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Cautionary Statement Regarding Forward-Looking Statements

This document contains “forward-looking statements” within the meaning of the US Private Securities Litigation Reform Act of 1995 with respect to the Group’s financial condition, results of operations and businesses and certain of the Group’s plans and objectives.

In particular, such forward-looking statements include statements with respect to

  • Vodafone’s expectations as to launch and roll out dates for products, services or technologies offered by Vodafone;
  • expectations regarding the operating environment and market conditions;
  • intentions regarding the development of products, services and initiatives introduced by Vodafone or by Vodafone in conjunction with third parties;
  • revenue and growth expected from our total communications strategy;
  • the development and impact of new mobile technology including the development of 4G technology and the launch of faster data speeds;
  • anticipated benefits to the Group from cost efficiency programmes,including outsourcing of IT functions and network sharing agreements;
  • growth in customers and usage;
  • expected growth prospects in Europe and the EMAPA region;
  • expectations regarding the performance of investments, associates, joint ventures and newly acquired businesses, including the expected performance of Verizon Wireless;
  • the Group’s expectations for revenue, adjusted operating profit, average foreign exchange rates, depreciation and amortisation charges, capitalised fixed asset additions, capital intensity, free cash flow, cash payments for tax and associated interest, payments of deferred capital expenditures, adjusted effective tax rates and foreign exchange rate changes contained within the Chief Executives Review and the Outlook statement of this document, and expectations for the Group’s future performance generally, including average revenue per user, costs, capital expenditures, operating expenditures and margins;
  • the expected contribution to the Group’s revenue of voice services, messaging services, data services, broadband services, fixed location pricing, internet services and mobile advertising;
  • the rate of dividend growth by the Group or its existing investments;
  • the expected contributions to the Group’s revenue from our business segment;
  • expectations regarding the Group’s access to adequate funding for its working capital requirements;
  • possible future acquisitions, including increases in ownership in existing investments, the timely completion of pending acquisition transactions and pending offers for investments, including licence acquisitions, and the expected funding required to complete such acquisitions or investments;
  • mobile penetration and coverage rates and the Group’s ability to acquire spectrum;
  • the impact of regulatory and legal proceedings involving Vodafone and of scheduled or potential regulatory changes;
  • expectations with respect to long term shareholder value growth; and
  • overall market trends and other trend projections.

Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as “anticipates”, “aims”, “could”, “may”, “should”, “expects”, “believes”, “intends”, “plans” or “targets”. By their nature, forward-looking statements are inherently predictive, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, the following:

  • changes in economic or political conditions in markets served by operations of the Group that would adversely affect the level of demand for mobile services;
  • greater than anticipated competitive activity, from both existing competitors and new market entrants, including Mobile Virtual Network Operators, which could require changes to the Group’s pricing models, lead to customer churn and make it more difficult to acquire new customers, and reduce profitability;
  • the impact of investment in network capacity and the deployment of new technologies, or the rapid obsolescence of existing technology;
  • slower than expected customer growth and reduced customer retention; changes in the spending patterns of new and existing customers;
  • the possibility that new products and services will not be commercially accepted or perform according to expectations or that vendors’ performance in marketing these technologies will not meet the Group’s requirements;
  • the Group’s ability to win 3G licence allocations;
  • the Group’s ability to realise expected synergies and benefits associated with 3G technologies;
  • the Group’s ability to expand its spectrum position;
  • a lower than expected impact of new or existing products, services or technologies on the Group’s future revenue, cost structure and capital expenditure outlays;
  • the ability of the Group to harmonise mobile platforms and delays, impediments or other problems associated with the roll out and scope of and other new or existing products, services or technologies in new markets;
  • the ability of the Group to offer new services and secure the timely delivery of high quality, reliable handsets, network equipment and other key products from suppliers;
  • the Group’s ability to develop competitive data content and services that will attract new customers and increase average usage;
  • future revenue contributions of both voice and non-voice services;
  • greater than anticipated prices of new mobile handsets;
  • changes in the costs to the Group of or the rates the Group may charge for terminations and roaming minutes;
  • the Group’s ability to achieve meaningful cost savings and revenue improvements as a result of its cost reduction programmes;
  • the ability to realise benefits from entering into partnerships for developing data and internet services and entering into service franchising and brand licensing;
  • the possibility that the pursuit of new, unexpected strategic opportunities may have a negative impact on the Group’s financial performance;
  • developments in the Group’s financial condition, earnings and distributable funds and other factors that the Board of Directors takes into account in determining the level of dividends;
  • any unfavourable conditions, regulatory or otherwise, imposed in connection with pending or future acquisitions or dispositions and the integration of acquired companies in the Group’s existing operations;
  • the risk that, upon obtaining control of certain investments, the Group discovers additional information relating to the businesses of that investment leading to restructuring charges or write-offs or with other negative implications;
  • changes in the regulatory framework in which the Group operates, including possible action by regulators in markets in which the Group operates or by the EU regulating rates the Group is permitted to charge; the impact of legal or other proceedings against the Group or other companies in the mobile communications industry;
  • the possibility that new marketing or usage stimulation campaigns or efforts and customer retention schemes are not an effective expenditure;
  • the possibility that the Group’s integration efforts do not reduce the time to market for new products or improve the Group’s cost position;
  • loss of suppliers or disruption of supply chains;
  • the Group’s ability to satisfy working capital requirements through borrowing in capital markets, bank facilities and operations;
  • changes in exchange rates, including particularly the exchange rate of pounds sterling to the euro and the US dollar;
  • changes in statutory tax rates and profit mix which would impact the weighted average tax rate;
  • changes in tax legislation in the jurisdictions in which the Group operates;
  • final resolution of open issues which might impact the effective tax rate; and
  • timing of tax payments relating to the resolution of open issues.

Furthermore, a review of the reasons why actual results and developments may differ materially from the expectations disclosed or implied within forward-looking statements can be found under Principal Risk Factors and Uncertainties. All subsequent written or oral forward-looking statements attributable to the Company or any member of the Group or any persons acting on their behalf are expressly qualified in their entirety by the factors referred to above. No assurances can be given that the forward-looking statements in this document will be realised. Neither Vodafone nor any of its affiliates intends to update these forward-looking statements.

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