Vodafone 2003 Annual Report Download - page 43

Vodafone Group Plc Annual Report & Accounts and Form 20-F 2003 41
Translated into US dollars per
Pounds per ordinary share ordinary share
Year ended
31 March Interim Final Total Interim Final Total
1999 0.013(1) – 0.013 0.020(1) – 0.020
2000 0.006 0.007 0.013 0.010 0.010 0.020
2001 0.007 0.007 0.014 0.010 0.010 0.020
2002 0.007 0.008 0.015 0.010 0.011 0.021
2003 0.008 0.009(2) 0.017 0.013 0.015(3) 0.028
Notes:
(1) In 1999 there were two interim dividends, the first of £0.006 per ordinary
share and the second of £0.007 per ordinary share. There was no final
dividend.
(2) The final dividend for the year was proposed on 26 May 2003 payable on
8 August 2003 to holders of record as of 6 June 2003.
(3) The final dividend will be payable in US dollars to ADS holders under the
terms of the Deposit Agreement.
The Company has historically paid dividends semi-annually, with the regular
interim dividend with respect to the first six months of the Company’s financial
year payable in February and the regular final dividend with respect to the
second six months of the Company’s financial year payable in August. The
directors expect that the Company will continue to pay dividends semi-annually.
In considering the level of dividend to declare and recommend, the Board takes
account of the outlook for earnings growth, operating cash flow generation,
capital expenditure requirements, acquisitions and divestments together with the
possibilities for debt reductions and share buy-backs. Accordingly, the directors
are recommending a final dividend of 0.8983 pence per share bringing the total
for the year to 1.6929 pence per share, representing a 15% increase over last
year’s total dividend per share. The Board expects progressively to increase the
payout ratio in the future.
On 5 February 2003, the Group announced that, with effect from the payment of
its final dividend payment in respect of the 2003 financial year, holders of ordinary
shares with a registered address in a country which has adopted the Euro as the
national currency will receive their cash dividend in euros, unless they wish to elect
to continue to receive dividends in sterling, are participating in the Company’s
Dividend Reinvestment Plan, or have mandated their dividend payment to be paid
directly into a bank or building society account in the United Kingdom. In
accordance with the Company’s Articles of Association, the sterling:euro exchange
rate will be determined by the Company shortly before the payment date.
Inflation
Inflation has not had a significant effect on the Group’s results of operations and
financial condition during the three years ended 31 March 2003.
Exchange rate information
Movements in exchange rates had no material impact on the total Group
operating profit, before goodwill amortisation and exceptional items, in any of the
three years ended 31 March 2003. The effect of translating the results of
overseas subsidiaries, joint ventures and associated undertakings at exchange
rates prevailing in the year ended 31 March 2002, would have been to reduce
total Group operating profit, before goodwill amortisation and exceptional items,
for the year ended 31 March 2003 by £25 million.
Retranslating the goodwill amortisation charge for the year ended 31 March
2003 at the average exchange rates applicable for the year ended 31 March
2002 would have reduced the charge by £365 million to £13,691 million, with a
corresponding reduction in total Group operating loss.
As disclosed above, cash dividends, if any, will be paid by the Company in
respect of ordinary shares in pounds sterling or euros, and exchange rate
fluctuations will affect the US dollar amounts received by holders of ADSs on
conversion by the ADS Depositary of all such cash dividends paid. Moreover,
fluctuations in the exchange rate between pounds sterling and the US dollar will
affect the US dollar equivalent of the pound sterling price of the ordinary shares
on The London Stock Exchange and, as a result, will affect the market price of
the ADSs in the United States.
The following table sets out, for the periods and dates indicated, the period end,
average, high and low Noon Buying Rates for pounds sterling expressed in
US dollars per £1.00, to two decimal places.
Years ended
31 March Period end Average(1) High Low
1999 1.60 1.65 1.72 1.60
2000 1.59 1.61 1.68 1.55
2001 1.42 1.47 1.60 1.40
2002 1.42 1.43 1.48 1.37
2003 1.58 1.54 1.65 1.43
Month High Low
November 2002 1.59 1.54
December 2002 1.61 1.56
January 2003 1.65 1.60
February 2003 1.65 1.57
March 2003 1.61 1.56
April 2003 1.60 1.55
May 2003(2) 1.64 1.59
Notes:
(1) The average of the Noon Buying Rates on the last day of each full month
during the year.
(2) In respect of May 2003, for the period from 1 May to 23 May 2003,
inclusive. The Noon Buying Rate was $1.6376 per £1.00 on 23 May 2003.
The following table sets out the average exchange rates of other principal
currencies of the Group.
Year to 31 March Change
Currency 2003 2002 %
Euro 1.56 1.63 (4.3)
Japanese yen 188.2 179.4 4.9
Accounting principles
FRS 17 issued in November 2000, replaces SSAP 24 and changes existing
accounting and disclosure requirements for defined benefit pension schemes.
When fully implemented, the principal changes will be the inclusion of pension
scheme surpluses or deficits on the balance sheet, analysis of components of
the pension charge between operating profit and net interest and the reporting of
actuarial gains and losses in the statement of total recognised gains and losses.
On 25 November 2002, the ASB announced that it was deferring the mandatory
requirement for its full adoption as a result of which the requirements of FRS 17
will first become mandatory for the Company for its accounting period beginning
1 April 2005. Until such time the existing transitional rules have been extended.
Disclosures required by FRS 17 can be found in note 34 to the Consolidated
Financial Statements, “Pensions”.