Vodafone 2015 Annual Report Download - page 40
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Vodafone Group Plc
Annual Report 2015
38
Chief Financial Ofcer’s review
Our nancial performance
The increased commercial investments we began to make in
the prior year have translated into better performance with
revenue trends improving in each of the last three quarters.
My priorities
When I became CFO last April, I highlighted
three clear priorities which I believe will have
a signicant impact on our future nancial
performance: the execution of Project Spring
according to the nancial plan; the integration
of acquisitions, most notably KDG and Ono;
and a continued focus on cost efciency. On all
three, we are on track to deliver, but there
is still much more to do.
Our results are reviewed in more detail
on pages 40 to 48 of this report, but overall
I am satised that we have made important
progress in stabilising the nancial
performance of the business.
Project Spring execution
Our £19 billion, two-year investment
programme began in earnest early
in 2014. From both a logistical and nancial
perspective, we believe this is the biggest and
most intensive programme ever undertaken
by any telecoms operator. Vittorio has covered
many aspects of the execution in his review
on page 16, demonstrating the clear progress
we have made to date.
I am satised overall with deployment
against plan. We are a little ahead on our
network rollout in AMAP, particularly India,
and we are in line in Europe, with a couple
of exceptions. Our 4G build and network
modernisation in the UK is slightly behind
schedule, hampered by the complexity of site
access and planning restrictions. In Italy,
our bre to the cabinet (‘FTTC’) roll-out started
late, as a result of negotiations with other
operators in the market which were eventually
aborted. However, we are now making very
rapid progress.
Capital spend is on target, with total capex
for the year of £9.2 billion – up 46% year-on-
year. Cash ow generation was, as expected,
depressed by the level of spending. I remain
very condent that, once Project Spring
is completed, we will return to a more normal
level of capital intensity and generate strong
and growing cash ows.