Integrated Report 2016-17 Vodafone Spain Connecting Everybody to Live a Better Today and Build a Better Tomorrow

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Integrated Report 2016-17 Vodafone Spain Connecting Everybody to Live a Better Today and Build a Better Tomorrow 1 Integrated Report 2016-17 Vodafone Spain Connecting everybody to live a better today and build a better tomorrow. Vodafone Power to you Integrated Report 2016-17 Vodafone Spain 2 4 Introduction Strategy 1 2 5 6 7 Vodafone in Analysis of the Performance Corporate Report Preparation Spain Environment Governance and Review 3 8 Risk Analysis Vodafone in Spain Integrated Report Annual Financial Video Statements 2016-17* * Available only in Spanish version Integrated Report 2016-17 Vodafone Spain 3 Introduction Letter from Key Indicators the Chairman and 2016-17 the CEO Profile and Aim of the Report Integrated Report 2016-17 Vodafone Spain Introduction Letter from the Chairman and the CEO 4 Message from the Chairman companies, governments and social partners this fiscal year. In this respect, Vodafone made a the trust of customers, institutions, suppliers and to work towards the achievement of the 17 direct economic contribution to Spain of €4.933 society in general, we will be in the best position to sustainable development goals and 169 targets. billion. successfully face whatever economic, social and environmental challenges arise in future. I believe Vodafone Spain, as a signatory of the UN Global Just as important as the economic aspect is our that this Report reflects all this effort and hope it is Compact, continues to work to demonstrate and social contribution, both in terms of employment of interest to you. renew its commitment to the 10 Principles of and social action. Here, Vodafone Spain contributed environmental improvement, labour standards, 37,388 direct and indirect jobs during 2016-17, respect for human rights and the fight against while the Vodafone Spain Foundation, another of corruption, integrating them into our strategy, the resources that the company has for developing culture and daily work. We have therefore defined its commitment to society, provided 5.1 million to the Strategic Sustainable Business Framework to innovation and social projects. Francisco Román develop our Vision: “Connecting everybody to live a better today and build a better tomorrow”. Furthermore, Vodafone’s commitment to sustainable development means controlling Francisco Román Welcome to Vodafone Spain’s Integrated Report for In this way we have identified those Sustainable and minimizing the impact of our activity on the Chairman our 2016-17 fiscal year (1 April 2016 to 31 March Development Goals to which, as an ICT sector environment and contributing to the fight against 2017). Like every year, I am pleased to present and company, we can make a more significant climate change. Through various initiatives to briefly introduce our strategy and take advantage contribution. We have therefore defined a series improve the energy efficiency of our facilities, of the transforming potential of some of the main of indicators for 2016-17 that show the evolution improve the mobility management of our initiatives aimed at our technology, products of our contribution to achieving this, through employees and, in particular, the development of and services for the benefit of society and the the three transformational goals of our Strategic innovative products and services, we have managed Environment. Sustainable Business Framework, related to to directly and indirectly avoid the emission of diversity and equality, innovation and energy and 447,173 tons of CO2. There is now a broad consensus on the challenges the employability of young people. we face as a society in terms of sustainable These initiatives will be implemented and these development. In this regard, it should be recalled Moreover, in line with the specific weight of ICTs figures and results achieved by involving our that in September 2015, the United Nations in the development of our country, this report employees. Each and every one of us in Vodafone General Assembly approved the Sustainable also reflects the company’s economic, social and Spain gives our commitment and desire to keep Development Goals (SDGs) for 2030, urging environmental contribution in our country during contributing to sustainable development. With Integrated Report 2016-17 Vodafone Spain Introduction Letter from the Chairman and the CEO 5 Letter from the CEO Satisfaction); consolidating the growth of the live, providing increasingly higher transmission biggest impact on our market; indeed, forecasts business, promoting the provision of convergent speeds. In addition, for the second year running, from analysts such as Gartner estimate that more services (Total Convergence); and ensuring a Vodafone Spain’s mobile network, which our 14.4 than 25 billion objects will be connected by 2020. satisfactory and complete customer experience million customers benefit from, has been rated During the year Vodafone Spain was also a pioneer in the digital environment, increasing efficiency once again the best in voice and data according with the launch of the first commercial NB-IoT each day (Total Digital and Personal). And all of to the Mobile Benchmark independent study from network in our country, now being available in this based on the principles of transparency and P3 Communications and Connect magazine too. six major cities: Madrid, Barcelona, Bilbao, Seville, sustainable enterprise that guide all our activities. On top of that, the agreement reached in March Malaga and Valencia. This new mobile network 2017 for wholesale access to the fibre optic For this reason, we continue to work to offer our technology connects devices to the Internet of network of the incumbent operator will allow us to Things in a secure, scalable and efficient way. customers the most complete and convergent considerably expand our footprint, reaching 18.7 products and services, with the best mobile and António Coimbra million property units and making progress in the In short, we are in the midst of a technological fixed connectivity, best content, and also the best Total Convergence goal. revolution and we hope that this Annual Report service by maintaining conventional systems and will serve as a clear indication of the effort we are We live in an economic and social context marked channels and meeting the new self-management Digital transformation is already an unstoppable making to maintain ourselves as a reference for principally by digital transformation and the and immediacy demands, with simple and flexible phenomenon and companies, organizations and innovation, quality and service to our customers. reinvention of our society. Companies must create digital alternatives that fulfil their needs. A clear institutions that do not adapt to it will not be able to experiences, stand out and anticipate the market; example of the priority to us of offering the best benefit from the associated efficiency advantages. innovation is the best path for achieving this. All customer experience is the “We CARE” programme, In Vodafone, we are aware of this situation and this requires work, effort and commitment, and launched by Vodafone to guarantee the best want to be an active part in the digitization process this Report aims to faithfully reflect our main satisfaction in using the network, helping to of the Spanish company, helping to implement António Coimbra achievements during 2016-17. control expenses without surprises, recognize and increasingly disruptive and innovative technologies. reward the loyalty of our customers, and always be Chief Executive Officer Our vision of how the company should be by available to meet their needs. Besides this, in recent years we have committed 2020 and the strategic goals that we have set to ourselves to offering our customers technologies achieve this have defined our actions and initiatives Improving the infrastructures of our fixed and such as IoT (Internet of Things), cloud services this past year: offering the best experience to mobile networks is another key element in or ultra-fast broadband networks. We live in a customers, having a motivated and committed developing our strategy and the driving force of hyper-connected world and IoT technology is workforce and maximizing shareholder value (Total this new digital transformation era in which we undoubtedly one of the trends that has had the Integrated Report 2016-17 Vodafone Spain Introduction Profile and Aim of the Report 6 Profile and Aim of the Report The following criteria have been taken into account in drafting the Report, both in terms of the scope of its content and in terms of the definition and quality of the information: This Integrated Annual Report addresses The framework defined by the International Integrated Reporting the Strategic, Management and Corporate Council in its <IR> Framework. Governance aspects of all Vodafone in Spain The Standards laid down by Global Reporting Initiative (GRI). during financial year 2016-17 (1 April 2016 to Scope of 31 March 2017), and sums up the Company’s Report Criteria The principles of the AccountAbility Standard AA1000APS. most significant financial and non-financial the Report The 10 Principles established in the United Nations Global Compact information. as well as their relationship with the Sustainable Development Goals (SDG) and with the GRI Standards. 1. This Report includes all the financial and non-financial information and figures about The disclosures and indicators regarding the Standards laid down by GRI and AA1000 APS the Vodafone Group’s business in Spain. All the references to “Vodafone” or “Vodafone guidelines have been assured by an independent auditing firm (KPMG). 7 Spain” will be construed as referring to the companies that form the Vodafone Group in This Report has been produced according to the Comprehensive option of the GRI Standards. Spain (mainly Vodafone España, S.A.U., Vodafone Ono, S.A.U. and, since 1 December 2016, This option has been subsequently submitted to external review by KPMG. The Report has also Vodafone Servicios, S.L.U.). 1 undergone the GRI service known as “Materiality Disclosure Service”. 7 2. The annual financial statements included in Chapter 8 are the externally audited financial Since 2012, Vodafone Spain is a signatory to the U.N.
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