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Integrated Report Vodafone in Spain 2018-19

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Integrated Report Vodafone in Spain 2018-19 Introducción Creación de Valor Principales Magnitudes 2018-19 1 Conectamos a las “personas para mejorar su vida hoy y construir We connect for un mejor mañana “ a better future Integrated Report Vodafone in Spain 2018-19 Integrated Report Vodafone in Spain 2018-19 Introducción Creación de Valor Principales Magnitudes 2018-19 2 1 Introduction Vodafone in Spain Content 2 3 4 Analysis of the Risk Analysis Strategy Environment 5 6 7 Report Performance Corporate Governance Preparation 8 9 Independent Annual Financial Assurance Report Statements Vodafone in Spain 2018-19* *Available only in Spanish version. Integrated Report Vodafone in Spain 2018-19 Introducción Creación de Valor Principales Magnitudes 2018-19 3 Introduction Chairman and CEO ’s Value Creation Statement Profile and Aim of the Report Integrated Report Vodafone in Spain 2018-19 Introduction Chairman and CEO ’s Statement 4 Chairman and CEO ’s Statement organization to respond to customer expectations more easily operator to make a 5G call between two smartphones. This In this regard, this Report outlines the main courses of action and faster. All of this is underpinned by the best ultra-fast new financial year Vodafone added another first to its track record and results associated with Vodafone’s commitment to generation networks (NGN), one of the distinguishing features when it rolled out the Spain’s first pre-commercial 5G Network: sustainable development. Our direct economic contribution in (as independently endorsed by the P3 Communications in July 2018 we acquired 90 adjoining MHz of spectrum in financial year 2018-19 totalled €5,042 million and the indirect consultancy) of Vodafone Spain and its leadership, in terms the 3.7 GHz band in the auction arranged by the Ministry of contribution, generated through our value chain organizations, of coverage, innovation and performance. Economy and Enterprise, which we used to deploy the first amounted to €1,208 million. As far as social contribution 5G NSA (Non-Stand Alone) nodes in Madrid, Barcelona, Seville, goes, Vodafone generated 35,224 direct and indirect jobs Significant strategy milestones Malaga, Bilbao and Valencia. At the same time, we have kept and the Vodafone Foundation Spain allocated €4.1 million Vodafone has embarked on major new initiatives as part of its on expanding our 4G network, which has now reached more to innovation and community involvement projects. As for new strategy. We launched Vodafone bit, the first fully digital than 5,900 towns and cities and 98.1% of the population. our environmental contribution, this financial year we have tariff on the market, to cope with the ever-larger number of managed directly and indirectly to avoid the emission of This year we managed to finish upgrading all of our fibre customers who want a fully digital interaction (from contracts 681,023 tons of CO2. network from HFC to Docsis 3.1, allowing us to offer 1 Gbps to customer service). We have streamlined our range of tariffs In a nutshell, we know that we operate in a complex, ever- to make operational and contractual procedures as simple as speeds throughout the network. We are now proud to offer the António Coimbra widest NGN coverage in Spain, as our fibre offering is available changing sector, which at the same time is highly strategic possible for our Customers. We have also revamped our TV in terms of how it contributes to our country’s development content packages to give Customers far more to choose from, to 22.4 million building units, either through our own or shared rollouts or through wholesale agreements. and to improving people’s quality of life. Doing so involves and negotiated network-sharing agreements to ensure we responding immediately and satisfactorily to new market I am pleased to welcome you to Vodafone’s Integrated Report still have the best mobile network and the most extensive and The Internet of Things also remains one of our top priorities. demands, and this in turn entails knowing how to transform for financial year 2018-19 (1st April 2018 to 31st March 2019), efficient fibre network. We have a secure NB-IoT Network for connecting devices, and take advantage of new technologies like Big Data, which presents the company’s key financial and non-financial During the year we have been forced to make especially we offer cloud solutions for storing information and Big Data Artificial Intelligence, new generation networks, IoT, etc. We information about its strategy, achievement of business complex decisions. Our goal of reversing the negative business tools for analyzing it, not to mention “V by Vodafone”, our are going through an era of change in which society and the objectives and its contribution to sustainable development, trends and designing a leaner organizational model, aligned IoT service that lets our residential customers connect and economy alike are going digital at a very fast pace; and not all on an aggregate basis. with the new strategy, and that is able to compete in the manage an extensive array of smart devices both at home only are we a part of this process, but we also strive to be the current market context, led to collective redundancies within and on the move. main technological driving force behind this transformation, Our Vision the company, a painful process yet necessary to bring the Responsibility and commitment to Sustainable connecting individuals and companies for an exciting future. At Vodafone, we have always been keenly aware that new organization in line with the new operational model and, at the Development This Integrated Annual Report for 2018-19 is intended to be communication technologies are an opportunity to encourage same time, protect the investment capacity required to ensure All of us at Vodafone responsibly accept the role we have a true reflection of all this and I sincerely trust that you find it innovation and foster digital transformation, both of which are the company’s future. to play, as a company, in contributing to the sustainable interesting. cornerstones of the changes that society is going through. Another was the decision not to bid for the soccer development of society, because on top of being an economic In this context, our company purpose is very clear: to connect broadcasting rights on account of their negative impact on engine, we are an agent of change, both by promoting ethical people, improve their lives today and build a better future for the Company’s accounts, and which were unprofitable due and responsible behaviour in our own activities and our value citizens, businesses and public administrations. to the asymmetrical regulatory conditions of the wholesale chain, and through the social and environmental benefits premium content business, heavily penalizing our company associated to our technology, products and services. António Coimbra Pushing forward our new strategic framework Chairman and CEO This year saw the unveiling of our new strategic framework, vis-à-vis other companies. Apart from changing the strategic At the same time, we are all too aware that the size of the which responds to our vision of the business in the future positioning of our premium TV content, we have forged social and environmental challenges facing society means and guides all our activities as a company. The new strategy stronger strategic partnerships with the best content that it is essential that we work side-by-side with other agents, is built upon three key pillars. The first is to go further along production companies and aggregators to offer our Customers such as Public Administrations, third-sector institutions, etc. the digitization road in order to interact better with our the best range of films and series. For that reason, Vodafone’s business strategy is aligned with Customers and offer them a better experience. The second is Clear commitment to Network Excellence and leadership key national and international agreements, such as the UN’s our commitment to be fully competitive in all segments in a The fact that we are firmly committed to the Network Sustainable Development Goals or Global Compact Principles, complex, ever-changing market environment. And the third, Excellence and to spearheading new generation networks of which Vodafone is a signatory; and in this Report, we have stemming from the first two, is that we must transform our was underscored this year when we became the world’s first renewed our commitment to comply with its 10 Principles. Integrated Report Vodafone in Spain 2018-19 Introduction Profile and Aim of the Report 5 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 7 : Scope of the Report The framework defined by the International Integrated Reporting Council in its “<IR> Framework”. Report Criteria The Standards laid down by Global Reporting Initiative (GRI). The principles of the AccountAbility Standard AA1000 AP. The 10 Principles established in the United Nations Global Compact as well as the Sustainable Development Goals (SDG) established by the UN in 2015. Law 11/2018, of 28th December, on Non-Financial Information and Diversity. All the (financial and non-financial) information and figures of Vodafone’s business in Spain shown in this Integrated Report are displayed on an aggregate basis. The Report’s disclosures and indicators regarding the Standards laid down by GRI and AA1000 AP guidelines have been Accordingly, any reference to “Vodafone” or “Vodafone Spain” will be construed as referring assured by an independent auditing firm (KPMG). to the companies that form the Vodafone Group in Spain. The Company’s shareholding 8 structure is described Chap. 1: “Vodafone in Spain”. 1 This Report has been produced according to the Comprehensive option of the GRI Standards.
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