAFONE GROUP PUBLIC LIMITED COMPANY (Registrant)
Date July 2, 2020
/s/ R E S Martin
Rosemary E S Martin Group General Counsel and Company Secretary
EXECUTION
FOURTEENTH SUPPLEMENTAL TRUST DEED
5 JULY 2019
VODAFONE GROUP PLC and
THE LAW DEBENTURE TRUST CORPORATION p.l.c. further modifying and restating the provisions of the Trust Deed dated 16 July 1999 relating to a 30,000,000,000 Euro Medium Term Note Programme
Allen & Overy LLP
Exhibit 2.3
THIS FOURTEENTH SUPPLEMENTAL TRUST DEED is made on 5 July 2019
BETWEEN:
(1)
VODAFONE GROUP PLC, a company incorporated with limited liability in England and Wales with registered
number 1833679, whose registered office is at Vodafone House, The Connection, Newbury, Berkshire RG14 2FN,
England (the Issuer); and
(2)
THE LAW DEBENTURE TRUST CORPORATION p.l.c., a company incorporated with limited liability in
England and Wales with registered number 1675231, whose registered office is at Fifth Floor, 100 Wood Street,
London EC2V 7EX, England (the Trustee, which expression shall, wherever the context so admits, include such
company and all other persons or companies for the time being the trustee or trustees of these presents) as trustee for
the Noteholders and the Couponholders.
WHEREAS:
(A) This Fourteenth Supplemental Trust Deed is supplemental to:
(i)
the Trust Deed dated 16 July 1999 (hereinafter called the Principal Trust Deed) made between the Issuer and the
Trustee and relating to the Euro Medium Term Note Programme (the Programme) established by the Issuer;
(ii)
the First Supplemental Trust Deed dated 4 May 2000 (the First Supplemental Trust Deed) made between the
Issuer and the Trustee modifying and restating the provisions of the Principal Trust Deed;
(iii) the Second Supplemental Trust Deed dated 31 May 2001 (the Second Supplemental Trust Deed) made between the Issuer and the Trustee further modifying and restating the provisions of the Principal Trust Deed;
(iv) the Third Supplemental Trust Deed dated 6 June 2002 (the Third Supplemental Trust Deed) made between the Issuer and the Trustee further modifying the provisions of the Principal Trust Deed;
(v)
the Fourth Supplemental Trust Deed dated 19 July 2005 (the Fourth Supplemental Trust Deed) made between the
Issuer and the Trustee further modifying and restating the provisions of the Principal Trust Deed;
(vi) the Fifth Supplemental Trust Deed dated 19 July 2006 (the Fifth Supplemental Trust Deed) made between the Issuer and the Trustee further modifying and restating the provisions of the Principal Trust Deed;
(vii) the Sixth Supplemental Trust Deed dated 1 August 2007 (the Sixth Supplemental Trust Deed) made between the Issuer and the Trustee further modifying the provisions of the Principal Trust Deed;
(viii) the Seventh Supplemental Trust Deed dated 14 July 2008 (the Seventh Supplemental Trust Deed) made between the Issuer and the Trustee further modifying the provisions of the Principal Trust Deed;
1
(ix) the Eighth Supplemental Trust Deed dated 10 July 2009 (the Eighth Supplemental Trust Deed) made between the Issuer and the Trustee further modifying the provisions of the Principal Trust Deed;
(x)
the Ninth Supplemental Trust Deed dated 13 July 2010 (the Ninth Supplemental Trust Deed) made between the
Issuer and the Trustee further modifying the provisions of the Principal Trust Deed;
(xi) the Tenth Supplemental Trust Deed dated 8 July 2011 (the Tenth Supplemental Trust Deed) made between the Issuer and the Trustee further modifying the provisions of the Principal Trust Deed;
(xii) the Eleventh Supplemental Trust Deed dated 11 July 2013 (the Eleventh Supplemental Trust Deed) made between the Issuer and the Trustee further modifying and restating the provisions of the Principal Trust Deed;
(xiii) the Twelfth Supplemental Trust Deed dated 4 August 2014 (the Twelfth Supplemental Trust Deed) made between the Issuer and the Trustee further modifying and restating the provisions of the Principal Trust Deed; and
(xiv) the Thirteenth Supplemental Trust Deed dated 12 January 2016 (the Thirteenth Supplemental Trust Deed, and together with the Principal Trust Deed, the First Supplemental Trust Deed, the Second Supplemental Trust Deed, the Third Supplemental Trust Deed, the Fourth Supplemental Trust Deed, the Fifth Supplemental Trust Deed, the Sixth Supplemental Trust Deed, the Seventh Supplemental Trust Deed, the Eighth Supplemental Trust Deed, the Ninth Supplemental Trust Deed, the Tenth Supplemental Trust Deed, the Eleventh Supplemental Trust Deed and the Twelfth Supplemental Trust Deed, the Subsisting Trust Deeds) made between the Issuer and the Trustee further modifying and restating the provisions of the Principal Trust Deed.
(B) On 5 July 2019 the Issuer published a modified and updated Prospectus (the Prospectus) relating to the Programme.
NOW THIS FOURTEENTH SUPPLEMENTAL TRUST DEED WITNESSES AND IT IS HEREBY AGREED AND DECLARED as follows:
1.
SUBJECT as hereinafter provided and unless there is something in the subject matter or context inconsistent therewith all
words and expressions defined in the Principal Trust Deed (as modified and restated as aforesaid) shall have the same
meanings in this Fourteenth Supplemental Trust Deed.
2.
SAVE:
(a)
in relation to all Series of Notes the first Tranche of which was issued on or prior to the day last preceding the date
of this Fourteenth Supplemental Trust Deed; and
(b) for the purpose (where necessary) of construing the provisions of this Fourteenth Supplemental Trust Deed,
with effect on and from the date of this Fourteenth Supplemental Trust Deed:
(i)
the Principal Trust Deed (as modified and/or restated as aforesaid) is further modified in such manner as
would result in the Principal Trust Deed as so modified being in the form set out in the Schedule hereto;
and
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(ii)
the provisions of the Principal Trust Deed (as modified and/or restated as aforesaid) insofar as the same
still have effect shall cease to have effect and in lieu thereof the provisions of the Principal Trust Deed as
so modified and restated (and being in the form set out in the Schedule hereto) shall have effect.
3.
FOR the avoidance of doubt, the Principal Trust Deed (without the modifications made hereby but, where applicable, as
modified and/or restated as aforesaid) shall continue to have effect in relation to all Series of Notes the first Tranche of which
was issued on or prior to the day last preceding the date of this Fourteenth Supplemental Trust Deed.
4.
THE Subsisting Trust Deeds shall henceforth be read and construed as one document with this Fourteenth Supplemental
Trust Deed.
5.
A Memorandum of the Fourteenth Supplemental Trust Deed shall be endorsed by the Trustee on the Principal Trust Deed
and by the Issuer on its duplicate thereof.
IN WITNESS whereof this Fourteenth Supplemental Trust Deed has been executed by the Issuer and the Trustee as a deed and delivered on the day and year first above written.
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THE SCHEDULE FORM OF MODIFIED PRINCIPAL TRUST DEED
TRUST DEED
16 JULY 1999 (AS AMENDED AND RESTATED MOST RECENTLY ON 5 JULY 2019)
VODAFONE GROUP PLC and
THE LAW DEBENTURE TRUST CORPORATION p.l.c.
relating to a 30,000,000,000 Euro Medium Term Note Programme
CONTENTS
Clause
1.
Definitions
2.
Amount and issue of the Notes
3.
Forms of the Notes
4.
Fees, Duties and Taxes
5.
Covenant of Compliance
6.
Cancellation of Notes and Records
7.
Enforcement
8.
Proceedings, Action and Indemnification
9.
Application of Moneys
10.
Notice of Payments
11.
Investment by Trustee
12.
Partial Payments
13.
Covenants
14.
Remuneration and Indemnification of Trustee
15.
Supplement to Trustee Acts
16.
Trustee's Liability
17.
Trustee contracting with the Issuer
18.
Waiver, Authorisation and Determination
19.
Holder of Definitive Bearer Note assumed to be Couponholder
20.
Substitution and consolidation merger, Conveyance, Transfer Or Lease
21.
Currency Indemnity
22.
New Trustee
23.
Trustee's Retirement and Removal
24.
Trustee's powers to be additional
25.
Notices
26.
Governing Law
27.
Counterparts
28.
Contracts (Rights of Third Parties) Act 1999
Schedule
1.
Terms and Conditions of the Notes
2.
Forms of Global and Definitive Notes, Certificates, Coupons and Talons
Part 1
Form of Temporary Global Note
Part 2
Form of Permanent Global Note
Part 3
Form of Regulation S Global Certificate
Part 4
Form of DTC Restricted Global Certificate
Part 5
Form of Definitive Note
Part 6
Form of Coupon
Part 7
Form of Talon
Part 8
Form of Regulation S Certificate
Part 9
Form of DTC Restricted Certificate
3.
Provisions for Meetings of Noteholders
Signatories
Page
6 17 19 22 22 22 23 23 24 24 24 25 25 28 29 33 33 34 35 35 38 39 40 40 40 41 41 41
42 82 82 91 101 106 112 116 117 119 124 129
137
THIS TRUST DEED is made on 16 July 1999 as amended and restated most recently on 5 July 2019
BETWEEN:
(1) VODAFONE GROUP PLC, a company incorporated with limited liability in England and Wales with registered number 1833679, whose registered office is at Vodafone House, The Connection, Newbury, Berkshire RG14 2FN, England (the Issuer); and
(2) THE LAW DEBENTURE TRUST CORPORATION p.l.c., a company incorporated with limited liability in England and Wales with registered number 1675231, whose registered office is at Fifth Floor, 100 Wood Street, London EC2V 7EX, England (the Trustee, which expression shall, wherever the context so admits, include such company and all other persons or companies for the time being the trustee or trustees of these presents) as trustee for the Noteholders and the Couponholders (each as defined below).
WHEREAS:
(1) By a resolution of the Board of Directors of the Issuer passed on 24 May 1999 the Issuer has resolved to establish a Euro Medium Term Note Programme pursuant to which the Issuer may from time to time issue Notes as set out therein and herein. Notes up to a maximum nominal amount (including, for the avoidance of doubt, any Retained Notes) (calculated in accordance with Clause 3.5 of the Programme Agreement (as defined below)) from time to time outstanding of 30,000,000,000 (subject to increase as provided in the Programme Agreement) (the Programme Limit) may be issued pursuant to the said Programme.
(2) The Trustee has agreed to act as trustee of these presents for the benefit of the Noteholders and the Couponholders upon and subject to the terms and conditions of these presents.
NOW THIS TRUST DEED WITNESSES AND IT IS AGREED AND DECLARED as follows:
1.
DEFINITIONS
1.1 In these presents unless there is anything in the subject or context inconsistent therewith the following expressions shall have the following meanings:
Agents means, in relation to all or any Series of the Notes, the Issuing and Principal Paying Agent, the other Paying Agents, the Calculation Agent, the Registrar, the other Transfer Agents or any of them;
Agency Agreement means the amended and restated agency agreement dated 5 July 2019, as amended and/or supplemented and/or restated from time to time, pursuant to which the Issuer has appointed the Issuing and Principal Paying Agent and the other Agents in relation to all or any Series of the Notes and any other agreement for the time being in force appointing further or other Agents in relation to all or any Series of the Notes, or in connection with their duties, the terms of which have previously been approved in writing by the Trustee, together with any agreement for the time being in force amending or modifying with the prior written approval of the Trustee any of the aforesaid agreements;
Appointee means any attorney, manager, agent, delegate or other person appointed by the Trustee under these presents;
Auditors means the auditors for the time being of the Issuer or, in the event of their being unable or unwilling promptly to carry out any action requested of them pursuant to the provisions of these
6
presents, such other firm of accountants as may be nominated or approved by the Trustee for the purposes of these presents;
Bearer Note means a Note that is in bearer form;
Calculation Agency Agreement means in relation to all or any Series of the Notes an agreement in or substantially in the form of Schedule I to the Agency Agreement;
Calculation Agent means, in relation to all or any Series of the Notes, the person appointed as such from time to time pursuant to the provisions of the Calculation Agency Agreement or any Successor calculation agent in relation thereto;
Certificate means a Definitive or Global Certificate representing one or more Registered Notes of the same Series and, save as provided in the Conditions, comprising the entire holding by a Noteholder of his Registered Notes of that Series;
CGN means a Temporary Global Note or a Permanent Global Note and in either case in respect of which the applicable Final Terms do not specify that it is a New Global Note;
Clearstream, Luxembourg means Clearstream Banking S.A.;
CMS Linked Notes means Notes specified as such in the applicable Final Terms;
Conditions means, in relation to the Notes of any Series, the terms and conditions endorsed on or incorporated by reference into the Note or Notes constituting or Certificate or certificates representing such Series, such terms and conditions being in or substantially in the form set out in the First Schedule or in such other form, having regard to the terms of issue of the Notes of the relevant Series, as may be agreed between the Issuer, the Issuing and Principal Paying Agent, the Trustee and the relevant Dealer(s) as completed and/or (in the case of Exempt Notes) modified and/or replaced by the Final Terms applicable to the Notes of the relevant Series, in each case as from time to time modified in accordance with the provisions of these presents;
Coupon means an interest coupon appertaining to a Definitive Bearer Note (other than a Zero Coupon Note), such coupon being:
(a) if appertaining to a Fixed Rate Note, in the form or substantially in the form set out in Part 6 A of the Second Schedule or in such other form, having regard to the terms of issue of the Notes of the relevant Series, as may be agreed between the Issuer, the Issuing and Principal Paying Agent, the Trustee and the relevant Dealer(s); or
(b) if appertaining to a Floating Rate Note, CMS Linked Note or an Inflation Linked Interest Note, in the form or substantially in the form set out in Part 6 B of the Second Schedule or in such other form, having regard to the terms of issue of the Notes of the relevant Series, as may be agreed between the Issuer, the Issuing and Principal Paying Agent, the Trustee and the relevant Dealer(s); or
(c)
if appertaining to a Definitive Note which is neither a Fixed Rate Note nor a Floating Rate Note nor a CMS Linked
Note nor an Inflation Linked Interest Note, in such form as may be agreed between the Issuer, the Issuing and
Principal Paying Agent, the Trustee and the relevant Dealer(s),
and includes, where applicable, the Talon(s) appertaining thereto and any replacements for Coupons and Talons issued pursuant to Condition 11;
7
Couponholders means the several persons who are for the time being holders of the Coupons and includes, where applicable, the holders of the Talons;
Dealers means the entities named as Dealers in the Programme Agreement and any other entity which the Issuer may appoint as a Dealer and notice of whose appointment has been given to the Agent and the Trustee by the Issuer in accordance with the provisions of the Programme Agreement but excluding any entity whose appointment has been terminated in accordance with the provisions of the Programme Agreement and notice of which termination has been given to the Issuing and Principal Paying Agent and the Trustee by the Issuer in accordance with the provisions of the Programme Agreement and references to a relevant Dealer or relevant Dealer(s) mean, in relation to any Tranche or Series of Notes, the Dealer or Dealers with whom the Issuer has agreed the issue of the Notes of such Tranche or Series and Dealer means any one of them;
Definitive Bearer Note means a bearer Note in definitive form issued or, as the case may require, to be issued by the Issuer in accordance with the provisions of the Programme Agreement or any other agreement between the Issuer and the relevant Dealer(s), the Agency Agreement and these presents in exchange for either a Temporary Global Note or part thereof or a Permanent Global Note (all as indicated in the applicable Final Terms), such bearer Note in definitive form being in the form or substantially in the form set out in Part 5 of the Second Schedule with such modifications (if any) as may be agreed between the Issuer, the Issuing and Principal Paying Agent, the Trustee and the relevant Dealer(s) and having the Conditions endorsed thereon or, if permitted by the relevant Stock Exchange, incorporating the Conditions by reference (where applicable to this Trust Deed) as indicated in the applicable Final Terms and having the relevant information completing the Conditions appearing in the applicable Final Terms endorsed thereon or attached thereto and (except in the case of a Zero Coupon Note in bearer form) having Coupons and, where appropriate, Talons attached thereto on issue;
Definitive Certificate means a definitive Regulation S Certificate or DTC Restricted Certificate in or substantially in the form set out in Parts 8 and 9 of the Second Schedule, respectively with such modifications (if any) as may be agreed between the Issuer, the Issuing and Principal Paying Agent, the Trustee, the Registrar and the relevant Dealer(s), representing one or more Regulation S Registered Notes or DTC Restricted Registered Notes, respectively of the same Series;
DTC means The Depository Trust Company;
DTC Restricted Certificate means a Definitive Certificate representing DTC Restricted Registered Notes in or substantially in the form set out in Part 9 of the Second Schedule, with such modifications (if any) as may be agreed between the Issuer, the Issuing and Principal Paying Agent, the Trustee, the Registrar and the relevant Dealer(s), bearing the Rule 144A Legend and includes any replacement thereof issued pursuant to the Conditions and any DTC Restricted Global Certificate;
DTC Restricted Global Certificate means a Global Certificate in or substantially in the form set out in Part 4 of the Second Schedule with such modifications (if any) as may be agreed between the Issuer, the Issuing and Principal Paying Agent, the Trustee, the Registrar and the relevant Dealer(s), and bearing the Rule 144A Legend and the legends required by DTC;
DTC Restricted Registered Note means a Registered Note represented by a DTC Restricted Global Certificate or DTC Restricted Certificate, as the case may be;
Early Redemption Amount has the meaning set out in Condition 7(f);
Early Termination Event has the meaning set out in Condition 5(i)(ii)(E);
Euroclear means Euroclear Bank SA/NV;
8
Eurosystem-eligible NGN means a NGN which is intended to be held in a manner which would allow Eurosystem eligibility, as stated in the applicable Final Terms;
Event of Default means any of the conditions, events or acts provided in Condition 10(A) to be Events of Default (being events upon the happening of which the Notes of any Series would, subject only to declaration by the Trustee as therein provided, become immediately due and repayable);
Exchangeable Bearer Note means a Bearer Note that is exchangeable in accordance with its terms for a Registered Note;
Exempt Notes has the meaning set out in the Programme Agreement;
Extraordinary Resolution has the meaning set out in paragraph 20 of the Third Schedule in relation to any Series of Notes;
FCA means the Financial Conduct Authority in its capacity as competent authority under the Financial Services and Markets Act 2000;
Final Terms has the meaning set out in the Programme Agreement;
Fixed Rate Note means a Note on which interest is calculated at a fixed rate payable in arrear on a fixed date or fixed dates in each year and on redemption or on such other dates as may be agreed between the Issuer and the relevant Dealer(s) (as indicated in the applicable Final Terms);
Floating Rate Note means a Note on which interest is calculated at a floating rate payable one-, two-, three-, six- or twelvemonthly or in respect of such other period or on such date(s) as may be agreed between the Issuer and the relevant Dealer (s) (as indicated in the applicable Final Terms);
Indexation Adviser has the meaning set out in Condition 5(a);
Global Certificate means a Regulation S Global Certificate or a DTC Restricted Global Certificate in or substantially in the forms set out in Part 3 and Part 4 of the Second Schedule, respectively, with such modifications (if any) as may be agreed between the Issuer, the Issuing and Principal Paying Agent, the Trustee, the Registrar and the relevant Dealer(s), representing Regulation S Registered Notes or DTC Restricted Registered Notes, respectively, or one or more Tranches of the same Series that are registered in the name of a nominee for Euroclear, Clearstream, Luxembourg and/or DTC and/or any other clearing system;
Global Note means a Temporary Global Note and/or a Permanent Global Note, as the context may require;
Holding Company has the meaning set out in Condition 15;
Inflation Linked Interest Note means a Note in respect of which the amount payable in respect of interest is calculated by reference to such index and/or formula or to changes in the prices of securities or commodities or to such other factors as the Issuer and the relevant Dealer(s) may agree (as indicated in the applicable Final Terms);
Inflation Linked Note means an Inflation Linked Interest Note and/or an Inflation Linked Redemption Amount Note, as applicable;
Inflation Linked Redemption Amount Note means a Note in respect of which the amount payable in respect of principal is calculated by reference to such index and/or formula or to changes in the
9
prices of securities or commodities or to such other factors as the Issuer and the relevant Dealer(s) may agree (as indicated in the applicable Final Terms);
Interest Commencement Date means, in the case of interest-bearing Notes, the date specified in the applicable Final Terms from (and including) which such Notes bear interest, which may or may not be the Issue Date;
Interest Payment Date means, in relation to any Floating Rate Note, CMS Linked Note or Inflation Linked Interest Note, either:
(a) the date which falls the number of months or other period specified as the Specified Period in the applicable Final Terms after the preceding Interest Payment Date or the Interest Commencement Date (in the case of the first Interest Payment Date); or
(b) such date or dates as are indicated in the applicable Final Terms;
ISM means the London Stock Exchange's International Securities Market;
Issue Date means, in respect of any Note, the date of issue and purchase of such Note pursuant to and in accordance with the Programme Agreement or any other agreement between the Issuer and the relevant Dealer(s);
Issue Price means the price, generally expressed as a percentage of the nominal amount of the Notes, at which the Notes will be issued;
Issuing and Principal Paying Agent means, in relation to all or any Series of the Notes, HSBC Bank plc at its office at 8 Canada Square, London E14 5HQ, England, or, if applicable, any Successor agent in relation thereto;
Liability means any loss, damage, cost, charge, claim, demand, expense, judgment, action, proceeding or other liability whatsoever (including, without limitation, in respect of taxes, duties, levies, imposts and other charges) and including any amount in respect of value added tax or similar tax charged or chargeable in respect thereof and legal fees and expenses on a full indemnity basis;
London Business Day has the meaning set out in Condition 4(b)(vii);
London Stock Exchange means the London Stock Exchange plc or such other body to which its functions have been transferred;
Market means the London Stock Exchange's regulated market which is a regulated market for the purposes of the Markets in Financial Instruments Directive;
Markets in Financial Instruments Directive means Directive 2014/65/EU (as amended);
Maturity Date means the date on which a Note is expressed to be redeemable;
NGN means a Temporary Global Note or a Permanent Global Note and in either case in respect of which the applicable Final Terms specify that the Global Note is a New Global Note;
Note means a note issued pursuant to the Programme and denominated in such currency or currencies as may be agreed between the Issuer and the relevant Dealer(s) which:
(a) has such maturity as may be agreed between the Issuer and the relevant Dealer(s), subject to such minimum or maximum maturity as may be allowed or required from time to time by
10
the relevant central bank (or equivalent body) or any laws or regulations applicable to the Issuer or the relevant currency; and
(b) has such denomination as may be agreed between the Issuer and the relevant Dealer(s), subject to such minimum denomination as may be allowed or required from time to time by the relevant central bank (or equivalent body) or any laws or regulations applicable to the relevant currency,
issued or to be issued by the Issuer pursuant to the Programme Agreement or any other agreement between the Issuer and the relevant Dealer(s), the Agency Agreement and these presents and which may be issued in bearer or registered form. Notes which are issued in bearer form shall initially be represented by, and comprised in, either (i) a Temporary Global Note which may (in accordance with the terms of such Temporary Global Note) be exchanged for Definitive Bearer Notes or Registered Notes or a Permanent Global Note, which Permanent Global Note may (in accordance with the terms of such Permanent Global Note) in turn be exchanged for Definitive Bearer Notes or Registered Notes or (ii) a Permanent Global Note which may (in accordance with the terms of such Permanent Global Note) be exchanged for Definitive Bearer Notes or Registered Notes and which shall, in the case of Registered Notes, initially be represented by, and comprised in, a Regulation S Global Certificate and/or a DTC Restricted Global Certificate each of which may, in accordance with their terms, in turn be exchanged for Definitive Certificates (all as indicated in the applicable Final Terms) and includes any replacements for a Note issued pursuant to Condition 11;
Noteholder and holder have the meanings set out in the Conditions;
notice means, in respect of a notice to be given to Noteholders, a notice validly given pursuant to Condition 14;
NSS means the New Safekeeping Structure for registered global securities which are intended to constitute eligible collateral for Eurosystem monetary policy operations;
Official List has the meaning set out in Section 103 of the Financial Services and Markets Act 2000;
outstanding in relation to the Notes, means all Notes issued other than:
(a) those Notes which have been redeemed pursuant to these presents or the Conditions;
(b) those Notes in respect of which the date for redemption in accordance with the Conditions has occurred and the redemption moneys (including all interest payable thereon) have been duly paid to the Trustee or have been duly paid to the Issuing and Principal Paying Agent in the manner provided in the Agency Agreement (and where appropriate notice to that effect has been given to the relative Noteholders in accordance with Condition 14) and remain available for payment against presentation of the relevant Notes, Certificates and/or Coupons;
(c)
those Notes which have been purchased and cancelled in accordance with Conditions 7(g) and (h);
(d) those Notes which have become void under Condition 9;
(e)
those mutilated or defaced Bearer Notes which have been surrendered and cancelled and in respect of which
replacements have been issued pursuant to Condition 11;
(f)
(for the purpose only of ascertaining the nominal amount of the Notes outstanding and without prejudice to the
status for any other purpose of the relevant Notes) those Bearer
11
Notes which are alleged to have been lost, stolen or destroyed and in respect of which replacements have been issued pursuant to Condition 11;
(g)
those Exchangeable Bearer Notes that have been exchanged for Registered Notes; and
(h) any Temporary Global Note to the extent that it shall have been exchanged for Definitive Bearer Notes or a Permanent Global Note and any Permanent Global Note to the extent that it shall have been exchanged for
Definitive Bearer Notes in each case pursuant to its provisions, the provisions of these presents and the Agency Agreement,
PROVIDED THAT for each of the following purposes, namely:
(i)
the right to attend and vote at any meeting of the holders of the Notes of any Series;
(j)
the determination of how many and which Notes of any Series are for the time being outstanding for the purposes of
Clause 8.1, Conditions 10 and 15 and paragraphs 2, 5, 6 and 9 of the Third Schedule;
(k) any discretion, power or authority (whether contained in these presents or vested by operation of law) which the Trustee is required, expressly or impliedly, to exercise in or by reference to the interests of the holders of the Notes of any Series; and
(l)
the determination by the Trustee whether any event, circumstance, matter or thing is, in its opinion, materially
prejudicial to the interests of the holders of the Notes of any Series,
those Notes of the relevant Series (if any) which are for the time being held by or on behalf of the Issuer, any Subsidiary of the Issuer (including any Retained Notes), any Holding Company of the Issuer or other Subsidiary of such Holding Company, in each case as beneficial owner, shall (unless and until ceasing to be so held) be deemed not to remain outstanding. Save for the purposes of the proviso herein, in the case of each NGN, the Trustee shall rely on the records of Euroclear and Clearstream, Luxembourg in relation to any determination of the nominal amount outstanding of each NGN;
Paying Agents means, in relation to all or any Series of the Notes, the several institutions (including, where the context permits, the Issuing and Principal Paying Agent) at their respective specified offices initially appointed as paying agents in relation to such Notes by the Issuer pursuant to the Agency Agreement and/or, if applicable, any Successor paying agents in relation thereto;
Permanent Global Note means a global note in the form or substantially in the form set out in Part 2 of the Second Schedule with such modifications (if any) as may be agreed between the Issuer, the Issuing and Principal Paying Agent, the Trustee and the relevant Dealer(s), together with the copy of the applicable Final Terms annexed thereto, comprising some or all of the Notes of the same Series, issued by the Issuer pursuant to the Programme Agreement or any other agreement between the Issuer and the relevant Dealer(s), the Agency Agreement and these presents;
Person means any individual, corporation, partnership, joint venture, trust, unincorporated organisation or government, or any agency or political sub-division thereof;
Potential Event of Default means any condition, event or act which, with the lapse of time and/or the giving of notice and/or the issue of any certificate, would constitute an Event of Default;
Programme means the Euro Medium Term Note Programme established by, or otherwise contemplated in, the Programme Agreement;
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Programme Agreement means the agreement of even date herewith between the Issuer and the Dealers named therein concerning the purchase of Notes to be issued pursuant to the Programme together with any agreement for the time being in force amending, replacing, novating or modifying such agreement;
Reference Banks means, in relation to the Notes of any relevant Series, the several banks initially appointed as reference banks and/or, if applicable, any Successor reference banks in relation thereto;
Register means the register maintained by the Registrar;
Registered Notes means those of the Notes which are for the time being in registered form and represented by a Certificate;
Registrar means, in relation to all or any Series of the Notes, HSBC Bank USA National Association at its office at 452 Fifth Avenue, New York, NY 10018-2708, or, if applicable, any Successor Registrar in relation thereto;
Regulation S means Regulation S under the Securities Act;
Regulation S Certificate means a Definitive Certificate representing Regulation S Registered Notes in or substantially in the form set out in Part 8 of the Second Schedule, with such modifications (if any) as may be agreed between the Issuer, the Issuing and Principal Paying Agent, the Trustee, the Registrar and the relevant Dealer(s), and includes any replacement thereof issued pursuant to the Conditions and any Regulation S Global Certificate;
Regulation S Global Certificate means a Global Certificate in or substantially in the form set out in Part 3 of the Second Schedule, with such modifications (if any) as may be agreed between the Issuer, the Issuing and Principal Paying Agent, the Trustee, the Registrar and the relevant Dealer(s);
Regulation S Registered Note means a Registered Note represented by a Regulation S Certificate or a Regulation S Global Certificate, as the case may be;
Relevant Date has the meaning set out in Condition 8;
Relevant Jurisdiction has the meaning set out in Condition 8;
Renminbi Currency Event has the meaning set out in Condition 6(g);
Reorganisation means the conveyance, transfer or lease of the properties and assets of the Issuer substantially as an entirety to any Person that guarantees the Issuer's obligations under these presents in accordance with this Clause;
repay, redeem and pay shall each include both the others and cognate expressions shall be construed accordingly;
Retained Notes means Notes specified as such in the applicable Final Terms unless and until such Notes have been sold by or on behalf of the Issuer or any Subsidiary to a third party and are no longer held by or on behalf of the Issuer or any such Subsidiary;
Rule 144A Legend means the transfer restriction legend under the Securities Act set out in the form of DTC Restricted Certificate in Part 9 of the Second Schedule and the DTC Restricted Global Certificate in Part 4 of the Second Schedule;
Securities Act means the United States Securities Act of 1933, as amended;
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Series means a Tranche of Notes together with any further Tranche or Tranches of Notes which are (a) expressed to be consolidated and form a single series and (b) identical in all respects (including as to listing) except for their respective Issue Dates, Interest Commencement Dates and/or Issue Prices and the expressions Notes of the relevant Series, holders of Notes of the relevant Series and related expressions shall be construed accordingly;
Stock Exchange means the London Stock Exchange, the ISM or any other or further stock exchange(s) on which any Notes may from time to time be listed, and references in these presents to the relevant Stock Exchange shall, in relation to any Notes, be references to the Stock Exchange on which such Notes are, from time to time, or are intended to be, listed;
Subsidiary means, in relation to any entity, any company which is for the time being a subsidiary (within the meaning of Section 1159 of the Companies Act 2006) of such entity;
Successor means, in relation to the Issuing and Principal Paying Agent, the other Paying Agents, the Reference Banks, the Calculation Agent, the Registrar and the Transfer Agents, any successor to any one or more of them in relation to the Notes which shall become such pursuant to the provisions of these presents and/or the Agency Agreement (as the case may be) and/or such other or further issuing and principal paying agent, paying agents, reference banks, calculation agent, registrar and transfer agents (as the case may be) in relation to the Notes as may (with the prior approval of, and on terms previously approved by, the Trustee in writing) from time to time be appointed as such, and/or, if applicable, such other or further specified offices (in the former case being within the same city as those for which they are substituted) as may from time to time be nominated, in each case by the Issuer and (except in the case of the initial appointments and specified offices made under and specified in the Conditions and/or the Agency Agreement, as the case may be) notice of whose appointment or, as the case may be, nomination has been given to the Noteholders;
Successor in Business means any company which, as the result of any amalgamation, merger or reconstruction the terms of which have previously been approved in writing by the Trustee:
(a) owns beneficially the whole or substantially the whole of the undertaking, property and assets owned by the Issuer immediately prior thereto; and
(b) carries on, as successor to the Issuer, the whole or substantially the whole of the business carried on by the Issuer immediately prior thereto;
Talons means the talons (if any) appertaining to, and exchangeable in accordance with the provisions therein contained for further Coupons appertaining to, the Definitive Bearer Notes (other than the Zero Coupon Notes), such talons being in the form or substantially in the form set out in Part 7 of the Second Schedule or in such other form as may be agreed between the Issuer, the Issuing and Principal Paying Agent, the Trustee and the relevant Dealer(s) and includes any replacements for Talons issued pursuant to Condition 11;
TARGET2 System has the meaning set out in Condition 4(b)(i);
Temporary Global Note means a temporary global note in the form or substantially in the form set out in Part 1 of the Second Schedule with such modifications (if any) as may be agreed between the Issuer, the Issuing and Principal Paying Agent, the Trustee and the relevant Dealer(s), together with the copy of the applicable Final Terms annexed thereto, comprising some or all of the Notes of the same Series, issued by the Issuer pursuant to the Programme Agreement or any other agreement between the Issuer and the relevant Dealer(s), the Agency Agreement and these presents;
these presents means this Trust Deed and the Schedules and any trust deed supplemental hereto and the Schedules (if any) thereto and the Notes, the Certificates, the Coupons, the Talons, the
14
Conditions and, unless the context otherwise requires, the Final Terms, all as from time to time modified in accordance with the provisions herein or therein contained;
Tranche means all Notes which are identical in all respects (including as to listing);
Transfer Agents means, in relation to all or any Series of the Notes, the several institutions at their respective specified offices initially appointed as transfer agents in relation to such Notes by the Issuer pursuant to the Agency Agreement and/or, if applicable, any Successor transfer agents in relation thereto;
Trust Corporation means a corporation entitled by rules made under the Public Trustee Act 1906 of Great Britain or entitled pursuant to any other comparable legislation applicable to a trustee in any other jurisdiction to carry out the functions of a custodian trustee;
Trustee Acts means the Trustee Act 1925 and the Trustee Act 2000;
United States has the meaning set out in Condition 8;
Zero Coupon Note means a Note on which no interest is payable;
words denoting the singular shall include the plural and vice versa;
words denoting one gender only shall include the other genders; and
words denoting persons only shall include firms and corporations and vice versa.
1.2 (a) All references in these presents to principal and/or principal amount and/or interest in respect of the Notes or to any moneys payable by the Issuer under these presents shall, unless the context otherwise requires, be construed in accordance with Condition 6(f).
(b)
All references in these presents to any statute or any provision of any statute shall be deemed also to refer to any
statutory modification or re-enactment thereof or any statutory instrument, order or regulation made thereunder or
under any such modification or re-enactment.
(c)
All references in these presents to guarantees or to an obligation being guaranteed shall be deemed to include
respectively references to indemnities or to an indemnity being given in respect thereof.
(d)
All references in these presents to any action, remedy or method of proceeding for the enforcement of the rights of
creditors shall be deemed to include, in respect of any jurisdiction other than England, references to such action,
remedy or method of proceeding for the enforcement of the rights of creditors available or appropriate in such
jurisdiction as shall most nearly approximate to such action, remedy or method of proceeding described or referred
to in these presents.
(e)
All references in these presents to Euroclear and/or Clearstream, Luxembourg and/or DTC shall, whenever the
context so permits (but not in the case of any NGN or any Registered Global Note held under the NSS), be deemed
to include references to any additional or alternative clearing system as is approved by the Issuer, the Issuing and
Principal Paying Agent and the Trustee.
(f)
Unless the context otherwise requires words or expressions used in these presents shall bear the same meanings as in
the Companies Act 2006 of Great Britain.
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(g)
In this Trust Deed references to Schedules, Clauses, subclauses, paragraphs and subparagraphs shall be construed as
references to the Schedules to this Trust Deed and to the Clauses, subclauses, paragraphs and subparagraphs of this
Trust Deed respectively.
(h)
In these presents tables of contents and Clause headings are included for ease of reference and shall not affect the
construction of these presents.
(i)
All references in these presents involving compliance by the Trustee with a test of reasonableness shall be deemed
to include a reference to a requirement that such reasonableness shall be determined by reference solely to the
interests of the holders of the Notes of the relevant one or more series as a class.
(j)
All references in these presents to the records of Euroclear and Clearstream, Luxembourg shall be to the records that
each of Euroclear and Clearstream, Luxembourg holds for its customers which reflect the amount of such
customer's interest in the Notes.
1.3 Words and expressions defined in these presents or the Agency Agreement or used in the applicable Final Terms shall have the same meanings where used herein unless the context otherwise requires or unless otherwise stated and provided that, in
the event of inconsistency between the Agency Agreement and these presents, these presents shall prevail and, in the event of inconsistency between the Agency Agreement or these presents and the applicable Final Terms, the applicable Final Terms shall prevail.
1.4 All references in these presents to the relevant currency shall be construed as references to the currency in which payments in respect of the Notes and/or Coupons of the relevant Series are to be made as indicated in the applicable Final Terms.
1.5 All references in these presents (i) to Notes (other than Exempt Notes) being "listed" or "having a listing" shall (a) in relation to the London Stock Exchange, be construed to mean that such Notes have been admitted to the Official List by the FCA and to trading on the Market and (b) in relation to any other European Economic Area Stock Exchange, be construed to mean that such Notes have been admitted to trading on a market with that jurisdiction which is a regulated market for the purposes of the Markets in Financial Instruments Directive and (ii) in relation to any Exempt Notes being "listed" or "having a listing" (a) on the London Stock Exchange, "listing" and "listed" shall be construed to mean that such Notes have been admitted to trading on the ISM and (b) all other references shall be construed to mean that such Exempt Notes have been admitted to trading on such other or further stock exchange(s) or markets (other than a stock exchange or market which is a regulated market for the purposes of the Markets in Financial Instruments Directive) as may be agreed between the Issuer and the relevant Dealer and all references in these presents to "listing" or "listed" shall include references to "quotation" and "quoted" respectively.
1.6 Wherever in these presents there is a requirement for the consent of, or a request from, the Noteholders, then, for so long as any of the Registered Notes is registered in the name of DTC or its nominee and represented by a DTC Restricted Global Certificate, DTC may send an omnibus proxy to the Issuer in accordance with and in the form used by DTC as part of its usual procedures from time to time. Such omnibus proxy shall assign the right to give such consent or, as the case may be, make such request to DTC's direct participants as of the record date specified therein any such assignee participant may give the relevant consent or, as the case may be, make the relevant request in accordance with these presents.
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2.
AMOUNT AND ISSUE OF THE NOTES
2.1 Amount of the Notes, Final Terms and Legal Opinions
The Notes will be issued in Series in an aggregate nominal amount from time to time outstanding not exceeding the Programme Limit from time to time and for the purpose of determining such aggregate nominal amount Clause 3.5 of the Programme Agreement shall apply.
By not later than 10.00 a.m. (London time) on the London Business Day preceding each proposed Issue Date, the Issuer shall deliver or cause to be delivered to the Trustee a draft of the applicable Final Terms and drafts of all legal opinions (if any) to be given in relation to the proposed issue and shall notify the Trustee in writing without delay of the relevant Issue Date and the nominal amount of the Notes to be issued and upon the issue of the relevant Notes shall deliver or cause to be delivered to the Trustee a copy of the final form of the applicable Final Terms. Upon the issue of the relevant Notes, such Notes shall become constituted by these presents without further formality.
Before the first issue of Notes occurring after each anniversary of this Trust Deed , and on such other occasions as the Trustee so requests (if (a) the Trustee considers it necessary in view of a change (or proposed change) in applicable law or regulations (or the interpretation or application thereof) affecting the Issuer, these presents, the Programme Agreement or the Agency Agreement, or (b) the Trustee has other reasonable grounds for such request), the Issuer will procure that a further legal opinion or further legal opinions in such form and with such content as the Trustee may require from the legal advisers specified in the Programme Agreement or such other legal advisers as the Trustee may require is/are delivered to the Trustee. Whenever such a request is made with respect to any Notes to be issued, the receipt of such opinion(s) in a form satisfactory to the Trustee shall be a further condition precedent to the issue of those Notes.
2.2 Covenant to repay principal and to pay interest
The Issuer covenants with the Trustee that it will, as and when the Notes of any Series or any of them becomes due to be redeemed in accordance with the Conditions, unconditionally pay or procure to be paid to or to the order of the Trustee, in the case of any relevant currency other than euro, in the principal financial centre for the relevant currency and, in the case of euro, in a city in which banks have access to the TARGET2 System in each case in immediately available funds the principal amount in respect of the Notes of such Series becoming due for redemption on that date and (except in the case of Zero Coupon Notes) shall (subject to the provisions of the Conditions) in the meantime and until redemption in full of the Notes of such Series (both before and after any judgment or other order of a court of competent jurisdiction) unconditionally pay or procure to be paid to or to the order of the Trustee as aforesaid interest (which shall accrue from day to day) on the nominal amount of the Notes outstanding of such Series at rates and/or in amounts calculated from time to time in accordance with, or specified in, and on the dates provided for in, the Conditions (subject to Clause 2.4) PROVIDED THAT:
(a)
every payment of principal or interest or other sum due in respect of the Notes made to or to the order of the Issuing
and Principal Paying Agent in the manner provided in the Agency Agreement shall be in satisfaction pro tanto of
the relative covenant by the Issuer in this Clause contained in relation to the Notes of such Series (including, in the
case of Notes represented by a NGN, whether or not the corresponding entries have been made in the records of
Euroclear and Clearstream, Luxembourg) except to the extent that there is a default in the subsequent payment
thereof in accordance with the Conditions to the relevant Noteholders or Couponholders (as the case may be);
(b) in the case of any payment of principal made to the Trustee or the Issuing and Principal Paying Agent after the due date or on or after accelerated maturity following an Event of
17
Default interest shall continue to accrue on the nominal amount of the relevant Notes (except in the case of Zero Coupon Notes to which the provisions of Condition 7(i) shall apply) (both before and after any judgment or other order of a court of competent jurisdiction) at the rates aforesaid (or, if higher, the rate of interest on judgment debts for the time being provided by English law) up to and including the date which the Trustee determines to be the date on and after which payment is to be made in respect thereof as stated in a notice given to the holders of such Notes (such date to be not later than 30 days after the day on which the whole of such principal amount, together with an amount equal to the interest which has accrued and is to accrue pursuant to this proviso up to and including that date, has been received by the Trustee or the Issuing and Principal Paying Agent); and
(c)
in any case where payment of the whole or any part of the principal amount of any Note is improperly withheld or
refused upon due presentation thereof or of the Certificate in respect thereof (other than in circumstances
contemplated by 2.2(b) above), interest shall accrue on the nominal amount of such Note (except in the case of Zero
Coupon Notes to which the provisions of Condition 7(i) shall apply) payment of which has been so withheld or
refused (both before and after any judgment or other order of a court of competent jurisdiction) at the rates aforesaid
(or, if higher, the rate of interest on judgment debts for the time being provided by English law) from the date of
such withholding or refusal until the date on which, upon further presentation of the relevant Note or Certificate, as
the case may be, payment of the full amount (including interest as aforesaid) in the relevant currency payable in
respect of such Note is made or (if earlier) the seventh day after notice is given to the relevant Noteholder(s)
(whether individually or in accordance with Condition 14) that the full amount (including interest as aforesaid) in
the relevant currency in respect of such Note is available for payment, provided that, upon further presentation
thereof being duly made, such payment is made.
The Trustee will hold the benefit of this covenant on trust for the Noteholders and the Couponholders and itself in accordance with these presents.
2.3 Trustee's requirements regarding Agents etc
At any time after an Event of Default or a Potential Event of Default shall have occurred or the Trustee shall have received any money which it proposes to pay under Clause 9 to the relevant Noteholders and/or Couponholders, the Trustee may:
(a)
by notice in writing to the Issuer and the Agents require the Agents pursuant to the Agency Agreement:
(i)
to act thereafter as Agents of the Trustee in relation to payments to be made by or on behalf of the Trustee
under the terms of these presents mutatis mutandis on the terms provided in the Agency Agreement (save
that the Trustee's liability under any provisions thereof for the indemnification, remuneration and payment
of out-of-pocket expenses of the Agents shall be limited to the amounts for the time being held by the
Trustee on the trusts of these presents relating to the Notes of the relevant Series and the relative
Certificates and Coupons and available for such purpose) and thereafter to hold all Notes and Coupons and
all sums, documents and records held by them in respect of Notes, Certificates and Coupons on behalf of
the Trustee; or
(ii)
to deliver up all Notes, Certificates and Coupons and all sums, documents and records held by them in
respect of Notes, Certificates and Coupons, in each case held by them in their capacity as Agent, to the
Trustee or as the Trustee shall direct in such notice provided that such notice shall be deemed not to apply
to any
18
documents or records which the relevant Agent is obliged not to release by any law or regulation; and
(b)
by notice in writing to the Issuer require it to make all subsequent payments in respect of the Notes and Coupons to
or to the order of the Trustee and not to the Issuing and Principal Paying Agent and, with effect from the issue of
any such notice to the Issuer and until such notice is withdrawn, proviso (i) to subclause 2.2 of this Clause relating
to the Notes shall cease to have effect.
2.4 Rate of interest after Notes due and repayable under Condition 10(A)
If the Floating Rate Notes, CMS Linked Notes or Inflation Linked Interest Notes of any Series become immediately due and repayable under Condition 10(A) the rate and/or amount of interest payable in respect of them will be calculated at the same intervals as if such Notes had not become due and repayable, the first of which will commence on the expiry of the Interest Period during which the Notes of the relevant Series become so due and repayable mutatis mutandis in accordance with the provisions of Condition 4(b) except that the rates of interest need not be published.
2.5 Currency of payments
All payments in respect of, under and in connection with these presents and the Notes of any Series to the relevant Noteholders and Couponholders shall be made in the relevant currency.
2.6 Further Notes
The Issuer shall be at liberty from time to time (but subject always to the provisions of these presents) without the consent of the Noteholders or Couponholders to create and issue further Notes ranking pari passu in all respects (or in all respects save for the date from which interest thereon accrues and the amount of the first payment of interest on such further Notes) and so that the same shall be consolidated and form a single series with the outstanding Notes of a particular Series.
2.7 Separate Series
The Notes of each Series shall form a separate Series of Notes and accordingly, unless for any purpose the Trustee in its absolute discretion shall otherwise determine, the provisions of this Clause and of Clauses 3 to 21 (both inclusive) and 22.2 and the Third Schedule shall apply mutatis mutandis separately and independently to the Notes of each Series and in such Clauses and Schedule the expressions Notes, Noteholders, Coupons, Couponholders and Talons shall be construed accordingly.
3.
FORMS OF THE NOTES
3.1 Global Notes
(a)
The Notes of each Tranche will initially be represented by either:
(i)
in the case of Bearer Notes, a single Temporary Global Note which shall be exchangeable for either
Definitive Bearer Notes together with, where applicable, (except in the case of Zero Coupon Notes)
Coupons and, where applicable, Talons attached or a Permanent Global Note or (in the case of
Exchangeable Bearer Notes) Registered Notes, in each case in accordance with the provisions of such
Temporary Global Note. Each Permanent Global Note shall be exchangeable for Definitive Bearer Notes
together with, where applicable, (except in the case of Zero Coupon Notes) Coupons and, where applicable,
Talons attached or (in the case of
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Exchangeable Bearer Notes) Registered Notes, in accordance with the provisions of such Permanent Global Note; or
(ii)
in the case of Bearer Notes, a single Permanent Global Note which shall be exchangeable for Definitive
Bearer Notes together with, where applicable, (except in the case of Zero Coupon Notes) Coupons and,
where applicable, Talons attached or (in the case of Exchangeable Bearer Notes) Registered Notes, in
accordance with provisions of such Permanent Global Note; or
(iii) in the case of Registered Notes which are sold outside the United States in "offshore transactions" within the meaning of Regulation S, a Regulation S Global Certificate which will be exchangeable for Regulation S Certificates and/or Notes represented by a DTC Restricted Global Certificate in accordance with the provisions of such Regulation S Global Certificates; or
(iv) in the case of Registered Notes which are sold in the United States, to qualified institutional buyers within the meaning of Rule 144A, a DTC Restricted Global Certificate which will be exchangeable for DTC Restricted Certificates and/or Notes represented by a Regulation S Global Certificate in accordance with the provisions of such DTC Restricted Global Certificate.
All Global Notes shall be prepared, completed and delivered to a common depositary (in the case of a CGN) or common safekeeper (in the case of a NGN or Registered Notes held under the NSS) for Euroclear and Clearstream, Luxembourg, each Regulation S Global Certificate shall be prepared, completed and delivered to, and registered in the name of a nominee of, a common depositary or common safekeeper for Euroclear and Clearstream, Luxembourg and each DTC Restricted Global Certificate shall be prepared, completed and delivered to a custodian for and registered in the name of a nominee of DTC, in each case in accordance with the provisions of the Programme Agreement or to or with or in the name of another appropriate custodian, nominee or depositary in accordance with any other agreement between the Issuer and the relevant Dealer(s) and, in each case, the Agency Agreement.
(b) Each Temporary Global Note shall be printed or typed in the form or substantially in the form set out in Part 1 of the Second Schedule and may be a facsimile. Each Temporary Global Note shall have annexed thereto a copy of the applicable Final Terms and shall be signed manually or in facsimile by a person duly authorised by the Issuer on behalf of the Issuer and shall be authenticated by or on behalf of the Issuing and Principal Paying Agent and shall, in the case of a Eurosystem-eligible NGN, be effectuated by the common safekeeper acting on the instructions of the Issuing and Principal Paying Agent. Each Temporary Global Note so executed and authenticated (and effectuated, if applicable) shall be a binding and valid obligation of the Issuer and title thereto shall pass by delivery.
(c)
Each Permanent Global Note shall be printed or typed in the form or substantially in the form set out in Part 2 of the Second
Schedule and may be a facsimile. Each Permanent Global Note shall have annexed thereto a copy of the applicable Final
Terms and shall be signed manually or in facsimile by a person duly authorised by the Issuer on behalf of the Issuer and shall
be authenticated by or on behalf of the Issuing and Principal Paying Agent and shall, in the case of a Eurosystem-eligible
NGN, be effectuated by the common safekeeper acting on the instructions of the Issuing and Principal Paying Agent. Each
Permanent Global Note so executed and authenticated (and effectuated, if applicable) shall be a binding and valid obligation
of the Issuer and title thereto shall pass by delivery.
(d) Each Regulation S Global Certificate shall be printed or typed in the form or substantially in the form set out in Part 3 of the Second Schedule and may be a facsimile. Each Regulation S Global
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Certificate shall have annexed thereto a copy of the applicable Final Terms and shall be signed manually or in facsimile by a person duly authorised by the Issuer on behalf of the Issuer and shall be authenticated by or on behalf of the Registrar and shall, in the case of Notes intended to be held under the NSS, be effectuated by the common safekeeper acting on the instructions of the Issuer. Each Regulation S Global Certificate shall be valid evidence of binding and valid obligations of the Issuer and title thereto shall pass upon registration in the Register.
(e)
Each DTC Restricted Global Certificate shall be printed or typed in the form or substantially in the form set out in Part 4 of
the Second Schedule and may be a facsimile. Each DTC Restricted Global Certificate shall have annexed thereto a copy of
the applicable Final Terms and shall be signed manually or in facsimile by a person duly authorised by the Issuer on behalf of
the Issuer and shall be authenticated by or on behalf of the Registrar. Each DTC Restricted Global Certificate shall be valid
evidence of binding and valid obligations of the Issuer and title thereto shall pass upon registration in the Register.
3.2 Definitive Bearer Notes
(a) The Definitive Bearer Notes, the Coupons and the Talons shall be to bearer in the respective forms or substantially in the respective forms set out in Parts 5, 6 and 7 respectively, of the Second Schedule. The Definitive Bearer Notes, the Coupons and the Talons shall be serially numbered and, if listed or quoted, shall be security printed in accordance with the requirements (if any) from time to time of the relevant Stock Exchange and the relevant Conditions shall be incorporated by reference (where applicable to these presents) into such Definitive Bearer Notes if permitted by the relevant Stock Exchange (if any), or, if not so permitted, the Definitive Bearer Notes shall be endorsed with or have attached thereto the relevant Conditions, and, in either such case, the Definitive Bearer Notes shall have endorsed thereon or attached thereto a copy of the applicable Final Terms (or the relevant provisions thereof). Title to the Definitive Bearer Notes, the Coupons and the Talons shall pass by delivery.
(b) The Definitive Bearer Notes shall be signed manually or in facsimile by a person duly authorised by the Issuer on behalf of the Issuer and shall be authenticated by or on behalf of the Issuing and Principal Paying Agent. The Definitive Bearer Notes so executed and authenticated, and the Coupons and Talons, upon execution and authentication of the relevant Definitive Bearer Notes, shall be binding and valid obligations of the Issuer. The Coupons and the Talons shall not be signed. No Definitive Bearer Note and none of the Coupons or Talons appertaining to such Definitive Bearer Note shall be binding or valid until such Definitive Bearer Note shall have been executed and authenticated as aforesaid.
3.3 Definitive Certificates
(a)
The DTC Restricted Certificates and Regulation S Certificates shall be in the respective forms or substantially in the
respective forms set out in Parts 8 and 9, respectively of the Second Schedule and shall be printed in accordance with
applicable legal and stock exchange requirements. Title to such certificates shall pass upon registration in the Register.
(b) The DTC Restricted Certificates and Regulation S Certificates shall be signed manually or in facsimile by a person duly authorised by the Issuer on behalf of the Issuer and shall be authenticated by or on behalf of the Registrar. The DTC Restricted Certificates and Regulation S Certificates so executed and authenticated shall be valid evidence of binding and valid obligations of the Issuer. Title to such Certificates shall pass upon registration in the Register.
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3.4 Facsimile signatures
The Issuer may use the facsimile signature of any person who at the date such signature is affixed to a Global Note or a Definitive Bearer Note or a Certificate is duly authorised by the Issuer notwithstanding that at the time of issue of such Note or Certificate he may have ceased for any reason to be so authorised or to hold such office.
4.
FEES, DUTIES AND TAXES
The Issuer will pay any stamp, issue, registration, documentary and other fees, duties or taxes (if any), including interest and penalties, payable (a) in the United Kingdom, Belgium, Luxembourg and the United States of America on or in connection with (i) the execution and delivery of these presents and (ii) the constitution and original issue of the Notes, the Certificates and the Coupons and (b) in any jurisdiction on or in connection with any action taken by or on behalf of the Trustee or (where permitted under these presents so to do) any Noteholder or Couponholder to enforce, or to resolve any doubt concerning, or for any other purpose in relation to, these presents.
5.
COVENANT OF COMPLIANCE
The Issuer covenants with the Trustee that it will comply with and perform and observe all the provisions of these presents which are expressed to be binding on it. The Notes and the Coupons shall be held subject to the provisions contained in these presents and the Conditions shall be binding on the Issuer, the Trustee, the Noteholders and the Couponholders and all persons claiming through or under them. The Trustee shall be entitled to enforce the obligations of the Issuer under the Notes, the Coupons and the Conditions in the manner therein provided as if the same were set out and contained in this Trust Deed, which shall be read and construed as one document with the Notes and the Coupons. The Trustee shall hold the benefit of this covenant upon trust for itself and the Noteholders and the Couponholders according to its and their respective interests.
6.
CANCELLATION OF NOTES AND RECORDS
6.1 The Issuer shall procure that all Notes (other than Retained Notes) issued by it (a) redeemed or (b) purchased for cancellation by or on behalf of the Issuer or any Subsidiary of the Issuer and surrendered for cancellation or (c) which, being Bearer Notes which have been mutilated or defaced, have been surrendered and replaced pursuant to Condition 11 or (d) exchanged as provided in these presents (together in each case, in the case of Definitive Bearer Notes, with all unmatured Coupons attached thereto or delivered therewith) and, in the case of Definitive Bearer Notes, all relative Coupons paid in accordance with the relevant Conditions or which, being mutilated or defaced, have been surrendered and replaced pursuant to Condition 11 shall forthwith be cancelled by or on behalf of the Issuer and a certificate stating:
(a)
the aggregate nominal amount of Notes which have been redeemed and the amounts paid in respect thereof and the
aggregate amounts in respect of Coupons which have been paid;
(b)
the serial numbers of such Notes in definitive form or the Certificates representing Registered Notes;
(c)
the total numbers (where applicable, of each denomination) by maturity date of such Coupons;
(d)
the aggregate amount of interest paid (and the due dates of such payments) on Global Notes and Registered Notes;
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(e)
the aggregate nominal amount of Notes (if any) which have been purchased by or on behalf of the Issuer or any
Subsidiary of the Issuer and cancelled and the serial numbers of such Notes in definitive form or of the Certificates
representing Registered Notes and, in the case of Definitive Bearer Notes, the total number (where applicable, of
each denomination) by maturity date of the Coupons and Talons attached thereto or surrendered therewith;
(f)
the aggregate nominal amounts of Notes and the aggregate amounts in respect of Coupons which have been so
exchanged or surrendered and replaced and the serial numbers of such Notes in definitive form or of the Certificates
representing Registered Notes and the total number (where applicable, of each denomination) by maturity date of
such Coupons and Talons; and
(g)
the total number (where applicable, of each denomination) by maturity date of Talons which have been exchanged
for further Coupons,
shall be given to the Trustee by or on behalf of the Issuer as soon as possible and in any event within four months after the date of such redemption, purchase, payment, exchange or replacement (as the case may be). The Trustee may accept such certificate as conclusive evidence of redemption, purchase, exchange or replacement pro tanto of the Notes or payment of interest thereon or exchange of the relative Talons respectively and of cancellation of the relative Notes and Coupons.
6.2 The Issuer shall procure (a) that the Issuing and Principal Paying Agent and/or the Registrar shall keep a full and complete record of all Notes, Coupons and Talons issued by it (other than serial numbers of Coupons) and of their redemption or purchase and cancellation and of all replacement notes, coupons or talons issued in substitution for lost, stolen, mutilated, defaced or destroyed Bearer Notes, Coupons or Talons and of all transfers and exchanges of Registered Notes (b) that the Agent and the Registrar shall, in respect of the Coupons of each maturity where the relevant Bearer Note is redeemed prior to its maturity date, retain until the expiry of 10 years from the Relevant Date in respect of such Coupons a list of the Coupons of that maturity still remaining unpaid or unexchanged and (c) that such records shall be made available to the Trustee during normal business hours.
7.
ENFORCEMENT
7.1 The Trustee may at any time, at its discretion and without notice, take such proceedings and/or other action as it may think fit against or in relation to the Issuer to enforce its obligations under these presents.
7.2 Proof that as regards any specified Note or Coupon the Issuer has made default in paying any amount due in respect of such Note or Coupon shall (unless the contrary be proved) be sufficient evidence that the same default has been made as regards all other Notes or Coupons (as the case may be) in respect of which the relevant amount is due and payable.
8.
PROCEEDINGS, ACTION AND INDEMNIFICATION
8.1 The Trustee shall not be bound to take any proceedings mentioned in Condition 10 or any other action in relation to these presents unless respectively directed or requested to do so (a) by an Extraordinary Resolution or (b) in writing by the holders of at least one-quarter in nominal amount of the Notes (excluding Retained Notes) then outstanding and in either case then only if it shall be indemnified and/or secured and/or prefunded by the relevant Noteholders to its satisfaction against all proceedings, claims and demands to which it may be liable and against all costs, charges, liabilities and expenses which may be incurred by it in connection with such enforcement, including the costs of its managements' time and/or other internal resources, calculated using its normal hourly rates in force from time to time.
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8.2 Only the Trustee may enforce the provisions of these presents. No Noteholder or Couponholder shall be entitled to proceed directly against the Issuer to enforce the performance of any of the provisions of these presents unless the Trustee having become bound as aforesaid to take proceedings fails or is unable to do so within 60 days and such failure or inability is continuing.
9.
APPLICATION OF MONEYS
All moneys received by the Trustee under these presents from the Issuer (including any moneys which represent principal or interest in respect of Notes or Coupons which have become void, or in respect of claims which have become prescribed, under Condition 9) shall, unless and to the extent attributable, in the opinion of the Trustee, to a particular Series of the Notes, be apportioned pari passu and rateably between each Series of the Notes, and all moneys received by the Trustee under these presents from the Issuer to the extent attributable in the opinion of the Trustee to a particular Series of the Notes or which are apportioned to such Series as aforesaid, be held by the Trustee upon trust to apply them (subject to Clause 11):
FIRST in payment or satisfaction of all amounts then due and unpaid under Clauses 14 and/or 15(j) to the Trustee and/or any Appointee;
SECONDLY in or towards payment pari passu and rateably of all principal and interest then due and unpaid in respect of the Notes of that Series;
THIRDLY in or towards payment pari passu and rateably of all principal and interest then due and unpaid in respect of the Notes of each other Series; and
FOURTHLY in payment of the balance (if any) to the Issuer (without prejudice to, or liability in respect of, any question as to how such payment to the Issuer shall be dealt with as between the Issuer and any other person),
PROVIDED ALWAYS that any payment required to be made by the Trustee pursuant to these presents shall only be made subject to any applicable laws and regulations.
10. NOTICE OF PAYMENTS
The Trustee shall give notice to the relevant Noteholders in accordance with Condition 14 of the day fixed for any payment to them under Clause 9. Such payment may be made in accordance with Condition 6 and any payment so made shall be a good discharge to the Trustee.
11. INVESTMENT BY TRUSTEE
11.1 If the amount of the moneys at any time available for the payment of principal and interest in respect of the Notes issued by the Issuer under Clause 9 shall be less than 10% of the nominal amount of the Notes then outstanding the Trustee may at its discretion invest such moneys in some or one of the investments authorised below. The Trustee at its discretion may vary such investments and may accumulate such investments and the resulting income until the accumulations, together with any other funds for the time being under the control of the Trustee and available for such purpose, amount to at least 10% of the nominal amount of the Notes then outstanding and then such accumulations and funds shall be applied under Clause 9.
11.2 Any moneys which under the trusts of these presents ought to or may be invested by the Trustee may be invested in the name or under the control of the Trustee (or, if required to comply with applicable law a custodian, co-trustee or separate trustee appointed by it) in any investments for the time being authorised by law for the investment by trustees of trust moneys or in any other investments whether similar to the aforesaid or not which may be selected by the Trustee or by placing the same on
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deposit in the name or under the control of the Trustee (or, if required to comply with applicable law a custodian, co-trustee or separate trustee appointed by it) at such bank or other financial institution and in such currency as the Trustee may think fit. If that bank or institution is the Trustee or a Subsidiary, holding or associated company of the Trustee, it need only account for an amount of interest equal to the amount of interest which would, at then current rates, be payable by it on such a deposit to an independent customer. The Trustee may at any time vary any such investments for or into other investments or convert any moneys so deposited into any other currency and shall not be responsible for any loss resulting from any such investments or deposits, whether due to depreciation in value, fluctuations in exchange rates or otherwise.
12. PARTIAL PAYMENTS
Upon any payment under Clause 9 (other than payment in full against surrender of a Note, Certificate or Coupon) the Note, Certificate or Coupon in respect of which such payment is made shall (except in the case of a NGN or a Registered Global Note held under the NSS) be produced to the Trustee or the Paying Agent by or through whom such payment is made and the Trustee shall or shall cause such Paying Agent to enface thereon a memorandum of the amount and the date of payment but the Trustee may in any particular case dispense with such production and enfacement upon such indemnity being given as it shall think sufficient.
13. COVENANTS
The Issuer covenants with the Trustee that, so long as any of the Notes remains outstanding (or, in the case of paragraphs (f), (g), (i), (k) and (q), so long as any of the Notes or the relative Coupons remains liable to prescription or, in the case of subparagraph (m), until the expiry of a period of 30 days after the Relevant Date) it shall:
(a)
give or procure to be given to the Trustee such opinions, certificates and information as it shall reasonably require
and in such form as it shall reasonably require (including without limitation the procurement of all such certificates
called for by the Trustee pursuant to Clause 16.3 and advice of the Indexation Adviser pursuant to Condition 5) for
the purpose of the discharge or exercise of the duties, trusts, powers, authorities and discretions vested in it under
these presents or by operation of law;
(b)
at all times keep and procure its Subsidiaries to keep proper books of account and, following the occurrence of an
Event of Default or Potential Event of Default or if the Trustee reasonably considers that any such event is likely to
occur, allow and procure its Subsidiaries to allow the Trustee and any person appointed by the Trustee to whom the
Issuer or the relevant Subsidiary (as the case may be) shall have no reasonable objection free access to such books of
account during normal business hours;
(c)
send to the Trustee (in addition to any copies to which it may be entitled as a holder of any securities of the Issuer)
two copies in English of every balance sheet, profit and loss account, report, circular and notice of general meeting
and every other document (other than documents of a promotional, advertising or marketing nature only) issued or
sent to its shareholders together with any of the foregoing, and every document issued or sent to holders of securities
other than its shareholders (including the Noteholders) as soon as practicable after the issue or publication thereof;
(d)
forthwith give notice in writing to the Trustee of the happening of any Event of Default or any Potential Event of
Default, Renminbi Currency Event, Early Termination Event or Change of Control Put Event;
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(e)
give to the Trustee (i) within 14 days after demand by the Trustee therefor and (ii) (without the necessity for any
such demand) promptly after the publication of its audited accounts in respect of each financial year commencing
with the financial year ended 31 March 1999 and in any event not later than 180 days after the end of each such
financial year a certificate signed by two Directors of the Issuer to the effect that, to the best of the knowledge,
information and belief of the persons so certifying, they having made all reasonable enquiries, as at a date not more
than seven days before delivering such certificate (the relevant certification date) there did not exist and had not
existed since the relevant certification date of the previous certificate (or in the case of the first such certificate the
date hereof) any Event of Default or any Potential Event of Default (or if such exists or existed specifying the same)
and that during the period from and including the relevant certification date of the last such certificate (or in the case
of the first such certificate the date hereof) to and including the relevant certification date of such certificate the
Issuer has complied with all its obligations contained in these presents or (if such is not the case) specifying the
respects in which it has not complied;
(f)
so far as permitted by law, at all times execute all such further documents and do all such acts and things as may in
the opinion of the Trustee be necessary at any time or times to give effect to the terms and conditions of these
presents;
(g)
at all times maintain an Issuing and Principal Paying Agent, other Paying Agents, a Calculation Agent, Reference
Banks, a Registrar and Transfer Agents in accordance with the Conditions;
(h) use all reasonable endeavours to procure the Issuing and Principal Paying Agent to notify the Trustee forthwith in the event that it does not, on or before the due date for any payment in respect of the Notes or any of them or any of the relative Coupons, receive unconditionally pursuant to the Agency Agreement payment of the full amount in the relevant currency of the moneys payable on such due date on all such Notes or Coupons as the case may be;
(i)
in the event of the unconditional payment to the Issuing and Principal Paying Agent or the Trustee of any sum due
in respect of the Notes or any of them or any of the relative Coupons being made after the due date for payment
thereof forthwith give or procure to be given notice to the relevant Noteholders in accordance with Condition 14 that
such payment has been made;
(j)
if the applicable Final Terms indicates that the Notes are listed, use all reasonable endeavours to maintain the
quotation or listing on the relevant Stock Exchange of those of the Notes which are quoted or listed on the relevant
Stock Exchange or, if it is unable to do so having used all reasonable endeavours, use all reasonable endeavours to
obtain and maintain a quotation or listing of such Notes on such other stock exchange or exchanges or securities
market or markets as the Issuer may (with the prior written approval of the Trustee) decide and shall also upon
obtaining a quotation or listing of such Notes on such other stock exchange or exchanges or securities market or
markets enter into a trust deed supplemental to this Trust Deed to effect such consequential amendments to these
presents as the Trustee may require or as shall be requisite to comply with the requirements of any such stock
exchange or securities market;
(k) give notice to the Noteholders in accordance with Condition 14 of any appointment, resignation or removal of any Issuing and Principal Paying Agent, Calculation Agent, Reference Bank, other Paying Agent, Registrar or Transfer Agent (other than the appointment of the initial Issuing and Principal Paying Agent, Calculation Agent, Reference Banks, other Paying Agents, Registrar and Transfer Agents) after having obtained the prior
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written approval of the Trustee thereto or any change of any Paying Agent's or Reference Bank's or Registrar's or Transfer Agents' specified office and (except as provided by the Agency Agreement or the Conditions); PROVIDED ALWAYS THAT so long as any of the Notes or Coupons remains liable to prescription in the case of the termination of the appointment of the Issuing and Principal Paying Agent or the Calculation Agent or the Registrar no such termination shall take effect until a new Issuing and Principal Paying Agent or Calculation Agent or the Registrar (as the case may be) has been appointed on terms previously approved in writing by the Trustee;
(l)
obtain the prior written approval of the Trustee to, and promptly give to the Trustee two copies of, the form of every
notice given to the holders of any Notes issued by it in accordance with Condition 14 (such approval, unless so
expressed, not to constitute approval for the purposes of Section 21 of the Financial Services and Markets Act 2000
of Great Britain (the FSMA) of a communication within the meaning of Section 21 of the FSMA);
(m) if payments of principal or interest in respect of the Notes or the relative Coupons by the Issuer shall become subject generally to the taxing jurisdiction of any territory or any political sub-division or any authority therein or thereof having power to tax other than or in addition to the Relevant Jurisdiction or any political sub-division or any authority therein or thereof having power to tax, immediately upon becoming aware thereof notify the Trustee of such event and (unless the Trustee otherwise agrees) enter forthwith into a trust deed supplemental to this Trust Deed in form and manner satisfactory to the Trustee, such trust deed to modify Condition 8 (but not the proviso thereto) so that, in substitution for (or, as the case may be, addition to) the references therein to the Relevant Jurisdiction or any political sub-division thereof or any authority therein or thereof having power to tax, such Condition makes reference to that other or additional territory or any political sub-division thereof or any authority therein or thereof having power to tax to whose taxing jurisdiction such payments shall have become subject as aforesaid and Condition 7(b) shall be modified accordingly;
(n) comply with and perform all its obligations under the Agency Agreement and use all reasonable endeavours to procure that the Agents comply with and perform all their respective obligations thereunder and any notice given by the Trustee pursuant to Clause 2.3(a) and that the Calculation Agent complies with and performs all its obligations under the Calculation Agency Agreement and not make any amendment to the Agency Agreement or the Calculation Agency Agreement without the prior written approval of the Trustee;
(o) in order to enable the Trustee to ascertain the nominal amount of the Notes of each Series for the time being outstanding for any of the purposes referred to in the proviso to the definition of outstanding in Clause 1 deliver to the Trustee as soon as practicable upon being so requested in writing by the Trustee a certificate in writing signed by two Directors of the Issuer setting out the total number and aggregate nominal amount of the Notes of each Series issued by it which:
(i)
up to and including the date of such certificate have been purchased by the Issuer, any Holding Company
of the Issuer or any Subsidiary of the Issuer or such Holding Company and cancelled; and
(ii)
are at the date of such certificate held by, for the benefit of, or on behalf of, the Issuer, any Holding
Company of the Issuer or any Subsidiary of the Issuer or such Holding Company;
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(p) if, in accordance with the provisions of the Conditions, interest in respect of the Notes becomes payable at the specified office of any Paying Agent in the United States of America promptly give notice thereof to the relative Noteholders in accordance with Condition 14;
(q) procure that each of its Subsidiaries observes the restrictions contained in Condition 7(g);
(r)
give prior written notice to the Trustee of any proposed redemption pursuant to Condition 7(b) or (c) and, if it shall
have given notice to the Noteholders of its intention to redeem any Notes pursuant to Condition 7(c), duly proceed
to make drawings (if appropriate) and to redeem Notes accordingly;
(s)
promptly provide the Trustee with copies of all supplements and/or amendments and/or restatements of the
Programme Agreement;
(t)
use all reasonable endeavours to procure that Euroclear and/or Clearstream, Luxembourg (as the case may be) issue
(s) any record, certificate or other document requested by the Trustee under Clause 15(w) or otherwise as soon as
practicable after such request; and
(u)
upon any sale or disposal of Retained Notes by the Issuer or any Subsidiary to an entity which is neither the Issuer
nor a Subsidiary, promptly notify the Trustee of the same in writing.
14. REMUNERATION AND INDEMNIFICATION OF TRUSTEE
14.1 The Issuer shall pay to the Trustee remuneration for its services as trustee of these presents at such rate and on such dates as shall be agreed from time to time between the Issuer and the Trustee. Such remuneration shall accrue from day to day and be payable (in priority to payments to Noteholders and Couponholders) up to and including the date when, all the Notes having become due for redemption, the redemption moneys and interest thereon to the date of redemption have been paid to the Issuing and Principal Paying Agent or the Trustee PROVIDED THAT if upon due presentation of any Note or Coupon or any Certificate in respect thereof or any cheque payment of the moneys due in respect thereof is improperly withheld or refused, remuneration will commence again to accrue until payment to such Noteholder or Couponholder is duly made.
14.2 In the event of the occurrence of an Event of Default or a Potential Event of Default or the Trustee considering it expedient or necessary or being requested by the Issuer to undertake duties which the Trustee and the Issuer agree to be of an exceptional nature or otherwise outside the scope of the normal duties of the Trustee under these presents the Issuer shall pay to the Trustee such additional remuneration, which may be calculated at the Trustee's normal hourly rates in force from time to time.
14.3 The Issuer shall in addition pay to the Trustee an amount equal to the amount (if any) of any value added tax or similar tax chargeable in respect of its remuneration under these presents.
14.4 In the event of the Trustee and the Issuer failing to agree:
(a)
(in a case to which subclause 14.1 above applies) upon the amount of the remuneration; or
(b) (in a case to which subclause 14.2 above applies) upon whether such duties shall be of an exceptional nature or otherwise outside the scope of the normal duties of the Trustee under these presents, or upon such additional remuneration,
such matters shall be determined by an investment bank or other person (acting as an expert and not as an arbitrator) selected by the Trustee and approved by the Issuer or, failing such approval,
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nominated (on the application of the Trustee) by the President for the time being of The Law Society of England and Wales (the expenses involved in such nomination and the fees of such investment bank being payable by the Issuer) and the determination of any such investment bank or other person shall be final and binding upon the Trustee and the Issuer.
14.5 The Issuer shall also pay or discharge all Liabilities incurred by the Trustee in relation to the preparation and execution of, the exercise of its powers and the performance of its duties under, and in any other manner in relation to, these presents, including but not limited to legal and travelling expenses and any stamp, issue, registration, documentary and other taxes or
duties paid or payable by the Trustee in connection with any action taken or contemplated by or on behalf of the Trustee for enforcing, or resolving any doubt concerning, or for any other purpose in relation to, these presents.
14.6 All amounts due and payable pursuant to subclause 14.5 above and/or Clause 15(j) shall be payable by the Issuer on the date specified in a written demand by the Trustee, such demand to specify the reason for such demand, and in the case of payments actually made by the Trustee prior to such demand shall (if not paid within 10 days after such demand and the Trustee so requires) carry interest from the date such payment was made or such later date as specified in such demand at the rate of one per cent. per annum above the base rate (on the date on which payment was made by the Trustee) of NatWest Bank plc from the date such demand is made, and in all other cases shall (if not paid on the date specified in such demand or, if later, within 10 days after such demand and, in either case, the Trustee so requires) carry interest at such rate from the date specified in such demand. All remuneration payable to the Trustee shall carry interest at such rate from the due date therefor.
14.7 Unless otherwise specifically stated in any discharge of these presents the provisions of this Clause and Clause 15(j) shall continue in full force and effect notwithstanding such discharge.
14.8 The Trustee shall be entitled in its absolute discretion to determine in respect of which Series of Notes any Liabilities incurred under these presents have been incurred or to allocate any such Liabilities between the Notes of any Series.
15. SUPPLEMENT TO TRUSTEE ACTS
Section 1 of the Trustee Act 2000 shall not apply to the duties of the Trustee in relation to the trusts constituted by these presents. Where there are any inconsistencies between the Trustee Acts and the provisions of these presents, the provisions of these presents shall, to the extent allowed by law, prevail and, in the case of any such inconsistency with the Trustee Act 2000, the provisions of these presents shall constitute a restriction or exclusion for the purposes of that Act. The Trustee shall
have all the powers conferred upon trustees by the Trustee Act 1925 of England and Wales and by way of supplement thereto it is expressly declared as follows:
(a)
The Trustee may in relation to these presents act on the advice or opinion of or any information obtained from any
lawyer, valuer, accountant, surveyor, banker, broker, auctioneer or other expert (including without limitation, an
Indexation Adviser) whether obtained by the Issuer, the Trustee or otherwise and shall not be responsible for any
Liability occasioned by so acting.
(b)
Any such advice, opinion or information may be sent or obtained by letter or facsimile transmission and the Trustee
shall not be liable for acting on any advice, opinion or information purporting to be conveyed by any such letter or
facsimile transmission although the same shall contain some error or shall not be authentic.
(c)
The Trustee may call for and shall be at liberty to accept as sufficient evidence of any fact or matter or the
expediency of any transaction or thing a certificate signed by any two Directors of the Issuer, and the Trustee shall
not be bound in any such case to call for further evidence
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or be responsible for any Liability that may be occasioned by it or any other person acting on such certificate.
(d) The Trustee shall be at liberty to hold or to place these presents and any other documents relating thereto or to deposit them in any part of the world with any banker or banking company or company whose business includes undertaking the safe custody of documents or lawyer or firm of lawyers considered by the Trustee to be of good repute and the Trustee shall not be responsible for or required to insure against any Liability incurred in connection with any such holding or deposit and may pay all sums required to be paid on account of or in respect of any such deposit.
(e)
The Trustee shall not be responsible for the receipt or application of the proceeds of the issue of any of the Notes by
the Issuer, the exchange of any Global Note or Certificate for another Global Note or Certificate or Definitive Bearer
Notes or the delivery of any Global Note, Certificate or Definitive Notes to the person(s) entitled to it or them.
(f)
The Trustee shall not be bound to give notice to any person of the execution of any documents comprised or referred
to in these presents or to take any steps to ascertain whether any Early Termination Event, Renminbi Currency
Event, Change of Control Put Event, Event of Default or any Potential Event of Default has occurred and, until it
shall have actual knowledge or express notice pursuant to these presents to the contrary, the Trustee shall be entitled
to assume that no Early Termination Event, Renminbi Currency Event, Change of Control Put Event, Event of
Default or Potential Event of Default has occurred and that the Issuer is observing and performing all its obligations
under these presents.
(g)
Save as expressly otherwise provided in these presents, the Trustee shall have absolute and uncontrolled discretion
as to the exercise or non-exercise of its trusts, powers, authorities and discretions under these presents (the exercise
or non-exercise of which as between the Trustee and the Noteholders and Couponholders shall be conclusive and
binding on the Noteholders and Couponholders) and shall not be responsible for any Liability which may result from
their exercise or non-exercise.
(h) The Trustee shall not be liable to any person by reason of having acted upon any Extraordinary Resolution in writing or any Extraordinary Resolution or other resolution purporting to have been passed at any meeting of the holders of Notes of all or any Series in respect whereof minutes have been made and signed even though subsequent to its acting it may be found that there was some defect in the constitution of the meeting or the passing of the resolution, (in the case of an Extraordinary Resolution in writing) that not all such holders had signed the Extraordinary Resolution or that for any reason the resolution was not valid or binding upon such holders and the relative Couponholders.
(i)
The Trustee shall not be liable to any person by reason of having accepted as valid or not having rejected any Note,
Certificate or Coupon reasonably believed by it to be such and subsequently found to be forged or not authentic.
(j)
Without prejudice to the right of indemnity by law given to trustees, the Issuer shall indemnify the Trustee and every
Appointee and keep it or him indemnified against all Liabilities to which it or he may be or become subject or which
may be properly incurred by it or him in the execution of any of its or his trusts, powers, authorities and discretions
under these presents or its or his functions under any such appointment or in respect of any other matter or thing
done or omitted in any way relating to these presents or any such appointment.
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(k) Any consent or approval given by the Trustee for the purposes of these presents may be given on such terms and subject to such conditions (if any) as the Trustee thinks fit and notwithstanding anything to the contrary in these presents may be given retrospectively.
(l)
The Trustee shall not (unless and to the extent ordered so to do by a court of competent jurisdiction) be required to
disclose to any Noteholder or Couponholder any information (including, without limitation, information of a
confidential, financial or price sensitive nature) made available to the Trustee by the Issuer or any other person in
connection with the trusts of these presents and no Noteholder or Couponholder shall be entitled to take any action
to obtain from the Trustee any such information.
(m) Where it is necessary or desirable for any purpose in connection with these presents to convert any sum from one currency to another it shall (unless otherwise provided by these presents or required by law) be converted at such
rate or rates, in accordance with such method and as at such date for the determination of such rate of exchange, as may be agreed by the Trustee in consultation with the Issuer and any rate, method and date so agreed shall be binding on the Issuer, the Noteholders and the Couponholders.
(n) The Trustee may certify whether or not any of the conditions, events and acts set out in paragraphs (b), (c), (e) and (f) of Condition 10(A) (each of which conditions, events and acts shall, unless in any case the Trustee in its absolute discretion shall otherwise determine, for all the purposes of these presents be deemed to include the circumstances resulting therein and the consequences resulting therefrom) is in its opinion materially prejudicial to the interests of the Holders and any such certificate shall be conclusive and binding upon the Issuer, the Noteholders and the Couponholders.
(o) The Trustee as between itself and the Noteholders and the Couponholders may determine all questions and doubts arising in relation to any of the provisions of these presents. Every such determination, whether or not relating in whole or in part to the acts or proceedings of the Trustee, shall be conclusive and shall bind the Trustee and the Noteholders and the Couponholders.
(p) In connection with the exercise by it of any of its trusts, powers, authorities or discretions under these presents (including, without limitation, any modification, waiver, authorisation or determination), the Trustee shall have regard to the general interests of the Noteholders as a class but shall not have regard to any interests arising from circumstances particular to individual Noteholders or Couponholders (whatever their number) and, in particular but without limitation, shall not have regard to the consequences of such exercise for individual Noteholders or Couponholders (whatever their number) resulting from their being for any purpose domiciled or resident in, or otherwise connected with, or subject to the jurisdiction of, any particular territory or any political sub-division thereof and the Trustee shall not be entitled to require, nor shall any Noteholder or Couponholder be entitled to claim, from the Issuer, the Trustee or any other person any indemnification or payment in respect of any tax consequence of any such exercise upon individual Noteholders or Couponholders except to the extent already provided for in Condition 8 and/or any undertaking given in addition thereto or in substitution therefor under these presents.
(q) The Trustee may whenever it thinks fit delegate by power of attorney or otherwise to any person or persons or fluctuating body of persons (whether being a joint trustee of these presents or not) all or any of its trusts, powers, authorities and discretions vested in the Trustee by these presents. Such delegation may be made upon such terms (including power to sub-delegate) and subject to such conditions and regulations as the Trustee may in the interests of the Noteholders think fit. Provided that the Trustee has taken reasonable care in selecting such delegate, it shall not be under any obligation to supervise the proceedings or
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acts of any such delegate or sub-delegate or be in any way responsible for any Liability incurred by reason of any misconduct or default on the part of any such delegate or sub-delegate. The Trustee shall within a reasonable time after any such delegation or any renewal, extension or termination thereof give notice thereof to the Issuer.
(r)
The Trustee may in the conduct of the trusts of these presents instead of acting personally employ and pay an agent
(whether being a lawyer or other professional person) to transact or conduct, or concur in transacting or conducting,
any business and to do, or concur in doing, all acts required to be done in connection with these presents (including
the receipt and payment of money). Provided that the Trustee has taken reasonable care in selecting such agent, it
shall not be in any way responsible for any Liability incurred by reason of any misconduct or default on the part of
any such agent or be bound to supervise the proceedings or acts of any such agent.
(s)
The Trustee shall not be responsible for the execution, delivery, legality, effectiveness, adequacy, genuineness,
validity, enforceability or admissibility in evidence of these presents or any other document relating or expressed to
be supplemental thereto and shall not be liable for any failure to obtain any licence, consent or other authority for the
execution, delivery, legality, effectiveness, adequacy, genuineness, validity, performance, enforceability or
admissibility in evidence of these presents or any other document relating or expressed to be supplemental thereto.
(t)
The Trustee shall not be responsible to any person for failing to request, require or receive any legal opinion relating
to any Notes or for checking or commenting upon the content of any such legal opinion.
(u) Any certificate or report of the Auditors or any other person called for by or provided to the Trustee in accordance with or for the purposes of the Notes may be relied upon by the Trustee as sufficient evidence of the facts stated therein whether or not such certificate or report is addressed to the Trustee and whether or not such certificate or
report and/or any engagement letter or other document entered into by the Trustee in connection therewith contains a monetary or other limit on the liability of the Auditors (or such other expert or other person) in respect thereof.
(v) So long as any Global Note is, or any Registered Notes represented by a Global Certificate are, held on behalf of a clearing system, in considering the interests of Noteholders, the Trustee may have regard to any information
provided to it by such clearing system or its operator as to the identity (either individually or by category) of its accountholders or participants with entitlements to any such Global Note or the Registered Notes and may consider such interests on the basis that such accountholders or participants were the holder(s) thereof.
(w) The Trustee may call for and shall rely on any records, certificate or other document of or to be issued by Euroclear or Clearstream, Luxembourg in relation to any determination of the principal amount of Notes represented by a NGN. Any such records, certificate or other document shall be conclusive and binding for all purposes. The Trustee shall not be liable to any person by reason of having accepted as valid or not having rejected any such records, certificate or other document to such effect purporting to be issued by Euroclear or Clearstream, Luxembourg and subsequently found to be forged or not authentic.
(x) No provision of these presents shall require the Trustee to do anything which may in its opinion be illegal or contrary to applicable law or regulation.
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(y)
Any trustee being a banker, lawyer, broker or other person engaged in any profession or business shall be entitled to
charge and be paid all usual professional and other charges for business transacted and acts done by him or his
partner or firm on matters arising in connection with the trusts of these presents and also his properly incurred
charges in addition to disbursements for all other work and business done and all time spent by him or his partner or
firm on matters arising in connection with these presents, including matters which might or should have been
attended to in person by a trustee not being a banker, lawyer, broker or other professional person.
(z)
Nothing contained in these presents shall require the Trustee to expend or risk its own funds or otherwise incur any
financial liability in the performance of its duties or the exercise of any right, power, authority or discretion
hereunder if it has grounds for believing the repayment of such funds or adequate indemnity against, or security for,
such risk or liability is not assured to it.
(aa) The Trustee shall not be bound to take any steps to enforce the performance of any provisions of these presents, the Notes or the Coupons or to appoint an independent financial advisor pursuant to the Conditions unless it shall be indemnified and/or secured and/or prefunded by the relevant Noteholders and/or Couponholders to its satisfaction against all proceedings, claims and demands to which it may be liable and against all costs, charges, liabilities and expenses which may be incurred by it in connection with such enforcement or appointment, including the cost of its managements' time and/or other internal resources, calculated using its normal hourly rates in force from time to time.
(bb) When determining whether an indemnity or any security is satisfactory to it, the Trustee shall be entitled to evaluate its risk in given circumstances by considering the worst-case scenario and, for this purpose, it may take into account, without limitation, the potential costs of defending or commencing proceedings in England or elsewhere and the risk however remote, of any award of damages against it in England or elsewhere.
(cc) The Trustee shall be entitled to require that any indemnity or security given to it by the Noteholders or any of them be given on a joint and several basis and be supported by evidence satisfactory to it as to the financial standing and creditworthiness of each counterparty and/or as to the value of the security and an opinion as to the capacity, power and authority of each counterparty and/or the validity and effectiveness of the security.
16. TRUSTEE'S LIABILITY
Nothing in these presents shall in any case in which the Trustee has failed to show the degree of care and diligence required of it as trustee having regard to the provisions of these presents conferring on it any trusts, powers, authorities or discretions exempt the Trustee from or indemnify it against any liability for gross negligence, wilful default or fraud of which it may be guilty in relation to its duties under these presents.
17. TRUSTEE CONTRACTING WITH THE ISSUER
Neither the Trustee (which for the purpose of this Clause shall include the Holding Company of any corporation acting as trustee hereof or any Subsidiary of such Holding Company) nor any director or officer or Holding Company, Subsidiary or
associated company of a corporation acting as a trustee under these presents shall by reason of its or his fiduciary position be in any way precluded from:
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(a) entering into or being interested in any contract or financial or other transaction or arrangement with the Issuer or any person or body corporate associated with the Issuer (including without limitation any contract, transaction or arrangement of a banking or insurance nature or any contract, transaction or arrangement in relation to the making of loans or the provision of financial facilities or financial advice to, or the purchase, placing or underwriting of or the subscribing or procuring subscriptions for or otherwise acquiring, holding or dealing with, or acting as paying agent in respect of, the Notes or any other notes, bonds, stocks, shares, debenture stock, debentures or other securities of, the Issuer or any person or body corporate associated as aforesaid); or
(b)
accepting or holding the trusteeship of any other trust deed constituting or securing any other securities issued by or
relating to the Issuer or any such person or body corporate so associated or any other office of profit under the Issuer
or any such person or body corporate so associated,
and each shall be entitled to exercise and enforce its rights, comply with its obligations and perform its duties under or in relation to any such contract, transaction or arrangement as is referred to in 17(a) above or, as the case may be, any such trusteeship or office of profit as is referred to in 17(b) above without regard to the interests of the Noteholders and notwithstanding that the same may be contrary or prejudicial to the interests of the Noteholders and shall not be responsible for any Liability occasioned to the Noteholders thereby and shall be entitled to retain and shall not be in any way liable to account for any profit made or share of brokerage or commission or remuneration or other amount or benefit received thereby or in connection therewith.
Where any Holding Company, Subsidiary or associated company of the Trustee or any director or officer of the Trustee acting other than in his capacity as such a director or officer has any information, the Trustee shall not thereby be deemed also to have knowledge of such information and, unless it shall have actual knowledge of such information, shall not be
responsible for any loss suffered by Noteholders resulting from the Trustee's failing to take such information into account in acting or refraining from acting under or in relation to these presents.
18. WAIVER, AUTHORISATION AND DETERMINATION
18.1 The Trustee may without the consent or sanction of the Noteholders or the Couponholders and without prejudice to its rights in respect of any subsequent breach, Event of Default or Potential Event of Default from time to time and at any time but only if and in so far as in its opinion the interests of the Noteholders shall not be materially prejudiced thereby waive or authorise any breach or proposed breach by the Issuer of any of the covenants or provisions contained in these presents or any Condition or determine that any Event of Default or Potential Event of Default shall not be treated as such for the purposes of these presents or any Condition PROVIDED ALWAYS THAT the Trustee shall not exercise any powers conferred on it by this Clause in contravention of any express direction given by Extraordinary Resolution or by a request under Condition 10(A) but so that no such direction or request shall affect any waiver, authorisation or determination previously given or made. Any such waiver, authorisation or determination may be given or made on such terms and subject to such conditions (if any) as the Trustee may determine, shall be binding on the Noteholders and the Couponholders and, if, but only if, the Trustee shall so require, shall be notified by the Issuer to the Noteholders in accordance with Condition 14 as soon as practicable thereafter.
MODIFICATION
18.2 The Trustee may without the consent or sanction of the Noteholders or the Couponholders at any time and from time to time concur with the Issuer in making any modification (a) to these presents or any Condition which in the opinion of the Trustee it may be proper to make PROVIDED THAT the Trustee is of the opinion that such modification will not be materially prejudicial to the interests of
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the Noteholders or (b) to these presents or any Condition if in the opinion of the Trustee such modification is of a formal, minor or technical nature or to correct a manifest error or to comply with mandatory provisions of applicable law. In addition, the Trustee shall be obliged to concur with the Issuer in using its reasonable endeavours to effect any Benchmark Amendments in the circumstances as set out in Condition 4(b)(ii)(D) without the consent of the Noteholders or the Couponholders. Any such modification may be made on such terms and subject to such conditions (if any) as the Trustee may determine, shall be binding upon the Noteholders and the Couponholders and, unless the Trustee agrees otherwise, shall be notified by the Issuer to the Noteholders in accordance with Condition 14 as soon as practicable thereafter.
BREACH
18.3 Any breach of or failure to comply with any such terms and conditions as are referred to in subclauses 18.1 and 18.2 of this Clause shall constitute a default by the Issuer in the performance or observance of a covenant or provision binding on it under or pursuant to these presents.
19. HOLDER OF DEFINITIVE BEARER NOTE ASSUMED TO BE COUPONHOLDER
19.1 Wherever in these presents the Trustee is required or entitled to exercise a power, trust, authority or discretion under these presents, except as ordered by a court of competent jurisdiction or as required by applicable law, the Trustee shall, notwithstanding that it may have express notice to the contrary, assume that each holder of a Definitive Bearer Note is the holder of all Coupons appertaining to each Definitive Bearer Note of which he is the holder.
NO NOTICE TO COUPONHOLDERS
19.2 Neither the Trustee nor the Issuer shall be required to give any notice to the Couponholders for any purpose under these presents and the Couponholders shall be deemed for all purposes to have notice of the contents of any notice given to the holders of Definitive Bearer Notes in accordance with Condition 14.
20. SUBSTITUTION AND CONSOLIDATION MERGER, CONVEYANCE, TRANSFER OR LEASE
20.1 (a)
The Trustee may without the consent of the Noteholders or Couponholders at any time agree with the Issuer to the substitution in place of the Issuer (or of the previous substitute under this Clause) as the principal debtor under these presents and the Deed Poll of either (i) a Successor in Business to the Issuer or (ii) a Holding Company of the Issuer or (iii) any Subsidiary of the Issuer (such substituted company being hereinafter called the New Company) provided that in each case a trust deed is executed or some other form of undertaking is given by the New Company in form and manner reasonably satisfactory to the Trustee, agreeing to be bound by the provisions of these presents with any consequential amendments which the Trustee may deem appropriate as fully as if the New Company had been named in these presents as the principal debtor in place of the Issuer (or of the previous substitute under the Clause) and provided further that (save in the case of a substitution of a Successor in Business to the Issuer) the Issuer unconditionally and irrevocably guarantees all amounts payable under these presents to the satisfaction of the Trustee.
(b)
The following further conditions shall apply to 20.1(a) above:
(i)
the Issuer and the New Company shall comply with such other requirements as the Trustee may direct in
order to ensure that the interests of the Noteholders are not materially prejudiced (and taking into account
the proviso in paragraph 20.1(c) below);
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(c) 20.2 (a)
(ii)
undertakings or covenants shall be given by the New Company in terms corresponding to the provisions of
Condition 8 and Condition 7(b) shall be modified accordingly;
(iii) without prejudice to the rights of reliance of the Trustee under the immediately following paragraph (iv), the Trustee is satisfied that the relevant transaction is not materially prejudicial to the interests of the Noteholders, provided that in determining such material prejudice the Trustee shall not take into account any prejudice to the interests of the Noteholders as a result of the New Company not being required pursuant to the undertakings or covenants given pursuant to the preceding paragraph (ii) to pay any additional amounts for or on account of any Taxes imposed by the United States (or any political subdivision or taxing authority thereof or therein); and
(iv) if two Directors of the New Company (or other officers acceptable to the Trustee) shall certify that the New Company is solvent at the time at which the relevant transaction is proposed to be effected (which certificate the Trustee may rely upon absolutely) the Trustee shall not be under any duty to have regard to the financial condition, profits or prospects of the New Company or to compare the same with those of the Issuer or any previous substitute under this Clause as applicable.
Any such trust deed or undertaking shall, if so expressed, operate to release the Issuer or the previous substitute as aforesaid from all of its obligations as principal debtor under these presents. Not later than 14 days after the execution of such documents and compliance with such requirements, the New Company shall give notice thereof in a form previously approved by the Trustee to the Noteholders in the manner provided in Condition 14. Upon the execution of such documents and compliance with such requirements, the New Company shall be deemed to be named in these presents as the principal debtor in place of the Issuer (or in place of the previous substitute under this Clause) under these presents and these presents shall be deemed to be modified in such manner as shall be necessary to give effect to the above provisions and, without limitation, references in these presents to the Issuer shall, unless the context otherwise requires, be deemed to be or include references to the New Company.
The Issuer may consolidate with or merge (which term shall include for the avoidance of doubt a scheme of arrangement) into any other Person or convey, transfer or lease its properties and assets substantially as an entirety to any Person, and the Issuer may permit any Person to consolidate with or merge into the Issuer or convey, transfer or lease its properties and assets substantially as an entirety to the Issuer, provided that:
(i)
if the Issuer shall consolidate with or merge into another Person or convey, transfer or lease its properties
and assets substantially as an entirety to any Person, the Person formed by such consolidation or into which
the Issuer is merged or the Person which acquires by conveyance or transfer, or which leases, the properties
and assets of the Issuer substantially as an entirety shall be a corporation, partnership or trust, shall be
organised and validly existing under the laws of any applicable jurisdiction and shall expressly assume
(including, in the case of a Reorganisation, by way of a full and unconditional guarantee subject to the
proviso to this subclause) by a trust deed supplemental hereto executed and delivered to the Trustee on
behalf of the Noteholders in form reasonably satisfactory to the Trustee, the due and punctual payment of
the principal of and interest on all the Notes and the performance or observance of every covenant of these
presents on the part of the Issuer to be performed or observed; provided, however, that in the case of a
Reorganisation;
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(A) such assumption shall be effected by means of a supplemental trust deed executed by the guarantor in which:
I.
the guarantor covenants to the Trustee to guarantee irrevocably and unconditionally the
due and punctual payment of the principal of and interest on all the Notes, and all other
amounts payable by the Issuer under these presents, which guarantee shall (inter alia) not
be subject to any requirement for presentment or demand and shall not be affected,
modified or impaired upon the happening from time to time of any event, including
without limitation (x) the waiver, surrender, compromise, settlement, release, termination
or modification of any or all of the obligations, covenants or agreements of the Issuer
under these presents; (y) the bankruptcy or insolvency of the Issuer; and (z) to the extent
permitted by law, the release or discharge by operation of law of the Issuer from the
performance or observance of any obligation, covenant or agreement contained in these
presents; and
II.
the guarantor covenants to be bound by each and every obligation of the Issuer contained
in these presents, including without limitation the obligation to pay additional amounts
with respect to any payment made under the guarantee to the extent and subject to the
exceptions, mutatis mutandis, set out in Condition 8, and to be subject to each Event of
Default specified in Condition 10(A) or in any Notes or Certificates in respect thereof and
to each Potential Event of Default, as though in each case, each reference to the Issuer in
connection with such obligations or Events of Default were to the guarantor; provided,
however, that the reference to specific statutes in Condition 10(A)(e) shall be modified, if
applicable, to reflect the laws of the jurisdiction of incorporation of the guarantor; and
(B) the Trustee shall have received an opinion of legal counsel (which may be an employee of the guarantor), in form and substance reasonably satisfactory to the Trustee to the effect that such guarantee is the valid, binding and enforceable obligation of the guarantor;
(ii)
immediately prior to and after giving effect to such transaction and treating any indebtedness which
becomes an obligation of the Issuer as a result of such transaction as having been incurred by the Issuer at
the time of such transaction, no Event of Default or Potential Event of Default shall have happened and be
continuing;
(iii) the Person formed by such consolidation or into which the Issuer is merged or to whom the Issuer has conveyed, transferred or leased its properties or assets (if such Person is incorporated or organised and validly existing under the laws of a jurisdiction other than the United States, any State thereof, or the District of Columbia, or England and Wales) agrees to indemnify the Trustee and the holder of each Note and Coupon against (A) any tax, assessment or governmental charge imposed on the Trustee or any such holder or required to be withheld or deducted from any payment to the Trustee or such holder as a consequence of such consolidation, merger, conveyance, transfer or lease; and (B) any costs or expenses of the act of such consolidation, merger, conveyance, transfer or lease;
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(iv) the Issuer (and, in the case of a guarantee as provided above, the guarantor) has delivered to the Trustee a Certificate signed by two of its Directors (or other officers acceptable to the Trustee) and an opinion of legal counsel, each stating that such consolidation, merger, conveyance, transfer or lease and, if a supplemental trust deed is required in connection with such transaction, such supplemental trust deed complies with this Clause, that such supplemental trust deed is valid, binding and enforceable and that all conditions precedent herein provided for relating to such transaction have been complied with;
(v)
undertakings or covenants shall be given by such Person in terms corresponding to the provisions of
Condition 8 and Condition 7(b) shall be modified accordingly;
(vi) without prejudice to the rights of reliance of the Trustee under the immediately following paragraph (vii), the Trustee is satisfied that the relevant transaction is not materially prejudicial to the interests of the Noteholders, provided that in determining such material prejudice the Trustee shall not take into account any prejudice to the interests of the Noteholders as a result of the Person pursuant to the undertakings or covenants given pursuant to the preceding paragraph (v) not being required to pay any additional amounts for or on account of any Taxes imposed by the United States (or any political subdivision or taxing authority thereof or therein); and
(vii) if two Directors of the Person formed by such consolidation or into which the Issuer is merged or to whom the Issuer has conveyed, transferred or leased its properties or assets (or other officers acceptable to the Trustee) shall certify that such Person is solvent at the time at which the relevant transaction is proposed to be effected (which certificate the Trustee may rely upon absolutely) the Trustee shall not be under any duty to have regard to the financial condition, profits or prospects of such Person or to compare the same with those of the Issuer.
(b) Upon any consolidation of the Issuer with, or merger of the Issuer into, any other Person or any conveyance, transfer or lease of the properties and assets of the Issuer substantially as an entirety in accordance with paragraph (a) of this subclause 20.2, the successor Person formed by such consolidation or into which the Issuer is merged or to which such conveyance, transfer or lease is made shall succeed to and be substituted for, except in the case of an assumption by way of a full and unconditional guarantee made in accordance with paragraph (a) of this subclause 20.2 (in which event, the Issuer shall remain an obligor under these presents), and may exercise every right and power of, the Issuer under these presents with the same effect as if such successor Person had been named as the Issuer in these presents, as the case may be, and thereafter, except in the case of a lease, the predecessor Person shall be relieved of all obligations and covenants under these presents.
(c)
Not later than 21 days after completion of the relevant transaction as referred to in paragraph (a) of this subclause
20.2 the Issuer or, as the case may be, the Person resulting from any such consolidation or merger shall give notice
thereof in a form previously approved by the Trustee to the Noteholders in the manner provided in Condition 14.
21. CURRENCY INDEMNITY
The Issuer shall severally indemnify the Trustee, every Appointee, the Noteholders and the Couponholders and keep them indemnified against:
(a)
any loss or damage incurred by any of them arising from the non-payment by the Issuer of any amount due to the
Trustee or the holders of the Notes issued by the Issuer and the
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relative Couponholders under these presents by reason of any variation in the rates of exchange between those used for the purposes of calculating the amount due under a judgment or order in respect thereof and those prevailing at the date of actual payment by the Issuer; and
(b)
any deficiency arising or resulting from any variation in rates of exchange between (i) the date as of which the local
currency equivalent of the amounts due or contingently due under these presents (other than this Clause) is
calculated for the purposes of any bankruptcy, insolvency or liquidation of the Issuer and (ii) the final date for
ascertaining the amount of claims in such bankruptcy, insolvency or liquidation. The amount of such deficiency
shall be deemed not to be reduced by any variation in rates of exchange occurring between the said final date and
the date of any distribution of assets in connection with any such bankruptcy, insolvency or liquidation.
The above indemnities shall constitute obligations of the Issuer and separate and independent from its other obligations under the other provisions of these presents and shall apply irrespective of any indulgence granted by the Trustee or the Noteholders or the Couponholders from time to time and shall continue in full force and effect notwithstanding the judgment or filing of any proof or proofs in any bankruptcy, insolvency or liquidation of the Issuer for a liquidated sum or sums in respect of amounts due under these presents (other than this Clause). Any such deficiency as aforesaid shall be deemed to constitute a loss suffered by the Noteholders and the Couponholders and no proof or evidence of any actual loss shall be required by the Issuer or its liquidator or liquidators.
22. NEW TRUSTEE
22.1 The power to appoint a new trustee of these presents shall be vested in the Issuer but no person shall be appointed who shall not previously have been approved by an Extraordinary Resolution. One or more persons may hold office as trustee or trustees of these presents but such trustee or trustees shall be or include a Trust Corporation. Whenever there shall be more than two trustees of these presents the majority of such trustees shall be competent to execute and exercise all the duties, powers, trusts, authorities and discretions vested in the Trustee by these presents provided that a Trust Corporation shall be included in such majority. Any appointment of a new trustee of these presents shall as soon as practicable thereafter be notified by the Issuer to the Agent and in accordance with Condition 14 to the Noteholders.
Separate and Co-Trustees
22.2 Notwithstanding the provisions of subclause 22.1 above, the Trustee may, upon giving prior notice to the Issuer (but without the consent of the Issuer, the Noteholders or the Couponholders), appoint any person established or resident in any jurisdiction (whether a Trust Corporation or not) to act either as a separate trustee or as a co-trustee jointly with the Trustee:
(a)
if the Trustee considers such appointment to be in the interests of the Noteholders;
(b)
for the purposes of conforming to any legal requirements, restrictions or conditions in any jurisdiction in which any
particular act or acts is or are to be performed; or
(c)
for the purposes of obtaining a judgment in any jurisdiction or the enforcement in any jurisdiction of either a
judgment already obtained or any of the provisions of these presents against the Issuer.
The Issuer irrevocably appoints the Trustee to be its attorney in its name and on its behalf to execute any such instrument of appointment. Such a person shall (subject always to the provisions of these presents) have such trusts, powers, authorities and discretions (not exceeding those conferred on the
39
Trustee by these presents) and such duties and obligations as shall be conferred or imposed by the instrument of appointment. The Trustee shall have power in like manner to remove any such person. Such reasonable remuneration as the Trustee may pay to any such person, together with any attributable costs, charges and expenses incurred by it in performing its function as such separate trustee or co-trustee, shall for the purposes of these presents be treated as costs, charges and expenses incurred by the Trustee.
23. TRUSTEE'S RETIREMENT AND REMOVAL
A trustee of these presents may retire at any time on giving not less than three months' prior written notice to the Issuer without giving any reason and without being responsible for any Liabilities incurred by reason of such retirement. The Noteholders shall have the power exercisable by Extraordinary Resolution to remove any trustee or trustees for the time being of these presents. The Issuer undertakes that in the event of the only trustee of these presents which is a Trust Corporation giving notice under this Clause or being removed by Extraordinary Resolution it will use all reasonable endeavours to procure that a new trustee of these presents being a Trust Corporation is appointed as soon as reasonably practicable thereafter. The retirement or removal of any such trustee shall not become effective until a successor trustee being a Trust Corporation is appointed.
24. TRUSTEE'S POWERS TO BE ADDITIONAL
The powers conferred upon the Trustee by these presents shall be in addition to any powers which may from time to time be vested in the Trustee by the general law or as a holder of any of the Notes or Coupons.
25. NOTICES
Any notice or demand to the Issuer or the Trustee required to be given, made or served for any purposes under these presents shall be given, made or served by sending the same by pre-paid post (first class if inland, first class airmail if overseas), email or facsimile transmission or by delivering it by hand as follows:
to the Issuer:
Vodafone House The Connection Newbury
Berkshire RG14 2FN England
(Attention: Group Treasury Director) Email: jamie.stead2@vodafone.com Facsimile No.: 01635 238 080
to the Trustee:
Fifth Floor 100 Wood Street London EC2V 7EX England
(Attention: the Manager, Commercial Trusts) Email: trustsupport@lawdeb.com Facsimile No.: 020 7696 5261
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or to such other postal address, email address or facsimile number as shall have been notified (in accordance with this Clause) to the other party hereto and any notice or demand sent by post as aforesaid shall be deemed to have been given, made or served upon receipt. Any notice or demand sent by email as aforesaid shall be deemed to have been given, made or served when sent (provided always that any communication to the Trustee shall only be treated as having been received upon written confirmation of receipt by the Trustee and an automatically generated "read" or "received" receipt shall not constitute such confirmation). Any notice or demand sent by facsimile transmission as aforesaid shall be deemed to have been given, made or served upon receipt provided that in the case of a notice or demand given by facsimile transmission such notice or demand shall forthwith be confirmed by post.
26. GOVERNING LAW
The Trust Deed, the Notes, the Coupons, and any non-contractual obligations arising out of or in connection with them, are governed by, and shall be construed in accordance with, English law.
27. COUNTERPARTS
This Trust Deed and any trust deed supplemental hereto may be executed and delivered in counterparts, both of which, taken together, shall constitute one and the same deed and either party to this Trust Deed or any party to any trust deed supplemental hereto may enter into the same by executing and delivering a counterpart.
28. CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999
A person who is not a party to this Trust Deed or any trust deed supplemental hereto has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Trust Deed or any trust deed supplemental hereto, but this does not affect any right or remedy of a third party which exists or is available apart from that Act.
IN WITNESS whereof this Trust Deed has been executed as a deed by the Issuer and the Trustee and delivered on the date stated on page 1.
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SCHEDULE 1
TERMS AND CONDITIONS OF THE NOTES
Notes issued by Vodafone Group Plc (formerly called Vodafone AirTouch Plc) (the "Issuer") are constituted by a Trust Deed dated 16 July 1999 (such Trust Deed as modified and/or supplemented and/or restated from time to time, the " Trust Deed") made between the Issuer and The Law Debenture Trust Corporation p.l.c. (the "Trustee", which expression shall include any successor as trustee).
The Notes and the Coupons (as defined below) have the benefit of an amended and restated Agency Agreement dated 5 July 2019 (such Agency Agreement as amended and/or supplemented and/or restated from time to time, the "Agency Agreement") made between the Issuer, HSBC Bank plc as issuing and principal paying agent and agent bank (the "Issuing and Principal Paying Agent", which expression shall include any successor issuing and principal paying agent), the other paying agents named therein (together with the Issuing and Principal Paying Agent, the "Paying Agents", which expression shall include any additional or successor paying agents), HSBC Bank USA, National Association as exchange agent (the "Exchange Agent", which expression shall include any successor exchange agent) and HSBC Bank USA, National Association as registrar (the "Registrar", which expression shall include any successor registrar) and a transfer agent and the other transfer agents named therein (together with the Registrar, the "Transfer Agents", which expression shall include any additional or successor transfer agent) and the Trustee.
The Noteholders (as defined below) and the holders (the "Couponholders") of the interest coupons (the "Coupons") relating to interest bearing Notes in bearer form and, where applicable in the case of such Notes, talons for further Coupons (the "Talons") are entitled to the benefit of, are bound by, and are deemed to have notice of, all the provisions of the Trust Deed and are deemed to have notice of those provisions applicable to them of the Agency Agreement. Any reference herein to Coupons or coupons shall, unless the context otherwise requires, be deemed to include a reference to Talons or talons. References in these Terms and Conditions to "Exempt Notes" are to Notes for which no prospectus is required to be published under the Prospectus Directive (as defined below).
If this Note is not an Exempt Note, the final terms for this Note (or the relevant provisions thereof) are attached to or endorsed on this Note (the "Final Terms"). Part A of the Final Terms completes these Terms and Conditions for the purposes of this Note. References to the "applicable Final Terms" are to Part A of the Final Terms (or the relevant provisions thereof). If this Note is an Exempt Note, the pricing supplement for this Note (or the relevant provisions thereof) are attached to or endorsed on this Note (the "Pricing Supplement"). Part A of the Pricing Supplement completes these Terms and Conditions for the purposes of this Note and may specify other terms and conditions which shall, to the extent so specified or to the extent inconsistent with these Terms and Conditions, replace or modify these Terms and Conditions for the purposes of this Note. In the case of Exempt Notes, any subsequent reference in these Terms and Conditions to "Final Terms" shall be deemed to include reference to "Pricing Supplement" so far as the context admits.
The Trustee acts for the benefit of the Noteholders and the Couponholders, (which expression shall, unless the context otherwise requires, include the holders of the Talons), in accordance with the provisions of the Trust Deed.
As used herein, "Tranche" means Notes which are identical in all respects (including as to listing) and "Series" means a Tranche of Notes together with any further Tranche or Tranches of Notes which are (i) expressed to be consolidated and form a single series and (ii) identical in all respects (including as to listing) except for their respective Issue Dates, Interest Commencement Dates and/or Issue Prices.
Copies of the Trust Deed and the Agency Agreement are available for inspection during normal business hours at the registered office for the time being of the Trustee (being at Fifth Floor, 100 Wood Street, London EC2V 7EX, England) and at the specified office of each of the Paying Agents. In addition, the applicable Final Terms will be available for viewing on the website of the Regulatory News Service operated by the London Stock Exchange plc at www.londonstockexchange.com/exchange/news/market-news/marketnews-home.html or otherwise published in accordance with Article 14 of Directive 2003/71/EC (as amended or superseded) (the "Prospectus Directive"). If this Note is an Exempt Note, the applicable Pricing Supplement will only be obtainable by a Noteholder holding one or more Notes and such Noteholder must produce evidence satisfactory to the Paying Agent for the time being in London as to the identity of such holder. The Noteholders and the Couponholders are deemed to have notice of, and are entitled to the benefit of, all the provisions of the Trust Deed, the Agency Agreement and the applicable Final Terms which are applicable to them. The
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statements in these Terms and Conditions include summaries of, and are subject to, the detailed provisions of the Trust Deed. Words and expressions defined in the Trust Deed and/or the Agency Agreement or used in the applicable Final Terms shall have the same meanings where used in these Terms and Conditions unless the context otherwise requires or unless otherwise stated and provided that, in the event of inconsistency between the Agency Agreement and the Trust Deed, the Trust Deed shall prevail and, in the event of inconsistency between the Agency Agreement or the Trust Deed and the applicable Final Terms, the applicable Final Terms will prevail.
References herein to "RMB Notes" are to Notes denominated in Renminbi. References herein to "Renminbi", "RMB" and "CNY" are to the lawful currency of the People's Republic of China (the "PRC") which, for the purposes of these Terms and Conditions, excludes the Hong Kong Special Administrative Region of the People's Republic of China, the Macau Special Administrative Region of the People's Republic of China and Taiwan.
1.
Form, Denomination and Title
The Notes are issued in bearer form ("Bearer Notes", which expression includes Notes that are specified to be Exchangeable Bearer Notes), in registered form ("Registered Notes") or in bearer form exchangeable for Registered Notes ("Exchangeable Bearer Notes") in each case in the Specified Denomination(s) shown hereon.
All Registered Notes shall have the same Specified Denomination. Where Exchangeable Bearer Notes are issued, the Registered Notes for which they are exchangeable shall have the same Specified Denomination as the lowest denomination of Exchangeable Bearer Notes.
The Notes may be Fixed Rate Notes, Floating Rate Notes, Zero Coupon Notes, CMS Linked Notes, Inflation Linked Interest Notes or a combination of any of the foregoing, depending upon the Interest Basis shown in the applicable Final Terms.
The Notes may be redeemable at par or may be Inflation Linked Redemption Notes, depending on the Redemption Basis shown in the applicable Final Terms.
If this Note is an Exempt Note, this Note may include terms and conditions not contemplated by these Terms and Conditions, in which event the relevant provisions will be included in the applicable Pricing Supplement.
Bearer Notes are serially numbered and are issued with Coupons attached, unless they are Zero Coupon Notes, in which case references to Coupons and Couponholders in these Terms and Conditions are not applicable.
Registered Notes are represented by registered certificates ("Certificates") and, save as provided in Condition 2(c), each Certificate shall represent the entire holding of Registered Notes by the same holder.
Title to the Bearer Notes and Coupons will pass by delivery. Title to the Registered Notes will pass by registration in the register that the Issuer will procure to be kept by the Registrar in accordance with the provisions of the Agency Agreement (the "Register"). The Issuer, any Paying Agent, the Registrar, the Transfer Agents, the Exchange Agent and the Trustee may (to the fullest extent permitted by applicable laws) deem and treat the holder (as defined below) of any Note or Coupon as the absolute owner for all purposes (whether or not the Note or Coupon shall be overdue and notwithstanding any notice of ownership or writing on the Note or Coupon (or on the Certificate representing it) or any notice of previous loss or theft of the Note or Coupon (or that of the related Certificate) or of trust or any interest therein) and shall not be required to obtain any proof thereof or as to the identity of such holder and no person shall be liable for so treating the holder.
In these Terms and Conditions, "Noteholder" means the bearer of any Bearer Note or the person in whose name a Registered Note is registered (as the case may be), "holder" (in relation to a Note or Coupon) means the bearer of any Bearer Note or Coupon or the person in whose name a Registered Note is registered (as the case may be) and capitalised terms have the
meanings given to them in the applicable Final Terms, the absence of any such meaning indicating that such term is not applicable to the Notes.
If so specified in the applicable Final Terms, some or all of the relevant Tranche of Notes may immediately be purchased by or on behalf of the Issuer on the Issue Date thereof. Such Notes are referred to as "Retained Notes". Any Retained Notes may (in each case, together with the related Coupons and Talons, if applicable) be purchased by and held by or for the account of the Issuer or any Subsidiary of it and may be sold or otherwise disposed of in whole
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or in part by private treaty at any time, and shall cease to be Retained Notes to the extent of and upon such sale or disposal.
Retained Notes shall, pending sale or disposal by or on behalf of the Issuer, carry the same rights and be subject in all respects to the same terms and conditions as the other Notes of the relevant Series, except that Retained Notes will not be treated as outstanding for the purposes of determining quorum or voting at meetings of Noteholders or of considering the interests of the Noteholders save as otherwise provided in the Trust Deed. Notes which have ceased to be Retained Notes shall carry the same rights and be subject in all respects to the same terms and conditions as the other Notes of the relevant Series.
Retained Notes will be held by a custodian appointed by the Issuer or any Subsidiary of it and specified in the applicable Final Terms (the "Custodian"). At the time of such appointment, the Issuer (or a relevant Subsidiary of it, as the case may be), the Trustee and the Custodian will enter into a custody agreement to specify how the Custodian will hold such Retained Notes on behalf of the Issuer.
2.
Exchanges of Exchangeable Bearer Notes and Transfers of Registered Notes
(a) Exchange of Exchangeable Bearer Notes
Subject as provided in Condition 2(f), Exchangeable Bearer Notes may be exchanged for the same nominal amount of Registered Notes at the request in writing of the relevant Noteholder (in substantially the same form set out in Schedule 4 of the Agency Agreement) and upon surrender of each Exchangeable Bearer Note to be exchanged, together with all unmatured Coupons relating to it, at the specified office of any Transfer Agent; provided, however, that where an Exchangeable Bearer Note is surrendered for exchange after the Record Date (as defined in Condition 6(c)) for any payment of interest, the Coupon in respect of that payment of interest need not be surrendered with it. Registered Notes may not be exchanged for Bearer Notes. Bearer Notes of one Specified Denomination may not be exchanged for Bearer Notes of another Specified Denomination. Bearer Notes that are not Exchangeable Bearer Notes may not be exchanged for Registered Notes.
(b) Transfer of Registered Notes
One or more Registered Notes may be transferred upon the surrender (at the specified office of the Registrar or any Transfer Agent) of the Certificate representing such Registered Notes to be transferred, together with the form of transfer endorsed on such Certificate, (or another form of transfer substantially in the same form and containing the same representations and certifications (if any), unless otherwise agreed by the issuer), duly completed and executed and any other evidence as the Registrar or Transfer Agent may reasonably require. In the case of a transfer of part only of a holding of Registered Notes represented by one Certificate, a new Certificate shall be issued to the transferee in respect of the part transferred and a further new Certificate in respect of the balance of the holding not transferred shall be issued to the transferor.
(c)
Partial Redemption in Respect of Registered Notes
In the case of a partial redemption of a holding of Registered Notes represented by a single Certificate, a new Certificate shall be issued to the holder in respect of the balance of the holding not redeemed. New Certificates shall only be issued against
surrender of the existing Certificates to the Registrar or any Transfer Agent. In the case of a transfer of Registered Notes to a person who is already a holder of Registered Notes, a new Certificate representing the enlarged holding shall only be issued against surrender of the Certificate representing the existing holding.
(d) Delivery of New Certificates
Each new Certificate to be issued pursuant to Conditions 2(a), (b) or (c) above shall only be available for delivery within three business days of receipt of the request for exchange, form of transfer or Change of Control Put Notice (as defined in
Condition 7(d)) or Put Notice (as defined in Condition 7(e)) and surrender of the Certificate for exchange. Delivery of the new Certificate(s) shall be made at the specified office of the Transfer Agent or of the Registrar (as the case may be) to whom delivery or surrender of such request for exchange, form of transfer, Change of Control Put Notice, Put Notice or Certificate shall have been made or, at the option of the holder making such delivery or surrender as aforesaid and as specified in the relevant request for exchange, form of transfer, Change of Control Put Notice, Put Notice or other in writing,
be mailed by uninsured post at the risk of the holder entitled to the new Certificate to such address as may be so specified, unless such holder requests otherwise and pays in advance to the relevant Transfer Agent the costs of such other method of delivery and/or such insurance as it may specify. In this Condition (d),
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"business day" means a day, other than a Saturday or Sunday, on which banks are open for business in the place of the specified office of the relevant Transfer Agent or the Registrar (as the case may be).
(e)
Exchange or Transfer Free of Charge
Exchange and transfer of Notes and Certificates on registration, transfer and exercise of an option or partial redemption shall be effected without charge by or on behalf of the Issuer, the Registrar or the Transfer Agents, but upon payment of any tax or
other governmental charges that may be imposed in relation to it (or the giving of such indemnity as the Registrar or the relevant Transfer Agent may require).
(f)
Closed Periods
No Noteholder may require the transfer of a Registered Note to be registered or an Exchangeable Bearer Note to be exchanged for one or more Registered Note(s) (i) during the period of 15 days prior to any date on which Notes may be called for redemption by the Issuer at its option pursuant to Condition 7(c), (ii) after any such Note has been called for redemption or (iii) during the period of seven days ending on (and including) any Record Date. An Exchangeable Bearer Note called for redemption may, however, be exchanged for one or more Registered Note(s) in respect of which the Certificate is simultaneously surrendered not later than the relevant Record Date.
3.
Status of the Notes
The Notes and any relative Coupons are direct, unconditional and unsecured obligations of the Issuer and rank and will rank pari passu, without any preference among themselves, with all other, present and future, outstanding unsecured and unsubordinated obligations of the Issuer (other than obligations preferred by law).
4.
Interest
(a) Interest on Fixed Rate Notes
Each Fixed Rate Note bears interest from (and including) the Interest Commencement Date at the rate(s) per annum equal to the Rate(s) of Interest. Interest will be payable in arrear on the Interest Payment Date(s) in each year and on the Maturity Date.
In the case of RMB Notes, if:
(i)
Interest Payment Date Adjustment is specified as applying in the applicable Final Terms; and
(ii)
(x) there is no numerically corresponding day in the calendar month in which an Interest Payment Date should
occur or (y) any Interest Payment Date would otherwise fall on a day which is not a Business Day,
then such Interest Payment Date shall be postponed to the next day which is a Business Day unless it would thereby fall into the next calendar month, in which event such Interest Payment Date shall be brought forward to the immediately preceding Business Day.
If the Notes are in definitive form, except as provided in the applicable Final Terms, the amount of interest payable on each Interest Payment Date in respect of the Interest Period ending on (but excluding) such date will amount to the Fixed Coupon Amount. Payments of interest on any Interest Payment Date will, if so specified in the applicable Final Terms, amount to the Broken Amount so specified.
Except in the case of Notes in definitive form where a Fixed Coupon Amount or Broken Amount is specified in the applicable Final Terms, interest shall be calculated in respect of any period by applying the Rate of Interest to:
(i)
in the case of Fixed Rate Notes which are represented by a Global Note, the aggregate outstanding nominal amount
of the Fixed Rate Notes represented by such Global Note; or
(ii)
in the case of Fixed Rate Notes in definitive form, the Calculation Amount;
and, in each case, multiplying such sum by the applicable Fixed Day Count Fraction, and rounding the resultant figure to the nearest sub-unit of the relevant Specified Currency, half of any such sub-unit being rounded upwards or otherwise in accordance with applicable market convention. Where the Specified Denomination of a Fixed Rate Note
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in definitive form comprises more than one Calculation Amount, the amount of interest payable in respect of such Fixed Rate Note shall be the aggregate of the amounts (determined in the manner provided above) for each Calculation Amount comprising the Specified Denomination without any further rounding.
(b) Interest on Floating Rate Notes, CMS Linked Notes and Inflation Linked Interest Notes
(i)
Interest Payment Dates
Each Floating Rate Note, CMS Linked Note and Inflation Linked Interest Note bears interest from (and including) the Interest Commencement Date and such interest will be payable in arrear on either:
(A) the Specified Interest Payment Date(s) (each an "Interest Payment Date") in each year specified in the applicable Final Terms; or
(B) if no Specified Interest Payment Date(s) is/are specified in the applicable Final Terms, each date (each an "Interest Payment Date") which falls the number of months or other period specified as the Specified Period in the applicable Final Terms after the preceding Interest Payment Date or, in the case of the first Interest Payment Date, after the Interest Commencement Date.
Such interest will be payable in respect of each Interest Period. If a Business Day Convention is specified in the applicable Final Terms and (x) if there is no numerically corresponding day in the calendar month in which an Interest Payment Date should occur or (y) if any Interest Payment Date would otherwise fall on a day which is not a Business Day, then, if the Business Day Convention specified is:
(1)
in any case where Specified Periods are specified in accordance with Condition 4(b)(i)(B), the Floating Rate
Convention, such Interest Payment Date (i) in the case of (x) above, shall be the last day that is a Business Day in
the relevant month and the provisions of (B) below shall apply mutatis mutandis or (ii) in the case of (y) above, shall
be postponed to the next day which is a Business Day unless it would thereby fall into the next calendar month, in
which event (A) such Interest Payment Date shall be brought forward to the immediately preceding Business Day
and (B) each subsequent Interest Payment Date shall be the last Business Day in the month which falls the Specified
Period after the preceding applicable Interest Payment Date occurred; or
(2)
the Following Business Day Convention, such Interest Payment Date shall be postponed to the next day which is a
Business Day; or
(3)
the Modified Following Business Day Convention, such Interest Payment Date shall be postponed to the next day
which is a Business Day unless it would thereby fall into the next calendar month, in which event such Interest
Payment Date shall be brought forward to the immediately preceding Business Day; or
(4)
the Preceding Business Day Convention, such Interest Payment Date shall be brought forward to the immediately
preceding Business Day.
(ii) Rate of Interest for Floating Rate Notes and CMS Linked Notes
The Rate of Interest payable from time to time in respect of Floating Rate Notes will be determined in the manner specified in the applicable Final Terms and, depending on the manner so specified, either Condition 4(b)(ii)(A) or Condition 4(b)(ii) (B) (as applicable) will apply to the Notes. The Rate of Interest payable from time to time in respect of CMS Linked Notes will be determined in accordance with Condition 4(b)(ii)(C).
(A) ISDA Determination for Floating Rate Notes
Where ISDA Determination is specified in the applicable Final Terms as the manner in which the Rate of Interest is to be determined, the Rate of Interest for each Interest Period will be the relevant ISDA Rate plus or minus (as indicated in the applicable Final Terms) the Margin (if any). For the purposes of this sub-paragraph (A), "ISDA Rate" for an Interest Period means a rate equal to the Floating Rate that would be determined by the Issuing and Principal Paying
46
Agent under an interest rate swap transaction if the Issuing and Principal Paying Agent were acting as Calculation Agent for that swap transaction under the terms of an agreement incorporating the ISDA Definitions and under which:
(1)
the Floating Rate Option is as specified in the applicable Final Terms;
(2)
the Designated Maturity is a period specified in the applicable Final Terms; and
(3)
the relevant Reset Date is either (i) if the applicable Floating Rate Option is based on LIBOR or on
EURIBOR for a currency, the first day of that Interest Period or (ii) in any other case, as specified in the
applicable Final Terms.
For the purposes of this sub-paragraph (A), (i) "Floating Rate", "Calculation Agent", "Floating Rate Option", "Designated Maturity" and "Reset Date" have the meanings given to those terms in the ISDA Definitions, (ii) the definition of "Banking Day" in the ISDA Definitions shall be amended to insert after the words "are open for" in the second line the word "general" and (iii) "Euro-zone" means the region comprised of Member States of the European
Union that adopt the single currency in accordance with the Treaty establishing the European Community, as amended by the Treaty on European Union.
(B) Screen Rate Determination for Floating Rate Notes
Where Screen Rate Determination is specified in the applicable Final Terms as the manner in which the Rate of Interest is to be determined, the Rate of Interest for each Interest Period will, subject as provided below, be either:
(1)
the offered quotation; or
(2)
the arithmetic mean (rounded if necessary to the fifth decimal place, with 0.000005 being rounded
upwards) of the offered quotations,
(expressed as a percentage rate per annum) for the Reference Rate which appears or appear, as the case may be, on the Relevant Screen Page (or such replacement page on that service which displays the information) as at the Relevant Time on the Interest Determination Date in question plus or minus (as indicated in the applicable Final Terms) the Margin (if any), all as determined by the Issuing and Principal Paying Agent. If five or more of such offered quotations are available on the Relevant Screen Page, the highest (or, if there is more than one such highest quotation, one only of such quotations) and the lowest (or, if there is more than one such lowest quotation, one only of such quotations) shall be disregarded by the Issuing and Principal Paying Agent for the purpose of determining the arithmetic mean (rounded as provided above) of such offered quotations.
If the Relevant Screen Page is not available or if, in the case of Condition 4(b)(ii)(B)(1) above, no such offered quotation appears or, in the case of Condition 4(b)(ii)(B)(2) above, fewer than three such offered quotations appear, in each case as at the time specified in the preceding paragraph above, the Issuing and Principal Paying Agent shall request each of the Reference Banks to provide the Issuing and Principal Paying Agent with its offered quotation (expressed as a percentage rate per annum) for the Reference Rate, at approximately the Relevant Time, on the Interest Determination Date in question. If two or more of the Reference Banks provide the Issuing and Principal Paying Agent with such offered quotations, the Rate of Interest for such Interest Period shall be the arithmetic mean (rounded if necessary to the fifth decimal place with 0.000005 being rounded upwards) of such offered quotations plus or minus (as appropriate) the Margin (if any), all as determined by the Issuing and Principal Paying Agent.
If on any Interest Determination Date one only or none of the Reference Banks provides the Issuing and Principal Paying Agent with such offered quotations as provided in the preceding paragraph, the Rate of Interest for the relevant Interest Period shall be the rate per annum which the Issuing and Principal Paying Agent determines as being the arithmetic mean (rounded if necessary to the fifth decimal place, with 0.000005 being rounded upwards) of the rates, as communicated to (and at the request of) the Issuing and Principal Paying Agent by the Reference Banks or any two or more of them, at which such banks were offered, at approximately the Relevant Time, on the relevant Interest Determination Date, deposits in the Specified Currency for a period equal to that which would have been used for the Reference Rate by leading banks in, if the Reference Rate is LIBOR, the London inter-bank market or, if the Reference Rate is EURIBOR, the Euro-zone inter-bank market or, if the Reference Rate is TIBOR, the Tokyo inter-bank market or, if the Reference Rate is CDOR, the Toronto inter-bank market or, if the Reference Rate is JIBAR, the Johannesburg inter-bank market, as the case may be, plus or minus (as appropriate) the Margin (if any) or, if fewer than two of the Reference Banks provide the Issuing and Principal Paying Agent with such offered rates, the offered
47
rate for deposits in the Specified Currency for a period equal to that which would have been used for the Reference Rate, or the arithmetic mean (rounded as provided above) of the offered rates for deposits in the Specified Currency for a period equal to that which would have been used for the Reference Rate, at approximately the Relevant Time, on the relevant Interest Determination Date, any one or more banks (which bank or banks is or are in the opinion of the Issuer suitable for such purpose) informs the Issuing and Principal Paying Agent it is quoting to leading banks in, if the Reference Rate is LIBOR, the London inter-bank market or, if the Reference Rate is EURIBOR, the Euro-zone inter-bank market or, if the Reference Rate is TIBOR, the Tokyo inter-bank market or, if the Reference Rate is CDOR, the Toronto inter-bank market or, if the Reference Rate is JIBAR, the Johannesburg inter-bank market, as the case may be, plus or minus (as appropriate) the Margin (if any), provided that, if the Rate of Interest cannot be determined in accordance with the foregoing provisions of this paragraph, the Rate of Interest shall be determined as at the last preceding Interest Determination Date (though substituting, where a different Margin is to be applied to the relevant Interest Period from that which applied to the last preceding Interest Period, the Margin relating to the relevant Interest Period, in place of the Margin relating to that last preceding Interest Period).
(C) Rate of Interest for CMS Linked Notes
The Rate of Interest for each Interest Period will, subject as provided below, be determined by reference to the following formula:
[CMS Rate + Margin] x Gearing Factor
Where:
"CMS Rate" means, subject as provided below, the Relevant Swap Rate (expressed as a percentage rate per annum) for swap transactions in the Reference Currency with a maturity of the CMS Designated Maturity which appears on the Relevant Screen Page as at the Relevant Time on the Interest Determination Date in question, all as determined by the Calculation Agent and as specified in the applicable Final Terms.
"Gearing Factor" has the meaning specified in the applicable Final Terms.
"Margin" has the meaning specified in the applicable Final Terms.
If (for the purposes of determining the applicable CMS Rate) the Relevant Screen Page is not available, the Calculation Agent shall request each of the CMS Reference Banks to provide the Calculation Agent with its quotation for the Relevant Swap Rate (expressed as a percentage rate per annum) at approximately the Relevant Time on the Interest Determination Date in question. If three or more of the CMS Reference Banks provide the Calculation Agent such quotations, the CMS Rate for such Interest Period shall be the arithmetic mean rounded if necessary to the fifth decimal place, with 0.000005 being rounded upwards) of the quotations, eliminating the highest (or, if there is more than one highest quotation, one only of such quotations) and the lowest (or, if there is more than one lowest quotation, one only of such quotations).
If on any Interest Determination Date less than three or none of the CMS Reference Banks provides the Calculation Agent with such quotations as provided in the preceding paragraph, the Rate of Interest shall be determined as at the last preceding
Interest Determination Date (though substituting, where a different Margin is to be applied to the relevant Interest Period from that which applied to the last preceding Interest Period, the Margin relating to the relevant Interest Period, in place of the Margin relating to that last preceding Interest Period).
(D) Benchmark Discontinuation
This Condition 4(b)(ii)(D) applies only to (i) Floating Rate Notes where Screen Rate Determination is specified in the applicable Final Terms as the manner in which the Rate of Interest is to be determined and (ii) CMS Linked Notes.
(i)
Issuer Determination and Independent Adviser
If a Benchmark Discontinuation Event occurs in relation to an Original Reference Rate at any time when any Rate of Interest (or any component part thereof) remains to be determined by reference to such Original Reference Rate, then:
48
(a) the Issuer shall use its reasonable endeavours to appoint and consult with an Independent Adviser, as soon as reasonably practicable, with a view to the Issuer (acting in good faith and in a commercially reasonable manner) determining a Successor Rate, failing which an Alternative Rate (in accordance with Condition 4 (b)(ii)(D)(ii)) and, in either case, an Adjustment Spread (in accordance with Condition 4(b)(ii)(D)(iii)) and any Benchmark Amendments (in accordance with Condition 4(b)(ii)(D)(iv)), by no later than five Business Days prior to the first Interest Determination Date that (A) falls after the Benchmark Replacement Date relating to such Benchmark Discontinuation Event, and (B) relates to an Interest Period for which the Rate of Interest (or any component part thereof) is to be determined by reference to such Original Reference Rate (the "IA Determination Cut-off Date"); and
(b) if the Issuer is unable to appoint an Independent Adviser prior to the relevant IA Determination Cut-off Date in accordance with Condition 4(b)(ii)(D)(i)(a), the Issuer (acting in good faith and in a commercially reasonable manner) may determine a Successor Rate, failing which an Alternative Rate (in accordance with Condition 4(b)(ii)(D)(ii)) and, in either case, an Adjustment Spread (in accordance with Condition 4(b)(ii) (C)(iii)) and any Benchmark Amendments (in accordance with Condition 4(b)(ii)(D)(iv)), by no later than the first Interest Determination Date that (A) falls after the Benchmark Replacement Date relating to such Benchmark Discontinuation Event, and (B) relates to an Interest Period for which the Rate of Interest (or any component part thereof) is to be determined by reference to such Original Reference Rate.
An Independent Adviser appointed pursuant to this Condition 4(b)(ii)(D)(i) shall act in good faith and in a commercially reasonable manner and (in the absence of bad faith or fraud) shall have no liability whatsoever to the Trustee, the Issuing and Principal Paying Agent, any Calculation Agent, any other agents under the Agency Agreement (together with the Issuing and Principal Paying Agent and any Calculation Agent, the "Agents" and each an "Agent"), the Noteholders or the Couponholders for any advice given to the Issuer in connection with any determination made by the Issuer pursuant to this Condition 4(b)(ii)(D).
(ii) Successor Rate or Alternative Rate
If the Issuer (in accordance with Condition 4(b)(ii)(D)(i)) determines that:
(a)
there is a Successor Rate, then such Successor Rate and the applicable Adjustment Spread shall
subsequently be used in place of the Original Reference Rate to determine the relevant Rate of Interest (or
the relevant component part thereof) for all relevant future payments of interest on the Notes (subject to
Condition 4(b)(ii)(D)(v) and to the further operation of this Condition 4(b)(ii)(D)); or
(b)
there is no Successor Rate but that there is an Alternative Rate, then such Alternative Rate shall (subject
to adjustment as provided in Condition 4(b)(ii)(D)(iii)) subsequently be used in place of the Original
Reference Rate to determine the relevant Rate of Interest (or the relevant component part thereof) for all
relevant future payments of interest on the Notes (subject to Condition 4(b)(ii)(D)(v) and the further
operation of this Condition 4(b)(ii)(D)).
(iii) Adjustment Spread
The Adjustment Spread (or the formula or methodology for determining the Adjustment Spread) shall be applied to the Successor Rate or the Alternative Rate (as the case may be).
If the Issuer (in accordance with Condition 4(b)(ii)(D)(i)) is unable to determine the quantum of, or a formula or methodology for determining, an Adjustment Spread, then the Successor Rate or the Alternative Rate (as the case may be) will be used as described in Condition 4(b)(ii)(D)(ii) without application of any Adjustment Spread (subject
to Condition 4(b)(ii)(D)(v) and the further operation of this Condition 4(b)(ii)(D)).
(iv) Benchmark Amendments
If any Successor Rate or Alternative Rate and, in either case, the applicable Adjustment Spread is determined in accordance with this Condition 4(b)(ii)(D) and the Issuer (in accordance with Condition 4(b)(ii)(D)(i)) determines (a) that amendments to these Terms and Conditions, the Agency Agreement, (if
49
applicable) any calculation agency agreement (a "Calculation Agency Agreement") and/or the Trust Deed (including, without limitation, amendments to the definitions of Day Count Fraction, Business Day or Relevant Screen Page) are necessary to follow market practice or to ensure the proper operation of such Successor Rate or Alternative Rate and, in either case, the applicable Adjustment Spread (or any combination thereof) (such amendments, the "Benchmark Amendments") and (b) the terms of the Benchmark Amendments, then the Issuer shall, subject to (A) Condition 4(b)(ii)(D)(v) and (B) giving notice thereof in accordance with Condition 4(b)(ii)(D) (vi), without any requirement for the consent or approval of the Noteholders or the Couponholders, vary these Terms and Conditions, the Agency Agreement, the relevant Calculation Agency Agreement and/or the Trust Deed (as applicable) to give effect to such Benchmark Amendments with effect from the date specified in such notice.
At the request of the Issuer, but subject to receipt by the Trustee and each of the Agents of a certificate signed by two Directors of the Issuer pursuant to Condition 4(b)(ii)(D)(vi), the Trustee and/or each relevant Agent (as applicable) shall (at the expense of the Issuer), without any requirement for the consent or approval of the Noteholders or the Couponholders, be obliged to concur with the Issuer in using its reasonable endeavours to effect any Benchmark Amendments (including, inter alia, by the execution of a deed or agreement supplemental to or amending the Trust Deed and/or the Agency Agreement and/or the relevant Calculation Agency Agreement, as applicable) and neither the Trustee nor any Agent shall be liable to any party for any consequences thereof, provided that neither the Trustee nor any Agent shall be obliged so to concur if, in the sole opinion of the Trustee or the relevant Agent (as applicable), doing so would impose more onerous obligations upon it or expose it to any additional duties, responsibilities or liabilities or reduce or amend the protective provisions afforded to the Trustee or the relevant Agent, as applicable, in these Terms and Conditions, the Trust Deed, the Agency Agreement or any Calculation Agency Agreement (including, for the avoidance of doubt, any supplemental trust deed or supplemental agency agreement) in any way.
(v)
Benchmark Replacement Date
Notwithstanding any other provision of this Condition 4(b)(ii)(D), following the occurrence of any Benchmark Discontinuation Event:
(1)
no Successor Rate or Alternative Rate shall be used in place of the relevant Original Reference
Rate; and
(2)
no Adjustment Spread or Benchmark Amendments shall take effect,
until the first Interest Determination Date that (A) falls after the Benchmark Replacement Date relating to such Benchmark Discontinuation Event and (B) relates to an Interest Period for which the Rate of Interest (or any component part thereof) is to be determined by reference to the Original Reference Rate.
(vi) Notification of Successor Rate, Alternative Rate, Adjustment Spread and any Benchmark Amendments
Following a Benchmark Discontinuation Event and the determination of any Successor Rate, Alternative Rate, Adjustment Spread and/or Benchmark Amendments pursuant to the provisions of this Condition 4(b)(ii)(D) (and in any event prior to any Successor Rate, Alternative Rate, Adjustment Spread and/or Benchmark Amendments taking effect), the Issuer will promptly notify the Trustee, the Agents and, in accordance with Condition 14, the Noteholders, of any such Successor Rate, Alternative Rate, Adjustment Spread and/or the specific terms of any Benchmark Amendments so determined under this Condition 4(b)(ii)(D). Such notice shall be irrevocable and shall specify the effective date of the Benchmark Amendments (if any).
Prior to any Successor Rate, Alternative Rate, Adjustment Spread and/or Benchmark Amendments taking effect, the Issuer shall deliver to the Trustee and the Agents a certificate signed by two Directors of the Issuer:
50
(i)
confirming (a) that a Benchmark Discontinuation Event and the related Benchmark Replacement Date have
occurred, (b) the Successor Rate or, as the case may be, the Alternative Rate, (c) the applicable Adjustment
Spread and (d) the specific terms of any Benchmark Amendments, in each case as determined in
accordance with the provisions of this Condition 4(b)(ii)(D); and
(ii) certifying that the Benchmark Amendments (if any) are necessary to follow market practice or, as applicable, to ensure the proper operation of such Successor Rate or Alternative Rate and (in either case) the applicable Adjustment Spread or any combination thereof (as applicable).
The Trustee and the Agents shall be entitled to rely on such certificate (without enquiry or liability to any person) as sufficient evidence thereof.
The Successor Rate or Alternative Rate and the Adjustment Spread and the Benchmark Amendments (if any) specified in such certificate will (in the absence of manifest error in the determination of the Successor Rate or Alternative Rate and the Adjustment Spread and the Benchmark Amendments (if any) and without prejudice to the
Trustee's and each Agent's ability to rely on such certificate as aforesaid and subject to Condition 4(b)(ii)(D)(v)) be binding on the Issuer, the Trustee, the Agents, the Noteholders and the Couponholders as of their effective date.
(vii) Fallbacks
Without prejudice to the obligations of the Issuer under this Condition 4(b)(ii)(D), the Original Reference Rate and the fallback provisions provided for in (in the case of Floating Rate Notes) Condition 4(b)(ii)(B) or (in the case of CMS Linked Notes) Condition 4(b)(ii)(C) will continue to apply unless and until both (a) a Benchmark
Discontinuation Event in relation to the Original Reference Rate and (b) a related Benchmark Replacement Date have occurred.
If, following the occurrence of a Benchmark Replacement Date and in relation to the determination of the Rate of Interest on the relevant Interest Determination Date, no Successor Rate or Alternative Rate (as applicable) is determined in accordance with this Condition 4(b)(ii)(D) by such Interest Determination Date, the Original Reference Rate will continue to apply for the purposes of determining such Rate of Interest on such Interest Determination Date, with the effect that the fallback provisions provided for in (in the case of Floating Rate Notes) Condition 4(b)(ii)(B) or (in the case of CMS Linked Notes) Condition 4(b)(ii)(C) will (if applicable) continue to apply to such determination.
For the avoidance of doubt, this Condition 4(b)(ii)(D) shall apply to the determination of the Rate of Interest on the relevant Interest Determination Date only, and the Rate of Interest applicable to any subsequent Interest Period(s) is subject to the subsequent operation of, and to adjustment as provided in, this Condition 4(b)(ii)(D).
(iii) Rate of Interest for Inflation Linked Interest Notes
The Rate of Interest in respect of Inflation Linked Interest Notes for each Interest Period will be as specified in the applicable Final Terms. Amounts of interest payable in respect of Inflation Linked Interest Notes determined by reference to the applicable Rate of Interest shall be subject to adjustment in accordance with Condition 5.
(iv) Minimum Rate of Interest and/or Maximum Rate of Interest
If the applicable Final Terms specifies a Minimum Rate of Interest for any Interest Period, then, in the event that the Rate of Interest in respect of such Interest Period determined in accordance with the provisions of sub-paragraph (ii) above is less than such Minimum Rate of Interest, the Rate of Interest for such Interest Period shall be such Minimum Rate of Interest.
If the applicable Final Terms specifies a Maximum Rate of Interest for any Interest Period, then, in the event that the Rate of Interest in respect of such Interest Period determined in accordance with the provisions of sub-paragraph (ii) above is greater than such Maximum Rate of Interest, the Rate of Interest for such Interest Period shall be such Maximum Rate of Interest.
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(v)
Determination of Rate of Interest and calculation of Interest Amounts
The Issuing and Principal Paying Agent, in the case of Floating Rate Notes, and the Calculation Agent, in the case of CMS Linked Notes and Inflation Linked Interest Notes, will at or as soon as practicable after each time at which the Rate of
Interest is to be determined, determine the Rate of Interest for the relevant Interest Period. In the case of CMS Linked Notes and Inflation Linked Interest Notes, the Calculation Agent will notify the Issuing and Principal Paying Agent of the Rate of Interest for the relevant Interest Period as soon as practicable after calculating the same.
The Issuing and Principal Paying Agent will calculate the amount of interest (the "Interest Amount") payable on the Floating Rate Notes, CMS Linked Notes or Inflation Linked Interest Notes for the relevant Interest Period by applying the Rate of Interest to:
(A) in the case of Floating Rate Notes, CMS Linked Notes or Inflation Linked Interest Notes which are represented by a Global Note, the aggregate outstanding nominal amount of the Notes represented by such Global Note; or
(B) in the case of Floating Rate Notes, CMS Linked Notes or Inflation Linked Interest Notes in definitive form, the Calculation Amount;
and, in each case, multiplying such sum by the applicable Day Count Fraction, and rounding the resultant figure to the nearest sub-unit of the relevant Specified Currency, half of any such sub-unit being rounded upwards or otherwise in accordance with applicable market convention. Where the Specified Denomination of a Floating Rate Note, a CMS Linked Note or an Inflation Linked Interest Note in definitive form comprises more than one Calculation Amount, the Interest Amount payable in respect of such Note shall be the aggregate of the amounts (determined in the manner provided above) for each Calculation Amount comprising the Specified Denomination without any further rounding.
(vi) Linear Interpolation
Where Linear Interpolation is specified as applicable in respect of an Interest Period in the applicable Final Terms, the Rate of Interest for such Interest Period shall be calculated by the Issuing and Principal Paying Agent by straight line linear interpolation by reference to two rates based on the relevant Reference Rate (where Screen Rate Determination is specified as applicable in the applicable Final Terms) or the relevant Floating Rate Option (where ISDA Determination is specified as applicable in the applicable Final Terms), one of which shall be determined as if the Designated Maturity were the period of time for which rates are available next shorter than the length of the relevant Interest Period and the other of which shall be determined as if the Designated Maturity were the period of time for which rates are available next longer than the length of the relevant Interest Period provided however that if there is no rate available for a period of time next shorter or, as the case may be, next longer, then the Issuing and Principal Paying Agent shall determine such rate at such time and by reference to such sources as it determines appropriate.
"Designated Maturity" means, in relation to Screen Rate Determination, the period of time designated in the Reference Rate.
(vii) Notification of Rate of Interest and Interest Amounts
The Issuing and Principal Paying Agent will cause the Rate of Interest and each Interest Amount for each Interest Period and
the relevant Interest Payment Date to be notified to the Issuer and any stock exchange on which the relevant Floating Rate Notes, CMS Linked Notes or Inflation Linked Interest Notes are for the time being listed and notice thereof to be published
in accordance with Condition 14 as soon as possible after their determination but in no event later than the fourth London Business Day thereafter. Each Interest Amount and Interest Payment Date so notified may subsequently be amended (or appropriate alternative arrangements made by way of adjustment) without prior notice in the event of an extension or
shortening of the Interest Period. Any such amendment will be promptly notified to each stock exchange on which the relevant Floating Rate Notes, CMS Linked Notes or Inflation Linked Interest Notes are for the time being listed and to the Noteholders in accordance with Condition 14. For the purposes of this paragraph, the expression "London Business Day" means a day (other than a Saturday or a Sunday) on which banks and foreign exchange markets are open for business in London.
52
(ix) Certificates to be final
All certificates, communications, opinions, determinations, calculations, quotations and decisions given, expressed, made or obtained for the purposes of the provisions of this Condition 4, whether by the Issuing and Principal Paying Agent or, if applicable, the Calculation Agent shall (in the absence of manifest error) be binding on the Issuer, the Issuing and Principal Paying Agent, the Calculation Agent (if applicable), the other Paying Agents and all Noteholders and Couponholders and (in the absence as aforesaid) no liability to the Issuer, the Noteholders or the Couponholders shall attach to the Issuing and Principal Paying Agent or, if applicable, the Calculation Agent in connection with the exercise or non-exercise by it of its powers, duties and discretions pursuant to such provisions.
(c)
Accrual of interest
Each Note (or in the case of the redemption of part only of a Note, that part only of such Note) will cease to bear interest (if any) from the date for its redemption unless payment of principal is improperly withheld or refused. In such event, interest will continue to accrue as provided in the Trust Deed.
(d) Definitions
In these Terms and Conditions:
"Adjustment Spread" means either (a) a spread (which may be positive, negative or zero), or (b) a formula or methodology for calculating a spread, in either case, which the Issuer (in accordance with Condition 4(b)(ii)(D)(i)) determines is to be applied to the Successor Rate or the Alternative Rate (as the case may be) and is the spread, formula or methodology which:
(i)
in the case of a Successor Rate, is formally recommended in relation to the replacement of the Original Reference
Rate with such Successor Rate by any Relevant Nominating Body;
(ii)
in the case of an Alternative Rate or (where (i) above does not apply) in the case of a Successor Rate, the Issuer
determines is recognised or acknowledged as being in customary market usage in international debt capital markets
transactions which reference the Original Reference Rate, where such rate has been replaced by such Successor Rate
or such Alternative Rate (as the case may be); or
(iii) (if the Issuer determines that neither (i) nor (ii) above applies) the Issuer determines is recognised or acknowledged as being the industry standard for over-the-counter derivative transactions which reference the Original Reference Rate, where such rate has been replaced by the Successor Rate or the Alternative Rate (as the case may be); or
(iii) (if the Issuer determines that none of (i), (ii) or (iii) above applies) the Issuer determines to be appropriate in order to reduce or eliminate, to the extent reasonably practicable in the circumstances, any economic prejudice or benefit (as the case may be) to the Noteholders and the Couponholders as a result of the replacement of the Original Reference Rate with the Successor Rate or the Alternative Rate (as the case may be);
"Alternative Rate" means an alternative to the Original Reference Rate which the Issuer determines (in accordance with Condition 4(b)(ii)(D)(ii)) has replaced the Original Reference Rate in customary market usage in international debt capital markets transactions for the purposes of determining rates of interest (or the relevant component part thereof):
(i)
in the case of Floating Rate Notes, for a commensurate interest period and in the same Specified Currency as the
Notes; and
(ii)
in the case of CMS Linked Notes, with a commensurate swap rate designated maturity and in the same Reference
Currency as the Notes,
or, in any case, if the Issuer determines that there is no such rate, such other rate as the Issuer determines in its sole discretion is most comparable to the Original Reference Rate;
"Benchmark Amendments" has the meaning given to it in Condition 4(b)(ii)(D)(iv);
53
"Benchmark Discontinuation Event" means, with respect to an Original Reference Rate:
(i)
such Original Reference Rate ceasing to (a) be published for a period of at least five Business Days or (b) exist or be
administered; or
(ii)
the later of (a) the making of a public statement by the administrator of such Original Reference Rate that it will, on
or before a specified date, cease publishing such Original Reference Rate permanently or indefinitely (in
circumstances where no successor administrator has been appointed that will continue publication of such Original
Reference Rate) and (b) the date falling six months prior to the specified date referred to in (ii)(a); or
(iii) the making of a public statement by the supervisor of the administrator of such Original Reference Rate that such Original Reference Rate has been permanently or indefinitely discontinued; or
(iv) the later of (a) the making of a public statement by the supervisor of the administrator of such Original Reference Rate that such Original Reference Rate will, on or before a specified date, be permanently or indefinitely discontinued and (b) the date falling six months prior to the specified date referred to in (iv)(a);
(v) the making of a public statement by the supervisor of the administrator of such Original Reference Rate that means such Original Reference Rate has become prohibited from being used or that its use has become subject to restrictions or adverse consequences;
(vi) the later of (a) the making of a public statement by the supervisor of the administrator of the Original Reference Rate that means such Original Reference Rate will be prohibited from being used or that its use will be subject to restrictions or adverse consequences, in each case on or before a specified date and (b) the date falling six months prior to the specified date referred to in (vi)(a); or
(vii) it has or will, prior to the next Interest Determination Date, become unlawful for the Issuer, any Agent or any other party specified in the applicable Final Terms as being responsible for calculating the Rate of Interest and/or the
Interest Amount to calculate any payments due to be made to any Noteholder or Couponholder using such Original Reference Rate; or
(viii) the making of a public statement by the supervisor of the administrator of such Original Reference Rate announcing that such Original Reference Rate is no longer representative or may no longer be used;
"Benchmark Replacement Date" means, with respect to any Benchmark Discontinuation Event:
(i)
in the case of an event falling within sub-paragraph (i)(a) of the definition of "Benchmark Discontinuation Event",
the first Business Day immediately following such five-Business Day period;
(ii)
in the case of an event falling within sub-paragraphs (i)(b) or (ii) of the definition of "Benchmark Discontinuation
Event", the date of the relevant cessation of existence, administration or publication, as applicable;
(iii) in the case of an event falling within sub-paragraphs (iii), (v) or (viii) of the definition of "Benchmark Discontinuation Event", the date of the relevant public statement;
(iv) in the case of an event falling within sub-paragraph (iv) of the definition of "Benchmark Discontinuation Event", the date of the relevant discontinuation; or
(v)
in the case of event falling within sub-paragraphs (vi) or (vii) of the definition of "Benchmark Discontinuation
Event", the date on which the relevant prohibition, restrictions, adverse consequences or unlawfulness become
(s) effective;
54
"Business Day" means a day which is both:
(i)
a day on which commercial banks and foreign exchange markets settle payments and are open for general business
(including dealing in foreign exchange and foreign currency deposits) in London and any Additional Business
Centre specified in the applicable Final Terms; and
(ii)
either (1) in relation to any sum payable in a Specified Currency other than euro or Renminbi, a day on which
commercial banks and foreign exchange markets settle payments and are open for general business (including
dealing in foreign exchange and foreign currency deposits) in the principal financial centre of the country of the
relevant Specified Currency (which, if the Specified Currency is Australian dollars or New Zealand dollars, shall be
Sydney or Wellington, respectively), (2) in relation to any sum payable in euro, a day on which the Trans-European
Automated Real-Time Gross Settlement Express Transfer (TARGET2) System (the "TARGET2 System") is open
or (3) in relation to any sum payable in Renminbi, a day (other than a Saturday, Sunday or public holiday) on which
commercial banks and foreign exchange markets in Hong Kong are generally open for business and settlement for
Renminbi payments in Hong Kong;
"Calculation Agent" means the person appointed by the Issuer as calculation agent in relation to a Series of CMS Linked Notes and specified in the applicable Final Terms and shall include any successor calculation agent appointed in respect of such Notes;
"CDOR" means the Canadian dollar offered rate;
"CMS Reference Banks" means:
(i)
where the Reference Currency is euro, the principal office of five leading swap dealers in the Euro-zone inter-bank
market;
(ii)
where the Reference Currency is Sterling, the principal London office of five leading swap dealers in the London
inter-bank market;
(iii) where the Reference Currency is U.S. dollars, the principal New York City office of five leading swap dealers in the New York City inter-bank market; and
(iv) in the case of any other Reference Currency, the principal Relevant Financial Centre office of five leading swap dealers in the Relevant Financial Centre inter-bank market,
in each case as selected by the Calculation Agent;
"Day Count Fraction" means, in respect of the calculation of an amount of interest in accordance with Condition 4(b):
(i)
if "Actual/Actual-ISDA" or "Actual/Actual" is specified in the applicable Final Terms, the actual number of days
in the Interest Period divided by 365 (or, if any portion of that Interest Period falls in a leap year, the sum of (A) the
actual number of days in that portion of the Interest Period falling in a leap year divided by 366 and (B) the actual
number of days in that portion of the Interest Period falling in a non-leap year divided by 365);
(ii)
if "Actual/365 (Sterling)" is specified in the applicable Final Terms, the actual number of days in the Interest
Period divided by 365 or, in the case of an Interest Payment Date falling in a leap year, 366;
(iii) if "Actual/365 (Fixed)" is specified in the applicable Final Terms, the actual number of days in the Interest Period divided by 365;
(iv) if "Actual/360" is specified in the applicable Final Terms, the actual number of days in the Interest Period divided by 360;
(v) if "30/360", "360/360" or "Bond Basis" is specified in the applicable Final Terms, the number of days in the Interest Period divided by 360, calculated on a formula basis as follows:
55
where: "Y1" is the year, expressed as a number, in which the first day of the Interest Period falls; "Y2" is the year, expressed as a number, in which the day immediately following the last day of the Interest Period falls; "M1" is the calendar month, expressed as a number, in which the first day of the Interest Period falls; "M2" is the calendar month, expressed as a number, in which the day immediately following the last day of the Interest Period falls; "D1" is the first calendar day, expressed as a number, of the Interest Period, unless such number is 31, in which case D1 will be 30; and "D2" is the calendar day, expressed as a number, immediately following the last day included in the Interest Period, unless such number would be 31 and D1 is greater than 29, in which case D2 will be 30; (vi) if "30E/360" or "Eurobond Basis" is specified in the applicable Final Terms, the number of days in the Interest Period divided by 360, calculated on a formula basis as follows:
where: "Y1" is the year, expressed as a number, in which the first day of the Interest Period falls; "Y2" is the year, expressed as a number, in which the day immediately following the last day of the Interest Period falls; "M1" is the calendar month, expressed as a number, in which the first day of the Interest Period falls; "M2" is the calendar month, expressed as a number, in which the day immediately following the last day of the Interest Period falls; "D1" is the first calendar day, expressed as a number, of the Interest Period, unless such number would be 31, in which case D1 will be 30; and "D2" is the calendar day, expressed as a number, immediately following the last day included in the Interest Period, unless such number would be 31, in which case D2 will be 30; and (vii) if "30E/360 (ISDA)" is specified in the applicable Final Terms, the number of days in the Interest Period divided by 360, calculated on a formula basis as follows:
where: "Y1" is the year, expressed as a number, in which the first day of the Interest Period falls; "Y2" is the year, expressed as a number, in which the day immediately following the last day of the Interest Period falls; "M1" is the calendar month, expressed as a number, in which the first day of the Interest Period falls;
56
"M2" is the calendar month, expressed as a number, in which the day immediately following the last day of the Interest Period falls;
"D1" is the first calendar day, expressed as a number, of the Interest Period, unless (i) that day is the last day of February or (ii) such number would be 31, in which case D1 will be 30; and
"D2" is the calendar day, expressed as a number, immediately following the last day included in the Interest Period, unless (i) that day is the last day of February but not the Maturity Date or (ii) such number would be 31, in which case D2 will be 30;
"Determination Period" means each period from (and including) a Determination Date to (but excluding) the next Determination Date (including, where either the Interest Commencement Date or the final Interest Payment Date is not a
Determination Date, the period commencing on the first Determination Date prior to, and ending on the first Determination Date falling after, such date);
"EURIBOR" means the Euro-zone inter-bank offered rate;
"Fixed Day Count Fraction" means, in respect of the calculation of an amount of interest in accordance with Condition 4 (a):
(i)
if "Actual/Actual (ICMA)" is specified in the applicable Final Terms:
(a) in the case of Notes where the number of days in the relevant period from (and including) the most recent Interest Payment Date (or, if none, the Interest Commencement Date) to (but excluding) the relevant payment date (the "Accrual Period") is equal to or shorter than the Determination Period during which the Accrual Period ends, the number of days in such Accrual Period divided by the product of (1) the number of days in such Determination Period and (2) the number of Determination Dates (as specified in the applicable Final Terms) that would occur in one calendar year; or
(b) in the case of Notes where the Accrual Period is longer than the Determination Period during which the Accrual Period ends, the sum of:
(1)
the number of days in such Accrual Period falling in the Determination Period in which the
Accrual Period begins divided by the product of (x) the number of days in such Determination
Period and (y) the number of Determination Dates (as specified in the applicable Final Terms) that
would occur in one calendar year; and
(2)
the number of days in such Accrual Period falling in the next Determination Period divided by the
product of (x) the number of days in such Determination Period and (y) the number of
Determination Dates that would occur in one calendar year assuming interest was to be payable in
respect of the whole of that year;
(ii)
if "30/360" is specified in the applicable Final Terms, the number of days in the period from (and including) the
most recent Interest Payment Date (or, if none, the Interest Commencement Date) to (but excluding) the relevant
payment date (such number of days being calculated on the basis of a year of 360 days with 12 30-day months)
divided by 360; and
(iii) if "Actual/365 (Fixed)" is specified in the applicable Final Terms, the actual number of days in the relevant period divided by 365;
"Independent Adviser" means an independent financial institution of international repute or an independent financial adviser with appropriate expertise in the international debt capital markets appointed by the Issuer at its own expense under Condition 4(b)(ii)(D)(i) and notified in writing to the Trustee;
"Interest Determination Date" means:
(i)
if the Notes are Floating Rate Notes and:
57
(a) the Reference Rate is LIBOR (other than Sterling or Euro LIBOR), the second London business day prior to the start of each Interest Period;
(b) the Reference Rate is Sterling LIBOR, the first day of each Interest Period;
(c)
the Reference Rate is Euro LIBOR or EURIBOR, the second day on which the TARGET2 System is open
prior to the start of each Interest Period;
(d) the Reference Rate is TIBOR , the second Tokyo Business Day prior to the start of each Interest Period;
(e)
the Reference Rate is CDOR, the first day of each Interest Period; or
(f)
the Reference Rate is JIBAR, the first day of each Interest Period; or
(ii)
if the Notes are CMS Linked Notes, each date specified in the applicable Final Terms;
"Interest Period" means the period from (and including) an Interest Payment Date (or the Interest Commencement Date) to (but excluding) the next (or first) Interest Payment Date;
"ISDA Definitions" means the 2006 ISDA Definitions (as published by the International Swaps and Derivatives Association, Inc. and amended and updated as at the Issue Date of the first Tranche of the Notes);
"JIBAR" means the Johannesburg inter-bank agreed rate;
"LIBOR" means the London inter-bank offered rate;
"Original Reference Rate" means the originally-specified benchmark or screen rate (as applicable) used to determine the relevant Rate of Interest (or any component part thereof) in respect of any Interest Period(s) (provided that if, following one or more Benchmark Replacement Dates, such originally-specified benchmark or screen rate (as applicable) (or any Successor Rate or Alternative Rate which has replaced it) has been replaced by a (for a further) Successor Rate or Alternative Rate and a Benchmark Discontinuation Event and a related Benchmark Replacement Date subsequently occur in respect of such Successor Rate or Alternative Rate, the term "Original Reference Rate" shall include any such Successor Rate or Alternative Rate);
"Reference Banks" means, in the case of a determination of LIBOR, the principal London office of four major banks in the London inter-bank market, in the case of a determination of EURIBOR, the principal office of four major banks in the Eurozone inter-bank market, in the case of a determination of TIBOR, the principal Tokyo office of ten major banks in the Tokyo inter-bank market, in the case of a determination of CDOR, four major Canadian Schedule I chartered banks, in the case of a determination of JIBAR, the principal Johannesburg office of four major banks in the Johannesburg inter-bank market, in each case selected by the Issuing and Principal Paying Agent;
"Reference Rate" means (i) LIBOR, (ii) EURIBOR, (iii) TIBOR, (iv) CDOR, (v) JIBAR or (vi) CMS Rate, in each case for the relevant period, as specified in the applicable Final Terms;
"Relevant Financial Centre" means:
(i)
if the Notes are Floating Rate Notes:
(a)
London, in the case of a determination of LIBOR;
(b)
Brussels, in the case of a determination of EURIBOR;
(c)
Tokyo, in the case of a determination of TIBOR;
(d)
Toronto, in the case of a determination of CDOR; and
(e)
Johannesburg, in the case of a determination of JIBAR; or
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(ii)
if the Notes are CMS Linked Notes, the city specified in the applicable Final Terms;
"Relevant Nominating Body" means, in respect of an Original Reference Rate:
(i)
the central bank for the currency to which such Original Reference Rate relates, or any central bank or other
supervisory authority which is responsible for supervising the administrator of such Original Reference Rate; or
(ii)
any working group or committee sponsored by, chaired or co-chaired by or constituted at the request of (a) the
central bank for the currency to which such Original Reference Rate relates, (b) any central bank or other
supervisory authority which is responsible for supervising the administrator of such Original Reference Rate, (c) a
group of the aforementioned central banks or other supervisory authorities or (d) the Financial Stability Board or any
part thereof;
"Relevant Swap Rate" means:
(i)
where the Reference Currency is euro, the mid-market annual swap rate determined on the basis of the arithmetic
mean of the bid and offered rates for the annual fixed leg, calculated on a 30/360 day count basis, of a fixed-for-
floating euro interest rate swap transaction with a term equal to the Designated Maturity commencing on the first
day of the relevant Interest Period and in a Representative Amount with an acknowledged dealer of good credit in
the swap market, where the floating leg, in each case calculated on an Actual/360 day count basis, is equivalent to
EUR-EURIBOR-Reuters (as defined in the ISDA Definitions) with a designated maturity determined by the
Calculation Agent by reference to standard market practice and/or the ISDA Definitions;
(ii)
where the Reference Currency is Sterling, the mid-market semi-annual swap rate determined on the basis of the
arithmetic mean of the bid and offered rates for the semi-annual fixed leg, calculated on an Actual/365 (Fixed) day
count basis, of a fixed-for-floating Sterling interest rate swap transaction with a term equal to the Designated
Maturity commencing on the first day of the relevant Interest Period and in a Representative Amount with an
acknowledged dealer of good credit in the swap market, where the floating leg, in each case calculated on an
Actual/365 (Fixed) day count basis, is equivalent (A) if the Designated Maturity is greater than one year, to GBP-
LIBOR-BBA (as defined in the ISDA Definitions) with a designated maturity of six months or (B) if the Designated
Maturity is one year or less, to GBP-LIBOR-BBA with a designated maturity of three months;
(iii) where the Reference Currency is U.S. dollars, the mid-market semi-annual swap rate determined on the basis of the mean of the bid and offered rates for the semi-annual fixed leg, calculated on a 30/360 day count basis, of a fixedfor-floating U.S. dollar interest rate swap transaction with a term equal to the Designated Maturity commencing on the first day of the relevant Interest Period and in a Representative Amount with an acknowledged dealer of good credit in the swap market, where the floating leg, calculated on an Actual/360 day count basis, is equivalent to USDLIBOR-BBA (as defined in the ISDA Definitions) with a designated maturity of three months; and
(iv) where the Reference Currency is any other currency, the mid-market swap rate as determined by the Calculation Agent in its sole and absolute discretion on a commercial basis as it shall consider appropriate and in accordance with standard market practice;
"Relevant Time" means:
(i)
if the Notes are Floating Rate Notes:
(a)
in the case of LIBOR, 11.00 a.m.;
(b)
in the case of EURIBOR, 11.00 a.m.;
(c)
in the case of TIBOR, 11.00 a.m.;
(d)
in the case of CDOR, 10.00 a.m.; and
59
(e)
in the case of JIBAR, 11.00 a.m.; or
(ii)
if the Notes are CMS Linked Notes, the time specified in the applicable Final Terms,
in each case in the Relevant Financial Centre;
"Representative Amount" means an amount that is representative for a single transaction in the relevant market at the relevant time;
"sub-unit" means, with respect to any currency other than euro, the lowest amount of such currency that is available as legal tender in the country of such currency and, with respect to euro, means one cent;
"Successor Rate" means a successor to or replacement of the Original Reference Rate which is formally recommended by any Relevant Nominating Body; and
"TIBOR" means the Tokyo inter-bank offered rate.
5.
Inflation Linked Notes
This Condition 5 is applicable only if the applicable Final Terms specifies the Notes as Inflation Linked Interest Notes and/or Inflation Linked Redemption Notes ("Inflation Linked Notes").
(a) U.K. Retail Price Index
Where RPI (as defined below) is specified as the Index in the applicable Final Terms, Conditions 5(a) to 5(f) will apply. For purposes of Conditions 5(a) to 5(f), unless the context otherwise requires, the following defined terms shall have the meanings set out below:
"Base Index Figure" means (subject to Condition 5(c)(i)) the base index figure as specified in the applicable Final Terms;
"Calculation Agent" means the person appointed by the Issuer as calculation agent in relation to a Series of Inflation Linked Notes and specified in the applicable Final Terms, and shall include any successor calculation agent appointed in respect of such Notes;
"Her Majesty's Treasury" means Her Majesty's Treasury or any officially recognised party performing the function of a calculation agent (whatever such party's title), on its or its successor's behalf, in respect of the Reference Gilt;
"Index" or "Index Figure" means, subject as provided in Condition 5(c)(i), the U.K. Retail Price Index (RPl) (for all items) published by the Office for National Statistics (January 1987 = 100) or any comparable index which may replace the U.K. Retail Price Index for the purpose of calculating the amount payable on repayment of the Reference Gilt (the "RPI"). Any reference to the Index Figure:
(i)
applicable to a particular month, shall, subject as provided in Conditions 5(c) and 5(e), be construed as a reference
to the Index Figure published in the seventh month prior to that particular month and relating to the month before
that of publication; or
(ii)
applicable to the first calendar day of any month shall, subject as provided in Conditions 5(c) and 5(e), be construed
as a reference to the Index Figure published in the second month prior to that particular month and relating to the
month before that of publication; or
(iii) applicable to any other day in any month shall, subject as provided in Conditions 5(c) and 5(e), be calculated by linear interpolation between (x) the Index Figure applicable to the first calendar day of the month in which the day falls, calculated as specified in sub-paragraph (ii) above and (y) the Index Figure applicable to the first calendar day of the month following, calculated as specified in sub-paragraph (ii) above and rounded to the nearest fifth decimal place;
"Index Ratio" applicable to any month or date, as the case may be, means the Index Figure applicable to such month or date, as the case may be, divided by the Base Index Figure and rounded to the nearest fifth decimal place;
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"Limited Index Ratio" means (a) in respect of any month or date, as the case may be, prior to the relevant Issue Date, the Index Ratio for that month or date, as the case may be, (b) in respect of any Limited Indexation Date after the relevant Issue Date, the product of the Limited Indexation Factor for that month or date, as the case may be, and the Limited Index Ratio as previously calculated in respect of the month or date, as the case may be, twelve months prior thereto; and (c) in respect of any other month, the Limited Index Ratio as previously calculated in respect of the most recent Limited Indexation Month;
"Limited Indexation Date" means any date falling during the period specified in the applicable Final Terms for which a Limited Indexation Factor is to be calculated;
"Limited Indexation Factor" means, in respect of a Limited Indexation Month or Limited Indexation Date, as the case may be, the ratio of the Index Figure applicable to that month or date, as the case may be, divided by the Index Figure applicable to the month or date, as the case may be, twelve months prior thereto, provided that (a) if such ratio is greater than the Maximum Indexation Factor specified in the applicable Final Terms, it shall be deemed to be equal to such Maximum Indexation Factor and (b) if such ratio is less than the Minimum Indexation Factor specified in the applicable Final Terms, it shall be deemed to be equal to such Minimum Indexation Factor;
"Limited Indexation Month" means any month specified in the applicable Final Terms for which a Limited Indexation Factor is to be calculated;
"Limited Index Linked Notes" means Inflation Linked Notes to which a Maximum Indexation Factor and/or a Minimum Indexation Factor (as specified in the applicable Final Terms) applies; and
"Reference Gilt" means the index-linked Treasury Stock or Treasury Gilt specified as such in the applicable Final Terms for so long as such gilt is in issue, and thereafter such issue of index-linked Treasury Stock or Treasury Gilt determined to be appropriate by a gilt-edged market maker or other adviser selected by the Issuer (an "Indexation Adviser").
(b) Application of the Index Ratio
Each payment of interest (in the case of Inflation Linked Interest Notes) and principal (in the case of Inflation Linked Redemption Notes) in respect of the Notes shall be the amount provided in, or determined in accordance with, these Terms and Conditions, multiplied by the Index Ratio or Limited Index Ratio in the case of Limited Index Linked Notes applicable to
the month or date, as the case may be, on which such payment falls to be made and rounded in accordance with Condition 4 (b)(v).
(c)
Changes in Circumstances Affecting the Index
(i)
Change in base: If at any time and from time to time the Index is changed by the substitution of a new base therefor,
then with effect from the month from and including that in which such substitution takes effect or the first date from
and including that on which such substitution takes effect, as the case may be, (1) the definition of "Index" and
"Index Figure" in Condition 5(a) shall be deemed to refer to the new date or month in substitution for January 1987
(or, as the case may be, to such other date or month as may have been substituted therefor), and (2) the new Base
Index Figure shall be the product of the existing Base Index Figure and the Index Figure for the date on which such
substitution takes effect, divided by the Index Figure for the date immediately preceding the date on which such
substitution takes effect.
(ii)
Delay in publication of Index if sub-paragraph (i) of the definition of Index Figure is applicable: If the Index Figure
which is normally published in the seventh month and which relates to the eighth month (the "relevant month")
before the month in which a payment is due to be made is not published on or before the fourteenth business day
before the date on which such payment is due (the "date for payment"), the Index Figure applicable to the month in
which the date for payment falls shall be (1) such substitute index figure (if any) as the Trustee considers (acting
solely on the advice of the Indexation Adviser) to have been published by the United Kingdom Debt Management
Office or the Bank of England, as the case may be, for the purposes of indexation of payments on the Reference Gilt
or, failing such publication, on any one or more issues of index-linked Treasury Stock selected by an Indexation
Adviser (and approved by the Trustee (acting solely on the advice of the Indexation Adviser)) or (2) if no such
determination is made by such Indexation Adviser within seven days, the Index Figure last published (or, if later, the
substitute index figure last determined pursuant to Condition 5(c)(i)) before the date for payment.
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(iii) Delay in publication of Index if sub-paragraph (ii) and/or (iii) of the definition of Index Figure is applicable: If the Index Figure relating to any month (the "calculation month") which is required to be taken into account for the purposes of the determination of the Index Figure for any date is not published on or before the fourteenth business day before the date on which such payment is due (the "date for payment"), the Index Figure applicable for the relevant calculation month shall be (1) such substitute index figure (if any) as the Trustee considers (acting solely on the advice of the Indexation Adviser) to have been published by the United Kingdom Debt Management Office or the Bank of England, as the case may be, for the purposes of indexation of payments on the Reference Gilt or, failing such publication, on any one or more issues of index-linked Treasury Stock selected by an Indexation Adviser (and approved by the Trustee (acting solely on the advice of the Indexation Adviser)) or (2) if no such determination is made by such Indexation Adviser within seven days, the Index Figure last published (or, if later, the substitute index figure last determined pursuant to Condition 5(c)(i)) before the date for payment.
(d) Application of Changes
Where the provisions of Condition 5(c)(ii) or Condition 5(c)(iii) apply, the determination of the Indexation Adviser as to the Index Figure applicable to the month in which the date for payment falls or the date for payment, as the case may be, shall be conclusive and binding. If, an Index Figure having been applied pursuant to Condition 5(c)(ii)(2) or Condition 5(c)(iii)(2), the Index Figure relating to the relevant month or relevant calculation month, as the case may be, is subsequently published while a Note is still outstanding, then:
(i)
in relation to a payment of interest (in the case of Inflation Linked Interest Notes) and/or principal (in the case of
Inflation Linked Redemption Notes) in respect of such Note other than upon final redemption of such Note, the
interest and/or principal (as the case may be) next payable after the date of such subsequent publication shall be
increased or reduced, as the case may be, by an amount equal to the shortfall or excess, as the case may be, of the
amount of the relevant payment made on the basis of the Index Figure applicable by virtue of Condition 5(c)(ii)
(2) or Condition 5(c)(iii)(2) below or above the amount of the relevant payment that would have been due if the
Index Figure subsequently published had been published on or before the fourteenth business day before the date for
payment; and
(ii)
in relation to a payment of interest (in the case of Inflation Linked Interest Notes) and/or principal (in the case of
Inflation Linked Redemption Notes) upon final redemption, no subsequent adjustment to amounts paid will be
made.
(e)
Material Changes or Cessation of the Index
(i) Material changes to the Index: If notice is published by Her Majesty's Treasury, or on its behalf, following a change to the coverage or the basic calculation of the Index, then the Calculation Agent shall make any such adjustments to the Index consistent with any adjustments made to the Index as applied to the Reference Gilt.
(ii) Cessation of the Index: If the Trustee and the Issuer have been notified by the Calculation Agent that the Index has ceased to be published, or if Her Majesty's Treasury, or a person acting on its behalf, announces that it will no
longer continue to publish the Index, then the Calculation Agent shall determine a successor index in lieu of any previously applicable index (the "Successor Index") by using the following methodology:
(a) if at any time a successor index has been designated by Her Majesty's Treasury in respect of the Reference Gilt, such successor index shall be designated the "Successor Index" for the purposes of all subsequent Interest Payment Dates, notwithstanding that any other Successor Index may previously have been determined under paragraphs (b) or (c) below; or
(b) if a Successor Index has not been determined under paragraph (a) above, the Issuer and the Trustee (acting solely on the advice of the Indexation Adviser) together shall seek to agree for the purpose of the Notes one or more adjustments to the Index or a substitute index (with or without adjustments) with the intention that
the same should leave the Issuer and the Noteholders in no better and no worse position than they would have been had the Index not ceased to be published; or
(c) if the Issuer and the Trustee (acting solely on the advice of the Indexation Adviser) fail to reach agreement as mentioned above within 20 business days following the giving of notice as mentioned
62
in paragraph (ii), a bank or other person in London shall be appointed by the Issuer and the Trustee or, failing agreement on and the making of such appointment within 20 business days following the expiry of the 20 business day period referred to above, by the Trustee (acting solely on the advice of the Indexation Adviser) (in each case, such bank or other person so appointed being referred to as the "Expert"), to determine for the purpose of the Notes one or more adjustments to the Index or a substitute index (with or without adjustments) with the intention that the same should leave the Issuer and the Noteholders in no better and no worse position than they would have been had the Index not ceased to be published. Any Expert so appointed shall act as an expert and not as an arbitrator and all fees, costs and expenses of the Expert and of any Indexation Adviser and of any of the Issuer and the Trustee in connection with such appointment shall be borne by the Issuer.
(iii) Adjustment or replacement: The Index shall be adjusted or replaced by a substitute index pursuant to the foregoing paragraphs, as the case may be, and references in these Terms and Conditions to the Index and to any Index Figure shall be deemed amended in such manner as the Trustee (acting solely on the advice of the Indexation Adviser) and the Issuer agree are appropriate to give effect to such adjustment or replacement. Such amendments shall be effective from the date of such notification and binding upon the Issuer, the Trustee and the Noteholders, and the Issuer shall give notice to the Noteholders in accordance with Condition 14 of such amendments as promptly as practicable following such notification or adjustment.
(f)
Redemption for Index Reasons
If either (i) the Index Figure for three consecutive months is required to be determined on the basis of an Index Figure previously published as provided in Condition 5(c)(ii)(2) and the Trustee has been notified by the Calculation Agent that publication of the Index has ceased or (ii) notice is published by Her Majesty's Treasury, or on its behalf, following a change in relation to the Index, offering a right of redemption to the holders of the Reference Gilt, and (in either case) no amendment or substitution of the Index shall have been designated by Her Majesty's Treasury in respect of the Reference Gilt and such circumstances are continuing, the Issuer may, upon giving not more than 60 nor less than
30 days' notice to the Noteholders (or such other notice period as may be specified in the applicable Final Terms) in accordance with Condition 14, redeem all, but not some only, of the Notes at their Early Redemption Amount referred to in Condition 6(f) below together (if appropriate) with interest accrued to (but excluding) the date of redemption (in each case adjusted in accordance with Condition 5(b)).
(g) HICP
Where HICP (as defined below) is specified as the Index in the applicable Final Terms, the Conditions 5(g) to 5(j) will apply. For purposes of Conditions 5(g) to 5(j), unless the context otherwise requires, the following defined terms shall have the meanings set out below:
"Base Index Level" means the base index level as specified in the applicable Final Terms;
"Calculation Agent" means the person appointed by the Issuer as calculation agent in relation to a Series of Inflation Linked Notes and specified in the applicable Final Terms, and shall include any successor calculation agent appointed in respect of such Notes;
"Index" or "Index Level" means (subject as provided in Condition 5(i)) the non-revised Harmonised Index of Consumer
Prices excluding tobacco or relevant Successor Index (as defined in Condition 5(i)(ii)), measuring the rate of inflation in the European Monetary Union excluding tobacco, expressed as an index and published by Eurostat (the "HICP"). The first publication or announcement of a level of such index for a calculation month (as defined in Condition
5(i)(i)(A)) shall be final and conclusive and later revisions to the level for such calculation month will not be used in any calculations. Any reference to the Index Level which is specified in these Terms and Conditions as applicable to any day ("d") in any month ("m") shall, subject as provided in Condition 5(i), be calculated as follows:
where: "Id" is the Index Level for the day d
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"HICP" m-2 is the level of HICP for month m-2
"HICP" m-3 is the level of HICP for month m-3
"nbd" is the actual number of days from and excluding the first day of month m to but including day d;
and
"qm" is the actual number of days in month m,
provided that if Condition 5(i) applies, the Index Level shall be the Substitute Index Level determined in accordance with such Condition.
"Index Business Day" means a day on which the TARGET System is operating;
"Index Determination Date" means in respect of any date for which the Index Level is required to be determined, the fifth Index Business Day prior to such date;
"Index Ratio" applicable to any date means the Index Level applicable to the relevant Index Determination Date divided by the Base Index Level and rounded to the nearest fifth decimal place, 0.000005 being rounded upwards;
"Related Instrument" means an inflation-linked bond selected by the Calculation Agent that is a debt obligation of one of the governments (but not any government agency) of France, Italy, Germany or Spain and which pays a coupon or redemption amount which is calculated by reference to the level of inflation in the European Monetary Union with a maturity date which falls on (a) the same day as the Maturity Date or (b) the next longest maturity date after the Maturity Date or the next shortest maturity for the Maturity Date at its sole discretion, if there is no such bond maturing on the Maturity Date. The Calculation Agent will select the Related Instrument from such of those inflation-linked bonds issued on or before the relevant Issue Date and, if there is more than one such inflation-linked bond maturing on the same date, the Related Instrument shall be selected by the Calculation Agent from such bonds at its sole discretion. If the Related Instrument is redeemed the Calculation Agent will select a new Related Instrument on the same basis, but selected from all eligible bonds in issue at the time the originally selected Related Instrument is redeemed (including any bond for which the redeemed originally selected Related Instrument is exchanged).
(h) Application of the Index Ratio
Each payment of interest (in the case of Inflation Linked Interest Notes) and principal (in the case of Inflation Linked Redemption Notes) in respect of the Notes shall be the amount provided in, or determined in accordance with, these Terms and Conditions, multiplied by the Index Ratio applicable to the date on which such payment falls to be made and rounded in accordance with Condition 4(b)(v).
(i)
Changes in Circumstances Affecting the Index
(i)
Delay in publication of Index
(A) If the Index Level relating to any month (the "calculation month") which is required to be taken into account for the purposes of the determination of the Index Level for any date (the "Relevant Level") has
not been published or announced by the day that is five Business Days before the date on which such payment is due (the "Affected Payment Date"), the Calculation Agent shall determine a Substitute Index Level (as defined below) (in place of such Relevant Level) by using the following methodology:
(1)
if applicable, the Calculation Agent will take the same action to determine the "Substitute Index
Level" for the Affected Payment Date as that taken by the calculation agent (or any other party
performing the function of a calculation agent (whatever such party's title)) pursuant to the terms
and conditions of the Related Instrument;
(2)
if (1) above does not result in a Substitute Index Level for the Affected Payment Date for any
reason, then the Calculation Agent shall determine the Substitute Index Level as follows:
Substitute Index Level = Base Level x (Latest Level / Reference Level)
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Where:
"Base Level" means the level of the Index (excluding any flash estimates) published or announced by Eurostat (or any successor entity which publishes such index) in respect of the month which is 12 calendar months prior to the month for which the Substitute Index Level is being determined;
"Latest Level" means the latest level of the Index (excluding any flash estimates) published or announced by Eurostat (or any successor entity which publishes such index) prior to the month in respect of which the Substitute Index Level is being calculated; and
"Reference Level" means the level of the Index (excluding any flash estimates) published or announced by Eurostat (or any successor entity which publishes such index) in respect of the month that is 12 calendar months prior to the month referred to in "Latest Level" above.
(B) If a Relevant Level is published or announced at any time after the day that is five Business Days prior to the next Interest Payment Date, such Relevant Level will not be used in any calculations. The Substitute Index Level so determined pursuant to this Condition 5(i) will be the definitive level for that calculation month.
(ii)
Cessation of publication: If the Index Level has not been published or announced for two consecutive months or
Eurostat announces that it will no longer continue to publish or announce the Index then the Calculation Agent shall
determine a successor index in lieu of any previously applicable Index (the "Successor Index") by using the
following methodology:
(A) if at any time (other than after an Early Termination Event (as defined below) has been designated by the Calculation Agent pursuant to paragraph (E) below) a successor index has been designated by the calculation agent (or any other party performing the function of a calculation agent (whatever such party's title)) pursuant to the terms and conditions of the Related Instrument, such successor index shall be designated the "Successor Index" for the purposes of all subsequent Interest
Payment Dates, notwithstanding that any other Successor Index may previously have been determined under paragraphs (B), (C) or (D) below; or
(B) if a Successor Index has not been determined under paragraph (A) above (and there has been no designation of an Early Termination Event pursuant to paragraph (E) below), and a notice has been given or an announcement has been made by Eurostat (or any successor entity which publishes such index) specifying that the Index will be superseded by a replacement index specified by Eurostat (or any such successor), and the Calculation Agent determines that such replacement index is calculated using the same or substantially similar formula or method of calculation as used in the calculation of the previously applicable Index, such replacement index shall be the Index from the date that such replacement index comes into effect; or
(C) if a Successor Index has not been determined under paragraphs (A) or (B) above (and there has been no designation of an Early Termination Event pursuant to paragraph (E) below), the Calculation Agent shall ask five leading independent dealers to state what the replacement index for the Index should be. If four or five responses are received, and of those four or five responses, three or more leading independent dealers state the same index, this index will be deemed the
"Successor Index". If three responses are received, and two or more leading independent dealers state the same index, this index will be deemed the "Successor Index". If fewer than three responses are received, the Calculation Agent will proceed to paragraph (D) below;
(D) if no Successor Index has been determined under paragraphs (A), (B) or (C) above on or before the fifth Index Business Day prior to the next Affected Payment Date the Calculation Agent will determine an appropriate alternative index for such Affected Payment Date, and such index will be deemed the "Successor Index";
(E) if the Calculation Agent determines that there is no appropriate alternative index, the Issuer shall, in conjunction with the Calculation Agent, determine in good faith an appropriate alternative index. If the Issuer, in conjunction with the Calculation Agent, does not decide on an appropriate alternative
65
index within a period of ten Business Days, then an "Early Termination Event" will be deemed to have occurred and the Issuer will redeem the Notes pursuant to Condition 5(j).
(iii) Rebasing of the Index: If the Calculation Agent determines that the Index has been or will be rebased at any time, the Index as so rebased (the "Rebased Index") will be used for the purposes of determining each relevant Index Level from the date of such rebasing; provided, however, that the Calculation Agent shall make such adjustments as are made by the calculation agent (or any other party performing the function of a calculation agent (whatever such party's title)) pursuant to the terms and conditions of the Related Instrument to the levels of the Rebased Index so that the Rebased Index levels reflect the same rate of inflation as the Index before it was rebased. Any such rebasing shall not affect any prior payments made.
(iv) Material Modification Prior to Interest Payment Date: If, on or prior to the day that is five Business Days before an Interest Payment Date, Eurostat announces that it will make a material change to the Index then the Calculation Agent shall make any such adjustments to the Index consistent with adjustments made to the Related Instrument.
(v)
Manifest Error in Publication: If, within thirty days of publication, the Calculation Agent determines that Eurostat
(or any successor entity which publishes such index) has corrected the level of the Index to remedy a manifest error
in its original publication, the Calculation Agent will notify the parties of (A) that correction,
(B) the amount that is payable, in respect of interest payments falling after such correction, as a result of that correction and (C) take such other action as it may deem necessary to give effect to such correction.
(j)
Redemption for Index Reasons
If an Early Termination Event as described under Condition 5(i)(ii)(E) is deemed to have occurred, the Issuer will, upon giving not more than 60 nor less than 30 days' notice to the Noteholders (or such other notice period as may be specified in the applicable Final Terms) in accordance with Condition 14, redeem all, but not some only, of the Notes at their Early Redemption Amount referred to in Condition 6(f) below together (if appropriate) with interest accrued to (but excluding) the date of redemption (in each case adjusted in accordance with Condition 5(h)).
6.
Payments
(a) Method of payment
Subject as provided below:
(i)
payments in a Specified Currency other than euro or Renminbi will be made by credit or transfer to an account in
the relevant Specified Currency (which, in the case of a payment in Japanese yen to a non-resident of Japan, shall be
a non-resident account) maintained by the payee with, or, at the option of the payee, by a cheque in such Specified
Currency drawn on, a bank in the principal financial centre of the country of such Specified Currency (which, if the
Specified Currency is Australian dollars or New Zealand dollars, shall be Sydney or Wellington, respectively);
(ii)
payments in euro will be made by credit or transfer to a euro account (or to any other account to which euro may be
credited or transferred) specified by the payee or, at the option of the payee, by a euro cheque; and
(iii) payments in Renminbi will be made by transfer to a Renminbi account maintained by or on behalf of the payee with a bank in Hong Kong.
Payments will be subject in all cases to (i) any fiscal or other laws and regulations applicable thereto in the place of payment, but without prejudice to the provisions of Condition 8, and (ii) any withholding or deduction required pursuant to an agreement described in Section 1471(b) of the U.S. Internal Revenue Code of 1986 (the "Code") or otherwise imposed pursuant to Sections 1471 through 1474 of the Code, any regulations or agreements thereunder, any official interpretations thereof, or any law implementing an intergovernmental approach thereto.
(b) Presentation of Bearer Notes and Coupons
Payments of principal in respect of Bearer Notes will be made in the manner provided in paragraph (a) above only against presentation and surrender (or, in the case of part payment of any sum due, endorsement) of Bearer Notes, and payments of interest in respect of Bearer Notes will (subject as provided below) be made as aforesaid only
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against presentation and surrender (or, in the case of part payment of any sum due, endorsement) of Coupons, in each case at the specified office of any Paying Agent outside the United States (which expression, as used herein, means the United States of America (including the States and the District of Columbia and its possessions)).
Fixed Rate Notes in bearer form (other than Fixed Rate Notes which specify Interest Payment Date Adjustment as being applicable in the applicable Final Terms or Inflation Linked Notes) should be presented for payment together with all unmatured Coupons appertaining thereto (which expression shall for this purpose include Coupons falling to be issued on exchange of matured Talons), failing which the amount of any missing unmatured Coupon (or, in the case of payment not being made in full, the same proportion of the amount of such missing unmatured Coupon as the sum so paid bears to the sum due) will be deducted from the sum due for payment. Each amount of principal so deducted will be paid in the manner mentioned above against surrender of the relative missing Coupon at any time before the expiry of 10 years after the Relevant Date (as defined in Condition 8) in respect of such principal (whether or not such Coupon would otherwise have become void under Condition 9) or, if later, five years from the date on which such Coupon would otherwise have become due, but in no event thereafter.
Upon any Fixed Rate Note in bearer form becoming due and repayable prior to its Maturity Date, all unmatured Talons (if any) appertaining thereto will become void and no further Coupons will be issued in respect thereof.
Upon the date on which any Floating Rate Note, Fixed Rate Note which specifies Interest Payment Date Adjustment as being applicable in the applicable Final Terms, CMS Linked Note or Inflation Linked Interest Note in bearer form becomes due
and repayable, unmatured Coupons and Talons (if any) relating thereto (whether or not attached) shall become void and no payment or, as the case may be, exchange for further Coupons shall be made in respect thereof.
If the due date for redemption of any definitive Bearer Note is not an Interest Payment Date, interest (if any) accrued in respect of such Note from (and including) the preceding Interest Payment Date or, as the case may be, the Interest Commencement Date shall be payable only against surrender of the relevant definitive Bearer Note.
(c)
Payments in respect of Registered Notes
(i) Payments of principal in respect of Registered Notes shall be made against presentation and surrender of the relevant Certificates at the specified office of any of the Transfer Agents or of the Registrar and in the manner provided in the sub-paragraph (ii) below.
(ii) Interest on Registered Notes shall be paid to the person shown on the Register at the close of business on the fifteenth day before the due date for payment thereof (the "Record Date"). Payments of interest on each Registered Note shall be made in the relevant currency by cheque drawn on a Bank and mailed to the holder (or to the first named of joint holders) of such Note at its address appearing in the Register on the Record Date. Upon application by the holder to the specified office of the Registrar or any Transfer Agent before the Record Date, such payment of interest may be made by transfer to an account in the relevant currency maintained by the payee with a Bank.
(iii) Payments of principal and interest in respect of Registered Notes registered in the name of, or in the name of a nominee for, The Depository Trust Company ("DTC") and denominated in a Specified Currency other than U.S. dollars will be made or procured to be made by transfer by the Registrar to an account in the relevant Specified Currency of the Exchange Agent on behalf of DTC or its nominee in accordance with the following provisions. The amounts in such Specified Currency payable by the Registrar or its agent to DTC with respect to Registered Notes held by DTC or its nominee will be received from the Issuer by the Registrar who will make payments in such Specified Currency by wire transfer of same day funds to the designated bank account in such Specified Currency of those DTC participants entitled to receive the relevant payment who have made an irrevocable election to DTC, in the case of interest payments, on or prior to the third DTC Business Day after the Record Date for the relevant payment of interest and, in the case of payments of principal, at least 12 DTC Business Days prior to the relevant payment date, to receive that payment in such Specified Currency. The Registrar, after the Exchange Agent has converted amounts in such Specified Currency into U.S. dollars, will deliver such U.S. dollar amount in same day funds to DTC for payment through its settlement system to those DTC participants entitled to receive the relevant payment who did not elect to receive such payment in such Specified Currency. The Agency Agreement sets out the manner in which such conversions are to be made. For the purposes of this Condition 6(c), "DTC Business Day" means any day on which DTC is open for business.
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(d) General provisions applicable to payments
The holder of a Global Note or a Global Certificate shall be the only person entitled to receive payments in respect of Notes represented by such Global Note or Global Certificate and the Issuer will be discharged by payment to, or to the order of, the holder of such Global Note or Global Certificate in respect of each amount so paid. Each of the persons shown in the records of Euroclear, Clearstream, Luxembourg or DTC as the beneficial holder of a particular nominal amount of Notes represented by such Global Note or Global Certificate must look solely to Euroclear, Clearstream, Luxembourg or DTC, as the case may be, for his share of each payment so made by the Issuer to, or to the order of, the holder of such Global Note or Global Certificate.
Notwithstanding the foregoing provisions of this Condition, if any amount of principal and/or interest in respect of Bearer Notes is payable in U.S. dollars, such U.S. dollar payments of principal and/or interest in respect of such Notes will be made at the specified office of a Paying Agent in the United States if:
(i) the Issuer has appointed Paying Agents with specified offices outside the United States with the reasonable expectation that such Paying Agents would be able to make payment in U.S. dollars at such specified offices outside the United States of the full amount of principal and interest on the Notes in the manner provided above when due; and
(ii) payment of the full amount of such principal and interest at all such specified offices outside the United States is illegal or effectively precluded by exchange controls or other similar restrictions on the full payment or receipt of principal and interest in U.S. dollars; and
(iii) such payment is then permitted under United States law without involving, in the opinion of the Issuer, adverse tax consequences to the Issuer.
(e)
Payment Day
If the date for payment of any amount in respect of any Note or Coupon is not a Payment Day, the holder thereof shall not be entitled to payment until the next following Payment Day in the relevant place and shall not be entitled to further interest or other payment in respect of such delay. For these purposes, "Payment Day" means any day which (subject to Condition 9) is:
(i) a day on which commercial banks and foreign exchange markets settle payments and are open for general business (including dealing in foreign exchange and foreign currency deposits) in:
(A) in the case of Notes in definitive form only, the relevant place of presentation;
(B) any Additional Financial Centre specified in the applicable Final Terms; and
(ii) either (1) in relation to any sum payable in a Specified Currency other than euro or Renminbi, a day on which commercial banks and foreign exchange markets settle payments and are open for general business (including dealing in foreign exchange and foreign currency deposits) in the principal financial centre of the country of the relevant Specified Currency (which, if the Specified Currency is Australian dollars or New Zealand dollars, shall be Sydney or Wellington, respectively), (2) in relation to any sum payable in euro, a day on which the TARGET2 System is open or (3) in relation to any sum payable in Renminbi, a day (other than a Saturday, Sunday or public holiday) on which commercial banks and foreign exchange markets in Hong Kong are generally open for business and settlement for Renminbi payments in Hong Kong.
(f)
Interpretation of principal and interest
Any reference in these Terms and Conditions to principal in respect of the Notes shall be deemed to include, as applicable:
(i) any additional amounts which may be payable with respect to principal under Condition 7 or under any undertakings given in addition thereto or in substitution therefor pursuant to the Trust Deed;
(ii) the Final Redemption Amount of the Notes;
(iii) the Early Redemption Amount of the Notes;
(iv) the Optional Redemption Amount(s) (if any) of the Notes;
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(v) in relation to Zero Coupon Notes, the Amortised Face Amount (as defined in Condition 7(f)); and
(vi) any premium and any other amounts (other than interest) which may be payable by the Issuer under or in respect of the Notes.
Any reference in these Terms and Conditions to interest in respect of the Notes shall be deemed to include, as applicable, any additional amounts which may be payable with respect to interest under Condition 8 or any undertakings given in addition thereto or in substitution therefor pursuant to the Trust Deed.
(g) Renminbi Currency Event
If Renminbi Currency Event is specified as applying in the applicable Final Terms and a Renminbi Currency Event (as defined below) occurs, the Issuer, on giving not less than five nor more than thirty days' irrevocable notice in accordance with Condition 14 to the Noteholders and the Trustee prior to any due date for payment, shall be entitled to satisfy its obligations in respect of such payment (in whole or in part) by making such payment in U.S. dollars on the basis of the Spot Rate for the relevant Determination Date as promptly notified to the Issuer, the Trustee and the Paying Agents by the Calculation Agent.
In such event, any payment of U.S. dollars will be made by transfer to a U.S. dollar denominated account maintained by the payee with, or by a U.S. dollar denominated cheque drawn on, a bank in New York City and the definition of "Payment Day" in Condition 6(e) shall mean any day on which commercial banks and foreign exchange markets settle payments and are open for general business (including dealing in foreign exchange and foreign currency deposits) in: (A) in the case of Notes in definitive form only, the relevant place of presentation; and (B) London and New York City.
In these Terms and Conditions:
"Determination Business Day" means a day (other than a Saturday or Sunday) on which commercial banks are open for general business (including dealings in foreign exchange) in Hong Kong, London and New York City;
"Determination Date" means the day which is three Determination Business Days before the due date of the relevant payment under the Notes;
"Government Authority" means any de facto or de jure government (or any agency or instrumentality thereof), court, tribunal, administrative or other governmental authority or any other entity (private or public) charged with the regulation of the financial markets (including the central bank) of Hong Kong;
"Local Time" means the time of day in the jurisdiction in which the Calculation Agent, appointed in connection with the Notes, is located;
"Renminbi Currency Event" means any one of Renminbi Illiquidity, Renminbi Non-Transferability and Renminbi Inconvertibility;
"Renminbi Dealer" means an independent foreign exchange dealer of international repute active in the Renminbi exchange market in Hong Kong reasonably selected by the Issuer;
"Renminbi Illiquidity" means the general Renminbi exchange market in Hong Kong becomes illiquid as a result of which the Issuer cannot obtain sufficient Renminbi in order to satisfy its obligation to pay interest or principal (in whole or in part) in respect of the Notes, as determined by the Issuer acting in good faith and in a commercially reasonable manner following consultation with two Renminbi Dealers;
"Renminbi Inconvertibility" means the occurrence of any event that makes it impossible for the Issuer to convert any amount due in respect of the Notes into Renminbi in the general Renminbi exchange market in Hong Kong, other than where such impossibility is due solely to the failure of the Issuer to comply with any law, rule or regulation enacted by any Governmental Authority (unless such law, rule or regulation is enacted after the Issue Date of the first Tranche of the Notes and it is impossible for the Issuer, due to an event beyond its control, to comply with such law, rule or regulation);
"Renminbi Non-Transferability" means the occurrence of any event that makes it impossible for the Issuer to transfer Renminbi between accounts inside Hong Kong or from an account inside Hong Kong to an account outside Hong
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Kong (including where the Renminbi clearing and settlement system for participating banks in Hong Kong is disrupted or suspended), other than where such impossibility is due solely to the failure of the Issuer to comply with any law, rule or regulation enacted by any Governmental Authority (unless such law, rule or regulation is enacted after the Issue Date of the first Tranche of the Notes and it is impossible for the Issuer, due to an event beyond its control, to comply with such law, rule or regulation); and
"Spot Rate" means the spot CNY/U.S. dollar exchange rate for the purchase of U.S. dollars with Renminbi in the over-thecounter Renminbi exchange market in Hong Kong for settlement in three Determination Business Days, as determined by the Calculation Agent at or around 11.00 a.m. (Local Time) on the Determination Date, on a deliverable basis by reference to Reuters Screen Page TRADCNY3, or if no such rate is available, on a non-deliverable basis by reference to Reuters Screen Page TRADNDF. If neither rate is available, the Calculation Agent shall in good faith and in a commercially reasonable manner determine the Spot Rate at or around 11:00 a.m. (Local Time) on the Determination Date as the most recently available CNY/U.S. dollar official fixing rate for settlement in two Determination Business Days reported by the State Administration of Foreign Exchange of the PRC, which is reported on the Reuters Screen Page CNY=SAEC. Reference to a page on the Reuters Screen means the display page so designated on the Reuters Monitor Money Rates Service (or any successor service) or such other page as may replace that page for the purpose of displaying a comparable currency exchange rate.
If for any reason at any relevant time the Calculation Agent defaults in its obligation to determine the Spot Rate, the Trustee shall determine (or, at the expense of the Issuer, appoint an expert to determine) the Spot Rate in such manner as, in its
absolute discretion (having such regard as it shall think fit to the foregoing provisions of this Condition), it shall deem fair and reasonable in all the circumstances and each such determination shall be deemed to have been made by the Calculation Agent.
All certificates, communications, opinions, determinations, calculations, quotations and decisions given, expressed, made or obtained for the purposes of the provisions of this Condition 6(g), whether by the Calculation Agent or the Trustee, shall (in the absence of wilful default, bad faith or manifest error) be binding on the Issuer, the Issuing and Principal Paying Agent, the other Paying Agents and all Noteholders and Couponholders and (in the absence as aforesaid) no liability to the Issuer, the Noteholders or the Couponholders shall attach to the Calculation Agent or the Trustee in connection with the exercise or non-exercise by it if its powers, duties and discretions pursuant to such provision.
7.
Redemption and Purchase
(a) Redemption at maturity
Unless previously redeemed or purchased and cancelled as specified below, each Note will be redeemed by the Issuer at its Final Redemption Amount specified in the applicable Final Terms in the relevant Specified Currency on the Maturity Date.
(b) Redemption for tax reasons
The Notes may be redeemed at the option of the Issuer in whole, but not in part, at any time (if this Note is not a Floating Rate Note, a CMS Linked Note or an Inflation Linked Interest Note) or on any Interest Payment Date (if this Note is a Floating Rate Note, a CMS Linked Note or an Inflation Linked Interest Note), on giving not less than 30 nor more than 60 days' notice to the Issuing and Principal Paying Agent and, in accordance with Condition 14, the
Noteholders (which notice shall be irrevocable), if:
(i) on the occasion of the next payment due in respect of the Notes, the Issuer would be required to pay additional amounts as provided or referred to in Condition 8 as a result of any change in, or amendment to, the laws or regulations of the
Relevant Jurisdiction (as defined in Condition 8) (or any political subdivision or taxing authority thereof or therein), or any change in the application or official interpretation of such laws or regulations, which change or amendment becomes effective on or after the date on which agreement is reached to issue the first Tranche of the Notes; and
(ii) such requirement cannot be avoided by the Issuer taking reasonable measures available to it, provided that no such notice of redemption shall be given earlier than 90 days prior to the earliest date on which the Issuer would be required to pay such additional amounts were a payment in respect of the Notes then due.
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Prior to the publication of any notice of redemption pursuant to this Condition, the Issuer shall deliver to the Trustee a certificate signed by two Directors of the Issuer stating that the requirement referred to in sub-paragraph (i) above will apply on the occasion of the next payment due in respect of the Notes and cannot be avoided by the Issuer taking reasonable measures available to it and the Trustee shall be entitled to accept the certificate as sufficient evidence of the satisfaction of the conditions precedent set out above, in which event it shall be conclusive and binding on the Noteholders and the Couponholders. Upon the expiry of any such notice as is referred to in this paragraph, the Issuer shall be bound to redeem the Notes in accordance with the provisions of this paragraph.
Notes redeemed pursuant to this Condition 7(b) will be redeemed at their Early Redemption Amount referred to in paragraph (e) below together (if appropriate) with interest accrued to (but excluding) the date of redemption.
(c)
Redemption at the option of the Issuer (Issuer Call)
If Issuer Call is specified in the applicable Final Terms, the Issuer may, having given:
(i) notice within the Issuer Call Period to the Noteholders in accordance with Condition 14; and
(ii) not less than 10 days before the giving of the notice referred to in sub-paragraph (i) above, notice to the Issuing and Principal Paying Agent and the Trustee,
(which notices shall be irrevocable and shall specify the date fixed for redemption), redeem all or some only of the Notes then outstanding on any Optional Redemption Date and at the relevant Optional Redemption Amount(s) specified in the applicable Final Terms together, if appropriate, with interest accrued to (but excluding) the relevant Optional Redemption Date. Any such redemption must be of a nominal amount equal to the Minimum Redemption Amount or a Higher Redemption Amount. The relevant Optional Redemption Amount will be either, as specified in the applicable Final Terms, (A) if Make Whole Redemption Price is specified in the applicable Final Terms as applying to one or more Optional Redemption Dates, the relevant Make Whole Redemption Price or (B) if Par Call is specified in the applicable Final Terms as applying to one or more Optional Redemption Dates, the specified amount per Calculation Amount stated in the applicable Final Terms.
The Make Whole Redemption Price will be an amount equal to the higher of:
(A) if Spens Amount is specified as being applicable in the applicable Final Terms, (x) 100 per cent. of the nominal amount outstanding of the Notes to be redeemed or (y) the nominal amount outstanding of the Notes to be redeemed multiplied by the price, as reported to the Issuer and the Trustee by the Determination Agent, at which the Gross Redemption Yield on such Notes on the Reference Date is equal to the Gross Redemption Yield (determined by reference to the middle market price) at the Quotation Time on the Reference Date of the Reference Bond, plus the Redemption Margin; or
(B) if Make Whole Redemption Amount is specified as applicable in the applicable Final Terms, (x) 100 per cent. of the nominal amount outstanding of the Notes to be redeemed and (y) the sum of the present values of the nominal amount outstanding of the Notes to be redeemed and the Remaining Term Interest on such Notes (exclusive of interest accrued to the date of redemption) and such present values shall be calculated by discounting such amounts to the date of redemption on an annual basis (assuming a 360-day year consisting of twelve 30-day months or, in the case of an incomplete month, the number of days elapsed) at the Reference Bond Rate, plus the Redemption Margin,
all as determined by the Determination Agent.
In the case of a partial redemption of Notes, the Notes to be redeemed ("Redeemed Notes") will be selected individually by lot, in the case of Redeemed Notes represented by definitive Notes, not more than 30 days prior to the date fixed for redemption (such date of selection being hereinafter called the "Selection Date"). In the case of Redeemed Notes represented by definitive Notes, a list of the serial numbers of such Redeemed Notes will be published in accordance with Condition 14 not less than 15 days prior to the date fixed for redemption.
In these Terms and Conditions:
"DA Selected Bond" means a government security or securities selected by the Determination Agent as having an actual or interpolated maturity comparable with the remaining term of the Notes, that would be utilised, at the time of
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selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities denominated in the Specified Currency and of a comparable maturity to the remaining term of the Notes;
"Determination Agent" means an investment bank or financial institution of international standing selected by the Issuer after consultation with the Trustee;
"Gross Redemption Yield" means, with respect to a security, the gross redemption yield on such security, expressed as a percentage and calculated by the Determination Agent on the basis set out by the United Kingdom Debt Management Office in the paper "Formulae for Calculating Gilt Prices from Yields", page 4, Section One: Price/Yield Formulae "Conventional Gilts"; "Double dated and Undated Gilts with Assumed (or Actual) Redemption on a Quasi-Coupon Date" (published 8 June 1998, as amended or updated from time to time) on a semi-annual compounding basis (converted to an annualised yield and rounded up (if necessary) to four decimal places) or on such other basis as the Trustee may approve;
"Quotation Time" shall be as set out in the applicable Final Terms;
"Redemption Margin" shall be as set out in the applicable Final Terms;
"Reference Bond" shall be as set out in the applicable Final Terms or the DA Selected Bond;
"Reference Bond Price" means, with respect to any date of redemption, (a) the arithmetic average of the Reference Government Bond Dealer Quotations for such date of redemption, after excluding the highest and lowest such Reference Government Bond Dealer Quotations, or (b) if the Determination Agent obtains fewer than four such Reference Government Bond Dealer Quotations, the arithmetic average of all such quotations;
"Reference Bond Rate" means, with respect to any date of redemption, the rate per annum equal to the annual or semiannual yield (as the case may be) to maturity or interpolated yield to maturity (on the relevant day count basis) of the Reference Bond, assuming a price for the Reference Bond (expressed as a percentage of its nominal amount) equal to the Reference Bond Price for such date of redemption;
"Reference Date" will be set out in the relevant notice of redemption;
"Reference Government Bond Dealer" means each of five banks selected by the Issuer, or their affiliates, which are (A) primary government securities dealers, and their respective successors, or (B) market makers in pricing corporate bond issues;
"Reference Government Bond Dealer Quotations" means, with respect to each Reference Government Bond Dealer and any date of redemption, the arithmetic average, as determined by the Determination Agent, of the bid and offered prices for the Reference Bond (expressed in each case as a percentage of its nominal amount) at the Quotation Time on the Reference Date quoted in writing to the Determination Agent by such Reference Government Bond Dealer; and
"Remaining Term Interest" means, with respect to any Note, the aggregate amount of scheduled payment(s) of interest on such Note for the remaining term of such Note determined on the basis of the rate of interest applicable to such Note from and including the date on which such Note is to be redeemed by the Issuer pursuant to this Condition 7(c).
(d) Redemption following a Change of Control
If Change of Control Put Option is specified in the applicable Final Terms and, at any time while any of the Notes remain outstanding, a Change of Control Put Event (as defined below) occurs, then the holder of each such Note will have the option (a "Change of Control Put Option") (unless prior to the giving of the relevant Change of Control Put Event Notice (as defined below) the Issuer has given notice of redemption under Conditions 7(b) or 7(c) above) to require the Issuer to redeem or, at the Issuer's option, purchase (or procure the purchase of) that Note on the date which is seven days after the expiration of the Put Period (as defined below) (such date or such other date as may be specified in the applicable Final Terms, the "Put Date") at the Optional Redemption Amount specified in the applicable Final Terms together with (or, where purchased, together with an amount equal to) interest (if any) accrued to (but excluding) the Put Date.
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A "Change of Control Put Event" will be deemed to occur if:
(i) any person or any persons acting in concert (as defined in the United Kingdom's City Code on Takeovers and Mergers), other than a holding company (as defined in Section 1159 of the Companies Act 2006 as amended) whose shareholders are or are to be substantially similar to the pre-existing shareholders of the Issuer, shall become interested (within the meaning of Part 22 of the Companies Act 2006 as amended) in (A) more than 50 per cent. of the issued or allotted ordinary share capital of the Issuer or (B) shares in the capital of the Issuer carrying more than 50 per cent. of the voting rights normally exercisable at a general meeting of the Issuer (each such event, a "Change of Control"); provided that, no Change of Control shall be deemed to occur if the event which would otherwise have constituted a Change of Control occurs or is carried out for the purposes of a reorganisation on terms previously approved by the Trustee in writing or by an Extraordinary Resolution; and
(ii) the long-term debt of the Issuer has been assigned:
(A) an investment grade credit rating (Baa3/BBB-, or their respective equivalents, or better) (an "Investment Grade Rating"), by any Rating Agency at the invitation of the Issuer; or
(B) where there is no rating from any Rating Agency assigned at the invitation of the Issuer, an Investment Grade Rating by any Rating Agency of its own volition,
and;
(x) such rating is, within the Change of Control Period, either downgraded to a non-investment grade credit rating (Ba1/BB+, or their respective equivalents, or worse) (a "Non-Investment Grade Rating") or withdrawn and is not, within the Change of Control Period, subsequently (in the case of a downgrade) upgraded or (in the case of a withdrawal) reinstated to an Investment Grade Rating by such Rating Agency;
(y) and there remains no other Investment Grade Rating of the long-term debt of the Issuer from any other Rating Agency; and
(iii) in making any decision to downgrade or withdraw an Investment Grade Rating pursuant to paragraph (ii) above, the relevant Rating Agency announces publicly or confirms in writing to the Issuer or the Trustee that such decision(s) resulted, in whole or in part, from the occurrence of the relevant Change of Control.
Further, if at the time of the occurrence of the relevant Change of Control the long-term debt of the Issuer is not assigned an Investment Grade Rating by any Rating Agency, a Change of Control Put Event will be deemed to occur upon the occurrence of a Change of Control alone.
Promptly upon the Issuer becoming aware that a Change of Control Put Event has occurred the Issuer shall, and at any time upon the Trustee becoming similarly so aware the Trustee may, and if so requested by the holders of at least one-quarter in nominal amount of the Notes then outstanding or if so directed by an Extraordinary Resolution of the Noteholders, shall (subject in each case to the Trustee being indemnified and/or secured and/or prefunded to its satisfaction) give notice (a "Change of Control Put Event Notice") to the Noteholders in accordance with Condition 14 specifying the nature of the Change of Control Put Event and the procedure for exercising the Change of Control Put Option.
To exercise the Change of Control Put Option, the holder of the Note must (in the case of Bearer Notes) deposit such Note with any Paying Agent or (in the case of Registered Notes) deposit the Certificate representing such Note(s) with the Registrar or any Transfer Agent at its specified office, in each case at any time during normal business hours of such Paying Agent, Registrar or Transfer Agent, as the case may be, falling within the period (the "Put Period") of 30 days after a Change of Control Put Event Notice is given or such other date as may be specified in the applicable Final Terms, accompanied by a duly signed and completed notice of exercise in the form (for the time being current) obtainable from the specified office of any Paying Agent, Registrar or Transfer Agent, as the case may be (a "Change of Control Put Notice"). No Note or Certificate so deposited and option so exercised may be withdrawn (except as provided in the Agency Agreement) without the prior consent of the Issuer. The Issuer shall redeem or purchase (or procure the purchase of) the relevant Notes on the Put Date unless previously redeemed (or purchased) and cancelled.
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If 80 per cent. or more in nominal amount of the Notes then outstanding have been redeemed or purchased pursuant to this Condition 7(d), the Issuer may, on giving not less than 30 nor more than 60 days' notice to the Noteholders (such notice being given within 30 days after the Put Date), redeem or purchase (or procure the purchase of), at its option, all but not some only of the remaining outstanding Notes at their Optional Redemption Amount, together with interest (if any) accrued to (but excluding) the date fixed for such redemption or purchase.
If the rating designations employed by either Moody's or S&P are changed from those which are described in paragraph (ii) of the definition of "Change of Control Put Event" above, or if a rating is procured from a Substitute Rating Agency, the Issuer shall determine, with the agreement of the Trustee, the rating designations of Moody's or S&P or such Substitute Rating Agency (as appropriate) as are most equivalent to the prior rating designations of Moody's or S&P and this Condition 7(d) shall be construed accordingly.
The Trustee is under no obligation to ascertain whether a Change of Control Put Event or Change of Control or any event which could lead to the occurrence of or could constitute a Change of Control Put Event or Change of Control has occurred, and, until it shall have actual knowledge or notice pursuant to the Trust Deed to the contrary, the Trustee may assume that no Change of Control Put Event or Change of Control or other such event has occurred.
In these Terms and Conditions:
"Change of Control Period" means the period commencing upon a Change of Control and ending 90 days after the
Change of Control (or such longer period for which the Notes are under consideration (such consideration having been announced publicly within the period ending 90 days after the Change of Control) for rating review, such period not to exceed 60 days after the public announcement of such consideration); and
"Rating Agency" means Moody's Investors Service España S.A. ("Moody's") or S&P Global Ratings Europe Limited ("S&P") or any of their respective affiliates or successors or any rating agency (a "Substitute Rating Agency") substituted for any of them by the Issuer from time to time with the prior written approval of the Trustee.
(e)
Redemption at the option of the Noteholders (Investor Put)
If Investor Put is specified in the applicable Final Terms, upon the holder of any Note giving to the Issuer in accordance with Condition 14 notice within the Investor Put Period the Issuer will, upon the expiry of such notice, redeem, subject to, and in
accordance with, the terms specified in the applicable Final Terms, in whole (but not in part), such Note on the Optional Redemption Date and at the Optional Redemption Amount together, if appropriate, with interest accrued to (but excluding) the Optional Redemption Date.
To exercise this option the holder must deposit (in the case of Bearer Notes) such Note (together with all unmatured Coupons) with any Paying Agent or (in the case of Registered Notes) the Certificate representing such Note(s) with the Registrar or any Transfer Agent at its specified office, accompanied by a duly completed and signed notice of exercise (a "Put Notice" in the form (for the time being current) obtainable from any specified office of any Paying
Agent, the Registrar or any Transfer Agent (as applicable) within the notice period and in which the holder must specify a bank account (or, if payment is required to be made by cheque, an address) to which payment is to be made under this Condition.
(f)
Early Redemption Amounts
For the purpose of paragraph (b) above and Condition 10, each Note will be redeemed at the Early Redemption Amount calculated as follows:
(i) in the case of a Note (other than a Zero Coupon Note), at the amount specified in the applicable Final Terms or, if no such amount or manner is so specified in the applicable Final Terms, at its nominal amount; or
(ii) in the case of a Zero Coupon Note, at an amount (the "Amortised Face Amount") calculated in accordance with the following formula:
where: "RP" means the Reference Price;
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"AY" means the Accrual Yield expressed as a decimal; and
"y" is the Day Count Fraction specified in the applicable Final Terms which will be either (i) 30/360 (in which case the numerator will be equal to the number of days (calculated on the basis of a 360-day year consisting of 12 months of 30 days each) from (and including) the Issue Date of the first Tranche of the Notes to (but excluding) the date fixed for redemption or (as the case may be) the date upon which such Note becomes due and repayable and the denominator will be 360) or (ii) Actual/360 (in which case the numerator will be equal to the actual number of days from (and including) the Issue Date of the first Tranche of the Notes to (but excluding) the date fixed for redemption or (as the case may be) the date upon which such Note becomes due and repayable and the denominator will be 360) or (iii) Actual/365 (in which case the numerator will be equal to the actual number of days from (and including) the Issue Date of the first Tranche of the Notes to (but excluding) the date fixed for redemption or (as the case may be) the date upon which such Note becomes due and repayable and the denominator will be 365).
(g) Purchases
The Issuer or any Subsidiary (as defined in the Trust Deed) of the Issuer may at any time purchase Notes (provided that, in the case of Bearer Notes, all unmatured Coupons and Talons appertaining thereto are purchased therewith) at any price in the open market or otherwise.
The Issuer will purchase (or procure the purchase of) any Retained Notes on the Issue Date.
(h) Cancellation
All Notes (other than Retained Notes) which are (a) redeemed or (b) purchased by or on behalf of the Issuer will forthwith be cancelled (together with all Certificates or unmatured Coupons and Talons attached thereto or surrendered therewith at the
time of redemption) and accordingly may not be reissued or resold. Any Notes which are purchased by or on behalf of any of the Issuer's Subsidiaries may, at the option of the purchaser, be held or resold or surrendered to a Paying Agent for cancellation.
The Issuer may cancel (or procure the cancellation of) any Retained Notes held by it or on its behalf at any time.
(i)
Late payment on Zero Coupon Notes
If the amount payable in respect of any Zero Coupon Note upon redemption of such Zero Coupon Note pursuant to paragraph (a), (b), (c), (d) or (e) above or upon its becoming due and repayable as provided in Condition 10 is improperly withheld or refused, the amount due and repayable in respect of such Zero Coupon Note shall be the amount calculated as provided in
paragraph f(ii) above as though the references therein to the date fixed for the redemption or the date upon which such Zero Coupon Note becomes due and payable were replaced by references to the date which is the earlier of:
(i)
the date on which all amounts due in respect of such Zero Coupon Note have been paid; and
(ii)
five days after the date on which the full amount of the moneys payable in respect of such Zero Coupon Notes has been
received by the Issuing and Principal Paying Agent or the Trustee and notice to that effect has been given to the Noteholders
in accordance with Condition 14.
8.
Taxation
All payments in respect of the Notes and Coupons by the Issuer will be made without withholding or deduction for any present or future taxes, assessments or other governmental charges ("Taxes") of the Issuer's jurisdiction of incorporation (the "Relevant Jurisdiction") (or any political subdivision or taxing authority thereof or therein), unless the withholding or deduction of the Taxes is required by law. In that event, the Issuer will pay such additional amounts as may be necessary in order that the net amount paid to each holder of any Note or Coupon who, with respect to any such Tax is not resident in the Relevant Jurisdiction, after such withholding or deduction shall be not less than the respective amount to which such holder would have been entitled in respect of such Note or Coupon, as the case may be, in the absence of the withholding or deduction; provided however that the Issuer shall not be required to pay any additional amounts (i) for or on account of any such Tax imposed by the United States (or any political subdivision or taxing authority thereof or therein) or (ii) for or on account of:
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(a)
any Tax which would not have been imposed but for (i) the existence of any present or former connection between a
holder (or between a fiduciary, settlor, beneficiary, member or shareholder of, or possessor of a power over, such
holder, if such holder is an estate, trust, partnership or corporation) and the Relevant Jurisdiction or any political
subdivision or territory or possession thereof or area subject to its jurisdiction, including, without limitation, such
holder (or such fiduciary, settlor, beneficiary, member, shareholder or possessor) being or having been a citizen or
resident thereof or being or having been present or engaged in trade or business therein or having or having had a
permanent establishment therein or (ii) the presentation of such Note or Coupon (x) for payment on a date more than
30 days after the Relevant Date (as defined below) or (y) in the Relevant Jurisdiction;
(b)
any estate, inheritance, gift, sale, transfer, personal property or similar tax, assessment or other governmental
charge;
(c)
any Tax which is payable otherwise than by withholding or deduction from payments of (or in respect of) principal
of, or any interest on, such Note or Coupon;
(d)
any Tax that is imposed or withheld by reason of the failure by the holder or any beneficial owner of such Note or
Coupon to comply with a request of the Issuer given to the holder in accordance with Condition 14 (i) to provide
information concerning the nationality, residence or identity of the holder or any beneficial owner or (ii) to make
any declaration or other similar claim or satisfy any information or reporting requirements, which, in the case of
(i) or (ii), is required or imposed by a statute, treaty, regulation or administrative practice of the Relevant
Jurisdiction as a precondition to exemption from all or part of such Tax; or
(e)
any combination of items (a), (b), (c) and (d) above,
nor shall the Issuer be required to pay any additional amounts with respect to any payment of the principal of, or any interest on, any Note or Coupon to any holder who is a fiduciary or partnership or other than the sole beneficial owner of such payment to the extent such payment would be required by the laws of the Relevant Jurisdiction (or any political subdivision or taxing authority thereof or therein) to be included in the income for tax purposes of a beneficiary or settlor with respect to such fiduciary or a member of such partnership or a beneficial owner which would not have been entitled to such additional amounts had it been the holder of such Note or Coupon.
Notwithstanding any other provision of the Terms and Conditions, any amounts to be paid on the Notes by or on behalf of the Issuer, will be paid net of any deduction or withholding imposed or required pursuant to an agreement described in Section 1471(b) of the U.S. Internal Revenue Code of 1986, as amended (the "Code"), or otherwise imposed pursuant to Sections 1471 through 1474 of the Code (or any regulations thereunder or official interpretations thereof) or an intergovernmental agreement between the United States and another jurisdiction facilitating the implementation thereof (or any fiscal or regulatory legislation, rules or practices implementing such an intergovernmental agreement) (and any such withholding or deduction, a "FATCA Withholding"). Neither the Issuer nor any other person will be required to pay any additional amounts in respect of FATCA Withholding.
As used herein:
"Relevant Date" means the date on which such payment first becomes due, except that, if the full amount of the moneys payable has not been duly received by the Issuing and Principal Paying Agent or the Trustee on or prior to such due date, it means the date on which, the full amount of such moneys having been so received, notice to that effect is duly given to the Noteholders in accordance with Condition 14; and
"United States" means the United States of America (including the States and the District of Columbia) and its possessions (including Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island and the Northern Mariana Islands).
9.
Prescription
The Notes and Coupons will become void unless a claim for payment is made within a period of 10 years (in the case of principal) and five years (in the case of interest) after the Relevant Date (as defined in Condition 8) therefor (subject to the provisions of Condition 6(b)).
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There shall not be included in any Coupon sheet issued on exchange of a Talon any Coupon the claim for payment in respect of which would be void pursuant to this Condition or Condition 6(b) or any Talon which would be void pursuant to Condition 6(b).
10.
Events of Default and Enforcement
(A) Events of Default
The Trustee at its discretion may, and if so requested in writing by the holders of at least one-quarter in nominal amount of the Notes (excluding Retained Notes) then outstanding or if so directed by an Extraordinary Resolution of the Noteholders shall (subject in each case to being indemnified and/or secured and/or prefunded to its satisfaction), give notice to the Issuer that the Notes are, and they shall accordingly forthwith become, immediately due and repayable at their Early Redemption Amount as referred to in Condition 7(f) together (if applicable) with accrued interest as provided in the Trust Deed, in any of the following events ("Events of Default"):
(a)
if default is made in the payment of any principal or any interest due in respect of the Notes or any of them and the
default continues for a period of 14 days in the case of a payment of principal or 21 days in the case of a payment of
interest; or
(b)
if the Issuer fails to perform or observe any of its other obligations under these Terms and Conditions or the Trust
Deed and (except in any case where the Trustee considers the failure to be incapable of remedy when no such
continuation or notice as is hereinafter mentioned will be required) the failure continues for the period of 30 days (or
such longer period as the Trustee may permit) next following the service by the Trustee on the Issuer of notice
requiring the same to be remedied; or
(c)
if any Indebtedness for Borrowed Money of the Issuer becomes due and repayable prematurely by reason of an
event of default (however described) or the Issuer fails to make any payment in respect of any Indebtedness for
Borrowed Money on the due date for payment (as extended by any originally applicable grace period) or any
security given by the Issuer for any Indebtedness for Borrowed Money becomes enforceable by reason of default in
relation thereto and steps are taken to enforce such security or if default is made by the Issuer in making any
payment due under any guarantee and/or indemnity (at the expiry of any originally applicable grace period) given by
it in relation to any Indebtedness for Borrowed Money of any other person, provided that no event shall constitute an
Event of Default unless the Indebtedness for Borrowed Money or other relative liability either alone or when
aggregated with other Indebtedness for Borrowed Money and/or other liabilities relative to all (if any) other events
which shall have occurred equals or exceeds £150,000,000 (or its equivalent in any other currency); or
(d)
if any order is made by any competent court or resolution passed for the winding up or dissolution of the Issuer,
save for the purposes of a reorganisation on terms approved in writing by the Trustee; or
(e)
if the Issuer stops payment of, or is unable to, or admits inability to, pay, its debts (or any class of its debts) as they
fall due, or is deemed unable to pay its debts (within the meaning of section 123(1)(e) or (2) of the Insolvency Act
1986), or is adjudicated or found bankrupt or insolvent or shall enter into any composition or other similar
arrangements with its creditors under section 1 of the Insolvency Act 1986; or
(f)
if (i) an administrative or other receiver, manager, administrator or other similar official is appointed in relation to
the Issuer or, as the case may be, in relation to the whole or a substantial part of the undertaking or assets of it, or an
encumbrancer takes possession of the whole or a substantial part of the undertaking or assets of it, or a distress,
execution, attachment, sequestration or other process is levied, enforced upon, sued out or put in force against the
whole or a substantial part of the undertaking or assets of it and (ii) in any case (other than the appointment of an
administrator) is not discharged, removed or paid within 45 days;
PROVIDED, in the case of any Event of Default other than those described in paragraphs (a) and (d) above, the Trustee shall have certified in writing to the Issuer that the Event of Default is, in its opinion, materially prejudicial to the interests of the Noteholders.
For the purposes of this Condition, "Indebtedness for Borrowed Money" means any present or future indebtedness (whether being principal, premium, interest or other amounts) for or in respect of (i) money borrowed, (ii) liabilities
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under or in respect of any acceptance or acceptance credit or (iii) any bonds, notes, debentures, debenture stock or loan stock.
(B) Enforcement
The Trustee may at any time, at its discretion and without notice, take such proceedings against the Issuer as it may think fit to enforce the provisions of the Trust Deed, the Notes and the Coupons, but it shall not be bound to take any such proceedings or any other action in relation to the Trust Deed, the Notes or the Coupons unless (i) it shall have been so directed by an Extraordinary Resolution of the relevant Noteholders or so requested in writing by the holders of at least onequarter in nominal amount of the relevant Notes then outstanding (excluding any Retained Notes), and (ii) it shall have been indemnified and/or secured and/or pre-funded to its satisfaction.
Save as otherwise provided herein, no Noteholder or Couponholder shall be entitled to proceed directly against the Issuer unless the Trustee, having become bound so to proceed, fails or is unable so to do within 60 days and the failure or inability shall be continuing.
11. Replacement of Notes, Certificates, Coupons and Talons
Should any Note, Certificate, Coupon or Talon be lost, stolen, mutilated, defaced or destroyed, it may be replaced at the specified office of the Issuing and Principal Paying Agent (in the case of Bearer Notes, Coupons or Talons) and of the Registrar (in the case of Certificates) upon payment by the claimant of such costs and expenses as may be incurred in connection therewith and on such terms as to evidence and indemnity as the Issuer may reasonably require. Mutilated or defaced Notes, Certificates, Coupons or Talons must be surrendered before replacements will be issued.
12. Agents
The names of the initial Issuing and Principal Paying Agent, the other Paying Agents, the Registrar and the Transfer Agents and their initial specified offices are set out below.
The Issuer is entitled, with the prior written approval of the Trustee, to vary or terminate the appointment of the Issuing and Principal Paying Agent, any other Paying Agent, the Registrar or any Transfer Agent and/or appoint additional or other Paying Agents or Transfer Agents or another Registrar and/or approve any change in the specified office through which any such agent acts, provided that:
(i) there will at all times be an Issuing and Principal Paying Agent;
(ii) there will at all times be a Registrar and a Transfer Agent in relation to Registered Notes;
(iii) so long as the Notes are listed on any stock exchange, there will at all times be a Paying Agent with a specified office in such place as may be required by the rules and regulations of the relevant stock exchange or other relevant authority; and
(iv) there will at all times be a Paying Agent with a specified office in a city approved by the Trustee outside the Relevant Jurisdiction.
In addition, the Issuer shall forthwith appoint a Paying Agent having a specified office in New York City in the circumstances described in Condition 6(d).
Any variation, termination, appointment or change shall only take effect (other than in the case of insolvency, when it shall be of immediate effect) after not less than 30 nor more than 60 days' prior notice thereof shall have been given to the Noteholders in accordance with Condition 14.
In acting under the Agency Agreement, the Issuing and Principal Paying Agent, the Paying Agents, the Registrar and the Transfer Agents act solely as agents of the Issuer and, in certain limited circumstances, of the Trustee and do not assume any obligation to, or relationship of agency or trust with, any Noteholders or Couponholders. The Agency Agreement contains provisions permitting any entity into which any Paying Agent or Registrar or Transfer Agent is merged or converted or with which it is consolidated or to which it transfers all or substantially all of its assets to become the successor paying agent, registrar or transfer agent, as the case may be.
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13. Exchange of Talons
On and after the Interest Payment Date on which the final Coupon comprised in any Coupon sheet matures, the Talon (if any) forming part of such Coupon sheet may be surrendered at the specified office of the Issuing and Principal Paying Agent or any other Paying Agent in exchange for a further Coupon sheet including (if such further Coupon sheet does not include Coupons to (and including) the final date for the payment of interest due in respect of the Note to which it appertains) a further Talon, subject to the provisions of Condition 9.
14. Notices
Notices to the holders of Registered Notes shall be mailed to them at their respective addresses in the Register and deemed to have been given on the fourth weekday (being a day other than a Saturday or Sunday) after the date of mailing.
Notices to the holders of Bearer Notes will be deemed to be validly given if published in a leading English language daily newspaper of general circulation in the United Kingdom. It is expected that such publication will be made in the Financial Times. The Issuer shall also ensure that notices are duly published in a manner which complies with the rules and regulations of any stock exchange or any other relevant authority on which the Notes are for the time being listed. Any such notice will be deemed to have been given on the date of the first publication.
Notices to be given by any Noteholder shall be in writing and given by lodging the same, together (in the case of any Note in definitive form) with the relative Note or Notes, with the Issuing and Principal Paying Agent (in the case of Bearer Notes) or the Registrar (in the case of Registered Notes). Couponholders shall be deemed for all purposes to have notice of the contents of any notice given to the holders of Bearer Notes in accordance with this Condition.
15. Meeting of Noteholders, Modification, Authorisation, Waiver, Determination and Substitution
(a) Meetings
The Trust Deed contains provisions for convening meetings of the Noteholders to consider any matter affecting their interests, including the sanctioning by Extraordinary Resolution of a modification of any of the provisions of these Terms and Conditions, the Notes, the Coupons or the Trust Deed. Such a meeting may be convened by the Issuer or by Noteholders holding not less than 10 per cent. in nominal amount of the Notes for the time being outstanding. The quorum at any such meeting for passing an Extraordinary Resolution will be one or more persons holding or representing a clear majority in nominal amount of the Notes for the time being outstanding, or at any adjourned meeting one or more persons being or representing Noteholders whatever the nominal amount of the Notes so held or represented. An Extraordinary Resolution passed at any meeting of the Noteholders shall be binding on all the Noteholders, whether or not they are present at the meeting, and on all and Couponholders.
(b) Modification, Authorisation, Waiver, Determination, Substitution etc.
The Trustee may agree, without the consent of the Noteholders or the Couponholders, to any modification of, or to the waiver or authorisation of any breach or proposed breach of, any of these Terms and Conditions or any of the provisions of the Trust Deed or determine, without any such consent as aforesaid, that any Event of Default or Potential Event of Default (as defined in the Trust Deed) shall not be treated as such, which in any such case is not, in the opinion of the Trustee, materially prejudicial to the interests of the Noteholders or may agree, without any such consent as aforesaid, to any modification which is of a formal, minor or technical nature or to correct a manifest error. In addition, the Trustee shall be obliged to concur with the Issuer in using its reasonable endeavours to effect any Benchmark Amendments in the circumstances and as otherwise set out in Condition 4(b)(ii)(D) without the consent of the Noteholders or the Couponholders.
In connection with the exercise by it of any of its trusts, powers, authorities and discretions (including, without limitation, any modification, waiver, authorisation, determination or substitution), the Trustee shall have regard to the general interests of the Noteholders as a class but shall not have regard to any interests arising from circumstances particular to individual Noteholders or Couponholders (whatever their number) and, in particular but without limitation, shall not have regard to the consequences of any such exercise for individual Noteholders or Couponholders (whatever their number) resulting from their being for any purpose domiciled or resident in, or otherwise connected with, or subject to the jurisdiction of, any particular territory or any political sub-division thereof and the Trustee shall not be entitled to require, nor shall any Noteholder or Couponholder be entitled to claim, from the Issuer, the Trustee or any other person any indemnification or payment in respect of any tax consequence of any such exercise upon
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individual Noteholders or Couponholders except to the extent already provided for in Condition 8 and/or any undertaking given in addition to, or in substitution for, Condition 8 pursuant to the Trust Deed.
The Trustee may, without the consent of the Noteholders or Couponholders, agree with the Issuer to the substitution in place of the Issuer (or of any previous substitute under this Condition) as principal debtor in respect of the Notes and the Coupons and under the Trust Deed of either (i) a Successor in Business (as defined in the Trust Deed) to the Issuer or (ii) a Holding Company of the Issuer or (iii) a Subsidiary of the Issuer, in each case subject to the Trustee being satisfied that the interests of the Noteholders will not be materially prejudiced thereby provided that in determining such material prejudice the Trustee shall not take into account any prejudice to the interests of the Noteholders as a result of such substituted company not being required pursuant to proviso (i) to Condition 8 to pay any additional amounts for or on account of any Taxes imposed by the United States of America or any political subdivision or taxing authority thereof or therein and certain other conditions set out in the Trust Deed being complied with.
The Trust Deed contains provisions permitting the Issuer to consolidate with or merge into any other person or convey, transfer or lease its properties and assets substantially as an entirety to any person provided that (i) in the case of a consolidation or merger (except where the Issuer is the continuing entity) such person agrees to be bound by the terms of the Notes, the Coupons and the Trust Deed as principal debtor in place of the Issuer; (ii) in the case of a conveyance, transfer or lease, such person guarantees the obligations of the Issuer under the Notes, the Coupons and the Trust Deed and (iii) certain other conditions set out in the Trust Deed are complied with.
Any such modification, waiver, authorisation, determination or substitution shall be binding on the Noteholders and the Couponholders and, unless the Trustee otherwise agrees, any such modification or substitution shall be notified to the Noteholders in accordance with Condition 14 as soon as practicable thereafter.
For the purposes of this Condition "Holding Company" means, in relation to a person, an entity of which that person is a Subsidiary.
16. Further Issues
The Issuer shall be at liberty from time to time without the consent of the Noteholders or the Couponholders to create and issue further notes having terms and conditions the same as the Notes or the same in all respects save for the amount and date of the first payment of interest thereon and so that the same shall be consolidated and form a single Series with the outstanding Notes. The Trust Deed contains provisions for convening a single meeting of the Noteholders and the holders of notes of other Series in certain circumstances where the Trustee so decides.
17. Indemnification of the Trustee and its Contracting with the Issuer
The Trust Deed contains provisions for the indemnification of the Trustee and for its relief from responsibility, including provisions relieving it from taking action unless indemnified to its satisfaction.
The Trust Deed also contains provisions pursuant to which the Trustee is entitled, inter alia, (i) to enter into business transactions with the Issuer and/or any of its Subsidiaries and to act as trustee for the holders of any other securities issued or guaranteed by, or relating to, the Issuer and/or any of its Subsidiaries, (ii) to exercise and enforce its rights, comply with its obligations and perform its duties under or in relation to any such transactions or, as the case may be, any such trusteeship without regard to the interests of, or consequences for, the Noteholders or Couponholders, and
(iii) to retain and not be liable to account for any profit made or any other amount or benefit received thereby or in connection therewith.
18. Third Party Rights
No rights are conferred on any person under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of the Notes, but this does not affect any right or remedy of any person which exists or is available apart from that Act.
19. Governing Law
The Trust Deed, the Notes and the Coupons, and any non-contractual obligations arising out of or in connection with any of them, are governed by and shall be construed in accordance with, English law. The Agency Agreement is governed by and shall be construed in accordance with English law.
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Credit Suisse AG Uetlibergstrasse 231
8070 Zurich
AGENT HSBC Bank plc 8 Canada Square London E14 5HQ
OTHER PAYING AGENTS
Banque Internationale à Luxembourg, société anonyme 69 route d'Esch
L-2953 Luxembourg
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SCHEDULE 2
FORMS OF GLOBAL AND DEFINITIVE NOTES, CERTIFICATES, COUPONS AND TALONS
PART 1
FORM OF TEMPORARY GLOBAL NOTE
VODAFONE GROUP PLC (the Issuer)
(incorporated with limited liability in England and Wales)
TEMPORARY GLOBAL NOTE
This Note is a Temporary Global Note in respect of a duly authorised issue of Notes of the Issuer (the Notes) of the Nominal Amount, Specified Currency(ies) and Specified Denomination(s) as are specified in the Final Terms or Pricing Supplement, as the case may be, applicable to the Notes (the Final Terms), a copy of which is annexed hereto. References herein to the Conditions shall be to the Terms and Conditions of the Notes as set out in Schedule 1 to the Trust Deed (as defined below) as completed and/or (in the case of Exempt Notes) modified and/or replaced by the Final Terms but, in the event of any conflict between the provisions of the Conditions and the information in the Final Terms, the Final Terms will prevail. Words and expressions defined in the Conditions shall bear the same meanings when used in this Global Note. This Global Note is issued subject to, and with the benefit of, the Conditions and a Trust Deed (such Trust Deed as modified and/or supplemented and/or restated from time to time, the Trust Deed) dated 16 July 1999 and made between the Issuer (under its then name of Vodafone AirTouch Plc) and The Law Debenture Trust Corporation p.l.c. as trustee for the holders of the Notes.
The Issuer, subject as hereinafter provided and subject to and in accordance with the Conditions and the Trust Deed, promises to pay to the bearer hereof on the Maturity Date and/or on such earlier date(s) as all or any of the Notes represented by this Global Note may become due and repayable in accordance with the Conditions and the Trust Deed, the amount payable under the Conditions in respect of such Notes on each such date and to pay interest (if any) on the nominal amount of the Notes from time to time represented by this Global Note calculated and payable as provided in the Conditions and the Trust Deed together with any other sums payable under the Conditions and the Trust Deed, upon presentation and, at maturity, surrender of this Global Note to or to the order of the Issuing and Principal Paying Agent or any of the other Paying Agents located outside the United States, its territories and possessions (except as provided in the Conditions) from time to time appointed by the Issuer in respect of the Notes.
If the Final Terms indicates that this Global Note is intended to be a New Global Note, the nominal amount of Notes represented by this Global Note shall be the aggregate amount from time to time entered in the records of both Euroclear Bank SA/NV (Euroclear) and Clearstream Banking S.A. (Clearstream, Luxembourg and together with Euroclear, the relevant Clearing Systems). The records of the relevant Clearing Systems (which expression in this Global Note means the records that each relevant Clearing System holds for its customers which reflect the amount of such customer's interest in the Notes) shall be conclusive evidence of the nominal amount of Notes represented by this Global Note and, for these purposes, a statement issued by a relevant Clearing System (which statement shall be made available to the bearer upon request) stating the nominal amount of Notes represented by this Global Note at any time shall be conclusive evidence of the records of the relevant Clearing System at that time.
If the Final Terms indicates that this Global Note is not intended to be a New Global Note, the nominal amount of the Notes represented by this Global Note shall be the amount stated in the applicable Final Terms or, if lower, the nominal amount most recently entered by or on behalf of the Issuer in the relevant column in Part II, or III of Schedule One hereto or in Schedule Two hereto.
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On any redemption of, or payment of interest being made in respect of, or purchase and cancellation of, any of the Notes represented by this Global Note the Issuer shall procure that:
(a)
if the Final Terms indicates that this Global Note is intended to be a New Global Note, details of such redemption, payment
or purchase and cancellation (as the case may be) shall be entered pro rata in the records of the relevant Clearing Systems,
and, upon any such entry being made, the nominal amount of the Notes recorded in the records of the relevant Clearing
Systems and represented by this Global Note shall be reduced by the aggregate nominal amount of the Notes so redeemed or
purchased and cancelled; or
(b) if the Final Terms indicates that this Global Note is not intended to be a New Global Note, details of such redemption, payment or purchase and cancellation (as the case may be) shall be entered by or on behalf of the Issuer in Schedule One hereto and the relevant space in Schedule One hereto recording any such redemption, payment or purchase and cancellation (as the case may be) shall be signed by or on behalf of the Issuer. Upon any such redemption or purchase and cancellation, the nominal amount of this Global Note and the Notes represented by this Global Note shall be reduced by the nominal amount of such Notes so redeemed or purchased and cancelled.
Payments due in respect of Notes for the time being represented by this Global Note shall be made to the bearer of this Global Note and each payment so made will discharge the Issuer's obligations in respect thereof. Any failure to make entries referred to above shall not affect such discharge.
Payments of principal and interest (if any) due prior to the Exchange Date (as defined below) will only be made to the bearer hereof to the extent that there is presented to the Agent by Clearstream, Luxembourg or Euroclear a certificate to the effect that it has received from or in respect of a person entitled to a beneficial interest in a particular nominal amount of the Notes represented by this Global Note (as shown by its records) a certificate of non-US beneficial ownership in the form required by it. The bearer of this Global Note will not (unless upon due presentation of this Global Note for exchange, delivery of the appropriate number of Definitive Bearer Notes (together, if applicable, with the Coupons and Talons appertaining thereto in or substantially in the forms set out in Parts 5, 6 and 7 of Schedule 2 to the Trust Deed) or, as the case may be, issue and delivery (or, as the case may be, endorsement) of the Permanent Global Note is improperly withheld or refused and such withholding or refusal is continuing at the relevant payment date) be entitled to receive any payment hereon due on or after the Exchange Date.
If this Temporary Global Note is an Exchangeable Bearer Note then, subject to Condition 2(f), this Temporary Global Note may be exchanged in whole or from time to time in part for one or more Registered Notes in accordance with the Conditions on or after the Issue Date but before its Exchange Date referred to below by its presentation to any Transfer Agent at its specified office. On or after the Exchange Date, the outstanding nominal amount of this Temporary Global Note may be exchanged for Definitive Bearer Notes and Registered Notes in accordance with the next paragraph.
On or after the date (the Exchange Date) which is the 40th day after the Issue Date, this Global Note may be exchanged (free of charge) in whole or in part for, as specified in the Final Terms, either (a) Definitive Bearer Notes and (if applicable) Coupons and/or Talons (on the basis that all the appropriate details have been included on the face of such Definitive Bearer Notes and (if applicable) Coupons and/or Talons and the relevant information completing the Conditions appearing in the Final Terms has been endorsed on or attached to such Definitive Bearer Notes) or (b) either (if the Final Terms indicates that this Global Note is intended to be a New Global Note) interests recorded in the records of the relevant Clearing Systems in a Permanent Global Note or (if the Final Terms indicates that this Global Note is not intended to be a New Global Note) a Permanent Global Note which, in either case, is in or substantially in the form set out in Part 2 of Schedule 2 to the Trust Deed (together with the Final Terms attached thereto) or (if this Global Note is an Exchangeable Bearer Note) for Registered Notes upon notice being given by Euroclear and/or Clearstream, Luxembourg acting on the instructions of any holder of an interest in this Global Note and subject, in the case of Definitive Bearer Notes, to such notice period as is specified in the Final Terms.
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If Definitive Bearer Notes and (if applicable) Coupons and/or Talons have already been issued in exchange for all the Notes represented for the time being by the Permanent Global Note, then this Global Note may only thereafter be exchanged for Definitive Bearer Notes and (if applicable) Coupons and/or Talons pursuant to the terms hereof. This Global Note may be exchanged by the bearer hereof on any day (other than a Saturday or Sunday) on which banks are open for general business in London.
The Issuer shall procure that Definitive Bearer Notes or (as the case may be) the Permanent Global Note shall be issued and delivered and (in the case of the Permanent Global Note where the Final Terms indicates that this Global Note is intended to be a New Global Note) interests in the Permanent Global Note shall be recorded in the records of the relevant Clearing Systems in exchange for only that portion of this Global Note in respect of which there shall have been presented to the Principal Paying Agent by Euroclear or Clearstream, Luxembourg a certificate to the effect that it has received from or in respect of a person entitled to a beneficial interest in a particular nominal amount of the Notes represented by this Global Note (as shown by its records) a certificate of non-US beneficial ownership in the form required by it.
On an exchange of the whole of this Global Note, this Global Note shall be surrendered to or to the order of the Principal Paying Agent. The Issuer shall procure that:
(a) if the Final Terms indicates that this Global Note is intended to be a New Global Note, on an exchange of the whole or part only of this Global Note, details of such exchange shall be entered pro rata in the records of the relevant Clearing Systems such that the nominal amount of Notes represented by this Global Note shall be reduced by the nominal amount of this Global Note so exchanged; or
(b) if the Final Terms indicates that this Global Note is not intended to be a New Global Note, on an exchange of part only of this Global Note details of such exchange shall be entered by or on behalf of the Issuer in Schedule Two hereto and the relevant space in Schedule Two hereto recording such exchange shall be signed by or on behalf of the Issuer, whereupon the nominal amount of this Global Note and the Notes represented by this Global Note shall be reduced by the nominal amount of this Global Note so exchanged. On any exchange of this Global Note for a Permanent Global Note, details of such exchange shall be entered by or on behalf of the Issuer in Schedule Two to the Permanent Global Note and the relevant space in Schedule Two thereto recording such exchange shall be signed by or on behalf of the Issuer.
Until the exchange of the whole of this Global Note as aforesaid, the bearer hereof shall in all respects be entitled to the same benefits as if he were the bearer of Definitive Bearer Notes and the relative Coupons and/or Talons (if any) in the form(s) set out in Part 5, Part 6 and Part 7 (as applicable) of Schedule 2 to the Trust Deed.
The holder of this Global Note shall be treated at any meeting of the Noteholders as having one vote in respect of each Definitive Bearer Note for which this Global Note would be exchangeable.
In considering the interests of Noteholders while this Global Note is held on behalf of a clearing system, the Trustee may have regard to any information provided to it by such clearing system or its operator as to the identity (either individually or by category) of its accountholders with entitlements to this Global Note and may consider such interests as if such accountholders were the holder of this Global Note.
This Global Note does not confer on a third party any right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Global Note, but this does not affect any right or remedy of a third party which exists or is available apart from that Act.
This Global Note, and any non-contractual obligations arising out of or in connection with it, are governed by, and shall be construed in accordance with, English law.
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This Global Note shall not be valid unless authenticated by HSBC Bank plc as Issuing and Principal Paying Agent and, if the Final Terms indicates that this Global Note is intended to be held in a manner which would allow Eurosystem eligibility, effectuated by the entity appointed as common safekeeper by the relevant Clearing Systems. IN WITNESS whereof the Issuer has caused this Global Note to be signed manually or in facsimile by a person duly authorised on its behalf.
Issued as of VODAFONE GROUP PLC By:
Duly Authorised
Authenticated by HSBC Bank plc as Issuing and Principal Paying Agent. By:
Authorised Officer (1) Effectuated without recourse, warranty or liability by
as common safekeeper
By:
(1) This should only be completed where the Final Terms indicates that this Global Note is intended to be held in a manner which would allow Eurosytem eligibility. 85
Date made
Schedule One* PART I
INTEREST PAYMENTS
Interest Payment Date
Total amount of interest payable
Amount of interest paid
Confirmation of payment by or on behalf of the Issuer
* Schedule One should only be completed where the Final Terms indicates that this Global Note is not intended to be a New Global Note.
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Date made
PART II REDEMPTIONS
Total amount of principal payable
Amount of principal paid
Remaining nominal amount of this Global Note following such redemption*
Confirmation of redemption by or on behalf of the
Issuer
* See most recent entry in Part II or III of Schedule Two in order to determine this amount. 87
Date made
PART III
PURCHASES AND CANCELLATIONS
Part of nominal amount of this Global Note
purchased and cancelled
Remaining nominal amount of this Global Note following such
purchase and cancellation*
Confirmation of purchase and
cancellation by or on behalf of the Issuer
* See most recent entry in Part II or III of Schedule Two in order to determine this amount. 88
Schedule Two*
EXCHANGES FOR DEFINITIVE BEARER NOTES, REGISTERED NOTES OR PERMANENT GLOBAL NOTE
The following exchanges of a part of this Global Note for Definitive Bearer Notes or Registered Notes or a part of a Permanent Global Note have been made:
Date made
Nominal amount of this Global Note exchanged
for Definitive Bearer Notes, Registered Notes or a part of a Permanent
Global Note (stating which)
Remaining nominal amount of this Global Note following such
exchange*
Notation made by or on behalf of the Issuer
* Schedule Two should only be completed where the Final Terms indicates that this Global Note is not intended to be a New Global Note. * See most recent entry in Part II or III of Schedule One or in this Schedule Two in order to determine this amount.
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ANNEX [attach Final Terms that relate to this Global Note]
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PART 2
FORM OF PERMANENT GLOBAL NOTE
[ANY UNITED STATES PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.](1)
VODAFONE GROUP PLC (the Issuer)
(incorporated with limited liability in England and Wales)
PERMANENT GLOBAL NOTE
This Note is a Permanent Global Note in respect of a duly authorised issue of Notes of the Issuer (the Notes) of the Nominal Amount, Specified Currency(ies) and Specified Denomination(s) as are specified in the Final Terms or Pricing Supplement, as the case may be, applicable to the Notes (the Final Terms), a copy of which is annexed hereto. References herein to the Conditions shall be to the Terms and Conditions of the Notes as set out in Schedule 1 to the Trust Deed (as defined below) as completed and/or (in the case of Exempt Notes) modified and/or replaced by the Final Terms but, in the event of any conflict between the provisions of the Conditions and the information in the Final Terms, the Final Terms will prevail. Words and expressions defined in the Conditions shall bear the same meanings when used in this Global Note. This Global Note is issued subject to, and with the benefit of, the Conditions and a Trust Deed (such Trust Deed as modified and/or supplemented and/or restated from time to time, the Trust Deed) dated 16 July 1999 and made between the Issuer (under its then name of Vodafone AirTouch Plc) and The Law Debenture Trust Corporation p.l.c. as trustee for the holders of the Notes.
The Issuer, subject to and in accordance with the Conditions and the Trust Deed, promises to pay to the bearer hereof on the Maturity Date and/or on such earlier date(s) as all or any of the Notes represented by this Global Note may become due and repayable in accordance with the Conditions and the Trust Deed, the amount payable under the Conditions in respect of such Notes on each such date and to pay interest (if any) on the nominal amount of the Notes from time to time represented by this Global Note calculated and payable as provided in the Conditions and the Trust Deed together with any other sums payable under the Conditions and the Trust Deed, upon presentation and, at maturity, surrender of this Global Note at the specified office of the Issuing and Principal Paying Agent at 8 Canada Square, London EC2V 7EX, England or such other specified office as may be specified for this purpose in accordance with the Conditions or at the specified office of any of the other Paying Agents located outside the United States, its territories and possessions (except as provided in the Conditions) from time to time appointed by the Issuer in respect of the Notes.
If the Final Terms indicates that this Global Note is intended to be a New Global Note, the nominal amount of Notes represented by this Global Note shall be the aggregate amount from time to time entered in the records of both Euroclear Bank SA/NV (Euroclear) and Clearstream Banking S.A. (Clearstream, Luxembourg and together with Euroclear, the relevant Clearing Systems). The records of the relevant Clearing Systems (which expression in this Global Note means the records that each relevant Clearing System holds for its customers which reflect the amount of such customer's interest in the Notes) shall be conclusive evidence of the nominal amount of Notes represented by this Global Note and, for these purposes, a statement issued by a relevant Clearing System (which statement shall be made available to the bearer upon
(1) Include where the original maturity of the Notes is more than 365 days where TEFRA D is specified in the applicable Final Terms or Pricing Supplement, as the case may be.
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request) stating the nominal amount of Notes represented by this Global Note at any time shall be conclusive evidence of the records of the relevant Clearing System at that time.
If the Final Terms indicates that this Global Note is not intended to be a New Global Note, the nominal amount of the Notes represented by this Global Note shall be the amount stated in the applicable Final Terms or, if lower, the nominal amount most recently entered by or on behalf of the Issuer in the relevant column in Part II or Part III of Schedule One hereto or in Schedule Two hereto.
On any redemption of, or payment of interest being made in respect of, or purchase and cancellation of, any of the Notes represented by this Global Note the Issuer shall procure that:
(a)
if the Final Terms indicates that this Global Note is intended to be a New Global Note, details of such redemption, payment
or purchase and cancellation (as the case may be) shall be entered pro rata in the records of the relevant Clearing Systems
and, upon any such entry being made, the nominal amount of the Notes recorded in the records of the relevant Clearing
Systems and represented by this Global Note shall be reduced by the aggregate nominal amount of the Notes so redeemed or
purchased and cancelled; or
(b) if the Final Terms indicates that this Global Note is not intended to be a New Global Note, details of such redemption, payment or purchase and cancellation (as the case may be) shall be entered by or on behalf of the Issuer in Schedule One hereto and the relevant space in Schedule One hereto recording any such redemption, payment or purchase and cancellation
(as the case may be) shall be signed by or on behalf of the Issuer. Upon any such redemption or purchase and cancellation, the nominal amount of this Global Note and the Notes represented by this Global Note shall be reduced by the nominal amount of such Notes so redeemed or purchased and cancelled.
Payments due in respect of Notes for the time being represented by this Global Note shall be made to the bearer of this Global Note and each payment so made will discharge the Issuer's obligations in respect thereof and any failure to make entries referred to above shall not affect such discharge.
If the Notes represented by this Global Note were, on issue, represented by a Temporary Global Note then on any exchange of such Temporary Global Note for this Global Note or any part hereof, the Issuer shall procure that:
(a) if the Final Terms indicates that this Global Note is intended to be a New Global Note, details of such exchange shall be entered in the records of the relevant Clearing Systems such that the nominal amount of Notes represented by this Global Note shall be increased by the nominal amount of the Temporary Global Note so exchanged; or
(b) if the Final Terms indicates that this Global Note is not intended to be a New Global Note, details of such exchange shall be entered by or on behalf of the Issuer in Schedule Two hereto and the relevant space in Schedule Two hereto recording such exchange shall be signed by or on behalf of the Issuer, whereupon the nominal amount of this Global Note and the Notes represented by this Global Note shall be increased by the nominal amount of the Temporary Global Note so exchanged.
This Global Note may be exchanged (free of charge) in whole, but, except as provided below, not in part, for Definitive Bearer Notes and (if applicable) Coupons and/or Talons in or substantially in the forms set out in Part 5, Part 6 and Part 7 of Schedule 2 to the Trust Deed (on the basis that all the appropriate details have been included on the face of such Definitive Bearer Notes and (if applicable) Coupons and/or Talons and the relevant information completing the Conditions appearing in the Final Terms has been endorsed on or attached to such Definitive Bearer Notes) or (if this Global Note is an Exchangeable Bearer Note) Registered Notes represented by the Certificates described in the Trust Deed:
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(a)
if specified in the applicable Final Terms, upon not less than 60 days' written notice being given to the Issuing and Principal
Paying Agent by Euroclear and/or Clearstream, Luxembourg (acting on the instructions of any holder of an interest in this
Global Note); or
(b) if specified in the applicable Final Terms, only upon the occurrence of an Exchange Event; or
(c)
if this Global Note is an Exchangeable Bearer Note then, subject to Condition 2(f), by the holder hereof giving notice to the
Issuing and Principal Paying Agent of its election to exchange the whole or a part of this Global Note for Registered Notes.
An Exchange Event means (unless otherwise specified in the applicable Final Terms):
(i)
an Event of Default has occurred and is continuing;
(ii)
the Issuer has been notified that both Euroclear and Clearstream, Luxembourg have been closed for business for a
continuous period of 14 days (other than by reason of holiday, statutory or otherwise) or have announced an
intention permanently to cease business or have in fact done so and no alternative clearing system satisfactory to the
Trustee is available; or
(iii) the Issuer has or will become obliged to pay additional amounts as provided for or referred to in Condition 8 which would not be required were the Bearer Notes in definitive form.
Upon the occurrence of an Exchange Event:
(A) the Issuer will promptly give notice to Noteholders in accordance with Condition 14 of the occurrence of such Exchange Event; and
(B) Euroclear and/or Clearstream, Luxembourg (acting on the instructions of any holder of an interest in this Global Note) or the Trustee may give notice to the Issuing and Principal Paying Agent requesting exchange and, in the
event of the occurrence of an Exchange Event as described in (iii) above, the Issuer may also give notice to the Issuing and Principal Paying Agent requesting exchange.
This Global Note is exchangeable in part only if this Global Note is an Exchangeable Bearer Note and the part thereof submitted for exchange is to be exchanged for Registered Notes.
Any such exchange shall occur on a date specified in the notice not later than 60 days (or, in the case of an exchange for Registered Notes, 5 days) after the date of receipt of the first relevant notice by the Issuing and Principal Paying Agent.
The first notice requesting exchange in accordance with the above provisions shall give rise to the issue of Definitive Bearer Notes for the total nominal amount of Notes represented by this Global Note.
Any such exchange as aforesaid will be made upon presentation of this Global Note by the bearer hereof on any day (other than a Saturday or Sunday) on which banks are open for business in London at the office of the Issuing and Principal Paying Agent specified above.
The aggregate nominal amount of Definitive Bearer Notes or Registered Notes issued upon an exchange of this Global Note will be equal to the aggregate nominal amount of this Global Note submitted for exchange. Upon exchange in full of this Global Note, the Issuing and Principal Paying Agent shall cancel it or procure that it is cancelled.
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Certificates issued upon exchange for Registered Notes shall not be Global Certificates unless the holder so requests and certifies to the Issuing and Principal Paying Agent that it is, or is acting as, a nominee for Clearstream, Luxembourg or Euroclear.
Until the exchange of the whole of this Global Note as aforesaid, the bearer hereof shall in all respects be entitled to the same benefits as if he were the bearer of Definitive Bearer Notes and the relative Coupons and/or Talons (if any) in the form(s) set out in Part 5, Part 6 and Part 7 (as applicable) of Schedule 2 to the Trust Deed.
The holder of this Global Note shall be treated at any meeting of the Noteholders as having one vote in respect of each Definitive Bearer Note for which this Global Note would be exchangeable.
In considering the interests of Noteholders while this Global Note is held on behalf of a clearing system, the Trustee may have regard to any information provided to it by such clearing system or its operator as to the identity (either individually or by category) of its accountholders with entitlements to this Global Note and may consider such interests as if such accountholders were the holder of this Global Note.
This Global Note does not confer on a third party any right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Global Note, but this does not affect any right or remedy of a third party which exists or is available apart from that Act.
This Global Note, and any non-contractual obligations arising out of or in connection with it, are governed by, and shall be construed in accordance with, English law.
This Global Note shall not be valid unless authenticated by HSBC Bank plc as Issuing and Principal Paying Agent and, if the Final Terms indicates that this Global Note is intended to be held in a manner which would allow Eurosystem eligibility, effectuated by the entity appointed as common safekeeper by the relevant Clearing Systems.
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IN WITNESS whereof the Issuer has caused this Global Note to be signed manually or in facsimile by a person duly authorised on its behalf. Issued as of VODAFONE GROUP PLC By:
Duly Authorised
Authenticated by HSBC Bank plc as Issuing and Principal Paying Agent. By:
Authorised Officer (1) Effectuated without recourse, warranty or liability by
as common safekeeper
By:
(1) This should only be completed where the Final Terms indicates that this Global Note is intended to be held in a manner which would allow Eurosytem eligibility. 95
Date made
Schedule One* PART I
INTEREST PAYMENTS
Interest Payment Date
Total amount of interest payable
Amount of interest paid
Confirmation of payment by or on behalf of the Issuer
* Schedule One should only be completed where the Final Terms indicates that this Global Note is not intended to be a New Global Note.
96
Date made
PART II REDEMPTION
Total amount of principal payable
Amount of principal paid
Remaining nominal amount of this Global Note following such redemption*
Confirmation of redemption by or on behalf of the
Issuer
* See most recent entry in Part II or III of Schedule Two in order to determine this amount. 97
Date made
PART III
PURCHASES AND CANCELLATIONS
Part of nominal amount of this Global Note
purchased and cancelled
Remaining nominal amount of this Global Note following such
purchase and cancellation*
Confirmation of purchase and
cancellation by or on behalf of the Issuer
* See most recent entry in Part II or III of Schedule Two in order to determine this amount. 98
Schedule Two*
EXCHANGES
The following exchanges of a part of this the Temporary Global Note for a part of this Global Note or a part of this Global Note for Registered Notes have been made:
Date made
Nominal amount of Temporary Global Note
exchanged for this Global Note or of this Global Note exchanged for Registered Notes
Increased/decreased nominal amount of this Global Note following
such exchange*
Notation made by or on behalf of the Issuer
* See most recent entry in Part II or III of Schedule One or in this Schedule Two in order to determine this amount. * Schedule Two should only be completed where the Final Terms indicates that this Global Note is not intended to be a New Global Note.
99
ANNEX [attach the Final Terms that relate to this Global Note]
100
PART 3
FORM OF REGULATION S GLOBAL CERTIFICATE
THE NOTES REPRESENTED BY THIS REGULATION S GLOBAL CERTIFICATE HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE SECURITIES ACT), OR WITH ANY SECURITIES REGULATORY AUTHORITY OF ANY STATE OR OTHER JURISDICTION OF THE UNITED STATES AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHIN THE UNITED STATES EXCEPT PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT.
VODAFONE GROUP PLC (the Issuer)
(incorporated with limited liability in England and Wales)
REGULATION S GLOBAL CERTIFICATE
This Regulation S Global Certificate is issued in respect of a duly authorised issue of Notes of the Issuer (the Notes) of the Nominal Amount, Specified Currency(ies) and Specified Denomination(s) as are specified in the Final Terms or Pricing Supplement, as the case may be, applicable to the Notes (the Final Terms), a copy of which is annexed hereto. This Regulation S Global Certificate certifies that the person whose name is entered in the Register is the registered holder (the Registered Holder) of such nominal amount of the Notes specified in the Final Terms at the date hereof.
Interpretation and Definitions
References in this Regulation S Global Certificate to the Conditions are to the Terms and Conditions of the Notes as set out in Schedule 1 to the Trust Deed (as defined below) as completed and/or (in the case of Exempt Notes) modified and/or replaced by the Final Terms but, in the event of any conflict between the provisions of the Conditions and the information in the Final Term; the Final Terms will prevail. Words and expressions defined in the Conditions shall bear the same meanings when used in this Regulation S Global Certificate. This Regulation S Global Certificate is issued subject to, and with the benefit of, the Conditions and a Trust Deed (such Trust Deed as modified and/or supplemented and/or restated from time to time, the Trust Deed) dated 16 July 1999 and made between the Issuer (under its then name of Vodafone AirTouch Plc) and The Law Debenture Trust Corporation p.l.c as Trustee for the holders of the Notes.
Promise to Pay
The Issuer, subject as hereinafter provided and subject to and in accordance with the Conditions and the Trust Deed, promises to pay to the holder of the Notes represented by this Regulation S Global Certificate on the Maturity Date and/or on such earlier date(s) as all or any of the Notes represented by this Regulation S Global Certificate may become due and repayable in accordance with the Conditions and the Trust Deed, the amount payable under the Conditions in respect of such Notes on each such date and to pay interest (if any) on the nominal amount of the Notes from time to time represented by this Regulation S Global Certificate calculated and payable as provided in the Conditions and the Trust Deed together with any other sums payable under the Conditions and the Trust Deed.
For the purposes of this Regulation S Global Certificate, (a) the Issuer certifies that the Registered Holder is, at the date hereof, entered in the Register as the holder of the Notes represented by this Regulation S Global Certificate, (b) this Regulation S Global Certificate is evidence of entitlement only, (c) title to the Notes represented by this Regulation S Global Certificate passes only on due registration on the Register, (d) only the holder of the Notes, as on the immediately preceding Clearing System Business Day, represented by this
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Regulation S Global Certificate is entitled to payments in respect of the Notes represented by this Regulation S Global Certificate, and (e) the nominal amount of Notes represented by this Regulation S Global Certificate from time to time shall be that amount shown in the Register as being registered in the name of the Registered Holder hereof at such time.
For the purposes hereof "Clearing System Business Day" means any day other than (i) Saturdays or Sundays and (ii) 1 January and 25 December.
Transfer of Notes represented by Regulation S Global Certificates
If the Final Terms state that the Notes are to be represented by a Regulation S Global Certificate on issue, transfers of the holding of Notes represented by this Regulation S Global Certificate pursuant to Condition 2(b) may only be made in part:
(a)
if the Notes represented by this Regulation S Global Certificate are held on behalf of Euroclear or Clearstream, Luxembourg
or any other clearing system (an Alternative Clearing System) and any such clearing system is closed for business for a
continuous period of 14 days (other than by reason of holiday, statutory or otherwise) or announces an intention permanently
to cease business or does in fact do so and no alternative clearing system satisfactory to the Trustee is available; or
(b) an Event of Default has occurred and is continuing; or
(c)
with the consent of the Issuer,
provided that, in the case of the first transfer of part of a holding pursuant to (a) or (b) above, the holder of the Notes represented by this Regulation S Global Certificate has given the Registrar not less than 30 days' notice at its specified office of such holder's intention to effect such transfer. Where the holding of Notes represented by this Regulation S Global Certificate is only transferable in its entirety, the Certificate issued to the transferee upon transfer of such holding shall be a Regulation S Global Certificate. Where transfers are permitted in part, Certificates issued to transferees shall not be Regulation S Global Certificates unless the transferee so requests and certifies to the Registrar that it is, or is acting as a nominee for, Clearstream, Luxembourg, Euroclear and/or an Alternative Clearing System.
Interests in a Regulation S Global Certificate will be exchangeable, free of charge to the holder, for definitive Regulation S Certificates only upon the occurrence of an Exchange Event. An Exchange Event means (unless otherwise specified in the applicable Final Terms) that:
(i)
an Event of Default has occurred and is continuing; or
(ii) the Issuer has been notified that both Euroclear and Clearstream, Luxembourg have been closed for business for a continuous period of 14 days (other than by reason of holiday, statutory or otherwise) or have announced an intention permanently to cease business or have in fact done so and, in any such case, no successor clearing system is available; or
(iii) the Issuer has or will become subject to adverse tax consequences which would not be suffered were the Notes represented by definitive Regulation S Certificates.
Upon the occurrence of an Exchange Event:
(A) the Issuer will promptly give notice to Noteholders in accordance with Condition 14; and
(B) Euroclear and Clearstream, Luxembourg (acting on the instructions of any holder of an interest in such Regulation S Global Certificate) may give notice to the Registrar requesting exchange and, in
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the event of an Exchange Event as described in (iii) above, the Issuer may also give notice to the Registrar requesting exchange. Any such exchange shall occur not later than 10 days after the date of receipt of the first relevant notice by the Registrar. Meetings At any meeting of Noteholders, the holder of the Notes represented by this Regulation S Global Certificate shall be treated as having one vote in respect of each nominal amount of Notes equal to the minimum Specified Denomination of the Notes. This Regulation S Global Certificate shall not become valid for any purpose until authenticated by or on behalf of the Registrar and, if the applicable Final Terms indicates that this Regulation S Global Certificate is intended to be held under the New Safekeeping Structure, effectuated by the entity appointed as common safekeeper by Euroclear or Clearstream, Luxembourg. This Regulation S Global Certificate, and any non-contractual obligations arising out of or in connection with it, shall be governed by and construed in accordance with English law. IN WITNESS whereof the Issuer has caused this Regulation S Global Certificate to be signed manually or in facsimile by a person duly authorised on its behalf.
Dated as of the Issue Date. VODAFONE GROUP PLC By:
Duly Authorised Authenticated by HSBC Bank USA National Association as Registrar By:
Authorised Officer (1) Effectuated without recourse, warranty or liability by
as common safekeeper
By:
(1) This should only be completed where the Final Terms indicates that this Regulation S Global Certificate is intended to be held under the NSS. 103
For value received the undersigned transfers to
Form of Transfer
(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS OF TRANSFEREE)
[x] nominal amount of the Notes represented by this Regulation S Global Certificate, and all rights under them.
Dated
Signed
Certifying Signature
Notes:
(a)
The signature of the person effecting a transfer shall conform to a list of duly authorised specimen signatures supplied by the
holder of the Notes represented by this Regulation S Global Certificate or (if such signature corresponds with the name as it
appears on the face of this Regulation S Global Certificate) be certified by a notary public or a recognised bank or be
supported by such other evidence as a Transfer Agent or the Registrar may reasonably require.
(b) A representative of the Noteholder should state the capacity in which he signs e.g. executor.
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ANNEX [attach Final Terms that relate to this Global Certificate]
105
PART 4
FORM OF DTC RESTRICTED GLOBAL CERTIFICATE
THE NOTES REPRESENTED BY THIS DTC RESTRICTED GLOBAL CERTIFICATE HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE SECURITIES ACT) OR WITH ANY SECURITIES REGULATORY AUTHORITY OF ANY STATE OR OTHER JURISDICTION OF THE UNITED STATES AND MAY NOT BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1) IN ACCORDANCE WITH RULE 144A UNDER THE SECURITIES ACT (RULE 144A) TO A PERSON THAT THE HOLDER AND ANY PERSON ACTING ON ITS BEHALF REASONABLY BELIEVE IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A (A QIB) PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB, (2) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT (REGULATION S) TO A NON-US PERSON (AS DEFINED IN THE REGULATIONS) OR (3) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) , IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. NO REPRESENTATION CAN BE MADE AS TO THE AVAILABILITY OF THE EXEMPTION PROVIDED BY RULE 144 FOR RESALES OF THE NOTES REPRESENTED BY THIS DTC RESTRICTED CERTIFICATE.
Unless this DTC Restricted Global Certificate is presented by an authorised representative of The Depository Trust Company, a corporation incorporated under the laws of the State of New York (DTC), to the Issuer or its agent for registration of transfer, exchange or payment, and any definitive Note issued is registered in the name of Cede & Co. or such other name as is requested by an authorised representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorised representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL in as much as the registered owner hereof, Cede & Co., has an interest herein.
VODAFONE GROUP PLC (the Issuer)
(incorporated with limited liability in England and Wales)
DTC RESTRICTED GLOBAL CERTIFICATE
Registered Holder:
Address of Registered Holder:
Nominal amount of Notes represented by this DTC Restricted Global Certificate:
This DTC Restricted Global Certificate is issued in respect of a duly authorised issue of Notes of the Issuer (the Notes) of the Nominal Amount, Specified Currency(ies) and Specified Denomination(s) as are specified in the Final Terms or Pricing Supplement, as the case may be, applicable to the Notes (the Final Terms), a copy of which is annexed hereto. This DTC Restricted Global Certificate certifies that the Registered Holder (as defined above) is registered as the holder of such nominal amount of the Notes at the date hereof.
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Interpretation and Definitions
References in this DTC Restricted Global Certificate to the Conditions are to the Terms and Conditions or the Notes as set out in Schedule 1 to the Trust Deed (as defined below) as completed and/or (in the case of Exempt Notes) modified and/or replaced by the Final Terms but, in the event of any conflict between the provisions of the Conditions and the information in the Final Terms, the Final Terms will prevail. Words and expressions defined in the Conditions shall bear the same meanings when used in this DTC Restricted Global Certificate. This DTC Restricted Global Certificate is issued subject to, and with the benefit of, the Conditions and a Trust Deed (such Trust Deed as modified and/or supplemented and/or restated from time to time, the Trust Deed) dated 16 July 1999 and made between the Issuer (under its then name of Vodafone AirTouch Plc) and The Law Debenture Trust Corporation p.l.c as Trustee for the holders of the Notes.
Promise to Pay
The Issuer, subject as hereinafter provided and subject to and in accordance with the Conditions and the Trust Deed, promises to pay to the holder of the Notes represented by this DTC Restricted Global Certificate on the Maturity Date and/or on such earlier date(s) as all or any of the Notes represented by this DTC Restricted Global Certificate may become due and repayable in accordance with the Conditions and the Trust Deed, the amount payable under the Conditions in respect of such Notes on each such date and to pay interest (if any) on the nominal amount of the Notes from time to time represented by this DTC Restricted Global Certificate calculated and payable as provided in the Conditions and the Trust Deed together with any other sums payable under the Conditions and the Trust Deed.
For the purposes of this DTC Restricted Global Certificate, (a) the Issuer certifies that the Registered Holder is, at the date hereof, entered in the Register as the holder of the Notes represented by this DTC Restricted Global Certificate, (b) this DTC Restricted Global Certificate is evidence of entitlement only, (c) title to the Notes represented by this DTC Restricted Global Certificate passes only on due registration on the Register,
(d) only the holder of the Notes as on the immediately preceding Clearing System Business Day, represented by this DTC Restricted Global Certificate is entitled to payments in respect of the Notes represented by this DTC Restricted Global Certificate, and (e) the
nominal amount of Notes represented by this DTC Restricted Global Certificate from time to time shall be that amount shown in the Register as being registered in the name of the Registered Holder hereof at such time.
For the purposes hereof "Clearing System Business Day" means any day other than (i) Saturdays or Sundays and (ii) 1 January and 25 December.
Transfer of Notes represented by DTC Restricted Global Certificates
If the Final Terms state that the Notes are to be represented by a DTC Restricted Global Certificate on issue, transfers of the holding of Notes represented by this DTC Restricted Global Certificate pursuant to Condition 2(b) may only be made in part:
(a) if the Notes represented by this DTC Restricted Global Certificate are held on behalf of DTC or any other clearing system (an Alternative Clearing System) and any such clearing system is closed for business for a continuous period of 14 days (other
than by reason of holiday, statutory or otherwise) or announces an intention permanently to cease business or does in fact do so and no alternative clearing system satisfactory to the Trustee is available; or
(b) an Event of Default has occurred and is continuing; or
(c)
with the consent of the Issuer,
provided that, in the case of the first transfer of part of a holding pursuant to (a) or (b) above, the holder of the Notes represented by this DTC Restricted Global Certificate has given the Registrar not less than 30 days'
107
notice at its specified office of such holder's intention to effect such transfer. Where the holding of Notes represented by this DTC Restricted Global Certificate is only transferable in its entirety, the Certificate issued to the transferee upon transfer of such holding shall be a DTC Restricted Global Certificate. Where transfers are permitted in part, Certificates issued to transferees shall not be DTC Restricted Global Certificates unless the transferee so requests and certifies to the Registrar that it is, or is acting as a nominee for, DTC and/or an Alternative Clearing System.
Interests in a DTC Restricted Global Certificate will be exchangeable, free of charge to the holder, for definitive DTC Restricted Certificates only upon the occurrence of an Exchange Event. An Exchange Event means (unless otherwise specified in the applicable Final Terms) that:
(i)
an Event of Default has occurred and is continuing; or
(ii)
either DTC has notified the Issuer that it is unwilling or unable to continue to act as depositary for the
Notes and no alternative clearing system is available or DTC has ceased to constitute a clearing agency
registered under the Exchange Act; or
(iii) the Issuer has or will become subject to adverse tax consequences which would not be suffered were the Notes represented by definitive DTC Restricted Certificates.
Upon the occurrence of an Exchange Event:
(A) the Issuer will promptly give notice to Noteholders in accordance with Condition 14; and
(B) DTC (acting on the instructions of any holder of an interest in such DTC Restricted Global Certificate) may give notice to the Registrar requesting exchange and, in the event of an Exchange Event as described in (iii) above, the Issuer may also give notice to the Registrar requesting exchange.
Any such exchange shall occur not later than 10 days after the date of receipt of the first relevant notice by the Registrar.
Covenants
The statements set forth in the legend above are an integral part of the Notes in respect of which this DTC Restricted Global Certificate representing DTC Restricted Registered Notes is issued and by acceptance hereof each holder of such Notes agrees to be subject to and bound by the terms and provisions set forth in such legend.
Meetings
At any meeting of Noteholders, the holder of the Notes represented by this DTC Restricted Global Certificate shall be treated as having one vote in respect of each nominal amount of Notes equal to the minimum Specified Denomination of the Notes.
This DTC Restricted Global Certificate shall not become valid for any purpose until authenticated by or on behalf of the Registrar.
This DTC Restricted Global Certificate, and any non-contractual obligations arising out of or in connection with it, shall be governed by and construed in accordance with English law.
108
IN WITNESS whereof the Issuer has caused this DTC Restricted Global Certificate to be signed manually or in facsimile by a person duly authorised on its behalf. Dated as of the Issue Date. VODAFONE GROUP PLC By:
Duly Authorised Authenticated by HSBC Bank USA National Association as Registrar By:
Authorised Officer 109
For value received the undersigned transfers to
Form of Transfer
(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS OF TRANSFEREE)
[x] nominal amount of the Notes represented by this DTC Restricted Global Certificate, and all rights under them.
Dated
Signed
Certifying Signature
Notes:
(a)
The signature of the person effecting a transfer shall conform to a list of duly authorised specimen signatures supplied by the
holder of the Notes represented by this DTC Restricted Global Certificate or (if such signature corresponds with the name as
it appears on the face of this DTC Restricted Global Certificate) be certified by a notary public or a recognised bank or be
supported by such other evidence as a Transfer Agent or the Registrar may reasonably require.
(b) A representative of the Noteholder should state the capacity in which he signs e.g. executor.
110
ANNEX [attach Final Terms that relate to this Global Certificate]
111
PART 5
FORM OF DEFINITIVE NOTE
[ANY UNITED STATES PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE UNITED STATES INTERNAL REVENUE CODE OF 1986, AS AMENDED.](1)
VODAFONE GROUP PLC (the Issuer)
(incorporated with limited liability in England and Wales)
[Specified Currency and Nominal Amount of Tranche] NOTES DUE
[Year of Maturity]
This Note is one of a Series of Notes of [Specified Currency(ies) and Specified Denomination(s)] each of the Issuer (Notes). References herein to the Conditions shall be to the Terms and Conditions [endorsed hereon/set out in Schedule 1 to the Trust Deed (as defined below) which shall be incorporated by reference herein and have effect as if set out herein] as completed by and/or (in the case of the Exempt Notes) modified and/or replaced the relevant information (appearing in the Final Terms or Pricing Supplement, as the case may be, (the Final Terms)) endorsed hereon but, in the event of any conflict between the provisions of the said Conditions and such information in the Final Terms, such information will prevail. Words and expressions defined in the Conditions shall bear the same meanings when used in this Note. This Note is issued subject to, and with the benefit of, the Conditions and a Trust Deed (such Trust Deed as modified and/or supplemented and/or restated from time to time, the Trust Deed) dated 16 July 1999 and made between the Issuer (under its then name of Vodafone AirTouch Plc) and The Law Debenture Trust Corporation p.l.c. as trustee for the holders of the Notes.
The Issuer, subject to and in accordance with the Conditions and the Trust Deed, promises to pay to the bearer hereof on the Maturity Date or on such earlier date as this Note may become due and repayable in accordance with the Conditions and the Trust Deed, the amount payable on redemption of this Note and to pay interest (if any) on the nominal amount of this Note calculated and payable as provided in the Conditions and the Trust Deed together with any other sums payable under the Conditions and the Trust Deed.
This Note shall not be valid unless authenticated by HSBC Bank plc as Issuing and Principal Paying Agent.
(1)
Include where the original maturity of the Notes is more than 365 days where TEFRA D is specified in the applicable Final
Terms or Pricing Supplement, as the case may be.
112
IN WITNESS whereof this Note has been executed on behalf of the Issuer.
Issued as of
VODAFONE GROUP PLC
By: Duly Authorised
Authenticated by HSBC Bank plc as Issuing and Principal Paying Agent.
By: Authorised Officer
113
[Conditions]
[Conditions to be as set out in Schedule 1 to this Trust Deed or such other form as may be agreed between the Issuer, the Issuing and Principal Paying Agent, the Trustee and the relevant Dealer(s), but shall not be endorsed if not required by the relevant Stock Exchange]
114
Final Terms
[Here to be set out the text of the relevant information completing the Conditions which appears in the Final Terms relating to the Notes]
115
PART 6
FORM OF COUPON
On the front:
VODAFONE GROUP PLC [Specified Currency and Nominal Amount of Tranche]
NOTES DUE
[Year of Maturity]
Series No. [ ]
[Coupon appertaining to a Note in the denomination of [Specified Currency and Specified Denomination]].(1)
Part A
[For Fixed Rate Notes: This Coupon is payable to bearer, separately
negotiable and subject to the Terms and Conditions of the said Notes.
Coupon for [ ] due on [ ], [ ]]
Part B
[For Floating Rate Notes, CMS Linked Notes or Inflation Linked Interest Notes:
Coupon for the amount due in accordance with the Terms and Conditions endorsed on, attached to or incorporated by reference into the said Notes on [the Interest Payment Date falling in [ ] [ ]/[ ]].
This Coupon is payable to bearer, separately negotiable and subject to such Terms and Conditions, under which it may become void before its due date.]
[ANY UNITED STATES PERSON (WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE UNITED STATES INTERNAL REVENUE CODE OF 1986, AS AMENDED.](2)
(1)
Delete where the Notes are all of the same denomination.
(2)
Include where the original maturity of the Notes is more than 365 days where TEFRA D is specified in the applicable Final
Terms or Pricing Supplement, as the case may be.
116
PART 7
FORM OF TALON
On the front:
VODAFONE GROUP PLC
[Specified Currency and Nominal Amount of Tranche] NOTES DUE
[Year of Maturity]
Series No. [ ]
[Talon appertaining to a Note in the denomination of [Specified Currency and Specified Denomination]].(1)
On and after [
] further Coupons [and a further Talon](2) appertaining to the Note to which this Talon appertains will be issued
at the specified office of any of the Paying Agents set out on the reverse hereof (and/or any other or further Paying Agents and/or
specified offices as may from time to time be duly appointed and notified to the Noteholders) upon production and surrender of this
Talon.
This Talon may, in certain circumstances, become void under the Terms and Conditions endorsed on the Note to which this Talon appertains.
[ANY UNITED STATES PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE UNITED STATES INTERNAL REVENUE CODE OF 1986, AS AMENDED.](3)
(1)
Delete where the Notes are all of the same denomination.
(2)
Not required on last Coupon sheet.
(3)
Include where the original maturity of the Notes is more than 365 days where TEFRA D is specified in the applicable Final
Terms or Pricing Supplement, as the case may be.
117
On the back of Coupons and Talons:
ISSUING AND PRINCIPAL PAYING AGENT
HSBC Bank plc 8 Canada Square London E14 5HQ
OTHER PAYING AGENTS
Credit Suisse AG Uetlibergstrasse 231
8070 Zurich
Banque Internationale à Luxembourg société anonyme
69 route d'Esch L-2953 Luxembourg
118
PART 8
FORM OF REGULATION S CERTIFICATE
On the front:
THE NOTES REPRESENTED BY THIS REGULATION S GLOBAL CERTIFICATE HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE SECURITIES ACT), OR WITH ANY SECURITIES REGULATORY AUTHORITY OF ANY STATE OR OTHER JURISDICTION OF THE UNITED STATES AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHIN THE UNITED STATES EXCEPT PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT.
VODAFONE GROUP PLC (the Issuer)
(incorporated with limited liability in England and Wales)
[Specified Currency and Nominal Amount of Tranche] NOTES DUE
[Year of Maturity]
This Regulation S Certificate certifies that
(the Registered Holder) is, as at the date hereof, registered as the holder of
[nominal amount] of the Notes referred to above (the Notes) of the Issuer. References herein to the Conditions shall be to the Terms
and Conditions [endorsed hereon/set out in Schedule 1 to the Trust Deed (as defined below) which shall be incorporated by reference
herein and have effect as if set out herein] as completed and/or (in the case of Exempt Notes) modified and/or replaced by the relevant
information (appearing in the Final Terms or Pricing Supplement, as the case may be, (the Final Terms)) endorsed hereon but, in the
event of any conflict between the provisions of the said Conditions and such information in the Final Terms, such information will
prevail. Words and expressions defined in the Conditions shall bear the same meanings when used in this Certificate. This Certificate
is issued subject to, and with the benefit of, the Conditions and a Trust Deed (such Trust Deed as modified and/or supplemented
and/or restated from time to time, the Trust Deed) dated 16 July 1999 and made between the Issuer (under its then name of Vodafone
AirTouch Plc) and The Law Debenture Trust Corporation p.l.c. as trustee for the holders of the Notes.
The Issuer, subject to and in accordance with the Conditions and the Trust Deed, promises to pay to the Registered Holder hereof on the Maturity Date or on such earlier date as the Notes represented by this Certificate may become due and repayable in accordance
with the Conditions and the Trust Deed, the amount payable on redemption of such Notes and to pay interest (if any) on the nominal amount of such Notes calculated and payable as provided in the Conditions and the Trust Deed together with any other sums payable under the Conditions and the Trust Deed.
For the purposes of this Regulation S Certificate, (a) the Issuer certifies that the Registered Holder is, at the date hereof, entered in the Register as the holder of the Note(s) represented by this Regulation S Certificate,
(b) this Regulation S Certificate is evidence of entitlement only, (c) title to the Note(s) represented by this Regulation S Certificate passes only on due registration on the Register, and (d) only the holder of the Note(s) represented by this Regulation S Certificate is entitled to payments in respect of the Note(s) represented by this Regulation S Certificate.
This Regulation S Certificate shall not become valid for any purpose until authenticated by or on behalf of the Registrar.
119
This Regulation S Certificate, and any non-contractual obligations arising out of or in connection with it, shall be governed by and construed in accordance with English law.
IN WITNESS whereof this Regulation S Certificate has been executed on behalf of the Issuer. Dated as of the Issue Date.
VODAFONE GROUP PLC By:
Duly Authorised Authenticated by HSBC Bank USA National Association as Registrar.
By: Authorised Officer
120
On the back:
Terms and Conditions of the Notes
[Conditions to be as set out in Schedule 1 to this Trust Deed or such other form as may be agreed between the Issuer, the Issuing and Principal Paying Agent, the Registrar, the Trustee and the relevant Dealer(s), but shall not be endorsed if not required by the relevant Stock Exchange.]
121
Final Terms
[Here to be set out the text of the relevant information completing the Conditions which appears in the Final Terms relating to the Notes.]
122
For value received the undersigned transfers to
Form of Transfer
(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS OF TRANSFEREE) [x] nominal amount of the Notes represented by this Regulation S Certificate, and all rights under them. Dated
Certifying Signature
Signed
Notes:
(a)
The signature of the person effecting a transfer shall conform to a list of duly authorised specimen signatures supplied by the
holder of the Notes represented by this Regulation S Certificate or (if such signature corresponds with the name as it appears on the
face of this Regulation S Certificate) be certified by a notary public or a recognised bank or be supported by such other evidence as a
Transfer Agent or the Registrar may reasonably require.
(b)
A representative of the Noteholder should state the capacity in which he signs.
Unless the context otherwise requires capitalised terms used in this Form of Transfer have the same meaning as in the Trust Deed.
[TO BE COMPLETED BY TRANSFEREE:
[INSERT ANY REQUIRED TRANSFEREE REPRESENTATIONS, CERTIFICATIONS, ETC.]]
ISSUING AND PRINCIPAL PAYING AGENT, TRANSFER AGENT AND REGISTRAR
HSBC Bank plc 8 Canada Square London E14 5HQ
PAYING AGENT AND TRANSFER AGENT
HSBC Bank USA National Association 452 Fifth Avenue New York NY 10018-2708
123
PART 9
FORM OF DTC RESTRICTED CERTIFICATE
On the front:
THE NOTES REPRESENTED BY THIS DEFINITIVE REGISTERED NOTE HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE SECURITIES ACT), OR WITH ANY SECURITIES REGULATORY AUTHORITY OF ANY STATE OR OTHER JURISDICTION OF THE UNITED STATES AND MAY NOT BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1) IN ACCORDANCE WITH RULE 144A UNDER THE SECURITIES ACT (RULE 144A) TO A PERSON THAT THE HOLDER AND ANY PERSON ACTING ON ITS BEHALF REASONABLY BELIEVE IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A (A QIB) PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB, (2) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT (REGULATION S) TO A NON-U.S. PERSION (AS SUCH TERM IS DEFINED UNDER REGULATION S) OR (3) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. NO REPRESENTATION CAN BE MADE AS TO THE AVAILABILITY OF THE EXEMPTION PROVIDED BY RULE 144 FOR RESALE OF THE NOTES REPRESENTED BY THIS DEFINITIVE REGISTERED NOTE.
[FOR PURPOSES OF SECTIONS 1271 ET. SEQ. OF THE UNITED STATES INTERNAL REVENUE CODE OF 1986, AS AMENDED, THIS NOTE HAS ORIGINAL ISSUE DISCOUNT OF [currency][amount] PER EACH [currency][amount] OF PRINCIPAL AMOUNT OF THIS NOTE; THE ISSUE PRICE OF THIS NOTE IS [currency][amount]; THE ISSUE DATE IS [date]; AND THE YIELD TO MATURITY (COMPOUNDED [semi-annually]) IS [yield].]*
VODAFONE GROUP PLC (the Issuer)
(incorporated with limited liability in England and Wales)
[Specified Currency and Nominal Amount of Tranche] NOTES DUE
[Year of Maturity]
This DTC Restricted Certificate certifies that ................... (the Registered Holder) is, as at the date hereof, registered as the holder of [nominal amount] of the Notes referred to above (the Notes) of the Issuer. References herein to the Conditions shall be to the Terms and Conditions [endorsed hereon/set out in Schedule 1 to the Trust Deed (as defined below) which shall be incorporated by reference herein and have effect as if set out herein] as completed and/or (in the case of Exempt Notes) modified and/or replaced by the relevant information (appearing in the Final Terms or Pricing Supplement, as the case may be, (the Final Terms)) endorsed hereon but, in the event of any conflict between the provisions of the said Conditions and such information in the Final Terms, such information will prevail. Words and expressions defined in the Conditions shall bear the same meanings when used in this DTC Restricted Certificate. This DTC Restricted Certificate is issued subject to, and with the benefit of, the Conditions and a Trust Deed (such Trust Deed as modified and/or supplemented and/or restated from time to time, the Trust Deed) dated 16 July 1999 and
* Legend to be borne by any Definitive Certificate issued with "original issue discount" for U.S federal income tax purposes.
124
made between the Issuer (under its then name of Vodafone AirTouch Plc) and The Law Debenture Trust Corporation p.l.c. as trustee for the holders of the Notes.
The Issuer, subject to and in accordance with the Conditions and the Trust Deed, promises to pay to the Registered Holder hereof on the Maturity Date or on such earlier date as the Notes represented by this DTC Restricted Certificate may become due and repayable in accordance with the Conditions and the Trust Deed, the amount payable on redemption of such Notes and to pay interest (if any) on the nominal amount of such Notes calculated and payable as provided in the Conditions and the Trust Deed together with any other sums payable under the Conditions and the Trust Deed.
The statements set forth in the legend above are an integral part of the Notes in respect of which this DTC Restricted Certificate is issued and by acceptance hereof each holder of such Notes agrees to be subject to and bound by the terms and provisions set forth in such legend.
For so long as the Notes are outstanding, the Issuer will, during the period in which the Issuer is neither subject to Section 13 or 15 (d) of the U.S. Securities Exchange Act of 1934, as amended, nor exempt from reporting pursuant to Rule 12g3-2(b) thereunder, provide to the holder hereof, or to any prospective purchaser hereof designated by such holder, upon request, the information required to be provided by Rule 144A(d)(4) under the U.S. Securities Act of 1933, as amended.
For the purposes of this DTC Restricted Certificate, (a) the Issuer certifies that the Registered Holder is, at the date hereof, entered in the Register as the holder of the Note(s) represented by this DTC Restricted Certificate, (b) this DTC Restricted Certificate is evidence of entitlement only, (c) title to the Note(s) represented by this DTC Restricted Certificate passes only on due registration on the Register, and (d) only the holder of the Note(s) represented by this DTC Restricted Certificate is entitled to payments in respect of the Note(s) represented by this DTC Restricted Certificate.
This DTC Restricted Certificate shall not become valid for any purpose until authenticated by or on behalf of the Registrar.
This DTC Restricted Certificate, and any non-contractual obligations arising out of or in connection with it, shall be governed by and construed in accordance with English law.
IN WITNESS whereof this DTC Restricted Certificate has been executed on behalf of the Issuer.
Dated as of the Issue Date.
VODAFONE GROUP PLC
By: Duly Authorised
Authenticated by HSBC Bank USA National Association as Registrar.
By: Authorised Officer
125
On the back:
Terms and Conditions of the Notes
[Conditions to be as set out in Schedule 1 to this Trust Deed or such other form as may be agreed between the Issuer, the Issuing and Principal Paying Agent, the Registrar, the Trustee and the relevant Dealer(s), but shall not be endorsed if not required by the relevant Stock Exchange.]
126
Final Terms
[Here to be set out the text of the relevant information completing the Conditions which appears in the Final Terms relating to the Notes.]
127
For value received the undersigned transfers to
Form of Transfer
(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS OF TRANSFEREE) [x] nominal amount of the Notes represented by this Regulation S Certificate, and all rights under them. Dated
Certifying Signature
Signed
Notes:
(a)
The signature of the person effecting a transfer shall conform to a list of duly authorised specimen signatures supplied by the
holder of the Notes represented by this DTC Restricted Certificate or (if such signature corresponds with the name as it
appears on the face of this DTC Restricted Certificate) be certified by a notary public or a recognised bank or be supported
by such other evidence as a Transfer Agent or the Registrar may reasonably require.
(b) A representative of the Noteholder should state the capacity in which he signs.
Unless the context otherwise requires capitalised terms used in this Form of Transfer have the same meaning as in the Trust Deed.
[TO BE COMPLETED BY TRANSFEREE:
[INSERT ANY REQUIRED TRANSFEREE REPRESENTATIONS, CERTIFICATIONS, ETC.]]
ISSUING AND PRINCIPAL PAYING AGENT, TRANSFER AGENT AND REGISTRAR
HSBC Bank plc 8 Canada Square London E14 5HQ
PAYING AGENT AND TRANSFER AGENT HSBC Bank USA National Association 452 Fifth Avenue New York NY 10018-2708
128
SCHEDULE 3
PROVISIONS FOR MEETINGS OF NOTEHOLDERS
1.
(a)
As used in this Schedule the following expressions shall have the following meanings unless the context otherwise
requires:
(i)
voting certificate shall mean an English language certificate issued by a Paying Agent and dated in which
it is stated:
(A) that on the date thereof Bearer Notes (whether in definitive form or represented by a Global Note and not being Bearer Notes in respect of which a block voting instruction has been issued and is outstanding in respect of the meeting specified in such voting certificate or any adjourned such meeting) were deposited with such Paying Agent or (to the satisfaction of such Paying Agent) were held to its order or under its control or blocked in an account with a clearing system and that no such Bearer Notes will cease to be so deposited or held or blocked until the first to occur of:
I.
the conclusion of the meeting specified in such certificate or, if later, of any adjourned
such meeting; and
II.
the surrender of the certificate to the Paying Agent who issued the same; and
(B) that the bearer thereof is entitled to attend and vote at such meeting and any adjourned such meeting in respect of the Bearer Notes represented by such certificate;
(ii)
block voting instruction shall mean an English language document issued by a Paying Agent and dated in
which:
(A) it is certified that Bearer Notes (whether in definitive form or represented by a Global Note and not being Bearer Notes in respect of which a voting certificate has been issued and is outstanding in respect of the meeting specified in such block voting instruction and any adjourned such meeting) have been deposited with such Paying Agent or (to the satisfaction of such Paying Agent) were held to its order or under its control or blocked in an account with a clearing system and that no such Bearer Notes will cease to be so deposited or held or blocked until the first to occur of:
I.
the conclusion of the meeting specified in such document or, if later, of any adjourned
such meeting; and
II.
the surrender to the Paying Agent not less than 48 hours before the time for which such
meeting or any adjourned such meeting is convened of the receipt issued by such Paying
Agent in respect of each such deposited Bearer Note which is to be released or (as the
case may require) the Bearer Note or Bearer Notes ceasing with the agreement of the
Paying Agent to be held to its order or under its control or so blocked and the giving of
notice by the Paying Agent to the Issuer in accordance with paragraph 17 hereof of the
necessary amendment to the block voting instruction;
129
(B) it is certified that each holder of such Bearer Notes has instructed such Paying Agent that the vote (s) attributable to the Bearer Note or Bearer Notes so deposited or held or blocked should be cast in a particular way in relation to the resolution or resolutions to be put to such meeting or any adjourned such meeting and that all such instructions are during the period commencing 48 hours prior to the time for which such meeting or any adjourned such meeting is convened and ending at the conclusion or adjournment thereof neither revocable nor capable of amendment;
(C) the aggregate nominal amount of the Bearer Notes so deposited or held or blocked are listed distinguishing with regard to each such resolution between those in respect of which instructions have been given as aforesaid that the votes attributable thereto should be cast in favour of the resolution and those in respect of which instructions have been so given that the votes attributable thereto should be cast against the resolution; and
(D) one or more persons named in such document (each hereinafter called a proxy) is or are authorised and instructed by such Paying Agent to cast the votes attributable to the Bearer Notes so listed in accordance with the instructions referred to in (C) above as set out in such document;
(iii) 24 hours shall mean a period of 24 hours including all or part of a day upon which banks are open for business in both the place where the relevant meeting is to be held and in each of the places where the Paying Agents have their specified offices (disregarding for this purpose the day upon which such meeting is to be held) and such period shall be extended by one period or, to the extent necessary, more periods of 24 hours until there is included as aforesaid all or part of a day upon which banks are open for business in all of the places as aforesaid; and
(iv) 48 hours shall mean a period of 48 hours including all or part of two days upon which banks are open for business both in the place where the relevant meeting is to be held and in each of the places where the Paying Agents have their specified offices (disregarding for this purpose the day upon which such meeting is to be held) and such period shall be extended by one period or, to the extent necessary, more periods of 24 hours until there is included as aforesaid all or part of two days upon which banks are open for business in all of the places as aforesaid.
(b) A holder of a Bearer Note (whether in definitive form or represented by a Global Note) may obtain a voting certificate in respect of such Bearer Note from a Paying Agent or require a Paying Agent to issue a block voting instruction in respect of such Note by depositing such Bearer Note with such Paying Agent or (to the satisfaction of such Paying Agent) by such Bearer Note being held to its order or under its control or being blocked in an account with a clearing system, in each case not less than 48 hours before the time fixed for the relevant meeting and on the terms set out in sub-paragraph (a)(i)(A) or (a)(ii)(A) above (as the case may be), and (in the case of a block voting instruction) instructing such Paying Agent to the effect set out in sub-paragraph (a)(ii)(B) above. The holder of any voting certificate or the proxies named in any block voting instruction shall for all purposes in connection with the relevant meeting or adjourned meeting of Noteholders be deemed to be the holder of the Bearer Notes to which such voting certificate or block voting instruction relates and the Paying Agent with which such Bearer Notes have been deposited or the person holding the same to the order or under the control of such Paying Agent or the clearing system in which such Bearer Notes have been blocked shall be deemed for such purposes not to be the holder of those Bearer Notes.
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(c)
(i)
A holder of Registered Notes (whether in definitive form or represented by a Global Certificate (other than
a Registered Note referred to in (iv) below)) may, by an instrument in writing in the English language (a
form of proxy) signed by the holder or, in the case of a corporation, executed under its common seal or
signed on its behalf by an attorney or a duly authorised officer of the corporation and delivered to the
specified office of the Registrar not less than 48 hours before the time fixed for the relevant meeting,
appoint any person (a proxy) to act on his or its behalf in connection with any meeting of the Noteholders
and any adjourned such meeting.
(ii)
Any holder of Registered Notes (whether in definitive form or represented by a Global Certificate) which
is a corporation may by resolution of its directors or other governing body authorise any person to act as its
representative (a representative) in connection with any meeting of the Noteholders and any adjourned
such meeting.
(iii) Any proxy appointed pursuant to sub-paragraph (i) above or representative appointed pursuant to subparagraph (ii) above shall so long as such appointment remains in force be deemed, for all purposes in connection with the relevant meeting or adjourned meeting of the Noteholders, to be the holder of the Registered Notes to which such appointment relates and the holder of the Registered Notes shall be deemed for such purposes not to be the holder.
(iv) For so long as any of the Registered Notes is represented by a Global Certificate registered in the name of DTC or its nominee, DTC may mail an Omnibus Proxy to the relevant Issuer in accordance with and in the form used by DTC as part of its usual procedures from time to time in relation to meetings of Noteholders. Such Omnibus Proxy shall assign the voting rights in respect of the relevant meeting to DTC's direct participants as of the record date specified therein. Any such assignee participant may, by an instrument in writing in the English language signed by such assignee participant, or, in the case of a corporation, executed under its common seal or signed on its behalf by an attorney or a duly authorised officer of the corporation and delivered to the specified office of the Registrar or any Transfer Agent before the time fixed for the relevant meeting, appoint any person (a sub-proxy) to act on his or its behalf in connection with any meeting of Noteholders and any adjourned such meeting. All references to proxy or proxies in this Schedule other than in this paragraph shall be read so as to include references to "sub-proxy" or "subproxies".
2.
The Issuer or the Trustee may at any time and the Issuer shall upon a requisition in writing in the English language signed by
the holders of not less than one-tenth in nominal amount of the Notes for the time being outstanding convene a meeting of the
Noteholders and if the Issuer makes default for a period of seven days in convening such a meeting the same may be
convened by the Trustee or the requisitionists. Every such meeting shall be held at such time and place as the Trustee may
appoint or approve.
3.
At least 21 days' notice (exclusive of the day on which the notice is given and the day on which the meeting is to be held)
specifying the place, day and hour of meeting shall be given to the holders of the relevant Notes prior to any meeting of such
holders in the manner provided by Condition 14. Such notice, which shall be in the English language, shall state generally the
nature of the business to be transacted at the meeting thereby convened but (except for an Extraordinary Resolution) it shall
not be necessary to specify in such notice the terms of any resolution to be proposed. Such notice shall include statements, if
applicable, to the effect that (i) Bearer Notes may, not less than 48 hours before the time fixed for the meeting, be deposited
with Paying Agents or (to their satisfaction) held to their order or under their control or blocked in an account with a clearing
system for the purpose of obtaining voting certificates or appointing proxies and (ii) the holders of Registered Notes may
appoint proxies by executing and delivering a form of proxy in the English language to the specified
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office of the Registrar not less than 48 hours before the time fixed for the meeting or, in the case of corporations, may appoint representatives by resolution of their directors or other governing body and delivering a certified copy thereof to the specified office of the Registrar. A copy of the notice shall be sent by post to the Trustee (unless the meeting is convened by the Trustee) and to the Issuer (unless the meeting is convened by the Issuer) and to each Agent (other than the Calculation Agent).
4.
A person (who may but need not be a Noteholder) nominated in writing by the Trustee shall be entitled to take the chair at the
relevant meeting or adjourned meeting but if no such nomination is made or if at any meeting or adjourned meeting the
person nominated shall not be present within 15 minutes after the time appointed for holding the meeting or adjourned
meeting the Noteholders present shall choose one of their number to be Chairman, failing which the Issuer may appoint a
Chairman. The Chairman of an adjourned meeting need not be the same person as was Chairman of the meeting from which
the adjournment took place.
5.
At any such meeting one or more persons present holding Definitive Notes or voting certificates or being proxies or
representatives and holding or representing in the aggregate not less than one-twentieth of the nominal amount of the Notes
for the time being outstanding shall (except for the purpose of passing an Extraordinary Resolution) form a quorum for the
transaction of business and no business (other than the choosing of a Chairman) shall be transacted at any meeting unless the
requisite quorum be present at the commencement of the relevant business. The quorum at any such meeting for passing an
Extraordinary Resolution shall (subject as provided below) be one or more persons present holding Definitive Notes or
voting certificates or being proxies or representatives and holding or representing in the aggregate a clear majority in nominal
amount of the Notes for the time being outstanding.
6.
If within 15 minutes (or such longer period not exceeding 30 minutes as the Chairman may decide) after the time appointed
for any such meeting a quorum is not present for the transaction of any particular business, then, subject and without
prejudice to the transaction of the business (if any) for which a quorum is present, the meeting shall if convened upon the
requisition of Noteholders be dissolved. In any other case it shall stand adjourned to the same day in the next week (or if such
day is a public holiday the next succeeding business day) at the same time and place (except in the case of a meeting at which
an Extraordinary Resolution is to be proposed in which case it shall stand adjourned for such period, being not less than 13
clear days nor more than 42 clear days, and to such place as may be appointed by the Chairman either at or subsequent to
such meeting and approved by the Trustee). If within 15 minutes (or such longer period not exceeding 30 minutes as the
Chairman may decide) after the time appointed for any adjourned meeting a quorum is not present for the transaction of any
particular business, then, subject and without prejudice to the transaction of the business (if any) for which a quorum is
present, the Chairman may either (with the approval of the Trustee) dissolve such meeting or adjourn the same for such
period, being not less than 13 clear days (but without any maximum number of clear days), and to such place as may be
appointed by the Chairman either at or subsequent to such adjourned meeting and approved by the Trustee, and the
provisions of this sentence shall apply to all further adjourned such meetings. At any adjourned meeting one or more persons
present holding Definitive Notes or voting certificates or being proxies or representatives (whatever the nominal amount of
the Notes so held or represented by them) shall form a quorum and shall have power to pass any resolution and to decide
upon all matters which could properly have been dealt with at the meeting from which the adjournment took place had the
requisite quorum been present.
7.
Notice of any adjourned meeting at which an Extraordinary Resolution is to be submitted shall be given in the same manner
as notice of an original meeting but as if 10 were substituted for 21 in paragraph 3 above and such notice shall state the
required quorum. Subject as aforesaid it shall not be necessary to give any notice of an adjourned meeting.
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8.
Every question submitted to a meeting shall be decided in the first instance by a show of hands and in case of equality of
votes the Chairman shall both on a show of hands and on a poll have a casting vote in addition to the vote or votes (if any) to
which he may be entitled as a Noteholder or as a holder of a voting certificate or as a proxy or as a representative.
9.
At any meeting unless a poll is (before or on the declaration of the result of the show of hands) demanded by the Chairman,
the Issuer, the Trustee or any person present holding a Definitive Note of the relevant Series or a voting certificate or being a
proxy or representative (whatever the nominal amount of the Notes so held or represented by him) a declaration by the
Chairman that a resolution has been carried or carried by a particular majority or lost or not carried by a particular majority
shall be conclusive evidence of the fact without proof of the number or proportion of the votes recorded in favour of or
against such resolution.
10. Subject to paragraph 12 below, if at any such meeting a poll is so demanded it shall be taken in such manner and subject as hereinafter provided either at once or after an adjournment as the Chairman directs and the result of such poll shall be deemed to be the resolution of the meeting at which the poll was demanded as at the date of the taking of the poll. The demand for a poll shall not prevent the continuance of the meeting for the transaction of any business other than the motion on which the poll has been demanded.
11. The Chairman may with the consent of (and shall if directed by) any such meeting adjourn the same from time to time and from place to place but no business shall be transacted at any adjourned meeting except business which might lawfully (but for lack of required quorum) have been transacted at the meeting from which the adjournment took place.
12. Any poll demanded at any such meeting on the election of a Chairman or on any question of adjournment shall be taken at the meeting without adjournment.
13. The Trustee and its lawyers and any director, officer or employee of a corporation being a trustee of these presents and any director or officer of the Issuer and its or their lawyers and any other person authorised so to do by the Trustee may attend and speak at any meeting. Save as aforesaid, but without prejudice to the proviso to the definition of "outstanding" in Clause 1, no person shall be entitled to attend and speak nor shall any person be entitled to vote at any meeting of Noteholders or join with others in requesting the convening of such a meeting or to exercise the rights conferred on Noteholders by Condition 11 unless he either produces the Definitive Bearer Note or Definitive Bearer Notes of which he is the holder or a voting certificate or is a proxy or a representative or is the holder of a Registered Note or Registered Notes in definitive form. No person shall be entitled to vote at any meeting in respect of Notes held by, for the benefit of, or on behalf of, the Issuer, any Subsidiary of the Issuer (including any Retained Notes), any Holding Company of the Issuer or other Subsidiary of such Holding Company. Nothing herein shall prevent any of the proxies named in any block voting instruction or form of Proxy from being a director, officer or representative of or otherwise connected with the Issuer.
14. Subject as provided in paragraph 13 hereof at any meeting:
(a)
on a show of hands every person who is present in person and produces a Definitive Bearer Note or voting
certificate or is a holder of a Registered Note in definitive form or is a proxy or representative shall have one vote;
and
(b)
on a poll every person who is so present shall have one vote in respect of each 1.00 or such other amount as the
Trustee may in its absolute discretion stipulate (or, in the case of meetings of holders of Notes denominated in
another currency, such amount in such other currency as the Trustee in its absolute discretion may stipulate) in
nominal amount of the Definitive Bearer Notes so produced or represented by the voting certificate so produced or
133
in respect of which he is a proxy or representative or in respect of which (being a Registered Note in definitive form) he is the registered holder.
Without prejudice to the obligations of the proxies named in any block voting instruction or form of proxy any person entitled to more than one vote need not use all his votes or cast all the votes to which he is entitled in the same way.
15. The proxies named in any block voting instruction or form of proxy need not be Noteholders.
16. Each block voting instruction together (if so requested by the Trustee) with proof satisfactory to the Trustee of its due execution on behalf of the relevant Paying Agent and each form of proxy or resolution appointing a representative shall be deposited by the relevant Paying Agent (or as the case may be) by the Registrar or the relevant Transfer Agent at such place as the Trustee shall approve not less than 24 hours before the time appointed for holding the meeting or adjourned meeting at which the proxies named in the block voting instruction or form of proxy propose to vote and in default the block voting instruction or form of proxy or resolution appointing a representative shall not be treated as valid unless the Chairman of the meeting decides otherwise before such meeting or adjourned meeting proceeds to business. A certified copy of each block voting instruction or form of proxy or resolution appointing a representative shall be deposited with the Trustee before the commencement of the meeting or adjourned meeting but the Trustee shall not thereby be obliged to investigate or be concerned with the validity of or the authority of the proxies named in any such block voting instruction or form of proxy or of the representative named in such resolution.
17. Any vote given in accordance with the terms of a block voting instruction or form of proxy or resolution appointing a representative shall be valid notwithstanding the previous revocation or amendment of the block voting instruction or form of proxy or of any of the relevant Noteholders' instructions pursuant to which it was executed provided that no intimation in writing of such revocation or amendment shall have been received from the relevant Paying Agent or in the case of Registered Note from the holder thereof by the Issuer at its registered office (or such other place as may have been required or approved by the Trustee for the purpose) by the time being 24 hours before the time appointed for holding the meeting or adjourned meeting at which the block voting instruction or form of proxy is to be used.
18. A meeting of the Noteholders shall in addition to the powers hereinbefore given have the following powers exercisable only by Extraordinary Resolution (subject to the provisions relating to quorum contained in paragraphs 5 and 6 above) namely:
(a)
Power to sanction any compromise or arrangement proposed to be made between the Issuer, the Trustee, any
Appointee and the Noteholders and Couponholders or any of them.
(b)
Power to sanction any abrogation, modification, compromise or arrangement in respect of the rights of the Trustee,
any Appointee, the Noteholders, the Couponholders, the Issuer against any other or others of them or against any of
their property whether such rights shall arise under these presents or otherwise.
(c)
Power to assent to any modification of the provisions of these presents which shall be proposed by the Issuer, the
Trustee or any Noteholder.
(d)
Power to give any authority or sanction which under the provisions of these presents is required to be given by
Extraordinary Resolution.
(e)
Power to appoint any persons (whether Noteholders or not) as a committee or committees to represent the interests
of the Noteholders and to confer upon such committee or committees
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any powers or discretions which the Noteholders could themselves exercise by Extraordinary Resolution.
(f)
Power to approve of a person to be appointed a trustee and power to remove any trustee or trustees for the time
being of these presents.
(g)
Power to discharge or exonerate the Trustee and/or any Appointee from all liability in respect of any act or omission
for which the Trustee and/or such Appointee may have become responsible under these presents.
(h) Power to authorise the Trustee and/or any Appointee to concur in and execute and do all such deeds, instruments, acts and things as may be necessary to carry out and give effect to any Extraordinary Resolution.
(i)
Power to sanction any scheme or proposal for the exchange or sale of the Notes for or the conversion of the Notes
into or the cancellation of the Notes in consideration of shares, stock, notes, bonds, debentures, debenture stock
and/or other obligations and/or securities of the Issuer or any other company formed or to be formed, or for or into
or in consideration of cash, or partly for or into or in consideration of such shares, stock, notes, bonds, debentures,
debenture stock and/or other obligations and/or securities as aforesaid and partly for or into or in consideration of
cash and for the appointment of some person with the power on behalf of the Noteholders to execute an instrument
of transfer of the Registered Notes held by them in favour of the persons with or to whom the Notes are to be
exchanged or sold respectively.
19. Any resolution passed at a meeting of the Noteholders duly convened and held in accordance with these presents shall be binding upon all the Noteholders whether present or not present at such meeting and whether or not voting and upon all Couponholders and each of them shall be bound to give effect thereto accordingly and the passing of any such resolution shall be conclusive evidence that the circumstances justify the passing thereof. Notice of the result of the voting on any resolution duly considered by the Noteholders shall be published in accordance with Condition 14 by the Issuer within 14 days of such result being known PROVIDED THAT the non-publication of such notice shall not invalidate such result.
20. The expression Extraordinary Resolution when used in these presents means (a) a resolution passed at a meeting of the Noteholders duly convened and held in accordance with these presents by a majority consisting of not less than three-fourths of the persons voting thereat upon a show of hands or if a poll is duly demanded by a majority consisting of not less than three-fourths of the votes cast on such poll; or (b) a resolution in writing signed by or on behalf of all the Noteholders, which resolution in writing may be contained in one document or in several documents in like form each signed by or on behalf of one or more of the Noteholders.
21. Minutes of all resolutions and proceedings at every meeting of the Noteholders shall be made and entered in books to be from time to time provided for that purpose by the Issuer and any such minutes as aforesaid if purporting to be signed by the Chairman of the meeting at which such resolutions were passed or proceedings transacted shall be conclusive evidence of the matters therein contained and until the contrary is proved every such meeting in respect of the proceedings of which minutes have been made shall be deemed to have been duly held and convened and all resolutions passed or proceedings transacted thereat to have been duly passed or transacted.
22. (a)
If and whenever the Issuer shall have issued and have outstanding Notes of more than one Series the foregoing
provisions of this Schedule shall have effect subject to the following modifications:
135
(i)
a resolution which in the opinion of the Trustee affects the Notes of only one Series shall be deemed to
have been duly passed if passed at a separate meeting of the holders of the Notes of that Series;
(ii)
a resolution which in the opinion of the Trustee affects the Notes of more than one Series but does not give
rise to a conflict of interest between the holders of Notes of any of the Series so affected shall be deemed to
have been duly passed if passed at a single meeting of the holders of the Notes of all the Series so affected;
(iii) a resolution which in the opinion of the Trustee affects the Notes of more than one Series and gives or may give rise to a conflict of interest between the holders of the Notes of one Series or group of Series so affected and the holders of the Notes of another Series or group of Series so affected shall be deemed to
have been duly passed only if passed at separate meetings of the holders of the Notes of each Series or group of Series so affected; and
(iv) to all such meetings all the preceding provisions of this Schedule shall mutatis mutandis apply as though references therein to Notes and Noteholders were references to the Notes of the Series or group of Series in question or to the holders of such Notes, as the case may be.
(b)
If the Issuer shall have issued and have outstanding Notes which are not denominated in euro, in the case of any
meeting of holders of Notes of more than one currency, the nominal amount of such Notes shall (i) for the purposes
of paragraph 2 above be the equivalent in euro at the spot rate of a bank nominated by the Trustee for the
conversion of the relevant currency or currencies into euro on the seventh dealing day prior to the day on which the
requisition in writing is received by the Issuer and (ii) for the purposes of paragraphs 5, 6 and 14 above (whether
in respect of the meeting or any adjourned such meeting or any poll resulting therefrom) be the equivalent at such
spot rate on the seventh dealing day prior to the day of such meeting. In such circumstances, on any poll each person
present shall have one vote for each 1.00 (or such other euro amount as the Trustee may in its absolute discretion
stipulate) in nominal amount of the Notes (converted as above) which he holds or represents.
23. Subject to all other provisions of these presents the Trustee may, without the consent of the Issuer, the Noteholders or the Couponholders, prescribe such further regulations regarding the requisitioning and/or the holding of meetings of Noteholders and attendance and voting thereat as the Trustee may in its sole discretion think fit.
136
THE COMMON SEAL of VODAFONE GROUP PLC was affixed to this deed in the presence of:
SIGNATORIES
) ) ) )
Director
Secretary
THE COMMON SEAL of
)
THE LAW DEBENTURE TRUST
)
CORPORATION p.l.c. was affixed to this
)
deed in the presence of:
)
Director
Authorised Signatory 137
16 July 1999 (as amended and restated most
recently on 5 July 2019) VODAFONE GROUP PLC (formerly called Vodafone AirTouch
Plc) and THE LAW DEBENTURE TRUST CORPORATION p.l.c. relating to a 30,000,000,000 Euro Medium Term Note Programme
TRUST DEED
Allen & Overy LLP
SIGNATORIES TO THE FOURTEENTH SUPPLEMENTAL TRUST DEED
EXECUTED as a DEED by
)
for and of behalf of
)
VODAFONE GROUP PLC
)
in the presence of:
)
Witness:
Name:
Address:
THE COMMON SEAL of THE LAW DEBENTURE TRUST CORPORATION p.l.c. was affixed to this deed in the presence of:
) ) ) ) )
Director
Authorised Signatory
SIGNATORIES TO THE FOURTEENTH SUPPLEMENTAL TRUST DEED
EXECUTED as a DEED by
)
for and of behalf of
)
VODAFONE GROUP PLC
)
in the presence of:
)
Witness: Name: Address:
THE COMMON SEAL of
)
THE LAW DEBENTURE TRUST
)
CORPORATION p.l.c.
)
was affixed to this deed
)
in the presence of:
)
Director Authorised
5 JULY 2019 VODAFONE GROUP PLC
and THE LAW DEBENTURE TRUST
CORPORATION p.l.c. further modifying and restating the
provisions of the Trust Deed dated 16 July 1999
relating to a 30,000,000,000 Euro Medium Term Note Programme
FOURTEENTH SUPPLEMENTAL
TRUST DEED
Allen & Overy LLP
Exhibit 2.7
Fees payable by ADR Holders
Deutsche Bank, as depositary, collects its fees for delivery and surrender of ADRs directly from investors depositing shares or surrendering ADRs for the purpose of withdrawal or from intermediaries acting for them. The depositary collects fees for making distributions to investors, including in connection with the payment of dividends, by deducting those fees from the amounts distributed or by selling a portion of distributable property to pay the fees. The depositary may generally refuse to provide fee-attracting services until its fees for those services are paid.
Persons depositing or withdrawing shares must pay:
$5.00 (or less) per 100 ADRs (or portion of 100 ADRs)
For:
- Issuance of ADRs, including issuances resulting from a distribution of shares or rights or other property, and distributions of ADRs pursuant to stock dividends or other free distributions
· Surrender of ADRs for withdrawal of deposited securities or ADR cancellation or reduction, including if the deposit agreement terminates
$5.00 (or less) per 100 ADRs (or portion thereof). The current per · Any cash distribution to ADR registered holders ADR fee to be charged for an interim dividend is $0.0125 per ADR and for a final dividend is $0.0125 per ADR.
$ 5.00 (or less) per 100 ADRs (or portion thereof)
- An annual fee for the operation and maintenance of administering the ADRs. This fee is not currently charged.
A fee equivalent to the fee that would be payable if securities distributed to you had been shares and the shares had been deposited for issuance of ADRs
· Distribution of securities distributed to holders of deposited securities which are distributed by the depositary to ADR registered holders
Registration or transfer fees
· Transfer and registration of shares on our share register to or from the name of the
depositary or its agent when you deposit or withdraw shares
Expenses of the depositary
· Cable, telex, facsimile transmissions and delivery expenses (when expressly provided in the deposit agreement)
· Converting foreign currency to US dollars
Taxes and other governmental charges that the depositary or the custodian must pay on any ADR or share underlying an ADR, for example, stock transfer taxes, stamp duty or withholding taxes,
exchange control regulations or other applicable regulatory requirements.
· As necessary
Any charges incurred by the depositary or its agents for servicing shares, deposited securities or ADRs, selling securities, or delivering deposited securities, or otherwise in connection with compliance with applicable law, rule or regulation
· As necessary
Fees Payable by the Depositary to the Issuer
We have agreed with the depositary that all dividend fees, issuance fees and cancellation fees collected by it will be paid to us, as set out in the table above, net of certain agreed third party expenses relating to the operation of the ADR program and Deutsche Bank's annual management fee.
During the financial year (April 1, 2019 through March 31, 2020), we received approximately $10.3 million from Deutsche Bank, in respect of dividends and issuance and cancellation of ADRs during the year.
2
Exhibit 2.8
DESCRIPTION OF SECURITIES REGISTERED UNDER SECTION 12 OF THE EXCHANGE ACT
As of March 31, 2020, Vodafone Group Plc ("Vodafone", the "Company") had the following securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934 (the "Exchange Act"):
Title of each class
Ordinary shares of 20 20/21 US cents each American Depositary Shares (evidenced by American Depositary Receipts) each representing ten ordinary shares 2.500% Notes due September 2022 2.950% Notes due February 2023 3.750% Notes due 16 January 2024 US$1,000,000,000 Floating Rate Notes due 16 January 2024 4.125% Notes due 30 May 2025 4.375% Notes due 30 May 2028 6.250% Notes due February 2032 6.150% Notes due February 2037 5.000% Notes due 30 May 2038 4.375% Notes due February 2043 5.250% Notes due 30 May 2048 4.875% Notes due 19 June 2049 4.250% Notes due 17 September 2050 5.125% Notes due 19 June 2059 Capital Securities due April 2079
Trading symbols
VOD VOD
VOD22 VOD23 VOD24 VOD24A VOD25 VOD28 VOD32 VOD37 VOD38 VOD43 VOD48 VOD49 VOD50 VOD59 VOD79
Name of each exchange on which registered
NASDAQ Global Select Market* NASDAQ Global Select Market
The NASDAQ Stock Market The NASDAQ Stock Market The NASDAQ Stock Market The NASDAQ Stock Market The NASDAQ Stock Market The NASDAQ Stock Market The NASDAQ Stock Market The NASDAQ Stock Market The NASDAQ Stock Market The NASDAQ Stock Market The NASDAQ Stock Market The NASDAQ Stock Market The NASDAQ Stock Market The NASDAQ Stock Market The NASDAQ Stock Market
* Not for trading, but only in connection with the registration of American Depositary Shares pursuant to the requirements of the Securities and Exchange Commission.
The Company's ordinary shares, nominal value of 20 20/21 US cents each ("Vodafone Ordinary Shares"), are listed on the premium segment of the main market of the London Stock Exchange plc (the "LSE"). The Company's American Depositary Shares ("Vodafone ADSs") are available through an American Depositary Receipt program established pursuant to a deposit agreement (the "Deposit Agreement") that the Company entered into with Deutsche Bank Trust Company Americas, as depositary (the "Depositary"). Vodafone ADSs, each representing ten Vodafone Ordinary Shares, are listed on the NASDAQ Global Select Market, traded under the symbol VOD, and are registered under Section 12(b) of the Securities Exchange Act of 1934 (the "Exchange Act"). In connection with this listing (but not for trading), the Vodafone Ordinary Shares are registered under Section 12(b) of the Exchange Act. The following contains a description of the rights of (i) holders of the Vodafone Ordinary Shares and (ii) Vodafone ADS holders.
The following summary is subject to and qualified in its entirety by the Company's Articles of Association and by English law. This is not a summary of all the significant provisions of the Articles of Association or of English law and does not purport to be complete. Capital terms used but not defined herein have the meanings given to them in the Company's Annual Report on Form 20-F for
1
the fiscal year ended March 31, 2020 and in the Deposit Agreement, which is an exhibit to the Company's registration statement on Form 20-F filed with the SEC on June 9, 2017.
Vodafone Ordinary Shares
Item 9.A.3 Pre-emptive rights
Under section 549 of the Companies Act 2006, Directors are, with certain exceptions, unable to allot Vodafone Ordinary Shares or securities convertible into Vodafone Ordinary Shares without the authority of Vodafone Shareholders ("Vodafone Shareholders") in a general meeting. In addition, section 561 of the Companies Act 2006 imposes further restrictions on the issue of equity securities (as defined in the Companies Act 2006, which include Vodafone Ordinary Shares and securities convertible into Vodafone Ordinary Shares) which are, or are to be, paid up wholly in cash and not first offered to existing Vodafone Shareholders. The Company's Articles of Association allow Vodafone Shareholders to authorize Directors for a period specified in the relevant resolution to allot (i) relevant securities generally up to an amount fixed by the Vodafone Shareholders; and (ii) equity securities for cash other than in connection with a pre-emptive offer up to an amount specified by the Vodafone Shareholders and free of the pre-emption restriction in section 561. At the 2019 AGM the amount of relevant securities fixed by Vodafone Shareholders under (i) above and the amount of equity securities specified by Vodafone Shareholders under (ii) above were in line with the Pre-Emption Group's Statement of Principles.
Item 9.A.5 Type and class of securities
Vodafone Ordinary Shares are listed on the London Stock Exchange and have a nominal value of 20 20/21 US cents each. All Ordinary Shares are issued in registered form. As at March 31, 2020, the total number of outstanding Vodafone Ordinary Shares was 28,815,914,978.
As far as the Company is aware, there are no limitations imposed on the transfer, holding or voting of Vodafone Ordinary Shares other than those limitations that would generally apply to all of the Vodafone Shareholders, those that apply by law (e.g. due to insider dealing rules) or those that apply as a result of failure to comply with a notice under section 793 of the Companies Act 2006.
Item 9.A.6 Limitations or qualifications
No shareholder has any securities carrying special rights with regard to control of the Company. The Company is not aware of any agreements between holders of securities that may result in restrictions on the transfer of securities.
Item 9.A.7 Other rights Not applicable.
Item 10.B.3 Shareholder rights Dividend rights
Vodafone Shareholders may, by ordinary resolution, declare dividends but may not declare dividends in excess of the amount recommended by the Directors. The Board of Directors may also pay interim dividends. No dividend may be paid other than out of profits available for distribution. Dividends on Vodafone Ordinary Shares can be paid to Vodafone Shareholders in whatever country the Directors decide, using an appropriate exchange rate for any currency conversions which are required.
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If a dividend has not been claimed for one year after the date of the resolution passed at a general meeting declaring that dividend or the resolution of the Directors providing for payment of that dividend, the Directors may invest the dividend or use it in some other way for the benefit of the Company until the dividend is claimed. If the dividend remains unclaimed for 12 years after the relevant resolution either declaring that dividend or providing for payment of that dividend it will be forfeited and belong to the Company.
Voting rights
At a general meeting of the Company, when voting on substantive resolutions (i.e. any resolution which is not a procedural resolution) each holder of a Vodafone Ordinary Share who is entitled to vote and is present in person or by proxy has one vote for every Vodafone Ordinary Share held (a poll vote). Procedural resolutions (such as a resolution to adjourn a general meeting or a resolution on the choice of Chairman of a general meeting) are decided on a show of hands, where each holder of Vodafone Ordinary Shares who is present at the meeting has one vote regardless of the number of Vodafone Ordinary Shares held, unless a poll is demanded. Shareholders entitled to vote at general meetings may appoint proxies who are entitled to vote, attend and speak at general meetings.
Two Vodafone Shareholders present in person or by proxy constitute a quorum for purposes of a general meeting of the Company.
Under English law, Vodafone Shareholders of a public company such as the Company are not permitted to pass resolutions by written consent.
Employees who hold Vodafone Ordinary Shares in a vested nominee share account are able to vote through the respective plan's trustees. Note there is now a vested share account with Computershare (in respect of Vodafone Ordinary Shares arising from a SAYE exercise) and Equatex (MyShareBank).
Under the Company's Articles of Association, a Director cannot vote in respect of any proposal in which the Director, or any person connected with the Director, has a material interest other than by virtue of the Director's interest in the Company's shares or other securities.
The voting rights of the Directors (Executive and Non-Executive) and employees of the Company who hold interests in the share capital of the Company are the same as for other holders of the class of share indicated. At each AGM, all Directors must offer themselves for re-election (unless they are retiring) in accordance with the Company's Articles of Association and in the interests of good corporate governance.
Rights to share in the company's profits
See "Item 10.B.3. Shareholder rights--Dividend rights" above.
Rights to share in any surplus in the event of liquidation
In the event of the liquidation of the Company, after payment of all liabilities and deductions in accordance with English law, the holders of the Company's 7% cumulative fixed rate shares would be entitled to a sum equal to the capital paid up on such shares, together with certain dividend payments, in priority to holders of Vodafone Ordinary Shares.
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Redemption provisions
Under its Articles of Association, the Company is authorized to reduce (or purchase shares in) its capital of any class or classes. Class rights are deemed not to have been varied by the creation or issue of new shares ranking equally with or subsequent to that class of shares in sharing in profits or assets of the Company or by a redemption or repurchase of the shares by the Company.
Sinking fund provisions Not applicable.
Liability to further capital calls by the company
Under the Articles of Association, the directors can call on Vodafone Shareholders to pay any money which has not yet been paid to the Company for their Vodafone Ordinary Shares. This includes both the nominal value of the Vodafone Ordinary Shares and any premium which may be payable. The terms of issue of the Vodafone Ordinary Shares govern the procedure related to calls. A call is treated as having been made as soon as the directors pass a resolution authorizing it.
A Vodafone Shareholder who has received at least 14 days' notice giving details of the amount of a capital call, the time (or times) and place or address for payment must pay the call as required by the notice. Joint shareholders are liable jointly and severally to pay any money called for in respect of their Vodafone Ordinary Shares. A Vodafone Shareholder due to pay the amount called shall still have to pay the call even if, after the call was made, they transfer the Vodafone Ordinary Shares to which the call related.
Any provision discriminating against any existing or prospective holder of the Ordinary Shares as a result of such shareholder owning a substantial number of shares
Not applicable.
Item 10.B.4. Changes to shareholder rights
If at any time the Company's share capital is divided into different classes of shares, the rights attached to any class may be varied or abrogated by a special resolution, subject to the provisions of the Companies Act 2006, either with the consent in writing of the holders of three quarters in nominal value of the shares of that class or at a separate meeting of the holders of the shares of that class.
At every such separate meeting all of the provisions of the Articles of Association relating to proceedings at a general meeting apply, except that (i) the quorum is to be the number of persons (which must be at least two) who hold or represent by proxy not less than one third in nominal value of the issued shares of the class or, if such quorum is not present on an adjourned meeting, one person who holds shares of the class regardless of the number of shares he holds; (ii) any person present in person or by proxy may demand a poll; and (iii) each shareholder will have one vote per share held in that particular class in the event a poll is taken. Class rights are deemed not to have been varied by the creation or issue of new shares ranking equally with or subsequent to that class of shares in sharing in profits or assets of the Company or by a redemption or repurchase of the shares by the Company.
Item 10.B.6 Limitations
The Company's constitutional documents place no limitations on the right to hold Vodafone Ordinary Shares. There are no limitations on the right to hold or exercise voting rights on the Vodafone Ordinary Shares under English law.
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Item 10.B.7 Change in control
The Company's Articles of Association do not contain any provisions that would have the effect of delaying, deferring or preventing a change in control of the Company and that would operate only with respect to a merger, acquisition or corporate restructuring involving the Company (or any of its subsidiaries).
Item 10.B.8 Disclosure of shareholdings
There are no provisions in the Articles of Association whereby persons acquiring, holding or disposing of a certain percentage of the Company's shares are required to make disclosure of their ownership percentage although such requirements exist under the Disclosure Guidance and Transparency Rules. Under these rules, the Company must disclose the holders of more than 3% of, or 3% of voting rights attributable to, the Company's ordinary share capital of which it is made aware.
Item 10.B.9 Differences in the law
With respect to Items 10.B.2-10.B.8, there are no significant differences between the laws applicable to the Company and English law.
Item 10.B.10 Changes in capital
The requirements imposed by the Company's Articles of Association governing changes in capital are not more stringent than is required by law.
Item 12.A Debt securities
Not applicable.
Item 12.B Warrants and Rights
Not applicable.
Item 12.C Other securities
Not applicable.
Vodafone American Depositary Shares
Item 12.D.1 Name and address of depositary
Deutsche Bank Trust Company Americas, having its principal office at 60 Wall Street, New York, New York 10005, has been appointed as the Depositary under the Deposit Agreement, dated as of February 27, 2017, among the Company, the Depositary and all holders from time to time of the Vodafone ADSs ("Vodafone ADS Holders") issued thereunder. Deutsche Bank AG, London Branch, having its principal office at Winchester House, 1 Great Winchester Street, London EC2N 2DB, has been appointed as the custodian (the "Custodian") under the Deposit Agreement.
12.D.2 Description of Vodafone ADSs
The following is a summary of the material provisions of the Deposit Agreement. For more complete information, you should read the Deposit Agreement in its entirety.
The Deposit Agreement sets forth the rights and obligations of Holders and Beneficial Owners of Vodafone ADSs and the rights and duties of the Depositary in respect of the Vodafone Ordinary Shares deposited thereunder and any and all other securities, property and cash from time to time received in respect of such Vodafone Ordinary Shares and held thereunder (the "Deposited
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Securities"). Each Vodafone ADS represents an ownership interest in ten Vodafone Ordinary Shares and is evidenced by an American depositary receipt ("Vodafone ADR").
Voting of Vodafone ADSs
As soon as practicable after receipt of notice from the Company of any meeting of, or solicitation of consents or proxies from, Vodafone Shareholders underlying the Vodafone ADSs, and upon written request by the Company received by the Depositary at least 30 days before the vote or meeting, the Depositary will fix a record date for Vodafone ADS Holders and arrange to deliver certain materials to Vodafone ADS Holders relating to the upcoming meeting or solicitation. The materials will contain:
x such information as is contained in the notice of meeting or solicitation of consents or proxies received by the Depositary from the Company;
x a statement that the Vodafone ADS Holders as of the close of business on a specified record date will be entitled, subject to any applicable law and the Company's Articles of Association, and the provisions of or governing the Vodafone Ordinary Shares (or any other securities, property or cash underlying the Vodafone ADS Holders' Vodafone ADSs), to give instructions to the Depositary as to the exercise of the voting rights, if any, pertaining to the Vodafone Ordinary Shares underlying the Vodafone ADSs; and
x a statement as to the manner in which such instructions and notification may be given.
In lieu of distributing the materials received from the Company in connection with the meeting of, or solicitation of consents or proxies from, Vodafone Shareholders underlying the Vodafone ADSs, the Depositary may, to the extent not prohibited by applicable law, regulations or stock exchange requirements, distribute to the Vodafone ADS Holders a notice with instructions on how to retrieve or request such materials.
A Vodafone ADS Holder must hold Vodafone ADSs on the record date established by the Depositary in order to be eligible to give instructions for the exercise of voting rights at a meeting of shareholders. It is possible that the record date the Company uses for the exercise of voting rights on the Vodafone Ordinary Shares, on the one hand, and the record date used by the Depositary for the exercise of voting rights relating to the Vodafone Ordinary Shares underlying the Vodafone ADSs, on the other hand, may not be the same.
For voting instructions to be valid, the Depositary must receive them on or before the date specified in the materials delivered to Vodafone ADS Holders. The Depositary will, to the extent practicable, endeavor to vote or cause to be voted the underlying Vodafone Ordinary Shares in accordance with each Vodafone ADS Holder's instructions. The Depositary will not vote the underlying Vodafone Ordinary Shares other than in accordance with the Vodafone ADS Holder's instructions.
Persons who hold Vodafone ADSs through a brokerage account or otherwise in "street name" will need to follow the procedures of their broker in order to give voting instructions to the Depositary.
In connection with a Vodafone Shareholders' meeting, the Company and the Depositary will not be able to assure that Vodafone ADS Holders will receive the voting materials in time to ensure that such holders can either instruct the Depositary to vote the Vodafone Ordinary Shares underlying the Vodafone ADSs or withdraw the underlying Vodafone Ordinary Shares to vote them in person or by
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proxy. In addition, except as provided under applicable English law, the Depositary and its agents will not be responsible for failing to carry out voting instructions or for the manner in which any such vote is cast or the effect of any such vote.
The Depositary will have no obligation to take any action with respect to any meeting of, or solicitation of consents or proxies from, Vodafone Shareholders if such action would violate U.S. laws.
Neither the Depositary nor the Custodian will under any circumstances exercise any discretion as to voting, and neither the Depositary nor the Custodian will vote, attempt to exercise the right to vote, or in any way make use of the Vodafone Ordinary Shares (or any other securities, property or cash underlying the Vodafone ADS Holders' Vodafone ADSs) for purposes of establishing a quorum or otherwise, except pursuant to and in accordance with written instructions from Vodafone ADS Holders or the provisions of the Deposit Agreement.
Dividends and Distributions
The Depositary will pay to Vodafone ADS Holders, as of a record date established by the Depositary under the terms of the Deposit Agreement, the cash dividends or other distributions it receives in respect of the Vodafone Ordinary Shares underlying such Vodafone ADS Holders' Vodafone ADSs, after deducting its fees and expenses. Vodafone ADS Holders will receive these distributions in proportion to the number of Vodafone Ordinary Shares represented by the Vodafone ADSs held by each of them.
Distributions in Cash
The Depositary will, as promptly as practicable, convert any cash dividend or distribution the Company pays on the Vodafone Ordinary Shares, other than any dividend or distribution paid in U.S. dollars, into U.S. dollars if it can effect such conversion and transfer the U.S. dollars to the United States on a practicable basis. At any time, the Depositary may, in its discretion, hold the excess amount of foreign currency uninvested as an additional cost of conversion and without liability for interest thereon for the respective accounts of the Vodafone ADS Holders. In the event that the Company or the Depositary is required to withhold and does withhold taxes or other governmental charges from such cash dividend or other cash distribution, the amount to be distributed to the Vodafone ADS Holders will be reduced accordingly. The Depositary will distribute only whole U.S. dollars and cents and will round any fractional amounts to the nearest whole cent.
Distributions in Shares
If any distribution consists of a dividend paid in, or a free distribution of, Vodafone Ordinary Shares, the Depositary may or will, if the Company so requests, distribute additional Vodafone ADSs representing any Vodafone Ordinary Shares that the Company so distributes as a dividend or free distribution, subject to the terms and conditions set forth in the Deposit Agreement. The Depositary will only distribute whole Vodafone ADSs. In lieu of delivering fractional Vodafone ADSs, the Depositary will sell the number of Vodafone Ordinary Shares represented by the aggregate of such fractions and distribute the net proceeds to the Vodafone ADS Holders entitled thereto. The Depositary may withhold the distribution of Vodafone ADSs if it has not received satisfactory assurances from the Company (including a legal opinion) that such distribution does not require
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registration under the Securities Act or is exempt from registration under the provisions of the Securities Act. If a distribution of additional Vodafone ADSs is withheld, the Depositary may sell all or part of such distribution in such amounts and in such manner as the Depositary deems necessary and practicable and distribute the net proceeds of any such sale (after deducting applicable taxes and/or governmental charges and fees and charges of, and expenses incurred by, the Depositary) to the Vodafone ADS Holders entitled thereto.
Elective Distributions in Cash or Shares
If the Company intends to make a distribution payable at the election of Vodafone Shareholders in cash or in additional Vodafone Ordinary Shares, the Depositary will, if the Company has timely requested that such elective distribution be made available to Vodafone ADS Holders, and if the Depositary has determined that such distribution is reasonably practicable and has received satisfactory legal opinions relating to such distribution, establish procedures to enable Vodafone ADS Holders to elect to receive the proposed dividend in cash or in additional Vodafone ADSs as described in the Deposit Agreement. If the conditions for an elective distribution are not satisfied, the Depositary will, to the extent permitted by law, distribute to Vodafone ADS Holders, on the basis of the same determination as is made in the local market in respect of Vodafone Ordinary Shares for which no election is made, either cash or additional Vodafone ADSs representing such additional Vodafone Ordinary Shares in the manner described in the Deposit Agreement. The Depositary will have no obligation to make any process available to Vodafone ADS Holders to receive the elective dividend in Vodafone Ordinary Shares rather than Vodafone ADSs. There can be no assurances that Vodafone ADS Holders will have the opportunity to receive elective distributions on the same terms as the holders of Vodafone Ordinary Shares.
Distribution of Rights to Receive Additional Shares
If the Company intends to distribute to Vodafone Shareholders rights to subscribe for additional Vodafone Ordinary Shares, the Depositary will, if the Company has given notice of at least 60 days that such rights be made available to Vodafone ADS Holders, make such rights available to Vodafone ADS Holders if, among other conditions, the Depositary has determined that such distribution of rights is reasonably practicable and has received satisfactory legal opinions relating to such distribution. If the conditions for making such rights available to Vodafone ADS Holders are satisfied, the Depositary will establish procedures to distribute rights to purchase additional Vodafone ADSs, to enable Vodafone ADS Holders to exercise such rights (upon payment of the subscription price and of applicable fees and charges of, and expenses incurred by, the Depositary and applicable taxes) and to deliver Vodafone ADSs upon the valid exercise of such rights. If the conditions for making such rights available to Vodafone ADS Holders are not satisfied or if the Company requests that the rights not be made available to Vodafone ADS Holders, or if any rights are not exercised and appear to be about to lapse, the Depositary will (i) endeavor to sell the rights in the manner described in the Deposit Agreement if it is lawful and reasonably practicable to do so, and distribute the proceeds of such sale (net of applicable fees and charges of, and expenses incurred by, the Depositary and taxes) to the Vodafone ADS Holders or (ii) if timing and market conditions do not permit such sale, if the Depositary determines that it is not lawful and reasonably practicable to sell such rights, or if the Depositary is unable to arrange for such sale, allow such rights to lapse. A liquid market for such rights may not exist, and this may adversely affect the ability of the Depositary to dispose of such rights or the amount the Depositary would realize upon disposal of
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rights. The Depositary will have no obligation to make any process available to Vodafone ADS Holders to exercise rights to subscribe for Vodafone Ordinary Shares rather than Vodafone ADSs.
Neither the Depositary nor the Company will be responsible for any failure to determine whether it is lawful or practicable to make rights available to Vodafone ADS Holders (provided that the determination of practicability must have been made without bad faith), and neither the Depositary nor the Company will be responsible for any foreign exchange exposure or loss incurred in connection with the sale or disposal of such rights. The Depositary will not be responsible for the content of any materials forwarded to the Vodafone ADS Holders on behalf of the Company in connection with the rights distribution.
If registration of the rights, or the securities to which any rights relate, may be required under the Securities Act or any other applicable law in order for the Company to offer such rights or such securities to Vodafone ADS Holders and to sell the securities represented by such rights, the Depositary will not distribute such rights to Vodafone ADS Holders (i) unless and until a registration statement under the Securities Act or other applicable law covering such offering is in effect or (ii) unless the Company furnishes the Depositary opinion(s) of counsel in the United States and any other applicable country in which rights would be distributed, in each case reasonably satisfactory to the Depositary, to the effect that the offering and sale of such securities to Vodafone ADS Holders and beneficial owners are exempt from, or do not require registration under, the provisions of the Securities Act or any other applicable law.
If the Company fails to give the Depositary timely notice of a proposed distribution of rights, the Depositary will use commercially reasonable efforts to perform the actions described above, and the Depositary will have no liability for its failure to perform such actions where such notice has not been so timely given, other than its failure to use commercially reasonable efforts.
There can be no assurances that Vodafone ADS Holders will have the opportunity to receive or exercise rights on the same terms and conditions as the Vodafone Shareholders or be able to exercise such rights.
Distributions Other Than Cash, Shares or Rights
If the Company intends to distribute property other than cash, Vodafone Ordinary Shares or rights to purchase additional Vodafone Ordinary Shares, the Depositary will, if the Company has timely requested (at least 30 days' notice) the Depositary to make such distribution to Vodafone ADS Holders, and if the Depositary has, after consultation with the Company, determined that such distribution is reasonably practicable and has received satisfactory legal opinions relating to such distribution, as promptly as reasonably practicable distribute the property to Vodafone ADS Holders in such manner as the Depositary may deem reasonably practicable. The distribution will be made net of applicable fees and charges of, and expenses incurred by, the Depositary, and net of any taxes withheld. The Depositary may dispose of all or a portion of the property in such manner as the Depositary may deem reasonably practicable or necessary to pay its fees, charges and expenses in respect of such distribution and disposal and to satisfy any taxes or other governmental charges applicable to the distribution. If the conditions for a distribution of the property are not satisfied, the Depositary will endeavor to sell the property in a public or private sale, at such place or places and upon such terms as it may deem reasonably practicable. The proceeds of such sale (net of applicable fees and charges of, and expenses incurred by, the
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Depositary and taxes) will be distributed to Vodafone ADS Holders. If the Depositary is unable to sell the property, the Depositary may dispose of such property for the account of the Vodafone ADS Holders in any way the Depositary deems reasonably practicable under the circumstances, including for nominal or no consideration.
Neither the Depositary nor the Company will be responsible for any failure to determine whether it is lawful or practicable to make property available to Vodafone ADS Holders (provided that the determination of practicability must have been made without bad faith), and neither the Depositary nor the Company will be responsible for any foreign exchange exposure or loss incurred in connection with the sale or disposal of such property.
Reports and Other Communications
If the Company delivers notice of any meeting of Shareholders or of any action in respect of any cash or other distributions or the offering of any rights relating to Vodafone Ordinary Shares, the Company will deliver a copy of such notice to the Depositary and the Custodian. The Company will arrange for translation into English, to the extent required pursuant to any regulations of the SEC, of any notices that are made generally available to the Vodafone Shareholders. At the Company's request and expense, the Depositary will, as promptly as practicable, distribute copies of such notices to the Vodafone ADS Holders.
The Depositary will also make available for inspection by Vodafone ADS Holders at its principal office any written communications from the Company that are both (i) delivered to the Depositary or the Custodian and (ii) made generally available to the Holders of Ordinary Shares. The Company will furnish these communications in English when so required by any rules or regulations of the SEC. The Depositary will send copies of such communications when furnished by the Company as described in the immediately preceding paragraph.
Books of Depositary
The Depositary will maintain at its principal office a register for the registration and transfer of Vodafone ADSs. Vodafone ADS Holders may inspect such records at such office at reasonable times, but solely for the purpose of communicating with other Vodafone ADS Holders in the interest of business matters relating to the Company, the Vodafone ADSs or the Deposit Agreement. Such register may be closed from time to time when deemed expedient by the Depositary in connection with the performance of its duties under the Deposit Agreement or at the request of the Company. The Depositary will also maintain facilities to record and process the issuance, delivery, registration, transfer and surrender of Vodafone ADSs in accordance with the provisions of the Deposit Agreement.
Reclassifications, Recapitalizations and Mergers
If there is (i) any change in par value, split-up, subdivision cancellation, consolidation or any other reclassification of Vodafone Ordinary Shares underlying the Vodafone ADSs or (ii) any recapitalization, reorganization, merger, amalgamation or consolidation or sale of assets affecting the Company or to which it is a party, then any securities, cash or property received by the Depositary or the Custodian in exchange for or in conversion of the underlying Vodafone Ordinary Shares will, to the extent permitted by law, be treated as new underlying deposited securities, cash or property
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under the Deposit Agreement, and the Vodafone ADSs will thereafter represent, in addition to the existing underlying Vodafone Ordinary Shares, the right to receive the new deposited securities, cash or property so received in exchange or conversion.
The Depositary may, with the Company's approval and subject to the terms of the Deposit Agreement and the Depositary's receipt of an opinion satisfactory to it that such action is not in violation of any applicable laws or regulations, execute and deliver additional Vodafone ADSs as in the case of a dividend paid in Vodafone Ordinary Shares or call for the surrender of outstanding Vodafone ADSs to be exchanged for new Vodafone ADSs. If the new underlying deposited securities received cannot be lawfully distributed to some or all Vodafone ADS Holders, the Depositary may, subject to receipt of an opinion satisfactory to it that such action is not in violation of any applicable laws or regulations, sell such securities at such place or places and upon such terms as it may deem proper and distribute the proceeds (net of fees and charges of, and expenses incurred by, the Depositary and taxes and/or governmental charges) to the Vodafone ADS Holders on an averaged or other practicable basis. The Depositary is not responsible for (i) any failure to determine that it may be lawful or feasible to make such securities available to Vodafone ADS Holders in general or to any holder particular, (ii) any foreign exchange exposure or loss incurred in connection with such sale or (iii) any liability to the purchaser of such securities.
Amendment and Termination of the Deposit Agreement Amendments
The Company may agree with the Depositary to amend or restate the Deposit Agreement and the Vodafone ADRs without the consent of Vodafone ADS Holders in any respect which they may deem necessary or desirable. If the amendment or restatement imposes or increases fees or charges (except for taxes and governmental charges, registration fees, cable, telex or fax transmission costs, delivery costs or other such expenses) or otherwise prejudices any substantial existing right of Vodafone ADS Holders, it will only become effective three months after notice of such amendment or restatement has been given to Vodafone ADS Holders. Under the Deposit Agreement, notice of any amendment or restatement to the Deposit Agreement or any Vodafone ADR need not describe in detail the specific amendments effectuated thereby, and failure to describe the specific amendments in any such notice will not render such notice invalid so long as, in each such case, the notice given to the Vodafone ADS Holders identifies a means for such holders to retrieve or receive the text of such amendment or restatement. At the time an amendment or restatement becomes effective, a Vodafone ADS Holder is considered, by continuing to hold Vodafone ADSs, to have agreed to the amendment or restatement and to be bound by the Deposit Agreement as amended. However, if any governmental body adopts new laws, rules or regulations requiring an amendment or restatement of the Deposit Agreement to comply therewith, the Company and the Depositary may amend the Deposit Agreement and any Vodafone ADRs, which amendment or restatement may become effective before a notice of such amendment or restatement is given to Vodafone ADS Holders. However, no amendment or restatement will impair a Vodafone ADS Holder's right to receive the Vodafone Ordinary Shares (or any other securities, property or cash) underlying such holder's Vodafone ADSs in exchange for such holder's Vodafone ADSs, except in order to comply with applicable provisions of any mandatory laws.
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Termination
The Deposit Agreement will be terminated by the Depositary if the Company asks it to do so, in which case the Depositary must notify Vodafone ADS Holders at least 90 days before termination. If at any time after 90 days have expired since (y) the Company has delivered a notice of removal to the Depositary or (z) the Depositary has delivered to the Company a written notice of its election to resign and, in either case, a successor depositary has not been appointed by the Company and accepted its appointment, the Depositary may terminate the Deposit Agreement by mailing notice of such termination to the Vodafone ADS Holders then outstanding at least 30 days before termination.
If any Vodafone ADSs remain outstanding after termination, (i) the Vodafone ADS Holders will be entitled to receive the underlying securities upon surrender of the Vodafone ADSs and payment of all fees, expenses, taxes and governmental charges, and (ii) the Depositary will stop registering the transfer of Vodafone ADSs, will stop distributing dividends to Vodafone ADS Holders, and will not give any further notices or do anything else under the Deposit Agreement other than:
x collect dividends and distributions on the Vodafone Ordinary Shares (or any other securities, property or cash) underlying the Vodafone ADSs;
x sell rights and other properties received in respect of Vodafone Ordinary Shares (or any other securities, property or cash) underlying the Vodafone ADSs as provided in the Deposit Agreement; and
x deliver the Vodafone Ordinary Shares (or any other securities, property or cash) underlying the Vodafone ADSs, together with any dividends or other distributions received with respect thereto and the net proceeds of the sale of any rights or other property, in exchange for the Vodafone ADSs surrendered to the Depositary (after deducting, in each case, the fee of the Depositary for the surrender of Vodafone ADSs, any expenses for the account of the Vodafone ADS Holder in accordance with the terms of the Deposit Agreement, and any applicable taxes or governmental charges).
At any time after six months from the date of termination of the Deposit Agreement, the Depositary may sell any remaining deposited Vodafone Ordinary Shares (or any other securities, property or cash) underlying Vodafone ADSs. After that, the Depositary will hold the money it received on the sale, as well as any cash it is holding under the Deposit Agreement, unsegregated for the pro rata benefit of the Vodafone ADS Holders that have not surrendered their Vodafone ADSs. The Depositary will not invest the money and has no liability for interest. After making such sale, the Depositary's only obligations to Vodafone ADS Holders will be to account for the money and cash (net of all applicable fees, expenses, taxes and governmental charges payable by Vodafone ADS Holders under the terms of the Deposit Agreement). After termination, the Company's only obligations will be with respect to indemnification of, and to pay specified amounts to, the Depositary. The obligations under the terms of the Deposit Agreement of Vodafone ADS Holders outstanding as of the termination date will survive the termination date and will be discharged only when the applicable Vodafone ADSs are presented by their Vodafone ADS Holders to the Depositary for cancellation and such Vodafone ADS Holder has satisfied all of its obligations under the terms of the Deposit Agreement.
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Withdrawal and Cancellation
A Vodafone ADS Holder may withdraw the Vodafone Ordinary Shares (or any other securities, property or cash) underlying such holder's Vodafone ADSs upon surrender of such holder's Vodafone ADSs for such purpose to the Depositary. Upon payment of the Depositary's fees and of any taxes and governmental charges payable in connection with such surrender and withdrawal, and subject to the terms and conditions of the Deposit Agreement, the Company's constituent documents, any other provisions of or governing the Vodafone Ordinary Shares (or any other securities, property or cash underlying the holder's Vodafone ADSs), and other applicable laws, any deposited Vodafone Ordinary Shares (or any other securities, property or cash) underlying such holder's Vodafone ADSs that have been surrendered to the Depositary will be delivered, as promptly as practicable, to such Vodafone ADS Holder at the office of the Custodian or through book-entry delivery of the amount of Vodafone Ordinary Shares represented by the Vodafone ADSs surrendered to the Depositary, except that the Depositary may deliver any dividends or distributions, or the proceeds of any sales of dividends, distributions or rights, at the principal office of the Depositary. The Depositary may, in its discretion, refuse to accept a number of Vodafone ADSs representing a number other than a whole number of Vodafone Ordinary Shares.
A Vodafone ADS Holder generally has the right to surrender Vodafone ADSs and withdraw the underlying Vodafone Ordinary Shares at any time except:
x due to temporary delays caused by the closing of the transfer books of the Depositary or the Company or the deposit of Vodafone Ordinary Shares in connection with voting at a Shareholders' meeting, or the payment of dividends;
x when such Vodafone ADS Holder owes money to pay fees, taxes and similar charges; or
x when it is necessary to prohibit withdrawals in order to comply with any laws or governmental regulations that apply to Vodafone ADSs or to the withdrawal of Vodafone Ordinary Shares or any other securities, property or cash underlying such holder's Vodafone ADSs.
Limitations on Obligations and Liability to ADS Holders
The Deposit Agreement expressly limits the obligations and liabilities of the Company, the Depositary and any custodian to the Vodafone ADS Holders. These limitations include, among other things, that the Company and the Depositary:
x are obligated only to take the actions specifically set forth in the Deposit Agreement without gross negligence or willful misconduct;
x have no obligation to become involved in a lawsuit or proceeding related to the Vodafone Ordinary Shares (or any other securities, property or cash) underlying the Vodafone ADSs or the Vodafone ADRs unless they are indemnified to their satisfaction;
x are not liable for any consequential or punitive damages or any action or non-action by it in reliance upon any advice of or information from any legal counsel, accountants, any person depositing Vodafone Ordinary Shares, any Vodafone ADS Holder or any other person whom they believe in good faith is competent to give them that advice or information;
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x may rely and will be protected in action upon any written notice, request or other document believed by it to be genuine and to have been signed or presented by the proper party or parties; and
x are not liable to Holders or beneficial owners of Vodafone ADSs or third parties for any special, consequential, indirect or punitive damages for any breach of the terms of the Deposit Agreement or otherwise.
In addition, the Company, the Depositary and their respective directors, officers, employees, agents or affiliates are not liable to any holder or beneficial owner of Vodafone ADSs:
x if the Depositary or the Company is prevented, delayed or forbidden from, or is subject to any civil or criminal penalty on account of, doing or performing any act or thing which by the terms of the Deposit Agreement or the Vodafone Ordinary Shares (or any other securities, property or cash underlying the Vodafone ADSs) it is provided will be done or performed by reason of any provision of any present or future law or regulation of the U.S. or any other country, or of any governmental or regulatory authority or stock exchange or inter-dealer quotation system, or by reason of any provision, present or future, of the Articles of Association, or by reason of any provision of any securities issued or distributed by the Company, or any offering or distribution thereof, or by reason of any act of God or war or other circumstances beyond its control;
x by reason of any exercise of, or failure to exercise, any discretion provided for in the Deposit Agreement; or
x for the inability of any holder or beneficial owner of Vodafone ADSs to benefit from any distribution, offering, right or other benefit which is made available to Vodafone Shareholders (or of any other securities, property or cash underlying the Vodafone ADSs) but is not, under the terms of the Deposit Agreement, made available to ADS Holders or beneficial owners of Vodafone ADSs.
Additionally, the Depositary will not be liable for, among other things:
x any acts or omissions made by a predecessor or successor depositary, so long as the Depositary performed its obligations without gross negligence or willful misconduct while it acted as the Depositary;
x any acts or omissions of any securities depository, clearing agency or settlement system in connection with book-entry settlement of Vodafone Ordinary Shares or otherwise;
x any failure to carry out any instructions to vote any of the Vodafone Ordinary Shares represented by the Vodafone ADSs, or for the manner in which any such vote is cast, if such action or non-action is in good faith, or for the effect of any such vote;
x the Depositary's failure to determine that any distribution or action is lawful or reasonably practicable if such determination of practicability is made without bad faith;
x the content of any information received from the Company for distribution to the Vodafone ADS Holders or any inaccuracy of any translation thereof;
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x any investment risk associated with acquiring an interest in, or the validity of worth of, the Vodafone Ordinary Shares (or any other securities, property or cash underlying Vodafone ADSs);
x any tax consequences that may result from the ownership of Vodafone ADSs, Vodafone Ordinary Shares or any other securities, property or cash underlying Vodafone ADSs;
x the credit-worthiness of any third party;
x allowing any rights to lapse in accordance with the terms of the Deposit Agreement;
x the failure or timeliness of any notice from the Company; or
x any action of or failure to act by, or any information provided or not provided by, the Depository Trust Company ("DTC") or any DTC participant.
Debt Securities
Each series of notes listed on the NASDAQ Stock Market LLC and set forth on the cover page to Vodafone's annual report on Form 20-F for the year ended March 31, 2020 has been issued by Vodafone Group Plc (collectively, the "Notes"). Each of these series of Notes were issued pursuant to an effective registration statement and a related prospectus and prospectus supplement (if applicable) setting forth the terms of the relevant series of notes.
The following table sets forth the aggregate principal amount outstanding, date of issuance and file number of the registration statements for each relevant series of Notes.
Series
2.500% Notes due September 2022 2.950% Notes due February 2023 3.750% Notes due 16 January 2024 US$1,000,000,000 Floating Rate Notes due 16
January 2024 4.125% Notes due 30 May 2025 4.375% Notes due 30 May 2028 6.250% Notes due February 2032 6.150% Notes due February 2037
Aggregate Principal Amount Outstanding
1,000,000,000 1,600,000,000 2,000,000,000
1,000,000,000 1,500,000,000 3,000,000,000
495,000,000 500,000,000
Date of Issuance
September 26, 2012 February 19, 2013
May 30, 2018
May 30, 2018 May 30, 2018 May 30, 2018 November 30, 2002 February 27, 2007
Registration Statement File No.
333-168347 333-168347 333-219583
333-219583 333-219583 333-219583 333-10762 333-144978
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5.000% Notes due 30 May 2038 4.375% Notes due February 2043 5.250% Notes due 30 May 2048 4.875% Notes due 19 June 2049 4.250% Notes due 17 September 2050 5.125% Notes due 19 June 2059 Capital Securities due April 2079
1,000,000,000 1,400,000,000 3,000,000,000 1,750,000,000 1,500,000,000
500,000,000 2,000,000,000
May 30, 2018 February 19, 2013
May 30, 2018 June 19, 2019 September 17, 2019 June 19, 2019 April 4, 2019
333-219583 333-168347 333-219583 333-219583 333-219583 333-219583 333-219583
Descriptions of the Notes
The summary set out below of the general terms and provisions of the Notes does not purport to be complete and is subject to, and qualified in its entirety by reference to, all of the definitions and provisions of the Indenture (as defined below) and the form of the instrument representing each series of Notes. Certain terms, unless otherwise defined herein, have the meaning given to them in the Indenture. All references to the "Indenture" are to the indenture, dated as of February 10, 2000, between the Company and Citibank, N.A., as Trustee, including forms of debt securities. The Bank of New York Mellon became the successor trustee (the "Trustee") to Citibank, N.A. pursuant to an Agreement of Resignation, Appointment and Acceptance, dated as of July 24, 2007, by and among the Company, The Bank of New York Mellon and Citibank, N.A.
2.500% Notes due September 2022
The following terms are applicable to the 2.500% Notes due September 2022:
x Title: 2.500% Notes due September 2022.
x Total principal amount outstanding: $1,000,000,000.
x Issue date: September 26, 2012.
x Maturity date: The Company will repay the 2.500% Notes due September 2022 on September 26, 2022 at 100% of their principal amount plus accrued and unpaid interest.
x Interest rate: 2.50% per annum.
x Interest payment dates: Semi-annually on March 26 and September 26 of each year, commencing March 26, 2013 up to and including the maturity date for the 2.500% Notes due September 2022, subject to the applicable business day convention.
x Optional make-whole redemption: The Company has the right to redeem the 2.500% Notes due September 2022, in whole or in part, at any time and from time to time at a redemption
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price equal to the greater of (1) 100% of the principal amount of such 2.500% Notes due September 2022 plus accrued interest to the date of redemption and (2) as determined by the quotation agent, the sum of the present values of the remaining scheduled payments of principal and interest on the 2.500% Notes due September 2022 (excluding any portion of such payments of interest accrued as of the date of redemption) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the adjusted treasury rate, plus 15 basis points.
2.950% Notes due February 2023
The following terms are applicable to the 2.950% Notes due February 2023:
x Title: 2.950% Notes due February 2023.
x Total principal amount outstanding: $1,600,000,000.
x Issue date: February 19, 2013.
x Maturity date: The Company will repay the 2.950% Notes due February 2023 on February 19, 2023 at 100% of their principal amount plus accrued and unpaid interest.
x Interest rate: 2.950% per annum.
x Interest payment dates: Semi-annually on February 19 and August 19 of each year, commencing August 19, 2013 up to and including the maturity date for the 2.950% Notes due February 2023, subject to the applicable business day convention.
x Optional make-whole redemption: The Company has the right to redeem the 2.950% Notes due February 2023, in whole or in part, at any time and from time to time at a redemption price equal to the greater of (1) 100% of the principal amount of such 2.950% Notes due February 2023 plus accrued interest to the date of redemption and (2) as determined by the quotation agent, the sum of the present values of the remaining scheduled payments of principal and interest on the 2.950% Notes due February 2023 (excluding any portion of such payments of interest accrued as of the date of redemption) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the adjusted treasury rate, plus 15 basis points.
3.750% Notes due January 2024
The following terms are applicable to the 3.750% Notes due January 2024:
x Title: 3.750% Notes due January 2024
x Total principal amount outstanding: $2,000,000,000.
x Issue date: May 30, 2018.
x Maturity date: The Company will repay the 3.750% Notes due January 2024 on January 16, 2024 at 100% of their principal amount, plus accrued and unpaid interest.
x Interest rate: 3.750% per annum.
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x Interest payment dates: Semi-annually on January 16 and July 16 of each year, commencing January 16, 2019 (long first coupon) up to and including the maturity date for the 3.750% Notes due January 2024, subject to the applicable business day convention.
x Optional make-whole redemption: The Company has the right to redeem the 3.750% Notes due January 2024, in whole or in part, at any time and from time to time at a redemption price equal to the greater of (1) 100% of the principal amount of such 3.750% Notes due January 2024plus accrued interest to the date of redemption and (2) as determined by the quotation agent, the sum of the present values of the remaining scheduled payments of principal and interest on such 3.750% Notes due January 2024 (excluding any portion of such payments of interest accrued as of the date of redemption) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the adjusted treasury rate, plus 20 basis points.
x Redemption or Repurchase Following a Change of Control: If a Change of Control Put Event (as defined below) occurs, then the holder of a 3.750% Note due January 2024 will have the option to require the Company to redeem or, at the Company's option, purchase (or procure the purchase of) such 3.750% Note due January 2024 at an optional redemption amount equal to 101% of the aggregate principal amount of the 3.750% Note due January 2024, plus accrued and unpaid interest on such 3.750% Note due January 2024to the date of redemption, according to the terms and limitations described in the prospectus.
A "Change of Control Put Event" will be deemed to occur if:
(i) any person or any persons acting in concert (as defined in the United Kingdom's City Code on Takeovers and Mergers), other than a holding company (as defined in Section 1159 of the Companies Act 2006 as amended) whose shareholders are or are to be substantially similar to the pre-existing Vodafone Shareholders, shall become interested (within the meaning of Part 22 of the Companies Act 2006 as amended) in (A) more than 50% of the issued or allotted ordinary share capital of the Company or (B) shares in the capital of the Company carrying more than 50% of the voting rights normally exercisable at a general meeting of the Company (each such event, a "Change of Control"); provided that, no Change of Control shall be deemed to occur if the event which would otherwise have constituted a Change of Control occurs or is carried out by an extraordinary resolution; and
(ii) the long-term debt of the Company has been assigned:
(A) an investment grade credit rating (Baa3/BBB--, or their respective equivalents, or better) (an "Investment Grade Rating"), by any Rating Agency (as defined below) at the invitation of the Company; or
(B) where there is no rating from any Rating Agency assigned at the invitation of the Company, an Investment Grade Rating by any Rating Agency of its own volition,
and;
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(x) such rating is, within the Change of Control Period (as defined below), either downgraded to a non-investment grade credit rating (Ba1/BB+, or their respective equivalents, or worse) (a "NonInvestment Grade Rating") or withdrawn and is not, within the Change of Control Period, subsequently (in the case of a downgrade) upgraded or (in the case of a withdrawal) reinstated to an Investment Grade Rating by such Rating Agency;
(y) and there remains no other Investment Grade Rating of the long-term debt of the Company from any other Rating Agency; and
(iii) in making any decision to downgrade or withdraw an Investment Grade Rating pursuant to paragraph (ii) above, the relevant Rating Agency announces publicly or confirms in writing to the Company that such decision(s) resulted, in whole or in part, from the occurrence of the relevant Change of Control.
Further, if at the time of the occurrence of the relevant Change of Control the long-term debt of the Company is not assigned an Investment Grade Rating by any Rating Agency, a Change of Control Put Event will be deemed to occur upon the occurrence of a Change of Control alone.
Promptly upon the Company becoming aware that a Change of Control Put Event has occurred the Company shall, and the Trustee if so requested by the holders of at least one-quarter in nominal amount of the 3.750% Notes due January 2024 then outstanding or if so directed by an extraordinary resolution of the holders of 3.750% Notes due January 2024, shall (subject in each case to the Trustee being indemnified and/or secured to its satisfaction) give notice (a "Change of Control Put Event Notice") to the holders of 3.750% Notes due January 2024 specifying the nature of the Change of Control Put Event and the procedure for exercising the Change of Control Put Option.
To exercise the Change of Control Put Option, the holder of a 3.750% Note due January 2024 must (in the case of bearer debt securities) deposit such 3.750% Note due January 2024 with any Paying Agent or (in the case of registered 3.750% Notes due January 2024) deposit the certificate representing such 3.750% Note due January 2024 with the security registrar at its specified office, in each case at any time during normal business hours of such Paying Agent or security registrar (all as defined in the 3.750% Note due January 2024), as the case may be, falling within the period (the "Put Period") of 30 days after a Change of Control Put Event Notice is given, accompanied by a duly signed and completed notice of exercise in the form (for the time being current) obtainable from the specified office of any Paying Agent or security registrar, as the case may be (a "Change of Control Put Notice"). No 3.750% Note due January 2024 or certificate so deposited and option so exercised may be withdrawn (except as provided in the Agency Agreement) without the prior consent of the Company. The Company shall redeem or purchase (or procure the purchase of) the relevant 3.750% Notes due January 2024 on the Put Date unless previously redeemed (or purchased) and cancelled.
If 80% or more in nominal amount of the 3.750% Notes due January 2024 then outstanding have been redeemed or purchased, the Company may, on giving not less than 30 nor more
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than 60 days' notice to the holders of 3.750% Notes due January 2024 (such notice being given within 30 days after the Put Date), redeem or purchase (or procure the purchase of), at its option, all of the remaining outstanding 3.750% Notes due January 2024 at the optional redemption amount, together with interest (if any) accrued to (but excluding) the date fixed for such redemption or purchase.
If the rating designations employed by either Moody's or S&P are changed from those which are described in paragraph (ii) of the definition of "Change of Control Put Event" above, or if a rating is procured from a Substitute Rating Agency (as defined below), the Company shall determine the rating designations of Moody's or S&P or such Substitute Rating Agency (as appropriate) as are most equivalent to the prior rating designations of Moody's or S&P and this section shall be construed accordingly.
The Trustee is under no obligation to ascertain whether a Change of Control Put Event or Change of Control or any event which could lead to the occurrence of or could constitute a Change of Control Put Event or Change of Control has occurred, and, until it shall have actual knowledge or notice pursuant to the trust deed to the contrary, the Trustee may assume that no Change of Control Put Event or Change of Control or other such event has occurred.
"Change of Control Period" means the period commencing upon a Change of Control and ending 90 days after the Change of Control (or such longer period for which the 3.750% Notes due January 2024 are under consideration (such consideration having been announced publicly within the period ending 90 days after the Change of Control) for rating review, such period not to exceed 60 days after the public announcement of such consideration); and
"Rating Agency" means Moody's Investors Service España S.A. ("Moody's") or Standard & Poor's Credit Market Services Europe Limited ("S&P") or any of their respective affiliates or successors or any rating agency (a "Substitute Rating Agency") substituted for any of them by the Company from time to time.
Floating Rate Notes due January 2024
The following terms are applicable to the Floating Rate Notes due January 2024:
x Title: Floating Rate Notes due January 2024.
x Total principal amount outstanding: $1,000,000,000.
x Issue date: May 30, 2018.
x Maturity date: The Company will repay the Floating Rate Notes due January 2024 on January 16, 2024 at 100% of their principal amount, plus accrued and unpaid interest.
x Interest rate: The interest rate for the period from May 30, 2018 to, but excluding, the first interest reset date will be the initial base rate, as adjusted by adding the spread. Thereafter, the interest rate will be the base rate, as adjusted by adding the spread. The interest rate will be reset quarterly on each interest reset date.
x Initial Base Rate: Three-month U.S. dollar LIBOR, as determined on May 30, 2018.
x Base Rate: Three-month U.S. dollar LIBOR.
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x Three-Month U.S. Dollar LIBOR: "Three-month U.S. dollar LIBOR" means the London interbank offered rate for deposits in U.S. dollars for a three-month period, as that rate appears on Reuters screen page "LIBOR01" at approximately 11:00 a.m., London time, on any interest determination date.
If no offered rate appears on Reuters screen page "LIBOR01" on the relevant interest determination date at approximately 11:00 a.m., London time, then the Company will select and identify to the calculation agent four major banks in the London interbank market, and the calculation agent will request the principal London offices of each of such banks to provide a quotation of the rate at which three-month deposits in U.S. dollars in amounts of at least $1,000,000 are offered by it to prime banks in the London interbank market, on that date and at that time for the applicable interest period. If at least two quotations are provided, three-month U.S. dollar LIBOR will be the arithmetic average (rounded upward if necessary to the nearest .00001 of1%) of the quotations provided. If less than two quotes are provided, the Company will select and identify to the calculation agent three major banks in New York City, and the calculation agent will request each of such banks to provide a quotation of the rate offered by it at approximately 11:00 a.m., New York City time, on the interest determination date for loans in U.S. dollars to leading European banks for a three month period for the applicable interest period in an amount of at least $1,000,000. If three quotations are provided, three-month U.S. dollar LIBOR will be the arithmetic average of the quotations provided. Otherwise, the rate of interest for the next succeeding interest period will be equal to the rate of interest last determined in relation to the notes in respect of the preceding interest period, or, in the case of the first interest determination date prior to the first interest reset date, the initial base rate.
Notwithstanding the foregoing, if the Company determines on or prior to the relevant interest determination date, after consultation with an investment bank of national standing selected by us in its sole discretion, that three-month U.S. dollar LIBOR has been discontinued or ceased to be administered, then the Company will appoint in its sole discretion an investment bank of national standing to determine whether there is a substitute or successor base rate to three-month U.S. dollar LIBOR that is consistent with accepted market practice. If such investment bank of national standing determines that there is such a substitute or successor base rate, the calculation agent shall use such substitute or successor base rate. In such case, the calculation agent will implement changes to the business day convention, the definition of business day, the interest determination date and any method for obtaining the substitute or successor base rate if such rate is unavailable on the relevant business day, in a manner that is consistent with industry accepted practices for such substitute or successor base rate, all as determined and directed by such investment bank of national standing; provided, however, that the calculation agent shall not be required to implement any such changes that affects its own rights, duties or immunities under the indenture, the calculation agent agreement or otherwise. If such investment bank of national standing determines that there is no such substitute or successor base rate as so provided above, the rate of interest for the next succeeding interest period will be equal to the rate of interest last determined in relation to the notes in respect of the preceding interest period.
x Spread: Plus 0.990%
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x Interest payment dates: Quarterly on January 16, April 16, July 16 and October 16 of each year, commencing July 16, 2018, up to and including the maturity date for the Tranche 6 Notes, subject to the applicable business day convention.
x Interest Reset Dates: Starting with the interest period scheduled to commence on July 16, 2018, the interest reset date for each interest period will be the first day of such interest period, subject to the applicable business day convention.
x Interest Determination Date: The interest determination date relating to a particular interest reset date will be the second London business day preceding such interest reset date.
x Calculation Agent: The Bank of New York Mellon, London Branch, or its successor appointed by us.
x Redemption or Repurchase Following a Change of Control: If a Change of Control Put Event occurs, then the holder of a Floating Rate Note due January 2024 will have the option to require the Company to redeem or, at the Company's option, purchase (or procure the purchase of) such Floating Rate Note due January 2024 at an optional redemption amount equal to 101% of the aggregate principal amount of such Floating Rate Note due January 2024, plus accrued and unpaid interest on such Floating Rate Note due January 2024 to the date of redemption, according to the terms and limitations described above under "--3.750% Notes due January 2024--Redemption or Repurchase Following a Change of Control" as applied to the Floating Rate Notes due January 2024.
4.125% Notes due May 2025
The following terms are applicable to the 4.125% Notes due May 2025.
x Title: 4.125% Notes due May 2025.
x Total principal amount outstanding: $1,500,000,000.
x Issue date: May 30, 2018.
x Maturity date: The Company will repay the 4.125% Notes due May 2025 on May 30, 2025 at 100% of their principal amount, plus accrued and unpaid interest.
x Interest rate: 4.125% per annum.
x Interest payment dates: Semi-annually on May 30 and November 30 of each year, commencing November 30, 2018 up to and including the maturity date for the 4.125% Notes due May 2025, subject to the applicable business day convention.
x Business day convention: Following, Unadjusted.
x Day count fraction: 30/360
x Optional make-whole redemption: The Company has the right to redeem the 4.125% Notes due May 2025, in whole or in part, at any time and from time to time at a redemption price equal to the greater of (1) 100% of the principal amount of such 4.125% Notes due May 2025 plus accrued interest to the date of redemption and (2) as determined by the quotation agent, the sum of the present values of the remaining scheduled payments of principal and
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interest on such 4.125% Notes due May 2025 (excluding any portion of such payments of interest accrued as of the date of redemption) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the adjusted treasury rate, plus 20 basis points.
x Redemption or Repurchase Following a Change of Control: If a Change of Control Put Event occurs, then the holder of a 4.125% Note due May 2025 will have the option to require the Company to redeem or, at the Company's option, purchase (or procure the purchase of) such 4.125% Note due May 2025 at an optional redemption amount equal to 101% of the aggregate principal amount of such 4.125% Note due 2025, plus accrued and unpaid interest on such 4.125% Note due May 2025 to the date of redemption, according to the terms and limitations described above under "--3.750% Notes due January 2024-- Redemption or Repurchase Following a Change of Control" as applied to the 4.125% Notes due May 2025.
4.375% Notes due May 2028
The following terms are applicable to the 4.375% Notes due May 2028.
x Title: 4.375% Notes due May 2028.
x Total principal amount outstanding: $3,000,000,000.
x Issue date: May 30, 2018.
x Maturity date: The Company will repay the 4.375% Notes due May 2028 on May 30, 2028 at 100% of their principal amount, plus accrued and unpaid interest.
x Interest rate: 4.375% per annum.
x Interest payment dates: Semi-annually on May 30 and November 30 of each year, commencing November 30, 2018 up to and including the maturity date for the 4.375% Notes due May 2028, subject to the applicable business day convention.
x Business day convention: Following, Unadjusted.
x Day count fraction: 30/360
x Optional make-whole redemption: The Company has the right to redeem the 4.375% Notes due May 2028, in whole or in part, at any time and from time to time at a redemption price equal to the greater of (1) 100% of the principal amount of such 4.375% Notes due May 2028 plus accrued interest to the date of redemption and (2) as determined by the quotation agent, the sum of the present values of the remaining scheduled payments of principal and interest on such 4.375% Notes due May 2028 (excluding any portion of such payments of interest accrued as of the date of redemption) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the adjusted treasury rate, plus 25 basis points.
x Redemption or Repurchase Following a Change of Control: If a Change of Control Put Event occurs, then the holder of a 4.375% Note due May 2028 will have the option to require the Company to redeem or, at the Company's option, purchase (or procure the purchase of) such Note at an optional redemption amount equal to 101% of the aggregate principal
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amount of such 4.375% Note due May 2028, plus accrued and unpaid interest on such Note to the date of redemption, according to the terms and limitations described above under "--3.750% Notes due January 2024--Redemption or Repurchase Following a Change of Control" as applied to the 4.375% Note due May 2028. 6.250% Notes due February 2032 The following terms are applicable to the 6.250% Notes due February 2032.
x Title: 6.250% Notes due February 2032.
x Total principal amount outstanding: $495,000,000.
x Notes: $495,000,000 principal amount of 6.25% Notes due 2032.
x Issue Date: November 30, 2002.
x Maturity: The Company will repay the 6.250% Notes due 2032at 100% of their principal amount plus accrued interest on November 30, 2032.
x Interest payment dates: Semi-annually on May 30 and November 30.
x First interest payment date: May 30, 2003.
x Optional make-whole redemption: The Company has the right to redeem the 6.250% Notes due 2032, in whole or in part, at any time and from time to time at a redemption price equal to the greater of (1) 100% of the principal amount of the 6.250% Notes due February 2032plus accrued interest to the date of redemption and (2) as determined by the quotation agent, the sum of the present values of the remaining scheduled payments of principal and interest on the 6.250% Notes due 2032 (excluding any portion of such payments of interest accrued as of the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the adjusted treasury rate, plus 20 basis points, plus accrued interest to the date of redemption.
6.150% Notes due February 2037 The following terms are applicable to the 6.150% Notes due February 2037.
x Title: 6.150% Notes due February 2037.
x Total principal amount outstanding: $500,000,000.
x Issue date: February 27, 2007.
x Maturity date: The Company will repay the 6.150% Notes due February 2037 on February 27, 2037 at 100% of their principal amount plus accrued interest.
x Interest rate: 6.150% per annum.
x Interest payment dates: Semi-annually on February 27 and August 27 of each year, commencing August 27, 2007, up to and including the maturity date for the 6.150% Notes due February 2037, subject to the applicable business day convention.
x Business day convention: Following. 24
x Day count fraction: 30/360
x Optional make-whole redemption: The Company has the right to redeem the 6.150% Notes due February 2037, in whole or in part, at any time and from time to time at a redemption price equal to the greater of (1) 100% of the principal amount of such 6.150% Notes due February 2037 plus accrued interest to the date of redemption and (2) as determined by the quotation agent, the sum of the present values of the remaining scheduled payments of principal and interest on such 6.150% Notes due February 2037 (excluding any portion of such payments of interest accrued as of the date of redemption) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-daymonths) at the adjusted treasury rate, plus 25 basis points, together with accrued interest to the date of redemption.
5.000% Notes due May 2038
The following terms are applicable to the 5.000% Notes due May 2038.
x Title: 5.000% Notes due May 2038.
x Total principal amount outstanding: $1,000,000,000.
x Issue date: May 30, 2018.
x Maturity date: The Company will repay the 5.000% Notes due May 2038 on May 30, 2038 at 100% of their principal amount, plus accrued and unpaid interest.
x Interest rate: 5.000% per annum.
x Interest payment dates: Semi-annually on May 30 and November 30 of each year, commencing November 30, 2018 up to and including the maturity date for the 5.000% Notes due May 2038, subject to the applicable business day convention.
x Business day convention: Following, Unadjusted.
x Day count fraction: 30/360
x Optional make-whole redemption: The Company has the right to redeem the 5.000% Notes due May 2038, in whole or in part, at any time and from time to time at a redemption price equal to the greater of (1) 100% of the principal amount of such 5.000% Notes due May 2038plus accrued interest to the date of redemption and (2) as determined by the quotation agent, the sum of the present values of the remaining scheduled payments of principal and interest on such 5.000% Notes due May 2038 (excluding any portion of such payments of interest accrued as of the date of redemption) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the adjusted treasury rate, plus 30 basis points.
x Redemption or Repurchase Following a Change of Control: If a Change of Control Put Event occurs, then the holder of a 5.000% Note due May 2038 will have the option to require the Company to redeem or, at the Company's option, purchase (or procure the purchase of) such 5.000% Note due May 2038 at an optional redemption amount equal to 101% of the aggregate principal amount of such 5.000% Note due May 2038, plus accrued and unpaid
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interest on such 5.000% Note due May 2038 to the date of redemption, according to the terms and limitations described above under "--3.750% Notes due January 2024--Redemption or Repurchase Following a Change of Control" as applied to the 5.000% Note due May 2038 series of Notes.
4.375% Notes due February 2043
The following terms are applicable to the 4.375% Notes due February 2043.
x Title: 4.375% Notes due February 2043.
x Total principal amount outstanding: $1,400,000,000.
x Issue date: February 19, 2013.
x Maturity date: The Company will repay the 4.375% Notes due February 2043 on February 19, 2043 at 100% of their principal amount plus accrued and unpaid interest.
x Interest rate: 4.375% annum.
x Interest payment dates: Semi-annually on February 19 and August 19 of each year, commencing August 19, 2013 up to and including the maturity date for the 4.375% Notes due February 2043, subject to the applicable business day convention.
x Business day convention: Following, Unadjusted.
x Optional make-whole redemption: The Company has the right to redeem the 4.375% Notes due February 2043, in whole or in part, at any time and from time to time at a redemption price equal to the greater of (1) 100% of the principal amount of such 4.375% Notes due February 2043 plus accrued interest to the date of redemption and (2) as determined by the quotation agent, the sum of the present values of the remaining scheduled payments of principal and interest on such 4.375% Notes due February 2043 (excluding any portion of such payments of interest accrued as of the date of redemption) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the adjusted treasury rate, plus 20 basis points.
5.250% Notes due May 2048
The following terms are applicable to the 5.250% Notes due May 2048.
x Title: 5.250% Notes due May 2048.
x Total principal amount outstanding: $3,000,000,000.
x Issue date: May 30, 2018.
x Maturity date: The Company will repay the 5.250% Notes due May 2048 on May 30, 2048 at 100% of their principal amount, plus accrued and unpaid interest.
x Interest rate: 5.250% per annum.
x Interest payment dates: Semi-annually on May 30 and November 30 of each year, commencing November 30, 2018 up to and including the maturity date for the 5.250% Notes due May 2048, subject to the applicable business day convention.
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x Business day convention: Following, Unadjusted.
x Day count fraction: 30/360
x Optional make-whole redemption: The Company has the right to redeem the 5.250% Notes due May 2048, in whole or in part, at any time and from time to time at a redemption price equal to the greater of (1) 100% of the principal amount of such 5.250% Notes due May 2048 plus accrued interest to the date of redemption and (2) as determined by the quotation agent, the sum of the present values of the remaining scheduled payments of principal and interest on such 5.250% Notes due May 2048 (excluding any portion of such payments of interest accrued as of the date of redemption) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the adjusted treasury rate, plus 35 basis points.
x Redemption or Repurchase Following a Change of Control: If a Change of Control Put Event occurs, then the holder of a 5.250% Note due May 2048 will have the option to require the Company to redeem or, at the Company's option, purchase (or procure the purchase of) such 5.250% Note due May 2048 at an optional redemption amount equal to 101% of the aggregate principal amount of such Note, plus accrued and unpaid interest on such Note to the date of redemption, according to the terms and limitations described above under "--3.750% Notes due January 2024--Redemption or Repurchase Following a Change of Control" as applied to the 5.250% Notes due May 2048.
4.875% Notes due June 2049
The following terms are applicable to the 4.875% Notes due June 2049.
x Title: 4.875% Notes due June 2049.
x Total principal amount outstanding: $1,750,000,000.
x Issue date: June 19, 2019.
x Maturity date: The Company will repay the 4.875% Notes due June 2049 on June 19, 2049 at 100% of their principal amount, plus accrued and unpaid interest.
x Interest rate: 4.875% per annum.
x Interest payment dates: Semi-annually on June 19 and December 19 of each year, commencing December 19, 2019 up to and including the maturity date for the 4.875% Notes due June 2049, subject to the applicable business day convention.
x Business day convention: Following, Unadjusted.
x Day count fraction: 30/360
x Optional make-whole redemption: The Company has the right to redeem the 4.875% Notes due June 2049, in whole or in part, at any time and from time to time at a redemption price equal to the greater of (1) 100% of the principal amount of such 4.875% Notes due June 2049 plus accrued interest to the date of redemption and (2) as determined by the quotation agent, the sum of the present values of the remaining scheduled payments of principal and interest on such 4.875% Notes due June 2049 (excluding any portion of such payments of
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interest accrued as of the date of redemption) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the adjusted treasury rate, plus 40 basis points.
4.250% Notes due 17 September 2050
The following terms are applicable to the 4.250% Notes due 17 September 2050.
x Title: 4.250% Notes due 17 September 2050.
x Total principal amount outstanding: $1,500,000,000.
x Issue Date: September 17, 2019.
x Maturity Date: The Company will repay the 4.250% Notes due 17 September 2050 on September 17, 2050 at 100% of their principal amount, plus accrued and unpaid interest.
x Interest Rate: 4.25% per annum.
x Interest Payment Dates: Semi-annually on March 17 and September 17 of each year, commencing March 17, 2020 up to and including the maturity date for the 4.250% Notes due 17 September 2050, subject to the applicable business day convention.
x Optional Make-Whole Redemption: The Company has the right to redeem the 4.250% Notes due 17 September 2050, in whole or in part, at any time and from time to time at a redemption price equal to the greater of (1) 100% of the principal amount of such 4.250% Notes due 17 September 2050, plus accrued interest to the date of redemption and (2) as determined by the quotation agent, the sum of the present values of the remaining scheduled payments of principal and interest on such 4.250% Notes due 17 September 2050 (excluding any portion of such payments of interest accrued as of the date of redemption) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the adjusted treasury rate, plus 35 basis points.
x Redemption or Repurchase Following a Change of Control: If a Change of Control Put Event occurs, then the holder of a 4.250% Note due 17 September 2050 will have the option to require the Company to redeem or, at the Company's option, purchase (or procure the purchase of) such 4.250% Note due 17 September 2050 at an optional redemption amount equal to 101% of the aggregate principal amount of such 4.250% Note due 17 September 2050, plus accrued and unpaid interest on such 4.250% Note due 17 September 2050to the date of redemption, according to the terms and limitations described above under "--3.750% Notes due January 2024--Redemption or Repurchase Following a Change of Control" as applied to the 4.250% Notes due 17 September 2050.
5.125% Notes due June 2059
The following terms are applicable to the 5.125% Notes due June 2059.
x Title: 5.125% Notes due June 2059.
x Total principal amount outstanding: $500,000,000.
x Issue date: June 19, 2019.
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x Maturity date: The Company will repay the 5.125% Notes due June 2059 on June 19, 2059 at 100% of their principal amount, plus accrued and unpaid interest.
x Interest rate: 5.125% per annum.
x Interest payment dates: Semi-annually on June 19 and December 19 of each year, commencing December 19, 2019 up to and including the maturity date for the 5.125% Notes due June 2059, subject to the applicable business day convention.
x Optional make-whole redemption: The Company has the right to redeem the 5.125% Notes due June 2059, in whole or in part, at any time and from time to time at a redemption price equal to the greater of (1) 100% of the principal amount of such 5.125% Notes due June 2059 plus accrued interest to the date of redemption and (2) as determined by the quotation agent, the sum of the present values of the remaining scheduled payments of principal and interest on such 5.125% Notes due June 2059 (excluding any portion of such payments of interest accrued as of the date of redemption) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the adjusted treasury rate, plus 40 basis points.
x Redemption or Repurchase Following a Change of Control: If a Change of Control Put Event occurs, then the holder of a 5.125% Note due June 2059 will have the option to require the Company to redeem or, at the Company's option, purchase (or procure the purchase of) such 5.125% Note due June 2059at an optional redemption amount equal to 101% of the aggregate principal amount of such 5.125% Note due June 2059, plus accrued and unpaid interest on such 5.125% Note due June 2059to the date of redemption, according to the terms and limitations described above under "--3.750% Notes due January 2024--Redemption or Repurchase Following a Change of Control" as applied to the 5.125% Notes due June 2059.
Capital Securities due April 2079
The following terms are applicable to the Capital Securities due April 2079. Within this section, capitalized terms that are not otherwise defined have the meaning given to them in the prospectus supplement dated March 28, 2019 (the "Prospectus Supplement"), to the base prospectus dated July 31, 2017 (File No. 333-219583), filed with the Securities and Exchange Commission pursuant to Rule 424(b)(2) on April 1, 2019, which prospectus supplement is incorporated by reference herein.
x Title: Capital Securities due April 2079.
x Total principal amount outstanding: $2,000,000,000.
x Issue date: April 4, 2019.
x Maturity date: Unless previously redeemed, purchased, cancelled or substituted, the Capital Securities due April 2079 will mature on April 4, 2079, and holders will be entitled to receive 100% of the principal amount of the Capital Securities due April 2079, together with any accrued and unpaid interest and any outstanding arrears of interest.
x Interest: The Capital Securities due April 2079 bear interest on their principal amount from (and including) the issue date to (but excluding) April 4, 2029 (the "First Reset Date") at a
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rate of 7.000% per annum, payable semi-annually in arrears on April 4 and October 4 in each year, commencing on October 4, 2019. Thereafter, unless previously redeemed, the Capital Securities due April 2079 will bear interest from (and including) the First Reset Date to (but excluding) April 4, 2049 at a rate per annum which shall be 4.873% above the 5 year Swap Rate (as defined below) for the relevant reset period, payable semi-annually in arrears on April 4 and October 4 in each year. From (and including) April 4, 2049 up to (but excluding) April 4, 2079 (the "Maturity Date"), unless previously redeemed, the Capital Securities due April 2079 will bear interest at a rate per annum which shall be 5.623% above the 5 year Swap Rate for the relevant Reset Period payable semi-annually in arrears on April 4 and October 4 in each year. See "Description of Securities--Interest Payments" in the Prospectus Supplement.
x Optional interest deferral: The Company may, at its discretion, elect to defer all or part of any Interest Payment (a "Deferred Interest Payment") which is otherwise scheduled to be paid on an Interest Payment Date by giving a Deferral Notice of such election to the holders Capital Securities due April 2079, the Trustee and the Principal Paying Agent. Other than in connection with a Mandatory Settlement, if the Company elects not to make all or part of any Interest Payment on an Interest Payment Date, then the Company will not have any obligation to pay such interest on the relevant Interest Payment Date and any such non-payment of interest will not constitute an Event of Default of the Issuer or any other breach of its obligations under the Capital Securities due April 2079 or for any other purpose.
x Further Issuances: The Company may, at its option, at any time and without the consent of the then existing noteholders issue additional Notes in one or more transactions (other than the issuance date and, possibly, the first interest payment date) identical to the Capital Securities due April 2079. These additional Notes will be deemed to be part of the same series as the Capital Securities due April 2079 and will provide the holders of these additional Notes the right to vote together with holders of the Capital Securities due April 2079.
x Arrears of Interest in respect of the Capital Securities due April 2079 may be satisfied at the option of the Company in whole or in part at any time (the "Optional Deferred Interest Settlement Date") following delivery of a notice to such effect given by the Company to the holders of the Capital Securities due April 2079, the Trustee and the Principal Paying Agent informing them of its election to so satisfy such Arrears of Interest (or part thereof) and specifying the Optional Deferred Interest Settlement Date.
x Any Deferred Interest Payment (or part thereof) shall itself bear interest (such further interest together with the Deferred Interest Payment, being "Arrears of Interest"), at the Interest Rate prevailing from time to time, from (and including) the date on which (but for such deferral) the Deferred Interest Payment would otherwise have been due to be made to (but excluding) the Optional Deferred Interest Settlement Date or, as appropriate, such other date on which such Deferred Interest Payment is paid in connection with a Mandatory Settlement, in each case such further interest being compounded on each Interest Payment Date. Non-payment of Arrears of Interest shall not constitute a default by the Company
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under the Capital Securities due April 2079 or for any other purpose, unless such payment is required in connection with a Mandatory Settlement.
x Mandatory Settlement: Notwithstanding the above and the provisions of "Optional Interest Deferral" in the Prospectus Supplement, the Company will pay any outstanding Arrears of Interest, in whole but not in part, on the first occurring Mandatory Settlement Date following the Interest Payment Date on which a Deferred Interest Payment first arose. A "Mandatory Settlement Date" as defined in the terms of the Capital Securities due April 2079 encompasses (i) dividends, other distributions or payments in respect of Parity Obligations and other events that constitute "Compulsory Arrears of Interest Settlement Events," (ii) payments of interest on the Capital Securities due April 2079 on a scheduled Interest Payment Date following the Interest Payment Date on which a Deferred Interest Payment first arose and (iii) the date of which the Capital Securities due April 2079 are redeemed or repaid in accordance with the conditions set forth under "Description of Securities--Subordination", "Description of Securities--Redemption" or "Description of Securities--Event of Default" in the Prospectus Supplement.
x Optional Redemption: The Company may redeem all, but not less than all, of the Capital Securities due April 2079 on any date in the period commencing on any date from (and including) the First Call Date to (and including) the First Reset Date or on any Interest Payment Date thereafter at their principal amount, together with any accrued and unpaid interest up to (but excluding) the redemption date and any outstanding Arrears of Interest in respect of the Capital Securities due April 2079.
x Special Event Redemption: If a Capital Event, Tax Event, Accounting Event or Withholding Tax Event (any such, a "Special Event") has occurred and is continuing, then the Company may redeem at any time all, but not less than all, of the Capital Securities due April 2079 at:
x in the case of a Capital Event, Tax Event or Accounting Event where the relevant date fixed for redemption falls prior to the First Call Date, 101% of their principal amount;
x in the case of a Capital Event, Tax Event or Accounting Event where the relevant date fixed for redemption falls on or after the First Call Date, 100% of their principal amount; or
x in the case of a Withholding Tax Event where any such redemption occurs at any time, 100% of their principal amount,
in each case together with any accrued and unpaid interest up to (but excluding) the redemption date and any outstanding Arrears of Interest in respect of the Capital Securities due April 2079.
x Change of Control: If a Change of Control Event has occurred and is continuing, the Company may elect to redeem all, but not less than all, of the Capital Securities due April 2079 at any time at 101% of the principal amount of the Capital Securities due April 2079, together with any accrued and unpaid interest up to (but excluding) the redemption date and any outstanding Arrears of Interest in respect of the Capital Securities due April 2079.
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x If the Company does not elect to redeem the Capital Securities due April 2079 following the occurrence of a Change of Control Event, the then prevailing Interest Rate, and each subsequent Interest Rate, on the Capital Securities due April 2079 shall be increased by 5% per annum with effect from(and including) the date on which the Change of Control Event occurred.
x Substitution or variation instead of special event redemption: If an Accounting Event, a Capital Event, a Tax Event or a Withholding Tax Event has occurred and is continuing, without the consent of the holders of Capital Securities due April 2079, the Company may either, as an alternative to redemption, at any time, (i) substitute all, but not less than all, of the Capital Securities due April 2079 for, or (ii) vary the terms of the Capital Securities due April 2079 with the effect that they remain or become, as the case may be, Qualifying Securities, in each case in accordance with certain conditions and subject, inter alia, to the receipt by the Trustee of the Officer's Certificate and an Opinion of Counsel, each as defined in the Indenture.
Other Terms Applicable to All Notes
The following terms are applicable to all Notes.
x Guarantee: None.
x Denomination: The Notes are issued, unless otherwise indicated in the applicable prospectus supplement, in denominations that are even multiples of $1,000.
x Regular record dates for interest: With respect to each interest payment date, the regular record date for interest on Notes in registered form is the close of business on the Clearing System Business Day prior to the date for payment, where "Clearing System Business Day" means Monday to Friday, inclusive, except December 25 and January 1. The regular record date for interest on Notes that are represented by physical certificates is the date that is 15 calendar days prior to such date, whether or not such date is a business day.
x Payment of additional amounts: The Company intends to make all payments on the Notes without deducting United Kingdom ("U.K.") withholding taxes. If any deduction is required on payments to non-U.K. investors, the Company will pay additional amounts on those payments.
x Optional Tax Redemption: The Company may redeem the Notes before they mature if the Company is obligated to pay additional amounts due to changes on or after the date of the final term sheet in U.K. withholding tax requirements, a merger or consolidation with another entity or a sale or lease of substantially all its assets and other limited circumstances. In that event, the Company may redeem the Notes in whole but not in part on any interest payment date, at a price equal to 100% of their principal amount plus accrued interest to the date fixed for redemption.
x Ranking: The Notes rank equally with all present and future unsecured and unsubordinated indebtedness of the Company. Because the Company is a holding company, the Notes effectively rank junior to any indebtedness or other liabilities of its subsidiaries.
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x Business Days: For Notes which are fixed rate notes, New York; for Notes which are floating rate notes, London and New York.
x Business Day Convention:
x For Notes which are fixed rate notes: Following, Unadjusted.
x For Notes which are floating rate notes: Modified, Following.
x Day Count Fraction:
x For Notes which are fixed rate notes: 30/360.
x For Notes which are floating rate notes: Actual/360 (ISDA).
x Trading through DTC (as defined below), Clearstream, Luxembourg and Euroclear: The Company understands that secondary market trading between DTC participants will occur in the ordinary way in accordance with DTC's rules. Secondary market trading will be settled using procedures applicable to U.S. corporate debt obligations in DTC's Same-Day Funds Settlement System.
If payment is made in U.S. dollars, settlement will be in same-day funds. If payment is made in a currency other than U.S. dollars, settlement will be free of payment. If payment is made other than in U.S. dollars, separate payment arrangements outside of the DTC system must be made between the DTC participants involved.
The Company understands that secondary market trading between Euroclear and/or Clearstream, Luxembourg participants will occur in the ordinary way following the applicable rules and operating procedures of Euroclear and Clearstream, Luxembourg. Secondary market trading will be settled using procedures applicable to conventional Eurobonds in registered form.
x Name of depositary: The Depositary Trust Company, commonly referred to as "DTC".
x Sinking fund: There is no sinking fund.
x Trustee, Calculation Agent and Principal Paying Agent: The Bank of New York Mellon.
x Governing law and jurisdiction: New York law governs the Indenture and the Notes, except for certain events of default described in the Indenture, which are governed by English law.
x Adjusted treasury rate: "Adjusted treasury rate" means, with respect to any redemption date, the rate per year equal to the semi-annual equivalent yield to maturity of the comparable treasury issue, assuming a price for the comparable treasury issue (expressed as a percentage of its principal amount) equal to the comparable treasury price for such redemption date.
x "Comparable treasury issue" means the U.S. Treasury security selected by the quotation agent as having a maturity comparable to the remaining term of such Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining terms of such Notes.
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x "Comparable treasury price" means, with respect to any redemption date, the average of the reference treasury dealer quotations for such redemption date.
x "Quotation agent" means the reference treasury dealer appointed by the Trustee after consultation with the Company.
x "Reference treasury dealer" means any primary U.S. government securities dealer in New York City selected by the Trustee after consultation with the Company.
x "Reference treasury dealer quotations" means with respect to each reference treasury dealer and any redemption date, the average, as determined by the Trustee, of the bid and asked prices for the comparable treasury issue (expressed as a percentage of its principal amount) quoted in writing to the Trustee by such reference treasury dealer at 5:00 p.m. Eastern Standard Time on the third business day preceding such redemption date.
Description of Debt Securities
The following terms are applicable to all of the Notes. In the following description "you" means direct holders of the Notes (and not street name or other indirect holders of securities).
As required by U.S. federal law for all bonds and notes of companies that are publicly offered, any debt securities, including the Notes, are governed by an indenture. The Indenture is a contract entered into between the Company and The Bank of New York Mellon, which acts as trustee. The Trustee has two main roles:
x First, the Trustee can enforce your rights against the Company if it defaults, although there are some limitations on the extent to which the Trustee acts on your behalf that are described under "--Default and Related Matters--Events of Default-- Remedies If an Event of Default Occurs"; and
x Second, the Trustee performs administrative duties for the Company, such as sending interest payments and notices to you and transferring your Notes to a new buyer if you sell.
The Indenture and its associated documents contain the full legal text of the matters described in this section. New York law governs the Indenture and the Notes, except for certain events of default described in the Indenture, which are governed by English law. The Company has filed a copy of the Indenture with the SEC as an exhibit to its registration statement.
Section references below refer to sections of the Indenture.
Overview of Remainder of This Description
The remainder of this description summarizes:
x Additional mechanics relevant to the Notes under normal circumstances, such as how you transfer ownership and where the Company makes payments.
x Your rights under several special situations, such as if the Company merges with another company or if the Company wants to change a term of the Notes.
x Your rights to receive payment of additional amounts due to changes in U.K. tax withholding or deduction requirements.
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x Your rights if the Company defaults or experiences other financial difficulties.
x The Company's relationship with the Trustee.
Additional Mechanics Exchange and Transfer
You may have your Notes broken into more debt securities of smaller denominations or combined into fewer debt securities of larger denominations, as long as the total principal amount is not changed. This is called an exchange. (Section 305)
In the case of registered Notes, you may exchange or transfer your registered Notes at the office of the Trustee. The Trustee acts as its agent for registering Notes in the names of holders and transferring registered Notes. The Company may change this appointment to another entity or perform the service itself. The entity performing the role of maintaining the list of registered holders is called the "security registrar". It will also register transfers of the registered Notes. However, you may not exchange registered Notes for bearer Notes. (Section 305)
You will not be required to pay a service charge to exchange or transfer Notes, but you may be required to pay any tax or other governmental charge associated with the exchange or transfer. The exchange or transfer of a registered Note will only be made if the security registrar is satisfied with your proof of ownership.
If the Company designates additional transfer agents, they will be named in the applicable prospectus supplement. The Company may cancel the designation of any particular transfer agent. The Company may also approve a change in the office through which any transfer agent acts. (Section 1002)
If the Notes are redeemable and the Company redeems less than all of the Notes of a particular series, the Company may block the exchange or transfer of the Notes in order to freeze the list of holders to prepare the mailing during the period beginning 15 days before the day the Company mail the notice of redemption and ending on the day of that mailing. The Company may also refuse to register exchanges or transfers of the Notes selected for redemption. However, the Company will continue to permit exchanges and transfers of the unredeemed portion of any Note being partially redeemed. (Section 305)
Payment and Paying Agents
If your Notes are in registered form, the Company will pay interest to you if you are a direct holder listed in the Trustee's records at the close of business on a particular day in advance of each due date for interest, even if you no longer own the security on the interest due date. That particular day, usually the Clearing System Business Day immediately prior to the interest due date, is called the "regular record date" and will be stated in the prospectus supplement. (Section 307)
The Company will pay interest, principal and any other money due on the registered Notes at the corporate trust office of the Trustee in New York City. That office is currently located at 101 Barclay Street, 7E, New York, NY 10286.
Interest on global securities will be paid to the holder thereof by wire transfer of same-day funds.
Holders buying and selling the Notes must work out between them how to compensate for the fact that the Company will pay all the interest for an interest period to, in the case of registered Notes, the one who is the registered holder on the regular record date or, in the case of bearer Notes, to the
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bearer. The most common manner is to adjust the sales price of the Notes to pro rate interest fairly between buyer and seller. This pro rated interest amount is called "accrued interest". The paying agent for a particular series will be set forth in the prospectus supplement establishing that series.
Notices
The Company and the Trustee will send notices only to direct holders, using their addresses as listed in the Trustee's records. (Sections 101 and 106)
Regardless of who acts as paying agent, all money that the Company pay to a paying agent that remains unclaimed at the end of two years after the amount is due to direct holders will be repaid to us upon its request. After that two-year period, direct holders may look only to us for payment and not to the Trustee, any other paying agent or anyone else. (Section 1003)
Special Situations
Mergers and Similar Events
The Company is generally permitted to consolidate or merge with another entity. The Company is also permitted to sell or lease substantially all of its assets to another entity or to buy or lease substantially all of the assets of another entity. No vote by holders of the Notes approving any of these actions is required, unless as part of the transaction the Company makes changes to the Indenture requiring your approval, as described later under "--Modification and Waiver". The Company may take these actions as part of a transaction involving outside third parties or as part of an internal corporate reorganization. The Company may take these actions even if they result in:
x a lower credit rating being assigned to the Notes; or
x additional amounts becoming payable in respect of withholding tax, and the Notes thus being subject to redemption at its option, as described below under "--Optional Tax Redemption".
The Company has no obligation under the Indenture to seek to avoid these results, or any other legal or financial effects that are disadvantageous to you, in connection with a merger, consolidation or sale or lease of assets that is permitted under the Indenture. However, the Company may not take any of these actions unless all the following conditions are met:
x If the Company merges out of existence or sell or lease its assets, the other entity must assume its obligations on the Notes and under the Indenture, including the obligation to pay the additional amounts described under "--Payment of Additional Amounts". This assumption may be by way of a full and unconditional guarantee in the case of a sale or lease of substantially all of its assets.
x If such other entity is organized under the laws of a country other than the United States or England and Wales, it must indemnify you against any governmental charge or other cost resulting from the transaction.
x The Company must not be in default on the Notes immediately prior to such action and such action must not cause a default. A default for this purpose would also include any event that would be an event of default if the requirements for notice of default or existence of defaults for a specified period of time were disregarded.
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x If the Company sells or leases substantially all of its assets and the entity to which the Company sells or leases such assets guarantees its obligations, that entity must execute a supplement to the Indenture, known as a supplemental indenture. In the supplemental indenture, the entity must promise to be bound by every obligation in the Indenture. Furthermore, in this case, the Trustee must receive an opinion of counsel stating that the entity's guarantees are valid, that certain registration requirements applicable to the guarantees have been fulfilled and that the supplemental indenture complies with the Trust Indenture Act of 1939. The entity that guarantees its obligations must also deliver certain certificates and other documents to the Trustee.
x The Company must deliver certain certificates and other documents to the Trustee.
x The Company must satisfy any other requirements specified in the prospectus supplement. (Section 801)
It is possible that the United States Internal Revenue Service may deem a merger or other similar transaction to cause for U.S. federal income tax purposes an exchange of debt securities for new securities by the holders of the Notes. This could result in the recognition of taxable gain or loss for U.S. federal income tax purposes and possible other adverse tax consequences.
Modification and Waiver
There are three types of changes the Company can make to the Indenture and the Notes.
Changes Requiring Approval of Each Holder. First, there are changes that cannot be made to the Notes without the approval of each holder. These are the following types of changes:
x change the stated maturity of the principal or interest on a Note;
x reduce any amounts due on a Note;
x change any obligation to pay the additional amounts described under "--Payment of Additional Amounts";
x reduce the amount of principal payable upon acceleration of the maturity of a Note following a default;
x change the place or currency of payment on a Note;
x impair any of the conversion rights of the Notes;
x impair your right to sue for payment or conversion;
x reduce the percentage of holders of the Notes whose consent is needed to modify or amend the Indenture;
x reduce the percentage of holders of the Notes whose consent is needed to waive compliance with various provisions of the Indenture or to waive specified defaults; and
x modify any other aspect of the provisions dealing with modification and waiver of the Indenture. (Section 902)
37
Changes Requiring a Majority Vote. The second type of change to the Indenture and the Notes is the kind that requires a vote of approval by the holders of the Notes which together represent a majority of the outstanding principal amount of the particular series affected. Most changes fall into this category, except for clarifying changes, amendments, supplements and other changes that would not adversely affect holders of the Notes in any material respect. For example, this vote would be required for us to obtain a waiver of all or part of any covenants described in an applicable prospectus supplement or a waiver of a past default. However, the Company cannot obtain a waiver of a payment default or any other aspect of the Indenture or the Notes listed in the first category described above under "--Changes Requiring Approval of Each Holder" unless the Company obtains your individual consent to the waiver. (Section 513)
Changes Not Requiring Approval. The third type of change does not require any vote by holders of the Notes. This type is limited to clarifications, amendments, supplements and other changes that would not adversely affect holders of the Notes in any material respect. (Section 901)
Further Details Concerning Voting. When taking a vote, the Company will use the following rules to decide how much principal amount to attribute to a security:
x For original issue discount securities, the Company will use the principal amount that would be due and payable on the voting date if the maturity of the Notes were accelerated to that date because of a default.
x For Notes whose principal amount is not known (for example, because it is based on an index), the Company will use a special rule for that security described in the prospectus supplement for that Note.
x For Notes denominated in one or more foreign currencies, currency units or composite currencies, the Company will use the U.S. dollar equivalent as of the date on which such Notes were originally issued.
The Notes will not be considered outstanding, and therefore will not be eligible to vote, if the Company has deposited or set aside in trust for your money for their payment or redemption. The Notes will also not be eligible to vote if they have been fully defeased as described under "--Defeasance and Discharge". (Section 101)
The Company will generally be entitled to set any day as a record date for the purpose of determining the holders of outstanding Notes that are entitled to vote or take other action under the Indenture. In limited circumstances, the Trustee will be entitled to set a record date for action by holders. If the Company or the Trustee set a record date for a vote or other action to be taken by holders of a particular series, that vote or action may be taken only by persons who are holders of outstanding Notes of that series on the record date and must be taken within 180 days following the record date or another period that the Company or, if it sets the record date, the Trustee may specify. The Company may shorten or lengthen (but not beyond 180 days) this period from time to time. (Section 104)
Redemption and Repayment
Unless otherwise indicated in your prospectus supplement, your Note will not be entitled to the benefit of any sinking fund - that is, the Company will not deposit money on a regular basis into any separate custodial account to repay your Notes. In addition, the Company will not be entitled to
38
redeem your Note before its stated maturity unless your prospectus supplement specifies a redemption commencement date. You will not be entitled to require the Company to buy your Note from you, before its stated maturity, unless your prospectus supplement specifies one or more repayment dates.
If your prospectus supplement specifies a redemption commencement date or a repayment date, it will also specify one or more redemption prices or repayment prices, which may be expressed as a percentage of the principal amount of your Note or by reference to one or more formulae used to determine the redemption price(s). It may also specify one or more redemption periods during which the redemption prices relating to a redemption of the Notes during those periods will apply.
If your prospectus supplement specifies a redemption commencement date, the Company may redeem your Note at its option at any time on or after that date. If the Company redeems your Note, the Company will do so at the specified redemption price, together with interest accrued to the redemption date. If different prices are specified for different redemption periods, the price the Company pays will be the price that applies to the redemption period during which your Note is redeemed.
If your prospectus supplement specifies a repayment date, your Note will be repayable by us at your option on the specified repayment date(s) at the specified repayment price(s), together with interest accrued to the repayment date.
In the event that the Company exercise an option to redeem any Note, the Company will give to the holder written notice of the principal amount of the Note to be redeemed, not less than 30 days nor more than 60 days before the applicable redemption date. The Company will give the notice in the manner described under "--Notices".
If a Note represented by a global security is subject to repayment at the holder's option, the depositary or its nominee, as the holder, will be the only person that can exercise the right to repayment. Any indirect holders who own beneficial interests in the global security and wish to exercise a repayment right must give proper and timely instructions to their banks or brokers through which they hold their interests, requesting that they notify the depositary to exercise the repayment right on their behalf. Different firms have different deadlines for accepting instructions from their customers, and you should take care to act promptly enough to ensure that your request is given effect by the depositary before the applicable deadline for exercise.
In the event that the option of the holder to elect repayment as described above is deemed to be a "tender offer" within the meaning of Rule 14e-l under the Securities Exchange Act of 1934, the Company will comply with Rule 14e-l as then in effect to the extent it is applicable to us and the transaction.
The Company or its affiliates may purchase the Notes from investors who are willing to sell from time to time, either in the open market at prevailing prices or in private transactions at negotiated prices. The Notes that the Company or they purchase may, in its discretion, be held, resold or cancelled.
Payment of Additional Amounts
The government of any jurisdiction in which the Company is incorporated may require it to withhold amounts from payments on the principal or any premium or interest on a Note for taxes or any other
39
governmental charges. If the jurisdiction requires a withholding of this type, the Company may be required to pay you an additional amount so that the net amount you receive will be the amount specified in the debt security to which you are entitled. However, in order for you to be entitled to receive the additional amount, you must not be resident in the jurisdiction that requires the withholding.
The Company will not have to pay additional amounts under any of the following circumstances:
x The U.S. government or any political subdivision of the U.S. government is the entity that is imposing the tax or governmental charge.
x The withholding is imposed only because the holder was or is connected to the taxing jurisdiction or, if the holder is not an individual, the tax or governmental charge was imposed because a fiduciary, settlor, beneficiary, member or shareholder of the holder or a party possessing a power over a holder that is an estate or trust was or is connected to the taxing jurisdiction. These connections include those where the holder or related party:
x is or has been a citizen or resident of the jurisdiction;
x is or has been engaged in trade or business in the jurisdiction; or
x has or had a permanent establishment in the jurisdiction.
x The withholding is imposed due to the presentation of a Note, if presentation is required, for payment on a date more than 30 days after the security became due or after the payment was provided for.
x The withholding is imposed due to the presentation of a Note for payment in the United Kingdom.
x The withholding is on account of an estate, inheritance, gift, sale, transfer, personal property or similar tax or other governmental charge.
x The withholding is for a tax or governmental charge that is payable in a manner that does not involve withholding.
x The withholding is imposed or withheld because the holder or beneficial owner failed to comply with any of its requests for the following that the statutes, treaties, regulations or administrative practices of the taxing jurisdiction require as a precondition to exemption from all or part of such withholding:
x to provide information about the nationality, residence or identity of the holder or beneficial owner; or
x to make a declaration or satisfy any information requirements.
x The holder is a fiduciary or partnership or other entity that is not the sole beneficial owner of the payment in respect of which the withholding is imposed, and the laws of the taxing jurisdiction require the payment to be included in the income of a beneficiary or settlor of such fiduciary or a member of such partnership or another beneficial owner who would not have been entitled to such additional amounts had it been the holder of such debt security.
40
x With respect to Notes originally issued in bearer form, the payment relates to a Note that is in physical form. However, this exception only applies if:
x the Note in physical form was issued at the holder's request following an event of default; and
x the Company have not issued physical certificates for the entire principal amount of such series of Notes.
x The withholding or deduction is imposed pursuant to European Council Directive 2003/48/EC on the taxation of savings income or any law implementing or complying with, or introduced in order to conform to, such Directive.
x The withholding or deduction is imposed on a holder or beneficial owner who could have avoided such withholding or deduction by presenting its Notes to another paying agent.
These provisions will also apply to any taxes or governmental charges imposed by any jurisdiction in which a successor to us is organized. The prospectus supplement relating to the Notes may describe additional circumstances in which the Company would not be required to pay additional amounts. (Sections 205, 802 and 1004)
Optional Tax Redemption
The Company may have the option to redeem, in whole but not in part, the Notes in the three situations described below. In such cases, the redemption price for Notes (other than original issue discount Notes) will be equal to the principal amount of the Notes being redeemed plus accrued interest and any additional amounts due on the date fixed for redemption. The redemption price for original issue discount Notes will be specified in the prospectus supplement for such securities. Furthermore, the Company must give you between 30- and 60-days' notice before redeeming the Notes.
Defeasance and Discharge
Except for various obligations described below, the Company can legally release itself from any payment or other obligations on the Notes (called "full defeasance") if it, in addition to other actions, put in place the following arrangements for you to be repaid:
x The Company must deposit in trust for your benefit and the benefit of all other direct holders of the Notes a combination of money and U.S. government or U.S. government agency notes or bonds that, in the opinion of a nationally recognized public accounting firm, will generate enough cash to make interest, principal and any other payments on the Notes on their various due dates.
x The Company must deliver to the Trustee a legal opinion of its counsel, based upon a ruling by the United States Internal Revenue Service or upon a change in applicable U.S. federal income tax law, confirming that under then current U.S. federal income tax law the Company may make the above deposit without causing you to be taxed on the Notes any differently than if the Company did not make the deposit and just repaid the Notes itself.
41
If the Notes are listed on any securities exchange, the Company must deliver to the Trustee a legal opinion of its counsel confirming that the deposit, defeasance and discharge will not cause the Notes to be delisted. (Sections 1402 and 1404)
If the Company ever did accomplish full defeasance as described above, you would have to rely solely on the trust deposit for repayment on the Notes. You could not look to us for repayment in the unlikely event of any shortfall. Conversely, the trust deposit would most likely be protected from claims of its lenders and other creditors if the Company ever become bankrupt or insolvent. However, even if the Company take these actions, a number of its obligations relating to the Notes and under the Indenture will remain. These include the following obligations:
x to register the exchange and transfer of the Notes;
x to replace mutilated, destroyed, lost or stolen Notes;
x to maintain paying agencies; and
x to hold money for payment in trust.
Default and Related Matters
Ranking
The Notes are not secured by any of the Company's property or assets. Accordingly, your ownership of the Notes means you are one of its unsecured creditors. The Notes may or may not be subordinated to any of its other debt obligations as indicated in the applicable prospectus supplement. If they are not subordinated, they will rank equally with all its other unsecured and unsubordinated indebtedness.
Events of Default
You will have special rights if an event of default occurs and is not cured, as described later in this subsection.
What Is an Event of Default? The term event of default means any of the following:
x The Company does not pay the principal or any premium on a Note within 14 days of its due date.
x The Company does not pay interest on a Note within 21 days of its due date.
x The Company does not deposit any sinking fund payment within 14 days of its due date, if the Company agreed to maintain a sinking fund for your Notes and the other Notes of the same series.
x The Company remains in breach of any covenant or any other term of the Indenture for 30 days after the Company receives a notice of default stating that the Company is in breach. The notice must be sent by either the Trustee or holders of 25% of the principal amount of Notes of the affected series.
x The Company remains in default in the conversion of any convertible security of a given series for 30 days after the Company receives a notice of default stating that the Company is in default.
42
The notice must be sent by either the Trustee or the holders of 25% of the principal amount of Notes of the affected series.
x If the total aggregate principal amount of all of its indebtedness for borrowed money, which meets one of the following conditions, together with the amount of any guarantees and indemnities described in the next point, equals or exceeds £50 million or, after August 1, 2014, £150 million:
x the principal amount of such indebtedness becomes due and payable prematurely as a result of an event of default (however described) under the agreement(s) governing that indebtedness;
x the Company fails to make any payment in respect of such indebtedness on the date when it is due (as extended by any originally applicable grace period); or
x any security that the Company has granted securing the payment of any such indebtedness becomes enforceable by reason of any default relating thereto and steps are taken to enforce the security.
x The Company fails to make payment due under any guarantee and/or indemnity (after the expiry of any originally applicable grace period) of another person's indebtedness for borrowed money in an amount that, when added to the indebtedness for borrowed money which meets one of the conditions described in the prior point, equals or exceeds £50 million or, after August 1, 2014, £150 million.
x The Company is ordered by a court or passes a resolution to wind up or dissolve, save for the purposes of a reorganization on terms approved in writing by the Trustee.
x The Company stops paying or is unable to pay its debts as they fall due, or the Company is adjudicated or found bankrupt or insolvent, or the Company enters into any composition or other similar arrangement with its creditors under the U.K. Insolvency Act.
x If a receiver or administrator is appointed in relation to, or a distress, execution, attachment, sequestration or other process is levied, enforced upon, sued out or put in force against, the whole or a substantial part of its undertakings or assets and (other than the appointment of an administrator) is not discharged or removed within 90 days.
x Any other event of default described in the applicable prospectus supplement occurs. (Section 501)
An event of default for a particular series of Notes does not necessarily constitute an event of default for any other series of Notes issued under the Indenture.
For these purposes, "indebtedness for borrowed money" means any present or future indebtedness (whether it is principal, premium, interest or other amounts) for or in respect of:
x money borrowed (including in the form of any bonds, notes, debentures, debenture stock or loan stock); or
x liabilities under or in respect of any acceptance or acceptance credit.
43
Remedies If an Event of Default Occurs. If an event of default has occurred and has not been cured, the Trustee or the holders of 25% in principal amount of the Notes of the affected series may declare the entire principal amount of all the Notes of that series to be due and immediately payable. This is called a declaration of acceleration of maturity. If an event of default occurs because of certain events in bankruptcy, insolvency or reorganization, the principal amount of all the Notes of that series will be automatically accelerated without any action by the Trustee, any holder or any other person. A declaration of acceleration of maturity may be canceled by the holders of at least a majority in principal amount of the Notes of the affected series. (Section 502)
The holders of a majority in principal amount of the outstanding Notes of any series will have the right to direct the time, method, and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with respect to the Notes of such series, provided that (a) such direction must not be in conflict with any rule of law or with the Indenture, (b) the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction, and (c) such holders shall have offered to the Trustee security or indemnity satisfactory to the Trustee against the costs, expenses, and liabilities which might be incurred by it in compliance with such request or direction. (Sections 512 and 603) Before you bypass the Trustee and bring your own lawsuit or other formal legal action or take other steps to enforce your rights or protect your interests relating to the Notes, the following must occur:
x You must give the Trustee written notice that an event of default has occurred and remains uncured.
x The holders of 25% in principal amount of all outstanding Notes of the relevant series must make a written request that the Trustee take action because of the default, and must offer satisfactory indemnity to the Trustee against the cost and other liabilities of taking that action.
x The Trustee must have not taken action for 60 days after receipt of the above notice and offer of indemnity.
x The holders of a majority in principal amount of all outstanding Notes of the relevant series must not have given the Trustee a direction that is inconsistent with the above notice. (Section 507)
However, you are entitled at any time to bring a lawsuit for the payment of money due on your Note on or after its due date. (Section 508)
Regarding the Trustee
The Company and some of its subsidiaries maintain banking relations with the Trustee in the ordinary course of its business.
If an event of default occurs, or an event occurs that would be an event of default if the requirements for giving us notice of the default or its default having to exist for a specified period of time were disregarded, the Trustee may be considered to have a conflicting interest with respect to the Notes or the Indenture for purposes of the Trust Indenture Act of 1939. In that case, the Trustee may be required to resign as trustee under the Indenture and the Company would be required to appoint a successor trustee.
44
Exhibit 4.5
LENDER ACCESSION AGREEMENT To: · The Royal Bank of Scotland pic as Agent From: Raiffeisen Bank International AG Vienna, 12 July 2018 Vodafone Group Pic USD 3,935,000,000,-(as increased to USD 4,090,000,000) Revolving Credit Agreement dated 27 February 2015 (the "Credit Agreement") Tenns used herein which are defined in the Credit Agreement shall have the same meaning herein as in the Credit Agreement. We refer to Clause 2.8 (Additiuonndael rLtehned!Cerrse)d. iWt Aeg, Rreaeimffeeniste.noBr aannky ICnotemrnmaittimoneanltAisGin, AfomrcSe.ta(dbt)pTnhrke9F.aAc-il1i0ty30OVffiiecnenaan,dagadrederetossbfeQcronmoetipcaerstyoftothaenAddtodibtieonbaoluLndenbdyerthfeortetrhme spuofrptohseeCs roefdCitlAaugsree3em32en(At adsdarensAsedsdfiotironnoatlicLeesn)dise:r RinaiafcfecoisrednanBcaenwk iltnhteCmlaautisoen2ai.8A(GAdAdmitioSntaadl tLpeanrkde9rsA) -w10it3h0eVffeiecntnoanaatntnd. fMrorm. KIoAnustgaunsttin20S1o8u.stOalu,reR-mevaoill:vkinognsCtarnetdiint.Csooumstmali@tmrebninttiesmUaStiDon7a5l..c0o0m0.0an00d.M-. Ws. eIncgornidfiRnnosteonewaicrhthF,ien-amnaciel:Pianrgtyridth.raotswenew: (iart)hh@avrbeinmtaedrneaotiuornoawl.cnoimndependent investigation and assessment of the financial condition and affairs of each Obligor and its related entities in connection with its participation in the Credit Agreement and have not relied exclusively on any infonnation provided to us by a Finance Party in connection with any Finance Document; and will continue to make our own independent appmisal of the creditworthiness of each Obligor and its related entities while any amount is or may be outstanding
' '· This Agreement and nny non-contractunl obligations nrising out of or in connection with it are governed by En lish law. By: Ingrid ROSENWIRTH THE ROYAL BANK OF SCOTLAND PLC ' l'!'M I c. M IU-f;A. VODAFONE GROUP PLC A By: ('-
Exhibit 4.6 Classification: Confidential
NOVATION CERTIFICATE To: THE ROYAL BANK OF SCOTLAND PLC as Agent From: LLOYDS BANK PLC and TD BANK EUROPE LTD Date: 11 December 2019 Vodafone Group Pie U.S.$3,395,000,000 (as increased to U.5.$ 4,090,000,000) Revolving Credit Agreement dated 27 February 2015 (as amended from and /restated from time to time) We refer to Clause 27 .4 (Procedure for novations). 1. We Lloyds Bank plc (the "Existing Lender") and TD Bank Europe Ltd (the "New Lender") agree to the Existing Lender and the New Lender novatlng all the Existing Lender's rights and obligations referred to in the Schedule in accordance with Clause 27.4 (Procedure for novations). 2. The specified date for the purposes of Clause 27.4(c) (Procedure for novations) is ]?"December 2019. 3. The Facility Office and address for notices of the New Lender for the purposes of Clause 33.2 (Addresses for notices) are set out in the Schedule. 4. The New Lender confirms that it has given notice to Vodafone of the entry into of this Novation Certificate and has obtained Vodafone's consent in accordance with Clause 27.2(c)(i) (Transfers by Lenders). 5. This Novation Certificate and any non-contractual obligations arising out of or in connection with it are governed by English law.
THE SCHEDULE Rights and obligations to be novated
Revolving Credit Facility USD 77,500,000.00
TD BANK EUROPE LTD Facility Office Address for notices existing lender
Classification: Confidential LLOYDS BANK PLC By:
Date:
TD BANK EUROPE LTD By:
Andrew Williams Date: 17/12/19
THE ROYAL BANK OF SCOTLAND PLC
bate. [7/12z/ /
Exhibit 4.7
NOVATION CERTIFICATE
To:
THE ROYAL BANK OF SCOTLAND PLC as Agent
From: LLOYDS BANK PLC and CAIXABANK S.A., UK BRANCH
Date 2] April 2019
Vodafone Group Ple -- U.S.$ 3,935,000,000 (as increased to U.S.$ 4,090,000,000) Revolving Credit Agreement dated 27 February 2015 March 2014 (as amended from and/restated from time to time)
We refer to Clause 27.4 (Procedure for novations).
I.
We, Lloyds Bank Pie (the "Existing Lender") and CaixaBank S.A., UK Branch (the "New Lender") agree to the
Existing Lender and the New Lender novating all the Existing Lender's rights and obligations referred to in the Schedule in
accordance with Clause 27.4 (Procedure for novations).
2.
The specified date for the purposes of Clause 27.4(c) (Procedure for novations) is £7April 2019.
3.
The Facility Office and address for notices of the New Lender for the purposes of Clause 33.2 (Addresses for
notices) are set out in the Schedule.
4.
The New Lender confirms that it has given notice to Vodafone of the entry into of this Novation Certificate and has
obtained Vodafone's consent in accordance with Clause 27.2(c)(ii) (Transfers by Lenders).
5.
This Novation Certificate and any non-contractual obligations arising out of or in connection with it are governed
by English law.
THE SCHEDULE
Rights and obligations to be novated
FACILTY
Revolving Facility
COMMITMENT
U.S.$
77,500,000
New Lender Details
Facility Office address: CaixaBank S.A., UK Branch, 8" Floor, 63 St Mary's Axe, London, EC3A 8AA
Fax number: +44 (0) 207 621 9777
Attention details for notices:
(i) Administration Matters
lndividual(s): Daniel Batista/Marcus Dews
Telephone No: +44(0)207398160
Emails addresses: buzon.uafe@caixabank.com, dabatista@caixabank.com, mdews@icaixabank.com), iosejavier.ruiz@gdscusa.es
(ii) Credit Matters
lndividual(s): Sergi Periago
Telephone No: +44 (0) 2073980157 / +44 (0) 2073980143
Emails addresses: buzon.uafe@caixabank.com, speriago@aiabank,com,
LLOYDS BANK PLC as Existing Lender ». 4Q4n Date: CAIXABANK S.A., UK BRANCH as New Lender By:
By: Daniel Batista Date:
Zacharioudakis
THE ROYAL BANK OF SCOTLAND PLC as Agent
By: Dae. 27//0
Exhibit 4.9
0 6 December 2019 Barclays European Loans Agency 1 ChurchillPlace London E14 5HP For the attention of Sarah Oldfield, European Loans Agency Vodafone Group Plc - 3.86bn (as increased to 4.01bn) 5+1+1 Revolving Credit Facility dated on 11 January 2018 ("RCF") Included within the RCF referenced above is an Extension Option,Section 6. Whereby, Vodafone may give notice to the Facility Agent not more than 60 days and not Less than 30 days before the second anniversary that it wishes to request that the FinalMaturity Date be extended for a further period of one yevaor di.aef.oenxet.ecnodmthReecguisrrteernetdMoafftiucreit:yVoDdaatefoonfe1H1oJuasneu,aTryhe2C02o4nntoec1t1ioJna.Nnueawrybu2r0y2.5B. ePrlkesahsierea.cRceGp1t 4th2isFLNe.UttenritaesdcKoninfgirdmoamti.oRnegthisatteVreoddianfoEnnegwlainsdheNsoto.0a1p8p3l3y6f7o9r Csu2cGh eanoenrealyear extension in accordance with Section 6 of the RCF. In your role as Facility Agent please can you communicate this request to allLenders and collate the Lender responses by Friday 13 December 2019. If you have any questions or require clarification, please do not hesitate to contact Jamie Stead, Vodafone Group Treasury Director. Yours faithfully, argherita Della Valle Jamie Stead Group Chief FinancialOfficer Group Treasury Director Vodafone Group Plc 1 Kingdom Street Paddington Central London.W2 6BY.United Kingdom T +44 (Ol1635 33251 F +44 (0) 1635 238 080
INDIA NON JUDICIAL e-Stamp Certificate No. Certificate Issued Date Account Reference Unique Doc. Reference Purchased by Description ot Document Property Description Considerdlmn Price (Rs.) IN-DL84613520084932R 08-May-2019 09:53AM IMPACC (IV)/ dl1005503/ DELHI/ DL-DLH SUBIN-DLDL100550374435409778444R BHARTIINFRATEL LIMITED Article 5 General Agreement Not Applicable 0 (Zero) BHARTIINFRATEL LIMITED Not Applicable BHARTIINFRATEL LIMITED 300 (Three Hundred only) First Party Second Party Stamp 0;;ty Paid By Stamp D· ·''/ Amount(Rs.) .............--- - ·.............Plea:.r: w!i!e or type below this iine ··.· . .·--------.....·--- .. Ujf \-<1 t b,.Q \-uJJULk. \-t.-UL \ShoJ\-h' 1'o Y-5\..s c:UA.·, .Qf-e-euJ.-\. f ,v) '""-Dc..J'\1 b....QJ\, 4. Il 0\ A-\ ntuW.r.ul a.c\. f?:> '-'.oJ"L\i lJv-.ctv.s l:J \" k-r0-\-J U 1 ·,j'I·;. ··:;.J,·t:, ·!l'"··it:··. '! )-: ·1::;:r 1 ,,··.· ·, ·, ,;!(' · ·'··tt', .· . :· " : ··' :, '·'.·.·:·:: '1 ·, :f ;t("l .·\r. ·-h' ;; ;p,:r::: :!''· ··· ·:·'· il;·.:: "'1: . ,,('.;· J'l ,: ! 'I · ·'
Exhibit 4.29
ThisNLoe.tt1e0r,ATgorweeemr-Aen,t4(t"hLFeltoteorr",)DisLeFnCteyrebderinCtoityonGtuhriusg2r4amth,dHaayryofanOac-1to2b2e0r0, 220(1he9r:eBinYafAteNr rDefBerEreTdWtoEaEsN":InBdhuasr"ti, IwnhfriactheleLxpimreistesido,naschoamll,puannlyesinsciot rbpeorreapteudgnuanndtertoththeelacwonstoefxItnodriam,ehaanviinnggtihtesrreeogfi,sbteereddeeomffeicdetoatm90ea1n, PaanrdkiCncelnutdrae Sitescstuocrces3s0o,rsNaHn-d8,pGerumruitgteradma,ssHiganrsy)a;nTah-e1e2n2t0it0ie1s, lIinsdteiad (ihneAreninnaexftuerrereAfehrreerdetoto(ahser"eIinnfarfatteerl"r,efwehrriecdh teoxpasre"sVsioodnasfhoanlel,",uwnlheiscshitebxeprreespsuiognnasnhtaltol, tuhnelecsosnittebxet orerpmuegannainntgtothtehreeocfo,nbteexdteoermmedeatnoinmgetahneraenodf,inbceluddeeemitesdsutoccmesesaonrsanadndinpcelrumdeitttehdeiarsssuigcnces)s;soBrhsaarntidApierrtemliLttiemdiatesdsi,gancs)o;mVpoadnayfoinnceoIrnptoerrantaetdiounnadl eHrothldeinlagws sBo.Vf .I,nadicao,mhapvainnygiintscorrepgoisrtaetreeddionftfhiceeNaettBhehralratnidCsr,easncdenhta, v1inNgelitssonreMgisatnedreeldaoRffoicade,aVt RasiavniutmKuQnuj,aNdreawntD1e7l3h,i2910190L0C70C, aInpdeillae(ahaenredineanftIeJrssreelf,etrhreedNteothaesr"laAnidrtse(l""V, wohdiacfhoneexCproenssfiiromnisnhgalPla, rutnyl"e)s;saintdbVe roedpaufgonnaenItdteoatLheimciotnedte,xat coormmpeaannyinigncthoerpreooraf,tebdeudnedeemretdhetolamwesaonfaInnddiian,chluadveinigtsitssurcecgeissstoerrsedanodffpiceermatitSteudmaasnsiTgonsw);erN, ePtltolet NInof.r1a8s,trSuecctutorer-I1n1v,eGstamnednhtisnaLgiamritGeudj,aaracto3m8p2a0n1y1i(nhceorrepinoaraftteerdruenfedrerer dthteolaasw"sVoIfLI"n,dwiah,ihcahveixngprietsssrieognissthearelld, uonffleicses aittb3erdreFpluogonr,aWnt otorldthmeacrokn2teAxtssoertm8,eaAneirnogcithtye,rNeoHf,-b8e, NdeeewmDedelthoi m e1a1n0 a0n3d7,inDcelulhdie, iItnsdsiauc(cheesrseoinrsafatnedr rpeefermrrietdtetdoaasssi"gNnest)t.leIn"f,rwatheilc, hAeirxtpelr,eNsseiottnles,hIanldl,uus,nlVesosdaitfobneereapnudgVnaILntatroethheerecoinnatfetxetroarlsmoeraenfeinrrgedthteoreinodf,ivbiedudaelelmy eads "toPamrteya"naanndd, icnocllleucdteiviteslys,uacsce"sPsaorrtsieasn"d. WpeHrmEiRttEedAaSs:sAig.nTs)h;eInPdaurtsieTsoawnedrtshLeiVmoitdeadf,oanecoCmopnafinrymiinncgoPrpaortryateexdeucnutdeedr tthhee IlamwpsleomfeInndtaitai,ohnaAvignrgeeimtsernegt idsateterdedAopfrfiilce25a,t2B0u1i8lding ("Implementation Agreement") to give effect to a scheme of amalgamation between Infratel and Indus. Capitalised words and expressions used but not defined herein shall have the same meaning as assigned to them under the Implementation Agreement. B. In terms of the Implementation Agreement, several actions were to be completed by the Long Stop Date for the Transaction to become effective, which included but was not limited to seeking requisite approvals from various Governmental Authorities. Until date since all approvals have not been received, the Parties are of the view that the completion of the Transaction is therefore not possible prior to the Long Stop Date. 1
C. The Parties are now agreeing to extend the Long Stop Date, subject expressly to the terms set out in this Letter. Now therefore the Parties hereby agree as follows: 1. The Parties hereby extend the Long Stop Date under the Implementation Agreement and the Merger Scheme to December 24, 2019 ("Extended Longstop Date") on the condition that the Parties shall mutually agree to: (i) execute appropriate amendments to the Implementation Agreement modifying the valuation terms for the Transaction and the pre-closing adjustments to be undertaken prior to giving effect to the Transaction; and (ii) enter into an appropriate arrangement to secure the payment obligations of VIL to the Merged Entity under the various master service agreements entered into by VIL with Infratel and Indus (which would vest with the Merged Entity upon completion of the Transaction) and entering into binding agreements to give effect to such security arrangements, in each case based on the terms set out in Annexure B (the amendments under (i) above and the binding agreements under (ii) above referred to as "Definitive Documents"). Infratel and Indus shall undertake necessary actions to make corresponding amendment to the definition of Long Stop Date in the Merger Scheme. 2. It is agreed that if the Parties are unable to agree and execute the Definitive Documents or if all conditions to the Transaction as set out in the Implementation Agreement are not completed, in each case, on or prior to the Extended Longstop Date, then: (a) Closing shall not occur; and (b) the Implementation Agreement shall stand terminated as of October 24, 2019 on the terms set out therein. Any Party shall thereafter, at its sole discretion, be at liberty to withdraw the Merger Scheme. 3. This Letter may be entered into in any number of counterparts, all of which taken together shall constitute one and the same instrument, but shall not be effective until each Party has executed at least one counterpart. Further, the delivery of a PDF format copy of an executed signature page shall have the same force and effect as the delivery of an originally executed signature page. 4. This Letter shall be effective from October 24, 2019. 5. The provisions of Clauses 14 (Confidentiality), 15 (Announcements), 16.9 (Arbitration) and 16.17 (Governing Law) of the Implementation Agreement shall apply mutatis mutandis to this Letter. [Remainder of this page has been intentionally left blank] 2
In witness whereof, this Letter Agreement has been entered into on the date and year first above written. For and on behalf of Bharti Infratel Limited Title: Cot.APau.a.r Limited For and on behalf of Bharti Airtel Name: Title: Investments Limited For and on behalf of Nettle Infrastructure Name: Title: [Signature Page to the Letter Agreement]
In witness whereof, this Letter Agreement has been entered into on the date and year first above written. For and on behalf ofBharti Infratel Limited Name: Title: For and on behalf of Bharti Airtel Limited Name: Title: For and on behalf of Nettle Infrastructure Investments Limited Name: Title: (Signature Page to the Letter Agreement]
In witness whereof, this Letter Agreement has been entered into on the date and year first above written. For and on behalf ofBharti Infratel Limited Name: Title: For and on behalf of Bharti Airtel Limited Name: Title: For and on behalf of Nettle Infrastructure Investments Limited Name: Title: [Signature Page to the Letter Agreement]
For and on behalf of Al-Amin Investments Limited For and on behalf of Asian Telecommunication Investments (Mauritius) Limited v ctL-1 V\ --'<l-e f' k ::-:N.:::::e :.'.:rt:?-=:;=q= {=CU.5-----n b t rec +=v For and on behalf of Euro Pacific Securities Ltd A uq .-, V\; e ker-k [Signature Page to the Letter Agreement]
For and on behalf ofVodafone Telecommunications (India) Limited For and on behalf ofMobilvest For and on behalf of Prime Metals Ltd For and on behalf of Trans Crystal Ltd [Signature Page to the Letter Agreemen
DocuSign Envelope ID: C62C0061-F541-48B6-876C-B004A49A591C For and on behalf of Omega Telecom Holdings Private Limited Name: Title: Priyanka Sinha Authorised Signatory For and on behalf of Telecom Investments India Private Limited Name: Priyanka Sinha Title: Authorised Signatory For and on behalf of Jaykay Finholding (India) Private Limited Name: Priyanka Sinha Title: Authorised Signatory For and on behalf of Usha Martin Telematics Limited Name: Title: Priyanka Sinha Authorised Signatory [Signature Page to the Letter Agreement]
For and on behalf of Vodafo /(.A p ..0 &--o PAN )(_t(t-j c..n1'f/fA N Name: Title: >'.st.c.( nft Ry [Signature Page to the Letf".',r Agreemen
For and on behalf of Indus Towers Limited ) [Signature Page to the Letter Agreement]
For and on behalfofVodafone International Holdings B.V. Name: n .RuCk£ s Title: Irc-£.c [Signatu/9 Page to the Letter Agreement]
Annexure A Vodafone (a) Al-Amin Investments Limited, a company incorporated in Mauritius, and having its registered office at Fifth Floor, Ebene Esplanade, 24 CybercityL, iMmiatuerdi,tiausco(bm)pAasniyaninTceolrepcoormatmeduinnicIantdioianuInndveersttmheenCtsom(MpaanuireitsiuAsc)tL, 1im95it6e,da, nadcohmavpinangyitisnrceogripsoterraeteddoifnfiMceaautr2it0iu1s-,2a0n6d, ShhaivvinSgmitrsitrieCghisatmerbeedros,ff2incde aFtloFoifrt,h4F9l/oAorD, rE. bAennneieEsBpelsaannatdRe,o2a4d,CWyboerrlci iNtya,kMa,aMuruitmiubsa(ic) C40C0II0(1M8,aMuraithiuarsa),shIntrca.,, Iancdoiam(pj)anTyelienccoomrpoInravteesdtminenMtsaIunrditiiausP,raivnadtehaLviimngiteidts, raegcoismtepraednyofinficcoerpaot rFaitfethd FinloIonrd,iEa buenndeerEtshpelaCnoadmep,a2n4ieCsyAbcetr,c1it9y5,6M, aanudrithiuavsi(ndg) iEtsurroegPisatceirfeicdSoefcfiucreitaiet s2L01td-2, 0a6c,oSmhpivanSymirnictioCrphoarmatbeedrsin, 2MndauFrliotiours,, 4a9n/dAhDavri.nAgnintsiereBgeisstaenrtedRooaffdi,ceWaotrFliifNthakFalo, oMr,uEmbbeanieE4s0p0la0n1a8d,eM, 2a4hCaryabsehrtrcait,yI,nMdiaau(rkit)iuJasy(kea)yVFoidnahfoolndeinTgel(eIncdoima)mPurnivicaatetioLnims (iItnedd,iaa)cLoimmpitaendy, ainccoomrppoarnayteidncinorIpnodriaateudndinerMthaeuCritoimusp,aannideshAavcitn,g19it5s6r,eagnisdtehraevdinogffiictseraetgFisitfethreFdloooffri,cEebaetn2e01E-s2p0la6n, aSdhei,v2S4mCryitbi eCrhciatmy,bMerasu, 2rintidusF(lof)oMr, 4o9bi/AlveDstr,. aAcnonmiepBaneysainntcRoropaodr,aWtedorinli MNaakuari,tiMusu,manbadihav4i0n0g0i1ts8r,eMgiashtearreadshotfrfai,cIenadtiaFi(flt)hUFslhoaorM, EabrteinneTEeslepmlaantaicdse,L2im4 iCteydb,earcciotym, pManauyriinticuosr(pgo)raPtreidmienMInedtaialsuLntdde,rathceomCpomanpyaniniecos rApcotr,a1te9d5i6n, aMnaduhraitviuins,gaintsdrheagvisitnegreidtsorfefgicisetearteEd-o4f7f,icBeaantkFraiftShupFeloroMr,aErkbeetn,eBEasnpklraan,aHdoe,w2r4ahCyb7e1r1ci4ty0,3M, WauersittiBusen(gha)lT, rIanndsiaC1r0ystal Ltd, a company incorporated in Mauritius, and having its registered office at Fifth Floor, Ebene Esplanade, 24 Cybercity, Mauritius (i) Omega Telecom Holdings Private
Annexure B Closing Adjustments VIL PREPAYMENT VIL will make a prepayment to Enlarged Indus of an amount equal to INR 2,400 Cr from the proceeds received from the cash sale of VIL's 11.15% shareholding in Indus in relation to its payment obligations under the Master Services Agreements ("MSAs"). The payments under the MSAs for the payments due post closing will be reduced by 100%(the "Discount"), unless a moratorium on VIL's DOT spectrum payments is granted, in which case the discount will be 50%, until such time that the aggregate Discount equals INR 2,400 Cr. Additionally, all undisputed payments outstanding by Bharti Airtel and VIL to the Enlarged Indus as of the closing date should be paid on the closing date. VODAFONE AND ABG SECURITY Security Package: Share Pledge and the Corporate Guarantee as described below. Description: Subject to the secondary pledge creation below, the Security Package will come into effect when Vodafone has sold an amount of shares in Enlarged Indus equal to or greater than the value of the outstanding loan amount including principal + outstanding interest (the "Loan Amount), allowing the pledge to Vodafone's lenders to be released at the point of completion of such sale (the "Security Effective Date"). The purpose of the Security Package is to guarantee VIL's payment obligations (both past and future) under the MSAs (including Energy). Such payments being made after the date of creation of corporate guarantee. Corporate Guarantee Amount: The Corporate Guarantee will be for an amount equal to any cash proceeds realised from the sale of shares in Enlarged Indus after the Loan Amount has been repaid, up to a maximum guarantee amount oMf IaNxiRm8u,m25G0uCarra("nMteeaxAimmuomunGt iusarreadnuteceedA, masoaubnot"v)e.,TtoheZCeroor.pVoroadteafGonuearwaniltlebeeAfrmeoeutontssehllaltlhebeplreeddguecdedshbayre5s0,%freoef fVroILm'senpcauymmbernatnscme,aidneaucncdoerrdathneceMwSiAthst(hiencslhuadrienhgoEldneersrg'ya)g.rTeehme eMnta,xpirmouvmideGdutahreanptreoeceAemdsooufntsuwcihllsbaeleresdhualclerdesbuyl:t ii)n5a0n%eqoufiVvaIlLen'st pvaaylumeeonftsC(oinrpcoluradtiengGEunarearngtye)embaedcoemunindgeravthaeilMabSleAassfdaellsicnrgibdeudeaabfotevret.hIef StheecuLroitaynEAffmeoctuinvet hDaastneoPtabyemenenrtespmaiaddwe iuthnidne1r 2thme oCnotrhpsooraftDe 2Gculaorsainntge,eVPorodcaefoendes wreiclelicvreedatpeuarssueacnotntdoaerynfpolrecdegmeeonnt othfethsehaSrheasrienPflaevdoguer (osfeEe nblealrogwed), Ipnrdouvsidtehdatthwaitllabneycsoumceh esfafleecmtivuest1b2emdoonntehtsoauftnerreDla2tedclo3srdinpga. r1ti1es with a view to maximise proceeds and in any event the amount deducted from Maximum Guarantee Amount shall be no less than the prevailing market price of the shares less a 5% discount ii) iii) Share Pledge: After Vodafone has sold enough shares to repay the Loan Amount and the pledge to Vodafone lenders has been released, any remaining shares it holds shall be pledged to Enlarged Indus until the
Vodafone to start a process for the sale of its shareholding in Enlarged Indus within 3 months of D2 closing. For such purposes, the Board of Enlarged Indus will commit to use commercially reasonable endeavours to assist Vodafone with the sale process (e.g. passing of appropriate resolutions to assist and support a sale, preparation of a business plan, marketing materials for the sale process, host management meetings with potential purchasers and grant the due diligence access including Q&A). Bharti will provide all such assistance as may be required in order for Vodafone to run a value maximising sale process. If Vodafone has been unable to enter into definitive agreements to sell a sufficient number of shares to repay the Loan Amount and release the pledge within 18 months of D2 closing and thereafter complete such sale within a reasonable time, it will grant Bharti a drag along right for such number of shares whose sale proceeds will enable the repayment of the Loan Amount. Any such drag can only be done through a sale by Bharti to a non-related 3rd party on arm's length terms, and the minimum price paid for Vodafone's shares will be at the market price with upto 5% discount. The drag will also be subject to consent from Vodafone's lenders. Default: In the event of default of VIL's payment obligations under the MSAs (including Energy), and after the dispute resolution process under the MSAs has been followed, Enlarged Indus will be able to claim under the Security Package (including enforcement of pledge and/or claim under the corporate guarantee) for the default amount subject to the Maximum Guarantee Amount as at the time of the claim. The Corporate Guarantee will be provided by Vodafone Group Plc. The Corporate Guarantee can be replaced by a bank guarantee or cash collateral provided by VIL. Definitive Agreements in relation to the above Security Package to be executed and implemented prior to D2 closing. VALUATION TERMS The shareholding merger ratio will be determined based on a set of adjustments that capture, a revised VWAP based on 30 day average to 18 October 2019 (INR 254p), the roll-forward of EBITDA to H1FY20 (annualised) and net debt as at 30 September 2019 (adjusted for site exit revenue amounts payable for the outstanding instalments and receivables, from Airtel and VIL, >180 days overdue being provided for, in line with JV partner provisioning policy). Subject to review and numbers. verification of all The VIL cash election is based on a 60 day VWAP and the other terms set out above. 12
Exhibit 4.30
INDIA NON JUDICIAL e-Stamp Certificate No. Certificate Issued Date Account Reference Unique Doc. Reference . Purchased by Description of Document Property Description Consideration Price (Rs.) IN-DL98279009838414R 19-Dec-2019 10:27 AM IMPACC (IV)/ dl857503/ DELHI/ DL-DLH SUBIN-DLDL85750306303798707952R VODAFONE IDEA LTD Article 5 General Agreement Not Applicable 0 (Zero) VODAFONE IDEALTD Not Applicable VODAFONE IDEA LTD 100 (One Hundred only) First Party Second Party Stamp Duty Paid By Stamp Duty Amount(Rs.) ·...··...·· · · ....·.·····.·.··..·····.·······..Please write or type below this line······ . .· ··························· · ··.·. lH1 s pA 11?\< -n-le I Nf Gt RA 1..-P A fZT sTAMp A N 0F FoRMs L£11"14( AGrR6"6rv16NIDAfep 2Y ])t;C6tv1B8R2-0ICfltMDNCi BHA R Ti 1 1eR-ALl A lNF RA ffLl-IMI f6])) IN:t>vs '(oWe}Z..f. f Dt?AWM I(6D. l..IM l1'e]) ANt> VO])A PONG SL"!Ulo<y Ale< t: I lh· dlllr"l·l·cily of this SL8n1p Ccniflcnte should be verified at "w·wt,shcileslamp.com" Any discrepancy in the details on th1s Certificate and as .\11111110; 1 hP. W(:hsite ·endnrs i t invA lid .: HtHH:'; of : ilecklllH :11(-' lt;gltlfll<)CY 1<.:: on the use1s of tlHccrtiftca!e, !r1 :;-1:. -: 111 :-JIIV cilscr< :f) llll y plen..,e 1:;fcu1n lhe CcHnpetent Aulhoritv
regTihsitserLedettoefrfiAcegraeteBmueinldti(n"gLNetote.r1"0) ,isTeonwteerre-Ad ,in4ttoh oFnlotohris, D24LtFh Cdayybeorf CDietyc,emGbuerur,g2ra0m19, HataNryeawnaD-1e2lh2i0,0I2nd(hiae:rBeiYnafAteNrDreBfeErrTeWd tEoEaNs :"IBnhdaurst"i,Inwfhraictehl eLxipmreitsesdio, na cshoamllp,aunnyleisnscoitrpboerraetpeudgunnadnetrtothtehelacwosnotefxItnodriam, heaanviinngg tihtserreegofis, tbeereddeoefmfiecde taot m90e1a,nPaanrdk iCnecnlutrdaeSietscstourcce3ss0o, rNsHan-d8p,eGrmuriuttgerdamas,sHiganrsy);anTahe- 1e2n2ti0ti0e1s,lIisntdeidai(nheArneinneaxfuterrerAefehrerreedtoto(haesre"iInnafrftaetrelr"e,fwerhreicdhtoexapsr"eVssoiodnafsohnael"l,, uwnhleicshs ietxbperersespiuognnsahnatllto, utnhleecssonittebxetroerpumgenaannint gtoththeerecoofn, tbeextdoeremmeedantoinmg ethaenreaonfd, ibneclduedeemietsdstuocmceesasnorasnadnidncpleurdmeitttheedirassusicgcness)s;oBrshaanrtdi ApeirrmtelitLteidmaitsesdig, nasc);oVmopdanafyoinnecoInrpteorrnaatteidonuanldHeroltdhienlgaswBs.oVf.,Inadcioam, hpaavniynginitcsorrepgoirsatteerdedinotfhfieceNaetthBehrlaarntidCs,reasncdehnat,v1inNgeiltssornegMisatenrdeedlaoRffoicaeda, tVRaisvainutmKQunuja,dNraenwt 1D7e3lh, 2i 90191L00C70C,aIpnedlilae (ahaenrediennafItJesrserel,fethrreeNd etothaesrl"aAndirste(l""V, owdhaifcohneexCporensfsiiromninshgaPlal,rtuyn"l)e;sasnitdbVeordeapfuognneanIdtetoa Lthiemcitoendt,eaxtcoormmpaeannyiningctohreproeroaft,ebdeudnedeemr tehdetloawmseaonf Iannddiain, chlauvdiengitsitssurcecgeisstseorresdaonfdfipceeramt iSttuemd aanssTigonws)e;r,NPeltotlteNInof.1ra8s,trSueccttuorre-1I1nv, GesatmndehnitnsaLgaimr Giteudja, raact o3m82p0a1n1y ainncdoirtpsocroartpedoruantedoerfftihcee laatw7sthoFf lIonodri,a,Khoanvniencgtuitss, rTeogwiseterrBed, Bofhfaicvebahtu3tirMd Farlogo, rO, pWpoorslidtemNarekw2DAeslhseitR8a,iAlwearyocSittya,tiNonH(A- 8jm, NereiwGDateelShiide)1,1N0e0w37D, eDlhelih1i,10In0d0ia2,(hInedreiain(ahfeterer irneaffetrerredretfoerarsed"Ntoeattsle""V, IwLh"i,cwh heixcphreesxspiornessshioanll,shuanllle,susniltebses irtebpuegrnepanutgntoantht etocothnetecxotnoterxmt eoarnmineganthinegretohfe,rbeeofd,ebeemdeedemtoemdetoanmaenadnianncdluidnecliutsdseuictscessuscocressasnordspaenrdmpitetermd iattsesdigansss)i;gInnsd)u. sInTforawteelr,sALiirmteilt,eNd,eattlceo, mInpdaunsy, VinocdoarfpoonreataendduVndILer atrheehlaewresinoaffItenrdaials,oharevfienrgreitdsto individually as "Party" and, collectively, as "Parties". WHEREAS: A. The Parties and the Vodafone Confirming Party executed the Implementation Agreement dated April 25, 2018 ("Implementation Agreement") to give effect to a scheme of amalgamation and arrangement between Infratel and Indus. Capitalised words and expressions used but not defined herein shall have the same meaning as assigned to them under the Implementation Agreement. B. In terms of the Implementation Agreement, several actions were to be completed by the Long Stop Date for the Transaction to become effective, which included but was not limited to seeking requisite approvals from various Governmental Authorities. The Long Stop Date was defined as the date falling 18 months after the Execution Date, which was conditionally extended until 1
December 24, 2019 ("Extended Longstop Date") pursuant to the letter agreement dated October 24, 2019 ("Extension Agreement") since all approvals had not been received and certain other actions had not been completed. C. Until date since all approvals have not been received, the Parties are of the view that the completion of the Transaction is therefore not possible prior to the Extended Longstop Date. D. The Parties are now agreeing to further extend the Extended Longstop Date, subject expressly to the terms set out in the Extension Agreement. Now therefore the Parties hereby agree as follows: 1. The term "Extended Longstop Date" in the Extension Agreement shall mean February 24, 2020. 2. In view of recent developments relating to the Judgement of the Hon'ble Supreme Court of India dated October 24, 2019 on the interpretation of `Adjusted Gross Revenue' in connection with telecommunications licenses entered into with the DoT, the Parties agree that in addition to the conditions stated in: (a) the Extension Agreement; and (b) Clause 7.1 of the Implementation Agreement, the Parties' obligation to effect the Transaction will be conditional upon the mutual agreement of the BIL Group, the Vodafone Group and VIL, on or prior to February 24, 2020, to proceed to Closing, and in the event any of the BIL Group, the Vodafone Group or VIL elects in their sole and absolute discretion without the need to assign any reason whatsoever, not to proceed to Closing, the Closing shall not occur. Further, notwithstanding anything to the contrary in this Letter, the Extension Agreement and the Implementation Agreement, any Party shall have the right, exercisable at any time (including prior to thcoenesxtiptiurtye oofntehaenEdxttheendsaemd eLoinnsgtsrutompeDnta,tbe)utinshitasllsonloet abnedeaffbescotiluveteudnitsiclreeaticohnP, atorttyerhmasineaxteectuhteedImapt lleemasetnotnaetiocnouAngterrepeamrte.nFtuarnthdetrh,etrheeafdteelrivweirtyhdorfaawPtDheFMfoerrmgaetr cSocphyemofe.an3.eTxheecuPteadrtiseisgnfuarttuhreerpaaggreeeshthalalththaveecothnedistaimonemfoerncteioanneddeifnfeCcltaausseth2e odfeltihviesrLyeottfearnshoarilgl ibneadlleyeemxeedcutotefdosrimgnpaatrutreofpaangde.b6e. iTnhcliusdLeedttienr Cshlaalulsbee7e.1ffoecfttihvee IfmropmleDmeecnetamtiboenr A24g,re2e0m19e.n7t..ATnhye prerfoevriesniocenstoofcoCnladuitsioesns14pr(eCcoendfeindtetnotiCalliotysi)n, g15in(AthnenTouranncseamcteiontns)D, o1c6u.9m(eAnrtbsi(tirnactilound)inagndw1it6h.o1u7t (lGimoivtaetrinoinngthLeacwo)ndoiftitohnesImprpelceemdeennttamtioenntiAogneredeimnepnatrsahgarlalpahp5ployfmPuartat tCisomf uthtaenMdiesrtgoetrhSischLeemttee)r.s[hRaellmbaeinddeeermoefdthtoisipnacgluedheassubceheandidnitteionntiaolncaollnydlietifotnb.la4n. kT]h2is Letter shall be read together with, and as a part of, the Implementation Agreement and the Extension Agreement. Except as amended hereby, all of the terms and conditions of the Implementation Agreement and the Extension Agreement shall remain in full force and effect. 5. This Letter may be entered into in any number of counterparts, all of which taken together shall
In witness whereof, this Letter Agreement has been entered into on the date and year first above written. For and on behalf ofBharti Infratel Limited Name: Title: For and on behalf ofBharti Airtel Limited Name: Title: Infrastructure Investments Limited [Signature Page]
For and on behalf of Al-Amin Investments Limited Name: G-.A. · VQ.IA. V\ \k.erk ,-eL{-o r Title: \ For and on behalf of Asian Telecommunication Investments (Mauritius) Limited For and on behalf of CCll (M.auritios), Inc. For and on behalf ofEuro Pacific Securities Ltd e: G-, C.. Vot '-'1. . itle: 't::J . 1/'"ec::.i--ov-1 [Signature Page]
For and on behalf ofVodafone Telecommunications (India) Limited For and on behalf ofMobilvest For and on behalf of Prime Metals Ltd . VOl"" V\. ..-e k.ev-k e: G. itle: D V'ec v For and on behalf of Trans Crystal Ltd [Signature Page]
For and on behalf of Omega Telecom Holdings Private Limited Name: PRI"fANKA 51NHA Title: AV'n·fORIS p 5/G:tNA-roRy For and on behalf of Telecom Investments India Private Limited Name: pg IYA NKA SIN I-t A Title: AlJ"fl-fOF2-I5eD SlqNA"Ior<y For and on behalf of Jaykay Finholding (India) Private Limited Name: PRI\.( 1\N KA6 INHA Title: AV/H012.1 $ 6\G, t.JA"fog For and on behalf of Usha Martin Telematics Limited e. · --Name: Pf<IYANkA$INHA Title: A VTHo Rlbf3:p 616t NA1'ogy [Signature Page]
For and on behalf of Vodafone Idea Limited eA N I<Jt '"J K. A f .D 0 Name: Title: C tJ M PAN 'J E-1'1l R}' .!6 [Signature Page]
For and on behalf oflndus Towers Limited [Signature Page]
For and on behalf ofVodafone Interna;ai-IDJidings B.V. - Name: r7. t>tAC 1-t'C 'tJ 1 tve2" L 'f vV\. Title: [Signature Page]
Annexure A Vodafone (a) Al-Amin Investments Limited, a company incorporated in Mauritius, and having its registered office at Fifth Floor, Ebene Esplanade, 24 CybercityL, iMmiatuerdi,tiausco(bm)pAasniyaninTceolrepcoormatmeduinnicIantdioianuInndveersttmheenCtsom(MpaanuireitsiuAsc)tL, 1im95it6e,da, nadcohmavpinangyitisnrceogripsoterraeteddoifnfiMceaautr2it0iu1s-,2a0n6d, ShhaivvinSgmitrsitrieCghisatmerbeedros,ff2incde aFtloFoifrt,h4F9l/oAorD, rE. bAennneieEsBpelsaannatdRe,o2a4d,CWyboerrlci iNtya,kMa,aMuruitmiubsa(ic) C40C0II0(1M8,aMuraithiuarsa),shIntrca.,, Iancdoiam(pj)anTyelienccoomrpoInravteesdtminenMtsaIunrditiiausP,raivnadtehaLviimngiteidts, raegcoismtepraednyofinficcoerpaot rFaitfethd FinloIonrd,iEa buenndeerEtshpelaCnoadmep,a2n4ieCsyAbcetr,c1it9y5,6M, aanudrithiuavsi(ndg) iEtsurroegPisatceirfeicdSoefcfiucreitaiet s2L01td-2, 0a6c,oSmhpivanSymirnictioCrphoarmatbeedrsin, 2MndauFrliotiours,, 4a9n/dAhDavri.nAgnintsiereBgeisstaenrtedRooaffdi,ceWaotrFliifNthakFalo, oMr,uEmbbeanieE4s0p0la0n1a8d,eM, 2a4hCaryabsehrtrcait,yI,nMdiaau(rkit)iuJasy(kea)yVFoidnahfoolndeinTgel(eIncdoima)mPurnivicaatetioLnims (iItnedd,iaa)cLoimmpitaendy, ainccoomrppoarnayteidncinorIpnodriaateudndinerMthaeuCritoimusp,aannideshAavcitn,g19it5s6r,eagnisdtehraevdinogffiictseraetgFisitfethreFdloooffri,cEebaetn2e01E-s2p0la6n, aSdhei,v2S4mCryitbi eCrhciatmy,bMerasu, 2rintidusF(lof)oMr, 4o9bi/AlveDstr,. aAcnonmiepBaneysainntcRoropaodr,aWtedorinli MNaakuari,tiMusu,manbadihav4i0n0g0i1ts8r,eMgiashtearreadshotfrfai,cIenadtiaFi(flt)hUFslhoaorM, EabrteinneTEeslepmlaantaicdse,L2im4 iCteydb,earcciotym, pManauyriinticuosr(pgo)raPtreidmienMInedtaialsuLntdde,rathceomCpomanpyaniniecos rApcotr,a1te9d5i6n, aMnaduhraitviuins,gaintsdrheagvisitnegreidtsorfefgicisetearteEd-o4f7f,icBeaantkFraiftShupFeloroMr,aErkbeetn,eBEasnpklraan,aHdoe,w2r4ahCyb7e1r1ci4ty0,3M, WauersittiBusen(gha)lT, rIanndsiaC1r0ystal Ltd, a company incorporated in Mauritius, and having its registered office at Fifth Floor, Ebene Esplanade, 24 Cybercity, Mauritius (i) Omega Telecom Holdings Private
Exhibit 4.31
regTishtiesreLdetoteffricAegarteeBmuielndtin("gLNeott.e1r"0),iTsoewnteerr-eAd,i4nttho Folnoothri,sD2L4FthCdyabyeorfCFietyb,ruGaurryu,g2r0a2m0, aHt aNryeawnaD-e1l2h2i,00In2d(iha:erBeYinaAftNerDreBfeErTreWd EtoEaNs:"BInhdaurtsi"I,nwfrhaitcehl Leximprietesdsi,oancsohmalpl,aunnylienscsoirtpboerarteepdugunnadnetr ttohethleawcosnotfexIntdoira,mheaavniinnggitthserreegoifs,tebreeddeoefmficeedatot 9m0e1a,nPaarnkdCinecnlturdaeSietcstsourcce3s0s,oNrsHan-d8,pGerumruitgterdamas,sHiganrys)a;nTah-e1e2n2t0it0ie1s, lIinsdteiad (ihneAreninneafxtuerrereAfehrereredtoto(ahser"eIinnfarfatteerl"re, fwerhriecdhteoxapsre"sVsioodnasfhonalel", ,uwnlheiscshitexbperreespsuiognnasnhtaltlo, uthnelecsosnittebxet orerpmuegnanainntgtothtehreeocof,nbteexdteoermmeedatnoinmgetahneraenodf,inbcelduedeemitesdsutoccmeessaonrsanadndinpcelurmdeitttehdeiarsssuigccness)s; oBrhsaarntidApierrtmeliLttiemdiatessdi,gansc)o;mVpoadnayfoinnecoIrnptoerrnataetdiounnaldeHrotlhdeinlgaws Bs .oVf .I,nadicao,mhpavainnygiintscorerpgoisrtaetreeddinoftfhiceeNaettBhehralratnidCsr,easncdenhta, v1inNgelistsonreMgisatnedreedlaoRffoicade,aVt RasivaniutmKuQnuj,aNdreawntD1e7l3h,i2901910L0C70C, aIpndelilae(ahaenredineanfIteJsrsreelf,etrhreedNteothaesr"laAnidrtse(l"",VwodhaicfhoneexpCroenssfiiromnisnhgalPla, rutnyl"e)s;saintdbVe oredpaufgonnaenItdteoatLheimciotnedte,xatcoormmpeaannyinignctohrepreooraf,tebdeudnedeemretdhetolamwesaonfaInnddiian,chluadveinigtsitssurcecgeissstoerresdanodffipceermatitSteudmaasnsiTgonws)e;rN, Petltolet NInof.r1a8st,rSuectcutorer-I1n1v,eGstamnednhtisnaLgiamriGteud,jaaracto3m8p2a0n1y1ianncdoriptsorcaotrepdourantdeeorftfhiceelaawt 7stohfFIlnodoira,,Khaovninnegctiutss,reTgoiwsteerreBd,oBffhiacvebahtu3tridMFalrogo,rO, Wppoorslditme aNrekw2 DAeslsheit R8,aiAlweraoycSityta,tiNoHn (-A8j,mNeerwi GDaetelhSiide1)1, 0N0e3w7D, Delehlhi 1i,1I0nd0i0a2(,hIenrdeiiana(hfteerrerienfaefrtreerdretofearrse"dNtoetatlse"",VwILh"ic,hwehxipcrheessxipornessshiaolnl,suhnallels, sunitlebsesrietpbuegrneapnutgtnoatnhtetcootnhteexcot notremxteoarnimngeatnhienrgeothf,ebreeodf,eebme eddeetmo emdetaonmanedaninacnldudineciltusdseucitcsessusoccrsesasnodrspaernmdiptteerdmaitstseidgnass)s;igInndsu).sITnforwateerls, ALiimrteitle, dN,eattcleo,mInpdaunsy, iVncoodrapfoonraeteadndunVdIeLr tahree lhaewresinoaffItnedriaal,shoarveifnegrreitds to individually as "Party" and, collectively, as "Parties". WHEREAS: A. The Parties and the Vodafone Confirming Party executed the Implementation Agreement dated April 25, 2018 ("Implementation Agreement") to give effect to a scheme of amalgamation and arrangement between Infratel and Indus. Capitalised words and expressions used but not defined herein shall have the same meaning as assigned to them under the Implementation Agreement. B. In terms of the Implementation Agreement, several actions were to be completed by the Long Stop Date for the Transaction to become effective, which included but was not limited to seeking requisite approvals from various Governmental Authorities. The Long Stop Date was defined as the date falling 18 months after the Execution Date, which was conditionally extended until 1
February 24, 2020 ("Extended Longstop Date") pursuant to letter agreements dated October 24, 2019 ("First Extension Agreement") and December 24, 2019 ("Second Extension Agreement", and together with the First Extension Agreement, the "Extension Agreements") since all approvals had not been received and certain other actions had not been completedt.aCk.enUtnotgiledthaeter ssihnaclel caollnasptipturotevaolnsehaanvde tnhoet sbaemene irnescteriuvmede,ntth, ebuPtasrhtiaelsl anroetobfetehfefevciteiwvethuanttitlheeaccohmPpalretytiohnasoef xtheceuTteradnastalcetaiosnt oisnethceoruefnotererpnaortt.pFousrstihbeler,pthrieordetolivtheeryEoxfteanPdeDdFLfoonrmgsattocpoDpyatoef. Dan. TexheecPuatertdiessiganreatnuorewpaaggreeeshinagllthoafvuertthheerseaxmteenfdotrhcee aEnxdteenfdfeecdtLaos nthgestdoepliDveartey,osfubanjecotriegxinpraellsysleyxteocuthteedtesrimgnsastuetreouptagine.th5e. TEhxitsenLseitotnerAshgarellembeeenftfse. cNtiovwe ftrhoemrefFoerbertuhaeryPa2r4ti,e2s0h2e0r.e6b.yTahgereperoavsifsoiollnoswosf: C1.laTuhseeste1r4m(C"EoxntfeidnednetdiaLliotyn)g,s1to5p(ADnanteo"uinncethmeeEnxtst)e,n1s6io.9n (AAgrrbeietrmateinotns)sahnadll1m6.e1a7n(AGporvile2rn4i,n2g0L20aw. 2).oIfnthCelaIumspel2emofenthtaetiSoencoAngdreEexmteennstisohnaAllgarpepelmyemnut,taretifsermenutcaentdois"FtoebthruisarLye2tt4e,r.2[0R2e0m"asihnadlel rboe,f athnids ipsahgeerehbays breepenlaicnetdenwtiiothna"lAlyprleilft2b4l,a2n0k2]02". 3. This Letter shall be read together with, and as a part of, the Implementation Agreement and the Extension Agreements. Except as amended hereby, all of the terms and conditions of the Implementation Agreement and the Extension Agreements shall remain in full force and effect. 4. This Letter may be entered into in any number of counterparts, all of which
In witness whereof, this Letter Agreement has been entered into on the date and year first above written. For and on behalf of Bharti Infratel Limited / s / S a m v i d h i R o d h e Name: Samvidhi Rodhe Title: Company Secretary For and on behalf of Bharti Airtel Limited / s / P a n k a j T e w a s i Name: Pankaj Tewasi Title: Company Secretary For and on behalf of Nettle Infrastructure Investments Limited / s / S u mS i n g h an Name: Suman Singh Title: Authorised Signatory [Signature Page]
For and on behalf of Al-Amin Investments Limited / s / G . A. v a n Nie k e r k Name: G. A. van Niekerk Title: Director For and on behalf of Asian Telecommunication Investments (Mauritius) Limited / s / G . A. v a n Nie k e r k Name: G. A. van Niekerk Title: Director For and on behalf of CCII (Mauritius), Inc. / s / G . A. v a n Nie k e r k Name: G. A. van Niekerk Title: Director For and on behalf of Euro Pacific Securities Ltd / s / G . A. v a n Nie k e r k Name: G. A. van Niekerk Title: Director [Signature Page]
For and on behalf of Vodafone Telecommunications (India) Limited / s / G . A. v a n Nie k e r k Name: G. A. van Niekerk Title: Director For and on behalf of Mobilvest / s / G . A. v a n Nie k e r k Name: G. A. van Niekerk Title: Director For and on behalf of Prime Metals Ltd / s / G . A. v a n Nie k e r k Name: G. A. van Niekerk Title: Director For and on behalf of Trans Crystal Ltd / s / G . A. v a n Nie k e r k Name: G. A. van Niekerk Title: Director [Signature Page]
For and on behalf of Omega Telecom Holdings Private Limited / s / P r ik a n k a S in g h Name: Prikanka Singh Title: Director For and on behalf of Telecom Investments India Private Limited / s / P r ik a n k a S in g h Name: Prikanka Singh Title: Director For and on behalf of Jaykay Finholding (India) Private Limited / s / P r ik a n k a Sin g h Name: Prikanka Singh Title: Director For and on behalf of Usha Martin Telematics Limited / s / P r ik a n k a Sin g h Name: Prikanka Singh Title: Director [Signature Page]
For and on behalf of Vodafone Idea Limited /s / P a n k a j K a p d e o Name: Pankaj Kapdeo Title: Company Secretary [Signature Page]
For and on behalf of Indus Towers Limited / s / R a j in d e r Ku m a r Name: Rajinder Kumar Title: Chief of Legal & Company Secretary [Signature Page]
For and on behalf of Vodafone International Holdings B.V. / s / M. B u c k e rs / s / L . R .M. Kra a n Name: M. Buckers Title: Director Name: L.R.M. Kraan Title: Director [Signature Page]
Annexure A Vodafone (a) Al-Amin Investments Limited, a company incorporated in Mauritius, and having its registered office at Fifth Floor, Ebene Esplanade, 24 CybercityL, iMmiatuerdi,tiausco(bm)pAasniyaninTceolrepcoormatmeduinnicIantdioianuInndveersttmheenCtsom(MpaanuireitsiuAsc)tL, 1im95it6e,da, nadcohmavpinangyitisnrceogripsoterraeteddoifnfiMceaautr2it0iu1s-,2a0n6d, ShhaivvinSgmitrsitrieCghisatmerbeedros,ff2incde aFtloFoifrt,h4F9l/oAorD, rE. bAennneieEsBpelsaannatdRe,o2a4d,CWyboerrlci iNtya,kMa,aMuruitmiubsa(ic) C40C0II0(1M8,aMuraithiuarsa),shIntrca.,, Iancdoiam(pj)anTyelienccoomrpoInravteesdtminenMtsaIunrditiiausP,raivnadtehaLviimngiteidts, raegcoismtepraednyofinficcoerpaot rFaitfethd FinloIonrd,iEa buenndeerEtshpelaCnoadmep,a2n4ieCsyAbcetr,c1it9y5,6M, aanudrithiuavsi(ndg) iEtsurroegPisatceirfeicdSoefcfiucreitaiet s2L01td-2, 0a6c,oSmhpivanSymirnictioCrphoarmatbeedrsin, 2MndauFrliotiours,, 4a9n/dAhDavri.nAgnintsiereBgeisstaenrtedRooaffdi,ceWaotrFliifNthakFalo, oMr,uEmbbeanieE4s0p0la0n1a8d,eM, 2a4hCaryabsehrtrcait,yI,nMdiaau(rkit)iuJasy(kea)yVFoidnahfoolndeinTgel(eIncdoima)mPurnivicaatetioLnims (iItnedd,iaa)cLoimmpitaendy, ainccoomrppoarnayteidncinorIpnodriaateudndinerMthaeuCritoimusp,aannideshAavcitn,g19it5s6r,eagnisdtehraevdinogffiictseraetgFisitfethreFdloooffri,cEebaetn2e01E-s2p0la6n, aSdhei,v2S4mCryitbi eCrhciatmy,bMerasu, 2rintidusF(lof)oMr, 4o9bi/AlveDstr,. aAcnonmiepBaneysainntcRoropaodr,aWtedorinli MNaakuari,tiMusu,manbadihav4i0n0g0i1ts8r,eMgiashtearreadshotfrfai,cIenadtiaFi(flt)hUFslhoaorM, EabrteinneTEeslepmlaantaicdse,L2im4 iCteydb,earcciotym, pManauyriinticuosr(pgo)raPtreidmienMInedtaialsuLntdde,rathceomCpomanpyaniniecos rApcotr,a1te9d5i6n, aMnaduhraitviuins,gaintsdrheagvisitnegreidtsorfefgicisetearteEd-o4f7f,icBeaantkFraiftShupFeloroMr,aErkbeetn,eBEasnpklraan,aHdoe,w2r4ahCyb7e1r1ci4ty0,3M, WauersittiBusen(gha)lT, rIanndsiaC1r0ystal Ltd, a company incorporated in Mauritius, and having its registered office at Fifth Floor, Ebene Esplanade, 24 Cybercity, Mauritius (i) Omega Telecom Holdings Private
Exhibit 4.32
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In witness whereof, this Letter Agreement has been entered into on the date and year first above written. For and on behalf of Bharti lnfratel Limited Name: Tit! : Name: Title: For and on behalf of Nettle Infrastructure Investments Limited Name: Title: [Signature Page]
For and on behalf of AI-Amin Investments Limited For and on behalf of Asian Telecommunication Investments (Mauritius) Limited For and on behalf of CCII (Mauritius), Inc. -e A (-) . VC(_,., 11\. ,· D \.r.e c_ {-ev For and on behalf ofEuro Pacific Securities Ltd [Signature Page]
For and on behalf ofVodafone Telecommunications (India) Limited G .A . UCl""-V\.te._k \:::::. rec:--!-o v r-k_ For and on behalf of Mobilvest For and on behalf of Prime Metals Ltd For and on behalf of Trans Crystal Ltd [Signature Page]
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Exhibit 4.33
This Letter Agreement ("Letter") is entered into on this 25 day of June, 2020 at New Delhi, India:
BY AND BETWEEN:
Bharti Infratel Limited, a company incorporated under the laws of India, having its registered office at 901, Park Centra Sector -- 30, NH - 8, Gurugram, Haryana - 122001, India (hereinafter referred to as "Infratel", which expression shall, unless it be repugnant to the context or meaning thereof, be deemed to mean and include its successors and permitted assigns);
Bharti Airtel Limited, a company incorporated under the laws of India, having its registered office at Bharti Crescent, 1 Nelson Mandela Road, Vasant Kunj, New Delhi -- 110070, India (hereinafter referred to as "Airtel", which expression shall, unless it be repugnant to the context or meaning thereof, be deemed to mean and include its successors and permitted assigns);
Nettle Infrastructure Investments Limited, a company incorporated under the laws of India, having its registered office at 3rd Floor, Worldmark 2 Asset 8, Aerocity, NH - 8, New Delhi -- 110 037, Delhi, India (hereinafter referred to as "Nettle", which expression shall, unless it be repugnant to the context or meaning thereof, be deemed to mean and include its successors and permitted assigns);
Indus Towers Limited, a company incorporated under the laws of India, having its registered office at Building No. 10, Tower-A, 4th Floor, DLF Cyber City, Gurugram, Haryana- 122002 (hereinafter referred to as "Indus", which expression shall, unless it be repugnant to the context or meaning thereof, be deemed to mean and include its successors and permitted assigns);
The entities listed in Annexure A hereto (hereinafter referred to as "Vodafone", which expression shall, unless it be repugnant to the context or meaning thereof, be deemed to mean and include their successors and permitted assigns);
Vodafone International Holdings B.V., a company incorporated in the Netherlands, and having its registered office at Rivium Quadrant 173, 2909 LC Capelle aan den IJssel, the Netherlands ("Vodafone Confirming Party"); and
Vodafone Idea Limited, a company incorporated under the laws of India, having its registered office at Suman Tower, Plot No.18, Sector-11, Gandhinagar Gujarat 382011 and its corporate office at 7th Floor, Konnectus, Tower B, Bhavbhuti Marg, Opposite New Delhi Railway Station (Ajmeri Gate Side), New Delhi 110 002, India (hereinafter referred to as "VIL", which expression shall, unless it be repugnant to the context or meaning thereof, be deemed to mean and include its successors and permitted assigns).
Infratel, Airtel, Nettle, Indus, Vodafone and VIL are hereinafter also referred to individually as "Party" and, collectively, as "Parties".
WHEREAS:
A.
The Parties and the Vodafone Confirming Party executed the Implementation Agreement dated April 25, 2018
("Implementation Agreement") to give effect to a scheme of amalgamation and arrangement between Infratel and Indus.
Capitalised words and expressions used but not defined herein shall have the same meaning as assigned to them under the
Implementation Agreement.
B.
In terms of the Implementation Agreement, several actions were to be completed by the Long Stop Date for the Transaction
to become effective, which included but was not limited to seeking requisite approvals from various Governmental
Authorities and fulfilment of conditions precedent in terms of the Implementation Agreement. The Long Stop Date was
defined as the date falling
1
18 months after the Execution Date, which was conditionally extended until June 24, 2020 ("Extended Longstop Date") pursuant to letter agreements dated October 24, 2019 ("First Extension Agreement"), December 24, 2019 ("Second Extension Agreement"), February 24, 2020 ("Third Extension Agreement") and April 23, 2020 ("Fourth Extension Agreement", and together with the First Extension Agreement, the Second Extension Agreement and the Third Extension Agreement, the "Extension Agreements") since all approvals had not been received and certain other actions had not been completed.
C.
Until date since all conditions precedent in terms of the Implementation Agreement have not been fulfilled, the Parties are of
the view that the completion of the Transaction is therefore not possible prior to the Extended Longstop Date.
D.
The Parties are now agreeing to further extend the Extended Longstop Date, subject expressly to the terms set out in the
Extension Agreements.
Now therefore the Parties hereby agree as follows:
1. The term "Extended Longstop Date" in the Extension Agreements shall mean August 31, 2020.
2. In Clause 2 of the Second Extension Agreement read with the Third Extension Agreement and the Fourth Extension Agreement, reference to "June 24, 2020" shall be, and is hereby replaced with "August 31, 2020".
3. This Letter shall be read together with, and as a part of, the Implementation Agreement and the Extension Agreements. Except as amended hereby, all of the terms and conditions of the Implementation Agreement and the Extension Agreements shall remain in full force and effect.
4. This Letter may be entered into in any number of counterparts, all of which taken together shall constitute one and the same instrument, but shall not be effective until each Party has executed at least one counterpart. Further, the delivery of a PDF format copy of an executed signature page shall have the same force and effect as the delivery of an originally executed signature page.
5. This Letter shall be effective from June 24, 2020.
6. The provisions of Clauses 14 (Confidentiality), 15 (Announcements), 16.9 (Arbitration) and 16.17 (Governing Law) of the Implementation Agreement shall apply mutatis mutandis to this Letter.
[Remainder of this page has been intentionally left blank]
2
In witness whereof, this Letter Agreement has been entered into on the date and year first above written. For and on behalf of Bharti Infratel Limited
/s/ Samvidhi Rodhe Name: Samvidhi Rodhe Title: Company Secretary
For and on behalf of Bharti Airtel Limited
/s/ Pankaj Tewasi Name: Pankaj Tewasi Title: Company Secretary
For and on behalf of Nettle Infrastructure Investments Limited
/s/ Suman Singh
Name: Suman Singh Title: Authorised Signatory
[Signature Page]
For and on behalf of Al-Amin Investments Limited
/s/ G. A. van Niekerk Name: G. A. van Niekerk Title: Director
For and on behalf of Asian Telecommunication Investments (Mauritius) Limited
/s/ G. A. van Niekerk Name: G. A. van Niekerk Title: Director
For and on behalf of CCII (Mauritius), Inc.
/s/ G. A. van Niekerk
Name: G. A. van Niekerk Title: Director
For and on behalf of Euro Pacific Securities Ltd
/s/ G. A. van Niekerk Name: G. A. van Niekerk Title: Director
[Signature Page]
For and on behalf of Vodafone Telecommunications (India) Limited
/s/ G. A. van Niekerk Name: G. A. van Niekerk Title: Director
For and on behalf of Mobilvest
/s/ G. A. van Niekerk Name: G. A. van Niekerk Title: Director
For and on behalf of Prime Metals Ltd
/s/ G. A. van Niekerk Name: G. A. van Niekerk Title: Director
For and on behalf of Trans Crystal Ltd
/s/ G. A. van Niekerk
Name: G. A. van Niekerk Title: Director
[Signature Page]
For and on behalf of Omega Telecom Holdings Private Limited
/s/ Prikanka Singh Name: Prikanka Singh Title: Director
For and on behalf of Telecom Investments India Private Limited
/s/ Prikanka Singh
Name: Prikanka Singh Title: Director b For and on behalf of Jaykay Finholding (India) Private Limited
/s/ Prikanka Singh Name: Prikanka Singh Title: Director
For and on behalf of Usha Martin Telematics Limited
/s/ Prikanka Singh
Name: Prikanka Singh Title: Director
[Signature Page]
For and on behalf of Indus Towers Limited
/s/ Rajinder Kumar Name: Rajinder Kumar Title: Chief of Legal & Company Secretary
[Signature Page]
For and on behalf of Vodafone Idea Limited
/s/ Pankaj Kapdeo Name: Pankaj Kapdeo Title: Company Secretary
For and on behalf of Vodafone International Holdings B.V.
/s/ M. Buckers
Name: M. Buckers Title: Director
/s/ L.R.M. Kraan
Name: L.R.M. Kraan Title: Director
[Signature Page]
Annexure A Vodafone
(a) Al-Amin Investments Limited, a company incorporated in Mauritius, and having its registered office at Fifth Floor, Ebene Esplanade, 24 Cybercity, Mauritius
(b) Asian Telecommunication Investments (Mauritius) Limited, a company incorporated in Mauritius, and having its registered office at Fifth Floor, Ebene Esplanade, 24 Cybercity, Mauritius
(c) CCII (Mauritius), Inc., a company incorporated in Mauritius, and having its registered office at Fifth Floor, Ebene Esplanade, 24 Cybercity, Mauritius
(d) Euro Pacific Securities Ltd, a company incorporated in Mauritius, and having its registered office at Fifth Floor, Ebene Esplanade, 24 Cybercity, Mauritius
(e) Vodafone Telecommunications (India) Limited, a company incorporated in Mauritius, and having its registered office at Fifth Floor, Ebene Esplanade, 24 Cybercity, Mauritius
(f) Mobilvest, a company incorporated in Mauritius, and having its registered office at Fifth Floor, Ebene Esplanade, 24 Cybercity, Mauritius
(g) Prime Metals Ltd, a company incorporated in Mauritius, and having its registered office at Fifth Floor, Ebene Esplanade, 24 Cybercity, Mauritius
(h) Trans Crystal Ltd, a company incorporated in Mauritius, and having its registered office at Fifth Floor, Ebene Esplanade, 24 Cybercity, Mauritius
(i) Omega Telecom Holdings Private Limited, a company incorporated in India under the Companies Act, 1956, and having its registered office at 201-206, Shiv Smriti Chambers, 2nd Floor, 49/A Dr. Annie Besant Road, Worli Naka, Mumbai -- 400 018, Maharashtra, India
(j) Telecom Investments India Private Limited, a company incorporated in India under the Companies Act, 1956, and having its registered office at 201-206, Shiv Smriti Chambers, 2nd Floor, 49/A Dr. Annie Besant Road, Worli Naka, Mumbai -- 400 018, Maharashtra, India
(k) Jaykay Finholding (India) Private Limited, a company incorporated in India under the Companies Act, 1956, and having its registered office at 201-206, Shiv Smriti Chambers, 2nd Floor, 49/A Dr. Annie Besant Road, Worli Naka, Mumbai -- 400 018, Maharashtra, India
(l) Usha Martin Telematics Limited, a company incorporated in India under the Companies Act, 1956, and having its registered office at E-47, Bankra Super Market, Bankra, Howrah -- 711 403, West Bengal, India
10
Exhibit 4.35 CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
DATED 31 July 2019 LIBERTY GLOBAL B.V.
and UPC CESKA REPUBLICA S.R.O.
and UNITYMEDIA GMBH
and UPC MAGYARORSZAG KFT.
and UPC ROMANIA S.R.L
and LIBERTY GLOBAL PLC
and VODAFONE GROUP PLC
TRANSITIONAL SERVICES AGREEMENT
CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
CONTENTS
Page
1.
Interpretation
2
2.
Provision of Services
19
3.
Minimum Service Levels and Service Credits
21
4.
Duration of Agreement
23
5.
Omitted Services
29
6.
Migration, Integration and Development Projects
30
7.
Updates and Upgrades
30
8.
Third Party Suppliers
34
9.
Dependencies
36
10.
Charges and invoicing
37
11.
Tax
39
12.
Termination
40
13.
Consequences of termination
42
14.
Representations and warranties
43
15.
Limitation of liability
44
16.
Losses of Affiliates
47
17.
Damages not an adequate remedy
48
18.
Record keeping and audit
48
19.
Governance and dispute resolution
50
20.
Change management
50
21.
Access and information
50
CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
22.
Intellectual Property
51
23.
Data protection and personnel transfers
53
24.
Information technology risk control
54
25.
Regulatory matters
55
26.
Force majeure
56
27.
Not used
56
28.
Legal relationship
56
29.
No set-off
56
30.
Remedies and waivers
57
31.
No double recovery
57
32.
Assignment and sub-contracting
57
33.
Further assurance
58
34.
Conflict with other agreements
58
35.
Entire agreement
59
36.
Variation
60
37.
Notices
60
38.
Language
63
39.
Confidentiality
63
40.
Costs and expenses
65
41.
Counterparts
66
42.
Invalidity
66
43.
No third party enforcement
66
44.
Choice of governing law
66
45.
Arbitration
66
CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
46.
Guarantee
67
SCHEDULES
Schedule 1 -- Services
x Part A -- Services Matrix
x Part B -- Entertainment Services
x Section (i) -- Germany
x Section (ii) -- Czech Republic
x Section (iii) -- Hungary
x Section (iv) - Romania
x Part C -- Connectivity Services
x Section (i) -- Germany
x Section (ii) -- Czech Republic
x Section (iii) -- Hungary
x Section (iv) - Romania
x Part D -- Fixed Voice Services
x Section (i) -- Czech Republic
x Section (i) -- Hungary
x Part E -- German Aorta Services
x Part F -- CEE Aorta Services
x Section (i) -- Czech Republic
x Section (ii) -- Hungary
x Section (iii) - Romania
x Part G -- German IT Services
x Part H -- CEE IT Services
CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
x Section (i) -- Czech Republic x Section (ii) -- Hungary x Section (iii) - Romania x Part I -- B2B Services x Section (i) -- Germany x Section (ii) - Czech Republic x Section (iii) -- Hungary x Section (iv) - Romania x Part J -- MVNO (Hungary) x Part K -- HR Systems x Section (i) -- Czech Republic x Section (ii) -- Hungary x Section (iii) - Romania x Part L -- Wizard Support (Hungary) Schedule 2 -- Excluded Services Schedule 3 -- Charges Schedule 4 -- Operational Support Services and Processes Schedule 5 -- Development and Delivery Schedule 6 --Governance Model Schedule 7 - Change Management Procedure Schedule 8 - Data Protection Schedule 9 - Post-Completion Information Flows Protocol Schedule 10 - Third Party Suppliers Schedule 11 -- Migration, Integration and Development Projects
CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
Schedule 12 -- Service Levels and Credits
Schedule 13 -- IPX Assistance
CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
THIS AGREEMENT is made on 31 July 2019.
PARTIES:
1.
LIBERTY GLOBAL B.V., whose registered office is at Boeing Avenue 53, 1119 PE Schiphol-Rijk, The Netherlands
(registered in The Netherlands at the Commercial Registry with registration No. 34168993) (the "Service Provider");
2.
UPC CESKA REPUBLICA S.R.O., whose registered office is at Závisova 502/5, Nusle, 140 00 Praha 4, Czech
Republic (registered in the Czech Republic with No. 00562262) (the "CZ Service Recipient");
3.
UNITYMEDIA GMBH, whose registered office is at Aachener Staße 746-750, 50933 Cologne, Germany (registered with
the local court of Cologne with No. HRB 68501) (the "DE Service Recipient");
4.
UPC MAGYARORSZAG KFT., whose registered office is at 1095 Budapest, Soroksári út 30-34, Haller Gardens Building,
Hungary (registered in Hungary with No. Cg.01-09-366290) (the "HU Service Recipient");
5.
UPC ROMANIA S.R.L, whose registered office is at Bucharest, District 1, 62D Nordului Road, Romania (registered in
Romania with No. J40/5971/2003) (the "RO Service Recipient");
6.
LIBERTY GLOBAL PLC, whose registered office is at Griffin House, 161 Hammersmith Road, London W6 8BS
(registered in England & Wales with No. 08379990) (the "Service Provider Guarantor"); and
7.
VODAFONE GROUP PLC, whose registered office is at Vodafone House, The Connection, Newbury, Berkshire, RG14
2FN (registered in England and Wales with No. 01833679) (the "Service Recipient Guarantor")
BACKGROUND:
(A) By an agreement dated 9 May 2018 (the "SPA"), the Sellers agreed to sell the shares in the Target Companies to the Purchasers.
(B) The Service Provider and Service Recipients have agreed: (i) that, on the terms of this Agreement, the Service Provider shall provide, or procure the provision of, the Services to the Service Recipient Group; and (ii) to co-operate to achieve Migration and Integration in accordance with the terms of this Agreement.
(C) The Service Provider Guarantor has agreed to guarantee the payment and performance obligations of the Service Provider under this Agreement.
(D) The Service Recipient Guarantor has agreed to guarantee the payment obligations of the Service Recipients under this Agreement.
CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
THE PARTIES AGREE as follows:
1.
Interpretation
1.1 In this Agreement and the Schedules to it (unless the context otherwise requires):
"Achievement"
has the meaning given in Schedule 11 (Migration, Integration and Development Projects);
"Affiliate"
means, in relation to any person, any entity from time to time directly or indirectly (a) Controlling, (b) Controlled by, or (c) under common Control with that person, save that where this Agreement refers to Affiliates of the Service Provider, such reference to Affiliates shall be deemed to exclude, with effect from the Effective Date, the Service Recipient Group, and where this Agreement refers to Affiliates of a Service Recipient, such reference to Affiliates shall be deemed to exclude, with effect from the Effective Date, the Service Provider Group (unless in either case the context requires otherwise);
"Agreement"
means this Transitional Services Agreement;
"Applicable Laws"
means any statute, law, rule, regulation, ordinance, code or rule of law which, in each case, is issued, administered or enforced by any Governmental Entity, and any legally binding judicial or administrative interpretation of any of these and which, in each case, is applicable to the rights and/or obligations of a party (including the provision or receipt (as relevant) of the Services);
"Authorisation Expenses"
has the meaning given in clause 8.2 (Third Party Suppliers);
"Authorisations"
has the meaning given in clause 8.2 (Third Party Suppliers);
"Business"
means the business of the Target Companies in Germany, Czech Republic, Romania and Hungary from time to time;
"Business Day"
means a day (other than a Saturday or Sunday) on which banks are open for general business in London, except for the purposes of Schedule 4 (Operational Services and Processes) and Schedule 7 (Change Management Process), where it means Working Hours;
"Business Plan Baseline"
means, for the relevant point in time, the forecasted volume demand for a Service as set out in the relevant long-range plan(s) of the Target Companies, as made available to the Purchaser at documents 3.2.2 of the "Clean Team Germany" section of the Data Room, 3.2.6 of the "Clean Team Hungary" section of the Data Room, 3.2.5 of the "Clean Team Czech Republic" section of the Data Room and 3.2.7 of the "Clean Team Romania" section of the Data Room, in each case prior
2
CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
to the date of the SPA;
"Cable Access Remedy Requirement" means the commitment made by the Service Recipient Guarantor to the European Commission in Case M.8664 to provide Telefonica with wholesale access to the Service Recipient Guarantor's post-merger cable network in Germany, as further set out in the conditions and obligations attached to the clearance decision dated 11 July 2019 in Case M.8864;
"Change"
means any change to the scope or duration of a Service, or the terms and conditions of this Agreement;
"Change Management Procedure" means the procedure set out in Schedule 7 (Change Management Procedure);
"Charges"
means the charges specified in Schedule 3 (Charges);
"Claim"
means any claim under or in connection with this Agreement or any of the Services, or for breach of this Agreement (including claims for breach of contract, tort (including negligence), breach of statutory duty, misrepresentation, restitution or otherwise;
"Completion"
has the meaning set out in the SPA;
"Completion Date"
means the date on which Completion takes place;
"Confidential Information"
has the meaning given in clause 39.2 (Confidentiality);
"Connected Persons"
has the meaning given in clause 35.1 (Entire agreement);
"Contracting Party"
has the meaning given in clause 16.1 (Losses of Affiliates);
"Control"
means, in relation to any undertaking, being:
(a)
entitled to exercise, or control the exercise of (directly or indirectly) 50 per
cent. or more of the voting power at any general meeting of the
shareholders in respect of all or substantially all matters falling to be
decided by resolution or meeting of such persons; or
(b)
entitled to appoint or remove directors on the board of directors who are
able (in the aggregate) to exercise 50 per cent. or more of the voting power
at meetings of that board in respect of all or substantially all matters;
"Costs"
means losses, damages, costs (including legal costs) and expenses, in each case of any nature whatsoever;
3
CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
"CPE"
has the meaning given in clause 8.10;
"Czech Republic Services"
means the services set out in:
(a)
Section (ii) (Czech Republic) of Part B (Entertainment Services) of
Schedule 1 (Services);
(b)
Section (ii) (Czech Republic) of Part C (Connectivity Services) of
Schedule 1 (Services);
(c)
Section (ii) (Czech Republic) of Part D (Fixed Voice Services) of
Schedule 1 (Services);
(d)
Section (i) (Czech Republic) of Part F (CEE Aorta Services) of Schedule 1
(Services);
(e)
Section (i) (Czech Republic) of Part H (CEE IT Services) of Schedule 1
(Services);
(f)
Section (ii) (Czech Republic) of Part I (B2B Services) of Schedule 1
(Services); and
(g)
Section (i) (Czech Republic) of Part K (HR Systems) of Schedule 1
(Services);
"Data Room"
has the meaning set out in the SPA;
"Default Interest"
means interest at the rate of: (i) the euro interbank offered rate administered by the European Money Markets Institute (or any other person which takes over the administration of that rate) for the relevant period displayed on page EURIBOR01 of the Thomson Reuters screen (or any replacement Thomson Reuters page which displays that rate); plus (ii) two per cent (provided that such interest rate shall not be less than zero);
"Dependencies"
means the obligations and responsibilities:
(a)
of the members of the Service Recipient Group that are described as
"Dependencies" in this Agreement including the Service Schedules;
(b)
in relation to a Service provided to a member of the Service Recipient
Group, that the Service Provider has demonstrated (to the Relevant
Service Recipient's reasonable satisfaction), prior to the relevant failure or
delay in performance from which the Service Provider is seeking to be
excused by referring to such
4
CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
obligations and responsibilities:
(i)
were performed or procured by the Target Companies at the date
of the SPA in order to enable the Service Provider to provide the
equivalent service to that member of the Service Recipient
Group; or
(ii)
save as described in clause 8.5, were performed or procured by
the Target Companies in the ordinary course of its business
between the date of the SPA and the Effective Date in order to
enable the Service Provider to provide the equivalent service to
that member of the Service Recipient Group;
(c)
that the Service Provider and the Relevant Service Recipient agree in
writing, acting reasonably and in good faith, are necessary to be performed
by a member of the Service Recipient Group in order to enable the Service
Provider to provide a Service to the Relevant Service Recipient; or
(d)
of the members of the Service Recipient Group that constitute Migration
Dependencies (as this term is defined in Schedule 11
(Migration, Integration and Development Projects);
"Development Mode"
means a platform that receives Updates, Upgrades and Scaling (if applicable);
"Due Date"
has the meaning given in clause 10.4(Invoicing and payment);
"Effective Date"
means the Completion Date;
"Emergency Extension Notice Period" means:
(a) for any Service (or aspect of a Service) except the Aorta Service (as described in Parts E and F of Schedule 1 (Services)), the period commencing on the day after the date which is three months prior to the end of the then-current Service Term (as may have been extended pursuant to clause 4.5) and expiring on the date which is one day before the end of the then-current Service Term; and
(b) for the Aorta Service (as described in Parts E and F of Schedule 1 (Services)), the period commencing on the day after the date which is one month prior to the end of the then-
5
CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
current Service Term and expiring on the date which is one day before the end then-current Service Term (as may have been extended pursuant to clause 4.5) and expiring on the date which is one day before the end of the then-current Service Term.
"Exceptional Extension Notice Period"
means:
(a) for any Service (or aspect of a Service) except the Aorta Service (as described in Parts E and F of Schedule 1 (Services)), the period commencing on the date which is 12 months prior to the end of the then-current Service Term (as may have been extended pursuant to clause 4.5) and expiring on the date which is three months prior to the end of the then-current Service Term; and
(b) for the Aorta Service (as described in Parts E and F of Schedule 1 (Services)), the period commencing on the date which is 12 months prior to the end of the thencurrent Service Term (as may have been extended pursuant to clause 4.5) and
expiring on the date which is one month prior to the end of the then-current Service Term.
"Exchange Rate"
means, with respect to a particular currency, the spot rate of exchange (mid-point) for that currency into Euro on the relevant date, as published by Bloomberg on the BFIX service;
"Excluded Services"
means the services which were provided by the Service Provider or a member of the Service Provider Group to the Business immediately prior to the Completion Date but which will not be provided to any member of the Service Recipient Group following the Completion Date, as described in Schedule 2 (Excluded Services) to this Agreement;
"Fixed Charge"
means a Charge calculated on a fixed cost basis in accordance with Schedule 3 (Charges);
"Force Majeure Event"
means any circumstance beyond a party's reasonable control, including (in each case, to the extent beyond that party's reasonable control):
(a)
any act of God, flood, earthquake or other natural disaster;
(b)
any act of terrorism, riot, war, sanction, embargo or breaking-off of
diplomatic relations;
6
CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
(c)
any collapse of buildings, fire, explosion or accident of comparable
magnitude;
(d)
any change to Applicable Laws or any action taken by a Governmental
Entity, including imposing an export or import restriction, quota or
prohibition, or failing to grant, or revoking, a necessary licence or consent
(but only to the extent any such circumstances have not been dealt with
under the Change Management Procedure by way of a Required Change);
(e)
interruption or failure of any utility service; and
(f)
any labour or trade dispute, strike, industrial action or lockout (other than,
in each case, by personnel of the party seeking to rely on this clause or any
sub-contractor of that party),
but excluding any acts or omissions of any sub-contractor of the Service Provider;
"Gemini Components"
means those components set out in sections 1.6.2.1 (provisioning of cable modems); 1.7.4.1 (DHCP); and 1.8.6 (monitoring of DOCSIS 3.1 devices) of Part G (German IT Services) of Schedule 1 (Services);
"German Services"
means the services set out in:
(a)
Section (i) (German) of Part B (Entertainment Services) of Schedule 1
(Services);
(b)
Section (i) (German) of Part C (Connectivity Services) of Schedule 1
(Services);
(c)
Part E (German Aorta Services) of Schedule 1 (Services);
(d)
Part G (German IT Services) of Schedule 1 (Services); and
(e)
Section (i) (German) of Part I (B2B Services) of Schedule 1 (Services);
"Governmental Entity"
means any supra-national, national, state, municipal or local government (including any subdivision, court, administrative agency or commission or other authority thereof) or any quasi-governmental or private body exercising any regulatory, importing or other governmental or quasi-governmental
7
CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
authority, including the European Union and any Tax Authority;
"Group"
means, in the case of a Service Recipient, the Service Recipient Group, and in the case of the Service Provider, the Service Provider Group, or both as the context requires;
"Handover"
means the handover of a platform that is the subject of a Handover Project in accordance with that Handover Project;
"Handover Project"
has the meaning given in Schedule 11 (Migration, Integration and Development Projects);
"Hungarian Services"
means the services set out in:
(a)
Section (iii) (Hungary) of Part B (Entertainment Services) of Schedule 1
(Services);
(b)
Section (iii) (Hungary) of Part C (Connectivity Services) of Schedule 1
(Services);
(c)
Section (iii) (Hungary) of Part D (Fixed Voice Services) of Schedule 1
(Services);
(d)
Section (ii) (Hungary) of Part F (CEE Aorta Services) of Schedule 1
(Services);
(e)
Section (ii) (Hungary) of Part H (CEE IT Services) of Schedule 1
(Services);
(f)
Section (iii) (Hungary) of Part I (B2B Services) of Schedule 1 (Services);
(g)
Part J (MVNO (Hungary)) of Schedule 1 (Services);
(h)
Section (ii) (Hungary) of Part K (HR Systems) of Schedule 1 (Services);
and
(i)
Part L (Wizard Support (Hungary)) of Schedule 1 (Services);
"Incremental Costs"
means all reasonable and demonstrable additional costs properly and reasonably incurred by a party and:
(a) may include (in each case to the extent reasonably incurred by a party):
(i) to the extent that the performance of any obligation pursuant to this Agreement is through either party's
8
CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
personnel, the time spent by that party's personnel in performing that obligation, which for the Service Provider shall be the Resource Rate Card set out in Annex 3 of Schedule 11; and
(ii) to the extent that the performance of any obligation pursuant to this Agreement is through a third party supplier, the costs of that third party supplier;
(iii) where applicable, the costs and expenses specified in clause 15.5(B); and
(b) excludes:
(i) any indirect or consequential loss or damage, in each case, whether in contract tort or otherwise; and
(ii) any anticipated cost savings or synergies.
"Insolvency Event"
in relation to a party, means any of the following:
(a)
it is unable or admits inability to pay its debts as they fall due;
(b)
it suspends, or threatens to suspend, making payments on any of its debts
or, by reason of actual or anticipated financial difficulties, starts
negotiations with one or more of its creditors with a view to rescheduling
any of its indebtedness; or
(c)
a moratorium is declared in respect of any of its indebtedness (if a
moratorium occurs, the ending of the moratorium shall not remedy any
Insolvency Event caused by that moratorium);
"Integration"
has the meaning given in Schedule 11 (Migration, Integration and Development Projects);
"Integration Project"
has the meaning given in Schedule 11 (Migration, Integration and Development Projects);
"Intellectual Property Rights"
means:
(a)
patents, utility models and rights in inventions;
(b)
rights in each of: know-how, confidential information and trade secrets;
9
CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
(c)
trade marks, service marks, rights in logos, trade names, rights in each of
get-up and trade dress, rights to sue for passing off (including trade mark-
related goodwill), rights to sue for unfair competition, and domain names;
(d)
copyright, moral rights, database rights, rights in designs, and
semiconductor topography rights;
(e)
any other intellectual property rights; and
(f)
all rights or forms of protection, subsisting now or in the future, having
equivalent or similar effect to the rights referred to in paragraphs (a) to
(e) above,
in each case: (i) anywhere in the world; (ii) whether unregistered or registered (including, for any of them, all applications, rights to apply and rights to claim priority) and (iii) including, in respect of any of them, all divisionals, continuations, continuations-in-part, reissues, extensions, re-examinations and renewals;
"IPX Remedy Requirement"
is defined in Schedule 13 (IPX Assistance);
"IT Systems"
means information or communications technologies, particularly including hardware, software, middleware, networks and interfaces;
"Light Touch Plan"
has the meaning given in Schedule 11 (Migration, Integration and Development Projects);
"Maintenance Mode"
means a platform that receives Updates and Scaling (if applicable) but does not receive any Upgrades;
"Material Service Provider Operations"
means the operations of the Service Provider Group in a country that have an annual recurring EBITDA of no less than 100 million;
"Maximum Term"
means, in respect of an individual Service, the period identified in Schedule 3 (Charges) as the `Maximum Term' for such Service;
"Migration"
has the meaning given in Schedule 11 (Migration, Integration and Development Projects);
"Migration Plan"
means the Project Plans, the Light Touch Plans and Annex 1 of
10
CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
Schedule 11 (Migration, Integration and Development Projects);
"Migration Project"
has the meaning given in Schedule 11 (Migration, Integration and Development Projects);
"Milestone Fund"
has the meaning given in Schedule 11 (Migration, Integration and Development Projects);
"Minimum Service Level"
has the meaning given in Schedule 12 (Service Levels and Credits);
"Minimum Term"
means:
(a) in respect of an individual Service, the period identified in Schedule 3 (Charges) as the `Minimum Term' for such Service, unless (b) applies; and
(b) in respect of a Project-bound Service:
(i) the period specified in Annex 1 of Schedule 11 (Migration, Integration and Development Projects) as the "Minimum Term" for that Project; or,
(ii) if there is no "Minimum Term" specified (or the Minimum Term is described as "N/A") in Annex 1 of Schedule 11 (Migration, Integration and Development Projects), the period specified in Schedule 3 (Charges) as the "Minimum Term" for the Service or aspect of the Service,
as may be agreed or adjusted in accordance with clause 4.4;
"New Offering"
has the meaning given in clause 7.10;
"Omitted Service"
has the meaning given in clause 5.1 (Omitted Service);
"parties"
means the Service Provider and the Service Recipients;
"Post-Completion Information Flows means the document governing the disclosure and handling of information relating
Protocol"
to the Services to be provided or received under this Agreement, as set out in
Schedule 9 (Post-Completion Information Flows Protocol);
"Pre-Completion Plan"
has the meaning given in Schedule 11 (Migration, Integration and Development Projects);
11
CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
"Project"
has the meaning given in Schedule 11 (Migration, Integration and Development Projects);
"Project-bound Services"
means, in respect of each Migration Project and Handover Project those Services (or parts of Services) which are within the scope of a Project which are:
(A) for the Full-touch Projects where the Project Plan specifies the in-scope Services (or parts of Services), those specified; and
(B) for all other Full-touch Projects and for the Light-touch Projects, those Services (or parts of Services) agreed under clause 4.3,
and a "Project-bound Service" means each of these.
"Project Plan"
has the meaning given in Schedule 11 (Migration, Integration and Development Projects);
"Purchaser(s)"
has the meaning set out in the SPA;
"Operational Change"
has the meaning given in Schedule 7 (Change Management Procedure);
"Reference Period"
means the 12 calendar months immediately before 9 May 2018;
"Regulations"
means the Acquired Rights Directive 2001/23/EC or any local implementing instrument or relevant labour code (as amended from time to time);
"Regulator"
means one or more, as the context requires, of any stock exchange, any data protection or privacy authority, and any other regulatory, governmental or antitrust body (including any Tax Authority) having applicable jurisdiction;
"Regulatory Approvals"
has the meaning given in clause 25.1 (Regulatory matters);
"Related Service"
means any Service that is linked to or reliant upon the ongoing provision of another Service, as identified by and agreed between the Service Provider and the Relevant Service Recipient, including under the Migration Plan;
"Relevant Charges"
means:
(a)
in respect of the DE Service Recipient, the Charges payable for the
German Services;
12
CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
(b)
in respect of the CZ Service Recipient, the Charges payable for the Czech
Republic Services;
(c)
in respect of the HU Service Recipient, the Charges payable for the
Hungarian Services; and
(d)
in respect of the RO Service Recipient, the Charges payable for the
Romanian Services,
in each case, in accordance with clause 10 (Charges and invoicing) and Schedule 3 (Charges);
"Relevant Service Recipient"
means, in respect of any:
(a)
German Service, the DE Service Recipient;
(b)
Czech Republic Service, the CZ Service Recipient;
(c)
Hungarian Service, the HU Service Recipient; and
(d)
Romanian Service, the RO Service Recipient;
"Replacement Service Provider"
means the person who provides any Service or equivalent service to a member of the Service Recipient Group by way of replacement of the Service Provider;
"Representatives"
means, in relation to a party, its respective Affiliates and the directors, officers, employees, agents, advisers, accountants and consultants of that party and/or of its respective Affiliates;
"Required Change"
has the meaning given in Schedule 7 (Change Management Procedure);
"Reverse Transitional Services Agreement"
means the Reverse Transitional Services Agreement entered into by the Service Provider and the DE Service Recipient on the Effective Date;
"Roadmap"
has the meaning given in Schedule 6 (Governance Model);
"Roadmap Period"
means the period of twelve (12) months to which the relevant Roadmap relates;
"Romanian Services"
means the services set out in:
(a)
Section (iv) (Romania) of Part B (Entertainment Services) of Schedule 1
(Services);
(b)
Section (iv) (Romania) of Part C (Connectivity Services)
13
CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
of Schedule 1 (Services);
(c)
Section (iii) (Romania) of Part F (CEE Aorta Services) of Schedule 1
(Services);
(d)
Section (iii) (Romania) of Part H (CEE IT Services) of Schedule 1
(Services);
(e)
Section (iv) (Romania) of Part I (B2B Services) of Schedule 1 (Services);
and
(f)
Section (iii) (Romania) of Part K (HR Systems) of Schedule 1 (Services);
"Scaling"
means the volume expansion of hardware, software and infrastructure associated with the components and platforms;
"Seller(s)"
has the meaning set out in the SPA;
"Separation"
has the meaning set out in the SPA;
"Service Credit"
has the meaning given in Schedule 12 (Service Levels and Service Credits);
"Service Description"
means the description of a Service set out in the relevant Service Schedule;
"Service Provider's Bank Account"
means the Service Provider's bank account at ING Bank; account name Liberty Global B.V.; account number IBAN NL37 INGB 0007 1101 33 (or any other account that the Service Provider notifies to the Service Recipients in writing);
"Service Provider Group"
means the Service Provider and its Affiliates from time to time;
"Service Provider Personnel"
means any employees, sub-contractors, agents or delegates (including for the avoidance of doubt, any Third Party Supplier) from time to time of: (i) the Service Provider; and/or (ii) any member of the Service Provider Group, who in either such case are engaged in the provision of the Services;
"Service Recipient Group"
means: (i) the Service Recipients; (ii) the subsidiaries of each Service Recipient as at the Effective Date; and (iii) UPC Infrastructure s.r.o.;
"Service Recipient Guarantor's Bank means the Service Recipient Guarantor's bank account at JPMorgan Chase Bank
Account"
N.A. London (CHASGB2L); account number 40869505; IBAN
GB94CHAS60924240869505 (or any other account that the Service Recipient
Guarantor notifies to
14
CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
the Service Provider in writing);
"Service Recipient's Bank Account" means, for each Service Recipient, such bank account as that Service Recipient notifies to the Service Provider in writing from time to time;
"Service Recipients"
means the CZ Service Recipient, the DE Service Recipient, the HU Service Recipient and the RO Service Recipient (and "Service Recipient" shall be construed accordingly);
"Service Schedules"
means Schedule 1 (Services), including all Sections thereof, and "Service Schedule" shall be construed as any Part of Schedule 1 (Services), or a Section thereof, as the context requires;
"Service Term"
means, in relation to a Service, the Minimum Term plus any extension referred to in clause 4;
"Services"
means the German Services, the Czech Republic Services, the Hungarian Services and the Romanian Services, including any Omitted Services identified in accordance with clause 5, and excludes the Excluded Services (and "Service" shall be construed accordingly);
"Share Purchase Documents"
has the meaning set out in the SPA;
"SPA"
has the meaning given to it Recital (A);
"Specifications"
has the meaning give in clause 8.10;
"Supply Agreement"
has the meaning give in clause 8.10;
"Surviving Provisions"
means clauses 1, 13, 15, 19, 33, 34, 44, 45 and 46 any other right, duty or obligation of either party that is expressly stated in this Agreement or reasonably intended to survive termination;
"Target Companies"
has the meaning set out in the SPA;
"Tax" or "Taxation"
has the meaning set out in the Tax Covenant;
"Tax Authority"
has the meaning set out in the Tax Covenant;
"Tax Covenant"
has the meaning set out in the SPA;
"Term"
has the meaning given in clause 4.1 (Duration of Agreement);
15
CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
"Third Party Suppliers"
has the meaning given in clause 8.1(A) (Third Party Suppliers);
"Third Party Supply Contracts"
has the meaning given in clause 8.1(A) (Third Party Suppliers);
"Threshold"
has the meaning given in clause 3.4;
"UPC Infrastructure s.r.o."
means UPC Infrastructure s.r.o, whose registered office is at Závisova 502/5, Nusle, 140 00 Praha 4, Czech Republic (registered in the Czech Republic with No. 02608634);
"Update"
means, unless otherwise specified in a Service Schedule, platform capacity increases and software updates required: (i) for security reasons; (ii) for minor configuration activities and/or regulatory and/or legal compliance; and/or (iii) as part of general platform performance programmes (including bug fixing);
"Upgrade"
means, unless otherwise specified in a Service Schedule, new product features and product capabilities;
"Variable Charge"
means a Charge calculated on a variable cost basis in accordance with Schedule 3 (Charges);
"VAT"
means:
(a)
any Tax charged in accordance with the Value Added Tax Act 1994 and
legislation and regulations supplemental thereto, as may be amended or
substituted from time to time;
(b)
within the European Union, any Tax imposed by any Member State in
conformity with the Directive of the Council of the European Union on the
common system of value added tax (2006/112/EC); and
(c)
outside the European Union, any Tax corresponding to, or substantially
similar to, the Tax referred to in paragraphs (a) or (b) of this definition;
"Working Hours"
means 9.00 a.m. to 5.00 p.m. CET on a day (other than a Saturday or Sunday) on which banks are open for general business in the relevant location.
16
CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
1.2 In this Agreement, unless otherwise specified or the context otherwise requires:
(A) references to clauses, paragraphs, sub-paragraphs, Schedules, Parts and Sections are to clauses, paragraphs and subparagraphs of, and Schedules, Parts and Sections to, this Agreement;
(B) the singular shall include the plural and vice versa, and use of any gender includes the other genders;
(C) except as otherwise expressly provided in this Agreement, any express reference to an enactment (which includes any legislation in any jurisdiction) includes references to: (i) that enactment as amended, consolidated or re-enacted by or under any other enactment before or after the date of this Agreement; (ii) any enactment which that enactment re-enacts (with or without modification); and (iii) any subordinate legislation (including regulations) made before or after the date of this Agreement under that enactment as amended, consolidated or re-enacted as described in paragraph (i) or paragraph (ii) above, except to the extent that any of the matters referred to in paragraph (i) to paragraph (iii) (inclusive) above occurs after the date of this Agreement and increases or alters the liability of any party;
(D) references to a "company" shall be construed so as to include any corporation or other body corporate, wherever and however incorporated or established;
(E) references to a "person" shall be construed so as to include any individual, firm, company, corporation, body corporate (wherever incorporated), limited liability company, government, state or agency of a state, local or municipal authority or government body or any joint venture, association, partnership, works council or employee representative body (whether or not having separate legal personality);
(F) any reference to a party or person shall be construed so as to include its successors, permitted transferees and permitted assigns;
(G) references to the "other party" shall mean: (i) the Service Provider (in the context of a provision of this Agreement where the first party is a Service Recipient); and (ii) the Service Recipients or any one of them (in the context of a provision of this Agreement where the first party is the Service Provider), as the context requires.
(H) any reference to a "day" (including the phrase "Business Day") shall mean a period of 24 hours running from midnight to midnight;
(I)
references to times are to Central European Time;
(J)
references to "writing" shall include any modes of reproducing words in a legible and non-transitory form;
(K) references to "including" or "includes" shall mean including or includes without limitation;
(L) references to "greater" shall be construed so that, for example, 10 represents a greater amount than 5, and -5 represents a greater amount than -10;
17
CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
(M) references to "less" shall be construed so that, for example, 5 represents a lesser amount than 10, and -10 represents a lesser amount than -5;
(N) references to any English legal term for any action, remedy, method of judicial proceeding, legal document, legal status, court, official, or any legal concept or thing shall in respect of any jurisdiction other than England be deemed to include what most nearly approximates in that jurisdiction to the English legal term;
(O) all headings and titles are inserted for convenience only and are to be ignored in the interpretation of this Agreement;
(P) the Schedules form part of this Agreement and shall have the same force and effect as if expressly set out in the body of this Agreement, and any reference to this Agreement shall include the Schedules;
(Q) if there is any inconsistency between any definition set out in this clause 1 and a definition set out in any other clause or Schedule, then, for the purposes of construing that clause or Schedule, the definition set out in that clause or Schedule shall prevail;
(R) references to or Euro are references to the lawful currency from time to time of the Eurozone;
(S) if it is necessary to express a monetary sum that is expressed in Euro in a different currency, the amount in the different currency shall be derived by converting the amount in Euro at the Exchange Rate on the relevant date;
(T) any phrase introduced by the terms including, include, in particular or any similar expression shall be construed as merely illustrative and shall not limit the sense of the words preceding those terms;
(U) references to "indemnifying" any person against any circumstance shall include indemnifying on an after-Tax basis, from all actions, claims and proceedings from time to time made against him and all loss, damage, payments, costs or expenses suffered made or incurred by him as a consequence of that circumstance;
(V) any indemnity (the "Payment Obligation") being given or assumed on an after-Tax basis or expressed to be calculated on an after-Tax basis means that the amount payable pursuant to such Payment Obligation (the "Payment") shall be calculated in such a manner as will ensure that, after taking into account:
(i)
any Tax required to be deducted or withheld from the Payment;
(ii)
the amount and timing of any additional Tax which becomes payable as a result of the Payment's being
subject to Tax; and
(iii) the amount and timing of any Tax benefit which is obtained, to the extent that such Tax benefit is attributable to the matter giving rise to the Payment
18
CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
Obligation or to the entitlement to, or receipt of, the Payment, or to any Tax required to be deducted or withheld from the Payment,
the recipient of the Payment is in the same position as that in which it would have been if the matter giving rise to the Payment Obligation had not occurred (or, in the case of a Payment Obligation arising by reference to a matter affecting a person other than the recipient of the Payment, the recipient of the Payment and that other person are, taken together, in the same position as that in which they would have been had the matter giving rise to the Payment Obligation not occurred), provided that the amount of the Payment shall not exceed that which it would have been if it had been regarded for all Tax purposes as received solely by the recipient and not any other person;
(W) references in this Agreement to any person shall, when construing any provision in relation to VAT or amount in respect of VAT, be deemed at any time when such person is a member of a group for VAT purposes in relation to such VAT or amount in respect of VAT to include a reference, where appropriate, to any other member of such group for VAT purposes at such time; and
(X) references to "liabilities", "costs" and/or "expenses" incurred by a person shall not include any amount in respect of VAT included in such liabilities, costs and/or expenses for which that person is entitled to credit or repayment as input tax from any Tax Authority.
2.
Provision of Services
2.1 In consideration of each Service Recipient paying the Relevant Charges, the Service Provider shall perform its obligations under this Agreement (including providing, or procuring the provision of, the Services to the Relevant Service Recipient and relevant members of the Service Recipient Group) subject to and in accordance with the terms of this Agreement.
2.2 The Service Provider acknowledges that each Service Recipient has entered into this Agreement for their own benefit and for the benefit of each of the members of the Service Recipient Group and the Service Provider shall perform its obligations under this Agreement for the benefit of such members of the Service Recipient Group.
2.3 The operational processes applicable to the provision and receipt of the Services, and the parties' respective rights and obligations in respect of such processes, are set out in Schedule 4 (Operational Support Services and Processes).
2.4 Subject to clauses 2.5 and 2.6, but notwithstanding any other provision of this Agreement, the Services shall be provided solely for the benefit of and for use within the Business.
2.5 In relation to the Cable Access Remedy Requirement:
(A) the Service Provider shall make available, and the DE Service Recipient shall be permitted to use, the Gemini Components for the purposes of the DE Service Recipient fulfilling the Cable Access Remedy Requirement;
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(B) the use of the Gemini Components by Telefonica shall be deemed to be use by the DE Service Recipient for the purposes of this Agreement, and the DE Service Recipient shall be liable for all acts and omissions of Telefonica in its use of the Gemini Components as if they were the acts or omissions of the DE Service Recipient;
(C) if either the Service Provider or the DE Service Recipient (each acting reasonably and in good faith) identify any additional components provided by the Service Provider as part of the German Services set out in Part G (German IT Services) of Schedule 1 (Services) which are required to be used by the DE Service Recipient for the purposes of fulfilling the Cable Access Remedy Requirement then, provided that the parties (having used their respective reasonable endeavours) are able to obtain any necessary Authorisations, such additional components shall become Gemini Components for the purposes of this Agreement (and the definition of Gemini Components in this Agreement shall be updated accordingly);
(D) if any additional Authorisation is required by the Service Provider pursuant to clauses 2.5(A) or 2.5(C) above, the costs allocation set out in clause 8.7 shall not apply and the DE Service Recipient shall be solely responsible for all of the costs described in clause 8.7. The Service Provider shall:
(i)
use reasonable endeavours to minimise such costs;
(ii)
to the extent not prohibited by Applicable Law or the provisions of any Third Party Supply Contract, use
all reasonable endeavours to involve the DE Service Recipient (including by way of clean team
arrangements) in negotiations with Third Party Suppliers in respect of any Authorisations; and
(iii) not incur any such costs until these have been approved by the DE Service Recipient in advance and, to the extent the DE Service Recipient does not approve such costs, the Service Provider's obligations pursuant to
clause 2.5(A) shall not apply (solely to the extent such obligations are the subject of the Authorisation in respect of which costs have not been approved); and
(E) in addition to the costs described in clause (D) above, the DE Service Recipient shall be responsible for the Incremental Costs that the Service Provider can demonstrate, to the Service Recipient's reasonable satisfaction, have
been reasonably incurred by the Service Provider in making available the Gemini Components in accordance with this Agreement for the purposes of the DE Service Recipient fulfilling the Cable Access Remedy Requirement.
2.6 In relation to the IPX Remedy Requirement:
(A) the Service Provider and the DE Service Recipient shall comply with Schedule 13 (IPX Assistance); and
(B) if any additional Authorisation is required by the Service Provider pursuant to clause 2.6(A) above, the costs allocation set out in clause 8.7 shall not apply and the DE
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Service Recipient shall be solely responsible for all of the costs described in clause 8.7, provided that the Service Provider:
(i)
uses reasonable endeavours to minimise such costs;
(ii)
to the extent not prohibited by Applicable Law or the provisions of any Third Party Supply Contract, uses
all reasonable endeavours to involve the DE Service Recipient (including by way of clean team
arrangements) in negotiations with Third Party Suppliers in respect of any Authorisations; and
(iii) not incur any such costs until these have been approved by the DE Service Recipient in advance and, to the extent the DE Service Recipient does not approve such costs, the Service Provider's obligations pursuant to clause 2.6(A) shall not apply (solely to the extent such obligations are the subject of the Authorisation in respect of which costs have not been approved).
3.
Minimum Service Levels and Service Credits
Standard of Service
3.1 Subject to clause 3.5, the Service Provider shall perform its obligations under this Agreement (including providing, or procuring the provision of, the Services to the members of the Service Recipient Group):
(A) using reasonable care and skill;
(B) where a Minimum Service Level specifically applies to a standard of Service, such that that Minimum Service Level is met or exceeded; and
(C) save to the extent an alternative standard is expressly described in this Agreement (including in any Service Schedule and Schedule 3 (Charges)), but without prejudice to any Minimum Service Level, to a standard that meets or exceeds the standard provided by the Service Provider Group to, or procured by the Service Provider Group for, the Business during the Reference Period, including with respect to:
(i)
the standard of performance in the Reference Period;
(ii)
the allocation of resource and facilities;
(iii) the knowledge, experience and qualifications of personnel; and
(iv) the fair and reasonable prioritisation and treatment of the members of the Service Recipient Group relative to other members of the Service Provider Group.
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Service Credits
3.2 Each party shall comply with its obligations, and shall have the rights provided to it, under Schedule 12 (Service Levels and Service Credits).
3.3 Subject to clause 31 (No double recovery), the parties acknowledge and agree that Service Credits are a non-exclusive remedy, and the availability of, or election to receive, Service Credits does not constitute an election of remedies and shall not be construed to limit any other rights and remedies of any member of the Service Recipient Group under this Agreement.
Growth and development
3.4 Subject to clause 3.7, (i) the Service Provider shall notify the Relevant Service Recipient; or (ii) the Relevant Service Recipient shall notify the Service Provider, in each case in writing if, at any point in time the volume of a Service required and received by the Relevant Service Recipient and relevant members of the Service Recipient Group has exceeded (or will, in the notifying party's reasonable opinion, exceed in the next 30 days) the relevant Business Plan Baseline by more than ten (10) per cent. (the "Threshold"). Where the Service Provider makes such notification, it shall also provide a good faith estimate of the Incremental Costs that the Relevant Service Recipient may incur under clause 3.5 (if any).
3.5 The Relevant Service Recipient shall, subject to clause 3.7, bear the Incremental Costs that the Service Provider can reasonably demonstrate need to be, or have been, incurred by the Service Provider in order to provide, or have been incurred by the Service Provider as a result of providing, any Service to the Relevant Service Recipient and relevant members of the Service Recipient Group in accordance with the terms of this Agreement (including this clause 3 (Minimum Service Levels and Service Credits)) in excess of the Threshold, provided always that the Service Provider and the Relevant Service Recipient shall use all reasonable endeavours to minimise such Incremental Costs.
3.6 If the Service Provider can reasonably demonstrate that the provision of a Service required and received by the Relevant Service Recipient and relevant members of the Service Recipient Group in accordance with the terms of this Agreement (including this clause 3 (Minimum Service Levels and Service Credits)) in excess of the Threshold requires a Change or an Operational Change, the provisions of Schedule 7 (Change Management Procedure) shall apply.
3.7 The Service Provider and each Service Recipient acknowledge and agree that clauses 3.4 and 3.5 shall not apply to the extent that the Relevant Service Recipient has forecasted, and the Service Provider has approved as part of the governance process under Schedule 6 (Governance), with the relevant approving persons being aware of the effect of such approval in the context of this clause 3, the volume of a Service required and received by the Relevant Service Recipient and relevant members of the Service Recipient Group that exceeds the Threshold in the relevant period.
3.8 The Relevant Service Recipient may from time to time request in writing to the Service Provider that Services are provided for the benefit of the DSL customers, the KDG footprint and/or mobile customers outside of its existing service footprint, in which case the Service Provider and the Relevant Service Recipient shall promptly meet to discuss and seek, acting
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reasonably and in good faith, to agree to the terms of, and a written plan for, such provision, including timing and associated costs (if any). For the avoidance of doubt, nothing in this Agreement shall require the Service Provider to agree to the provision of the foregoing Services outlined in this clause. For the avoidance of doubt, nothing in this Agreement (including
this clause) shall prohibit or otherwise prevent any Service Recipient from continuing its existing ordinary course business or migrating DSL customers to the cable network.
4.
Duration of Agreement
4.1 This Agreement starts on the Effective Date and, unless terminated earlier in accordance with the terms of this Agreement, expires automatically without notice at 23:59 CET on the day on which the last of the Service Terms expires (the "Term").
4.2 Each Service shall:
(A) be provided from the Effective Date unless otherwise specified in the relevant Service Schedule; and
(B) save where extended or terminated earlier in accordance with the terms of this Agreement, terminate automatically without notice at 23:59 CET on the last day of the relevant Minimum Term.
Agreement of mapping of Project-bound Services and respective Minimum Term
4.3 The parties shall, as soon as reasonably practicable following the Effective Date, and the parties acknowledge that it may not be reasonably practicable to do so until the parties are defining the low-level design (or equivalent) of Projects, for each Project agree which Services (or parts of Services) (if any) are within the scope of:
(A) each Full-touch Project which is a Migration Project or Handover Project where the Project Plan does not specify the in-scope Services (or parts of Services); and
(B) each Light-touch Project which is a Migration Project or Handover Project,
and those agreed Services or parts of Services shall be the relevant "Project-bound Services" for each such Project.
4.4 The parties shall, acting reasonably and in good faith, as soon as reasonably practicable following the completion of the mapping of Project-bound Services for each Project under clause 4.3, agree the Minimum Term for that Project.
Service Recipient extension trigger -- general Service extension right
4.5 The Relevant Service Recipient may:
(A) for a Project-bound Service, extend the term of that Project-bound Service beyond the end of the then-current Service Term on any number of occasions by a period of
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at least three months in each case, by providing at least 12 months' notice in writing to the Service Provider in advance of the then-current Service Term; and
(B) for any other Service (where expressly stated in Schedule 3 (Charges)) extend the term of a Service beyond the relevant Minimum Term by a period of 12 months, on one (or if expressly provided in Schedule 1 (Services) on more than one occasion), by providing at least 12 months' notice in writing to the Service Provider (or such other minimum notice period as may be described in Schedule 3 (Charges)).
Subject to clauses 4.12, 4.13, and 4.15, no Service may be extended beyond the relevant Maximum Term.
Service Recipient extension trigger -- Service extension right in context of Service Recipient-caused delay
4.6 Where, during the Exceptional Extension Notice Period, a Relevant Service Recipient reasonably believes that a Project will not be completed by the end of the current Service Term applicable to any Service(s) (or part(s) of any Services(s)) to which the Project relates, that Relevant Service Recipient may, not more than once for any Project, request an extension of the term of any such Service(s) (or part(s) of any Service(s)) (an "Exceptional Extension Request") provided that:
(A) the Relevant Service Recipient gives as much notice of such term extension as is reasonably practicable in the circumstances; and
(B) the duration of such requested term extension shall be:
(i)
for any Service (or part of a Service) other than the Aorta Service (as described in Parts E and F of
Schedule 1 (Services)), for a period of not less than three months or, where there is less than three months
remaining of the Maximum Term for that Service (or part of a Service), for the period up to the expiry of
the Maximum Term;
(ii)
for the Aorta Service (as described in Parts E and F of Schedule 1 (Services)), for a period of not less than
one month or, where there is less than one month remaining of the Maximum Term for that Service (or part
of a Service), for the period up to the expiry of the Maximum Term,
(each an "Exceptional Extension Period").
4.7 Upon receipt of an Exceptional Extension Request, the Service Provider shall, at the relevant Service Recipient's cost, as soon as reasonably practicable: (A) carry out an assessment as to the expected impact on the costs (by reference to the costs set out in 4.8(B) and 4.8(D) below) and service standard of the Service(s) (or part(s) of any Service(s)) subject to the Exceptional Extension Request (and the Relevant Service Recipient shall provide such support and input as Service Provider may reasonably require in order to conduct this assessment), and (B) provide the same to the Relevant Service Recipient for review. The Relevant Service Recipient shall respond to the impact assessment as soon as reasonably
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practicable following receipt with a decision as to whether or not to proceed with the Exceptional Extension Request.
4.8 Following provision of the impact assessment, where the Relevant Service Recipient makes a decision to proceed with an Exceptional Extension Request, the Service Provider shall continue to provide the relevant Service(s) (or part(s) of any Service(s)) during the relevant Exceptional Extension Period in accordance with the terms of this Agreement, subject to the following:
(A) during the Exceptional Extension Period:
(i)
the standard of service set out in clause 3.1 will not apply to the relevant Service(s) (or part(s) of the
Service(s)) other than: (i) the obligation to use reasonable skill and care in clause 3.1(A); and
(ii)
Schedule 12 (Service Levels and Service Credits) will not apply to any Service Platform to which the
relevant Service(s) (or part(s) of any Service(s) relates).
(B) the parties shall continue to comply with provisions of clause 8 (Third Party Suppliers) in respect of any Authorisations required for the Service Provider to provide the relevant Service(s) (or part(s) of any Service(s)) during the Recipient Extension Period, save that:
(i)
the cost allocation in clause 8.7 shall not apply and the relevant Service Recipient shall be solely
responsible for all costs described in that clause;
(ii)
the Service Provider's obligations in clauses 8.3 and 8.6 shall be on an all reasonable endeavours basis;
(iii) the Service Provider shall not incur any costs described in clause 8.7 until these have been approved by the relevant Service Recipient in advance and, to the extent the relevant Service Recipient does not approve such costs, the Service Provider's obligations to provide the relevant Service (or part of a Service) shall not
apply (except to the extent that it is reasonably possible for the Service Provider to provide any part of the Service without the Authorisation in respect of which costs have not been approved);
(C) the Service Recipient shall continue to pay the applicable Charges for the relevant Services (or part(s) of any Service(s)) that are provided throughout the Exceptional Extension Period; and
(D) the Service Recipient shall reimburse the Service Provider in respect of all Incremental Costs incurred by the Service Provider in connection with any Exceptional Extension Request and the provision of any such Service(s) (or parts of any Service(s)) subject to the Exceptional Extension Request during the Exceptional Extension Period, including all costs of obtaining and maintaining any Authorisation.
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Emergency Extension
4.9 Where, during the Emergency Extension Notice Period, a Relevant Service Recipient reasonably believes that a Project will not be completed by the end of the current Service Term applicable to any Service(s) (or part(s) of any Service(s)) to which the Project relates, that Relevant Service Recipient may not more than once for any Project, request an extension of the term of any such Service(s) (or any part of any Service(s)) (an "Emergency Extension Request") provided that:
(A) the circumstances triggering the Emergency Extension Request were not reasonably apparent to the Relevant Service Recipient prior to the expiry of the Exceptional Extension Notice Period;
(B) the Relevant Service Recipient gives as much notice of such term extension as is reasonably practicable in the circumstances; and
(C) the duration of such requested term extension shall be:
(i)
for any Service (or part of a Service) other than the Aorta Service (as described in Parts E and F of
Schedule 1 (Services)), for a period of not less than three months or, where there is less than three months
remaining of the Maximum Term for that Service (or part of a Service), for the period up to the expiry of
the Maximum Term; or
(ii)
for the Aorta Service (as described in Parts E and F of Schedule 1 (Services)), for a period of not less than
one month or, where there is less than one month remaining of the Maximum Term for that Service (or part
of a Service), for the period up to the expiry of the Maximum Term,
(each an "Emergency Extension Period").
4.10 Upon receipt of an Emergency Extension Request, the Service Provider shall, at the relevant Service Recipient's cost, to the extent reasonably practicable: (A) carry out an assessment as to the expected impact on the costs (by reference to the costs set out in 4.11(B) and 4.11(D)) and service standard of the Service(s) (or part(s) of any Service(s)) subject to the Emergency Extension Request (and the Relevant Service Recipient shall provide such support and input as Service Provider may reasonably require in order to conduct this assessment), and (B) provide the same to the Relevant Service Recipient for review. The Relevant Service Recipient shall respond to the impact assessment as soon as reasonably practicable with a decision as to whether or not to proceed with the Emergency Extension Request.
4.11 following provision of the impact assessment, where a Relevant Service Recipient makes a decision to proceed with an Emergency Extension Request, the Service Provider shall use reasonable efforts to continue to provide the relevant Service (s) (or part(s) of any Service(s)) during the relevant Emergency Extension Period in accordance with the terms of this Agreement, subject to the following:
(A) during the Emergency Extension Period:
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(i)
the standard of service set out in clause 3.1 will not apply to the relevant Service(s) (or part(s) of any
Service(s)) other than: (i) the obligation to use reasonable skill and care in clause 3.1(A);
(ii)
Schedule 12 (Service Levels and Service Credits) will not apply to any Service Platform to which the
relevant Service(s) (or part(s) of any Service(s) relates).
(B) the parties shall continue to comply with provisions of clause 8 (Third Party Suppliers) in respect of any Authorisations required for the Service Provider to provide the relevant Service (or part(s) of any Service(s)) during the Recipient Extension Period, save that:
(i)
the cost allocation in clause 8.7 shall not apply and the relevant Service Recipient shall be solely
responsible for all costs described in that clause;
(ii)
the Service Provider's obligations in clauses 8.3 and 8.6 shall be on a reasonable endeavours basis;
(iii) the Service Provider shall not incur any costs described in clause 8.7 until these have been approved by the relevant Service Recipient in advance and, to the extent the relevant Service Recipient does not approve such costs, the Service Provider's obligations to provide the relevant Service (or part of a Service) shall not apply (except to the extent that it is reasonably possible for the Service Provider to provide any part of the Service without the Authorisation in respect of which costs have not been approved);
(C) the Service Recipient shall continue to pay the applicable Charges for the relevant Services (or part(s) of any Service(s)) that is provided throughout the Emergency Extension Period; and
(D) the Service Recipient shall reimburse the Service Provider in respect of all Incremental Costs incurred by the Service Provider in connection with any Emergency Extension Request and the provision of any such Service(s) (or part(s) of any Service(s)) subject to the Emergency Extension Request during the Emergency Extension Period, including all costs of obtaining and maintaining any Authorisation.
Service Recipient extension trigger -- Service extension right in context of Handover Projects
4.12 Where a Relevant Service Recipient reasonably believes that a Handover Project will not be completed by the end of the Maximum Term applicable to any Service(s) corresponding to the platform to which the Handover Project relates, that Relevant Service Recipient may extend those Service(s) for a period of 12 months' beyond the Maximum Term on no less than 12 months' written notice to the Service Provider. Unless that Relevant Service Recipient believes, acting reasonably and in good faith, that the Service Provider would have been solely responsible for the failure of the Handover Project to be completed by the end of the relevant Maximum Term, the Charges for the extended Service(s) during such additional 12
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month period shall be equal to 130% of the Charges for such Service(s) during the 12 month period immediately preceding the end of the relevant Maximum Term.
Service Provider extension trigger -- automatic Service extension in context of Service Provider-caused delay
4.13 Where any failure by the Service Provider to comply with its obligations under Schedule 11 (Migration, Integration and Development Projects) is the cause of a failure by the parties to complete a Project relating to a Service (or part of a Service) by the end of the then-current Service Term (as may have been extended pursuant to this clause 4), then, in each case, that Service (or part of a Service) shall automatically extend beyond the then-current Service Term for a period commensurate with the delay caused by the Service Provider's failure (as agreed between the parties in accordance with Annex 3 to Schedule 11 or defined by the Third Party Expert pursuant to paragraph 16 (Allocation of responsibility) of Schedule 11), (a "Provider Extension Period") which may, for the avoidance of doubt, extend the Service Term beyond the Maximum Term.
4.14 Where the term of a Service is automatically extended pursuant to clause 4.13, the Service Provider shall continue to provide the relevant Service(s) (or part of a Service) during the Provider Extension Period in accordance with the terms of this Agreement, subject to the following:
(A) the parties shall continue to comply with provisions of clause 8 (Third Party Suppliers) in respect of any Authorisations required for the Service Provider to provide the relevant Service(s) (or part(s) of Service(s)) during the Provider Extension Period, save that the cost allocation in clause 8.7 shall not apply and the Service Provider shall be solely responsible for all costs described in that clause 8.7;
(B) the Service Recipient shall continue to pay the applicable Charges for the relevant Service(s) (or part(s) of Service (s)) that is provided throughout the Provider Extension Period; and
(C) the Service Provider shall reimburse the Service Recipient in respect of all Incremental Costs incurred by the Service Recipient in connection with the relevant Project delay.
`No fault' extension trigger - Service extension in context of Force Majeure
4.15 Where any failure by the parties to complete a Project relating to a Service (or part of a Service) by the end of the thencurrent Service Term (as may have been extended pursuant to this clause 4) is caused by a Force Majeure Event, the parties shall work together to discuss and agree in good faith an extension beyond the then-current Service Term for a period commensurate with the delay caused by the Force Majeure Event (which may, for the avoidance of doubt, extend the Service Term beyond the Maximum Term). During such period the Relevant Service Recipient shall continue to pay the Charges for that Service (or part of a Service) and each party shall otherwise continue to bear costs in accordance with the provisions of this Agreement.
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Relationship to Change Management Procedure and Project Change Management Process
4.16 The process of the extension to a Service Term for a Service made pursuant to this clause 4 shall not be subject to the requirements or process set out in the Change Management Procedure or the Project Change Management process, but for the avoidance of doubt the consequences of the extensions to Service Terms under this clause 4 may result in one or more parties making a Change Request under the Change Management Procedure or making a request for a Project Change under the Project Change Management process.
Termination of a Service
4.17 Save as otherwise provided for in this Agreement, termination of a Service, or part of a Service, shall not relieve the Service Provider from its obligations to provide its remaining Services (or remaining parts of the terminated Service).
5.
Omitted Services
5.1 If within 18 calendar months from and including the Effective Date any Service Recipient identifies any service which:
(A) is not included in a Service Schedule;
(B) is not an Excluded Service or a matter for which responsibility is expressly allocated by this Agreement;
(C) is not a service that is expressly identified in Appendix 1 to Schedule 14 (Separation) of the SPA as being terminated or otherwise ceasing as a result of the implementation of the Separation;
(D) does not consist of providing or procuring the benefit of any contract that has been identified to a Purchaser during Separation as a contract to be transferred or split pursuant to Schedule 14 (Separation) of the SPA;
(E) was provided (either directly or under a Third Party Supply Contract) to the Business during the Reference Period and/or between the date of the SPA and the Effective Date; and
(F) that Service Recipient, acting reasonably and in good faith, considers to be necessary for the ongoing operation of the Business of the Target Companies,
(any service meeting all of the criteria in paragraph (A) to (F) above being an "Omitted Service"), then that Service Recipient may notify the Service Provider in writing, giving a description of the relevant Omitted Service and requesting that it is included in the scope of this Agreement from a specified date.
5.2 The Service Provider shall provide, or procure the provision of, each Omitted Service to the relevant members of the Service Recipient Group, at no charge except where clause 5.3 applies, from the relevant date specified in the relevant notice referred to in clause 5.1 for
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such time as those members of the Service Recipient Group so require, not to exceed 4 years.
5.3 The Service Provider shall be entitled to charge a fee for a Omitted Service equal to the fee charged to the relevant Service Recipient (or relevant member of the Service Recipient Group) for the equivalent service during the period referred to in clause 5.1(E), provided that the Service Provider can demonstrate (to the relevant Service Recipient's reasonable satisfaction) that the fee was included as a recurring charge in each of: (a) the 2016 and 2017 historical financials; and (b) the 2018 budget of the Target Companies, in each case as made available to the Purchaser in the Data Room prior to the date of the SPA, and provided that there is no indication in such materials of a plan for termination or cessation of the relevant Omitted Service.
5.4 Without prejudice to the Service Provider's obligations under clause 3 (Minimum Service Levels and Service Credits), each Omitted Service shall, save in respect of charging, be provided to the relevant members of the Service Recipient Group on substantially the same basis as provided to the relevant Business during the Reference Period and the Service Provider and the Relevant Service Recipient shall discuss in good faith any other relevant terms that should apply to the provision of the Omitted Service and document the agreed terms in a manner consistent with the Service descriptions in the relevant Service Schedule.
5.5 Except where the context requires otherwise, any Omitted Service to be provided under this clause 5 (Omitted Service) shall be categorised by the parties (or, in the absence of agreement between the parties, escalated for resolution in accordance with Schedule 6 (Governance Model)) as a German Service, Czech Republic Service, Hungarian Service or Romanian Service, and references to the German Services, Czech Republic Services, Hungarian Services and Romanian Service shall include any Omitted Services categorised as such and the standards referred to in clause 3 (Minimum Service Levels and Service Credits) shall apply to all such Omitted Services.
6.
Migration, Integration and Development Projects
6.1 Each party shall comply with its obligations, and shall have the rights provided to it, under Schedule 11 (Migration, Integration and Development Projects).
7.
Updates and Upgrades
Upgrades
7.1 Subject to clause 7.2, unless otherwise stated in a Service Schedule, no Upgrades shall be provided under this Agreement.
7.2 Subject to any restrictions imposed by antitrust law, the Service Provider shall notify the Relevant Service Recipient in writing of all material Upgrades that are rolled out by or on behalf of the Service Provider in respect of services equivalent to the Services in the territories referred to in Schedule 1 (Services) (and that are not already included in a Service Schedule) as soon as reasonably practicable following such roll out. The Relevant Service
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Recipient may request the implementation of such an Upgrade in respect of a Service by way of Special Request pursuant to paragraph 4.2.3 of Schedule 6 (Governance Model).
Updates
7.3 The Service Provider shall:
(A) as part of agreeing the Roadmap with the Service Recipients pursuant to Schedule 6 (Governance Model), notify the Relevant Service Recipient of Updates that the Service Provider proposes to roll out in respect of the Services during the relevant Roadmap Period and a reasonable time window in which the Service Provider proposes the roll out to take place; and
(B) notify the Relevant Service Recipient of ad-hoc Updates that the Service Provider proposes to roll out in respect of the Services, including a reasonable time window in which the Service Provider proposes the roll out to take place, as soon as reasonably practicable following the Service Provider's decision to effect such roll out.
Notwithstanding the generality of the foregoing, the Service Provider shall ensure that each such notice is issued as far in advance of the start of the proposed time window for the relevant roll out as is reasonably practicable, taking into account the nature of the relevant Update (the Service Recipients acknowledging that certain emergency Updates may be rolled out on very short notice).
7.4 The Service Provider shall ensure that Updates are made available to the Service Recipients in accordance with clause 3.1(C).
7.5 The Relevant Service Recipient shall as soon as reasonably practicable after receiving notice of the proposed roll out of an Update pursuant to clause 7.3 notify the Service Provider in writing as to whether the Relevant Service Recipient, acting reasonably and in good faith:
(A) rejects the relevant Update;
(B) accepts the roll out of the relevant Update in the roll out window proposed by the Service Provider; or
(C) accepts the roll out of the relevant Update but requires the roll out to be postponed until after the proposed roll out window.
7.6 Where an Update is rejected by the Relevant Service Recipient pursuant to clause 7.5(A) or postponed by the Relevant Service Recipient pursuant to clause 7.5(C), the Service Provider and the Relevant Service Recipient shall immediately meet to agree, acting reasonably and in good faith, an alternative roll out arrangement that is acceptable to both the Service Provider and the Relevant Service Recipient. Where the Service Provider and the Relevant Service Recipient fail to agree such an agreement within 10 days following the start of such discussions, the Service Provider shall, to the extent it has not already done so:
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(A) notify the Relevant Service Recipient in writing of the anticipated effect of the rejection or postponement (as applicable) on the Service(s) to which the relevant Update relates and provide a good faith estimate of Incremental Costs for which the Relevant Service Recipient may be liable under clause 7.8 or 7.9 (if any), and where postponed by the Relevant Service Recipient pursuant to clause 7.5(C), the revised roll out window (acting reasonably and in good faith, and having regard to any requests made by the Relevant Service Recipient during the discussions between the Service Provider and the Relevant Service Recipient regarding alternative roll out arrangements under this clause 7.6); and
(B) provide the Relevant Service Recipient with a reasonable opportunity to reconsider its rejection or postponement and select an alternative response to the proposed roll-out in accordance with clause 7.5.
7.7 Where an Update is accepted by the Relevant Service Recipient, the Service Provider shall roll out such Update in the proposed window accepted by the Relevant Service Recipient or as agreed under clause 7.6, in each case at no charge to the Relevant Service Recipient.
7.8 Where:
(A) all of the Service Recipients reject the roll out of an Update pursuant to clause 7.5(A); or
(B) all of the Service Recipients postpone the roll out of an Update pursuant to clause 7.5(C),
the Relevant Service Recipient shall reimburse the Service Provider in respect of all Incremental Costs reasonably incurred by the Service Provider in continuing to provide the relevant Service without the relevant Update.
7.9 Where one or more but not all of the Service Recipients:
(A) reject the roll out of an Update pursuant to clause 7.5(A); or
(B) postpone the roll out of an Update pursuant to clause 7.5(C),
then the Service Provider will continue to provide the relevant Service to a Service Recipient which has rejected or postponed the roll out of the Update subject to the following:
(i)
any Relevant Service Recipient which has rejected or postponed the roll out of the Update shall reimburse
the Service Provider in respect of all Incremental Costs reasonably incurred by the Service Provider in
continuing to provide the relevant Service to that Relevant Service Recipient without the relevant Update;
(ii)
if and to the extent that the rejection or postponement of the Update adversely impacts the
stability/availability of the relevant Service Platform:
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(a)
the standard of service set out in clause 3.1 for the relevant Service (or part of the Service) will be
reduced commensurately to the extent of such adverse impact) ; and
(b)
Schedule 12 (Service Levels and Service Credits) will not apply in respect of the Service Platform
to which the relevant Service (or part of a Service relates); and
(iii) the relevant Service shall be provided in the same manner following the rejection or postponement, except to the extent that it is operationally unfeasible (including because any relevant Third Party Supplier refuses
to provide any service which the Service Provider is reliant on in providing the relevant Service, with no operationally feasible replacement) for the Service Provider to provide that Service in the same manner.
New Offerings
7.10 Without prejudice to clause 5 (Conduct of Business before Completion) of the SPA or any activities agreed between the Service Provider and the Service Recipients as part of the Migration Plan, during the period between the date of the SPA and the Effective Date, if the Service Provider Group launched any new platform, modem or other customer service (including the `EOS' platform, but otherwise excluding those developments identified in the Service Schedules as being planned for implementation between the date of the SPA and the Effective Date) within the Business (each a "New Offering"), then with effect from the Effective Date the Service Provider shall continue providing that New Offering as a Service to the Service Recipient Group under this Agreement, subject to and in accordance with the following:
(A) Sections (i) to (iv) of Part B (Entertainment Services) of Schedule 1 (Services) shall be amended (as applicable) to incorporate a reference to that New Offering;
(B) the Service Recipients may not make the New Offering available to any customer not receiving the New Offering as at the Effective Date without reaching a separate commercial agreement with the Service Provider regarding the expansion of that New Offering;
(C) subject to (D), the Service Provider shall bear all costs incurred in connection with maintaining and operating that New Offering (including any ongoing licence fees related to the use of that New Offering);
(D) where the New Offering is the `EOS' platform, the Service Recipients shall bear all recurring support and third party licence costs on a basis that is no more than the recurring support and third party licence costs for Hzn3 per equivalent set top box unit; and
(E) the Service Provider shall provide that New Offering for a period of at least 4 years from the Effective Date (unless that New Offering is terminated earlier in accordance with this Agreement).
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Development and delivery
7.11 Each party shall comply with its obligations, and shall have the rights provided to it, under Schedule 5 (Development and Delivery).
8.
Third Party Suppliers
8.1 The parties agree that, subject to clause 32 (Assignment and sub-contracting):
(A) certain Services may be provided in whole or in part by or through the use of third parties on behalf of the Service Provider ("Third Party Suppliers");
(B) the provision of Services by the Service Provider in accordance with the terms of this Agreement may require licences or consents granted by Third Party Suppliers; and
(C) certain equipment, components, software and services necessary for the provision and receipt of the Services (including consumer premises equipment) in accordance with the terms of this Agreement may be supplied to the Service Provider by Third Party Suppliers,
in each case under contracts to which a member of the Service Recipient Group is not a party ("Third Party Supply Contracts").
8.2 The parties further agree that:
(A) the use of Third Party Supply Contracts in the manner described in clause 8.1 and the supply by the Service Provider to the Service Recipient Group of goods and/or services that are supplied to the Service Provider under a Third Party Supply Contract, may require the Service Provider to obtain additional consents, approvals, permissions or licences from Third Party Suppliers (collectively, "Authorisations"); and
(B) obtaining Authorisations may require the Service Provider to incur additional one-off and/or ongoing third party costs ("Authorisation Expenses").
8.3 Where any Authorisations are necessary to provide the Services or supply goods and/or services to the Service Recipient Group in accordance with the terms of this Agreement, the Service Provider shall, subject to clauses 8.4 and 8.5:
(A) use best endeavours to, prior to the Effective Date, obtain and, thereafter, maintain such Authorisations, prioritising its efforts to obtain the Authorisations necessary under the most material Third Party Supply Contracts first, with the
remaining Authorisations being sought on a phased basis depending on the materiality of the relevant Third Party Supply Contract;
(B) subject to the provisions of Schedule 9 (Post-Completion Information Flows Protocol) provide the relevant Service Recipients with reasonable notice of any relevant
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obligations owed to, or restrictions put in place by, the relevant Third Party Supplier or under the relevant Third Party Supplier Agreement;
(C) immediately notify the relevant Service Recipients if the Service Provider fails to obtain or maintain any such Authorisation; and
(D) use best endeavours to, including by working with the relevant Service Recipients to, minimise any adverse impact resulting from a failure to obtain or maintain any such Authorisation.
8.4 Subject to any restrictions imposed by antitrust law, the Service Provider shall notify the relevant Service Recipients in advance of approaching, and, at the relevant Service Recipients' request, permit the relevant Service Recipients to participate in discussions with, the Third Party Suppliers in respect of the Authorisations. The relevant Service Recipients shall provide, and shall procure that their Affiliates provide, reasonable assistance to the Service Provider in connection with the obtaining and maintaining of any required Authorisations.
8.5 The Service Provider shall not offer any material additional Dependencies to any Third Party Supplier in order to obtain any Authorisation without the relevant Service Recipients' prior written consent.
8.6 Where the Service Provider fails to obtain or maintain any Authorisation for any reason, the Service Provider and the relevant Service Recipients shall discuss in good faith, and the Service Provider shall, based on such discussions, procure, an alternative means of continuing the provision of the relevant Service or facilitating the continued supply of the relevant goods and/or services (as the case may be) in accordance with the terms of this Agreement.
8.7 All:
(A) one-off costs and Incremental Costs paid to the relevant Third Party Supplier in obtaining and maintaining an Authorisation; and
(B) costs of procuring any alternative provision of Services or supply of goods and/or services,
shall (except as described in clauses 2.5 and 2.5(E)) in each case be borne 50:50 as between: (i) the Service Provider; and (ii) the relevant Service Recipient(s) to which the Authorisation and/or alternative provision of Services or supply of goods and/or services relates.
8.8 Where the Service Provider obtains an Authorisation, the relevant Service Recipient(s) shall comply, and shall procure that the members of its or their Group comply, with all obligations owed to, and all restrictions put in place by, the relevant Third Party Supplier, in each case to the extent that the relevant Service Recipient(s) have been provided with reasonable advance notice of such restrictions and obligations in writing by the Service Provider.
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8.9 The Service Recipients shall not act, or omit to act, in a manner which the Service Provider has identified to the Service Recipients in writing in advance, will cause the Service Provider to be in breach of any Third Party Supply Contract. Provided that the Service Provider notifies the Service Recipients in writing promptly after becoming aware of the breach,
the Service Recipients shall indemnify and shall hold harmless the Service Provider and any of its Affiliates on demand against all direct and demonstrable Costs that result from a breach of this clause.
Direct supply and CPE
8.10 Where a Service Recipient enters into a direct agreement with a Third Party Supplier for the supply of equipment (including consumer premises equipment ("CPE")), software, services or licences, that in each case is reasonably required for the receipt of the Services, (each a "Supply Agreement") that Service Recipient shall, subject to the Service Provider's compliance with clause 8.11, ensure that such equipment, software, services or licences conforms in all material respects to all specifications reasonably required by the Service Provider and notified in advance by the Service Provider to that Service Recipient (the "Specifications").
8.11 In the event that the Service Provider proposes to make any change to any Specification during the Term, the Service Provider shall promptly notify the relevant Service Recipients in writing and work with those Service Recipients and the relevant Third Party Supplier, acting reasonably and in good faith, to enable those Service Recipients and Third Party Supplier to make such changes to the relevant Supply Agreement and/or relevant equipment, software, services or licences as are needed to conform with the proposed change to the Specification before it takes effect.
8.12 Without prejudice to clause 8.10, which shall apply to CPE procured pursuant to this clause 8.12, the Service Recipients shall, throughout the Term, be responsible for procuring all CPE required for the Service Recipient Group to receive the benefit of the Services under this Agreement.
8.13 The Service Provider warrants that, as at the Effective Date, all equipment, software, services and licences owned and/or licensed to any members of the Service Recipient Group for receipt of the Services, and the terms of each Supply Agreement, satisfy the Specifications for the purposes of clause 8.10.
9.
Dependencies
9.1 The Service Provider shall promptly notify the relevant Service Recipients in writing of (and, to the extent the Service Provider is reasonably able, promptly notify the relevant Service Recipients in writing prior to) the occurrence of any failure or delay by a Service Recipient and/or any member of its Group to fulfil, or to procure the fulfilment of, any Dependency of which the Service Provider, any member of the Service Provider Group or any of its or their sub-contractors becomes aware which has or is likely to have an adverse effect on the supply of one or more Services and/or on the ability of the Service Provider to perform its obligations under this Agreement (a "Dependency Failure").
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9.2 The Service Provider's liability to the Service Recipients for a failure to perform, or delay in performing, a Service and/or any other obligation under this Agreement shall be proportionally reduced to the extent that the failure or delay was caused by a Dependency Failure, provided that the Service Provider:
(A) could not have avoided such failure or delay by taking precautions which the Service Provider ought reasonably to have taken;
(B) notifies the relevant Service Recipients of the Dependency Failure and its likely effect on the supply of the Services and/or on the ability of the Service Provider to perform its obligations under this Agreement; and
(C) uses all reasonable endeavours to minimise and mitigate the impact of such failure or delay and to continue to perform its affected obligations (in addition to continuing to perform those of its obligations under this Agreement that are unaffected by Dependency Failure).
9.3 The Service Provider may, in providing or procuring each Service, rely on the provision of data and information to it by or on behalf of the members of the Service Recipient Group in respect of that Service. Except as otherwise agreed in writing, the Service Provider has no obligation to review, verify or otherwise confirm the accuracy, completeness or sufficiency of the data or information provided by or on behalf of the members of the Service Recipient Group, provided that the Service Provider shall notify the providing member of the Service Recipient Group as soon as reasonably practicable following the identification by the Service Provider or any of its sub-contractors of any inaccurate, incomplete or insufficient data or information. Provided such notification obligation is complied with, the Service Provider shall not have any liability under this Agreement, whether in contract, tort (including negligence) or otherwise, to the extent such liability arises as a result of the inaccuracy, insufficiency or incompleteness of the data or information provided by or on behalf of the members of the Service Recipient Group in respect of the relevant Service.
10. Charges and invoicing
10.1 Save to the extent expressly provided for in this Agreement, the parties acknowledge and agree that the Charges shall be calculated on the basis set out in Schedule 3 (Charges).
Fixed Charges
10.2 Fixed Charges shall be payable in equal monthly instalments in arrears.
Variable Charges
10.3 Variable Charges shall be payable monthly in arrears, calculated by reference to the relevant unit costs set out in Schedule 3 (Charges).
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Invoicing and Payment
10.4 Each Service Recipient shall pay the Relevant Charges (and such other amounts that are payable by that Service Recipient to the Service Provider under this Agreement) invoiced by the Service Provider under this Agreement in Euros by way of electronic transfer to the Service Provider's Bank Account within 30 calendar days from the date of receipt of the relevant invoice by that Service Recipient (the "Due Date"). Receipt of the amount due shall be an effective discharge of the relevant payment obligation.
10.5 If a Service Recipient reasonably and in good faith believes that any invoice or part of an invoice issued to it by the Service Provider is incorrect, it shall within 10 Business Days of receipt of such invoice notify the Service Provider in writing stating the reasons why it believes the invoice to be incorrect. That Service Recipient's notice will constitute a dispute and will be addressed in accordance with the escalation process through the Governance Structure in Schedule ] (Governance Model). That Service Recipient shall be entitled to withhold payment of the disputed amount but shall be obliged to pay any undisputed part of the invoice by the Due Date. On settlement of any dispute that Service Recipient shall pay any amount that is properly due and owing under the invoice.
10.6 If any sum due for payment by a Service Recipient under this Agreement is not paid by the applicable Due Date, that Service Recipient shall pay Default Interest on that sum from, but excluding, the applicable Due Date to, and including, the date of actual payment, calculated on a daily basis and compounding annually.
10.7 If, in respect of an invoice that a Service Recipient has not disputed in accordance with clause 10.5, that Service Recipient has failed to pay the Service Provider by the applicable Due Date:
(A) if by the date falling 60 calendar days after the Due Date that Service Recipient has failed to pay such undisputed invoice, the Service Provider shall have the right to suspend all or the part of the Services to which the failed payment relates, provided that the Service Provider has issued a notice by email on the date falling:
(i)
30 days after the Due Date, identifying the relevant non-payment; and
(ii)
45 days after the Due Date, identifying the relevant non-payment and the Service Provider's intention to
suspend the Services (or part thereof) to which the failed payment relates,
in each case to pierre.klotz@vodafone.com, and copied to alexander.deacon@vodafone.com; and
(B) if by the date falling 90 calendar days after the Due Date that Service Recipient has failed to pay such undisputed invoice, the Service Provider shall have the right to terminate this Agreement, provided that the Service Provider has, acting reasonably and in good faith, exhausted the escalation procedure through the process set out in Schedule 6 (Governance Model) and has issued a notice by email on the date falling:
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(i)
60 days after the Due Date identifying the relevant non-payment; and
(ii)
75 days after the Due Date, identifying the relevant non-payment and the Service Provider's intention to
terminate the Agreement,
in each case to pierre.klotz@vodafone.com, and copied to alexander.deacon@vodafone.com.
11. Tax
11.1 Any payment of the Relevant Charges by a Relevant Service Recipient to the Service Provider under this Agreement will be made without any deduction or withholding for or on account of any Taxes unless such deduction or withholding is required by law. If the Relevant Service Recipient is required by law to make any such deduction or withholding from any such payment of the Relevant Charges, then that Relevant Service Recipient will not be required to pay any additional amount in respect of such deduction or withholding to the Service Provider, and that Relevant Service Recipient shall:
(A) ensure that the deduction or withholding does not exceed the minimum amount legally required;
(B) pay to the relevant Tax Authority within the period permitted for payment the full amount so deducted or withheld; and
(C) provide to the Service Provider an appropriate receipt or other evidence of payment to the relevant Tax Authority of the amount so deducted or withheld.
11.2 The Service Provider and the Relevant Service Recipient shall use reasonable endeavours to co-operate in completing any statements or documents and making any claims, filings or notifications which may be required in order to avoid the imposition of any such deduction or withholding or to reduce the amount of any such deduction or withholding and, if the imposition of any such deduction or withholding cannot be avoided or reduced in full, in order to enable the Service Provider to make a claim for repayment of, or a tax credit in respect of, the amount deducted or withheld.
11.3 Clauses 11.1 and 11.2 above shall apply mutatis mutandis in respect of the payment of the Service Credits by the Service Provider to any Relevant Service Recipient under this Agreement, but: (i) replacing references to the `Service Provider' with `Relevant Service Recipient' and vice versa; and (ii) replacing references to the `Relevant Charges' with `relevant Service Credits'.
VAT
11.4 All sums payable under this Agreement, including the Charges, which (in whole or in part) constitute the consideration for any supply for VAT purposes shall be deemed to be exclusive of any VAT which is chargeable on that supply.
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CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
11.5 If, under this Agreement, anything is done which is a supply on which VAT is chargeable, and the maker of the supply is required to account to a Tax Authority for VAT in respect of that supply, the recipient of the supply shall, subject to the receipt of a valid VAT invoice in respect of such supply, pay to the maker of it (in addition to, and at the same time as, any other consideration for that supply) an amount equal to that VAT.
11.6 Where, under the terms of this Agreement, any costs which have been included in the calculation of an amount which a Service Recipient is obliged to pay to the Service Provider are treated for VAT purposes as consideration for a supply to that Service Recipient by a person other than the Service Provider, the Service Provider shall use reasonable endeavours to procure the provision to that Service Recipient of a valid VAT invoice in respect of such supply.
11.7 Any sum payable under this Agreement by a Service Recipient:
(A) shall be paid by that Service Recipient:
(i)
on its own behalf to the extent that the sum relates to a Service which the Service Recipient receives; and
(ii)
on behalf of the relevant member of the Service Recipient Group to the extent that the sum relates to a
Service received by that member of the Service Recipient Group; and
(B) shall be received by the Service Provider:
(i)
on its own behalf to the extent that the sum relates to a Service which the Service Provider supplies; and
(ii)
on behalf of the relevant Affiliate of the Service Provider to the extent that the sum relates to a Service
supplied by that Affiliate.
12. Termination
General Termination of Services
12.1 Subject to clauses 12.2 to 12.9 (inclusive), no party has the right to terminate any Service prior to the expiry of the Service Term for that Service.
12.2 The Relevant Service Recipient may terminate:
(A) an individual Service in whole, or in part to the extent such Service is adequately sub-divided as specified in Schedule 3 (Charges)), or otherwise illustrated in the worked example at the Annex to Schedule 3 (Charges), by
providing at least 12 calendar months' notice in writing to the Service Provider (or such other minimum notice period as may be described in Schedule 3 (Charges)), provided that such termination shall not take effect before the end of the Minimum Term specified for that Service (or part of the Service); or
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(B) a Project-bound Service by providing at least 12 calendar months' notice in writing to the Service Provider provided that such termination shall not take effect before the end of the Minimum Term of that Project.
For the avoidance of doubt, the Relevant Service Recipient need not provide the Service Provider with 12 calendar months' notice pursuant to clause 12.2(B) where the parties have, through the relevant Governance Committee, agreed in writing a specific date on which the termination of a Project-bound Service shall take effect, which may take effect before the end of the Minimum Term specified for that Service (or part of the Service).
12.3 Provided that the Relevant Service Recipient has, acting reasonably and in good faith, first exhausted the escalation procedure through the Governance Structure set out in Schedule 6 (Governance Model), it may terminate a Service (in whole or in part) with immediate effect by giving written notice to the Service Provider if the Service Provider commits a breach of any material obligation (or a combination of obligations that in their entirety is material) under this Agreement relevant to that Service and, in the case of a breach that is capable of remedy, fails to remedy it within 30 calendar days of receipt of a notice giving full particulars of the breach and requiring it to be remedied. The Service Provider shall have no equivalent right of termination.
12.4 Prior to the termination of any Service (in whole or in part), the Service Provider and the Relevant Service Recipient shall have undertaken a joint assessment of the impact of the termination of that Service (or part of a Service) on any Related Services.
Termination of this Agreement
12.5 If an Insolvency Event occurs in relation to a Service Recipient, the Service Provider may terminate this Agreement, in so far as it relates to that Service Recipient, with immediate effect by written notice to each Service Recipient.
12.6 The Service Recipient Guarantor may terminate this Agreement with immediate effect by written notice to the Service Provider if an Insolvency Event occurs in relation to the Service Provider.
12.7 The Service Provider may terminate this Agreement with immediate effect by written notice to each Service Recipient if any Service Recipient commits a breach of any obligation under this Agreement that is material in the context of the Agreement as a whole (or a combination of obligations that in their entirety is material in the context of the Agreement as a whole) and:
(A) if the relevant breach is capable of remedy, the Service Recipient in breach has failed to remedy it within 45 calendar days of receipt of a notice giving full particulars of the breach and requiring it to be remedied; and
(B) the parties have, each acting reasonably and in good faith, exhausted the escalation procedure through the Governance Structure set out in Schedule 6 (Governance Model); and
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(C) the breach by the Service Recipient is continuing and is having a material adverse impact on any Material Service Provider Operations.
12.8 The Service Recipient Guarantor may terminate this Agreement with immediate effect by written notice to the Service Provider if the Service Provider commits a breach of any material obligation under this Agreement (or a combination of obligations that in their entirety is material) and:
(A) if the relevant breach is capable of remedy, the Service Provider has failed to remedy it within 45 calendar days of receipt of a notice giving full particulars of the breach and requiring it to be remedied; and
(B) the parties have, each acting reasonably and in good faith, exhausted the escalation procedure through the Governance Structure set out in Schedule 6 (Governance Model).
12.9 The Service Provider may terminate this Agreement with immediate effect by written notice to each Service Recipient if there is a change of Control of any Service Recipient (other than as part of any intragroup reorganisation of the Service Recipient Group, provided that the relevant Service Recipient remains under the control of the Service Recipient Guarantor).
13. Consequences of termination
13.1 On termination or expiry of a Service, part of a Service, or this Agreement (in accordance with its terms):
(A) subject to any rights or obligations that have accrued before termination, no party shall have any further obligation to the other party for that Service, part of the Service or this Agreement, as appropriate;
(B) any Related Service which is reliant on the terminated Service shall be amended, varied or terminated (as appropriate) at the same time, to the extent provided for, and in accordance with, the Migration Plan;
(C) any licences or sub-licences to the extent granted in relation to that Service, part of the Service or this Agreement, as appropriate, shall terminate with immediate effect, except for those licences referred to in clause 22.6 and those licences that also relate to any remaining Services, or parts of Services;
(D) except to the extent required for the performance of its remaining obligations under this Agreement, the Service Provider and the Relevant Service Recipient shall each (and shall each procure that its applicable Affiliates shall):
(i)
return or deliver to the other all records and documents in its possession or control or that of any of its
applicable Affiliates; and
(ii)
expunge all data from any system in its possession or control or that of any of its applicable Affiliates,
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CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
in each case containing Confidential Information of the other (or its applicable Affiliates), or, at that other's direction, shall destroy it, and certify that the destruction has taken place. The party returning, expunging or destroying the Confidential Information may retain a copy of the Confidential Information for the purposes of, and so long as required by, any Applicable Laws, court or Regulator or its internal compliance procedures, and copies of any computer records and files containing any Confidential Information that have been created pursuant to automatic archiving and back-up procedures; and
(E) the Relevant Service Recipient shall pay all amounts accrued for the Relevant Charges and other work performed in relation to that Service, part of the Service or the Agreement, as appropriate, before termination that have not already been paid in accordance with clause 10 (Invoicing and payment).
13.2 On termination of a Service or part of a Service in accordance with the terms of this Agreement, the proportion of the total Relevant Charges payable under this Agreement relating to that Service or part Service shall no longer be payable by the Relevant Service Recipient. If such proportion is unclear to, or otherwise disputed by the Service Provider and the Relevant Service Recipient, the Service Provider and that Relevant Service Recipient shall immediately discuss and seek to agree in good faith, acting reasonably, a commensurate reduction in the total Relevant Charges to reflect the termination of the relevant Service or part Service. The parties have agreed, and attached as an Annex to Schedule 3 (Charges), a worked example of how Charges will reduce in such circumstances.
13.3 Termination or expiry of this Agreement shall not release the any party from any liability that has already accrued to the other party at termination or expiry.
13.4 The Surviving Provisions shall survive termination or expiry of this Agreement. If this Agreement is terminated or expires in respect of a Service or part of a Service (other than the last Service or part Service to expire or be terminated) then, unless the parties agree otherwise, the rest of this Agreement shall continue in force.
14. Representations and warranties
14.1 Each of the Service Provider, the Service Provider Guarantor and the Service Recipient Guarantor represents and warrants that it has obtained all corporate authorisations and all other governmental, statutory and regulatory consents, licenses, authorisations, waivers and exemptions required to empower it or they (as applicable) to enter into and perform its or their (as applicable) obligations under this Agreement (with the exception of the Authorisations).
14.2 The Service Provider Guarantor represents and warrants that the Service Recipients have obtained all corporate authorisations to empower them to enter into and perform their obligations under this Agreement.
14.3 Each party represents and warrants that it complies with Applicable Laws to the extent necessary to fulfil its obligations under this Agreement, including, in the case of the Service Provider, the provision of the Services in the territories referred to in Schedule 1 (Services) in accordance with the terms of this Agreement.
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CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
14.4 Save as otherwise stated in this Agreement, the Service Provider gives no representation, warranty or other term (whether express, implied, statutory or otherwise) as to the condition, quality, performance or fitness for purposes of the Services.
15. Limitation of liability
15.1 The liabilities of the Service Recipients under this Agreement are assumed severally by each of them in relation only to itself, and the liability of them in respect of any breach shall extend only to any loss or damage arising from its own breach provided that, where more than one of them is liable in respect of the same loss or damage, the relevant Service Recipients shall be jointly and severally liable for the total sum recoverable.
15.2 Subject to clauses 15.5 and 15.8, no party shall be liable to the other party or its Affiliates for any indirect or consequential loss or damage, in each case, whether in contract (including under any indemnity or warranty), tort (including negligence) or otherwise, that arise under or in connection with this Agreement.
15.3 The Service Provider shall not be liable to a Service Recipient or its Affiliates for any loss or damage, in each case, whether in contract (including under any indemnity or warranty), tort (including negligence) or otherwise, to the extent that the
Service Provider can demonstrate (to that Service Recipient's reasonable satisfaction) that such loss or damage is caused by an inability of a Third Party Supplier to continue providing the relevant service, support equipment, components or software, where such an inability is due to:
(A) an Insolvency Event occurring in respect of a Third Party Supplier; or
(B) the relevant Third Party Supplier being subject to circumstances which would constitute a Force Majeure Event (if the Service Provider were subject to such circumstances),
provided always that the Service Provider:
(C) has notified that Service Recipient in writing as soon as reasonably practicable of such Third Party Supplier inability and any other relevant circumstances; and
(D) has used all reasonable endeavours to mitigate the consequences of such Third Party Supplier inability and to continue performing its obligations under this Agreement, which shall include:
(i)
procuring an alternative supplier of such services, support, equipment, components or software (at no
Incremental Cost to any Service Recipient); and
(ii)
enforcing all contractual rights and claiming all contractual remedies against the Third Party Supplier in
respect of such inability, and where the Service Provider recovers any sum from the relevant Third Party
Supplier through the exercise of such rights, it shall pass to the relevant Service Recipients an equitable
share of that sum (representing the Cost incurred by the Service
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CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
Recipient Group as a proportion of the total Cost incurred by the Service Provider Group).
15.4 In the context of the Service Provider's obligation to pay Service Credits under Schedule 12 (Service Levels and Service Credits), the Service Provider shall not be liable to pay any Service Credits to a Service Recipient to the extent that the payment obligation arises as a direct result of a breach of this Agreement by that Service Recipient.
15.5 Notwithstanding clause 15.2, the right of a party (the "Claiming Party") to recover loss or damage arising under or in connection with this Agreement (whether in contract (including under any indemnity or warranty), tort (including
negligence), or otherwise) may include the right to recover the following, to the extent that such loss or damage is directly and demonstrably caused by the other party's breach of this Agreement:
(A) any direct loss of profits;
(B) the incremental costs and expenses reasonably incurred by the Claiming Party of remedying, or mitigating the impact of, a breach, including:
(i)
where the Claiming Party is a Service Recipient, implementing and performing workarounds following a
failure by the Service Provider to satisfy clause 3.1;
(ii)
the costs and expenses of reconstituting or reloading lost or corrupted data;
(iii) any amounts payable to any other supplier by the Claiming Party in respect of any action such other supplier is required to take to mitigate the effect of, or to resolve, a breach for which the other party is responsible;
(iv) procuring and implementing alternative or replacement services;
(v)
legal fees and consultancy costs, and costs of hardware, software and other equipment and materials; and
(vi) costs and expenses (including legal fees) incurred by the Claiming Party arising out of or in connection with any claim by any third party against the Claiming Party (including any of its customers); and
(C) any fines, levies or other amounts imposed on the Claiming Party by a Regulator or otherwise by Applicable Laws,
and the parties agree that this clause 15.5 should not be interpreted as a complete, exhaustive, code of what the parties agree is claimable.
15.6 [***]
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CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
15.7 Subject to clause 15.8, the aggregate amount of the liability of all Service Recipients and all other members of the Service Recipient Group under this Agreement (whether in contract (including under any indemnity or warranty), tort (including negligence), or otherwise) shall, together, not exceed 1 billion.
15.8 The exclusions and limitations in clauses 15.2, 15.6 and 15.7, shall not apply to:
(A) liability for death or personal injury caused by the relevant party's negligence;
(B) liability for fraud or fraudulent misrepresentation;
(C) liability for wilful misconduct;
(D) each Service Recipient's liability to pay the Relevant Charges; or
(E) any other liability that cannot be excluded by Applicable Laws.
15.9 A party bringing a Claim shall take all reasonable steps to avoid or mitigate the loss or damage to which the Claim relates.
15.10 Upon a party becoming aware of any claim, action or demand against it or any of its Affiliates by a third party that is reasonably likely to give rise to a claim against the other party under any indemnity in this Agreement:
(A) such party shall, as soon as reasonably practicable, give written notice thereof to the other party;
(B) such party shall provide such reasonable information and access during Working Hours to its (and any of its relevant Affiliates') personnel, premises, books, records and documents (including in electronic form but excluding access to legally privileged information or which would result in a breach of applicable law) to the other party, any Affiliate of the other party, and their professional advisors, as the other party may reasonably request in connection with such claim, action or demand;
(C) subject to other party indemnifying and holding harmless the first party against any liability, cost, damage or expense which may be reasonably incurred thereby, the other party shall be entitled, upon written notice to the first party, to take the sole conduct of such claims, actions or demands, provided that the other party;
(i)
consults with the first party prior to taking any material decision in relation to such conduct; and
(ii)
provides such information in relation to the conduct of such claims actions or demands as the first party
may reasonably request.
In connection with that, the first party and its Affiliates shall give or cause to be given to the other party all such assistance as it may reasonably require in avoiding,
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disputing, resisting, settling, compromising, defending or appealing any such claim, action or demand;
(D) neither the first party nor any of its Affiliates shall make any admission of liability, agreement, settlement or compromise with any third party in relation to any such claim, action or demand without the prior written consent of the other party, such consent not to be unreasonably withheld or delayed;
(E) the other party shall (after reasonable consultation with the first party) be entitled at any stage and at their absolute discretion to settle any such third party assessment or claim provided such settlement is without admission of any wrongdoing or liability and for the avoidance of doubt, the first party is indemnified pursuant to (C) above in relation to such settlement; and
(F) any failure by the first party to comply with the provisions of this clause 15.10 shall not prevent any claim by the first party or extinguish any liability of the other party under this Agreement but may be taken into account in calculating any such liability to the extent that the other party establishes that such liability is increased or is not reduced by such failure.
16. Losses of Affiliates
16.1 Subject to clause 15 (Limitation of liability), any losses that are suffered by the Affiliate(s) of the Service Provider Guarantor (including by the Service Provider) or by the Affiliate(s) of the Service Recipient Guarantor (including any Service Recipient) under, or in connection with, this Agreement shall be recoverable by the Service Provider Guarantor or the Service Recipient Guarantor (as applicable) (the "Contracting Party") against, in the case of the Service Provider Guarantor, the Service Recipient Guarantor or any Service Recipient, and, in the case of the Service Recipient Guarantor, the Service Provider or the Service Provider Guarantor, acting as agent on behalf of the Affiliate(s) of the Contracting Party, to the extent that those losses would be recoverable by the Contracting Party under this Agreement if the Contracting Party had suffered those losses.
16.2 Where a Claim cannot, under Applicable Laws, be made by the Contracting Party in its own name as agent for one or more Affiliates, then the Contracting Party shall use all reasonable endeavours to procure that the Claim is assigned to it by the relevant Affiliate(s). Where such assignment cannot, under Applicable Laws, be effected, the parties agree that the relevant Affiliate(s) may bring the Claim directly in its own name(s).
16.3 The parties agree, for themselves and as agent for their respective Affiliates, that no party shall raise any defence or objection to any Claim on the basis that it is made: (A) in the name of the Contracting Party acting as agent for an Affiliate under clause 16.1; or (B) by an Affiliate that is not party to this Agreement under clause 16.2.
16.4 Any Contracting Party seeking to recover Costs on behalf of an Affiliate shall procure that the relevant Affiliate immediately discontinues and withdraws any Claim against the other party or its Affiliates that is made other than in the name of the Contracting Party, in accordance with this clause.
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CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
17. Damages not an adequate remedy
Notwithstanding any express remedies provided under this Agreement and without prejudice to any other right or remedy which any party may have, each party acknowledges and agrees that damages alone may not be an adequate remedy for any breach by it of the provisions of this Agreement, so that in the event of a breach or anticipated breach of such provisions, the remedies of injunction and/or an order for specific performance may in appropriate circumstances be available.
18. Record keeping and audit
18.1 Each party shall, and each Service Recipient shall procure that each member of its Group shall:
(A) maintain and keep reasonable records relating to the performance of its obligations under this Agreement; and
(B) on receipt of reasonable notice and subject to restrictions imposed by antitrust law, provide the other party with copies of these records as reasonably required to enable it to monitor the performance by the first party of its obligations under this Agreement.
18.2 The Service Provider shall, and shall procure that its Affiliates shall, provide the Service Recipient Group with such support as the Service Recipient Group may reasonably request in respect of the adoption of the `IFRS 15' and `IFRS 16' reporting standards.
18.3 Each party acknowledges that the other party and/or members of the Service Provider Group or Service Recipient Group, as relevant, and/or their respective auditors, may need access after the Effective Date to employees and officers of that party who have knowledge of accounting and Tax records and information pertaining to events occurring prior to the Effective Date. Accordingly, each party agrees that it shall, subject to any restrictions imposed by antitrust law and the confidentiality obligations provided under clause 39 (Confidentiality), allow the other party and its respective officers, employees, agents, auditors and representatives, to contact such employees and officers during Working Hours from time to time for purpose of obtaining and discussing such records and information.
18.4 The costs of accessing, inspecting, reviewing and the making of copies (including in each case by any auditor) under this clause 18 shall be borne by the requesting party, save that, where any such access, inspection and/or review reveals:
(A) any material breach of the Agreement by the other party, that other party shall bear all such costs; and/or
(B) where the requesting party is a Service Recipient:
(i)
any failure by the Service Provider to satisfy clause 3.1; and/or
(ii)
any underpayment of any Service Credits,
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the Service Provider shall bear all such costs.
18.5 The Service Provider shall, on reasonable prior written notice and within its audit cycles, allow each Service Recipient, for the purposes set out in clause 18.6, to access the records maintained in accordance with clause 18.1.
18.6 The purposes referred to in clause 18.5 are:
(A) to inspect the records;
(B) to assess whether the Service Provider is performing its obligations in this Agreement; and
(C) to comply with the requirements of any Regulator.
18.7 Any audit shall be subject to the following limitations:
(A) the Service Recipients may collectively conduct a maximum of one audit in any twelve month period under this clause 18 (Record keeping and audit), save that a total of one further audit may be conducted by one or more Service Recipients in any such period where a Service Recipient believes, acting reasonably and in good faith, that the Service Provider has failed to comply with a material obligations under this Agreement and such audit would enable the Service Recipients to determine the extent of such failure;
(B) audits shall be conducted during Working Hours and at a time reasonably acceptable to the Service Provider;
(C) audits shall be subject to the restrictions set out in the Post-Completion Information Flows Protocol, clause 39 (Confidentiality) and any restrictions under Applicable Law;
(D) audits and access to systems may be supervised by the Service Provider and the Service Provider may impose suitable access restrictions to the extent reasonably required by the Service Provider to ensure access does not compromise the security of the systems or cause any detriment to their operation;
(E) information which relates to members of the Service Provider Group and Confidential Information which relates to third parties may be redacted or restricted, in each case to the extent that such information is not reasonably required in the proper performance or conduct of the audit;
(F) all audit results and records disclosed solely as a result of the audit shall, to the extent they comprise the Service Provider's Confidential Information, be held in accordance with and subject to the terms of this Agreement; and
(G) each Service Recipient or any auditor conducting any such audit shall at all times comply with any and all reasonable security and confidentiality requirements of the
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Service Provider with respect to the audit and each Service Recipient shall ensure that its auditors are bound by appropriate confidentiality obligations.
19. Governance and dispute resolution
General
Each party shall comply with its obligations, and shall have the rights provided to it, under Schedule 6 (Governance Model).
20. Change management
Each party shall comply with its obligations, and shall have the rights provided to it, under Schedule 7 (Change Management Procedure).
21. Access and information
21.1 Without prejudice to the cost allocation principles set out in clause 18.4, each party shall, and each Service Recipient shall procure that the members of its Group shall:
(A) subject to this clause 21.1:
(i)
give employees or contractors of the other party's Group access to the facilities, premises or personnel of
their own Group during Working Hours; and
(ii)
promptly provide information (including copies of documents and data) and other assistance to the other
party,
in each case, to the extent reasonably required by the other party to provide or receive the Services and to the extent not restricted by Applicable Laws;
(B) take reasonable steps to ensure the safety of any employees or contractors of the other party's Group who visit their premises;
(C) not use, or attempt to access or interfere with, any IT Systems or data used by the other party's Group, unless authorised to do so under this Agreement or the Migration Plan;
(D) ensure that its employees or contractors, or those of its Affiliates, shall at all times when visiting the premises of the other party's Group:
(i)
carry visible and suitable means of identification;
(ii) comply with any security and other reasonable directions given by the other party's Group relating to conduct on their premises; and
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(iii) not interfere with the employees or contractors of the other party's Group, or the business operations of the other party's Group;
(E) ensure that any dealings with the other party's Group's customers and Third Party Suppliers which are required in connection with this Agreement are conducted in a professional and competent manner;
(F) without prejudice to clause 24.2 (Information technology risk control), promptly notify the other party of any event or circumstance (including failure on its part to comply with its obligations under this Agreement) which it reasonably believes may have a material adverse impact on the other party's ability to provide or receive the Services or otherwise comply with its obligations under this Agreement; and
(G) respond promptly to requests by the other party's Group for any information, documentation, guidance and assistance required (in its opinion) to provide or receive the Services.
21.2 Each party's obligations under clause 21.1 shall be limited to the extent applicable to the provision or receipt of the Services (as relevant) under this Agreement.
21.3 Each party shall indemnify and hold harmless the other party and any of its Affiliates on demand against all direct and demonstrable Costs that result from a breach of clauses 21.1(C) or 21.1(D)(iii).
22. Intellectual Property
22.1 Nothing in this Agreement shall:
(A) unless explicitly otherwise provided, operate to transfer or otherwise grant to any party any right or interest in any other party's or any third party's Intellectual Property Rights; or
(B) affect the ownership by any party or its licensors of Intellectual Property Rights existing at the Completion Date.
22.2 The parties acknowledge that, as between the parties, all Intellectual Property Rights licensed by, created or developed by, or on behalf of, the Service Provider Group in connection with this Agreement either vest, or shall vest, in the Service Provider or its licensors automatically. To the extent that these Intellectual Property Rights vest in a member of the Service Recipient Group, the relevant Service Recipient hereby transfers (including by present assignment of future rights), or the Service Recipients shall procure that the relevant member of the Service Recipient Group shall transfer, those Intellectual Property Rights (free from all third party rights) to the Service Provider or, at the Service Provider's request, to another member of the Service Provider Group.
22.3 The Service Provider hereby grants, and/or shall procure that its relevant Affiliates shall grant, to each Service Recipient and its Group, a royalty-free (except to the extent set out in Schedule 3 (Charges)) non-exclusive, non-transferable (except as set out in clause 25
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(Regulatory matters)), non-sub-licensable licence, in each case to use the Intellectual Property Rights owned by the Service Provider (and its Affiliates) and used by the Service Recipient to which the licence is being granted and its Group in the receipt of the Services during the Service Term only to the extent necessary for, and for the sole purpose of, that Service Recipient's receipt of the Services during the Service Term and only in the territory in which such Services are received in accordance with this Agreement.
22.4 Each Service Recipient hereby grants, and shall procure that its relevant Affiliates shall grant, to the Service Provider and its Group a royalty-free, non-exclusive, non-transferable (except as set out in clause 25 (Regulatory matters)), non-sublicensable licence, in each case to use the Intellectual Property Rights owned by that Service Recipient (and its Affiliates) and used by the Service Provider in, or necessary for, the provision of the Services during the Service Term only to the extent necessary for, and for the sole purpose of, the Service Provider's provision of the Services in accordance with the terms of this Agreement during the Service Term.
22.5 No party shall (and shall not permit any of its Affiliates to) use, access, make copies of, disclose, lend, rent, assign, sublicense, distribute, transfer, modify, alter, make derivative works of, directly or indirectly reverse engineer, decompile, disassemble, or in any way redevelop (in object code or source code format) any software or technology licensed to it under clause 22.3 or clause 22.4 (as applicable) or otherwise provided directly or indirectly by third parties in connection with this Agreement or any Intellectual Property Rights in any of the foregoing, except to the extent expressly approved in writing by the other party or permitted by Applicable Laws, and shall comply with all licence terms and other obligations and restrictions notified to it by the other party in writing in connection with such software and/or technology.
22.6 The Service Provider shall grant, and/or shall procure the grant of, with effect from the date of termination or expiry of each Service (in whole or in part), to each Service Recipient and its Group, in each case such licences of Intellectual Property Rights in all materials, assets and other deliverables developed, provided or otherwise made available to the Service Recipient to which the licence is being granted and/or any member of its Group during the relevant Service Term in respect of the relevant Service or part Service, as applicable, as are agreed in accordance with Schedule 11 (Migration, Integration and Development Projects).
22.7 Subject to clause 22.8, each party shall indemnify and hold harmless the other party and its Group on demand against all direct and demonstrable Costs that result from any claim brought against that other party or member of its Group that use of any services, materials, assets or deliverables provided by the first party pursuant to this Agreement infringe the Intellectual Property Rights of any third party.
22.8 The indemnity in clause 22.7 shall not apply to any claim to the extent that it arises as a result of or in connection with the use of:
(A) any Intellectual Property Rights owned by any member of the indemnified party's Group;
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(B) any materials, assets or deliverables provided to the indemnifying party by or on behalf of the indemnified party's Group pursuant to this Agreement;
(C) any modification made by, or on behalf of, any member of the indemnified party's Group to any materials provided by the indemnifying party (save to the extent such modification is made in accordance with specific instructions of the indemnifying party);
(D) any materials provided by the indemnifying party:
(i)
in combination with other materials not so provided, to the extent the alleged infringement relates to use of
the other materials not so provided;
(ii)
in a manner that is inconsistent with the indemnifying party's reasonable instructions provided to the
indemnified party in respect of the use of those materials, provided that such instructions have been
provided in advance and compliance with them does not have any adverse impact on the provision or
receipt of the Services or would require any member of the indemnified party's Group to incur any
additional cost or expense unless the indemnified party agreed to incur such cost or expense at the time the
instructions were provided.
23. Data protection and personnel transfers
Data protection
23.1 Each party shall comply with its obligations, and shall have the rights provided to it, under Schedule 8 (Data Protection).
Personnel transfers
23.2 The parties agree that the Regulations are not intended to apply to the provision or cessation of any Services and/or any of the other matters contemplated by this Agreement or its termination. All employees of any member of the Service Provider Group and of any Service Provider Personnel engaged in the provision of Services shall remain the employees of such member of the Service Provider Group or such Service Provider Personnel. Each party shall avoid taking steps (without the consent of the other party) which shall make it more likely that the Regulations will apply in respect of the provision or termination of the Services under this Agreement and the Service Provider Group.
23.3 In the event that any employee of any member of the Service Provider Group becomes by operation of the Regulations an employee of any member of the Service Recipient Group or any Replacement Service Provider by virtue of his providing or ceasing to provide Services under this Agreement (unless the employee becomes by operation of the Regulations an
employee of a member of the Service Recipient Group or any Replacement Service Provider as a result of the lawful termination of this Agreement by the Service Provider in accordance with clauses 10.7(B), 12.5 or 12.7):
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(A) The Service Provider Group, in consultation with the relevant member of the Service Recipient Group or Replacement Service Provider, will, within 14 days of being so requested by the relevant member of the Service Recipient Group or Replacement Service Provider, make to that person an offer in writing to employ him under a new contract of employment, to take effect upon the release or termination referred to in clause 23.3(B), identical in all respects to that person's contract of employment immediately before that release or termination date and providing for a full recognition and continuation of that person's tenure with the Service Provider Group. If requested by the Service Recipient Group or the Replacement Service Provider, the Service Provider undertakes to assist the Service Recipient Group or Replacement Service Provider in the conclusion of a mutual consent termination with that person.
(B) Once that offer has been made (or after the expiry of 14 days after it has been requested), the relevant member of the Service Recipient Group or Replacement Service Provider may issue a notice of termination of the employment of or enter into a mutual termination agreement with the person concerned and, provided that such notice of termination is made within 3 months of the date the Service Recipient Group or Replacement Service Provider became aware of the alleged transfer of employment, the Service Provider Group will indemnify the Service Recipient Group or any Replacement Service Provider against the reasonable direct costs of that person's employment up to and including its termination or release, or triggered by such termination or release, and against any other liability arising under the Regulations.
24. Information technology risk control
24.1 To prevent unauthorised access or damage to, or use or alteration of, any IT Systems and related Confidential Information (or other data), each party shall:
(A) comply with Applicable Laws;
(B) co-operate in any reasonable security arrangements that the other party considers necessary to prevent that party, or any unauthorised third party, from accessing an IT System or data in a manner prohibited by this Agreement;
(C) report to the other party any threats to the IT Systems arising as a result of any access granted under this Agreement that it, its Affiliates and/or, if applicable, its sub-contractors become aware of; and
(D) ensure that all users of the other party's (or its Affiliates') IT Systems undertake a controlled authorisation process before IT System access is granted, and remove access privileges in a timely manner once they are redundant.
24.2 If a party detects, or is informed of, a breach of its protective measures that actually has, will (or is likely to) have a material impact on the Services or the integrity of any Confidential Information (or other data) of the other party on any IT Systems, it shall, at all times in accordance with Applicable Laws:
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(A) immediately act to prevent or mitigate the effects of the breach;
(B) report the breach and any further information required under Applicable Laws to the other party without undue delay after detection; and
(C) take the necessary steps to ensure that the breach does not re-occur and report those steps to the other party.
24.3 Each party shall use all reasonable endeavours to ensure that it does not introduce into the other party's IT Systems any software virus or other malicious code that might affect the Services or corrupt any data or applications on those IT Systems.
24.4 Each party may, on the provision of reasonable notice, suspend the other party's (and, where relevant, its Affiliates' and subcontractors') access to the IT Systems used by that party if, in that party's reasonable opinion, acting in good faith, the integrity or security of the IT Systems, or any data stored on them, is being or is likely to be jeopardised by the activities of the other party. The parties acknowledge and agree that such right of suspension shall be without prejudice to the Service Provider's obligation to provide or procure the provision of, to the extent practicable, the Services in accordance with the terms of this Agreement.
25. Regulatory matters
25.1 Each party shall obtain and maintain in force all regulatory licences, consents and permits and all approvals of Regulators that are necessary in connection with this Agreement ("Regulatory Approvals").
25.2 Each party shall notify the other party of any material regulatory or compliance issue arising under this Agreement of which it becomes aware, and the parties shall co-operate in good faith to resolve those issues.
25.3 If a party is contacted by a Regulator in connection with this Agreement, it shall, if permitted by Applicable Law and by the Regulator to do so:
(A) promptly notify the other party and co-ordinate any interaction with the Regulator; and
(B) keep the other party informed of all discussions and correspondence with the Regulator,
unless it reasonably determines that to do so would result in a breach of Applicable Laws.
25.4 Subject always to each party's obligation to comply with a Required Change (as further described in Schedule 7 (Change Management Procedure) no party shall be required to perform any obligation under this Agreement or to allow, take or omit to take any action that it reasonably believes would result in the breach of any Applicable Laws or the breach of any term of any Regulatory Approval.
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CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
26. Force majeure
26.1 Subject to clause 26.2, no party shall be liable for any failure to perform, or delay in performing, any of its obligations under this Agreement to the extent that the failure or delay results from a Force Majeure Event, provided that it:
(A) could not have avoided such circumstances by taking precautions which it ought reasonably to have taken in accordance with good industry practice, including compliance with any of its business continuity and disaster recovery processes;
(B) informs the other party as soon as possible of the event, giving full details in writing of its expected effect or duration; and
(C) takes all reasonable steps to: (i) resume performance of its obligations as soon as possible; and (ii) mitigate the effects of the unforeseen event (including by way of implementing workarounds and temporary fixes), and demonstrates this to the other party on request.
26.2 The time for performing an obligation under this Agreement that has been affected by any Force Majeure Event shall be extended by a period equivalent to the delay caused by the Force Majeure Event.
26.3 For the avoidance of doubt, where the Service Provider fails to perform any of its obligations under this Agreement by reason of a Force Majeure Event, the Service Recipients shall have no liability to the Service Provider in respect of any Charges which would otherwise have been payable but for such failure.
27. Not used
28. Legal relationship
The parties acknowledge and agree that:
(A) nothing in this Agreement and no action taken by the parties under this Agreement shall constitute a partnership, association or other co-operative entity between any of the parties or constitute any party the agent of any other party for any purpose; and
(B) no fiduciary relationship or fiduciary duties shall exist between the parties arising out of or in connection with this Agreement.
29. No set-off
Save as otherwise provided in this Agreement, each party shall pay all sums due under this Agreement without set-off or counterclaim.
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CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
30. Remedies and waivers
30.1 Except as expressly provided in this Agreement, no delay or omission by any party to this Agreement in exercising any right, power or remedy provided by law or under this Agreement or any other documents referred to in it shall:
(A) affect that right, power or remedy; or
(B) operate as a waiver of it.
30.2 Except as expressly provided in this Agreement, the single or partial exercise of any right, power or remedy provided by law or under this Agreement shall not, unless otherwise expressly stated, preclude any other or further exercise of it or the exercise of any other right, power or remedy.
31. No double recovery
31.1 A party shall be entitled to make more than one claim under this Agreement arising out of the same subject matter, fact, event or circumstance but shall not be entitled to recover under this Agreement otherwise more than once in respect of the same loss (or, in the case of a Service Recipient, in respect of any loss to the extent that loss has been recovered by another Service Recipient on that first Service Recipient's behalf), regardless of whether more than one claim arises in respect of it.
31.2 Where a Service Credit is payable or due to a Service Recipient under this Agreement:
(A) each party agrees that each such sum is fair and reasonable in all the circumstances and does not impose a detriment on the Service Provider which is disproportionate to the legitimate interests of the members of the Service Recipient Group in the enforcement of any obligation to pay the Service Credit;
(B) the Service Provider hereby waives any defence as to the validity of any obligation to pay the Service Credit; and
(C) the Service Recipient agrees that any sum paid or payable to it by way of a Service Credit shall reduce the amount (if any) recoverable pursuant to any claim under this Agreement arising out of the same subject matter, fact, event or circumstance giving rise to the Service Credit by the amount of that Service Credit, so as to avoid any doublerecovery of the sum paid.
32. Assignment and sub-contracting
32.1 No party shall assign, transfer, purport to assign or transfer, or grant any interest in, or declare any trust over, all or any part of the benefit of, or its rights or benefits under this Agreement (together with any causes of action arising in connection with any of them) without the other party's prior written approval, save that, subject to clause 2.4, each Service Recipient may without the Service Provider's approval assign the benefit of this Agreement (in
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whole or in part) to any of its Affiliates. Any purported assignment in contravention of this clause 32 (Assignment and subcontracting) shall be void.
32.2 The Service Provider shall have no right to sub-contract or delegate the performance of any of its obligations under this Agreement, except as set out in clause 32.3.
32.3 The Service Provider may sub-contract the performance of any part (but not the whole) of the Services:
(A) to: (i) an Affiliate of the Service Provider; or (ii) a third party that is party to an agreement with a member of the Service Provider Group, in each case that provided the equivalent service (or part service) to the Business of the Target Companies in the relevant territories immediately prior to the Effective Date (with the names of such other third parties being set out in Schedule 10 (Third Party Suppliers)); or
(B) to any other third party, provided that the Relevant Service Recipients have given their prior written consent to such sub-contracting, not to be unreasonably withheld or delayed. The parties acknowledge and agree that it shall only be reasonable for the Relevant Service Recipients to withhold consent to a proposed sub-contractor where they
reasonably believe that sub-contracting the performance of the relevant part of the Services to that proposed subcontractor would have an adverse effect on the provision of that part of the Services.
32.4 The Service Provider shall not be relieved of any of its obligations under this Agreement by entering into any sub-contract for, or delegating, the performance of any part of the Services. The Service Provider shall be liable to each Service Recipient in respect of all acts or omissions of any sub-contractors for which, if such acts or omissions were of the Service Provider, the Service Provider would be liable to that Service Recipient.
33. Further assurance
At its own cost, each party and its Affiliates shall do anything that is required by Applicable Law or that may be reasonably necessary or desirable to implement and give effect to this Agreement.
34. Conflict with other agreements
34.1 If there is any conflict between the terms of this Agreement and any other agreement, the terms of this Agreement shall prevail (as between the parties to this Agreement and as between any members of their respective Groups) to the extent of the inconsistency unless:
(A) that other agreement is the SPA, in which case the SPA shall override this Agreement to the extent of the inconsistency; or
(B) the other agreement expressly states that it overrides this Agreement in the relevant respect, and the parties:
(i)
are also parties to that other agreement; or
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CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
(ii)
expressly agree in writing that the other agreement overrides this Agreement in that respect.
34.2 Unless expressly stated otherwise in this Agreement, in the event of any conflict or inconsistency between:
(A) any of clauses 1 to 46 and the Schedules to this Agreement, the relevant clause of this Agreement shall prevail;
(B) Schedule 3 (Charges) or the summary in Part A of Schedule 1 (Services) and any other Service Schedule, Schedule 3 (Charges) or the summary in Part A of Schedule 1 (Services) (as applicable) shall prevail; or
(C) Schedule 3 (Charges) and the summary in Part A of Schedule 1 (Services), Schedule 3 (Charges) shall prevail.
35. Entire agreement
35.1 For the purposes of this clause 35:
(A) "Pre-contractual Statement" means any draft, agreement, undertaking, representation, warranty, promise, assurance or arrangement of any nature whatsoever, whether or not in writing, relating to the subject matter of this Agreement or any Share Purchase Document made or given by any person at any time prior to this Agreement becoming legally binding; and
(B) "Connected Persons" means (in relation to a party) the officers, employees, agents and advisers of that party or of the Service Provider Group or Service Recipient Group (as applicable).
35.2 This Agreement and the other Share Purchase Documents constitute the whole and only agreement between the parties relating to the subject matter of this Agreement.
35.3 Each party agrees that, except in the case of fraud:
(A) in entering into this Agreement it is not relying upon any Pre-contractual Statement which is not repeated in this Agreement or any Share Purchase Document;
(B) no party shall have any right of action against any other party to this Agreement arising out of or in connection with any Pre-contractual Statement except to the extent that it is repeated in this Agreement or any Share Purchase Document;
(C) any terms or conditions implied by law in any jurisdiction are excluded to the fullest extent permitted by law or, if incapable of exclusion, any right or remedies in relation to them are irrevocably waived;
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CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
(D) the only right or remedy of any party in relation to any provision of this Agreement or any other Share Purchase Document shall be for breach of this Agreement or the relevant Share Purchase Document; and
(E) except for any liability in respect of a breach of this Agreement or any other Share Purchase Document, no party (or any of its Connected Persons) shall owe any duty of care or have any liability in tort or otherwise to any other party (or its respective Connected Persons) in relation to this Agreement or any ancillary matter.
35.4 Each of the parties agrees to the terms of this clause 35 on its own behalf and as agent for each of its Connected Persons.
36. Variation
Subject to clause 20 (Change management), this Agreement may only be varied in writing signed by each of the parties. For the avoidance of doubt, the parties need not obtain the consent of the Service Recipient Guarantor or Service Provider Guarantor to any variations to this Agreement (other than in respect of the guarantee in clause 46 (Guarantee)).
37. Notices
37.1 A notice under this Agreement shall only be effective if it is in writing and in English. Notice by email shall be effective, provided that such notice is also served in physical hard copy delivered to the relevant address (in which case notice shall be deemed to be duly given by the relevant email and not the physical hard copy).
37.2 Notices under this Agreement shall be sent to the relevant contracting entity at its addresses for the attention of the individuals set out below:
Entity and titles of individuals
Service Provider
Address
Sevcenkova 36, 85101 Bratislava, Slovakia
E-mail addresses
mmiller@upc.sk
For the attention of:
With a copy to:
With a copy to:
For the attention of: The Deputy GC
With a copy to:
Liberty Global plc, Griffin House, 161
jwolfe@libertyglobal.com and
Hammersmith Road, London, W6 8BS, United sgrujev@libertyglobal.com
Kingdom
Justin Wolfe and Suzana Grujev
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CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
CZ Service Recipient
For the attention of:
Tereza Rychtarikova
Nusle, Závisova 502/5, Postal Code 14000, Czech Republic
jan.klouda@vodafone.com milan.zika@vodafone.com
With a copy to Vodafone Czech Republic:
With a copy to:
With a copy to:
Head of Legal: Jan Klouda CTO: Milan Zíka
Vodafone Czech Republic a.s, námstí Junkových 2 155 00 Praha 5 Czech Republic
jan.klouda@vodafone.com milan.zika@vodafone.com
DE Service Recipient
For the attention of:
Unitymedia NRW GmbH, Aachener Str. 746750, 50933 Köln
Unitymedia NRW GmbH, General Counsel (Lars Ziegenhagen)
Lars.Ziegenhagen@unitymedia.de
With a copy to Vodafone Germany: With a copy to:
With a copy to:
Head of Legal: Christoph Clement CTO: Gerhard Mack
Vodafone GmbH Ferdinand-Braun-Platz 1 40549, Düsseldorf
Christoph.Clement@vodafone.com Gerhard.Mack@vodafone.com
HU Service Recipient
For the attention of: Reka Szalai
1095 Budapest, Soroksári út 30-34, Haller Gardens Building, Hungary
reka.szalai@upc.hu
With a copy to Vodafone Hungary: With a copy to:
With a copy to:
Head of legal: Attila Csikai CTO: Ahmed El Sayed
Vodafone Magyarország ZRT. Lechner Ödön fasor 6. Budapest 1096
attila.csikai@vodafone.com ahmed.yehia@vodafone.com
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CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
RO Service Recipient
For the attention of:
The General Counsel
Bucharest, District 1, 62D Nordului Road, Romania
Irina.varlan@upc.ro
With a copy to Vodafone Romania: With a copy to:
With a copy to:
Director Legal & External Affairs: Livia Dumitrescu CTO: Catalin Buliga
Vodafone Romania S.A Vodafone HQ - Globalworth Tower, Strada Barbu Vacarescu 201, sector 2 Bucuresti, Romania
livia.dumitrescu@vodafone.com catalin.buliga@vodafone.com
Service Provider Guarantor
For the attention of: The Deputy GC
Liberty Global plc, Griffin House, 161
jevans@libertyglobal.com
Hammersmith Road, London, W6 8BS, United
Kingdom
With a copy to:
With a copy to: Justin Wolfe and Suzana Grujev
jwolfe@libertyglobal.com and sgrujev@libertyglobal.com
Service Provider Guarantor
For the attention of:
Company Secretary and General Counsel: Rosemary Martin
Vodafone Group Plc One Kingdom Street Paddington Central London W2 6BY
rosemary.martin@vodafone.com
With a copy to:
With a copy to:
With a copy to:
Group Technology Director: Madalina Suceveanu
Vodafone Group Plc One Kingdom Street Paddington Central London W2 6BY
madalina.suceveanu@vodafone.com
provided that the relevant entity may change its notice details on giving notice to the other contracting entities of the change in accordance with this clause 37.
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CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
37.3 Any notice given under this Agreement shall, in the absence of earlier receipt, be deemed to have been duly given to all individuals set out against the name of the relevant entity in clause 37.2 above, as follows:
(A) if delivered personally, on delivery;
(B) if sent by first class inland post, two clear Business Days after the date of posting; and
(C) if set by airmail, six clear Business Days after the date of posting; and
(D) if sent by e-mail, when sent.
37.4 Any notice given under this Agreement outside Working Hours in the place to which it is addressed shall be deemed not to have been given until the start of the next period of Working Hours in such place.
37.5 Each entity that is party to this Agreement shall notify the other entities that are party to this Agreement in writing of any change to its details in clause 37.2 above from time to time.
38. Language
38.1 Meetings of the parties, including any meetings of bodies or committees in accordance with Schedule 6 (Governance Model), shall be conducted in English. Notices (including accompanying papers) and minutes of such meetings shall be prepared in English.
38.2 Each other document in connection with this agreement shall be in English or accompanied by an English translation. The receiving party shall be entitled to assume the accuracy of and rely upon any English translation of any document, notice or other communication given or delivered to it pursuant to this clause 38.2.
39. Confidentiality
39.1 In connection with the provision or receipt of the Services, the parties agree to comply with the terms of the Post-Completion Information Flows Protocol. The parties agree that the Post Completion Information Flows Protocol shall include any restrictions and covenants necessary to ensure compliance with applicable antitrust laws.
39.2 For the purposes of this clause 39, "Confidential Information" means:
(A) information relating to the provisions of, and negotiations leading to, this Agreement;
(B) (in relation to the obligations of the Service Provider) any information received or held by the Service Provider (or any of its Representatives) relating to the members of the Service Recipient Group or any of their respective Affiliates; and
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CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
(C) (in relation to the obligations of each Service Recipient) any information received or held by that Service Recipient (or any of its Representatives) relating to the Service Provider Group,
and includes written information and information transferred or obtained orally, visually, electronically or by any other means and any information which the party has determined from information it has received including any forecasts or projections.
39.3 During the Term and for a period of three years following termination or expiry of this Agreement, each party and their respective Representatives shall maintain Confidential Information in confidence and not disclose Confidential Information to any person except: (i) as permitted by this clause 39; or (ii) in the case of a disclosure by the Service Provider, as any Service Recipient approve(s) in writing and, in the case of a disclosure by any Service Recipient, as the Service Provider approves in writing.
39.4 Subject to clause 39.5 below, clause 39.3 shall not prevent disclosure by a party or any of its Representatives to the extent it can demonstrate that:
(A) disclosure is required by Applicable Laws or by any stock exchange or Governmental Entity (including any Tax Authority) having applicable jurisdiction provided that, except in connection with disclosure to a Tax Authority, the disclosing party shall first use its reasonable endeavours (subject to compliance with Applicable Laws or the requirements of any stock exchange or Governmental Entity) to inform the other party of its intention to disclose such information and take into account the reasonable comments of the other party;
(B) disclosure is made to a Tax Authority in connection with the proper management of the Tax affairs of the disclosing party (including, in the case of the Service Provider, a member of the Service Provider Group and, in the case of the Service Recipients, a member of the Service Recipient Group);
(C) disclosure is of Confidential Information which was lawfully in the possession of that party or any of its Representatives (in either case as evidenced by written records) without any obligation of secrecy before its being received or held;
(D) disclosure is of Confidential Information which has previously become publicly available other than through that party's action or failure to act (or that of its Representatives); or
(E) disclosure is required for the purpose of any arbitral or judicial proceedings arising out of this Agreement (or any other Share Purchase Document).
39.5 For a period of three years following termination of this Agreement, each party undertakes that it (and its Representatives) shall:
(A) only disclose Confidential Information as permitted by this clause 39 if it is reasonably required and after having informed the recipient of the Confidential Information of its confidential nature; and
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CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
(B) adequately protect Confidential Information against disclosure, distribution, theft, damage, loss and other unauthorised access and shall exercise in relation to the Confidential Information no lesser security measures and degree of care than it (and its Representatives) actually exercises in relation to its own confidential information.
39.6 If this Agreement terminates, each party shall as soon as practicable on request by the other party:
(A) return to the other party all Confidential Information which that other party (or its Representatives) has provided to the party (or its Representatives) without keeping any copies thereof;
(B) destroy all information or other documents derived from such Confidential Information;
(C) so far as it is practicable to do so, expunge such Confidential Information from any computer, word processor or other device; and
(D) if the other party so requests in writing, confirm in writing to the other party that the requirements of this clause 39 have been complied with,
provided however that the requirement for the destruction or return of Confidential Information does not apply to Confidential Information:
(E) stored electronically pursuant to an existing routine data back-up exercise on servers or back-up sources so long as it is deleted from local hard drives and no attempt is made to recover from such servers or back-up sources;
(F) which is required to be retained for the purposes of complying with any binding regulation or Applicable Laws (including the rules of a professional body or stock exchange); or
(G) to the extent that the Confidential Information is contained in the minutes or supporting papers relating to any board or committee meeting of the respective party (or its respective Representatives),
provided that the provisions of this clause 39 shall continue to apply to any Confidential Information retained in accordance with this clause 39 for so long as such information is kept.
40. Costs and expenses
40.1 Except as otherwise stated in this Agreement, each party shall pay its own costs and expenses in relation to the negotiation and any ancillary matters and the preparation, execution and carrying into effect of this Agreement (excluding any costs or expenses associated with the performance of each party's obligations under this Agreement). The costs of any notary incurred as a result of any matter provided in this Agreement shall be borne by the Service Provider.
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CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
41. Counterparts
This Agreement may be executed in any number of counterparts, and by on separate counterparts, but shall not be effective until each of the Service Provider, each Service Recipient, the Service Provider Guarantor and the Service Recipient Guarantor has executed at least one counterpart. Each counterpart shall constitute an original of this Agreement, but all the counterparts shall together constitute but one and the same instrument. Delivery of a counterpart of this Agreement by e-mail attachment shall be an effective mode of delivery.
42. Invalidity
If at any time any provision of this Agreement is or becomes illegal, invalid or unenforceable in any respect under the law of any jurisdiction, that shall not affect or impair:
(A) the legality, validity or enforceability in that jurisdiction of any other provision of this Agreement; or
(B) the legality, validity or enforceability under the law of any other jurisdiction of that or any other provision of this Agreement,
and the parties, and to the extent necessary, the Service Provider Guarantor and Service Recipient Guarantor, shall use all reasonable efforts to replace it with a valid and enforceable substitute provision the effect of which is as close to its intended effect as possible.
43. No third party enforcement
Except as expressly stipulated in this Agreement, in particular the grant of rights to the members of the Service Recipient Group under clause 16.2, this Agreement shall not grant any right to persons who are not a party to this Agreement. To the extent this Agreement expressly grants any right to third parties, the parties to this Agreement shall be permitted to change or exclude such rights at any time without the consent of the relevant third party.
44. Choice of governing law
This Agreement is to be governed by and construed in accordance with English law without reference to or application of any conflict of laws rules, the application of which might result in the application of the laws of any other jurisdiction. Any matter, claim or dispute arising out of or in connection with this Agreement, whether contractual or non-contractual, is to be governed by and determined in accordance with English law.
45. Arbitration
All disputes, controversies or claims arising out of or in connection with this Agreement, including the breach, termination or invalidity thereof, that cannot be resolved in accordance with Schedule 6 (Governance Model) shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce by three arbitrators appointed in accordance with the said Rules. The place of arbitration shall be London and the language to be used in the arbitral proceedings shall be English.
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CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
46. Guarantee
Service Recipient Guarantee
46.1 In consideration of the Service Recipients and the Service Provider entering into this Agreement (as applicable), the Service Recipient Guarantor hereby unconditionally and irrevocably guarantees to the Service Provider the due and punctual payment by each Service Recipient of all amounts payable by it under or pursuant to this Agreement and as an independent and primary obligation agrees to indemnify and hold harmless the Service Provider (as applicable) against all liabilities, losses, proceedings, claims, damages, costs and expenses that it may suffer or incur as a result of any failure or delay by any Service Recipient to pay any amount when due. The liability of the Service Recipient Guarantor under this Agreement or any other document referred to in it shall not be prejudiced released, diminished or otherwise adversely affected by:
(A) any variation or waiver of the terms of this Agreement (whether or not agreed by the Service Recipient Guarantor);
(B) any forbearance, neglect or delay in seeking performance of the obligations hereby imposed or any granting of time for such performance; or
(C) any other act, event, neglect or omission (whether or not known to the Service Recipient Guarantor) which would or might (but for this clause) operate to impair or discharge such liability or afford the Service Recipient Guarantor any legal or equitable defence.
46.2 If and whenever any Service Recipient defaults for any reason whatsoever on the payment of any amount payable by it under or pursuant to this Agreement, the Service Recipient Guarantor shall forthwith upon demand unconditionally pay (or procure payment of) the amount in regard to which such default has been made in the manner prescribed by this Agreement and so that the same benefits shall be conferred on the Service Provider as would have been received if such payment had been duly and promptly made by that Service Recipient.
46.3 The guarantee given by the Service Recipient Guarantor is to be a continuing guarantee and accordingly is to remain in force until all the payment obligations of each Service Recipient shall have been performed or satisfied. The guarantee is in addition to, without limiting and not in substitution for, any rights or security which the Service Provider may now or after the date of this Agreement have or hold for the performance and observance of the obligations, commitments and undertakings of each Service Recipient under or in connection with this Agreement.
46.4 As a separate and independent stipulation, the Service Recipient Guarantor agrees that any payment obligation of any Service Recipient which may not be enforceable against or recoverable from that Service Recipient by reason of any legal limitation, disability or incapacity on or of that Service Recipient or any fact or circumstance (other than any relevant limitation imposed by this Agreement) shall nevertheless be enforceable against and recoverable from the Service Recipient Guarantor as though the same had been incurred by
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the Service Recipient Guarantor and the Service Recipient Guarantor was the sole or principal obligor in respect thereof and shall be performed or paid by the Service Recipient Guarantor on demand.
Service Provider Guarantee
46.5 Subject to clause 46.6, in consideration of each Service Recipient paying the Relevant Charges on the terms set out in this Agreement, the Service Provider Guarantor hereby:
(A) unconditionally and irrevocably guarantees to the members of the Service Recipient Group the due and punctual performance and observance by the Service Provider of all of its obligations, commitments and undertakings under or pursuant to this Agreement or any other document referred to in it;
(B) covenants with and undertakes to the members of the Service Recipient Group fully to perform and observe (or procure the performance and observance of) all of the Service Provider's obligations, commitments and undertakings under or pursuant to this Agreement in the manner prescribed this Agreement and so that the same benefits shall be conferred on the members of the Service Recipient Group as would have been received if such obligation commitment or undertaking had been duly performed and satisfied by the Service Provider, or any other document referred to in it if the Service Provider shall fail in any respect to perform and observe (or procure the performance and observance of) the same; and
(C) (without prejudice to the generality of the foregoing) covenants with and undertakes to the members of the Service Recipient Group to pay and make good to the members of the Service Recipient Group (and to fully indemnify the members of the Service Recipient Group from and against) any losses, costs, claims, damages, proceedings and expenses occasioned to or suffered by the members of the Service Recipient Group arising directly or indirectly out of or by reason of any default of the Service Provider in respect of its obligations, commitments and undertakings under or pursuant to this Agreement or any other document referred to in it.
46.6 The Service Provider Guarantor's aggregate liability under this clause 46 (Guarantee) shall be no greater than the Service Provider's aggregate liability under this Agreement.
46.7 The liability of the Service Provider Guarantor under this Agreement or any other document referred to in it shall not be prejudiced, released, diminished or otherwise adversely affected by:
(A) any variation or waiver of the terms of this Agreement or any other document referred to in it (whether or not agreed by the Service Provider Guarantor);
(B) any forbearance, neglect or delay in seeking performance of the obligations hereby imposed or any granting of time for such performance; or
(C) any other act, event, neglect or omission (whether or not known to the Service Provider Guarantor) which would or might (but for this clause) operate to impair or
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CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
discharge such liability or afford the Service Provider Guarantor any legal or equitable defence.
46.8 The members of the Service Recipient Group shall not be obliged before enforcing any of their rights or remedies conferred upon them by this clause 46 or by law:
(A) to grant any time or indulgence to the Service Provider;
(B) to take any legal proceedings or action or obtain any judgment against the Service Provider in any court;
(C) to make or file any claim in any bankruptcy, liquidation, winding-up or dissolution of the Service Provider; or
(D) to pursue or exhaust any other right or remedy against the Service Provider,
and the liabilities of the Service Provider Guarantor under this Agreement may be enforced irrespective of whether any legal proceedings are being or have been taken against the Service Provider.
46.9 This guarantee is to be a continuing guarantee and accordingly is to remain in force until all the obligations of the Service Provider shall have been performed or satisfied in their entirety and notwithstanding the winding-up, liquidation, dissolution or other incapacity of the Service Provider or any change in the status, control or ownership of the Service Provider. This guarantee is in addition to, without limiting and not in substitution for, any rights or security which the members of the Service Recipient Group may now or after the date of this Agreement have or hold for the performance and observance of the obligations, commitments and undertakings of the Service Provider under or in connection with this Agreement or any other document referred to in it.
46.10
As a separate and independent stipulation, the Service Provider Guarantor agrees that any obligation, commitment or undertaking expressed to be undertaken by the Service Provider (including, without limitation, any moneys expressed to be payable under this Agreement) which may not be enforceable against or recoverable from the Service Provider by reason of any legal limitation, disability or incapacity on or of the Service Provider or any fact or circumstance (other than any limitation imposed by this Agreement) shall nevertheless be enforceable against and recoverable from the Service Provider Guarantor as though the same had been incurred by the Service Provider Guarantor and the Service Provider Guarantor were the sole or principal obligor in respect thereof and shall be performed or paid by the Service Provider Guarantor on demand.
46.11
If the Service Provider Guarantor transfers all or a substantial part of its assets to another body, the Service Provider Guarantor shall notify the Service Recipients including reasonable details of such transfer and the transferee, and the Service
Provider Guarantor shall procure that such transferee enters into a deed of guarantee in favour of the Service Recipients with the effect of guaranteeing the obligations of the Service Provider on the terms set out in this clause 46 (Guarantee) as if it were the Service Provider Guarantor under this Agreement. For
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CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED INFORMATION HAS BEEN MARKED WITH "[***]".
the avoidance of doubt, this shall not prejudice or limit the guarantee given by the Service Provider Guarantor under this clause 46 (Guarantee) in any way.
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Exhibit 4.37
N. di rep.
N. di racc.
Atto di fusione
REPUBBLICA ITALIANA
L'anno 2020 (duemilaventi)
il giorno 25 (venticinque)
del mese di marzo
in Milano, via Agnello n. 18.
Avanti a me Carlo Marchetti, notaio in Milano, iscritto presso il Collegio Notarile di Milano, sono comparsi i signori:
1.) Rigoni Federico, nato a Roma il 10 giugno 1966, residente a Milano, via Settembrini n. 30, il quale dichiara di intervenire al presente atto in qualità di procuratore speciale e, come tale, in rappresentanza della società per azioni quotata denominata:
Infrastrutture Wireless Italiane S.p.A.,
in forma abbreviata Inwit S.p.A.
con sede legale in Milano, via Gaetano Negri n. 1, capitale sociale Euro 600.000.000,00 i.v., codice fiscale e numero di iscrizione presso il Registro delle Imprese di Milano-Monza-Brianza-Lodi: 08936640963, iscritta al R.E.A. di Milano al n. 2057238 (di seguito anche "INWIT" o la "Società Incorporante"),
munito degli occorrenti poteri per quanto infra in forza di
1
procura speciale in data 23 marzo 2020 a rogito notaio Nicola Atlante n. 61018 di rep., che in copia conforme all'originale redatta su supporto analogico si allega al presente atto sotto "A", in esecuzione della delibera dell'assemblea straordinaria in data 19 dicembre 2019 di cui al verbale a mio rogito in data 24 dicembre 2019 n. 15468/8310 di rep., registrato all'Agenzia delle Entrate di Milano DP I UT APSR in data 20 gennaio 2020 al n. 3702 serie 1T, delibera iscritta al competente Registro delle Imprese in data 27 dicembre 2019;
2.) Corda Antonio, nato a Padova il 9 aprile 1973, domiciliato per la carica in Milano, via Lorenteggio n. 240, il quale dichiara di intervenire al presente atto in qualità di Consigliere di Amministrazione e, come tale, in rappresentanza organica della società a responsabilità limitata denominata:
Vodafone Towers S.r.l.,
con sede legale in Milano, via Lorenteggio n. 240, capitale sociale euro 10.000,00 i.v., codice fiscale e numero di iscrizione presso il Registro delle Imprese di Milano-Monza-Brianza-Lodi: 10934930966, R.E.A. n. 2567451 (la "Società Incorporanda" o la "Società Incorporata"),
in esecuzione della delibera dell'assemblea in data 19 dicembre 2019 di cui al verbale a mio rogito in pari data n. 15446/8297 di rep., registrato all'Agenzia delle Entrate di
2
Milano DP I UT APSR in data 15 gennaio 2020 al n. 2275 serie 1T, delibera iscritta presso il competente Registro delle Imprese in data 27 dicembre 2019.
(Le due deliberazioni assembleari sopra citate, di seguito anche, collettivamente, le "Deliberazioni").
E, quindi, detti comparenti, della cui identità personale io notaio sono certo, nelle sopraindicate rispettive rappresentanze,
premesso che:
a) gli organi amministrativi delle società di cui sopra ebbero a predisporre un progetto di fusione (di seguito, anche, il "Progetto"), per l'incorporazione di Vodafone Towers S.r.l. in Inwit S.p.A.;
b) la fusione si colloca nell'ambito del noto e complessivo progetto volto alla integrazione dei rami aziendali "Tower" di Vodafone Italia S.p.A., da un lato, e Telecom Italia S.p.A., dall'altro lato, con la precisazione che il ramo di Vodafone Italia S.p.A. è stato assegnato per scissione, con efficacia dalla data del 4 dicembre 2019, alla Società Incorporanda, e il ramo di Telecom S.p.A. è stato da quest'ultima conferito nel 2015 nella controllata Inwit S.p.A.;
c) il Progetto è stato redatto su base volontaria anche ai sensi dell'art. 2501-bis c.c., che disciplina le operazioni di
3
fusione con indebitamento, per i motivi illustrati nel Progetto medesimo e nelle relazioni degli organi amministrativi;
d) il Progetto, contenente quanto previsto dalla legge, è stato iscritto in data 18 novembre 2019 presso il comune competente Registro delle Imprese di Milano-Monza-Brianza-Lodi per entrambe le società partecipanti alla fusione;
e) con riferimento a quanto disposto dall'art. 2501-bis c.c.:
x nel Progetto, ed in particolare al punto 10.) del medesimo, sono state indicate le risorse finanziarie previste per il soddisfacimento delle obbligazioni della società risultante dalla fusione;
x tali indicazioni sono state oggetto dell'attestazione (allegata alle precitate Deliberazioni), richiesta dall'art. 2501-bis, quarto comma, c.c., da parte della società di revisione BDO Italia S.p.A., esperto comune indipendente designato con provvedimento del Tribunale di Milano in data 2 ottobre 2019 ai sensi del combinato disposto del predetto art. 2501-bis, quarto comma, c.c. e dell'art. 2501-sexies, terzo comma, c.c.;
x PricewaterhouseCoopers S.p.A., società incaricata della revisione legale dei conti della Società Incorporante, ha elaborato la relazione allegata sotto la lettera "A" al
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Progetto;
x nelle rispettive relazioni degli amministratori ai sensi degli artt. 2501-quinquies e 2501-bis c.c. (anch'esse allegate alle precitate Deliberazioni) sono state indicate le ragioni che giustificano l'operazione di fusione ed è stato inserito un piano economico e finanziario con indicazione della fonte delle risorse finanziarie e la descrizione degli obiettivi che si intendono raggiungere;
f) con le Deliberazioni, le assemblee delle società partecipanti alla fusione hanno deliberato di approvare il Progetto, come sopra debitamente iscritto ed allegato ai verbali delle delibere stesse (qui nuovamente allegato sotto "B");
g) le Deliberazioni sono state iscritte in data 27 dicembre 2019 presso il Registro delle Imprese di Milano-Monza-Brianza-Lodi per entrambe le società partecipanti alla fusione;
h) contro le Deliberazioni, come i comparenti mi dichiarano e confermano, non risultano presentate opposizioni nel termine di cui all'art. 2503, primo comma, c.c. e, pertanto, si può addivenire alla attuazione della fusione;
premesso infine che:
i) come anche previsto nel Progetto, con atto in mia autentica in data odierna n.
di rep., in corso di
5
registrazione, Vodafone Europe B.V. ha ceduto a Inwit la proprietà di una quota di partecipazione pari al 43,4% del capitale sociale di Vodafone Towers S.r.l., subordinatamente alla iscrizione del presente atto di fusione presso il competente Registro delle Imprese entro il 30 marzo 2020, con effetto dalle ore 00:00 del 31 marzo 2020 ovvero, qualora l'iscrizione del presente atto di fusione presso il competente Registro delle Imprese avvenga in data 31 marzo 2020 o successiva data, dalle ore 00:00 del primo giorno lavorativo successivo alla predetta iscrizione (la "Cessione di Quota"). A seguito della Cessione di Quota, la cui efficacia è immediatamente antecedente alla efficacia della presente fusione, il capitale della Società Incorporanda sarà così ripartito:
x quota di capitale di euro 4.340,00, rappresentativa del 43,4% del capitale sociale della Società Incorporanda, sarà di titolarità di Inwit;
x quota di capitale di euro 5.660,00, rappresentativa del 56,6% del capitale sociale della Società Incorporanda, sarà di titolarità Vodafone Europe B.V.
Tutto quanto sopra premesso
i comparenti, in attuazione delle Deliberazioni del 19 (diciannove) dicembre 2019 (duemiladiciannove), nelle
6
sopraindicate rappresentanze, convengono e stipulano quanto segue. Attuazione della fusione
1.) (Attuazione della fusione) - In attuazione del progetto di fusione (come detto, qui nuovamente allegato in copia sotto "B"), approvato come sopra indicato, le società Inwit S.p.A. e Vodafone Towers S.r.l. si dichiarano e si riconoscono fuse mediante incorporazione
nella Inwit S.p.A.
con sede legale in Milano, via Gaetano Negri n. 1 della
Vodafone Towers S.r.l. con sede legale in Milano, via Lorenteggio n. 240
2.) (Annullamento delle quote rappresentanti l'intero capitale sociale della Società Incorporata) - La fusione viene attuata secondo le modalità tutte indicate nel relativo Progetto e, così, in particolare, con annullamento delle quote rappresentanti l'intero capitale sociale della Società Incorporata e contestuale assegnazione in concambio in favore di Vodafone Europe B.V. di n. 360.200.000 (trecentosessantamilioniduecentomila) azioni di nuova emissione della Società Incorporante secondo il rapporto di
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cambio di cui al punto 3 del Progetto, non provvedendosi invece ad alcun concambio per la quota oggetto della Cessione di Quota, in quanto la stessa alla data di efficacia della fusione sarà di titolarità della Società Incorporante.
3.) (Effetti verso i terzi, contabili e fiscali) - Conformemente alle previsioni del progetto di fusione:
a) gli effetti della presente fusione nei confronti dei terzi, ferme le iscrizioni del presente atto prescritte dall'art. 2504-bis del codice civile presso il competente ufficio del Registro delle Imprese, decorreranno (i) dalle ore 00:01 (zerozero virgola zerouno) del giorno 31 (trentuno) marzo 2020(duemilaventi) se l'atto di fusione sarà iscritto presso i competenti Registri delle Imprese entro il 30 (trenta) marzo 2020 (duemilaventi); oppure (ii) se l'atto di fusione sarà iscritto presso i competenti Registri delle Imprese il 31 (trentuno) marzo 2020 (duemilaventi) o in qualunque altra data successiva, il primo giorno lavorativo successivo alla predetta iscrizione, alle ore 00:01 (zerozero virgola zerouno), e dunque, in ogni caso, dal momento successivo rispetto alla efficacia della Cessione di Quota;
b) ai fini contabili e fiscali e ai sensi dell'articolo 172 comma 9 del DPR 22/12/1986 n. 917 (TUIR), le operazioni della Società
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Incorporata saranno imputate al bilancio della Società Incorporante a far data dalla data di efficacia verso i terzi della presente fusione, e quindi dall'istante successivo rispetto all'inizio della predetta data.
4.) (Cessazione degli organi della Società Incorporata) - Dal momento di efficacia verso i terzi della presente fusione (di cui sopra al precedente punto 3.) lettera a) del presente atto), pertanto, cesseranno con la Società Incorporata anche i relativi organi sociali, ferma comunque la validità ed efficacia di ogni atto, anche di disposizione, sino a tal momento compiuto in nome e per conto della predetta Società Incorporata, anche se posto in essere successivamente alle Deliberazioni.
Successione e prosecuzione dei rapporti
5.) (Prosecuzione nei rapporti da parte della Società Incorporante)
(a) In conseguenza della fusione la Società Incorporante assume di pieno diritto, ai sensi dell'art. 2504-bis del codice civile, tutti i beni immobili, mobili, materiali ed immateriali, valori mobiliari e strumenti finanziari, e quote di partecipazione in società ed enti, situazioni possessorie e di fatto, diritti, interessi legittimi, qualifiche, aspettative, privilegi, crediti, ragioni, azioni, contanti e valori bollati, valuta estera, attività in genere, anche in
9
pendenza e formazione, della Società Incorporata in proprietà, titolarità, disponibilità anche a titolo di deposito per gestione o in fideiussione, od ai quali sia legittimata, verso qualsiasi soggetto anche pubblico e quale che sia la fonte ed anche se acquisiti o sorti in data posteriore alle Deliberazioni.
Tutti i beni e i diritti si intendono assunti dalla Società Incorporante con ogni pertinenza od accessorio, con ogni relativo privilegio e garanzia, anche reale (che manterranno validità e grado esistente), diritto, onere, servitù, vincolo.
(b) Sempre in conseguenza della fusione, e corrispondentemente, la Società Incorporante assume ipso iure tutte le passività, debiti, obblighi, impegni, oneri, gravami, garanzie concesse, posizioni passive in genere della Società Incorporata.
(c) La Società Incorporante prosegue altresì in tutti i rapporti giuridici, convenzioni, polizze, depositi, contratti e negozi definitivi o preliminari, compresi i patti parasociali sottoscritti (altresì compresi, ovviamente, anzitutto i contratti e rapporti attivi e passivi inerenti all'esercizio delle proprie attività, i contratti di lavoro, di assicurazione, di locazione, anche finanziaria, di utenza, ecc.), anche in pendenza e in formazione, in corso presso la
10
Società Incorporata.
(d) La prosecuzione da parte della Società Incorporante dei rapporti contrattuali intrattenuti dalla Società Incorporata ha pure per oggetto i mandati o procure in essere ed i correlati poteri, anche di rappresentanza, conferiti.
(e) La Società Incorporante subentra pure nelle controversie riferibili alla Società Incorporata, di qualunque natura e ovunque radicate, nei confronti di qualsiasi soggetto e quale che sia la loro fonte, ed anche se acquisiti o sorti in data posteriore alle deliberazioni proseguendo pertanto in tutti i relativi rapporti processuali.
(f) La Società Incorporante, ancora, subentra ipso iure, anche nei confronti di enti pubblici territoriali e di pubbliche amministrazioni centrali e periferiche in tutte le concessioni, registrazioni, autorizzazioni, permessi, licenze, esoneri, agevolazioni, riconoscimenti di cui siano titolari la Società Incorporata o che siano in corso di rilascio od istruttoria, con ogni conseguente diritto, interesse, aspettativa.
(g) Tutto quanto sopra di guisa che la Società Incorporante possa senz'altro e senza soluzione di continuità proseguire in ogni attività, gestione, situazione, rapporto, come se fin dall'origine di spettanza e riferibili alla Società
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Incorporante.
Il tutto, beninteso, sia per l'Italia sia per l'estero. Rimane peraltro in facoltà della Società Incorporante procedere, ai soli fini dell'espletamento delle correlate formalità pubblicitarie, ad uno o più atti di identificazione di beni, diritti, posizioni contrattuali compresi nel patrimonio della Società Incorporata.
6.) (Particolari cespiti del patrimonio della Società
Incorporata) - Si dà, inoltre, espressamente atto, anche ai fini delle formalità necessarie, che, nel compendio del patrimonio della Società Incorporata in cui la Società Incorporante subentra, vi sono in particolare i beni mobili registrati di cui all'elenco allegato sotto "C".
7.) (Personale) Con l'efficacia della presente fusione, il personale della Società Incorporata identificato con i numeri di matricola di cui all'elenco allegato sotto "D", proseguirà il proprio rapporto di lavoro con la Società Incorporante.
Viene dato atto che le procedure sindacali sono state espletate nei termini previsti dalla normativa vigente.
8.) (Autorizzazioni) - Viene sin d'ora espressamente autorizzata l'esecuzione da parte dei rappresentanti ed incaricati della Società Incorporante di tutti gli eventuali occorrenti trapassi, annotamenti, trascrizioni, volture,
12
intavolazioni, cambi di intestazione a favore della Società Incorporante, presso ogni Ufficio del Territorio, Ufficio Tavolare, Pubblico Registro in genere, libro, ufficio, pubblico e privato, italiano od estero, dipendenti dal presente atto o da successivi atti integrativi o identificativi per qualsiasi bene, anche immobile, diritto, anche reale, licenza, permesso, concessione, autorizzazione, registrazione, contratto, domanda, valore mobiliare e per quanto altro già intestato o riferibile alla Società Incorporata.
Il tutto con esonero dei competenti signori Conservatori o preposti ai rispettivi Uffici da ogni loro responsabilità per l'esecuzione del presente atto.
Statuto della Società Incorporante
9.) (Statuto) - Si dà atto che il testo di statuto sociale della Società Incorporante, con efficacia dal giorno di efficacia della presente fusione, è quello che reca le modifiche approvate nel contesto della citata delibera della Società Incorporante (come aggiornato dal Consiglio di Amministrazione della Società Incorporante in data 6 febbraio 2020 per adeguarlo alle nuove disposizioni di legge in materia di equilibrio tra i generi), e che al presente si allega sotto "E".
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Spese
10.) (Spese) - Spese e tasse del presente atto sono a carico della Società Incorporante.
* * *
Ai soli fini dell'iscrizione del presente atto nel repertorio degli atti notarili, si precisa che il capitale sociale della Società Incorporata è pari ad euro 10.000 (diecimila).
Del presente ho dato lettura ai comparenti che lo approvano e con me sottoscrivono alle ore degli allegati.
omessa per loro dispensa la lettura
Consta di * fogli scritti con mezzi meccanici da persona di mia fiducia e di mio pugno completati per pagine * e della * sin qui.
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Speciale ventitre del mese di marzo ::.... c: c: :c: =.; .:..: :: =---"-"=-=- ; ---'-'-----------+-fiscale e numero di delle Imprese di in data 24 dicembre 2019 n. 15468/831.0 di iscrit·to al ro delle in data 27 dicembre 2019. Detto della cui· identita io notaio 1 Procura ITALIANJ\. REPUBBLICA L'anno duemilaventi il (23 marzo 2020) in Romaale di Porta Pia 121 ------t-avanti a me dr. Nicola Atlante. notaio in Roma iscritto al---··--collegia notarile di Roma e comparso il GiOvanni nato .a Udine il 12 1959 domiciliate Negri n. in qualita la carica in Milano, via Gaetan.o di AmministratoreDelegate e cometalein entanza de"lla societaazioni denominata: "INFRASTRUTTURE WIRELESS ITALIANE S J\. " con sede in Milanovia Gaetano sociale Euro 600.000.000 00 i.v. 1 codice iscrizioneressoilRegistro Mi1ano-Monza-Brianza-Lodi 08936640963iscritta al R.E.A. di Milano al n. 2057238anche "INWIT" inecuzione della delibera dell' assemblea dei soci in data 19 dicernbre 2019 di cui al verbale a rogito notaio Carlo Bixio il 5 Ottobre '1987 1 ·I 10934930966, R.E.A. n. 2567451. Ai finidi cui sopra vengono conferit1,. semprein via fdisgiunta 1 tutti ipiU ampi poteri per 1' incaiico :conferito1 ivi compresi quelli di: --,.--·stipularee sottoscrivere l 1 atto di fusione con --------------fa col tel di stabilirne altresi la data di efficacia ai sensi dell 1 articolo 2504-bis,seCondo conuna,. del .codiceciVile., --ccC.'i'·, =--------+-.. ·-·-·-..---··---.... :·,,_...,. data chepotra essereanchesuccessivaall 1.nltima · delle ·:·. iscrizion.i previste dall' art. 2504 del codice civile da 2 procura speciale ai signori: :Romail10giugno1966, Federico Rigoni nat·oa residente in Via L. Settemb:Cini n. 30,20124 Milano, CF. RGNFRC66Hl0H501F; 'Milano,CF. in Via Nino RVIDGI72S25E507Y; Ben detta Fe:r:rarese 1 nata a VOghera domicilia·ta in Milano, via Agnello · --18, affinch 1 disgiuntamente fra -lora, in nome e per ··canto di incorporazione in INWIT di Vodafone Towers S_. r .1. 1 con sede ·.... sociale
attuarsi Secondo le modalita tutte di cui al are,con o_gni eventuale allegate nonche quant'altro stesso allo dellacomolete connesso-fini esecuzione con"'" ':' uc a1 0 rattere fiscale; "' occorrendo acconsentire a far effettuare volture, -----\ ' -A,'Y ' n ·. della fusione, con ogni e qualsiasi potere a tal fine necessaria ed opportune, nessuno escluso ed eccettuato; Olll'!. re ad ogni eventuale successive ,;ono, precisazione, identificazione di cespiti di fusione; quant'altro ritenuto necessaria od opportuno conformit3. deliberaziOne assunta alla dall 'a·ssemblea promess dalla citata deliberaassemble -r di ·. ' I ... fusione ·. dell'operazione/ ·.. - inserire nell'atto di fusione tutti i patti1 termini e · condizioni-ritenutiV}'j,'_VC cu,d,compresieffettiattivie ._ lpassivi connessi 0 derivanti da,ll'operazione; - rilasciare dichiarazioni necessaric oct . '' anche di . ca - assumere 'hhl;' ,; ed ;· - . ""< trascrizioni ed annotamenti su pubblici regi"'tri, l-''v '"_U C in ·. a tutto richiesto per la '1 ,,. . ' .,4.Lii c zione & 0h,:'\""T 1\1'1'' - q: al_ iasi natura ,; tati da INWIT p attodi I ; rapporti er effet e ' della to . -r, mi rP in straordinaria del 19 dicembre 2019. Con a di rate et valido e sotto gli obblighi 1ooe1i. . 3
lettura al . I Ce co io dr. Nicola Not io in Roma, iscritto al: 0 Notarile · di che la presente copia. informatica conforme allt e cartaceo,, ai sensi dell'art·. · 22 D.Lgs. 7 · marzo· 2005n. 82, compostadi 4 facciate ROma, 23 .marzo 2020 File' · talmente dal Notaio Nicola Atl mte· 4 Di at to", · dattiloscritto da persona fin e tato di miosu tre e quarta firma ho dato
Certificazione di conformita di docnmento analogico a documento informatico (art. 23 d. lgs. 7 marzo 2005, n. 82) Certifico io sottoscritto Carlo Marchetti, notaio in Milano, iscritto presso il Collegio Notarile di Milano, che Ia presente copia redatta su supporto analogico composta di numero due mezzi fogli e conforme al documento firmato digitalmente dal notaio Nicola Atlante in data 23 marzo 2020 la validita del cui certificato di finna digitale e stata da me accertata mediante il sistema di verificazione e-Sign ove risulta la vigenza sino al 4 settembre 2020. Copia formata ai sensi dell' art. 57-bis L.N. Milano, 25 (venticinque) marzo 2020 (duemilaventi)
ALL' INWii 0 PROGETTO DI FUSIONE PER INCORPORAZIONE DI VODAFONETOWERS S.R.L. IN INWIT-INFRASTRUTTURE WIRELESS lTALIANE S.P.A. (Ar SENSl DEGL! ARTT. 2501-TERE 2501-llll' COD.Crv.) (J o,, //: C2 Genera!
JJ consiglto eli amministra,ione eli INWIT - INF10\STRUJ7URE WIRELESS ITALIANE S.P.l\. ("Inwit" o lR "Sc.cieta Incorporantc") c i! consiglio d.i atnm.0..i ;tr ziorre di Vudafone Tmvers S.rJ. (<VOD lowers" o la «Societa Incorporanda" e, insiemc con lnwir, le "Societa Partedpanti alla Fusione") hanno redarto e approvato il presentc progetto di fusione ai scnsi dell'art. 2501-tercod. civ. e, su base volontaria come meglio ptecisato it!Jin, ai sensi del1'-att. 2501-bi.l cod. ci\·. (il "Progetto di Fusione") relativo alla fusione per i.ncorporazione di Vodafone Towers in lnwit Oa ''Fusione'} Premessa In data 26 luglio 2019, lnwit e il suo socio di controllo TIM S.p.A., societa per azioni eli diritto italiano, con :-.ede legale in Via Gaetano Negrin. ·t, lvlilano, iscritta al Registro delle lmprese dl1v1ilano, fvlonza, Brianza e Lodi al n. 00488410010, con capitale sociale di Euro J 1.677.002.855,10 rapprescntato da azioni quotatc sul I'vkrcato Telematico Azionali.o ("M'TA") organizzato e gestito da Bors-a Italiana S.p.A. (' TIM'), da una pa1te, e Vodafone Italia S.p.A. socied. per azioni di d.iritto italiano, con scde legale in Via Jervis n. 13, Ivrea, iscritta al Registro delle lmprese eli Torino al n. 93026890017, con capitale sociale eli Euro 2.305.099.887,30 ("VOD") e i1 suo socio unico Vodafone Europe B.V., societa eli diritto olandesc, con scde ldeeglall'Oe pinerRazoitotenredaem. s,uRb.o.irvdliunmataQ. u..aVdrOapn(tt7ia3zilonnCeaspieslolestaaannzidae, illjfstseerla, liisac,rintetallealsiac.gCucanmticatatceilviitCao: m>;m(i)crIcaiocoosbtintduczisoenreudni.V80O4D79T4o2w97er(s"VdaOpDarEteUd"i)V, pOreDviEaUapepnrtorvoaizli.o)n1eadgeoistrois2p0et1ti9'ceodnscifgfclittdivi aammemnitneirscttaalzizioznacta, hcoannnaattsooitntodscartait.to1 wag1oasctoco2r0d1o9qeuaisdntoit(roil i''nFrdaamrnew5 oargkosAtogr2e0e1m9e;nlta")scdiisssciiopnleinpaanrtzeial'loepeerparzoioponrezuionnitaalreiaelaivVe1O1Dteaaxdaorgttg. e2t5to06Iaccoodm. cbiivn.aezicoonnesedgeulleentteerraissdeigVnOazDiocnoenaqfuaevUoreedditIVnwOiDt dTaoawtteurasrsdieml readmiaondte·a(iz)ielandcaosdtlitVuzOioDnededdiiVcaOtoDltTWoawtteirvsi,ta(iei)libcsousctrcuezsisoinvae eScgiessstioionnee(dceolmleeiinlf!rfalwsttduettfui.rne.iptaa)ssdivi Ve (OeDs. taofrariv,oprielodniiVcOpaDli)Tcowdceirssiestienmfiinteec(inioi)l.porgeivciiavcoolnticaludsoiosnpeitadteellaattcroezmzpatraurveenddiiptarodperlilcataPdaritoecpiepraaztioornieildliteIlveffioono.riaanmzaobinilVe Oe aDltTrcoawtterresz(zcaotumree pireifrrc'amdiettfeinnittiar)a,dJiaoF, tueslieocnoem, nuoninccahzeioinl ip,etrefleezviiosnioanmi ecndtoemdiitutennatipsaettgnnearlsihriapdiinod(uilst"tRiaalemmo eTdoiawnetres"1)aesnottxtoosiclr3i1zidoinceemttabrIenw20it1,9V; OIaDcoemTpIMravdeenieClitoandtriauttni aCpoamrtmedcprcaizailoinceopmaeriilr[uji4u3d,4ef%inidtei l(lc"a'Opiptelrcaszoiocniael"e)e(lcifVr..OilDcoTmowuneircsaOtoas"taPmarpteacpipuabzbiloicnactoeldi Ma Iinnworiat ninzadiantaV2O6D!ugTloiow2er0s1"9) ,trdalsVpoOnDibEilUe s, uinl sqiuroaliintatedmi ev/e'n}d\.i"t\o\r·,ei,nc\YInitw.iti,t,sienzigounaeli't?ivt lde.diiatlcqCuoimreunntekaQtiaS"tCamompcplr'aeveilncdoitma"u')n,iiclacto:usitamttopasaptuibsboltitcoastcoridttaoVtrOa DV,OnDellEaUmeedIneswirint aaldlaatDa,actalisdpeol nCibloilseinsgu1(csoimtoeinitt{e(rroaedt e)1H.'.\oV.i\t\a'.)Yeocdhaefoanvcd.ite,fsfeetztioonl'iest"aCnote;mimmrinrae!dli)a.tIalmFernatmeeawntoerckeAdegnrteeermi epnetttroegaol 1vaereifdiciasctsipi ldienlalqauDinadta.i,dlieEaftftiicvaictaiap(rcoopmedeeiuntfircahedeofif.unnitzai)o,nsaulbioarldlainraetaalmizeznatzeioanlepde.etlflc'Ozipoenraamzieonnteo, dgelilli'umlptiemganiisrcerciizpiotoncei ddeellll1eAStotcoidctiiFPuastitoenciep(acnotimaelJial!Ffhu:sdioenfienietele) nceolncdoizmiopneite·natecuRielg'cissetrcouzdieollnee Irnp.rcsc; la Fusione-il cui Acto di Fusione sad sottoscritto alia Data del Closing e che p:rodurri isuoi cffetti alia data (e ora) che sad fissata - in accordo con Borsa Italiana tenendo conto che a tale data le Nuove Azioni Inwit (come itifra defll1ite) dovranno essere quotate su IYITA-entro (ii) (iii) (iv) I // -'. C2 GenN I
iquindici giorm successivi all'ultuna iscri:-::ione ddl'i\ tto di Fusion e. nd comperentc Regisu·o delle Imprese (la "Data di Efficacia"), cm1 contcstuale annnll:Hncnto della pattccipazione residua detenuta da VOD EU in VOD Towers in seguito all'efficacia Jella CompmvenditH e ammissione a quotazione su I\1TA delle n. 360.200.000 azioni ordinarLe, senza valore nomina1e, calcohte in base al Rapporto di Cambio (come infrr' dcfinito), che saranno ctnesse da Inwit e atttibuitc a VOD E"C", alia Data eli Efficacia 0e '1Nuove Azioni InwiC), a frontc dell'annuUamcnto della pru:tecip:azione residua detenuta da VOD EU in VOD Towers; Fadozione del Nuovo Statuto (come in}'(l ddinim) soggctto alrapprovazione da parte dell'Assen1blca straordinaria di Inw-it e che sara efficace a deconerc dalla Data di Efficacia; l'eventuale distcibuzione di riserve che P Assembka dei soci di Inwit sara chiamata a deliberarc contestualmcnte alla Fusione, a favore dci socl di In--w'it posl Fusione, ai termini e alle condizionl previsti dal Framework .Agreement Qa «Distribuzionc Straordinaria"). Pet· maggioti infonnazioni suJla Distcibuzione Straordin ria. si rinvia aHa relazione illust.rativa del Consiglio eli Amministrazione d.i Inv.--it redatta ai sensi dell'articolo 125-ter del D.Lgs. 24 febbraio 1998, n. 58, come successivamcnte modificato e intcgrato sCenTsU1Fd"e)lleadret.ll2'a5r0t.17-J2Cd:-e<l UR'c.fgcooladm. cetnvto.;El'mapipttreonvtai zinioc.nocnfdoeml lnlot3voalSlotastcuhtoem(ca,onm. 3e idJe?lIii'Ar.'lldccgfain.tioto3dAi _arlmR:eitg-o:loanmecfnfreottEomaidtteecnotri c\·hIic·sJa;d_.:m: :c{s;;sja(ad)d-.i-s..p..o..s_iz'-i.o;n;;c·(d.:eYl p.-u.b.-b<l;i>codanlcliatDeramtaindiieEcfofincalcemm-oddaapliacriteprdcevlilsatissaeimsebnlesiadsitrlaeogrgdeincarncagdoihmInewn1tot;(lI'iasc"rRizeiloanzeionneeiCcodmApIentwenitt'i}R(ve)gi(svtir)i CdeolmleeImprperveissetoddelalleFdrealmibec\rvcoer'lli.;c:uAi garileeempreencte,dlaensttiipleutlta. (dbc)lle'altatondtainfcuastiaonocppttoaslinzwiointccdVeiOcDreEdiUtoOrl"d<eAlltetoSodciiFeutEsiPonaret"e)c-ipconstii acUoma e[-l·a:urseiaolnizezeaxziaornt.e2d5e0ll3edaeltlrcCoatdti:civeitCaicvhilee c(oosvtvitcurioscnoenlFoiiploct.eds.i dinoJciunig'\drei lflo'Osspeertaalzeioonpcp,oisviiziiondneuscahlealacostnecslsuasinoonnesdiealtacolendtraatitmopdeisdcitipelli'ncascnctev.bz.ioCnocmdpctlal'vAetntoclditi:.F:iu-Csiosnoes)p;ein1scivoamtnpelnettaemcoemndoizdieolnlaatparaolcl'ead'\w'V:aerdaimcconntsou(lotazalioianreinsuinndcaiac)aldeeilnlemcoernidcioziaolnlai Fsousspioennesidvea pparcrtveisdtei lnnewlliot cstVesOsoDFTraomweewr oexrkaArt.g4re7eLm.enn4t2e8p/!r9e9c0is;asmeernictehiOesete",Cl'oontdteinziiomncinStoosdpeelnlesiavuet"o)t:iz(aza)z(ibo)niil(poevrvfeezrioosniaamnoendteocdoetslilairSdcaitsivsi-ointeeremli'nciffdicialceLgg'ted)edUaapsatretsesdaeelnlatrCooilm3m1icslsiicocnmebEruer2o0p1ca9 ol'adpeplrl'oAvuatzoirointieGdaerlalantFeudsieollnaeCeodneclolartreenlzaativeaddeloMcuemrceanttoazailopncerdfeazpioanrtaemdeenltl'oasdseelmJ'OblpeearastztiaoonrcdianiasreiansdiidIenlwlaitnnocrlmraistipveattcoodmeullnaitca.dri.aporoictaeldiaunraa dapi pwlhiciatebwilme ahil(epectolnacecnuittdaezsiocnriiz(iio.ne.c, sLe.;g.g--e--n·.--2-8--7-/..1._9'/90ri)nrveisataanlidaoRienlaozginoinccaCsodAintlenswoict)hneotnaclihacudtoarpizaztatezidoenlil'ansosncmdebvloeanosterasoserrdcinsaorgiagcdtiteVaOcDonTdoi2')i',oenfi;/o;,,:;q<u;a.l,:o·r·a::;p:rc':vle'odtatenonicmocnnctloizdioelnipoarictrncppegonsiiti(vvoolstui lalasucpoentgartueilteil cdreitlicRiat:pipcootnocdmiTCeanmzibailai edvaepnatrutaelmdeelnl'teespri\s,fcvotn>tr·a.t.e)::,·q·;ui;e·s;t;i' u1l\ti(mc)i ·n,o·n··d.e,v,o,nIo..e:;ss',e,t·e't-a\'l'i·,d/ a/\\d..e!t"eir·m:;:i-n',aitei o;:·p.-o_t1er-di e::t/e'<n:n..i,n.a.r)e:-u,,n<r:/m{<p'a;tmtodNipeegnadtievnote(cnoommemdaetofinruit.e
nel Framework Agreement, i.e., (i) un sostanziale e oggettivo impatro negative sul valore del bm'imtiJ di lnwit o VOD Towers, a scconda del caso, come valutato alia data d.i sottoscrizione del Framework Agreement o (it) con riguardo agli obietrivi chc le parti si sono ptefissate eli raggiungere con Ia sottoscrizione dei Co11tratti Conunerciali, come il(ji'd deflfliti J - ..,..-\').. / ·-' ;, ,y-;.;.; (e) (f) (g) C2 General
(fatta eccezione per lJU mto riguarda il cd. "'active Jtetu.Jotk J·harit (),il fatto cheil persegu.imento di tali obiettivi w:. ) snrf. irnped.i.to, gnPn rr:ente compromesso o si.s'!ljficativaml':nte danneggiato}; nel caso in cui la Commissione Europea abbia confermato che POper zione non determina la creazione di nna 'fuli jlmctionjoint ventml': Q1) la Comtnissione Europea o rAutorit?t Garante della Concorrenza e del fvfercato abbia adottato una dccisionc fmale ai sensi del Rcgolamcnto n. 1 /2003 o della Legge n. 287/90 (a seconda del caso) e tale decisione:: non determini un Impatto Negativo; o nel caso in cui un procedi.mento sia apcrto avanti la Comtn.issione Europea o l'Autorita Garante della Concorrenza e del Mercato ai sensi dell'art. 101(1) TFEU o corcispondente nonnativa nazionale (per esempio nel caso di adozione di una decisione exarticolo 11(6) del Regolarnento 11. 1/2003 o articolo 14 della Legge I\. 287/90) (il "Ptocedimento Antitrust Pendente"), aUa Data del Closing non ci siano obbiettive e concrete circostanzc che rendano probabile l'adozione di una decisione da parte della Commissione Europea o dell'Autorin1 Gamnte della Concortenza e del Mercato chc possa dcterminare un Impatto Ncgacivo; o nel caso in cui sia in cotso un Procedimento Antitrust Pendente e le parti abbiano offerto alia predetta Autorit:l gli niomnppergenvie, dg.liiboilbebeligfuhoirei dlealmciosuntrreocllooudetetlilveepvaottlitechaesucopmerpaotcrtlieilcrmltaicnictiaitocornacgogriruenngziimalei:nt(oi) otallai ismospteagnnziia, loebmbloigchliifiecatndiseugrlei ocboiretetttitvivicchveolltee.paatstui pseers-saeresilesOcrnitoicpitriefciosnsactoer-rceonnzilaalisontotonsscirainzoiosnteatdierligFertatmatiewproimrka.Ao garlieaemDeantat deedleCi l"oCsoinngt;raett(iiiC)oemamliaerDciaatlai"d(eil.eC.,loilsicn.dg.nAocnticviesiSahnaorionbgbA.icgtrteiveemeencto,nccornettreatct.oitccobsetasanrzaescohtetorsecnrditatonotrparToIbMabcileViOJ DrigpeetttoddisactipalleinAaruetoirrietcilipdreoicpirdeidreittttii ei.tonbpbelgignhi,ioinbbrleilgabz.iioenetna.lislaurccoontdrdivtiivseiocnoesdi edlaledreetelartmivienairnefru.anstIt..mutptuartteoaNtreivgea;tiivloc;.d1.)P2a)s3si)vle'oSttheanriimngenAtogrdeeelmleeanutt,ocroiznztraa:?tt.oiocnhiedsaapraarstoetdtoesllcericttoomtrpaet1e1n1cvi ii,\uVtoOrDitileaIlnpwe.rift,ezailohnDamateanetloi Sdeoltlt,oOspcreirzaizoinoenede(iivCi oinndtruasttaiICaoSmcimsseirocniael)i dnievceersssiad.caieTIpMer MlcgSgAe eivVi .OinDduMsoSiAl D, v.oLlgtos.an.el2i"sc1ip/2li0n1a2recoi nrivsepretrittiovni edlilraittLieegogbebnl.ig5h6i/2re0l1a2tivci.da.ligaocldoenndipvoiswioenr;eldaemlleanicnafrtaasetrnutttatutareinpavsisgtovreeddiilunnwaitlee.gV_O.rDse);oill'acs.dse. nVzOa Dd.!MuSnAa s, cMntteuntezraSaennc,hite"enoAngdreeefimnietnivt ac,hoerdsa.irnaes,odtetoCsicertiottoo tprraoInnuwncitiae cVmOeDssaaldiaaDunaatacdoeml pCcl.otcsninteg aeuctoon.rietaffgi.ciuadc.iiaziaardieacoordraeruend'aaulltaorDitaittaeleilivEigfif1i.mcazcaiacheecphoescsUa rsecn.idpelirneeidnvisaelridvoiz,iilcl.edg.iettliimoospoitiarlnitp?ctdsiutei siiltpi ecrhfeezsiaornaanmnoennteolldaecllliaspSocnisisbiiolinGe ee/loi Idnewlli'Ot apesctag7u:iitoondceollal'aFsusesnioznaed; .ei inlnca.ds.enTtlelvnlzaMaSnAch, enunoovnodlevfliansitteivraS,eorrvdiicnec_, .d,e4c..rPe.ta,noemprmont ucnhceisaaer!i"snoetstosascdriattuontatacolnmwpitcteenTtIcMauatloiariDt:lagtaiuddeilz.Cialorisainogdeacuonn'aeuftfoic.taitcaiadiavdie.gciolarrmeraecdhaelliamDpaotnagda.iuEnaf.fsiicganciifaiceatcihvea sdaisncziipolninee(dcoissiedrva-dizcitecn.dn.indairoespuintaIlmit?plamttoi sNiteigcahteivsoa)rannelnocanseolldaidpiesrpfoenziiobnilaitmi edn.itolndweiltl'aOspecgruazitioondee;llnaoFnussiiosniacv(ecroinficeastcoluusnioeovee,natiofisnoistdaenllzaiaph.nreesnetnetperceogniuddizizioienveo, [dee,l
citato Active Sharing Agreement); ) (k) '\:} '/ //\
6 (1) esclusione dell'obbligo in capo a TIM e/o a VOD EU (o aile sociem contro!lanti o dalle stessc controllate o soggette a comune controllo) di promuovere un'offerta pubblica di acquisto, ai sensl del TUF) sulle a.zioni ordinarie di Inw:it come conseguenza del perfezionamento dell Ope.razione; il completamento, prima della Data del Closing, di t\ltte le fonnalita xichieste da Borsa Italiana a Inwit pet l'emissione delle Nuove Azioni Inwit e quindi il perfeziooamento di hlttc le condizi.oni richieste da Borsa Italiana affinche le Nuove Azioni Inwit di VOD EU siano ammesse alia negoziazione su MTA e negoziabili alia Data di Efficacia, al pari delle azioni Iowit gii. in circolazione a tale data. (m) Nel Framework Agt:eement e poi previsto che, in seguito all'avveramento (o alia rinuncia) di tutte lc Condizioni Sospensive (entro il tetminc W.timo previsto dal Framework Agreement, c.d. Long Stop Date, corrispondente al 31 matzo 2020 oppute, nel caso in cui si applichi Ia Condizione Sospensiva di cui alia precedente lettera (g), al31 ottobre 2020), salvo diverse accordo, h stip<1h dell'Atto di Fusione e ptevista per ill0° (decimo) giomo hvorativo successivo alia data in cui si vetifichi (o sia rinunciata) !'ultima delle Condizioni Sospensive a verificarsi (o a essc.re rinunciata) Qa "Data del Closing")fermo testando che ove, a tale data, sia pendente un Procedimento Antitrust Pendente (e non sia applicabile la Condizione Sospensiva di cui alia ptecedente lettera (g)), la Jata di perfezionamento dell'Operazione potra essere posricipata (su richiesta congiunta eli VOD EU e VOD ovvero su .richiesta eli InwitaossdeimTbIlMee ianl vseiansdiidsgeilul'nartat 2tr5a0!1o-rqo;)matellradperlimCaoddiactcaCtriav:i(lei))(e.iqi)uiiln1d0i °fagteiosmi ochleavsoirsavtoivlgoadnoopuonial 3n0uogviuagAnsose2m02b0le; aild1e0i°sgoicoirodoi IlnawvoittaetiuvnoadnaulloavcaoAncslsuesmiobnleeaddeel iPsroocciedd.iiroVeOntDo ATnotwiterursstpPerencdoennfete1t1naSriesle'agpnparlaovcahzei>onqeudaelollraa FleusCioonnedi(zsieomnipSreoscpoelnrseiqvueisniotondriesluJlltlihnioJnvvcacsibfi.pceartcg(uoanntooncsoinanceomrienuInnwciiat)te, )imenptrreogilaudLiocantgoSiltoRpaDppaotert,ol'OdipCetaamziboina,ecphoettneobbnepnotornilpinerofegzniioncaasrsoi,essaselvroe mchoedlieficpaat.ort.i*d*e*l FCroanmreiwguoartkdoAagltle'aepmpelinctanzoionndeevcoidloanntoaxdiiaridnevlhiardeislcaipLloinnagdSitcoupiDalalt'aer.t.A2li5a0s1t-abtiertcisoudl.tacidvi.f,fsiciisleegsntiatlnaacrehela, steumllapibsatisceaddeelllalecCoomnmdiiztmioMnitSloetstpeernssoitvtoe,scsrpiettcaiettdaiIqnuweiltlae duincpuoioallidailbeattnecrahe(g(l)e. IHnoBlattn:ec,hsei")priencdisaatac2he6 nluegllFiora2m0e1w9,oerkinAcgorreseomdeinftineasltiaztzeapzrieovniestIoacnheeg-oqzuiaalzoiroaneladDi autna'odpeelrCazloiosninegdni ofinnasinzeoialtlnoecnhtioetnttaroIniwl 3it0, ianprqiuleal2it0a2d0i-ipcteonndsiitgtliiced,ieamlemBianniscthraez, iaovneendtei Ianowgigteettdoi lVa OcoDncTeoswsioernsevaafluavteor:arnendoi eIn, wcoitngdiiuunntafmineanntzei,admeecnidtoerpaenrnuonseG, aGnecnheef<telnl uto conto dci dover.i degli amministratori c delle applicabili previsioni di legge, ritengano necessaria o anche solo opportune procedere ad un aggiotnamento della documentazione relativa alia Fusione (in particolate delle situazioni patritnoniali depositatc perle relative
imporro complessivo in linea capitale di Euro 3.000.000.000 (il "Finanziamento"). Piu nello specifico, il predctto Finanzirunenm sad. arcicolam in tre linee d.i. creililo per Lrn irnpurtu paJ, dspettP.,arneate, a. Euro 1.500.000.000 (c.d. bridge facility), Euro 1.000.000.000 (c.d. term loan facility) e a Euro 500.000.000 (c.J revolving credit facility), volte a finanziarc il pagamento del cor.cispettivo per l'acquisto della Pattecipaz.ionc di .Minoranza ln VOD c L!. Distcibuzione Sttaordinaria, nonchC a rifinanzjare parte delrindebitatnento finanziatio in essete di Inwit, oltre a fmanziare le necessit?t di cassa di lnwit. i\Ua luce eli quanto sopra, put non ricorrendo ipresupposri d.i cui alrart. 2501-bi.r cod. civ. con riguardo alla Fnslone, Inwit e VOD Towers hanno de.ciso eli applicate su basevolonuuia h disciplina dell'art. 2501-bi.r cod. civ. tenuto conto della pcrmanenza in capo alia Socied. Incotporantc poJ·t Fusione del debito contratto per l'acgu1sto della Partecipazione di Minoranza in VOD 'Towers e per la Distribuzione Straordinaria. Pertanto) (i) ex art. 2501--bis, comma 2, cod. civ., il Progetto d.i Fusione indica le risorse finanzia.re previste per il soddisfacimemo delle obbligazioni di Inwit post Pusione; gli otgani amrni.nistrativi delle. Sodetfl Pa.ttecipantl alia Fusione, ex art. 2501-J·exies cod. dv, in data 13 settembre 2019 han no depo itato pressoil Tribunale eli Milano istanza per la nomina dell'espcrto eli cui all'art. 2501-.iil:·dcJ cod. civ.· avvalendosi della facolt?t ex art. 2501-J't!xie-J", comma 4, cod, civ., di richiedere la nomina di un esperto comune, con il compito di attesta.re, nella propria relazione, Ia congruitit dal Rapporto di Cambia (come b!fm defmito) nonche, in forza della prederta applicazione volontaria delYart. 2501 bis cod. civ. e, in particolare, del comma 4 dell.o stesso, Ia ragionevolezza delle ind.icazioni conrcnute nel Progetto dl Fusione circa lc riso:tse fi.nanziaric previste pet il soddisfacimento delle obbligazioni della Sociedi Inco1porante post Fusione. Con provvedimento depositato in data 2 ottobte 2019, il Presidente del TtibunaLe di Milano ha nominata quale esperto comune BDO Italia S.p.A.; gli organi anuninisttativi delle Socieci. Pa.rtecipanti alia Fusione, ex art. 2501-bis, comma 5, cod. c1v., hanno affidato a PricewaterhouseCooper$ S.p.A. ("P\ C"), socieci eli revisione incaricata della revisione legale dei conti eli lnwit, I'incarico eli rilasciare la relazione da allegare al Progetto di Fusione. La relazione rcsa da PWC, e:x att. 2501-bt:.r, comma 5, cod. civ., C. allegata at p.tesente Ptogetto di Fusione f.!fiL.0lle!§ato "A". (ii) ). (iii)
Socicta partecipanti alia Fusione Societil Incorporante 1. 1.1 ln·wit-Infrasuutture Wireless Italiane S.p.A. societi. per azioni di ciU:itto italiano, con sedc legale in Via Gaetano Negri n. 1, Milano, iscritta al Registro delle Imprese eli Milano, Monza, Brianza e Loeli a! n. 08936640963, con capitale sodale di Euro 600 milioni interamente sottoscritto e versato, suddiviso inn. 600.000.000 azioni ordinari.e prive di valore nominale quotate su Mercato Telemarico Azionario organizzato e gestito da Borsa Italiana S.p.A. In base a quanta risulta pubblicato alla data del16 ottobre 2019 sul sito CONSOB('), gli azionisti che detengono una partecipazione in Inwit superiorc alia soglia del 5% ai sensi dell'Articolo 120 del TUF sono iseguenti: Quota % s-a Ca.pitale Ordin:ario di C lSC Voto ; Dichiamntc j soggctto posw i : ;l vcl'tice dell:; i il-VOt "'SPctra a Quota%.... .... Quota Denoll'liDa-; zionc Titolo di ] Possesso i QuQta% Quota% Quota%. QUota % ' Soggetto Soggctm i% I ! ' il I I --] 033 ---'------· ··'n TIM esercita inoltie su Inv.rit attivici di ditezione e cootdinamento, ai sensi degli artt. 2497 e ss. cod. civ. 1.2 Societa Incorporanda Vodafone Towers S.t.L societa a responsa.bilira litnitata di diritto italiano, con sede legale Lorenteggio n. 240, Milano, isctitta al Registro delle Imptese eli iihno, Monza, Brianza e Lodi 10934930966, con capitale sociale eli Euro 10.000,00. La seguente tabella indica gli azionisti della Socieci. Inco.rporanda alla data deL P.t:ogetto di Fusione: I AziiJniSta (l/o del capitale sociale j Si ricotda che alla Dara eli Efficacia, a seguito del petfezionamento della Compravendita, gli azionist:i della Societ:l Incorporanda saranno i seguenti: U---------------------------56-,6 -'-----1 I 2. Nuovo Statuto della Societa Incorporante Con l'approvazione del Progetto di Fusione1l'assemblea straordinaria di Inwit sara chiamata a deliberate l'adozione del nuovo Statuto sociale della Societa Incotporante nel testa accluso al presente Ptogetto di CZ General l-D-E i A:z:iotlista % del capitale sociale 43,4% VODEU 100% TIM TELECOM lT/\LlA SP;\ 1--------------Propricci I 60.033 0.000 iI - 1 60.033 J 0.000 T ! To!(!/t 60.033 0.000 I T 0 0011 r-o -] o .ooo I 60.033 0.000 ..Tofnlc
Fusione JHb - \JJ.s;_ ar.o '"B(il "Nuovo Statuto''). Suk../\llcgato ··c_: si allcga lo statuto vigente della Socieri Incorpoxante (lu "Statuto Vigeute"). Il Nuovo Statllt(J cntred in. -..-igorc alia Dat:o. di Efficacia. Di segu.ito le principali proposte eli tnodifica da inserire nel testo del Nuovo Statuto che comportano una riformulazione degli articoli dello Statuto Vigente qui cJj seguito elencati: Art. 5 (A!; wm del capita/e); si propane di apportate le modi fiche necessatie per recepire l'cnllssjone delle Nuove Azioru lnwit al servizio del Rapporto di Cambio (<fr. paragrafo 3 del presente Progetto di Fusionc-); Paragrafo 11.2: si ptopone un quorum qualificato per talune delibere di competenza asscm.bleare di particolare rilevaoza aventi ad oggetto, inter alia, operazioni straotdinarie, modifiche statutarie o>rvero, in talune ipotesi, aumenti e riduzioni di capitale, autorizzazioni a operazioni con parti correlate di "maggiore rilevanza"; Art. 13 (CompoJiziiJne del Consiglio di .Amminillmzione): si propene una nuova procedw:a .relativa al meccanismo del voto di lista. previsto per la nomina del Consiglio di Atnministtazione c conseguentementc per la sostituzione dei membti cosi nominati nonche un diverso numero complessivo dei memb.ti del Consiglio eli Arruninisttazione; Paragra fi 16.3 e 16.4: si prop one un quomm qualificato per talune delibere di competeoza consiliare di particolareCriolemvparnazvae;nAdritta. .2I2l P(Croog!leetgtoiodSi iFnudsuicoanlce)a:sssiumpreo,paonnoermunaadneullo'avrat.p2r5o0c1ed-quuraatreerlactoidva. cailvn.,1qeucaclae.nsiistmuaozidoenlcvpoatotriemliolnisitaalcpdre.ivriisftcoripmerenlatondmenllienaSoddcieCtoi lPleagrtieacSipinandaticaa.llelae. cFounsisoengeu:e(nat)empeernItne\pveitr, llaa ssoitsutai.z!iuoznioenpeatdreimi moneimalbcritrc:oi.imneosmtrainleatail. 3(a0) s(ebt)te(mc)b(rde)2(e0)1,9..c_h·e. /eisstacruanaappprroopvoasttaaddailmcoondsifigic1aiostdaituarmarmiainailsl'tAtaszsieomnebldeiaIdniwIint\ivn'itdaCtail5lunsor.vraetmabnreell2a0R1e9laez(ibo)ncpeCrdVAOIDnwTiot.wRearps,p]oartsoihdliazCioanmcbpiaat/ri3m. LouaiFaluesaiol3n0e sceotntesimstberein2u0n1a9,oappeprarozivoantae ddai linccoonrspigolriaozidoinaemdm.i iVn1OsDttaT7,oiowneersdiinVIOn DwiTt aoiwseenJ:ssi ienpdeartgal1i 3efnfeotvtiedmebgrlei a2r0tt1.92e50c1heccsoengsuteandtiecl osod.locisvta. tIenpwaittricmlaornaiaaltetudaiziVoOneD' aTlioawFeurssio(cnenomneadniacnhtee d(ie)l acnonnutollaemcoennotomsiceonzeadceolnlacanmotbaioindteegllraatpi.avrate),ciaplaiaziporneededtitaIndawtaitdini 1V-iOfeDrimToewnteor,si.naccogeuriesntaztaa cmoeJdfiaatntotec1haeCVoOmDprTaovwenedrist,as,i(nlol)aalnianudlaltaarndcinetfo.fdicealldaapdaerltleaciSpcaizsisoionneed,isVa.rOaDunEaUsoincieVtlOl DinaTtotiwvaeres, rgeusiindduia, sdeonpzo:tilmpoe\r<fci.zmioennatamzieonntol ddieclloanCtoomecpornaovneUndciota. Sei(piirit)!caUssmegcnhaeziloenperaedVetOteDsEituUa,zaiollnaiDpaattraimeloi nEifaflticsaocniao, sdmeltleeaNssuuonvtce1'l\uzaioliusiitlunn'Wziot,npi apraitarimnuomnienxloi d3i6r0if.e2n0m0.e0n0t0o, daesleletvSizoicoiedteilPRaratpcpcoipratonteilai lCiaaFmubsiioo.nPee-Ta "nRoramppaodtteolld'airCt. a2m50b1io-q"udaetveercqoudi.ncdilvi.n, tveinstdoerilsidicl1co-arspopodtetloteelmi cpaotnribsipoetpteoralaCFJiulsllinotnoeicnoizni:aislmpoenndteenptrecvaiilsetoNnueolvFeraAmzeiownoirIknAwgitr,epemareinatncwheneprrocv3e6d0e.2va00o.r0i0g0in,aprtiiavmeednitveaqlouraelinsoirmuainzaioleniesJpi rreifsescoi,maettnrtio.bpueitteJaa VFuOsDionEeUaiasfernosn.rieddelcll'la'artn.n2u5l0la1m-qcunatoterddeelllaCgoudoircae rCeisvidiluea/d,a-l'l' a'".st/e-/ssCa2dGeteenncunta1in VOD Towers dopo il perfezionamenr.o della
la situazione patrimon.ialc di rifeill:nento d.i Inwit al 30 giugno 2019 e la situazionc patrimoniale di rifcri.mento di \'OD Towers al31 agosto 2019. A couedo delle predette siluazion.i patrimoniali di rifc.rimento delle Socicci Pattccipanti alia Fusione a norma dell'art. 2501-quater cod. civ, inoltre, tcnuto con to chela Fus.i.one per incorporazione di VOD 'l'owers in Inwir avvcrd. solo in scguiro nl pcrfczionamento della Sc.issione, e. allegata al p.resenrc Ptogetto t:L Fu::;ionc, .fttb ;\llc?a.to ''lY. lo stato patrimonia1c d.i VOD relativo ttl Ramo Towers aggiomato anch·esso ulla data del 30 scttembre 2019, non soggctto a revisionc, preclisposto in confonnit3. ai principl contabili italiani pattcndo dalla situazwnc cantabile di VOD al30 cttcmbre 2019, redatta in conformitii ai p1i.ocipi contabili intc1:nazionali IAS/IFRS (mcntre era stato allcgato al Fran1ework Agreement e utilizzaro ai fi.ni della Scissionc lo stato patrimon.iale eli VOD r:elativo al Ramo Toweral 31 marzo 2019, ossia alia data eli chiusura dcll'ultimo esercizio d.i VOD, prcdisposto sulb base del bibmcio d'csercizio di VOD redarto in confonnit?t ai ptincipi contabili italiani). Con riguarclo alle modalita c criteri di detcrrninazione del Rapporto di Concambio si rinvia alla Rclazione CdA In wit, nonche alla relazione i1lustrativa del comiglio eli amm.inistrazione eli VOD Towers redarta ai sensi dell'art 2501-qt inqtJieJ corl. civ. 4. Modalita di assegnazione delle azioni della Societil Incorporante AI. perfezionamcnto della Fusionc si proceden'i all'anrmlbmento d.i tLtttc lc partccipazion.i rapprcscntanci l'lntero capitalc sociale eli VOD Towers. Ncssnn onere ven.·i posto a carico dci sod per lc opcra?.ioni eli conca111b.io. Non sono previsti congnagli in denaro. 5. Data dalla quale le Nuove Azioni Inwit partecipano agli utili Le Nuove Azioni Inwit avtanno data di godiimmepnutomlzdioenneticaal baiqlaunecllioa ddeellllea aSzoicoineitiotrIdnicnoart-piocraInnwteitdienllceitocpoela.rzaizoinoeniadllenllDa aStoacdiei cEi.ffIinccaocriapoeraanttdriab)ueirfainscnaolia) VbOFuDsiEonUedsiarditte.iffciqcauciveadleanllrai aDqatuacdllii Espffeitctaacnitai.a7i .tiTtoralattrai mdeelnletoaezv.ie.onntui aolrmdiennaterieridseerlvlaatSooacipcadr.tilcnocJoalpriocraatnetgeoirniecidricsoolcaizeioanicpaolsmseosmsoerni tdaidtietloll'aisdsicvgenrasizidoanlele. 6a.ziDonatiaNdoindescuossrirsetnoznaodceagteligcofrficcttdiid. eslolcaiFcuosniotrnaettLama Fenutsoiopnacr,tiacofilnaireciov-p-rilivisitliccgi,iastaodneeflfiqcuaacderao ddeecll0a1F·ruesrieodnacl.la Data eli Efficacia; da talc data, lnwit subenu·erii a VOD Towers in tutti irapporti nei {1mdi queseultitna era precedente:mentc parte, assumcndonc icfuitti e gli obblighi. LData eli Efficacia, comunque non anteriore rispctto alle iscrizioni presso il Registro delle 1mprese prcscritte daUa !egge1 sad. ind.icata nell'i\tto di Fusionc, c sar?t comunque rcsa nota con apposito conmnicato stampa pubblicatotra l'altroJ sul sito intemet di Inwit (www.inwit.it). Anche ai fini contabiU (con conseguente
8. Vantaggi particolari eventualmente proposti a favore dei soggetti cui compete 1-'am.Iillnisitaz.iotu:delle societ.l partecipantl alla P.usione Non sono pre",risti vantaggi particolaci a favore dei. componenti degli organi eli amministrazione delle Societa PHrtecipanti alia Fusione. 9. Diritto di Recesso Si segnala chela Fusione (ivi inclusa radozione del Nuovo Statuto) non attcibuisce il dititto eli tecesso in capo ai soci che non dovessero concorrere alia relativa approvazione) non integmnda gli estremi di alcuna delle fattispecie di recesso individuate dall'art 2437 cod. civ. lndicazione delle risorse fmanziarie previste per il soddisfacimento delle obbligazioni della Societa Incorporante post Fnsione II Piano Combined 10. 10.1 Corne anticipato nella pretncssa del prcsente Progetto di Fusione., put non r:icortendo i presupposti di cui all'art. 2501 bis cod. civ. per l'applicazione delle disposhioni in t.ema di fusione a seguito eli acquisizione con indebitamento, Inwit e VOD Towers hanno deciso eli applicare su base volontaria la relativa disciplina dell'art. 2501-bi;cod. civ. tenuto conto della peorumenza in capo alia Societi Incorporante post Fusione del debito contratto per l'acquisto della Pattecipazionc di TY1inoranza in VOD Towers e per l'eventuale D.istribuzione Straordinaria. i\i sensi dell art. 2501-bt:r cod. civ.J e ptevisto che il Ptogetto eli Fusione indkhi le risorse finanziat:e pteviste peril soddisfacimento delle obbligazioni della socied porsetsftuasnidooneglei cimhepleagrneilaazsisounnetiddiacuViOaDlYaairts.e2n5s0i 1d-eqiuCinoqnutriaets1cioCdo.mcimv.eirncdiaiclih, iinledraatgaio1n8incohveegmiubsretif2i0.c1a9nohaFoppreestoazaitornoedeelcPoniatnenogCaoumnbpiinaendoaeicfoinniodmeilclao perfeidmis:ip.nosziizai:orinoecdoenllianddioccauzmloennetadzeilolnaeforneltaetidveallaelrlaisForusseiofni.en.aGnzliiaorrigeaen]iaamdersnci.nriiz.sitotanteivdiedgiliInowbiiettetivViOchDe Tsioiwneterns,dcoinaosctuangogiiunnrgeelarze.iorneertaanllt'oan, danamcheenatol fdinelepdriovperi:ocibfiucsazte·nIeasssodsiternifiebriilmite2n. tdoel(lr'iisnpdeetbtiivtaammeennttoe,pqousetlFlousdiioInnew, iilt me aqnuaeglleomdeinVt OdiDInTwoiwt hearsppreosdtisSpcoisstsoioinl ep)i,asneognecaolannoomcihcoe,fainliaandzaiatariodidaipIpntwovitapzoiosnteFudesiloPnreorgeeltattoivdei aF!upseiroinoedono2n01ri9s-u2l0ta2n7o(eilss"ePrieanooccCootsmi bfaintteidd"i)r,ialipepvroovoastiogdniafliccaotnivsiig1lisoceolsitaa1mnmenint:iisrtriaspzeiottnoeaelllei Iantwteistei.nPdeartIaa1d8esncorvizeimonbered2el01P9ia,noontCeostmuablimneedntsei arilnl'vapiapraoqvuaazniotaneillduesltrPartoogneettloladRi eFluasziioonnee. CIlePLila\nIouwCiot.m1b0i.n2edDeebbitaosaatsosusuntpordoiae/zniowniit epceornJoamreiac/oi-zfzimnarnioznireuideel2l0'O1p9e-2ra0z2i7md:rieInAwl iftineeVdOi rDeaTliozwzaerres Y(aOsspuemraezniodnoei,l ipveirifneczliuosnia1m'aecnqtuoisdteolldaeSllcaisPsirotencei)piunzuionnaepdriosMpeinttoivraansztaanind ValOonDe TptoewdiesrpsoestIe'edvaeinmtuaanteagDeimsterinbtutzeiaomnedSi tIrnaworitdeinVarO.iaD, .aIlilacDonastiagldieoldCilaorsminngi,nIin::w;triat zsiootntoesdcriiVveOt:Dl cTonowleerBsa, nncehi elimil ictoi dntetiadttaotireeladteivlloe ainlfFo::irnmaanzziioamnieinntoprcohperisoarpaoesstoegssaotoniunnpcahrei Udaetlaleeriecsuoiizpiroinnicidpearliivtaenrmciidnailelacdoinsddipzliionnaiasnotnitorursiftl,.neossni anveelhnldcoosmvmolittom) mantclheteteinr scootntossidcerittatzaiotrnaeIndwelilteeprleedpettetdeertetestBtizainocnhie, vinerdifaitcah2e6alvuaglluiota2z0io1n9i.aCu2toGnoemr.eemsul l Piano Con1bined e sulle assunzioni elaborate dal management di Inwit alh base dello stesso, fermi
Come 9-cccnnato, Inwit, :mila base dcll'andamcnro del Pi 1no Combined, ha stimato di cicorrcre a1 Finanz.iamcnto per la rc dizzazione ddl'Operazione per un i.mporto pari a complessivi Euro 2,970 mil.ion1 (il "Debito"). In p;:J.rticolare, nella so canza, le risorse finanziarie a servizio deli'Opcrazione v·cxrebbcro cosi .raccolte: (i) Euro 1.500 milioni attraverso una linea temporanea, c.d. Bndgc Facdi!J ("BF"), deDa dmata di 18 mcsi, eventualmcnrc estendibile eli ulterioti 6 tncsi, rimbot::>abilc interamcntc alia scadenza, ad un tasso pari a Euribor incrementa to eli uno Spread (90-270 bps in funzione della durata della_/{Itilily, con un Yalore iniziale eli 90 bps); Ew:o 1.000 milion.i atttaverso una linea a lungo tem-J.ne, c.d. Term L...oatl f''adl1{y ("TLF"), della clu.rata di 5 anni, ritnborsabile interamentc alla scadenza, ad un tasso pari a Euribor, incrcmentato di uno Spread (100-275 bps in funzione del LePtn{:!f .RAtio, con un valore in.iziale d.i 155 bps); ulteriori Euro 470 m.ilioni attraverso una linea c.d. Rcvolvil(g Fan'lity ("RF") eli Euro 500 milioni, con durata quinquennale e con un tasso pari all'Eur:ibor incrementato eli uno Spread (70 - 245bps in funzione del I....elllfr'"t!gc Ratio, con un valorc iniziale di 125bps). (ii) (iii) In base a guanto previsto dalla romtJJiltnent /etteri contratt:i che disciplineranno il Finanziamento prevedmnno l'obbligo, in capo a lnwir, a partite dal 31 dicembre 2020, eli rispcttare un rapporto Total Net Debt/EBITDA non supeciore a 7,0x, con veri fiche semcstrali.. Per quanta concenle i possibili utilizzi delle predette lince eli cred.ito le facility BF, TLF e RC asossnuomaclnsdeorviilzrioifidnea:n(zii)aiml feinntaonizniaumneandtoatdaeslul'cacccqsusiisviazioaln3e1dedlilcae1Pnarbtreeci2p0a2z0io. nTeudttia.vii\a1,incoortannezsaoipn.rVa OdcDscTriottwo,erIsmeviotginniternedlaetipvroocceodsctore/feaer;if(iUna)nlaziDaries,trsiubbuiztioodneopSotrlaaoDrdaintaardieal; C(ilioi)siinl gti,filnaaBnzFi,apmeernstuoadniaetvu·raendtiuadluirdaetabitteimpprcogrraenses.iad, icoIwn.uvnit;fiena(invz).ifainrn:menztioaraiemeevdc.niotu-laulni gesoigteernmzc_ienlei;caansasalo..g1a1mceonstet,osdneblitdoedboitpoodliaInDwarltapdoesltCFluossiionnge,,Ianwscitgiunittconddeellr'uimtilbiozzrsoasreo,pirna tduetstocroittion dpealrltee,fal'cuitliiltjyzzboandceallraieR, eCattttacmsoiteesascecrecncsoiomnpereesliournrafi1n,a5n°/zoiaem1e,n7t(ol/"a, msueldlaiob-alusengaogttieantntuinaeli; liievpeallsisdiveiittaapsseirdlo'incateztieosnsicfeinaanse:.cdoanridea, sdieet\erimdpenisztiiacacheeli sroifninoapncziinacmipeanltmo cdnetlelareBlaFt.iv-;e:.-a;l_l'a<d.oz--io/ n; e--d--e:l::pvr,i.n'c·i:p' \ilaIcnawnitta,bciolem!eFRrifSl1es6s.o- n·e·l·P·i·an--o,..C..o,.m.,_b,i_ne)dJ,'>pr-ctjv(eidncmeilliiaarvdeired,iaElluarod)at2a0d2e0lE31DeelbicHcimvbetreso20b2a0ne(ihpeot-izdziacnudi¢C>o, r'.r,e-n; tlea -Ddaitacudienl oCnloCsionrgreanlte302,g9lu1g,9no1,200P20s)s,ivuintftinpcelrebloitcaamzieonntoi ffiinnaannzziiaarriieoepaalrtirladEeubrioti 4fi,n0amnziliiaarrid1i,,1clmnd--c.b:_it-a_m.,_c·nC_·o>F:-i:n-<an·:z:i·a-,ri'_o·N,_e::tt-o'-4. ,'0'·>C:2_. -G--e-n;e-r:<-:l::·-· :_ --'/ ---:> cvi enzinto dalltabella he.-segu(chc indica l'indebitamcnto finanzia:r:io stimato a fine 2020, Fuswne). A tal nguardo, SJ evrdenzill che: .;c)/ ' la BF vicne rappresentata p1Udenzialmentc in qmliti eli quota corrente del debito verso lc banche e pcrtanto
10.3 Risorse iinanziarie previstc per iJ soddisEtcimento delle obb!igazioni della Societci. lncurpo£ante post Pusione II consiglio di anuninistrazionc di Jnwit ritiene che la Societa Incorporante poi/ f.usione sad in grado eli soddisfare le obbligaziotll dedvanti dalla Fusione con lc risorse che si prevede verran.no generate dalla stessa cosi come pteviste ncl Piano Combinedoggetto tra l'altro di una specifica indi!pendenl btiJiue.r.r re1:ic:w ("'IBR") condotta da Analysys Mason - nonche attraverso il ricorso al merc:ato obbligazionario e al mercato bancario per ci6nanzlarc 1a BF e rimborsare la RC. Con rifcrlmento aile risorse che si prevede vcrranno generate Jalla Societil Incm-porante post Fusione si rileva che: la Societi. Inco.rporantc post Fusione e attesa generarc stabili flussi eli reddito e di cassa, flussi che rimanebbero cansistenti, anco.rche inferiori, anche in prcsenza eventuali scenari peggiorativi analizzati nelle AnaUsi di Sensitivici (come il?fhr defmite); le tisotse di cassa cumulativamente attese nel Piano Cmnbined, prima della distribuzione di dividendi, decisa dagli runminlstrator:i tempo per tempo in carica, atrlvano a quasi eguagliare l'ammontare di Debito conttatto pet realizza.t:e t>Opcrazionc e conscntono un dxastico ridimensionamento dello stesso anche nelle Analisi di Sensitiv-id (come h(jhl definite); come nota, tali rlsotse sana disponibili pet impieghi, talvoita complemcntari, talvolta alternativi, quali il cimborso di eventuali finanziamcnti in scadcnza) la distribuziondi dividendi, lo sviluppo di operazioni straordinaric, e CO;'i"l via. A questa ptoposito si anticipa chela verific e stata condotta nella sola prodsaplel'tOtipveareaxziaonnteeeaxssaur.tm. 2ib5i0l1e-dbaisl ,ccoonmsigmlaio2d, idaeml CmoindiicstetaCzii\o>niclediviilnin\vdiutsdecql1n8elnleovdeemr.ibvraen2ti0d1a9l oFsisniaanqzuiaemllaendtiov, eterinfuiet-oacrconsteotadliiruinsoarispeo, tpersiimdai dpoi luitniclaordoi fruetmuruoncedtazeivoennetudaelgelci laizvieornsoistuitcilhizezsoi,psoianneol'soubfifcitctiievnotidaidunllassdicisutrraibtcu7la.iosonsetedniidbiivliitdilenddeil pdeabriitao.ci'Crcoa:m1'e80de/nscdreitgtoliiuntiplirenceetdcienatz.atel-a..B!.;Fi ielllicEiausrcou1n.5c0se0rcmiziliioo.n(iinhamuilniaandUutdaitaEeulrio1)82m02e0s.Ei,6evmeenstui(aZl)m1e,n7te(0,,7·e)s1te,0nd(i0b.i2l)e(d0i,1u)lt0e,r7io(r0:i,76) m4.e3si(,1r.1i.)mFblourssasboidlei cinatsesraamopeenrtactiavloiacsucmadue\natzoa.(aL[anSeottcoiedteallperctavsesdeet)dCi aripfeinxacnuzmiaurelaltae·0B,2F (r0ic,1o)rtCenadsho Fdilorewttcaummeunltaetoalma seerrcvaitzoioobdbelligdaezbiiotona0c0io3i,2n Omnoedroi fdmaadnivziearrsiifciucamteullaetip(r0o,p4r)ie(0f,o5n)ti(0d,i0f)inAacnczeinastniocn.net/o(riemdboottresnoe)tfeinilanmziigalmioernmtiicxuemliuslacatid(e0m,0a)eFcCoFsEtic. uCmoeurleatnote(m0,e0n)t2e,c3oDni.vlaidneantduiraortdeimnaproircaunmeaudlaetl[la(j2(,JId)!Ci(aysihnFqluoewstciounmeu}laIntow0it,2prlenvdeedbeitdami .erinftionaFnizniaanrzeitaarlico lNincetatoeal/iEcBreIdTiDtoAn5el,l7axp4r,i2mxa3f,i0n:e-s<tt-a-1d1i mercato utile dopo Ia Data del Closing. Nella tabelh che segue e rappresentata Pevoluztone dei flussi fmanziari attesi (sia generati, sia assotbiti) nel Piano Combined, che consente una valutazione sulla prospettata capacita in capo a Inv;rit post Fusione di adcmpiere aile obbligazioni risultanti
.'\iu/1': (1) (irblata coHN ER!TD/l-Varia:jom! dr! .:.rpiMie cin:o!mt!e nerto-Vm:itJ'{jOiu ddjimdi -lnvesti!JJeJ?fi? QNmjiNall.ziari n;/i!lil'l dil'applira::j();f(' del prill<'lj!l() W!l.!t bi/,· IFRS 16 1/an(J:{j(mi dd·'e p.mifllr.ijiuanzirmi: n:krliw al/'aP/>Ikazione del jJJiNcipio r:(m/n!Ji/e IFR.f 16 ·-Tcu.rr>; (2) Jl itg;;a/a ht Ia Data dd ClosiJ i( J .rial,;, ipotiztala <11.30 . ii(q!lo 2020. D(lti rt<tl/fr/ali da gittgno 2020 a ,/i,-,'!Jtl,re 2020,-(3) Dati mJmt!ati da singno 2020 a d/(rm/;re 2073; (4) Dati tmmdati da guww 2020 a dim11Lm 2027. Con patticolare rifc.rimcnro alla mcnzionata politica di disuibuzione dei dividendi post Fusionc, si ramment<1 che-ai scnsi clell'accordo parasocialc che TIMe VOD EU si sono itnpegn<1te a sottoscrivere aHa Data del Closing (i cui contcnuti essenziali sono g1a stati pubblicati ai f.icnsi deWart. 122 TUF c Jell'art. 130 Regolamcnto Emittenti) -e. prcvisto che, "previa dect:dom del con.c{glio di diJJIJJitujtm:rjrme di lnwit dJe te7rd cottto, tra l'altro, del piano imba!ntde di lm11it, delle aspdtatitt' di ctKI{l"/a e generaif'one di WJ.fa, delle (Omiderazioni reLiliw a! ra6ng e delle opzioni .rtmtegirhe dispo;;ibili1 TLW e 1/0D EU co;mmgono cbe lnutit awd l'obidlt'J/tl di di.r!ri.lmire mt dii:idendo a!lll!IO coni.ijwndmte ad almena 1'80% dell'utile ne//o di eJ'e!'dziiJ (n!I!!Jitetlo per le poJtfJ tma /an/um ff Jlraordi!!ari (Jf'. )Jlp.Ji;;;L9-i Sen i_tiyitit I 1 I ,a verifica ch patlc di Inwit della propria capac.itil, quale Societil Inco1porantc. di rimborsare il Debito aile s.cadenze prcstabibte, svolta anchc con Fausilio di p.ropri prllnari adttisors indipendenti, si e fondata, oltte che s1.1l Piano Combined (c. d. scenario base), su scenari alternativi pegg,iorativEi (U"HA.nIamlis!id)di(;S.;e)n1s0it2iv1iEta2")02ch3eEs2im02u7la£nCo;ij.l.m1.a0nc1a.0toi,rDag1g,i0un1g0l0l%nen7t$o%, in63p%erc:c5n0t%uaHliXanIc%he7Sri%lev6a3n%ti,5c0lc%gl3i .o2bJi,e!txtiv3i, db;l:3S,2v:i-l:upSpmoadileClleelSlsml,alitl+C2e0li1s7; ERi2c0a2vi.dUa: I2o0c2a7ztio1n,0c 1d,c0i m1,0ac1r0o0s%iti7c5o%nnc6s3s%i a>i t;eqni.a.N_i"J·'nd-i1v,:c:r!s3.i,0da3'.l0'lM4.?exV4o,hda-tfAonxe·;-P--r-o--g.r.c-1ss:!i.v·a--r-i-ne7g5o%zia6z3i%on5e1e.di%ef3fi.1cixen3t,.1:1xm3e. nRtiocadve1i Jm!,arocmrordsitlieaJrJde.pIanrotyltr.eWe2sHta:to20sv2i7lu1p£p2a0to23utn2o0s2c7e£naIWrioI.d7i5.r%tre5J0J'%te.r2!5c%on1s,i0dci/rJat!o,!Jdil.pOitl4,i2mxp4ro.2bxab4i,l2exa4cc,3axdi3m,2en3t,o1 n3e.1l g3u.1alle(Jv(elon/g,,o7n5o%co5mf/b'/iona1t5i%i ttJe,Oef.fJe.tOrixp3e,g0gxio3r.abt:ivGiriopuontidzzlaansd<o:l2i Jco0m,9e.\c.Soxnt3em,6pxoQraunineacmliea:nnctehcvnereilfliocastcie. nJa,raiovedJiifsitcreaudteelslat,scoosntesnidibcirlaitto9.dfiinpainllzlilanrpiarodbealbDileebaictocahdaim1\e,onutoarednaerol q.gu,anlcchveeinlgroisnpoerctoomelbiiunantoi di etriepeitf\fedtitfi "p'cCgg1ioor\.a1tSiv.i.'ip. o:.t.iz:·z:a§n..d-o' l.i:'c2o1m}e_c:o;;n.t\Nem5po\ r;a$nreaapmpoernctiecvheeriefiscpartiimInowniot Cla sbtaistneaetali@ca/l=colo dei jina!lci.al t"mlc;;ants nei contratti di fina.nziamento, i "" 4:.5l:>:-,}(/J;, rappo to tra ln bitamen o.Fina.nziario N tto d EB_rrDA. !n tri gli, scc ari (nellsc nario ba.sc e sccnan altcrnat1v1 stressau) 1l ratLo mostra livelli soddisfacentl.. D1 segwto v1ene fonuto 1l dettagho: -&.\ --. .'" ... '·"' ;(fi \·{ \\ .·.. -,, ,..:;;;_;\') )!;·' - 1)-v (iJl
essere in grado di generarc Euro 2. 7 miliatdi dl cashj7o;v cumulato a servizio del deb.ito, raggitrngendo un indebltatuento di 3,Gx EBITDA a fine PiailO Cornbi.ned. Sono salve le var:iazioni, le integrazioni e gli aggiomamenti anche numetici al p.resente Ptogetto di Fusione cos!come al Nuevo Statutoquali consentiti d.alla normativa o eventualmente richiesri dalle competenti autoritit di vigilanza o dai competenti uffici del registro delle imprese. *** La documentaz.ione .tichiesta d art. 2501-septiM cod. civ. sad. depositata nei rerrninl e con le modalicl d.i legge e rested depositata fino a chela Fusione sia decisa. *** Elenco degli allegati: Allegate '"An: relazione resa da PWC ex art. 2501-bi.r, comma 5) cod c1v.; Allegata ''B17 Nuevo Staruto; : Allegata "C,: Statuto Vigence; Allegata "D": stato patrimoniale Ramo Towers al30 settembrc 2019. Milano,. 18 novembre 2019 Piergiorgio Peluso-I residente Barbara Cavale.ti.-Presidente 13 C2 Ger eral
pwc INFRASTRUITURE WIRELESS ITALIANE SPA RELAZIONE DELLA SOCIETA' Dl REVISIONE AI SENSI DELL'ARTICOLO 2501-BIS,QUINTO COJII(MA, DEL CODICE CIVILE .
pwc RELAZIONE DELLA SOCJETA' DI REVISO! NE AI SENSI DELL'ARTICOLO 2501-BIS, QUINTO COMMA, DEL CODICE CIVILE Ai soci di Infrastrutture Wireless Ita1iane SpA Vodafone Towers Srl Abbiamo esaminato il piano economico e finanziario, redatto con riferimento a1 periodo temporale 2019-2027 (il "Piano Combined"), contenente idati previsionali, le ipotesi e gli elementi posti alia base della sua formulazione, tra cui gli obiettivi che si intendono raggiungere mediante la prospettata fusione con indebitamento (la "Fusione") per incorporazione di Vodafone Towers Srl ("Vod Towers" o "Societil Incorporanda") in Infrastrutture Wireless Italiane SpA ("'lnwit" o "'Societil Incorporante" e, congiuntarnente con la Sodetft Incorpon:mda, le "Societil"). 11 Piano Combined e descritto nella relazione, formulata da ciascun consiglio di arnministrazione delle SocietJ. ai sensi dcgli articoli 2501-bis e 2501-quinquies del Codice Civile (di seguito la "Relazione") e approvata da ciascun conslglio in data 18 novembre 2019, che illustra e giustifica il:progetto di Fuslone tra le Societa. La responsabilitil. della redazione del Piano Combined compete agli amministratori della Societa Incorporante, mentre il consiglio dl amministrazione dell'Incorporanda ha solo preso atto del Piano Combined, come precisato nella Relazione a cura del consiglio stesso. 1. Il Piano Combined assume, quale riferimento di partenza, la situazione economico 2. patrimoniale della Societa Incorporante al31 dicembre 2018 e la situazione economico patrimoniale pro forn1a della Societit Incorporanda al31 dicernbre 2018 ed e basato su proiezioni economico-finanziarie peril periodo 2019-2027 di Iuwi.t e Vod Towers in una prospettiva stand alone, predisposte dai management team di Inwit e Vodafone Italia SpA. Si segnala chela situazione economico-patrimoniale pro forma della Societi Incorporanda non e stata oggetto di esame complete o limitate. Il Piano Combined simula la Fusione tra le Societa a partire dalt0 gennaio 2020. Come citato nella Relazione 1 la Fusione prevede, tra gli altri aspetti, la condizione sospensiva legata all'otteniroento delle autorizzazioni da parte della Commissione Europea o dell'Autorit3. Garante della Concorrenza e del Mercato al perfezionamento della Fusione ai sensi della normativa comunitaria o italiana applicabile aile concentrazioni. Il Piano Combined estate predisposto sulla base dei medesimi criteri di rilevazione e misurazione previsti dagli International Financial Reporting Standards ("lFRS") adottati per la redazione del bilancio di Inv.'it al31 dicembre 2018 e della situazione economico-Pvi t;cltxtttoJ'houscCoopers SpA
pwc patrirnoniale pro forma dl Vod Towers al31 dicembre 2018, a eccezione del trattamento cantabile dei costi relativi all'accensione del debito finanziario verso terzi, prevista ne11'esercizio 2020. Detti costi sono stati interamente spesati nel canto economico del Piano Combined nell'esercizio in cui si prevede siano sostenuti anziche portati a diretta riduzione del relative debito finanziario verso terzi in accordo con la metodologia del costa amtnortizzato. Si rileva che tale rappresentazione cantabile, seppur non coerente coni criteri di rilevazione previsti dagli !FRS, non ha impatto sulla quantificazione dei flussi di cassa futuri attesi della societa risultante dalla Fusione. I principi IFRS saranno adottati anche per la redazione del bilancio della societa risultante dal1a Fusione. 11 Piano Combined ritlette il disavanzo risultante dalla Fusione, provvisoriamente allocato interamente ad avviamento, in attesa di puntuali valutazioni sulla sua eventuale allocazione ad altre attivita e passivitcl attraverso la procedura di Purchase Price Allocation prevista dall'IFRS3-Aggregazioni Aziendali, da effettuarsi da parte della Societa Incorporante una volta acquisite le relative informazi.oni di dettaglio. In linea coni principi contabili assunti, I'avviamento none stato oggetto di arnmortamento. 3· · evoluzione dell'in:flazione cosi come prevista nella proiezione annuale dei rlcavi contrattualizzati di Jnwit e Vod Towers, indicizzata a tale parametroj · evoluzione dei segrnenti di mercato relativi a Mobile (sG), Fixed Wireless Access (FWA) e Internet of Things (loT) in termini di dimensione, sviluppo e temporalita cosi come riflessa nel Piano Combined; · incremento della quota di ricavi diversi da quelli derivanti dai contratti commerciali (Master Service Agreement) che saranno sottoscritti con TIMe VOD alia data del perfezionamento della Fusione (closing); rinegoziazioni dei principali termini e condizioni aHa scadenza dei contratti di locazione passiva; <l capacitA della societa risultante dalla Fusione di procedere a rifinanziare, neli'orizz.onte temporale de1 Piano Combined.ii Bridge Facility e ilTerm Loan Facility con altre forme di finanziamento a medio-lungo termine, coerentemente con l'obiettivo di mantenere una struttura finanziaria considerata efficiente. o 2di3
pwc II nostro esame e stato svolto secondo le procedure internazionali previste per l'analisi delle informazioni prospettiche dall'ISAE 3400 "The Examination of Prospective Financial Information", emesso dall'IFAC -International Federation of Accountants, che rappresenta lo standard internazionale di rlferimento per tale tipologia di lavorL 4· 5. Sulla base dell'esame degli elementi probativi a supporto delle ipotesi e degli elementi utilizzati nella formulazione del Piano Combined, come descritti nella Relazione, non siarno venuti a conoscenza di fatti tali da farci ritenere, alla data odie rna, che le suddette ipotesi ed elementi non forniscano una base ragionevole per la predisposizione del Piano Combined, assumendo il verificarsi delle azioni dell'organo arnministrativo della Societi Incorporante e delle assunzioni ipotetiche relative a eventi futuri descritte in sintesi al precedente paragrafo 3· Inoltre, a nostro giudizio, il Piano Combined e stato predisposto utilizzando coerentemente le ipotesi e gli elementi sopraccitati ed e stato elaborate su11a base di principi contabili omogenei rispetto a quelli applicati dalla Societa Incorporante ai fini della redazione del bilancio, a eccezione di quanta indicato al precedente paragrafo 2. 6. Va tuttavia evidenziato che, a causa dell'aleatorieta connessa alla realizzazione di qualsiasi evento futuro, sia per quanta concerne il concretizzarsi degli accadimenti sia per quanta riguarda la rnisura e la tempistica della lora rnanifestazione.gli scostaJneuti fra valari consuntivi e valori preventivati nel Piano Combined potrebbero essere significativi. Ci6 anche qualora gli eventi previsti nell'ambito delle assunzioni ipotetiche, descritte in sintesi al precedente paragrafo 3, si manifestassero. Lapresente re1azione e stata predisposta aisoli fini di quanto previsto dalJ'articolo 2501-bis, quinto comma, del Codice Civile, nell'ambita del progetto di Fusione tra le Societa e non puO essere utilizzata, in tutto o in parte, per altri scopi. 7-8. Non assumiamo Ia responsabilita di aggiornare la presente relazione per eventi o circostanze che dovessero manifestarsi dopa la data odierna. Milano, 18 novembre 2019 ' P olo Caccini ( rrtner)
Altegato "B" STATUTO della "Infrastrutture Wireless ltaliane S.p.A." TITOLO l ELEMENT! IDENTIFICAT!Vl ART!COLO I - DENOMINAZIONE l.l La Societa e denominata "lnfrastrutture Wireless Ita!iane S.p.A.11 o, m fonna abbreviata., "INWIT S.p.A.". ARTICOLO 2-SEDE 2. I La Societit ha sede [n Mtlano. 2.2 L'organo amministrativo puO trasferire Ia sede sociale all'intemo del territorio nazionale o puO altresl istituire e/o modificare e/o sopprimerc sedi secondarie, filiali succursali, rappresentanze, agenzie e dipendenze di ogni genere in Italia e all'estero. ARTICOLO 3-DURATA 3.1 La durata della Societid: fissata s[no al 3 I dicembre 2100. 3.2 La proroga del terrnine di durata della Societa non attribujsce diritto di recesso ai soci che non hanoo concorso alia approvazione della relativa de!ibera. ARTICOLO 4-OGGETTO 4.1 La Societa ha per oggetto: l'installazione e J'esercizio con qualsiasi tecnica,. mezzo e sistema, di impiantiinfrastrutture, ed attrezzature fissi e mobili, stazioni radioelettdche, collegamenti perle radiocomunicazioni mobilireti dedicate e/o integrate, per l'espletamento Ia gestione e la commercializzazione, senza limiti tetTitoriali, dei servizi di comunlcazioni elettronica, quali anche risultanti da!l'evoluzione delle tecnologie, e per Jo svolgimento delle attivita ad essi anche indirettamcnle connesse, cornprese quelle di progettazione, sviluppo, realizzazione, ricondizionamento, gestione e manutenzione; Ia progettazione, costruzione e/o gestione di reti e infrastrutture perle telecomunicazioni; Ia fomitura di infrastrutture e relativi servizi ad operatori di servizi di comunicazione elettronica (con qualunque tecnologia esistente o futura). 4.2 La societa potril altresi svolgere in nome e/o per conto proprio o su commessa di terzi, le attivitA di acquisto di materie prime, dl semilavorati e di prodotti necessari per lo svolgimento dell'attivita di cui al comma precedente. Per il conseguimento e nell'ambito di tali finaliti e, quindi, con carattere di mera sussidiarietil e strumentalitil, Ia societil potra: assumere in via non prevalente e non nei confronti del pubb[ico, partecipazioni ed interessenze in societa ed irnprese di ogni tipo e forma; provvedere al finanziamento delle societa ed enti di partecipazione ed al coordinamento tecnico, commerciale, finanziario ed amministrativo delle !oro attivita; ((.}I '
compiere, non nei confronti del pubblico, nell'interesse proprio e delle societa ed enti di partecipazione, qualsiasi operazione mobiliare, immobiliare, finanziaria, commerciale, compresa i'assunzione di mutui e finanziamenti e la prestazione, anche a favore di terzi, di ava!li, fideiussioni e altre garanzie, reali comprese. 4.3 Sono espressamente escluse le attivit:l riservate a soggetti iscntt1 m a!bi professionali e Je attivita di cui all'art. 106 del decreta legislativo n. 385/1993 nei confronti del pubblico. TlTOLO f1 CAPITALE SOC!ALE ED OBBLJGAZION! ARTICOLO 5-tvUSURA DEL CAP!TALE 5.1 [J capitale sociale sottoscritto e versato e pari ad Euro 600.000.000 diviso in num.ero 960.200.000 azioni ordinarie prive di indicazione del valore nominaie. 5.2 I! capitale sociale puO essere aumentato anche con conferimenti diversi da denaro net timiti consentiti da\la Iegge. 5.3 Nelle deliberazioni di aumento del capitale sociale a pagarnento, il diritto di opzione pub essere escluso nella misura massima del 10% (dieci per cento) del capitale sociale preesistente, a condizione che il prezzo di emissione corrisponda al valore di mercato delle azioni e ciO sia confermato in apposita relazione da un revisore legale o da una societa di revisione legale. ART!COLO 6-AZlONl 6.1 L'Assemblea puO deliberare l'emissione di azioni tOmite di didtti diversi da queHe ordinarie, in conformiti aile prescrizioni di Iegge. 6.2 Le azioni sono indivisibili. In case di compropriet3., i diritti dei contitolari sono esercitati da un rappresentante comune. 6.3 L'eventuale introduzione, modificazione o rimozione di vincoli alia circolazione de! titoli azionari non attribuisce diritto di recesso ai soci che non hanna concorso all'approvazione della relativa deliberazione. 6.4 E cons(jniita, ni modi e neUe forme di Iegge, Jlassegnazione di utili c/o di riserve di utili ai prestatori di lavoro dipendenti della Societa o di societa controllate, mediante l'emissione di azioni ai sensi del primo comma dell'art. 2349 del cod ice civile. ART!COLO 7-OBBUGAZION! 7.1 La SocietA puO emettere obbligazioni, anche convertibili, in conform ita aile nom1e di Iegge detenninandone Je moda!itli e condizioni di collocamento. 7.2 Gli oneri reJativi all'organizzazione delle Assemblee degli obbligazionisti sono a carico della Societa che, in assenza di determinazione da parte degli obbligaziontsti, nelle forme di Legge, si fa altresi carico della remunerazione dei rappresentanti comuni, nella misura massima stabilita dal Consiglio di Amministrazione per ciascuna emissionc, tenuto canto della relativa dimensione.
TlTOLO Ill ASSEMBLEA ARTICOLO 8-DIRITTO Dl fNTERVENTO 8.1 Nel rispetto della normativa vigente gli aventi didtto di voto nell'Assemblea possono esercitarlo prima dell'Assemblea in via elettronicse previsto neU'avviso di convocazione e con le modalitii in esso precisate. 8.2 Ogni avente diritto al voto puO farsi rappresentare in Assembles., rilasdando apposita delega a persona fisica o giuridica, nei limiti di Iegge. La Societa ha facolt3. di designare per ciascuna Assemblea uno o pill soggetti ai quali gli aventi diritto possono conferire delega per Ia rappresentanza in Assemblea ai sensi della disciplina vlgente. Gli eventuali soggetti designati e le necessarie istruzioni operative sono riportati nell'avviso di convocazione della riunione. 8.3 La notifica elettronica della delega potra essere effettuata mediante utilizzo di apposita sezione del sito internet della Societa ovvcro mediante trasmisslone per pasta elettronica, secondo le modalita indicate nell'avviso di convocazione dell'Assemblea. ARTICOLO 9-POTERl 9.1 L'Assemblea, ordinaria o straordinaridelibera sulle materie ad essa espressamente riservate dalla Iegge e dal presente statuto. ,1,, ""'..., / ,.... r-,TA · --ARTICOLO 10-CONVOCAZIONE /' I , I 0.1 L'Assemblea e convocata ogni volta che il Consiglio di Amministrazione Ia creda opportuno(,., / o quando ne sia richiesta Ia convocazione ai sensi di legge, nei termini e con le modalit3. prescdt --,: dalla disciplina di Iegge e regolamentare di tempo in tempo vigente. \' -, -.., ···;,!,'/. ' 10.2 In caso di mancata costituzione in seconda convacazione, I'Assemblea straordinaria puO \ Y-riunirsi in terza convocazione. :E peraltro facolta del Consiglio di Amministrazione convocare l'Assemblea ordinaria o straordinaria in unica convocazione, come per Iegge. \,"·< · ;_::-:, ------":'---:_-·;;:: )/ "-.., ·--· c;j J I 0.3 L'Assemblea ordinaria e convocata aile condizioni di Iegge almeno una volta all'annonon oltre 180 giorni dalla chiusura dell'esercizio socvioatloe,fEavsosaredveolliebedriaaslumlleenamialte7r5i%e ddielel gcgapeietaaleutcoornizdzair,itatiosdeinsviodtoelpl'raerste2n3t6e4in, cAosmsmemab1l,ena:u/m,/e"ro- /5, del codice civile, il compimento di operazioni con parti correlate alia Societa, nei casi e con le modalita previsti dall'apposita procedura adottata dal Consiglio di Amministrazione, ai sensi della disciplina in vigore. I 0.4 L'Assemblea ordinaria e straordinaria si riunisce, anche in luogo diverse dalla sede legale, purcM in ltalia. ARTJCOLO ll - ASSEMBLEA ORDINARIA E STRAORDINARIA ll.l I quorum costitutivi e deliberativi dell'Assemblea sono previsti dalla Iegge, fatto salvo quanto previsto al successive articolo 11.2. I 1.2 Ai fini dell'adozione delle deliberazioni sulle seguenti materie, I'Assemblea delibera con il
(a) fusione e scissione (ad eccezionc delle delibere di fusione e scissione di cui al successive articolo 18.2 che rientrano nella compctenza del Consiglio di Amministrazione secondo guanto ivi previsto); trasferimento della sede legale all'estero e trasformazione scioglimento volootario; aumento o riduzione di capitate, ad eccezione {i) degli aumenti di capitate senza limitazione o esclusione del diritto di opzione deliberati in presenza di perdite nei casi di cui all'art 2447, e (ii) degli aumenti d( capitate senza limitazione o esclusione del diritto di opzione, il cui prezzo di sottoscrizione (lnclusivo del sovrapprezzo) sia almena pari a! valore della media aritmetica dei prezzi di chiusura del titolo sui mercato MTA nei sei mesi che precedono l'avviso dl convocazione dell'assemblea convocata per deHberare l'aumento di capitale) e che (x) siano al servizio di investimenti approvati dal Consiglio di Amministrazione oppure (y) siano nccessari a prevenire o rimediare Ia violazione di covenant previsti da contratti di finanziamenlo di cui Ia Societa. sia parte o situazioni di insolvenza della stessa oppure (z) siano deliberati in presenza di perdite nei casi di cui all'art. 2446; altre modifiche della statuto (ivi incluse le modi fiche del presente articolo II dello Statuto), fatta eccezione per (i) gli aumenti o riduzioni di capltale di cui alia precedente \ettera (d) esclusi da!Pambito di applicazione della maggioranza qualificata di cui al presente articolo I 1.2, (ii) le delibere rientranti nella competenza del Consiglio di Amministrazione ai sensi di quanta previsto al successive paragrafo 18.2; restando perciO intcso, per meri fini di chiarezza, che le delibere di cui a! precedente punta (i) saranno approrviuanteiocnoen-triaqul'aolrturomvdeerliibfiecraatIiavriepgroelvairsittiJd. daeIlelgagceo;slteitduzeiloibneerededlil'aaudtuonraiznzzaaz.iaocnceerdteallle'idoepnetmitazieonlai cleognitptiamrtaizcioornreeldaetei pdriemseangtgiidoirreigreilievlaavnozraia, iasnecnhsei sdtea!bli'aleftnidcoo!oun23d6iv4e,rcseomormdainIc, 1nudmi derisoc5u)s,sdioenlecoddegilcieacrgivoimlee. n(bti)i(ncd)i(cda)ti(nee)l(lt'a)vAvRisToJdCiOcoLnOvo1c2a-zPiRonEeS. !tD2.E5NIIZPAreEsiCdeOnNteDdUetZlaIOrlNunEioDneEladLoAttaVlOeRolpp12o.r1tuInfePmreissiudrcenatei fdienli Cdeolnl'soirgdliionadtoi Aanmdmamineinsttroazdieolndeiboactthiitonee fdaellleevveoctiapziroensiie, ddeef!i'nAesnsdeomnbeleiea moroddinaalirti3a. eesatcrcaeorrtdainndaorinaeeinreisureltgaotil;aplouOsvsocleggimlieernetotr.alnglmi ainntcearvneznaudtei ldPureeosidpei-nlt1esdcerlutCaotonrs!l.g1li2o.6diLAo msvmoilgniimstreanzlioondeel(lee driiucnhioi nnieafsaselemvbelecai)ripdreesiiSedoecil'eAdsissecmipbllienaatIoa dpaelrlsaoIneaggelee,tdtaalcponreislevmoetoSdtaetlutatomeadgaglioRreagnozlaamdeelnctaopditealtlee rAapsspermesbelneteataoppinrorviuantoiocnoen. 1d2e.i2ibLer'Aasdseelmi'Ablses-eam, sbuleparoorpdoisntaaridaeldePlrleasidente, clegge con il voto della maggioranza dci presenti un Segretario, anche. al di fuori degli azionisti. !2.3 Ne[le ipotesi previste dalla legge e laddove il Presidente de!l'Assemblea ne ravvisi i'esigenza, il verbale viene redatto per atto pubblico da Notaio designata dal Presidente medesimo con funzione di Segretario. 12.4 II Presidente della
Societa. TJTOLO IV ORGANl AMMINISTRATIVI E D1 CONTROLLO ARTrCOLO l3-COMPOSTZ!ONE DEL CONSIGLIO D1 AMMlNISTRAZIONE l3.l La Societa e amministrata da un Consiglio di Amministrazione com pasta da un minima dj 10 (dieci) ad un massimo di 13 (tredici) Consiglieri di cui gli esponenti del genere rneno rappresentato sono almena un terzo del totale, con arrotondamento, in case di numero frazionario, all'unita superiore nella misura in cui ciO sia richiesto inderogabilmente da Iegge o, se Ia Societa vi abbia adcrito, sia raccomandato dal Codice di Autodisciplina di Borsa Italiana S.p.A.. 13.2 II numero dei component! il Consiglio di Amministrazione e detenninato in base all'esito della votazione sulla nomina della stesso, come specificate ai successivi ruticoli da 13.9 a 13. 13. 13.3 La nomina del Consiglio di Amrninistrazione avviene nel rispetto della disciplina di Iegge e regolamentare applicabile (ivi incluso l\ collegamento con Ia lista che ottenga in Assemblea il maggior numero dei voti), su!Ia base dlliste presentate dai soci ai sensi dei successivi commi, e nel rispetto del presente Stahtto. 13.4 Tra gli amministratori nominati daii'Assemblea, un numero minima corrispondente a] minima previsto dalla disciplina di legge e regolamentare di tempo in tempo vigente deve possedere i requisiti di indipendenza stabiliti dalla disdplina di legge e regolamentare di tempo in tempo vigente. II venir meno dei requisiti di indipendenza come sopra previsti in capo ad un amministratore non ne determina Ia decadenza se i requisiti pennangono in capo al numero minima di amministratori che devdoeniospocoisscehdeehrlain. nl3o.5prOesgennitsaotociloaplius6tap, rceosnenintadriecaozcioonnecodneellrae paaliratepcriepsaezniotanzeiocnoemdpileusnsaivsaoldaeltiesntautea,o(gini)iJceanacdcideatttaezpiounOi dperellsaecnatan.drisdi aintuuranadasoplaarltiestdaeai spienngaoUdiciannedleigdgatibi,il(iitiai). lLeedliicshteiacrhaezicoonni tceonngalenoquuanliniummeedroesdimi ciaanttdeisdtaatniop,asroi totosulapeprrioopreriaa rteres,pnoenlslaabmiliitsau,r.al'iinnecsuisitceniOzasdiai rciacuhsieesdtoi iinnedleergoggiabhiliiltmiieendtei dinacloemggpeatoibsieliItaa,Snoocniecthaevli'easbisbtieanazadedreitior,erqaucicsoitmi cahnedaftoossdearloCporedsicceritdtii pAeurtloedriisscpipeltitinvaedciaBriocrhseanIotanlciahnea(Siv.p) .lAe .a,ldtreebibnofnoormaaszsiicounriarriechlaiepsrteesdeanlzlaa Ideigegnetreamdablilai ngoenrmeraitcivoasiacphpelici acbainled.idCaotindleeldgiecnheiareramzieonnoi,1vireanpeprdeespeonstaittaotosipaenrocailamsceunna cuanndteirdzaotoduelntocutarlreic, uclounmarvriotatoenrdigaumaerndtaon,teinlecacsaoradtitenruismticerhoe fprearzsioonnaalriioe,parloPfuensisti.oi nsualpiecroionrel'.in1d3i.c6aHziaonnneoddegirliittioncdalrpicrbejsednitaamremlein!iissttreazsoioltnaenteociosnotrcoilcloher,icdoapseortlii opriensssioemaletraedsoacltireitsaoecid,eslila'i.dnoonceoitm.ipaleqsusaivliafmiceanrstiectoitmoleariinddlipaezniodneintrea,papUreasesntrteagnutiaI\aIm\(/is'ura richlesta dalla disciplina regolamentare emanata dalla Comm issione Nazionale per le societa e Ia borsa. 13.7 Unitatnente a ciascuna Jista, entro i termini prcvisti dalla normativa di legge e regolamentare di tempo in tempo vigente, debbono depositarsi (i) le informazioni relative all'identita
dei criteri di Iegge e di que!!i falti propri dalla Societa. Eventuali variazioni che dovessero verificarsi fino al giorno di effertivo svolgimento delt1 Assemblea sono tempestivamente comunjcate a!la Societa. Le liste per !e quali non sono osservate le predette prcscrizioni, sono considerate come non presentate. 13.8 Ogni avente diritto at voto puO votare una sola lista e, nell'ambito del presente statuto, per "Lista Qualificata'' si intende qualsiasi lista che abbia ottenuto un numero di voti superiore al 25% del capitate della Societa con diritto di voto. 13.9 Ai fini detl'elezione del Consiglio di Amministrazione: 1) qualora, all'esito delle votazioni, risulti una sola o nessuna Lista Qualificata, si applichera quanta previsto all'articolo 13.10; 2) qualora, all'esito delle votazioni, risultino due Liste Qualificate e nessuna di tali Liste Qualificate abbia ottenuto un numcro di voti superiore al 50% del capitate della Societa con diritto di voto, si applichera quanta previsto ali'articolo iJ.l t; 3) qualora, al!'esito delle votazioni, risultino due Liste Qualificate e una di tali Liste Quali_ficate abbia ottenuto un numero di voti superiore a) 50% del capitate della Societ3 con diritto di voto, si applichera quanta previsco all'articolo 13.12; 4) qualora, a\l'esito delle votazioni, risultino tre Liste Qua!ificate, si applicher3. quanta previsto all'articolo 13.13. 13.10 Ne\ caso di cui all'articolo 13.9, punta 1)> alPelezione del Consiglio di Amministrazione si precede come segue: I) l! numero dei componenti del Consiglio di Amministrazione e pari a 13, salvo quanto previsto al successive punta 4); 2) dalla lista che ha ottenuto il maggior numero di voti sono tratti., nell'ordine progresstiOvencoomninilaqtiuianlecosonnfoormeleintacaatiqnuaelnltaolipsrteavsitsetsosaal, pl 0rcacmedmeninteisptruantotori;23).)1g3li.1a1ltNrie3l acmasmo idniisCtrLaitioarills'aorntiocotrlaott1i3d.a9l,lepuan!ttrae2l)is, taellv'eoletaztieoneeadreal!eCfoinnesiiglviootidiotAtemnumtiindiastlrlaezliiostneevseinpgroenceoddeivciosmi seuscecgeusesl:vla)milennutempeeror nduemi ceorimipnotenreinptriodgerleCssoivnis.igIlqiouodzlieAnmtimcoinsiisotrtatezniauntieseonpaorai sase1g3n, astailvporoqgureasnstiavpamreevnistteoaailcsauncdciedsastiivdeipcuianstcau3n)a; 2di) tdaalicliiasstceu, nscacLonisdtao Ql'ouradliinflecadtaallseosntoestsreatrtii,spneetltli'ovardminenetperporgerveissstiov.eIcqounoizlieqnutailceossolnaotterilbeunictaitaiincealnladliidsatatisdteelslseav, 5araiemlmistienissotrnaotodfiis; p3o)sgtiliinalutrnia3uanmicmaignriastdruaatotoririsaodnoecnreosm.ciennattel .inRbisausletaanoquealentttai pcorelovriastochael hpaunnn.taoo3ttdeenluptoreicqeudoenzitecnptiunptiaU1e3l.e1v0a;ti4.)Nfaelttcoassaolvino cquuiapntilal pcraenvdiisdtoatai galbibairatnicooolitt1e3n.u1t4oeto13st.e1s5sochqeusoezgieunotneo, ,rinseulltcaaesloetdtol aislsceannzdalddaitaoltdreellliastleis,tia\ cnhuemneoron daebibciaomanpcoonraenetliedtteot aClcounnsigamliomdini iAstmramtoirnei.sItrnazsuiobnoerdeinpea,risiap1r0ecneodme ianvatoitianzione di ballottaggio da parte dell'Assemblea, risultanda eletto il candidate (tra quelli a parita di quoziente tra dette liste) che ottenga piU voti 4) falto salvo quanto previsto agli articoli 13.14 e l3.15 che seguono, in caso di assenza di altre liste, il numero dei componenti del Consiglio di Amministrazione e pari a
conformit3. a quanto previsto a[ precedente punta 2). I 3.!2 Nel case di cui all'articolo 13.9, punta 3), all'clczione del Consiglio di Amministrazione si precede come segue: 1) il numero dei componenti del Consiglio di Arnministrazione e pari a 13, salvo quanta previsto al successiva punta 5); 2) dal!a Lista Qua!ificata che ha ottenuto il maggior numero di voti sono tratti, ncl!'ordine progressive con il quale s.ono elencati nella lista stessa, I 0 amministratori; 3) dalla seconda Lista Qualificata sono tratti, neil'ordine progressive con il quale sono e/encati nella lista stessa, 2 amministratori; 4) l'altro amministratore e il prima candidato della pill votata delle a[[re liste; 5) fatto salvo quanta previsto agli a1ticoli 13.!4 e 13.15 che seguono, ne\ caso di assenza di altre listc, il numero dei componenti del Consiglio di Amministrazione e. pari a 12 nominal! in conformitlt a quanto previsto ai precedenti punti 2) e 3). 13.l3 Nel caso di cui all'articolo 13.9, punta 4), al!'elezlone del Consiglio di Amministrazionc si procede come segue: !) i\ numcro dci componentl del Consiglio dl Amministrazionc e pari a !3, salvo quanta previsto al successive punta 4); 2) da ciascuna Lista Qualificata sono tratti, nell'ordine progressive con il quale sono elencati nella lista stessa, 4 amministratori; 3) l'altro amministratore e 1l primo candidate della pil1 votata delle altre liste; 4) fatto salvo quanta previsto afl'articolo 13.14 che segue, in caso di assenza di altre liste, il numero dei component! del Consiglio di Amministrazione e pari dai1in2dniopemnidneantizian, PcoAnsfsoenmnbitl8eaanqoumanintoerparecvoinstJoeaml apgregcieodraennztee pdui nIetagg2e).u1n3.n1u4mQeuroaldoi raam[amcinoimstpraotsoirziiodnoetadtieWdeioprgreadneattciorlelqeugiisai!tei pchereqduearnivtai dnaeicpersescaeridaeantfiaarerliscioclhi edaris1u3l.t1i0riaspl3et.lt3atnooinl ninumcluerdoa,mtrianigmliaadmi maminmisitnraisttorraitorirsiumltautniintiodmeiinraetqi,uiilsintiumdieirnodmipiennidmeanzdai apmremviisntoistdraatlloaridmisucinpiltiindaedi ireIeqgugiseitei drei.ignodfiapmenednetanrzeadpirteevmisptiodian!lteamdpisocivpilgineantdei, Iinegsgoesteitruezgioonlaemdeengtlairaemdml tienmisptroationrtietmrapttoi dvaigllcenltics,tePumletinmooveolteattteo(ddiivciearssceudnaaulinsataLcihsteaaQbubaialiefilceatttoa)anlmoneninaduinpeanmdemnitni,isotvraetovreeneecshieannoo,naapbabritaireeldetatlo!anleipstpaumreeunno avmotmatian.islntraatsosreenzmaudniiLliostcdediivreeqrsueisditaildlei LinidstiepeQnudaelnitziac-aatep,aIr'Atirsesedmalblalelaisntaompiilnlevnaltactoan-lee smoastgigtuioitroa,ntzeenudtioIecgagnetoudnenllu'omrdeirnoed. idaimelmenicnaisztiroantoerdi edioctaatniddiediaptireindelitstitar,edqaulispirtiimpearcqaunadnidtaatneencoesnsaerleiattao fdaerlelasimcehdeersiismualtilirsitsapecthteatloi iplonsusemgegrao. Nmeinlicmasaodiinacmumi dinailsltaralitsotrai pmilulnviotitadteai srieaqnuoissittaitdiitriantdtiipdeinecdienamzampirneivsitsratotodrai,llnaedssisucniopldineai qduiaIleigmgeuneirtoegdoeliarmeqenutiasirtei ddii itenmdippoenidnetnezmap, oglvi iugletinmtei edui epuelncttiti1d3a.1t0a(l4e.),li1s3ta.1s1a(n4o),s1o3s.t1it2u(i5ti), etc1m3n.1o3c(a4n)tnoodnetlrl'oovredriannendoi aeplepnlcicaazzioionneed. e1i3c.1a5ndNidealltai imnilsiustraa, idnaci upiriIma icodmuepcoasnizdiiodnaetidneolln'oerlgeatntiodseilalasotngegdeetstaimalal'loibstbalicghoedlii peqoussileigbgriaantor.aQualora Ia previstone che precede sia inapplicabile o comunque non consenta di far si che risulti rispettato il numero minima di amministratori muniti dei requisiti
generi, qualora Ia composizione dell'organo coltegiale che derivi dai precedenti articoli da l3.10 a l3.l3 non consenta il rispetto del!'equilibrio tra igeneri, tenuto canto dell'ordine di elencaziane dei candidati in lista, gli u!timi eletti del genere pili rappresentato di ciascuna lista da cui siano stati tratti almena quattro amministratori sono sostitulti, nel numero necessaria ad assicurare l'ottemperanza del rispetto del\'equilibrio di genere, dai primi candidati non eletti della stessa lista del genere meno rappresentato. In mancanza, aiFinterno delle liste da cui siano stati tratti almena quattro amministratori, di candidati del genere meno rappresentato in numero sufficiente a procedere alia sostituzione, oppure in mancanza di liste da cui siano stati tratti almena quattro amministratori. 1' Assemblea integra l'organo con le maggioranze di Iegge. assicurando i! soddisfacimento del requisite, eventualrnente disapplicando i punti 13.10(4), 13.11(4) e 13.12(5), ovvero-e per l'eventuale reslduo-in sostituzione degli ultimi eletti de! gen_ere pill rappresentato tratti dalla I ista pili votata. 13.16 Per Ia nomina degli amministratori, per qualsiasi ragione non nominati ai sensi del procedimento qui previsto, I 'Assemblea delibera con le maggioranze di legge, assicurando il rispetto dei requisiti di Iegge e Statuto in materia di composizione dell'organo collegiale. l3.l7 noSme nineal cdoerlsnoudoevlol'eCsoenrcsiizgiloiovdeingAomnomainmistarnaczaioreneu.nQouoaploilrlaaiml Cmoinnsisigtrlaiotodrii1Afmattmoisnailsvtroazqiuoannetanopnrepvoisstsoaaplrsouccecdeesrseivaeliaarctiocooplotaz1i3o.n1e8,dseilpprroivmvoedoedceoimperismegiucea:n1d)idqautailnooranveleentgtiatnroatatimdaalnlacamreeduensoimoapiLUisatamQmuinaliisftircaattoarldtaractutii dsiaaunnoasLtaitsittaraQttuiaglliifiacmatma idnaiscturaitsoirai scteastsoattriadttaoll-aincsaerdicead(iinnoasmseinnazadedli Ccaonndsiidgalitoi ndoi nAemlemttiiniinstnrauzmioenroe-suunffniucmienerteoodiaavmenmtiini imsterdateosriimniorneqsuuipseitriiodrieinadciipneqnudee,nlz'aam(me/oindisitrgaetnoerereo) dgeligalimammimniisntirsattroartiocriescseastsiastai)r:a(nin) oilsCoostnitsuigitliiomdeidAiamntrencinoiosptrtaazziioonneepdoatrpaarptreodceeldCeroenasiigsleinosdi idAelmpmunintois4tr)aczhioenseegcuone qiluparloimraasoi tirpatrtiimdiicuannadLidiasttiadQeullaali·f·icmaetadedsaimcuaiLsiiastnaoQsutaatliiftricaatttia-icnhseedneondisinaonmoisntaatdi eelleCttoinisnigselidoeddliAnmommiinnaisdtrealzCioonnesi-gfilnioodai qAumatmtroinaismtrmazinioinster-asteorvi;e(niie) ssiiaanpop-elicchheer,aqiulasiuocrcaecsisOivesiapurincthoie3s)toqupaelrorilarsiisptreattttoi ddei iurneaqLuiissittai Qdiuianldifiipceantadednazcau(ies/oiandoi gsetanteirter)atptri-eisncrsiettdieddaiHnaodmiisncaipdlienlaCdoinlseiggglieoedrieAgomlammineinsttararezi{oonea-nccinhequdealalme rmeginailsetrdaitoarui;to2d)isqcuiaplloinraa,vceonngadnfeoriarnmeanntocaarlel'euqnuoilaibpriilot admi gmeinneirset)radtoi rtlemtraptotiidnateumnapoLivsitgaeQntuea,laifbicbaiatanodai mcueidseisainmoisrteaqtiutirsaittitid-iininsdedipeednidnenozmain(ea/odedliCgoennseirgel)iodedgiliAammmmijnniissttrraaztioorniece-dssieactii.aQmumalionriast!raat.oprrii,mil.aCaosnsseimglbioledaiuAtimlemnionnisctroanzfieonnnei pnoetlrlaa pcarorivcvaegdleiraemamHaincisotorapttoarziioconseldceoionputaotvi,i la'imntmerioniCstorantsoigriliaoi ssieninstiednedWerirludti.m23is8s6iodnealricoo,dciocne ccievsislaez(igoanreandeteilnadocaarlilc'iancteornnoefdfeetltoCodnalsimgloiomdeni tAaminmciuniisit1ra·zciaonnseigilliorisdpieAttmo mdeiinrisetqruazjsioitni edisainndlispteantederinczoastei/touldtoi gpeenr enroempirneascarsitsteimdabilleaardei,sceipglliinaamdm11ineigsgtreateorreigdoolvarmanennotarperodv[vteedmepreo ainctoenmvpoocavriegle'anstsee, movbvleearopaenr clahe dalle regale di autodisciplina con riferimento aWequiHbrio di genere), purche Ia nomina degli stessi sia approvata dal Conslgtio di Amministrazione con it voto favorevole di almena sei amministratori non cessati tratti dalla predetta Lista Qualificata o che abbiano in precedenza sostituito amministratori tratti dalla medesima lista secondo quanta indicato
al presentc pun to 2). Qua/ora Ia prima assemblea utile non confenni nella carica gli amministratori cost cooptati ai sensi del present.e punta 2), l'intero Consiglio si intenderil dimissionario, con cessazione della carica con effetto da! rnomento in cui it Consiglio di Amministrazione sara state ricostituito per nomina assemb!eare, e g!i mnministratori dovranno provvedere a convocare \'assemblea per Ia nomina del nuovo Consiglio di Amministrazione-; 3) qua lora vengano a mancare uno o pill amministratori tratti da una Lista Qualificata da cui siano stati tratli - in sede di nom ina del Consiglio di Amministrazione cinque o dieci amministrawri e non si sia potuto dare \uogo alia sostituzione ai sensi dei precedenti punti I) e 2), l'intero Consiglio si intended. dimissionario, con ccssa:zionc della carica con effetto dal rnomento in cui il Consiglio di Amministrazione sara stato ricostituito per nomina assemblearc, e gli amministratori non cessati dovranno provvedere a convocarc l'assemblea per Ia nomina del nuovo Cm1siglio di Amministrazione; 4) qual01·a vengano a mancare uno o piit arnministratorl tratti da una lista diversa da una Lista Qualificata., il Consiglio di Amministrazione potr3 provvedere alia sostituzione degli ammlnistratori cessati ai sensi dell'art. :2386 del codice civile., con deliberazione assunta a rnaggioranza asso!uta dei votanti. Qualora Ia prima assemblea utile non confermi nella carica gli amministratori cosi cooptati, Ia stcssa assemblea provvederi alia nomina dei sostituti con deliberazione assunta con le maggioranze Ji Iegge. 13.18 Res.ta fermo che, ogniqualvolta vengano a mancarc almena cinque componenti del Consiglio di Amministrazione nominati per de!iberazionAc masmseimnibslteraazreio(nievipiun6cleulseigggleiraemumniSneisgtrreattaorriiorisscuellttaotiacnocnhfeeatmWaitnifnueolrlai dceairiscuaopi emredmelbibrLerAazRioTnIcCaOsLseOm1b5le-aAreDiUnNseAgNuiZtoEaDsEoLstiCtuOziNonSeIGaiLsIeOns1i5d.1elIIprPerceesdideenntetem, oticcohlion1e3f.a17le),vpeecri,qcuoanlsvioacsiacial uCsoanosirgalgioiodnieA, lm'inmteinroisCtraoznisoingleioprseisisnoteInadseerdi1e.ddeilmlaisSsioocnieatraioo, caoltnrocvees,sdazl ipornoeprdiealtianiczaiaritcivaacconqueaffnedltoondealrimceovma ednotmo ainndcauiscilriCttodnasaiglmlioendai uAnmqmuiinntiostrdaeziioCnoenssiagdl.iesrtiation rciacroisctaitouidtoaipSeirnndoamcii.n1a5a.2ssIeImPbrelesaidree,netcgc!oi mamunmicinaipstrreavtoenritinvoanmceenslseagtilidaorvgroamnneontpiroogvgveetdtoerdeiatrcaottnavzoiocnareenle'alscsoermsobldcealplaerriIuannioonmeicnoandseillianrueoevoprCoovnvseidgeliaofidini Acbme madinegisutraateziionnfeo.rmARazTio!CniOsLu!Ole1m4-aPteRrEieSdIaDesEaNmTinEa-rVeIvCeEngPaRnoESfofDrnEitNe TaEtu-SttiEiGcRoEnsTigAlRieIrOi, t1e4n.u1toIIcCanotnosidgellioledciirAcomsrtuaninziestdraezl icoanseo.elegge fra i propri membri un Presidente-ave l'Assemblea non vi abbia giU provveduto-e puC nominare uno o pill Vice Presidenti. 14.2 In caso di assenza o di impedimenta del Presidente lo sostituisce il Vice Presidente pil1 anzi.ano per eta, se nominata, o l'Amminislratorc Delegato se nominato, oppure il consigliere. pill anziano per etit. 14.3 II Consiglio di
!5.3 La convocazione viene fatta con mezzi idonei alia luce del tempo di prenvviso, di rego!a almena 5 (cinque) giorni prima dell'adunanza, salvo i ca'ii d 1urgenza nei quali va comunque effettuata con almena 12 (dodici) ore di anticipo. Del!a convocazione viene neflo stesso termine dato avviso ai Sindaci. 15.4 La partecipazione aile riunioni consiliari puO avvenire-qualora il Presidente o clli ne fa le veci nc accerti la nccessit8.-mediante mczzi di telecomunicazione che cansentano Ia partecipazione a! dibattito e Ia pariti± informativa di tutti g!i intervenuti. ARTICOLO 16-VALIDITA E VERBALIZZAZIONE DELLE DELIBERAZIONI CONSILIARI 16.1 Per !a validita detle deliberazioni del Consiglio di Amministrazione occorreranno [a presenza della maggiaranza degli Amministratori in carica ed il voto favorevole deUa maggioranza deg!i Amministratori intervenuti, fatto salvo quanta previsto ai successivi articoli 16.3 e 16.4. 16.2 Le deliberazioni del Consiglio di Amministrazione saranno verbalizzate nel libra delle deliberazioni del Consiglio da tenere e conservare ai sensi dell'art. 2421, n. 4, del cod ice civile sottoscritte da/ Presidente e dal Segretario o da un Notaio. Quando sia prescritto daHa Iegge o il Presidente lo ritenga opportune, le deliberazioni saranno verbalizzate da un Notaio scelto dal Presidente del Consiglio di Amministrazione. 16.3 Per Ia validita delle deliberazioni del Consiglio di Amministrazione sulle materie di cui al successive articolo 16.4 occorreril Ia presenza e H voto favorevole di: (a) almena 9 amministratori qualora U Consiglio di Amministrazione sia sstuatpoernioomreinaaEtouraoi s5emnsiilidoenlippuenr ctoia1sc3u.1n0a oopppeurarezidoenlep; ustniptuola1z3i.oinIeodpipnuuroevdieclornutnrtaotti13d.i1f2tn;aanlmzieanmae8ntaomomcionmisutrnaqtoureiaqsusau[nozriaoinleCdoinnsuigolvioi ddeibAitmi dmi innaitsutrraazfiionnaenszliaarsitaatcohenodmetienramtainaiinoseunns.iindcerlepmuennttoo1d3e.l1r3a.p(pbo)r1to6.d4eSboitnoo/psaotrgigmeottneioainleetmtoagrigsipoertatonzaeqquuaanlitoficiantdeicdaitecuniea!lppiraen<o:einddeunstetriaarlteicaoplopr1o6v.a3toleddaellCiboenrsaizgiolinoiddieAl CmomnisnigisltiroazdiioAnemomvivneirsotrauznioinncerseumlleenstoegdueelnl'itni dmeabtietarime:eanptoproolvtraezi6onvoeletemI'oEdBifIiTchDeAd(idbeubdigtoe,t peaptriiamnioniniodunsettrtioalei,divEiBinITclDusAi iqpuiaaini ioogpgeertatotivdieldliadpeiitt'1agrleicoernetleatdiivsicalogsliurinevac!smtimerecnattio,)i;laisptpinroi vparezziozinenodnic"hcCapiepxi"aoniddii"eofpfeicxi"enptearmveanlotoreanconmuap(leespseirvoIacruidrnuuzliaotnoesduebi acsoestainonpuearlaetisvuipneorimorineadei oreltvreocila1(i0v%i inricslpuestatol'aagttlriibimuzpioornte[ ienidaicraetvionceai dpeiainrei liantdivuistproiatelirie) bduedUg'eAt mapmprinovisatmti;toarpepDroevlaezgiaotnoeeddiepliaPnrei sdiidsetnotcekd-oelptCioonnsoigal!itoridmi Aecmcamniinsmistirodiziionnccenctidveatzeinonnienadzcigolnieardneml rienliasttirvaetocriome/opednisdoir(iigmepnrte!gciould).icraetsopoilncsoabnifleirti3msetrnattoegaiicchoen;s(iag)li(ebr)i (dci)p(odt)e(rei )p(efr)specificj affari od operazioni) nonch6 nomina e revoca (e determinazione del re!ativi poteri) di un Comitate Esecutivo; acquisto o cessione di partecipazioni, aziende o rami d1 azienda, diritti reali im.mobi!iari e altri beni costituenti immobilizzazioni di valore
(g) approvazione di pmposte al!'assemblea dei soci su materic soggette al!'appli:azione del quorum deliberativo assemblearc rafforzato di cui a!l'articolo I I .2; com pimento di operazioni, o n10difica di contratti, con parti correlate alla Societa di importo superiorc a Euro 500.000 per singo!a operazione od opcrazioni tra loro collegate, con esclusione in ogni casa, a pt·escindere dall'importo, dell'esercizio, della rinuncia o della transazione di qualunque azione (giudizia[e a stragiudiziale) tra Ia Socleta e parti correlate at!a stessa Societ3; approvazione delle deliberazioni di fusione per incorporazione in INWJT S.p.A. delle societA di cui fNW[T S.p.A. possegga almena il 90% delle azioni o quote ed il trasferimento della sede della Soc leta all 'interne del territorio nazionale, previste all'articolo I 8.2 del presente statuto; nomina di CFO e Direttorc Gencralc. (h) (i) (j) ART!COLO 17-COPIE ED ESTRA TTl 17.1 G!i estratti dal libra dei verbali delle adunanze consiHari, firmati dal Presidente o da due anuninistratori e controfinnati dal Segretario, fan no piena prova. ART!COLO 18-POTERI DEL CONSIGLIO-DELEGHE 18.1 AI Consiglio di Amministrazione spetta la gestione della SocietA, essendo di sua compctenza tutto ciO che per Iegge o per Statuto non e. espressamente riservato all' Assernblea. 18.1 Nei limiti di Iegge, alia competenza del Consiglio di Amministrazione sono attribuite (e pertanto non sono delegabili): (i) le determinazioni di fusione per incorporazione in INWIT S.p.A. o di scissione a favore di IN WIT S.p.A. delle socieci di cui INWIT S.p.A. passegga almena il 90% de][e azioni o quote; (ii) Ia riduzione del capitale sociale in caso di recesso del socioA; (miimi)iJn'aisdtreagzuiaomneen-tpoedreolploerSatzaitountoi daedteisrmpoisniaztieoneipneorrumnaatidvueriantadelirmogitaabtialid;i(itvem) iplotr.a1s8fe.4rirllneCnotnosdigelliloa pseudOe cdoeslltiatuSioreciaeltapraolFpirniotcirnntocrdneol Creormritiotartioi cnoanzifounnazlieo,nniacnocnhseull'tiisvteituezpioronpeoosiItaivseo,pdperteesrsni1oinneanddiosendeileseactotrnidbaurziieo;n(ive) ll'eesf.aecroclitz3io. ,1I8a.5rilnluCnocniasiegHIaotrdainAsamzimoinneisdtriaqzuioalnuennqoume ainzaioinledi(rgiiguednitzeiaplreeopossttroagailuladirzeidaalez)iotrnaeIdaeSiodcoiceutameenplairctiocnotarrbe[llaitseoacliieatasrtie,spsraeSvoiacipeatrile,rpeeorbibmlipgoarttoirsiuopdeerlioCrioalleEguiraoS2in0d0a.0c0a0le,(peenreslinrgisopleotteosedreclilzeiod,isrpinousinzciioanoi dtrealnpsraezsieonntee,Sotvavtuetroo. pSearlvooperreavzoicoanipceor !gleiugsattae)c.aJus8a.3, sPeenrtiJt'oesiel cpuazreiorenededlelCleolplreogpiariSeidnedlaibcaelrea,ziilondiireigpeenrtelapgreepstoisotnoeasloiaciraeldeaizliConoensdiegiltdoo,cnuemll'eonstsiecrovaatnazbaildi esiolciimetiatiridsicIaedgegeinesineemleriaslpCetotonsdieglliporedsieAntme mStiantiusttroa(ziivoiniencclhuesololehadinpomosiinzaiotan.i di cui all' articolo 16.4), puo: istituire un Cornitato Esecutivo, detem1inandone i poteri ed il numero dei componenti; delegare gli opportuni poteri, detenninando i limiti della delega ad uno o pill Amministratori; nominare uno o pilL Direttori Generati, determinandone le attribuzioni e le facolt3:; nominare mandatari - anche in seno al Consiglio di
18.6 II dirigente preposto al!a redazione dei documenli contabili societarl deve essere esperto in materia di amministrazione, finanza e conlrol!o e possedere i requisiti di onorabi!it<i stabi!iti per gli amministratori. La perdita dei requisiti comporta Ia decadenza da!la carica, che deve essere dichiarata dal Consiglio di Ammlnistrazione entro trenta giorni da!la conoscenza del difetto. ARTfCOLO 19-INFORMATIVA DEGLI ORGAN I DELEGATI 19.1 Gli organi delegati riferiscono al Consiglio di Amministra:zione e a! CnUegio Sindacale sull'attivita svolta, sul generale andamento della gestione, su!la sua prevedibile evoluzlone e suite operazioni di maggior rilievo econornico, finanziario e patrimoniale, cffettuate dalla Societa o dn!le societa controllate; in particolare riferiscono sulle operazioni nelle quali essi abbiano un interesse, per conto proprio o di terzi, o che siano influenzate dal soggetto che esercita l'attivit3 di direzione e coordinamento, ave esistente. La comunicazione viene effettuata ternpestivarnente e comunque con periodictta almena trimestra!e, in occasione delle riunioni ovvero per iscritto. ARTI.COLO 20-RAPPRESENTANZA LEGALE DELLA SOCI.ETA 20.1 La rappresentanza della Societa, di fronte ai ter1.i e in giudizio, spetta al Presidente e, in caso di sua assenza o impedimenta, al Vice Presidente_, se nominata; spettano altresi disgiuntamente a ciascuno degli Amministratori delegati. 20.2 1 legali rappresentanti di cui al comma precedente hanna facolti di conferire poteri di rappresentanza della Societ31 anche in sede processuale, con facolt\ di subdelega. ART!COLO 21-COM PENS!E RlMBORSO SPESE DEI CONSIGUERI 21.! I consiglieri hanno diritto a! rirnborso delle spese incontrate per l'esercizio dqeullaenltooraprfeuvnizsitoondi.alLD'AescsreemtabMleainoisrtdriondariiaGprauzOiadeeGlibiuesratirzeiaindoelltr3e0umn acrozmop2e0n0s0ona.n1n6u2a,learat.fa1v, ocroemdme(aC3o, nsisicgolinosiddieAramnomsitnriestttraamzieonntee catotsint ecnotmi ae qdueetellnindineallraeSuonciimetpi loertmoactoemriep!eedssiivseottpoerri !dai raettmivuint.ei rcaoznionnecssdi iotuintteiregnlitiaarnWmaitntiivstirta8t.osrviionlctaludsai lqlaueSlloiciinevtieestditii ceuliipaallrt'oicgoglaetrtiocasoriccihael,eT. 2al2e.3coLmapneonmsoin,aundaelvCooltlalefgisisaaStoin, driamcaa!neeaivnvviaerniaetoneflinroispacdttiovedresalladedcisisciiopnliendaedlli'AIesgsgeemeblreeag.oAlaRmTeInCtaOreLaOpp2l2ic-CalO1iLleL,EsuGlIlaObSaIsNeDdiAiiCstAeLpEre2se2n.1taJtel CdaoiUseogciio. 2S2in.4daOcganlei esoccoiomppuoOstoprdeas3en(ttarree) oSicnodnaccoi rerfefrecttaivliia(pdriecsueinatalmzioennae udni ouneaessoploanleisnttae edeolggneincearnedmideanteo rappresentato, nella misura in cui ciO sia richiesto inderogabilmente da legge o, se Ia Societa vi abbia aderito, sia raccomandato dal Cod ice di Autodisciplina di Borsa ltaliana S.p.A.). L'Assemblea nomina altresl 2 (due) Sindaci supplenti (uno per ciascun genere nella misura in cui ciO sia richiesto inderogabilmente da legge o raccomandato dal Codice di Autodisciplina di Borsa [taliana S.p.A.). 22.2 Ai fini di
puO presentarsi in una sola !ista a pcna di ineleggibilita. 22.5 Hanna diritto di presentare !e liste so!tanto i soci che, da soli o insieme ad aitri soci, siano comp!cssivamente titolarl di azioni rappresentanti Ia misura riclliesta dal!a discipHna regolamentare emanata da!la Commissione Nazionale per le societa e Ia borsa. 22.6 Unltamente a ciascuna lista, entro i termini previsti dalla normativa di Iegge e regolamenlare di tempo in tempo vigente, debbono altresi depositarsi (i) le infonnazioni relative a!l'identita dei soci che hanna presentato Ia lista, con l'indicazione della partecipazione complessiva detenuta, (ii) !e accettazioni della candidatura da parte dei singoli candidati; (iii) le dichiarazioni con le quali I medesimi attestano, sotto (a propria responsabilit3.._ l'inesistenza di cause di ineleggibilit3. e di incompatibi!itil., nonch6 l'esistenza dei requisiti prescritti dalla disciplina, anche regolamentarc, applicabile e dallo Statuto sociale e (iv) le altre informazioni richieste da Iegge. 22.7 Con le dichiarazioni viene depositato per ciascun candidate llll curriculum vitae riguardante le carattcristiche personali e professionali, con J'indicazione degli incarichi di amministrazione c conlrollo ricoperti presso altre societa. La lista per Ia quale non sono osservate le statuizioni di cui sopra e considerata come non presentata. 22.8 Eventuali variazioni che dovcssero vcrificarsi fino al giorno di effettivo svolgimento dell' Assemblea so no tempestivamente comunicate alia Societa. 22.9 Le liste si articolano in due sezioni: una peri candidati aliaSicnadriaccaodsiuSpipnldeancteoeef(fiei)ttdivaollae sle'aclotrnadpaelriisctaanpdiiirdvatoitaaUtaa, sceacroicnadodil'Soirnddinaccodasullpapslteensstea.pLrcevliisstteo,cshoennoetWrauttniaI,(nuenl)l'aSlitnradaocoineefnfetrttaimvobeedleIs(euzni)onSiincdoancteonsguapnpoleunnten;u2m) eqruoaldoircarlul'1edsiidtoatdiepllaerivootsauzpioerniiorriesualttrineoddebubeoLniostaesQsiucualriaJriecaltaepcrenseesnszuanainddietattlai LseizstieonQeudailiefnictaratemabbibiiageonteterni,uctoosui nchneumi ceamnddidi avtoitdieslugpeenrieorreemale5n0o%rapdpelrecsaepnittaatloe dsiealnlaoSaolmcieentaocuonntderirziottodedlitvotoatloe,,(ci)ondaanci·aostocunndaamLeisnttaoQ, iunacliafsicoadtai,nsuemcoenrodofrla'ozriodninaeridoa, lalall'sutneists8a. psurepveirsitoor,es.oTnloptrriamttai dI e(ui cna)nSdiinddaaticodiecffiaetstciuvnoaesdeIzi(ounne) vSiienndeaciondsiuvpidpuleantetetrea(iiir)edvaislloariteterzgaalliisistacrpititui vneoltla'taap,psoesciotendreogli'sotrrdoincehedaalblbaisatneosseaseprrceivtaislotol,'aetttirvaitttao dl i(urenv)iSsiionndeacleogeaflfeetdteivioc;oJn)tiqpuearlourna,paelrli'eosdiotondoenllienvfeortiaozrieoanit,rreisaunlntini.o2d2u.1e0LOisgteniQauvaelinfitecadteiriettuonaaldviottaolipLuOistevoQtauraeliufincaatseoalabbliisatao.t2te2n.1u1toAu!nl'emlenznieornoeddievloCtiolsluepgeiorioSricnda!ac5a0l%e sdi eplroccaepditealceodmeellaseSgoucei,efte3r.mcoonildriirsitpteottdoi dveoltloa,d(ii)sc<ip.llailnlaa dLiisIteagQgeuealr[efigcoaltaamcehnetahraeoitnteonrudtioneilaml caoglglieogranmuemnetorocodni vIaotlii,sstaeccol1nedootlt'eonrdgianeindAa!slsacsmtebslseaapilremvaisgtgoi,osronnuomtreartoti d2e(idvuoet)i:SIi)nqduaaclioerfaf,eattlilv'eiseitdoId(eulnle) vSointadzaicoonis,urpispullctni tuenea (sioi)ladoallnaeLssiustnaaILufista Qualificata, (i) dalla lista che ha ottcnuto il maggior numero dei voti sono tratti, nell'ordine progressive con il quale sono elencati nella lista stessa, due 2 (due) Sindaci effettivi ed I (un)
Qualificata che risulta essere Ia seconda Jista pil1 votata, secondo l'ordine da!!a stessa previsto, sono tratti I (un) Sindaco effettivo ed I (un) Sindaco supplente; 4) qua!ora, all'esito delle votazioni, risultino tre Liste Qualificate, (i) dalla Lista Qualificata pill votata sono tratti 1 (un) Sindaco effettivo ed I (un) Sindaco supplente, (ii) da!la seconda Lista Qualificata piu votata sono tratti I (un) Sindaco effettivo ed I (un) Sindaco supplente, e (iii) dalla terza Lista Qualificata e tratto I (un) Sindaco effettivo. Nella misura in cui Ia composizione dell'organo sia soggetta all'obbligo di equilibria tra generi, qua lora la composizione del!'organo collegiate o della categoria dei Sindaci supplenti che ne derivi non consenta il rispetto dell'equilibrio tra i generi, tenuto con to delloro ordine di elencazione nella rispettiva sezione, il secondo del generc pil1 rappresentato eletto datla lista pill votata decade per assicurare \'ottemperanza al requisite, ed e sostituito dal prima candidato non eletto della stessa lista e della stessa sezione del genere meno rappresentato. In assenza di candidati del genere meno rappresentato aWinterno della sezione rilevante della predetta lista, !' Assemblea nomina il Sindaco effettivo o Supplente mancante con le maggioranze di Iegge, assicurando il soddisfacimento del requisite nel rispetto delle disposizion( di Iegge. 22.12 Inominata Presidente del Collegia Sindacale il componente eftCttivo tratto dalla lista meno volata da cui e stato tratto un componente effettivo. 22.13 -Per Ia nomina dei Sindaci, per qua!siasi ragione non nominati ai sensi del procedimento qui previsto, l'Assemb!ea delibera con le maggioranze di Iegge, assicurando il rispetto dei requisiti di Iegge e Statuto in materia di codmupeo. s2i2zi.1o6neLdaeplla'ortregcainpoazcioolnleegaiialleereiudneilolanicdaetelgCoorlialedgeiai SSiinnddaaccialseupppul6enatviv. e2n2i.r1e4-qinuacla0s1o·adiilcPersessaizdieonnteednieuanccSetnrtdi.Iaaconetcraetstsoitdi a- umneadiiiasntatesmubeeznztirad,i pteelreqcoumanutaniacpapzlioicnaebiclheeecfocnnsneontiatnriosp!aetptoardteeciirpeaqzuilosnitei dali dIeibgagtetietodei slataptuatroitaininmfoantenraiativdai cdoimtupttoisgizliioinnteedrveelln'ourtgi.a2n2a.1so7cIinalcea, silosduipipmlepnetde[mtraerntotoddaelllaPmreesdidcesinmtea, Iliastsaosdtaitcuuisicee sitlaStointdraatctoo eilffSeitntidvaocopicUesasnaztoia.nLoapneormetiAna. 2d2i.S1i8ndLaacricpveirsilo'innetelgergaazlieondeeidceolnCtioelleegseiarcSitiantdaa,caailseeanissi ednesliledaelplp'alritc.a2b4il0i dl idseplocsoizdioicnei dciivIielgegeed, edlaibuenraatsaodcaielit'iAdsisreemvibslieoanae rlengagalgeioarbainliztaataasasiosluentasiddeii Iveogtgane.tiTeITcoOmLuOnVquBeInLeAl NrisCpJeOttoAdReTi IrCeqOuLisOiti2d3i-ICeHggJeUeSUdiRsAtatEuStoE.R22C.!1Z5JOPreSvOiaCc!AomLuEn-RicIaPzAioRneTOa! UPrTeIsLidIente del Consiglio di Amministrazione, il Co!legio Sindacale puO convocare, ai sensi di Iegge, l'Assemblea e il Consiglio di Amministrazione o ii Comitato Esecutivo. Detto potere di convocazione puG essere esercitato individual mente da ciascun Sindaco a eccezione del potere di convocare I'Assemblea, che puO essere esercitato da un numero di Sindaci non inferiore a
23.1 L'esercizio sociale si chiude al3 i dicembre di ogni anna. 23.2 Dagli utili netti risultanti da1 bilancio deve essere dedotto il 5% (cinque per cento) degli stessi da accantonare a riserva legale, sinche questa abbia raggiunto l 'arrtmontare pari a! quinto del capitalc sociale. 23.3 II Consiglio di Amministrazione pu6, durante il corso deil'esercizio, distribuire agli azionisti acconti sul dividendo nel rispetto delle disposizioni di Iegge in materia. ) 23.4 l dividendi non riscossi nel termine di cinque anni dal giorno della lora esigibi!ita si intendono prescritti a favore della Societa. TITOLOVI SCIOGLI!vlENTO ARTlCOLO 24-LIQUIDATORl 24.1 In case di scioglimento della Societit, l'Assemblea determina lc modalita della liquidazione e nomina uno o piii Iiquidatori, fissandone poteri e compensi nei limiti di legge. TITOLO 'v11 DISPOSIZIONI GENERAU ARTICOLO 25-DOM1CILIAZIONE DEGLI AZIONISTI-FORO CONVENZIONALE 25.1 ll domicilio degli azionisti nei confronti della Societa si intende eletto, a tutti gli effetti di legge, presso il domicilio risuJtante dal Libro Soci. 25.2 Nel rispetto delle disposizioni di legge in materia, tutte le comestazioni fra gli azionisti e !a Societa sono decise dall'Autorit3. Giudiziaria nella cui circoscrizione ha sede legale Ia Societa. ART!COLO-RlNVIO 26.1 Per tutto quanto none disposto dal presente Statuto si applicano le disposizioni di legge.
Allegato "C" al n. 11882/6153di rep. STATUTO della "lnfrastruttnre Wireless Ita!lane S.p.A." ·t;tTOLOI El.EMENTl lDENTIFICATIVI ARTICOLO 1-llENOMJ:NAZIONE 1.1 La SocietA: e denominatii "'fnfra.strutture Wireless Italiane S.p.A,'1 oin fonna abbrevinu, "lNWlT S.p.A."_ ARTICOLO 2 - SFJ)E 2.1 La Sociota hasede in Milano. 2.2 L'o.rgano amrninistrativo puO trasferire la s de sooia!e alri:otemo del tE:rrit.¢rio nazio.nalc e puO altresl istituire e/o modificare c/Q .sopp:timere sedi secondarifiHali. Euccw·sa.li, rappresentanze.agenzie e dipendcnzc df ogni genere in Italia e all 'estero. ARTlCOLO 3 · X>URATA 3.1 La durata della Sociotn e fi·sala sino al3l dicembre 21 00. 3.2 La. proroga de.! tcrrnine di dura:ta della Sooietft non ailribuisoo diritto di recesso ai soci chc non hanno concorso a.lla approvazione della relativa delibera. ARJ:JCOLO 4-OGGETTO 4.1 La Societilha per oggetto; l'inrtallazione e Pesercizio con qualslasi tecnictnezzo e si.$:k:ma, di impianti, infutstrutture. edattrw2rature Tissi e mobili stazioni radioe]ett:t·iohe, 1 (;ollegamenti per le rfl!iiocomL,mica.:rioni rnobili reti dedicate e/tJ intcgrntt;, pr-,r 1 l'espleratnento Ia gestione e Ja commercializzazione. s 7.a limiti terril'Odeli, dei 1 servizi di comunfcazioni elettronica,. quali anche rl uH.anti daWevoluzione delte tecnologie, e per lo svolgimento delle attivita!d essi anohe indirettmnente c;onn.esscomprese c; uelledi progettn2.icnesviluppo.. realizzazione . ricondi:-iomrmt-.tfto, gestione e mantltenzione; la progettazione} costruzione e/o gestiane di reti e infr< J: trulture per le tcJecomunkazioni; la fornitura di infmstrutiure e rebtivi servjzi ad operatori di servizi di CO.tnJmica?Jonc c1ettronica (cou qualunque tecnologia esistente o futura).
4.2 La soc.iot.A. potril. altresl svolgere., iu nome e/o per canto pl'opdo o su oommes.sa di ten;,lc a!tlvitlt eli acquisto di materle prim, di se:ml1avorati e dl 9rodoni nBcBssm·i per to svolgimento deU'attivitil di cui al comma precedente. Per i1 consegu.imen:to n lPrunblto di tali -finalitft e, quind1con camttere di meta sussidiarietS. e strumentalitala .sod eta pou·a: assumerc, in v-ia non prevulente e non nei confro.nti dd pubbljco, partecipw..ioni cd interessenze in societit ed l.mprese cl.i cgoi tipo e forma; provvedere al finanztarnc.nto deHe societa ed enti di partecipazione ed fl.! coordin.amento tccnico, commcroiale, finanz:iario ed amm.lnlstrat vo delle 1oro attivita.; complerenon nei confronti de:l pubblico? neW interesse prol}l'io 0 del1e societa ed enti dj partecipa.:zionc? qualsiasi operazfone mobf!iarc ilnmobiliare finanziada, commerciale,. col:npresa Pas::;uTl?.ionc di mutui e fmanzi?unenti e la pr.;:sta:done1 anchc a fa\·ore di terzi, di avalEfideiussioni e aitre gaumzie, reaH comprese. 4.3 Sono espressamente escJuse le attivitii riservatc a soggetti isctitti in albf professionali e le attivita cli cui alfrut. 106 del decreto legi;:;:Iativo n. 385/t993 nei ccmfronti de] pubbJ:ico. 'flTOLOll CAPITALE SOCl!\LE J<;J) OllBLIGA.ZWNI ARTICOLO 5-MISURA DEL CAPITAUc 5 .l 1f cap.ltaJt"> sociale sottoscritto e versato e pari ad Etrro 600.000.000 div so iu numero 600.000.000 azioni ordinarie prive di indicazione. del valor.;: nominate. 5,2 II capitate soc:iale pu6 cssere aumentato anohe con conferimenti diversi da denaro nei Hm.iti ccusentiti dalla legge. 5.3 Nelle delibera:doni di oumento del caphale sociale a pagomento, il diritto di opzione puO essere escluso neli<t misura massima del 10% (dieoi per cento) del oapitale snciale precsist :na ccmdizionc che il pre.zzo di emissi.ane corrisponda al valore di mercato ddle azloni e ciO sia cont"e1mato in apposlta relazione d.fl un revhore lega1e o da una societa di revisione leg<: -1e. ARTlCOLO 6-AZIONI 6.1 L Assemble.:'l pub delibel'ru'e l'emissione di azioni fomite dl dititti diversi da queUe or-dln21'k, !!'! conformitii aile prescrl.zioni di !egge. 2
6.2 Le azioni sono indivisihilL fn caso di compropriet.9.) i diri.tti, dei contitolari sono esercitllli da un rappresentante comune. 6.3 L1eventuale introduzicne modificazione o rimozione di vin.CQH alia c.ircolazione 1 del titcJL arionari non attribu1se d.iritto di recesso ru soci cho non hanno eoncorso aJPapprova.zione della relativa c:lelibara.z:ione. 6.4 E consenth:a. nei modi e ne11e fornJ.e di leggej Passegnazione di utili e/o di riserv di utili ai prestatori di lavoro dipcndenti della; Societa o di societfl oontrollatc mediante l'emissione di azioni ai sensi del prima comma d¢1l'"'rt. 2349 del codice oivHc. ARnCOLO 7-OBBLIGAZlONl 7.I La So¢icta puG emettere obblig:a:ztonianche convert:ibil-4 in conform it& aile nonne di Jegge determina.ndOJle le modalita. e condizkmi di c(llloca.mento. 7.2. G1i oneri re1ativi all'organ:iz%a.:cionc delle Assemblee dcgli obbliga doni: ti sono a carico della Societa che, in asseo:::::a cli dct rminarione da parte degli ohbliga:. ,.ionisti, nelli!! forme di leggasi fa aitresi carico della remunar zione dej rappresemanti comuni, nella mislll'a. massima stabilita dai Consiglio di AmministTazione per ciasc .:ma emissione, teuuto con to dc!Ja relat:iv-a. dhne.l:l.Sione. TlTOLOill AS:SEMBLEA ARTJCOLO 8 · DIRITTO DI INTERVENTO 8,1 N[ rispetto dolls normativa vigente gli aventi diritto di voto nell'Assemblea possono csercitarlo prima dell'Asscmblea in via elettroniose prcvisto nell'a"viso di convocazione.. con le modalita i.n CS$0 precisate. 8.2 Ogni avent0 diritto oJ voto puO fa:rJi rappresentare In Assembles, rila.tici:ando apposila delega a persona flsica o giuridica, noi Jimiti di Iegge. La Sooietl< ha facolta dl designare per ciascuna Assembles. UtlO o pirl saggetti ai quaH gli aventi di:ritto possono conferire delega per Ia rappres(IDtanza ln Assemblea ai sensi della disciplina vigente. GJi evcntuali soggetti desigt)at! c le necessarie ist.ruzion.i opeyativsono riporr.ati nelPavviso di convocazione de1larfunionc. 8.3 La notifica elettronioa della delega potra essere effetb.Jata mediante utiJizzo di appos.it:a sezione del sito internet de!la Socic:::ti ovvero media.nt0 trasmlssione per posta eleitronica, secondo le modalitii indicate nal.l'a.vviso di convacazlone dell'Assemblea. 3 ! /\0-j-'<
AR'HCOLO 9-POTllRJ: 9.1 L1Ass.emblca. ordinaria o straordhlaria.. delibera snlle materie ad essa espres:mm nte tiscrvate daUa Jegge e da1 presente statuto. 10.1 L'Assemblca e oonvocata ogni volta che il ConsigHo di Amministra:t..ione lo creda opport'tlno, o quando n,¢ sia richiesta la oonvoca:done ai sensi dl Ieggemrl rennin Ie con le modaliill prescritti dalla disciplins. di legge e regolruncntare di tempo in tempo vigo:mte. 10.2 In caso di mancata costimzione in seoonda convo jone, l'Ass.emblea straordinarla puO riunirsi iEl terz:a convocazione. Eper.:i1tro fac.o1tit del Consiglio di Arnmi.rtistrazione colJVOc l'A.ssemb1ea. ordinaria o st1·.aordinar1a in unica convocazione1 como pr legge. 10.3 L Assemblea ordinaria e CQTIYOcata alle condizioni di legge almena una volta all'omDO, non altre 180 giorni dalla ohiusura deJPesercb.io $OCiaie. Ess\:1. deljbera suile rnaterio di legge e autoria;s.,. ai sensi dell'art 2364, conuna 1, num0ro 5, del oodice civ.ile il IXlmpimento di operaz-ioni con partl correlate alta Sooieti\. nei casi e con le :rnod-a.litit previsti d<!lll'apposita procedura itdottuta dru Consiglio dl Amministraziof).e ai sensi dcJ.I.a djsciplinfl iu vigore. 10.4 L Assemhlea ordinaria. e sl..p<tordinuria si riunisoon01 anche in lul;)go dive1·so dalla sede legule, purcM in ltalia. ARTXCOLO 11 - ASSEMBLEA ORDINARIA E S:I'.RAORXHNARIA 11.1 l quorum oostitutivi e detiberativi d.eH'Asse111blea sono prcvisti dalla l.eggc ART!COLO !2 · PRESID:&VZA E CONDUZIOJSE DEJ l,AVORI 12.1 11 Presidente del Cm1siglio di Amminis1l'.ttzlo11e o chi ue fa le veci presiede fAssemblea ordinaria e stt-aordimnia e ne regoln lo svolgimento. In mancanza del Presidente del Consiglio i Amministraziooe (c di chi ne fa Je veci) presiede 1'Assr::mblea 111 persQrta eletta con il voto della maggioranza del capitale rappresentato in l'iunione. i2,2 L'Assemblea, su proposta del Presldente1 e1egge: co.o il voto della rrw.ggiore.uza di prcsenti un Segretarioanche al di fnori degli a.zionisti. 12.3 NeUe jpotsi prmviste dalln legge e laddow i1 Presldente clelPAsscmbJe-a, ne mvvisi resigenzail vcrbalc viene redatto per atto pubblico cia Notaio de-S!ignato dal Ptesidente me-t.!esin.1o con funzione cli Segrcta,do
12.4 Il Presidente della riunionc-trn J'a!tro verifica Jregolariti della costitu.zicnc de11'adunauza, ac rta.l 1identiti e la legittimazioue dei presentl, dirige ila.vori, anche stabilendo un diverso ordiue cti discussione degli argcmenti indicati uell'avviso di cmwccazione. 12.5 Il Presid nte dsHa riunione adotta le opportune miMtc ai fini delFordiuato andomento del dibattito e delle votaziolli, <lefineJ;>dono le modalit>\ e ;,ccertandooe i risultati; puO sceglietra gli intervenuti due o pilscruta.tori. 12..6 Lo svolghnento delle riunionl assembleati doi Soci e d.isciplinato dalla lcgge dal p1·esente Statuto e dal RegolaJntmto delle Assemblee approva.to con deEbem dell'Asscmbloa ordil:lll!la della Socief.L TITOLOIV OR.GJ\.NJ: AMMINISTRATIVI E Dl CONTROLLO ARTICOLO DEL DI 13 COMPOSIZIONE CONSIGLW AMMINISTRAZIONE 13.1 La. Societa. e. amministrata da 1.W Consig11o di Amministruione composto da l,.ln minimo di 7 {sette) a.d un massimo di 15 (quindici) Consiglieri di cui gli esponenti del genere meno rappresersa.to sono almcno tln terzo del totale., con arrotondamento in caso di n ,. .mcro .fra..zi<mar!.oall:unitA superiore. 13.2 L'Assemblea, prinla di procedere aUa nonllna, detcrmiu.a l1 numero clei compoueo.ti il Consiglio di Amm.inlstrazionen uumero chc rhuane fermo fino sua diversa de1iberazione e la duJ;"<iia delta nominsalvi. i l:imiti :msssimi di legge. 13.3 Ogni qualvo{ta. La maggiora11za dei component!ilConsiglio d"i Amm.)J)istmzione venga memo per qualsiasi causa o ragione, i re:rtnn.ti Con$iglicri si huettdono dimission ri e la lore cessli.Z'lnne ha effclto da.l memento in cui il Consiglio di Amministluione e stato ricostituito per nomhm assemblea:re. 13.4 La nomina del C<msiglio di Ammitdstr27.ione awicne nel 1·ispetto della disciplina di legge e regolaru.onts.rc applioabile) sulla base di liste presentate da.l soci ai sensi dci sncccssivi C01'fllni., o dal Consiglio di Atnministrazione uscente. 13.5 Tra gH Amtninistratot·i ncminati dalPAssemblen,. w1 numero minima corl'ispondente a! mtaimo previsto dalla discipHna di legge e rego1mnentare di tempo in tempo vigente deve possedt: re i reqt. isiti di Utdipondenza stabiH.ti dalla disci.plina d.i lcgge e regolam.entardi tempo in tetnpo vigente. ll venir met1o dei reqt: isiti determin.a Ia decadenza. dcll'smrninll.'tratore. ll venir meno dci rcquisifi di indipendenza. prescritti dalla discipliua di Iegge e regoiamentare. di tt:lll.po in teJ'rlpO vigente in capo ad uu amrninistratore non ne. determina Ia decadenza 5
SG" i requisiti petmangono in capo a.l numero mini1'1'.tO di amministmtori cbe secomfc Ia nonnutiva vigentc devono possedere tale requisito. 13.6 Ogni sooio puO prcseotare o concorrerc alla prcsentaz.ione di una so1a lista e ogui candidate -puO prese.ntarsi in una sola lista a pena di ineleggibilit.a. Le Ustc cht. contengano un oumero di candidati peri o superiore a tre debbono assicurare la ptesenzil di eutrambi i ge:nt!Jrcosi che f candidati dd genere meno rappresentato siano ah:neoo un terzo del totale. CCl1l ar.ror.ondamentoj in oaso dj numero fraziottruio, aJl)unita supedore. 13.7 Hanna diritto dl prosentare Je liste soltanto i soci chd!l ooli o insieme ad altri soci siru\o complessivamente tftolari di a:?ioni mppreserltanti la misun1 richiesta dalla. disciplinn re.golamentare em.nuata daUa Commissione Nazlonale per lo socjcta c lil borsa. 13.8 Dnitamem:e a ciascuo(l .lista, entro .i termini previsti dalla no1mat!va di legge e regc.Jame ltare di tempo in. tempo vigenteJ debbono depositarsi (i) .le informazioni relative ;:; .11'identlt2. de.i sDci che hann'o ptcsentato Ia listcon l'lndicazi.ont della partecipazionc com.ple-ssiva detenuta(ii) le accettazioni della candldatllra da parte dei singoli candidaJi e (ill) le dichiaraziotl:i con Ie qunli i medesiml attestano, sotto Ia propda responsabilita, l'i!1esictenZ:'1 di -cause di ineleggibilitfl e dl .l.ncompatibili"hl, nonch6 l'csistenza dei requ.isiti ¢he fossero prcscr!tti pt':r te rispettive caric.he. Con lc dichinra.zio-ni, viene depositRtc per ci.1$CJ,Jn cnndidato un curriculum vittle riguardante le caratteristiche perso.aafi c professionaU con l'lndica7.ione degH inoarichi di amminlstrazione e coutrollo ricopcrti prcssa altre societ& G dell'id.ou..cita a qualif1carsi come indipendente, alla stregua dei crited dl legge e d:i quelli fatti prapri da.fta Societa. Eventuali va1iazioni che dovossero verificarsi fino al giomo di efi:Ctlivo svolgimento dell'Asscmblea. sono tempcstivamente conmnicato alla Soi cvioettiao_rtLeenuIiisitedapleler HlesqteuavHc.nngoonnsoodniovojssjsseurvccaetcssIipvrnem<teentttee ppreers1c1rluzmioenr[i, iSnOteDl'lapcroongsreidses)rvat.ei dcuonmoefinnoon&prlensuemntearteo.d1e3g.9HOafglTlmJiinab-vsternatteordiidriattoelealggveortee.!puO votnre una sola lista. 13.10 All elezione del Consiglio di Amrnlnist.mzione sj pmcede com¢ seg e: 1) dalla lista che ha ottemtto in As!',iemblea ilrnaggior numero di voti (c. d. Lista di M.aggioranz.a) sono tmtt:i M:ll'ordine pt'Ogt.:rssiva con il quale sono el ocati nella Hsta stc.:ssa. iquattro quinti deg.II amministratori da eleggc1·er con a.rrotondameni:o, ht caso di numero frnzionario, aH'unit?l infcriore; 2) fer.oto il r:ispetto della disdpli:n.a di legge c togolamentare applicabilin ordine al collegrunento con la Lista eli Maggiot'anr..a... i restanti a1mninistratori sono tratti daiic altra liste; a ta1 fine
quozienti cosi. otl:enutl sono assegnati progressivame:nte ai cand]dati di eiascunu di tali liste, secondo l'ordine dalle stesse rispcttivamcntc previsto. lquozient.i cosi attribuiti aj candidati delle varie liste vengono disposti in una 1.ll1ica graduatoda decresccnte. RisuiiD.no cletti colora che hanno ottenuto i quozienti piU elevatL Nel case in cu) pi11 candidatl abbiano on:e.nuto lo stesso quozienterisu1ta e\etto il candidato de11a lista che non abbia ancora. cklto alcun arnministratore o che abbia e!etto il mino1·numero di amministratorL NeJ DaBo in cui nessuna di tali liste abbia ancora eletto un amminlstratore ovvero tutt.e abbiauo eJetto lo stesso rtllnl.ero di atnrnln1:;tqtod, neWambito di tali 1iste risulta. eletto il ca.ndidato di quena che abbia ottenuto il maggior numer.o di voti. In caso di paritil dl voli di ll La t1 setHpra pari lei Ui quozieute, si proocdc a nuova vota2:ione da parte dell'intera AssL-mbl arisultando eletto i1 candidato che ottenga la maggioran;::a. semplice dei votL Qualora la composizione dell'organo collcgialc che nc dcrivi non consenta il rispetto de1l'equilibrio 1ra i gcrn:::ri, tcnuto canto del !oro online di eleucazlone in lista, gH ultimi c\ctti della Lista di Maggiorruv...a dd genere pill rappresentato sono sostituiti nel numero aeces.sario ad a."%ieurare 1'ottempe111.Dza a1 requisito dai prim.\ candidati non eletti della stessa Jbta del gen(!.re meno rappresentato, T11 mancanza di c:andidatl dct genere meno rapprcsenta:to a1Pintcrno della Lista di Maggioranza in nwneto sufficiente a procedere alia sostituzione l7Assemblea integra l'organo con ie maggioranze dj legge, assicurando il soddisfacimtmo del requisite. 13.1 Per la nomina degli amministratotl, per quaJsja;,i ragi<me non nominnti ai sensi del procedimento qui previsto, rAssemblea dellbcra con lc maggiorWl.Ztl di legge sssicurando ill"Jspetto dei rcqnislti di legge e Statuto in materia di compoSiit;)onr:; dell'organo collegiate. 13.12 Se ne1 corso dell'E!lereizio veng011o a mancare uno o piU antmin"istralori, si f!TOVV¢de ai sensi delrnrt. 2386 de:l eodloo c;vile. 13.13 In occasione del primo mandate del ConsigHo di Amministrazione succcssivo a!la quotaJ.:ione det!a Societa, Ja quota da: riserv re al genere meno rappreseutato (si.a net Consiglio di Amn1inlstrazi:one sia neUe relative J)!;>te) e limitata a un. quinto del totalE1 con mrotondam.ento, in caso di numero fraZionado, al\ unlt:l $uperiore, 1 ART!COLO !4-PRESlDENTE-VICE P.RRSlOENTE-SEGRETARIO 14.1 II Cm1sigfio dl. Amministraz\one e\eggc fra. i propri membr\ l\n Preside1\tc-ove f'A!i:.emblea non v{ abbia gh\ provvedoto e puO nominare uno o phl Vice Presidenti. a \
J 4.2 Jn cuso dl 3ssenza o di Impedimento del Presidente lo sostituise il Vic Pros.ldc.nro piO anzi.ara) per ¢ttl.. se nomlmrt:o, o PAmministratore Dclegato se nomiuato, oppure Jl consigliere pill anziano per eta. 14.3 TI Cons:igllo di Artutdnl trazionc puO eleggere un Scg;r<::tario scc!to anche all'int\1ori dei suoi membli. ARTICOLO 15-ADUNANZE DEL CONSIGLlO l 5.1 H Presidcnic, o hi nc fa lc: vcci convoca. H Consiglio dj Amministra.7.1,me presso Ia .stx!c deUa Societf. o af.rove, di propria inizintiva e quando ne riceva domam!a scritta, da ahueno un qulr to dei Cousigli:cni in cariaa o d.U Sindaci. 152 I1 Prssidente comunica preventlvamente gli argomentf oggetto di trattazione ne-I corsa della riuniom: consiliare e provvcde affi.nche adeguate informazioo7 su11e \Y\aterie da. esaminru·c vengano fomhe. 1'1.. tutti i oon:;iglicri, tenu.w conto delle Girc.ostanze clel case, 153 La convoca.ziunc 0.:me [aU<.'\ con mczzi idonei <1lla luce del t mpo di preavviso, di re:g:ola nlmeno 5 (cinque) giorni prima. deU'adllnanza, salvo i casl d'urgtmU nei quali va comunque effcttua.ta co.n al.meno J 2 (dodici) ore di anticipo. De.Jla convocazione vie11e nelio S(esso termine dato avviso aJ Sjndaci. 15.4 La partecipaz.ione at!ri"unioni eonsiliari puO avvenire-qllalora i1 Pre$idente o chi nc fa Ic veci ne accerti la necesshl mediante;. mc:l,'2i di tcJocor.nunicazionc chc consentano 1a partccipazione at clibattito e la paritf!. informativu di tutti gli int.ervenuti. 16 VALIDI'fA' DELLE ARTICOLO JcVJlRBALIZZAZ!ONE DJ!:LIBER<\ZIONX CONSlLlARI 16.1 Per la validit.'t delle dcliberazioni del C<msigtio di Amministrszionc occorreranno la p.rescuza deiTa maggioranru degli J\.1nmii1.istmtori in cnrica. ed il voto tavotevok della m igg.i.ornn.z:.a degli Amministratori intcrvynmi. 16.2 Le detiberazioni del Consigllo di Arnministrazione s< ranno verbnlizzate nel librc delle deliberazloni del Consiglio da tenere e conservare ai sensi dell'art 242t, n. 4, del codicc civile sottoscdtte daJ Presidente t dal Scgrctario o da ut1 Notaio. QuanUo sia prescritto dalla Iegge o ilPrcsidente lo litenga opportunole deliberazioni saranno verbaiir..zate dn un Notaio scolto dal PrM.idente dd Conr,iglio di Ammini:strazione. ARTICOLO l7-COPIE ED ESTRKi"H 17.1 Oli e:>tratti da.i libro dei verbali deJJe adunanze consiliarifinnati dal Presidente Cl cla tluc: runministrarori e £:Outrofirmati dal Segretario, fal'n1.0 piena prova. 8
AKOCOLO 13 · POTERllJEL CONSIGLIO·DELEGHE 18.l At Consiglio di Amministrad.one spetta Ia gestione della Socicessendc di sua competcnza tutto ciO che per legge o per StaMo 11011 e espressamentc riservato all'Assemblea.. 18.2 Nei lirniti di legge, a!la compBrenza del Consiglio di Am.ministtazloue sono attrlbuile lc determinazioni di !nc¢rpol'azione in lNWIT S:p.A. o di scissione a favore d! n-..rwrr S.p.A. delle SOQieta di cui lNWIT S.p.A. -possegga almeno iJ 90% de1k zioni o quote. la riduzione del capiTate socia\e h1 easo dl reccsso del socio l'adegunmento della Statuto a dtsposirioni normative, il trasfcrimento della sede della Societa a.D'intemo del tcrritoriu nazional8, nonQhfl l'istitu;don" o la soppressione di sedi secollda.de. 18.3 Per Pesecnzione delle proprie clelibernzion.i e per la gestione sociale il ConsigUo, nell'osservanza dei limiti di legge, puC: istihlire un Comitato Esecutivo, detcm'lirtandone componenti; poteri (;d H mnnero del - dclegare gli opportuni poteri, determiuando i limiti deJia deleg,a ad uno o piU An1minist1arori, eventualmente con 1a qualifica dl A1nministratori Delegati; - noroin3I"e uno o piU I)ircttorl Generali, determinan.done le attribuzioni e 1 ::: facoltil; - nominate mandatari - anchc in seno al Consiglio di Ammiuistraz:ione - per op ra:doni detenninatc e per una dllrata limitata di tempo. 1S.4 11 Consiglio puG costituir8 al proprio iraterno Comitati con fimzioni consuidvc e propositive, deterrninandone le attribuzioni e !e facotcl.. 18.5 n Com;igtio di AmministtaziOile nomina il dirigente f!reposto alla rcdazione del document!contnbili societari, previa parcre obbligato ric de1 Collc:,briO Sindacale. Salvo revoca per giusra causa,. scntito 11 parere del CoUegio Sindacale, i1 diaigcnte preposto a.J.Ia rcdazio11e dei dccumenti contabili societari scadc in.sierne al Consiglio di AlmninistraziOtJe che Io ha nominata. l&.6 n dirigente preposto aila redazione deL docurnenti contabil! socie;tmi devc essere esperto in materia di ;arm,ninimazione, fi\1anza e controUo e possedere ! requisiti di onorabiHta stabiliti per gli amministratori. La perdita dei requisiti comporta la decaden.za daJb carica, chc. deve essere dichiaJ:Gita da! Consi:gHo di Arrrrohtistrazione entro trenta giomi dalla conoscenza del difetto, A.RTICOLO 19 - INFORMATIVA l.>£GLI ORGA.Nl l.>ELEGATl 19.1 Gli organi delega1i riferi cono a1 CousigJio di Amministrazione e a1 Collegio Sindacate sull'.o.ttivita F;VOlta,. sui geueralt1 andamento della gestlone, sulla sua
prevcdlbile evolu:r.ionc e sulle e perazioni di lTiaggior rilievo economico, finw:riario e patrirnO.tliaJe1 e:ffet-ruate dalJa Societa o dalie societa controllate; in particoJare riferl$cono sulle opt:Tazioni neile quali essi .abbla.no un interesse, per conto proprEo o di terzi1 o che sjano influenzatc dal soggerro che sercita PattivitA di d:frezione e coordinattJ.el'l.t03 ove e:sistente. La corrn111icazione vicne e:ffettuata tempe$itivament¢ e comunque con petiodklta almeno trimestrale, in ocoa:-;ione delle rfunioni ov-vcro per il:;critto. ARTICOLO 20-RAPPlUlSENTANZA LEGALE PELLA SOCillTA· 20.1 La rappresentanza d.ella Saciotfl, di fronte ai terzi e In giudizlo, spettano al P.residente e, in caso di sua assCJnza o impedimento, al Vice Pre.sjd.entc, se nominato; spen.ano altresi disgim1ts..monte a <:iMcuno degli Amtninistro.tori delegati. 20.2 I legali rappresentanti di cui al t;:Omm.a precedentc hrumo facoita di conferire potcrdt rappresentatlz.a de1la SocicW:,. anche in sede processoale, con facolta di subdelega. -..,.._._.=' · \ ARTICOLO l\-COMPENSX E RlMBORSO SPESE DEl CONSIGLJERJ 21 rl I aonsiglieri hanno diritto al rimbor.so deJie spese incontrate pe;-J'"eserciz.io ddle !oro funzioni. L1As::;smblea ordinaria puO deliberate inoltre un compenso annu.ale a favoto del Cou. g!io di Amm.inistntzione cosi come dctermiuare un importo compiessivo per la rerounerazlone di tut:ti gli a.mministratoriinclusj quelli investiti di pnrtlc<; lal'i cariche. Tale compenso, una. volta fissato, rimane invm.ialo .fino a diversa decisione de.tl'Asscmblea. ARTICOLO 22-COLLEGIO SJNDACALE Z2.1 11 Collegia Sindacale e composto do 3 (trc) Sindaci effettivi, di c\ri a!rneno uno e t::¥pon nte del gen.are me no rappl'esentato. L'A:s:sembiea nornina altresi 2 (due) Sindaci suppleoti, uno per cia13cun genere. 22.2 Ai ·fini di qua.nto previsto da!Decreta Ministro dl Grazia e Glustizia del 30 lllW?.OC 2000 n. 16:2, art. 1cQmma 3si consid vTano strettamente a:ttinenti a qu.eHo della Societle matcrle ed i settori di atthrtta connessi o inerenti a.H'attiviti s.voha Oal!a SodeLa e dj -oul alYoggetto sociale. 22.3 La nomlna del Collegio Siadaoale m'Viene nel tispetto clella disoiplina di Iegge e reg:olmn nt::u-e app1icabi1e,... sulla base di liste presenmte dai soc]. 22.4 Ogni socio poO presentare o ccncorrere alia pres¢ntazione d) 1,.1nq. sola lista c ¢grt! o:anrl!datt=' puO presentar$i irtl.l.!la so!a l.L."lta pcna di ineleggibilit$.. 10
22.5 Hanno diritto di prosontare le llste solt nto i soci che, da soli o ineiernc ad n1tri soci, siano ccmple.s::;ivamcnte titolari di azioni rappr¢-sentanti la misura richiesta daUa diseipli:na regolamentare emanata dalla Commissione Nazionale per le societa e la borsa 22.6 UnltaJ:nente a ciascuna lientre i te.itninl previsti dalla nonns:tiva di legge e regolamenwre di tempo in tempo vigente, debbono altrcsl depositan;i (i) le informa:zio.t'li relative all'identita d.ei saci chc hanna presen.tato Ia lista:. cou Findicazion.e della partecipazione compless.iva deteuut{H) le accettazioui della candidatura da parte dei sJngo1i ctu llidarl e (JH) le dichiarazioni con Je quall i medesimi attestano, sotto la propria tespousabiUtil, l"'inesisteilza di cause di hre.legglUilitii. t::: di i11compatibilitA, nonchC I'oS':istenza dei requisiti pre., oriiti dalla djscipli.na, aJIChe regolamentarcapplicabile e dallo Statuto sociale. 22.7 Con le dichiarazioni viene depositato per ciasl>'Dn candidate tnl urriculum vitae riguardante le caratteristicho perscnali e profession-ali, con P1ndioazione degli incarichl di anunU:dst.l'azione e controllo rlcoperll presso altre societa. La lista per Ia quale non sono osservate le slatuizionj di aoi sopra e consid.erata com!!: non prese.ntata. fino a1 giomo 4i e>ft"bitivo 22.8 Eventuali variazioni chdovc.s$eoo verifi('.arsi svolghnento dell Asscmblea sono tcmpestivamente comunicataHa Socjeti.. 22.9 l,e llste si articolano in due sezionl: una peri candidati aila carica di Sindaco effe:tt:ivo e l'altra per i candidati alla carica di Sindaco supplente. Le liste che nelFllna, ucU altra o in entra:mbc \e .sozioni contengano un nwnero di candi.dati pad o supei'iore a ire debbono assicllrare 1a presenza in detta sezione dl mrtrarnbi igeneri. cosi che icarrdidati del generc meno rapp1'esentato sian.o almeno un terzo del to-tale, con a.r_rotondamentoh1 caso di numero frazionario) a.Wunita superlc; re. Il prlmo dei c mrlid<1ti rti ciascuna fiezione viene individuato tra 1 revisori le:gali iscritti ne!J'apposito registro che abbiano es1eorcrdi itnoel'patrtoivgjrteAssdiviere1v1isione legale dei conti per t.m perlodo non inferiora tre annL 22.10 Ogni avcntc didtto al voto ptO votare una sola Hsta. 22.11 All'elezione del Collegio Sindacakl si procede come se(!Ue: I) dalla lista che ha ortenuto in Asstmblea Ia maggioranza dei voti (c.d. l-Ist· di l\.1aggioral:l.La) sana t.tat-Jnell)ol·dino progressivo cQn i1 quale souo elencati nelJa lista stessa, 2 (due) membri effettivi ed I (uno) membro supplente; 2) dal1a $¢Oomht Jis:ta ¢he ha ottenuto in AssembJea la maggioran:r.a. dei voti cspressi dai soci e cl1e. non sia co)legata ai sensi della discjplina d-i legge e regolamentare con Ia Lista di MaggloriUlza (e.d. Lista di Minomnza) sono tratti, nell
con j1 qlta!e sono clcncati neUa lista stc.:.sa i1 roastame membro cffettivo c l'altro 1 mernbro ,'mpplente. Qualorfi la composbdone dcJl'organo collegialu della categoria dci Sindaci supplenti che ue derivi non cot1senm iJ rispetto clelJ'cquilibrio n-a i genedteuuto conto dal !oro ordinc di elencazione ndla rispettiva s:ezioue, l'ultirno eletto della Lista di MaggioranL"l del genere pili rappresentato decade pel' assicurare. l'ottemper?.uz13. at requtsitocd e sostltt1ito dal primo candidaro non eletto deUa stesS<l ! ista e della stessa sezione del generc meno rappresentato. ln :a:< senza di candJdati dol genere men(l rappre..">O.:mtdo all'lntemo della sezlonc rileva11te della Listn <li Maggioranza, !'Assemble<nomina il Sind.aco effcttivo o Suppk:nte mancante aon le maggioranze dj 1 gge, assic:urando il soddisfadmento del rcquisito. 22.12 E' no..minaw Prosidente dei Collegln indaca!e iJ.'com.ponente cffettivo trntto dalla Lista di Minoranza. 22.13 Per fa nomlna dei Sindud: per quaisiasj_ ragfonc non nominati aj sensi del procedimento qui previsto, I'Assemb!ea deliber<'l con ·1e roaggloranz.e di !egg , assicumndo il rispctto dei requisiti di legge e Statuto in materia d.i composizione dell'organo collegjale e della categoria del Sindac1 supph!:nti. 22.14 ln ca.so di ccssazione di un Sindaco tratto ri --pettivamente dalla Lista di Maggiomuza o da.lla Lista. di .Minoranza, subentra,. e termo H rispctto dei requishi statutrui in materia di composizione dell'organo sociale, .il.supplentc tr::1tto dnlla Lista. di Maggioranza ovv ro daJla Lista di Minoranza. La nomina di Siudaci per !'1megrazione del Collegio Sindacale "1li sensi dell'art. 2401 del codic:e civile e delibero: ta dall'A?.semblea 3 magg_iora112a. assoluta dei voumti 0 conmnque net dsperto del principio di neces:saria rapprt:sern:anzn delle' minoram::!:J, oltre che dei requisitJ stamt.flri ia materia di eqviliQrio lra i generi. Si intende rispettato il principio di neoessaT:ia rapprescnt..::mza deUe minoterlnenc.ozme innnckaaszoiodniencohleJlcinoamd;eelntSalnnodalacopasurtpepclicpnaztei:o.ntcraattJoddibaalltatitLoisct-IaadpiaIrVit\liinnoforarnm:ra.taivcEhdeishialttsiugbleiniotrtaetno·eanuuutiS. 1ln2daco effettivo tratto daUa rneclesimn lista. 22.15 Previa oomtmJca7.io:oe al Presldente del Consiglio di Ammiliisu-azlone, it Collegio Sindflcttle pub convocnre, ai :-;e.mjj di Iegge, I'Asscmblea e il Consiglio di Ammjnistra.zlone o if Comftato Esecutivo. Detto potere di convoc:azionc puO essere esercitato iudividu.almentc da c13SCUU Shtda.co, a ccc<;ziOne del poteN cti convocarc: l'As.scmblea, che pub esserc oscrcitato dn uu numero <li Sindaci non inferiore a due, 22.16l.a parteyjpazione aHe riunioni del Collagio Sindacale pllO avveniL'e - quatora il Presideme ne accerti la necessita - mediante mezzi di
22.17 ln case di irnpedimento del Prestdtmte, lo sostituJsce l'altro Sit1dnco effcttivo pill anz1ano per era. 22.18 La revisloue leg: .Je dei conti e esercitata, aJ scnsi,delle applloabili disposizioni di Iegge, da una soclotii dJ revisione logrue abilitata ai sensi dllegge. TI1'0LOV B1LANCIO ARl'ICOLO 23 - Cl'llUSURA ESli:RCIZIO SOClfi.LE -llJPARTO UTlLI 23.1 l./esercizio social e. si. obiude al31 dicembre di og11i anna. 23.2 Dag1i utili nett! risultanti da! bllancio dtfVe essere dedotto il 5% (cinque psr cento) dc,gli stessi da accantonare riserva l-egale, sinch6 questa abbia Higgiunto l'mnmonta.re pari a! quinto del capitale scciale. 23.3 n residuo viene ·ltilir..t.ato per l'asscgnazioqe. del dividendo deliberate dall'Assemblea c/o per qnegli altri scopi chc l'ASsemblca stessa ritonga pit) oppQrtuui c necessari. 23.4 Il ConsjgHo di AmminJ. one puO, durante il dOrSo detl?csercizio, distribolre ag{i a:tJonistl acconti sui dividendo nel rispet.to delle disposizioni di legg:e in materia, 23.S I dividemli nou rlscossi nel rannlue di oiDque llliDi da1 giomo della loro esigibilitii. si intendono prescritti a favore della Socleti. TITOLOVl SCiOGLIMENTO AB.TlCOLO 24-LIQUT.DATORI 24.1 In -oa.o;;o d1 scioglimento della Societ?i, FAssem'bl&a determina Jc modalitt\ deBa Hqu:idatio11e e noiUina. unc o pill .Uquidatori, fissandone poteTi e compensj nei Bru.iti di lo!!Se. TITOLOVIl OISPOSIZlONI GENERAL! AB.TICOLO 25 - DOMIClLlAZJONE DEGLl. AZlONISTl · FORO CONVENZIONALE 25.1 lJ dom.icilio degli aztonisU nel ccnfi·onti detla Soeleta sj intendc eletto, a tutti gli sffeL11 di lc e, t:Jresso ll domicilio ris.ulte.ute dal LibroSooi 13
25.2 Ne! rispetto delle dispo!ilizloni di Iegge in nul.teri'uj:'tutte ie col1te·$t:a.&)oni Jr.:, gli s.zi011isti e la Societil sono dec1se dill'Autorita Giudirlarfa n na .cuJ oireosc:riziom? ha sedc legate Ja Societit AllTlCOLO 26-RINVlO 26.J E'er tutto quanta no.u e disposto dal prcsente Statuto si appJicano le. disposizioni di legge. F.to Osom·Cfoohetti F.t-o Carlo Marchetti Notafa 14
Situazione patrimoniale ITA GAAP cU 30.09.201.9 del Ramo Towers r-··---------Delta 30/09/20191 30/09/20191 v· 31/03/2019 --.----""-r------,1 mlgllal ! 136.520 I -ATIIYJ"fA' 120.804 I Impinntl c roacchinari lmmobilizzaizoni in corso (15.716) 1 ;r---- -"---L759 l.501 :< A 0 2 , ,_ I :5 l 221.542 ! 229.348 1.319 7.8061 1.320 ! -' cr ..... 4.602 8.391 Altri dcbiti 462 252 I i I Q, ){(!/ \ Totale Atllvlta' non correnU 138.279 122.305 (15.974) 22.133 1.010 (3.660) f-89 Crcditi verso clicnti Crcditi per imposlc anticipate Crcditi verso altri Rlltci c Risconli aUivi Totale Altlvlta' correntl 79.039 101.172 3.466 4.536 24,786 21.!26 ----7,9!!2?..[------32.1 136.970 ' 156.602 19.632 I Totale Attlvita' 275.249 278.907 3.658 rASS!VITA' Total a Patrlmonlo Netto TFR Fondi per risch.i cd oacri r'l_ l.Q72 I48.64340 916 3.79 )!1 --·1 3.7S9 (7.727)1 (210) Totele Passlvlta· non correntJ! Debiti vcrSD fomitori Totale Passlvlta' correntll I 1Totale Passlvo 49.1051 41.168 53.7071 49.559 (7.937) (4.148) !Totale Passe Patrimonlo NettoI275.249: 278.907 3.ssa a di euro 31/03/2019 --
ALL IMezzo Panda Gruppo Elettrogeno SKVA Panda Gruppo Elettrogeno SKVA Panda Gruppo Etettrogeno SKVA Panda Gruppo Elettrogeno SKVA Panda Gruppo Elettrogeno SKVA Panda Gruppo Elettrogeno SKVA Panda Gruppo Eletttogeno SKVA Panda Gruppo Elettrogeno SKYA Panda Gruppo Etettrogeno SKVA Furgone Gruppa Elertrogeno 60KVA Furgone Gruppo Elettrogeno 60KVA Furg_one Gruppo Elettrdgeno 60KVA Furgone Gruppa Etettrogeno 60KVA Forgone Gruppo Elettrogeno: 60KVA Furgone Gruppo Elettrogeno 60KVA Fur"gone Gruppo Elettrogeno 60KVA Furgone Gruppo Elettrogeno 60KVA Furgone_Gruppo Elettrogeno 601\VA Furgone Gruppo Elettrogerld 601\VA Fur,gone Gruppo Elettr{)geno -qo_KVA Furgc.ine Gru_ppo Elettrogeno 60KVA Panda Gruppo Ele:ttrogeno .SKVA Panda Gruppo Elettfogeno SKVA Pa-nda Gruppo Elettrbgeho 51\VA !Madella ITarga AW293JX AW351ME AW416LV AW418LV AW743KL BE439CP B£440CP BE441CP BP136LT CLd38NW CL068NW CL198NW CL28SNW Cl310NW CL407NX CL531NV CL708NV CL878NV CL879NV CL924NV CS083ZD EZ019CP EZ020CP EZ023CP FIAT PANDAVAN 4X4 FIATPANDAVAN4X4 FIAT PANDAVAN 4X4 FIAT PANDAVAN 4X4 FJATPANDAVAN4X4 FIAT PANDAVAN 4X4 FIAT PANDAVAN 4X4 FIAT PANDAVAN 4X4 FIATPAN0AVAN4X4 RENAULT RENAULT RENAULT RENAULT RENAULT RENAULT RENAULT RENAULT RENAULT RENAULT RENAULT RENAULT Nuova FIAT PANDAVAN 4X4 Nuova FIAT PANDAVAN 4X4 Nuova FIAT PANDAVAN 4X4
AL II VI CODICE LIVELLO DETTAGLIO IMPIEGATO IMPIEGATO IMP!EGATO IMP!EGATO IMPIEGATO QUADRO IMPIEGATO IMPIEGATO IMPIEGATO DIRIGENTE IMP!EGATO IMPIEGATO IMPIEGATO IMPIEGATO QUADRO IMPIEGATO OUADRO IMPIEGATO IMPIEGATO QUADRO IMPIEGATO IMPIEGATO IMPIEGATO IMPIEGATO IMPIEGATO IMPIEGATO IMPIEGATO IMPIEGATO IMPIEGATO QUADRO DIRIGENTE IMPIEGATO IMPIEGATO IMPIEGATO IMPIEGATO DIRIGENTE DIRIGENTE IMPIEGATO IMPIEGATO IMPIEGATO IMPIEGATO IMPJEGATO IMPlEGATO IMPIEGATO IMPIEGATO IMPIEGATO IMP!EGATO IMPIEGATO 6 7 6 5 7 Q 6 7 7 D 7 7 6 7 Q 7 Q 6 7 Q 7 7 7 7 6 7 6 6 7 Q D 7 7 7 7 D D 7 7 7 6 6 6 7 7 7 7 7 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 ) u i -I '"j .' C::L r± CODICE 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 LIVELLO 6 7 Q 7 7 7 6 7 7 7 6 7 7 6 7 7 DETrAGUO IMPIEGATO JMP!EGATO QUADRO !MP!EGATO IMPIEGATO IMPIEGATO IMPIEGATO IMPIEGATO IMPlEGATO IMPIEGAIO IMP!EGP..TO IMPIEGATO IMPIEGATO !MP!EGATO IMPIEGATO 11'·/\PIEGATO
All. "E" a!n. 15584/8372 di rep. STATUTO di "lnfrastrutture Wireless Italiane S.p.A." TITOLOI ELEMENT! IDENTIFICAT1VI ARTICOLO 1 - DENOMINAZJONE 1.1 La Societa e denominata "lnfrastrutture Wireless ltaliane S.p.A." o, in forma abbreviata, "INWIT S.p.A.". ARTICOLO 2 - SEDE 2.1 La Societa ha sede in Milano. 2.2 L'organo amministrativo puo trasferire Ia sede sociale all'intemo del territorio nazionale o puo altresi istituire e/o modificare e/o sopprimere sedi secondarie, filiali succursali, rappresentanze, agenzie e dipendenze di ogni genere in Jtalia e all'estero. ARTICOLO 3 -DURATA 3.1 La durata della Societae fissata sino a!31 dicembre 2100. 3.2 La proroga del termine di durata della Societa non attribuisce diritto di recesso ai soci che non hanno concorso alia approvazione della relativa delibera. ARTICOLO 4 - OGGETTO 4.1 La Societa ha per oggetto: l'installazione e l'esercizio con qualsiasi tecnica, mezzo e sistema, di impianti, infrastrutture, ed attrezzature fissi e mobili, stazioni radioelettriche, collegamenti perle radiocomunicazioni mobili, reti dedicate e/o integrate, per l'espletamento Ia gestione e Ia commercializzazione, senza limiti territoriali, dei servizi di comunicazioni elettronica, quali anche risultanti dall'evoluzione delle tecnologie, e per lo svolgimento delle attivita ad essi anche indirettamente connesse, comprese quelle di progettazione, sviluppo, realizzazione, ricondizionamento, gestione e manutenzione; Ia progettazione, costruzione e/o gestione di reti e infrastrutture perle telecomunicazioni; Ia fomitura di infrastrutture e relativi servizi ad operatori di servizi di comunicazione elettronica (con qualunque tecnologia esistente o futura). 4.2 La societa potrit altresi svolgere in nome e/o per conto proprio o su commessa di terzi, le attivita di acquisto di materie prime, di semilavorati e di prodotti necessari per lo svolgimento dell'attivita di cui a!comma precedente. Per il conseguimento e nell'ambito di tali finalita e, quindi, con carattere di mera sussidiarieta e strumentalita, Ia societa potra: assumere, in via non prevalente e non nei confronti del pubblico, partecipazioni ed interessenze in societa ed imprese di ogni tipo e forma; provvedere al finanziamento delle societa ed enti di partecipazione ed a! coordinamento 1
tecnico, commerciale, finanziario ed amministrativo delle !oro attivita; compiere, non nei confronti del pubblico, nell'interesse proprio e delle societa ed enti di partecipazione, qualsiasi operazione mobiliare, immobiliare, finanziaria, commerciale, compresa l'assunzione di mutui e finanziamenti e Ia prestazione, anche a favore di terzi, di avalli, fideiussioni e altre garanzie, reali comprese. 4.3 Sono espressamente escluse le attivita riservate a soggetti iscritti in albi professionali e le attivita di cui all'art. 106 del decreto legislativo n. 38511993 nei confronti del pubblico. TITOLO II CAPITALE SOCIAL£ ED OBBLIGAZIONI ARTC! OLO 5-MISURA DEL CAPITALE 5.1 II capitale sociale sottoscritto e versato e pari ad Euro 600.000.000 diviso in numero 960.200.000 azioni ordinarie prive di indicazione del valore nominale. 5.2 II capitale sociale puo essere aumentato anche con conferimenti diversi da denaro nei limiti consentiti dalla Iegge. 5.3 Nelle deliberazioni di aumento del capitale sociale a pagamento, il diritto di opzione puo essere escluso nella misura massima del I 0% (dieci per cento) del capitale sociale preesistente, a condizione che il prezzo di emissione corrisponda a! valore di mercato delle azioni e cio sia confermato in apposita relazione da un revisore legale o da una societa di revisione legale. ARTICOLO 6-AZIONI 6.1 L'Assemblea puo deliberare l'emissione di azioni fomite di diritti diversi da quelle ordinarie, in conformita aile prescrizioni di Iegge. 6.2 Le azioni sono indivisibili. In caso di comproprieta, i diritti dei contitolari sono esercitati da un rappresentante comune. 6.3 L'eventuale introduzione, modificazione o rimozione di vincoli alia circolazione del titoli azionari non attribuisce diritto di recesso ai soci che non hanno concorso all'approvazione della relativa deliberazione. 6.4 E consentita, nei modi e nelle forme di Iegge, l'assegnazione di utili e/o di riserve di utili ai prestatori di lavoro dipendenti della Societa o di societa controllate, mediante I 'emissione di azioni ai sensi del primo comma dell'art. 2349 del codice civile. ARTICOLO 7-OBBLIGAZIONI 7.1 La Societa puo emettere obbligazioni, anche convertibili, in conformita aile norme di Iegge determinandone le modal ita e condizioni di collocamento. 7.2 Gli oneri relativi all'organizzazione delle Assemblee degli obbl igazionisti sono a carico della Societa che, in assenza di determinazione da pmte degli obbligazionisti, nelle forme di Iegge, si fa altresl carico della remunerazione dei rappresentanti comuni, nella misura massima stabilita dal Consiglio di Amministrazione per ciascuna emissione, tenuto conto della relativa dimensione. 2
TITOLO III ASSEMBLEA ARTICOLO 8-DIRITTO DI INTERVENTO 8.1 Nel rispetto della normativa vigente gli aventi diritto di voto nell'Assemblea possono esercitarlo prima dell'Assemblea in via elettronica, se previsto nell'avviso di convocazione e con le modalita in esso precisate. 8.2 Ogni avente diritto al voto puo farsi rappresentare in Assemblea, rilasciando apposita delega a persona fisica o giuridica, nei limiti di Iegge. La Societa ha facolta di designare per ciascuna Assemblea uno o pili soggetti ai quali gli aventi diritto possono conferire delega per Ia rappresentanza in Assemblea ai sensi della disciplina vigente. Gli eventuali soggetti designati e le necessarie istruzioni operative sono riportati nell'avviso di convocazione della riunione. 8.3 La notifica elettronica della delega potra essere effettuata mediante utilizzo di apposita sezione del silo internet della Societa ovvero mediante trasmissione perposta elettronica, secondo le modalita indicate nell'avviso di convocazione dell'Assemblea. ARTC! OLO 9 - POTERI 9.1 L'Assemblea, ordinaria o straordinaria, delibera sulle materie ad essa espressamente riservate dalla Iegge e dal presente statuto. ARTICOLO 10-CONYOCAZIONE 10.1 L'Assemblea e convocata ogni volta che il Consiglio di Amministrazione lo creda opportuno, o quando ne sia richiesta Ia convocazione ai sensi di Iegge, nei termini e con le modal ita prescritti dalla disciplina di Iegge e regolamentare di tempo in tempo vigente. I 0.2 In caso di mancata costituzione in seconda convocazione, I'Assemblea straordinaria puo riunirsi in terza convocazione. E peraltro facoltil del Consiglio di Amministrazione convocare I'Assem blea ordinaria o straordinaria in unica convocazione, come per Iegge. 10.3 L'Assemblea ordinaria e convocata aile condizioni di Iegge almeno una volta all'anno, non oltre 180 giorni dalla chiusura dell'esercizio sociale. Essa delibera sulle materie di Iegge e autorizza, ai sensi dell'art. 2364, comma 1, numero 5, del codice civile, il compimento di operazioni con parti correlate alia Societil, nei casi e con le modalita previsti dall'apposita procedura adottata dal Consiglio di Amministrazione, ai sensi della disciplina in vigore. I 0.4 L'Assemblea ordinaria e straordinaria si riunisce, anche in luogo diverso dalla sede legale, purche in Italia. ARTICOLO 11 - ASSEMBLEA ORDINARIA E STRAORDINARIA 11.1 I quorum costitutivi e deliberativi dell'Assemblea sono previsti dalla Iegge, fatto salvo quanto previsto al successivo articolo 11.2. 11.2 Ai fini dell'adozione delle deliberazioni sulle seguenti materie, I'Assemblea delibera con il voto 3
favorevole di almeno ii 75% del capitale con diritto di voto presente in Assemblea: (a) fusione e scissione (ad eccezione delle delibere di fusione e scissione di cui a! successivo articolo 18.2 che rientrano nella competenza del Consiglio di Amministrazione secondo quanto ivi previsto); trasferimento della sede legale all'estero e trasformazione; scioglimento volontario; aumento o riduzione di capitale, ad eccezione (i) degli aumenti di capitale senza limitazione o esclusione del diritto di opzione deliberati in presenza di perdite nei casi di cui all'art. 2447, e (ii) degli aumenti di capitale senza Iimitazione o esclusione del diritto di opzione, il cui prezzo di sottoscrizione (inclusivo del sovrapprezzo) sia almeno pari a! valore della media aritmetica dei prezzi di chi usura del titolo sui mercato MTA nei sei mesi che precedono I'avviso di convocazione dell'assemblea convocata per deliberare I'aumento di capitale) e che (x) siano a!servizio di investimenti approvati dal Consiglio di Amministrazione oppure (y) siano necessari a prevenire o rimediare Ia violazione di covenant previsti da contratti di finanziamento di cui Ia Societa sia parte o situazioni di insolvenza della stessa oppure (z) siano deliberati in presenza di perdite nei casi di cui all'art. 2446; altre modifiche dello statuto (ivi inc!use Ie modifiche del presente articolo II dello Statuto), fatta eccezione per (i) gli aumenti o riduzioni di capitale di cui alia precedente Iettera (d) esc!usi dall 'ambito di applicazione della maggioranza qua!ificata di cui a! presente articolo 11.2, (ii) le delibere rientranti nella competenza del Consiglio di Amministrazione ai sensi di quanto previsto al succdesessiivgonaptaordagarlaPfroe1si8d.e2n; treesmtaenddeosimpeorcciooninfutenszoi,opneerdmi eSreigfrientiadriioc.h1i2ar.4ez1z1a,Pcrheesildeednetelidbeelrleadriiucnuiioanlep-trreaceI'daletnrote-vpeurniftioca(iI)asraerganonlaoriatappdreolvlaatceocstointuizqiounoerudmelld'aedliubnearnaztiav,iapcrceevritsatiI'didaeInetgitgaee; IIead!eegliibtteirmeadziioaunteodriezizparzeisoennetid,edlilreigoepeirIaazvioornii, aconnchpeasrttai bciolrernedlaoteundidmivaegrsgoioorerdriinleevdaindzias,cauissseionnsei ddeelgl'lairatircgoolmo e2n3t6i4in, dcoicmatmi nae1l,l'anvuvmiseorod5i )c,odnevloccoadziicoenec.jv1i2le.5. (1b1) P(cr)es(did)e(net)e(df)elAlaRrTiu!nCiOonLeOad1o2t-tPaRIEe SopIDpoErNtuZnAe mEiCsuOreNaDiUfinZiIOdeNllE'orDdEinIaLtoAaVndOaRmle1n2t.o1d1e1l dPirbeastitdietonteeddeellleCvoontsaizgiloionid,idAefminmenindiosntreazIeiomneodoaclihtai neeafcacleertvaencdiopnreesiireidsuelIta'Atis;speumobslceeagolriedrienatrriaagelisitnrateorrvdeinnaurtiiadeueneorpeiguoslacrluotastvoorlig. i1m2e.6ntLoo. Isnvomlganimcaennztoa ddeelllPerreisuindieonntieadsesel mCobnlesaigrilidoedi iSAocmi me idniissctirpalziinoantoe d(ealdlai cIhegi gnee,fdaallepvreecsei)nptereSstiaetduetoI'Ae sdsaelmRbelgeoalalampeenrtsoodnealleeleAttsasecomnbilel evoatpopdroevllaatomcaogngidoerlainbzearaddelelci'aApsitsaelme bralepaproersdeinntaartioaidnelrliaun4ione. 12.2 L'Assemblea, su proposta del Presidente, elegge con il voto della maggioranza dei presenti un Segretario, anche a!di fuori Jegli azionisti. 12.3 Nelle ipotesi previste dalla Iegge e Iaddove il Presidente dell'Assemblea ne ravvisi l'esigenza, il verbale viene redatto per alto pubblico da Notaio
Societa. TJTOLOIV ORGAN!AMMINISTRATIVI E DI CONTROLLO ARTICOLO 13 - COMPOSIZIONE DEL CONSIGLIO DI AMMINISTRAZIONE 13.1 La Societa e amministrata da un Consiglio di Amministrazione composto da un minimo di 10 (dieci) ad un massimo di 13 (tredici) Consiglieri; i membri del Consiglio di Amministrazione dovranno appartenere ad entrambi i generi nel rispetto della disciplina pro tempore vigente relativa all'equilibrio tra generi. 13.2 II numero dei componenti il Consiglio di Amministrazione e determinato in base all'esito della votazione sulla nomina dello stesso, come specificato ai successivi articoli da 13.9 a 13.13. 13.3 La nomina del Consiglio di Amministrazione avviene nel rispetto della disciplina di Iegge e regolamentare applicabile (ivi incluso il collegamento con Ia lista che ottenga in Assemblea il maggior numero dei voti), sulla base di liste presentate dai soci ai sensi dei successivi commi, e nel rispetto del presente Statuto. 13.4 Tra gli amministratori nominati dall'Assemblea, un numero minimo corrispondente a] minimo previsto dalla disciplina di Iegge e regolamentare di tempo in tempo vigente deve possedere i requisiti di indipendenza stabiliti dalla disciplina di Iegge e regolamentare di tempo in tempo vigente. II venir meno dei requisiti di indipendenza come sopra previsti in capo ad un amministratore non ne determina Ia decadenza se i requisiti permangono in capo a] numero minimo di amministratori che devono possederli. 13.5 Ogni socio puo presentare o concorrere alia presentazione di una sola lista e ogni candidato puo presentalr'isnieisnisutnenazsaoldai lciastuasae dpieninaedleigingiebleilgitgaibeildiitai.nLcoemlipstaetibchileiticlo, nntoenncghaenlo'esuinstneunmzaedroeidriecqaunidsiitdiacthi epaforisosersuopperreisocrreitatitpreerdleevroisnpoetetsisveerecacroicmhpeonsotencdha6c(ainvd)ildeaatiltarpepinarftoernmeanztiioandiernicthraiemsbtei di aglelaneIreig, gine me oddalolatanloerdmaactiovnasaenptpilriecaIabinleo.mCionna dlei duinchCioanraszigiolinoi,dviiAenmemdeinpiosstriataztioonpee,rsceicaoscnudno cqaunadnitdoaptoreuvnisctourdriaclupluremsevnitteaeStraigtuutaor,dcaonntefolremcearaaltitaerdiisstciciphleinpaeprsroontaelmi epoprreofveisgseinontealrieclaotnivla'inadllic'eaqzuioilniberdioegtrlai ignecnaerirci.h1i 3d.i6aHmamninnoisdtriariztitoondei eprceosnetnrtoalrloe lreicloispteerstiopltraenstsooiaslotrcei scohcei,edtaaesodleilol 'iidnosineemiteilaadqaulatrliifsioccari,sisicaonmoecoinmdpipleesnsdivenamte,enalteiatsittorelagruiaddi eaizicornitierraipdpirIeesgegnetaendtiiIqaumeIiIsiufraattriicphrioepsrtiaddaallllaaSdoisccieiptali.nEavreengtoulaalmi veanrtiaarzeioenmiacnhaetaddovalelsasCeroomvmeriisfsiicoanrsei Nfianzoioanl aglieompeorldeiseofcfieetttaiveoIsavbologrisma.e1n3to.7dUelnl'iAtasmseemntbeleaacsioasncoutneamlpisetast,ivenamtroenitteercmominui npirceavtiestailidaalSloacnioetriml.aLtievalisdtieIpeegrglee equraelgionlaomn esonntaoreosdsietrevmatpeoleinptreemdeptotevpigreesnctrei,zdioenbib,osnoonodecpoonssiitdaerrsait(ei)cloeminefnoormn apzrieosneintraetlea.ti5ve all'identita dei soci che hanno presentato Ia lista, con indicazione della partecipazione complessiva detenuta, (ii) le accettazioni della candidatura da parte dei singoli candidati, (iii) le dichiarazioni con le quali i medesimi attestano, sotto Ia propria responsabilita,
13.8 Ogni avente diritto a!voto pub votare una sola !isla e, nell'ambito del presente statuto, per "Lista Qualificata" si intende qualsiasi lista che abbia ottenuto un numero di voti superiore a! 25% del capitale della Sociela con diritto di voto. 13.9 Ai fini dell'elezione del Consiglio di Amministrazione: I) qualora, all'esito delle votazioni, risulti una sola o nessuna Lista Qualificata, si applichera quanto previsto all'articolo 13.10; 2) qualora, all'esito delle votazioni, risultino due Lisle Qualificate e nessuna di tali Lisle Qualificate abbia ottenuto un numero di voti superiore a!50% del capitale della Societa con diritto di voto, si applichera quanta previsto all'articolo 13.11; 3) qualora, all'esito delle votazioni, risultino due Lisle Qualificate e una di tali Lisle Qualificate abbia ottenuto un numero di voti superiore al 50% del capitale della Societa con diritto di voto, si applichera quanta previsto all'articolo 13.12; 4) qualora, all'esito delle volazioni, risultino tre Lisle Qualificate, si applichera quanto previsto all'articolo 13.13. 13.10 Nel caso di cui all'articolo 13.9, punto 1), all'elezione del Consiglio di Amministrazione si procede come segue: I) il numero dei componenti del Consiglio di Amministrazione e pari a 13, salvo quanto previsto a] successivo punlo 4); 2) dalla lista che ha ottenuto il maggior numero di voti sono tratti, nell'ordine progressivo con il quale sono elencati nella lista stessa, I 0 amministratori; 3) gli altri 3 amministratori sono lratti dalle altre lisle votate e a tale fine i voti ottenuti dalle lisle vengono divisi successivamente per numeri interi progressivi. I quozienti cosi ottenuti sono assegnati progressivamente ai candidati di ciascuna di tali lisle, secondo I'ordine dalle stesse rispettivamente previsto. I quozienlicicaossciuantatrLibiustitaiQaiucaalinfdicidataatisdoenloletrvaatrtii,enleisllle'orsdoinnoedpirsopgorsetsisiinvouncaonunilicqaugarlaedsuoantooreilaedneccarliesnceellnate!.isRlaissutletsasnao, 5eleamttimcionliosrtaractohrei;h3a)nngoli oatltterinu3toami mquinoizsiternattoi rpiislioenloevnaolmi. iNnealticiansobaisnecauiqupialni lcoapndreidvaisttioaab!bpiaunnotoo3ttedneul tporelocesdteensstoe pquunotzoie1n3te.1, 0ri;s4u)llfaatetloetstaolvilocqanuadnidtoalpordevelilsatoliasgtalicahretincoolni a1b3b.1ia4aen1c3o.r1a5eclehtetoseaglcuuonnoam, nmelinciasstroaldoiraes.sIennszuabdoiradlitnree,lsisi lper,oicl enduemaervootdaeziiocnoemdpiobnaelnlotitldaeglgCioondsaigplairotedideAllm'Amssineimstbralezaio, nriesuelplaanrdi oa eIl0etntoomil icnaantidiidnacloon(ftorarmquiteitllai aqupaanritloapdrieqvuisotzoiean!pterelcraeddeentttee lpiuslnet)oc2h)e. 1o3tt.e1n2gaNpelilciavsootid;i4c)ufiaattlol'asratlivcoolqou1a3n.l9o, ppruenvtiost3o),aagllli'ealretzicioonlie1d3e.1l 4Coen1s3ig.1l5iocdhieAsmegmuoinnios,trianzicoanseo sdiiparsosceendzea cdoimaletrseelgisulee:, 6il numero dei componenti del Consiglio di Amministrazione e pari a 10 nominali in conformila a quanto previBlo a!precedenle punlo 2). 13.11 Nel caso di cui all'articolo 13.9, punlo 2), all'elezione del Consiglio di Amministrazione si procede come segue: I) il numero dei componenti del Consiglio di Amminislrazione e pari a 13, salvo quanto previsto al successivo punto 3); 2) da
I) il numero dei componenti del Consiglio di Amministrazione e pari a 13, salvo quanto previsto a! successivo punto 5); 2) dalla Lista Qualificata che ha ottenuto il maggior numero di voti sono tratti, nell'ordine progressivo con il quale sono elencati nella lista stessa, I 0 amministratori; 3) dalla seconda Lista Qualificata sono tratti, nell'ordine progressivo con il quale sono elencati nella lista stessa, 2 amministratori; 4) l'altro amministratore e il primo candidato della piu votata delle altre liste; 5) fatto salvo quanto previsto agli articoli 13.14 e 13.15 che seguono, nel caso di assenza di altre lisle, il numero dei componenti del Consiglio di Amministrazione e pari a 12 nominati in conformitit a quanto previsto ai precedenti punti 2) e 3). 13.13 Nel caso di cui all'articolo 13.9, punto 4), all'elezione del Consiglio di Amministrazione si procede come segue: I) il numero dei componenti del Consiglio di Amministrazione e pari a 13, salvo quanto previsto al successivo punto 4); 2) da ciascuna Lista Qualificata sono tratti, nell'ordine progressivo con il quale sono elencati nella lista stessa, 4 amministratori; 3) l'altro amministratore e il primo candidato della piu votata delle altre liste; 4) fatto salvo quanto previsto all'articolo 13.14 che segue, in caso di assenza di altre lisle, il numero dei componenti del Consiglio di Amministrazione e pari a 12 nominati in conformitit a quanto previsrtiospaeltptarteoceildneunmteepruonmtoin2i)m. a13d.i1a4mQmuianloisrtaraItaorciommupnoistiizdioeni eredqeulils'oitrigdainiondcoiplleengdieanlezachperedveirsitvoiddaalilaprdeicsecdipelnintiaadrtiicIeogligdeae1r3e.g1o0laam1e3n.t1a3rendointienmclpuodain, ttreamgploi avmigmeninteis,tirnatsoorsitriitsuuzlitoantiendoemgliinaatmi,milinniusmtraetroorimtrinatimti odadlliealmismleinmisetnraotovroitamteun(ditiivdeersi eredqauuisnitai LdiisitnadQipueanldifeincaztaa)prneovnisitniddiaplelanddeisnctii,polivnea vdei Ineegsgieaneor,eagoplaarmtireentdaarleladilitsetammpoenino tveomtaptoa.vIingeanstsee,n!z'ualdtiimliosleeledtitvoedrsiecidaaslcleunLaislliestQa cuhaelifaibcabtiea,ell'AetstoseamlmbleenaonuonmainmemrainciosntraletomreagegcihoerannozneadbibIeiaggeleetutno nnuemppeurroeduinaammmmininisitsrtaratotoriredomtautniidtoeidperierdeeqtutiisrietqi udiisiintidpipeer nqdueannztao-anepcaerstsiraeridaaallfaalriestsai pcihuevriostualttai-reisspoestttiatutoitoil, nteunmuetorocmonintoimdeolld'oiradminmeidniisetlreantocraizmiounneitdiedieciarnedqiudiastiitiindiliisntda,ipdeanldpernimzaopcraenvdisitdoatdoalnloandieslceitptolindaeldlai Imegedgeeseimreagloislatamcehnetalriepdoissteegmgpao. Nineltecmaspooivnigceuni tdeaellai pliusntatip1i3u.1v0o(ta4t)a, 1si3a.n1o1(s4ta),ti1t3r.a1tt2i(d5i)eeci1a3m.1m3(i4n)isntroantotrrio,vneersasnunnooadpepilqicuaazliiomneu.n1it3o.1d5eiNreeqlluaismitiisudriainindicpueinIdaenczoam, pgolisiuzlitoimnei dduelel'oelregtatinodasitaalseolgisgteattsaonaoll'soobsbtliitguoitid,iteenquutiolibcroinattoradeglel'noerrdii,nqeudailoerlaenlacaczoimonpeosdieziiocnaenddiedlal'toirignalnisotac,odllaeigpiaritemcihdeuedecrainvdi iddaaitiprneocnedeelentttii adretlilcaomli eddae1si3m.1a0liast1a3c.1h3e nliopnocsosengsgenatnaoi.lQriusapleotrtao Idaelplr'eeqvuisiliiobnreiocthrea pi rgeecneedrei,stieaniuntaopcpolinctaobdileello'ocrdoimneundqiueelennocnazcioonnseednteai cdainfadridsaitci hine lriisstual,tigrliisuplettimtatioelieltntiudmeelrgoemneirneimpoiudriaapmprmesiennistatrtaotodriicmiausncuitni adeliisrteaqduaiscituiidsiiainndoispteantidternazttai,allm'Aesnsoemqubalettaronoammimneinriitstcroantolrei smoangogsioosratintuzeitid,inIeelgnguemuenronunmeceersosadriiaamamd ainsissitcruartaorrei dl o'otattteimdpeierparnezdaetdtielrerqisupiseitttiop7er quanta necessaria a fare si che risulti
dell'equilibrio di genere, dai primi candidati non eletti della stessa !isla del genere meno rappresentato. In mancanza, all 'interne delle lisle da cui siano stati tratti almena quattro amministratori, di candidati del genere meno rappresentato in numero sufficiente a procedere alia sostituzione, oppure in mancanza di lisle da cui siano stati tratti almena quattro amministratori, I'Assemblea integra !'organa con le maggioranze di Iegge, assicurando il soddisfacimento del requisite, eventualmente disapplicando i punti 13.10(4), 13.11(4) e 13.12(5), ovvero-e per I'eventuale residua-in sostituzione degli ultimi eletti del genere piu rappresentato tratti dalla !isla piu votata. 13.16 Per Ia nomina degli amministratori, per qualsiasi ragione non nominati ai sensi del procedimento qui previsto, I'Assemblea delibera con le maggioranze di Iegge, assicurando il rispetto dei requisiti di Iegge e Statuto in materia di composizione dell'organa collegiale. 13.17 Se nel corso dell'esercizio vengono a mancare uno o piu amministratori, fatto salvo quanta previsto a!successive articolo 13.18, si provvede come segue: I) qual ora vengano a mancare uno o piu amministratori tratti da una Lista Qualificata da cui sia stato tratto - in sede di nomina del Consiglio di Amministrazione - un numero di amministratori non superiore a cinque, I 'amministratore o gli amministratori cecsesasstia)t:i(sia)rialnCnoonssoigstliitouidtii AmmedmiainnitestrcaozoipotnaezipoonteradparpoacretdeedreelaCi soennssigi ldieoldpiuAntmom4)incihsteraszeigouneeqcuoanl iolrparsimi taraottii pdriiumniacLanisdtiadQatui adleiflliacamtaeddeasciumiasiLainsotasQtautiatlriafitctia-tiancsheedenodni nsoiamnionastadteileCleotntisiinglsioeddeidAimnommininisatrdaezlioCnoen-fsiingolioa dqiuAatmtromainmimstrianzisiotrnaeto-ris;e(ivie) snieaspipanlioch-eeracihles,uqcucaeloosirvaocipounsilaor3ic)hqiueastloorpaesriitlrraitstipedtitoundaeiLriesqtauQisiutai ldifiiicnadtaipdeandceunizsaia(neo/ostdaitigternaettrie-)inprseesdceridttii ndoamllaindaisdceipl lCinoansdiigIleioggdei Ae mremgoilnaimsteranztaiorene(-ocainnqcuheeadmalmleinreisgtaraletodrii;a2u)toqduiaslcoipralivnaen, cgoannoriafemrimanecnatroe aulnl'oeqoupiliiubraiomdmiigneisnterareto)rdi itrtaetmtipdoaiunntaemLipsotavQigueanltief,icaabtabidaanocuiimsieadneosismtaitiretqrautitsi-itiindsieidneddipiennodmeninzaa d(ee/loCdoingseignleiroe)didAegmlimaminmistirnaizsitroanteor-idcieecsisaatmi.mQiunailsotrraatoIarip, irlimCaonassisgelmiobdleiaAumtimleinnoisntrcaozniofncennpiontreallaprcoavrviceadegrlei aamliamcioniosptrtaaztoiorinceodseiicnouoopvtaitai,ml'minitneirsotrCatoonrsiiagilisoensisiindteelnl'daertr.a2d3i8m6isdseiloncoardiioc,eccoinviclees(sgaazriaonnteenddeollaalcla'irnitceamcoondeelffCeottnosidgalliomdoimAemntma iinniscturiazilioCnoenisligrilsipoedttioAdmeimreinqiusitsriatziidoiniensdairpaenstdaetnozraiceo/sotidtui igtoenpeerrenpormesicnraittaisdseamllabldeiasrceip, leingalidaimIemgigneisetrraetgooriladmovenratanrneodpirtoevmvpeodeirnetaemcopnovvoicgaernetel',aossvevmerboleaanpchereIdaanlloemreingaaldeedlinauuotvoodiCscoipnlsiingaliocodni Arifmermimineinsttoraazliol'enqeu. iQliburailoordai igl eCnoenresi),glpiuordehi eAImamnoinmisitnraazdioegnlei sntoensspiossiasaapprporcoevdaetaredaalliaCcoonosipgtlaizoiodni eAdmeml pinriimstaraozidoeniepcroimn iilcvanodtoidfaatvionroenvoelleetdtii tarlamttei ndaalsleaimamedmesinimisatraLtiosrtianQounacliefsicsaattiatdraattciudiaslilaanporesdtaettitatraLtitsitgalQi aumalmifiicnaisttaraotocrhiecaebssbaitaindoailnlapcraerciecdae(ninzaasssoesntiztuaidtoi caamnmdiidnaistitrnaotonrei lteratttitiindanlulammereodseusifmficaielinsttea oseacvoenndtoi iqmuaendteasiinmdiicreaqteuiaslitpirdesi einndteippeunndtean2z)a. Q(eu/oaldoirageInaeprrei)mdaegalsiseammbmlienaisuttrialetonrion
confermi nella carica gli amministratori cosi cooptati ai sensi del presente punta 2), l'intero Consiglio si intendera dimissionario, con cessazione della carica con effetto dal momenta in cui il Consiglio di Amministrazione sara stato ricostituito per nomina assembleare, e gli amministratori dovranno provvedere a convocare 8
l'assemblea per Ia nomina del nuevo Consiglio di Amministrazione; 3) qualora vengano a mancare uno o piu amministratori tratti da una Lista Qualificata da cui siano stati tratti -in sede di nomina del Consiglio di Amministrazione cinque o dieci amministratori e non si sia potuto dare luogo alia sostituzione ai sensi dei precedenti punti I) e 2), l'intero Consiglio si intendera dimissionario, con cessazione della carica con effetto dal momenta in cui il Consiglio di Amministrazione sara state ricostituito per nomina assembleare, e gli amministratori non cessati dovranno provvedere a convocare l'assemblea per Ia nomina del nuevo Consiglio di Amministrazione; 4) qualora vengano a mancare uno o piu arnministratori tratti da una lista diversa da una Lista Qualificata, il Consiglio di Amministrazione potra provvedere alia sostituzione degli amministratori cessati ai sensi dell'art. 2386 del codice civile, con deliberazione assunta a maggioranza assoluta dei votanti. Qualora Ia prima assemblea utile non confermi nella carica gli amministratori cosi cooptati, Ia stessa assemblea provvedera alia nomina dei sostituti con deliberazione assunta con le maggioranze di Iegge. 13.18 Resta fermo che, ogniqualvolta vengano a mancare almeno cinque componenti del Consiglio di Amministrazione nominati per deliberazione assembleare (ivi inclusi gli arnministratori risultati confermati nella carica per deliberazione assembleare in seguito a sostituzione ai sensi del precedente articolo 13.17), per qualsiasi causa o ragione, l'intero Consiglio si intenderit dimissionario, con cessazione della carica con effetto dal momento in cui il Consiglio di Amministrazione sara stato ricostituito per nomina assembleare, e gli amministratori non cessati dovranno cporomvuvneidcearepraevceonntviovcaarnreenIte'asgsleimarbgloema penertiIoagngoemttiondaidteraltntauzoivooneCnoenlscigolrisooddieAllma rmiuinniisotnraezcioonnesi.lAiaRreTeICprOoLvvOed1e4-aPfRfinEcShIeDaEdNegTu£a-tVeIiCnfEorPmRaEzSioIDniEsNulTle£m-SaEteGrRieEdTaAeRsaImOin1a4r.e1 vIIenCgoannsoigfloiornditieAamtumttiiniisctoranzsiiognlieereil,etgegnuetforacoi nptroopdreillmeecmirbcroisutannPzeredseidl ecnatseo-.o1v5e.3l'ALsascemonbvloeacanzoionnvei vaibebnieafgaitittapcroonvvmeedzuztoi -iedopnueoi naloima ilnuacereduenl oteomppioudViipcreePavrevsiisdoe,ndtii.reIg4o.2laIanlmcaesneod5i a(scsinenquzae)ogdioi mimipperdimimaednetlal'addeul nParensziad,esnatelvlooiscoasstiitud'iuscrgeeinlzVainceeiPqrueasilidevnatceopmilul naqnzuieanefofeptetur aettaa,csoennaolmmeinnaote1,2o(dI'oAdmicmi)inoirsetrdaitoarnetiDcieploe.gDateellsaecnoonmvioncaatzei,oonpepvuireeniel cnoenllsoigsltieesrseop!ielrlmaninzeiadnaotopearvevtias.o1a4i.S3iInIdCacoin. s9iglio di Amministrazione puo eleggere un Segretario scelto anche all'infuori dei suoi membri. ARTICOLO 15 - ADUNANZE DEL CONSIGLIO 15.1 II Presidente, o chi ne fa le veci, convoca il Consiglio di Amministrazione presso Ia sede della Societa o altrove, di propria iniziativa e quando ne riceva domanda scritta, da almeno un quinto dei Consiglieri in carica o dai Sindaci. 15.2 II Presidente
15.4 La partecipazione alle riunioni consiliari puo avvenire-qua1ora i1 Presidente o chine fa 1e veci ne accerti Ia necessita - mediante mezzi di te1ecomunicazione che consentano Ia partecipazione al dibattito e Ia parita informativa di tutti gli intervenuti. ARTC! OLO 16-VALID ITA E VERBALIZZAZIONE DELLE DELIBERAZIONI CONSILIARI 16.1 Per Ia validita delle deliberazioni del Consiglio di Amministrazione occorreranno Ia presenza della maggioranza degli Amministratori in carica ed il voto favorevole della maggioranza degli Amministratori intervenuti, fatto salvo quanto previsto ai successivi articoli 16.3 e 16.4. 16.2 Le deliberazioni del Consiglio di Amministrazione saranno verbalizzate nel libro delle deliberazioni del Consiglio da tenere e conservare ai sensi dell'art. 2421, n. 4, del codice civile sottoscritte dal Presidente e dal Segretario o da un Notaio. Quando sia prescritto dalla Iegge o il Presidente lo ritenga opportune, le deliberazioni saranno verbalizzate da un Notaio scelto dal Presidente del Consiglio di Amministrazione. 16.3 Per Ia validita delle deliberazioni del Consiglio di Amministrazione sulle materie di cui a! successive articolo 16.4 occorrera Ia presenza e il voto favorevole di: (a) almeno 9 amministratori qualora il Consiglio di Amministrazione sia stato nominata ai sensi del punto 13.10 oppure del punto 13.11 oppure del punto 13.12; almeno 8 amministratori qualora il Consiglio di Amministrazione sia stato nominate ai sensi del punto 13.13. (b) 16.4 Sono soggette alle maggioranze qualifAicmatme diniicsutriaaz]iopnreecoevdveenrtoe uanrtiicnoclroem16e.n3toIeddeelll'iibnedreabziitoanmiednetloCooltnresi6glviooldtieAI'EmBmIiTnDisAtra(zdieobnietos,upllaetrsiemgoun.eiontni emttaoteerdieE: B(aI)TaDpAproqvuaazliioongegeetmtooddeilfliachpeiudirebcuedngteetdeispcilaonsiurinedau]smtriearlcia, tiov)i;ianpcplursoiviapziiaonnieodpie"rcaatipveixd"iodedtita"golpieoxr"elpaetrivviaalgolrieincovmesptilmesesnivtio, icluimstiunliatporeszuzbi ansoenacnMnuiapleiasnui pdeireioffriecideinotaltmreeniltoI 0an%nuriaslpeeptteor aIgalriiidmupzioorntieidnediiccaotsitni eoippeiraantiiviin;dnuosmtriinaali ee rbeuvdogceat(aivpiprinocvlautsi;aaIp'apttrroivbauzziioonneedeiIpaiarenviodciastdoecikr-eolpattiiovni pooateltrrii) mdeelcl'cAamnimsminiidstiriantcoerentDivealzeigoantoe deedgelli PamremsidineinsttreadtoerliCeo/onsdiigdliiorigdienAtimcmoninriestsrpaozniosnabeielitdaestetrramteingiaczhioen; eapdperlorvealaztiiovneecdoimpproepnososte(imallp'aressgeiumdbicleaatodielicsooncfiesruimmeantteoriaei scoogngseigttleiearlil'daipppolitcearizipoenrespdeelciqfuicoiraufmfadrieolidbeorpaetirvaeziaosnsie)mnbolnecaMrenraofmfoirnzaaetoredvi ocucai a(ell'darettiecromloin1a1z.i2o;nceodmeipirmeleantitvoi dpiooteprei)radziiounniC, oommiotadtieficEasedciuctoivnotr;aattciq, uciosntopoarctiescsoirorneeladtei palairateScoipciaeztiiotndii, iamzipeonrdtoe sourpaemriiodre'aaziEenudroa,5d0i0ri.t0ti0r0eapleirimsinmgooblailioapriereaazlitorni ebeondi ocpoesrtiatzuieonntii tirmam!oorboilciozzllaezgiautnei, dcoi vnaelsocrleussuiopneeriionreoganEiucraoso5, ma ipliroesnciipnedrerceiadsacluln'ima oppoertroa,zdioenlle'e; ssetirpcuizliaoz,iodneelladirinnuuonvciiacoondtrealtltai (dbi)f(inc)an(zdi)a(me)en(ft)o(og)co(hm)u1n0que assunzione di nuovi debiti di natura finanziaria che determinino un incremento del rapporto debito/patrimonio netto rispetto a quanto indicate nel piano industriale approvato dal Consiglio di
transazione di qualunque azione (giudiziale o stragiudiziale) tra Ia Societa e parti correlate alia stessa Societa; approvazione delle deliberazioni di fusione per incorporazione in INWIT S.p.A. delle societa di cui IN WIT S.p.A. possegga almeno il 90% delle azioni o quote ed il trasferimento della sede della Societa all'intemo del territorio nazionale, previste all'articolo 18.2 del presente statuto; nomina di CFO e Direttore Generale. (i) (j) ARTC! OLO 17 -COPIE ED ESTRATTl 17.1 Gli estratti dal libro dei verbali delle adunanze consiliari, firrnati dal Presidente o da due amministratori e controfirrnati dal Segretario, fanno piena prova. ART!COLO 18-POTERI DEL CONSIGLIO-DELEGHE 18.1 AI Consiglio di Amministrazione spetta Ia gestione della Societa, essendo di sua competenza tutto cio che per Iegge o per Statuto none espressamente riservato all'Assemblea. 18.2 Nei limiti di Iegge, alia competenza del Consiglio di Amministrazione sono attribuite (e pertanto non sono delegabili): (i) le deterrninazioni di fusione per incorporazione in INWIT S.p.A. o di scissione a favore di INWIT S.p.A. delle societa di cui INWIT S.p.A. possegga almeno il 90% delle azioni o quote; (ii) Ia riduzione del capitate sociale in caso di recesso del socio; (iii) l'adeguamento dello Statuto a disposizioni normative inderogabili; (iv) il trasferimento della sede della Societil all'interno del territorio nazionale, nonche l'istituzione o Ia soppressione di sedi secondarie; (v) l'esercizio, Ia rinuncia e Ia transazione di qualunque azione (giudiziale o stragiudiziale) tra Ia Societil e parti correlate alia stessa Societa, per importi superiori a Euro 200.000 (per singolo esercizio, rinuncia o transazione, ovvero per operazioni collegate). 18.3 Perre1v'eosceacupzeirognieudsteallceapursoap, rsieendtietloibiel rpaazrieorneideepl eCroIlaleggeisatiSoinnedascoacliea,leilidl iCriognesnitgelipor,enpeolsl'toosaseliravarendzaazdioeni elimdeiitiddoicIuemggeentei cnoelntraisbpileittsoocdieeltaprriessceandtee Sintasiteumtoe(iavliCinocnlsuigsolioleddiiAspmosmizinioisntiradziicounieacllh'aerltiocohlaon1o6m.4in),aptau.o1:8is.6titIuIidreiruignenCtoempirteaptoosEtoseacluiatirveod,adzeiotenrerndineianddocounme ei nptoitceorinetadbiillinsuomcieertoardiediecvoemepsosenreenetis;pdeerlteogianremgaltieoripapdoirtaumnmi pinoitsetrria, zdieotneerm, fiinnaanndzoa ei lcimonittriodlelollae dpeolsesgeadeardeuinroeqoupisiiltiiAdimomnoinriasbtrilaittoarsi;tanboimlitiinpaerre gulnioamo mpiilniiDstirraettotorir.iLGaepneerrdailti,addeetierremqiuniasnitdiocnoemlepoatrttraibIauzdieocnaidee1nezafadcaolllatilc;anroicma,incahreedmeavnedeastsaerrie-daincchhiaeraintasdenaol CalonCsoinglsiiogldioi AdimAmminmisintriasztrioaznieonenet-ropterreonptaergaizoironniiddaeltlaercmoinnoasteceenpzaerduenl adidfeutrtaot.a1l1imitata di tempo. 18.4 II Consiglio puo costituire a! proprio interno Comitati con funzioni consultive e propositive, deterrninandone le attribuzioni e le facoltil. 18.5 II Consiglio di Amministrazione nomina il dirigente preposto alia redazione dei documenti contabili societari, previa parere obbligatorio del Collegia Sindacale, e nel rispetto delle disposizioni del presente Statuto. Salvo
ARTICOLO 19-INFORMATIVA DEGLI ORGAN!DELEGATI 19.1 Gli organi delegati riferiscono al Consiglio di Amministrazione e al Collegia Sindacale sull'attivita svolta, sui generate andamento della gestione, sulla sua prevedibile evoluzione e sulle operazioni di maggior rilievo economico, finanziario e patrimoniale, effettuate dalla Societa o dalle societa controllate; in particolare riferiscono sulle operazioni nelle quali essi abbiano un interesse, per canto proprio o di terzi, o che siano influenzate dal soggetto che esercita l'attivita di direzione e coordinamento, ove esistente. La comunicazione viene effettuata tempestivamente e comunque con periodicita almena trimestrale, in occasione delle riunioni ovvero per iscritto. ARTICOLO 20-RAPPRESENTANZA LEGALE DELLA SOCIETA 20.1 La rappresentanza della Societa, di fronte ai terzi e in giudizio, spetta al Presidente e, in caso di sua assenza o impedimenta, a] Vice Presidente, se nominata; spettano altresi disgiuntamente a ciascuno degli Amministratori delegati. 20.2 I legali rappresentanti di cui al comma precedente hanna facolta di conferire poteri di rappresentanza della Societil, anche in sede processuale, con facolta di subdelega. ART!COLO 21 - COMPENSI E RIMBORSO SPESE DEI CONSIGLIERI 2 i.l I consiglieri hanna diritto a!rimborso delle spese incontrate per I'esercizio delle !oro funzioni. L'Assemblea ordinaria puo deliberare inoltre un compenso annuale a favore del Consiglio di Amministrazione cosi come detenninare un importo complessivo per la remunerazione di tutti gli amministratori, inclusi quelli investiti eli particolari cariche. Tale compenso, una volta fissato, rimane invariato fino a diversa decisione dell'Assemblea. ARTICOLO 22 - COLLEGIO SINDACALE 22.1 II Collegia Sindacale e composto da 3 (tre) Sindaci effettivi e 2 (due) tSiitnodlaarciidsiuapzpiloennitir;aippmreemsebnrtiandteilICaomlliesguiraaSriicnhdiaecsataleddaollvaradnisncoipalpinpaarrteegnoelraemaednteanrteraemmbainiagtaendearllianCelormismpeitstsoiodneellNa adzisiocinpallienapeprroletesmocpieotrae eviIgaebnoters.a2. 22.22.6AUi nfiintai mdieqnuteanatcaipasrecvuinsatolidstaal,DenectrroeliuteMrminibntiruprdeivGistriadziaallea Gnoiurmstiaztiiavadedli 3Ie0gmgearezroeg20ol0a0mne.n1ta6r2e, daritt.eIm, cpoominmtaem3,psoi vcoignesnidtee,radneobbsotrneottaamltreenstiedaetptionseintatirsai (qiu)elIeIiindfeolrlma Sazoicoinetiarelelamtivaetearilel'ieddenitsiteattd.oeriisdoicai t1ti2vita connessi o inerenti all'attivita svolta dalla Societa e di cui all'oggetto sociale. 22.3 La nomina del Collegia Sindacale avviene nel rispetto della disciplina di Iegge e regolamentare applicabile, sulla base di lisle presentate dai soci. 22.4 Ogni socio puo presentare o concorrere alia presentazione di una sola lista e ogni candidato puo presentarsi in una sola lista a pena di ineleggibilita. 22.5 Hanna diritto di presentare le liste soltanto i soci che, da soli o insieme ad altri soci, siano complessivamente
che hanno presentato Ia lista, con l'indicazione della partecipazione complessiva detenuta, (ii) le accettazioni della candidatura da parte dei singoli candidati; (iii) le dichiarazioni con le quali i medesimi attestano, sotto Ia prop1ia responsabilita, l'inesistenza di cause di ineleggibilita e di incompatibilitil, nonche l'esistenza dei requisiti prescritti dalla disciplina, anche regolamentare, applicabile e dallo Statuto sociale e (iv) le altre informazioni richieste da Iegge. 22.7 Con le dichiarazioni viene depositato per ciascun candidato un curriculum vitae riguardante le caratteristiche personali e professionali, con I 'indicazione degli incarichi di amministrazione e controllo ricoperti presso altre societa. La lista per Ia quale non sono osservate le statuizioni di cui sopra e considerata come non presentata. 22.8 Eventuali variazioni che dovessero verificarsi fino a] giorno di effettivo svolgimento dell'Assemblea sono tempestivamente comunicate alia Societa. 22.9 Le liste si articolano in due sezioni: una peri candidati alia carica di Sindaco effettivo e l'altra peri candidati alia carica di Sindaco supplente. Le lisle che nell'una, nell'altra o in entrambe le sezioni contengano un numero di candidati pari o superiore a tre devono essere composte da candidati appartenenti ad entrambi i generi, in modo tale da consentire Ia nomina di un Collegia Sindacale, secondo quanto previsto dal presente Statuto, conforme alia disciplina pro tempore vigente relativa all'equilibrio tra generi. II primo d(eiii)cdaanldlaidtaetrizadilicsitaaspcuiunavosteaztiao,nseecvoienndeoiln'odridviindeuadtaolltarastiersesvaisporerivliestgoa,lieitsrcartittoti1n(eulln'a)pSpionsdiatocoreegfifsettrtoivcoh;e3a)bqbuiaalnoorae,saelrlc'eitsaittoo dl'eatlltievvitoatdaziiroenvii,srioisnueltliengoadleuedeLiicstoenQtiupaelrifuicnapteereioudnoa ndoi ntailnifLerisiolereQautarleifaicnantie. a2b2b.1ia0 oOttgenniuatoveunntenduimriettroo adlivvoottoi spuupoevriootraerealu5n0a%sodlaellicsatap.it2a2le.1d1eAllall'SeolecziieotanecodneldCiroitltloegdiiavSoitnod,a(ci)aldeaslliapLroiscteadQe ucaolmifeicsaetaguceh,efehramoottielnruistopeilttmo adgelgliaodr insucmipelirnoaddiivIoegtig, eseecorengdoolal'morednitnaeredianllaorsdteinsesaap]rceovlilsetgoa, msoennototrcaottni I2a(ldiustea)cShiendoattceinegfafeitntivAisesdem1b(luena)iSl imndagacgoiosrunpupmleenrtoe dee(iiiv)odtia:ll1a)Lqiusatal oQruaa, lailfli'ceasittaocdheellreisvuolttaazeisosneir,eriIsauslteicuonnadasollisatao pnieussvuontaatLa,issteacQonudaolilf'iocradtian,e(id) adlalallastleissstaa pchreevhisatoo,ttseonnuototrialtmti a1g(guino)r Sniunmdaercoo deeffievttoivtiosoendo1tr(autnt)i,Snienldl'aocrdoisnueppprloegnrtee;ss4i)voqucaolnorial,qaulal'leesistoondoelelleenvcoattaiznioenllia, rliissutaltsinteosstrae, dLuisete2 Q(duuael)ifSicinatdea,c(ii)efdfaeltltaivLiiesdtaIQ(uuna)1iSfiicnadtaacpoiusuvpoptlaetnatesoen(oiit)radtatill1a s(uecno)nSdinadliasctoa pefiufevttoivtaotae,dse1c(ounnd)oSli'nodrdaicnoesduaplplalesnttees,s(aiip)rdeavlilsatos,escoonnodatrLatitsitaI (Qunua)lSifiincdaatacopieuffveotttiavtao seodnIo(turna)ttSi 1in(duanc)oSsiunpdpalceonteef;fe2t)tiqvuoaeldor1a,(uanll)'eSsiintodadceollesuvpoptaleznioten,i,er(iisiui)ltdinaolladuteerzLaisLleisQtauQaluifailciafitceaetaneestsruatntao d1i(tuanli)LSiisntdeaQcouaelfiffeicttaitveoa. bNbeiallaotmteinsuutroa iunncnuuimIaercoomdipvoostiizisounpeerdioelrle'oarlg5an0o%sidaelsocgapgiettatlaeadlle'ollbabSliogcoiedtai ecqounildibirriitatotrdai gveonteor,i(,i1) 3da ciascuna Lista Qualificata, secondo I 'ordine dalla stessa previsto, sono tratti 1 (un) Sindaco effettivo ed 1 (un) Sindaco supplente e
qualora Ia composizione dell'organa collegiate o della categoria dei Sindaci supplenti che ne derivi non consenta il rispetto dell'equilibrio tra i generi, tenuto conto delloro ordine di elencazione nella rispettiva sezione, il secondo del genere piu rappresentato eletto dalla lista piu votata decade per assicurare l'ottemperanza a!requisite, ed e sostituito dal primo candidate non eletto della stessa Iista e della stessa sezione del genere meno rappresentato. In assenza di candidati del genere meno rappresentato all'intemo della sezione rilevante della predetta lista, l'Assemblea nomina il Sindaco effettivo o Supplente mancante con le maggioranze di Iegge, assicurando il soddisfacimento del requisite nel rispetto delle disposizioni di Iegge. 22.12 E nominata Presidente del Collegia Sindacale il componente effettivo tratto dalla lista meno votata da cui e stato tratto un componente effettivo. 22.13 Per Ia nomina dei Sindaci, per qualsiasi ragione non nominati ai sensi del procedimento qui previsto, I'Assemblea deIibera con le maggioranze di Iegge, assicurando il rispetto dei requisiti di Iegge e Statuto in materia di composizione dell'organa collegiate e della categoria dei Sindaci supplenti. 22.14 In caso di cessazione di un Sindaco tratto da una lista subentra, per quanta applicabile e fenno il rispetto dei requisiti di Iegge e di statuto in materia di composizione dell'organa sociale, il supplente tratto dalla medesima lista da cui e stato tratto il Sindaco cessato. La nomina di Sindaci per l'integrazione del Collegia Sindacale ai sensi dell'art. 2401 del codice civile e deliberata dall 'Assemblea a maggioranza assoluta dei votanti e comunque nel rispetto dei requisiti di Iegge e di statuto. 22.15 Previa comunicazione al Presidente del Consiglio di Amministrazione, il Collegia Sindacale puo convocare, ai sensi di Iegge, l'Assemblea e il Consiglio di Amministrazione oil Comitate Esecutivo2.3D.1eLtto'espeortceirzeiodisoccoinavleocsai zcihoinuedepuaol3e1ssdeirceemesberrecidtai tooginnidainvnidou.a2l3m.2enDteagdlai cuitailsicnuenttSiirnisdualctoan, tai edcaclebziiloannecidoedl epvoeteersesedriecdoendvootctaoreil I5'A%ss(ecminbqlueea,pcehrecepnutoo)esdseegrlei setseesrsciitdaatoacdcaaunntonnuamreearoridsei rSviandleagcai lneo, nsinincfheeriqoureesataduabe.b2ia2.r1a6ggLiaunptaortle'acmipmazoinotnaereapilaerriiaulnqiouninitdoedl eCloclalepgitiaateSisnodcaiaclael.e1p4uo avvenire - qualora il Presidente ne accerti Ia necessita - mediante mezzi di telecomunicazione che consentano Ia partecipazione al dibattito e Ia parita infonnativa di tutti gli intervenuti. 22.17 In caso di impedimenta del Presidente, lo sostituisce il Sindaco effettivo piu anziano per eta. 22.18 Larevisione legale dei conti e esercitata, ai sensi delle applicabili disposizioni di Iegge, da una societa di revisione legale abilitata ai sensi di Iegge. TITOLOV BILANCIO ARTICOLO 23 - CHIUSURA ESERCIZIO SOCIALE-RJPARTO UTILI
23.3 Il Consiglio di Amministrazione puo, durante il corso dell'esercizio, distribuire agli azionisti acconti sul dividendo nel rispetto delle disposizioni di Iegge in materia. 23.4 I dividendi non riscossi nel !ermine di cinque anni dal giomo della !oro esigibilitit si intendono prescritti a favore della Societit. TITOLOVI SCIOGLIMENTO ART!COLO 24 - LIQUIDATOR! 24.1 In caso di scioglimento della Societit, l'Assemblea determina le modalitit della liquidazione e nomina uno o pili liquidatori, fissandone poteri e compensi nei limiti di Iegge. TITOLOVII DISPOSIZIONI GENERAL! ARTICOLO 25 - DOMICILIAZIONE DEGL! AZIONISTI -FORO CONVENZIONALE 25.1 Il domicilio degli azionisti nei confronti della Societit si intende eletto, a tutti gli effetti di Iegge, presso il domicilio risultante dal Libro Soci. 25.2 Nel rispetto delle disposizioni di Iegge in materia, tutte le contestazioni fra gli azionisti e la Societit sono decise dall 'Autoritit Giudiziaria nella cui circoscrizione ha sede legale la Societit. ARTC! OLO-RINVIO 26.1 Per tutto quanto none disposto dal presente Statuto si applicano le disposizioni di Iegge. F.to Federico Rigoni F.to Antonio Corda F.to Carlo Marchetti notaio 15
Copia su supporto informatica conforme al documento originale su supporto cartaceo a sensi dell'art. 22,comma 2, D.Lgs 7 marzo 2005 n. 82 , in termine utile di registrazione per il Registro Imprese di Milano-Monza-Brianza-Lodi Firmato Carlo Marchetti Milano 25 marzo 2020 Assolto ai sensi del decreto 22 febbraio 2007 mediante M.U.I.
Exhibit 12
RULE 13a-14(a) CERTIFICATION
I, Nick read, certify that:
1. I have reviewed this annual report on Form 20-F of Vodafone Group Plc (the "Company");
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;
4. The Company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the Company and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the Company's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and
5. The Company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company's auditors and the audit committee of the Company's board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting.
2 July 2020 Date
/s/ Nick Read
Nick Read Chief Executive
RULE 13a-14(a) CERTIFICATION
I, Margherita Della Valle, certify that:
1. I have reviewed this annual report on Form 20-F of Vodafone Group Plc (the "Company");
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;
4. The Company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the Company and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the Company's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and
5. The Company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company's auditors and the audit committee of the Company's board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting.
2 July 2020 Date
/s/ Margherita Della Valle Margherita Della Valle Chief Financial Officer
Exhibit 13
RULE 13a-14(b) CERTIFICATION
Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), the undersigned officer of Vodafone Group Plc, a company incorporated under the laws of England and Wales (the "Company"), hereby certifies, to such officer's knowledge, that:
The Annual Report on Form 20-F for the year ended 31 March 2020 (the "Report") of the Company fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
2 July 2020 Date
/s/ Nick Read
Nick Read Chief Executive
The foregoing certification is being furnished solely pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code) and is not being filed as part of the Report or as a separate disclosure document.
RULE 13a-14(b) CERTIFICATION
Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), the undersigned officer of Vodafone Group Plc, a company incorporated under the laws of England and Wales (the "Company"), hereby certifies, to such officer's knowledge, that:
The Annual Report on Form 20-F for the year ended 31 March 2020 (the "Report") of the Company fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
2 July 2020 Date
/s/Margherita Della Valle
Margherita Della Valle Chief Financial Officer
The foregoing certification is being furnished solely pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code) and is not being filed as part of the Report or as a separate disclosure document.
EXHIBIT 15.1 Consent of Independent Registered Public Accounting Firm
We consent to the incorporation by reference in the following Registration Statements: (1) Registration Statement (Form F-3 No. 333-219583) of Vodafone Group Plc,
(2) Registration Statement (Form S-8 No. 333-81825) of Vodafone Group Plc, and (3) Registration Statement (Form S-8 No. 333-149634) pertaining to the Vodafone Global Incentive Plan;
of our reports dated 2 July 2020, with respect to the consolidated financial statements of Vodafone Group Plc and the effectiveness of internal control over financial reporting of Vodafone Group Plc included in this Annual Report (Form 20-F) for the year ended 31 March 2020. /s/ Ernst & Young LLP
London, United Kingdom 2 July 2020
EXHIBIT 15.2
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM We hereby consent to the incorporation by reference in the Registration Statements on Form F-3 (No. 333-219583) and Form S-8 (Nos. 333-81825, 333-149634) of Vodafone Group Plc of our report dated 7 June 2019 relating to the consolidated financial statements, which appears in the 2019 Annual Report to Shareholders, which is incorporated by reference in this Form 20-F. /s/ PricewaterhouseCoopers LLP London, United Kingdom 2 July 2020
PricewaterhouseCoopers LLP, 1 Embankment Place, London, WC2N 6RH T: +44 (0) 2075 835 000, F: +44 (0) 2072 124 652, www.pwc.co.uk PricewaterhouseCoopers LLP is a limited liability partnership registered in England with registered number OC303525. The registered office of PricewaterhouseCoopers LLP is 1 Embankment Place, London WC2N 6RH. PricewaterhouseCoopers LLP is authorised and regulated by the Financial Conduct Authority for designated investment business.
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